Bénéteau — Investor Presentation 2017

Jun 7, 2017

Capital Market Day

Bordeaux, France – June 7, 2017

STRATEGIC CONTEXT

Hervé Gastinel Chief Executive Officer

• 1. RENEWAL AND REGENERATION
• 1. "TRANSFORM TO PERFORM": 2017-2020 PLAN

3

• 1. 2017-2020 FINANCIALS
• 1. CONCLUSIONS AND OUTLOOK

4

BOAT INDUSTRY IN A GROWTH CYCLE

STRENGTHS WEAKNESSES

• ➢ Markets picking up again
• ➢ Dynamic segments

• ➢ Established players

• ➢ Sector deeply affected by the crisis

• ➢ Fragmentation of the market and operators

OPPORTUNITIES THREATS

• ➢ Growth in developed markets
• ➢ Demand for additional services
• ➢ Evolving consumption trends

• ➢ Digital transformation

• ➢ Volatile demand

• ➢ Irregular changes in emerging markets
• ➢ Generational transition for customers
• ➢ Competition between leisure activities

EFFECTIVELY POSITIONED GROUP

• ➢ Stable shareholding structure
• ➢ Solid balance sheet
• ➢ Sustained investment policy
• ➢ Outstanding distribution networks
• ➢ Portfolio of renowned brands
• ➢ Unique, diversified range of complementary products
• ➢ Market shares
• ➢ Global leadership for sailing and multihulls
• ➢ Successful development of motorboats
• ➢ Dynamic segments

STRENGTHS OPPORTUNITIES

• ➢ New leadership team
• ➢ Global transformation plan
• ➢ Strong positions across the various brands
• ➢ Flexible and adaptable industrial facilities
• ➢ Digital strategy

NEW GOVERNANCE IN PLACE

Leadership structures

NEW LEADERSHIP TEAM EFFECTIVELY IN PLACE

COMMITTEE

COMMITTEE

MANAGEMENT TEAM FURTHER STRENGTHENED KEY RECRUITMENTS

Renaud Tourte Product Development and Innovation Director September 2016 - 20 years auto industry Europe and Asia

François Rodrigues Commercial Development Director May 2017 - 25 years boat industry Europe and Asia

Jean-François San Carlos Industrial Operations Director December 2016 - 20 years auto and electrical goods industries International

Michel Bussière Quality Director July 2016 - 25 years aerospace industry France

Recruitment underway Digital Transformation and Services Platform Director July 2017 - 10 years consulting International

Mirna Cieniewicz Corporate and Financial Communications Director August 2016 - 15 years boat industry Europe

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2020 VISION FOR GROUPE BÉNÉTEAU

POSITIONING	Leadership for sailing yachts and motorboats
PRODUCT RANGE	Innovative, rationalized offering
SERVICES	Wider range of services
DIGITAL	Integrated into commercial and industrial activities
INDUSTRY	World Class Manufacturing

1. 2017 - 2020 PLAN: TRANSFORM TO PERFORM

ENSURE SUSTAINABLE AND PROFITABLE GROWTH

11 Note: the plan is global and only the Boat Division scope is presented here

PROFITABLE GROWTH

REDUCING DEVELOPMENT COSTS			IMPROVING OPERATIONAL EFFICIENCY
Reorganizing product development and R&D	Ensuring a more selective approach to projects for new products	Plant of the Future	Optimizing industrial facilities
Further strengthening upstream phases for development projects	Financial discipline	Safety	Flexible, multifunctional facilities
Optimizing and improving the sharing of resources between brands	Developing shared platforms + standardizing components	Quality	Producing as close as possible to areas of consumption
Ensuring the reliability of industrialization phases		Efficiency (labor and materials)
Revitalizing our capacity for innovation		Supply chain and procurement	13

TRANSFORMATION PLAN OBJECTIVES

	AT AUG 31, 2016	APRIL 2017 GUIDANCE	2020 TARGET
Revenues	€1.1 bn	+10% revenue growth	≃ €1.4 bn ≃ 6% AAGR (vs 2016)
Income from ordinary operations	€43.6 M	€63 to 68 M	≃ €115 M
% income from ordinary operations	4.0%		Target of 8 to 8.5%
Investments	€68 M	Around +30%	≃ €75 M / year
Free cash-flow	€70 M	€200 to 250 M over 2017/2020
Net earnings per share	€0.30 / share	> 3 X –	higher than €1.00 / share

Christophe Caudrelier Management Board member, Group Chief Financial Officer

GROUP 2017-2020 FINANCIAL TARGETS for each division

DIVISION	AAGR FOR REVENUES 2016/2020	TARGET FOR INCOME FROM ORDINARY OPERATIONS	PERFORMANCE DRIVERS
Boats	≃ 6.2%	8 to 8.5%	Product plan Operational efficiency Optimization of sales and support costs
Housing	≃ 3.5%	≃ 8%	Operational turnaround for Leisure Homes Shutdown of Residential Housing

BOAT DIVISION

2017-2020 FINANCIAL TARGETS

	AT AUG 31, 2016	2020 TARGET
Revenues	€910.6 M	≃ €1,200 M ≃ 6.2% AAGR
Income from ordinary operations	€46 M	≃ €100 M
% income from ordinary operations	5.10%	8 to 8.5%
Investments	€62 M	€70 M / year

BOAT DIVISION CHANGE IN REVENUES

Americas driving growth More balanced regional breakdown

• Improving efficiency
• Optimizing industrial capabilities
• Optimizing sales and support costs

FOCUS 1: IMPROVING EFFICIENCY Plant of the Future

+1 point income from ordinary operations

LEAN MANUFACTURING

3 FINANCIALS

SKILLS DEVELOPMENT

PARTICIPATORY MANAGEMENT

+0.5 points income from ordinary operations

OPTIMIZATION OF SITES

3 FINANCIALS

LEAN MANUFACTURING

CAPACITY INVESTMENTS

Ratio % production cost / revenue

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DRIVERS FOR IMPROVING THE MARGIN - BOAT DIVISION

• Adjusted for non-recurring items
• Improving efficiency
• Optimizing industrial capabilities
• Optimizing sales and support costs
• Other: changes in the product mix

HOUSING DIVISION 2017-2020 FINANCIAL TARGETS

	At Aug 31, 2016	2020 target
Revenues	€172.9 M	≃ €200 M
Leisure Homes Residential Housing	€160.8 M €12.1 M	≃ €200 M ≃ 5.6% AAGR n/a
Income from ordinary operations	-€2.4 M	≃ €15 M
Leisure Homes Residential Housing	€0.8 M -€3.2 M	≃ €15 M n/a
% income from ordinary operations / revenues	-1.4%	≃ 8%
Leisure Homes Residential Housing	0.5% n/s	≃ 8% n/a
Investments	€6 M	≃ €6 M / year

OUTLOOK FOR THE GROUP 2017-2020

• Outpacing market growth: AAGR of 6%
• Target margin within 3 years: 8 to 8.5% of income from ordinary operations
• Optimization of free cash-flow generation: €200 to 250 million

GROUP BEING TRANSFORMED

TRANSFORM TO PERFORM