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Results 2016: DCNS achieves its objectives and confirms the improvement of its operational profitability

02.24.2017
  • Sales of €3.2 billion (+5% vs 2015), of which 38% on international markets
  • Orders intake of €2.65 billion
  • EBITA of €89.5 million (+54% vs 2015)
  • Consolidated net result of €87.5 million (+50% vs 2015)

The DCNS board of directors met on 23 February 2017 to review the 2016 accounts, closed on 31 December.

Commenting on these results, Hervé Guillou, Chairman and Chief Executive Officer of DCNS, declared: “The results for the 2016 reporting period are in line, for the second consecutive year, with the objectives announced at the start of the year. The significant improvement of our operational profitability continues and confirms that we are progressing in the operational control of our contracts and that our continuous improvement plan contributes positively to our activity. We will maintain this virtuous momentum in 2017 and will continue our efforts to further improve our results and free the resources for our growth.

2016 was also marked by a major event: our selection by Australia for its future submarine programme, which is an appreciable recognition of the competencies of our workers, engineers and technicians, and which marks a new phase in the Group’s internationalisation. The resulting positive economic effects will make themselves felt over time as the successive contracts are executed and negotiated.

Furthermore, I would like to underline the creation, at the end of last year, and in partnership with Bpifrance, of DCNS Energies, a new global actor in marine renewable energy, with which the Technip group and BNP Paribas Développement are also associated”.

Orders intake

The 2016 orders intake represents €2,645 million, of which 28% on international markets. The improvement of the competitiveness of our offers once again allowed us, in 2016, to increase the average margin rate for the orders taken. The corresponding amount was €11.6 billion at the end of December. This virtuous momentum, which could already be observed at the end of 2015 and destined to be pursued, is the essential condition for the sustainable profitability of our operations, the confidence of our clients and the robustness of the Group.

The main orders intake in France or on international markets over the previous reporting period concerns all of the Group’s sectors of activity, from construction programmes to services and equipment. They relate to the construction and maintenance of ballistic-missile nuclear submarines (SSBNs), the maintenance of the Charles de Gaulle aircraft carrier, the LHD for Egypt, the corvettes for Malaysia, the programme to adapt the M51 missiles to SSBNs and the programme for nuclear attack submarines (SSNs) for the French Navy.

Measured over the three years from 2014 to 2016, the Book-to-Bill ratio (orders intake divided by sales), which is a measure of the order book’s renewal rate, is 1.05.

Sales, EBITA and net results

Consolidated sales were €3,191 million, representing an increase of 5% compared to the previous reporting period. With 38% generated on international markets, sales are supported by major French programmes, principally FREMM and Barracuda, by international programmes with Egypt, Brazil and India, as well as by Services with in particular the SSN, SSBN, Charles de Gaulle aircraft carrier, Saudi Arabia and Malaysia maintenance programmes.

EBITA amounts to €89.5 million, representing an increase of 54% compared to 2015. The return on sales ratio has improved, increasing from 1.9% in 2015 to 2.8% in 2016.

These positive dynamics, which must be actively pursued, demonstrate that the actions undertaken in the frame of the Progress Plan and the Global Performance Plan are giving their first results and contributing to the improvement of our competitiveness and profitability.

The consolidated net result was €87.5 million, which has been increased by 50% compared to 2015.

Perspectives

Over the totality of the 2017 reporting period, DCNS should see another progression of sales and EBITA. The Group foresees a growth of the net result of 10%.