2019 Annual Results Outlook
March 4, 2020
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Index
- Impact of changes in scope of consolidation, IAS 29 & IFRS 16 (*)
- 2019 Full year: sales and results
- Recent activity and outlook
(*) IAS 29: hyperinflation in Argentina; IFRS 16: new leases standard
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I.
Impact of changes in scope of consolidation, IAS 29 and IFRS 16 (*)
(Period from 01.01.19 to 31.12.19)
(*) IAS 29: hyperinflation in Argentina;
IFRS 16: new leases standard
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Global income statement
A | B | C | D | A-B-C-D |
in € Million | Global | Sale of rental | IAS 29 | IFRS 16 | |||||
activity Italy | |||||||||
2019 | 2018 | Var. | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |
Net sales | 609,8 | 560,4 | +9% | - | 4,5 | (1,0) | (2,1) | - | - |
Current Operating Income excl. FX gains & | 35,9 | 35,7 | +1% | - | 0,1 | (0,8) | (1,5) | 0,6 | - |
losses | |||||||||
5,9% | 6,4% | ||||||||
Operating Income | 29,2 | 35,7 | -18% | - | 6,7 | (0,4) | (1,1) | 0,6 | - |
4,8% | 6,4% | ||||||||
Income before tax | 26,7 | 31,9 | -16% | - | 6,7 | 1,9 | 3,2 | (0,3) | - |
4,4% | 5,7% | ||||||||
Consolidated Net Result | 19,5 | 23,9 | -18% | - | 5,9 | 2,1 | 3,0 | (0,3) | - |
3,2% | 4,3% |
Continuing operations excluding IAS
29 & excluding IFRS 16
2019 | 2018 | Var. |
610,8 | 558,0 | +9% |
36,1 | 37,1 | -3% |
5,9% | 6,6% | |
29,0 | 30,1 | -4% |
4,7% | 5,4% | |
25,1 | 22,0 | +14% |
4,1% | 3,9% | |
17,7 | 15,0 | +18% |
2,9% | 2,7% |
- IAS 29 : hyperinflation in Argentina
- IFRS 16 : new leases standard
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IFRS 16 impacts at 31.12.2019
- IFRS 16 "Leases" has been applied by the Group from 1st January 2019 without restating the comparative information,
using the simplified retrospective method. - The majority of lease contracts are operating leases in which the Group is a lessee. The assets under lease are mainly buildings, vehicles and industrial equipment.
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in M€ | 31.12.2019 | IFRS 16 Impact | 31.12.2019 |
(excluding IFRS 16) | |||
Impact on Balance Sheet | |||
Right-of-use assets | - | 19,6 | 19,6 |
Assets | - | 19,6 | 19,6 |
Shareholders' equity | - | (0,3) | (0,3) |
Non-current lease liabilities | - | 14,8 | 14,8 |
Current lease liabilities | - | 5,1 | 5,1 |
Liabilities | - | 19,6 | 19,6 |
Impact on Income Statment | |||
Current operating income excl. FX | 35,3 | 0,6 | 35,9 |
gains & losses | |||
of which rental expenses | 6,5 | ||
of which amortization expenses | (5,9) | ||
Financial result | (1,5) | (0,9) | (2,4) |
Consolidated Net Result | 19,8 | (0,3) | 19,5 |
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II.
2019 Full year: sales and results
(Period from 01.01.19 to 31.12.19)
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MAIN FACTS 2019
- The global aerial work platform market is stable in volume terms over the year.
- The European market reached a peak in the 1st half of 2019 and finished below 2018.
- TheNorth-American market is down, after several years of strong investment.
- TheAsia-Pacific market is experiencing high growth, mainly driven by China.
- Strong declines observed in all Latin American markets, except for Brazil.
- Electrification, telematics and low access are strong market trends.
- A strengthening of the Haulotte commercial position in most areas despite increased competitive environment.
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Bandeau
titre
MAIN FACTS 2019
Global aerial work platform market
NORTH AMERICA
EUROPE
44%
51%
Source: AEM statistics, December 2019
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26%
30%
2%
2%
LATIN AMERICA
28%
17%
ASIA - PACIFIC
| | Market trends |
Market weight (2019 / 2018) |
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Faits marquants Exercice 2018
MAIN FACTS 2019
- March 2019
Opening of a new subsidiary in Osaka: Haulotte Japan
- April 2019
Haulotte lays the foundation stone of its future head office
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- May 2019
Haulotte Australia is 20 years old
- May 2019
Haulotte lays the foundation stone of its new premises for Haulotte Australia
- June 2019
Inauguration of a new building in Wolverhampton, for Haulotte UK subsidiary
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Faits marquants Exercice 2018
MAIN FACTS 2019
- July 2019
Haulotte Changzhou factory celebrates 10 years
- October 2019
Haulotte North America inaugurates its Californian Branch
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- October 2019
Haulotte and Linde achieved a cooperation to jointly open up MEWP China
- October 2019
Haulotte introduces its blog « Haulotte Community » providing all aerial lift market players with valuable content to better understand the access equipment marketplace and upcoming challenges
- November 2019
Hackathon Haulotte : a challenge to younger generations
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Faits marquants Exercice 2018
MAIN FACTS 2019
HA 20 LE - « product of the year » awards
HA20LE
Construction | The China Construction | European Rental | CMIIC 2019* - China - |
Industry's award - | Machinery Annual | Association - Product | Engineering |
Product of the year | Product TOP50 | of the year | Machinery Star |
Product Award | |||
*China Construction | |||
Machinery Industry | |||
Internet and Branding | |||
Conference |
Haulotte awarded « Supplier of the year » HIRE Industry - Australia
Haulotte enters Gaïa index for
the first time(companies ranking on their Social and Environmental responsability practices)
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Faits marquants Exercice 2019
2019 Highlights
- The 2ndbest year in Group history in terms of sales, essentially led by a positive mix in new equipment sales.
- Global currency environment more favorable, especially regarding USD.
- Component prices higher on average compared to last year, despite a confirmation of reduced pressure on raw materials in last few months.
- Adaptation of production rates during 2ndsemester, linked to the slow down of the market.
- Current operating income from continuing operations down by-3% at €36.1 million (excluding exchange gains and losses, IAS 29 and IFRS 16).
- Working capital requirement at €229 million and stable compared to 2018.
- Signature of a new syndicated loan, for an amount of €130 million, providing the Group with the financial resources necessary for its development.
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Sales breakdown by activity
in € Million(Continuing operations excluding IAS 29 & | 2019 | 2018 | Var. |
excluding IFRS 16) | Var. at constant exchange | ||
rate | |||
Equipment sales | 534,2 | 490,3 | + 9% |
87,5% | 87,9% | + 8% | |
Rental sales | 21,6 | 16,7 | + 29% |
3,5% | 3,0% | + 23% | |
Services | 55,0 | 51,0 | + 8% |
9,0% | 9,1% | + 7% | |
Total | 610,8 | 558,0 | + 9% |
+ 8% | |||
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Sales breakdown by zone of activity
in € Million(Continuing operations excluding IAS 29 & | 2019 | 2018 | Var. |
excluding IFRS 16) | Var. at constant exchange | ||
rate | |||
Europe | 352,3 | 334,7 | + 5% |
57,7% | 60,0% | + 5% | |
North America | 96,0 | 78,6 | + 22% |
15,7% | 14,1% | + 16% | |
Latin America | 46,7 | 44,3 | + 5% |
7,6% | 7,9% | + 0% | |
Asia and Pacific | 115,8 | 100,4 | + 15% |
19,0% | 18,0% | + 15% | |
Total | 610,8 | 558,0 | + 9% |
+ 8% | |||
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Current operating income down by -3% compared to 2018 (excluding exchange gains and losses)
in € Million(Continuing operations excluding IAS 29 & | 2019 | 2018 | Var. |
excluding IFRS 16) | |||
Net Sales | 610,8 | 558,0 | +9% |
Current operating excl. FX gains & losses | 36,1 | 37,1 | -3% |
5,9% | 6,6% | ||
Operating Income | 29,0 | 30,1 | -4% |
4,7% | 5,4% | ||
Income before tax | 25,1 | 22,0 | +14% |
4,1% | 3,9% | ||
Consolidated Net Result | 17,7 | 15,0 | +18% |
2,9% | 2,7% |
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Operating income decreased by -4%
Continuing operations excluding IAS 29 & excluding IFRS 16
2018 EBIT | 30,1 M€ | |||
Change in gross margin | 8,5 M€ | |||
Fixed costs | -6,7 M€ | |||
Bad debts | -2,8 M€ | |||
Exchange gains and losses | 0,0 M€ | |||
Other non recurring items | -0,1 M€ | |||
2019 EBIT | 29,0 M€ | |||
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Gross margin increased by +8.5 M€ compared to 2018
in € Million (Continuing operations excluding IAS 29 & excluding IFRS 16)
2018 Gross Margin | 133,4 M€ | |||||
Impact of volume and mix on new machines sales | 4,1 M€ | |||||
Impact of price and FX on new machines sales | 5,4 M€ | |||||
Margin on 2nd hand machines sales | -0,7 M€ | |||||
Impact of manufacturing performance | 0,3 M€ | |||||
Impact of raw materials | -3,7 M€ | |||||
Margin on Service & Rental activity | 5,2 M€ | |||||
Inventory provision, warranty & others | -2,1 M€ | |||||
2019 Gross Margin | 141,9 M€ | |||||
- Gross margin rate amounts to 23,2% compared to 23,9% last year.
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A +7% increase in fixed costs (excluding bad debt provisions)
in € Million(Continuing operations excluding IAS 29 & excluding IFRS 16)
Commercial costs
SG & A
R & D
Total (excl. depreciations)
Bad debt provisions
Total fixed costs
2019 | 2018 | Var. |
34,5 | 32,8 | 1,7 |
58,2 | 54,5 | 3,7 |
10,0 | 8,7 | 1,3 |
102,7 | 96,0 | 6,7 |
3,1 | 0,3 | 2,8 |
105,8 | 96,3 | 9,5 |
- Negative FOREX impact at-0,3 M€ excluding bad debt provisions, which represents an increase of +6,7% at constant exchange rate.
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Change in working capital
in € Million(Continuing operations excluding IAS 29 & | 31.12.19 | 31.12.18 |
excluding IFRS 16) | ||
Change in inventories | 13,3 | 63,1 |
Change in trade receivables | (25,8) | 16,9 |
Change in trade payables | 15,8 | (20,5) |
Change in other receivables and payables | 0,8 | 11,5 |
Change in operating WC | 4,1 | 71,0 |
Change in WC linked to discontinued operations | - | (1,6) |
Other changes (FX effect…) | (4,1) | (4,5) |
Working capital* | 229,3 | 229,3 |
- Working capital days reduced from 159 to 158 at December 2019 end.
- DSO represents 75 days of revenue at December 2019 end, compared to 81 days at 2018 end.
* including non current other assets and other liabilities
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Consolidated cash flow statement
in € Million(Continuing operations excluding IAS 29 & excluding IFRS 16) | 31.12.19 | 31.12.18 |
Gross cash flows from continuing operations | 37,2 | 36,5 |
Change in operating working capital from continuing operations | (4,1) | (71,0) |
Change in receivables from financing activities | (19,4) | (2,7) |
Cash flows from operating activities of discountinued operations | - | 0,2 |
Cash flows from investment activities of continuing operations | (26,8) | (33,3) |
Cash flows from investment activities of discountinued operations | - | 16,1 |
Cash flows from financing activities of continuing operations | 9,7 | 37,0 |
Net change in cash and cash equivalents | (3,4) | (17,2) |
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Net debt (excluding guarantees and IFRS 16) increases by +23,5 M€ to 121,4 M€
in € Million(excluding IFRS 16) | déc-19 | déc-18 | déc-17 | déc-16 |
Long term debt | 132,8 | 46,1 | 68,0 | 74,6 |
Short term debt | 46,3 | 102,0 | 14,3 | 24,8 |
Total financial debts | 179,1 | 148,1 | 82,3 | 99,4 |
Cash | 28,7 | 24,1 | 24,5 | 24,6 |
Net debt | 150,4 | 124,0 | 57,8 | 74,8 |
Of which guarantees | 29,0 | 26,1 | 23,8 | 23,4 |
Net debt excl. Guarantees | 121,4 | 97,9 | 34,0 | 51,4 |
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Level of financed sales increased compared to 2018
in € Million(Continuing operations excluding IAS 29 & excluding IFRS 16) | 2019 | 2018 | 2017 | 2016 |
Financed sales | 107,0 | 92,6 | 128,4 | 107,5 |
Equipment sales | 534,2 | 490,3 | 431,8 | 382,9 |
% of equipment sales | 20,0% | 18,9% | 29,7% | 28,1% |
Receivables on financed sales | 60,2 | 38,0 | 32,7 | 37,8 |
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Financing and Group cash reserves
- A new syndicated loan contract, totaling €130 million with maturity dates from 5 to 7 years, was signed on 17th July 2019, providing the Group with the financial resources necessary for its development.
- At the end of December 2019, €88 million of the syndicated loan contract was being used.
- All bank ratios were respected at the end of 2019.
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Evolution of the dividend distribution
in €
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
Net dividend per share | 0,15 | 0,22 | 0,22 | 0,22 | 0,22 | 0,22 | 0,22* |
* Proposed by the Board of Directors to the General Meeting of Shareholders on May 26, 2020
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III.
Recent activity and outlook
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Market context for 2020
- A global AWP market decreasing by about-10%.
- European and North American markets down compared to 2019.
- Asia-Pacificwill continue its growth, mainly driven by China. Middle East remains at a low level.
- A stable Latin American market where only Brazil expected to continue to grow.
- A currency environment that should remain globally beneficial for the Group.
- Lower pressure on raw material prices.
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Global trend by zones
-- | |||||
NORTH AMERICA | |||||
-- | |||||
EUROPE | |||||
+ASIA - PACIFIC
= | LATIN AMERICA |
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Perspectives 2020
- In a context of declining European and North American markets, Haulotte expects to post a decrease in sales close to-10% but maintain a level of current operating income (excluding foreign exchange gains and losses) close to that of 2019.
- The main challenges for 2020 will be to remain focused on:
- Continuation of the new strategic plan of the Group (electrification, telematics, strengthening our Chinese position, delivering the new headquarters…)
- Optimisation of production costs in a more favourable raw material price context
- Maintaining the level of our structural expense cost
- Optimisation of working capital requirements
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Appendices
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Balance sheet assets at December 31, 2019
Assets in € million | 31.12.19 | 31.12.18 |
Non Currrent Assets | 213,0 | 164,1 |
Goodwill | 28,5 | 32,7 |
Intangible assets | 34,2 | 30,2 |
Property, plant and equipment | 63,9 | 54,0 |
Right-of-use assets (IFRS 16) | 19,6 | 0,0 |
Financial assests | 4,4 | 2,9 |
Deffered tax assets | 18,9 | 18,0 |
Trade receivables from financing activities (> one year) | 37,9 | 21,7 |
Other non current assets | 5,6 | 4,6 |
Current Assets | 371,0 | 372,8 |
Inventory | 191,6 | 178,9 |
Trade receivables | 93,6 | 123,6 |
Trade receivables from financing activities due (< one year) | 21,6 | 12,8 |
Other assets | 35,5 | 33,4 |
Cash and Cash equivalents | 28,7 | 24,1 |
Total Assets | 584,0 | 536,9 |
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Balance sheet liabilities & equity at December 31, 2019
Liabilities and Shareholders' equity in € million | 31.12.19 | 31.12.18 |
Shareholders' equity before minority interests | 264,7 | 257,3 |
Minority interests | (0,4) | (0,3) |
Non current liabilities | 161,7 | 57,3 |
Long-term borrowings | 132,8 | 46,1 |
Non-current lease liabilities (IFRS 16) | 14,8 | 0,0 |
Deferred tax liabilities | 7,3 | 6,1 |
Provisions | 6,8 | 5,1 |
Current liabilities | 158,0 | 222,6 |
Trade payables | 70,8 | 86,3 |
Other current liabilities | 26,3 | 24,7 |
Current borrowings | 46,3 | 102,0 |
Current lease liabilities (IFRS 16) | 5,1 | 0,0 |
Provisions | 9,5 | 9,6 |
Liabilities and Shareholders' equity | 584,0 | 536,9 |
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Upcoming events
2020 Quarter 1 Sales:
April 14, 2020
Shareholders' meeting:
May 26, 2020
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Stock exchange ID
Euronext Paris | Compartiment B |
ISIN | FR0000066755 |
Mnémo | PIG |
Reuters | PYHE.PA |
Bloomberg | PIG FP |
CACS |
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Shareholders at December 31, 2019
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Disclaimer
Haulotte Group SA published this content on 04 March 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 March 2020 11:42:10 UTC