DCI's annual report - 2013

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DCI's annual report - 2013

  1. 1. ANNUAL REPORT
  2. 2. TRANSFER AERONAUTICAL EXPERTISE The air unit of DCI - AIRCO primarily seeks to transfer French Air Force know-how to foreign air forces. With support from the French Air Force and/or in cooperation with major aeronautical industries, their experts provide assistance, consulting and training adjusted to the customers’ requirements. STRENGTHEN YOUR CAPABILITIES IN SECURITY, AIR AND GROUND DEFENCE The land, Gendarmerie and health ser- vices unit of DCI - COFRAS bring their operational expertise and offer courses, training and technical support to friendly armed forces, both in France and in the partner country. SHARE OUR NAVAL EXPERTISE The naval unit of DCI - NAVFCO transfers French Navy training’s know-how and provides technical/operational assistance. Their experts personalise their programmes to meet the unique requirements of each supported force. DELIVER DEFENCE AND SECURITY PROGRAMMES The armaments unit of DCI - DESCO specialises in all defence and security systems. Their experts provide consulting and oversight in the implementation of armament and security programmes, in compliance with the standards of the French General Acquisition Directorate (DGA). AIRCO COFRAS NAVFCO DESCO PRESENTATION OF OPERATIONAL DEPARTMENTSWHO WE ARE ? F ounded in 1972, DCI is a medium-sized company with the French Government as core shareholder. DCI helps to transfer the French Ministry of Defence’s know-how to foreign governments depending on their military requirement. Not only does DCI offer after-sales equipment support but it also provides operational capabilities. The role of DCI is primarily to provide academic, operational and technical training. It can also assist with capability definition, maintenance and support. Last but not least, DCI and its subsidiaries are the partner of the French Armed Forces for the last 10 years. As such, they provide a complete range of services and are looking at expanding their market to the members of the European Union. / 04 STARTING A NEW BUSINESS PLAN / 6 A word from the Chairman / 7 Key figures in 2013 / 8 Group picture of executive team / 9 Board of directors / 10 INCREASING BUSINESS / 12 2013, an eventful year / 18 NEW CHALLENGES TO MEET / 20 Development lines for 2014 / 22 DCI in France and overseas 5PERMANENT OFFICES overseas : Saudi Arabia, UAE, Kuwait, Qatar, Singapore. 6FOREIGN GOVERNMENTS have signed orders in excess of €3m in 2013. 12COUNTRIES in which our employees are there. ANNUAL REPORT 2013 03
  3. 3. STARTING A NEW BUSINESS PLAN / 06A word from the Chairman / 07Key figures in 2013 / 08Group picture of executive team / 09Board of directors
  4. 4. 2013 I just arrived at DCI: men and women are committed in an efficient medium-sized company. JEAN-MICHEL PALAGOS DCI’s Chairman and Chief Executive Officer You have been elected Chairman & CEO on 9th December 2013. What impression of DCI did you have at first? I am first proud to have been elected at the Head of DCI, and I would like to thank the shareholders. My initial impressions were very positive. I am meeting the teams, both in France and in countries where we carry out activities, and I am completely stunned by the quality, professionalism and availability of the people I have met. I can recognize myself in the values shared by DCI’s 750 employees: sense of service and mission; work ethics; attachment to the armed forces values, from where most of them are coming. I have also been impressed by DCI’s dynamism. I noticed that DCI’s turnover is growing strongly, just like its activities. DCI is an efficient medium-sized company. Was 2013 a good year? It has been a great year with 192 M€ new orders, 339 M€ order book and with a net result of 24 M€. This proves, if it needs to be, that DCI is meeting France’s friendly countries expectations in the transfer of French armed forces know-how. Our clients seek the French armed forces training label and we are continuously bearing it while making sure of our service quality out of respect for the armed forces. What are 2013 key events? I would mention four of them: • The first year of the 2013-2017 business plan which was endorsed before I arrived; • The promotion of new development lines, including the will to offer integrated solutions to the expectations concerning training courses, and the analysis of lower costs solutions; • The success of the Almak project, the maritime training ship delivered on 27th September 2013. Intended for foreigner cadets of the Naval Academy, the ship has already carried out twelve weeks of training in 2013 and already has a guaranteed workload for the next few years; • The search for partnerships with the defence industries, DCI complementing the French export via its capability approach requested by friendly countries. How do you see 2014? Like in 2013, 2014 is combining uncertainties and risks, but also opportunities. The target activity adopted by DCI is well on track with around 230 M€ turnover, that is a 12% increase on a constant configuration, and a continuous performance. However, I have already started a strategic review. It is aiming at slightly transforming the 2013-2017 business plan to strengthen DCI’s growth path. This path is targeting a 280 M€ turnover for 2018 via new growth prospects, new markets and by offering new services. For the future, I am intending to strongly reaffirm DCI’s vocation: transferring the French armed forces know-how. Jean-Michel Palagos DCI’s Chairman and Chief Executive Officer WORKFORCE ORDERS IN HAND (in millions of euros excluding Hélidax) CONSOLIDATED REVENUE* (in millions of euros) 755 192 339 GEOGRAPHIC ZONES (in % of consolidated revenue) * including Hélidax ASIA AFRICA MIDDLE EAST EUROPE NEW ORDERS ORDER BOOK AT YEAR END 40% Ensuring equip- ment availability and maintenance 11% Assistance to personnel and activities 3% Definition of doctrines and support to armed forces 1% Misc. (Rent) 45% Personnel training BUSINESS LINES (in % of consolidated revenue) 112 2007 2008 2009 2010 2011 2012 2013 129 140 146 166 183 221 2013 key figures 2014 A reaffirmed vocation to give meaning to DCI’s growth. 26 60 9 5 ANNUAL REPORT 2013 ANNUAL REPORT 2013 0706
  5. 5. GROUND PICTURE AND EXECUTIVE TEAM: MAINTAINING A HIGH LEVEL OF REQUIREMENTS Under the authority of the Chairman Chief Executive Officer, DCI is managed by the Executive Committee. It gathers around the CEO: - the Deputy Chief Executive Officer, who ensures the strategic alignment with the activities as well as the performance of the functional divisions; - the Directors of the operational divisions, that is AIRCO, COFRAS, DESCO and NAVFCO. They represent all the defence fields, air, land, sea and armament, and account for an overall view on DCI’s prospects. Jean-Michel PALAGOS DCI’s Chairman Chief Executive Officer Jean-Marc DENUEL DCI-AIRCO Director Philippe JULIOT DCI-DESCO Director Jean-Baptiste PINTON Deputy Chief Executive Officer Patrick TANGUY DCI-COFRAS Director Bruno NIELLY DCI-NAVFCO Director BOARD OF DIRECTORS ON 31ST DECEMBER 2013 CHAIRMAN OF THE BOARD Jean-Michel Palagos DCI’s Chairman Chief Executive Officer GOVERNMENT REPRESENTATIVES Jean-Séverin Deckers Chef du bureau Aéronautique et Défense Agence des participations de l’État Ministry of Economy and Financial Affairs Elisabeth Kahn Chef de mission de contrôle général économique et financier, honoraire Denis Le Fers Chef du bureau Affaires aéronautiques, militaires et navales Direction Générale du Trésor Ministry of Economy and Financial Affairs Gratien Maire Sous-chef d’état-major des Armées Relations Internationales État-major des Armées Ministry of Defence Thierry Perard Chef du service des affaires industrielles et de l’intelligence économique General Acquisition Directorate Ministry of Defence Stéphane Reb Directeur du Développement International General Acquisition Directorate Ministry of Defence OTHER DIRECTORS Patrick Bonnet Deputy Chief Executive Officer SOFEMA EUROTRADIA INTERNATIONAL represented by Philippe Esper Chairman Chief Executive Officer Laurent Giovachini Vice President SOPRA GROUP SOFEMA represented by Guillaume Giscard d’Estaing Chairman Chief Executive Officer SOFRESA represented by Daniel Thuillier Senior Vice President GOVERNMENT COMMISSIONERS Jean-Paul Labarthe Contrôleur général en mission extraordinaire Contrôle général des armées Groupe de contrôle des services et industries d’armement Ministry of Defence Jacques Paultre de Lamotte Chef de mission de Contrôle général Responsable de la mission “espace, armement et industries diverses liées aux activités régaliennes de l’État” Ministry of Economy and Financial Affairs STATUTORY AUDITORS EY company PricewaterhouseCoopers Audit ANNUAL REPORT 2013 09 ANNUAL REPORT 2013 08
  6. 6. INCREASING BUSINESS / 122013, an eventful year
  7. 7. 2013 AN EVENTFUL YEAR January March February April OPENING OF THE SINGAPORE OFFICE After countries in the Middle East (Saudi Arabia, UAE, Kuwait and Qatar), DCI is expanding its network of offices overseas via the opening of a representative office in Singapore. PARTICIPATION IN THE IDEX SHOW DCI is strengthening its activities in the UAE via its presence on the biggest defence show in the Middle East. Its representatives met about ten foreign delegations on its stand as well as journalists from all over the world. SINGAPOUR IDEX DCI WINS THE CRIMSON PROJECT DCI wins another bid of the European Commission on maritime safety: the CRIMSON (Critical Maritime Routes Programme Monitoring Support and Evaluation Mechanism) project will last two years. CRIMSON PROJECT LIBYA IS TRUSTING DCI WITH ITS ACADEMIC TRAINING IN THE AERONAUTICS FIELD 20 young Libyans are hosted within the French Air Academy in Salon de Provence where they represent the first batch of foreign cadets for the aca- demic training in DCI. Once the courses finished, they will be graduated of Bachelor from the University of Aix Marseille. CERTIFICATES FOR QATARI FIGHTER PILOTS Trained by DCI since 2010, 3 Qatari officers obtained their fighter pilot certificates during a graduation ceremony organised at the Fighter Academy in Tours (France). OPENING TO AFRICA 3 questions to General Patrick Tanguy, Director of DCI-COFRAS • What are DCI’s activities in Central Africa? The helicopter project in the Republic of Niger is for now the most important one since it is involving the training of 9 pilots and 12 maintenance technicians by DCI-COFRAS, first in France and then in Niamey. We are conducting this training along with the DCSD (Directorate of Defence and Security Cooperation) of the Ministry of Foreign Affairs within the framework of a cooperation involving the handover of 3 French Gazelle to the Republic of Niger. In the same spirit, a support action to the Army Aviation of Gabon is currently being carried out: training Gabonese helicopter maintenance technicians in France. It might also be expanded as soon as next summer. DCI-AIRCO also provided services in 2013 in Senegal for the presidential plane. To finish, our subsidiary Vigie Aviation, is training personnel responsible for conducting air surveillance missions within the framework of a contract in Mali, as ASI Innovation’s subcontractor. • Did you target other countries in Sub-Saharan Africa for the years to come? We are looking into markets in Nigeria and Chad. We are also considering Mali and Ivory Coast in the medium term, still within the framework of helicopter training courses. We are currently working on an ambitious project in Gabon: creating a helicopter pilot training centre which could have a regional development. Africa is developing itself economically, and we wish to participate in its competence increase, especially in the air-land field. • Are you also working with the European Union on the African continent? After winning a study funded by the European Union in the Gulf of Guinea in 2010, the European Commission trusted DCI with the CRIMSON project last year. The CRIMSON project is about supporting and assessing multiple european projects for the improvement of maritime safety, especially in the Gulf of Aden, Gulf of Guinea and the Malacca straits. DCI is present via a group of experts. It is thus contributing to the improvement of maritime safety, especially in the Gulf of Aden. AFRICA PILOTS QATARISLIBYA ANNUAL REPORT 2013 13 ANNUAL REPORT 2013 12
  8. 8. May July June August HELIDAX’S FLEET HAS MORE THAN 50,000 FLIGHT HOURS After less than a three-year activity, Helidax just exceeded 50,000 flight hours on aircrafts type EC 120 Colibri, in the Calliopé configuration. AERONAUTICS CONTRACT RENEWED IN THE UAE DCI’s technical assistance on the Mirage 2000-9 in the UAE has been renewed for an additional year. GRADUATION CEREMONY FOR KUWAITI AND LIBYAN CADETS A new CENOE batch of cadets from the Kuwaiti and Libyan Navies obtained their first naval officer status during a ceremony in Brest (France). The CENOE training (Navy Academy course for Foreign Officers) is ensuring the training of foreign officers-to-be in close cooperation with the French Navy. VIGIE AVIATION: KNOW-HOW IN AIR SURVEILLANCE DCI and Chalair Aviation – a French airline company – became major stake- holders in Vigie Aviation at the start of the summer. Created in 2010, Vigie Aviation is an aerial surveillance and observation company. This operation aimed at pushing Vigie Aviation as a recognised operator for air surveillance missions in France and worldwide. SAUDI ARABIA: MORE TRAINING FOR CREWS OF THE SAUDI NAVY The Royal Saudi Naval Forces (RSNF) renewed their trust in DCI since they extended the contract concerning the training of their PANTHER SAR (Search and Rescue) crews in Jeddah to late June 2014. PARIS AIR SHOW LE BOURGET: FRUITFUL CONTRACTS FOR DCI DCI had a stand located beside the Ministry of Defence for this show. Around forty delegations visited us on our stand, including a certain number from Africa and the Middle-East. THE E-HOTS PARTNERSHIP FOR INTERNATIONAL ORGANISATIONS DCI signed an innovative agreement with four companies in the aeronautics field: Eurocopter, DAHER, Eurotradia and Vector Aerospace. The partnership is about a new service of comprehensive technical assistance intended for operational helicopters of Eurocopter. The service, named E-HOTS (Eurocopter Helicopter On Theatre Services), gathers the expertise and resources of all five partners and is offering a turnkey service which includes a wide range of assistance services for rotary-wing aircrafts currently deployed in: humanitarian aid missions, crisis management missions, conflict areas, and in Oil Gas sector. The E-HOTS programme has various advantages: a comprehensive and versatile assistance enabling to improve the mission capabilities and a short-term availability for services in difficult conditions with the support of experienced operators. 50 000 PARIS AIR SHOW VIGIE AVIATION TLSP PROJECT IN KUWAIT: END OF THE MAIN CONTRACT After five years of efforts, DCI came to the end of the services linked to the TLSP project (Technical and Logistical Support Pro- gramme). It was about the operational maintenance of 8 Garoh patrol vessels which belong to the Kuwaiti Navy. ANNUAL REPORT 2013 15 ANNUAL REPORT 2013 14
  9. 9. September November October December FRAMEWORK AGREEMENT WITH NEXTER NEXTER and DCI signed a framework agreement protocol concerning the joint promotion of capabilities offers in France and worldwide. This resulted from a first agreement from 2010 and is promoting common projects. ALMAK: FIRST TRAINING AT SEA WITH CADETS The maritime training ship experienced its first week at sea with Libyan cadets. During the navigation, the young officers could enjoy the quality of the equipment at their disposal for their training missions. CHINA: RESISTANCE TESTS IN COOP- ERATION WITH THE FRENCH GENERAL ACQUISITION DIREC- TORATE (DGA) The Chinese aircraft man- ufacturer AVIC and China Aviation Powerplant Institut (CAPI) entrusted DCI with icing tests on the WZ16 engine. The tests will take place in the propeller test centre of the DGA in Saclay. DELIVERY OF THE ALMAK The Almak, a 44-meter maritime training ship, was delivered on 27th September 2013 by the Piriou manufacturer during a launching ceremony in Concarneau (France). Admiral Bruno Nielly, Director of DCI-NAVFCO, is telling us more about this ship. • Admiral, what is going to be the Almak’s main mission? Its objective is to train to the naval officer position cadets entrusted to us by France’s friendly and partner countries. On-board the Almak, in the navigation field, these young cadets can exercise at sea the theory they learned in the Naval Academy Course for Foreign Officers (CENOE): safety navigation and manoeuvre of a ship at sea, sometimes in difficult situations, as it is in Britany. • The first training courses at sea started in autumn 2013. What were the first impression of these young cadets on this maritime training ship? They were first a little confused because this ship was different from the training ships of the Navy: it is bigger, more modern and its crew is civilian personnel. They were then surprised to notice how manoeu- vrable and comfortable the Almak was for daily life at sea. Our trainees generally appreciate the fact that the crew is dedicated to their training. On board, they have the feeling to benefit from a personalised support in their learning of maritime life.. • Can the Almak serve other purposes? According to its schedule for 2014, the Almak would only carry out missions of training at sea. But the maritime training ship is able to perform other missions. It is a comfortable and fuel-efficient platform capable of navigating offshore and handled by a crew of experienced sailors. The ship can host 16 passengers as well as scientific or diving equipment. We can therefore vary the Almak’s activities and carry out other maritime missions than maritime training. GOLFEAU CONTRACT: MISSION ACCOMPLISHED DCI is in charge of the GOLFEAU contract aiming at ensuring logistical support for French military personnel detached in the UAE along with their families. It included the provision of accommodation and other services over a period of time up to 30 years. After an incident in another part of the building complex which prevented its effectiveness in 2012, the contract has been finally activated in 2013 and ended in autumn, at the satisfaction of the French Ministry of Defence. The 237 families of French military personnel detached in Abu Dhabi are now living in the apartments of a modern and practical complex. The entire DCI team remains committed to ensure the best housing conditions in the long-term within the building complex, since the project extends until 2042. «» NEXTER DCI’S PRESENCE ON INTERNATIONAL SHOWS A professional show is the opportunity for DCI to galvanise its activities via contacts, new prospects and the development of the corporate image. In 2013, DCI participated in more than twelve shows worldwide (Europe, Middle-East, Asia, Latin America). The Air Show in Le Bourget was the most important, with a 216-m² stand displaying a EC120 helicopter of Helidax. In 2014, DCI continues on this path through its presence on defence and security shows and exhibitions. The Eurosatory and Euronaval exhibitions in France will be the highlights of its communication. SHOWS INTERNATIONAL MILIPOL 1st TRAINING DCI AT THE MILIPOL EXHIBITION IN PARIS DCI displayed its know- how in the Gendarmerie and Internal Security fields at the Milipol exhibition in Paris. It wel- comed many delegations from foreign countries as well as national journalists on its stand. JEAN-MICHEL PALAGOS BECAME CHAIRMAN AND CEO OF DCI On 9th December, the Board of Défense Conseil International announced the unanimous appointment of Jean-Michel Palagos as Chairman and Chief Executive Officer of DCI. ANNUAL REPORT 2013 17 ANNUAL REPORT 2013 16
  10. 10. NEW CHALLENGES TO MEET / 20Development lines for 2014 / 22DCI in France and overseas
  11. 11. NEW CHALLENGES TO FACE WITHIN THE FRAMEWORK OF THE BUSINESS PLAN The economic and political conditions, disturbed and different depending on the areas, do not present much visibility on the future. The weak European defence market is contrasting with the defence industries in Asia and in the Middle-East. In this context, DCI is securing itself thanks to good prospects for 2014 and a business plan on the right track for 2014-2018. The strategic review, led early 2014, intends to confirm the growth expectations. Good perspectives for 2014 The company registered a 227M€ turnover for 2014 , a constant increase of 12%. The number of orders is expected to remain as high as last year. The operating result will therefore increases. A business plan on the right track The 2014-2018 business plan is combining increase in the activity with improvement of the services. It is characterized by: –– a major focus on the activity in the Middle-East, but also the announce- ment of a geographical diversification (Asia, Africa and to a lesser extent, Latin America); –– the entry on new markets like international organisations, territories surveillance and cyber defence; –– an average annual growth rate of 5%; –– a performance increase, despite increased competition. A strategic review for early 2014 The CEO initiated a strategic review at the start of the year 2014 in order to assess the implemented means, including marketing and commercial ones, in view of the ambition of the business plan. We want thus to determine whether significant strategic changes can even more galvanise DCI’s growth. The results of the study will be used to adjust the business plan. 2008 2009 2010 2011 2012 2013 2014 2015 2016 20172007 2018 112 112 125 125 142 166 189 205 220 235 250 270 129 140 146 166 183 221 227 240 258 269 275DCI’s expansion- The current objectives of the corporate plan (in million EUR) Revenues achieved Revenues Forecast Corporate plan objectives ANNUAL REPORT 2013 21 ANNUAL REPORT 2013 20
  12. 12. Cherbourg Brest Concarneau Cazaux Dax Bordeaux Cognac Tours Marignane Toulon Salon- de-Provence Le Luc Draguignan Nancy PARIS Singapore PERMANENT PRESENCE IN FRANCE OVERSEAS OFFICES IN Saudi Arabia Kuwait Qatar United Arab Emirates ANNUAL REPORT 2013 23 ANNUAL REPORT 2013 22
  13. 13. CONTACT Anthony Maréchal 2, place Rio de Janeiro - 75008 Paris +33 1 44 95 26 08 www.groupedci.com Création :imagedialogue-Mars2014-Photos :SirpaTerre,Mer,AiretGendarmerie-DCNS-DCI-ECPAD-SébastienDupont-REA,DR-navOcéan-Hélidax

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