Manitou Group — Earnings Release 2012

Aug 29, 2012

H1'12 Earnings: Good Progress in a Changing Environment

• H1'12 revenue of €672m up 20% vs. H1'11
• Operating profit of €31m vs. €25m (+22%)
• Net income of €21 vs. €15m (+40%)
• Net debt at €147m vs. €86m at end-2011, reflecting H1 ramp and engine pre-buy
• Dynamic adjustment of capacity and supply chain to reflect lower visibility
• Continuing efforts on refoundation
• FY'12 target of +10% revenue growth with 5% EBIT margin

Ancenis, August 29, 2012 – Jean-Christophe Giroux, Manitou President & Chief Executive Officer, declared: "H1 delivers good progress on our financial performance, and that's an accomplishment in today's economy. At the same time, that progress has been slower than expected, as margins get affected by a combination of new elements, either current or more structural.

On the current side, H1 registered some one-off costs due to the RTH leadtimes reduction effort, new product launches, and external events such as the Festival or Open Up. It also suffered from certain difficult supplier situations and overall negative purchasing variances. On the more structural side, we now face a fuller impact of new normative regulations, and need to accelerate our efforts to adapt to the new environment and industry realities.

Traditional cycles are now blurring into volatile and contrasted situations, but it does not impact our strategy nor our ambition to double our size -we just have to deploy greater flexibility and adapt to shifting horizons. And we are already adjusting our workforce and initiatives to match a possibly conservative demand plan for 2013, while sustaining all efforts to improve our operational performance."

	RTH	IMH	CE	Conso	Conso	Variance
€ in millions				H1'12	H1'11
Revenue	473	84	115	672	562	+20%
Gross profit	68	11	19	98	85	+15%
GP %	14.4%	13.3%	16.1%	14.5%	15.1%
Op. Profit	23	2	6	31	25	+22%
OP %	4.9%	1.9%	5.2%	4.6%	4.5%
Net Income	na	na	na	21	15	+40%
Net Debt				147	92	+60%
Net Equity				417	381	+9%
Gearing (%)				35%	24%
Working Cap				416	294	+41%

Divisional Review

• The Rough Terrain Handling (RTH) Division generated €473m of revenue in H1 2012, a 19% growth over H1 2011. Important efforts have been done in a difficult operational environment to reduce leadtimes and revisit processes. RTH is also affected by inflation on raw materials, the cost increase effects of the new engine regulation and a less favorable product mix. Enhanced by volume effects, the operation profit grew up to €23.1m, representing a margin of 4.9% vs. 5.2% in H1 2011.
• The Industrial Material Handling (IMH) Division posted revenue of €84m, a 14% growth over H1 2011. The launch of new MI range, the stabilization of Beaupreau site and the reinforcement of commercial organization are key steps to reinforce Manitou industrial offer after the announcement of Toyota partnership evolution in 2013. The operating result reached €1.6m representing a margin of 1.9% vs. 0.1% in June 2011.
• With revenue of €115m, the Compact Equipment (CE) Division posted a +27% growth over the H1 2011. Evolving in a more complex environment (European economy, engine regulation, raw material increase and exchange rate development) CE reinforced its industrial means to secure the business ramp-up and prepare the new Yanmar partnership launch. The operating result reached €6.0m representing a 5.2% margin vs. 0.5% in H1 2011.

New Appointment to Executive Committee

Effective September 1st, Fabrice Beslin will be appointed President, Industrial Material Handling Division, replacing Jean Louis Hervieu who is retiring. Fabrice Beslin has joined Manitou Group in 2005 and had been promoted IMH Deputy President a year ago to ensure a smooth transition. The Board of Directors has paid Jean-Louis Hervieu a special tribute for his contribution to the Manitou commercial and business franchise throughout 25 years.

2012 Outlook

Given a strong backlog at June 30, 2012, H2'12 revenue should be flat or slightly up vs. H2'11, confirming an overall 10% growth on a full year basis. Operating performance will be mainly driven by operational efficiency and suppliers' timeliness, to reach the expected 5% target.

Manitou, THE Material-Handling Reference, is headquartered in Ancenis (West of France). Manitou designs, assembles and distributes material-handling solutions for agriculture, construction and industry markets. Manitou reported in 2011 revenue of €1,131 million, of which two thirds outside France. Business is conducted under the Manitou, Gehl, Mustang, Loc and Edge trademarks, through 1,400 independent dealers in more than 120 countries. As of December 31, 2011, Manitou employed approximately 3,000 people of which 40% outside France.

Forthcoming event October 30, 2012 (post closing): Q3'12 Revenue

Corporate information is available at: www.manitou-group.com Shareholder information: communication.financiere@manitou.com

Listing codes:

ISIN: FR0000038606 • MNO: MTU • Reuter: MANP.PA • Bloomberg: MTU.FP Indexes: CAC Mid & Small, CAC Small, CAC All-Tradable, NEXT 150