February 8, 2018

Financial information meeting 2018

2017-2018 trends

- Consolidated revenue growth of 6% to 8% (reported data) and of 8% to 10% (constant exchange rates)

- Strong progress with Group income from ordinary operations, ahead of schedule with the Group's development plan Operating margin rate stable after factoring in the exchange effect

- Continued investments to capture market growth Transform to Perform plan

Transform to Perform Plan

Good operational progress with the plan, making it possible to:

- Respond to the strong market upturn

- Achieve operational performance gains against a backdrop of product plan accelerated renewal 

During its financial information meeting, held on February 7, 2018 in Paris (France), Groupe Beneteau presented its full-year forecasts for 2017-18, as well as the progress made with its Transform to Perform strategic plan, enabling it to continue with its sustainable and profitable growth.

The global recreational boat market (scope covered by the Group) shows positive trends, with estimated growth of +3% in revenues and around +2% in volumes.

For FY 2017-18, the orders recorded at December 31, 2017 are up +23.4% from the order book for the same period last year. This progress reflects +25.1% growth for the sailboat segment and +21.9% for the motorboat segment. Full-year revenue growth for the Boat Division is expected to reach +5.5% to +7.5%, outpacing the markets.

For the 2017-18 season, the Group’s 10 brands are launching a total of 38 new models (vs 29 new models last season), effectively aligned with demand from growing market segments (incl. multihull sailing, outboard, large units).

The Group is continuing to ramp up the development of new products to capture market growth. The current financial year will see the completion of the main capacity investments for multihull and outboard production. 

The French leisure homes market, on which the Housing Division generates 85% of its revenues, is dynamic, with estimated growth of +12% for revenues and around +10% for volumes. 

For FY 2017-18, the orders in units recorded at December 31, 2017 came in +11.3% higher than the order book for the same period last year. This progress has been driven by +12.1% growth in units for the French market and +6.8% in units for the European export market (with a dynamic market in Italy, where the Division has a production site).

The Housing Division is forecasting full-year revenue growth of between +6% and +8%. Revenue growth is supported by the Leisure Homes activity’s growth (+11% to +13%) against a backdrop of buoyant environment and market share gains in France. The shutdown of the Residential Housing business and the completion of the projects underway are expected to be finalized under good conditions before the end of the year. 

The Transform to Perform plan is enabling the Group to respond to the strong upturn in the market, in addition to outpacing market growth in its two business lines - Boats and Leisure Homes - and further strengthening operational performance, while managing the growing complexity of the product plan.

To plan ahead for the generational transition and ensure the successful transfer of skills, the Group has been rolling out a plan to recruit 500 permanent staff since September 1, 2017, with one third of these positions to replace staff scheduled to retire within the next two years. More than 270 recruitments have been completed and the Group is confident that it will be able to fill these positions

With the development of new products ramping up to capture market growth and the completion of the industrial plan further strengthening production capacity, the Group’s investments are up +20% from the previous year’s figure of €78.8m.

Revenue growth is expected to come in at +6% to +8% (reported data), with +8% to +10% at constant exchange rates.

The Group’s income from ordinary operations is expected to make strong progress, coming in ahead of schedule with the Transform to Perform 2020 strategic plan. The rate of income from ordinary operations is expected to be stable on a reported basis. Its growth is being penalized by an unfavorable exchange rate effect for around €10M. A series of measures have been adopted to minimize this effect. The return to employee profit-sharing for the Group’s main subsidiary, after clearing the losses carried forward, is integrated into income from ordinary operations for FY 2017-18 for around €5.5M, one year in advance. This element had already been planned for in and does not affect the target announced, with 8% to 8.5% for income from ordinary operations in 2020.

The presentation from the financial information meeting is available on the Groupe Beneteau website. 

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

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