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DCNS International Sales

In parallel with the role on the French domestic market, international demand for DCNS products remained strong. Ongoing programs in 2006 included Scorpene submarines for Chile, Malaysia and India, Formidable-class frigates for Singapore, Senit combat management systems for Norways Skjold-class fast patrol boats and Agosta 90B submarines for Pakistan, to name but a few. The other key activity in major programmes was bid preparation. With several customers expected to announce contract decisions in 2007, DCNS is confident that important wins will further the Groups international growth.

DCNS presents ambitious growth strategy to enable DCNS to grow revenue by 50 to 100% over ten years 2010-2020. The first priority is to maintain the Groups status as the French Navys benchmark partner. DCNS also aims to expand into extremely competitive sectors including naval defence solutions for international customers and civil nuclear engineering. The prime condition for success is a 30% improvement in Group performance over three years. This will be achieved through a transformation plan. Growth and higher performance will create value and jobs for the Group as well as our partners, suppliers and subcontractors. Growth and higher performance will also put the Group in a stronger position for future European alliances.

The export naval defence (new shipbuilding and services) market segment represents potential demand exceeding 3 billion per annum, particularly in Asia, the Middle East and Latin America. Aiming to become the worlds leading export naval shipbuilder, the Group boasts a portfolio of tailorable, advanced-technology products and services meeting the latest defence and security needs of navies all over the world.

The Groups 14 sites in France, deeply rooted in the local industrial fabric, contribute to the economic dynamism of the regions. DCNS is also asserting its presence in the international arena via a strategy based on setting up subsidiaries and offices to support the execution of naval defense programs. The Group is also giving itself the resources it needs to expand to other parts of the world, wherever its expertise can be put to good use. As in Brazil, where DCNS set up a join venture, Itagua Construes, with partner Odebretch in 2009, and in Bombay, India, where the Group created a subsidiary in 2008, thereby reinforcing DCNS international presence with facilities in Saudi Arabia, Bulgaria, Italy, Malaysia and Singapore.

The Groups international expansion in the naval defense sector will be pursued through the development of its activities in certain key countries, as was recently the case in India and Greece. International expansion will also be pursued though the launch of a new range of products designed to satisfy the new requirements of foreign navies. In the area of services, DCNS is widening the scope of its activities to include support for ships already sold, training, design of naval bases, etc.

Development in new markets is focused on energy (civil nuclear power and renewable marine energy solutions) and services. In the area of nuclear power, DCNS boasts a wealth of engineering and manufacturing resources developed for the nuclear powered propulsion systems developed for its ships: production, maintenance services, prime contractor services for major operations (new sub-assemblies or the modernization of components). In the area of renewable marine energy, DCNS can offer operators a range of reliable technological solutions and services.




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