Manitou : Analysts prensentation - 2020 Half-year results

2020 Half-Year Earnings

Michel Denis - President and CEO Hervé Rochet - Chief Financial Officer

Disclaimer

This presentation includes only summary information and does not in any way purport to be comprehensive. None of the Company or any of its affiliates, directors, officers, advisors and employees accepts any obligation, liability, claim or remedy for any loss arising from any use of these presentation materials or their contents or otherwise arising in connection with these materials, whether or not arising from the negligence of the Company.

This presentation may include market data and certain industry forecasts obtained from internal surveys, estimates, reports and studies, as well as external market research, publicly available information and industry publications. The Company, its affiliates, directors, officers, advisors and employees have not independently verified the accuracy, adequacy, reliability, completeness of any such market data and industry forecasts and make no representations or warranties in relation thereto.

This presentation may include forward-looking statements, which are based on current beliefs, expectations and assumptions, including without limitation assumptions regarding present and future business strategies and the business environment in which the Company operates, and involve known and unknown risk, uncertainties and other factors, which may cause actual results, performances or achievements, or industry results or other events, to be materially different from those expressed or implied by such forward-looking statements. Forward-looking statements speak only as of the date of this presentation and the Company expressly disclaims any obligation or undertaking to release any update or revisions to any forward-looking statements that this presentation may contain to reflect any change in expectations or any change in events, conditions or circumstances on which these forward-looking statements are based. Forward looking statements are for illustrative purposes only. Recipients of this presentation are cautioned that forward-looking information and statements are not guarantees nor undertakings of future performances and are subject to various risks and uncertainties, many of which are difficult to predict and beyond the control of the Company.

Neither this presentation nor any copy of it may be taken, transmitted into or distributed in the United States of America, Canada, Japan or in any other jurisdiction where applicable laws restrict the transmission or distribution of this presentation.

2020 Half year results I July 30 2020			Public				2

Highlights

• H1 20 revenues of €762m, -35% vs. H1 19, -35% like for like*
• Q2 order intake on equipment of €180m vs. €286m in Q2 19
• End of Q2 20 order book on equipment at €555m vs. €643m in Q2 19
• Recurring operating income at €30.1m (3.9%) vs. €90.1m (7.7%) in H1 19
• Net income group part at €13.5m vs. €60.1m in H1 19
• EBITDA at €48m** (6.3%) vs. €107m in H1 19
• Net debt*** at 164 M€, gearing*** at 24%

Data as a percentage in parentheses express a percentage of net sales* at constant scope and exchange rates

• EBITDA : Earnings before interest, taxes, depreciation, and amortization (on 6 months), restated from IFRS 16 impact
• Net debt and Gearing excluding IFRS 16

Major impact of the health crisis

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2020 Half-Year review

Covid-19 epidemic

• Mid-March
• • health emergency measures
  • Closure of production plants in France, Italy and India
  • Maintaining continuity of spare parts and services
  • Slower activity in the group's distribution companies
  • Setting up partial activities when possible (France, Italy, USA, etc.)
  • Generalisation of remote working
• Mid-April
• • Restricted reopening of production activities in Europe
• Mid-June
• • Following the deconfinement, the teams gradually return to face-to-face meetings
  • Implementation of specific health measures
  • Annual General Meeting - no dividend payment

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2020 Half-Year review

Implementation of a resilience plan globally

• Partial activity
• Hiring freeze
• Take time off work
• Cost reduction
• Staff reduction (USA)
• Deferral of all non-essential projects

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2020 Half-Year review

Events

• June
• • Manitou Group's commitment to an eco-responsible industry with the signature of the EMC2 manifesto
• July
• • Manitou Group wins European Rental Awards

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1

H1 2020 Activity

Q2 20 Revenue

Matrix

MHA : Material Handling & Access					Faster-growing boxes (vs. avg) shown in green
CEP : Compact Equipment Products
S&S : Services & Solutions
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H1 20 Revenue

Matrix

MHA : Material Handling & Access					Faster-growing boxes (vs. avg) shown in green
CEP : Compact Equipment Products
S&S : Services & Solutions
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Evolution vs. 2019

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Evolution vs. 2019

* at constant scope and exchange rates : definition in appendix

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Order intake and order book on equipment

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MHA review

ADVANTAGES

Covid crisis management

Agility to close and restart production

Capacity to serve Agriculture customer on time

Magnitude of cost reduction

Reactivity & Agility aligned with the magnitude of the crisis

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CEP review

ADVANTAGES

US remained open as supporting essential business

Crisis management

Organization downsized

Massive revenue and profitability drop, downsized organization

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S&S review

ADVANTAGES

Continue to support customers during crisis

Services less impacted by crisis than machines

Favorable product mix

Level of profitability

Improved business resilience, favorable mix, profitability record

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2

Financial results

Income statement

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Income statement by division

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Current operating profit evolution vs. 2019

				Public
	2020 Half year results I July 30 2020							19

Balance sheet

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Cash-Flow

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Investments

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Net debt

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3

Outlook

Outlook 2020

• Sales trend :
  Anticipation of 2020 revenue decrease of around 30% compared to 2019
• Profitability :
  Expected Recurring operating income in a range of 2.7% to 3.2% of revenue

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Appendix

Appendix - Definition

On a comparable basis at constant scope and exchange rates:

• for 2019 acquisitions (Mawsley Machinery Ltd at the end of October 2019), subtraction of their contribution, from January 1st to March 31, 2020. There is no exit in 2019. There is no acquisition nor exit in 2020.
• application of the exchange rates of the previous year on the aggregates of the current year

Gearing

• Ratio of net debt divided by the amount of shareholders' equity.

Leverage

• Ratio determined by dividing the amount of net debt at the end of the period by rolling 12-month EBITDA. This measures the amount of the debt in number of years of EBITDA.

EBITDA restated from the IFRS 16 impact:

• EBITDA calculated on the basis of IFRS standards applicable, excepted IFRS 16

Net debt and Gearing excluding IFRS 16:

• Debt calculated on the basis of IFRS standards applicable, excepted IFRS 16

2019 Half year results I July 30 2019			Public				27

Thank you for your attention