2021 Half-year report

2021

HALF YEAR REPORT

HALF YEAR FINANCIAL REPORT

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1. HALF YEAR ACTIVITY REPORT

INTERIM FINANCIAL REPORT JUNE 30, 2021

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As of 2021, segment information is disclosed on the basis of the Group's new operational structure, with two divisions:

• the Product division, which, since January 1, 2021, has grouped together the Material Handling & Access (MHA) and Compact Equipment Products (CEP) divisions
• the Services & Solutions division (S&S).

The 2020 segment information has been restated to enable comparison and monitoring of operational performance.

1.1. KEY FIGURES

		Net Income attributable to the
Net sales	Recurring operating income	equity holders of the parent	Net debt	Order intake

€970M

Strong rebound in business

• Net earnings per share
• Excluding lease commitments

€85M	€64M	-€15M	€1673M
Margin of 8.8%	or an NEPS* of €1.67

Improving earnings recurring	Increase in net	Negative net debt	Order book, up by
operating income of €55 million	recurring of 376%	with record Gearing**	188%
with an increase in business	and following the	-2%
activity margin	recovery activity

1.2. SIGNIFICANT EVENTS

PRESENTATION OF THE "2025 NEW HORIZONS" ROAD MAP

The upheavals caused by the 2020 health crisis have had a profound impact on all economic and market players. New challenges are changing global priorities and, as a result, those of Manitou Group. Influenced by these changes, the Group presented its new 2025 Horizon road map in January 2021. The "2025 New Horizons" plan is based on four priorities:

• Exceed customer expectations with value-added services;
• Drive the green transition for a sustainable business model;
• Boost performance with streamlined operations;
• Build our success on one united team

with DATA as a game changer and innovation as our DNA.

The Group also presented its new CSR roadmap, which is fully integrated into this plan, organized around 4 areas:

• safety and improvement of working conditions;
• the circular economy;
• low carbon trajectory;
• a human and ethical company.

See also paragraph 1.7.

NEW GROUP ORGANIZATION

Beginning in January 2021, the Manitou Group has changed its operational management in order to implement the "2025 New Horizons" plan. Therefore, the former MHA and CEP divisions were combined into the new Product division led by Elisabeth Ausimour, member of the Executive Committee, former President of the MHA division and member of the Executive Committee.

INDUSTRIAL INVESTMENT PLAN

In April 2021, the Manitou Group announced an industrial investment plan of €80 million for the next five years allocated for the redevelopment and expansion of production sites in France.

Driven by sustainable growth prospects and the need to industrialize future electric and hybrid models, the Manitou Group has decided to invest in innovative equipment, in line with its desire to accelerate its energy transition. These facilities will better absorb peak activity,

increase productive capacity in France, and improve employee safety. These new developments will be designed in line with the Group's CSR commitments for an eco-friendly industry.

These projects will begin in 2021 as part of the EUR 460 million investment budget for the "2025 New Horizons" strategic plan presented last January. They will support the Group's long-term ambitions to meet its customers' expectations.

OVERHAUL AND EXTENSION OF THE RANGE OF TELEHANDLERS

In April 2021, the group presented:

• its new range of rotating telehandlers dedicated to the construction sector, including an electric offer;
• launches of a new segment of compact fixed telehandlers with an even lower total cost of ownership and a new segment of ultra compact telehandlers by the end of the year;
• and the overhaul and extension of the range of articulated loaders.

LITIGATION FOR INFRINGEMENT

OF INTELLECTUAL PROPERTY RIGHTS

On February 26, 2021, the Court of Justice of Paris ruled, in the first instance, on the litigation for infringement of the French part of two European patents initiated in May 2017 by JC Bamford Excavators Limited (JCB) against Manitou BF.

Under this decision, the court fully annulled the French part of one of these two patents owned by JCB and also annulled the French part of the second patent of which JCB is the holder in most of its claims. The court found infringement of only two claims of the French part of the second patent by three models of equipment of an old configuration that has not been marketed by Manitou BF since May 2017.

In view of the very residual nature of the infringement, the court ordered Manitou BF to pay to the applicant the total amount of €150,000 for the loss suffered, dismissing JCB's claims of a loss of €190 million. The court's decision reinforces Manitou BF's position, which has always challenged the merits of the plaintiff's action and the disproportionate nature of its claims. JCB and Manitou BF appealed this decision. See also Note 10.2 of the condensed consolidated financial statements ending June 30, 2021.

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1.3. BUSINESS

ORDER INTAKE IN €M

Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021

Order intake

Order book

In H1 2021, despite a still unfavorable health situation, the momentum seen at the end of 2020 continued. As a result, order intake reached a record level of €1,673 million compared to €580 million in H1 2020, which was heavily impacted by the Covid-19 crisis.

CHANGES IN NET SALES IN MILLIONS OF EUROS

+29.7%

762

2020	Volume impact

For H1 2021, the group achieved revenue of €970 million, up 27% based on actual data and 30% based on comparable data versus H1 2020, which was impacted by the Covid-19 crisis.

All markets and business sectors rallied extremely strongly.

The exchange rate impact over the period was negative by - €18 million (-2.4 points).

The group's two divisions benefited from this rebound.

As of June 30, 2021, the group's order book jumped to €1,788M, up 222% compared to the previous year (€555M) and 95% compared to December 31, 2020 (€918M). To meet this demand, the Product division (the former MHA and CEP divisions combined) is organizing itself to increase its production capacity and adapt its supply chain.

970

-2.4%

Exchange rate impact

2021

The Product division (grouping of the former MHA and CEP divisions) benefited from this recovery, with a 30% increase in its activity compared to H1 2020. However, activity in H1 2021 was penalized by supply difficulties.

The S&S division, which was more resilient in 2020, is experiencing sustained growth of 18% in 2021 in all markets, with availability and pricing pressure on the distribution of spare parts.

Revenue is up across all geographical regions and especially in Northern Europe (+43%) and in APAM (+35%).

INTERIM FINANCIAL REPORT JUNE 30, 2021

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