The Board of Directors that chaired today closed the financial statements of the first half of 2018. The statutory auditors performed a limited review of these consolidated financial statements and expressed an unqualified opinion.

Eric Trappier, CEO

APPENDIX

Financial reporting

The IFRS 8 "operational sectors" standard requires the presentation of information per segment according to internal management criteria.

The entire activity of the Dassault Aviation Group relates to the aviation and aerospace domain. The internal reporting made to the Chairman and CEO, and to the Chief Operating Officer, as used for the strategy and decision-making, includes no performance analysis, under the terms of IFRS 8, at a level subsidiary to this domain.

Definition of alternative performance indicators

To reflect the actual economic performance of the Group, and for monitoring and comparability reasons, the Group presented an adjusted income statement, adjusted for the impact of:

• gains and losses resulting from the exercise of hedging instruments which do not qualify for hedge accounting under IFRS standards. This income, presented as financial income in the consolidated income statement, is reclassified as net sales and thus as operating income in the adjusted income statement,
   
• the value of foreign exchange derivatives which do not qualify for hedge accounting, by neutralizing the change in fair value of these instruments (the Group considering that gains and losses on hedging should only impact income as commercial flows occur), with the exception of derivatives allocated to hedge balance-sheet positions whose change in fair value is presented as operating income,
   
• the amortization of the Thales purchase price allocation (PPA),
   
• the adjustments made by Thales in its financial reporting.

The Group also presents an "available cash" indicator that reflects the amount of the Group's total liquidities, net of financial debt. It covers the following balance sheet items:

• cash and cash equivalents,
   
• available-for-sale marketable securities (at their market value),
   
• financial debts.

We recall that only the interim condensed consolidated financial statements are reviewed by the Statutory Auditors. The adjusted financial data is subject to the verification procedures applicable to all information provided in the half-yearly financial report.

Impact of the adjustments

The impact in the first half of 2018 of the adjustments to income statement aggregates is presented below:

The impact in the first half of 2017 of the adjustments to income statement aggregates is presented below: