annual report - sabca · . i. sabca group consolidated income statement in accordance with ifrs...

Registered Office at 1130 Brussels, Chaussée de Haecht 1470Factories in Brussels and CharleroiFactory at 6041 Charleroi, rue des Fusillés 11RPM Brussels V.A.T. BE 0405 770 992Consolidation includes the subsidiary: SABCA Limburg N.V.Registered Office at 3560 Lummen, Dellestraat 32RPR Hasselt V.A.T. BE 0438 251 146

SABCASociété Anonyme Belge de Constructions AéronautiquesChaussée de Haecht, 1470B-1130 BrusselsBelgium

Tel : +32.2.729 55 11Fax : +32.2.705 15 70e-mail : [email protected]

www.sabca.com

RepoRtAnnuAl

SABCA expresses its gratitude to Mr Guillaume Dedeurwaerder for hisartistic and photographic collaboration.

Realization and production : www.redline-communication.be

I. SABCA GroupConsolidated income statement in accordance with IFRS

(in millions of EUR) 2005 2006 2007 2008 2009

Revenues 118.90 137.73 136.52 150.27 157.84

Turnover 111.80 127.56 126.08 133.24 143.07

Changes in work-in-progress -1.16 -0.94 1.75 11.55 -0.87

Own construction capitalised 6.62 4.21 5.94 1.74 10.61

Other operating income 1.64 6.90 2.75 3.74 5.03

Operating expense -116.63 -129.87 -123.70 -139.79 -142.12

Result from continuing operations 2.27 7.86 12.82 10.48 15.72

Finance costs -2.02 -2.74 -2.31 -3.15 -3.90

Finance income 3.63 2.88 3.92 6.89 6.85

Result from continuing operations post finance result 3.88 8.00 14.43 14.22 18.67

Income tax expense -0.13 -1.43 -4.51 -4.21 -6.12

Net result for the period 3.75 6.57 9.92 10.01 12.55

Attributable to owners of parent 3.75 6.57 9.92 10.01 12.55

Minority interests 0 0 0 0 0

Total 3.75 6.57 9.92 10.01 12.55

Earnings per share (in EUR) (total number of shares: 2,400,000)

* basic 1.56 2.74 4.13 4.17 5.23

* diluted 1.56 2.74 4.13 4.17 5.23

Headcount at 31st December 983 977 990 1.017 979

II. SABCA Unconsolidated key results – Statutory accounts (in accordance with Belgian accounting principles)

(in millions of EUR) 2005 2006 2007 2008 2009

Turnover 105.42 116.95 117.62 126.77 136.69

Net equity 38.54 40.56 43.98 49.23 52.34

Investments 11.76 9.16 8.61 8.66 14.37

Results

- operational 2.53 5.37 8.35 5.55 6.21

- financial 1.53 0.57 2.29 4.00 3.22

- current 4.06 5.94 10.64 9.55 9.43

- extraordinary -0.50 -2.27 -1.97 0.09 -0.60

- before taxes 3.56 3.67 8.67 9.64 8.83

- income taxes 0.02 0.02 -2.55 -3.15 -3.31

- after taxes 3.58 3.69 6.12 6.49 5.52

Total dividends 1.15 1.25 2.02 1.06 1.82

Current profit per share (EUR) 1.69 2.47 4.43 3.98 3.93

Net profit per share (EUR) 1.49 1.54 2.55 2.70 2.30

Net dividend per share (EUR) 0.36 0.39 0.63 0.33 0.57

p2 - SABCA - Annual Report 2009

Key fIGuReS

SABCA - Annual report 2009 - p3

Management report

Statutory bodies 4

Chairman’s message 5

Message from the Chief Executive Officer 6

Corporate Governance 8

Profile of the Group 11

Principal Areas of Business 2009 14

Environment and Prospects 23

Research and Development 27

Financial Aspects 30

Human Resources 32

Proposals for resolutions 34

The detailed Annual Accounts are inserted hereafter

2009 RepoRT of The BoARd of diRecToRsordinary General Meeting of 27 May 2010

p4 - SABCA - Annual report 2009

sTATUToRY Bodies

sABcA

Board of Directors (and the expiry date of the mandate)

Chairman:Remo PELLICHERO (2013)

Managing Director : Remo PELLICHERO, until 31st January 2009

DirectorsCharles EDELSTENNE, Chairman and Chief Executive Officer Dassault Aviation (a) (2010)

Guy PIRAS, Executive Vice-President, Industrial Operations, Procurement and Purchasing, Dassault Aviation (a) (2010)

Loïk SEGALEN, Executive Vice-President, Economic and Financial Affairs, Dassault Aviation (a) (2014)

Sjoerd VOLLEBREGT, Chairman and Chief Executive Officer Stork B.V. (b) (2010)

Henk VALK, Executive Vice President Fokker Aerospace B.V. (b) (2010)

Jacques de SMET, independent Director, from 24th August 2009 (2014)

Honorary Chairman: Baron Jacques GROOTHAERT (died 23rd May 2009)

Auditor:Xavier DOYEN, Member of the Institute of Company Auditors

sABcA Limburg

Board of Directors (and the expiry date of the mandate)

Chairman:Remo PELLICHERO (2013)

Managing Director : Daniel BLONDEEL

Directors :Loïk SEGALEN, Executive Vice-President, Economic and Financial Affairs, Dassault Aviation (a) (2015)

Ruben J.H. HUTTEN, Director Finance Fokker Elmo B.V., (b) (2010)

Daniel BLONDEEL, Chief Executive Officer SABCA (2012)

Auditor :Luc TOELEN, Member of the Institute of Company Auditors

(a) elected on the proposal of the dassault Group

(b) elected on the proposal of the stork Group

charles EDELSTENNE

Guy PIRAS

Loïk SEGALEN

sjoerd VOLLEBREGT

henk VALK

Jacques de SMET


chAiRMAn’s MessAGe

With the crisis of 2008 still in mind, 2009 announced itself as a difficult period to come. Therefore measures were taken in the beginning of 2009 to adjust the company’s capabilities.

While civil aviation faced significant but variable cuts in production, depending on the type of aircraft, our space activity went well with the launch of seven Ariane 5 across the year.

In the area of Defence, despite the suspension in production of the A400M transport aircraft, the Fighter Maintenance and Modernisation activity remained at a high level during the year thanks to our export successes.

Overall, the company has weathered the crisis well, the parent company generating a 5.5 million EUR net profit on turnover of 136.7 million EUR.

Cash flow remained at a satisfactory level as a result of management efforts for capital used.

The order book reached 371 million EUR, which represents 2½ years of work.

After the exceptional effort of restricting dividends in 2008, the Board of Directors is proposing an overall dividend of 1.82 million EUR, which

corresponds to a gross dividend per share of 0.76 EUR and a net dividend of 0.57 EUR.

In terms of Corporate Governance, the company modified its Audit Committee to take account of the Act of 17th December 2008. One independent director, Mr de Smet, was appointed by the Extraordinary General Meeting of Shareholders held on 24th August 2009. Mr de Smet complies with the criteria for independence and competence provided for in the Act.

The Board has entrusted him with the duties of Chairman of the Audit Committee.

Within the context of its assistance to the Board of Directors, the Audit Committee is responsible on a company level for the tasks as required by law. It reports to the Board of Directors.

During 2010 the company will continue to control its costs and pay attention to its competitiveness, so as to maintain its market share once the financial crisis is over, while at the same time hedging against fluctuations in the value of the dollar.

Remo PELLICHERO


SABCA fAcinG The GLoBAL cRisis


The year 2009 will remain one of paradoxes for SABCA:on the one hand there was a series of technical and commercial successes, while on the other there were problems associated with delays in delivery for a certain number of civil and military programmes.

Our main successes are:

• The signing of the AIRBUS A350 XWB contract for the design and production of flaps support structures and fairings, the first elements of which are scheduled for delivery in 2010. This is a contract that runs for at least 15 years; it cements our position as a direct supplier to AIRBUS and demonstrates our ability to collaborate on an international basis.

• The signing of the PB batch of the Ariane 5 contract, covering the production of structural and mechatronic elements for 35 additional launchers.

• The renewal for 5 years of the maintenance contract for USAF (Europe) A10 aircraft. This renewal demonstrates the USAF’s recognition of our expertise and the quality of our aircraft maintenance and modernisation teams.

• The first flights of two prototype aircraft from the two latest modernisation programmes were recorded.

• Delivery by our subsidiary SABCA Limburg to FOKKER Aerospace of the first composite spars and skins for the horizontal tail plane on the Gulfstream G650.

• Continued development and tests of the nozzle positioning system for the Vega launcher, whose first flight is scheduled within 12 months.

• Initial preliminary studies for the development of a new upper stage for the Ariane 5 launcher.

The efforts made in previous years and again in 2009 enabled SABCA to maintain a sound financial situation. However, the weakening of the

US dollar remains a major concern for which we will make every attempt to find a solution.

In 2010, we will continue to focus our attention on new civilian, military and space programmes.From a technical point of view, innovation remains our main priority, through the research, development and maintenance of our level of excellence in strategic areas, in particular for composite materials, structures, Thrust Vector Control Systems (TVC) of spacecraft launchers and the upgrading of military aircraft.

Furthermore, we will continue to strengthen our international collaboration programmes with countries of high economic potential.

To sum up, 2009 was a difficult year to manage on an operational level and a significant recovery is unlikely to take place soon. However, the new contracts won by SABCA provide promise for future success. In an ever changing context, it is essential for our company to adjust to an environment in evolution. With all our staff, we will be able to meet the challenges ahead.

Daniel BLONDEELChief Executive Officer


coRpoRATe GoveRnAnceThe application of the Corporate Governance Code at SABCA takes account of the size and situation of the company, as well as the structure of its shareholding.

The Governance Charter which takes these factors into account is available on the company’s website (www.sabca.com).

1. Composition of the Board of Directors of SABCA

1.1. T here are currently seven members on the board; the list of members, plus an indication of the main function they exercise outside SABCA and the shareholder at whose proposal they were elected, is shown above.All members of the Board are non-executive directors.

1.2. The Board has not adopted any particular rules, either in relation to a possible age limit for its members, or with regard to exercising the position of Director.

2. Functioning of the Board of Directors

2.1. Frequency of meetings The Board of Directors met on three occasions in 2009. It meets each time it is in the company’s interest. This frequency enables the Board to discuss items such as examining the half-yearly accounts (in August) and the annual accounts (in March), as well as any investments (in December).

Meeting held on 26th March: 6 Directors in attendanceMeeting held on 28th August: 6 Directors in attendanceMeeting held on 17th December: 5 Directors in attendance

2.2. Competence

In the absence of any statutory restrictions, the Board holds all of the powers assigned by law.

The Board determines the strategic and short-term objectives for the company; it approves and decides on the means to be implemented in order

to achieve these objectives. At each meeting and in a general manner, the Board reviews all operating issues that affect the company. 2.3. Control of day-to-day management

At each Board meeting, the CEO, Mr Daniel Blondeel, reports on the progress of business, the search for new business and market prospects, as well as the order book, financial situation and opportunities for investing or disinvesting.

2.4. Invited participants

Members of the Committee of Managers are traditionally invited to attend Board meetings.

2.5. Remuneration of the Board of Directors and the Auditor

The remuneration of the Board of Directors, excluding the Chairman, whose mandate is not remunerated, is set by virtue of the decision taken by the General Meeting of Shareholders in 1990. Said remuneration consisted of a total amount of 95,336.15 EUR for the 2009 financial year.For the same period, the Auditor’s fees were 94,000.00 EUR.

3. Committees created by the Board of Directors

3.1. Permanent Committee

The permanent committee has been in existence since 1970. This Committee is made up of the Chairman, Mr Remo Pellichero, the CEO, Mr Daniel Blondeel, and two representatives chosen by the main shareholders. For 2009, these two representatives were Mr Loïk Segalen (Dassault Aviation S.A.) and Mr Ruben Hutten (Fokker Elmo B.V.). Other members of the Permanent Committee are Mr Jacques de Smet, independent director, the Financial Manager and any other adviser that the Permanent Committee deems appropriate. The Permanent Committee meets as a minimum before each meeting of the Board of Directors, and more frequently if circumstances so require. The Permanent Committee assists the Board of Directors in preparing its decisions.


3.2. Audit Committee

Pursuant to the Act of 17th December 2008 instituting an Audit Committee in companies listed on the stock exchange, the company adjusted its own Audit Committee accordingly. Mr Jacques de Smet, the independent director conversant with matters relating to accounting and auditing, joined the Audit Committee and was appointed its Chairman. The non-executive directors, Mr Loïk Segalen and Mr Sjoerd Vollebregt are the other members of the Audit Committee. The Audit Committee met for the first time on 25th August 2009 to examine the company’s financial statements before publication of the half-yearly results.

The Committee met again on 25th March 2010, focusing in particular on the audit of the statutory annual and consolidated accounts, the methods used to obtain the information and the process regarding the effectiveness of internal audit systems and risk management.

The Committee was informed that company Management had entrusted the task of risk management to the Quality Department and that a staff member from that Department had been appointed Head of Coordination, reporting directly to the CEO.This person’s first assignment will be to analyse management of the 13 main risks identified by the various Processes.

With regard to internal auditing, a proposal was made to appoint an Internal Auditor who is a member of the Financial Direction, but who for the purpose of this particular function, reports to the CEO.

4. Day-to-day management

The Board chooses the person responsible for day-to-day management from among its members or from the outside (articles 11 and 20 of the Articles of Association).Day-to-day management of the company is conducted by the CEO, Mr Daniel Blondeel. A Committee of Managers and a Management Committee* chaired by the CEO, Mr Daniel Blondeel, meet once a month and contribute towards the day-to-day management of the company.

The members of the Committee of Managers for 2009 were: Messrs Daniel Blondeel, CEO, Raymond De Dobbeleer, CFO, Marc Humblet, Marketing and Sales Manager, Jean-Marie Lefèvre, Manager of the Charleroi plant, Pierre De Graef, Manager of the Brussels plant.

The members of the Management Committee for 2009 were: the members of the Committee of Managers, plus Messrs Jean-Michel Sonkes, Head of Quality Department, André Ghysens, Head of Human Resources Department, Roland

Marketing & salesdirection

M. HUMBLET*

human Resourcesdepartment

A. GHYSENS

Brusselsplant direction

P. DE GRAEF*

information systemsdepartmentR. SOYEZ

charleroiplant direction

J.M. LEFEVRE*

Qualitydepartment

J.M. SONKES

chief executive officerD.Blondeel*

financial directionR. DE DOBBELEER*

supply chaindepartmentM. DUBOIS

* committee of Managers

Management Committee

* This is not a Management committee in the sense of Article 524b of the company code.


Soyez, Head of Information Systems Department and Marc Dubois, Head of Supply Chain Department.

Mr Peter Reynaert is the Manager of the subsidiary SABCA Limburg.

5. Appropriation of retained earnings policy

In its proposals to the General Meeting of Shareholders, the Board of Directors aims at reconciling the high level of investments required for the company’s aerospace activities with a reasonable return on capital.

6. Shareholders

Dassault Belgique Aviation S.A., a virtually 100% subsidiary of the Marcel Dassault Industrial Group, holds 52.96% of the company’s capital. The Dutch company, Stork B.V., holds 43.57% of the capital notably through its subsidiary, Fokker Aerospace B.V. The balance of 3.47% is quoted on the Euronext stock market in Brussels.

7. Related-party transactions

Sales and purchases are made at market price.Balances outstanding at the year-end are not guaranteed and are made in cash. No guarantees were provided or received for related-party receivables.For the exercise 2009, the Group did not recognize any provisions for bad debts relating to amounts receivable from related-parties.This evaluation is done by examining the financial position of the related-parties and the market in which they operate.Identifying and values are listed in note 14 of the consolidated accounts.

8. Management of risks and uncertainties

The principal risks and uncertainties faced by the group are outlined below :

Cash and liquidity risksThe Group is not exposed to any significant market risk with regard to its financial debts.Cash resources enable the Group to meet its commitments without any liquidity risk.

Credit riskThe Group performs its cash and foreign exchange transactions with recognised financial institutions.The Group limits counterparty risk by performing most of its sales in cash and ensuring that the granted loans are secured by the Belgian Export Credit Agency (Ducroire) or collateral.Considering the trade receivables impairment method applied for the drawing up of consolidated financial statements the percentage of outstanding receivables not impaired at the closing accounts is immaterial.

Market riskexchange risks The Group is exposed to an exchange risk on sales denominated in US Dollars, the major part of its expenses being expressed in euros. The Group covers this risk using forward sales contracts and, if necessary, foreign exchange options. It hedges its net future cash flows only if they are considered highly probable and partially to ensure that the first future cash flows will be sufficient to exercise the foreign exchange hedges in place. The amount of the hedge may be adjusted according to the variability in the timing of expected net cash flows.

Other risks • the most important risk is the evolution of the

raw material prices;• the risk of ongoing difficulty to find personnel

with regard of the needs of the company;• non-obtaining or loss of licence (political risk).

pRofiLe of The GRoUp


The SABCA Group (Société Anonyme Belge de Constructions Aéronautiques, and its subsidiary, SABCA Limburg) has in the course of its development, diversified into the three markets that today make up the bulk of its business. These markets are Space, Civil Aviation and Defence. The SABCA Group conducts its business at three operating sites located in the three regions of Belgium. The company is involved in Belgian and international programmes either as project supervisor, partner or subcontractor. SABCA’s exports represent almost 85% of its turnover.

Working in the three main areas, the Group is

involved in the study, design and manufacture of structural elements, fitted sub-assemblies and servo systems.

As part of its defence support business, it handles the maintenance and modernisation of military aircraft, as well as the production of kits and replacement parts. The Group has always been able to assist in producing specially customised products that meet the needs of its customers.

In addition to production, the nature of SABCA’s business requires significant involvement in Research, Development and Industrialisation, as well as in the area of Quality Assurance. The Group also abides by the strictest environmental


standards and makes appropriate investments to ensure that this remains the case.

Every department complies at all times with the national and international standards required both by civilian and military authorities. The high level of qualification demanded of staff is provided by training programmes organised by the Human Resources department.

The Group is attuned to a globalised marketplace. It works with numerous partners and has gradually built up a network of international relations.

The Group is characterised by its operating flexibility based on the autonomy of each of the areas in which it works and the efficiency created by working as a team with customers, starting from the design stage and going through to production, delivery and after-sales service.

Controlling the development of costs is one of the Group’s ongoing objectives.

The Group conducts a policy of investing in and developing technologies in its various areas of excellence, while at the same time using the services of subcontractors in an appropriate manner.

pRincipAL AReAs of BUsiness 2009


spAce

Ariane 5

SABCA’s contribution to the Ariane 5 launcher involves its three production sites and two of its business lines, i.e. the manufacture of structures, and the production of servo systems and other equipment. All of the elements supplied as part of the Ariane 5 programme have been developed by SABCA’s design departments “structure” and “mechatronic”.

SABCA supplies the following structural elements for each Ariane 5 launcher : two front skirts (“JAV”), two rear skirts (“JAR”), the two vibration absorbers (“DIAS”) between the JAV and the body of the launcher and the inter-stage separation rockets (Acceleration Rocket Frames).

SABCA also supplies the following equipment for each launcher: the Engine Activation Group (GAM) and the Pneumatic Snatch Off Connectors (PCP) for the Main Cryotechnic Stage (EPC), the Nozzle Activation Groups (GAT) for the Powder Acceleration Stage, the Hydraulic Servomotor Subsystems (GHSM) for the Upper Cryotechnic Stage.

Vega

SABCA’s responsibilities in this smaller European launcher encompass the development and manufacture of a structural element in the form of the 0/1 inter stage skirt, and the development and manufacture of the nozzle positioning systems for each of the launcher’s four stages, Thrust Vector Control (TVC). These TVC systems include the guidance electronics, which are built around the HBRISC2 processor developed by SABCA, the power electronics, high-performance electromechanical actuators and power source (Lithium Ion battery). This gives SABCA total control over the nozzle positioning subsystem.

The development and qualification of the launcher components continues.In line with requests from our customers, modifications were developed and incorporated in 2009, including a new telemetry system in particular.After delivering the first models to Kourou to be used in the system tests, SABCA will deliver the components for the first flight model during the first half of 2010.

This European launcher is scheduled to make its first flight within the next 12 months.


civiL AviATion

AIRBUS A380

The rear lower shell, WP 12223, produced by SABCA and commonly known as the “T-shape”, forms part of the central section of the A380. This sub-assembly measures more than 11 metres in length by 5 metres wide and its location at the base of the aircraft makes it a constraint node that is required to carry the stresses from the fuselage during in-flight manoeuvres or operations on the ground and transmit these stresses to the landing gear.

Deliveries of these T-shapes for the very large aircraft of AIRBUS were speeded up in 2009 and rose to 16, compared with 8 in 2008. However, numbers remained lower than initially forecast. Numerous modifications were also made for customer options (customisations) and these represented a major workload for the programme, both for our design department and our production teams.

Details of SABCA’s contribution to the competitiveness enhancement programme for the A380, Power 8, introduced by AIRBUS in 2008, were set out in the first half of 2009. The way production is organised, and assembly in particular, as well as the entire supply chain, were the subject of an in-depth examination and measures to optimise the process are put in place. The first effects of this programme will become noticeable very soon.

The end of 2009 saw the announcement of major changes to the order in which aircraft are delivered. These changes were accompanied by adjustments in allocations to the airlines. Each time they occur, these changes require a great deal of flexibility on the part of our production and assembly lines in order to meet the new needs expressed by our customer.

The development project for the 800e version (with increased take-off weight), mooted by AIRBUS at the end of 2008, was officially launched after the demonstration in the CDR (Critical Design Review) of both the feasibility and good chances that this version has of succeeding; studies will be carried out in 2010 with the aim of starting production on the new version from 2011.

AIRBUS A340-500/600

The manufacture of components for this programme, i.e. the WP15 pressurised floors supplied by SABCA to AIRBUS in Saint-Nazaire, and the flap track fairings supplied by SABCA Limburg to AIRBUS in Bremen, was again slowed down in 2009. The elements for 5 aircraft were delivered during the year, compared with 11 in 2008.


AIRBUS has informed us that from 2010 this aircraft will only be built for specific orders from airlines, on terms yet to be defined.

The impact that this decision by AIRBUS will have on stocks and future supplies of raw materials at SABCA – and especially at SABCA Limburg – is currently being examined.With this in mind, spare parts support will be particularly critical and will be the subject of an appropriate special procedure.

AIRBUS A330/A340-200/300

On the other hand, the A330 programme looks like keeping all its promises. While waiting for the A350 XWB to come into service, which is due to take over shortly from the A330 programme first launched over twenty years ago, deliveries to the airlines are in full swing.

SABCA’s participation in this programme involves supplying the aircraft’s tailcone. These units were developed by SABCA in Brussels, where they are manufactured and assembled. SABCA Limburg also supplies various laminated composite components for this same successful programme.

We have also seen resurgence in requests for after-sales service on this older programme – mainly supplies of AOG spare parts. SABCA and SABCA Limburg have fine-tuned the way in which they are organised so that they can provide an efficient and reliable response to the needs of AIRBUS.

AIRBUS A318/A319/A320/A321

This programme very much remains the largest for AIRBUS, with 402 aircraft delivered in 2009.

SABCA Limburg supplies all of the composite ribs for the vertical tailfin on this aircraft, whereas the Direct Drive Valves (DDV) are supplied by SABCA in Brussels.These DDV are incorporated into the braking systems of the A320 family by our customer, MESSIER BUGATTI. Developed by SABCA’s mechatronic design department, the DDV have undergone a major upgrading of definition in recent months.The new DDV should enable the high-rate of manufacture of this sophisticated product to be improved.


AIRBUS A350 XWB

After months of work by our teams on the calls for tenders for various sections of the A350 XWB, SABCA was awarded the contract in January 2009 to develop and supply the flap supports structures and fairings for this new family member in the AIRBUS range. It appears to be a highly promising programme since it will replace the current A330/A340 aircraft, which has been a success in a profitable market. SABCA is responsible for four mechanisms per wing allowing the deployment of the aircraft’s wing flaps. They consist of a fixed beam and mobile lever articulated by a ball joint. They are protected by composite fairings produced by SABCA Limburg.

During the development phase for these elements, our engineers have to deal with numerous technical enhancements aimed at improving definition while reducing mass and cost. SABCA’s scope of responsibility for one of these mechanisms has been expanded in 2009 allowing AIRBUS to achieve a significant reduction in the aircraft’s wing mass.

DASSAULT Falcon 900-2000 and 7X

The assembly and manufacture of structural elements for DASSAULT Aviation’s Falcon 900, 2000 and 7X aircraft are handled by SABCA in Brussels and by SABCA Limburg in Lummen. Production rates vary according to our customer’s requirements.The effects of the financial and economic crisis were also felt in sales of the Falcon business aircraft.Delivery rates for the horizontal section of an extrados panel (EPH) and engine cowlings by SABCA Limburg were at a lower level than in 2008.

Given the reduction in aircraft sales, SABCA did not assemble any components for the DASSAULT Aviation site at Argenteuil in 2009. In addition to this, the activity of machining and forming the panels for the central section for the DASSAULT Aviation facility at Seclin, which slowed sharply at the beginning of the year, was suspended at the end of 2009.

Machining the panels for the F7X’s rear tank continued in 2009 and a slight recovery in this area may occur in the second half 2010.

In addition, the effects of the crisis were also felt at SABCA in Brussels for the production of various mechanical, electrical, hydraulic and pneumatic equipment, including servo actuators, nozzle actuators and connecting rods for the Falcon 900 and 2000 business aircraft.However, an industrial cooperation agreement was reached with our customer DASSAULT Equipment in Argonay. This agreement is for SABCA to assemble servo actuators for the Falcon 900 and 2000, as well as handle repairs of Alpha-Jet accessories. A team of assembly engineers was trained for this specific activity at our customer’s site in December 2009. This contract constitutes recognition of SABCA by Dassault Aviation in the areas of maintenance accessories and production.

GULFSTREAM 650

This aircraft flew successfully for the first time in the United States in November 2009.

SABCA Limburg continues to manufacture and develop composite elements for the tailfin for our customer Fokker Aerospace, which is a partner with Gulfstream in this programme.

Certification of the aircraft is expected for 2012 and this will be followed by a rapid increase in the rate of delivery.


defence

Charleroi

Our Charleroi site continued its maintenance and modernisation work on fighters, helicopters and accessories for the Belgian Armed Forces, but particularly for export contracts.

The work carried out for Belgium stabilised in 2009 after the fleet of F16s and helicopters operated by the National Defence Forces was reduced.

The programmes for modernising the Mirage F1 and French Alpha-Jet were continued. SABCA flew the prototype aircraft at the end of 2009 and began a programme of flight-testing. Deliveries of the series modification kits also began. In parallel, work commenced on aircraft in the series at customer locations.

The volume of maintenance and modification work on the A10 aircraft remained very high and a new 5-year contract was signed with the USAF in September 2009.

Brussels

The technical problems encountered in the development of the A400M large transport aircraft ordered by OCCAR forced AIRBUS Military SL (AMSL) to postpone the date of the first flight, as well as to review the aircraft’s certification programme and renegotiate the contract with its 7 client countries in Europe.The maiden flight finally took place on 11th December 2009 and the aircraft is now undergoing its certification programme by continuing its test flights at the testing centre in Seville.

SABCA and SABCA Limburg are partners of AIRBUS Military SL (AMSL) in this programme through FLABEL Corporation, the company that represents the Belgian industrial interests involved in this development.

SABCA is responsible for the development and manufacture of two of the four mechanisms used to deploy the wing flaps. These units, consisting of a fixed beam and moving lever, are delivered to AIRBUS in Filton, where they are attached beneath the wings.

SABCA Limburg is in charge of producing the composite wing flap skins for this aircraft. These parts are delivered to Bremen, where they are

incorporated into the flaps by AIRBUS, which then delivers them to Filton for assembly on the wings.There are no deliveries of parts for the A400M scheduled in 2010.

SABCA and SABCA Limburg have complied with their commitments, but in view of the problems encountered by AIRBUS Military SL (AMSL), production and final certification activities will not resume until next year.

With regard to the Alpha-Jet, SABCA obtained qualification to carry out the overhaul of the servo actuators, following on from which a 4-year contract was signed with DASSAULT Equipment.


QUALiTYA number of audits to monitor our quality system were conducted to confirm the certifications, approvals and other qualifications obtained previously.

The Quality Management System was expanded in line with the development of the reference systems that apply to our business. As a result, the system for analysing risk was extended to all of the management processes covering the whole company.

enviRonMenT 2009 saw the start of a programme named ENVIRO. This programme is designed to achieve the introduction of an environment management system that complies with the ISO 14001 international quality standard.Phase 1 of the ENVIRO programme, which ran through 2009, covered the preliminary environmental analysis of SABCA’s facilities and the implementation of priority measures. An initial Environment Department Review was held at the end of 2009 with the signing of the first environment policy statement.

Elsewhere, the painting shops in Brussels received qualification, enabling the application of new ranges of water-soluble paints so that the use of solvent-based paints can gradually be relinquished.

indUsTRiAL invesTMenTsIt was decided in 2009 to introduce new surface treatment facilities in Brussels for large-dimension parts. A new 3000m2 building will accommodate 3 treatment lines to handle anodising, penetrant inspection and painting. These highly automated means of production will incorporate the new environmental requirements of the REACH legislation. This will enable SABCA to confirm its strategic position for producing structural aircraft components from next year onwards.An investment was also made in two specific items of equipment at SABCA in Brussels in 2009. This new equipment strengthens our production capabilities and consolidates the company’s position in the production of servo controls. It consists of a REK degreasing machine and a vibrations bench that is already supporting the manufacture of servo controls for civil and space programmes.

SABCA Limburg took delivery of its third autoclave in February 2010. With an external diameter of 6 metres and 17 metres in length, this autoclave is one of the biggest in Europe for manufacturing large composite parts.

MoveMenTs in The Us doLLAR eXchAnGe RATeThrough its policy for managing exchange rate risks on its current contracts, the company continued to attenuate the effects of the persistent weakness in the US dollar in 2009.The company organises its purchases of goods and services in foreign currency in order to restrict any residual exchange risk.However, the low level of the US dollar remains a determining factor for the future of the company.

oRdeRsSABCA orders reached 134 million EUR in 2009, taking the order book to 371 million EUR.This order book includes an amount of 155 million EUR that corresponds to SABCA’s contractual participation in firm orders received by its customers and for which confirmation is only given shortly before delivery.

enviRonMenT And pRospecTs


spAceThe production of elements for Ariane 5 will continue in 2010, highlighted by the delivery of the first launchers in the PB contract.Over the course of the next few months, particular attention will be focused on the heavy production resources for this contract. In addition, certain problems relating to the obsolescence of components are still being examined.

SABCA is optimising the architecture of the TVC systems designed for a future reusable upper stage for the Ariane launcher.

Delivery by SABCA of the first Vega flight unit is scheduled for the first half of 2010. The success of this first flight will enable the launcher to meet European institutional requirements and also meet demand on the world market.

With the qualification of its positioning systems in the Vega programme, SABCA will endeavour to use the new knowledge and skills acquired in the electrical activation of nozzles to benefit other launchers and space vehicles.

civiL AviATion As a result of the global financial crisis, the pace of deliveries to civil aviation programmes will not pick up significantly in 2010.SABCA and SABCA Limburg will be preparing in 2010 for the first deliveries of elements for the A350 XWB.

In parallel to this, SABCA hopes to become involved in new programmes such as the SMS, which is DASSAULT Aviation’s new business plane.

We also intend to confirm our position in the market for composite materials by drawing on the expertise we have developed both through production and our design department.The research programmes conducted in this specific area by our structural design department will help bring our high ambitions in this niche market to fruition.The application of this new technology to fairing elements on the A350 XWB is currently being examined at SABCA Limburg.

There will be an increase in the production rate of elements for the Gulfstream 650 from 2010 onwards and this increase will then be continued into the years ahead.


defenceOver the years to come, the company at SABCA in Charleroi will continue to rely on the expertise built up in relationships with its well-established customers to promote its equipment maintenance skills and the modernisation of units for export.

Beyond the F16, the modernisation programmes for the Alpha-Jet and Mirage F1 currently underway, as well as the work on other types of

aircraft, such as the A10 and helicopters, will be used to look for new export business. This high level of dependency on export sales success represents a major concern for the Charleroi site where workload will diminish during 2010.

At SABCA in Brussels and SABCA Limburg, the production of elements for the A400M has currently been halted and is due to resume at the end of 2010 to meet delivery commitments for 2011.


QUALiTYIn view of the fact that our main certifications expire in 2010, this year will see the complete recertification of our Quality Management System by an accredited certification body under the AS/EN 9100, AQAP 2110 and ISO 9001:2008 systems.

There is also a plan to introduce a quality system suited to the needs of civil aviation equipment maintenance and to obtain the required corresponding approvals from the authorities for this type of activity.

enviRonMenTThe ENVIRO project team in 2010 will involve more staff from the main workshops, offices and laboratories. They will be given training that will enable them to play an active role in implementing an Environment Management System that complies with ISO 14001.

The aim for 2010 is to conduct an in-depth environmental analysis that encompasses environmental risks and to introduce relevant environmental indicators with ambitious targets that will enable us to reduce our environmental impact over time.

ReseARch & deveLopMenT


coMposiTesSQRTM – ECTAS (Enhanced Composite Technologies for Aircraft Structures)We continued to develop processes enabling hot drape forming from flat laminates manufactured using an automatic tape layer machine. As part of the ECTAS development programme, it has been our goal to use the same technologies and adding SQRTM (SAME QUALIFICATION RESIN TRANSFER MOULDING), to produce a demonstrator with remarkable high-performance features based on a specific design that moves away from the classic “black metal”. SQRTM applications are being examined and may include panels, winglets and aircraft floors in particular.

A composite bulkhead with integrated stiffeners and beams, developed and produced by SABCA as a demonstrator, was a JEC Award 2010 finalist.

MOJO (MOdular JOints for Aircraft Composite Structures)As part of the European MOJO programme, it was our purpose to innovate and create new types of metal/composite joints. The definition and production work to make a demonstrator was conducted and completed in 2009. The manufactured beam was subjected successfully to a series of rigidity trials, as well as static and fatigue tests.

This demonstrator won an Innovation Award as part of the JEC Composite Paris 2010 show at which it was displayed.

IMAC PRO (Industrialisation of MAnufacturing of Composite PROfiles)This project, launched in mid-2008, involves the braiding of composite parts for applications such as the production of large sections for frames or beams.

Composite Fibre PlacementThis technology currently being examined should allow to increase the curvature of parts as much as possible and contribute to materials savings compared with the tape layer machines used at the moment.

spAceA5ME (Ariane 5 Midlife Evolution) Development of the new upper stage of Ariane 5 called for a robust and redundant architecture to be defined. SABCA worked on this project with its partners ASTRIUM and ETCA. The design for electric actuators put forward by SABCA was recognised as being particularly innovative. It is based on a specific motor controlled from the outset by a radiation hardened HBRISC microprocessor designed by SABCA.

Ariane 6A study for reducing technological risks and the examination of new load arrangements applied to structural elements made from composite materials that come under great stress is currently underway as part of a development project intended to lay the foundations for an Ariane 6 launcher ahead of the next ministerial conference in 2011.

IXV (Intermediate Experimental Vehicle) To enable this experimental space vehicle to re-enter the atmosphere, there was a need for a mechanism with a greater level of performance to activate the flaps. To achieve this, SABCA has begun the initial development phases on behalf of THALES ALENIA SPACE to supply an intelligent actuator based on the technology developed for Vega.

Vega In 2009, the SABCA structure design department worked on various modifications for the 0/1 inter stage skirt of the Vega launcher. In particular, a new telemetry system was developed to be incorporated in this structural element, which will be produced under SABCA’s responsibility.In terms of the equipment intended to be used in this launcher, the TVC system for the P80 first stage of the launcher was qualified in 2009. Completion of the qualification of the TVC for the Zefiro 23 (2nd stage), Zefiro 9 (3rd stage) and Avum (4th stage) is scheduled for the coming weeks.


ATF (Advanced Thrust Frame)The ATF multi-engine composite frame demonstrator was produced and tested successfully in 2009.

ExpertThe C/D phase of the Expert project was begun in 2009 after the critical design review (CDR) held in October 2008. As a result, 2010 will see delivery of the cold structure for this device for re-entering the atmosphere. This initial structure is intended for ground testing.

civiL AviATion AIRBUS A380A preliminary study carried out at the request of AIRBUS in 2009 enabled the main effects of an increase in loads to be verified in the wake of the decision taken by AIRBUS to launch a

new version A380-800e. This version will enable the load carried by the aircraft on takeoff to be increased. The detailed study required for additional certification will be carried out in the second half of 2010 as soon as details of the new loads have been supplied by our customer.

A350 XWBAs part of this project, SABCA has commenced work on a number of preliminary studies and these were continued in 2009.These studies are aimed at lightening the structures through the materials, processes and calculation methods used, as well as examining the assemblies and performance under stress of the composite materials, with the optimisation of inspection methods and an ongoing quest to reduce costs.This search for excellence also applies to the methods and tools used to manage the product throughout its entire lifecycle.In 2009, after an on-site cooperation phase at our customer, the development of this new aircraft advanced to reach the critical definition review stage. This stage will then make it possible to proceed with gearing up for production and the start of manufacturing for the first elements to be delivered in 2010.

defenceSABCA in BrusselsThe A400M aircraft (MSN 1) began its testing programme in December 2009. In total, it will involve 1200 hours of flying time.The certification dossiers for the elements developed by SABCA are underway and are due to be submitted to AIRBUS in 2010.

SABCA in CharleroiThe Design Department is working on the modernisation project for Alpha-Jet and Mirage F1. The various modernisations involve a complete revamp of the cockpit and incorporate new avionics into the aircraft. As part of its role as an aircraft manufacturer, SABCA produced prototypes and then proceeded with the first flights aimed at qualifying this new configuration for the plane, whose operating performance has been extensively enhanced.

0

5

10

15

20

25

30

35

40

05 06 07 08 09 05 06 07 08 09 05 06 07 08 09

3634

30

finAnciAL AspecTs

defense Aerospace civil Aviation

Turnover per sector of activities (in %)

Geographical distribution of turnover (%)

Outside Europe 12%

Belgium 15%

Europe 73%

0

1

2

3

4

5

6

7

8

359

350

346

374

371

111

108 114

155

134


1. SABCA GROUP (in accordance with IFRS)

The SABCA Group achieved a turnover of EUR 143 million, compared with EUR 133 million in 2008.

The result from continuing operations stands EUR 15.72 million in 2009, a rise of EUR 5.24 million compared to 2008. This figure benefits from reversals in provisions, but also includes a higher charge for depreciations.

The fall in interest rates explains the EUR 0.79 million reduction in the finance result compared to the previous financial year; it stands EUR 2.95 million in 2009.

This brings the result from continuing operations after finance result in 2009 to EUR 18.67 million, a rise of EUR 4.45 million.

The Group records a net profit of EUR 12.55 million in 2009, which is an increase of EUR 2.53 million compared to 2008, after current and deferred taxes.

2. SABCA Statutory accounts (in accordance with Belgian accounting principles)

Turnover amounts to EUR 137 million, up by almost 8% compared to 2008.

The operating result stands EUR 6.21 million in 2009; it was EUR 5.55 million last year.The rise in turnover and the write-downs of provisions are the positive effects which have impacted this increased result.

The financial result totals EUR 3.22 million, down by EUR 0.78 million compared to 2008 as a result of sharp reduction in interest rates on term deposits.

The profit for the financial year 2009 is EUR 5.52 million compared with EUR 6.49 million in 2008.

financial

order book

intangible

placement of orders

Tangible

Investments (MEUR)

Orders (MEUR)

05

05

06

06

07

07

08

08

09

09

0.04

7.89

3.83

4.94

4.22

4.08 4.22

2.90

5.77

7.48

6.79

0.10

hUMAn ResoURces

05

983 977 990 1017 979

06 07 08 09


personnel developmentThe company headcount was 979 at 31st December 2009.

In order to respond swiftly to the crisis in the aeronautical and space market and to balance the staff available with the actual workload, SABCA was obliged to decrease its headcount in Brussels at the beginning of 2009. Temporary staff were also cut back.For these same reasons, SABCA had to resort to layoffs in certain departments.

TrainingAs in previous years, a special effort was made to ensure the acquisition and development of technical skills that meet the needs prompted by new contracts and the requirements linked to the various certifications.Against this background, training courses were held on aircraft control systems, non-destructive testing, welding based on aerospace standards, servo control systems, etc.

To overcome a quantity-based shortfall in specialist professionals, SABCA developed a new training plan in its Brussels branch at the end of 2009 focusing on the trade of precision mechanic.This training plan, developed in close collaboration with SABCA’s regional employment and training partners (Iristech +, Wan and Actiris), received good response from jobseekers. The training centre was given new equipment for this programme, such as pneumatic simulators, servo control assembly kits and specific measurement instruments.

It should also be noted that the training programme run in 2008 for the trade of aeronautical fitter was completed successfully.

Training on the use of design software (sizing and design) was provided at special courses.

New supervisors recruited also received dedicated management training.

Language courses had their specifications modified to meet operating needs better and new forms of collaboration were developed with efficiency in mind.

health & safetyAs ever, special attention was focused on safety. In addition, the safety training programmes concentrated on environmental requirements.We were able to reap the rewards of the ongoing healthy and safety campaigns run by our safety department to promote a safer working environment. In 2009, there was a significant reduction in the number of hours related to lost time accidents.

Personnel trends (SABCA Group)


pRoposALs foR ResoLUTionssTATUToRY AppoinTMenTsThe term of office as Director of Mr Charles EDELSTENNE will end at the conclusion of the General Meeting of Shareholders on 27th May 2010.The Board of Directors proposes to the General Meeting that the term of office of Director Mr Charles EDELSTENNE be renewed for a period of six years, expiring immediately after the Ordinary General Meeting of Shareholders of 2016.

The term of office as Director of Mr Guy PIRAS will end at the conclusion of the General Meeting of Shareholders on 27th May 2010.The Board of Directors proposes to the General Meeting that the term of office of Director Mr Guy PIRAS be renewed for a period of six years, expiring immediately after the Ordinary General Meeting of Shareholders of 2016.

The term of office as Director of Mr Sjoerd VOLLEBREGT will end at the conclusion of the General Meeting of Shareholders on 27th May 2010.The Board of Directors proposes to the General Meeting that the term of office of Director Mr Sjoerd VOLLEBREGT be renewed for a period of six years, expiring immediately after the Ordinary General Meeting of Shareholders of 2016.

The term of office as Director of Mr Henk VALK will end at the conclusion of the General Meeting of Shareholders on 27th May 2010.The Board of Directors proposes to the General Meeting that the term of office of Director Mr Henk VALK be renewed for a period of six years, expiring immediately after the Ordinary General Meeting of Shareholders of 2016.

AppRopRiATion of pRofiTsThe appropriation account included in the annual accounts presented to the Meeting of Shareholders is as follows:

1. Profit for the year for appropriation 5,466,678.75 EUR2. Profit carried forward from previous year 22,185,415.09 EUR3. Profit for appropriation 27,652,093.84 EUR

Making use of the powers conferred on it under article twenty nine of the Articles of Association and in accordance with the traditional policy aimed at ensuring a fair share between the return on capital and future self-financing and considering the short-term requirements of the company, the Board proposes that the Meeting of Shareholders approve the following appropriation:

1. Profit to be carried forward 25,140,996.65 EUR2. Return on capital: 1,824,000.00 EUR i.e. for each of the 2,400,000 shares: • a gross dividend of 0.76 EUR • a withholding tax of 0.19 EUR • a net dividend of 0.57 EUR3. Other beneficiaries Staff profit-sharing: 687,097.19 EUR

Subject to the allocation being approved by the Meeting of Shareholders, a net dividend per share of 0.57 EUR will be paid from 3d June 2010 by transfer to shareholders entered in the register of registered company shares. For shares held in securities accounts, the bank or broker will automatically handle payment of the dividend.

TO BE PRESENTED TO THE GENERAL MEETING OF SHAREHOLDERS

finAnciAL schedULeGeneral Meeting of Shareholders : 27 May 2010Ex-date : 31 May 2010 Record date : 2 June 2010 Payment date : 3 June 2010

AnnuAl Accounts

p2 - Annual accounts 2009 - SABCA

Declaration of the person responsible for the report

I attest that, to my knowledge, the financial statements authorized for issue by the Board of Directors on March 30, 2010, have been prepared in accordance with the applicable accounting standards and give a fair view of the assets and liabilities, financial situation and income or loss of the company and the other company included in the scope of consolidation.And that the management report includes a fair review of the evolution of the business results and financial situation of the company and the other company included in the scope of consolidation together with a description of the principal risks and uncertainties that they face.

Brussels, April, 15, 2010

R. PELLICHERO Chairman

Annual accounts 2009 - SABCA - p3

2009 Report of the Board of DirectorsOrdinary General Meeting of 27 May 2010

Consolidated annual accounts 04

Auditor’s Report 26

Non consolidated annual accounts 30



Consolidated statement of financial positionFollowing the standards IFRS (International Financial Reporting Standards)

(in thousand EUR) 09 08Assets Non-current assets 95,822 94,001

Intangible assets 43,747 38,182

Property, plant and equipment 51,812 55,054

Affiliated enterprises 111 118

Financial assets and other non-current assets 152 647

Current assets 204,367 164,753

Non-current assets held for the sale 0 1,575

Inventories 29,454 25,576

Work-in-progress 32,192 32,787

Trade and other receivables 41,940 40,793

Hedging instruments 1,528 456

Cash and cash equivalents 96,467 62,346

Other current assets 2,786 1,220

Total assets 300,189 258,754

Liabilities and equity Total equity 77,178 64,868

Total equity attributable to owners of the parent 77,177 64,868

Capital 12,400 12,400

Reserves and results carried forward 63,432 51,943

Revaluation reserves on property, plant and equipment 525 525

Hedging instruments on cash flow 820 0

Minority interests 1 PM

Non-current liabilities 135,907 120,318

Long-term borrowings 108,654 94,937

Non-current provisions 18,111 19,286

Deferred taxation 9,142 6,095

Current liabilities 87,104 73,568

Trade and other payables 44,514 29,755

Tax and social liabilities 11,498 10,951

Other current liabilities 16,582 15,409

Short-term borrowings 166 594

Current provisions 14,344 16,859

Total liabilities and equity 300,189 258,754


Consolidated income statement

(in thousand EUR) 09 08Revenues 157,837 150,275

Turnover 143,070 133,237

Other operating income 5,032 3,740

Increase (+), decrease (-) in work in progress -878 11,556

Own construction capitalised 10,613 1,742

Operating expenses -142,115 -139,793

Raw materials and consumables used 31,811 27,732

Services and other goods 38,997 39,846

Wage and salaries, social security costs and pensions 57,965 57,466

Depreciation and amortisation of which write down of intangible and tangible assets 15,688 6,656

Depreciation in amounts written off stocks, contracts in progress and trade debtors -169 574

Provisions for liabilities and charges -3,962 6,153

Other operating income and expenses 1,785 1,366

Result from continuing operations 15,722 10,482

Finance costs -3,908 -3,154

Debt charges 509 500

Other finance costs 3,399 2,654

Finance income 6,853 6,894

Income from current assets 1,695 2,612

Other finance income 5,158 4,282

Result from continuing operations post finance result 18,667 14,222

Income tax expense -6,122 -4,209

Income taxes -3,497 -3,431

Deferred taxes -2,625 -778

Net result for the period 12,545 10,013

Attributable to owners of parent 12,545 10,013

Share of the minority interests PM PM

Result per share (number of shares : 2,400,000) (in EUR) (in EUR)

Basic profit per share 5.23 4.17

Diluted profit per share 5.23 4.17

Consolidated statement of comprehensive incomeNet result for the period 12,545 10,013

Other elements of the comprehensive income

Profit or loss on hedging instruments of cash flow 1,242

Income taxes on the result -422

Total of the other elements of the comprehensive income 820 0

Total comprehensive income for the period after taxes 13,365 10,013

Attributable to owners of parent 13,365 10,013

Minority interests 0 0

(-)

(+)

(+)

(+)

(+) (-)


Comments on the consolidated statement of financial position N.B.: The important differences between corresponding headings of compared periods are mentioned in italic.

(in thousand EUR) 09 08AssetsNon-current assets 95,822 94,001

Intangible assets (note 4) 43,747 38,182

This item includes the capitalization of the expenses of development relating to the programs of civil aviation for which Group SABCA is a partner. The programs Airbus A350 and Gulfstream impacted the increase.

Property, plant and equipment (notes 3 and 7) 51,812 55,054

Affiliated enterprises, financial assets and other non-current assets (note 5) 263 765

Current assets 204,367 164,753

Non-current assets held for the sale 0 1,575

Related to a land owned by our subsidiary SABCA Limburg.

Inventories (note 8) 29,454 25,576

Growth due to acquisition of long lead items related to civil aviation and space programs.

Work-in-progress (note 8) 32,192 32,787

Trade and other receivables (note 10) 41,940 40,793

Hedging instruments 1,528 456

Resulting from the upgrading of the hedgings in Dollars US at the end of the exercise.

Cash and cash equivalents 96,467 62,346

(see cash flow statement and note 9)

Other current assets 2,786 1,220


(in thousand EUR) 09 08Liabilities and equityTotal equity 77,178 64,868

Total equity attributable to owners of the parent (see statement of changes in equity)

77,177 64,868

Result of the period 12,545 10,013

Dividends relating to previous financial year -1,056 -2,016

Total of the other elements of the comprehensive income 820

Movement during the period 12,309 7,997

Minority interests 1 PM

Non-current liabilities 135,907 120,318

Long-term borrowings (notes 7 and 11) 108,654 94,937

Increase in customer advance payments.

Non-current provisions (notes 6 and 13) 18,111 19,286

Increase of the provision for pensions and similar obligations.

Deferred taxation (note 12) 9,142 6,095

Current liabilities 87,104 73,568

Trade and other payables (note 7) 44,514 29,755

Increase generated by the advances received on programs.

Short-term borrowings (note 7) 166 594

Current provisions (note 6) 14,344 16,859

Lowering of the provision for future losses.

Other current liabilities (note 7) 28,080 26,360

Increase due to amounts not yet cashed on financial invoices.


Consolidated statement of changes in equity (in thousand EUR)

At 01/01/2008 12,400 525 43,946 0 56,871 0 56,871 Result for the period 10,013 10,013 0 10,013 Other elements of the comprehensive income 0 0 0

Total of the other elements of the comprehensive income

10,013 0 10,013 0 10,013

Dividends -2,016 0 -2,016 0 -2,016

Balance at 31/12/2008 12,400 525 51,943 0 64,868 0 64,868

At 01/01/2009 12,400 525 51,943 0 64,868 0 64,868 Result for the period 12,545 12,545 0 12,545 Other elements of the comprehensive income 820 820 820

Total of the other elements of the comprehensive income

12,545 820 13,365 0 13,365

Dividends -1,056 -1,056 0 -1,056

Balance at 31/12/2009 12,400 525 63,432 820 77,177 1 77,178

(in thousand EUR) 09 08Net cash flow generated by operating activities 55,024 9,749Net income 12,545 10,013Result on hedging instruments -285 -19Depreciation and amortisation and fair value adjustments on assets 19,055 5,074Change in working capital 24,756 -11,697Change in minority interests PM PMChange in provisions, deferred tax and reserves -1,047 6,378

Net cash flow used in investing activities -19,300 -5,908Purchase of intangible, tangible and financial non-current assets -20,468 -10,758Disposals of intangible, tangible and financial non-current assets 2,633 1,766Regularization of intangible, tangible and financial non-current assets -1,375 3,084Increase and decrease of receivables -90

Net cash flow used in financing activities -2,059 -6,399Change in amounts receivable after more than one year 26 -575Change in short-term financial liabilities- increase 19 7- reimbursements -427 -3,349Change in long-term financial liabilities- reimbursements -621 -466Dividends paid to shareholders -1,056 -2,016

Net increase (decrease) in net cash and cash equivalents 33,665 -2,557

Net cash and cash equivalents, at the beginning of the period (*) 62,802 65,359

Net cash and cash equivalents, at the end of the period (*) 96,467 62,802

(*) consistent with the consolidated statement of financial position

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Consolidated statement of cash flows


Notes(Except contrary indication, all the data are in thousands of euros)

1. INFORMATION ABOUT CONSOLIDATIONSubsidiary SABCA Limburg Dellestraat, 32, 3560 - LUMMEN Company number : BE 0438.215.146% of ownership interest : 99.99 Capital : 12,394,676.24 EUR FLABEL and SABCA (C.D.R.) have been left out of the scope of consolidation because not very significant.

2. EMPLOYMENT* FTE = full time equivalentAverage number of employeesTotal employment at the end of the period

3. PROPERTY, PLANT AND EQUIPMENT NOTE

Beginning balanceGross amount (*) 54,789 95,216 16,120 3,983 2,089 172,197 Depreciation -48,023 -81,808 -14,067 -534 -121 -144,553 Adjustments

- Third party assets 11,288 11,288 - Fair value adjustments 14,715 1,512 -105 16,122

Beginning balance 21,481 26,208 2,053 3,344 1,968 55,054

Movements during the periodAcquisitions 751 2,524 743 3,758 7,776 Disposals -533 -578 -1,516 -2,627 Transfers from one heading to another 260 15 -275 0

Depreciation expenses -1,143 -7,624 -1,030 -598 -702 -11,097 Depreciation on disposals 346 573 1,515 2,434 Depreciation transfers -22 22 0 Fair value adjustments -1,801 123 375 -1,303

Ending balanceGross amount (**) 55,007 97,422 15,363 3,983 5,572 177,347 Depreciation -48,820 -88,881 -13,582 -1,132 -801 -153,217 Adjustments

- Third party assets 11,288 11,288 - Fair value adjustments 14,490 1,634 270 16,394

Ending balance 20,677 21,462 1,781 3,121 4,771 51,812

(*) Fully amortized 2008 28,862 74,640 11,344 (**) Fully amortized 2009 29,544 74,240 10,983 62 (***) of which, at closing, 2,950 in building and 1,033 in plant, machinery and equipment

Land andbuildings

Plant, machinery and

equipment

Furniture and vehicles

Leasehold improvements

and similar rights (***)

Assets under construction and advance

payments

TOTAL

Period Preceding period

Total in units FTE * Total in units FTE *

999.5 961.4 972.6 943.6

979.0 940.2 1,017.0 983.3


4. INTANGIBLE ASSETS NOTE

Development expenses

Beginning balanceGross amount 120,695

Amortisation -115,088 Adjustments- Fair value adjustments 32,575

Beginning balance 38,182

Movements during the periodAcquisitions 12,691 Disposals -6,598 Amortisation expenses -5,087 Amortisation write back 6,598 Fair value adjustments -2,039

Ending balanceGross amount 126,788 Depreciation -113,577 Adjustments- Fair value adjustments 30,536

Ending balance 43,747

Research costs non capitalized in the income statement as an incurred expense for the exercise and represent for this exercise 3,621 and for previous years 28,963.This strategy and axes of efforts of the Group in terms of research and development are described in the Management report.

5. FINANCIAL ASSETS NOTE

Affiliated enterprises Period Preceding period

SABCA (C.D.R.) 11 11 FLABEL Corporation- shares held by SABCA 83 89 - shares held by SABCA Limburg 17 18

111 118

Other participationsArianespace Participation 585 Others 58 58

Amounts receivable and cash guarantees 94 4 152 647


6. PROVISIONS NOTE

Beginning balance 12,062 14,100 10,269 3,717 40,148

Fair value adjustments and reprocessing 7,224 -1,100 -6,485 -3,642 -4,003

Provisions, beginning balance 19,286 13,000 3,784 75 36,145

Increase 92 300 5,544 848 6,784 Decrease -1,746 -4,000 -2,556 -2,385 -10,687 Fair value adjustments and reprocessing 479 -2,053 1,787 213

Ending balance 10,408 10,400 13,257 2,180 36,245

Fair value adjustments and reprocessing 7,703 -1,100 -8,538 -1,855 -3,790

Provisions, ending balance (*) 18,111 9,300 4,719 325 32,455

(*) of which defined benefit plant obligations (note 13) : 8,113

7. BORROWINGS AND PAYABLES NOTE


up to1 year

1 to 5years

over 5 years

TOTALup to1 year

1 to 5years

over 5 years

TOTAL

Interest-bearing borrowings according to their maturity

Leases 321 1,184 1,418 2,923 303 1,314 1,614 3,231 Bank overdrafts 166 166 594 594

Other information

Finance leases :- minimum lease payments payable, present value

321 1,184 1,418 2,923 303 1,314 1,614 3,231

- minimum lease payments payable, gross

433 1,490 1,583 3,506 433 1,664 1,820 3,917

- minimum lease payments payable, interest

111 306 166 583 125 360 224 709

Trade and other payables according to their maturity

Trade payables 18,345 18,345 15,573 15,573 Advances received 26,169 52,849 79,018 14,182 38,539 52,720 Tax and social liabilities 11,498 11,498 10,951 10,951 Other liabilities and borrowings 16,261 1,574 51,629 69,464 16,003 4,401 49,069 69,474

Total long term borrowings included in the consolidated statement of financial position

108,654 94,937

Provisions for pension &

equivalent

Provision for implicit obligation

Onerous contracts provisions

Other provisions

TOTAL


8. INVENTORIES NOTE

Stocksmerchandise and

raw materialsWork in progress

Total stocksand W.I.P.

Beginning balanceGross value 25,576 71,829 97,405 Fair value adjustments -39,042 -39,042

Net value at the beginning 25,576 32,787 58,363

Movements during the period Change 3,904 -9,647 -5,743 Depreciation - increase -1,729 -1,729 Depreciation - decrease 1,702 1,702 Fair value adjustments 9,052 9,052

Ending balanceGross value 29,454 62,182 91,636 Fair value adjustments -29,990 -29,990

Net value at the ending 29,454 32,192 61,646

9. CASH AND CASH EQUIVALENTS NOTEPeriod Preceding period

Bank short-term deposits 94,760 58,314 Bank current accounts 1,697 3,961 Cash in hand and other 10 71

96,467 62,346

10. AMOUNTS RECEIVABLE WITHIN ONE YEAR NOTE Period Preceding period

Trade receivables 39,665 38,796 Other receivables 2,275 1,997

41,940 40,793

11. GOVERNMENT GRANTS NOTE Period Preceding period

Investment grants 1,006 824

Carrying amount of capital grants recognised 4,149 3,544 Amount of income grants netted against reported expenses -3,143 -2,720

Deferred tax assets and liabilities on dito 20

Advances to be reimbursed conditionally 41,417 41,535

Relating to research activities 3,193 4,525 Relating to development activities 38,224 37,010

Split out :- Reimbursement within one year 1,076 1,221 - Reimbursement after more than one year 40,341 40,314


12. RECOGNIZED DEFERRED TAX ASSETS AND LIABILITIES

Total tax charge of the exercise Reconciliation between the theoretical tax charge obtained by applying the nominal taxe rate to the earnings before taxes and the effective tax charge obtained by applying the Group’s effective tax rate.

Base Tax

Profit before income tax 18,667 Theoritical income tax at the rate of 33,99 % 6,345

Sources of disparities

- Impact of changes on non-taxed expenses and income -85 - Notional interests -1,903 - Investments deduction -800 - Income not subjected to tax : recovery of past losses (subsidiary) -3,059 Tax base of the Group 12,821

Income tax calculated at 33,99 % 4,358 Deferred tax at the social level and adjustments 384 Previous years tax 1,380

Total income tax expense for the year 6,122

Note on deferred taxes recorded in the consolidated statement of financial position

Consolidatedstatement of financial position

Consolidatedincome statement

Sources of deffered tax PeriodPreceding

periodPeriod

Preceding period

AssetsIntangible assets 36,803 38,847 -2,044 2,833 Tangible assets 16,376 17,680 -1,303 -2,049 Work in progress -29,990 -39,042 9,052 6,516 Investments 1,242 19 1,223 19

Total Assets 24,431 17,504

LiabilitiesReserves 937 -1,141 2,079 -719 Provision for liabilities and charges 2,111 2,138 -27 -4,214 Long-term debtsShort-term debts -687 -724 37 -6 Accrued liabilities 173

Total Liabilities 2,360 272

Total of sources of deferred tax 26,792 17,776 9,016 2,554

Deferred income taxDeferred tax on the fair value adjustments calculated at 33,99 %

9,107 6,042 3,065 868

Adjustments for temporary differences and regularisations -52 -52 -18 -52 Deferred tax on hedging instruments -422 Deferred tax on government grants and on realized surplus 88 106 -38

Total deferred tax 9,142 6,095 2,625 778

Deferred tax assets related to provisions for pensions and similar obligations, for future losses and for implicit obligations are not taken into consideration, their reversal having to take place in a time significantly longer than the time during which the movements that have generated the deferred tax liabilities, are reversed.


13. DEFINED BENEFIT PLANS


Components of defined benefit plan assets and liabilities

Present value of wholly or partially funded obligations 14,404 13,829 Fair value of plan assets (-) -7,516 -7,529 Present value of wholly unfunded obligations 6,888 6,300 Unrecognised actuarial gains (losses) 1,225 1,673

Defined benefit plan obligation (asset), total 8,113 7,973

Expense recognised in income statement for defined benefit plan

1,084 1,225

Current service cost 783 860 Interest cost 773 801 Expected return on plan assets -280 -279 Contributions by personnel -169 -157 Recognised actuarial gains (losses) -23

Movements in defined benefit plan obligation (asset)

Defined benefit plan obligation, beginning balance 7,973 7,805 Contributions paid -944 -1,056 Expense recognised 1,084 1,224

Defined benefit plan obligation, ending balance 8,113 7,973

Principal actuarial assumptions

Discount rate used 5.00 5.75Expected return on plan assets 4.00 4.00Expected rates of salary increase 4.40 / 3.70 4.40 / 3.70Future defined benefit increase 2.00 2.00

Expected rate of return on reimbursement rights recognised as an asset

non applicable non applicable

Expected rate of increase of medical costs non applicable non applicable

NB : All provisions for pensions and similar obligations amount to 18,111 in accordance with Collective Labor Agreements.


14. INFORMATION CONCERNING RELATED-PARTIES


Key management compensation

Short-term employee benefits 2,615 2,637 Post-employment benefits 763 1,309 Other termination obligations 274 Considered headcount 25 21

Related-party transactions The Group’s related parties are : - Dassault Aviation - Stork Aerospace - FLABEL Corporation - SABCA (C.D.R.)


Related-party sales 18,474 33,304 Related-party purchases 1,340 1,480 Related-party receivables 6,804 7,872 Related-party payables 10 792

Terms and conditions related-party transactionsSales and purchases are made at market price.Balances outstanding at the year-end are not guaranteed and are made in cash. No guarantees were provided or received for related-party receivables.For the exercise 2009, the Group did not recognize any provisions for bad debts relating to amounts receivable from related parties.This evaluation is done by examining the financial position of the related-parties and the market in which they operate.

15. FINANCIAL COMMITMENTS


Commitments givenGuarantees and deposits 94 4 Registration of mortgages 100 100 Mortgage mandates 2,275 2,275 Pledged accounts 3,121 3,144

- FLABEL Corporation 2,000 2,000

- Compensation fund 0 23

- Customs 1,121 1,121

Commitments receivedExport insurance guarantees Ducroire 26,919 24,762

Debts and receivables secured by bank guarantees 1,371 1,906


16. APPROPRIATION OF PROFITS (in Euros)


Return of capital 1,824,000.00 1,056,000.00

or for each of the 2,400,000 shares a gross dividend 0.76 0.44 a withholding tax of 25 % 0.19 0.11 a net dividend 0.57 0.33

Total capital 12,400,000.00 12,400,000.00 Total shares conferring the right to vote 2,400,000 2,400,000 Total voting rights (denominator) 2,400,000 2,400,000

17. FOREIGN EXCHANGE RISKSThe Group is exposed to a foreign exchange risk on the difference between its sales in US Dollars and its purchases in US Dollars. It partially covers this risk using forward sales contracts and foreign exchange options.The Group hedges its net future cash flows only if they are considered highly probable and partially to ensure that the first future cash flows will be sufficient to exercise the foreign exchange hedges in place.

The Group has recorded related to the exchange differences 4,455 in income and 4,587 in charges.

A sensitivity analysis was performed in order to determine the impact of a 10 cent increase or decrease in the US Dollar / EURO exchange rate :


Net value US Dollars in portfolio 27,913 17,898Closing US Dollar exchange rate 1.4406 1.3917

Change in closing US Dollar exchange rate 1.5406 1.3406 1.4917 1.2917 Change in net value US Dollars in portfolio -1,258 1,445 -1,200 1,386

The portfolio of derivative financial instruments is as follows :


Dollars US Euros Dollars US Euros

Foreign exchange options 2,000 1,610 8,000 6,071 Forwards 33,000 24,602 13,000 9,691

Total 35,000 26,212 21,000 15,762

The market value of the financial instruments rises to -20 for the exchange options and to 1,456 for forward sales.

The impact on net income of the year is booked on base of exchange rate dated December 31 and on «markt-to-market» calculated by financial institutions, managers of financial instruments.


Impact on financial income 286 419


18. MANAGEMENT OF RISKS AND UNCERTAINTIES

The principal risks and uncertainties faced by the group are outlined below :

Cash and liquidity risksThe Group is not exposed to any significant market risk with regard to its financial debts.Cash resources enable the Group to meet its commitments without any liquidity risk.

Credit riskThe Group performs its cash and foreign exchange transactions with recognised financial institutions.The Group limits counterparty risk by performing most of its sales in cash and ensuring that the granted loans are secured by the Belgian Export Credit Agency (Ducroire) or collateral.Considering the trade receivables impairment method applied for the drawing up of consolidated financial statements the percentage of outstanding receivables not impaired at the closing accounts is immaterial.

Market riskExchange risks The Group is exposed to an exchange risk on sales denominated in US Dollars, the major part of its expenses being expressed in euros. The Group covers this risk using forward sales contracts and, if necessary, foreign exchange options. It hedges its net future cash flows only if they are considered highly probable and partially to ensure that the first future cash flows will be sufficient to exercise the foreign exchange hedges in place. The amount of the hedge may be adjusted according to the variability in the timing of expected net cash flows.

Other risks- the most important risk takes place in the evolution level of the raw material prices;- the risk of ongoing difficulty to find personnel with regard of the needs of the company;- non-obtaining or loss of licence (political risk).

19. EVENTS AFTER THE Consolidated statement of financial position DATE

No event has taken place after December 31, 2009 that may have a significant impact on the accounts

20. IDENTITY OF THE CONSOLIDATING MOTHER COMPANY

DASSAULT BELGIQUE AVIATIONRue de Strasbourg 131130 Brussels - BelgiumCompany number 0406.122.367

Percentage of control 52.96 %


21. AUDITOR’S FEES


Audit services- Auditor’s fees SABCA 70 69 - Auditor’s fees SABCA Limburg 11 10

Non-audit services- Fees for non-audit services SABCA 24 0 - Fees for non-audit services SABCA Limburg 0 0

Total 105 79

22. PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS

In 2009, the Group has applied for the first time the norm IAS 1 revised. This norm provides in particular a new note including the state of booked income and charges, elements of changes in equity covering no transactions with shareholders.


General consolidation principlesCompliance with accounting standards

The Group SABCA has prepared its consolidated financial statements in accordance with IFRS (International Financial Reporting Standards) applicable as of December 31, 2009 as adopted for us by the European Union.The Group has not early adopted the standards and interpretations published as of December 31, 2009 but whose application is only mandatory from accounting period beginning on or after January 1, 2010.For those which concern the Group and with respect of actual accounting policies the adoption of these new standards and interpretations should not significantly impact the group’s earnings and financial position.Only changes in presentation would be required.

Accounting choices and management estimates

The preparation of the Group’s consolidated financial statements requires management to make estimates and issue assumptions susceptible to have a financial impact on assets and liabilities. These estimates concern notably the results on contracts in progress and contingent liabilities.They are evaluated taking into accounts historical experience, elements known at the closing of the accounting year and various other assumptions that are believed to be reasonable.Subsequent results may differ from those estimates.

Consolidation method

The consolidation method by global integration has been chosen.SABCA ‘s share in its subsidiary SABCA Limburg is 99.99% which confers it its exclusive control. This method consists in the incorporation in the company accounts of each assets and liabilities elements of the integrated subsidiary as a substitute for the inventory value of the participation. Similarly, costs and products of the subsidiary are cumulated with those of the parent company.Shares that are not held by the consolidated companies are included in assets and liabilities under «third person interests». They represent their part in equities and results.Reciprocal accounts and operations are eliminated.

Reference period

Consolidated companies close their social year on December 31st.

Consolidated subsidiary by global integration

SABCA directly and exclusively controls its subsidiary SABCA Limburg N.V., Dellestraat 32 at 3560 LUMMENBE 0438.251.146.

Subsidiary excluded from the consolidation

SABCA (C.D.R.) SPRL, Chaussée de Haecht, 1470 at 1130 BrusselsBE 0451.147.295


Application of IFRS standards(IFRS: International Financial Reporting Standards)

Like all listed European companies, SABCA is required to apply the new IFRS accounting standards to its consolidated accounts from the financial year 2005 onwards.

Implementation of these new standards adheres to the principle of prudence applied by SABCA when drawing up its accounts. The group has chosen to make use of the exemption allowing it to substitute the fair value of certain capital assets for their cost on the IFRS transition date, for plots of land but not for other capital assets.

The principal aspects of the IFRS standards applicable to SABCA are outlined below.

A detailed and annotated review of the differences between Belgian standards (Belgian Gaap) and the IFRS frame of reference affecting the opening equity capital at January 1st 2004 was published in the press release of September 30th, 2005 relating to the period ending on June 30th, 2005.

IAS 1 – Presentation of financial statements

Receivables and payables

Receivables and payables are stated at the consolidated statement of financial position at their nominal value.The credits are the subject of reductions of value if their refunding at the limit, is in all or partly, dubious or compromise.The accounting of the reductions of value will be done on individualised basis.

Cash and cash equivalents

Cash includes cash in hand and deposits with banks.Cash equivalents are short-term, highly liquid investments that are readily convertible into known amounts of cash and are not subject to an important risk of change in value.Cash and cash equivalents are carried on the consolidated statement of financial position at nominal value.

Dividends

Dividends are recorded in the income statement in the year of their attribution.Dividends declared in respect of the period are no more accrued on the consolidated statement of financial position as short-term payables but included at the end of the financial year in a special heading of shareholders’ equity.

Minority interests

Minority interests consist in third party shareholder’s interests in the equity of subsidiaries and the appropriate proportion of profits or losses.

IAS 2 – Inventory

Inventories are stated at the lower of cost and net realisable value.

Cost of inventories comprises the purchase, conversion and other costs incurred to bring the inventories to their present location and condition.

Cost of inventories is determined by the first-in, first-out method (FIFO).

Provisions for amounts written off on stocks are accrued in charges of the exercise: • for parts related to production or maintenance programs, unusable or whose tolerances, norms, technical

configuration, conception have changed;• for parts not moved during the 24 previous months.

Amounts written off will be decreased in case of later use of the non destructed parts.


IAS 10 – Subsequent events

Post consolidated statement of financial position events that contribute to confirm changes in circumstances or position which existed at the consolidated statement of financial position date (adjusting events) are reflected in the financial statements.

Post consolidated statement of financial position events that represent charges in circumstances or position appeared after the consolidated statement of financial position date (non-adjusting events) are disclosed in the notes when material.

IAS 12 – Income taxes

Current taxes

Current taxes include expected tax charges based on the accounting profit of the current year and adjustments to tax charges of prior years.

Deferred taxes

Deferred taxes are calculated using the liability method, on temporary differences arising between the tax base of assets and liabilities and their carrying amounts in the financial statements.

Deferred tax assets are only recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.

IAS 14 – Segment reporting

Business segment

The Group SABCA is allocated into the business group, aeronautical construction for the segment information comply with the standards IFRS.All the activities of the Group SABCA are exercised in the sector of aeronautical construction and all the resources are affected to this one sector only. Further relevant information is given in the management report the percentage of net sales for each activity platform: civil aviation, defence and aerospace.

Geographical segment

The total of activities of the group is located on the national territory.

The sales geographical breakdown between Belgian, Europe and out of Europe is also given in percentage, upon further relevant information, in the management report.

IAS 16 – Tangible fixed assets

Tangible fixed assets are recorded at historical cost, less accumulated depreciation and impairment losses.

Cost includes all direct costs and appropriate allocation of indirect costs incurred to bring the asset to working condition for its intended use. There are non borrowing costs capitalised in the costs of the assets.

Repair and maintenance costs are expensed in the period in which they are incurred, if they do not increase the future economic benefits of the asset. Otherwise, they are classified as separate components of items of tangible fixed assets.

The plots of land were valued at their fair value, taking account of their use, geographic situation and any legal obligations attached to them. This value was determined within the framework of IFRS 1 and will be maintained for the whole useful life of these plots of land.

Tangible assets received from third parties or acquired on behalf of third parties and held by the company for use in the production of goods are posted as tangible fixed assets, insofar as the company bears their risk and benefits from advantages relating to these assets.


The cross-entry for these tangible fixed assets is posted as a long-term debt in liabilities: they are not amortised but valued every year at their fair value.Depreciation of tangible fixed assets is provided over assets’ estimated useful economic lives: the method of depreciation, chosen “straight-line or decreasing” is the method which reflects the best the pattern of economic benefits associated with the asset considered.

Useful life is defined as follows per main type of tangible fixed assets:

• Land non-depreciable • Buildings 30 years straight-line depreciation • Roofs 10 years straight-line depreciation • Heavy machines tools 10 years straight-line depreciation • Plant, machinery and equipment 10 years decreasing depreciation • Furniture and office equipment 10 years decreasing depreciation • Vehicles 5 years straight-line depreciation • Computer equipment 5 years decreasing depreciation

Improvements to leased buildings are capitalised and depreciated over the remaining term of the lease or their expected useful life if shorter.Gains and losses on disposals are included in the operating result.

IFRS 5 : Non-current assets held for the sale

When at the closing date of the financial statements it is more than likely that non-current assets will be disposed of they are qualified as assets held for sale.

Their disposal is considered highly probable when at the closing date a plan to sell them for a reasonable price in relation to their fair value has been initiated to find a buyer and to realize their disposal within a maximum of one year.

A non-current asset held for sale is evaluated at the lowest between its carrying amount in accordance in the IAS 16 and its fair value reduced by the costs of the disposal.

IAS 17 – Financial leasing contracts

Leases under which a substantial part of the risks and rewards of ownership are effectively retained by the lessor are classified as operating leases.Payments under operating lease are considered as an expense in the income statement.

Leases under which the group assumes a substantial part of the risks and rewards of ownership are classified as finance leases.

Financial leasing contracts are recognised at the fair value of the minimum lease payments at the inception of the lease term and classified as leased tangible asset and are depreciated on their useful life, in line with the politic of depreciation applicable to the assets owned by the company. Lease payments are apportioned between the financial charges and the repayment of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability.

The corresponding rental obligations, net of finance charges, are included in long-term payables.

The reimbursements are allocated between finance charges and the liability of the leasing. It exists so a constant periodic rate of interest on the finance balance outstanding.


IAS 18 - Revenue

Work in progress(also IAS 11 – Construction contracts and IAS 21 – Effects of Changes in Foreign Exchange Rates)

The cost of work in progress comprises direct and indirect costs of production; the indirect costs other than production are charged to the income statement over the period when incurred.The costs are distributed to production programs as follows: • direct booking of raw materials, parts, consumer goods, direct costs and specific subcontract costs, depreciation

of specific equipments and relocation, lay-out costs proper to a program;• booking of indirect costs through hour rates based on the work of the production personnel.

Revenue and charges are booked, in the statutory statements, following the completed contract method.

Concerning all consolidated financial statements, revenue and charges of contracts in progress are recognised using the percentage of completion method in line with IAS 18.At the closing date we fix the estimated total costs for the contract and the costs incurred for work performed to date.When the outcome of a construction contract can be estimated reliably, contract revenue and contract costs are recognised by using the stage of completion method to measure the amount of these products and charges to be booked during the exercise and the expected losses are charged as expenses immediately.

In connection with the nature of contracts and services the stage of completion method is measured:• or comparing contract costs incurred for work performed to date and the estimated total costs for the contract;• or by reference to the material progress of works estimated for the contract.

When an outcome of a contract cannot be estimated reliably, contract revenue booked is limited to the amount of recoverable contract costs charged without profit.

IAS 19 –Employee benefits

The company posts:• a liability where a member of staff has rendered services in return for employee benefits, which will be paid to the

latter at a future date,• an expense where the company makes use of the economic benefit resulting from services rendered by a member

of staff in return for employee benefits.

The defined benefit obligation is calculated by independent qualified actuaries using the «Projected Unit Credit»-method and the obligations between the expected costs of any past service (Defined Benefit Obligation) and any plan assets are recognised in the consolidated statement of financial position.

Actuarial gains and losses which exceed more of 10 % the difference between the higher amount of the present value of the retirement benefit obligations and the fair value of the assets of the plan at consolidated statement of financial position closing date could be amortized on a period equal the expected average remaining working life of the working population.

In accordance with I.F.R.S. 1, the group has opted to recognize all actuarial gains and losses and past service costs at the date of transition to I.F.R.S. as an adjustment to equity.


IAS 20 – Government Grants

Government grants related to assets are, after transfer to deferred taxes, recognised as deferred income and transferred as income over the periods necessary to match them with the depreciation expense of the asset they relate to.

A government grant is accounted for in the consolidated statement of financial position only when there is reasonable assurance that all the attached conditions can be met.

The receipt of cash creates the factor which generates debt.

Government grants constituted by advances which will be reimbursed conditionally are booked in long-term debts with the exception of the part paid during the year charged in short-term debts.

If there exists a reasonable assurance that the non-reimbursement conditions of those advances are met the reversal of the debt is able to generate a profit result.

IAS 21 – Foreign currency transactions(cf. also IAS 39 – financial instruments)

Foreign currency transactions are recorded initially at the internal exchange rate prevailing at the transaction date.

The internal exchange rate is based on the best estimation of mid-term forecasts and is injected during the year in case of strong variation or official revaluation / depreciation.

Monetary assets and liabilities denominated in foreign currencies are translated at the closing rate at the consolidated statement of financial position date.

Gains and losses resulting from the settlement of foreign currency transactions are recognised in the income statement as financial result.

IAS 24 – Information concerning related parties.

Adoption of standards

Under the information to take into consideration related to Key management compensation we find :• the directors;• the members of the Committee of Managers and of the Management Committee in charge of operations of the

mother company mentioned in the annual report under the item “Corporate Governance”;• the executive members of the subsidiary.

IAS 36 – Impairment of assets

The carrying amounts of tangible and intangible assets are reviewed at each consolidated statement of financial position date to determine if they may be subjected for impairment losses.

An impairment loss is recognised in income whenever the carrying amount exceeds its recoverable amount which corresponds to the higher of an asset’s net selling price and value in use such as defined in IAS 36.

Reversal of impairment losses recognised in prior years is recorded in income when there is an indication that the impairment losses recognised for the asset no longer exist or have decreased.

IAS 37 – Provisions, contingencies

Provisions

Provisions are recognised in the consolidated statement of financial position when:• there is a present obligation (legal or constructive) as a result of a past even;


• it is probable that an outflow of resources will be required to settle the obligation;• a reliable estimate can be made on the amount of the obligation.

The risks and uncertainties which affect unavoidable many events and circumstances are taking into account to provide at the consolidated statement of financial position date the best estimate of the expenditure required to settle the obligation.

Restructuring

A provision for restructuring is only recognised when a detailed and formal restructuring plan has been approved and the restructuring has either commenced or has been announced publicly before the consolidated statement of financial position date.

The restructuring provision only includes the direct expenditure arising from the restructuring which is necessarily entailed and is not associated with the ongoing activities of the enterprise.

IAS 38 – Intangible assets

Development

Research costs are recognised in the income statement as an incurred expense.

Development costs are capitalised if and only if all the conditions disclosed under IAS 38 are met.

The valuation of development costs takes account not only of expenditure incurred but also insurance, guarantees, grants and finance obtained from public authorities as well as the certainty of sales to clients.

The proportion of development costs for a programme to be included in the trading figures over the course of the financial year is determined by the degree of progress of the particular programme, in accordance with the principle of prudence.

Amortisation of development costs is determined in accordance with the recovery of expenditure, pro rata to contractual deliveries, to the residual risk upon charge of the company.

IAS 39 – Financial instruments

Financial instruments

The group uses derivative financial instruments to hedge exposure arising from its industrial and commercial operations. These derivative financial instruments are treated, in accordance with IAS 39, either as « free-standing instruments held for trading” or as qualified for “hedge accounting”.Derivative financial instruments are initially recorded in the consolidated statement of financial position at cost and are re-measured at their fair value at every closing date.Changes in the fair value of any such derivative instruments are recognised by their nature or in equity or in finance result.For financial instruments, SABCA has applied IAS 39 from the financial year 2005.

Financial assets available for sale

Financial assets available for sale are carried at fair value and changes in the fair value are recognised directly in the income statement.

For financial assets in non-quoted companies for which fair value cannot be reliably established, fair value is determined by the purchase price, and adjusted for potential impairment losses.


Company number : BE 0405.770.992

FREE tRAnslAtIonstAtutoRY AuDItoR’s REPoRt to tHE GEnERAl sHAREHolDERs’ MEEtInG on tHE consolIDAtED FInAncIAl stAtEMEnts oF tHE

coMPAnY sABcA sA As oF AnD FoR tHE YEAR EnDED DEcEMBER 31, 2009

As required by law and the company’s articles of association, we report to you in the context of our appointment as statutory auditor. This report includes our opinion on the consolidated financial statements and the required additional disclosure.

Unqualified opinion on the consolidated financial statements

We have audited the consolidated financial statements of SABCA SA and its subsidiaries (the “Group”) as of and for the year ended December 31, 2009, prepared in accordance with International Financial Reporting Standards, as adopted by the European Union, and with the legal and regulatory requirements applicable on quoted companies in Belgium. These consolidated financial statements comprise the consolidated statement of financial position as of December 31, 2009 and the consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, as well as the summary of significant accounting policies and other explanatory notes. The total of the consolidated statement of financial position amounts to KEUR 300.189 and the profit for the year (group share) amounts to KEUR 12.545.

The company’s board of directors is responsible for the preparation of the consolidated financial statements. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with the legal requirements applicable in Belgium and with Belgian auditing standards, as issued by the «Institut des Reviseurs d’Entreprises/Instituut der Bedrijfsrevisoren». Those auditing standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement.

In accordance with the auditing standards referred to above, we have carried out procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The selection of these procedures is a matter for our judgment, as is the assessment of the risk that the consolidated financial statements contain material misstatements, whether due to fraud or error. In making those risk assessments, we have considered the Group’s internal control relating to the preparation and fair presentation of the consolidated financial statements, in order to design audit procedures that were appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. We have also evaluated the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by management, as well as the presentation of the consolidated financial statements taken as a whole. Finally, we have obtained from the board of directors and Group officials the explanations and information necessary for our audit. We believe that the audit evidence we have obtained provides a reasonable basis for our opinion.In our opinion, the consolidated financial statements give a true and fair view of the Group’s net worth and financial position as of December 31, 2009 and of its results and cash flows for the year then ended in accordance with International Financial Reporting Standards, as adopted by the European Union, and with the legal and regulatory requirements applicable on quoted companies in Belgium.


Additional remark

The company’s board of directors is responsible for the preparation and content of the management report on the consolidated financial statements.

Our responsibility is to include in our report the following additional remark, which does not have any effect on our opinion on the consolidated financial statements: the management report deals with the information required by the law and is consistent with the consolidated financial statements. However, we are not in a position to express an opinion on the description of the principal risks and uncertainties facing the companies included in the consolidation, the state of their affairs, their forecast development or the significant influence of certain events on their future development.

Nevertheless, we can confirm that the information provided is not in obvious contradiction with the information we have acquired in the context of our appointment.

Brussels, April 16, 2010X. DOYENStatutory Auditor


2009 Report of the Board of DirectorsOrdinary General Meeting of 27 May 2010

Consolidated annual accounts 04


Non consolidated annual accounts 30



Non consolidated balance sheet after appropriationStatutory accounts according to the Belgian accounting policies

(in thousand EUR) 09 08AssetsFixed assets 20/28 31,434 26,531

Intangible assets 21 8,719 5,607

Tangible assets 22/27 17,179 14,887

Land and buildings 22 4,457 4,722

Plant, machinery and equipment 23 6,202 6,203

Furniture and vehicles 24 1,749 1,994

Assets under construction and advancepayments

27 4,771 1,968

Financial assets 28 5,536 6,037

Affiliated enterprises 280/1 5,384 5,390

Participating interests 280 5,384 5,390

Other financial assets 284/8 152 647

Shares 284 58 643

Amounts receivable and cash guarantee 285/8 94 4

Current assets 29/58 220,493 195,392

Amounts receivable after more than one year 29 4,248 3,896

Trade debtors 290 4,160 3,760

Other amounts receivable 291 88 136

Stocks and contracts in progress 3 79,726 88,462

Stocks 30/36 27,466 23,950

Raw materials and consumables 30/31 7,895 7,184

Goods purchased for resale 34 18,994 15,378

Advance payments 36 577 1,388

Contracts in progress 37 52,260 64,512

Amounts receivable within one year 40/41 40,627 41,873

Trade debtors 40 37,556 34,350

Other amounts receivable 41 3,071 7,523

Investments 50/53 92,046 58,770

Other investments and deposits 51/53 92,046 58,770

Cash at bank and in hand 54/58 1,060 1,304

Deferred charges and accrued income 490/1 2,786 1,087

Total assets 20/58 251,927 221,923


(in thousand EUR) 09 08Liabilities Capital and reserves 10/15 52,338 49,228

Capital 10 12,400 12,400

Issued capital 100 12,400 12,400

Reserves 13 14,050 13,998

Legal reserve 130 1,240 1,240

Reserves not available for distribution 131 595 595

Other 1311 595 595

Untaxed reserves 132 455 403

Reserves available for distribution 133 11,760 11,760

Profit carried forward 14 25,141 22,185

Investment grants 15 747 645

Provisions and deferred taxation 16 35,838 39,053

Provisions for liabilities and charges 160/5 35,793 39,009

Pensions and similar obligations 160 10,408 12,062

Taxation 161 190

Major repairs and maintenance 162 1,796 1,587

Other liabilities and charges 163/5 23,589 25,170

Deferred taxation 168 45 44

Creditors 17/49 163,751 133,642

Amounts payable after more than one year 17 90,017 78,429

Advances received on contracts in progress 176 47,401 34,376

Other amounts payable 178/9 42,616 44,053

Amounts payable within one year 42/48 61,980 45,745

Current portion of amounts payable after more than one year

42 381 809

Financial debts 43 166 594

Credit institutions 430/8 166 594

Trade debts 44 17,910 14,692

Suppliers 440/4 17,910 14,692

Advances received on contracts in progress 46 30,235 17,777

Taxes, remuneration and social security 45 10,389 9,816

Taxes 450/3 2,066 1,589

Remuneration and social security 454/9 8,323 8,227

Other amounts payable 47/48 2,899 2,057

Accrued charges and deferred income 492/9 11,754 9,468

Total liabilities 10/49 251,927 221,923


Non consolidated income statementStatutory accounts according to the Belgian accounting policies

(in thousand EUR) 09 08Operating income 70/74 134,999 137,353

Turnover (notes 5.10) 70 136,689 126,768

Increase (+); decrease (-) in stocks offinished goods, work and contracts in progress

(+)/(-) 71 -12,803 4,921

Own construction capitalised 72 7,476 2,899

Other operating income (notes. 5.10) 74 3,637 2,765

Operating charges 60/64 -128,787 -131,798

Raw materials, consumables and goods for resale 60 30,264 26,459

Purchases 600/8 34,673 30,573

Increase (-); decrease (+) in stocks (+)/(-) 609 -4,409 -4,114

Services and other goods 61 36,506 37,975

Remuneration, social security costs and pensions (notes 5.10)

62 54,256 53,879

Depreciation of and other amounts written off formation expenses, intangible and tangible fixed assets

630 8,863 8,729

Increase (+); decrease (-) in amounts written off stocks, contracts in progress and trade debtors(notes 5.10)

(+)/(-) 631/4 -665 549

Increase (+); decrease (-) in provisions for liabilities and charges(notes 5.10)

(+)/(-) 635/7 -1,505 3,148

Other operating charges (notes 5.10) 640/8 1,068 1,059

Operating profit (+) 9901 6,212 5,555

Financial income 75 6,644 6,496

Income from financial fixed assets 750 3 3

Income from current assets 751 1,842 2,974

Other financial income (notes 5.11)

752/9 4,799 3,519

Financial charges 65 -3,429 -2,496

Interest and other debt charges 650 256 231

Other financial charges (notes 5.11) 652/9 3,173 2,265

Profit on ordinary activities before taxes (+) 9902 9,427 9,555


Non consolidated income statementStatutory accounts according to the Belgian accounting policies

(in thousand EUR) 09 08Extraordinary income 76 41 131

Write-back of amounts written down financial fixed assets

761 1

Gain on disposal of fixed assets 763 35 9

Other extraordinary income (notes 5.11)

764/9 6 121

Extraordinary charges 66 -640 -45

Amounts written off financial fixed assets 661 596

Other extraordinary charges (notes 5.11) 664/8 44 45

Profit (Loss) for the period before taxes (+)/(-) 9903 8,828 9,641

Transfer from deferred taxation 780 9 22

Transfer to deferred taxation 680 -10 -3

Income taxes(+)/(-) 67/77 -3,308 -3,173

Income taxes (notes 5.12) 670/3 3,897 3,431

Adjustment to income taxes and write-back of tax provisions

77 -589 -258

Profit (Loss) for the period (+)/(-) 9904 5,519 6,487

Transfer from untaxed reserves 789 17 43

Transfer to untaxed reserves 689 -69 -55

Profit (Loss) for the period available for appropriation

(+)/(-) 9905 5,467 6,475

Appropriation account

Profit to be appropriated (+)/(-) 9906 27,652 23,965

Profit (Loss) for the period available for appropriation

(9905) 5,467 6,475

Profit brought forward 14P 22,185 17,490

Profit to be carried forward (+)/(-) (14) -25,141 -22,185

Distribution of profit 694/6 -2,511 -1,780

Dividends 694 1,824 1,056

Other beneficiaries 696 687 724


Notes(Except contrary indication, all the data are in thousands of euros)

STATEMENT OF INTANGIBLE ASSETS(heading 21 of assets)

CodesResearch and development

expenses

Concessions, patents licences a.o.

Acquisition costAt the end of the preceding period 805-P 107,302 107,302

Movements during the period: Acquisitions, including produced fixed assets 802 7,476Sales and disposals 803 -6,598

At the end of the period 805 108,180 3,024

Depreciation and amounts written downAt the end of the preceding period 812-P 101,695 3,024Movements during the period:

Recorded 807 4,364Cancelled owing to sales and disposals 810 -6,598


Net book value at the end of the period 8,719

Statement of tangible fixed assets(headings 22 to 27 of assets)

Codes

Landand buildings(heading 22)

Plant, machinery and equipment

(heading 23)

Furniture and vehicles

(heading 24)

Assets under construction and advance

payments(heading 27)

Acquisition costAt the end of the preceding period 819-P 46,206 77,963 15,449 2,089Movements during the period:

Acquisitions, including produced fixedassets

816 559 1,753 721 3,758

Sales and disposals 817 -346 -570 -1,496Transfers from one heading to another (+)(-) 818 260 15 -275

At the end of the period 819 46,419 79,406 14,689 5,572

Depreciation and amounts written downAt the end of the preceding period 832-P 41,484 71,761 13,455 121Movements during the period:

Recorded 827 824 1,991 981 702Written down after sales and disposals 830 -346 -570 -1,496Transfers from one heading to another (+)(-) 831 22 -22

At the end of the period 832 41,962 73,204 12,940 801

Net book value at the end of the period 4,457 6,202 1,749 4,771


Statement of financial fixed assets(heading 28 of assets)

Participating, interests and sharesCodes

Enterprises

(heading 280) (heading 284)

Acquisition costAt the end of the preceding period 839-P 12,501 1,992Movements during the period :

Acquisitions, including produced fixed assets 836 10Sales and disposals 837 -6 -314


Depreciation and amounts written downAt the end of the preceding period 852-P 7,104 1,349Movements during the period :

Recorded 847 595Cancelled owing to sales and disposals 850 -314


Uncalled amountsAt the end of the preceding period 855-P 7At the end of the period 855 7

Net book value at the end of the period 5,384 58

Amounts receivable(heading 285/8)

Net book value at the end of the preceding period 285-P 4

Movements during the period : Additions 858 90

Net book value at the end of the period (285) 94

INFORMATION RELATING TO THE SHARE IN THE CAPITAL

Share in the capital and other rights in other companiesList of both enterprises in which the enterprise holds a participating interest (recorded in the heading 280 and 282 of the assets), and other enterprises in which the enterprise holds rights (recorded in the headings 28 and 50/53 of assets) in the amount of at least 10 % of the capital issued.

NAME, full address of the REGISTERED OFFICE

and for the enterprise governed by Belgian law,

the COMPANY NUMBER

Rights held byInformation from the most recent periodfor which annual accounts are receivable

the enterprise(directly)

Subsi-diaries Annual

accountsMonetary

unit

Capital and reserves

Net result

(+) or (-)(in thousands of monetary units)

Number % %

SABCA Limburg N.V.Dellestraat 32 - B 3560 LUMMENBE 0438.251.146

499,975 99.99 31.12.09 EUR 10,205 3,078

SABCA (C.D.R.) SPRLChaussée de Haecht 14701130 Bruxelles BELGIUMBE 0451.147.295

73 97.33 31.12.09 EUR 11 0

FLABEL CORPORATION S.A.Boulevard Auguste Reyers 801030 Bruxelles 3 BELGIUMBE 0465.127.074

281 28.10 6.00 31.12.09 EUR Nottransmitted

Nottransmitted


Investments: other investments and deposits (heading 51/53 and 490/1 of assets)

Other investments Term deposits with credit institutions falling due : less or equal to one month between one month and one year more than one year Deferred charges and accrued income Analysis of heading 490/1 of assets if the amount is significant. Goods in acceptance and litigations Goods and services to provide Accrued bank and loan interests

Statement of capital and structure of shareholdings Statement of capital Issued capital At the end of the preceding period At the end of the period Structure of the capital Different categories of shares Without mention of nominal valueRegistered shares Dematerialised shares

As from January 1st, 2008 the shares of the company are only issued in registered or dematerialised according to the choice of the shareholder.

Structure of shareholdings of the enterprise as at year-end closing date:

Fokker Aerospace B.V. Amersfoortsestraatweg 7, NL-1412 KA Naarden (the Netherlands) : 1,045,662 shares equal 43.57 % of the capital. Fokker Aerospace B.V. is under control of Stork B.V. Amersfoortsestraatweg 7, NL-1412 KA Naarden (the NETHERLANDS) (notification of November 5, 2002).DASSAULT BELGIQUE AVIATION S.A., rue de Strasbourg 13 B-1130 Bruxelles, 1,270,960 shares, equal 52.96 % of the capital (notification of June 27, 1989). The share stock of DASSAULT BELGIQUE AVIATION S.A. is held at 99.94 % by the S.A. Groupe Industriel Marcel Dassault, 9 Rond-Point des Champs Elysées Marcel Dassault, F-75008 Paris (France) (situation of February 27, 2001).

The annual accounts of SABCA are consolidated by global integration in the company accounts of the Group Dassault.

Provisions for other liabilities and charges

Analysis of heading 163/5 of liabilities if the amount is material.

For global risk Ariane 5 and adaptation of the company to civil aviation programsProvision for futures losses on ordersProvision for futures losses ART 31

Codes Period Preceding period

53 92,046 58,7708686 16,712 10,7088687 55,227 48,0628688 20,107

CodesAmounts in thousand

EURNumber of shares

100P 12,400100 12,400

2,400,0008702 2,245,8078703 154,193

Period

2,149385252

Period

10,40010,2212,583


Statement of amounts payable, accrued charges and deferred income

Analysis by current portions of amounts initially payable after more than one year

Advances received on contracts in progress Other amounts payable Total

Amounts payable for taxes, remuneration and social security Taxes (heading 450/3 of the liabilities) Non expired taxes payable Estimated taxes payable Remuneration and social security (heading 454/9 of liabilities) Other amounts payable relating to remuneration and social security

Accrued charges and deferred income

Allocation of the heading 492/9 of liabilities if the amount is considerable Accrued charges Suspense accounts : amounts not yet received on financial invoices Suspense accounts : invoices redefined as advances not yet received

Operating results Operating income Net turnover (heading 70) 136,689 Breakdown by type of activity in percentage of turnover Airframe, civil and military, construction and overhaul 60.5 Space products 33.8 Servosystems 4.9 Miscellaneous 0.8 100.0Breakdown by geographical markets Domestic 15.0 Export 85.0 100.0

Amounts payable current portion

Codes1) not more than one

year(heading 42)

2) between one and five years

(heading 17)

3) over five years

(heading 17)

889 47,401890 381 42,616

381 47,401 42,616

Codes Period

9073 1,670450 396

9077 8,323

Period

1,5218,3401,893


Operating results

Codes PeriodPreceding

period

Operating income

Other operating income (heading 74)whereof: the total amount of compensatory amounts obtained from public

authorities 740 50 340

Operating costs

Employees recorded in the personnel registerTotal number at the closing date 9086 916 946Average number of employees in full-time equivalents 9087 896.6 910.6Number of actual working hours 9088 1,345,825 1,422,022

Personnel charges (heading 62)Remuneration and direct social benefits 620 30,281 30,476Employer's contribution for social security 621 13,537 13,242Employer's premium for extra-statutory insurance 622 2,537 2,978Other personnel charges 623 7,901 7,183

Provisions for pensions (included in heading 635/7) Additions (uses and write-back) (+)/(-) 635 -1,654 3,310

Amounts written off (heading 631/4)Stocks and contracts in progress- Recorded 9110 2,429 4,535- Write back 9111 2,898 4,182Trade debtors- Recorded 9112 196- Write back 9113 196

Provisions for risks and charges (heading 635/7)Additions 9115 14,542 16,991Uses and write-back 9116 16,047 13,843

Other operating charges (heading 640/8) Taxes related to operations 640 1,068 1,059

Temporary personnel and persons placed at the disposal of the enterprise

Total number at the closing date 9096 45 88Average number of employees in full-time equivalents 9097 59.9 88.5Number of actual working hours 9098 100,935 141,116Charges to the enterprise 617 4,766 6,540


Financial and extraordinary results

Codes PeriodPreceding

period

Financial results

Other financial income (heading 752/9) Government grants recognised in the income statement

Investment grants 9125 327 194Allocation of other financial income

Exchange differences 4,177 2,918

Other financial chargesAllocation of other financial charges

Exchange differences 4,438 1,818Premium Ducroire/Delcredere The Belgian Export Credit Agency - Venezuela -1,783

Extraordinary results Period

Allocation other extraordinary incomeMiscellaneous 6

Allocation other extraordinary chargesPenalties 25Miscellaneous 19

INCOME TAXES Codes Period

Income taxes

Income taxes on the result of the current period : 9134 1,928

Taxes and withholding taxes due or paid 9135 2,778

Excess of withholding taxes capitalised (-) 9136 - 850

Income taxes on previous periods : 9138 1,969

Additional charges for income taxes due or paid 9139 1,969

In so far as income taxes of the current period are materially affected by differences between the profit before taxes, as stated in the annual accounts and the estimated taxable profit, the main source for such differences with special mention of timing differences.

Non-deductible expenses 6,379Investments deduction 800Notional interests 1,903

Other taxes and taxes borne by third parties Codes PeriodPreceding

period

The total amount of value added tax, charged during the period:to the enterprise (deductible) 9145 15,658 13,998by the enterprise 9146 10,886 9,069

Amounts retained on behalf of third parties for:Payroll withholding taxes 9147 9,860 10,011


Rights and commitments not accrued in the consolidated statement of financial position

Goods and values not disclosed in the consolidated statement of financial position, held by third parties in their own name but at risk to and for the benefit of the enterprise: Raw materials in custody Tooling in custody Materials in custody Amount of forward contracts: Currencies sold (to be delivered)

Information relating to technical guarantees, in respect of sales or services.

The general sales terms provide for a fonctional guarantee during a 6 month period. They are very few exceptions to the rule. For example, the warranty for space products covers 24 to 60 month stocking.

If there is a supplementary retirement or survivors’ pensions plan in favour of the personnel or the executives of the enterprise, a brief description of such plan and of the measures taken by the enterprise to cover the resulting charges. The company contracted group insurance policies in favour of its employed personnel- a guaranteed retirement or survivor’s revenue, as a complement to legal pension and based on seniority as well

as on remuneration at the end of the carreer; - a death capital for the benefit of nominees in case of decease of the employee before retirement time.

Premiums are paid by the employee and the company according to the insurance plan.

Relationships with affiliated enterprises and enterprises linked by participating interests

CodesAFFILIATED ENTERPRISES

PeriodPreceding

period

Financial fixed assets (281/1) 5,384 5,390

investments (280) 5,384 5,390

Amounts receivable 9291 5,211 7,273

after one year 9301 4,248 3,896within one year 9311 963 3,377

Amounts payable 9351 922 1,254

within one year 9371 922 1,254

Financial resultsOther financial income 9441 167 377

Financial relationships with

Directors and managers, individuals or bodies corporate who control the enterprise without being associated therewith or other enterprises controlled by these persons, other enterprises controlled by the sub B. mentioned persons without being associated therewith The amount of direct and indirect remuneration and pensions, included in the income statement, as long as this disclosure does not concern exclusively or mainly, the situation of a single identifiable person:

to directors and managers

Codes Period

3,285783385

9216 23,813

Codes Period

9503 95


Financial relationships with

Auditors or people they are linked to

Auditor’s fees

Other missions within the framework of certificate of attestation

Other attestation missions

Commitments, rights and suspense accounts (Art, 4, al, 2 of the R,D of October 8,1976)

PeriodPreceding

period

Guarantees given by third parties on behalf of the company 4,905 5,411Guarantees received 1,371 2,787Goods belonging to third parties 148,714 95,341Miscellaneous, commitments, rights and suspense accounts including 4,452 4,8922,245,807 registered shares SABCA handed by third parties PM PMTemporary partnership SABCA - SONACA 13 13Belgian Association for the Maritime Patrol Airplane (A.B.A.P.) 10,621 10,621Forward contracts 23,813 8,948

193,889 128,013

Third party goods (analysis)

PeriodPreceding

period

Third party goods and values, held in deposit, consignment or for manufacturing Third party raw materials in the store room 5,982 6,404 Third party aeronautical parts and material, in the manufacturing or overhaul process 3,919 3,900Third party tooling, in deposit 65,548 64,811Equipment for repair-overhaul, in deposit 19,509 19,447 Office furniture 53,756 779

148,714 95,341

Codes Period

9505 70

9506 24


Social report

Statement of the persons employed

Employees recorded in the staff register

During the period and the previous period Average number of employeesNumber of hours actually worked

Personnel costs

Codes 1. Full-time 2. Part-time3. Total in full-time

equivalents

At the closing date of periodNumber of employees recorded in the personnel register 105 765 151 881.0

By nature of the employment contractContract for an indefinite period 110 716 150 831.6Contract for an definite period 111 49 1 49.4

According to the gender and by level of educationMale 120 680 132 782.5- primary education 1200 14 2 15.6- secondary education 1201 453 115 542.1- higher education (non university) 1202 149 14 160.3- university education 1203 64 1 64.5

Female 121 85 19 98.5- primary education 1210 3 3.0- secondary education 1211 52 11 59.6- higher education (non university) 1212 17 4 20.2- university education 1213 13 4 15.7

By professional categoryManagement staff 130 11 11.0Employees 134 419 77 478.0Workers 132 335 74 392.0

Codes 1. Full-time 2. Part-time

3. Total (T) or total offull-time

equivalents (FTE)

4. Total (T) or total offull-time

equivalents (FTE)

(period) (period) (period)(previous period)

100 782.8 148.3 896.6 (FTE) 910.6 (FTE)101 1,182,673 163,152 1,345,825 (T) 1,422,022 (T)

102 48,387 5,869 54,256 (T) 53,879 (T)


Hired temporary staff and personnel placed at the enterprise’s disposal

During the period Codes1. Temporary

personnel

2. Persons placed at the

disposal of the enterprise

Average number of employees 150 12.8 47.1Number of hours actually worked 151 19,391 81,544

Charges of the enterprise 152 681 4,085

Table of personnel changes during the period

Entries Codes 1. Full-time 2. Part-time3. Total in full-time

equivalents

Number of employees recorded on the personnel register during the financial year

205 24 24.0

By nature of the employment contractContract for an indefinite period 210 6 6.0Contract for an definite period 211 18 18.0

Departures Codes 1. Full-time 2. Part-time3. Total in full-time

equivalents

Number of employees with a in the staff register listed date of termination of the contract during the period

305 53 1 53.8

By nature of the employment contractContract for an indefinite period 310 28 1 28.8Contract for an definite period 311 25 25.0

According to the reason for termination of the employment contract

Retirement 340 4 4.0Dismissal 342 11 11.0Other reason 343 38 1 38.8


Information with regard to training received by employees during the period

Total number of official advanced professional training projects received by employees at company expense

Codes Male Codes Female

Number of participating employees 5801 418 5811 49Number of training hours 5802 6,913 5812 997Costs for the company 5803 759 5813 98

of which gross costs directly linked to the training 58031 832 58131 107of which paid contributions and deposits in collective funds 58032 107 58132 14of which received subsidies (to be deducted) 58033 180 58133 23

Total number of less official and unofficial advanced professional training projects received by employees at company expense

Number of participating employees 5821 46 5831 9Number of training hours 5822 4,487 5832 1,017Costs for the company 5823 218 5833 39


Summary of the rules of valuation (Art. 15, paragraph 2 of the Royal Decree of October 8,1976)

The rules of valuation were deposited on June 7, 1978 at the 6th Registration Office in Brussels – Volume 131, folio 66 section 18

INTANGIBLE FIXED ASSETS

These fixed assets are valued according to art. 25 of the Royal Decree of October 8, 1976. The board of directors decides, depending on the case, on the amount to be passed to the assets side as well as the depreciation rates to be applied. They can be the subject of accelerated or exceptional depreciation, in accordance with the fiscal prescriptions in this matter, if due to their alteration or modifications of the economic circumstances, the book value exceeds the usage value.The research and development costs are depreciated according to the straight-line method over a three year period, the software costs over a five year period. The intangible fixed assets purchased or produced since 2003 are subjected to a daily pro rata applicable to the first period of depreciation.

TANGIBLE FIXED ASSETS

The ACCOUNTING BOOK VALUE is defined in accordance with art. 21/22 and 23 of the Royal Decree of October 8, 1976.

ADDITIONAL COSTS AND NON-RECOVERABLE TAXES.

Additional ancillary costs are depreciated in the same time and in the same way as the amount in principal of the purchase price or the production cost of the equipment (art. 196, § 2,2° CIR new).. The ancillary costs related to old tangible fixed assets continue to be written off, following the depreciation plan in the same way as in the past.

DEPRECIATION

(a) MethodThe straight-line method is applied for the former investments while the decreasing method is used for the investments that have been made since 1977, with the exception of any other fiscally authorized method within the context of investment stimulation. In that case, the board of directors examines the appropriateness of these depreciation methods case per case, as well as the additional depreciation rates related to economic and/or technological reasons (art. 28, paragraph 2), and the extent to which they should be applied. Since 1977, the whole of the depreciation rules authorized by the various government measures, have been applied (100% and sometimes even 110% of the value). The depreciation rules were applied for the whole year and for the first time during the year when the purchase takes place until end 2002

In accordance with the fiscal law dated December 24, 2002 the new rules related to the daily pro rata depreciation are applied to the new tangible and intangible fixed assets purchased or produced since the fiscal year 2004. The assets purchased or produced before the financial period 2003 can be continued to be depreciated following the old procedure. The advance payments and assets under installation and construction benefit of a specific accounting and fiscal treatment.

(b) Applied depreciation ratesBuildings: 5% or more is fiscally allowed, mainly for buildings erected on lands granted by third persons for

a determined period and for the lay-out of the rented buildings.


Installations, machines, tooling: 10% generally speaking; yet, a rate of 20 or 25% is applied for laboratory or electronic material, numeric control machines i.e. high precision equipment or machines in a sector undergoing a rapid technological evolution; as well as for equipment used in shift working. Tooling and equipment, templates and numeric control software proper to a program are depreciated at 100% or during the period of the contract in conformity with the allowed fiscal rules.

Furniture, office and rolling stock: 10% except for vehicles and trailers, office machines, computers, cameras and copiers (20%).

Depreciation recoveries can be applied up to the taxed surplus depreciation as well as for the tax exempted depreciations exceeding above mentioned rates; also in case of transfer, sale, catastrophe or compulsory purchase.With effect from the beginning of 2003 the daily pro rata was applied as well as to the straight-line method as to the decreasing or accelerating method of depreciation.

FINANCIAL FIXED ASSETS

STOCKS AND SHARES VALUES

The acquisition, subscription costs are booked as exceptional financial charges. The losses in value of non-quoted shares are considered only if the loss is important and lasting.

RECEIVABLES: (see below)

STOCKS

PURCHASE PRICE of materials, supplies and goods, suppliers invoices plus import, delivery, insurance and commission costs.

VALUATION OF STOCKS AT THE END OF THE FINANCIAL YEAR as well as RAW MATERIALS CONSUMPTION: FIFO method (First In, First Out).

AMOUNTS WRITTEN OFF ON STOCKS: Up to 100%.

(a) for parts related to completed production or maintenance programs, unusable or whose tolerances, norms, technical configuration, conception have changed.

(b) for parts that have not moved during the 24 previous months.

In case of later use of the non destructed parts, amounts written of are decreased.

CONTRACTS IN PROGRESS

ELEMENTS CONSTITUTING THE COST PRICE Cost prices are determined taking into account all direct production costs on the one hand, as well as the whole of indirect costs on the other hand. For the latter, however, the board of directors reserves the right to book only part of these costs to cost price, individualized by a production program or not, the other part being booked directly to the result of the year or spread over several years. This right will only be used in case of exceptional disruptive and temporary circumstances (such as strikes, important and prolonged under-activity periods, restructuring and lay-outs) having such an impact on the cost price of works that they would considerably alter its image.

Method of distribution by individualized production programs(a) direct booking of raw materials, parts, consumer goods, direct costs and specific subcontract costs, depreciation

of specific equipments and relocation, lay-out costs proper to a program.


(b) booking of indirect costs through hour rates based on the work of the production personnel and/or certain machines. These hour rates include all direct and indirect remuneration and related charges as well as overheads and the financial industrial usage cost of the equipment. The latter can be spread over individualised production programs by derogating from the depreciation method and amount booked to the consolidated statement of financial position on an economic and fiscal basis.

VALUATION OF THE WORK IN PROCESSThey include unfinished works regarding a same group of contracts, or for which the cost price elements are not complete, or for which definitive acceptance quality controls (possibly to be carried out by the customer) are not yet completed. These work in process are valuated at the cost price after deduction of the already invoiced works.

AMOUNTS WRITTEN OFF

(a) on works carried out: they are automatically and fully implemented up to the amount of the incurred costs exceeding the possible total contract invoicing.

(b) on works left to be carried out: the estimated costs of these works are added to reductions described in (a) only if the progress of work is higher than 75% and if the estimation of these costs and of the invoicing to be made can be sufficiently accurate (usual works). In the other cases, provisions for risks on received orders should be made with the greatest care and on an individual basis.

(c) on sales realized by our customers : in case of loss on program, a provision will be constituted to cover our implicit obligations.

RECEIVABLES

(a) Valuation of receivables (and payables) in foreign currencies at the internal standard exchange rate per currency, which is modified during the year only in case of important and lasting fluctuation of average rates or in case of official revaluation/devaluation.

(b) Amounts written off in the following cases: - fluctuation of the exchange rate of a minimum of 5 % ( and 1,250 euros, was 50,000 BEF) in proportion

to the internal standard rate; - bankruptcy, composition, nationalization (high political risks), subordination of receivables with risks; - important, lasting and in nature and amount determined litigation of which the recovery is very precarious,

the negotiations being concluded; - very negative economical, financial or political information concerning exports.(c) Provision for risks and costs on litigation in negotiations(d) Decrease in amounts written off if the effective decrease can reasonably be envisaged during the first months of

the following year or if the previous reductions were inappropriate or exaggerated.

ACCRUED OR DEFERRED CHARGES OR INCOME (assets - liabilities) They are used only for amounts that can considerably influence the result of the year on the one hand and that are part of the usual activities of the company on the other hand. The board of directors individually analyzes the elements that are not part of the usual activity.

PROVISIONS FOR LIABILITIES AND CHARGES They are systematically but very carefully established particularly when they can be fiscally harmful to the company or in case of loss superior to 50% of the capital.

PROVISIONS SET UP FOR TAX PURPOSES They are determined according to fiscal rules, taking into account increases, advance payments, real and fictitious with-holding taxes on investment income, taxes credit, withholding taxes on real estate and chargeable foreign taxes. The exceeding part of the previous provisions will be considered only if three booking years have passed after their constitution without complementary enrolment, unless the board decides otherwise.


MISCELLANEOUS RIGHTS AND COMMITMENTS NOT REFLECTED IN THE BALANCE SHEET They are valued at the maximum amount mentioned in the commitment documents. If there are no such documents, the reasonably estimated economic value of the goods they concern will be taken into account. This value will be considered as the net booking value for the goods belonging to the company.Adaptation to the valuation rules chosen by the companies (art. 17 paragraph 3 of the Royal Decree of October 8, 1976)

- Tooling, small equipment and small tooling constituting full individual sets of less than 250 euros (was 10,000 BEF) are no longer included in assets but in the cost price or in overheads depending on the fact that they are specific or not to a contract. This modification of the 1978 rules is dealt with in the new fourth paragraph of section 04,5 of the rules of valuation (Financial year 1979).

- Modification of the first paragraph of section 14 of the rules of valuation.- At the end of each social financial year, investments granted will be progressively reduced by booking to the profit

and loss account, in deduction of:a. either the depreciation regarding fixed assets for the acquisition of which they were obtained; or;b. the loan costs (Financial year 1981).

Starting from 1991, the deferred taxes have been deducted from investments granted and realized gains if necessary. They will be reduced at intervals by booking to the profit and loss account at the rate of the reduction of investments granted and, in the case of realized gains at the rate of the inclusion in the taxable result of the concerned gains.


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Comments on the non consolidated balance sheet N.B.: the important differences between correspondig headings of compared periods are mentioned in italic.

AssetsFixed Assets 31,434Intangible assets 8,719 Research and development costs, know-how Movements during the period Acquisitions 7,476 Sales and disposals -6,598 Depreciation recorded -4,364 Depreciation cancelled after sales & disposals 6,598 Net book value 3,112

The research and development activities focused on civil aviation programs in which the company has been taking part with its industrial partners. Tangible assets 17,179 Land and buildings 4,457 Plant, machinery and equipment 6,202 Furniture and vehicles 1,749 Assets under construction and advance payments 4,771 Movements during the period Acquisitions 6,791 Sales and disposals -2,413 Depreciation -2 Depreciation recorded -4,497 Depreciation cancelled after sales & disposals 2,413 Net book value 2,292

The acquisitions over the financial year 2009 are divided between machines - tools intended for production, investments realized for the development and installation of new stores as well as the evolution of software. Financial assets 5,536 Affiliated enterprises Participating 5,384 - SABCA Limburg N.V. 5,290 - SABCA (C.D.R.) SPRL 11 - FLABEL CORPORATION S.A. 83 Other financial assets 152 Shares and other securities: 58 - B.S.C.A. 52 - Sambrinvest 6 - Arianespace Participation PM - Arianespace PM - Belairbus PM - SONACA PM - IGRETEC PM Intercommunale pour la Gestion et la

Réalisation d’Etudes Techniques et Economiques. - SABCA share in the participation of

A.B.A.P. to the formation of S.E.C.B.A.T. PM Amounts receivable and cash guarantees 94 - Cash guarantees 94 The financial assets were the object of an amount written down of 585 thousand EUR recorded on Arianespace Participation and Arianespace.


Current assets 220,493Amounts receivable after more than one year 4,248 Trade debtors 4,160 Other amounts receivable 88 SABCA Limburg N.V. Stocks and contracts in progress 79,726 Stocks 27,466 Raw materials and consumables 7,895 Goods purchased for resale 18,994 Raw materials and consumables in stock for other contracts partially paid by customer Advance payments 577 Contracts in progress 52,260 This item contains principally the following programs: Airbus, Space applications and Dornier. Amounts receivable within one year 40,627 Trade debtors - supply of goods & services 37,556 whereof affiliated enterprises 963

The increase of 3 million of trade receivables is mainly due to advance payments made to suppliers.

Other amounts receivable 3,071 V.A.T. Recoverable 648 Excess of income tax payments to be recovered 850 Loans and advances to the personnel 27 Amounts owed by insurers 391 Sundry amounts receivable 1,155

The «Other amounts receivable» are in decrease of 4 million due to the repayment received from our subsidiary SABCA Limburg.

Investments 92,046 Other investments and deposits 92,046 Less or equal to one month 16,712 Between one month and one year 55,227 More than one year 20,107 Cash at bank and in hand 1,060 Bank & post office 1,060 Cash 14 Cash in transit -14

Term deposits and cash & cash equivalents amount globally to 92 million. This important increase in treasury is the corollary of the big increase of long term and short term customers advance payments received on contracts in progress. Deferred charges and accrued income 2,786 Expenses booked or prepaid 385 Accrued bank and loan interests 252 Goods in acceptance and litigations 2,149

This heading goes from 1,057 to 2,786 and mainly contains goods not yet currently accepted.

Total assets 251,927


LiabilitiesShareholders’ equity 52,338

Capital 12,400 Issued capital 12,400 Represented by 2,400,000 shares without mention of nominal value

Reserves 14,050 Legal reserve 1,240

Reserves not available for distribution 595 Extraordinary reserve 595

Untaxed reserves 455 Other untaxed gains: 394 Building and equipment 2 Realized tangible assets of more than five years 88 Collective transport of employee 304 Investment reserve: 61 Surplus after incorporation into the capital Reserves available for distribution 11,760 Reserve for replacement of tangible assets 2,866 Reserve for installations in favour of the personnel 938 Other available reserves 7,956

Profit carried forward - retained earnings 25,141 See page 32 for the appropriation of the result of the financial year 2009.

Investment grants 747

Following the continuation in 2009 of new agreements signed with the «Région Bruxelles-Capitale» and the «Région Wallonne» in the scope of their political incentives and financial measures for industrial research a gross amount of 429 was booked and 327 were affected to other financial products.


Provisions and deferred taxation 35,838 Provisions for liabilities and charges 35,793 Pensions and similar obligations 10,408 Major repairs and maintenance 1,796 Other liabilities and charges 23,589 For global risk Ariane 5 and adaptation of

the company to civil aviation programs 10,400 For future losses on orders 10,221 For future losses on orders in progress (Art. 31). 2,583 For fire insurance, damage and civil liability 60 For risks and charges on cases at issue 75 For social litigations 250

The provisions for liabilities and charges have increased by more than 3 million mainly due to the uses and reversals in the provision for pensions and similar obligations for 1,6 million and to the provision for premium Ducroire (The Belgian Export Credit Agency) which has been totally written down for an amount of 1,8 million. The new allocation of the provision for future losses is compensated by uses and reversals in the provision for global risk Ariane 5. Deferred taxation 45 Taxes relating to gains on disposals of fixed assets 790 Transfer from deferred taxation on dito -745

Creditors 163,751 Amounts payable after more than one year 90,017 Advances received on contracts in progress 47,401 Customer advances 47,401 Other amounts payable 42,616 Advances on prototypes, received by the State and to be reimbursed conditionally: - SPP Politique scientifique - SPF Economy

N.R.C. - TAILCONE 2,096 - SPP Politique scientifique - SPF Economy

N.R.C. - PLANCHER 3,660 - SPP Politique scientifique - SPF Economy

N.R.C. - A380 22,699

Advances received from Brussels-Capital Region and to be reimbursed conditionally: - Servoactuators 2,890 - Airbus 340-500/600 3,651 - Development civil aviation programs 7,323 - No-back device for electromechanical actuators 149 - Zero lead differential roller bearing 148 The increase of the amounts payable after more than one year is explained by a strong increase of advances received on contracts.


Amounts payable within one year 61,980 Current portion of amounts payable after more than one year 381 Science Policy PPS - FPS Economy and

Brussels-Capital Region 381

Financial debts 166 Other banks 166 Trade debts 17,910 Suppliers 17,910 * - Invoices to be paid 17,024 - Invoices to be received 886 * whereof affiliated enterprises 922 Advances received on contracts in progress 30,235 Financial invoices in progress 79,348 Amounts not yet received to deduct -8,340 Long term financial invoices -47,401 Invoices redefined as advances 8,521 Invoices redefined as advances not yet received -1,893

Taxes, remuneration and social security 10,389 Taxes 2,066 - Estimated taxes payable 396 - Taxes payable 1,671 - Taxes withheld -1 Remuneration and social security 8,323 - Social Security Office -144 - Remuneration due to the personnel 322 - Holiday pay 5,099 - Provisions for bonus and other

personnel charges 2,888 - Insurance for the personnel 124 - Other social obligations 34 Other amounts payable 2,899 Amounts payable resulting from appropriation of profits 2,527 - Dividends relating to previous financial years 16 - Dividends relating to the financial year 1,824 - Profit sharing for the period 687 Sundry amounts payable 372 Royalties 273 - Contributions 12 - Customers payable 2 - Other 85 The advances received on contracts are increased by more than 16 million.

Accrued charges and deferred income 11,754 - Accrued charges 1,521 - Suspense accounts 10,233

The progression of suspense accounts results from advance payment invoices not yet cashed.

Total liabilities 251.927


Sources and applications of funds (in thousand EUR)

I. Sources

Profit for the period 5,519

Depreciation and amounts written down 9,458

Investment grants 102

15,079

Increase amounts payable after more than one year 11,589

26,668

II. Applications

Increase amounts receivable after more than one year 352

Provisions and deferred taxation 3,216

Purchase of fixed assets 14,361

Distribution of profit 2,511

20,440

I. - II. Movement in working capital 6,228

III. Movement in stocks and contracts in progress -8,737

Movement in short-term accounts receivable -1,246

Movement in deferred charges and accrued income 1,699

-8,284

IV. Movement in short-term non financial debts 16,662

Movement in accrued charges and deferred income 2,286

18,948

III. - IV. Movement in short-term financing requirements -27,232

V. Movement in investments 33,276

Movement in cash at bank and in hand -244

VI. Movement in short-term financial debts 428

V. - VI. Movement in cash 33,460


Company number : BE 0405.770.992

stAtutoRY AuDItoR’s REPoRt to tHE GEnERAl sHAREHolDERs’ MEEtInG on tHE AnnuAl Accounts oF tHE coMPAnY

sABcA sA As oF AnD FoR tHE YEAR EnDED DEcEMBER 31, 2009

As required by law and the company’s articles of association, we report to you in the context of our appointment as statutory auditor. This report includes our opinion on the annual accounts and the required additional disclosures and information.

Unqualified opinion on the annual accounts

We have audited the annual accounts of SABCA SA as of and for the year ended December 31, 2009, prepared in accordance with the financial reporting framework applicable in Belgium, and which show a consolidated statement of financial position total of KEUR 251.927 and a profit for the year of KEUR 5.519.

The company’s board of directors is responsible for the preparation of the annual accounts. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of annual accounts that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Our responsibility is to express an opinion on these annual accounts based on our audit. We conducted our audit in accordance with the legal requirements applicable in Belgium and with Belgian auditing standards, as issued by the «Institut des Reviseurs d’Entreprises/Instituut der Bedrijfsrevisoren». Those auditing standards require that we plan and perform the audit to obtain reasonable assurance about whether the annual accounts are free of material misstatement.

In accordance with the auditing standards referred to above, we have carried out procedures to obtain audit evidence about the amounts and disclosures in the annual accounts. The selection of these procedures is a matter for our judgment, as is the assessment of the risk that the annual accounts contain material misstatements, whether due to fraud or error.

In making those risk assessments, we have considered the company’s internal control relating to the preparation and fair presentation of the annual accounts, in order to design audit procedures that were appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. We have also evaluated the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by management, as well as the presentation of the annual accounts taken as a whole. Finally, we have obtained from the board of directors and company officials the explanations and information necessary for our audit. We believe that the audit evidence we have obtained provides a reasonable basis for our opinion.

In our opinion, the annual accounts give a true and fair view of the company’s net worth and financial position as of December 31, 2009 and of its results for the year then ended in accordance with the financial reporting framework applicable in Belgium.


Additional remarks

The company’s board of directors is responsible for the preparation and content of the management report, and for ensuring that the company complies with the Companies’ Code and the company’s articles of association.

Our responsibility is to include in our report the following additional remarks, which do not have any effect on our opinion on the annual accounts: - the management report deals with the information required by the law and is consistent with the annual accounts.

However, we are not in a position to express an opinion on the description of the principal risks and uncertainties facing the company, the state of its affairs, its foreseeable development or the significant influence of certain events on its future development. Nevertheless, we can confirm that the information provided is not in obvious contradiction with the information we have acquired in the context of our appointment ;

- without prejudice to certain formal aspects of minor importance, the accounting records are maintained in accordance with the legal and regulatory requirements applicable in Belgium ;

- there have been no transactions undertaken or decisions taken in breach of the company’s statutes or the Companies’ Code such as we would be obliged to report to you. The appropriation of results proposed to the general meeting is in accordance with the relevant requirements of the law and the company’s articles of association.

Brussels, April 16, 2010

X. DOYENStatutory Auditor


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SABCASociété Anonyme Belge de Constructions AéronautiquesChaussée de Haecht 1470B-1130 BrusselsBelgium

Tel. : +32.2.729 55 11Fax : +32.2.705 15 70e-mail : [email protected]

www.sabca.com

Registered Office at 1130 Brussels, Chaussée de Haecht 1470Factories in Brussels and CharleroiFactory at 6041 Charleroi, rue des Fusillés 11RPM Brussels V.A.T. BE 0405 770 992Consolidation includes the subsidiary: SABCA Limburg N.V.Registered Office at 3560 Lummen, Dellestraat 32RPR Hasselt V.A.T. BE 0438 251 146

SABCA expresses its gratitude to Mr Guillaume Dedeurwaerder for hisartistic and photographic collaboration.

Realization and production : www.redline-communication.be

annual report - sabca · . i. sabca group consolidated income statement in accordance with ifrs...

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