Dassault Aviation Société anonyme: history, ownership, mission, how it works & makes money

A Brief History of Dassault Aviation Société anonyme

Founded in 1929 by Marcel Dassault, Dassault Aviation has evolved from a small aircraft manufacturer to a leading player in the aerospace industry. The company is renowned for its military aircraft, business jets, and space systems. Over the decades, Dassault has produced iconic aircraft like the Mirage series and the Falcon business jets.

In the 1950s, Dassault Aviation gained prominence with the introduction of the Mirage III, which became a major success for the French Air Force as well as for several international clients. In 1963, the Mirage 5 was launched and quickly became one of the best-selling combat aircraft.

In 1971, the company introduced the Falcon 20, marking its entry into the business aviation sector. The Falcon line has since expanded, with models like the Falcon 900 and Falcon 2000 achieving significant market share. By 2022, Dassault's Falcon range accounted for approximately 25% of the global business jet market.

In 2000, Dassault Aviation reported revenues of €3.25 billion, as the company was diversifying its portfolio and expanding its international presence. By 2022, revenues surged to approximately €6.2 billion, reflecting a strong demand for both military and civilian aircraft.

As of 2023, Dassault Aviation is listed on the Euronext Paris under the ticker symbol AM, with a market capitalization of around €12.5 billion. The company reported an operating profit margin of 8.5% for 2022, showcasing its operational efficiency.

Dassault Aviation has maintained a strong focus on research and development, investing approximately 10% of its annual revenue into innovative technologies. The company's commitment to sustainability is evident in its development of the Falcon 10X, a new generation business jet aimed at reducing fuel consumption by 25% compared to previous models.

As of the end of 2022, Dassault Aviation's workforce consisted of over 12,000 employees worldwide. The company has a significant presence in France, where most of its production facilities are located, as well as subsidiaries in the United States and other locations, reinforcing its position in the global aerospace market.

The stock performance of Dassault Aviation has shown resilience, with a year-to-date increase of 15% as of October 2023. This reflects growing investor confidence, supported by strong order backlogs and a recovering market post-pandemic.

Strategically, Dassault Aviation is pursuing partnerships to enhance its capabilities in unmanned aerial systems and advanced avionics, ensuring it remains competitive in a rapidly evolving aerospace landscape.

A Who Owns Dassault Aviation Société anonyme

Dassault Aviation Société anonyme is a prominent French aerospace company known for its military aircraft, business jets, and space vehicles. The ownership structure of the company is unique and highly concentrated.

As of October 2023, the key shareholders of Dassault Aviation include:

• Family Holdings: The Dassault family remains the largest shareholder, controlling approximately 58.88% of the company through various holding entities.
• Public Ownership: Around 26.06% of Dassault Aviation is held by institutional and retail investors.
• State Ownership: The French government, through Bpifrance, possesses roughly 10.73% of the company’s shares.

Below is a table that encapsulates the current ownership breakdown of Dassault Aviation:

In terms of management, Dassault Aviation’s governance remains heavily influenced by the Dassault family, with key figures such as Éric Trappier serving as the CEO. The company’s board includes members from various sectors, providing oversight while maintaining a focus on aerospace innovation and defense.

Financially, Dassault Aviation reported revenues of approximately 5.3 billion euros for the fiscal year ending December 2022, showcasing a slight increase of 3% from the previous year. The company's order book contained over 50 firm orders for commercial and military aircraft as of mid-2023, indicating a robust demand for its products.

The stock performance has been notably resilient. As of October 2023, Dassault Aviation’s share price stands at approximately 1600 euros, reflecting a year-to-date increase of 15% despite market volatility in the aerospace sector.

Overall, the ownership structure of Dassault Aviation highlights a significant concentration of control within the Dassault family, while also including substantial institutional and government stakes that influence its strategic direction.

Dassault Aviation Société anonyme Mission Statement

Dassault Aviation, a French aerospace company established in 1929, focuses on the design, manufacture, and sale of civil and military aircraft. The company's mission statement emphasizes its commitment to innovation, quality, and customer satisfaction while prioritizing sustainable development in the aviation industry. Their mission can be summarized as follows:

• Innovation: Striving to lead in cutting-edge technology and operational excellence.
• Quality: Ensuring the highest standards in design and manufacturing processes.
• Customer Satisfaction: Delivering value to clients through tailored solutions and services.
• Sustainability: Promoting environmentally friendly practices within the aviation sector.

As of 2023, Dassault Aviation has achieved significant milestones that reflect its mission and operational goals. The company reported €5.45 billion in revenue for the fiscal year 2022, a growth from €4.86 billion in 2021. The increase is attributed to robust sales in both business jets and military aircraft.

In the business aviation segment, Dassault's Falcon jets have received notable acclaim for their performance and innovation. In 2022, the company delivered 39 Falcon jets, marking a 10% increase from the previous year. The backlog for Falcon jets stands at €2.2 billion, indicating strong future demand.

On the military side, Dassault Aviation plays a crucial role in national defense, particularly with the Rafale fighter jet. As of 2023, the company has delivered a total of 240 Rafale jets, with orders from France and international clients including Egypt and Qatar. The military division accounted for approximately 45% of the total revenue in 2022.

In terms of financial performance, Dassault Aviation reported an operational margin of 8.5% for the fiscal year 2022, reflecting efficient cost management and high demand for their products. The company’s net profit stood at €465 million, which translates to a net margin of 8.5%.

Dassault Aviation’s approach to sustainability is evident in its ongoing efforts to reduce the environmental impact of its aircraft. The company invests in research and development aimed at developing eco-friendly technologies, including advancements in alternative fuels and more efficient engines.

Overall, Dassault Aviation's mission statement aligns with its strategic objectives, demonstrating a commitment to quality, innovation, and sustainable practices in the ever-evolving aerospace industry.

How Dassault Aviation Société anonyme Works

Dassault Aviation Société anonyme, a French aerospace company, primarily designs and manufactures military and civilian aircraft. The company operates in two main segments: Military Aviation and Civil Aviation. Dassault Aviation is known for its Falcon business jets and the Rafale fighter aircraft.

Business Segments

• Military Aviation: Major products include the Rafale multirole fighter and the Mirage series. The Rafale has been ordered by several countries, including Egypt and India, with the total number of Rafale aircraft ordered reaching approximately 180 units as of 2023.
• Civil Aviation: The Falcon series of business jets are a significant part of revenue. The Falcon 8X and Falcon 2000 are among the best sellers, contributing to Dassault Aviation’s market share in the business jet segment.

Financial Performance

For the fiscal year ending December 31, 2022, Dassault Aviation reported revenues of approximately €6.5 billion, reflecting an increase of 10% from the previous year. The breakdown of revenues by segment is:

The company’s order backlog stood at around €14 billion as of March 2023, showcasing strong demand, particularly in military contracts. The net profit for 2022 was approximately €570 million, reflecting a profit margin of around 8.8%.

Production Facilities

Dassault Aviation operates multiple production facilities, including:

• Bordeaux-Mérignac: Aircraft assembly and final production of the Falcon series.
• Saint-Cloud: Head office and design engineering.
• Istres: Military aircraft testing site.

R&D Investment

Research and Development (R&D) is crucial for Dassault Aviation, with the company investing around €500 million annually, which equates to approximately 7.7% of its revenue. This focus on innovation is aimed at enhancing aircraft performance and incorporating advanced technologies.

Market Position

In the business aviation sector, Dassault Aviation held a market share of approximately 12% as of 2023. The company competes with leading manufacturers such as Bombardier and Gulfstream. Additionally, in the military sector, Dassault Aviation remains competitive with other European defense contractors, including Airbus and Leonardo.

Stock Performance

As of October 2023, Dassault Aviation's share price was trading at approximately €1,600, with a market capitalization of around €6.8 billion. The company has shown resilience in stock performance, reflecting investor confidence, with an annual dividend payout of €7.00 per share.

Environmental Initiatives

Dasault Aviation has committed to sustainability, aiming for a significant reduction in carbon emissions by 2030. The company is exploring the use of sustainable aviation fuels and aims to achieve a 50% reduction in greenhouse gas emissions per aircraft by 2030.

Conclusion

Through its dual focus on military and civil aviation, significant investment in R&D, and a commitment to sustainability, Dassault Aviation continues to maintain a prominent position in both the aerospace and defense industries while responding adeptly to changing market demands.

How Dassault Aviation Société anonyme Makes Money

Dassault Aviation Société anonyme primarily generates revenue through its military and civil aviation segments, providing advanced aircraft solutions and services. The company’s financial success is underscored by its diverse portfolio, which includes business jets, military aircraft, and unmanned aerial systems (UAS).

In the military segment, Dassault is known for producing the Rafale multirole fighter jet. The Rafale has been exported to several countries, with notable sales including:

• India: 36 aircraft sold in 2016 for approximately €7.87 billion.
• Qatar: 24 aircraft sold in 2015, valued at around €6.3 billion.
• Egypt: 24 aircraft sold in 2015 for about €5.2 billion.

The company reported a total revenue of **€7.1 billion** for the fiscal year 2022. In the military aircraft division, Dassault Aviation generated around **€3.1 billion**, with an operating margin of approximately **12%**.

In the civil aviation sector, the company focuses on business jets, primarily the Falcon series. In 2022, sales of Falcon jets contributed approximately **€2.6 billion** to the revenue, representing a recovery in demand with a delivery rate of **29 aircraft**, reflecting a **17%** increase from the previous year.

The average selling price for a Falcon jet ranges from **€5 million** to **€60 million**, depending on the model and specifications. The Falcon 10X, which is set to enter the market, is expected to further boost this segment with its projected revenue potential.

Additionally, Dassault Aviation earns revenue from aftermarket services, including maintenance, repair, and overhaul (MRO). The MRO services accounted for about **€1.2 billion** in revenue in 2022, contributing to an ongoing inflow of recurring income.

Innovation and development play a crucial role in Dassault's business strategy. In 2023, the company allocated **€550 million** towards research and development, focusing on new technologies, including hybrid-electric propulsion and advanced avionics systems.

Moreover, Dassault Aviation actively pursues international collaborations and partnerships to enhance its market presence. Joint ventures with companies like Thales and MBDA have enabled Dassault to integrate advanced technologies into its aircraft systems, thereby improving overall performance and competitiveness.

Looking ahead, the company is also focusing on digital transformation and sustainability initiatives. These strategic priorities are expected to enhance operational efficiency and meet evolving market demands, further solidifying Dassault Aviation's revenue streams in the aerospace industry.