Bénéteau

Investor Presentation • Jun 7, 2017

INDUSTRY FOCUS: PRODUCT DEVELOPMENT

Renaud Tourte Product Development and Innovation Director, Boat Division

• 1. AN INNOVATIVE GROUP
• 1. R&D MANAGEMENT: OBJECTIVES AND TARGETS
• 1. DESIGN TEAM TRANSFORMATION
• 1. ACCELERATING TIME TO MARKET AND COST TO MARKET

1. AN INNOVATIVE GROUP

"INNOVATION, WHAT DIFFERENTIATES A LEADER FROM A FOLLOWER"

• Imagining and developing tomorrow's innovations thanks to an innovation process
• Offering more services for customers:
• ➢ Ease-of-use and simplicity ➢ Stronger performance levels
• ➢ Comfort on board

OVERVIEW OF CURRENT INNOVATIONS

OVERVIEW OF CURRENT INNOVATIONS

CONNECTED BOAT

2. R&D MANAGEMENT: OBJECTIVES AND TARGETS

INTEGRATED R&D MANAGEMENT

5 indicators / ratios	2017	2020 target
Revenues / research time based on model, range, brand	€1800	€2400
R&D headcount / Group headcount	5.7%	6.5 to 7%
Research time / innovation time	19% (high)	15 to 20%
Supervisor / supervised	2.5% (low)	2.5%
Subcontracting (ratio / panel)	25% / 9 companies	20% / 3 companies
2 measures
Design team transformation (point 3)	Acceleration of Time to Market and Cost to Market (point 4) 9

1. DESIGN TEAM TRANSFORMATION

DESIGN TEAM TRANSFORMATION UNDERWAY

DOWNSTREAM: Zero-defect transition from prototype to large-scale production

UPSTREAM: Robust and reliable pre-project management

UPSTREAM – FEASIBILITY –

PRE-PROJECT DEVELOPMENT AND LAUNCH STANDARD PRODUCTION PHASES

Upstream management for Bénéteau sailing and motorboats: 3 people

Upstream management for Jeanneau sailing and motorboats: 3 people

Upstream management for multihulls: 1 person

Pooling of sailboat and motorboat services

Pooling of designer-technician team

Pooling of sailing and motorboat services: Architecture, Calculations, Digital Modeling

EXPECTED RESULTS WITH THE TRANSFORMATION

From an industrial perspective	From a financial perspective
Improving product and process quality	Reducing costs linked to non-compliance cases and customer complaints
Pooling resources	Saving time and reducing costs
Raising standards for parts and processes	Reducing production costs
Improving workplace relations	Motivating employees

4. ACCELERATING TIME TO MARKET AND COST TO MARKET

3 KEY AREAS FOR ACTION

STANDARD COMPONENTS AND PLATFORM STRATEGY

ENSURING THE PROFITABILITY OF PROJECTS

TIME TO MARKET / COST TO MARKET INDICATORS

ACCELERATING TIME TO MARKET AND COST TO MARKET 4

STANDARD COMPONENTS AND PLATFORM STRATEGY

ENSURING THE PROFITABILITY OF PROJECTS

OBJECTIVE: Facilitate investment decisions while limiting costs

ACCELERATING TIME TO MARKET AND COST TO MARKET 4

INDICATORS FOR TIME TO MARKET / COST TO MARKET

GAINS	●	20% reduction in the number of design team hours
	●	Reduction in the duration in months

Current load curve versus target

17 Number of design team hours / months of development

ACCELERATING TIME TO MARKET AND COST TO MARKET 4

CONCLUSION

High-performance R&D must have several qualities:

• Being visionary
• Creating
• Transferring / creating value

R&D performance = People x Process x Product