2019 Annual Results Outlook

March 4, 2020

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Index

  1. Impact of changes in scope of consolidation, IAS 29 & IFRS 16 (*)
  1. 2019 Full year: sales and results
  1. 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

5

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

10

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