Zodiac Aerospace: Q4 and Full Year 2016/2017 sales revenues

Q4 and Full Year 2016/2017 sales revenues

Plaisir, September 13, 2017 - Zodiac Aerospace reported sales of €5,126.2m for its fiscal year 2016/2017 (September to August), decreasing by -1.6% on a reported basis. Foreign exchange rates had a +0.4 point positive impact on growth rate over the period, compensating the -2.0% organic decrease.

Sales for the fourth quarter were at €1,337 million, down by -2.1% on a reported basis and +0.2% on a like-for-like basis due to a negative currency impact of -2.3 points.

By branch, Aerosystems had a good fiscal year with strong organic growth rate quarter after quarter. Cabin is improving while Seats is down, because of its industrial difficulties but also of an unfavorable comparison basis in the second half.

Revenue for the 2016/2017 fiscal year

Revenue for the fourth quarter of the 2016/2017 fiscal year

Aerosystems^[2] activities (43.6% of total revenue) sales for the fiscal year 2016/2017 amounted to €2,236.7m up by +3.5% on a reported basis and +3.0% on a like-for-like basis. Foreign exchange rates had a positive +0.5 percentage point impact on the annual evolution.

Aerosystems is as expected showing a strong dissymmetry between first and second half. Q4 sales were up +5.0% on a reported basis and +6.7% on a like-for-like basis. This strong growth during the fourth quarter, has been achieved despite an unfavorable comparison basis with the previous year, and is due to the contribution of shifted deliveries from previous quarters and also to a sustained level of deliveries coming from IFEC^[3].

Over the full year, Aerosystems has been impacted by -1.8 point due to a significant decrease in arresting systems and high-speed train toilets activities. Excluding these non-strategic activities, the branch's sales were up by +4.9% on a like-for-like basis for the year, thanks to the good performance of the commercial aircraft segment, which offset the weak demand and the late development of biz & regional jets and helicopters segments. Lastly, the branch's after-sales activity remained broadly sustained, both for the spare parts distribution and for the maintenance.

Aircraft Interiors activities (56.4% of total revenue) sales amounted to €2,889.5m for the fiscal year 2016/2017, mixing a positive +0.4 point forex impact and an -5.6% organic decrease, resulting in a -5.2% change over the fiscal year 2016/2017.
                The Cabin branch reported €1,644.6m sales, down by -0.9%. Except a positive +1.3 point forex impact, sales are decreasing by -2.2% on a like-for-like basis over the full year. During the fourth quarter, organic revenues were up +2.8%, compared with -3.0% in the third quarter and -9.2% in the second quarter, underlining the catch up of delays and the ramp-up of programs.
                The Seats branch reported €1,244.9m sales, -10.3% compared to the fiscal year 2015/2016. During the year, the foreign exchange impact was negative by -0.7 point. The organic revenues were down by
-9.6% during the year and by -13.3% during the fourth quarter because of the industrial difficulties of the branch, a decline of the activity and also an unfavorable comparison basis with the previous year.

Governance

Ms. Isabelle Boccon-Gibod succeeded to Ms. Florence Parly as a permanent representative of the Fonds Stratégique de Participation in the Supervisory Board of Zodiac Aerospace.

Outlook

Zodiac Aerospace is pursuing with determination its industrial recovery plan and its transformation plan.

The Group confirms its guidance for fiscal year 2016/2017. Full year results will be published on October 31^st.

Thanks to the ongoing action plans implemented to improve cash flow generation, the Net debt / EBITDA ratio at year end should be well below 3x.

For the fiscal year 2017/2018, Zodiac Aerospace completed its foreign currency hedging portfolio. The Group has hedged 83% of estimated EUR/USD exposure at 1.0875$/€ (spot rate).

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. It develops and manufactures state-of-the-art solutions to improve comfort and facilities on board aircraft and high-technology systems to increase aircraft performance and flight safety. Zodiac Aerospace has 35,000 employees worldwide and generated revenue of €5.1bn in 2016/2017. www.zodiacaerospace.com

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

CHANGES 2014/2015
 (Aggregate at end of period compared with the same period of last year)

*Excluding Trains and Airbags businesses