BENETEAU (EPA:BEN) - BENETEAU H1 2017-18 Results

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26/04/2018 17:40

Financial press release - April 26, 2018

                         2017-18 half-year earnings
- Good level of business marked by consolidated revenue growth of +10.5%
  (constant exchange rates) and +8% (reported data)
- 1-point improvement in operational profitability for the Boat Division at
  constant exch. rates

Outlook
- Current financial year at constant exchange rates: expected growth of +8% to
  +10% for revenues and +10% to +12% for income from ordinary operations
- 2020 target: income from ordinary operations rate raised +0.5% at constant
  exchange rates

In a market that has seen positive trends since the autumn shows, the Group's
revenues are up +10.5% (constant exchange rates) for the first half of FY
2017-18 thanks to a good level of business and robust growth across both the
Boat and the Housing divisions.

The progress made with earnings reflects the strong level of business and the
Leisure Homes activity's effective operational performance on buoyant markets.
The Boat Division is reporting a 1-point improvement in operational
profitability, but its earnings have been penalized by a negative EUR/USD
exchange effect of EUR5.4m, partially offset in financial income and expenses
for the first half of the year through currency hedging (+EUR4.9m).

At February 28, 2018, the order book for the Boat business is up +15.2% at
constant exchange rates.

As billing is concentrated primarily over the second half of the year, income
from ordinary operations is negative at the end of the first half of this year,
as expected in line with previous years, while the net income breaks even.

2017-18 first-half earnings (September 1, 2017 - February 28, 2018)

                                                    Change   (constant
                                                  (reported   exchange
IN MILLION EUROS                2017-18  2016-17     data)     rates)

Revenues                          464.9    430.3    + 8.0%    + 10.5%
- Boats                           378.1    351.8    + 7.5%    + 10.5%
- Housing                          86.9     78.5   + 10.6%    + 10.6%
Income from ord. operations       - 4.4    - 6.6      n/s
EBITDA*                            26.1     22.5   + 19.5%    + 31.9%
Net income (Group share)            0.1    - 4.0      n/s
Closing net cash position        - 53.9  - 141.1

* EBITDA: earnings before interest, taxes, depreciation and amortization, i.e.
operating income restated for allocation / reversal of provisions for
liabilities and charges and depreciation charges.

For the first half of 2017-18, consolidated revenues climbed to EUR464.9m, up
+10.5% at constant exchange compared with the first half of the previous year
and +8% based on reported data.

Income from ordinary operations improved by EUR2.2m to -EUR4.4m, with net
income up EUR4.1m to EUR0.1m.

Boat Division: dynamic business driven by Europe

In the first half of 2017-18, the Boat Division generated revenues of
EUR378.1m, up +10.5% at constant exchange rates compared with the first half of
the previous year and +7.5% based on reported data.

The Boat Division's growth is being driven by the good results achieved on
European markets. Sales for North and Central America and fleets increased
slightly during the first half of the year, while the order book at March 31,
2018 shows +6.4% and +20.7% growth respectively for the two regions at constant
exchange rates. New orders for the large motor yacht segment (over 60 feet)
have slowed down, coming in below the full-year target. The pace of
recruitments (annual plan to recruit 500 permanent staff in France has been 86%
completed to date) and the new production capacity starting up have generated
temporary operational difficulties, which are currently being addressed.

Income from ordinary operations came to -EUR11.9m, compared with -EUR9.6m the
previous year. It is penalized primarily by the negative euro/dollar exchange
effect (EUR5.4m), partially offset in financial income and expenses through
currency hedging (EUR4.9m). The Transform to Perform plan is continuing to move
forward, reflected in reinforcements for EUR6.2m, supporting strong business
growth.

Housing Division: dynamic and profitable Leisure Homes business

For the first half of 2017-18, Housing Division revenues totaled EUR86.9m, up
+10.6% from the first half of the previous year. The Housing Division's growth
is linked exclusively to strong progress with sales for  the Leisure Homes
business.

The Leisure Homes business is benefiting from dynamic markets in France and
Italy, on which it is achieving good performances. The Division is moving
forward with its operational turnaround and is shutting down the Residential
Housing business, merging the legal entities BIO Habitat and BH. The shutdown
of the Residential Housing business is reflected in a marginal level of
revenues and income from ordinary operations.

Income from ordinary operations represents EUR7.5m, compared with EUR3m the
previous year, up 151.1%. This strong improvement is linked to growth in
volumes and the good operational performance for the Leisure Homes business
line.

Outlook for FY 2017-18

The Boat Division's outlook for full-year revenue growth can be confirmed, with
+8% to +10% at constant exchange rates, outpacing the markets, thanks to the
sustained level of orders.

The Housing Division is forecasting full-year revenue growth of between +6% and
+8%, supported by growth in Leisure Homes (estimated at +11% to +13%),
benefiting from a favorable market environment in France and Italy. The
shutdown of the Residential Housing business and the completion of the projects
underway are progressing under the foreseen conditions.

In this market environment, the Group is forecasting global revenue growth of
around +8% to +10% at constant exchange rates. Income from ordinary operations
is expected to be up +10% to +12% at constant exchange rates including the
impact of employee profit-sharing (EUR5.5m) for the Group's main subsidiary,
for the first time since 2009.

2020 targets revised upwards

In June 2017, during its dedicated investor day, the Group presented its 2020
roadmap for business and earnings.

In a favorable market environment, the Group is raising its revenue target for
FY 2019-20 to EUR1.5bn (versus EUR1.4bn previously). The current operating
margin has also been revised upwards and is expected to reach 8.5% to 9% at
constant exchange rates (exchange rate used in the plan presented in June
2017), with around EUR130m in income from ordinary operations (versus EUR115m
previously).

A detailed presentation of the half-year earnings is available on the Groupe
Beneteau website. The half- year activity report will be available from April
27, 2018.

The next announcement is scheduled for July 10, 2018, when revenues for the
first nine months of FY 2017-18 will be reported.

FINANCIAL GLOSSARY

At constant exchange rates: average rate for the previous reporting period.

EBITDA: earnings before interest, taxes, depreciation and amortization, i.e.
operating income restated for allocation / reversal of provisions for
liabilities and charges and depreciation charges.

Free cash flow: cash generated by the company during the reporting period
before dividend payments and changes in treasury stock.

Net cash: cash and cash equivalents after deducting financial debt and
borrowings.

ABOUT GROUPE BENETEAU

As the boating industry's global market leader, Groupe Beneteau, through its
Boat division's 10 brands, offers over 200 recreational boat models serving its
customers' diverse navigational needs and uses, from sailing to motorboating,
monohulls and catamarans.

Leading the European leisure homes market, the three brands from the Group's
Housing division offer a comprehensive range of leisure homes, lodges and pods
that combine eco-design with high standards of quality, comfort and
practicality.

With its international industrial capabilities and global sales network, the
Group employs 7,000 people, primarily in France, the US, Poland, Italy and
China.

FY 2016-2017 Group revenues : EUR 1208.3 M

Motorboat 47.5%
Sailboat 37.5%
Housing 15.0%

CONTACTS - GROUPE BENETEAU

INVESTORS AND PRESS CONTACT
Mirna Cieniewicz
m.cieniewicz@beneteau-group.com
Tel: +33 (0)2 51 26 88 50

SHAREHOLDER CONTACT
Yannick Coicaud-Thomas
y.coicaud.thomas@beneteau-group.com
Address: 16 bd de la Mer - CS 43319
85803 Saint Gilles-Croix-de-Vie Cedex - France

                            www.beneteau-group.com

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