a message from the Chairman and Chief Executive Officer
The Progress Plan is bearing its first fruit —
After the loss-making year of 2014, it was essential for the Group to become profitable again. The Progress Plan, which resulted from a broad in-house consultation, is bearing its first fruit. In 2015, figures returned to positive territory with net profits of €58.4 million and a stable income of €3.04 billion. Finally, in 2015, DCNS successfully implemented an initial economy drive of €100 million and launched its three-year Progress Plan for 2016-2018. The teams can now be proud of what they have achieved. This recovery has resulted from the commitment and involvement of all staff members, focused on six transformational approaches.
We have also made changes in our organisation with the aim of reducing manufacturing costs and lead times. However, there is still much to be done to make the most of the Group’s outstanding technologies and expertise. In 2015, DCNS devoted almost 10% of its income to R&D, which is above average for actors in the European naval defence construction sector. In order to optimise International our development and production costs, while markets provide maintaining the high quality and performance powerful leverage on which our reputation is founded, we build for growth modularity and adaptability into all our prod- — ucts’ designs, so that they can be customised to meet the specific needs of any navy. We also invest in extending our range of services (through-life support, training, technical assistance, etc.), an approach which gives us a genuine competitive edge. Finally, DCNS is continuing to extend its industrial presence abroad. The Group is now established in some 15 countries, enabling it to provide support and construct infrastructures, as well as the local services required throughout the life and implementation of these programmes.
DCNS | ANNUAL CORPORATE AND SOCIAL RESPONSIBILITY REPORT 2015 6