PLAISIR CEDEX, FRANCE--(Marketwire - Nov 21, 2012) - Zodiac Aerospace again reports very good results in 2011/12

-- Sales revenue increased by +25.8% to EUR3440.6m; +14.4% increase in organic revenue -- Current operating income up 26.4% to EUR486.4m, i.e. profit margin of 14.1% -- Net income attributable to Group shareholders up +33.8% to EUR318.9m

Zodiac Aerospace continued its external-growth strategy through its acquisition of Heath Tecna and Contour during the fiscal year, and has just signed a LoI to acquire the US company IMS, which specializes in seat-centric in-flight entertainment (IFE) systems.

The net debt/EBITDA ratio is 1.45, an improvement on the targeted 1.6 thanks to a good cash flow generation and a well controlled working capital requirement (WCR). Net debt was EUR831.6m.

Long-term growth outlook remains favourable, buoyed by the increased of current and new programs production rates. For the 2012/13 fiscal year, Zodiac Aerospace aims to another year of organic growth.

Plaisir, on November 21(st), 2012 - The Supervisory Board of Zodiac Aerospace has approved the Group's accounts for the 2011/2012 fiscal year. Olivier Zarrouati, CEO said: "Once again, our Group reported very good results for the 2011/12 fiscal year. Our sales revenue and current operating income each rose by more than 25%, buoyed by our organic growth and acquisitions of Heath Tecna and Contour during the year. At the same time, we have continued investing to develop new products and to get sales successes, in particular in the area of cabin interiors. We are actively pursuing this strategy with the acquisition of IMS, a US company specialist in seat-centric which reinforces our in- flight entertainment systems".

Good performances in 2011/12 --------------------------------------------------------------------------- In millions of euros 2011/2012 2010/2011 % Change --------------------------------------------------------------------------- Sales revenue 3,440.6 2,734.8[1] +25.8% --------------------------------------------------------------------------- Current operating income before IFRS3 impact 487.6 386.5 +26.2% --------------------------------------------------------------------------- COI before IFRS 3/ Sales revenue 14.2% 14.0% --------------------------------------------------------------------------- Current operating income: 486.4 384.8 +26.4% --------------------------------------------------------------------------- Current operating income /Sales revenue 14.1% 14.1% --------------------------------------------------------------------------- Net income attributable to Group shareholders 318.9 238.3 +33.8% --------------------------------------------------------------------------- EPS 5.89 4.45 +32.4% --------------------------------------------------------------------------- EPS before IFRS 3 6.15 4.58 +34.3% --------------------------------------------------------------------------- Net debt 831.6 585.4 --------------------------------------------------------------------------- Net Debt/EBITDA ratio[2] 1.45 1.3 --------------------------------------------------------------------------- EUR/$ (Transaction) 1.32 1.35 EUR/$ (Conversion) 1.31 1.39 ---------------------------------------------------------------------------

Zodiac Aerospace achieved strong growth in 2011/2012 fiscal year. The Group's sales revenue increased by 25.8% to EUR3,440.6m during the course of its 2011/12 fiscal year (September to August). At like-for-like consolidation scope and exchange rates[3], organic sales revenue rose by 14.4% compared with an announced annual growth target of "more than 10%". External growth accounted for 7.2 percentage points of the growth in activity, while net exchange rates represented 4.2 points for the period. Aeronautical activities (excluding Trains and Airbags) increased by 16.7% at like-for-like consolidation scope and exchange rates. Zodiac Aerospace continues to grow in a buoyant market: with 13.6% organic growth in the fourth quarter, the Group has achieved 10 consecutive quarters of positive organic growth and eight consecutive quarters of double-digit organic growth.

The Group's Current Operating Income (COI) was up 26.2% to EUR487.6m, compared with EUR386.5m in 2010/11 (excluding IFRS 3 impact). The Current Operating Income margin was 14.2%, compared with 14.1% in 2010/2011.

The Current Operating Income margin rose by 20.2% at like-for-like consolidation scope, and by 14.8% at like-for-like consolidation scope and exchange rates, excluding IFRS3 impact. Changes in scope of consolidation(4) contributed EUR23.1m to the year. There was a net foreign exchange rate gain of EUR21.0m. After applying the IFRS 3 accounting standard, the Current Operating Income operations amounted to EUR486.4m, compared with EUR384.8m in 2010/11.

The introduction of new social provisions in France had a 0.1 percentage- point impact on the operating margin for the 2011/12 fiscal year.

A good operating performance for the Group's three business segments

Cabin Interiors: another year of strong growth thanks to organic growth and Acquisitions

The Cabin Interiors Segment reported a strong rise of 32.4% in its sales revenue to EUR2117.8m for the entire fiscal year. At like-for-like consolidation scope and exchange rates, the Segment reported growth of +15.0%. Cabin Interiors' sales revenue was, in particular, boosted by the very strong sales of its Seats division, as well as good sales of Galleys activities in Europe. External growth accounted for 12.4 percentage points of the annual growth in sales revenue. It was mainly thanks to Heath Tecna, which specializes in integrated cabin interiors, and has been consolidated since September 1, 2011; and to the UK company Contour, which specializes in premium seats, and has been consolidated since February 29, 2012. Excluding IFRS3 impact, the Segment's Current Operating Income increased by 30.6% to EUR331m, compared with EUR253.8m in 2010/2011. At like- for-like consolidation scope and exchange rates, Cabin Interiors reported a rise in its Current Operating Income of 13.6%. The Segment continued investing to develop new designs in the areas of seats, IFE[4] or galleys equipment. Changes in scope of consolidation accounted for an increase of EUR24.0m in the Current Operating Income, excluding IFRS3 impact, while the net foreign exchange gains had a total positive impact of EUR19.1m.

Aircraft Systems: strong performance for the year

The Aircraft Systems Segment achieved excellent sales for the 2011/2012 fiscal year. It reported a strong growth in its sales revenue of 20.4% to EUR678.1m, and of 17.7% at like-for-like consolidation scope and exchange rates. All its activities achieved good performances, both in terms of OEM and after sales. Its Current Operating Income was up 13.5% to EUR85.4m. This growth was impacted by a negative net exchange rate impact of EUR1.6m.

AeroSafety & Technology: continued growth

The AeroSafety & Technology Segment made sales revenue of EUR644.8m in the 2011/2012 fiscal year, an increase of 12.8% based on published figures, and a rise of 9.3% in organic revenue. Following on from previous quarters, the segment benefited from growth in emergency evacuation and electrical interconnect activities, and, in the second quarter, from a good increase in sales of emergency arresting systems activities. Its Current Operating Income rose by 24.6% to EUR83.6m based on published figures, and by 19.2% at like-for- like consolidation scope and exchange rates. The Segment benefited from a net foreign exchange gain of EUR3.7m and organic growth of EUR12.9m.

A strong rise in net income and EPS

Net income attributable to Group shareholders rose sharply by 35.6% to EUR332.8m, excluding IFRS 3 impact (accounting impact of external growth expenses), and of +33.8% to EUR318.9m after IFRS 3.

Earning per share was EUR5.89, compared with EUR4.45 after IFRS 3 impact. Before restatement of this IFRS 3 impact, it rose by 34.3% to EUR6.15 per share, compared with EUR4.58 in 2010/2011.

Net financial expense was -EUR33.2m compared with -EUR34.4m. Restated to account for the impact of the amortization of setting-up expenses or those of the syndicated loan rider, it amounted to -EUR32.4m compared with -EUR29.1m, an increase of EUR3.3m generated by the increase in our needs after the acquisitions of Heath Tecna and Contour.

Non-current Operating Income for the year were -EUR11.5m compared with - EUR17.2m in 2010/2011. They mainly comprise of expenses linked to IFRS 3: - EUR15.7m of amortization of intangible assets (compared with -EUR5.7m in 2010/2011), and -EUR2.9m of acquisition costs linked to external growth, compared with - EUR3.1m in 2010/2011. Moreover, in accordance with the memorandum of agreement signed with the seller of Cantwell Cullen & Co, acquired in 2009/2010, a partial refund of the price has been accounted for this fiscal year for a gross amount of EUR5.1m.

Restructuring and reorganization expenses were down compared with 2010/2011: EUR- 0.4m compared with EUR-5.8m.

The income from activities sold was +EUR10.9m compared with +EUR0.6m in 2010/2011. It arises from the sales of the Issy les Moulineaux building and the Driessen Services business, which were finalized during the course of the first- half of the fiscal year.

The tax expense was -EUR134.4m compared with -EUR95.9m in the previous year, i.e. a rate of 30.4% compared with 28.8% for the previous year.

Debt under control

Net debt was EUR831.6m at the end of the 2011/2012 fiscal year, compared with EUR1,054m at the end of the first-half, and EUR585.4m at the end of the 2010/20121 fiscal year.

This change was mainly due to the acquisitions of Heath Tecna on September, 1(st) 2011, and of Contour Aerospace on January 19, 2012, for enterprise values of $114m and £274m respectively. Heath Tecna has been consolidated in the accounts since September 1, 2011, and Contour Aerospace was consolidated for the first time on February 29, 2012.

The Net debt/EBITDA ratio[5] at the end of August 2012 was 1.45 compared with 1.3 at the end of August 2011. This ratio is well below the "Club Deal" covenant of which the maximum ratio at 08/31/2012 was 3.25. The Net debt/equity ratio (gearing) was 42% compared with 38% at year-end 2010/2011, and 59.2% at end of first-half 2011/2012.

Despite the strong rise in sales revenue, the Working capital requirement (WCR)/sales revenue ratio was practically unchanged at 29.4% compared with 29.3% at end-August 2011 (29.9% at end-August 2012, restated for businesses acquired).

An increase in the dividend offered

The Supervisory Board will propose at the Shareholders' Meeting to be held on January 9, 2013, the distribution of a dividend of EUR1.40 per share, compared with EUR1.20 per share in respect of the 2010/2011 fiscal year.

STRATEGY: Strenghtening in Cabin interiors segment

Further sales successes

In the 2011/2012 fiscal year, the Zodiac Aerospace Group, once more, achieved commercial success, and continued developing major programs.

-- During the summer, Zodiac Aerospace signed the Water & Waste contract for the Chinese aircraft Comac C919. The other equipment for which the Group has been pre-selected are currently in the process of contractual finalization. Moreover, Zodiac Aerospace has recently been selected by Comac to supply the Galleys & Lavatories of the C919, as well as the cockpit door of the same aircraft. -- As to the Russian commercial aircraft Irkut MC 21 programme, Zodiac Aerospace has, to date, signed the contracts for the primary electrical power distribution, the whole cabin, as well as contracts for fuel, fuel gauging and inerting, and crew oxygen. -- In the area of seats, Zodiac Aerospace has continued its programs of cabin refurbishment and equipment for new planes, and has won new orders, thanks, notably, to its entirely updated range of seats which provide passengers with more comfort.

The Group has, moreover, continued to support the increased of the Boeing 787 Dreamliner programme production rate, which, in November 2012, achieved the production rate of five aircraft per month, and aims to produce 10 aircraft a month by end-2013.

Finally, Zodiac Aerospace had continued to develop equipment and systems which it supplies for the Airbus A350XWB, the first flight of which is scheduled in 2013. This development accounts for a substantial part of the intangible investments for the year, which amount to EUR71.6m compared with EUR50.5m in 2010/2011.

Creation of a joint venture company with Embraer

On May 30, Zodiac Aerospace and Embraer SA, Brazilian leader of regional planes, signed an agreement to set up a joint venture company which will be in charge of manufacturing cabin interior equipment for the family of EMBRAER 170/190 jet aircraft. The joint venture production unit will be located in Mexico. This new joint venture company consolidates a fruitful partnership that has existed for a long time between Zodiac Aerospace and Embraer.

Zodiac Aerospace continues its external growth strategy

During the year, Zodiac Aerospace made two acquisitions in the area of the cabin, which were both finalized in the first-half. First of all, Heath Tecna completes Zodiac Aerospace's expertise in the area of cabin interiors of commercial aircraft, and enables it to offer its customers a wider range of services, in particular in terms of cabin refurbishment (retrofit), an area in which it is a world leader. This purchase was finalized on September 1, 2011. Then, Contour Aerospace, consolidated in the accounts for the first time on February 29(th), 2012, is a UK leader of premium aircraft seats. This Business activity completes the offer of Zodiac Seats in the First class and Business class seats areas. .

Zodiac Aerospace is actively pursuing its external growth strategy. On November 15(th),2012 the Group signed a letter of intent in view of acquiring IMS, a US company that specializes in Seat Centric IFE systems. Subject to obtaining the regulatory authorisations and the signing of the final contract, this acquisition should be finalized before end-2012.

New organization of the Group

To be closer to its end markets, Zodiac Aerospace is implementing a new organization in the 2012/2013 fiscal year, the main effect of which is the splitting of the Cabins Interiors Segment into three parts: Zodiac Cabin & Structures (cabin equipment and integrated cabin, for aircraft manufacturers and airlines), Zodiac Seats (aircraft seats) and Zodiac Galleys & Equipment (galleys, galleys equipment, trolleys and other equipment).

In December 2012, Zodiac Aerospace will publish its Q1 sales revenue on the basis of this new five-segment organization (Zodiac Aircraft Systems, Zodiac Aerosafety, Zodiac Cabin & Structures, Zodiac Seats and Zodiac Galleys & Equipment).

Currency hedging

At 11/15/2012, the Group hedged around 60% of its estimated exposure in respect of the 2012/2013 fiscal year at the rate of 1.265.

Outlook

The background for the aeronautical industry is good over the long term, with an average increase in traffic of 5% a year average, and over the medium term thanks to the increase in the pace of deliveries concerning existing commercial aircraft programs and the rise in the production rates of new programs. In these conditions, Zodiac Aerospace expects organic growth, again, in the new fiscal year, on a high comparison basis.

--------------------------------------------------------------------------- Forthcoming Q1 sales revenue December 18, 2012 (after events: Shareholders' Meeting closing) Q2 and H1 sales revenue January 9, 2013 28 March 2013 --------------------------------------------------------------------------- Notes Consolidated sales revenue by quarter -------------------------------------------------------------------------- In millions of 1st quarter 2nd quarter 3rd quarter 4th quarter euros 2011/2012 2011/2012 2011/2012 2011/2012 -------------------------------------------------------------------------- AeroSafety & 142.5 148.6 163.2 190.5 Technology Aircraft Systems 156.8 168.0 176.5 176.8 Cabin Interiors 479.3 472.1 568.6 597.7 Group Total 778.6 788.7 908.3 965.0 -------------------------------------------------------------------------- EUR/$ conversion 1.37 1.31 1.31 1.24 -------------------------------------------------------------------------- ------------------------------------------------------------------------ In millions of 1st quarter 2th quarter 3th quarter 4th quarter euros 2010/2011 2010/2011 2010/2011 2010/2011 ------------------------------------------------------------------------ AeroSafety & 134.9 134.8 139.9 162.0 Technology Aircraft Systems 131.5 132.6 152.2 146.9 Cabin Interiors 373.6 395.1 418.9 412.4 Group Total 640.0 662.4 711.0 721.4 ------------------------------------------------------------------------ EUR/$ conversion 1.35 1.34 1.43 1.43 ------------------------------------------------------------------------ VARIANCES (Quarter compared with the same quarter of the previous year) --------------------------------------------------------------------------- Based on published figures Q1 Q2 Q3 Q4 2011/2012 2011/2012 2011/2012 2011/2012 --------------------------------------------------------------------------- AeroSafety & Technology +5.6% +10.3% +16.6% +17.6% Aircraft Systems +19.2% +26.7% +15.9% +20.3% Cabin Interiors +28.3% +19.5% +35.8% +44.9% --------------------------------------------------------------------------- Group Total +21.7% +19.1% +27.8% +33.8% --------------------------------------------------------------------------- -------------------------------------------------------------------------- Based on organic revenue Q1 Q2 Q3 Q4 2011/2012 2011/2012 2011/2012 2011/2012 -------------------------------------------------------------------------- AeroSafety & Technology +6.7% +9.2% +11.7% +9.3% Aircraft Systems +21.9% +26.6% +12.0% +12.3% Cabin Interiors +19.8% +11.8% +13.0% +15.8% -------------------------------------------------------------------------- Group Total +17.5% +14.2% +12.5% +13.6% -------------------------------------------------------------------------- Aerospace activities* +20.8% +17.6% +13.9% +15.0% -------------------------------------------------------------------------- Organic changes 2010/2011 -------------------------------------------------------------------------- Based on organic revenue Q1 Q2 Q3 Q4 2010/2011 2010/2011 2010/2011 2010/2011 -------------------------------------------------------------------------- AeroSafety & Technology +10.4% +1.6% -3.3% +9.8% Aircraft Systems +9.3% +15.3% +21.8% +15.2% Cabin Interiors +25.5% +23.7% +19.8% +25.7% -------------------------------------------------------------------------- Group Total +18.3% +16.6% +14.8% +19.5% -------------------------------------------------------------------------- Aerospace activities* +16.8% +14.9% +14.0% +19.7% -------------------------------------------------------------------------- *Excluding Trains and Airbags businesses Cumulative consolidated sales revenue --------------------------------------------------------------------------- In millions of 1(st) quarter 1(st) half-year 9 months 2011/2012 fiscal euros 2011/2012 2011/2012 2011/2012 year --------------------------------------------------------------------------- AeroSafety & 142.5 291.1 454.3 644.8 Technology Aircraft Systems 156.8 324.8 501.3 678.1 Cabin Interiors 479.3 951.4 1520.0 2117.8 Group Total 778.6 1567.3 2475.7 3440.6 --------------------------------------------------------------------------- EUR/$ conversion 1.37 1.34 1.33 1.32 EUR/$ transaction 1.36 1.34 1.33 1.31 --------------------------------------------------------------------------- --------------------------------------------------------------------------- In millions of 1(st) quarter 1(st) half-year 9 months 2010/2011 fiscal euros 2010/2011 2010/2011 2010/2011 year --------------------------------------------------------------------------- AeroSafety & 134.9 269.7 409.6 571.7 Technology Aircraft Systems 131.5 264.1 416.3 563.2 Cabin Interiors 373.6 768.7 1,187.5 1,599.9 Group Total 640.0 1,302.4 2,013.5 2,734.8 --------------------------------------------------------------------------- EUR/$ conversion 1.35 1.35 1.37 1.39 EUR/$ transaction 1.29 1.30 1.31 1.35 --------------------------------------------------------------------------- VARIANCES (Aggregate at end of period compared with the same period of last year) -------------------------------------------------------------------------- Based on published 1(st) quarter 1(st) half-year 9 months 2011/2012 fiscal figures 2011/2012 2011/2012 2011/2012 year -------------------------------------------------------------------------- AeroSafety & +5.6% +7.9% +10.9% +12.8% Technology Aircraft Systems +19.2% +23.0% +20.4% +20.4% Cabin Interiors +28.3% +23.8% +28.0% +32.4% -------------------------------------------------------------------------- Group Total +21.7% +20.3% +23.0% +25.8% -------------------------------------------------------------------------- Based on organic 1st quarter 1st half-year 9 months 2011/2012 fiscal revenue 2011/2012 2011/2012 2011/2012 year --------------------------------------------------------------------------- AeroSafety & +6.7% +8.0% +9.3% +9.3% Technology Aircraft Systems +21.9% +24.3% +19.7% +17.7% Cabin Interiors +19.8% +15.8% +14.8% +15.0% --------------------------------------------------------------------------- Group Total +17.5% +15.9% +14.7% +14.4% --------------------------------------------------------------------------- Aerospace +20.8% +19.2% +17.3% +16.7% activities* --------------------------------------------------------------------------- *Excluding Trains and Airbags businesses +-------------------------------------------------------------------------- ----+ | Current Operating Income: | +-------------------------+---------------------+---------------------+---- ----+ |In millions of euros |2011/2012 fiscal year|2010/2011 fiscal year|% Change| +-------------------------+---------------------+---------------------+---- ----+ |Aerosafety & Technology| 83.6| 67.1| +24.6%| |Segment | | | | | | | | | |Aircraft Systems Segment | 85.4| 75.2| +13.5%| | | | | | |Cabin Interiors Segment | 330.3| 252.1| +31.0%| | | | | | |Holding | -12.9| -9.6| | | | | | | |Group Total | 486.4| 384.8| +26.4%| +-------------------------+---------------------+---------------------+---- ----+ +-------------------------------------------------------------------------+ | Income statement 2011/2012|2010/2011| +-----------------------------------------------------+---------+---------+ |Sales revenue 3,440.6| 2,734.8| +-----------------------------------------------------+-------------------+ | Amortization expense | 70.1| 61.6| +-----------------------------------------------------+---------+---------+ | Charge to provisions | 13.4| 14.3| +-----------------------------------------------------+-------------------+ |Current Operating Income | 486.4| 384.8| +-----------------------------------------------------+---------+---------+ |Non-current Operating Income | -11.5| -17.2| +-----------------------------------------------------+-------------------+ |Operating profit: | 475.0| 367.6| +-----------------------------------------------------+---------+---------+ |Cost of net debt | -30.7| -32.4| +-----------------------------------------------------+---------+---------+ |Other financial income and expenses | -2.5| -2.0| +-----------------------------------------------------+-------------------+ |Tax expense | 134.4| 95.9| +-----------------------------------------------------+-------------------+ |Income from continuing operations | 307.4| 237.3| +-----------------------------------------------------+---------+---------+ |Income from operations being discontinued | 10.9| 0.6| +-----------------------------------------------------+-------------------+ |Income from continuing operations and operations | 318.3| 237.9| |being didiscontinued | | | +-----------------------------------------------------+---------+---------+ |Net income attributable to Group shareholders | -0/6| -0.4| +-----------------------------------------------------+---------+---------+ |Net income attributable to Group shareholders | 318.9| 238.3| +-----------------------------------------------------+-------------------+ +-------------------------------------------------------------------------+ | Summary balance sheet | | | | |In millions of euros 08/31/12 08/31/11| 08/31/12 08/31/11| | | | |Non-current assets 2,346.9 1,756.9|Equity 2,056.8 1,591.6| | | | | |Provisions and | |Current assets 1,504.0 1,142.0|deferred tax 265.7 219.0| | | | |Cash and equivalents 161.8 224.7|Financial debt 993.3 810.1| | | | | |Other current | | |liabilities 698.4 519.8| | | | | |Liabilities held for | |Assets held for sale 1.5 18.7|sale 1.8| | | | | 4,014.2 3,142.3| 4,014.2 3,142.3| +--------------------------------------+----------------------------------+ +-------------------------------------------------------------------------+ | Summary cash flow statement | | | |In millions of euros 2011/2012 2010/2011| | | |Operating activities | | | |Cash flow from operations 427.5 346.4| | | |Change in WCR -127.3 -20.2| | | |Cash flow from continuing operations 300.2 326.2| | | |Cash flow from operations being discontinued 0.1| | | |INVESTMENT OPERATIONS | | | |Acquisition of intangible fixed assets -71.6 -50.5| | | |Acquisition of tangible fixed assets -84.1 -58.5| | | |Change in scope of consolidation: -405.0 -210.4| | | |Cash flow from investments of continuing operations -560.7 -319.4| | | |Cash flow from investments of operations being 27.4 -0.1| |discontinued and assets held for sale | | | |FINANCING OPERATIONS | | | |Change in debt 182.1 134.0| | | |Treasury stocks 2.3 -1.6| | | |Increase in equity 15.0 11.3| | | |Dividends -64.8 -53.4| | | |Cash flow linked to financing of continuing operations 134.6 90.3| | | | | | | |Translation adjustment on cash position at the start of 35.3 -30.4| |the period | | | |Change in cash position -63.2 66.7| +-------------------------------------------------------------------------+

The audit procedures on the consolidated financial statements are being finalized.

The audit report will be issued once the work has been completed of reviewing the notes to the financial statements.

[1] Restated to account for the disposal of Driessen Services

[2] EBITDA: Income as in the definition in the "Club Deal" credit agreement

[3] Changes in scope of consolidation: Inclusion of Sell for one extra month, Heath Tecna for 12 months and Contour for six months - Exclusion of: Driessen Services for 12 months

[4] IFE: "In Flight Entertainment"

[5] EBITDA: Income as in the definition in the "Club Deal" credit agreement

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