Zodiac beat its operating targets for 2002/03, with organic growth in its Aerospace businesses (+0.7%) and a strong advance in the Marine segment (+7.7%). However, the exceptionally rapid slide in the dollar – down 18% year-on-year – offset some of this good performance.

Overall, at average exchange rates, Zodiac’s sales came in down 2.6%, including the positive impact from acquisitions and the negative dollar effect.

Despite a negative dollar effect of more than 15%, 2002/03 earnings per share (before goodwill amortization) should be close to the 2001/02 figure. Zodiac confirms that final agreements regarding the sale of its Leisure segment and
the acquisition of the airbag business of Simula Inc (USA) were signed during the summer. The company states that after recent acquisitions, the share buyback program and
the dollar impact, gearing is likely to be 100%, fully in line with its target.

2003/04 OUTLOOK

Strong cash flow, together with the syndicated loan arranged in June 2003, will enable Zodiac to pursue its active acquisitions policy. These acquisitions are
necessary for the company to offset the impact of the falling dollar and to hit its longterm target of generating growth in earnings per share expressed in euros.
The air transport industry now appears to be recovering, and this could start to boost Zodiac’s performance starting in the second half of its 2003/04 financial year.
Results for the 2002/03 financial year will be reported on November 6 2003.