Bénéteau Group1

Bénéteau is a family-owned group listed on Euronext Paris, and owned by its parent company,
Bénéteau SA, a French public limited company (société anonyme). Founded in 1884, the
Bénéteau family shipyard has evolved over the decades, from fishing and pleasure boating to
diversification into other industrial sectors. The Group has developed unique skills and
technical know-how. With a strong international industrial presence and a worldwide sales
network, the Group has a workforce of 8,300 employees, mainly in France, the United States,
Poland, Italy and China.

Two main activities are carried out through the Boats and Housing divisions. :

-Through the 12 brands of its Boat Division, the Bénéteau Group offers more than 200 models
of pleasure boats that meet the diverse needs and sailing projects of its customers, whether
sailing or motor, monohull or catamaran. For the 2018-19 season, the Group's brands have
offered 38 new models. To support its development in the dynamic outboard motorboat and
small sailboat segment, the Group acquired the Polish shipyard Delphia and Seascape in
Slovenia. In the fall of 2019, it presented the first models of its new brand of Excess catamarans.

- The three brands of the Group's Habitat division offer a complete range of eco-designed
mobile homes and outdoor residences that meet the highest standards of quality, comfort and
practicality. The brands offer 27 models ranging from one to four bedrooms. All of our mobile
homes are built from recyclable materials.

In the digital age, Groupe Bénéteau is developing numerous initiatives to respond to new
consumption patterns and open its products to as many people as possible. Leasyboat, boat
clubs and Band of Boats, a digital platform for multi-brand nautical services, were launched in
2018 to meet the aspirations of our customers. The subsidiary SGB Finance has been assisting
individuals, dealers and professionals for 20 years in the financing of their projects.

The Group's production sites are evenly distributed to meet the demands of the major regional
markets. In Europe, where nearly 50% of the turnover is generated, the Boat and Housing
divisions operate 25 production sites (21 sites in France, 2 in Italy and 2 in Poland). The Group's
second largest market is North America, where nearly 30% of revenues are generated. The
Group has two boat production sites in the United States: one in South Carolina and one in
Michigan.

KEY FIGURES 2018-19

- 17 marques et services
- 8361 employees
- 1,336.2 million in revenues in 2018-19
- 3.8% growth in reported figures
- 27 production sites around the world

The boating market has developed strongly in recent years and international competition is
fierce. There are a large number of small shipyards everywhere, specialized in one type of boat

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Information has been taken from the management report, the reference document and websites

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(Cap-Camarat company, Dubourdieu company, etc.) which may be independent or belong to
very large groups (the case of Zodiac). There are also shipyards specializing in large vessels or
luxury yachts (Rodriguez Group in Cannes, Couach in the Arcachon basin, etc.) or sailboats
(Poncin Group). If the competition to date was mainly American or Italian, it now comes from
China with groups such as SHIG Weichai which bought the number one yachting company, the
Italian Ferretti which controls the Riva and Itama brands. The number of yacht-related trade
shows (Monaco, Paris, La Rochelle, Cannes, etc.) reflects the dynamism of this market.

Work to be done

Using the information provided in Appendices 1 and 2 :

1. Calculate the main ratios proposed in the table in Appendix 11
2. Conduct a financial analysis. To do so, you will study wealth creation (activities
and margins), solvency and liquidity, financial structure and profitability of the
group
3. Analyze stock and market data.
4. What do you think of the Bénéteau Group ?

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 Appendix 1
Information on the activity and on the operational part

Boat business

Housing business

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Appendix 2 – Consolidated Statements 2018/2019

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Appendix 3 – Consolidated Statements 2017/2018

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Appendix 4 – Consolidated Statements 2016/2017

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 Appendix 5 - Miscellaneous financial information

Cash flow :
The cash position of each Group company is centralized at the level of the holding company,
Bénéteau SA, via a cash centralization agreement.
Euro current accounts bear interest at Euribor 3 months + 0.25% for lenders and Euribor 3
months + 1% for borrowers.
US dollar current accounts bear interest at Libor US 3 months + 1.2% for borrowers.
The Group's cash is invested exclusively in risk-free certificates of deposit, such as short-term
certificates of deposit with banks selected by Executive Management after consultation with
the Board of Directors.

Exchange and interest rates :

The group can hedge its medium-term borrowings with interest rate swaps.
The Group hedges foreign exchange risk on the US dollar and the zloty through forward sales
and purchases. Hedging decisions are made by Group General Management and the
transactions are set up by the Holding Company.

The analysis of net cash and cash equivalents is as follows:

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 FINANCIAL GLOSSARY

At constant exchange rates: change calculated on the basis of the figures for the first half of
2019-2020 translated at the exchange rate for the first half of 2018-2019.

EBITDA: earnings before interest, taxes, depreciation and amortization and following IFRS
GAAP: IFRS2 and IAS19; i.e. operating income restated for the following IFRS
charges/reversals of provisions for contingencies and losses, depreciation and amortization

Free Cash Flow: cash generated by the company during the fiscal year, before payment of
dividends and cash flows on treasury shares and the impact of changes in the scope of
consolidation.

Net cash: cash and cash equivalents, net of financial debt and borrowings, which include
IFRS16 lease liabilities and financial debt on commitments to buy out non-controlling interests.

Current Operating Income (COI) adjusted for currency hedges: operating income recurring
(COI) to which is added the result of currency hedges. Profit from recurring operations adjusted
for currency hedges is an alternative performance indicator used to measure the Group's
performance after taking into account the impact of currency hedges. Since 2016, the result of
currency hedges mainly reflects the difference between forward purchase / sale positions and
the accounting rate for foreign currency transactions (USD, PLN). The Group hedges its
commercial exchange rate risk by entering into forward currency transactions only.

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Appendix 6 - List of subsidiaries and associates

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 Appendix 7 - Outlook for 2019/2020

After a first half year growth of 4.8%, Group revenue in the third quarter, affected by the Covid-
19 health crisis, amounted to 249.3 million euros, down 42.6% compared to the third quarter of
the previous year. The halt in production during half of the quarter, followed by a gradual
recovery due to strict health constraints explain this decline. The Boat business was down
43.3% while the Housing business was down 39.4%. As a result, consolidated revenues for the
first nine months of the 2019-2020 fiscal year totaled €768.7 million, down 17.3% compared
with the same period of the previous year and down 17.9% at constant exchange rates. The Boat
activity is down 17.8%, while the Housing activity, which has resumed its shipments slightly
faster, is down 15.4% compared to the same period in 2019.

REVENUES AS OF MAY 31, 2020

BOAT DIVISION :
Boat sales for the first 9 months were 623.2 million euros, down 17.8% compared to the same
period last year and 18.4% at constant exchange rates.

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As all of the Group's plants have been shut down due to health risks, the decline in revenues
affects all segments and geographical areas, all of which are down in activity at the end of May
2020, with the exception of sales to fleets, which are up 26.8% thanks to an excellent first half
(+60%).

Based on published figures, North America (-22.4%) was slightly less impacted than Europe (-
26.6%), despite a sharp decline of -46.6% for American brands. The other regions of the world
were down 19.5%.

Over the nine-month period, the decline in the motorboat segments (-21.7%) was contrasted: a
limited decline for outboard and inboard powerboats from 30 to 60 feet, and significantly more
pronounced for the inboard (less than 30 feet and more than 60 feet) and jet segments. Revenues
from Sailing declined by 13.5%, a decline that was offset in particular by the fleet sales
mentioned above. At the end of May 2020, the Sail and Engine segments each accounted for
50% of the Boat division's revenues.

HOUSING DIVISION :

145.3 million for the first 9 months, down 15.4% compared with the first 9 months of the
previous year. The good momentum of the first half of the year (+5.4%) was abruptly halted
by the suspension of production in the third quarter, which saw the Housing division's
revenues ('48.3 million) fall 39.4% compared with the third quarter of the previous year.

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 Appendix 8 - Bénéteau stock market information

As a family business, the Board of Directors changed in February 2019 from a Management
Board with a Supervisory Board. Its composition is as follows:

CEO : Jérôme de Metz

MEMBERS: Louis-Claude Roux ; Annette Roux ; Anne Leitzgen ; Yves Lyon-Caen ;
Sébastien Moynot (Bpifrance) ; Catherine Pourre ; Claude Brignon* ; Luc Dupé* ; Christian de
Labriffe* (*censeurs)

STRUCTURE DU CAPITAL
82 789 840 shares per € 0,10
Social Capital : € 8 278 984 €

As of August 31, 2019, S.A. BERI 21, a company owned by the family group, held 54.36% of
the share capital of BENETEAU S.A. No other shareholder holds more than 5% of the share
capital of BENETEAU

BERI 21 has double voting rights, like any registered shareholder for at least 2 years. SA BERI
21 holds 54.36% of the capital and 69.78% of the voting rights. 1.14% of the capital is held in
treasury stock, without voting rights. The rest of the capital is held by the public. In accordance
with the Articles of Association, any shareholder holding more than 2.5% of the capital must
inform the company.

There are no preference shares.

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IDENTITY
Company name: BENETEAU
Stock Echange : Euronext Paris
Compartiment : Eurolist Market A
Date list 1st IPO : 1984
ISIN code : FR0000035164
Nominal value : € 0,10
Number of shares : 82 789 840
Price at the date : 2020/08/24 : € 6,74

Bénéteau's share price

Years Dec-31 Aug-31

2019 10,85 8,60
2018 11,58 14,00
2017 20,10 13,56
2016 13,60 9,04

For the calculation of ratios, the share price as at 31/08/N will be used as a reference. The
number of shares is the same as at 31/08 of each year.

Bénéteau's share price over the last 10 years

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 Financial analysts' forecasts

REAL 2019 EST. 2020 EST. 2021

Dividend per share € 0.23 € 0.00 € 0.10
Yield 3.37% 0.00% 1.47%
EPS € 0.61 € 0.13 € 0.18
PER 11.28 51.22 37.91

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 Appendix 9 - Bénéteau Group to sell several boat brands

Briag Merlet – 2020/07/10

The world leader in yachting has presented its strategic plan 2020-2025. Divestment of
motor and sailboat brands, industrial reorganization, diversification towards rental and
marinas.... Here are the key points of the Bénéteau Group's program.

Bénéteau launches its strategic plan in a context of crisis

On July 9, 2020, the Bénéteau Group presented its strategic plan for the period 2020-2025.
Expected since the arrival of the new CEO, Jérôme de Metz, in the summer of 2019, it had been
postponed following the Covid crisis19. The consequences of this crisis have created a special
framework for announcements: at the same time, the Bénéteau Group delivered its results for
the first 9 months of its fiscal year, recording an overall drop in sales of -17.9% over the period
and -18.4% for the yachts division alone. The most significant fall was in the European and
American markets.

Disposal of the CNB, Monte Carlo Yachts, Glastron and Scarab brands
Already underway since the arrival of Gianguido Girotti as Executive Vice President Brands
and Products, reflection on the Bénéteau Group's different brands and their possible redundancy
is accelerating. In its new strategic plan Let's Go Beyond, the French leader in yachting
announces, behind the name "Maison des Marques", a refocusing on 8 brands instead of 12. By
2025, the CNB, Monte Carlo Yachts, Glastron and Scarab brands will have been sold or
disappeared from the group's catalog. The overall number of models offered should decrease
from 183 to 128, a decrease of 30%.

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 Brands retained by the Bénéteau Group

Refocusing the range of boats

The group identifies 4 main segments of the boating industry:
- the dayboat, whose size panel is reduced, starting at 18 feet instead of 16. The Four Winns
brand should be redesigned. A sketch of a catamaran is proposed as an illustration...
- "real estate on the water", grouping motorboats, trawlers and large catamarans. The number
of models is divided by 2. Jeanneau is expected to leave this segment and the sale of Monte
Carlo Yachts reduces the size of the flagship to 80 feet instead of 105. The positioning shows
the group's refocusing on yachting, moving away from large yachts.
- monohull sailing, whose panel is greatly reduced. The small boats, whose return was
announced, are again eliminated. The entry-level range is increased to 27 feet instead of 14.
The sale of CNB also lowers the top of the panel to 65 feet.
- Multihull sailing is maintained in the most dynamic segment of the yachting market, with the
historic Lagoon brand and the newborn Excess.

Reduce the cost of production and development of boats

In addition to the positioning of its brands, the Bénéteau Group is working on its industrial
operations, with the ambition of achieving an operating margin in excess of 10% as soon as
yachting returns to its pre-crisis level. It aims to reduce the development time for new models
by 25%. According to management, the improvement in profitability should be achieved by
reducing the cost of tools, increasing the number of common systems between models and
sharing plants between brands, by boat segment. The organization chart has also been revised
to operate by activity at the global level.

The organizational chart is also revised to operate by activity at the global level.

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 Organizational chart of the Bénéteau Group

To Bénéteau marinas and rental bases?

The digitization program must continue. The management talks about BandofBoats' ambition
to become the leader in the sale of used boats on the internet. The new boats announced will be
connected, while a common CRM for all brands should enable information sharing. But the
diversification will go further. Without going into more detail, the management document
mentions new businesses: charter, boat clubs, marinas and water sports.

Significant changes
Since the arrival of the new CEO, we have been waiting for the announcement of the new course
he intends to set. After the era of rapid development and explosion of offers under the leadership
of Hervé Gastinel, the time seems ripe for refocusing. While the "reduction of fixed costs" is
mentioned, as well as the sale of brands, the consequences for employees in France and
throughout the world of the Bénéteau Group are not mentioned. After a period of strong
recruitment, the HR policy will probably be impacted by the announced reduction in the number
of employees.

Changes can also be noted in the diversification announcements. While the former CEO, when
questioned about the opportunity to invest in chartering like Fountaine-Pajot through Dream
Yacht Charter and their common shareholding, considered it inappropriate to go into the field
of its charter clients, the new management presents chartering as an area for diversification.
We will now have to wait for the first decisions to see the concrete consequences of the
Bénéteau Group's actions on the yachting market as a whole, particularly the new space left to
other shipyards, both large and small.

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 APPENDIX 10
BENETEAU FALLS HEAVILY IN THE WAKE OF ITS ANNUAL RESULTS

AOF•2019/10/30

Beneteau (-12.22% to €8.72) fell sharply on the Paris stock exchange, in the wake of its results
for the 2018-2019 fiscal year, described as "transition". The boat manufacturer reported a net
profit (group share) of 49.5 million euros for the period (-19.3% year-on-year) and Ebitda of
157.8 million euros (+3.3%), representing 11.8% of revenues. 157.8 million (+3.3%),
representing 11.8% of revenues, which rose 3.8% on a reported basis and 2.6% at constant
exchange rates.
The strong growth in recent years has led to a significant increase in our investments and lower
operating efficiency, which is reflected in our 2019 results," commented Jérôme de Metz, CEO,
adding that while "the multiplicity of brands and models is a strength, supporting a diversified
and globally distributed offer, it is also a source of complexity".
The CEO ensures that areas of loss or underperformance are clearly identified and action plans
are being implemented.
A new strategic plan will be presented on April 29.

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 Appendix 11 – Table of ratios to be completed

Ratios of Activity 2017/08/31 2018/08/31 2019/08/31

Net Sales (Millions of €)
Changes in activity 2016/2017 2017/2018 2018/2019
Changes in Net Sales
Ratios of Margin 2017 2018 2019
Gross margin (M€)
Gross margin rate
Changes in the Gross margin rate
EBITDA (M€)
EBITDA Rate
Changes in the EBITDA rate
Current Operating Income (M€)
Current Operating Income rate
Changes in the current operating rate
Operating Income (M€)
Operating Income rate
Changes in the operating rate
Net income
Net income rate
Changes in the net income rate

Ratios of solvency/liquidity 2017 2018 2019

NWC (M€)
NWC / Net Sales (in % )
DSO
General Liquidity
Reduced Liquidity
Quickly Liquidity
Ratios of investments 2017 2018 2019
Ageing rate of property, plant and equipment
CAPEX (M€)

Ratios of Financial Structure 2017 2018 2019

Permanent Capital
Permanent Capital / Total Assets
Total Liabilities
Total liabilities / Total Assets
Gearing
Net debt capacity
Net debt capacity (with EBITDA)
Financial independence
Interest expenses coverage

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Ratios of Capital Employed (economic return) 2017 2018 2019
ROCE before Taxes
ROCE after Taxes
Current operating income rate
Economic asset turnover rate
reconstitution of the ROCE before Taxes
ROE, Net part of the Group
ROE

Ratios of stock market performance 2016 2017 2018

Equity value (M€)
Number of common shares
Price per share – N/06/30
Market Value (Capitalization)
MBR (Market to Book Ratio)
EPS (€)
PER
Total Dividend (M€)
Dividend per share (€)
DYR (return)
POR (Payout Ratio)

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