Manitou Group — Earnings Release 2023

Jul 27, 2023

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PRESS RELEASE

2023 Half-year results

• H1 23 Net sales of €m 1,402, +33% vs. H1 22 (+33% like for like (1))
• Q2 23 revenues of €736m, +21% vs. Q2 22
• Q2 23 order intake on equipment of €m 287 vs. €m 791 in Q2 22
• End of Q2 23 order book (2) on equipment at €m 3,061 vs. €m 3,554 in Q2 22
• Recurring operating income at €m 88.1 (6.3%) vs. €m 45.8 (4.3%) in 2022
• Net income at €m 62.6 vs. €m 29.3 in 2022
• EBITDA (2) at €m 114.0 (8.1%) vs. €m 68.2 (6.5%) in 2022
• Net debt (4) at €m 387, gearing (4) at 47%
• Expected revenue growth of around 20% in 2023 compared to 2022
• Expected recurring operating profit for 2023 to be over 5.5% of revenues

Ancenis, July 27, 2023 - Michel Denis, President & CEO, stated: "With an increase in revenues of 33% compared with the first half of 2022 and a near doubling of recurring operating profit, the first half of 2023 marks the Group's comeback to very positive growth and performance. This record level of activity is the result of our high production levels, achieved in a context of better operational fluidity. Sales are increasing in all sectors and geographical areas.

In terms of financial performance, the fast improvement in our profitability is the result of order book management, both in terms of price adjustments and order flow management, the slowdown in inflation on raw materials, and relentless action to raise our profitability.

The outlook for our markets is becoming less visible. In the construction sector, the slowdown we observed in Germany and the UK is gradually spreading across the European continent, while growth opportunities continue in other geographical areas. The suspension of order intake on certain product lines has contributed to the decline in the order book, which remains very deep.

For 2023, we expect revenue growth of around 20% compared with 2022, with a recurring operating profit for 2023 to be over 5.5% of revenues, compared with 3.6% for 2022."

	Product division	S&S division	Total	Product division	S&S Division	Total
in millions of euros	H1 2022	H1 2022	H1 2022	H1 2023	H1 2023	H1 2023	Var.
Net sales	865.8	191.0	1,056.7	1,201.4	200.1	1,401.5	+33%
Sales margin	100.0	56.0	156.0	167.9	53.3	221.2	+42%
Sales Margin as a % of sales	11.6%	29.3%	14.8%	14.0%	26.6%	15.8%
Recurring Operating Income	22.8	22.9	45.8	74.4	13.6	88.1	+92%
Recurring Op. Income as a % of sales	2.6%	12.0%	4.3%	6.2%	6.8%	6.3%
Operating Income	21.5	22.9	44.4	75.3	13.9	89.2	+101%
Net Income attributable to the group			29.1			62.5	+115%
Net debt excluding IFRS 16			172.2			387.0
Net debt excluding IFRS 16			193.7			407.7
Shareholders' equity			780			819	+5%
(5) excluding % Gearing IFRS 16			22%			47%
(5) including % Gearing IFRS 16			25%			50%
Working capital			678			885

Revenues evolution

Net sales by division
in millions of euros	Quarter			Half-year
	Q2 2022	Q2 2023	%	H1 2022	H1 2023	%
Product division	511	639	25%	866	1 201	39%
S&S division	96	97	2%	191	200	5%
Total	607	736	21%	1 057	1 402	33%

Net sales by geographic region

in millions of euros	Quarter			Half-year
	Q2 2022	Q2 2023	%	H1 2022	H1 2023	%
Southern Europe	220	244	11%	367	472	29%
Northern Europe	222	264	19%	386	509	32%
Americas	111	168	51%	201	304	52%
APAM	53	60	13%	103	117	13%
Total	607	736	21%	1 057	1 402	33%

Review by division

The Product Division reported revenues of €1,201 million, up 39% over six months compared with 2022 (+39% at constant scope and exchange rates). The division benefited from a strong commercial dynamic, the policy of increase in selling prices implemented since 2022 to face material inflation, and an improvement in the supply chain. The division also benefited from a favourable comparison basis with the first half of 2022, which was affected by the health crisis and by difficulties in the supply of components.

The division's margin on cost of sales reached €167.9 million, 68% higher than in the first half of 2022, thanks to the increase in activity and a margin rate that improved by 2.4 points thanks to the pricing policy implemented to compensate for the rise in raw materials prices, which heavily reduced the division's margins in 2022.

Recurring operating profit for the Product Division rose sharply by €51.6 million to €74.4 million (6.2% of sales), compared with €22.8 million in the first half of 2022 (2.6% of sales).

With revenues of €200 million, the Services & Solutions Division (S&S) recorded growth of 5% over 6 months (+5% at constant scope and exchange rates). The division is driven by its spare parts activity, with a gradual improvement in the supply chain.

Margin on cost of sales fell by €2.7 million compared with the first half of 2022, to €53.3 million. However, the division is continuing to strengthen its resources, and is absorbing some of the Group's global expense growth.

The division's recurring operating profit came to €13.6 million (6.8% of sales), down €9.3 million compared with the first half of 2022 (€22.9 million, or 12.0% of sales).

Investment

The Product Division plans to invest in a new mechanical welding center adjoining the aerial work platform factories of Candé to secure future business growth. The €60m investment will be additional to the €460m in the New Horizons 2025 plan. Commissioning is scheduled for the end of 2025.

Glossary :

Data as a percentage in parentheses express a percentage of net sales. Half-year financial statements and Statutory auditors' review report available online on the company website (in French). Limited review procedures performed by the auditors.

(1) Like for like, so at constant scope and exchange rates:

- Scope:

- for the company Lifttek acquired in May 2022, restatement from January 1 of the current year to the anniversary date of its acquisition ;

- for the companies acquired in 2023 (easyLi in January 2023 and GI.ERRE SRL in March 2023), restatement from the date of their acquisition to June 30, 2023 ; - no company exited the scope in 2022 and 2023.

- Application of the exchange rate of the previous year on the aggregates of the current year.

(2) The order book corresponds to machine orders received and not yet delivered, for which the group:

- has not yet provided the promised machines to the customer;

- has not yet received consideration and has not yet been entitled to consideration.

These orders are delivered within less than one year (excluding exceptional periods as experienced by the group since 2021) and may be cancelled. The order book may vary due to changes in consolidation scope, adjustments, and foreign currency translation effects. In order to limit the effects of inflation, the group has integrated in H1 2022 mechanisms for adjusting its sales prices at the time of delivery. These mechanisms will influence the valuation of the orderbook on equipment, which is booked and valued at the price on the day the order is placed.

The Group has also introduced in 2022 a new policy of gradually opening the order intake horizons for dealers in order to limit the effects of anticipation without an end market customer.

(3) EBITDA: Earnings before interest, taxes, depreciation, and amortization, restated from IFRS 16 impact (on 6 months)

(4) Net debt and gearing excluding IFRS 16

(5) Gearing: Financial ratio measuring the net debt divided by shareholders' equity

ISIN code: FR0000038606 Indices: CAC ALL SHARES, CAC ALL-TRADABLE, CAC INDUSTRIALS, CAC MID & SMALL, CAC SMALL, EN FAMILY BUSINESS

FORTHCOMING EVENT October 26, 2023 (after market closing) Q3 2023 Sales revenues

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

As a world reference in the handling, aerial work platform and earth moving sectors, Manitou Group's mission is to improve working conditions, safety and performance around the world, while protecting people and their environment. Through its flagship brands – Manitou and Gehl – the group designs, produces, distributes and services equipment for construction, agriculture and industry. By placing innovation at the heart of its development, Manitou Group constantly seeks to bring value to all its stakeholders. Through the expertise of its network of 900 dealers, the group works more closely with its customers every day. Staying true to its roots, Manitou Group is headquartered in France. It achieved a 2022 turnover of €2.4 billion and brings together 5,000 talented people worldwide, all driven by a shared passion.

FINANCIAL EXTRACT

JUNE 30, 2023

1. STATEMENTS OF COMPREHENSIVE INCOME

CONSOLIDATED INCOME STATEMENT

	in thousands of euros	2022	H1 2022	H1 2023
Net sales		2,361,627	1,056,717	1,401,516
Cost of goods & services sold		-2,049,278	-900,693	-1,180,323
Research & development costs		-34,924	-16,821	-20,857
Selling, marketing and services expenses		-127,376	-61,984	-73,576
Administrative expenses		-66,659	-32,018	-39,484
Other operating expenses and income		1,247	570	793
Recurring operating income		84,638	45,771	88,070
Other non-recurring income and expenses		-2,357	-1,398	1,135
Operating income		82,281	44,373	89,205
Share of profits of associates		1,986	1,054	1,148
Operating income including net income from associates		84,267	45,427	90,353
Financial income		38,007	30,175	40,740
Financial expenses		-42,270	-34,378	-45,396
Financial result		-4,263	-4,203	-4,655
Income before tax		80,004	41,224	85,698
Income taxes		-24,950	-11,922	-23,096
Net income		55,054	29,301	62,600
Attributable to equity holders of the parent		54,725	29,066	62,531
Attributable to non-controlling equity interests		329	235	69

EARNINGS PER SHARE (IN EUROS)

	2022	H1 2022	H1 2023
Net income attributable to the equity holders of the parent	1.43	0.76	1.63
Diluted earnings per share	1.43	0.76	1.63

OTHER COMPONENTS OF COMPREHENSIVE INCOME AND EXPENSES & COMPREHENSIVE INCOME

in thousands of euros	2022	H1 2022	H1 2023
Income (loss) for the year	55,054	29,301	62,600
Items that will be reclassified to profit or loss in subsequent periods
Adjustments to fair value of the financial assets	-71	-70	0
Translation differences arising on foreign activities	9,422	22,363	-8,162
Interest rate hedging and exchange instruments	4,069	6,548	-3,412
Tax impacts	-1,034	-1,675	881
Items that will not be reclassified to profit or loss in subsequent periods
Actuarial gains (losses) on defined benefits plans	5,943	4,894	3
Tax impacts	-1,507	-1,614	194
Total gains and losses recognized directly in other components of comprehensive income	16,822	30,446	-10,496
Comprehensive income	71,877	59,747	52,105
Attributable to equity holders of the parent	71,609	59,540	52,013
Attributable to non-controlling interests	268	207	92

2. CONSOLIDATED STATEMENT OF FINANCIAL POSITION

ASSETS

	in thousands of euros	December 31, 2022	Net amount as at June 30, 2023
Goodwill		3,221	5,747
Intangible assets		69,665	75,940
Tangible assets		256,436	269,874
Right-of-use of leased assets		19,228	19,093
Investments in associates		19,160	19,423
Sales financing receivables		2,343	1,023
Other non-current assets		12,654	13,217
Deferred tax assets		13,062	15,991
Non-current assets		395,770	420,307
Inventories & Work in progress		717,978	867,688
Net trade receivables		488,635	517,821
Current income tax		10,084	3,644
Other current assets		89,978	116,376
Cash and cash equivalents		60,704	26,319
Current assets		1,367,379	1,531,847
Non-current assets held for sale		0	0
Total assets		1,763,148	1,952,154

EQUITY & LIABILITIES

in thousands of euros December 31, 2022	Net amount as at June 30, 2023
Share capital 39,668	39,668
Share premiums 46,098	46,098
Treasury shares -23,820	-23,975
Reserves and profit for the year – equity holder of the parent 728,874	756,705
Equity attributable to owners of parent 790,821	818,496
Non-controlling interests 759	595
Total equity 791,579	819,091
Non-current provisions 34,833	40,052
Non-current financial liabilities 138,759	137,037
Non-current lease debts 14,973	14,332
Other non-current liabilities 6,654	7,590
Deferred tax liabilities 4,086	6,976
Non-current liabilities 199,304	205,986
Current provisions 26,727	25,189
Current financial liabilities 142,622	281,243
Current lease debts 6,006	6,435
Trade payables 420,341	419,348
Current income tax 4,437	5,904
Other current liabilities 172,132	188,958
Current liabilities 772,265	927,077
Total equity & liabilities 1,763,148	1,952,154

3. CONSOLIDATED SHAREHOLDERS' EQUITY

						Total equity
In thousands of euros	Share capital	Share premium	Cumulative translation adjustment	Treasury shares	Consolidated reserves	Attributable to equity holders of the parent company	Non controlling interests	Total
As of December 31, 2021	39,668	46,098	4,367	-23,998	684,109	750,244	1,019	751,263
Impact of new standards								0
As of January 1, 2022	39,668	46,098	4,367	-23,998	684,109	750,244	1,019	751,263
Gains and losses recognized			22,365		8,109	30,474	-28	30,446
in equity
Net income					29,066	29,066	235	29,301
Comprehensive income	0	0	22,365	0	37,175	59,540	207	59,747
Stock option plan-related								0
Dividends paid					-30,614	-30,614	-24	-30,638
Treasury shares				116	-103	13		13
Capital increase								0
Changes in control of consolidated entities								0
Acquisitions and disposal of minority interests' shares								0
Purchase commitments for								0
minority interests' shares Other					206	206	-206	0
As of June 30, 2022	39,668	46,098	26,732	-23,882	690,774	779,390	996	780,386
Impact of new standards								0
As of July 1, 2022	39,668	46,098	26,732	-23,882	690,774	779,390	996	780,386
Gains and losses recognized			-12,904		-686	-13,590	-34	-13,624
in equity
Net income					25,659	25,659	95	25,753
Comprehensive income	0	0	-12,904	0	24,972	12,069	61	12,129
Stock option plan-related						0		0
Dividends paid Treasury shares				62	0 15	0 76	-29	-29 76
Capital increase								0
Changes in control of
consolidated entities						0		0
Acquisitions and disposal of			-7		64	57	-268	-212
minority interests' shares
Purchase commitments for minority interests' shares						0		0
Other					-770	-770	0	-771
As December 31, 2022	39,668	46,098	13,821	-23,820	715,054	790,820	759	791,579
Impact of new standards								0
As January 1, 2023	39,668	46,098	13,821	-23,820	715,054	790,820	759	791,579
Gains and losses recognized in equity			-8,184		-2,334	-10,518	22	-10,496
Net income					62,531	62,531	69	62,600
Comprehensive income	0	0	-8,184	0	60,197	52,013	92	52,105
Stock option plan-related								0
Dividends paid					-24,108	-24,108	-37	-24,145
Treasury shares				-155	11	-144		-144
Capital increase					0	0		0
Changes in control of consolidated entities					0	0		0
Acquisitions and disposal of minority interests' shares			2		-149	-147	-218	-364
Purchase commitments for								0
minority interests' shares Other					60	60	0	60
As June 30, 2023	39,668	46,098	5,639	-23,975	751,066	818,496	595	819,091

4. CASH FLOW STATEMENT

	In thousands of euros	2022	H1 2022	H1 2023
Net income		55,054	29,301	62,600
Income from equity affiliates net of dividends		-1,503	-501	-30
Amortizations and depreciations		54,911	27,242	28,959
Provisions and impairments		3,673	3,501	3,832
Income tax expense (current and deferred)		24,950	11,922	23,096
Other non-cash income and expenses (of which gains and losses on disposal of fixed assets)		-87	3,291	-95
Cash flow operations		136,998	74,756	118,363
Tax paid		-20,842	-9,031	-14,393
Change in working capital requirement		-209,501	-183,292	-192,570
Change in capitalized lease machines		-11,122	-5,175	-7,031
Cash flow from operating activities		-104,466	-122,741	-95,630
Proceeds from sales of intangible assets		-20,839	-10,077	-11,790
Proceeds from sales of tangible assets		-72,693	-26,829	-30,127
Change in fixed assets payables		1,076	194	-1,222
Disposals of property, plant and equipment and intangible assets		598	281	142
Acquisitions of investments in obtaining control, net of cash acquired		-3,274	-3,972	-2,706
Disposals of investments with loss of control, net of cash transferred		0	0	0
Others		-862	91	354
Cash flow from investing activities		-95,994	-40,312	-45,349
Capital increase		0	0	0
Dividends paid		-30,667	-30,638	-24,145
Purchase of treasury shares		178	116	-155
Repurchase of non-controlling interests		-212	0	-366
Change in others financials liabilities and assets		64,634	-1,881	109,593
Payment of finance lease liabilities		-6,405	-2,951	-3,119
Others		-4,567	-839	-1,662
Cash flow from financing activities		22,961	-36,193	80,146
Net increase (decrease) in cash, cash equivalents, and bank overdrafts		-177,499	-199,246	-60,833
Cash, cash equivalents and bank overdrafts at beginning of the year		192,712	192,712	15,996
Exchange gains (losses) on cash and bank overdrafts		783	3,267	-354
Cash, cash equivalents and bank overdrafts at end of year		15,996	-3,267	-45,190

5. EXTRACT FROM THE NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AT JUNE 30, 2023

EASYLI ACQUISITION

On January 23, 2023, the group acquired a stake of 82% in EasyLi, a specialised company in the design and production of lithium-ion batteries. For the group, this transaction enables to acquire specific skills as part of its energy transition. Based in Poitiers (France), EasyLi has 25 employees and recorded a revenue of 1 million euros in 2022.

Cross put and call options have been contracted with minority shareholders on 18% of the share capital. The Group has taken these options into account in calculating its percentage interest, which is 100% as of June 30th, 2023. A discounted debt of €0.7 million has been recognised for this investment.

GI.ERRE SRL ACQUISITION

On March 1, 2023, the group acquired all the shares of the Italian company GI.ERRE SRL, based in Castelfranco in Italy and specialised in service activities for Manitou products. GI.ERRE had a revenue of 4 million euros in 2022 and has 14 employees.

MANITOU PS ADDITIONAL STAKE ACQUISITION

In May 2023, the Manitou Group increased its stake in Manitou PS (United Kingdom), which itself owns 100% of the share capital of Mawsley Machinery, and now holds 90% of the company's share capital. The impact of this transaction is not significant on the Group's financial statements.

MONITORING OF LITIGATION FOR INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHT

In May 2017, Manitou Group was sued by JC Bamford Excavators Limited (JCB) in France, the United Kingdom and then Italy for alleged infringement of two European patents and one UK patent (respectively European patent EP 1 532 065 B2(EP 065) its equivalent UK Patent GB 2 390 595 B (GB565) and European patent EP 2 263 965 B9) relating to certain features concerning the overload cut-off control system of certain telescopic forklift trucks manufactured and/or marketed in these three countries.

In May 2017, the plaintiff filed a claim in the French court for a provision of 20 million euros, to be increased to 50 million euros in June 2018. The financial claims before the English court were not quantified and are still not quantified at the date of publication of this report, but the summons indicates that for procedural purposes the commercial value of the claim is estimated to be in excess off 10 million. For Italy, the summons does not specify any quantified claim.

In December 2018, JCB served Manitou Group with a new patent infringement suit in France and the United Kingdom relating to a third European patent (EP 2 616 382 B3 (EP 382), also relating to certain features concerning the overload cut-off control system of certain telescopic forklift trucks. This summons in France takes up the request for a provision in the amount of 50 million euros, subsequently increased to 100 million euros in its last conclusions communicated in May 2020. To date it is not yet quantified in the UK The summons for this third patent has been the subject of joint proceedings in the United Kingdom but remains separate in France.

In 2018,in the French proceeding, JCB had produced an expert opinion estimating its damages of 160 million euros for the first two patents. At the end of 2019, in the first main proceedings, JCB increased its damage assessment to 190 million euros in its final conclusions. This increase is due to an update of the injury in its duration, which according to JCB is until March 2019. This assessment also includes the estimated injury under the third patent.

In France, in the context of a procedural incident in 2018, JCB applied for preliminary injunctions against Manitou BF. A decision was issued by the Pre-Trial Judge on 31 January 2019, which dismissed the applicant's request for preliminary injunction on the first patent on which JCB based its allegations and, regarding the second patent, prohibited Manitou BF from manufacturing, offering for sale, renting and owning an old configuration of certain telescopic forklift trucks. This decision has no impact on Manitou BF's business as it relates to the ordering system for certain models produced and sold before August 2017 which are therefore no longer manufactured by Manitou BF, as underlined in the

order. Manitou BF immediately appealed this decision in order to challenge the prohibition order in so far as it related only to a configuration that Manitou had ceased to produce for 18 months. This immediate appeal on the grounds of abuse of authority was held to be inadmissible, reserving the possibility of appeal with judgment on the merits

In 2020, the legal proceedings on the merits of the dispute relating to the first two patents continued. On February 26, 2021, the Paris Court of Justice ("Tribunal Judiciaire") ruled, in first instance, on the French part relating to these first two patents.

Under the terms of this decision, the Tribunal invalidated the French part of the second patent in its entirety rendering ineffective the January 31, 2019 preliminary injunction order against Manitou BF. Then, JCB tried unsuccessfully to limit its 2nd patent to the EPO (European Patent Office), which rejected its limitation claim on October 4th, 2021. JCB didn't appeal against this decision.

The Court also invalidated most of the claims of the French part of the first patent (EP 065). The Court found that only two claims of the French part of the first patent were infringed by three models of equipment from an old configuration which is no longer marketed by Manitou BF since May 2017. Manitou challenges this decision while noting that it has no impact on its business as this old configuration is no longer marketed.

Given the very residual character of the infringement upheld, the Court ordered Manitou BF to pay the plaintiff the total sum of 150,000 euros for the loss suffered, rejecting the claim of JCB, which was claiming a loss of 190 million euros. The Court's decision reinforces the position of Manitou, which has always contested the merits of the plaintiff's action and the disproportionate nature of its claims. JCB and Manitou BF appealed against this decision.

JCB and Manitou BF have appealed this decision and the appeal process is ongoing. The procedural schedule has been postponed to 2023. To date the procedural schedule does not allow a decision by the Court of Appeal to be considered before 2024. It should also be noted that Manitou had initiated an action for annulment of the seizureinfringement carried out by JCB within the framework of this procedure. The judge responded favorably to MANITOU's request on June 29, 2022; the June 2017 JCB infringement seizure was invalidated. Following the decision of the Paris Court of Appeal of June 29, 2022 confirming the nullity of the seizure-infringement, JCB decided to appeal to the Court of Cassation on November 29, 2022.

The parallel proceeding relating to the third patent is still ongoing, and the court hearing will take place in October 2023.

Following the decision of the Paris Court of Justice of February 26, 2012, which confirms the group's positions, an expense of 0.2 million euros had been recorded for the first patent in 2020 and no provision was recognized in title of the second patent.

For the third patent, in the state of progress of the procedures in France, the financial risk likely to be incurred is still difficult to estimate reliably. In addition, a significant outflow of resources under this request seems unlikely given the elements put forward by the Manitou group to defend itself. Consequently, no provision for this request has been recorded in the group's accounts.

In the United-Kingdom, a case management conference was held in January 2019 after JCB finally performed its due diligence. The litigation schedule has been established and the hearing originally scheduled for October 2020 has been postponed due to the increased length of the trial resulting from the addition of the third patent in the proceeding. According to this new schedule, the case has been pleaded before the High Court of Justice in November 2021. On July 5, 2022, the High Court of London delivered its first instance decision in the infringement dispute between J. C. Bamford Excavators Ltd (JCB) and Manitou BF and Manitou UK Ltd. Three JCB patents examined in the trial have been fully disabled:

• the European patent EP 1 532 065 B2 (EP 065) and its British equivalent GB 2 390 595B (GB 595);
• and the European patent EP 2 263 965 B9 (EP 965).

As a result, all infringement actions brought by JCB against Manitou based on these three patents have been dismissed.

Furthermore, the Court considered that the European patent EP 2 616 382 B3 (EP 382) was valid and that consequently certain configurations of certain telehandlers which were sold in Great Britain were infringing.

Manitou appealed this judgment in January 2023.

The financial consequences of this decision will only be known at the end of a compensation procedure, the final schedule of which will be confirmed in 2023. At the closing date, the group isn't able to make a reliable estimate of an outflow of ressources. Consequently, no provision has been recorder in the group's accounts for this risk.

In Italy, the proceedings on the merits relating to these first two patents remain in a preliminary phase, the appointment of a court expert was pronounced at the end of 2019 and the court expert measures are still in progress at the closing date. The expert report was sent to the judge on October 27, 2022, on which the judge should rule by the end of 2023.

In Italy, JCB had also requested interim injunctions against Manitou's Italian subsidiary on the second and third patents. This request was rejected by the Italian courts by decision of January 30, 2020. JCB has not appealed this decision.

Given the progress of the proceedings, a significant outflow of resources in respect of this claim seems unlikely in respect of the matters put forward by Manitou Group to defend itself. Consequently, no provision for this claim has been recognized in the group's financial statements.

The group will continue to firmly defend itself against infringement allegations of three patents claimed by JCB.

INFORMATION ON OPERATING SEGMENTS

CONSOLIDATED INCOME STATEMENT BY DIVISION

In accordance with IFRS 8, the information by operating segment is prepared on the basis of operating reports submitted to group management. This information is prepared in accordance with the IFRS applicable to consolidated financial statements.

The group is organised around two operating divisions:

• the Product division includes all French, Italian, American, and Indian production sites dedicated in particular to telehandlers, industrial masted forklift trucks and all-terrain trucks, truck-mounted forklifts, aerial work platforms, compact wheel loaders, compact track loaders, and articulated compact loaders, backhoe loaders and telescopic loaders. Its mission is to optimize the development and production of Manitou, Gehl, and Mustang by Manitou brand name products;
• the S&S (Services & Solutions) division includes service activities to support sales (financing approaches, warranty contracts, maintenance and full service contracts, fleet management, etc.), after-sales services (spare parts, technical training, warranty contract management, used equipment management, etc.) and services to end users (geolocation, user training, advice, etc.). The aim of this division is to create service offers to meet the expectations of each of our customers in our value chain and increase the resilience of group sales.

These two divisions design and assemble the products and services that are distributed by the sales and marketing organization to dealers and the group's major accounts in 140 countries.

	Product Division		S&S Division		TOTAL
In thousands of euros	H1 2022	H1 2023	H1 2022	H1 2023	H1 2022	H1 2023
Net sales	865,757	1,201,381	190,960	200,136	1,056,717	1,401,516
Cost of goods & services sold	-765,726	-1,033,470	-134,967	-146,852	-900,693	-1,180,323
Gross margin	100,031	167,910	55,993	53,283	156,024	221,194
As a %	11.6%	14.0%	29.3%	26.6%	14.8%	15.8%
R&D expenses	-16,821	-20,754	0	-103	-16,821	-20,857
Selling, Marketing & Service expenses	-34,608	-40,740	-27,376	-32,836	-61,984	-73,576
Administrative expenses	-26,342	-32,585	-5,676	-6,899	-32,018	-39,484
Other operating income and expenses	577	607	-7	187	570	793
Recurring operating profit	22,836	74,438	22,935	13,632	45,771	88,070
As a %	2.6%	6.2%	12.0%	6.8%	4.3%	6.3%
Non-recurring operating income and expenses	-1,338	903	-60	232	-1,398	1,135
Operating income	21,498	75,341	22,875	13,865	44,373	89,205
As a %	2.5%	6.3%	12.0%	6.9%	4.2%	6.4%
Share of profits of associates	0	0	1,054	1,148	1,054	1,148
Operating Income including Net Income from associates	21,498	75,341	23,928	15,013	45,427	90,353

SALES BY DIVISION AND REGION

		H1 2022 net sales				H1 2023 net sales
SOUTHERN EUROPE	NORTHERN EUROPE	AMERICAS	APAM*	TOTAL	In €m and % of total	SOUTHERN EUROPE	NORTHERN EUROPE	AMERICAS	APAM*	TOTAL
298.5	320.2	166.3	80.7	865.8	Product	398.4	441.2	270.4	91.4	1,201.4
28%	30%	16%	8%	82%	Division	28%	31%	19%	7%	86%
68.6	65.4	34.3	22.6	191.0	S&S	74.0	67.3	33.6	25.3	200.1
6%	6%	3%	2%	18%	Division	5%	5%	2%	2%	14%
367.1	385.6	200.6	103.4	1,056.7		472.4	508.5	304.0	116.6	1,401.5
35%	36%	19%	10%	100%	TOTAL	34%	36%	22%	8%	100%

* Asia, Pacific, Africa, Middle East

POST-CLOSING EVENTS

To the company's knowledge, there were no significant post-closing events at the date of approval of the consolidated half-year financial statements ended on June 30th , 2023 by the Board of Directors on July 27, 2023.

LIST OF SUBSIDIARIES AND AFFILIATES

	Parent company
Manitou BF	Ancenis, France
	Consolidated companies	Consolidation method	% interest
Production companies
EasyLi	Poitiers, France	FC	100%
LMH Solutions	Beaupréau-en-Mauges, France	FC	100%
Manitou Equipment America LLC	West Bend, Wisconsin, United-States	FC	100%
Manitou Equipment India	Greater Noïda, India	FC	100%
Manitou Italia S.R.L	Castelfranco Emilia, Italia	FC	100%
Distribution companies
Compagnie Francaise de Manutention Ile-de-France	Jouy le Moutier, France	FC	100%
Gi.Erre SRL	Castelfranco Emilia, Italia	FC	100%
Manitou Asia Pte Ltd.	Singapore	FC	100%
Manitou Australia Pty Ltd.	Alexandria, Australia	FC	100%
Manitou Brasil Ltda	São Paulo, Brazil	FC	100%
Manitou Benelux SA	Perwez, Belgium	FC	100%
Manitou Center Singapore	Singapore	FC	100%
Manitou Centres SA Pty Ltd	Johannesbourg, South Africa	FC	100%
Manitou Chile	Las Condes, Chile	FC	100%
Manitou China Co Ltd.	Shanghai, China	FC	100%
Manitou Deutschland GmbH	Friedrichsdorf, Germany	FC	100%
Manitou Global Services	Ancenis, France	FC	100%
Manitou Interface and Logistics Europe	Perwez, Belgium	FC	100%
Manitou Japan Co Ltd	Tokyo, Japan	FC	100%
Manitou Malaysia MH	Kuala Lumpur, Malaisia	FC	100%
Manitou Manutencion Espana SL	Madrid, Spain	FC	100%
Manitou Mexico	Mexico DF, Mexico	FC	100%
Manitou Middle East Fze	Jebel Ali, United Arab Emirates	FC	100%
Manitou Nordics Sia	Riga, Latvia	FC	100%
Manitou North America LLC	West Bend, Wisconsin, United-States	FC	100%
Manitou Polska Sp Z.o.o.	Raszyn, Poland	FC	100%
Manitou Portugal SA	Villa Franca, Portugal	FC	100%
Manitou South Asia Pte Ltd.	Gurgaon, India	FC	100%
Manitou Southern Africa Pty Ltd.	Johannesbourg, South Africa	FC	100%
Manitou UK Ltd.	Verwood, United-Kingdom	FC	99,4%
Manitou Vostok Llc	Moscou, Russia Federation	FC	100%
Marpoll Pty Ltd (LiftRite Hire & Sales)	Perth, Australia	FC	95,5%
Mawsley Machinery Ltd.	Northampton, United-Kingdom	FC	90%
MN-Lifttek Oy	Vantaa, Finland	FC	100%
Associates companies
Manitou Group Finance	Nanterre, France	EM	49%
Manitou Finance Ltd.	Basingstoke, United-Kingdom	EM	49%
Other companies*
Cobra MS*	Ancenis, France	FC	100%
Manitou America Holding Inc.	West Bend, Wisconsin, United-States	FC	100%
Manitou Asia Pacific Holding	Singapore	FC	100%
Manitou Développement	Ancenis, France	FC	100%
Manitou Holding Southern Africa Pty Ltd	Johannesbourg, South Africa	FC	100%
Manitou PS	Verwood, United-Kingdom	FC	90%

FC: Full Consolidation

EM: Equity Method

*Holdings and companies without activity