Bénéteau

Investor Presentation • Jun 7, 2017

INDUSTRY FOCUS: IMPROVING INDUSTRIAL EFFICIENCY

Eric Stalin Operations Director, Boat Division

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1. INDUSTRY CHALLENGES 2. OPERATIONAL PERFORMANCE

INDUSTRY CHALLENGES

Constraints linked to market changes

Changing market trends

Rapid change in volumes for each model

Differentiation of models (versions, options)

Adapting or targeted increase in capacity Flexibility

Industry's responses

Flexibility

Insourcing of strategic activities: composites (including tools), wood and assembly

Outsourcing of equipment

Unique technical research and engineering expertise: BERI 21

INDUSTRIAL OPTIMIZATION CRITERIA

Criteria

Saturation of existing capacity

Geographical positioning

Product cost price

Development timeframes

Investment

Specific engineering expertise

ILLUSTRATION 1: ADAPTING THE PLANTS' CAPACITY

Need	Responding to strong growth in demand for catamarans +64% growth for 2016-2020
Response	Adapting existing facilities
Case	Transforming a sailing yacht plant into a catamaran facility

ILLUSTRATION 2: TARGETED INCREASE IN PLANTS' CAPACITY

Need	Responding to strong growth in demand for outboard units +57% growth for 2016-2020
Response	Rolling out a targeted increase in the facility's capacity
Case	Increasing capacity for an outboard facility

EXTENDING THE OSTRODA SITE IN POLAND

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PROGRESS WITH THE WORK

ILLUSTRATION 3: FLEXIBLE FACILITIES

Need	Responding to the change in volumes and the need for customization
Response	Ensuring the flexibility and convergence of methods
Case	Transitioning from a single line to multiple assembly lines

FACILITY WITH SINGLE ASSEMBLY LINE

FACILITY WITH TWO ASSEMBLY LINES

2. OPERATIONAL PERFORMANCE

Jean-François San Carlos

Industrial Operations Director, Boat Division

STAKES INVOLVED WITH OPERATIONAL PERFORMANCE

Target

• ➢ Standard cost price
• ➢ Actual cost price

Gain 10 efficiency points vs standard by 2020

Plants contributing to the "Transform To Perform" plan

2 OPERATIONAL PERFORMANCE

HOW TO ACHIEVE THIS EFFICIENCY GOAL?

"PLANT OF THE FUTURE" PROJECT

2 OPERATIONAL PERFORMANCE

WHAT ACTIONS HAVE BEEN LAUNCHED TO DATE?

EXAMPLES OF SUCCESSFUL 5S

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FLOW MANAGEMENT FACED WITH THE COMPLEXITY OF WOOD ACTIVITIES

OBJECTIVE: eliminate missing parts and disruptions for internal flows

SHARED CULTURE

growth >80 MODELS / >15 WOOD VARIETIES

Profitable

+50 combinations of flows (sawing, veneering, grooving, drilling, varnishing, upholstery, assembly, etc.)

Work-in-progress: 20,000 parts

7,000 parts / day in 10 batches

≃ 100 parts not delivered to date

Production lead-time: 3 days

ILLUSTRATIONS OF FLOW MANAGEMENT

Visual management

Reaction rule

flux K
NIVERS! 1
STATISTICS	Charles ______ --	-- -

Face to face

MANAGING CONTINGENCIES TO GET THINGS RIGHT THE FIRST TIME

TOOL	Standards of work
OBJECTIVES	● Getting things right the first time
	● De facto eliminating all contingencies
	● Respecting standard production times

KNOWING HOW TO ANALYZE ISSUES TO ERADICATE THEM

2 OPERATIONAL PERFORMANCE

WHAT HAVE BEEN THE FIRST RESULTS?

SUSTAINABLE QUICK WINS

In just 4 months:

• ▷ Zero missing parts for model flow
• ▷ Peace of mind
• ▷ Safe workplace
• ▷ Efficiency

Monitoring of missing parts for K unit

SUSTAINABLE QUICK WINS

GAINS: For 1 sector ("open-air"):

2020 TARGET: Reduce production times by 10 to 15%

IN 8 WEEKS: 60% reduction in production time on test units

i.e. -4.5% of total time spent

CONCLUSION

Improving operational performance involves engaging all employees in the facilities

"Plant of the Future" project supported by		● Participatory management and independence ● Lean manufacturing and modernization ● Skills development and management
Target	●	Achieve +1.5% increase in income from ordinary operations, with nearly €20 M by 2020
	●	Plants contributing to the "Transform To Perform" plan