Outlook for 2021
FY 2019-2020 earnings (16 months)
March 17, 2021
OUTLOOK FOR 2021 FY 2019-2020 EARNINGS (16 MONTHS)
- DISCLAIMER This presentation and all the supporting documents, including the related oral presentations and discussions (collectively the "Presentation"), have been prepared by BENETEAU SA (the "Company", and together with its subsidiaries and affiliates, the "Group"). By listening to the Presentation, by consulting it or consulting slides from the Presentation, you agree to the following.
- This Presentation does not constitute, and should not be constructed as, an offer to sell or the solicitation of an offer to purchase or subscribe for any securities of the Group in any jurisdiction.
- This Presentation may include forward-looking statements. Such statements refer in particular to the Group's present and future strategy, the growth of its operations and future events and objectives. Such statements may contain the words "anticipate", "believe", "intend", "estimate", "expect", "project", "plan" and other similar expressions. By their nature, forward-looking statements involve risks and uncertainties, which could cause the actual results and performance of the Group to be materially different from the future results and performance expressed or implied by such forward-looking statements. Such forward-looking statements are formulated exclusively on the date of this document and the Group makes no undertaking in any way to supplement them, modify them, update them or revise them, whether to reflect changes in the Group's expectations or changes relating to any events, conditions or circumstances on which such forward-looking statements are based.
OUTLOOK FOR 2021 FY 2019-2020 EARNINGS (16 MONTHS)
16-MONTH
- FINANCIAL YEAR On August 28, 2020, BENETEAU SA's Extraordinary General Meeting decided to modify its financial year start and end dates, previously set respectively as September 1 of one year and August 31 of the following year, to set them respectively as January 1 and December 31 of each year.
- The Extraordinary General Meeting decided that the financial year that began on September 1, 2019 would cover a 16-month period. It therefore ended on December 31, 2020.
Jérôme de Metz Chairman and CEO
4
STRONGER INTEREST IN RECREATIONAL BOAT USE
MOTOR: CONTINUED STRONG DEMAND
Demand for dayboating (under 40 feet) is expected to continue to progress in 2021. Alongside this, more and more customers are looking for a Real Estate on the Water experience (boats over 40 feet).
- Jeanneau, Beneteau, Four Winns, Wellcraft
-
Continued strong demand
-
10 new models launched in 2021 Prestige, Beneteau, Lagoon, Jeanneau, Delphia Dynamic market 4 new models launched in 2021
SAILING: CONTRASTING MARKET BETWEEN RETAIL AND CHARTER
Still robust demand among retail customers.
GROUP'S POSITION AT MARCH 17, 2021
FLEETS: BUSINESS WITH STRONG POTENTIAL AFFECTED BY THE HEALTH CRISIS
- Longstanding, very dynamic component within the Sailing segments
- Affected by the air transport and travel restrictions
- Significant potential for growth over the medium term
- Upturn expected from 2022
GROUP'S POSITION AT MARCH 17, 2021
CONTINUED IMPLEMENTATION OF THE "LET'S GO BEYOND!" STRATEGIC PLAN
In line with the Let's Go Beyond! plan, the teams are focusing their activities on 3 core areas:
Product offering:
- Developing the complementary and innovative offering of the 4 leading brands (Beneteau, Jeanneau, Prestige, Lagoon)
- Overhauling the lineup of the 4 challenger brands (Four Winns, Wellcraft, Delphia, Excess)
Connected boats:
Rolling out the solutions to improve the on-board experience and further enhance the services offered by dealers
Strengthening ecological solutions:
Autumn 2021: first sailing and motorboat models with electric propulsion
GRADUAL UPTURN EXPECTED FOR THE HOUSING BUSINESS
The Housing business expects demand from the outdoor hospitality sector to pick up from May 2021:
- Resumption of investment in leisure home fleets
- Robust business development in Northern Europe
GROUP'S POSITION AT MARCH 17, 2021
GROUP'S CONSOLIDATED BUSINESS IN 2021*
Boat revenues
- Excluding fleets: expected growth of over 5%
- Motor segment: +10% at constant exchange rates
- Sailing segment: +2% for retail sales
- Fleets: -50% forecast
Globally, Boat business expected to be virtually stable in 2021
Housing revenues
Expected growth of 5% to 6%
Group revenues expected to be stable in 2021
* Compared with 2020 pro forma
GROUP'S POSITION AT MARCH 17, 2021
INCOME FROM ORDINARY OPERATIONS GROWTH IN 2021
Consolidated income from ordinary operations expected to increase
- Thanks to the capacity adaptation and fixed cost reduction measures rolled out in 2020,
- Including the consequences of the cyberattack from February 19, 2021, which led to a considerable slowdown in production activities for one month,
- 2021 income from ordinary operations expected to be up +60% vs. pro forma 2020 figure of €27.5m.
Group net cash
Positive position expected at end-December 2021, although at a seasonal low
Bruno Thivoyon Group Chief Financial Officer
13
AT DECEMBER 31, 2020
OVERVIEW OF THE CONSOLIDATED ACCOUNTS AT DECEMBER 31, 2020 (16 MONTHS)
EBIT RESILIENT, SIGNIFICANT IMPROVEMENT IN CASH POSITION
GROUP
GROUP
NON
NET INCOME
REVENUES
EBITDA
CURRENT
INCOME FROM ORD.
GROUP SHARE
OPERATIONS |
€1,344.4m
-15.1%
(reported data) |
€93m
6.9% of revenues
(reported data) |
-€8.1m
-0.6% of revenues
(reported data) |
-€78.5m |
-€80.9m |
€93.4m |
|
|
|
|
|
|
NET
CASH* |
- Revenues* (16 months) higher than forecasts for the last four months of 2020 (-21.2% vs forecasts from Oct 27, 2020: -25%/-30%) thanks to the upturn in motorboat sales
- EBITDA margin* close to 7% and not particularly representative following a financial year that exceptionally included two fourmonth periods with low levels of revenues and traditionally negative income from ordinary operations
- Income from ordinary operations with a limited contraction for the last four months of 2020 (-€3m vs last four months of 2019) despite the drop in business, thanks to the adaptation measures
rolled out and the now positive change in depreciation
- Net income (Group share) including €78.5m of non-current items (vs forecasts from Oct 27, 2020: €75/90m) reflecting the capacity adaptation measures, the optimization of the cost structure and the realignment of the product offering
- Positive net cash* of €93.4m, with a significant improvement (+€171m vs December 2019) supported by the reduction of inventory and rationalization of investments
14 * See definition in the financial glossary
4-MONTH AND 16-MONTH REVENUES
|
|
|
Change |
|
|
| €m |
|
2019 /
2020 |
2018 /
2019 |
Reported
data |
Constant
exchange
rates |
SEP/DEC
2020 |
REVENUES |
195.3 |
247.8 |
-21.2% |
-19% |
| 4 |
Boats |
175.8 |
207.5 |
-15.2% |
-12.6% |
| MONTHS |
Housing |
19.4 |
40.3 |
-51.8% |
-51.8% |
|
REVENUES |
1,344.4 |
1,584 |
-15.1% |
-15% |
16
MONTHS |
Boats |
1,151.2 |
1,351.1 |
-14.8% |
-14.7% |
|
Housing |
193.3 |
232.8 |
-17% |
-17% |
REVENUES FOR THE LAST FOUR MONTHS OF 2020:
- Downturn less marked than expected (-21.2% vs forecasts from Oct 27, 2020: -25/-30%)
- Contraction concentrated on fleets and leisure homes
- Strong demand for motorboats, particularly dayboating
FINANCIAL RESULTS AT DECEMBER 31, 2020 | March 17, 2021
|
|
|
|
|
Change |
| €m |
|
2019 /
2020 |
2018 /
2019 |
Reported
data |
Constant
exchange
rates |
|
BOATS |
175.8 |
207.5 |
-15.2% |
-12.6% |
| SEP/DEC |
Europe |
75 |
68.3 |
+9.9% |
+10.2% |
2020
4 |
Americas |
62.8 |
63.9 |
-1.8% |
6% |
| MONTHS |
Other regions |
22.9 |
23.1 |
-0.7% |
-0.1% |
|
Fleets |
15.1 |
52.2 |
-71.1% |
-70.9% |
|
BOATS |
1,151.2 |
1,351.1 |
-14.8% |
-14.7% |
|
Europe |
577.8 |
656.8 |
-12% |
-12% |
16
MONTHS |
Americas |
313.5 |
390.8 |
-19.8% |
-19.5% |
|
Other regions |
106.2 |
122.2 |
-13.1% |
-13.1% |
|
Fleets |
153.7 |
181.3 |
-
15.2% |
-15.2% |
FOR THE LAST FOUR MONTHS OF 2020:
- Revenues excluding fleets up +3.5% based on reported data (+6.9% at constant exchange rates)
- Strong sales growth in Europe and North America at constant exchange rates
- Good performance by the American brands on the dayboating segment
- Business stable in the other regions around the world
- Contraction in sales concentrated on fleets (-70.9% at constant exchange rates after +80.6% for the last four months of 2019)
HOUSING BUSINESS REVIEW
| HOUSING BUSINESS REVIEW |
|
|
|
|
|
|
|
|
|
|
Change |
|
|
| €m |
|
2019 /
2020 |
2018 /
2019 |
Reported
data |
|
|
| SEP/DEC |
HOUSING |
19.4 |
40.3 |
-51.8% |
|
|
| 2020 |
France |
16.3 |
34.6 |
-52.9% |
|
|
| 4 MONTHS |
Export |
3.1 |
5.7 |
-45.3% |
|
|
|
HOUSING |
193.3 |
232.8 |
-17% |
|
|
| 16 MONTHS |
France |
159.2 |
194.1 |
-18% |
|
|
|
Export |
34.1 |
38.7 |
-12% |
|
|
FOR THE LAST FOUR MONTHS OF 2020:
- Significant drop in sales on the French market and for export
- The consequences of the lockdown in spring 2020 and the effects of the health crisis encouraged many campsites to defer their leisure home fleet investments by one season.
- Upturn expected in 2021
KEY FIGURES FOR THE LAST FOUR MONTHS OF 2020
| €m |
SEP/DEC 2020
Reported data |
SEP/DEC 2019
Pro forma |
|
| GROUP REVENUES |
195.2 |
247.5 |
|
-
Boats
-
Housing |
175.8
19.4 |
207.2
40.3 |
|
GROUP EBITDA
%
EBITDA / revenues |
-17.4
-8.9% |
-6.5
-2.6% |
|
-
Boats
-
Housing |
-11.4
-6 |
-8.7
2.2 |
|
GROUP INCOME FROM
ORDINARY OPERATIONS
% income from ordinary
operations / revenues |
-38.1
-19.5% |
-35.2
-14.2% |
|
-
Boats
-
Housing |
-30.1
-8 |
-35.2
0 |
|
Income from ordinary operations
Good performance despite the contraction in business during a traditionally negative four-month period (- €3.2m vs same four months in 2019) Loss of business* -€17.7m Adaptation of indirect costs** +€11.4m
| Loss of business* |
-€17.7m |
|
|
- -6.5
- Reduction in depreciation +€3.3m
* Boats -€9.9m and Housing -€7.8m
** Including the closure of the Marion site (USA), the reduction in expenses for shows, and the reduction in profit-sharing costs.
FINANCIAL RESULTS AT DECEMBER 31, 2020 | March 17, 2021
CONSOLIDATED ACCOUNTS (16 MONTHS) AND PRO FORMA 2020 ACCOUNTS
| €m |
16
MONTHS 2020*
(SEP
2019/DEC 2020) |
12
MONTHS 2018-2019*
(SEP 2018/AUG 2019) |
12 MONTHS PRO
FORMA
(JAN/DEC 2020) |
|
2019-2020 16-MONTH ACCOUNTS |
| REVENUES |
1344.4 |
1336.2 |
1096.6 |
Revenues |
€1,344.4m |
-
Boats
-
Housing |
1151.1
193.3 |
1143.7
192.5 |
943.6
153 |
EBITDA
Income from ordinary |
€93m |
GROUP EBITDA
%
EBITDA / revenues |
93
6.9% |
162
12.1% |
99.9
9.1% |
operations |
-€8.1m
PRO FORMA 12-MONTH ACCOUNTS |
-
Boats
-
Housing |
82.9
10.1 |
143.5
18.5 |
92
7.9 |
Revenues |
€1,096.6m |
GROUP INCOME FROM
ORDINARY OPERATIONS
% income from ordinary
operations / revenues |
-8.1
-0.6% |
82
6.1% |
27.5
2.5% |
EBITDA
Income from ordinary
operations |
€99.9m
€27.5m |
-
Boats
-
Housing |
-10.8
2.7 |
68.9
13.1 |
24.7
2.8 |
|
|
| NON-CURRENT |
-78.5 |
-4.2 |
|
|
|
-
Boats
-
Housing |
-75.1
-3.4 |
-3.7
-0.5 |
|
|
|
NET INCOME (GROUP SHARE)
NET EARNINGS PER SHARE |
-80.9
-0.98 |
49.5
0.60 |
|
|
|
FREE CASH FLOW
NET CASH |
25
93.4 |
-6.5
97 |
|
* Based on reported data |
|
NET INCOME FOR FY 2019-2020 (16 MONTHS)
FINANCIAL RESULTS AT DECEMBER 31, 2020 March 17, 2021
NET INCOME FOR FY 2019-2020 (16 MONTHS) |
|
|
|
|
|
|
| €m |
16
MONTHS 2020*
(SEP
2019/DEC 2020) |
12
MONTHS 2018-2019*
(SEP 2018/AUG 2019) |
|
|
|
|
INCOME FROM ORDINARY
OPERATIONS |
-8.1 |
82 |
|
|
|
|
| Other operating expenses |
-78.5 |
-4.2 |
|
|
|
|
| EBIT |
-86.6 |
77.9 |
|
|
|
|
Financial income and
expenses
Associates
Corporate income tax |
-5.4
1.7
8.4 |
-6.9
4.8
-27.6 |
|
|
|
|
NET INCOME
NET INCOME (GROUP SHARE) |
-81.9
-80.9 |
48.2
49.5 |
|
|
|
|
| Net earnings per share |
-0.98 |
0.60 |
|
|
|
|
|
|
|
|
|
|
|
OTHER OPERATING EXPENSES
- €31.1m of costs relating to the measures to adapt the cost structure and production capacity, in France and internationally
- €47.3m of impairments of assets (tangible or intangible) and inventories, in line with the rationalization of the product offering based on the strategic plan -6.9 4.8
NET INCOME (GROUP SHARE): -€80.9m 48.2
A proposal to not pay a dividend will be submitted at the Combined General Meeting on June 11, 2021.
* Based on reported data
FINANCIAL RESULTS AT DECEMBER 31, 2020 | March 17, 2021 NET CASH POSITION – End of period
CASH POSITION
€171M IMPROVEMENT IN NET CASH AT DECEMBER 31, 2020 (vs Dec 31, 2019):
€171M IMPROVEMENT IN NET CASH
AT DECEMBER 31, 2020 (vs Dec 31, 2019): |
|
| Reduction of inventory |
€119m |
| Improvement in working capital |
€40m |
| Continued scaling back of investments |
€26m (-33%) |
| Dividends paid in February 2020 |
-€19m |
|
|
€93.4M OF NET CASH AT END-DECEMBER 2020
FINANCIAL RESULTS AT DECEMBER 31, 2020 | March 17, 2021
CASH POSITION
| FINANCIAL RESULTS AT DECEMBER 31, 2020 March 17, 2021 |
|
|
|
| CASH POSITION |
|
|
|
| €m |
16
MONTHS 2020*
(SEP
2019/DEC 2020) |
12
MONTHS 2018-2019*
(SEP 2018/AUG 2019) |
|
| OPERATING CASH FLOW |
71.7 |
125.1 |
|
Net cash flow from
investments
Change in working capital
Other |
-72.5
25.8
0 |
-81.8
-49.8
0 |
|
| FREE CASH FLOW |
25 |
-6.5 |
|
Dividends
Changes in scope |
-18.9
4 |
-21.4
-33.4 |
|
| CHANGE IN CASH POSITION |
5.7 |
-64.9 |
|
Opening net cash position
Opening adjustment
Closing net cash position |
97
-9.4
93.4 |
161.9
0
97 |
|
NET CASH STABLE OVER 16 MONTHS (-€3.6M):
- Despite a €9m increase linked to the application of IFRS 16 for leases
- Including €19m of dividend payments
- €25m of free cash flow for the period despite the change of the year-end date -49.8 0
* Based on reported data
Next date
MAY 11, 2021
- 2021 first-quarter revenues
- Press release followed by a conference call
APPENDICES – March 17, 2021 FINANCIAL GLOSSARY
AT CONSTANT EXCHANGE RATES Change calculated based on figures for the period from September 1, 2019 to December 31, 2020 converted at the exchange rate for FY 2018-19. REVENUES In connection with changes to its commercial processes launched during the first half of 2020, Groupe
- Beneteau has changed the invoicing date for boats produced in Europe, previously based on when boats were made available at the yard, while invoices are now issued on the date when boats are shipped to dealer clients, consistent with the recognition of revenues. This change is effective at the end of the interim period at August 31, 2020.
- EBITDA Earnings before interest, taxes, depreciation and amortization, and IFRS 2 and IAS 19 adjustments following IFRS GAAP, i.e. income from ordinary operations restated for allocation / reversal of provisions for liabilities and charges, depreciation charges and IFRS GAAP (IFRS 2 and IAS 19).
- FREE CASH FLOW Cash generated by the company during the reporting period before dividend payments, changes in treasury stock and the impact of changes in scope.
- NET CASH Cash and cash equivalents after deducting financial debt and borrowings, excluding financial debt with floor plan-related financing organizations.
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