BENETEAU (EPA:BEN) - 200709 BENETEAU

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09/07/2020 17:40

Press release - July 9, 2020

           "Let's Go Beyond!" strategic plan for 2020-2025

- New Group dynamics to achieve an operating margin of over 10% when business
  has returned to 2019 levels
- Rationalization of the "House of Brands" to cover the same number of segments
  with less investment
- Improved operational efficiency for the product development teams and plants
- Managerial reorganization around a more streamlined team

Groupe Beneteau is announcing its strategic plan for 2020-2025: "Let's Go
Beyond!".

Strategic plan to emerge from the crisis in a stronger position

Groupe Beneteau has further strengthened the strategic plan that it initially
drew up during the first quarter of 2020 in order to move more quickly and go
further with its adaptation to the period that is taking shape. A more
developed financial breakdown of this plan will be presented in autumn 2020,
when the Group releases its full-year earnings.

It is inspired by the ambition to facilitate access to the world of boating for
everyone by creating simple and innovative solutions for life, with respect for
nature and marine balances.

The Board of Directors has approved the plan proposed by the Executive
Leadership Team, based on the following key pillars:
- A strategy built around eight global brands - compared with 12 previously -
covering the same number of markets segments with reduced investment thanks to
their complementary features and specific positionings;
- A better level of efficiency for the plants and an acceleration of
development times, by specializing industrial assets and adapting product
development resources in line with the Product Plan;
- A more streamlined managerial organization structured around global core
functions.

This evolution is fully aligned with the Group's commitment to being a pioneer
for sustainable recreational boating.

Moving forward, the plan also includes measures to expand its portfolio of
downstream activities to include services, in synergy with its distribution
networks. The Group's future investments will be focused to a great extent on
the digitalization of its activities (Band of Boats transaction platform, CRM,
configuration feature, connected boats, etc.) and its processes (ERP, etc.).

The Housing division, the leading supplier of leisure homes for European
campsites, will capitalize on the strong levels of interest in the outdoor
accommodation sector and the premiumization of campsites. Thanks to its
capacity for innovation and its effective management of production costs, it
is targeting market share growth both in France and for export (Italy,
Benelux), as well as a double-digit operating margin by the end of the plan.

The first phase of the plan will move forward in a market environment disrupted
by the crisis resulting from Covid-19

The post-Covid 19 crisis is bringing in a new economic cycle. During an initial
period, from 2020 to 2021, the sharp contraction in activity worldwide, which
is being observed, will affect the recreational boat market. This is expected
to be followed by a significant upturn, whose scale will depend on how quickly
the health crisis is resolved.

With over EUR600 million of shareholders' equity at February 28, 2020 and
EUR300 million of undrawn confirmed credit lines, which will be further
strengthened with a EUR120 million State-backed loan, and zero net debt, as
well as its experience managing previous crises, the Group is therefore
preparing to take on board changes in volumes, initially falling then rising,
potentially on a similar scale to that seen with the 2008-2009 crisis.

In view of this, it plans to significantly scale back its production capacity
over the coming months, while reducing all of its fixed costs. Discussions are
underway with the employee representative partners in France and other
countries.

To be able to share wealth with its employees and shareholders, the Group needs
to create it first

This is the purpose of the Let's Go Beyond! plan, which intends to achieve,
when the markets have returned to their 2009 levels, operational profitability
of over 10% of revenues.

The main sections of the plan presented here will have the following impacts on
income from ordinary operations:

                                          Income
                                          from
                                          ordinary
                                          operations    % of
                                          EURm          revenues

2019                                         82           6.1%

Product plan efficiency                      18           1.3%
Of which, adaptation of
American brands' offering                     8           0.6%
Industrial efficiency and consistency        21           1.5%
Of which, better use of Monfalcone site      11           0.8%
Synergies within a global organization        6           0.4%
Housing performance                          12           0.8%
Strategic plan's impact on
income from ordinary operations              57           4.0%
Performance when our markets have
returned to pre-Covid levels                139          10.1%

The next key dates will be:
- July 9, 2020: 2019-20 nine-month revenues and outlook for the year
- September 8, 2020: new boat models announced for the 2020-2021 season
- October 27, 2020: 2019-20 full-year earnings released

The video presentation of the Let's Go Beyond! plan and the presentation
materials are available on the Groupe Beneteau website.

DISCLAIMER
This press release, which has been prepared by BENETEAU SA (the "Company", and
together with its subsidiaries and affiliates, the "Group"), does not
constitute, and should not be constructed as, an offer to sell or the
solicitation of an offer to purchase or subscribe for any securities of the
Group in any jurisdiction.

This press release may include forward-looking statements. Such statements
refer in particular to the Group's present and future strategy, the growth of
its operations and future events and objectives. Such statements may contain
the words "anticipate", "believe", "intend", "estimate", "expect", "project",
"plan" and other similar expressions. By their nature, forward-looking
statements involve risks and uncertainties, which could cause the actual
results and performance of the Group to be materially different from the future
results and performance expressed or implied by such forward-looking
statements.

The strategic orientations outlined in this press release have been presented
to the employees' representatives during a meeting of the Group's Committee
(Comité de Groupe). All decisions relating to this plan will be taken in due
course and in strict compliance with the applicable labor laws and
regulations.

ABOUT GROUPE BENETEAU

As the boating industry's global market leader, Groupe Beneteau, through its
Boat Division's 12 brands, offers over 180 recreational boat models serving its
customers' diverse navigational needs and uses, from sailing to motorboating,
monohulls and catamarans.

Leading the European leisure homes market, the three brands from the Group's
Housing division offer a comprehensive range of leisure homes, lodges and pods
that combine eco-design with high standards of quality, comfort and
practicality.

With its international industrial capabilities and global sales network, the
Group employs 8.200 people, primarily in France, the US, Poland, Italy and
China.

CA Groupe 2018-2019 : 1336.2 MEUR

Moteur    45.8%
Voile    39.8 %
Habitat  14.4 %

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