Zodiac Aerospace pursues its development

Zodiac Aerospace pursues its development

Growth in sales revenue and new acquisition in cabin interiors

Plaisir, June 17, 2014 - During the first 9 months of the 2013/2014 fiscal year, Zodiac Aerospace's sales went up +7.3% to €3,043.7 million. At like-for-like consolidation scope and exchange rate, it is up +7.5%, which is consistent with the first half of the year (+7.8%). The negative exchange rate impact (-3.5 points) is offset by the positive impact of the acquisitions (+3.3 points)^[1]. Zodiac Aerospace has benefited from the growth in air traffic and the increase in aircraft deliveries. After-sales activities continue to post a growth rate that is consistent with that of the Group.

Sales revenue trend

The AeroSafety Segment (13.6% of the total sales revenue) posted a +7.8% increase in terms of organic growth over the first 9 months of the fiscal year. Exchange rates impacted growth by -3.8 points over the period, and based on reported data, the business segment increased +4.0% to €413.1 million. The Evacuation and Arresting Systems businesses continued to draw growth from the Segment. In the 3rd quarter, the Segment resumed its pace of growth (+6.5% in organic terms,) after high billings at the close of the 2nd quarter.
The Aircraft Systems Segment (31.0% of total sales revenue) continued its strong growth: its sales revenue rose +18.2% to €943.7 million during the first 9 months of the fiscal year. Changes in scope of consolidation (+7.8 points) offset the negative exchange rate impact (-3.5 points). At like-for-like consolidation scope and exchange rate, the Segment benefited from the increased capacity of civil programs and posted an increase of +13.9%.
The Aircraft Interiors activities increased +2.8% to €1,686.9 million, and +4.4% at like-for-like consolidation scope and exchange rates. Over the 9 months, the change in scope concerned NAT and amounted to +1.8 point. The foreign exchange impact was negative (-3.5 points).

• The Seats Segment (26.8% of the total sales revenue), has been striving to catch up. Its sales revenue totaled €815.8 million over 9 months, up +1.4% according to reported data, and +4.2% in organic terms, the exchange rates having had an impact of -2.8 points during the period. In the 3rd quarter alone, the organic growth in sales revenue of the Segment amounted to +9.0%, improved in comparison to the 2nd quarter (+4.1%) and 1st quarter (-0.9%).
• The Cabin & Structures Segment (16.6% of total sales revenue) earned sales revenue of €505.8 million during the first 9 months of 2013/2014, up +2.5% according to reported data, and +1.1% in organic terms. The integration of NAT resulted in a positive impact of 6.1 points on the growth of the Segment, while exchange rates had a negative impact of -4.7 points.
• Sales revenue from the Galleys & Equipment Segment (12.0% of total sales) amounted to €365.3 million, up +6.2% according to reported data, and +9.5% at like-for-like consolidation and exchange rates.

Pursuit of the strategy of development through external growth
The acquisition of Greenpoint Technologies completes and strengthens the Group's expertise in cabin interiors.

On June 5, 2014, Zodiac Aerospace finalized the acquisition of Greenpoint Technologies. Based in Kirkland, Washington, with a subsidiary in Denton, Texas, Greenpoint is a world leader in VIP Cabin Interiors for widebody aircraft and a BBJ completion center. The company employs 450 people and has annual revenues of around $150 million.

Greenpoint Technologies will further enhance Zodiac Aerospace's competencies in Cabin Interiors in the domain of VIP and VVIP Cabin Interiors, while Zodiac Aerospace, the world leader in Cabin Interiors, will support Greenpoint's development and bring its skills in cabin certification and its know-how in design and manufacturing of interiors elements (monuments, galleys, seats, lighting ...).
This acquisition is the 3rd this fiscal year, following PPP in February and Triagnosys in September. It falls within Zodiac Aerospace's strategy of development through external growth. Thanks to the financing that has been established, Zodiac Aerospace has the means to actively pursue this strategy.

Outlook
Zodiac Aerospace is always developing, in a buoyant aerospace environment. The Group is expecting another year of organic growth in 2013/2014, and affirms the expectation that Seats and Galleys & Equipment business should catch up in the second half of the year.

The Group remains exposed to the evolution of the dollar exchange rates against other currencies. In the recent period, Zodiac Aerospace set provisional hedging for USD/CZK at 20.2350 covering 66% of its forecasted needs and for USD/CAD at 1.1119 for 30% of its forecasted needs.

About Zodiac Aerospace
Zodiac Aerospace is a world leader in aerospace equipment and systems for commercial, regional and business aircraft and for helicopters and spacecraft. Zodiac Aerospace has approximately 30,000 employees worldwide and realized revenue of €3.9 billion in 2012/2013, through its five business segments: Zodiac Aerosafety, Zodiac Aircraft Systems, and three segments related to cabin interiors: Zodiac Cabin & Structures, Zodiac Galleys & Equipment and Zodiac Seats. Uwww.zodiacaerospace.com

VARIANCES
(Quarter compared with the same quarter of the previous year)

Organic changes 2012/2013

VARIANCES 2013/2014
(Aggregate at end of period compared with the same period of last year)

            *Excluding Trains and Airbags businesses