Manitou Group — Earnings Release 2013

Mar 10, 2014

Manitou: 2013 Earnings

• FY'13 revenue of €1,176m, -7% vs. 2012, -1% at constant scope*
• EBITDA** of €50m (4.3% of revenue) vs. €76m (6.0%) in 2012
• Recurring operating profit of €21m (1.8% of revenue) vs. €45m (3.7%) in 2012
• Negative variance of €15m on taxes
• Net income of €1m vs. €45m in 2012, no dividend distribution for 2014
• Net debt of €85m (gearing 20%) vs. €103m in 2012

Ancenis, March 10, 2014 - The Board of Directors of Manitou BF met today to approve the financial statements for the year 2013.

Michel Denis, President and CEO stated: "The results in 2013 reflect the decrease in sales of 7%, of which, be reminded, 4% is related to the termination of Toyota distribution and 2% to changes in the value of the euro. In 2013, the Group's results were impacted by an increasingly competitive environment exacerbated by pressure on margins related to adaptation to new engine standards, as well as the impact of currencies. Launched in March, the evolutions in governance and the refocusing of the group on operational issues and profitability have partially offset these external pressures, however, not totally compensated for them. The recurring operating profit of H2 is a clear improvement compared to H1. The group closed this difficult year with a net income of €0.7m.

To reverse this trend, the group will strengthen its commercial development, optimize its margins and lower its breakeven point. The stakes are high, but a lot of work has already been achieved towards that goal in the last year. I'm absolutely convinced that we're already on the path towards further success. Our leadership, the confidence of our network, of our customers, the reputation of our machines and the motivation of our teams are key assets upon which we can rely to succeed."

	RTH	IMH	CE	Total	RTH	IMH	CE	Total
in millions of €	2012	2012	2012	2012	2013	2013	2013	2013	Var.
Revenue	856.6	162.9	245.2	1,264.8	810.5	123.8	242.1	1,176.4	-7%
Gross profit	115.2	22.0	40.4	177.6	105.3	14.1	43.3	162.8	-8%
Gross profit %	13.4%	13.5%	16.5%	14.0%	13.0%	11.4%	17.9%	13.8%
Recur. OP	27.6	2.6	15.1	45.3	12.1	-3.8	13.0	21.2	-53%
Recur. OP %	3.2%	1.6%	6.1%	3.6%	1.5%	-3.1%	5.4%	1.8%
OP	27.6	3.7	15.1	46.3	7.9	-3.8	12.3	16.4
Taxes				+8.7				-7.4
Net income	na	na	na	45.4	na	na	na	0.7	-98%
Net Debt				103.1				84.5	-18%
Net Equity				435.4				413.2	-5%
Gearing (%)				24%				20%
Working Cap.				378.4				347.2	-8%

Audit procedures performed: Audit report related to certification during an issuance

* Comparable: at constant exchange rates and scope (Toyota)

** EBITDA: earnings before interest, taxes depreciation and amortization

Divisional Review

• The Rough Terrain Handling division (RTH) generated €810.5m of revenue in 2013 vs. €856.6m in 2012, a decrease of 5% (-4% at constant exchange rates). The year was highlighted by increased pressure on margins generated by the changes in engine standards, the concentration of the construction business towards rental customers and the revaluation of the euro against other currencies. The work achieved on operating control and the work initiated on fixed overhead expenses could only partially offset the pressure on volumes and margins. The division closed the year with an operating income of €12.1m, a decrease of 1.8 point compared to 2012.
• The Industrial Material Handling Division (IMH) posted revenue of €123.8m, a decrease of 24% compared to 2012, split between the impact related to the termination of the Toyota distribution contract (-28%) and growth in the other businesses (+4%). Launched internationally in 2012 and in early 2013 in France to compensate for the Toyota distribution contract, the new range of MI industrial trucks has found solid success. Furthermore, the redeployment of resources initiated in late 2012 to support this transformation will continue in 2014 because of the announced discontinuation of the Toyota mast assembly contract in December of 2014. The division, which was impacted by the scale of the lost volume, reported an operating loss from continuing activities of €3.8m vs. +€2.6m in 2012.
• With revenue of €242.1m vs. €245.2 million in 2012, the Compact Equipment Division (CE) sales decreased by 1% (+2% at constant exchange rates). Driven by the recovery of construction activity in the United States, the division benefited from strong growth in the Telehandler rental customers, while the distribution of compact skid-steers recorded increased pressure on volumes and margins due to the change of engine standards for the new product range. The trend in the sales split and the flow of operational control enabled the CE division to improve its margin on cost of sales by 1.4 point. Operating income from continuing activities of €13m (5.4%) compared to €15.1m (6.1%) in 2012

2014 Outlook

At constant exchange rate, Manitou confirms its outlook for stable revenue and an improvement in its operating profit by 50 to 100 base points.

Manitou, the Material-Handling Reference, is headquartered in Ancenis (in the Loire-Atlantic region of France). The group designs, manufactures and distributes materialhandling solutions for the construction, agricultural and industrial sectors. Manitou realized a revenue in 2013 of €1,176m (nearly three fourths of which internationally) under the brand names Manitou®, Gehl®, Mustang®, Loc® and Edge®, through 1,400 independent dealers in over 120 countries. At December 31, 2013, Manitou had over 3,200 employees, of which 40% were based outside of France.

Next meetings:

April 23, 2014 (post closing): Q1'14 Revenue April 24, 2014: 30th anniversary of Manitou's share listing June 5, 2014: Annual Shareholders' meeting

Company information and presentations are available at: www.manitou-group.com Shareholder information: communication.financiere@manitou.com

ISIN code: FR0000038606 Indices: CAC PME, CAC Mid & Small, CAC Small, CAC All-Tradable, NEXT 150