Dassault Aviation société anonyme (AM) Earnings Call Transcript & Summary

[Interpreted] Good afternoon. Welcome to this press conference on the half yearly accounts for the first half of 2022. Welcome to all those who are here and those who are connected online. We're going to present the results. First of all, a few highlights, the highlights for the first half is a record-breaking order intake with the export Rafales, and especially those of the UAE, 80. Greece for 6 additional aircraft and a strong recovery of Falcon orders with 41 Falcon ordered this first half. At the same time, the new difficulty is the difficulty because the crisis, you have gone through. This creates a certain complexity in the supply chain and the shortage of workforce that we can see in our company and in all the companies that contribute to the building of our aircraft. The context, you know about the context, it's difficult context between Russia and Ukraine with the war in Russia, global health crisis that is still persisting, although we thought that the COVID was behind us actually at the beginning of this year in January, we were still hit. We went back to working from home. Some countries closed their borders like China, and there was a reemergence of the virus and still is the case now. The presidential elections in France with the reelection of President Macron, the legislatives that didn't give any majority to any party. And so a new formula in the fifth Republic in terms of our government. This crisis created high inflation that you can see today, and this might remain at this very high level. And so we're beginning to see signs of concerns about growth and our supply chain is under pressure. It has started again with our Rafale and Falcon successes, but also with recovery of Airbus. So the ramp-up is once again the topic and after 2 years of whatever might happen in France, this going back to work, this intensive going back to work is a difficult especially since we have shortages in terms of our resources and energy is also going to weigh on this issue in terms of our supply chain and socially also because of inflation. So therefore, we have a very complex environment. As for the Ukraine crisis, sanctions have been decided by the EU and by the United States and by others to other countries. So we complied with the sanctions. And we implemented and does so for our subcontractors, the whole issue related to the sanctions. So this means freezing all our plants in Russia. We had an office in Moscow in the civil area for our Falcons. We had a subsidiary of Dassault Falcon services to support our Falcon aircraft locally, Falcons that are operating in Russia, therefore, and we stopped and ceased all our commercial activities, our sales of aircraft to the country. There are some counter sanctions also in certain areas that have affected us and our supply chain. Now the risks of our supply chain crisis in 2020 because of the COVID, this continued until 2021, the crisis in Russia and Ukraine and new supply chain that has to be installed. Strong risk in our electronic components because of the COVID crisis. And if there was an extension of the crisis in other areas in the globe, we all have trouble finding electronic components, and this is a major concern. Of course, we've taken certain number of measures. And as you might have seen last week, the President launched an increase the manufacturing and development capacity of STMicroelectronics with the Franco-Italian partnership. So the outlooks are favorable for the company. When you look at the orders, historically, they are quite strong. So we'll have to increase our pace to ramp up. And the supply chain is still concerning, as we are keeping a close eye on it, thanks to the control towers that we have set up at Dassault and at the GIFAS. As for our programs, the Rafale and the contracts were signed last year, but they were implemented in April this year. So this will ensure workloads until 2031 for our factories. Greece has ordered 6 more Rafales. Indonesia has signed 2 contracts, 36 aircraft, they are still not enforced, so we're waiting for this enforcement this year, and we are executing and delivering 7 export Rafales. And the guidance for the year is to deliver 13 Rafale in 2022. We have a lot of prospects with whom we are discussing. And these are additional promising contracts for the years to come. Now we're going to continue the development of work in France on our F4 standard, which is the armed forces standard for the UAE and for France, the launch of productibility works to allow batch 5 contracts for 2023 around 42 aircraft. We're thinking with France about the war economy because the President talked about the war economy. We are talking about this with the Ministry of Armed Forces to see what that would mean for us, industrialists on the whole and on a case-per-case basis, so this is generic work that we are beginning to do. And we will see this in the future, French military program law that was announced last week by the President. So military support, as you've seen in the film and before talking about the support for the Mirage 2000, we are delivering the retrofits of Mirage 2000D. The Mirage 2000 will keep flying together with the Rafale aircraft with the air-air and air-ground improvements either RAVEL for Rafale or ATL2 for OCEAN and BALZAC contract for the Mirage 2000D, but also for the other Mirage 2000 that are still flying and still fly in the coming years. For the export support for our fleets and all the service platforms that we are setting up to improve the support and be as close as possible to our clients for all the Rafales deliver to 4 countries, Egypt, Qatar, India and Greece. Our training center in Mérignac is still running, especially now to train pilots and Greek mechanics who have bought the Rafale. Future Combat Air System launched in February 2020. Phase 1 work was completed at the beginning of the year. We are waiting for the contractualization of the Phase 1b after Phase 1a, these contractors have been signed at the end of last year or before the end of 2021. And we encountered a few interpretation difficulties of what prime contractor means between Dassault and Airbus, and we are still at that point right now. Eurodrone, as we saw in the film, the contract was signed by UCAR to Airbus, Airbus is the prime contractor. Dassault will be the subcontractor. That's not a problem for us. And we are working with Thales on the communication system with the framework and on the control systems of the Eurodrone. Mission -- Falcon mission aircraft for Falcons were ordered by the Southern Korean Republic, these will become surveillance maritime aircrafts and the Albatros, this is being developed. There are 7 aircraft and Archange, the military aircraft with 2 aircraft in backlog after the Gabriel. Maritime patrol aircraft, we delivered the fifth aircraft. There is still more to be delivered, and we're thinking about what could be the future maritime surveillance system in France, and we have a Falcon 10X that we'll give to the DGA as a prestudy in the coming weeks. As for the Falcon, as I was saying at the beginning, sales are picking up, 41 deliveries. This figure is slightly higher actually because we've canceled the aircraft ordered from Russia in accordance with the clients since we won't be able to deliver them. So therefore, a very good number of Falcon orders. The market is very buoyant especially in Europe and in the United States. We are enriching the range at the end of the development of the 6X. The program is running well, and I'll have the opportunity to talk about this again, and we're still working with other partners on the development and the use of technologies to reduce the carbon footprint of business jets and especially the use of the SAF, whether there's green are the future SAFs, the alternative ones, the open ones, which are synthetic so that we can really reduce therefore, by 50%, the consumption of the existing aircraft, and we will go beyond with the future aircraft, but of course, the reservation is these SAFs have to be produced according to the right quantity and distributed to the airports, this SAF will cost a little more than kerosene. But we in-house, Dassault and our business jets clients are ready to get a little more for the use of these aircraft with fuels that will have less carbon in them. So this is the range, Falcon range, Falcon 2,000, 4,000 nautics to the 10X, you have the 6X, 5,500 nautical miles, 8X, 6,500 nautical miles, 7 slightly be under and the older ones, the Falcon 900, which are still being sold with a range 4,750 nautical miles. The 6X were entered into service as we said at e-base business show. We had a lot of difficulties because of the COVID crisis. And therefore, we are a bit behind schedule. We would well take more time to make sure that we have the capacity that we have certification and the capacity to deliver the first aircraft. So the commissioning was put off to mid-2023 when it was actually planned beforehand to the beginning of 2023. The aircraft is finalizing a world tour. It's gone around the world almost, it's gone through Asia, the United States, Europe, it's a world tour that allows us to show the aircraft to our clients on the spot and to test the aircraft in operational conditions with an entire crew onboard. They can see all the defects because this aircraft is very young. And so we are still ramping up our industrial pace. We have the first aircraft that are being prepared at Little Rock for completion. The cabin which is very spacious cabin. You saw a few pictures in the film was awarded for its design by several organizations, and this is real success for us. And I hope that our clients really appreciated the flight. Falcon 10X, we are still developing it. Servicing will be at the end of 2025 with a wide range. So this is ultra long-range aircraft. We are developing a new cockpit. We have a technology and innovation center. All this was presented. The cabin we are insisting on that in terms of comfort because these are long flights because it's an ultra-long-range aircraft. The design has already received a certain number of awards, thanks to the mockups, mock of size 1 that we have manufactured and that we're taking around the world so that our future clients might realize how pleasant it is and how efficient this cabin is once this aircraft will be flying. The state of the program, we finished the wind tunnel test. We have produced the first parts of the Falcon 10X, the development of the Pearl 10X engine is taking place well with 1,000 test hours. So therefore, we are quite satisfied with this development. But of course, it's a very ambitious plan and the COVID issues have stopped us from working as we usually do with an integrated platform in Saint-Cloud before each 1 goes back to his company to carry out the ad hoc development. So all the difficulties in the 2020, 2021 can be felt on our program, but we're still ambitious, and we are sticking to this schedule for the late 2025. The Falcon after sale, Falcon support, we've gone around with our seminars, in-person seminars and our clients can be informed about the latest in terms of support, the possibility to improve to optimize the Falcon flights. So a lot of publications that we carry out, but it's easier to explain all that when the clients are there in presence. So all this is very popular. And the fact that we can reorganize these seminars, we can meet our clients again therefore. We are developing a global SAP for global management. You know we had 1 in France for the Eastern part of the world and another 1 in the United States in our subsidiary, Dassault Falcon shed in the United States and the all of the U.S., Canada and Southern America. We've done that to facilitate the life of our clients, not easy to merge two existing subsidiaries. So we met a few difficulties that involved with our clients, but now we're correcting all that. There are some good things. And sometimes, there difficulties, and we should be able to talk about that. The service center network, it suffered because of the COVID. And part of this naturally is suffering because of the Russian crisis, there is a certain number of Russian aircraft were supported in Switzerland by our subsidiary, tag maintenance services. So now it is still a difficulty because they haven't gone back to the level of activity that they had in 2019. So from this general presentation and as a complement to the film, I will give you some first half results, 127 aircraft have been ordered, 41 Falcons and 86 Rafales. So a sharp increase, 21 Falcon or 21 aircraft have delivered, 7 Rafale and 14 Falcon. So our backlog stands at 247 aircraft, 82 Falcon and 125 exported Rafale and 40 Rafale for France, that is 28 for 42 plus the 12 to replace the secondhand aircraft which were shipped to Greece. This means EUR 16.3 billion in terms of order intake, in terms of sales, EUR 3.1 billion that's equivalent to last year and backlog as consolidated one is now at EUR 34.1 billion with a high percentage, thanks to the export of Rafale 65% of backlog and 25% for the -- 13%. Now 22% for Rafale France and 13% for Falcons because that's the cumulative backlog. And of course, the Falcons will be delivered faster than the Rafales, but the turnover is slightly different. There is a high percentage of Rafale to export 22% also for France. 31% for Falcons, which does reflect how buoyant the activity is in the company when it comes to the distribution between export, France, Falcon and Rafale. So we have the 10X and 6X and 1 is ramping up so EUR 278 million of net sales, increasing compared with last year's H1. So we will have a self-funded R&D, which will be higher than in 2021. Thales has also closed its books for the first half will be publishing tomorrow. So 10.8% of our net sales and EBIT, EUR 726 million. That is 8.8% of net sales versus 7.7% in the first half of last year. So it shows the contribution to the net sales. So EUR 3.090 billion, 2022 to be compared with last year, EUR 200 million of operating income, 6.5% of operating margin, increasing by 0.9% compared with the first half of 2021. Financial income is the same. Thales and other equity affiliates. Our percentage helps to consolidate EUR 183 million corporate taxes, roughly the same as last year. So our net margin of EUR 318 million, that is 10.3%, sharply increase comparing with 2021. Our cash is standing at EUR 6.3 billion, thanks to the Rafale exports contracts. Now the guidance remains unchanged. Delivery of 13 Rafales and 35 Falcons in 2022 with a slight decrease in our net sales compared with 2021, as announced earlier this year, in spite of all the difficulties in accessing spare parts and the supply chain shortages that we have reported so far. So that's all for our results, and now we can move on to the Q&A session.

[Interpreted] I'm from Frankfurt, [indiscernible] you mentioned the negotiation on SAF with Airbus, Airbus Defense Aerospace. And I have 3 questions. Do you think that there could be some failure in failing contract? And would there be plan B for the FCAS? And is there any political support for this project? And thirdly, you've mentioned that the 2040, 2050 are more realistic as a due date for the FCAS. Could you tell us why?

[Interpreted] Now the first question is, what do you mean by failure? It means to me, a failure would be that the armed fires are not happy with the aircraft we deliver. So what is really important is that we're sure, just like when you build a house, that you have the right, robust and solid foundations, which do require a prime contractor and an architect who will be committing themselves so that the house will be solid because of solid foundations. And we've used explicit assumptions that any industry will divide by that is a strong contractor. That's why Leonardo and myself aims to be strong prime for these projects. And we have accepted this. We just asked for reciprocal and be recognized as a 1 key partner for the [indiscernible]. We are -- this is only 1 part of the FCAS -- it's sorry, the 1 pillar of the FCAS. And for this particular pillar we have been appointed to be the prime contractor so that we ask for this to be complied with, not only in Phase 1b, but up to the flight because we want to deliver aircraft to operational armed force. That's our commitment. This is our pledge. That's what we've asked Airbus to trust us so that leadership of the French by Dassault Aviation can be performed without any stockholder. It doesn't mean that we are against cooperation. We want to cooperate just like we did with Eurodrone with 6 countries, and this has allowed us to have a demonstrator being shown. This is what we've done with the NGF. We have a demonstrator which was compliant to the expected performance level and even better than that with Dassault Aviation as a lead architect of the projects and DGA, the French DGA was a lead in this program with various partners who accepted their role. This is what we are calling for as a success. Now if it's not possible, you might call it a failure. I'm just saying this is a reality. Is it a political project? Well, of course, it is. But should a political project give preference to political constraints or preference to industrial development, which will help us to achieve a high level of performance in our entrances. And the context is such that we should guarantee a high level of performance of our armed forces. And third question regarding the time scale. I said in an exaggerated fashion, 2040 to 2050, but everything was to be well organized so that the first flight would be at the end of 2025. And then it was 2026 and then 2027. We've last 3 years over the last 2 years now. If I were to extrapolate on a 20-year program, I've added 10 years, so it's rather short. So what does that mean the 2050? It means that if every 2 years or every year, we have to rediscuss with our partner because they disagree with us while we are supposed to be the lead, then it's not possible unless we have all the time available. So these are the statements that I've made. Yesterday, the Tempest was presented with a 2025 for the demonstrated 2035 for an operational aircraft. Don't you think, as my colleague said, that it will be a failure for the FCAS. If there's a competition we've seen that in Europe, some European member states would buy some American aircraft. Wouldn't they buy also aircraft from British Italian coalition and what main system has announced is in line with what I've just said BA system is -- BAE system is the leader. SAP is not a co-contract or a main partner, BAE systems are the leads they said we will have our aircraft flying in 2025. Okay, we'll see. It's in 3 years from now. This is what I'm asking for. I'm not opposed to a partnership with the 3 partners that is France, Germany and Spain. Right from the beginning, this is what I said, which is quite unusual and exceptional for our group, but not with any type of organization method. I'm not saying that I'm right and that Airbus is wrong. It's just that we have diverging views. I'm asking for a strong leadership by Dassault so that we can quickly achieve the result that is having a demonstrator flying where the specifications are more or less agreed upon by the 3 countries. And in order to get to the point you need a leader in the industry when you build a high-level building or an Airbus aircraft, you have a leader. It doesn't mean that you not cooperate with others. We do cooperate with for Falcons with subcontractors, just like I do accept being a subcontractor of Airbus for Eurodrone. Airbus committed itself with OCCAR. So we'll make sure that we meet our commitments provided Airbus also meet its commitments for OCCAR. I didn't ask for being the codeveloper of Eurodrone. We've asked for some parts of the contract, and this is what made sense. It's not a duplication that's going to make Europe efficient. It's not about copying or doing the same as what others do. And that's my view. And indeed, it is a political project and BAE is a leader and NGF is only 1 pillar. As I said, Dassault should be the strong prime leader of the NGF and recognized by the 3 nations and by our main partner that is Airbus. Once this is in [indiscernible], there's no problem. And as Guillaume Faury said, we're not far from it, but we're not there yet.

[Interpreted] It seems to me that so far, you've been quite successful these Rafale sell like hot cakes. Falcons is all over the world. With 10X, you've come from an industrial action, which was quite difficult. But it seems to me that there will be many more obstacles at least 2, first of all, the FCAS. Don't you think that it's just a web of or an entanglement of impossibilities? Both countries France and Germany are not compatible when it comes to industrial corporation and defense policy. And the 2 companies, Airbus and Dassault are not compatible. Airbus doesn't have the capacity. It doesn't want to hear you are the best, in theory. So don't you have a B plan? And could you please tell us more about this B plan? The second obstacle that I foresee is this huge workload on the company. How are you going to cope? Have you planned to hire more people at the group level? And what are the profiles that you want to hire? And are you going to have more people on the shop floor is an obstacle, which is probably a challenge which is far more difficult to take up than others because -- the recruitment of engineers will be faced with difficulties with many young graduate students who are demonstrated -- demonstrating against aircraft because of CO2 emissions. How are you going to attract this new generation of young engineers?

[Interpreted] Well, thank you for highlighting all the future challenges, I try and answer your questions one by one. No, the noncompatibility I think we found a solution -- what that is a clear leadership by Dassault and the first pillar. If it is not accepted, well, you may call it a failure or there will be plan B. Whatever it is, but there will be a plan B, but I cannot disclose anything at this stage because the day I talk about it first, report to the authorities and first and foremost, to the French Ministry of Armed Forces. So the time hasn't come to talk about this. But we're working on it. No. The reference to the [indiscernible] is rather closer to Airbus than Dassault. So any industry should have plan B, now the FCAS, the NGF is still on the table. We're still working on it, but I cannot accept any conditions. And I'm not going to challenge the initial assumptions just because we have diverging views today. So I would like to be in the command and control position, and this is not accepted by Airbus. This is the only problem to be sought. Now regarding the recruitment in the second question, it is difficult, its is -- even though we have a high unemployment rate in France, all companies in all sectors have difficulties in hiring people. But we are fortunate at Dassault, thanks to our DNA is that people who joined Dassault love aircrafts. And what you've said and which has meant our success is that we have programs underway and that when we export run Rafale, you need to develop new Rafales, you need to second people all over the world to support the aircraft. And people know that there will be touching the aircraft. And we try to have some good connection between [indiscernible] and Easter so that people still have -- are in touch with kerosene, sorry for that. So yes, we need more engineers and more trainees and interns in our shop floor. When it comes to the recruitment, it's 1,300 people for the group. At this stage, we have already hired more than 700 people. So more than 50% of the 1,300 we were planning. We've simplified the processes. We went through the fast-track process, even though we have all these clearances to go through, so you cannot hire anyone, but it's complex because we're a cutting-edge defense industry. But we have managed. Now it's more -- when it's more difficult is the supply chain. I'm also the President of the UMM, the union of the steel industry, union in France. And all the companies this sector in France have great difficulties in attracting, recruiting and hiring. So we'll have to be attractive to have more people hired in the industry. And that's why I'm champion of the industrialization of our country. And industry doesn't mean only design, it's also manufacturing and the chain of some contractors. It doesn't mean that everything is going to be made in France, but that we have strong assets in France. So we'll have to be able to lead a policy of industrialization that everybody is calling for even though over the last 20 years, we've observed the deindustrialization of France, maybe the COVID pandemic was an eye opener to many people. But we have to help the training centers, the national education system, higher education institutions to gear these young people to the industry, but was unfortunate at Dassault, we have a turnover which is very, very low compared with the average rate. It's a few people who resign per year. People join after their university studies, and they leave when they retire. We are a small company. We're not like Lockheed or Airbus or Boeing, we have 12,000 people. We all know each other. We are all aircraft lovers and people do not demonstrate industries in front of our buildings because it's not like aircraft. It doesn't mean for the same reason that they're not going to work to find solutions to reduce our greenhouse emissions. We have nice challenges ahead, but rather have these challenges with a backlog and rather than having a very low level in our backlog and difficulties in hiring people now. There are some issues that will keep us very busy for many days around.

[Interpreted] Sarah White from the Financial Times. I'd like to go back to the FCAS. So how long can you continue like this without an agreement with Airbus? And do you have a deadline to this side? I have a question, industrially today, what is your major challenge? Is it your supply chain or energy issues. What is concerning you most? I just wanted to have an idea about your major challenge.

[Interpreted] To answer your second question first, our major challenge is the supply chain. We have to make sure -- the supply chain is huge. And by supply chain, I mean first rankers, and we work with SMEs. But each company with whom we work, they work with other companies. And when the crisis with Ukraine started, we started mapping whom were with whom until the bottom because you have the supplies, major elements. And then you have the material also material, how do we secure it, et cetera. So that's the first challenge currently with the crisis in Ukraine, the COVID crisis because that did not help in our logistics. It makes things more complicated. And the redistribution on who is going to do what in a certain number of domains. So that's number one, really for us. And as for the FCAS, I have already expressed myself, let me say it once again, sooner or later, we have to say go or stop. We're going to leave ourselves until the end of the year. This is what I had said. Our teams have been redistributed elsewhere. We have work. They cannot just stay for 6 months in Europe without doing anything, remain idle until the deal is signed. So they have been redeployed. If we find an agreement that would suit everybody, then we need to have the time to remobilize our teams to find the forces to do all this. Right now they're doing other tasks. So we need time to enforce this contract if we ever manage to sign it. So the end of the year for me, so that we can make a decision in the next weeks, in the coming couple of months, end of the year. It is not an automated, but we cannot just stay like that with the pen up in the air for years.

[Interpreted] Pierre Ton, SLD Info. You talked directly with Mr. Guillaume Faury, we talk to each other every day, he's the manager of GIFAS, we have a lot in common, a lot of topics in common, especially the aeronautical supply chain. We're both worried about that, and we talk a lot about this. We don't much about the FCAS. Why not? That's the question? Because the people I talk to are German and Spanish and Guillaume Faury is not German nor Spanish.

[Interpreted] Small explanation. Well, you have a program in defense. So you have Germany, Spain and France, and there's a champion in Pillar 1, you have the French champion, who's Dassault, who is French and the French man managing in Germany, you have a company called Airbus Defense Space and the manager is German, Michael Schoellhorn. That doesn't mean that Guillaume is not piloting the hole, but the main person is Michael Schoellhorn for FCAS and you have another person in Spain, which is Airbus Spain. And when we are all 3 of us together, I have 2 Airbus in front of me, and then I can still talk to Guillaume. Mr. Guillaume Faury is the manager of all managers. Well, Germany and Spain, yes, he's manager, but I'm not to deal with that, whether it's Michael or the Spanish, and the Spanish person reports directly to Michael. So Airbus, no doubt about that. I have no doubt about who is steering Airbus and have precisely answered your question.

[Interpreted] Very quick question on the acceleration of the production units of Rafale, the President talked about the war coming and how far can you go in your production?

[Interpreted] Well, we had anticipated what the President was going to say because we anticipated the passage to Phase 3 of Rafale. We might not need it today, but we've anticipated because we believe that we have some other contracts. So we wanted to go a bit faster. And we were hoping to have contracts for France. We hope that batch 5 will be signed. Just like to remind you that for France, there was a delay in the deliveries of aircraft delivered to France. So the 4 T-2, 28 aircraft, it's been a long time, we should have delivered this to France. And upon the request of the French authorities, we've delayed this, and it will be delivered only at the end of the year 2022 and especially from 2023 onwards, plus the 12 aircraft replacing the 12 Greek ones, so that will be 40. So all these aircraft are planned according to the French military programming law. And if we have to accelerate, we will accelerate, but we need time to accelerate. We can't just tick our fingers and accelerate the delivery of aircraft. We cannot -- it's not that we can't accelerate things at Dassault, it's the entire supply chain. And as I've been telling you, there are difficulty. So everybody should be able to accelerate at the same time. And in order to increase the pace at 1 point, it requires a year. So if you deliver a manufacturing aircraft in 3 years, the time to increase the pace, you need 1 more year. But of course, we can always make efforts and mobilize our assessment. There is a shortage of workforce, you cannot the production chain overnight, we won't have enough labor. We can't ask people to work day and night. And our employees agreed to work over time, and that's great because it can increase their wages. They agreed to work a little more and that's great. And recall on part-time workers that helps us gain time, save time because we have to train. You hire young people, but it isn't because they come out of school that they know what is an aircraft. So the exertion we're going through right now, well, we have to accelerate even further and today, it won't be that easy to do so. But we are discussing with the Ministry of Armed Forces on what war economy means. I mean just beginning our discussions, so we have to think about the acquisition processes you were talking about the FCAS. Well, with the nEUROn, it was fast because the nEUROn was ordered. The demonstrated was ordered up to the first flight. And even the test period, there was a Phase 1a, 1B, 2 and endless discussions, within each phase. If we had signed all these contracts right from the beginning, it would have gone faster. So it's -- the way we need to prepare our contracts faster. It's not only the industrialist, but it's the industrialist, the DGA, the Ministry of Armed Forces, and the budget, we need to have the budget, too. So we're thinking about all this, and this is just the beginning.

Tell me if I'm wrong, but when on TV, I saw the 2 Rafales colliding and landing without any problems. I thought I understood why you were so strict about the controls they must be really robust because the 2 aircraft landed as nothing had happened. But you more than the flight controls, it's the flee clover that worked because they were very lucky. It could have been far worse, it could have ended very badly. They were very lucky in spite of all the damage, they could go back, fly back and it was a real miracle.

We're very proud of our flight controls, as you know. But we're very proud of them because it is the cornerstone wanted by Marcel Dassault, and we've developed our capacities based on that, we develop our components, our electro boards, the architecture, et cetera, and all this is integrated at the beginning with the design office, even the Americans recognize that, so that's the place where we're the best in the world. So that's why we're very proud of this. And it's good if it can save aircraft, but we have high-performance aircraft, especially not only Rafale but our Falcons too. Well, I think that we are through with all the questions for the summer, maybe more questions in March. But it's really great to have this exceptional number of new orders. We won't always have such semesters. So I'd like to thank you all, wish you a nice summer either working or on holidays for those who can take holidays and you must take holiday from time to time to take rest. So thank you very much, and have a nice evening. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]