DCI is a French company that helps transfer military expertise from the French armed forces to foreign governments. In 2013, DCI had several accomplishments:
- It opened new overseas offices in Singapore and strengthened activities in the UAE, Africa, and Saudi Arabia.
- Major contracts were renewed or secured in Libya, Qatar, the UAE, Saudi Arabia, and with the European Commission.
- Events included the delivery of a new maritime training ship to foreign navies, graduation ceremonies for pilots and cadets, and participation in air shows.
- Partnerships were formed to expand service offerings around comprehensive helicopter support and air surveillance.
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
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03
3. STARTING A NEW
BUSINESS PLAN
/ 06A word from the Chairman
/ 07Key figures in 2013
/ 08Group picture of executive team
/ 09Board of directors
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
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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
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
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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.
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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.
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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
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ANNUAL
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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