AI assistant
Manitou Group — Earnings Release 2018
Mar 6, 2019
1503_iss_2019-03-06_304df311-0057-42fb-a594-3880795da5e2.pdf
Earnings Release
Open in viewerOpens in your device viewer
Manitou: 2018 Results
- Sales revenue of $\epsilon$ 1,884* million growing at a rate of +18% against 2017 (+19% like for like**)
- Recurring operating income at $£129$ million (6.9% of net sales) against $£95$ million (6.0%) in 2017
- Current operating income at 7.3% on a comparable basis (at constant exchange rates, scope and accounting standard)
- EBITDA(1) of $\epsilon$ 162 million (9%) against $\epsilon$ 124 million (8%) in 2017
MAN
- Net income attributable to the equity holders of the Parent of $684$ million against $660$ million in 2017
- Dividend to be proposed at the upcoming Shareholders' meeting of $\epsilon$ 0,78 per share
- Anticipation of an increase in sales for 2018 of around +10%
- Anticipation for 2019 of an improvement in the current operating income/sales ratio of approximately 40 basis points
Ancenis, 06 March 2019 – The board of directors of Manitou BF, meeting on this day, approved the accounts for
- Michel Denis, President and Chief Executive Officer stated: "I am very satisfied with the group's development in 2018 across all geographies and markets. Our acceleration is the result of the investments we make year after year to strengthen our leadership and achieve our long-term objectives. Many additional human, financial and industrial resources have been implemented to better serve our customers.
The group thus closed the 2018 financial year with 18% growth in revenue and a current operating income of 6.9%, up 90 basis points compared to 2017. Excluding the effects of exchange rates, scope of consolidation and changes in IFRS accounting standards, our revenue growth was even 19%, and our operating income was 7.3%.
We should also note the 40% increase in our net income, which led the Board of Directors to propose a dividend of 0.78 euro per share at the next Shareholders' Meeting.
The dynamics of our order intake and the volume of our backlog allow us to confirm, all other things being equal, our expectation of revenue growth of around 10% for 2019, combined with an improvement in the percentage of profit from recurring operations of around 40 basis points."
| MHA | CEP | S&S | Total | MHA | CEP | S&S | Total | ||
|---|---|---|---|---|---|---|---|---|---|
| In millions of $\epsilon$ | 2017 | 2017 | 2017 | 2017 | 2018 | 2018 | 2018 | 2018 | Var. |
| Net sales | 1095,2 | 244,0 | 251,7 | 1591,0 | 1 2 9 4 , 1 | 313,5 | 276,0 | 1883,6 | $+18%$ |
| Sales margin | 163,3 | 29,6 | 65,7 | 258,6 | 198,1 | 43,0 | 72,7 | 313,8 | $+21%$ |
| Sales margin as a % of sales | 14,9% | 12,1% | 26,1% | 16,3% | 15,3% | 13,7% | 26,3% | 16,7% | |
| Recurring OI | 75,9 | 0,1 | 19,3 | 95,3 | 100,0 | 9,4 | 20,0 | 129,3 | $+36%$ |
| Recurring OI as a % of sales | 6,9% | 0,0% | 7,7% | 6,0% | 7,7% | 3,0% | 7,2% | 6,9% | |
| OP. | 71,0 | 0,3 | 19,0 | 90,3 | 97,4 | 9,0 | 19,7 | 126,1 | $+40%$ |
| Net income attributable to the group | n/a | n/a | n/a | 60,0 | n/a | n/a | n/a | 84,1 | $+40%$ |
| Net debt | 76,0 | 148,1 | +95% | ||||||
| Shareholder's equity | 533,1 | 597,0 | $+12%$ | ||||||
| % Gearing (2) | 14% | 25% | |||||||
| Working capital | 433 | 536 | $+24%$ |
Auditing procedures performed
!"#\$% &' ())*+,- ./01 2(34(/5 &678 9:&;8 <+7=047 9:&> /,67(7,1,37 ?@414*(7+A, @(7@=B4) 1,7=0-C
- !! (7 @0367(37 6@0),8 (@@0437+3D 67(3-(/- (3- ,E@=(3D, /(7,F
- B #0/9:&>(@G4+6+7+036?H(3+704IG4+)1,37"3-+(+3H(59:&> (3-J+.7\$+7,(77=,,3-0.24*59:&>C864K7/(@7+030.7=,+/@037/+K47+038 ./01 2(34(/5 &67 0. 7=, @4//,37 5,(/8 70 7=, (33+A,/6(/5 1037= 0. 7=,+/ (@G4+6+7+03L M=,/, +6 30 (@G4+6+7+03 30/ ,E+7 +3 9:&;
- B N))*+@(7+03 0. "N% &; 03 7=, (DD/,D(7,6 0. 7=, @4//,37 5,(/
- B N))*+@(7+03 0. 7=, ,E@=(3D, /(7, 0. 7=, )/,A+046 5,(/ 03 7=, (DD/,D(7,6 0. 7=, @4//,37 5,(/6
?&C IO"MPNF I(/3+3D6 K,.0/, +37,/,678 7(E,68 -,)/,@+(7+038 (3- (10/7+Q(7+03
?9C R,(/+3D F #+3(3@+(* /(7+0 1,(64/+3D 7=, 3,7 -,K7 -+A+-,- K5 6=(/,=0*-,/6S ,G4+75L
TUVWXYZWW [Z\XZ] ^_ `X\XWXaY
bcd efgZ[XfhifY`hXYjklmmZWWnX\XWXaY oeilpqdrsqtduvw xdvsyz{|}~xxs}{wwvtz{|~xxs }{|wqstcsy{}wtsvtwtdcwdqwtd|ws vtwuwquwuvsrdbcduvscwvwud dvtdtvwtwxxtvvtdvtswdxdqwtdtvrqsusbc vrqsqwdxxdsdu}{~|tctcdxwc sy tcd svtqs sy w d rqsus vtd ysq wdqwx rxwsqv
dqtcdwwxdwq|tcduvsvqqdtsrdqw sdqsvd{tsqdwctcdz{xxstcqdvcsxu wu qdrqdvdtdu sy qddd| r wvv rstv srwqdu ts }{
wuus|tcdyqddtrqsdduvqddduwyq swsrdtsqsduuqtcdvdsucwxysy tcd dwq| csddq| s rqsvs wv wud tcd wstv
bcd afmg VXZYg¡[a`VmgWnX\XWXaYo ¡pqdrsqtduv wxdvsyz{xxs}{|wqvdsy}wwvt }{wu}wtsvtwtdcwdqwtd|wsvtwuwq uwuvsrdrdqwtcd¢tdu£twtdvw stdtsyxwsqvcsqtwdwuvtsvtwq¤qdwvd|tcdu vscwvddqtcdxdvvvdvvyxxudxdqdutcd qsrvvtqsdvtqstcwuvwtxrqsdutvrqs twxt¥dqqsrdqwsdvvdtwtz~ xxs| qdrqdvd sy qddd srwqdu ts }{
¦tcvwxdvqdddvsyz}§xxs|tcd ¨Z[\XmZWk¨ahVgXa YWnX\XWXaYo¨k¨pqdsquduw{vwxdvqdwvdtv wtwtsvtwtdcwdqwtd|wsvtwuwqu wuvsrdwwvt}{©xxtcduvsvwdv wqdrqsqdvv|tcwsqdsvtqwduwqxddxysqtc duvtqssyvrwqdrwqtvªqs«dtvcwddd udrxsdu ts vvtdw¬d drdt sdt yqs ®wwq }{~| wv dxx wv ts d¯dq vrrsqt vwxdv w bcduvsvqdqqsrdqwsdrqsduyqs z{~ xxs}{tsz}xxs}{| qdrqdvd w qwtd sy } sy qddd
T nX\XZY [aaWZfg g°Z YZ±g ¨°f[Z°ahZ[W² eZZgXYj
bcd³swquududutsrqsrsvdwuudurwd tsyz| r dqv cwqdwttcddt£cwqdcsxudqv´dd|ccxx d cdxu s { ®d }{~
Tµ¶·¸ ¹Vghaaº
©rwswqdwvdsywqsu{vwxdvqdddv|wt svtwtdcwdqwtdv| wuwrqsddt qdqq srdqw sd sy wqsu wvd rstv| dwxdt ts wrrqswtdx sy vwxdv qdddv
This presentation may include forward-looking statements, which are based on current beliefs, expectations and assumptions, including without limitation assumptions regarding present and future business strategies and the business environment in which the Company operates, and involve known and unknown risk, uncertainties and other factors, which may cause actual results, performances or achievements, or industry results or other events, to be materially different from those expressed or implied by such forward-looking statements. Forward-looking statements speak only as of the date of this presentation and the Company expressly disclaims any obligation or undertaking to release any update or revisions to any forward-looking statements that this presentation may contain to reflect any change in expectations or any change in events, conditions or circumstances on which these forward-looking statements are based. Forward looking statements are for illustrative purposes only. Recipients of this presentation are cautioned that forward-looking information and statements are not guarantees nor undertakings of future performances and are subject to various risks and uncertainties, many of which are difficult to predict and beyond the control of the Company.
ISIN code: FR0000038606
Indices: CAC ALL SHARES, CAC ALL-TRADABLE, CAC INDUSTRIALS, CAC MID&SMALL, CAC PME, CAC SMALL, EN FAMILY BUSINESS, ENT PEA-PME 150
April 25, 2019 (after market closing): Q1'19 Sales Revenues
The Manitou Group is a global market leader in rough-terrain handling. It designs, manufactures, distributes and services equipment for construction, agriculture and the industry.
The Group's product ranges include all-terrain fixed, rotating and heavy-duty telehandlers, all-terrain, semi-industrial and industrial masted forklifts, wheeled or tracked skid-steer loaders, backhoe loaders, access platforms, truck-mounted forklifts, warehousing equipment and attachments.
Through its iconic brands - Manitou, Gehl, and Mustang - and its network of 1,500 dealers worldwide, the Group offers the best solutions by creating optimum value for its customers.
With its registered office in France, in 2018 the Group recorded a revenue of €1.9 billion in 140 countries, and it employs 4,400 people all committed to delivering customer satisfaction
1. STATEMENTS OF COMPREHENSIVE INCOME
CONSOLIDATED INCOME STATEMENT
| In thousands of euros | 31.12.2017* | 31.12.2018 |
|---|---|---|
| Net sales | 1590968 | 1883578 |
| Cost of goods & services sold | $-1332391$ | $-1569798$ |
| Research & development costs | $-20800$ | $-23908$ |
| Selling, marketing and services expenses | $-94701$ | $-105116$ |
| Administrative expenses | $-49696$ | $-56152$ |
| Other operating expenses and income | 1920 | 736 |
| RECURRING OPERATING INCOME | 95 300 | 129 341 |
| Impairment of assets | $\circ$ | $-339$ |
| Other non-recurring income and expenses | $-4966$ | $-2898$ |
| OPERATING INCOME | 90 334 | 126 104 |
| Share of profits of associates | 2447 | 2 3 2 6 |
| OPERATING INCOME INCLUDING NET INCOME FROM ASSOCIATES | 92 781 | 128 431 |
| Financial income | 16 556 | 24 698 |
| Financial expenses | $-22027$ | $-30673$ |
| Financial result | $-5472$ | $-5974$ |
| CONSOLIDATED INCOME (LOSS) BEFORE TAXES | 87 309 | 122 456 |
| Income taxes | $-27203$ | $-38103$ |
| NET INCOME | 60 10 6 | 84 3 54 |
| Attributable to equity holders of the Parent | 59 955 | 84 109 |
| Minority interests | 151 | 245 |
EARNINGS PER SHARE (IN EUROS)
| 31.12.2017* | 31.12.2018 | |
|---|---|---|
| Net income (loss) attributable to the equity holders of the Parent | $\mathcal{L}$ | |
| Diluted earnings per share | 15. |
*The comparative consolidated financial statements take into account the retrospective application of IFRS 9 (see the extract from the notes to the consolidated financial statements).
OTHER COMPONENTS OF COMPREHENSIVE INCOME AND EXPENSE & COMPREHENSIVE INCOME
| in thousands of euros | 31.12.2017* | 31.12.2018 | |
|---|---|---|---|
| INCOME (LOSS) FOR THE YEAR | 60 10 6 | 84 3 54 | |
| Adjustments in the fair value of available-for-sale financial assets | 60 | $-169$ | |
| Of which booked to equity | 60 | $-169$ | |
| Of which transferred to income of the year | $\Omega$ | $\Omega$ | |
| Translation differences arising on foreign activities | $-27273$ | 5297 | |
| Attributable to equity holders of the Parent | $-27152$ | 5847 | |
| Attributable to minority interests | $-121$ | $-550$ | |
| Interest rates hedging instruments | 883 | $-459$ | |
| Attributable to equity holders of the Parent | 883 | $-459$ | |
| Attributable to minority interests | $\Omega$ | $\Omega$ | |
| Items that will be reclassified to profit or loss in subsequent periods | $-26330$ | 4670 | |
| Actuarial gains (losses) on defined benefits plans | 1115 | 4073 | |
| Attributable to equity holders of the Parent | 1099 | 4057 | |
| Attributable to minority interests | 16 | 16 | |
| Items that will not be reclassified to profit or loss in subsequent periods | 1 1 1 5 | 4073 | |
| OTHER COMPONENTS OF COMPREHENSIVE INCOME | $-25215$ | 8743 | |
| COMPREHENSIVE INCOME | 34 891 | 93 097 | |
| Attributable to equity holders of the Parent | 34845 | 93 3 86 | |
| Attributable to minority interests | 45 | $-286$ |
THE OTHER COMPONENTS OF COMPREHENSIVE INCOME AND LOSS ARE PRESENTED NET OF THE ASSOCIATED TAXES. THE TAX IMPACT MAY BE
SPLIT AS FOLLOWS:
| in thousands of euros | 31.12.2017* | 31.12.2018 | |
|---|---|---|---|
| Items that will be reclassified to profit or loss in subsequent periods | $-493$ | 297 | |
| Items that will not be reclassified to profit or loss in subsequent periods | $-7784$ | $-449$ | |
| TOTAL TAX IMPACTS | -4 2 7 7 | -152 |
*The comparative consolidated financial statements take into account the retrospective application of IFRS 9 (see the extract from the notes to the consolidated financial statements).
2. CONSOLIDATED STATEMENT OF FINANCIAL POSITION
ASSETS
| in thousands of euros | 31.12.2017* | Net amount 31.12.2018 |
|
|---|---|---|---|
| NON-CURRENT ASSETS | |||
| PROPERTY, PLANT AND EQUIPMENT | 153 317 | 175 652 | |
| GOODWILL | 288 | 288 | |
| INTANGIBLE ASSETS | 37 C94 | 43 3 3 3 | |
| INVESTMENTS IN ASSOCIATES | 21 3 29 | 18 008 | |
| NON-CURRENT FINANCE CONTRACT RECEIVABLES | 3840 | 8210 | |
| DEFERRED TAX ASSETS | 16722 | 16 588 | |
| NON-CURRENT FINANCIAL ASSETS | 5657 | 8708 | |
| OTHER NON-CURRENT ASSETS | 348 | 375 | |
| 238 596 | 271 162 | ||
| CURRENT ASSETS | |||
| INVENTORIES & WORK IN PROGRESS | 451400 | 574 640 | |
| TRADE RECEIVABLES | 324 593 | 361685 | |
| CURRENT FINANCE CONTRACT RECEIVABLES | 1713 | 2487 | |
| OTHER RECEIVABLES | |||
| Current income tax | 7 3 8 4 | 5858 | |
| Other receivables | 32 348 | 41538 | |
| CURRENT FINANCIAL ASSETS | 2 7 5 4 | 4412 | |
| CASH AND CASH EQUIVALENTS | 39 570 | 27623 | |
| 859 762 | 1018243 | ||
| OTHER NON CURRENT ASSETS HELD FOR SALE | 215 | ||
| TOTAL ASSETS | 1098358 | 1289620 |
EQUITY & LIABILITIES
| in thousands of euros | 31.12.2017* | Net amount 31.12.2018 |
|
|---|---|---|---|
| Share capital | 39 6 22 | 39 6 68 | |
| Share premiums | 45529 | 46 098 | |
| Treasury shares | $-24305$ | $-24018$ | |
| Consolidated reserves | 413 765 | 442 629 | |
| Translation differences | $-3440$ | 3903 | |
| Net profit (loss) - Equity holder of the Parent | 59 955 | 84 109 | |
| SHAREHOLDERS' EQUITY | 531 126 | 592 389 | |
| MINORITY INTERESTS | 1974 | 4585 | |
| TOTAL EQUITY | 533 100 | 596 974 | |
| NON-CURRENT LIABILITIES | |||
| NON-CURRENT PROVISIONS | 47 240 | 45 3 68 | |
| OTHER NON-CURRENT LIABILITIES | 2677 | 3 1 0 1 | |
| DEFERRED TAX LIABILITIES | 768 | 1 1 4 4 | |
| NON-CURRENT FINANCIAL LIABILITIES | |||
| Loans and other financial liabilities | 47899 | 38 477 | |
| 98 585 | 88 0 90 | ||
| CURRENT LIABILITIES | |||
| CURRENT PROVISIONS | 13 502 | 15 0 86 | |
| TRADE ACCOUNTS PAYABLE | 260 063 | 292 715 | |
| OTHER CURRENT LIABILITIES | |||
| Current income tax | 4304 | 6457 | |
| Other liabilities | 118 402 | 148 640 | |
| CURRENT FINANCIAL LIABILITIES | 70 402 | 141658 | |
| 466 672 | 604 556 | ||
| TOTAL EQUITY & LIABILITIES | 1098358 | 1289620 |
*The comparative consolidated financial statements take into account the retrospective application of IFRS 9 (see the extract from the notes to the consolidated financial statements).
CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY
| In thousands of euros | Share | Capital Premiums | Share Treasury shares |
Reserves | Group net income |
Translation differences |
Revaluation surplus |
TOTAL SHAREHOLDERS' EQUITY (Group part) |
Minority interests |
TOTAL EQUITY |
|---|---|---|---|---|---|---|---|---|---|---|
| BALANCE AT 31.12.2016* |
39 557 | 44749 | $-24088$ | 383 952 | 43 110 | 23 698 | 908 | 511886 | 72 | 511958 |
| Income for the year 2016 | 43 110 | $-43110$ | ||||||||
| Income at 31.12.2017 | 59 955 | 59 955 | 151 | 60 10 6 | ||||||
| Dividends | $-16425$ | $-16425$ | $-7$ | $-16432$ | ||||||
| Change in translation differences |
$-27152$ | $-27152$ | $-121$ | $-27273$ | ||||||
| Valuation differences under IFRS | 1129 | 1129 | 1 1 2 9 | |||||||
| Treasury shares | $-217$ | $-217$ | $-217$ | |||||||
| Actuarial gains (losses) on employee benefit |
1099 | 1099 | 16 | 1115 | ||||||
| Change in consolidation scope and other |
65 | 780 | $-9$ | 13 | 850 | 1942 | 2792 | |||
| Shareholder's agreement |
$-78$ | $-78$ | ||||||||
| BALANCE AT 31.12.2017* |
39 622 | 45 529 | $-24305$ | 412 858 | 59 955 | $-3440$ | 908 | 531 126 | 1974 | 533 100 |
| Income for the year 2017 | 59 955 | $-59955$ | ||||||||
| Income at 31.12.2018 | 84 109 | 84 109 | 245 | 84 3 5 4 | ||||||
| Dividends | $-23753$ | $-23753$ | $-102$ | $-23855$ | ||||||
| Change in translation differences |
5847 | 5847 | $-550$ | 5297 | ||||||
| Valuation differences under IFRS | $-847$ | $-847$ | $-847$ | |||||||
| IFRS 15 First-time application |
$-4886$ | $-4886$ | -8 | $-4894$ | ||||||
| Treasury shares | 287 | 287 | 287 | |||||||
| Actuarial gains (losses) on employee benefit |
4057 | 4057 | 16 | 4073 | ||||||
| Change in consolidation scope scope and other |
46 | 569 | $-5663$ | 1496 | $-3552$ | 4251 | 699 | |||
| Shareholder's agreement |
$-1242$ | $-1242$ | ||||||||
| BALANCE AT 31.12.2018 |
39 668 | 46 098 | $-24018$ | 441722 | 84 109 | 3903 | 908 | 592 389 | 4585 | 596974 |
* The comparative consolidated financial statements take into account the retrospective application of IFRS 9 (see the extract from the notes to the consolidated financial statements).
4. CASH FLOW STATEMENT AS AT DECEMBER 31, 2018
| in thousands of euros 31.12.2017* |
31.12.2018 | ||||
|---|---|---|---|---|---|
| INCOME (LOSS) FOR THE YEAR | 60 106 | 84 3 5 4 | |||
| Less share of profits of associates | $-2447$ | $-2326$ | |||
| Elimination of income and expense with no effect on operating cash-flow and not linked to operating activities | |||||
| $^{+}$ | Amortization and depreciation | 33372 | 35925 | ||
| Provisions and impairment | $-6744$ | 728 | |||
| $\overline{\phantom{0}}$ | Change in deferred taxes | $-1103$ | 2662 | ||
| $+/-$ | Income (loss) from non-current asset disposal | $-133$ | $-47$ | ||
| $+/-$ | Other | $-1052$ | 1 2 0 7 | ||
| EARNINGS BEFORE DEPRECIATION AND AMORTIZATION | 81996 | 122 502 | |||
| Changes in cash flows from operating activities | $-37378$ | $-108068$ | |||
| $+/-$ | Change in inventories | $-45582$ | $-114396$ | ||
| $+/-$ | Change in trade receivables | $-53846$ | $-35548$ | ||
| $+/-$ | Change in finance contracts receivables | $-1506$ | $-5999$ | ||
| $+/-$ | Change in other operating receivables | $-2376$ | $-9756$ | ||
| $+/-$ | Change in trade accounts payable | 49 003 | 35 450 | ||
| $+/-$ | Change in other operating liabilities | 18 2 17 | 18 5 3 4 | ||
| $+/-$ | Change in taxes payable and receivable | $-1288$ | 3648 | ||
| $+/-$ | Change in liabilities linked to finance contracts receivables | 0 | $\Omega$ | ||
| Change in capitalized leased machines | $-9366$ | $-19146$ | |||
| CASH FLOW FROM OPERATING ACTIVITIES | 35 252 | $-4712$ | |||
| Changes in cash flows from investing activities | |||||
| $^{+}$ | Proceeds from sale of property, plant and equipment | 370 | 165 | ||
| $^{+}$ | Proceeds from sale of long-term investments | 1370 | $-35$ | ||
| Purchase of intangible assets, property, plant and equipment (excl. rental fleet) | $-40754$ | $-46412$ | |||
| Decrease (increase) of other financial assets | $-268$ | $-132$ | |||
| $\overline{a}$ | Acquisition of subsidiaries or minority interests | $-510$ | 63 | ||
| Capital increase of associated companies | $\circ$ | $\circ$ | |||
| $\ddot{}$ | Dividends received from associates | 4610 | 4886 | ||
| CASH FLOW FROM INVESTING ACTIVITIES | $-35181$ | $-41464$ | |||
| Changes in cash flows from financing activities | |||||
| Increase in capital | 845 | 615 | |||
| $\overline{\phantom{0}}$ | Decrease in capital | ||||
| Merger operation | |||||
| Dividends paid | $-16432$ | $-23855$ | |||
| $+/-$ | Purchase / sale of treasury shares | 75 | $-65$ | ||
| $+/-$ | Change in financial liabilities | $-584$ | 30 805 | ||
| Of which loans taken during the year | 233 | 40 087 | |||
| Of which loans repaid during the year | $-827$ | $-9282$ | |||
| $+/-$ | Other | 999 | 4630 | ||
| CASH FLOW FROM FINANCING ACTIVITIES | $-15097$ | 12 130 | |||
| NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND BANK OVERDRAFTS $-15026$ |
|||||
| 49 169 Cash, cash equivalents and bank overdrafts at beginning of the year |
|||||
| -8 Exchange gains (losses) on cash and bank overdrafts |
|||||
| CASH, CASH EQUIVALENTS, AND BANK OVERDRAFTS AT END OF THE YEAR | 34 135 | $-609$ |
* The comparative consolidated financial statements take into account the retrospective application of IFRS 9 (see the extract from the notes to the consolidated financial statements).
ACCOUNTING CHANGES IMPLEMENTED IN THE GROUP'S FINANCIAL STATEMENTS AS AT DECEMBER 31, 2018
The accounting methods and valuation rules applied by the Group in the consolidated financial statements as at December 31, 2018 are identical to those used in the financial statements at 31 December 2017, with the exception of the new texts referred below.
NEW STANDARDS FOR WHICH APPLICATION IS REQUIRED FOR THE 2018 FINANCIAL STATEMENTS
The mandatory interpretations as at 1 January 2018 have no impact on the Group's financial statements, with the exception of the following standards:
IFRS 9 "Financial Instruments"
IFRS 9 "Firancial instruments": IFRS 9 introduces a new classification of financial assets based on the Group's management intention, a dynamic model for impairment of financial assets based on expected losses in addition to the current model based on proven losses and extended hedge accounting principles.
The Group has chosen to apply the hedging component of IFRS 9. As such, the main amendment compared to IAS 39 concerns the treatment of foreign exchange derivatives and interest rates qualified as cash flow hedges. Henceforth, the change in the time value of options and the change in the premium/discount on forward transactions will be recorded in shareholders' equity over the life of the transactions, and recorded in financial income and expense when the hedged item is realized. The impact of the application of the hedging component of IFRS 9 is not material and is available below. The consolidated financial statements as at 31 December 2017 have been restated to allow for comparison. The restated balance sheet situation as at 31 December 2016 and 31 December 2017 is also presented.
The other components of IFRS 9, namely "Classification and Measurement" of financial assets and "Provisions", do not have an impact on the Group's financial statements.
IFRS 15 "Revenue from contracts with customers"
IFRS 15 defines a new approach to revenue recognition described in five steps. The main change induced by this standard for Manitou is the accounting treatment of the extensions of guarantees offered. As from 1 January 2018, revenue is recognized by distinguishing the sale of the machine from the warranty service. The warranty service product is spread over the warranty period.
IFRS 15 standard is applied using the "cumulative catch-up" method as at January1, 2018. The Group has decreased the amount of its opening shareholders' equity by €4.7 million, net of deferred taxes, to reflect the cumulative effect of the first application of the standard. In 2018, the application of IFRS 15 generated a decrease in revenue and current operating income of €2.3 million, or -C.1% of revenue. By division, this amount breaks down into a decrease of €6.4 million in revenue for the MHA division and an increase of $\epsilon$ 4.1 million in revenue for the S&S division
COMPARABILITY OF EXERCISES
The impacts of the application of the new IFRS 9 and IFRS 15 standards, as described above, are summarized below.
$\ensuremath{\mathsf{IFRS}}\xspace\,9$ «Financial Instruments»
INCOME STATEMENT
| in thousands of euros | 31.12.2017 Published | IFRS 9 | 31.12.2017 Restated |
|---|---|---|---|
| Net sales | 1590968 | 1590968 | |
| Cost of goods & services sold | $-1332246$ | $-145$ | $-1332391$ |
| Research & development costs | $-20800$ | $-20800$ | |
| Selling, marketing and services expenses | $-94701$ | $-94701$ | |
| Administrative expenses | $-49696$ | $-49696$ | |
| Other operating expenses and income | 1920 | 1920 | |
| RECURRING OPERATING INCOME | 95 4 4 5 | $-145$ | 95 300 |
| Impairment of assets | $\circ$ | $\circ$ | |
| Other non-recurring income and expenses | $-4966$ | $-4966$ | |
| OPERATING INCOME | 90 479 | $-145$ | 90 334 |
| Share of profits of associates | 2447 | 2447 | |
| OPERATING INCOME INCLUDING NET INCOME FROM ASSOCIATES |
92 926 | $-145$ | 92 781 |
| Financial income | 16 5 5 6 | 16 5 5 6 | |
| Financial expenses | $-22001$ | $-26$ | $-22027$ |
| Financial income | $-5446$ | $-26$ | $-5472$ |
| CONSOLIDATED INCOME (LOSS) BEFORE TAX | 87 480 | $-171$ | 87 309 |
| Income taxes | $-27260$ | 57 | $-27203$ |
| NET INCOME (LOSS) | 60 2 20 | $-114$ | 60 106 |
| Attributable to equity holders of the Parent | 60 069 | $-114$ | 59 955 |
| Attributable to minority interests | 151 | 151 |
BALANCE SHEET - Impacts on equity
| TOTAL SHAREHOL DERS' EQUITY |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Share, Capital |
Share premiums |
Treasury shares |
Reserves | Group net profit |
Translation differences |
Revaluation surplus |
(Group share) |
Minority interests |
TOTAL EQUITY |
|
| Published balance at 31.12.2016 |
39 557 | 44749 | $-24088$ | 384 150 | 42912 | 23 6 98 | 908 | 511886 | 72 | 511958 |
| IFRS 9 | $-198$ | 198 | $\mathbb O$ | $\circ$ | ||||||
| Restated balance at 31.12.2016 |
39 557 | 44749 | $-24088$ | 383 952 | 43 110 | 23 698 | 908 | 511886 | 72 | 511958 |
| Published balance at 31.12.2017 |
39 6 22 | 45 5 29 | $-24305$ | 412 744 | 60 069 | $-3440$ | 908 | 531 126 | 1975 | 533 100 |
| IFRS 9 | 114 | $-114$ | $\circ$ | $\circ$ | ||||||
| Restated balance at 31.12.2017 |
39 6 22 | 45 5 29 | $-24305$ | 412858 | 59 955 | $-3440$ | 908 | 531 126 | 1975 | 533 100 |
IFRS 15 "Revenue from customer contracts"
INCOME STATEMENT BY DIVISION
| In thousands of euros | MHA Material Handling and Access |
CEP Compact Equipment Products |
S&S Services & Solutions |
IFRS 15 | MHA Material Handling and Access |
CEP Compact, Equipment Products |
S&S Services & Solutions |
IAS 18 31.12.2018 |
|---|---|---|---|---|---|---|---|---|
| Net sales | 1 2 9 4 0 8 7 | 313 509 | 275 982 | 1883578 | 1 300 473 | 313 509 | 271914 | 1885896 |
| Cost of goods and services sold | $-1095976$ | $-270552$ | $-203270$ | $-1569798$ | $-1095976$ | $-270552$ | $-203270$ | $-1569798$ |
| R&D, marketing, sales, service & admin |
$-98161$ | $-33573$ | $-52706$ | $-184440$ | $-98161$ | $-33573$ | $-52706$ | $-184440$ |
| RECURRING OPERATING PROFIT | 99 950 | 9384 | 20 006 | 129 340 | 106 335 | 9384 | 15938 | 131 658 |
| In % of net sales | 7,7% | 3,0% | 7.2% | 6,9% | 8,2% | 3,0% | 5,9% | 7,0% |
| OPERATING PROFIT | 97 423 | 8970 | 19710 | 126 104 | 103 808 | 8970 | 15 642 | 128 421 |
| OPERATING PROFIT INCLUDING NET INCOME FROM ASSOCIATES |
97439 | 8970 | 22 0 20 | 128 431 | 103824 | 8970 | 17952 | 130 748 |
| Financial result | $-5974$ | $-5974$ | ||||||
| PROFIT (LOSS) BEFORE TAX | 122 456 | 124 774 | ||||||
| Income taxes | $-38103$ | $-38720$ | ||||||
| NET INCOME | 84 3 5 4 | 86 054 | ||||||
| In % of net sales | 4.5% | 4.6% |
BALANCE SHEET - IFRS 15 IMPACT ON EQUITY
ASSETS
| In thousands of euros | 31.12.2017* | IFRS 15 First-time application | 01.01.2018 |
|---|---|---|---|
| NON CURRENT ASSET | 238 596 | 1880 | 240 476 |
| CURRENT ASSETS | 859762 | 3251 | 863013 |
| o/w Inventories | 451400 | 3 2 5 1 | 454 651 |
| TOTAL ASSETS | 1 098 358 | 5 1 3 1 | 1 103 489 |
EQUITY & LIABILITIES
| In thousands of euros | 31.12.2017* | IFRS 15 First-time application | 01.01.2018 |
|---|---|---|---|
| Share capital | 39 6 22 | 39 6 22 | |
| Share premiums | 45 5 29 | 45 5 29 | |
| Treasury shares | $-24305$ | $-24305$ | |
| Consolidated reserves | 413 765 | $-4886$ | 408 879 |
| Translations differences | $-3440$ | $-3440$ | |
| Net profit (loss) – Equity holder of the Parent | 59 955 | 59 955 | |
| SHAREHOLDERS' EQUITY | 531 126 | $-4886$ | 526 240 |
| MINORITY INTERESTS | 1974 | $-8$ | 1966 |
| TOTAL EQUITY | 533 100 | $-4894$ | 528 206 |
| NON CURRENT LIABILITIES | 98 585 | 98 585 | |
| CURRENT LIABILITIES | 466 672 | 10 0 25 | 476 697 |
| o/w Other current liabilities | 118 402 | 10025 | 128 427 |
| TOTAL LIABILITIES | 1098358 | 5 1 3 1 | 1 103 489 |
*The comparative consolidated financial statements take into account the retrospective application of IFRS 9, which has an impact on shareholders' equity. The other balance sheet items are not impacted.
SCOPE OF CONSOLIDATION
HMME - Hangzhou Manitou Machinery Equipment
The Group is in exclusive negotiations to sell its stake in HMME (Hangzhou Manitou Machinery Equipment Co Ltd.). As a result of these negotiations, the Group considers that, as at December 31, 2018, the conditions for applying IFRS 5 on non-current assets held for sale are fulfilled in light of the high probability for the sale to be completed.
This sale concerns a company that has been virtually dormant for several years and does not concern the partnership that Manitou Group has with the Hangcha Group on the design and assembly of industrial forklifts.
Thus, HMME's investments in associates are classified separately under "Non-current assets held for sale" and are valued at their lower carrying amount or estimated selling price, net of costs related to the sale.
The fair value assessment established taking into account the negotiations with the acquirer generated the recognition of a non-recurring loss of $\epsilon$ 0.3 million.
MANITOU SOUTHERN AFRICA - Sale of a 26% minority stake
On November 5, 2018, Manitou BF sold 26% of its subsidiary's share capital, Manitou Southern Africa (previously a 100% subsidiary), to the Columba Leadership Trust fund. This operation resulted in a decrease in the percentage of interests without change in the consolidation method. The gain on disposal was recognised in shareholders' equity.
During this transaction, Manitou BF granted Columba Trust a commitment to buy back its stake (put on minority interests). This put option was recorded as long-term financial debt at the discounted fair value of its exercise price, with a corresponding equity component of €1.2 million December 31, 2018.
LIST OF SUBSIDIARIES AND AFFILIATES
| Parent company Manitou BF SA |
Ancenis, France | |||
|---|---|---|---|---|
| Consolidated companies | Consolidation method |
% control | % d'interest | |
| Manitou America Holding Inc. | West Bend, Wisconsin, United States | FC | 100% | 100% |
| Manitou North America LLC | West Bend, Wisconsin, United States | FC | 100% | 100% |
| Manitou Equipment America LLC | West Bend, Wisconsin, United States | FC | 100% | 100% |
| Gehl Power Products, Inc | Yankton, South-Dakota, United States | FC | 100% | 100% |
| Manitou Brasil Manipulacao de Cargas Ltda. | São Paulo, Brazil | FC | 100% | 100% |
| Manitou Mexico | Mexico DF, Mexico | FC | 100% | 100% |
| Manitou Chile | Las Condes, Chile | FC | 100% | 100% |
| Compagnie Francaise de Manutention Ile-de-France | Herblay, France | FC | 100% | 100% |
| Manitou Global Services | Ancenis, France | FC | 100% | 100% |
| LMH Solutions SAS | Beaupréau-en-Mauges, France | FC | 100% | 100% |
| Manitou Développement* | Ancenis, France | FC | 100% | 100% |
| Cobra MS* | Ancenis, France | FC | 100% | 100% |
| Manitou Italia Srl | Castelfranco Emilia, Italia | FC | 100% | 100% |
| Manitou UK Ltd. | Verwood, United-Kigdom | FC | 99,4% | 99,4% |
| Manitou Benelux SA | Perwez, Belgium | FC | 100% | 100% |
| Manitou Interface and Logistics Europe | Perwez, Belgium | FC | 100% | 100% |
| Manitou Deutschland GmbH | Ober-Mörlen, Germany | FC | 100% | 100% |
| Manitou Portugal SA | Villa Franca, Portugal | FC | 100% | 100% |
| Manitou Manutencion Espana SI | Madrid, Spain | FC | 100% | 100% |
| Manitou Vostok Llc | Moscou, Russia | FC | 100% | 100% |
| Manitou Polska Sp Z.o.o. | Raszyn, Poland | FC | 100% | 100% |
| Manitou Nordics Sia | Riga, Latvia | FC | 100% | 100% |
| Manitou Southern Africa Pty Ltd. | Johannesbourg, South Africa | FC | 74% | 74% |
| Manitou Australia Pty Ltd. | Alexandria, Australia | FC | 94% | 94% |
| Manitou Asia Pte Ltd. | Singapour | FC | 100% | 100% |
| Manitou South Asia Pte Ltd. | Gurgaon, India | FC | 100% | 100% |
| Manitou China Co Ltd. | Shanghai, China | FC | 100% | 100% |
| Manitou Middle East Fze | Jebel Ali, United Arab Emirates | FC | 100% | 100% |
| Manitou Malaysia MH | Kuala Lumpur, Malaisia | FC | 100% | 100% |
| Manitou Equipment India | Greater Noïda, India | FC | 100% | 100% |
| Marpoll Pty Ltd (LiftRite Hire & Sales) | Perth, Australia | FC | 50.5% | 50.5% |
| Manitou Finance France SAS | Puteaux, France | EM | 49% | 49% |
| Manitou Finance Ltd. | Basingstoke, United Kingdom | EM | 49% | 49% |
| Hangzhou Manitou Machinery Equipment Co Ltd. | Hangzhou, China | $\left( 1\right)$ | 50% | 50% |
EM: Equity Method
* dormant companies
Considering that the conditions for applying IFRS 5 on non-current assets held for sale are met, HMME, iritially accounted for by the equity method, was classified as non-current assets held for sale at 31
December 2018.. $\langle \bar{\eta}$
INFORMATION ON OPERATING SEGMENTS
The Group is organized around three divisions, two product divisions and a service division:
The MHA product division - Material Handling and Access manages the French and Italian production sites manufacturing telehandlers, rough terrain and industrial forklifts, truck-mounted forklifts and aerial working platforms. Its mission is to optimize the development and production of these equipments branded Manitou.
The CEP product division - Compact Equipment Products optimizes the development and production of skidsteer loaders, track loaders, articulated loaders, backhoe loaders and telehandlers branded Gehl and Mustang.
The S&S division - Services & Solutions includes service activities to support sales (financing approaches, warranty contracts, maintenance contracts, full service, fleet management, etc.), after-sales (parts, technical training, warranty management, fleet management, etc.) and services to end users (geolocation, user training, advice, etc.). The mission of the division is to develop service offers to meet the needs of each of our customers in our value chain and to increase resilient sales revenue for the group.
The three divisions design and assemble products and services which are distributed by the Sales and Marketing organization to dealers and key accounts in 140 countries.
CONSOLIDATED P&L BY DIVISION MHA, CEP, S&S
| 31.12.2018 In thousands of euros |
MHA Material Handling and Access |
CEP Compact Equipment Products |
S&S Services & Solutions |
Total |
|---|---|---|---|---|
| Net sales | 1294087 | 313 509 | 275 982 | 1883578 |
| Cost of goods and services sold | $-1095976$ | $-270552$ | $-203270$ | $-1569798$ |
| Research and development costs | $-19888$ | $-4019$ | $-23908$ | |
| Selling and marketing et service expenses | $-47183$ | $-15219$ | $-42714$ | $-105116$ |
| Administrative expenses | $-32378$ | $-13911$ | $-9863$ | $-56152$ |
| Other operating income and expenses | 1289 | $-424$ | $-128$ | 736 |
| RECURRING OPERATING PROFIT | 99 950 | 9384 | 20 006 | 129 341 |
| Impairment of assets | $-339$ | $-339$ | ||
| Other non-recurring income and expenses | $-2188$ | $-414$ | $-296$ | $-2898$ |
| OPERATING PROFIT | 97 423 | 8970 | 19710 | 126 104 |
| Share of profits of associates | 16 | 2310 | 2 3 2 6 | |
| OPERATING PROFIT INCLUDING NET INCOME FROM ASSOCIATES | 97439 | 8970 | 22 0 20 | 128 431 |
| 31.12.2017 In thousands of euros |
MHA Material Handling and Access, |
CEP Compact, Equipment Products |
S&S Services & Solutions |
Total |
|---|---|---|---|---|
| Net sales | 1095217 | 244 029 | 251722 | 1590968 |
| Cost of goods and services sold | $-931822$ | $-214385$ | $-186039$ | $-1332246$ |
| Research and development costs | $-17042$ | $-3758$ | $-20800$ | |
| Selling and marketing et service expenses | $-43168$ | $-14240$ | $-37293$ | $-94701$ |
| Administrative expenses | $-28002$ | $-12260$ | $-9434$ | $-49696$ |
| Other operating income and expenses | 894 | 694 | 332 | 1920 |
| RECURRING OPERATING PROFIT | 76 076 | 80 | 19 2 8 8 | 95 4 4 5 |
| Impairment of assets | ||||
| Other non-recurring income and expenses | $-4970$ | 262 | $-258$ | $-4966$ |
| OPERATING PROFIT | 71 106 | 342 | 19 0 30 | 90 479 |
| Share of profits of associates | $-387$ | 2834 | 2447 | |
| OPERATING PROFIT INCLUDING NET INCOME FROM ASSOCIATES | 70 718 | 342 | 21865 | 92926 |
The spare parts and accessories distribution business, which is integrated within the Services & Solutions division, benefits from services provided by the MHA and the CEP divisions (R&D, qualification of parts, qualification of suppliers), the already existing basis of sold units, as well as the brand name recognition built by those divisions.
In order to compensate for all of these benefits, the group's divisional reporting includes fees from the Services & Solutions division to the MHA and CEP divisions. This fee is calculated based on comparable indicators of external independent spare parts distributors for which the median operating income over a five year period amounted to 4.25% and 4.87% in Europe and the US, respectively, the main regions in which the S&S division operates. That fee is included in the line item «Cost of goods and services sold» of each division, which therefore includes the charges related to goods and services sold plus or minus the interdivision fees.
Assets, cash flows or even liabilities are not allocated to the individual divisions, as the operating segment information used by the group's management does not incorporate those various item.
NET SALES BY DIVISION AND GEOGRAPHICAL REGION
| 31.12.2018 In thousands of euros |
Southern Europe | Northern Europe | Americas | APAM | Total | |
|---|---|---|---|---|---|---|
| MHA | 463 165 | 621991 | 99 204 | 109 727 | 1294087 | |
| CEP | 18460 | 42855 | 202 583 | 49611 | 313509 | |
| S&S | 96923 | 90958 | 48494 | 39 60 6 | 275982 | |
| TOTAL | 578 548 | 755 804 | 350 282 | 198 944 | 1883 578 |
| 31.12.2017 In thousands of euros |
Southern Europe | Northern Europe | Americas | APAM | Total | |
|---|---|---|---|---|---|---|
| MHA | 421824 | 490 891 | 79 330 | 103 171 | 1095217 | |
| CEP | 13803 | 32 547 | 162 793 | 34886 | 244 029 | |
| S&S | 87019 | 78494 | 50 923 | 35 286 | 251722 | |
| TOTAL | 522 646 | 601932 | 293 046 | 173 343 | 1590968 |
6. EVOLUTION OF THE RECURRING OPERATING PROFIT BETWEEN 2017 AND 2018
7. GLOSSARY
EXPLANATION OF REPORTING LINES ITEMS
NET SALES
Net sales are principally made up of sales of new handling materials assembled within the group or acquired from third parties, sales of spare parts and attachments, rental of materials, and the sale of equipment fleet management services and various other services.
COST OF SALES
Cost of sales is made up of the cost of the goods and services sold, which includes the cost of raw materials and components and the workforce directly attributable to the good or service, and all operating costs of the production and logistics activities. Also included in the cost of sales are the amortization of intangible assets, equipment and materials allocated to the production activities, the costs of the contractual guarantee, provisions for depreciation of stocks, and exchange gains and losses booked on operating income in foreign currencies resulting from the variance between the exchange rate on the day of the transaction and the exchange rate on settlement.
GROSS MARGIN
The gross margin results from the difference between net sales and cost of sales
RESEARCH AND DEVELOPMENT EXPENSES
Research and development expenses are made up of the personnel costs and operating costs allocated to innovation, development, design, realization of prototypes and improvements to products. The activities frequently use external services as well as dedicated equipment and materials, the amortization of which will affect operation.
Research and development expenses that comply with the criteria of feasibility and innovation may be allocated in intangible assets and amortized in cost of sales at a later date. Expenses that do not comply are booked directly in charges.
COMMERCIAL AND MARKETING EXPENSES
Commercial expenses are primarily made up of personnel costs and associated expenses allocated to business development activities, managing the networks of concessionaires, marketing, and technical services. Also included in this line item are commissions on sales, promotion costs, trade fairs, credit insurance charges, commercial warranties, travel costs, and amortization of associated infrastructure.
ADMINISTRATIVE EXPENSES
Administrative expenses are principally made up of personnel costs and expenses associated with the support functions (human resources, finance, general secretariat, etc.). Also included is the amortization of the infrastructure associated with these functions
EXPENDITURE AND INCOME ON NON-RECURRING ITEMS
Expenditure and income on non-recurring items include the following elements:
- impairment losses:
- gains or losses on significant or unusual disposal of intangible and tangible assets
- acquisition and integration costs
- « Badwill » income
- Income on sale of consolidated shares
- restructuring costs
- exceptional items corresponding to income and expenditure that are unusual in terms of their frequency, their nature and their amount.
OPERATING INCOME OR OPERATING MARGIN
Operating income, also known as operating margin in this document, includes all the recurring and non-recurring elements described above.
OPERATING INCOME INCLUDING NET INCOME FROM ASSOCIATES
The line item "Operating income including net income from associates" is made up of operating income and the share in the income of associated companies.
FINANCIAL INDICATORS AND OTHER DEFINITIONS
AT CONSTANT SCOPE AND EXCHANGE RATE
The exchange rate effect is calculated by applying on the net sales of the current period, the exchange rate of the previous period.
The scope impact is calculated by:
-
eliminating the revenue, over the current period, of companies acquired during the period,
-
eliminating the revenue, from January 1 of the current fiscal year, to the anniversary month of their acquisition, of companies acquired in the previous fiscal year,
-
eliminating the revenue, over the current and comparable periods, of companies sold in the current or comparable periods.
-
Companies acquired in 2017 (Manitou Equipment India in May 2017 and Liftrite at the end of July 2017), less their contribution, from January 1 of the current
-
financial year, to the anniversary month of their acquisition. There are no acquired companies or outgoing companies during the 2018 financial year
-
Application of IAS 18 "Revenue" to the current year's aggregates
-
Application of the 2017 fiscal year exchange rate.
AT CONSTANT ACCOUNTING STANDARD
The constant standard impact is calculated by applying the accounting standards applicable in the previous financial year to the current period.
In 2018: application of IAS 18 on current year aggregates
NET DEBT
Net debt corresponds to the difference between current and non-current financial liabilities on the one hand and on the other hand, current financial assets and cash and cash equivalents.
EBITDA
Operating income +/- provisions - reversals of amortization and impairment losses.
RECURRING EBITDA
Operating income - income and expenditure on non-recurring items +/- provisions - reversals of amortization and impairment losses.
GEARING
Ratio of net debt divided by the amount of shareholders' equity.
LEVERAGE
Ratio determined by dividing the amount of net debt at the end of the period by rolling 12-month EBITDA. This measures the amount of the debt in number of years of EBITDA.
OPERATING WORKING CAPITAL REQUIREMENT
Inventory and work in progress + clients + other debtors - trade accounts payable - other current liabilities.
Operating working capital requirement excludes sales financing receivables, which do not change in proportion to the operating activity.
ORDER BOOK
All customer orders received but not yet delivered.