SABCA Annual report 2010

SABCA Annual report 2010

SABCA Annual report 2010 2010 Report of the board of directors Ordinary General Meeting of 26 May 2011 Management Report Profile of the Group 1 Statutory bodies 2 Chairman s message 3 Message of the Chief Executive Officer 4 1. Principal activities in 2010 6 2. Business environment and outlook 16 3. Research and development 22 4. Human resources 28 5. Corporate Governance 32 6. Financial aspects 40 Proposals for resolutions 44 The detailed annual accounts are inserted hereafter.

SABCA 1_ 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. 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 and the efficiency created by working as a team with customers, starting from the design stage and going through to qualification, production, delivery and after-sales service. 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 contribute to the realization of special 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 manufacturing engineering, as well as in the area of quality assurance. The Group also abides by the environmental standards and makes appropriate investments to ensure that this remains the case. 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, notably in response to the customers wishes.

_2 SABCA Annual report 2010 Statutory bodies SABCA Board of directors (and the expire date of current term) Chairman Remo Pellichero (2013) Chief Executive Officer Daniel Blondeel Charles Edelstenne Guy Piras Loïk Segalen Daniel Blondeel, from 20th January 2011 1 (2016) Directors Charles Edelstenne, Chairman and Chief Executive Officer Dassault Aviation 2 (2016) Guy Piras, Executive Vice-President, Industrial Operations, Procurement and Purchasing, Dassault Aviation 2 (2016) Sjoerd Vollebregt Henk Valk Jacques de Smet Philippe Delaunois Loïk Segalen, Executive Vice-President, Economic and Financial Affairs, Dassault Aviation 2 (2014) Sjoerd Vollebregt, Chairman and Chief Executive Officer Stork B.V. 3 (2016) Henk Valk, Executive Vice President Fokker Aerostructures B.V. 3 (2016) Jacques de Smet, independent director (2014) SABCA Limburg Board of directors (and the expire date of current term) Chairman Remo Pellichero (2013) Directors Loïk Segalen, Executive Vice-President, Economic and Financial Affairs, Dassault Aviation 2 (2015) Ruben J.H. Hutten, Director Finance Fokker Elmo B.V. 3 (2016) Philippe Delaunois, independent director, from 20th January 2011 1 (2016) Auditor Xavier Doyen, Member of the Institute of Company Auditors Chief Executive Officer Daniel Blondeel (2012) Auditor Luc Toelen, Member of the Institute of Company Auditors 1 Decision of the general meeting of 20th January 2011 2 Elected on the proposal of the Dassault Group 3 Elected on the proposal of the Stork Group

SABCA 3_ Chairman s Message Remo Pellichero In the course of 2010, our customers put a lot of effort into controlling the risks involved in their major aeronautical projects. The progress made has enabled us to benefit from the growth coming from the rise in programme development rates. Through its involvement in several new aircraft projects, SABCA is in a position to take advantage of this favourable development. However pressure on margins remains high, especially with regard to the development of the US dollar exchange rate. In our aerospace business, the commercial successes of Arianespace herald good delivery rates for the future. The lightweight Vega launcher is due to start operating soon, offering new development perspectives. Competition in the field of launchers remains very strong and, with ESA, further progress will need to be made to secure the future. Exports helped the aircraft modernisation activity to stay strong, but the business is very dependent on the global political climate. The current international situation could become a threat to the development of these activities. The problem of export licenses for defence equipment is back on the government s agenda. SABCA, as is the case with all Belgian companies, is keeping a very close eye on developments here, as the success of its projects abroad is closely linked to it. In this overall context and as a result of costcutting measures, as well as increases in the productivity, improved programme management, and efforts of controlling risk and quality, SABCA has been able to improve its net result despite a slight drop in turnover. The company will therefore be submitting a proposal to the Annual General Meeting to increase total dividends to 2.11 million EUR, which is 0.88 EUR gross or 0.66 EUR net per share. Cash flow remains at a good level and our order book, now standing at 393 million EUR, represents nearly 3 years of work. In accordance with the new Belgian law of 6 April 2010 strengthening corporate governance in stock listed companies, the Board has set up a remuneration committee. A new independent director, Mr. Philippe Delaunois, was appointed by the Extraordinary General Meeting held on 20 January 2011. The committee will consist of Mr. Ph. Delaunois, independent director, Mr. J. de Smet, independent director, and Mr. R. Pellichero, Chairman of the committee. In the course of the above-mentioned Extraordinary General Meeting, Mr. Daniel Blondeel, Chief Executive Officer, was also appointed managing director. Having weathered the crisis, the company has all the right cards to meet the challenges in its business environment and to continue its development. Remo Pellichero

_4 SABCA Annual report 2010 Message of the Chief Executive Officer SABCA and its business environment Our company has three business fields: civil aviation, aerospace and defence. In the field of civil aviation, all forecasts point to the production of aircraft with 100 seats or more rising in the next twenty years. We also have hopes that the business aviation market will soon start picking up. The Executive Committee (ComEx). From the left to the right : D. Blondeel, P. De Graef, R. De Dobbeleer, J.M. Lefèvre and M. Humblet. However, increasing pressure on prices, the influence of low-cost countries and globalisation are all becoming factors making it more and more difficult to operate in the market.

SABCA 5_ Daniel Blondeel In this context, we need to continue improving our overall productivity in all products, while at the same time showing our interest for other international programmes. The success of the six Ariane 5 launches in 2010, the approval and delivery of structural assemblies and thrust vector control systems for the 4 stages of the Vega underpin our future. These actions inevitably involve a supply chain working to an increasing extent with companies in these low-cost countries and with a high potential for purchasing aircraft. The only way for us to maintain our added-value profile vis-à-vis our customers is through a policy of increased industrial cooperation. Moreover, we are looking forward to a significant increase in the A380 production rate and the delivery of the first A350 assemblies early in 2011, with both factors having a positive impact on our future. Turning to aerospace, the European Ariane 5 and Vega programmes, in which SABCA is heavily involved, are also taking place in a rapidly changing economic environment. The large volume of orders for commercial launchers must not conceal the major challenges facing Arianespace: adoption of the A5ME modernisation programme, discussions on Ariane 6 or the new generation launcher (NGL), the company s consolidation, improvements in the company s competitiveness against a background of new non-european players entering the market, and, last but not least, success in the first Vega launch in the second half of 2011. For its part, SABCA would like to strengthen its position in this field through a series of research projects and concrete proposals made to its partners. Finally, in the defence field, though the quantity of aircraft to be modernised and overhauled in 2011 for the Belgian armed forces has not been questioned, the low number confirms our strategy of developing our export business. 2009 and 2010 proved to be years confirming the value of such an option, though now, with a number of export contracts near to completion, our teams are hard at work on clinching new deals. As a result of the A400M test flights and the agreement reached between the seven participating countries and Airbus Military S.L. on the continuation of the programme, production can be expected to start up this year. Generally speaking, we would seem to be going through a period of uncertainty. The major impact of the US dollar on our competitiveness, the growing influence of emerging countries, political instability in Belgium, inflation and the cost of raw materials are all factors obliging us to permanently keep on the look-out. The best weapon against such vagaries is: ourselves! We must continue our efforts to boost our competitiveness and flexibility, putting us in a position to face up to this rapidly changing business environment. Daniel Blondeel

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SABCA 7_ 1 Principal activities in 2010

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Vega In 2010, SABCA carried out the final modifications to the 0/1 inter-stage skirt produced at its Brussels plant in 2009. Here on the Dufieux lathe-mill. SABCA 9_ AEROSPACE Ariane 5 The Ariane 5 launcher, with its significant contribution from SABCA, continues to be a great technical and commercial success, with a total of 55 successful launches in a row and a share of the available market exceeding 50%. Technical problems forced Arianespace to postpone the first launch in 2010 for several months. It finally took place in May. A total of 6 Ariane 5 rockets were launched in 2010. The delay in the year s launch schedule obviously had an effect on SABCA production. In 2010, the company supplied structural elements ( JAV front skirts, JAR rear skirts, inter-stage separation rockets (Acceleration Rocket Frames) and DIAS vibration absorbers) and equipment ( GAM engine activation groups, GAT thrust activation groups, PCP pneumatic snatch off connectors, and the GHSM hydraulic servomotor subsystems for 6 launchers, instead of the 7 originally planned. The mounting of the equipment in the skirts and the final delivery of the latter are always carried out by SABCA Limburg. Vega In 2010, SABCA carried out the final modifications to the 0/1 inter-stage skirt produced at its Brussels plant in 2009. The wiring harnesses have been mounted, together with systems for taking specific measurements for the first flight. A device for securing the launcher on its transport and launch platform was developed and incorporated in the structure. After the approval certificate had been issued, this first flight prototype was shipped to the Guyana launch site in December 2010. The tests needed for achieving the certification of the thrust vector control (TVC) system for the four stages of the launcher took place at SABCA s Brussels plant throughout 2010 and development is now nearing completion. The TVC system, consisting of an electronic guidance system, an electronic power regulation system and the high-performance electro-mechanical actuators, was completely developed at SABCA s mechatronics lab. Once certification of the test models has been obtained, the TVCs for each of the four stages of the first flight prototype (Flight Model 1 - FM1) will be upgraded and shipped to the customer in the first half of 2011.

_10 SABCA Annual report 2010 The thousandth tail cone left Brussels on 15 July 2010, just a few days before the 20th anniversary of the first shipment in August 1990 (here-above). CIVIL AVIATION AIRBUS A380 2010 saw the recovery of the market for large aircraft. At the same time, the manufacturing engineering problems plaguing the A380 and delaying an increase in production rates at our client appear to be resolved. By the end of last year, Airbus had delivered a total of 40 A380 aircraft to airline companies, and total orders are now for more than 240 planes. The delivery schedule for the A380 s 11-meter rear lower shell (commonly known as the T-shape) is now gradually gaining momentum, with SABCA delivering 17 T-shapes to the Saint- Nazaire site in 2010. Minor airline-specific changes are always being introduced at the request of airline companies, and development of the -800e model decided in 2009 is progressing. At the end of 2010, SABCA successfully passed the preliminary design review (PDR) for its part of this model and production is scheduled to begin in Brussels during the first half of 2011. The first modified rear lower shell is expected to be delivered to Airbus in early 2012. AIRBUS A340-500/600 No orders have been gained in 2010 for this aircraft, which from now on is only being built to specific airline orders. The manufacture of pressurised floors at SABCA s Brussels plant and of flap track fairings at the SABCA Limburg plant in Lummen remained halted for the whole year. Commercial interest in this 4-engined aircraft has declined substantially due to the evolution of air regulation. A380 : installation of fixed brackets on the T-shape. AIRBUS A330/A340-200/300 2010 saw the delivery of components for the thousandth aircraft of this Airbus family. The thousandth tail cone left Brussels on 15 July 2010, just a few days before the 20th anniversary of the first shipment in August 1990. The outlook for this programme remains very positive, pending the entry into service of its designated successor, the A350 XWB. The success of this programme was recently enhanced by the introduction of the cargo version, for which SABCA delivered its first element in 2009. In 2010, SABCA s Brussels plant supplied 80 fully-equipped tail cones to Airbus final assembly line in Toulouse, with SABCA Limburg providing the composite maintenance doors for the same planes.

SABCA 11_ AIRBUS A318/A319/A320/A321 Production rates for this programme remain very high, with a favourable influence on work at the SABCA Limburg plant in Lummen, which supplies the composite ribs of the aircraft s vertical stabilizer. For its part, the SABCA plant in Brussels is continuing to supply direct drive valves (DDV) to Messier Bugatti, which in turn builds the equipment into the braking systems of this aircraft family. These DDVs, entirely developed by SABCA on the basis of its experience in aerospace products, have had to be partially redesigned to counteract future technical obsolescence and to make them more competitive. In 2010, these elements were supplied for more than 400 aircraft. AIRBUS A350 XWB The development and production contract for flap support structures and fairings was awarded to SABCA by Airbus in 2008.The technological studies and the development are ongoing and our teams of engineers, designers and technicians in Brussels and Lummen are hard at work making sure that the production of the first elements can begin on time, while at the same time overcoming lots of technical and programming problems. Machining of the first beam support was completed at the Brussels plant in December 2010, and the assembly tools for the prototypes are currently being installed. Metal components for the Airbus plants at Bremen and Filton will begin to leave the Brussels plant in the first half of 2011, followed a few months later by the first composite components. These will be supplied to Bremen and Toulouse. DASSAULT Falcon 900-2000 and 7X The market for high-end business aircraft recovered slightly in 2010, with the Falcon 7X being one of planes benefiting most from the upturn. SABCA produces two types of elements for these business aircraft: Structural elements, in particular the panels for the F7X s rear tank, are manufactured and formed at SABCA s Brussels plant before being delivered to the Dassault Aviation plant at Seclin. For its part, SABCA Limburg supplies composite cladding, both for the horizontal panels and the engine cowling. Various other pieces of equipment, whether mechanical, electrical, hydraulic or pneumatic, for these programmes are manufactured in our mechatronics workshops in Brussels. The specific investment projects carried out in 2009 have allowed us to optimise the work in this field. In close collaboration with the Brussels design lab, the technical department at Lummen spent 2010 working on optimising the design of the support fairings for the wingflaps before the 2011 production start; SABCA Limburg has also designed the tools for making prototypes of these composite components, currently on order. In clean-room at SABCA Limburg site, build-up of composite top skin of Falcon 2000 and 900 horizontal stabilizer.

_12 SABCA Annual report 2010 Moreover, a new contract for the delivery of aileron servo-controls was signed in 2010. SABCA s involvement grew throughout the year, with responsibility being awarded to the company for controlling the equipment provided along with the airworthiness authority. Last but not least, in the context of an industrial cooperation agreement signed with Dassault Equipements in 2009, work on the assembly and inspection of servo-controls of Falcon and Alpha-Jet aircraft for the French and export markets started in January 2010 and was successfully continued throughout the year. The agreement involves a minimum 4-year cooperation period, with specific training being given to a team of SABCA technicians on signing. GULFSTREAM 650 The test programme of this new business aircraft is ongoing and is expected to end with the plane gaining its airworthiness certificate in 2012. The first deliveries to customers would take place in that year. SABCA Limburg has already supplied 13 sets of composite spars and cladding to Fokker Aerostructures, our customer responsible for assembling the tailfin. DEFENCE SABCA in Charleroi The Charleroi site continued its maintenance and modernisation work on aircraft, helicopters and accessories for both the Belgian and foreign armed forces. The work done for Belgium remained on the same level as 2009. The programme for modernising the French Mirages F1 and Alpha-Jets continued, with prototype and first-of-series aircraft being accepted and delivered following the completion of their flight test programmes in the first half of the year. Deliveries of standard modification kits continued, along with the work on series aircraft at customer facilities. The volume of F16 export work rose especially with the conclusion of a painting contract from the Dutch air force. Electrical wiring of a F16 in Charleroi.

SABCA 13_ A modernised French Alpha-Jet. As regards A10 aircraft, the workload generated by the new 5-year contract remains high. Work on a new order from Lockheed for 31 F16 MLU (Mid Life Update) kits started, with the first 3 kits being delivered at the end of 2010. An A109 helicopter for Benin was delivered following inspection and repair work. SABCA in Brussels and SABCA Limburg in Lummen The A400M certification programme is progressing, with the fourth aircraft (MSN 4) carrying out its maiden flight in December 2010 and the four aircraft currently undergoing their test programmes in Seville. The renegotiation of the contract between Airbus Military S.L. and its customer OCCAR ended up with a rescheduling of development and delivery plans. In the context of these negotiations, the total number of Airbus Military S.L. orders was revised downwards, with 170 aircraft now on order for OCCAR and 4 for Malaysia. An A109 helicopter from Benin was delivered after inspection and repair work. As of today, SABCA in Brussels has delivered the mechanisms used for deploying the wingflaps of 6 planes, while SABCA Limburg has delivered the composite fairings for the wingflaps of the same planes. Production will be starting up again in 2011.

_14 SABCA Annual report 2010 INDUSTRIAL INVESTMENT PROJECTS The construction of a new building in Brussels for 3 surface treatment lines is progressing according to schedule. 2010 saw the demolition of the old building and the foundation work for the new one. Starting next year, the anodising, penetration testing and painting of large-size objects will be done there in a highly automated manner, with this new production method complying with all the latest new environmental requirements. Various equipment for Falcon and Alpha-Jet aircraft is assembled, tuned and tested in the mechatronics workshops. QUALITY ENVIRONMENT A new HSM (high-speed machining) machine was delivered in December 2010 and installed in a purpose-built extension of Hangar 2 equipped with a 5-tonne overhead crane. It is a 5-axis horizontal machining centre, equipped with a variety of systems giving extremely high performance, in particular with regard to palleting and tool management. In 2010, our quality management system underwent its 3-year full audit needed for recertification. For this audit, SABCA used a different certification agency to gain a different point of view on its internal processes. The audit, covering the AS/EN 9100, AQAP 2110 and ISO 9100:2008 standards, led SABCA to improve a number of processes based on the perspective given by the new agency. For its part, SABCA Limburg went through the steps of gaining POA (Part 21) certification from the Belgian BCAA authorities. Soon to be completed, this will mean that SABCA Limburg will be in a position, under certain conditions, to itself certify the airworthiness of components delivered to Airbus in the context of the A350 XWB and A400M contracts. The ENVIRO project team was strengthened in 2010 by the arrival of a number of colleagues from the main plants, offices and labs. They were given training allowing them not just to actively take part in the introduction of an Environmental Management System complying with ISO 14001, but also to disseminate environmentally-friendly practices. Furthermore, a detailed analysis of the texts of environmental laws and decrees has been carried out, enabling SABCA and SABCA Limburg to make sure they are complying with all European, Belgian and regional regulations in this area at all their sites. The environmental management process has been published, together with all relevant environmental performance indicators. The management s aim is to achieve Phase 1 ISO 14001 certification in 2011.

SABCA 15_ In 2010, SABCA Limburg completed the installation of the new autoclave, 17 meters long and with a 6-meter diameter. Certification of the machine took place at the end of the year, and the first parts have already been polymerised in it. This investment opens up new perspectives in terms of R&D and will help us with other projects where large-size parts are involved. It will be used in the context of the G650. A new large-size spray booth will soon round off this project for dealing with orders from the market for large composite parts. This new investment, scheduled for 2011, together with the installation of laser projectors, will help us to boost both productivity and the quality of composite products at SABCA Limburg in the short term. Control room for the autoclaves. In 2010, SABCA Limburg completed the installation of the new autoclave, 17 meters long and with a 6-meter diameter. MOVEMENTS IN THE US DOLLAR EXCHANGE RATE Through 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 2010. 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. ORDERS SABCA orders reached 151 million EUR in 2010, taking the order book to 393 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.

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SABCA 17_ 2 Business Environment and Outlook

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A first flap support beam of the A350 XWB ready for shipment. SABCA 19_ AEROSPACE CIVIL AVIATION Though Europe has underlined its wish to upgrade its involvement in space, at this stage and in the absence of new European funding, the European Space Agency (ESA) remains the main driver of new developments. The next ministerial conference of ESA s 19 member states is now planned for 2012. It will define the programmes and respective budgets for the following years. Pending this, SABCA, in agreement with its client ASTRIUM, is working on the new technologies necessary for a new top stage for Ariane 5. This new stage constitutes the main element of the Ariane 5 Midlife Evolution (A5ME) programme, to be decided on at the next ministerial conference. The market for large and medium-sized aircraft is clearly picking up, with this positive development expected to continue over the next few years. Production rates of the A320, A330 and A380 are rising again, generating an increase of production and assembly work at SABCA and SABCA Limburg. Orders for the A350 XWB are also piling up at Airbus, reaching a 2010 year-end total of almost 600, well before the entry into service (E.I.S.) of the new entrant to the range, suggesting very high production rates right from the start. 2011 is set to be a crucial year for SABCA and SABCA Limburg in this programme, with the first sets of prototypes to be supplied according to a tight schedule and in a still changing development context. In this favourable business environment, the success of SABCA and its subsidiary, SABCA Limburg, will depend on their ability to keep internal costs under control and to set up an efficient supply chain. Looking at business aviation, the Gulfstream 650 programme is now underway, with production rates set to increase. The first sets of composite spars and cladding have been delivered to Fokker Aerostructures in the course of 2010.

_20 SABCA Annual report 2010 DEFENCE SABCA in Charleroi The company s aim is to consolidate F16 business on the basis of the unique experience and know-how gained through working with the Belgian air forces and other users of this plane over the last thirty years. Over and above the F16, the modernisation programmes currently running for the Alpha-Jet and Mirage F1 as well as the work being done on other aircraft types such as the A10 and helicopters are leveraged when looking for export opportunities. This strong reliance on commercial export success is of major concern for the plant of SABCA in Charleroi, whose workload has been declining since the beginning of 2010. The workshop for structural modifications in Charleroi. SABCA in Brussels Brussels and Lummen. Despite the slight The conclusion of the contract negotiations reduction in order volumes, the order book for between Airbus Military S.L. and OCCAR has this programme will benefit from regular production rates for several years. Deliveries led to the A400M programme restarting in will The A10 in Charleroi, for inspection and repair work as well as electrical and aircraft systems modifications.

SABCA 21_ be restarted in 2011, with SABCA and SABCA Limburg supplying components for two planes in the course of the year. After the first deliveries to the nations participating in the programme and thanks to its dual certification as both a civilian and military plane, the A400M can be expected to gain a good position on export markets. QUALITY SABCA is pursuing its quality assurance programme, using both internal and external audits. One of the main 2011 objectives is to implement the prerequisites at the Brussels and Charleroi sites for gaining Part 145 maintenance organisation approval for civil aviation equipment in the medium term. ENVIRONMENT SABCA and SABCA Limburg are aiming to link ambitious targets to selected environmental performance indicators in 2011 with a view to ultimately reducing the environmental impact of their business. We will be working on introducing a new waste management policy. Moreover, we will also be working on completing a first phase of the step-by-step ISO 14001 certification process proposed by AFNOR Certification. Our SABCA Limburg subsidiary is expected to gain POA (Part 21) certification from the Belgian aviation authorities. The work started in 2010 by SABCA Limburg for gaining PRI-NADCAP certification for the manufacture and inspection of composite parts should also bear fruit in 2011. Modification of the electrical wiring.

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SABCA 23_ 3 Research and Development

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Thrust Vector Control (TVC) system P80 (first stage of the Vega launcher). SABCA 25_ AEROSPACE A5ME (Ariane 5 Midlife Evolution) The project, being conducted for Astrium ST and in partnership with ETCA, of optimising and defining a thrust vector system along the lines of the one developed for Vega, but intended for a new Ariane 5 top stage, is progressing. It mainly involves the study of actuators, including power electronics. To achieve this, SABCA is looking into an improved version of its microprocessor specially designed for controlling electric motors. IXV (Intermediate Experimental Vehicle) The re-entry of this space vehicle into the atmosphere will be made possible by an efficient mechanism for activating the flaps. The first phase of this development, conducted in our mechatronics lab, was completed with success in 2010, with the passing of the critical design review. Phase C (the manufacturing engineering phase) has been started and Phase D (the actual production) is currently being negotiated with our customer Aleniaspace. Expert All elements of the cold structure of this re-entry capsule developed in 2009 were produced and supplied to the customer ELV in 2010. These parts will be used for the ground system tests. Technical support is planned for 2011, with a team supporting these tests in Rome. Vega In 2010, the mechatronics lab passed the certification reviews for the thrust vector control (TVC) systems of the launcher s four stages. The follow-up actions stemming from these reviews are now in progress. Following the certification of the TVCs and of the 0/1 inter-stage skirt for the first launch, SABCA will be starting work on a second set of TVCs and structural elements with the same definition.

_26 SABCA Annual report 2010 CIVIL AVIATION AIRBUS A380 Work on re-sizing the structure of the rear lower shell for the modified 800e version was carried out throughout 2010, with the actual design work started at the end of the year. The preliminary design review (PDR) was successfully completed at the end of 2010. Completion of the critical design review (CDR) in February 2011 will allow production of the new parts to start. The first assembly is due to be delivered to Airbus in January 2012. The files will then be compiled for the new certification. Development work is expected to be finished in 2012. A350 XWB The study of the flap supports structures and fairings of the first version has progressed well but the Maturity C milestone could not be passed in 2010. This review is now planned for early 2011. Various development items are still being intensely worked on by joint teams of engineers and designers from SABCA, SABCA Limburg and Airbus. Some interfaces still need to be fixed and the changes of load specifications in certain areas sometimes make our design lab have to adapt its design. A.S.T. (Advanced Surface Treatment) In preparation for the installation of the new surface treatment equipment in Brussels, a number of trials have been carried out to develop chromium-free treatment. NEW CIVIL AVIATION PROJECTS An innovative participation model for the design and development phase of the A350 XWB -1000 version is already in the study phase in our structural lab. Contrary to the initial expectations, this version will be significantly different to the -900 base version and its -800 derivative. DEFENCE SABCA in Brussels and SABCA Limburg in Lummen Results of the A400M flight tests are currently being analysed by our structural lab, with a number of expertises and justifications being done. The corresponding modifications will be incorporated in early 2011. Composite top skin of Dassault Falcon 900 and 2000 horizontal stabilizer.

SABCA 27_ At the same time, the certification files are being compiled. At Airbus itself, the static certification tests for the metal parts made by SABCA and the composite parts coming from SABCA Limburg have been successfully completed. Fatigue tests are underway. Civil certification of the A400M is expected to be completed at the end of 2011. SABCA in Charleroi The lab is working on the Mirage F1 and Alpha-Jet modernisation, prototypes of which were delivered in 2010. A new Alpha-Jet modernisation kit for export is currently being developed. This will allow the plane to be turned into an advanced training plane. In its role as aircraft manufacturer, SABCA is building the prototype and conducting the ground and flight tests needed for certifying this new configuration. Final inspection of Gulfstream 650 horizontal stabilizer spars. Studies are also proceeding on various adaptations of the A109 helicopter (cargo platform, installation of new equipment, etc.). COMPOSITE MATERIALS Composite structures are gaining in importance in new aeronautical projects. This field is developing very fast and it is indispensible to develop new techniques and new designs to remain competitive. Against such a background, SABCA is actively participating in various R&D programmes, in particular via European framework programmes and in the context of the Walloon government s Skywin initiative. Following the completion of a demonstration model (nominated for the 2010 JEC award at the Paris Composite Exhibition), tests are proceeding, in particular in the areas of compression and characterisation. MOJO (MOdular JOints for Aircraft Composite Structures) Structural assembly by bonding, using specific composite profiles, has passed new load tests. This metal/composite assembly method (without rivets) will allow a major reduction in panel mass. An innovation prize was awarded to a model demonstrating this method at the 2010 Paris Composite Exhibition. SQRTM ECTAS (Enhanced Composite Technologies for Aircraft Structures) This process is part of the research being done into automating the manufacture of structures based on the pre-impregnated unidirectional coatings, offering an alternative to autoclave curing. The process combines the mechanical characteristics of pre-impregnated materials and the dimensional precision of RTM, allowing a design greatly reducing assembly work. IMAC PRO (Industrialisation of MAnufacturing of Composite PROfiles) This project involves the braiding of composite parts for applications such as the production of large sections for frames or beams. 2010 saw the search for and the selection of a sub-contractor for providing the infusions. Demonstration components are expected to be produced in the first half of 2011.

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SABCA 29_ 4 Human Resources

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A380 : installation of strengthening beams on the machined frames. SABCA 31_ Evolution of the staff (SABCA Group) Headcount development On 31 December 2010, the company had a total staff of 987 people, a slight rise compared with the end of 2009. The main increase has been in our structural lab, with engineers being recruited in the context of new contracts, especially for the A350 XWB. The temporary unemployment for blue collar workers introduced in 2009 as a result of the world economic crisis was extended in 2010 for certain departments. Training In 2010, as in every year, training courses for technical subjects and language skills were developed, in line with operating requirements. The migration to new office software gave rise to a training programme in line with individual schedules for installing the software. No less than 435 people were involved. For the third year in a row, SABCA held a technical training course for precision mechanics, in collaboration with Iristech+, a sector training organisation. This training programme targets job seekers in the Brussels-Capital Region. The courses provided at our Brussels training centre and the professional skills acquired there by participants in the course of the 651 hours of training enable a number of them to be hired by SABCA. Career development Effective staff management requires specific skills that can effectively be developed through training. From this perspective, two measures merit highlighting: a leadership training course targeting managers and a training course for supervisors targeting workers soon to be made responsible for managing a team. Health and safety Our safety department devotes a lot of attention to keeping the working environment safe. Safety training and prevention campaigns are held regularly for this purpose. Moreover, a training course has been developed specifically for the recently appointed environmental officers (within the framework of the ENVIRO project) as a way of harmoniously combining environmental skills and requirements. Employee profit sharing Employees benefit from profit sharing in accordance with the collective agreement (CCT) nr 90.

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SABCA 33_ 5 Corporate Governance

_34 SABCA Annual report 2010 Corporate Governance Statement As a Belgian company listed on the NYSE Euronext market of Brussels, SABCA S.A. ( SABCA or the company ) complies in principle with corporate governance as defined and drawn up in the Belgian Corporate Governance Code. SABCA applies the Belgian Corporate Governance Code issued in 2009 and published by the Corporate Governance Committee ; it is available on the website www.corporategovernancecommittee.be. A corporate governance charter complying with the disclosure requirements of Appendix F of the Code is now being established. For particular reasons linked to the company s organisation, the charter can only be approved by the board of directors of September 2011 ; it will then be published on the company s website www.sabca.com. Taking into account the size and the situation of the company, as well as the specific structure of its shareholding, the board has considered that it is reasonable for the company not to fully comply with certain provisions of the Belgian Corporate Governance Code. These derogations concern the following provisions : Provision 2.3 : At least one half of the board should comprise non-executive directors and at least three of them should be independent [ ] Since 20th January 2011 the board comprises nine directors who are all non-executive, excepted for the CEO. Two of the non-executive directors satisfy the independence criteria. Because of the specific structure of its shareholding the company considers that the appointment of a third independent director would presently not contribute to the managing or controlling role of the board. Provision 4.1 : There should be a rigorous and transparent procedure for an efficient appointment and re-appointment of directors. The board should draw up nomination procedures and selection criteria for board members, including specific rules for executive and nonexecutive directors where appropriate. Due to the structure of the shareholding of the company, comprising one majority shareholder and a second leading shareholder, the company has not yet established specific procedures related to the appointment of directors. The board itself, led by the chairman, decides the appointments and possible re-appointments to be proposed to the general shareholders meeting. This implies that the company derogates to all provisions of the code calling for a proposal or recommendation by the nomination committee when directors or the management are to be nominated or assessed. It is the case for the following provisions of the code : 4.2 : [ ] The nomination committee should recommend suitable candidates to the board. [ ] 4.6 : [ ] accompanied by a recommendation from the board, based on the advice of the nomination committee 5.3 : see hereafter 6.3 : The nomination committee should assist the board on the nomination and succession planning of the CEO and the other members of the executive management [ ] Appendix D : nomination committee Provision 4.6 : [ ] The proposal (for the appointment of a director by the general shareholders meeting) should specify the proposed term of the mandate, which should not exceed four years. [ ] The specialized nature of its economical activities, and also the structure and the size of the company, make a reduction of the term of director s mandate under the legal term of six years inappropriate. Provision 2.1 : The board s composition [ ] should be determined on the basis of gender diversity [ ] At present, the board of directors is only composed by men. The company will take account of the gender diversity imposed by the law. For the same reason, the company has not created a nomination committee (see provision 5.3 hereafter).

SABCA 35_ Provision 4.12 : The non-executive directors should regularly (preferably once a year) assess their interaction with the executive management. In this respect, non-executive directors should meet at least once a year in the absence of the CEO and the other executive directors. Considering the composition of the board where all members are non-executive directors excepted the CEO, the company has decided not to comply with this provision. Provision 5.3 : The board should set up a nomination committee following the provisions set out in Appendix D. The reasons why the board has not created a nomination committee until now are given in the justification of provision 4.1 here-above. 1. Composition of the board of directors of SABCA 1.1. There are currently (from 20th January 2011) nine members of 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. Excepted for the CEO, all members of the board are non-executive directors ; two of them are independent 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. Provision 8.8 : The level of shareholding for the submission of proposals by a shareholder to the general shareholders meeting should not exceed 5% of the share capital. In consideration of the specific structure of the shareholding already mentioned before, comprising two leading shareholders and a free float of 3%, and also taking into account the size of the company, this deviation from the threshold of 20% foreseen in Article 532 of Companies Code cannot be implemented practically. 2. Functioning of the board of directors 2.1. Frequency of meetings The board of directors met on four occasions in 2010. The meetings are planned in the company s interest. This frequency enables the board to examine amongst others the halfyearly accounts (in August and in September) and the annual accounts (in March), as well as any investments (in December). In 2010 the board was composed of seven directors. Meeting 30th March: 7 directors in attendance Meeting 30th August: 5 directors in attendance Meeting 8th September : 7 directors in attendance Meeting 16th December: 6 directors in attendance

_36 SABCA Annual report 2010 2.2. Competence In absence of any statutory restrictions, the board holds all of the powers assigned by law. The board determines the strategic and shortterm 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 the 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 executive committee (ComEx) 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, excepted the chairman and the CEO, whose mandates are 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 105,603.12 EUR for the 2010 financial year. For the same period, the auditor s fees were 80,523.00 EUR. 3. Committees created by the board of directors 3.1. Permanent committee The permanent committee has been in existence since 1970. The members are : the chairman, Mr Remo Pellichero, the CEO, Mr Daniel Blondeel, and two representatives chosen by the main shareholders. For 2010, 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 CFO, Mr Raymond De Dobbeleer, and any other adviser that the permanent committee deems appropriate. Mr Philippe Delaunois is also member of the committee since 20th January 2011. 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 The audit committee instituted pursuant to the law of 17th December 2008 is chaired by Mr Jacques de Smet, independent director conversant with matters relating to accounting and auditing. The non-executive directors, Mr Loïk Segalen and Mr Sjoerd Vollebregt are the other members of the committee. From time to time the committee is assisted by the external auditor, the CEO, the CFO, the internal auditor also in charge of risks management, and any other adviser as deems adequate. An internal procedure for the audit committee has been established. The audit committee reports to the board on the exercise of its duties making recommendations as regards steps to be taken. In 2010 the audit committee met three times, in particular to examine the company s half-yearly and annual statutory and consolidated accounts, and to monitor the effectiveness of the internal control and risk management systems. On recommendation of the audit committee to the board of directors, the responsibility of internal audit and risk management were merged into one function reporting directly to the CEO. In 2010, a full-time staff member has been appointed to ensure this double responsibility. This person s first assignments will be to establish an audit charter and an audit programme to ensure the effectiveness of the systems of internal control and risk detection and management, in order to improve the performance level of the company. 3.3. Remuneration committee According to the law of 6th April 2010, the board of directors has established a remuneration committee, composed of Mr Remo Pellichero, chairman of the board, Mr Jacques de Smet, independent director, and Mr Philippe Delaunois, independent director. This remuneration committee is chaired by Mr Remo Pellichero. The CEO, Mr Daniel Blondeel, takes part in an advisory capacity. The remuneration committee has met for the first time on 9th February 2011 and will report to the board of directors. It will disclose a first remuneration report in the corporate governance statement of the company related to the 2011 financial year. 4. Day-to-day management The board chooses the person responsible for day-to-day management from among its members or not (articles 11 and 20 of the articles of association). Day-to-day management of the company is executed by the CEO, Mr Daniel Blondeel. An executive committee (ComEx) and an operational committee (COp) chaired by the CEO, Mr Daniel Blondeel, meet once a month and contribute towards the day-to-day management of the company.

SABCA 37_ Operational Committee D. Blondeel* Chief Executive Officer M. Humblet* Marketing & Sales Direction P. De Graef* Brussels Site Direction J.M. Lefèvre* Charleroi Site Direction R. De Dobbeleer* Financial Direction A. Ghysens Human Resources Department R. Soyez Information Systems Department J.M. Sonkes Quality Department M. Dubois Supply Chain Department * Member of Executive Committee (ComEx) The members of the ComEx for 2010 were : Messrs Daniel Blondeel, chief executive officer, Raymond De Dobbeleer, chief financial officer, Marc Humblet, marketing and sales manager, Jean-Marie Lefèvre, manager of the Charleroi site, Pierre De Graef, manager of the Brussels site. The members of the COp for 2010 were : the members of the ComEx, plus Messrs Jean- Michel Sonkes, head of quality department, André Ghysens, head of human resources department, Roland Soyez, head of information systems department and Marc Dubois, head of supply chain department. Mr Peter Reynaert is the general 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 53.28% of the company s capital. The Dutch company, Stork B.V., holds 43.57% of the capital notably through its subsidiary, Fokker Aerostructures B.V. The balance of 3.15% is quoted on the NYSE Euronext 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 2010, 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. Internal control and risk management system Already sensitised to the risk management process, SABCA has formalised an internal control system based on the COSO model and including risk management. In doing so, it has defined its control environment, identifying and classifying risks in order to highlight the ones with the greatest consequences, and implementing the controls. Communication and information together with monitoring and surveillance complement this approach.

_38 SABCA Annual report 2010 The main objective is to increase process efficiency by reducing the level of risk, thereby improving overall performance and creating added value. As in any control system, there can be no absolute guarantee of completely eliminating risk. However there can be a reasonable expectation about how it can be controlled in such operations. 8.1 Control environment The management of the various units is handled through the Management Processes explaining the principles and procedures with their input and output and how they interact together. In 2010, the Environmental Management Process was added. The Financial Process, supplemented by the Disclosure Statement, includes the standards used and the principles and rules to be applied in terms of accounting and finance. In addition, a good governance code and a statement on quality policy have been issued. Staff have been made particularly aware of these. An audit committee has been set up and is operating on the basis of its own internal rules of procedure. The role and the composition of this committee are specified in the good governance code and included in the management report. Committee meetings take place several times a year. An internal audit charter has also been published. Skill management is the responsibility of the Human Resources department. It is also responsible for recruitment and training policy as well as for job descriptions. 8.2 Risk management process SABCA formalised the process of analysing and assessing its business risks in 2009. With the help of the process pilots, the phase of identifying and re-assessing risks led to their updating. The second phase consisted of confirming the probability of them occurring and the impact they would have in seven fields. These were then classified according to their risk exposure. This approach resulted in a mapping, allowing them to be regrouped and prioritised. The annual audit plan foresees tasks being undertaken in 2011 on those risks deemed to have the greatest consequences. The financial side is the subject of particular attention, being focused on in the chapter on financial risk. 8.3 Control activities Generally speaking, control activities consist of the measures taken by the company to make sure that the main risks are kept under adequate control. To accomplish this, the position of an internal auditor has been created, covering all processes within the SABCA Group. His main role will be to manage all issues, taking into account the fact that SABCA already has such activities in the areas of finance and quality. The annual audit plan is submitted to the audit committee for approval. The control (i.e. audit) activities will be aimed at making sure that standards, laws and procedures are applied. The focus will be mainly on the operational side. They will be based, among others, on the performance indicators already used in the processes. The activities for the internal control of financial processes are within the scope of the finance department, with process reviews supplementing this approach. Quality audits are carried out by internal quality auditors using the appropriate existing procedures. They are also responsible for monitoring the actions and recommendations coming from internal or external audits. The external company auditor and his team are responsible for external audits, along with a number of both Belgian and foreign audit organisations. 8.4 Information and communication Each audit gives rise to a specific report. This method will be extended to all processes, with a final report being submitted to the audit committee. The results of quality audits carried out by external agencies are channelled through the quality department which also makes sure that points are followed up. Performance indicators are presented on a monthly basis to the various committees responsible for managing the company. Back-ups of computer data are done daily, ensuring the requisite availability of both financial and operational data. Access to restricted IT transactions is documented and controlled. 8.5 Management This is covered by senior management which reports on this subject to the audit committee. For the financial side, the company auditor certifies compliance, and financial statements are presented for approval to the board of directors.

SABCA 39_ 8.6 Principal risks and uncertainties The principal risks and uncertainties faced by the Group are outlined below : Cash and liquidity risks The 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 risk The Group performs its cash and foreign exchange transactions with recognized financial institutions. Operational risks Following the analysis done by the internal auditor responsible for risk management, several risks were identified and listed according to their acceptability. Other risks The risk of evolution of the raw material prices and labor costs; Difficulty to find competent staff members; non-obtaining or loss of license (political risk); the level of workload on the Charleroi site highly dependent on export contracts. 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 Insurer (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 risks Exchange risk The Group is exposed to an exchange risk on sales denominated in US Dollar, 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.

_40 SABCA Annual report 2010

SABCA 41_ 6 Financial aspects

_42 SABCA Annual report 2010 Key figures 1. SABCA Group Consolidated income statement in accordance with IFRS (in millions of EUR) 2006 2007 2008 2009 2010 Revenues 137.73 136.52 150.27 157.84 160.54 Turnover 127.56 126.08 133.24 143.07 134.98 Changes in work-in-progress -0.94 1.75 11.55-0.87 12.50 Own construction capitalised 4.21 5.94 1.74 10.61 7.81 Other operating income 6.90 2.75 3.74 5.03 5.25 Operating expense -129.87-123.70-139.79-142.12-140.33 Result from continuing operations 7.86 12.82 10.48 15.72 20.21 Finance costs -2.74-2.31-3.15-3.90-8.18 Finance income 2.88 3.92 6.89 6.85 10.29 Result from continuing operations post finance result 8.00 14.43 14.22 18.67 22.32 Income tax expense -1.43-4.51-4.21-6.12-5.95 Net result for the period 6.57 9.92 10.01 12.55 16.37 Attributable to owners of parent 6.57 9.92 10.01 12.55 16.37 Minority interests 0 0 0 0 0 Total 6.57 9.92 10.01 12.55 16.37 Earnings per share (in EUR) (total number of shares: 2,400,000) basic 2.74 4.13 4.17 5.23 6.82 diluted 2.74 4.13 4.17 5.23 6.82 Headcount at 31st December 977 990 1.017 979 987 2. SABCA Unconsolidated key results Statutory accounts (in accordance with Belgian accounting principles (in millions of EUR) 2006 2007 2008 2009 2010 Turnover 116.95 117.62 126.77 136.69 129.34 Net equity 40.56 43.98 49.23 52.34 56.19 Investments 9.16 8.61 8.66 14.37 20.34 Results - operational 5.37 8.35 5.55 6.21 8.89 - financial 0.57 2.29 4.00 3.22 2.33 - current 5.94 10.64 9.55 9.43 11.22 - extraordinary -2.27-1.97 0.09-0.60-1.81 - before taxes 3.67 8.67 9.64 8.83 9.41 - income taxes 0.02-2.55-3.15-3.31-3.23 - after taxes 3.69 6.12 6.49 5.52 6.18 Total dividends 1.25 2.02 1.06 1.82 2.11 Current profit per share (in EUR) 2.47 4.43 3.98 3.93 4.68 Net profit per share (in EUR) 1.54 2.55 2.70 2.30 2.58 Net dividend per share (in EUR) 0.39 0.63 0.33 0.57 0.66

SABCA 43_ 1. SABCA GROUP (in accordance with IFRS) The SABCA Group realized a turnover of EUR 135 million; it was EUR 143 million in 2009. Geographical distribution of turnover The result from continuing operations rose by EUR 4.48 million to EUR 20.21 million reflecting the increase of the operating revenues by EUR 2.71 million and the decrease of the operating expenses by EUR 1.78 million. The effect of the US Dollar volatility on the Turnover per field of activities (in %) mark-to-market valuation and the decline in interest rates explain the EUR 0.83 million reduction in the finance result compared to the previous financial year which totalled to EUR 2.12 million. This brought the result from continuing opera- tions past finance result to EUR 22.32 million, up by EUR 3.66 million. In 2010 the Group recorded a net profit of EUR 16.37 million representing an increase of EUR 3.83 million compared with 2009 after current and deferred taxes. 2. SABCA Statutory accounts (in accordance with Belgian accounting principles) Turnover amounted to EUR 129 million, down by 5% compared to 2009. The operating result increased to EUR 8.89 million in 2010; it was EUR 6.21 last year. The recovery of R&D expenditures and our ongoing efforts to control our costs are the positive effects which led to this increased result. Investments (MEUR) Orders (MEUR) The financial result totalled EUR 2.33 million down by EUR 0.88 million compared to 2009 as a result of the valuation of hedging instruments and of the decline in interest rates on term deposits. The profit for the financial year 2010 added up to EUR 6.18 million compared with EUR 5.52 in 2009.

_44 SABCA Annual report 2010 Proposals for resolutions to be presented to the general meeting of shareholders STATUTORY APPOINTMENTS The board of directors proposes to the general meeting to proceed with the final appointment of the SA C.G.O., RPM Charleroi, VAT BE 0427 607 573, with registered office in 6280 Gerpinnes, rue de Bertransart 61, represented by its CEO - acting on his own - Mr Philippe Delaunois, to the office of director for a period of five years expiring immediately after the ordinary general meeting of 2016. According to to the independence criteria defined by article 526 ter of the Code of Associations and by the Belgian Code of Corporate Governance, the SA C.G.O. represented by Mr Philippe Delaunois has the capacity of independent director. The mandate of the independent director will be remunerated with an amount of 17,600.00 EUR per year. The board of directors proposes to the general meeting to proceed with the final appointment of the SA GEFOR, RPM Brussels, VAT BE 0429 228 265, with registered office in 1180 Uccle, avenue des Aubépines 96, represented by its CEO - acting on his own - Mr Jacques de Smet, to the office of director for a period of three years expiring immediately after the ordinary general meeting of 2014. According to the independence criteria defined by article 526 ter of the Code of Associations and by the Belgian Code of Corporate Governance, the SA GEFOR represented by Mr Jacques de Smet has the capacity of independent director. The mandate of the independent director will be remunerated with an amount of 17,600.00 EUR per year. The term of office as auditor of Mr Xavier Doyen will end at the conclusion of the general meeting of 26th May 2011. The board of directors proposes to the general meeting to appoint to the office of auditor for a period of three years expiring immediately after the ordinary general meeting of 2014, Mazars Bedrijfsrevisoren Réviseurs d Entreprises SCRL, with registered office in 1200 Brussels, avenue Marcel Thiry 77 box 4, represented by Mr Xavier Doyen, company auditor. The yearly fee amounts 80,000.00 EUR, VAT excluded. APPROPRIATION OF PROFITS The appropriation account included in the annual accounts presented to the meeting of shareholders is as follows: 1. Profit for the year for appropriation 2. Profit carried forward from previous year 6,144,613.41 EUR 25,140,996.65 EUR 3. Profit for appropriation 31,285,610.06 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 29,173,610.06 EUR 2. Return on capital: 2,112,000.00 EUR i.e. for each of the 2,400,000 shares: a gross dividend of 0.88 EUR a withholding tax of 0.22 EUR a net dividend of 0.66 EUR Subject to the allocation being approved by the meeting of shareholders, a net dividend per share of 0.66 EUR will be paid from 2d June 2011 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 FINANCIAL SCHEDULE General meeting of shareholders: 26 May 2011 Ex-date: 30 May 2011 Record date: 1 June 2011 Payment date: 2 June 2011

SABCA Annual accounts 2010

SABCA Annual accounts 2010 2010 Report of the board of directors Ordinary General Meeting of 26 May 2011 Annual accounts Consolidated accounts 2 Statutory auditor s report on the consolidated financial statements 24 Non consolidated accounts 26 Statutory auditor s report on the annual accounts 49

SABCA 1_ 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, 2011, have been prepared in accordance with the applicable accounting standards and give a fair view of the assets ans 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 view 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 principle risks and uncertainties that they face. Brussels, April 15, 2011. R. Pellichero Chairman

_2 SABCA Annual accounts 2010 Consolidated accounts Consolidated statement of financial position Following the standards IFRS (International Financial Reporting Standards) in thousand EUR 2010 2009 Assets Non-current assets 114,708 95,822 Intangible assets 44,593 43,747 Property, plant and equipment 69,635 51,812 Affiliated enterprises 114 111 Financial assets and other non-current assets 366 152 Current assets 202,225 204,367 Inventories 32,621 29,454 Work-in-progress 42,816 32,192 Trade and other receivables 31,766 41,940 Hedging instruments 0 1,528 Cash and cash equivalents 93,391 96,467 Other current assets 1,631 2,786 Total assets 316,933 300,189 Equity and liabilities Total equity 90,586 77,178 Total equity attributable to owners of the parent 90,585 77,177 Capital 12,400 12,400 Reserves and results carried forward 77,982 63,432 Revaluation reserves on property, plant and equipment 525 525 Hedging instruments on cash flow -322 820 Minority interests 1 1 Non-current liabilities 142,017 135,907 Long-term borrowings 112,953 108,654 Hedging instruments 488 0 Non-current provisions 17,301 18,111 Deferred taxation 11,275 9,142 Current liabilities 84,330 87,104 Trade and other payables 43,102 44,514 Tax and social liabilities 11,018 11,498 Other current liabilities 16,452 16,582 Short-term borrowings 13 166 Current provisions 13,342 14,344 Hedging instruments 403 0 Total equity and liabilities 316,933 300,189

SABCA 3_ Consolidated income statement in thousand EUR 2010 2009 Revenues 160,543 157,837 Turnover 134,978 143,070 Other operating income 5,251 5,032 Increase (+), decrease (-) in work in progress 12,502-878 Own construction capitalised 7,812 10,613 Operating expenses (-) -140,337-142,115 Raw materials and consumables used 28,736 31,811 Services and other goods 37,614 38,997 Wage and salaries, social security costs and pensions 57,515 57,965 Depreciation and amortisation of which write down of intangible 14,203 15,688 and tangible assets Depreciation in amounts written off stocks, contracts in progress -718-169 and trade debtors Provisions for liabilities and charges -447-3,962 Other operating income and expenses 3,434 1,785 Result from continuing operations (+) 20,206 15,722 Finance costs (-) -8,182-3,908 Debt charges 469 509 Other finance costs 7,713 3,399 Finance income 10,299 6,853 Income from current assets 1,462 1,695 Other finance income 8,837 5,158 Result from continuing operations post finance result (+) 22,323 18,667 Income tax expense -5,949-6,122 Income taxes -3,229-3,497 Deferred taxes -2,720-2,625 Net result for the period (+) 16,374 12,545 Attributable to owners of parent 16,374 12,545 Share of the minority interests PM PM Result per share (number of shares : 2,400,000) in EUR in EUR Basic profit per share in euros 6.82 5.23 Diluted profit per share in euros 6.82 5.23 Consolidated statement of comprehensive income in thousand EUR 2010 2009 Net result for the period 16,374 12,545 Other elements of the comprehensive income Profit or loss on hedging instruments of cash flow -1,730 1,242 Income taxes on the result 588-422 Total of the other elements of the comprehensive income -1,142 820 Total comprehensive income for the period after taxes 15,232 13,365 Attributable to owners of parent 15,232 13,365 Minority interests 0 0

_4 SABCA Annual accounts 2010 Comments on the consolidated statement of financial position in thousand EUR 2010 2009 Assets Non-current assets 114,708 95,822 Intangible assets This item includes the capitalization of the expenses of development relating to the programs of civil aviation for which Group SABCA is a partner. note 4 44,593 43,747 Property, plant and equipment Increase in property values and acquisition of new facilities. notes 3 et 7 69,635 51,812 Affiliated enterprises and financial assets and other non-current assets note 5 480 263 Current assets 202,225 204,367 Inventories note 8 32,621 29,454 Growth due to material being received. Work-in-progress Evolution in civil aviation and space applications. note 8 42,816 32,192 Trade and other receivables Significant reduction in trade receivables. note 10 31,766 41,940 Hedging instruments 0 1,528 Cash and cash equivalents see cash flow statement and note 9 93,391 96,467 Other current assests 1,631 2,786 N.B.: The important differences between correspondig headings of compared periods are mentioned in italic.

SABCA 5_ in thousand EUR 2010 2009 Equity and liabilities Total equity 90,586 77,178 Total equity attributanble to owners of the parent see statement 90,585 77,177 of changes in equity Result of the period 16,374 12,545 Dividends relating to previous financial year -1,824-1,056 Total of the other elements of the comprehensive income -1,142 820 Movement during the period 13,408 12,309 Minority interests 1 1 Non-current liabilities 142,017 135,907 Long-term borrowings Increasing property of others and reduction in customer advance payments. notes 7 et 11 112,953 108,654 Hedging instruments 488 0 Non-current provisions Decrease of the provision for pensions and similar obligations. notes 6 et 13 17,301 18,111 Deferred taxation note 12 11,275 9,142 Current liabilities 84,330 87,104 Trade and other payables Decrease of debts to suppliers. note 7 43,102 44,514 Short-term borrowings note 7 13 166 Current provisions Lowering of the provision for future losses. note 6 13,342 14,344 Other current liabilities note 7 27,470 28,080 Hedging instruments 403 0 N.B.: The important differences between correspondig headings of compared periods are mentioned in italic.

_6 SABCA Annual accounts 2010 Consolidated Statement of changes in equity in thousand EUR Capital Revaluation reserves Reserves and Result carried forward Total attributable Heging to the owners instruments of the mother on cash flow company Minority interests 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 Total equity 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 At 01/01/2010 12,400 525 63,432 820 77,177 1 77,178 Result for the period 16,374 16,374 0 16,374 Other elements of the comprehensive income -1,142-1,142-1,142 Total of the other elements of the comprehensive income 16,374-1,142 15,232 0 15,232 Dividends -1,824-1,824 0-1,824 Balance at 31/12/2010 12,400 525 77,982-322 90,585 1 90,586 Consolidated statement of cash flows in thousand EUR 2010 2009 Net cash flow generated by operating activities 21,852 55,024 Net income 16,374 12,545 Result on hedging instruments 689-285 Depreciation and amortisation and fair value adjustments on assets 15,852 19,055 Change in working capital -11,972 24,756 Change in minority interests PM PM Change in provisions, deferred tax and reserves 909-1,047 Net cash flow used in investing activities -23,275-19,300 Purchase of intangible, tangible and financial non-current assets -23,175-20,468 Disposals of intangible, tangible and financial non-current assets 8 2,633 Regularization of intangible, tangible and financial non-current assets 0-1,375 Increase and decrease of receivables -108-90 Net cash flow used in financing activities -1,654-2,059 Change in amounts receivable after more than one year 26 Increase 3,896 Reimbursements -3,573 Change in short-term financial liabilities Increase 0 19 Reimbursements -153-427 Change in long-term financial liabilities Reimbursements 0-621 Dividends paid to shareholders -1,824-1,056 Net increase (decrease) in net cash and cash equivalents -3,076 33,665 Net cash and cash equivalents, at the beginning of the period * 96,467 62,802 Net cash and cash equivalents, at the end of the period * 93,391 96,467 * (*) consistent with the consolidated statement of financial position.

SABCA 7_ Notes (Except contrary indication, all the data are in thousands of euros) 1. INFORMATION ABOUT CONSOLIDATION Subsidiary: SABCA Limburg Dellestraat, 32, 3560 - LUMMEN Company number : BE 0438.215.146 % of ownership interest: 99.99 Capital : 12,394,676.24 EUR FLABEL et SABCA (C.D.R.) have been left out of the scope of consolidation because not very significant. 2. EMPLOYMENT 2010 2009 Total in units FTE * Total in units FTE * Average number of employees 982.9 937.3 999.5 961.4 Total employment at the end of the period 987.0 943.6 979.0 940.2 * FTE = full time equivalent 3. PROPERTY, PLANT AND EQUIPMENT NOTE Land and buildings Plant, machinery and equipment Furniture and vehicles Leasehold improvements and similar rights 3 Assets under construction and advance payments Beginning balance Gross amount 1 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 Beginning balance 20,677 21,462 1,781 3,121 4,771 51,812 Total Movements during the period Acquisitions 2,065 6,861 554 2,016 11,497 Disposals -307-664 -77-1,048 Transfers from one heading to another 577 3,045-3,622 0 Depreciation expenses -1,269-3,341-830 -272-71 -5,782 Depreciation on disposals 307 664 69 234 1,274 Depreciation transfers -5-551 556 0 Adjustments Third party assets 11,460 11,460 Fair value adjustments -16 390 49 423 Ending balance Gross amount 2 57,341 106,665 15,840 3,983 3,966 187,795 Depreciation -49,786-92,109-14,343-1,404-82 -157,725 Adjustments Third party assets 22,748 22,748 Fair value adjustments 14,474 2,023 319 16,816 Ending balance 22,029 39,327 1,497 2,898 3,884 69,635 1. Fully amortized 2009 29,544 74,240 10,983 62 2. Fully amortized 2010 37,300 90,612 12,028 62 3. of which, at closing, 2,950 in building and 1,033 in plant, machinery and equipment

_8 SABCA Annual accounts 2010 4. INTANGIBLE ASSETS NOTE Development expenses Beginning balance Gross amount 126,788 Amortisation -113,577 Adjustments Fair value adjustments 30,536 Beginning balance 43,747 Movements during the period Acquisitions 9,537 Disposals -14,291 Amortisation expenses -7,099 Amortisation write back 14,291 Fair value adjustments -1,591 Ending balance Gross amount 122,034 Depreciation -106,385 Adjustments Fair value adjustments 28,944 Ending balance 44,593 Research costs non capitalized in the income statement as an incurred expense for the exercise and represent for this exercise 2,357 and for previous years 32,584. 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 2010 2009 Affiliated enterprises SABCA (C.D.R.) 11 11 FLABEL Corporation Shares held by SABCA 83 83 Shares held by SABCA Limburg 20 17 114 111 Other participations Arianespace Participation 106 Acquisitions 2,142 Depreciation and amounts written down -2,036 Others 58 58 Amounts receivable and cash guarantees 202 94 366 152 Amount written off due to the reduction of the capital of Arianespace by clearance of losses.

SABCA 9_ 6. PROVISIONS NOTE Provisions for pension & equivalent Provision for implicit obligation Onerous contracts provisions Other provisions Beginning 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, beginning balance 18,111 9,300 4,719 325 32,455 Total Increase 320 350 646 663 1,979 Decrease -1,230-3,373-641 -5,244 Fair value adjustments and reprocessing 99 1,421-67 1,453 Ending balance 9,498 10,750 10,530 2,202 32,980 Fair value adjustments and reprocessing 7,802-1,100-7,117-1,922-2,337 Provisions, ending balance 17,300 1 9,650 3,413 280 30,643 1. of which defined benefit plant obligations (note 13) : 8,043 7. BORROWINGS AND PAYABLES NOTE up to 1 year 1 to 5 years 2010 2009 over 5 years Total up to 1 year 1 to 5 years over 5 years Total Interest-bearing borrowings according to their maturity Leases 335 1,058 1,190 2,583 321 1,184 1,418 2,923 Bank overdrafts 13 13 166 166 Other information Finance leases : Minimum lease payments payable, present value Minimum lease payments payable, gross Minimum lease payments payable, interest 335 1,058 1,190 2,583 321 1,184 1,418 2,923 432 1,319 1,305 3,056 433 1,490 1,583 3,506 97 261 115 473 111 306 166 583 Trade and other payables according to their maturity Trade payables 11,270 11,270 18,345 18,345 Advances received 31,832 47,842 79,674 26,169 52,849 79,018 Tax and social liabilities 11,018 11,018 11,498 11,498 Other liabilities and borrowings 16,117 2,201 60,662 78,980 16,261 1,574 51,629 69,464 Total long term borrowings included in the consolidated statement of financial position 112,953 108,654

_10 SABCA Annual accounts 2010 8. INVENTORIES NOTE Stocks merchandise and raw materials Work in progress Total stocks and W.I.P. Beginning balance Gross value 29,454 62,182 91,636 Fair value adjustments -29,990-29,990 Net value at the beginning 29,454 32,192 61,646 Movements during the period Change 3,167-11,077-7,910 Depreciation - increase -1,432-1,432 Depreciation - decrease 2,150 2,150 Fair value adjustments 21,701 21,701 Ending balance Gross value 32,621 51,105 83,726 Fair value adjustments -8,289-8,289 Net value at the ending 32,621 42,816 75,437 9. CASH AND CASH EQUIVALENTS NOTE 2010 2009 Bank short-term deposits 91,172 94,760 Bank current accounts 2,198 1,697 Cash in hand and other 21 10 93,391 96,467 10. AMOUNTS RECEIVABLE WITHIN ONE YEAR note 2010 2009 Trade receivables 29,706 39,665 Other receivables 2,060 2,275 31,766 41,940 11. GOVERNMENT GRANTS NOTE 2010 2009 Investment grants 752 1,006 Carrying amount of capital grants recognised 4,351 4,149 Amount of income grants netted against reported expenses -3,599-3,143 Deferred tax assets and liabilities on dito 18 19 Advances to be reimbursed conditionally 40,398 41,417 Relating to research activities 970 3,193 Relating to development activities 39,428 38,224 Split out : 40,398 41,417 Reimbursement within one year 1,423 1,076 Reimbursement after more than one year 38,975 40,341 Federal Public Services 35,763 33,462 Brussels Capital Region 4,635 7,955 The reimbursement of the advances to be reimbursed conditionally is linked to the success of the product.

SABCA 11_ 12. RECOGNIZED DEFERRED TAX ASSESTS 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. Profit before income tax 22,323 Theoritical income tax at the rate of 33.99% 7,588 Base Tax Sources of disparities Impact of changes on non-taxed expenses and income 1,793 Notional interests -1,750 Investments deduction -1,000 Tax base of the Group 21,366 Income tax calculated at 33.99% 7,262 Deferred tax at the social level and adjustments -1,668 Previous years tax 355 Total income tax expense for the year 5,949 Note on deferred taxes recorded in the consolidated statement of financial position Sources of deferred tax Assets Consolidated statement of financial position Consolidated income statement & comprehensive income 2010 2009 2010 2009 Intangible assets 28,944 36,803-7,859-2,044 Tangible assets 18,319 16,376 1,944-1,303 Work in progress -8,289-29,990 21,701 9,052 Total Assets 38,974 23,189 Liabilities Reserves 937-937 2,079 Provision for liabilities and charges -5,484 2,111-7,595-27 Short-term debts -18-687 669 37 Total Liabilities -5,502 2,360 Total of sources of deferred tax 33,473 25,549 7,923 7,794 Deferred income tax Deferred tax on the fair value adjustments calculated at 33,99% 11,377 8,685 2,693 2,648 Adjustments for temporary differences and regularisations -52 28-23 Deferred tax on hedging instruments -166 422-588 422 Deferred tax on government grants and on realized surplus 63 88 Total deferred tax 11,274 9,143 2,133 3,047 Defered 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 who have generated the deferred tax liabilities, are reversed.

_12 SABCA Annual accounts 2010 13. DEFINED BENEFIT PLANS 2010 2009 Components of defined benefit plan assets and liabilities Present value of wholly or partially funded obligations 19,709 14,404 Fair value of plan assets (-) -9,250-7,516 Present value of wholly unfunded obligations 10,459 6,888 Unrecognised actuarial gains (losses) -2,417 1,225 Defined benefit plan obligation (asset), total 8,043 8,113 Expense recognised in income statement for defined benefit plan 1,056 1,084 Current service cost 813 783 Interest cost 744 773 Expected return on plan assets -310-280 Contributions by personnel -191-169 Recognised actuarial gains (losses) 0-23 Movements in defined benefit plan obligation (asset) Defined benefit plan obligation, beginning balance 8,113 7,973 Contributions paid -1,126-944 Expense recognised 1,056 1,084 Defined benefit plan obligation, ending balance 8,043 8,113 Principal actuarial assumptions Discount rate used 4.60 5.00 Expected return on plan assets 4.00 4.00 Expected rates of salary increase 4.10 / 3.40 4.40 / 3.70 Future defined benefit increase 2.00 2.00 Expected rate of return on reimbursement rights recognised as an asset N/A N/A Expected rate of increase of medical costs N/A N/A Note: All provisions for pensions and similar obligations amount to 17,300 in accordance with Collective Labor Agreements. 14. INFORMATION CONCERNING RELATED-PARTIES 2010 2009 Key management compensation Short-term employee benefits 2,753 2,615 Post-employment benefits 963 763 Other termination obligations 0 274 Considered headcount 25 25 Related-party transactions The Group s related parties are : Dassault Aviation Stork Aerospace FLABEL Corporation SABCA (C.D.R.) 2010 2009 Related-party sales 24,398 18,474 Related-party purchases 131 1,340 Related-party receivables 8,114 6,804 Related-party payables 9 10 Terms and conditions 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 2010, 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.

SABCA 13_ 15. FINANCIAL COMMITMENTS 2010 2009 Commitments given Guarantees and deposits 202 94 Registration of mortgages 100 100 Mortgage mandates 2,275 2,275 Pledged accounts 3,121 3,121 FLABEL Corporation 2,000 2,000 Customs 1,121 1,121 Commitments received Export insurance guarantees Ducroire 26,919 26,919 Debts and receivables secured by bank guarantees 3,866 1,371 16. APPROPRIATION OF PROFITS in EUR 2010 2009 Return of capital 2,112,000.00 1,824,000.00 or for each of the 2,400,000 shares a gross dividend 0.88 0.76 a withholding tax of 25% 0.22 0.19 a net dividend 0.66 0.57 Total capital 12,400,000 12,400,000 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 RISKS The 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 8,348 in income and 6,737 in charges. A sensitivity analysis was performed in order to determine the impact of a 10 centime increase or decrease in the US Dollar / EURO exchange rate: 2010 2009 Net value US Dollars in portfolio 12,903 27,913 Closing US Dollar exchange rate 1.3362 1.4406 Change in closing US Dollar exchange rate 1.4362 1.2362 1.5406 1.3406 Change in net value US Dollars in portfolio -672 781-1,258 1,445 The portfolio of derivative financial instruments is as follows: 2010 2009 US Dollars Euros US Dollars Euros Foreign exchange options 27,000 20,149 2,000 1,610 Forwards 26,000 19,330 33,000 24,602 Total 53,000 39,479 35,000 26,212 The market value of the financial instruments rises to -634 for the exchange options and to -257 for forward sales. The change of fair value on the hedging instruments of cash flows of the year is booked on base of exchange rate dated December 31 and on «mark-to-market» calculated by financial institutions, managers of financial instruments. 2010 2009 Impact on financial income -688 286

_14 SABCA Annual accounts 2010 18. MANAGEMENT OF RISKS AND UNCERTAINTIES The principal risks and uncertainties faced by the group are outlined below : Cash and liquidity risks The 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 risk The 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 risk Exchange 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. Operational risks Following the analysis done by the internal auditor responsible for risk management, several risks were identified and listed according to their acceptability. Other risks The risk of evolution of the raw material prices and labor costs; Difficulty to find competent staff members; Non-obtaining or loss of license (political risk) The level of workload on the Charleroi site highly dependent on export contracts 19. EVENTS AFTER THE BALANCE SHEET DATE No event has taken place after December 31, 2010 that may have a significant impact on the accounts. 20. IDENTITY OF THE CONSOLIDATING MOTHER COMPANY DASSAULT BELGIQUE AVIATION Rue de Strasbourg 13 1130 Brussels - Belgium Company number 0406.122.367 Percentage of control 53.28%

SABCA 15_ 21. AUDITOR S FEES 2010 2009 Audit services Auditor's fees SABCA 70 70 Auditor's fees SABCA Limburg 10 11 Non-audit services Fees for non-audit services SABCA 10 24 Total 90 105 22. SPLIT OF TURNOVER 2010 2009 Delivery of goods 91,585 62,731 Services 43,393 80,339 Interests 0 0 Royalties 0 0 Total 134,978 143,070 23. PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS We have proceded to the reclassification of positions in the financial statements to comply with IAS12. This reclassification has no impact on the result. It concerns the note 12 relating to the deferred taxes recorded in the consolidated statement of financial position.

_16 SABCA Annual accounts 2010 General consolidation principles Compliance 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. 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 LUMMEN BE 0438.251.146. Subsidiary excluded from the consolidation SABCA (C.D.R.) SPRL, Chaussée de Haecht, 1470 at 1130 Brussels BE 0451.147.295

SABCA 17_ 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 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.

_18 SABCA Annual accounts 2010 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.

SABCA 19_ 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.

_20 SABCA Annual accounts 2010 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 consolidated statement of financial position 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.

SABCA 21_ 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 balance sheet. 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.

_22 SABCA Annual accounts 2010 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.

SABCA 23_ 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.

_24 SABCA Annual accounts 2010 Statutory 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, 2010 Free translation 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, 2010, 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, 2010 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 316.933 and the profit for the year (group share) amounts to KEUR 16.374. 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, 2010 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.

SABCA 25_ 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 15, 2011 X. Doyen Statutory Auditor

_26 SABCA Annual accounts 2010 Non consolidated accounts Non consolidated balance sheet after appropriation. Statutory accounts according to the Belgian accounting policies in thousand EUR Codes 2010 2009 AssetS Fixed assets 20/28 40,300 31,434 Intangible assets 21 11,685 8,719 Tangible assets 22/27 22,865 17,179 Land and buildings 22 5,056 4,457 Plant, machinery and equipment 23 12,467 6,202 Furniture and vehicles 24 1,458 1,749 Assets under construction and advance payments 27 3,884 4,771 Financial assets 28 5,750 5,536 Affiliated enterprises 280/1 5,384 5,384 Participating interests 280 5,384 5,384 Other financial assets 284/8 366 152 Shares 284 164 58 Amounts receivable and cash guarantees 285/8 202 94 Current assets 29/58 192,887 220,493 Amounts receivable after more than one year 29 4,282 4,248 Trade debtors 290 4,230 4,160 Other amounts receivable 291 52 88 Stocks and contracts in progress 3 70,033 79,726 Stocks 30/36 30,921 27,466 Raw materials and consumables 30/31 8,095 7,895 Goods purchased for resale 34 20,571 18,994 Advance payments 36 2,255 577 Contracts in progress 37 39,112 52,260 Amounts receivable within one year 40/41 30,054 40,627 Trade debtors 27,419 37,556 Other amounts receivable 2,635 3,071 Investments 50/53 86,172 92,046 Other investments and deposits 51/53 86,172 92,046 Cash at bank and in hand 54/58 731 1,060 Deferred charges and accrued 490/1 1,615 2,786 Total assets 20/58 233,187 251,927

SABCA 27_ in thousand EUR Codes 2010 2009 LiabilitieS Capital and reserves 10/15 56,191 52,338 Capital 10 12,400 12,400 Issued capital 100 12,400 12,400 Reserves 13 14,089 14,050 Legal reserve 130 1,240 1,240 Reserves not available for distribution 131 595 595 Other 1311 595 595 Untaxed reserves 494 455 Reserves available for distribution 11,760 11,760 Profit carried forward 14 29,174 25,141 Investment grants 15 528 747 Provisions and deferred taxation 16 32,695 35,838 Provisions for liabilities and charges 160/5 32,656 35,793 Pensions and similar obligations 160 9,498 10,408 Major repairs and maintenance 162 1,803 1,796 Other liabilities and charges 163/5 21,355 23,589 Deferred taxation 168 39 45 Creditors 17/49 144,301 163,751 Amounts payable after more than one year 17 77,550 90,017 Advances received on contracts in progress 46,419 47,401 Other amounts payable 31,131 42,616 Amounts payable within one year 42/48 57,788 61,980 Current portion of amounts payable after more than one year 42 949 381 Financial debts 43 13 166 Credit institutions 430/8 13 166 Trade debts 44 11,386 17,910 Suppliers 440/4 11,386 17,910 Advances received on contracts in progress 46 31,804 30,235 Taxes, remuneration and social security 45 10,593 10,389 Taxes 450/3 906 2,066 Remuneration and social security 454/9 9,687 8,323 Other amounts payable 47/48 3,043 2,899 Accrued charges and deferred income 492/9 8,963 11,754 Total liabilities 10/49 233,187 251,927

_28 SABCA Annual accounts 2010 Non consolidated income statement Statutory accounts according to the Belgian accounting policies. in thousand EUR Codes 2010 2009 Operating income 70/74 135,357 134,999 Turnover (notes 5.10) 70 129,337 136,689 Increase (+); decrease (-) in stocks of finished goods, (+)/(-) 71-12,547-12,803 work and contracts in progress Own construction capitalised 72 8,187 7,476 Other operating income (notes 5.10) 74 10,380 3,637 Operating charges 60/64-126,469-128,787 Raw materials, consumables and goods for resale 60 27,094 30,264 Purchases 600/8 25,737 34,673 Increase (-); decrease (+) in stocks (+)/(-) 609 1,357-4,409 Services and other goods 61 35,848 36,506 Remuneration, social security costs and pensions (notes 5.10) 62 54,463 54,256 Depreciation of and other amounts written off formation expenses, 630 9,769 8,863 intangible and tangible fixed assets Increase (+); decrease (-) in amounts written off stocks, contracts (+)/(-) 631/4-118 -665 in progress and trade debtors (notes 5.10) Increase (+); decrease (-) in provisions for liabilities and charges (+)/(-) 635/7-1,857-1,505 (notes 5.10) Other operating charges (notes 5.10) 640/8 1,270 1,068 Operating profit (+)/(-) 9901 8,888 6,212 Financial income 75 10,163 6,644 Income from financial fixed assets 750 3 3 Income from current assets 751 1,456 1,842 Other financial income (notes 5.11) 752/9 8,704 4,799 Financial charges 65-7,828-3,429 Interest and other debt charges 650 252 256 Other financial charges (notes 5.11) 652/9 7,576 3,173 Profit on ordinary activities before taxes (+)/(-) 9902 11,223 9,427

SABCA 29_ in thousand EUR Codes 2010 2009 Extraordinary income 76 256 41 Write-back of depreciation and of amounts written off intangible 760 234 and tangible fixed assets Gain on disposal of fixed assets 763 5 35 Other extraordinary income (notes 5.11) 764/9 17 6 Extraordinary charges 66-2,072-640 Amounts written off financial fixed assets 661 2,035 596 Losses on disposal of fixed assets 663 3 Other extraordinary charges (notes 5.11) 664/8 34 44 Profit (Loss) for the period before taxes (+)/(-) 9903 9,407 8,828 Transfer from deferred taxation 780 8 9 Transfer to deferred taxation 680-2 -10 Income taxes (note 5.12) (+)/(-) 67/77-3,229-3,308 Income taxes 670/3 3,229 3,897 Adjustment to income taxes and write-back of tax provisions 77-589 Profit (Loss) for the period (+)/(-) 9904 6,184 5,519 Transfer from untaxed reserves 789 15 17 Transfer to untaxed reserves 689-54 -69 Profit (Loss) for the period available for appropriation (+)/(-) 9905 6,145 5,467 Appropriation account Profit to be appropriated (+)/(-) 9906 31,286 27,652 Profit (Loss) for the period available for appropriation (+)/(-) (9905) 6,145 5,467 Profit brought forward (+)/(-) 14P 25,141 22,185 Profit to be carried forward (+)/(-) (14) -29,174-25,141 Distribution of profit 694/6-2,112-2,511 Dividends 694 2,112 1,824 Other beneficiaries 696 687

_30 SABCA Annual accounts 2010 Notes (Except contrary indication, all the data are in thousands of euros) STATEMENT OF INTANGIBLE ASSETS (heading 21 of assets) Codes Research and development expenses Concessions, patents licences a.o. Acquisition cost At the end of the preceding period 805-P 108,180 3,024 Movements during the period Acquisitions, including produced fixed assets Sales and disposals At the end of the period 805 102,076 3,024 Depreciation and amounts written down At the end of the preceding period 99,461 3,024 Movements during the period Recorded 807 5,221 Cancelled owing to sales and disposals 810-14,291 At the end of the period 812 90,391 3,024 Net book value at the end of the period 11,685 STATEMENT OF TANGIBLE FIXED ASSETS (headings 22 to 27 of assets) Codes Land and buildings (heading 22) Plant, machinery and equipment (heading 23) Furniture and vehicles (heading 24) Assets under construction and advance payments (heading 27) Acquisition cost At the end of the preceding period 819-P 46,419 79,406 14,689 5,572 Movements during the period Acquisitions, including produced fixed assets 816 878 6,572 542 3,735 Sales and disposals 817-307 -664-77 -1,719 Transfers from one heading to another (+)/(-) 818 577 3,045-3,622 At the end of the period 819 47,567 88,359 15,154 3,966 Depreciation and amounts written down At the end of the preceding period 832-P 41,962 73,204 12,940 801 Movements during the period Recorded 827 851 2,802 825 71 Written back 828-234 Written down after sales and disposals 830-307 -664-69 Transfers from one heading to another (+)/(-) 831 5 550-556 At the end of the period 832 42,511 75,892 13,696 82 Net book value at the end of the period 5,056 12,467 1,458 3,884

SABCA 31_ STATEMENT OF FINANCIAL FIXED ASSETS (heading 28 of assets) Participating, interests and shares Codes Entreprises (heading 280) Entreprises (heading 284) Acquisition cost At the end of the preceding period 839-P 12,496 1,688 Movements during the period Acquisitions, including produced fixed assets 836 2,142 Sales and disposals 837-1 -1,619 At the end of the period 839 12,495 2,211 Depreciation and amounts written down At the end of the preceding period 852-P 7,104 1,630 Movements during the period Recorded 847 2,036 Cancelled owing to sales and disposals 850-1,619 At the end of the period 852 7,104 2,047 Uncalled amounts At the end of the preceding period 855-P 7 At the end of the period 855 7 Net book value at the end of the period 5,384 164 Amounts receivable (heading 285/8) Net book value at the end of the preceding period At the end of the preceding period 285-P 94 Movements during the period Additions 858 142 Reimbursements 859-34 Net book value at the end of the period (285) 202 INFORMATION RELATING TO THE SHARE IN THE CAPITAL List 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 SABCA Limburg N.V. Dellestraat 32 3560 LUMMEN - BELGIUM BE 0438.251.146 SABCA (C.D.R.) SPRL Chaussée de Haecht 1470 1130 Brussels - BELGIUM BE 0451.147.295 FLABEL CORPORATION S.A. Boulevard Auguste Reyers 80 1030 Brussels - BELGIUM BE 0465.127.074 Information from the most recent period Rights held by for which annual accounts are receivable the enterprise (directly) Subsidiaries Annual accounts Monetary unit Capital and reserves Net result (+) or (-) Number % % in thousands of monetary units 499,975 99.99 31.12.10 EUR 10,352 183 73 97.33 31.12.10 EUR 11 0 281 28.10 6.00 31.12.09 EUR 361 14

_32 SABCA Annual accounts 2010 INVESTMENTS: OTHER INVESTMENTS AND DEPOSITS (heading 51/53 and 490/1 of assets) Other investments Codes 2010 2009 Term deposits with credit institutions 53 86,172 92,046 falling due : less or equal to one month 8686 21,809 16,712 between one month and one year 8687 64,363 55,227 more than one year 8688 20,107 Deferred charges and accrued income Analysis of heading 490/1 of assets if the amount is significant. Goods in acceptance and litigations 927 Goods and services to provide 542 Accrued bank and loan interests 145 2010 STATEMENT OF CAPITAL AND STRUCTURE OF SHAREHOLDINGS Statement of capital Codes Amounts Number of shares Issued capital At the end of the preceding period 100P 12,400 At the end of the period (100) 12,400 Structure of the capital Different categories of shares Without mention of nominal value 2,400,000 Registered shares 8702 2,245,807 Dematerialised shares 8703 154,193 As from January 1 st, 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 53.28% of the capital (information provided of June 9, 2010). 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 S.A.B.C.A. are consolidated by global integration in the company accounts of the Group Dassault. PROVISIONS FOR OTHER LIABILITIES AND CHARGES 2010 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 programs 10,750 Provision for futures losses on orders 9,568 Provision for futures losses Art. 31 638

SABCA 33_ STATEMENT OF AMOUNTS PAYABLE, ACCRUED CHARGES AND DEFERRED INCOME Analysis by current portions of amounts initially payable after more than one year Codes not more than one year (heading 42) Amounts payable current portion between one and five years (heading 17) Advances received on contracts in progress 889 46,419 over five years (heading 17) Other amounts payable 890 949 228 30,903 Total 949 46,647 30,903 Amounts payable for taxes, remuneration and social security Taxes (heading 450/3 of the liabilities) Codes 2010 Non expired taxes payable 9073 9 Estimated taxes payable 450 898 Remuneration and social security (heading 454/9 of liabilities) Other amounts payable relating to remuneration and social security 9077 9,687 Accrued charges and deferred income 2010 Allocation of the heading 492/9 of liabilities if the amount is considerable Accrued charges 1,951 Suspense accounts : amounts not yet received on financial invoices 5,587 Suspense accounts : invoices redefined as advances not yet received 1,424 OPERATING RESULTS Operating income Net turnover (heading 70) 129,337 Breakdown by type of activity in % of the turnover Airframe, civil and military, construction and overhaul 59.0 Space products 36.0 Servosystems 4.5 Miscellaneous 0.5 100.0 Breakdown by geographical markets Domestic 16.5 Export 83.5 100.0

_34 SABCA Annual accounts 2010 OPERATING RESULTS Operating income Other operating income (heading 74) whereof: the total amount of compensatory amounts obtained from public authorities Codes 2010 2009 740 150 50 Operating costs Codes 2010 2009 Employees recorded in the personnel register Total number at the closing date 9086 923 916 Average number of employees in full-time equivalents 9087 876,4 896,6 Number of actual working hours 9088 1,328,552 1,345,825 Personnel charges (heading 62) Remuneration and direct social benefits 620 29,954 30,281 Employer's contribution for social security 621 13,523 13,537 Employer's premium for extra-statutory insurance 622 2,774 2,537 Other personnel charges 623 8,212 7,901 Provisions for pensions (included in heading 635/7) Additions (uses and write-back) (+)/(-) 635-910 -1,654 Amounts written off (heading 631/4) Stocks and contracts in progress Recorded 9110 2,720 2,429 Write back 9111 2,838 2,898 Trade debtors Write back 9113 196 Provisions for risks and charges (heading 635/7) Additions 9115 11,285 14,542 Uses and write-back 9116 13,142 16,047 Other operating charges (heading 640/8) Taxes related to operations 640 1,271 1,068 Temporary personnel and persons placed at the disposal of the enterprise Total number at the closing date 9096 43 45 Average number of employees in full-time equivalents 9097 44,6 59,9 Number of actual working hours 9098 70,814 100,935 Charges to the enterprise 617 3,661 4,766

SABCA 35_ FINANCIAL AND EXTRAORDINARY RESULTS Financial results Codes 2010 2009 Other financial income (heading 752/9) Government grants recognised in the income statement Investment grants 9125 421 327 Allocation of other financial income Exchange differences 8,276 4,177 Other financial charges Provisions of a financial nature Uses and write-backs 6561 1,783 Allocation of other financial charges Exchange differences 6,263 4,438 Extraordinary results 2010 Allocation other extraordinary income Miscellaneous 17 Allocation other extraordinary charges Penalties 29 Miscellaneous 5 INCOME TAXES Income taxes Codes 2010 Income taxes on the result of the current period 9134 2,873 Taxes and withholding taxes due or paid 9135 2,717 Excess of withholding taxes capitalised (-) 9136-444 Additional charges for estimated income taxes 9137 600 Income taxes on previous periods 9138 355 Additional charges for income taxes due or paid 9139 355 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 1,793 Investments deduction 1,000 Notional interests 1,750 Other taxes and taxes borne by third parties Codes 2010 2009 The total amount of value added tax, charged during the period To the enterprise (deductible) 9145 16,046 15.658 By the enterprise 9146 12,098 10.886 Amounts retained on behalf of third parties for: Payroll withholding taxes 9147 10,206 9.860

_36 SABCA Annual accounts 2010 RIGHTS AND COMMITMENTS NOT ACCRUED IN THE BALANCE SHEET Goods and values not disclosed in the balance sheet, held by third parties in their own name but at risk to and for the benefit of the enterprise: Raw materials in custody 653 Tooling in custody 226 Materials in custody 3,571 Amount of forward contracts 2010 Codes 2010 Currencies sold (to be delivered) 9216 19,330 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. Premiums are paid by the employee and the company according to the insurance plan. RELATIONSHIPS WITH AFFILIATED ENTERPRISES AND ENTERPRISES LINKED BY PARTICIPATING INTERESTS Codes 2010 2009 Financial relationships with (281/1) 5,384 5,384 Investments (280) 5,384 5,384 Amounts receivable 9291 5,470 5,211 After one year 9301 4,282 4,248 Within one year 9311 1,188 963 Amounts payable 9351 670 922 Within one year 9371 670 922 Financial results Other financial income 9441 10 167

SABCA 37_ 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: Codes 2010 To directors and managers 9503 106 FINANCIAL RELATIONSHIPS WITH Auditors or people they are linked to Codes 2010 Auditor s fees 9505 70 Other missions within the framework of certificate of attestation Other attestation missions 9506 10 COMMITMENTS, RIGHTS AND SUSPENSE ACCOUNTS (Art. 4, al. 2 of the R.D of October 8,1976) 2010 2009 Guarantees given by third parties on behalf of the company 5,067 4,905 Guarantees received 4,262 1,371 Goods belonging to third parties 124,524 148,714 Miscellaneous, commitments, rights and suspense accounts including 4,452 4,452 2,245,807 registered shares S.A.B.C.A. handed by third parties PM PM Temporary partnership S.A.B.C.A. - SONACA 12 13 Belgian Association for the Maritime Patrol Airplane (A.B.A.P.) 10,621 10,621 Forward contracts 19,330 23,813 168,268 193,889 THIRD PARTY GOODS (analysis) 2010 2009 Third party goods and values, held in deposit, consignment or for manufacturing Third party raw materials in the store room 5,633 5,982 Third party aeronautical parts and material, in the manufacturing or overhaul process 4,048 3,919 Third party tooling, in deposit 65,981 65,548 Equipment for repair-overhaul, in deposit 4,687 19,509 Office furniture 44,175 53,756 124,524 148,714

_38 SABCA Annual accounts 2010 Social report STATEMENT OF THE PERSONS EMPLOYED 2010 2009 Employees recorded in the staff register during the period and the previous period Codes Full-time Part-time Total (T) or total of full-time equivalents (FTE) Total (T) or total of full-time equivalents (FTE) Average number of employees 100 742.6 175.3 876.4 (FTP) 896.6 (FTP) Number of hours actually worked 101 1,132,141 196,411 1,328,552 (T) 1,345,825 (T) Personnel costs 102 46,757 7,706 54,463 (T) 54,256 (T) Employees recorded in the staff register at the closing date of period By nature of the employment contract Codes Full-time Part-time Total of full-time equivalents 105 738 185 883.4 Contract for an indefinite period 110 714 184 859.0 Contract for an definite period 111 24 1 24.4 According to the gender and by level of education Male 120 662 160 788.0 - primary education 1200 14 2 15.6 - secondary education 1201 421 141 532.3 - higher education (non university) 1202 152 16 164.6 - university education 1203 75 1 75.5 Female 121 76 25 95.4 - primary education 1210 2 2.0 - secondary education 1211 45 16 57.2 - higher education (non university) 1212 17 7 22.6 - university education 1213 12 2 13.6 By professional catergory Management staff 130 11 11.0 Employees 134 422 492.2 Workers 132 305 380.2 HIRED TEMPORARY STAFF AND PERSONNEL PLACED AT THE ENTERPRISE S DISPOSAL During the period Codes Temporary personnel Persons placed at the disposal of the enterprise Average number of employees 150 9.0 35.6 Number of hours actually worked 151 12,370 58,444 Charges of the enterprise 152 463 3.198

SABCA 39_ TABLE OF PERSONNEL CHANGES DURING THE PERIOD Entries Codes Full-time Part-time Total of full-time equivalents Number of employees recorded on the personnel register during the financial year 205 42 42.0 By nature of the employment contract Contract for an indefinite period 210 22 22.0 Contract for an definite period 211 20 20.0 Departures Codes Full-time Part-time Total of full-time equivalents Number of employees with a in the staff register listed date of termination of the contract during the period 305 31 4 33.9 By nature of the employment contract Contract for an indefinite period Contract for an definite period 310 17 4 19.9 311 14 14.0 According to the reason for termination of the employment contract Retirement 340 2 2.0 Dismissal 342 6 2 7.3 Other reason 343 23 2 24.6 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 617 5811 84 Number of training hours 5802 10,358 5812 1,216 Costs for the company 5803 1,001 5813 138 of which gross costs directly linked to the training 58031 1,052 58131 144 of which paid contributions and deposits in collective funds 58032 97 58132 12 of which received subsidies (to be deducted) 58033 147 58133 18 Total number of less official and unofficial advanced professional training projects received by employees at company expense Codes Male Codes Female Number of participating employees 5821 79 5831 2 Number of training hours 5822 8,930 5832 410 Costs for the company 5823 553 5833 43

_40 SABCA Annual accounts 2010 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. Method The 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.

SABCA 41_ b. Applied depreciation rates Buildings: 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.

_42 SABCA Annual accounts 2010 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 balance sheet on an economic and fiscal basis. VALUATION OF THE WORK IN PROCESS They 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.

SABCA 43_ 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.

_44 SABCA Annual accounts 2010 Comments on the non consolidated balance sheet N.B.: the important differences between correspondig headings of compared periods are mentioned in italic. Assets in thousand EUR Fixed Assets 40,300 Intangible assets 11,685 Research and development costs, know-how Land and buildings Plant, machinery and equipment 8,187 Furniture and vehicles -14,291 Assets under construction and advance payments -5,221 Depreciation cancelled after sales & disposals 14,291 Movements during the period 2,966 The research and development activities focused on civil aviation programs in which the company has been taking part with its industrial partners. Tangible assets 22,865 Land and buildings 5,056 Plant, machinery and equipment 12,467 Furniture and vehicles 1,458 Assets under construction and advance payments 3,884 Movements during the period Acquisitions 10,008 Sales and disposals -1,048 Depreciation -1 Depreciation recorded -4,314 Depreciation cancelled after sales & disposals 1,041 Net book value 5,686 The acquisitions over the financial year 2010 are divided between machines - tools intended for production, investments realized for the development and installation of new hangars as well as the evolution of software. Financial assets 5,750 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 366 Shares and other securities: 164 - B.S.C.A. 52 - Sambrinvest 6 - Arianespace Participation 106 - 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 202 - Cash guarantees 202 The Other financial assets item is on the increase following, on the one hand, our subscription after a write-down on Arianespace Participation (106) and, on the other hand, our payment of guarantees.

SABCA 45_ Current assets 192,887 Amounts receivable after more than one year 4,282 Trade debtors 4,230 Other amounts receivable 52 SABCA Limburg N.V. Stocks and contracts in progress 70,033 Stocks 30,921 Raw materials and consumables 8,095 Goods purchased for resale 20,571 Raw materials and consumables in stock for other contracts partially paid by customer Advance payments 2,255 Contracts in progress 39,112 This item contains principally the following programs: Airbus and Space applications. Amounts receivable within one year 30,054 Trade debtors - supply of goods & services 27,419 whereof affiliated enterprises 1,188 Trade receivables moved from 37,556 to 27,419 as a result of the decrease in turnover for certain programmes and to advances paid for stocks purchases. Other amounts receivable 2,635 V.A.T. Recoverable 748 Excess of income tax payments to be recovered 444 Loans and advances to the personnel 16 Amounts owed by insurers 454 Sundry amounts receivable 973 The Other amounts receivable are in decrease of 4 million due to the repayment received from our subsidiary SABCA Limburg. Investments 86,172 Other investments and deposits 86,172 Less or equal to one month 21,809 Between one month and one year 52,363 More than one year 12,000 Cash at bank and in hand 731 Bank & post office 715 Cash 20 Cash in transit -4 Term deposits and cash and cash equivalents amount to a total of 87 million, as compared to 93 million in the previous financial year. This decrease is due to the early repayment of some of our reimbursable advances to public authorities and to our participation in the capital increase of Arianespace Participation. Deferred charges and accrued income 1,615 Goods in acceptance and litigations 928 Expenses books or prepaid 542 Accrued bank and loan interests 145 This account has moved from 2,786 to 1,615. This decrease is due largely to the transfer of goods currently being received to the Stocks item. Total assets 233,187

_46 SABCA Annual accounts 2010 Liabilities in thousand EUR Shareholders equity 56,191 Capital 12,400 Issued capital 12,400 Represented by 2,400,000 shares without mention of nominal value Reserves 14,089 Legal reserve 1,240 Reserves not available for distribution 595 Extraordinary reserve 595 Untaxed reserves 494 Other untaxed gains: 433 Building and equipment 2 Realized tangible assets of more than five years 75 Collective transport of employee 356 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 29,174 See page 44 for the appropriation of the result of the financial year 2010. Investment grants 528 Following the continuation in 2010 of 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 202 was booked and 421 were affected to other financial products. Provisions and deferred taxation 32,695 Provisions for liabilities and charges 32,656 Pensions and similar obligations 9,498 Major repairs and maintenance 1,803 Other liabilities and charges 21,355 For global risk Ariane 5 and adaptation of the company to civil aviation programs 10,750 For future losses on orders 9,568 For future losses on orders in progress (Art. 31). 638 For fire insurance, damage and civil liability 119 For risks and charges on cases at issue 80 For social litigations 200 Provisions for liabilities and charges were reduced by 3.1 million, chiefly as a result of a decrease of 0.9 million in pensions and similar obligations and of 2.2 million in other liabilities and charges. The latter decrease is the result of the use of the provision for probable losses on orders in progress in the amount of -1.9 million and of the supplementary provision for future losses in the amount of -0.7 million, offset by a increase of 0.4 million in the provision for global risk on Ariane 5 and adaptation of the company to civil aviation programs. Deferred taxation 39 Taxes relating to gains on disposals of fixed assets 791 Transfer from deferred taxation on dito -752

SABCA 47_ Creditors 144,301 Amounts payable after more than one year 77,550 Advances received on contracts in progress 46,419 Customer advances 46,419 Other amounts payable 31,131 Advances on prototypes, received by the State and to be reimbursed conditionally: - Science Policy PPS - FPS Economy - N.R.C. - TAILCONE 184 - Science Policy PPS - FPS Economy - N.R.C. - PLANCHER 3,654 - Science Policy PPS - FPS Economy - N.R.C. - A380 22,699 Advances received from Brussels-Capital Region and to be reimbursed conditionally: - Servoactuators 652 - No-back device for electromechanical actuators 49 - Zero lead differential roller bearing 237 - Airbus 340-500/600 3,656 The decrease in amounts payable after more than one year may be explained by the sharp decrease in the other liabilities item, which consists of advances received from public authorities. A transfer of EUR 949 to long-term financial liabilities falling due this year has also been recognised. Amounts payable within one year 57,788 Current portion of amounts payable after more than one year 949 Science Policy PPS - FPS Economy and Brussels-Capital Region 949 Financial debts 13 Other banks 13 Trade debts 11,386 Suppliers 11,386* Invoices to be paid 10,538 Invoices to be received 848 * whereof affiliated enterprises 670 Advances received on contracts in progress 31,804 Financial invoices in progress 75,247 Amounts not yet received to deduct -5,587 Long term financial invoices -46,419 Invoices redefined as advances 9,987 Invoices redefined as advances not yet received -1,424 Taxes, remuneration and social security 10,593 Taxes 906 Estimated taxes payable 897 Taxes payable 2 Taxes withheld 7 Remuneration and social security 9,687 Social Security Office -129 Remuneration due to the personnel 317 Holiday pay 5,109 Provisions for bonus and other personnel charges 4,180 Insurance for the personnel 183 Other social obligations 27 Other amounts payable 3,043 Amounts payable resulting from appropriation of profits 2,127 Dividends relating to previous financial years 15 Dividend relating to the financial year 2,112 Sundry amounts payable 916 Royalties 338 Contributions 1 Customers payable 64 Other 513 The amount payable within one year fell to 4.2 million, chiefly as a result of a decrease in trade debts (-6.5 million) relating to the fall in orders in progress. It should also be noted that there is an increase in advances and payments received (+2.1 million). Accrued charges and deferred income 8,963 Accrued charges 1,951 Suspense accounts 7,012 The decrease in suspense accounts is the result of the lower volume of advance payments not yet cashed. Total liabilities 233,187

_48 SABCA Annual accounts 2010 Sources and applications of funds in thousand EUR 2010 I. Sources Profit for the period 6,184 Depreciation and amounts written down 11,571 Investment grants -219 17,536 Increase amounts payable after more than one year -12,467 5,069 II. Applications Increase amounts receivable after more than one year 34 Provisions and deferred taxation 3,142 Purchase of fixed assets 20,437 Distribution of profit 2,112 25,725 I. - II. Movement in working capital -20,656 III. Movement in stocks and contracts in progress -9,691 Movement in short-term accounts receivable -10,573 Movement in deferred charges and accrued income -1,171-21,435 IV. Movement in short-term non financial debts -4,039 Movement in accrued charges and deferred income -2,791-6,830 III. - IV. Movement in short-term financing requirements -14,605 V. Movement in investments Movement in cash at bank and in hand -5,874-330 VI. Movement in short-term financial debts 153 V. - VI. Movement in cash -6,051

SABCA 49_ 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, 2010 Free translation 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, 2010, prepared in accordance with the financial reporting framework applicable in Belgium, and which show a balance sheet total of KEUR 233,187 and a profit for the year of KEUR 6,184. 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, 2010 and of its results for the year then ended in accordance with the financial reporting framework applicable in Belgium.

_50 SABCA Annual accounts 2010 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 15, 2011 X. Doyen Statutory Auditor

Registered office at 1130 Brussels, Chaussée de Haecht 1470 Production sites in Brussels and Charleroi Site at 6041 Charleroi, rue des Fusillés 11 RPM Brussels V.A.T. BE 0405 770 992 Consolidation includes the subsidiary SABCA Limburg N.V. Registered office at 3560 Lummen, Dellestraat 32 RPR Hasselt V.A.T. BE 0438 251 146 SABCA expresses its gratitude to Mr Guillaume Dedeurwaerder for his artistic and photographic collaboration. Realisation and production : www.comfi.be

SABCA S.A. Société Anonyme Belge de Constructions Aéronautiques Chaussée de Haecht 1470 B-1130 Brussels Belgium Tel: +32.2.729 55 11 Fax: +32.2.705 15 70 e-mail: sabca.secr@sabca.be www.sabca.com