MESSAGE FROM OLIVIER ZARROUATI

CHIEF EXECUTIVE OFFICER

“We face the future with confidence.”

New concepts, designs, technologies, processes, etc.: innovation and development as well as continued internal and external growth are at the heart of our strategy. During the past year we intensified our Group actions and strengthened, for example, our central structure to provide efficient support for the developments undertaken by our business Segments. We also continued our investments in ongoing as well as future commercial aircraft programs. In this regard, we are especially proud to have contributed to the first flights of the Airbus A350XWB and the Bombardier CSeries, which are continuing their test flights.

The very promising early successes resulting from our ISIS retrofit solution for narrow-body aircraft are also reason for satisfaction. Developed by ZEO, our design studio in California, in cooperation with all Group Segments, ISIS (Innovative Space Interiors Solution) allows airlines to optimize cabin space while maintaining passenger comfort. This is only one example of the numerous projects undertaken by the Group. They all have the same objective: improve aircraft performance, safety and comfort on board.

Innovation is a key element of our strategy to develop or consolidate number one positions in niche markets. We select these markets in our aerospace equipment universe based on their proximity to our current markets, their ability to generate income in after-sales and their barriers to entry to ensure long-term profitability at the level of our investments. Thanks to innovation and acquisitions, Zodiac Aerospace holds the top place on most of its markets. The income generated by these activities today gives us the financial means for research and development for the next generation of equipment and systems and for future acquisitions.

At the same time, Zodiac Aerospace continued to grow during the fiscal year 2012/2013, combining organic and external growth. Our organic growth was at 7.3%, while the consolidation of businesses acquired contributed additional growth of 5.3%. Our total revenues were up 13.1 % over the full fiscal year at €3.9 billion, i.e., almost double our aerospace activities six years after the disposal of our Marine business. Thanks to our acquisitions, the deployment of Lean and the involvement of our employees, the growth of our business has been accompanied by an increase in our current operating margin of 14.5%.

Together with our commercial success and the market acceptance of our latest innovations, this strong financial performance allows us, in a buoyant aerospace environment, to face the future with confidence and to reap the benefits of our strong involvement in new programs for civil aircraft, the development of our retrofit offering and the dynamism of the after-sales market.

04 • TRAVEL JOURNAL 2012 • 2013