MESSAGE FROM OLIVIER ZARROUATI

CHIEF EXECUTIVE OFFICER

“All in all, the fiscal year demonstrated the strength of our Group, while focusing on civil aviation, has diversified enough so that the performance of some of our segments - this year Zodiac Aircraft Systems and Zodiac AeroSafety - compensated for the less successful performance of others.”

Zodiac Aerospace had a mixed 2013/2014 fiscal year Our revenue continued to increase, exceeding 4 billion for the first time. We won a substantial amount of new business as a result of innovations in our five business segments. Another positive development was the strengthening of our global leadership positions following the purchase of TriaGnoSys for in-flight entertainment and connectivity (IFEC) systems, Pacific Precision Product for oxygen systems for business aviation, and Greenpoint Technologies for VIP cabin interiors. We ended the year with an operating margin of 13.6%, a good level compared to our peers but down on the previous year due to unfavorable exchange rates and the temporary difficulties encountered by our Zodiac Galleys & Equipment and Zodiac Seats segments.

All in all, the fiscal year demonstrated the strength of our Group, while focusing on civil aviation, has diversified enough so that the performance of some of our segments - this year Zodiac Aircraft Systems and Zodiac AeroSafety - compensated for the less successful performance of others. The operational difficulties of Zodiac Galleys & Equipment at the beginning of period were settled in the second half of the year, while those affecting Zodiac Seats at year-end are in the process of being resolved.

Paradoxically, the difficulties with Zodiac Seats were caused by the success of our new seat range, which was completely overhauled with new products released in all market segments: economy class, premium economy, business class, and first class. Yet at the same time, we were able to deal with production ramp up and new, more stringent certification rules. Despite the extra work for our design offices and delays in our design and production chain, we remained customer-focused and established action plans firstly to restore our delivery schedules and secondly to eliminate incremental production costs. Against this backdrop, we also made changes to the Group's organization, strengthening operational management and making our development and production process more robust.

As a Group, we are keenly aware of our community and environmental responsibilities in our host countries. To this end, we have stepped up our commitment to improving the safety of our employees and facilities, reducing our environmental footprint, and ensuring respect for human rights. During the fiscal year we joined the United Nations Global Compact, demonstrating our determination to align our operations with the ten universal principles relating to human rights, labor standards, the environment and the fight against corruption.

6 | TRAVEL JOURNAL 2013/2014