Dassault Aviation société anonyme (AM.PA) 2026-07-22 Earnings Call Transcript

To all its employees, and thanks to you, the Dassault family, supported it over the years. I believe that everyone at Dassault Aviation carries the Dassault DNA, which is a passion for aviation, the values passed down through generations, the skills and excellence handed on from 1 generation of engineers to the next. And I believe it was important today to say a few words and thank him on your behalf for everything he did while expressing our deep attachment to his memory to Dassault Aviation and to the Dassault Group that is what aviation and OHP together several other European partners are joining forces to propose VORTEX as to the European Space Agency, a multifunction spacecraft capable of traveling to and from space stations and performing autonomous orbital missions.

Together, integrator of the VORTEX, the central service module and integrator behind proposal. Once again this year, Swedish research firm Universeum ranks our company amongst the most attractive French companies across sectors for students and undergraduates, panel of engineers surveyed places as 4th among their preferred companies, progressing among IT students who rank as 13th, business school students who now rank as 27th. They rank it based on a panel of 20 thousand students from 173 schools and universities polled from November 25 to May 26. June 4, Musee de lais on Les Paris, 10 of our female employees took part in an event organized by Aire Medjer to support women in choosing careers in aerospace. They introduced several hundred school girls and students from the Paris region to their every roles. Many of them that they provide an opportunity to discover a wide range of careers that help keep our aircraft flying every day.

The third safety award ceremony took place on 06/16/2026 at Saint-Cloud in the presence of Loik Segalen, Chief Operating Officer, the safety of our aircraft is our highest priority. It shapes every action and decision across our civil, military, activities throughout our corporate culture. This year, 10 employees received awards for going beyond the usual responsibility in deploying our safety policy. Just weeks after its official unveiling, in Mérignac in March before numerous customers and prospects of Falcon 10X successfully completed its first flight on June 19, Test pilots, Sebastien Dupont, Dunne Cham, Fabrice Dunne appreciated the aircraft's handling during the 2.5-hour flight performed as expected It was a major milestone ahead of the flight test campaign, said our Chairman. Eric Trappier. it is a beginning of a long history for this new aircraft from the Falcon family, the 10X the only aircraft in the world that is brand new, just performed its first flight to date. Mérignac, it is an aircraft that will be a game changer, far bigger aircraft with a far longer range that will be really a flying apartment and Dassault Aviation, its have great pride, especially the manufacturers, the engineers, the technicians, share this collective pride for the Falcon family. Wednesday, July 1, the prototype hall of the Musée de l'Air at Le Bourget was renamed Marcel Dassault at the prototypes hall. The ceremony was held on-site, attended by representatives of the Dassault family, the prefect, representatives of the French Armed Forces, the DGA and Dassault Aviation were all very moved and honored by this initiative, the museum, because for us Marcel Dassault remains the iconic figure who founded the company, just to build aircrafts. there is the aviation, the passion that we all share, but the values that he left us, it is very important. It goes with the fact of making aircraft and the values that have always existed respect for employees, social republican values, a certain vision of society. Organized at the initiative of General Casperfi, Lambie, Chairman of the Museum's Directors, is our founder, We are now going to move to the present presentation of results. A reminder, the context remains challenging. The war ongoing in Ukraine, resumption of hostilities is the certain level of hostilities in The Middle East between Iran, on the 1 hand, Gulf states, and the Americans and France is involved in order to defend the countries with which it has strategic ties, and an update to the military programming law in a challenging budget context with an increase in the French armed Forces budget post closing events July 13, France, Ukraine concluding a road map providing for the acquisition by Kyiv of 16 Rafale. I have filed a contract, has not yet been signed. The state that will negotiate with us on a mutual basis with Ukraine will have to complete the draft of the contract and then ad hoc funding. July 13, together with our partner, AMIAD, I will not just a shareholder, we are also with Akhmata in a partnership. And we performed a collaborative in flight engagement between Rafale and the drone with the Namib elect electronic warfare payload to detect radars, and the EW payload was developed by Aviation Highlight of the first half, the decision by the Indian authorities to acquire 114 Rafale. Discussions are underway to finalize a contract that we hope to see arrive by the end of the year as you saw in the film. First successful flight of the 10X to reset the calendar for flight tests, certification, delivery of first aircrafts. And we are targeting 2029 for that. Let me remind you, as you saw in the film, Dassault, and it is the only aircraft manufacturer in the world. To fly an entirely new aircraft of this size. For many years. No 1 else had achieved that. The final point is the halt of the FCAS announced by the German chancellor and the French president a few weeks ago on the program activities for France the delivery of 2 Rafale in this first half with 43 remaining to be delivered current contracts, the current order book for France. there is a request from the French state to postpone the delivery of 20 Rafale from 2031-2032 to 2033-2034. You will see in the press or the military program, we see 22. But we are bringing forward to and postponing to so that amounts to 20 to find the budgetary leeway in order to fund the new F5 standard of aircraft with the airborne nuclear component that will, carry a new engine, a new radar, and all the interoperability capabilities necessary, collaborative combat and also to integrate AI in the cockpit to better manage the multitude of data that pilots have to process during war missions currently, be it the Air Force pilots in these challenging regions or Navy--National Navy pilots They see the workload and the amount of data constantly increase on every military mission. The Rafale Expo, we delivered 10 Rafale in the first half, 165 remaining to be delivered 208 are bound to be delivered in the order book apart from the new orders that might be booked in India or Ukraine, we are preparing the new deliveries to The UAE at the end of 26, and we are continuing our export prospection. There are a number of countries that continue to show interest in acquiring the Rafale Holt of the FCAS as a joint decision by the French President, the German Chancellor decided by mutual agreement to halt the FCAS and that was notified a few days ago. A Discussions underway to launch a non toll on the tube with France. On a purely French basis initially or in cooperation of those who might wish to join this demonstrator. The aim is to have a demonstrator based on French requirements that might fly in the early 2020 or 2030 Eurodrone, we are in dispute with Airbus. Airbus has asked us to exit the program and we challenged that decision. And so that litigation is just got underway on the space front. You have seen the images, VORTEX is the demonstrator that we have launched on our own funds and that enjoys support from the French Defense Ministry Armed Forces with support granted by the French Defense procurement agency. Initially, VORTEX the first operational version with the submission of a proposal to the European Space Agency as part of an industrial team with Dassault with a clear delineation sharing of who does what and other industrialists join the program. So where the prime architect of the VORTEX and OHB is architect integrator of the service module. We continue to see other European partners who might wish to join this project. We also have non European partners who have expressed interest and with whom we have begun discussions and prospection. On the first half, we delivered 13 Falcon aircraft it is always a bit slow in H1. I say that before you are questions are right. It accelerates in H2. Orders accelerated 23 orders in the first half compared with 8 last year. So a marked recovery in sales in 2026 the advent of the Falcon 10X for its first successful flight and entry into service that has been rescheduled for 2029. In India, We continue our investments in India, providing work to DRAL mainly for the Falcon Ngaipura. We have discussions with the full Indian supply chain as part of the 2014 deal. We already had a agreements with Indian companies as part of the contract for the 26 Rafale for the Indian Navy. We are developing now a pure making India instead of the offsets to integrate the Indian supply chain for manufacturing the Rafale. I cannot say very much more, were in negotiations with the Indian authorities. And then the flight system as we will deliver the aircraft there, and we take response responsibility contrary to what we did back then for the 1 hundred and 26 weeks. Select our suppliers, and we will do the final assembly locally for a number of aircraft. Many of the 114 with local flying continued in just industrial infrastructure. We continue to modernize our industrial capability. Nagpur, India, new building under construction to receive more parts to be manufactured locally in India. We are pleased with the outcome of the initial work done. So we are extending the manufacturer of the Falcon India. Mérignac, a new building to be built in addition to the existing build we have decided to transfer the flight control test benches from Saint-Cloud to Mérignac to a far more modern spacious facility with working conditions far better for the engineers and technicians working on these flight control test benches, and it will not be too far from the aircraft east. Renovation of 10X is, you will have noticed, slightly ahead heavier than the previous aircraft, and there is a need on a number of aircraft pavements to test this new aircraft And so we have to strengthen the ground. And the other plants where installing photovoltaic panels to produce electricity, which is self-consumed as part of our plan to decarbonize our facility and also energy efficiency. Digital and then artificial intelligence, the main challenge going forward. We continue to work traditionally with our friends from Dassault Systèmes 3DEXPERIENCE on the 6X to modernization deployment. that is all systems for production support. They will be implemented in all our plants. I previously stated we are going to take Blue for collaboration for everything that is video with Microsoft and their Teams product plus industrial planning with in house developments. AI, we are going flat out. that is to come. We have automation and generative AI for everything that is internal we are currently deploying. These internal capabilities working with Mistral what is onboard. These are developments that we perform here at Saint-Cloud. We have a second development that we are undertaking with the Thales cortAIx platform that I announced a few months ago. The aim of this is also to be onboarded on the Rafale, as I said, earlier, and also to exchange with the Armed Forces and our Falcon clients to optimize the availability of aircraft. what is important on AI, the use cases, there is not 1 AI that does everything. There are several AI. Once we pick the algorithms, we have to train it to assist generating the use cases then to check where the data are stored, where they come from in order to preserve the security of our IT and onboard systems. The results are proper order intake, 0.9, no Rafale contracts in the first half on Sales up. We have delivered 12 Rafale and 13 Falcon, €4.2 billion sharp. what is interesting to note is the split in the delivery because it is really the flow of the sales just over 50% for the export Rafale, just under 30% for the Falcon backlog and 20% for deliveries in France in which we never forget the support developments and not just aircraft deliveries. When we talk numbers, so order book slightly lower than that of December 31, 2025, We delivered more than we received orders self funded R&D, that is down its logical. We had a strong self funded component for the 10X and 6X. The 6X is ending. The 10 x is beginning its descending flight. We have got the test campaigns underway, a lot of engineering and certification to come, but the bulk of the work is behind us. The results sales of €4.7 billion operating income, €330 million, up with an operating margin of 7.9%. Financial results, slightly below last year's, but that is just a detail. Tell us and other equity affiliates will present it result to the press we had the board meeting with today and there are taxes. I removed the corporate surcharge that was only to run if we would had net income of €570 million. Unfortunately, it is lasting 2 years, so it is minus €74 million. it is almost the level of tax excluding the tax surcharge. it is quite a lot And the net income, we compared to the €74 million in addition we would have the same margin as last year in net. But we are not complaining that it must not last on this corporate tax surcharge. We are focused on it in France and those who do not depend on us certain French order are tied with the French authorities would need to work elsewhere. Many are leaving to North Africa, others to China, the automotive sectors, you have seen others to The U.S. Competitiveness is far more in those countries, even in Europe and countries such as Spain. Portugal. So this text frenzy must be reduced. The consolidated available cash has been going up. The cash flow stands at €1.2 billion and the actual cash is €10.1 billion. Most of this is the advances paid by customers that have ordered planes. The guidance remains unchanged. We are looking at €8.5 billion in net sales by year's end, including 40 Falcons to be delivered and 28 Rafales and we are pretty confident we will be able to stick to that. We bought back some of our own shares And so after this accretion, we now have a 60.77% is held by GIMD. The float is 21.78%. Airbus owns 10.78% and our own shares stand at 0.19%, but we already have a 2 thirds majority with GIMD that is for the half year results, and I am here to take your questions.

Thierry Dubois, Aviation on the 10X, you referred to commissioning in 29. But some time ago between the first flight and the commissioning, you had to allow about 1 year I mean, that is 1 year?

No. Never. Usually, you are talking 2 years rather. And what we found looking at Gulf Stream, Bombardier and Dassault, usually, we are more talking about 3 years because the certification requirements have become more stringent. So that was the reason asked why does it take so much longer. And then how do you account for the resumption in orders of Falcons? Well, the market has been picking up Paradoxically, there is been a renewed interest in Asia. This is good news. We had several orders, more orders in Europe than in Asia than in Europe. The U. S. Is remaining static, but that applies to all types of aircraft. So the market is pretty active. The only requirement is to be well, the challenge is to deliver these on time. We have supply chain issues. Some suppliers are falling behind. And, of course, our own cycles have gone longer because of COVID and other issues. So we have issues. We are not the only ones with such issues. There players are encountering the same issues. Our friends at Pratt and Whitney in Canada for instance, have found the same problem. So it is it a bit challenging to step up delivery. If we did manage to deliver 40 aircraft this year, would be damn good. So why is it that certification takes longer? Well, ever since the Boeing accidents certification has become a more complicated matter and here we have a completely new aircraft, there are new rules new certification rules that did not apply on the 6X, for instance. And so we expect the process to take longer. So we remain cautious. And we say we are after the first flight, say, 29, you have to allow 2.5 years maybe for certification or will get back to you when we have more developments. For Thierry Dubois, have a question there is been a request on information about the collaborative drones systems. Was Dassault involved in this request for information? And could you tell us about your strategy? Yes. Well, there is been a request for information from the procurement agency. I mean, we are not at the stage where the acquisition is underway. The DGA, the French DGA wants to have a better understanding of the market, see what supply looks like. I will not give you details about what are bid will look like. This remains, of course, confidential. But when we put our statement to DGA, I mean, this is pre bid. We well, it will be for the DGA to find out first. Having said that, on the range of drones, it is a bit like AI. You have you have all sorts of AIs and you have all sorts of drones. You have small drones, You have small drones that are manually controlled. There you have them in Ukraine. You have those that are completely controlled by AI, and that is what we are doing with because they are not so much concerned about the hardware of drones, but the way in which these AI drives and controls drones operations and we are interested. that is what we are doing with them and we been working with our engineering teams and we had the test flight not long ago. Then we have surveillance drones, you have a big ones like the euro drone, you have the smaller ones. We do not know what for come out of this, but CCAs, I used not to know what it meant 6 months ago. it is the American name. it is like the well, Generation I, II, or III. We have suddenly this American name CCA, which means everything and anything. These are combat, drones that should be in a position to operate on a battlefield together with a fighter plane, but they could be big, small, or medium sized drones. And so our own actual window is UCA, that is the, combat drone that will be supporting other aircraft in challenging areas We do believe in that concept, even though the budget is not ready yet, but we have been working with other partners to make it happen. And so these would be combat drones that are medium to launch. Size. Thank you. My name is France d'Orcival from Valeurs Actuelles. I would like to have clarifications on I mean, you indirectly answered my own questions, but about the, you have been postponing some deliveries of a warehouse of France and that will give you more time to develop your F5s. We talked We are talking about developing the Rafale standard, but also drones, are not you? Well, as far as things I mean, right now, we are responding to the state, the government's, requests. So in order to help finance the F5, which is an ambitious project, This is a Rafale fighter plane with lots of novelties, new radars, new countermeasures, new electronics, new engines, new calculators, new ways of engaging in collaborative combat. So maybe some AI, in the cockpit. New weapon systems. We know the deterrent deterrence weapons, the ABCD weapons, you know about that. But to bring up this new standard, we need a significant budget, that is 1 thing. And then because there is lots of hardware involved, mean, of course, this will be a very new way. I have been postponing the delivery of new planes so that I am in a position to find my own F5 standard. Because otherwise, we will be stuck with the F4 standard if because then we would have to retrofit that F4 aircraft because only would you have a new aircraft and then you would have to retrofit it and that comes at a significant cost. Because we have to integrate the new equipment. So that is a smart move in a way. I mean, course, it does mean that by 2031, 2032 for the Air Force, This will be a challenge, and they said so, but in as much as we already will have a new F5 standard in equipment, we are operating as of 2023. It means every single aircraft after 2023 will have that new standard and will, so therefore, be will be in a position to take on these new Rafale F5. In the meantime, you will be able to deliver planes to Ukraine. that is smart. But what is the road map then? I mean, what is for this UCAV? Is it still underway? Oh, yes. Well, if you ask me, my answer is yes. But of course, I am not the 1 coming up with the money. It will be for financial partners, but I have been convinced for some time in the armed forces as well. We believe that when we are looking at high intensity missions, challenging penetration missions or how to address ground or ground to air threats. If you have a stealth plane, a drone with the Rafale, that gives you a huge advantage. And we are looking at 2035. We are looking at nuclear deterrence. This is no small feat. And then a final question last but not least, how should I put it? No, no, sorry. I forgot about this. No, no. I will ask it later. Thank you, I am with FAZ. I have a couple of questions about the next generation, fighter craft. Are you ruling out working with Airbus? Even on the combat cloud, for instance? Question number 2, can you give us details on the for cooperation with Sweden? Why might that work better than with Airbus? And number 3, do you expect a decision by April of next year that is prior to the presidential elections. I will be brief on that because that matter of NGF and Dassault Airbus is behind us. We have turned the page. So there is no point revisiting that matter. So that is pretty much we are not going to build a fighter plane together with Airbus. it is a shame really because we had a-- we have a 50-50 partnership, to my mind, worked, Maybe I had it wrong, but 2/3, 1/3 did not work. I explained this many times, it is not so much a matter between France and Germany. it is Dassault and Airbus. 2/3 Airbus, 1/3 Dassault was a problem for me. But it was a problem for them too because they said they did not want to work with Dassault so quite honestly, it made more sense to, put an end to that. Now, for combat cloud, I am not quite sure what that means. I have what does it mean to cooperate to engage in combat cloud? We will cooperate with all countries that the French decide to work with. We will work on the interoperability of various fighter planes, but the challenge is to remain interoperable with European planes made in America such as the F-35. I mean, good luck to those doing that because that is a real challenge. Having said that, if there is a German fighter playing good luck to the Germans. But if there is a French fighter plane, and the 2 fighter planes need to communicate, we will work on that. On Sweden, they have no comment at this point. We are happy to work with countries wishing to work with us. A 50-50 cooperation, to my mind, works better than 3 way cooperation with only 31 third for me. I do not want to press the matter, but if things are evenly divided, on VORTEX with OHB, we are not saying that we are codeveloping. We each doing 1 bit and we work together hand in hand and OHP I believe is a German company, so we do not have an issue with Germany, seen from my view standpoint. No, no. We are expecting a French decision Okay. Good evening. My name is Tara Patel from Bloomberg. And about the combat aircraft. I believe door remains open to partnerships with other countries. Now, would you consider non European partners that are now good customers of Rafales? Or is it your ambition to do things just in Europe? Well, it is hard for me to say in a personal capacity, yes, I would say we could work with other partners. But I know that if you are working on a future fighter plane, what-- it is for the French government to decide, I mean, we have to make sure that things will work with the other industrial Otherwise, we find ourselves in difficult spots. Again, seen from my viewpoint, the answer is yes. But if I look at 1 of my competitors, Tempest, from Britain, they work with Japan, they might work with Italy, It is for states and industrialists to decide whether they want to work together or not, whether you should be made well, does not matter whether you made in the EU or not. As far as I am concerned, again. Do you have a taboo as to the number of partners? Because you see that too many cooks spoil the broth? No, no, I do not have taboos. I mean, we made requests with 6 countries and that worked But when we worked on Eurodrone, I did not have 5 partners that was Airbus, and then I was, 1 partner had 6 and I had only 6 and that is no go. But if there are 6 parties and each gets 6, that is fine with me. Good afternoon. My name is Veronique Guillermard from Le Figaro. A question about the VORTEX. Can you tell us what type of unit partner are you looking for And what kind of non partners have you got? And or at least what kind of talks are you having with? Well, right now, we are working alone on Vortex D. For VORTEX, we are turning to the European Space Agency, And so therefore, we are seeking European partners. And we do have partners in Germany, in Spain. So there are a number of countries. And if others want to join, we are happy to take them on board because it is an ambitious project. And then alongside that, for the same concept, we are seeking partnerships with other countries. Tara Patel from Bloomberg. I had a couple of questions. 1 on the F5, can you clarify the role played by The United Arab Emirates believe there have been talks with the Edge. I do not know if there are other financial talks. I am not quite clear whether they are involved in the project or not or whether this might happen in the future. And then I have another question about the future aircraft, you have been discussing well, that is being discussed with the French government. This very concept of future aircraft. Is that concept changing over time? Is this going to take time as to the shape or the role of that aircraft in the future. What will be the features in terms of stealthiness stealth or whatnot? On the F5, it is certain that all the countries interested in Rafale already Rafale are interested in the F5. They are requesting information from France to say, well, what are your plans for the F5? When we do so, we are studying the preliminary studies to see how far we can go in F5 development to contract with France and exclusively with France to develop--as to develop the F5 as we did for the F4, the F3R. So purely French. But there are a number of countries, including The Emirates, interested in what the F5 might be and perhaps interest in co-- when we did the Rafale back while back, they co funded the electronic part, the Damocles pod, are going to On the future aircraft, well, let me tell you there is a time to hesitate, look at the options and then there is a time to decide. Those who decided to launch the Rafale 40 years ago, at some point, did they know how we were going to wage war to date? Definitely not since the fall of the wall, there was no need for aircraft, no need to wage war, no need for weapons. It was bad thing to produce weapons if you listen to the European commissions. And then after the fall of the war, there were tensions in Europe, a war in Europe, so we need to rearm. And the Rafale is operated on the front. To reassure countries that with the challenging east border They are in operation in The Middle East in order to reassure Gulf states that in partnership with France that Rafale is operational, we had to design an aircraft that could evolve depending on military feedback and take into account a number of factors. So what we need now is once and for all to say this is what we will need. it is not easy in 20, 30 years' time, but with the Rafale, we are extending its life after 40 years. We are gonna extend it for another 40 years. I mean, it is incredible that we have to really take the plunge. And the best way is we absolutely have to decide to go for it. Now is the time. We have the expertise, the skills that are there. They need to be fueled. We have competencies that have not disappeared, but it is beginning to be complicated on the engines. We have not built a combat engine for 30 years. Our friends with Safran, the F5 are more engine and then the engine for the future combat aircraft. We have to go for it. We have to have the right metrics. The demonstrator that is not the final product as it was not the case for the Rafale today, but it was a formula of a fighter aircraft that takes all the parameters with trade offs between the size, someone a very big aircraft. Okay, we see some fly from time to time in The Middle East. Are those who want to build smaller aircraft, there we need an aircraft carrier. it is not that simple. There are many countries that are capable to master those technologies and varied missions, nuclear deterrence and cross well defended border with today's state of the art and anti anticipating what we see in conflict evolution, we need to build a demonstrator to see what we could do as an aviation company with our 75 years of experience, and then we will see the systems. There will be drones. I guarantee you that the combat aircraft will exist. What drones will not replace the combat aircraft that arrive with a combat aircraft, the complexity of battlefield means. We will need to have AI on board and on the ground in preparation and mission feedback to understand how there will be collaborative combat, whether it is a cloud combat, I repeat, I know what cloud combat. We are already doing that. We have just done it with small drones, but in a squadron of Rafale today, there is collaborative combat we have to extend it more data. Well, those metrics that we know. But now we must go for it. Otherwise, it is difficult to say what the war going to be in 40 years. But if we ask ourselves that question, we do nothing. If we do nothing, we will have to undergo some of The US developments. Thank you. Oh, my question has remembered it. Just a few years back when we stopped working with the Germans and other countries and we ended up alone in France. There was quite a bold decision taken back then, 25% of the initial development of the RAFA was done by industry. Is that a possible avenue either for the development of a UCAV or future aircraft it is a contractual matter. It does not call into question what I said. it is a contract. If we put 25%, 10%, or 15% or more in the development, I just want that contractually recover the money afterwards. And that was the way it is done. On self funding of the Rafale and it was my predecessor, so it is easy for me to say that at this stage that well, 25% forget it, you will never get them, and they will not be amortized. So we stopped self funding the 25%. All the contractual arrangements formula. I am prepared to be very in the contractual arrangement. But when you do a business plan in civilian, got marketing, I am going to sell 200 aircraft over 20, 30 years. You produce them and then amortized and it works or it is difficult to say how many future combat aircraft we are going to. it is the state that decides So I think the state has picked another way that is they will pay a fee every time we sell an aircraft and the export market, why not? it is a parliamentary decision taken a lot longer. So we will comply with that without any difficulty. Hi. Mathieu Rabechault from AFP Just to ask you if there was still a plus in having manned aircraft, what the human brings by way of added value compared to AI drone. AI is not mad. We are going to say the human can be mad. And in this madness, he will be capable of going beyond the limits, the intellectual. that is why in the fighter aircraft, the pilots absolutely necessary. The need for AI is going to calculate less fast than AI if he needs an evasive manoeuvre what is the best evasive? Because the time it takes to calculate he will have been shot down but it will be at the heart of the And the heart of the action he will have his human brain with its reason, its fear because there is anxiety when you are fighting and it is genius, his folly, but you could call it genius such that he will be superior and be less expected than AI. Sorry. I really believe that in air combat, man will remain in the loop, might be shifted a bit with drones, with algorithms, but the human will-- there will be a pilot in the aircraft. We asked a question for civilian, you say quite rightly, is the pilot who undermines the reliability. But sometimes the aircraft do not pilot saves it and on the Potomac, AI would have plunged it. Crashed the aircraft, but the human saved it. We have all asked that question For the next 20, 30 years, pilots will remain a key factor in the aircraft even if there will be a lot of automation. If he is onboard, there is no doubt. For us, it is difficult, for example, as I said, in a Falcon, just 1 pilot does not work. The certification agents are not in favor of we are trying to put a pilot who could sleep, but that is complicated while the other is away because you need a way of waking up 1 pilot for the other. Falls sick or has a heart attack over the Atlantic and the complex approach, you need 2 pilots. So increasingly, there will be automation With that automation, given the growing amount of data, there will be algorithms AI algorithms, call them what you will. And automation. But there will always be a pilot, perhaps not the 1 who is activating the controls Nod to the pilot, he thinks he is flying the aircraft but it is the flight control system that flies it, that balances the safety, etcetera, for it to fly. So it is a real challenge of the man machine interface in both in the civilian and military sphere. it is the human factor engineering, something that is important to work on. We are working with universities with ISAE-SUPAERO to try and understand what happens in the human brain to help the pilot to better decide better alerts, more responsive, faster, but his intelligence remains in the loop. Thanks, Just an HR, human resources question and 1 on the Dassault model. To confront the increase in the production rate of the Rafale and the Falcon if the sales trend continues? Do you have to up your headcount and so by how many? And on the Dassault model, correct me if we always dual model business aviation and combat aviation if the VORTEX system works, if it operates so that Dassault has 3 legs, the space, the third leg. I would like that, but I do not have the production schedule of 2025-2020 for the Vortex So we will wait a bit. I think it is more development of exploration. But if we start, if it comes operational after all, why not? That would be interesting. On headcount increase, we have increased headcount significantly. A lot of people retiring. We hired a great deal 40 years ago. So the challenge remains the same. We have to train the new hires. It takes time. that is a workload with the with the ramp up. So we are slowing a bit, getting ready for the ramp up of the Rafale, the Falcon schedule is not rising. If we can have on time delivery, we plan to deliver 40. We are going to go up a little There are bigger aircrafts that are there. We have discontinued other aircraft. That will not really make a big difference. We still continuing to hire. We plan to hire perhaps not at the same rate as the last 2 or 3 years. We are looking and there is manufacturing engineering. So having a brief pause on recruitments. But if we need to hire, we will recruit. But when you recruit, if you have a sudden drop in the workload, it is complicated with the Rafale production rate of 4 in the early 2030s. If you up that to if you go to 1 it is challenging. You are not going to say, Well, we will let you go. Overnight. We do not do that in France. In The U. S, they do. So we have to juggle with that. But no taboos. Hello. Thanks on business aviation. The Falcon, you said earlier that demand is rising in Asia. What type of customers are there? For example, is your customer base, there are new billionaires created by the world of AI, and if there are new clients and a reaction the decision on the taxonomy? if it was only billionaires, well, our we would be out of business. The majority of our clients are companies that need to be run their business efficiently for the trips because it is a global market they need to travel so their companies that make up the bulk of our clients. The type in The U. S. It was general aviation. Business aviation was born there with us to a certain extent. So our aircraft are for large American corporates that need to travel, mostly in The U. S, a big country, and globally, ditto in Europe, its large companies in Europe that have bought business jets. And the Asian model more complicated because Asia, is it China, is it Japan, not quite the same models. it is changing because these countries have developed hugely. There are now large companies. And they need to travel efficiently. If you take a line, you do a point to point. But when you use a jet, you can change your takeoff time, you can change your meeting schedule. Once you have arrived, you can change the next. Destination quite flexibly. With short trips or longer haul trips. it is a flexibility of use of aircraft or airports that are less congested than where your favorite airline flies to. You do not have to stand in line for so often. You get smaller airports when you are on board. You can work You have a workspace with your team. No confidentiality in an aircraft when you are speaking to your neighbor, the guy at the back of the aircraft hears everything and notes everything. So that is security, the business jet model will continue to develop billionaires. Well, if there are billionaires who want to buy the Falcons, we are quite happy to sell them. There are not many. And the decision by the EU, well, we did that really because we were a bit dejected and rather traumatized by a commercial aircraft that has very little alternative fuel and integrated in the EU taxonomy and general aviation that can have a lot of alternative fuel is not there. And if you operate a US business jet, you are not under pressure by the EU So the EU, the commission is turning exclusively against its European companies. it is nothing new. It happens every day. So this disappointment allowed us to file a legal claim. there is discrimination between various types of aircraft and we won the case. This discrimination was recognized and we are returning to something more balanced between the various aircraft types, and we will see the next decisions to maybe the commission will appeal, but I will not comment on the decision. it is just the first stage, and it is not the final stage. Well, that is a good question. We are Well, if there are no further questions, wishing you a happy summer, restful holidays, if, for those of you taking holidays. I will be taking holidays. Very much need them. Thank you all very much. We will see you soon again.