SUMMARY

360°

SERVICE SUPPORT

T E C H N I CA L S U P P O R T

S E R V I C E C O N T R A C T S

To meet customer needs as best as possible,

service contracts allow customers to take

advantage of our technical teams’ expertise

for preventive maintenance, warranty

extension, or periodic legal inspections

on both new and used machines.

Designed to responsively provide the most

efficient support, the Haulotte technical

network operates on the phone, on site

or within our technical centers. Our on-

line solutions also enable you to minimize

your downtime!

T R A I N I N G

G E N U I N E S PA R E PA R T S

Skills management is a daily challenge

for many companies. Haulotte addresses

the whole issue, from diagnosis to post-

training follow-up, including content

customization. The Haulotte Service

trainings enhance skills development in

your teams. They ensure an optimized

utilization rate of the machines and thus

a better profitability. The training courses

are delivered in the client’s language,

either digitally or on site.

Only genuine Haulotte spare parts are designed

to work seamlessly with your machines. They

are tested to ensure user safety, absolute

reliability and an optimized service life and

residual value of your machines.The Haulotte

supply chain optimises the entire process,

from quotation to delivery. 24-hour online

order management!

2021 Annual report

SUMMARY

360°

SERVICE SUPPORT

Extending the lifespan of products to better respond to environmental issues is a major

challenge. Our «Second Life» service solutions are a response to new consumption

patterns oriented towards the circular economy.

R E F U R B I S H M E N T

Offering your machines a second life is ﬁnancially attractive ;

reconditioning solutions extend the machines’ lifespan signiﬁcantly.

Whether it involves refreshing, refurbishing or modernising

equipment, for minimal investment, the equipment regains its

full potential and beneﬁts from a higher residual value.

S E C O N D H A N D E Q U I P M E N T

Pre-owned equipment is a perfect way next machine among a wide range of

to establish or enlarge a fleet at lower pre-owned equipment, from scissor

cost for a better return on investment. lifts to telescopic booms, as well as

Haulotte has implemented strict inspection articulating booms, vertical masts and

processes to ensure that pre-owned more. A quick and easy way to meet the

machines meet the highest quality needs and the budget!

standards. Customers can find their

2021 Annual report

SUMMARY

K E Y F I G U R E S

SALES EVOLUTION

SALES BREAKDOWN PER ACTIVITY IN € MILLION

I N € M I L L I O N

R E VE N U E

excluding IAS29 and excluding IFRS16

55.6

45.6

3^%

+35^%

+22^%

3^%

16.9

12.5

11^%

10^%

495.8

M€

+13%

2021

2020

* excluding IAS 29 & IFRS 16

86^%

87^%

CURRENT OPERATING

INCOME

+11^%

Gross cash flow from

operations

423.3

381.5

before exchange gain & loss

A N D GROSS CASH

FLOW FROM

37.2

36.1

Equipment sales

Service

Rental

20.4

16.6

Current Operating

income

11.9

10.7

OPERATIONS

SALES BREAKDOWN

IN € MILLION

excluding IAS29 and IFRS16

PER GEOGRAPHICAL AREA IN € MILLION

2019

2020

2021

excluding IAS29 and ecluding IFRS16

57%

17%

19%

281.6 M€

83.6 M€

86.2 M€

34.4 M€

INCOME STATEMENT HIGHLIGHTS IN € MILLION

excluding IAS29 and excluding IFRS16

GLOBAL

IN € MILLION

REVENUE

2021

2020

495.8

439.6

CURRENT OPERATING INCOME before

EXCHANGE GAINS & LOSSES

16.6

11.9

56%

248.3 M€

11.4

3.2

OPERATING INCOME

13.8

(17.0)

INCOME BEFORE TAXES

22%

16%

97.2 M€

70.0 M€

24.1 M€

Latin America

5.8

(27.4)

CONSOLIDATED NET RESULT

Europe

Asia Paciﬁc

North America

2021 Annual report

SUMMARY

HAULOTTE AND

ITS SHAREHOLDERS

2 0 2 1 T R A D I N G A C T I VI TY S H A R E

A N D S H A R E P R I C E T R E N D S

1 700 000

S T O C K E XC H A N G E I D

1 500 000

EURONEXT PARIS

ISIN

MNÉMO

COMPARTIMENT B

FR0000066755

PIG

6.58

6.40

6.35

1 300 000

6.02

6.15

6.06

1 135 222

6.03

6.01

1 000 000

REUTERS

BLOOMBERG

CACS

PYHE.PA

PIG FP

5.00

900 000

700 000

4.80

5.62

755 518

4.90

642 007

500 000

336 474

538 601

300 000

100 000

199 407

170 109

N E T E A R N I N G S

P E R S H A R E I N €

E VO L UT I O N

O F N E T D I VI D E N D

P E R S H A R E I N €

125 297

231 601

235 306

234 187

150 234

Jan.

Feb. March April

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Share price in €

Trading activity share

0.25

0.22

0.00

0.22

B R E A K D OWN O F CA P I TA L

0.66 -0.88

0.66

0.20

0.15

0.10

O N 3 1 / 1 2 / 2 0 2 1

-1

57,50% SOLEM

-2

-3

-4

PUBLIC

35,69%

0.05

0.00

5,94%

TREASURY SHARES

2019 2020

2021

2019

2020

2021

0,87%

HOLDERS OF REGISTERED SHARES

B R E A K D OWN O F VO T I N G R I G H T S

O N 3 1 / 1 2 / 2 0 2 1

74,94% SOLEM

PUBLIC

23,91%

1,15%

HOLDERS OF REGISTERED SHARES

2021 Annual report

SUMMARY

MANAGEMENT

REPORT

ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED 31 DECEMBER 2021

GENERAL COMMENTS

Definitions

In this annual financial report, except where otherwise indicated:

- The terms "Company" or "HAULOTTE GROUP" refer to HAULOTTE GROUP, a French public limited

company (Société Anonyme) with capital of €4,078,265.62 whose registered office is located on rue Emile

Zola, 42420 Lorette, France, registered in the Saint-Etienne Trade and Companies Register under

No. 332 822 485.

- The term “Group” refers to the Company and all companies consolidated by the latter.

Forward-looking statements

This annual financial report also includes forward-looking information about the Group's objectives and

development priorities. These forward-looking statements are sometimes identified by the use of the future or

conditional tense or forward-looking terminology, including the terms “believes,” “estimates,” “anticipates,”

“expects,” “intends,” “may,” “will” or “should” or variations thereof or other comparable terminology. It should be

noted that these objectives and development forecasts do not represent historical data and as such should not

be interpreted as providing assurance that the facts and data presented will occur, that the assumptions will be

confirmed and the objectives reached. They represent objectives that by nature might not be achieved, and the

information presented in this annual financial report may prove to be erroneous without the Group being

subject, in any manner whatsoever, to an obligation to update these statements, subject to applicable

regulations, particularly the AMF (Autorité des Marchés Financiers) General Regulations.

haulotte.com l 2021 MANAGEMENT REPORT

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MANAGEMENT

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ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED 31 DECEMBER 2021

RESPONSIBILITY FOR THE ENGLISH VERSION OF ANNUAL

FINANCIAL REPORT

Person making the responsibility statement

In accordance with article L.451-1-2 of the French monetary and financial code, we inform you that the person

responsible for the annual financial report is Mr. Alexandre Saubot, Deputy Chief Executive Officer of

Haulotte Group.

Responsibility statement

Lorette, 29 April 2022

“I declare that, to the best of my knowledge, the financial statements have been prepared in accordance with

applicable financial reporting standards and provide a true and fair view of the assets and liabilities, financial

position and results of the operations of the Company and the Group formed by the companies included in the

consolidated financial statements, and that the management report for the period, included herewith, presents

business trends, the results and financial position of the company and consolidated operations and a description

of the main risks and uncertainties.”

Alexandre Saubot

Deputy CEO

haulotte.com | 2021 MANAGEMENT REPORT

SUMMARY

MANAGEMENT

REPORT

ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED 31 DECEMBER 2021

PART 1: ECONOMIC INFORMATION

1 - REVIEW OF OPERATIONS AND RESULTS FOR THE YEAR UNDER REVIEW

Haulotte Group ranks among the worldwide leaders in the market for self-propelled aerial work platforms both

as a manufacturer of the main equipment categories (telescopic booms, articulating booms, scissor lifts, vertical

masts) and as a distributor on five continents.

In a worldwide market for aerial work platforms that showed significant growth, Haulotte Group SA’s turnover

increased by €24 million, so +13%, in 2021 compared to 2020.

In Europe, the Group recorded overall growth in sales in almost all markets compared to the previous year.

In the Asia-Pacific region, the Group which, in the 4th quarter, achieved its best quarter of the year, still showed a

decrease in cumulated sales in comparison to 2020.

In North America, the growth in activity continued, which enabled Haulotte to record a turnover on all of its

activities, mainly driven by platform sales.

In Latin America, in a well-oriented market in all the countries, Haulotte recorded a growth in sales in

comparison with 2020, mainly driven by Brazil.

The financial year ended 31 December 2021, submitted for approval to the ordinary general meeting, is the

Company’s thirty-seventh year of operations since its creation.

2 - PROGRESS MADE OR DIFFICULTIES ENCOUNTERED

The increasing supply issues for components and the significant increase in prices experienced in the second

part of the year, meant that the Group was not able to fully benefit from the excellent sales momentum during

the 2021 financial year.

3 - PRESENTATION OF PARENT COMPANY FINANCIAL STATEMENTS AND

SIGNIFICANT ACCOUNTING POLICIES – RESULTS OF OPERATIONS THE

COMPANY

3.1 Presentation of parent company financial statements

Highlights of the parent company financial statements of HAULOTTE GROUP SA for the financial year ended 31

December 2021 are presented below (in € thousands):

RESULTS

€ thousands

FY 2021

FY 2020

CHANGE (%)

REVENUE

210,616

(22,190)

(5,373)

(132)

186,552

(17,735)

(14,975)

(1,718)

12.90%

- 25.12%

64.12%

OPERATING PROFIT

NET FINANCIAL INCOME

EXTRAORDINARY PROFIT

NET PROFIT (LOSS)

+92.32%

-23.72%

(23,874)

(31,298)

Please refer to the notes to the annual financial statements for all additional explanations.

haulotte.com l 2021 MANAGEMENT REPORT

SUMMARY

MANAGEMENT

REPORT

ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED 31 DECEMBER 2021

3.2 Changes in the presentation of the annual accounts or methods of

valuation, applied in prior years

We inform you that the annual financial statements were prepared according to the same presentation and

methods used in prior periods, with the exception of the following point.

Following the IFRS IC Decision, which concluded that the provision of benefits to be accounted for can only

include the period covering an employee's last 16 years of service (or between the date of employment and the

date of retirement if the period, thus determined, is less than 16 years), an upturn of €1m was calculated at the

opening.

Changes in accounting methods are presented in the summary of significant accounting policies in Note 2 to

the separate annual financial statements.

3.3 Analysis of parent company results

Despite the increase in volumes, the net margin decreased by €4 million between 2020 and 2021, i.e. a decline of

-13%. At the same time, structural costs were up by €1 million (+4%) in 2021. The level of fees received from our

foreign plants was down by -€3 million due to the decline in margins impacted by the supply difficulties and the

increase in the price of components. Haulotte Group SA’s operating result for the year came to -€22 million for

2021 compared to -€18 million in 2020. The financial loss is linked to the depreciation in the net situations of the

subsidiaries which is offset in part by the effect of positive change.

In light of the above, FY2021 ended with a net loss of -€34 million.

As required by article R.225-102 of the French Code of Commerce, this report includes a table summarising the

results of the Company over the last five years.

4 - COMPREHENSIVE ANALYSIS OF THE COMPANY'S REVENUE, EARNINGS

AND FINANCIAL POSITION, AND PARTICULARLY DEBT WITH RESPECT

TO THE VOLUME AND COMPLEXITY OF BUSINESS ACTIVITY

Please refer to paragraphs 1, 2 and 3 above and 6.2 and 7 below.

5 - ANALYSIS OF KEY INDICATORS OF A FINANCIAL AND NON-FINANCIAL

NATURE RELATING TO THE COMPANY'S SPECIFIC BUSINESS, AND IN

PARTICULAR INFORMATION RELATING TO ENVIRONMENTAL AND STAFF

ISSUES

Please refer to above to paragraphs 1, 2 and 3 and section 5 below in this report, as well as the Company’s Non-

Financial Statement.

haulotte.com | 2021 MANAGEMENT REPORT

SUMMARY

MANAGEMENT

REPORT

ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED 31 DECEMBER 2021

6 - KEY RISKS AND UNCERTAINTIES – THE COMPANY’S EXPOSURE TO RISKS

CONCERNING PRICE, CREDIT, LIQUIDITY AND CAPITAL RESOURCES –

INFORMATION ON MARKET RISKS

In accordance with the provisions of article L.225-100-1 of the French Code of Commerce, a description of key

risks and uncertainties facing the Company is presented below.

6.1 Key risks and uncertainties:

Because the company outsources a significant share of its production, the sourcing capacities of its suppliers

constitute a primary risk. To prevent risks of supply chain disruptions, the strategy of diversifying suppliers, widely

adopted for a number of years, must be continued. For several years, the credit situation of suppliers considered

to represent greater risk has been monitored and specific measures have been taken to ensure that the

industrial model remains constantly in sync with market demand.

Market risk is the second significant risk factor. On that basis, visibility has improved though caution continues to

be necessary, against the backdrop of a global environment marked by continuing uncertainties.

Another significant risk is the sensitivity of sales to credit restrictions in financial markets. HAULOTTE GROUP

proposes financing solutions to its customers either through a financing entity or, for a non-significant

percentage of sales, direct financing, while maintaining receivable risks at a reasonable level.

6.2 The Company’s exposure to risks concerning price, credit, liquidity

and capital resources

The majority of the Company’s sales is generated through its distribution subsidiaries. Despite fierce

competition, these subsidiaries have successfully maintained the level of sale prices for new products.

As provided for in the syndicated credit agreement signed on 17 July 2019, a request for an extension of one

additional year was accepted unanimously by the lenders, bringing the expiry date of the contract to 17 July

2026.

The impact of the strong recovery of activity and the resulting supply difficulties led Haulotte to submit to all

lenders participating in the Syndicated Credit Facility a request to waive compliance with the ratios for the

period from December 2021. This request was unanimously and unconditionally accepted on 15 February 2022.

7 - USE OF FINANCIAL INSTRUMENTS - COMPANY FINANCIAL RISK

MANAGEMENT OBJECTIVES AND POLICY

The Company does not systematically hedge interest rate and foreign exchange risk.

However, transactions are carried out according to market opportunities. In such cases, they are destined to

cover existing assets or liabilities rather than for speculative purposes.

haulotte.com l 2021 MANAGEMENT REPORT

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MANAGEMENT

REPORT

ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED 31 DECEMBER 2021

8 - FORSEEABLE CHANGES IN THE COMPANY’S SITUATION AND OUTLOOK

In a global context which remains uncertain, the excellent sales momentum observed in the last few months,

which has translated into historic order levels, should result in a sustained recovering in the activity at the

Haulotte Group SA's production sites, and thus result in an increase in sales levels of around 45%.

In 2022, despite the upturn in activity, the pressure on the price of raw materials will continue and the

operational profit should remain negative.

9 - IMPORTANT POST-CLOSING EVENTS BETWEEN THE END OF THE

FINANCIAL PERIOD AND THE DATE OF THE MANAGEMENT REPORT

The post-closing events are detailed in Note 3 of the Annexes to the company accounts.

10 - RESEARCH AND DEVELOPMENT OF THE COMPANY

The Company's research and development efforts continued in the period.

2021 stood out for the launch of several new models:

▪ In February: launch of the new range of PULSEO all-terrain electric scissor lifts. Two new 15- and 18-metre

models are available in two versions: HS15E and HS15E PRO, HS18E and HS18E PRO. The presence of an

optional removable Range Extender is one of the main innovations of this new range. Introduced in 2018,

this electrical design will continue to build on the Group's "Blue Strategy", as borne by the PULSEO brand

and recognisable on the Group's all-terrain electric versions of the machines.

▪ In March: replacement of the range of 15-metre electric platforms now available in two 16-metre versions:

Sigma 16 and Sigma 16 PRO.

In addition, from January onwards, the Group offered its SHERPAL telematics solution which includes several

functionalities for managing teams remotely, proposing three levels of offer ranging from geolocation, through

equipment monitoring and remote troubleshooting services, to on-site fleet management.

At the same time, the Company expanded its research into energy transition applicable to its products,

specifically regarding fuel cells..

The medium-term objective of these R&D efforts is to accelerate the roll-out of new machines and to renew the

services offered.

Research and development expenditure amounted to €13,877,000 in 2021.

haulotte.com | 2021 MANAGEMENT REPORT

SUMMARY

MANAGEMENT

REPORT

ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED 31 DECEMBER 2021

11 - BREAKDOWN OF TRADE PAYABLES AND RECEIVABLES OF THE

COMPANY BY MATURITY

In accordance with the provisions of articles L.441-14, paragraph 1 of the French Code of Commerce, an aged trial

breakdown of trade receivables and payables is provided below for the financial year ended 31 December 2021.

Article D.441 I.-1* of the French Code of Commerce: Invoices received unpaid at

Trade payables

the end of the reporting period in arrears

0 days 1 to 30 days 31 to 60 days 61 to 90 days

> 90 days

Total

(A) Portion in arrears

Number of invoices concerned

Total amount of invoices concerned

including VAT

1,004

1,850,053

0.88%

843,137

0.40%

175,946

0.08%

322,964

0.15%

3,192,100

% of total amount of purchases for the

period incl. VAT

210,374,305

(B) Invoices excluded from (A) relating

to disputed receivables and subsidiaries

Number of supplier invoices paid at the

beginning of January

1,139

747

Number of disputed supplier invoices

Total number of subsidiary invoices

involving a current account-related

payables

180

Number of supplier invoices paid at the

beginning of January

3,748,021

1,857,047

1,649,492

Amount of disputed invoices

Amount of subsidiary invoices involving a

current account-related payable

(contractual or legal terms - article

L.441-6 or L.443-1 of the French Code of

Commerce)

Payment terms used to calculate

payment delays

Legal terms: 60 Days

Article D.441 I.-2*: Invoices issued and unpaid at the end of the reporting period in

arrears

Accounts Receivable

(A) Portion in arrears

0 days 1 to 30 days 31 to 60 days 61 to 90 days

> 90 days

Total

Number of invoices concerned

Total amount of invoices concerned

including VAT

263

1,612,156

421,737

0.20%

275,583

0.13%

15,443

0.01%

899,392

0.43%

% of Revenue for the period excl. VAT

210,615,586

(B) Invoices excluded from (A) relating

to disputed receivables and subsidiaries

Number of disputed customer invoices

Total number of subsidiary invoices

involving a current account-related

receivable

115

5,438

Amount of doubtful customer invoices

incl. VAT

1,157,887

Amount of subsidiary invoices involving a

current account-related receivable incl.

VAT

75,877,166

(contractual or legal terms - article

L.441-6 or L.443-1 of the French Code of

Commerce)

Payment terms used to calculate

payment delays

Legal terms: 60 Days

haulotte.com l 2021 MANAGEMENT REPORT

SUMMARY

MANAGEMENT

REPORT

ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED 31 DECEMBER 2021

12 - INTERNAL CONTROL AND RISK MANAGEMENT PROCEDURES ADOPTED

BY THE COMPANY AND IN PARTICULAR THOSE RELATING TO THE

PREPARATION AND PROCESSING OF FINANCIAL AND ACCOUNTING

INFORMATION

A. Objectives of the Company in the areas of internal control and risk

management procedures

The purpose of internal control procedures in force in the company is to ensure that management and

operating practices, as well as employee behaviour, adhere to the framework defined by the guidelines set out

for Company activities by governing bodies, applicable laws and regulations, and the values, standards and

internal rules of the Company, to verify that the accounting, financial and management information provided to

the Company’s corporate governance bodies fairly reflect the operation and situation of the Company and its

subsidiaries.

One of the objectives of internal control is to prevent and manage the risks arising from the business operations

of the company and its subsidiaries and the risk of error or fraud, in particular in the accounting and financial

areas (operating, financial, compliance or other risks).

As with any control system, it is not possible to provide an absolute guarantee that these risks have been

completely eliminated.

B. Summary of procedures in place

a) General organisation for internal control and risk management procedures at the

Company level

Each department at the head office and in subsidiaries is responsible for implementing and monitoring internal

control procedures.

These internal control procedures are placed under the responsibility of the Group Finance Department and the

Secretariat General, which draw up the procedures, promote their application and ensure their consistency and

proper functioning. A core body of written internal procedures is available for consultation on the Company's

intranet.

Accordingly, the different participants in the internal control process within the Company include:

- the Finance and Information Systems Division (including Internal Control, Management Control, Credit

Management, Consolidation and Reporting, Group Accounting and Information Systems),

- the Secretariat General (including the Legal and Human Resources Departments),

- the Industrial Division (including the Quality and Operational Excellence Department).

In 2021, an internal audit committee was set up within the Company, consisting of employees from the different

operational departments.

During 2021, this group worked on the following elements:

- Defining a corporate risk assessment methodology, tailored to risks of any kind,

- Identifying the existing control procedures,

- Linking said risks and procedures to the process mapping in place in the organization,

- Establishing an audit plan to begin in 2022 and the procedures for its implementation (by the employees

responsible or, where appropriate, by third parties).

This committee reports to two COMEX members: the Finance Director and the Secretary General. The

Company's audit committee is informed of the steps taken and the conclusions reached.

haulotte.com | 2021 MANAGEMENT REPORT

SUMMARY

MANAGEMENT

REPORT

ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED 31 DECEMBER 2021

b) Presentation of summarised internal control and risk management procedures

adopted by the Company

Finance Division:

The Finance Division draws up written procedures covering the main subjects and financial flows within the

Group. These procedures are disseminated to all financial contacts at the head office and subsidiaries, and

updated on a regular basis.

The Finance Division includes the following departments:

• Internal control

The Group’s internal control is placed under the responsibility of the Executive Committee (COMEX).

It extends to all Group subsidiaries and concerns the entire organisation (administrative, accounting and

financial, functional and operational processes).

Main missions include:

- Ensuring that risks are controlled and managed

- Implementing internal procedures and contributing to improvement thereof

- Implementing a continuous improvement approach

• Management Control Department:

This department includes two units :

- an industrial management control unit represented at each production site, and by a dedicated team at

headquarters for R&D, purchasing and quality functions,

- a management control unit for distribution subsidiaries, spearheaded from the head office, ensuring

financial oversight for the Group’s different distribution and service subsidiaries in coordination with the

regional financial controllers.

In addition, the regional financial controller acts as an intermediary between the Group and the controller for

each subsidiary in its region. This division ensures management control for the support and equipment rental

business functions.

These teams contribute to implementing the internal control procedures by:

- ensuring the security of assets, particularly through inventory procedures,

- ensuring and assisting in the dissemination of the Group's accounting and management rules,

- ensuring that expenditures are incurred in accordance with the budget set out at the beginning of each

period and within the framework of the rules for incurring expenses and delegations of authority defined

by the Group.

• Cash Management Department:

This department is responsible for the following activities:

- cash management,

- management of banking relations and bank balancing transactions, management of multi-currency cash

positions,

- credit management.

Missions include:

- ensuring that the principles set out for managing customer credit risk are properly applied, and controlling

the exposure of the Group’s main customers. To this end, it monitors accounts receivable developments for

all subsidiaries, controls the levels of outstanding balances and reconciles the cash budget with

outstanding trade receivables of subsidiaries,

- organising collection, monitoring outstanding financing amounts and consolidating all Group financial

commitments.

haulotte.com l 2021 MANAGEMENT REPORT

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ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED 31 DECEMBER 2021

• Consolidation and Reporting Department :

This department is responsible for producing the consolidated annual and interim financial accounts and the

corresponding financial communications as well as monthly reporting.

This department assists the local financial managers in applying financial reporting procedures in accordance

with IFRS. It also conducts a number of visits to the subsidiaries to ensure these procedures are applied.

• Group Accounting Department:

This department is responsible for accounting for Haulotte Group SA. It is also responsible for coordinating and

managing the transfer pricing policy at the Group level.

• Information Systems department:

In 2019, Haulotte decided to modernize its IT system and to inject new governance, in connection with the

strategic plan through the "Shift to a Digital Company" pillar. Over two years, the Group's ISD has modernized in

terms of project management, with a robust methodology, aimed at securing project completions. Today,

performance culture is at the heart of the ISD's activity, both in terms of BUILD (projects) and also RUN (daily

support activities). In two years, the number of completed projects has doubled, whilst still maintaining a

constant workforce on the project teams. The number of unresolved user requests has greatly decreased, going

from 1,600 to less than 300. By mid-2021, this enabled us to have an effective and operational ISD, recognized by

all for its efficiency.

At the halfway point in 2021, a new strategic IT plan was put in place to improve performance even further.

Named "5 Foundations", it is based on maintaining build and run performance basics (IT Basic), developing an

offer for the business divisions and subsidiaries and an IS value creator (Business Value), shifting towards

developing digital skills: both human and technical (User Centricity), a paradigm shift to put DATA at the heart of

the Group's mechanisms (DATA) and, lastly, focusing significantly on taking security into account in light of the

cybercrime situation (IT Security).

The stategic plan has already been partly implemented and is assessed each month to ensure it aligns and fits

with the Group's ambitions. In this context, topics such as Green-IT, user satisfaction, implementing a CRM

system, developing ERP, supporting activities in Asia, and putting in place digital training for users, Haulotte

connected platforms, IS penetration tests and data monetization, all take shape within the project plan - without

impairing the 2021 fundamentals.

Secretariat General:

• Group Legal Division

The company’s Legal Division, which expanded recently, operates at many levels within the company and assists

the various departments in managing their projects, in terms of partnership development (drafting and

analysing contracts, drawing up standard documents, etc.), advising operational staff (R&D, intellectual property,

sales departments, etc.), managing disputes and monitoring the legal status of the Group's companies.

The Legal Division, which positions itself as a real business partner within the company, participates in several

internal working groups, including:

- “Safety Committees”: held on a regular basis (every two months, or whenever necessary), these meetings

bring together all parties concerned by effective management of technical and legal monitoring initiatives

regarding incidents and accidents known to the Group and involving one of our products.

- “Intellectual Property (IP) Committees”, which regularly bring together the Secretariat General, the

Marketing Department and the Group Intellectual Property Manager. These periodic meetings provide a

mechanism for monitoring filings and intellectual property disputes for the Group as a whole. They also

serve as a means to notify different participants of the existence of prior rights.

Several internal communications actions are implemented by the Legal Division in collaboration with the

Finance and Communications teams and the IT Services department, in order to inform and alert employees

about the risks of fraud for social engineering and how to combat the latter. In this regard, the Legal Division is

the formal contact point for the Authorities in the event of fraud or attempted fraud (Police, ISDG, etc.).

More broadly, the Legal Division collaborates with all departments concerned with legal matters and provides its

support to all divisions within the Company.

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Lastly, the Legal Division regularly participates in meetings organised by Middlenext, providing a forum for

exchange and discussion of legislative and regulatory developments concerning listed companies and new

obligations to be met by the Company. It also participates in working meetings organised by the trade

associations of its industry sector (FIM, EVOLIS).

• Human Resources Department

The Human Resources Department has a central support service (recruitment, training, wages and personnel

administration). Furthermore, a Human Resources Manager is present on each of our sites and works closely

with the director of the establishment on all HR issues, including occupational health and safety.

A QSE policy, applied in all Group entities, sets out Management’s various commitments in terms of occupational

health and safety.

A safety committee, led by the Europe HRD, meets regularly throughout the year to discuss the various safety

indicators (number of accidents, frequency and severity) and best practice in terms of prevention.

A “safety challenge” agreement aimed at enhancing prevention of work-related accidents was renewed in 2021

and will be renewed again in 2022.

Regarding recruitment and human resources management, the Human Resources department complies with

the “Ten Golden Rules and Management Group”, which sets out the fundamental regulatory principles

applicable to employees of all Group entities.

Country reviews take place regularly with all the distribution subsidiaries and industrial sites, with a view to

strengthening links and encouraging exchanges among teams. They also provide an opportunity to discuss

relations between employees and management at each site. The country review also serves to allow each

subsidiary to present its organisational structure, operating procedures and Key Performance Indicators for

different departments.

Lastly, the Human Resources Department uses a forward-looking employment and skills management tool

(Foederis), which has been rolled out in all Group companies.

Industrial Division

The Chief Quality and Operational Excellence Officer determines and implements the quality strategy,

determines the applicable frames of reference (system, ISO, procedures, etc.) and manages a continuous

improvement approach at every level of the Company.

The programme known as “Yello”, established in April 2020, was deployed at Group level during the 2021 financial

year. In this regard, 80 maturity grids were produced by different teams within several entities. Each entity is

then responsible for putting an action plan in place to improve their maturity level and their performance level.

In addition, initial training on the operational excellence tools and methods took place: 45 people responsible for

implementing said policy were trained, as well as around twenty faciliators.

Lastly, the Chief Quality and Operational Excellence Officer is a member of the internal audit group whose

mission is to map and define the Group's internal risks, and to propose a suitable audit program.

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c) Risks associated with producing financial and accouting information

The Reporting & Consolidation Department is responsible for producing the interim and annual consolidated

financial statements, under the oversight of the Group Finance Department and Executive Management.

This department ensures the quality of the monthly accounting closings for the different Group companies,

managed, according to the case, by local accounting departments or chartered accountants for small size

subsidiaries, and their restatement according to applicable IFRS standards.

Consistent application of Group accounting principles is ensured by this same department, which is also

responsible for monitoring changes in standards.

The most important accounting principles, and namely those which may have a material impact on the Group's

accounts, are documented and distributed to all subsidiaries. These concern standards for recognising financing

transactions, revenue recognition, the impairment or non-collection of trade receivables, provisions for

inventories, rules for the depreciation and amortisation of fixed assets.

In accordance with local regulations, financial and accounting information is verified by local auditors. The

Group's joint statutory auditors review the consolidated financial statements with the assistance of local auditors

or undertake their own audit assignments if necessary.

In the final phase, financial and accounting information is approved by the Board of Directors for the first six-

month period and annually, after being presented to the Board of Directors convened in the capacity of Audit

Committee.

The Board of Directors also fulfils the functions of the Audit Committee. It ensures the efficacy of the internal

control and risk management systems for financial areas, in addition to monitoring the process for producing

financial information. It reports on its mission to the Board of Directors.

The entire process for producing and processing financial and accounting information described above

contributes to managing and limiting risks in this area.

13 - SUMMARY OF DEALINGS IN THE PERIOD ENDED IN OWN SHARES BY

EXECUTIVES AND PARTIES MENTIONED IN ARTICLE L.621-18-2 OF THE

FRENCH MONETARY AND FINANCIAL CODE

In accordance with article L.621-18-2 of the French monetary and financial code and articles 223-23 and 223-26 of

the General Regulation of the AMF (Autorité des Marchés Financiers), the Company was not informed of any

transactions covered by article 19 of Regulation (EU) No. 596/2014 of the European Parliament and of the Council

of 16 April 2014 on market abuse for the period ended 31 December 2021.

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14 - PRESENTATION OF THE BOARD OF DIRECTORS' ANNUAL REVIEW ON

REGULATED AGREEMENTS REMAINING IN FORCE AND ITS FINDINGS

In accordance with proposition No. 4.8 of AMF recommendation 2012-05, we hereby inform you of the

conclusions of the Board of Directors' meeting of 8 March 2022 regarding its annual review of regulated

agreements in accordance with article L. 225-40-1 of the French Code of Commerce entered into and authorised

in prior periods and remaining in force in the period ended 31 December 2021.

The Board of Directors reviewed these regulated agreements at its meeting of 8 March 2022. After determining

that these agreements continued to meet the criteria providing the basis for their initial authorisation, this

authorisation was unanimously maintained by the Board.

Please refer to the Auditors’ special report on agreements and commitments referred to in Article L. 225-38 of

the French Code of Commerce.

In addition, please refer to Note 43 to the consolidated financial statements for the period ended 31 December

2021 on related-party transactions.

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15 - INFORMATION ON DEALINGS BY THE COMPANY IN ITS OWN SHARES

The Company's ordinary and extraordinary general meeting of 25 May 2021 granted authority to the Board of

Directors, which it may in turn delegate in accordance with applicable laws, for a period of eighteen months as

from the date of the general meeting, to acquire or cause to be acquired shares of the Company in accordance

with the provisions of articles L.22-10-62 et seq. of the French Code of Commerce.

In accordance with article L.225-211, paragraph 2 of the French Code of Commerce, we inform you that in the

financial year ended 31 December 2021, information on trading by the Company in its shares is provided below:

Number of shares purchased in FY2021

184,774

6.09

Average purchase price of own shares in FY2021

Execution fees

N/A

Number of shares sold in the period

161,905

6.25

Average sale price of own shares in the period

Number of shares cancelled in the period

Number of treasury shares recorded in the name of the Company at 31 December 2021

Percentage of treasury shares held at 31 December 2021

Net carrying value of treasury shares at 31 December 2021

Nominal value of treasury shares at 31 December 2021

Market value of treasury shares at 31 December 2021 (share price of €4.8 on that date)

1,862,120

5.94%

9,006,370

242,076

8,938,176

The breakdown according to purpose for the use of own shares at 31 December 2021 was as follows:

Purposes of share buy-backs

Number of shares

Ensuring the liquidity of the Company’s shares through a liquidity agreement entered into

with an investment services provider, in compliance with a code of conduct recognised by

the AMF (Autorité des Marchés Financiers), the French financial market regulator, and the

market practices permitted by the same

163,715

Meeting the obligations resulting from stock option programs or other share grants to

employees or directors or executives of the Company or affiliated companies

Meeting the obligations arising from debt securities exchangeable into ownership interest

Holding the shares for subsequent remittance to be tendered in payment or exchange in

connection with possible acquisitions, spin-offs or contributions in accordance with market

practices permitted by the AMF

1,629,558

Cancelling all or part of the shares thus acquired

68,847

TOTAL

1,862,120

No shares of the Company were reallocated for other purposes or objectives.

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PART 2: INFORMATION ON SUBSIDIARIES AND ASSOCIATES

1 - OPERATIONS OF SUBSIDIARIES AND CONTROLLED COMPANIES

In accordance with the provisions of article L.233-6 paragraph 2 of the French Code of Commerce, we hereby

report to you on the operations and results of the Company and the subsidiaries that it controls by business

division.

At year-end, HAULOTTE GROUP exercised controlling interests in 33 subsidiaries. The results of these subsidiaries

are summarised below (€ thousands):

2021 revenue

2020

in € revenue in € profit (loss)In profit (loss)In

thousands thousands € thousands € thousands

2021 net

2020 net

Percentage

of holding

Subsidiary

HAULOTTE FRANCE. SARL.

HAULOTTE SERVICES France SARL

TELESCOPELLE SAS

99.99%

72,450

73,982

3,394

2,212

100% by

HAULOTTE

FRANCE SARL

- 0

100.00%

116

120

HAULOTTE ACCESS EQUIPMENT MANUFACTURING

(CHANGZHOU) CO. Ltd.

100.00%

42,017

49,335

1,090

4,109

HAULOTTE ARGENTINA SA

HAULOTTE ARGES SRL

100.00%

99.98%

8,826

88,229

46,669

10,132

40,292

30,532

33,561

5,882

4,000

75,959

38,108

6,036

35,739

21,611

484

1,160

4,278

4,407

HAULOTTE AUSTRALIA Pty Ltd

HAULOTTE DO BRAZIL Ltda

HAULOTTE HUBARBEITSBUHNEN GmbH

HAULOTTE IBERICA S.L

214

- 43

2,236

2,216

2,895

2,195

237

8,529

1,476

1,287

1,111

100.00%

98.71%

HAULOTTE ITALIA S.r.l.

99.00%

99.99%

27,362

4,864

1,923

HAULOTTE MEXICO SA DE CV (2)

HAULOTTE MIDDLE EAST FZE

HAULOTTE NETHERLANDS B.V

HAULOTTE POLSKA SP ZOO

HAULOTTE SCANDINAVIA AB

HAULOTTE SINGAPORE Ltd

HAULOTTE TRADING (SHANGHAI) CO LTD

HAULOTTE UK Ltd

- 173

100.00%

91.00%

2,994

- 1,343

496

24,003

10,973

14,620

11,248

16,268

16,530

72,949

31,608

5,687

14,579

13,242

16,786

9,782

18,789

14,981

45,015

28,822

4,450

- 0

1,167

745

871

1,203

158

490

1,276

518

2,974

1,049

2,727

1,729

861

HAULOTTE US Inc

9,224

706

HAULOTTE VOSTOK OOO

HORIZON HIGH REACH LIMITED

LEVANOR MAQUINARIA DE ELEVACION SA

- 732

- 0

MUNDIELEVACAO, ALUGER E TRANSPORTE DE

PLATAFORMAS LDA

90% by

LEVANOR

- 0

30,897

37,264

- 0

24,299

25,049

918

100% by

HAULOTTE US

Inc.

EQUIPRO / BIL-JAX (1)

454

- 1,585

100% by BIL-

JAX

Haulotte North America Manufacturing L.L.C.

728

131

- 2,130

HAULOTTE CHILE SPA

100.00%

3,767

2,382

2,384

2,096

218

224

HORIZON HIGH REACH CHILE SPA

HAULOTTE INDIA PRIVATE LTD

ACARLAR DIS TICARET VE MAKINA SANAYI A.S.

HAULOTTE DIGITAL SUPPORT CENTER

HAULOTTE JAPAN

- 1,468

6,329

6,643

975

1,339

- 95

616

- 16

HAULOTTE CANADA

- 0

We inform you that N.D.U Maquinaria Y Plataformas Elevadoras S.L., a company 100% owned by Haulotte Iberica

S.L. was liquidated on 24 November 2021.

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2 - ACQUISITIONS OF SHAREHOLDINGS OR CONTROLLING INTERESTS

In accordance with articles L.233-6 paragraph 1 and L.247-1, I-1° of the French Code of Commerce, we hereby

inform you that the Company has not acquired any holdings in the period under review in any other company

having its registered office in France representing more than one twentieth, one tenth, one fifth, one third, one

half or two thirds of the capital or voting rights of the company or acquiring a controlling interest in such

company, must notify the Company.

3 - DISPOSALS OF SHAREHOLDINGS RELATED TO ADJUSTMENTS OF

CROSS-SHAREHOLDINGS

In accordance with article R.233-19, paragraph 2 of the French Code of Commerce, we inform you that the

Company has not divested any shares for the purpose of eliminating cross-shareholdings prohibited by articles

L.233-29 and L.233-30 of the French Code of Commerce.

4 - OWN SHARES HELD THROUGH CONTROLLED COMPANIES

In accordance with article L.233-13 of the French Code of Commerce, we inform you that no company directly or

indirectly controlled by the Company holds own shares.

5 - LIST OF EXISTING BRANCH OFFICES

In compliance with article L.232-1, II of the French Code of Commerce, the list of branch offices as of today is

disclosed below:

Address

City

La Péronnière

L'Horme (42)

Lorette (42)

Le Creusot (71)

Reims (51)

Quartier Serve Bourdon

Rue d’Harfleur

104 rue de Courcelles

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PART 3: INFORMATION ON CAPITAL HOLDINGS

1 - CHANGES IN THE COMPANY'S SHARE CAPITAL DURING THE PERIOD

None.

2 - IDENTITY OF HOLDERS OF SIGNIFICANT SHAREHOLDINGS

In accordance with the provisions of article L 233-13 of the French Code of Commerce and based on the

information and notifications received pursuant to articles L.233-7 and L.233-12 of the French Code of Commerce,

the identity of shareholders directly or indirectly owning over 5%, 10%, 15%, 20%, 25%, 30%, 33%, 50%, 66%, 90% or

95% of the share capital or voting rights on the closing date, i.e. at 31 December 2021, and any modifications

made in the period, are disclosed below:

Name of the

shareholder

Thresholds

Percentage of holding

Capital

Voting rights

5% to 10%

10% to 15%

15% to 20%

20% to 25%

25% to 33% 1/3

33% 1/3 to 50%

50% to 66% 2/3

66% 2/3 to 90%

90% to 95%

SOLEM SAS

57.50%

74.90 %

More than 95%

By letter dated 5 March 2021, Amiral Gestion (103 rue de Grenelle, 75007 Paris) reported having crossed above the

threshold of 1% of Haulotte Group’s capital on 2 March 2021 and holds 324,671 shares representing 1.03% of

capital and 0.66% of voting rights in the Company.

By email dated 10 March 2021, Amiral Gestion (103 rue de Grenelle, 75007 Paris) reported having crossed above

the threshold of 1% of Haulotte Group's capital on 8 March 2021 and holds 527,184 shares representing 1.68% of

capital and 1.08% of voting rights in the company.

By email dated 12 March 2021, Norges Bank Investment Management (Bankplassen 2, Oslo 0151, Norway),

reported having crossed below the threshold of 2% of Haulotte's capital on 11 March 2021 and holds 619,122 shares

representing 1.97% of the company's capital.

By letter dated 11 May 2021, the Caisse des Dépôts et Consignations (56 rue de Lille, 75356 Paris 07 SP) reported

having crossed below, indirectly through the intermediary of CDC Croissance, the legal threshold of 2% of voting

rights in the Haulotte Group and holds, indirectly through the intermediary of CDC Croissance, 973,584 shares

representing 3.10% of capital and 1.99% of voting rights in the company.

By email dated 28 May 2021, Norges Bank Investment Management (Bankplassen 2, Oslo 0151, Norway) reported

having crossed below the threshold of 1% of Haulotte Group's capital on 27 May 2021 and holds 418,649 shares

representing 0.86% of the company's capital.

By letter dated 23 August 2021, the Caisse des Dépôts et Consignations (56 rue de Lille, 75356 Paris 07 SP)

reported having crossed below the legal threshold of 3% of Haulotte Group's capital on 19 August 2021 and holds,

indirectly through the intermediary of CDC Croissance, 930,429 shares representing 2.96% of capital and 1.91% of

voting rights in the company.

By email dated 1 September 2021, Norges Bank Investment Management (Bankplassen 2, Oslo 0151, Norway)

reported having crossed below the threshold of 1% of Haulotte Group's capital on 31 August 2021 and holds

312,656 shares representing 0.9966% of the company's capital.

Based on a share capital made up of 31,371,274 shares representing 48,707,691 theoretical voting rights.

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By letter dated 6 September 2021, Sycomore Asset Management (14 avenue Hoche, 75008 Paris) reported having

crossed above the threshold of 1% in Haulotte Group's capital on 31 August 2021 and holds 327,615 shares

representing 1.04% of capital and 0.67% of voting rights in the company.

3 - EMPLOYEE STOCK OWNERSHIP

In accordance with the provisions of article L.225-102 of the French Code of Commerce, we hereby inform you

that no shares making up the Company’s share capital were held by employees of the Company or by

employees of affiliated companies within the meaning of article L.225-180 as part of a company savings plan

provided for by articles L.443-1 to L.443-9 of the French labour code, and by employees and former employees in

connection with a company savings plan (Plan d’Epargne d’Entreprise) governed by chapter III of Law 88-1201 of

23 December 1988 on collective investment undertakings and the creation of debt investment funds. Also taken

into account are registered shares held directly by employees in accordance with articles L.225-187 and L.225-196

of said Code according to the version previous to the entry into force of Law 2001-152 of 19 February 2001 on

company saving plans, article L.225-197-1 of this Code, article L.3324-10 of the French labour code, article 31-2 of

Ordinance 2014-948 of 20 August 2014 on governance and equity transactions on companies with public

participation and article 11 of the Privatisation Act 86-912 of 6 August 1986 in its version prior to implementation

by the aforementioned Ordinance 2014-948 of 20 August 2014.

4 - STOCK OPTIONS TO SUBSCRIBE FOR NEW SHARES OR PURCHASE

EXISTING SHARES AND ALLOCATION OF FREE SHARES

We inform you that a free shares allocation plan for ordinary shares was implemented by the Board of Directors

on 13 March 2018 for the benefit of employees of the Company and eligible subsidiaries.

This free shares allocation plan concerns 70,000 shares awarded to seven employees, or 10,000 shares per

beneficiary which represents 0.22% (rounded) of the share capital.

Please be informed that the Board of Directors decided on 17 July 2020, in the context of the COVID-19 health

crisis, to modify the free shares allocation plan adopted on 13 March 2018, extending the vesting period from

three (3) to four (4) years starting from the Allocation Date, so a Final Allocation Date moved from 14 March 2021

to 14 March 2022.

We hereby inform you that the Board of Directors meeting on 8 March 2022 closing the financial statements for

the year ending on 31 December 2021 noted, based on the Haulotte Group's consolidated accounts on said date,

that the Haulotte Group's performance objectives, as defined in the Rules on the free shares allocation plan,

dated 13 March 2018 and as amended on 17 July 2020, and upon which the final allocation of shares in particular

was conditional, were not achieved and that, consequently, said plan has become null and void and that no

shares will be allocated in this regard.

5 - INFORMATION ON THE COMPANY'S SHARE

At 31 December 2021, the Company's share capital was comprised of 31,371,274 shares. The market capitalisation

at 31 December 2021 was €151 million.

The volume of transactions during the financial year is as follows:

Trading

volume

(number

of shares)

538,601

Number

trading

sessions

Average

price

(opening) (closing)

Average

price

High

(price)

High

(date)

Low

(price)

Closing

price

Capital

(€m)

Date

Low (date)

Jan.-21

6.560

6.950

11/01/2021

5.600

28/01/2021

01/02/2021

31/03/2021

6.030

6,159

6,477

6,605

6.330

6.209

6,383

6,111

6,134

6,476

6.568

6.329

6,184

6,399

6,085

5,999

5,950

3.30

Feb.-21

Mar.-21

Apr.-21

May-21

Jun.-21

Jul.-21

19/02/2021

5.920

6.060

6.580

6.060

6.350

6.150

755,518

4.95

7.66

4.02

1.45

2.15

7.340 04/03/2021

6.650 27/04/2021

6.520 03/05/2021

1,135,222

642,007

234,187

6.020 01/04/2021

6.040 04/05/2021

6.140 01/06/2021

5.590 23/07/2021

5.800 09/08/2021

5.620 30/09/2021

6.640

17/06/2021

6.400

6.010

6.020

5.620

336,474

235,306

170,109

6.450 05/07/2021

1.42

1.03

0.89

Aug.-21

Sep. -21

6.620

6.290

13/08/2021

17/09/2021

5,994

5,971

150,234

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ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED 31 DECEMBER 2021

PART 4: TAX INFORMATION

1 - SUMPTUARY EXPENSES AND DISALLOWED DEDUCTIONS

In compliance with the provisions of article 223, point 4 of the French general tax code, we hereby inform you

that the accounts for the past financial year include non-deductible expenses of €128,921, in accordance with

article 39-4 of the French general tax code and on that basis the corresponding theoretical tax is €35,453 based

on a theoretical tax rate of 27.5%.

2 - DIVIDENDS DISTRIBUTED BY THE COMPANY IN THE LAST THREE

FINANCIAL YEARS

As required by article 243(a) of the French general tax code, information on dividends paid for the last three

financial years is disclosed below:

Distributed amount Distributed amount not

Dividends eligible for the reduction

eligible for the

distributed

(excl. treasury

provided for under reduction provided for

article 158-3-2 of the under article 158-3-2 of

shares) French general tax code. the French general tax

code.

Financial year ended 31 December 2020

Financial year ended 31 December 2019

Financial year ended 31 December 2018

€0

€6,493,979.58

€ 6,495,638.38

€0

€6,493,979.58

€ 6,495,638.38

None

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PART 5: GROUP MANAGEMENT REPORT

In accordance with the provisions of articles L.233-16 and L.225-100-1 of the French Code of Commerce, we hereby

report to you on the management of the Group for the period ended 31 December 2021.

1 - PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS AND

SIGNIFICANT ACCOUNTING POLICIES

Companies included in the scope of consolidation are listed in paragraph 1 of section 2 of this report. The

situation of these companies is described in paragraph 1 of part 1 and in the table contained in paragraph 1 of

part 2 of this report.

The Group’s financial statements at 31 December 2021 have been prepared in accordance with IFRS standards as

adopted by the European Union.

2 - CHANGES IN THE PRESENTATION OF THE ANNUAL ACCOUNTS OR

METHODS OF VALUATION APPLIED IN PRIOR YEARS

No changes were made in the presentation of the consolidated financial statements or methods of valuation

applied in prior years. Changes in accounting methods are presented in the summary of significant accounting

policies in Note 3 to the consolidated financial statements.

Following the IFRS IC Decision, which concluded that the provision of benefits to be accounted for can only

include the period covering an employee's last 16 years of service (or between the date of employment and the

date of retirement if the period, thus determined, is less than 16 years), an upturn of €1.1m was calculated at the

opening.

3 - REVIEW OF OPERATIONS AND RESULTS OF THE GROUP FOR THE YEAR

UNDER REVIEW:

With a strong recovery in the worldwide market for aerial work platforms in all geographical areas, Haulotte

recorded an increased turnover between the two periods, driven by all of its activities.

The Group posted a higher current operating result for the year compared to 2020. The increased difficulties

regarding the supply of components and the significant increase in their price observed in the second part of the

year impacted the Group's results despite the excellent sales momentum and the good control over fixed costs

observed during the financial year.

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ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED 31 DECEMBER 2021

4 - COMPREHENSIVE OBJECTIVE ANALYSIS OF REVENUE, EARNINGS AND

FINANCIAL POSITION OF CONSOLIDATED OPERATIONS, AND

PARTICULARLY DEBT WITH RESPECT TO THE VOLUME AND

COMPLEXITY OF THEIR BUSINESS ACTIVITY.

Group results for the period break down as follows:

In € millions

FY 2021

497.3

17.6

FY 2020

438.5

11.0

Revenue

Current operating income

Operating profit

12.0

3.9

Profit before tax

16.1

(15.6)

(26.0)

(26.1)

NET INCOME OF CONSOLIDATED COMPANIES

Net profit attributable to owners of the Group

8.1

7.9

Total revenue for 2021 came to €497.3 million compared to €438.5 million in 2020, representing an increase of

13% between the two periods at a constant exchange rate.

Annual cumulative sales in Europe grew by +13%.

The Asia-Pacific Region recorded a decline in sales of -16%.

Sales in the Americas grew by +44%.

Over the year, equipment sales were up +11%, the equipment rental business registered an increase of +40% and

the Service business grew by +22%.

Current operating income for the Group came to €17.6 million compared to €11 million in 2020. The increased

difficulties regarding the supply of components and the significant increase in their price observed in the second

part of the year impacted the Group's results despite the excellent sales momentum and the good control over

fixed costs observed during the financial year.

Operating profit came to €12 million, compared to €3.9 million for the previous year.

At 31 December 2021, consolidated net income for the period was €8.1 million compared to €(26.0) million in

2020.

Group net debt (including guarantees) increased in the period from €162.2 million at 31 December 2020 to

€167.6 million at 31 December 2021. This debt is primarily carried by HAULOTTE GROUP S.A., with in particular the

Group’s syndicated credit facility, of which €101 million had been drawn down at 31 December.

5 - DESCRIPTION OF THE MAIN RISKS AND UNCERTAINTIES FOR THE

COMPANY'S SUBSIDIARIES

The main risks and significant uncertainties that could have a significant impact on the Group identified at 31

December 2021 relate on the one hand to market risk and the foreign exchange environment in which the

Group operates and, on the other hand, items relating to its liquidity situation.

In the European market, the Group recorded overall growth in sales in almost all markets.

In the Asia-Pacific region, the Group recorded a decrease in sales.

In North America, business growth continued.

In Latin America, in a well-oriented market in all the countries, Haulotte recorded a growth in sales, mainly driven

by Brazil.

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The equipment rental business saw a pronounced increase over the period.

The Group maintains its policy of a centralised management of foreign exchange and pays specific attention to

the variation of foreign currencies on its main markets, as these could significantly affect its financial

performance.

Based on the level of cash resources and credit lines open and available at 31 December 2021 compared with

cash forecasts for the first few months of 2022, the Group's ability to cover its liquidity requirements remains

intact. Information on borrowings and payables is provided in note 20 to the consolidated financial statements.

6 - THE EXPOSURE OF SUBSIDIARIES TO RISK CONCERNING PRICE, CREDIT,

LIQUIDITY AND CAPITAL RESOURCES

The Group exposure is largely limited to credit and liquidity risk.

6.1 Credit risk

The exchange rate (credit) risk is described in note 5 to the consolidated financial statements.

6.2 Liquidity risk

The liquidity risk is described in note 5 to the consolidated financial statements.

7 - INFORMATION ABOUT THE USE OF FINANCIAL INSTRUMENTS WHEN

THIS IS RELEVANT FOR MEASURING ITS ASSETS,LIABILITIES, FINANCIAL

POSITION AND PROFITS OR LOSSES

Financial instruments used by the Group are intended to cover its foreign exchange and interest rate risks.

The Company does not systematically hedge interest rate and foreign exchange risk.

7.1 Exchange rate risk

The exchange rate risk as described in notes 5 and 17 to the consolidated financial statements.

7.2 Interest rate risk

The interest rate risk as described in note 5 to the consolidated financial statements.

8 - FORESEEABLE CHANGES IN THE GROUP'S SITUATION AND OUTLOOK

With a historic level of orders in a market which is still buoyant and despite the tensions in the supply chain for

specific components, Haulotte expects to grow its sales by more than +20% in 2022.

9 - SIGNIFICANT EVENTS BETWEEN THE CLOSING DATE AND THE DATE OF

PUBLICATION OF THE CONSOLIDATED FINANCIAL STATEMENTS

Events which occurred after the closing date are detailed in note 47 of the annexes to the consolidated accounts.

10 - RESEARCH AND DEVELOPMENT OF THE GROUP

Research and development have remained an important focus of Group efforts for several years. Innovation

processes have been defined as one of the strategic processes of the Group.

The objective of this process is to propose new products or renew existing lines addressing the needs of its

customers. Paragraph 10 of section 1 provides detailed information on the most important achievements of the

period concerning Haulotte Group S.A.. R&D expenditures were also incurred for the Group’s other plants.

Research and development expenditures by the Group in the period amounted to €15,854,000.

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APPENDIX 1 - FIVE-YEAR FINANCIAL SUMMARY

Closing date

31/12/2021

31/12/2020

31/12/2019

31/12/2018

31/12/2017

Length of the financial year (months)

SHARE CAPITAL AT YEAR-END

Common stock

4,078,266

Number of shares

- ordinary shares

31,371,274

1,862,120

31,371,274

1,839,251

31,371,277

1,853,642

29,517,635

31,371,274

1,836,567

31,371,274

1,777,898

- treasury shares:

- dividend-right shares

29,509,154

29,532,023

29,534,707

29,593,376

Maximum number of future shares to be created

- from the conversion of bonds

- from subscription rights

OPERATIONS AND RESULTS

Sales ex-VAT

210,615,586

186,552,400

286,256,556

279,519,047

244,466,351

Profit before income tax, profit-sharing,

depreciation and provisions

Corporate income tax

5,874,712

- 18,772,589

12,275,616

-4,400,505

-23,071,567

3,821,087

3,130,979

-3,791,511

-2,908,722

-2,802,161

Employee profit-sharing

Allowances and Reversals of depreciation,

amortisation and provisions, expense reclassifications

21,820,373

15,655,902

19,296,382

4,870,294

-29,551,919

Net income

23,873,999

6,492,014

31,297,512

-3,229,255

6,493,980

-6,362,077

6,495,638

9,282,513

6,507,391

Distributed profit

EARNINGS PER SHARE

Profit after income tax, profit-sharing,

and before depreciation, amortisation and provisions

Profit after income tax, profit-sharing,

depreciation, amortisation and provisions

Distributed dividends

0.07

- 0.50

0.51

0.05

0.65

0.76

0.22

1.00

0.10

0.22

- 0.20

0.22

0.30

0.22

PERSONNEL

Average number of employees for the financial

year

651

676

643

618

Total payroll

29,533,343

12,814,904

28,538,810

12,257,418

31,091,823

13,145,674

27,776,208

13,247,689

25,641,354

12,335,070

Benefits paid (social security, welfare benefits,

etc.)

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APPENDIX 2 - BOARD OF DIRECTORS' REPORT ON CORPORATE

GOVERNANCE

Dear shareholders,

In accordance with the provisions of the last paragraph of article L. 225-37 of the French Code of Commerce, we

hereby present in this report on corporate governance, the disclosure required by regulations in force and

notably those of articles L. 225-37-4 and L22-10-8 of the French Code of Commerce.

The terms of this report were prepared and adopted by the Board of Directors on 8 March 2022.

1 - CORPORATE GOVERNANCE

In accordance with the provisions of article L.22-10-10 of the French Code of Commerce, we hereby report to you

on:

- the composition and conditions for preparing and organising the Board's work;

- the reasons justifying the absence of a diversity policy applied to members of the Board of Directors as well

as information on how the Company seeks to achieve balanced gender representation on the

Management Committee established by executive management for the purpose of regularly assisting the

performance of its general missions and results in terms of gender diversity for the 10% category of senior

positions;

- limitations on the powers of the Chief Executive Officer that may exist;

- in the event that the provisions of the Middlenext Code of corporate governance to which the Company

refers would have been set aside, the reasons for this;

- special procedures for the participation of shareholders in general meetings or provisions of the articles of

association providing for such procedures; and

- description of the procedures put in place by the Company in application of article L.22-10-12 and its

implementation.

1.1 Composition of the Board of Directors and the diversity policy

applied to its members

1.1.1 Choice of the Middlenext Corporate Governance Code

The Company has decided to refer to the Middlenext Code of December 2009 and last revised in September 2021

as its reference for corporate governance in accordance with the provisions of article L.22-10-10, 4 of the French

Code of Commerce. The Company considered that this code was best suited to its size and shareholder

structure.

This code can be consulted on the Middlenext website (www.middlenext.com).

In accordance with the Middlenext Code recommendation 22 revised in September 2021, the Board of Directors

duly noted on 8 March 2022 the specific items calling for vigilance listed therein.

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1.1.2 Composition of the Board of Directors

The composition of the Company's Board of Directors on the date of the report

herein includes the following

seven directors, of which two are independent:

Last name, first name,

Year of first

Audit

Committee

member

Independent

Expiration date of office in progress

title or function of the

appointment

Director

directors

Pierre Saubot

1989

1985

1999

At the close of the general meeting of

shareholders called to approve the financial

statements for the year ending on 31 December

2023

Chair of the Board of

Directors - Chief

Executive Officer

Director

At the close of the general meeting of

shareholders called to approve the financial

statements for the year ending on 31 December

2023

Alexandre Saubot

At the close of the general meeting of

shareholders called to approve the financial

statements for the year ending on 31 December

Deputy Chief Executive

Officer

2021

At the close of the general meeting of

shareholders called to approve the financial

statements for the year ending on 31 December

Director

2021

Elisa Savary

Director

1998

2004

2018

At the close of the general meeting of

shareholders called to approve the financial

statements for the year ending on 31 December

Yes

Member

2021

Hadrien Saubot

Director

At the close of the general meeting of

shareholders called to approve the financial

statements for the year ending on 31 December

2021

José Monfront

Director

At the close of the general meeting of

shareholders called to approve the financial

statements for the year ending on 31 December

2021

Anne Danis-Fatôme

Director

At the close of the general meeting of

shareholders called to approve the financial

statements for the year ending on 31 December

2023

Elodie Galko

Director

At the close of the general meeting of

shareholders called to approve the financial

statements for the year ending on 31 December

2023

On the date of this report, the Board of Directors has not considered it opportune to implement a diversity policy

within the meaning of article L.22-10-10, 2 of the French Code of Commerce, in light of the family composition,

reduced size and current operations of the Board. However, it is noted that the Board of Directors has been

committed over the last years to open up its membership to figures from the outside contributing a different

perspective on the Board's decisions, in particular by appointing independent directors within the meaning of

the Middlenext Code recommendation 3.

Mr Michel Bouton resigned from his position as Director during the Board of Directors meeting on 8 March 2022.

Mr Alexandre Saubot's mandate as Deputy Chief Executive Officer was renewed by the Board of Directors on 8 March 2022 (renewed for the duration of

his mandate as Director), under the condition precedent that his mandate as Director is renewed by the general meeting of shareholders called to

approve the accounts for the financial year closed on 31 December 2021.

Renewal of the mandates as Directors of Ms Elisa Savary and Messrs Alexandre Saubot, Hadrien Saubot and José Monfront will be proposed to the

general meeting of shareholders called to approve the accounts for the financial year closed on 31 December 2021.

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With respect to the company’s efforts to achieve balanced gender representation on the Company’s

management board, the last recruitment concerned a member of the Executive Committee at the end of 2016

(assumption of duties in February 2017). This recruitment was in line with the Company’s goal of increasing the

executive Committee’s international profile and the membership of women resulting in selection of a specialised

firm to that purpose. To date, no woman has applied for this position.

If the recruitment of a new member to the committee should be considered in the future, the Company will

endeavour to follow the same policy with respect to expanding its international profile and the membership of

women.

With respect to its results in the area of gender diversity for the 10% category of senior positions, women

represented 8.33% at 31 December 2021, a decrease of 1.05 points compared to the financial year closed on 31

December 2020.

1.1.3 Application of the principle of balanced gender representation

on the Board of Directors

In compliance with articles L.225-18-1 and L.22-10-3 of the French Code of Commerce, we inform you that on the

date of the report herein the breakdown of directors by gender is as follows:

- Number of male directors: 4;

- Number of female directors: 3.

1.1.4 Independent directors

The notion of independent member adopted is that provided by Recommendation 3 of the Middlenext Code,

and namely:

- they must not have been during the last five years an employee or executive officer of the company or a

company in its group;

- they must not have had any material business relationship with the company or its group for the last two

years (as a client, supplier, competitor, service provider, creditor, banker, etc.);

- they must not be reference shareholders of the Company or hold a significant percentage of voting rights;

- they must not have a close relationship or close family ties with a corporate officer or a reference

shareholder;

- they must not have been an auditor of the company in the course of the previous six years.

On 8 March 2022, the Board of Directors re-examined the situation of its membership with respect to these

criteria of independence. On that basis, it was determined that three were independent under the definition of

the MiddleNext code: Mr. Michel Bouton, Ms. Anne Danis-Fatôme and Ms. Elodie Galko

1.1.5 Terms of office

The term of office of members of the Board of Directors is set at six (6) years. This term was considered by the

company to be in compliance with Recommendation 11 of the Middlenext Code. To date, the Company has not

considered it useful to propose a modification to the articles of association providing for the staggered renewal

of the terms of office of directors, in light of its size and membership.

1.1.6 Conduct of business rules

In accordance with Recommendation 1 of the Middlenext Code, each member of the Board of Directors is made

aware of the obligations arising from his or her appointment and encouraged to adhere to the rules of conduct

relating to his or her appointment. At the beginning of their term of office, each director signs the board's

internal rules of procedure and undertakes notably to:

- comply with the provisions of statute relating to holding multiple offices,

- comply with applicable regulations,

- inform the Board in the event of a conflict of interest arising following appointment to the office,

- demonstrate diligence in attending meetings of the Board and General Meetings,

- ensure that they possess all necessary information for the agenda of the meetings of the Board before

making any decision, and

- comply with, concerning third parties, an absolute obligation of confidentiality exceeding the simple

secrecy obligation, as provided for in the legal texts.

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On the date of this report, the Chair-CEO and the Deputy CEO have not accepted other directorships in listed

companies, including foreign companies, outside the Group.

1.1.7 Training for Board Members

Following the new Recommendation 5 added to the Middlenext Code, as revised in September 2021, the Board

of Directors decided in their meeting on 8 March 2022 to give some some thought to putting a training plan in

place for members of the Board of Directors in accordance with said recommendation.

1.1.8 Review of known conflicts of interest

In accordance with article 4.3 of the Company's rules of procedure, each director is required to disclose any

situation actually or potentially giving the appearance of a conflict of interest between the corporate interest and

his or her direct or indirect personal interest or the interest of the shareholder or a group of shareholders he or

she represents.

In the event of such situation, the director concerned must:

- inform the Board of Directors as soon as he or she becomes aware of such conflict of interest,

- draw all resulting conclusions regarding the exercise of his or her office. And on this basis, according to the

case he or she must:

- either refrain from participating in the vote on the proceedings in question,

- or refrain from attending the meeting of the Board of Directors during which the conflict of interest

exists,

- or, as an extreme measure, resign from his or her position as director.

On 8 March 2022, in accordance with Middlenext Code Recommendation 2, the Company's Board of Directors

reviewed the known conflicts of interests and no situation of a potential or proven conflict of interest was

brought to its attention.

During the meeting on 8 March 2022, the Board of Directors became aware of the addition made to

Recommendation 2 of the Middlenext Code, as revised in September 2021, recommending that services, other

than certifying the accounts (excluding certification coming under the scope of due diligence directly connected

to the role of the auditor and services provided in application of legal or regulatory texts), be entrusted to a

different firm to the company's auditor. The Board of Directors noted that, at the present time, the Company

does not comply with this recommendation, taking into consideration the nature of the services entrusted to

date, their limited nature, and the efficient services performed to the best of the Company's knowledge by its

auditors. However, the Board of Directors confirmed that it will devote some thought to this subject for the

forthcoming financial years.

1.1.9 Choice of members of the Board of Directors

In accordance with Recommendation 10 of the Middlenext Code, when each member of the Board of Directors

is appointed or reappointed, information about their experience, expertise and the list of offices exercised is

provided in the report presented by the Board of Directors to the general meeting to approve the accounts for

the financial year closed on 31 December 2021 and presenting the draft resolutions submitted for your approval.

This information is also made available online on the Company's website. The appointment or renewal of each

member of the Board of Directors is subject to a specific resolution.

1.1.10 Mission of the Board of Directors

In accordance with article 2 of the Board's Rules of procedure, the Board's missions, in addition to the powers

recognised by the law and the articles of association, are as follows:

- Represent all shareholders,

- Issue opinions about all decisions relating to the major strategic, economic, social, financial or technological

priorities of the Company and ensure they are implemented by executive management,

- Look at the question of a succession plan for "Executives" and key people,

- Consider proposals calling for an audit or verification by the Chairman or the audit committee,

- Review items calling for vigilance as set out in the Middlenext Code.

We inform you that during the meeting on 8 March 2022, the Board of Directors decided, in the expectation of

clarification on the application conditions, that it will comply as soon as possible with Recommendation 14 of the

Middlenext Code, as revised in September 2021, which recommends that the Board pays specific attention to

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negative votes by analysing, among others, how the majority of minority voters expressed themselves and, in

view of the next general meeting, to look at opportunities to change what may have given rise to the negative

votes and at the possibility of communication on this subject.

Said Board meeting also took note of the fact that Recommendation 14 of the Middlenext Code, as revised in

September 2021, recommends that executives meet major shareholders who wish to do so before general

meetings, while ensuring compliance with equal information between shareholders. However, the Board

decided that, for the time being, as was already the case following the revision of said Code in September 2016, it

did not wish to put such a procedure in place for systematic meetings with major shareholders for reasons due

mainly to the composition of the Company's shareholding.

With regard to the new Recommendation 15 of the Middlenext Code, as revised in September 2021, providing

that the Board of Directors checks that a policy aimed at gender balance and equality has been properly

implemented at every hierarchical level in the company, it is specified that during the meeting on 8 March 2022,

the Board stated that such a procedure is well underway in the company. In fact, a company agreement on the

quality of life at work and workplace equality was signed in 2018 and provides several measures promoting

workplace equality. For 2021, Haulotte obtained a score of 87/100 in the workplace gender equality index.

1.1.11 Evaluation of the Board's work and practices

Following the consideration given, and work conducted, to put in place an evaluation procedure within the

Board, in accordance with Recommendation 13 (ex Recommendation 11) of the Middlenext Code, as revised in

September 2021, the Board of Directors adopted the following procedure for self-assessment, carried out at the

end of each meeting of the Board called to approve the Company’s annual accounts.

- a self-assessment questionnaire, prepared by the Company’s legal department, which is sent to each

director in advance of the Board meeting,

- each questionnaire will be returned to the Legal department following completion in order to prepare a

summary of responses on an anonymous basis to be presented to the Board meeting,

- on the basis of this summary, the Board will be asked to consider measures for improvement to be

implemented in connection with its work for the period in progress.

Following the most recent questionnaire submitted to the directors during the Board of Directors meeting on 8

March 2022, it appeared that the composition and functioning of the Board of Directors and the Audit

Committee are in line with members’ expectations.

During this Board meeting, it was reiterated, in accordance with Recommendation 13 of the Middlenext Code, as

revised in September 2021, that the Board, if it so wishes, can be supported by a third party.

1.1.12 Creation of committees:

In accordance with Recommendation 7 of the Middlenext Code, as revised in September 2021, we hereby report

to you on the Company's choice with respect to special committees.

After being made aware of the new Recommendation 8 of the Middlenext Code, as revised in September 2021,

recommending that every Board provides itself with a special committee on Corporate Social Responsibility

(CSR), the Board of Directors decided to consider creating such a committee.

1.1.12.1 Audit Committee

On 9 March 2011 the Board of Directors decided to create an Audit Committee in accordance with article L.823-

20, 4 of the French Code of Commerce for an unlimited period.

The functioning and the attributes of the Company's Audit Committee are described in article 6 of the

Company's rules of procedures available for consultation on the Company's website.

1.1.12.2 Composition

On the date of this report, the Board of Directors, when it meets for the purpose of exercising the missions of

Audit Committee, is comprised of the following five members:

- José Monfront

- Hadrien Saubot

Mr Michel Bouton resigned from his position as Director of the Haulotte Group during the Board of Directors meeting on 8 March 2022 due to his roles

as Chair and member of the Audit Committee of the latter.

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- Elisa Savary

- Anne Danis-Fatôme

- Elodie Galko

1.1.12.3 Number of audit committee meetings in the period ended 31

December 2021

The audit committee met four (4) times with an average attendance rate of 75 %.

1.2 Conditions for preparing and organising the Board of Directors' work

Meetings are conducted and decisions voted according to the conditions of quorum and majority provided for

by law and the Company's articles of association.

In accordance with Recommendation 7 of the Middlenext Code in its version of September 2016 (which became

Recommendation 9 in the version of said Code of September 2021 in force), the Board of Directors has internal

rules of procedures divided into the eight areas covered by this recommendation and available for consultation

on the Company's website.

The internal rules of procedures initially adopted by the Board of Directors on 11 March 2009, and subsequently

modified by the Board on 9 March 2011 and 20 January 2017 and recently on 8 March 2022, provide that except

for transactions covered by articles L.232-1 and L.233-16 of the French Code of Commerce and, as applicable, by

the Company’s articles of association, directors who take part in

a meeting of the Board through

videoconferencing or electronic means allowing for their identification and effective participation are deemed

present for determining the quorum and majority.

The means adopted must be capable of permitting the identification of participants and guaranteeing their

effective participation.

1.2.1 Meeting convening procedures

Directors are called to meetings according to the procedures authorised by article 13 of the Company's articles of

association.

In accordance with article L.823-17 of the French Code of Commerce, the statutory auditors were called to the

Board meetings that reviewed and adopted the interim and also the annual accounts.

1.2.2 Procedures for remitting documents and information required

to make decisions

Board members have received in advance of each meeting, all documents and information that are useful for

making informed decisions and the performance of their duties

1.2.3 Report on the Board of Directors' activities in the period ended

31 December 2021

The minutes of each meeting are drawn up under the responsibility of the Chair of the Board of Directors and

the Deputy CEO. These minutes are transcribed into the record after being signed by the chair of the meeting

and one director.

During the period ended 31 December 2021, the Company's Board of Directors met four (4) times, on the dates

indicated below.

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Number of

Meeting

dates

directors

present or participation

represented

Rate of

Main items of business on the agenda

Examination of the conclusions of the Audit Committee meeting of 9 March 2021

Review and approval of the separate parent company and consolidated financial

statements for the period ended 31 December 2020

Proposal for the appropriation of net income for the period ended 31 December 2020

Annual review of agreements covered by article L.225-38 et seq. of the French Code of

Commerce entered into and authorised in prior periods and remaining in force in the year

in question

Implementation of a procedure serving to assess, on a regular basis, whether the ordinary

agreements entered into under normal conditions properly fulfill these conditions.

Review of conflicts of interest known to the Company (R2 Middlenext in the September

2016 version)

Review of the independence of members of the Board of Directors (R3 Middlenext in the

September 2016 version)

Annual review of the Middlenext “items calling for vigilance” (R19 Middlenext in the

September 2016 version)

Evaluation of activities of the Board of Directors (R11 Middlenext in the September 2016

version)

Annual meeting on the company’s policy on workplace and wage equality on the basis of

indicators relating to workplace gender equality, as well as the workplace gender equality

plan

Establishment of the remuneration policy applicable to the Chair and chief executive

officer, the Deputy Chief Executive Officer and directors for the financial year before closing

on 31 December 2021, in application of the new article L.22-10-8 of the French Code of

Commerce

9 March

2021

87.5%

Review of information relating to remuneration of corporate officers referred to in article

L.22-10-9 of the French Code of Commerce

Review of the components of remuneration paid or granted for the period ended 31

December 2020 to Messrs. Pierre Saubot and Alexandre Saubot on the basis of their

mandates

Proposal to renew the mandate of the joint statutory auditor, the firm BM&A

Proposal to renew the mandate of the substitute joint statutory auditor, Mr Jean-Luc Loir

Proposal to grant authority to the Board of Directors in view of the Company purchasing its

own shares

Proposal to grant authority to the Board of Directors to increase the share capital by issuing

ordinary shares or any securities giving access to the capital while maintaining the

preferential subscription right of its shareholders

Proposal to grant authority to the Board of Directors Grant to increase the share capital by

issuing ordinary shares or any securities giving access to the capital while cancelling the

preferential subscription right and through a public offering, excluding offerings provided

for in paragraph 1 of article L.411-2 of the French Financial and Monetary Code

Proposal to grant authority to the Board of Directors Grant to increase the share capital by

issuing ordinary shares or any securities giving access to the capital while cancelling the

preferential subscription right as part of a public offering, as provided for in paragraph 1 of

article L.411-2 of the French Financial and Monetary Code

Proposal to grant authority to the Board of Directors in connection with issues entailing

waiver of preferential subscription rights through a public offer in order to set the issue

price according to the procedures established by the general meeting within the limit of

10% of the share capital per year

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Number of

Meeting

dates

directors

present or participation

represented

Rate of

Main items of business on the agenda

Proposal to grant authority to the Board of Directors to increase the number of shares to be

issued in the event of

subscription rights

a capital increase, with or without shareholders’ preferential

Proposal to grant authority to the Board of Directors to increase the share capital by issuing

shares or any securities giving access to the capital while cancelling the preferential

subscription right to the benefit of employees who are members of a company savings plan

or a Group savings plan, whether existing or to be created

Proposal to set the total aggregate amount of capital increases that may be carried out by

virtue of these delegations of authority granted under the terms of (i) the 13th and 14th

resolutions adopted by the general meeting on 26 May 2020 and (ii) the above delegations

of power

Proposal to grant authority to the Board of Directors to make necessary changes to the

articles of association to ensure they comply with legislative and regulatory provisions

Review and adoption of the management report and the Group management report for

the period ended 31 December 2020

Review and adoption of the Board of Directors’ report on corporate governance

Review and adoption of forward-planning documents

Prior authorization to conclude a sales agreement for lifting and handling equipment

between the Company and Solem in application of Article L.225.38 of the Code of

Commerce

26 March

2021

75%

Implementation of the authorization granted to the Board by the general meeting for the

purchase by the Company of its own shares

25 May 2021

62.5%

Review and approval of the interim consolidated accounts established on 30 June 2021

Preparation of the interim report in compliance with article L.451-1-2 III of the French

monetary and financial code;

September

2021

75%

Production of forward-planning documents in accordance with articles L. 232-2, R. 232-2

and R. 232-3 of the French Code of Commerce

1.3 Restrictions imposed by the Board of Directors on the powers of the

Chief Executive Officer

The powers of the Chair and Chief Executive Officer of the Company are not subject to any limits other than

those imposed by law.

As such, he is vested with the broadest powers to act in all circumstances in the name of the Company. He

exercises his powers within the limits of the corporate purpose and subject to the powers expressly granted to

shareholders' meetings and the Board of Directors. He represents the Company in its dealings with third parties.

1.4 Shareholders’ participation in the shareholders’ meetings

In accordance with article L.22-10-10, 5 of the French Code of Commerce, article 16 of the Company’s articles of

association sets out special procedures for the participation of shareholders in general meetings (copies of the

articles of association are available at the Company’s registered office and the registrar of the commercial court).

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2 - LIST OF OFFICES AND FUNCTIONS EXERCISED BY EACH CORPORATE

OFFICER FOR THE PERIOD ENDED 31 DECEMBER 2021

To comply with the provisions of article L.225-37-4, 1 of the French Code of Commerce, a list of the offices and

functions exercised in any company during the period ended 31 December 2021 by each corporate officer is

provided below:

Offices and

functions exercised

in the Company

Corporate offices

concerned:

Offices and functions exercised outside the Company

Chair of the

Board of

General Manager of Solem SAS

Directors

Pierre Saubot

Managing Partner of Société Commerciale du Cinquau,

Co-Manager of SCI Lancelot

Chief Executive

Officer

Director

Chair of the Board of Solem SAS,

Representative of Haulotte Group, Chair of Telescopelle SAS,

Managing Partner of Haulotte France SARL,

Managing Partner of Haulotte Services France SARL,

Co-Manager of SCI Lancelot

Director of Haulotte Netherlands BV,

Director of Haulotte Iberica,

Director of Haulotte Scandinavia,

Director of Haulotte Italia,

Manager of Haulotte GmbH,

Directorof Haulotte Polska,

Director of Haulotte UK,

Director of Haulotte Australia,

Deputy Chief

Executive

Officer

Chair of Haulotte US,

Alexandre Saubot

Director of Haulotte Singapore,

Director of Haulotte Arges,

Director

Chair of Haulotte Trading (Shangaï) Co. Ltd,

Director of Haulotte Mexico,

Director of Haulotte Middle East,

Representative of Haulotte Group, sole director of Horizon High Reach Limited,

Director of Haulotte India,

Director of Levanor

Director of MundiElevacao

Chair of the Board of Directors of Haulotte Access Equipment Manufacturing

(Changzhou),

Chair of the Board of Directors of Acarlar

Chairman-CEO of Haulotte Canada

Managing Director of Haulotte Japan

Elisa Savary

Director

None

Hadrien Saubot

José Monfront

Michel Bouton

None

Chair of JM Consulting

None

University professor and Chair of the Private Law department at Paris Nanterre

University

Anne Danis-Fatôme

Director

Regional director of Duval group in Toulouse

Elected (member of the finance committee) to the CCI in Toulouse on 26

November 2021

Elodie Galko

Director

Senior Vice-Chair of the FPI Occitanie Toulouse Métropole since 2 December

2021

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3 - REMUNERATION POLICY ESTABLISHED BY THE BOARD OF DIRECTORS

(ARTICLE L. 22-10-8 OF THE FRENCH CODE OF COMMERCE)

In accordance with articles L.22-10-8 and R.22-10-14 of the French Code of Commerce as amended by Order

2020-1142 of 16 September 2020 and Decree 2020-1742 of 29 December 2020, a description is provided in this

section of the remuneration policy of the Company applicable to all officers for the period ending 31 December

2021.

As a reminder, Mr Pierre Saubot and Mr Alexandre Saubot received remuneration solely for their respective

offices of Chair and Chief Executive Officer of Solem, a simplified French joint stock company (société par actions

simplifiée) with share capital of €476,735.25 having its registered office at 187 Route de Saint Leu in Epinay-sur-

Seine (93806) and registered in Bobigny (RCS No. 332 978 162) (hereafter “Solem”). Solem is the controlling

company of the Company within the meaning of article L.233-16 of the French Code of Commerce.

Concerning directors, the Company’s historic remuneration policy has been to not provide remuneration to the

latter as board members. In particular, directors do not receive the remuneration referred to in articles L.225-45

and L.22-10-14 of the French Code of Commerce.

Consequently, officers of the Company do not receive any remuneration, in any form whatsoever (fixed, variable,

exceptional or in shares) for the offices they hold within the Company. The officers of the Company do not

benefit from any commitments made by the latter or by any company that it controls or that is controlled by it

within the meaning of II and III of Article L. 233-16 of the French Code of Commerce, and the corresponding

components of remuneration or benefits in connection with the termination or a change in function or

subsequent thereto, or contingent rights granted pursuant to defined retirement benefit obligations meeting

the characteristics of the plans mentioned in Articles L. 137-11 and L. 137-11-2 of the French social security Code.

In light of the above, the information referred to in paragraphs 4 - 6 and 8 of Article R.22-10-14, I and 1 - 4 and 7 of

Article R.22-10-14, II of the French Code of Commerce are not applicable.

This officer remuneration policy is set in strict compliance with the Company’s corporate interests and in

reference to its commercial strategy. The Board of Directors considers that remuneration determined and set

exclusively at the level of Solem makes it possible to provide fair remuneration to the officers concerned based

on the parent company's larger scope of consolidation, by taking into account in particular the performance of

not only the Company but also its sister companies and subsidiaries.

This remuneration policy of the Company is determined by the Board of Directors, acting on a proposal from the

executive management. This remuneration policy is revised at least once a year at the time of the review of the

annual accounts and, at any time during the financial year, at the initiative of the Board of Directors, should

circumstances require.

The proposal from the executive management takes into account in particular the conditions of remuneration

and employment of the Company’s employees.

The implementation of the remuneration policy is verified at least once a year by the Board of Directors at the

time of the review of the annual accounts.

The remuneration policy applies by operation of the law under the supervision of the Board of Directors to newly

appointed corporate officers or those whose appointment has been renewed.

In order to prevent conflicts of interest in connection with the determination, revision and implementation of the

remuneration policy, the Board of Directors has appointed three independent directors as defined by the

Middlenext corporate governance code. In addition, the Board of Directors’ charter includes a procedure for

preventing and monitoring conflicts of interest.

The length of directors’ terms of office is presented in section 1.1.5 of this report. In addition, it is noted that on the

date of this special report, there exists no employment contract or service agreement contract has been entered

into directly between an officer and the Company. With respect to intragroup service agreements entered into

between Solem and the Company, please refer to the Auditors’ special report on regulated agreements

prepared in accordance with Article L. 225-40 of the French Code of Commerce.

This remuneration policy:

- has been approved by the general meeting of shareholders on 25 May 2021 (sixth resolution) in accordance

with article L.22-10-8 II of the Code of Commerce with over 95% of the votes in favour of the latter. Such a

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vote legitimizes the remuneration policy for the company's officers as drawn up by the Board of Directors;

- shall be the subject of a draft resolution to be submitted for approval at the shareholders’ general meeting

to be held on 24 May 2022 in accordance with said article.

4 - REMUNERATION OF OFFICERS PAID IN THE PERIOD ENDED 31

DECEMBER 2021

For the purpose of complying with the provisions of Article L.22-10-9 of the French Code of Commerce (as

amended pursuant to Order 2020-1142 of 16 September 2020 and Decree 2020-1742 of 29 December 2020),

information required thereunder is presented in this section for each officer.

In application of Article L.22-10-34 of the French Code of Commerce (as amended pursuant to Order 2020-1142 of

16 September 2020 and Decree 2020-1742 of 29 December 2020), it is hereby requested that you vote on a draft

resolution concerning the information referred to in Article L. 22-10-9 of the French Code of Commerce and, on

the other hand, to vote by means of distinct resolutions on the fixed, variable or exceptional components making

up the total remuneration and benefits of any nature paid in or granted for the period ended for the Chairman-

CEO and Deputy CEO.

The tables presented below were prepared in reference to the Middlenext code of corporate governance in the

September 2021 version. Any heading not included in the following tables in relation to the table templates

proposed by the MiddleNext Code corporate governance is considered as not applicable.

• Table 1: Summary of remuneration for each executive officer

Mr Pierre Saubot

Chairman and CEO

Financial year ended

31 December 2020

Financial year ended

31 December 2021

Percentage

relative to the

fixed and

variable

remuneration

Percentage

relative to the

fixed and

variable

remuneration

Amounts paid

(Gross base

remuneration

before tax)

(Gross base

remuneration

before tax)

Fixed annual remuneration paid by Solem for the office of

chief executive officer exercised within this company

€91,773.11

99%

€ 91,773.11

100%

Variable annual remuneration paid by Solem for the office of

chief executive officer exercised within this company

€350

€0

TOTAL

€92,123.11

100%

€91,773.11

100%

Mr Alexandre Saubot

Deputy Chief Executive Officer

Financial year ended

31 December 2020

Financial year ended

31 December 2021

Percentage

relative to the

fixed and

variable

remuneration

Percentage

relative to the

fixed and

variable

remuneration

Amounts paid

(Gross base

remuneration

before tax)

(Gross base

remuneration

before tax)

Fixed annual remuneration paid by Solem for the office of

chairman exercised within this company

€345,829.77

78%

€346,698.11

78%

Variable annual remuneration paid by Solem for the office of

chairman exercised within this company

€95,000

22%

€95,000

22%

TOTAL

€440,829.77

100%

€441,698.89

100%

The criteria used to calculate the amount of variable annual remuneration to be paid is set each year by Solem in reference to the quality of and

improvements to the results of Haulotte Group, as presented in the consolidated financial statements of Solem, for the previous financial year.

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• Table 2: Other remuneration received by non-executive officers

Mr José Monfront

Director

Financial year ended Financial year ended

31 December 2020 31 December 2021

Amounts paid (Gross Amounts paid (Gross

base remuneration

before tax)

None

base remuneration

before tax)

None

TOTAL

None

Mr Michel Bouton

Director

Financial year ended Financial year ended

31 December 2020 31 December 2021

Amounts paid (Gross Amounts paid (Gross

base remuneration

before tax)

None

base remuneration

before tax)

None

TOTAL

None

Ms Anne Danis-Fatôme

Director

Financial year ended Financial year ended

31 December 2020 31 December 2021

Amounts paid (Gross Amounts paid (Gross

base remuneration

before tax)

None

base remuneration

before tax)

None

TOTAL

None

Ms Elodie Galko

Director

Financial year ended Financial year ended

31 December 2020

31 December 2021

Amounts paid (Gross

base remuneration

before tax)

Amounts paid (Gross

base remuneration

before tax)

None

TOTAL

None

Ms Elisa Savary

Director

Financial year ended Financial year ended

31 December 2020

31 December 2021

Amounts paid (Gross

base remuneration

before tax)

Amounts paid (Gross

base remuneration

before tax)

None

TOTAL

None

Mr Hadrien Saubot

Director

Financial year ended Financial year ended

31 December 2020

31 December 2021

Amounts paid (Gross

base remuneration

before tax)

Amounts paid (Gross

base remuneration

before tax)

None

TOTAL

None

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• Table 3: Other indemnities or benefits granted to corporate officers

The following table provides details on the remuneration and benefits of company officers:

remuneration or benefits

owed or potentially due

Payments

relating to a

Supplemental

retirement

scheme

Corporate

officers

Employment

contract

upon termination or a non-competition

change in function

clause

Yes

Yes No

Yes

Pierre Saubot

Chair and Chief Executive Officer

Beginning of the renewed term of office: 13/03/

2018

End of appointment: At the close of the general

meeting of shareholders called to approve the

financial statements for the year ending on 31

December 2023

Director

Beginning of the renewed term of office: 29/05/

2018

End of appointment:

At the close of the general meeting of

shareholders called to approve the financial

statements for the year ending on 31 December

2023

Alexandre Saubot

Deputy Chief Executive Officer

Beginning of the renewed term of office: 13/03/

2018

End of appointment: At the close of the general

meeting of shareholders called to approve the

financial statements for the year ending on 31

December 2021

Director

Beginning of the renewed term of office: 24/05/

2016

End of appointment: At the close of the general

meeting of shareholders called to approve the

financial statements for the year ending on 31

December 2021

Elisa Savary

Director

Beginning of the renewed term of office: 24/05/

2016

End of appointment: At the close of the general

meeting of shareholders called to approve the

financial statements for the year ending on 31

December 2021

Hadrien Saubot

Director

Beginning of the renewed term of office: 24/05/

2016

End of appointment: At the close of the general

meeting of shareholders called to approve the

financial statements for the year ending on 31

December 2021

José Monfront

Director

Beginning of the renewed term of office: 24/05/

Mr Alexandre Saubot's mandate as Deputy Chief Executive Officer was renewed by the Board of Directors on 8 March 2022 (renewed for the duration of

his mandate as Director), under the condition precedent that his mandate as Director is renewed by the general meeting of shareholders called to

approve the accounts for the financial year closed on 31 December 2021. He will, therefore, subject to renewal of his mandate as a Director by said

general meeting, bring his position as Director to an end at the general meeting which is due to take place in 2028 to approve the accounts for the

financial year which will close on 31 December 2027.

Renewal of the mandates as Directors of Alexandre Saubot, Elisa Savary, Hadrien Saubot and José Monfront is subitted to the general meeting to

approve the accounts for the financial year closed on 31 December 2021.

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remuneration or benefits

owed or potentially due

Payments

relating to a

Supplemental

retirement

scheme

Corporate

officers

Employment

contract

upon termination or a non-competition

change in function

clause

2016

End of appointment: At the close of the general

meeting called to approve the financial

statements for the year ending on 31 December

2021

Michel Bouton

Director

Beginning of the renewed term of office: 24/05/

2016

End of appointment: 8 March 2022

Anne Danis-Fatôme

Beginning of term of office: 29/05/2018

End of appointment: At the close of the general

meeting of shareholders called to approve the

financial statements for the year ending on 31

December 2023

Elodie Galko

Beginning of term of office: 29/05/2018

End of appointment: At the close of the general

meeting of shareholders called to approve the

financial statements for the year ending on 31

December 2023

• Ratio between the level of remuneration of the Chair-CEO and Deputy CEO and, 1) the

average remuneration on a full-time equivalent basis of employees of the Company

other than the corporate officers, and 2) the median remuneration on a full-time

equivalent basis of employees of the company other than corporate officers

Financial year ended 31 December

2021

Pierre Saubot Alexandre Saubot

Chair and chief

executive officer

Deputy Chief

Executive Officer

Ratio between the remuneration of the corporate officer concerned and

the average remuneration of employees on a full-time equivalent basis

2.11

2.60

4.92

10.16

12.52

23.68

Ratio between the remuneration of the corporate officer concerned and

the median remuneration of employees on a full-time equivalent basis

Ratio between the remuneration of the corporate officer concerned and

the minimum wage

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• Changes in annual remuneration, performances of the Company, average remuneration

of employees of the Company on a full-time equivalent basis, other than executive

officers, and the above ratios, over the last five years

Financial year

31/12/2017

31/12/2018

31/12/2019

31/12/2020

31/12/2021

Pierre

Saubot

Alexandre

Saubot

Pierre

Saubot

Alexandre

Saubot

Pierre

Saubot

Alexandre

Saubot

Pierre

Saubot

Alexandre

Saubot

Pierre

Saubot

Alexandre

Saubot

Corporate offices concerned:

Total gross remuneration received within

Solem

€428,060.0

€88,132.00 €408,521.00 €91,374.00

€91,060.00 €436,055.00 €92,123.11 €440,829.77 €91,773.11 €441,698.89

Change in remuneration between N-1

and N

0.00%

3.68%

4.78%

-0.40%

1.87%

1.23%

1.10%

0.20%

-0.38%

Average remuneration of HGSA

employees (full-time, excluding senior

executives, gross amount)

€41,060.00

€42,551.00

€42,932.00

€41,993.00

€43,473.00

Change in the average remuneration of

employees between N-1 and N

3.63%

0.90%

-2.19%

3.52%

-.1.77%

Median remuneration of HGSA

employees (full-time, excluding senior

executives, gross amount)

€32,888.00

€33,785.00

€33,822.00

€34,743.00

€35,257.00

Change in the median remuneration of

employees between N-1 and N

-0.30%

€17,763.24

0.93%

2.73%

€17,981.64

1.23%

0.11%

€18,254.64

1.52%

2.72%

€18,473.04

1.20%

1.48%

€18,654.96

0.98%

Amount of the minimum wage

Change in the minimum wage between

N-1 and N

Ratio between the remuneration and the

average remuneration paid to HGSA

employees

2.15

9.95

1.80%

12.42

2.15

10.06

1.11%

12.67

2.12

10.16

0.96%

12.89

2.19

10.50

3.36%

12.69

2.11

10.16

-3.21%

12.53

Change in ratio between N-1 and N

1.80%

2.68

0.05%

2.70

-1.29%

2.69

3.49%

2.65

-3.77%

Ratio between the remuneration and the

median remuneration paid to HGSA

employees

2.60

Change in ratio between N-1 and N

0.30%

4.96

0.30%

23.00

0.93%

5.08

2.00%

23.81

-0.51%

4.99

1.76%

23.89

0.34%

-1.46%

4.99

-1.58%

23.86

-1.83%

4.92

-1.26%

23.68

Ratio between the remuneration and the

minimum wage

Change in ratio between N-1 and N

-0.92%

2.42%

3.51%

-1.89%

0.03%

-0.10%

-1.35%

-0.78%

Indicators of the Company’s performance

(on a consolidated basis)

€17,598,00

0.00

EBIT (current operating income)

Change in EBIT between N-1 and N

Revenue excl. VAT

€42,400,000.00

53.07%

€35,600,000.00

-16.04%

€35,900,000.00

-0.84%

€11,004,000.00

-69.35%

59.92%

€497,272,0

00.00

€499,400,000.00

€555,900,000.00

€609,800,000.00

€438,544,000.00

Change in revenue excl. VAT between N-1

and N

9.09%

11.31%

9.70%

-28.08%

13.39%

Note on methodology:

1. Procedures for calculation of ratios referred to in article L.22-10-9 6 of the French Code of Commerce:

▪ Numerator: total remuneration based on the gross pre-tax remuneration received by the Chairman & CEO

(or the Deputy CEO) within Solem in the absence of remuneration received within the Company.

▪ Denominator.

For average remuneration, the Company has calculated the average remuneration of employees of the

Company on an equivalent full-time basis.

For median remuneration, the Company has calculated the median remuneration of employees of the Company

on an equivalent full-time basis.

2. Scope of employees concerned: Within the meaning of article L.22-10-9 6 of the French Code of Commerce,

only employees of the Company, on a non-consolidated basis, i.e. at 31 December 2021, 610 employees (so

37.38% of Group employees based on the consolidated accounts at 31 December 2021).

3. Performance indicators selected in accordance with Article L.22-10-9 7 of the French Code of Commerce.

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As indicators of performance, the Company has selected revenue and current operating income (EBIT) as these

aggregates are presented in the consolidated financial statements of the Company for the last five years.

5 - AGREEMENTS COVERED BY ARTICLE L.225-37-4 2 OF THE FRENCH CODE

OF COMMERCE

For the purpose of complying with the provisions of article L.225-37-4 2 of the French Code of Commerce, we

remind you that this report must mention, except for ordinary agreements entered into under normal

conditions, those agreements entered into either directly or through a third party, between:

- on the one hand, one of the directors or shareholders possessing more than 10% of the voting rights of a

company,

- and, on the other hand, another company controlled by the first within the meaning of article L.233-3 of the

French Code of Commerce.

No agreements of this type were entered into in the period ended 31 December 2021.

6 - PROCEDURES IMPLEMENTED BY THE BOARD OF DIRECTORS IN

APPLICATION OF ARTICLE L.22-10-12 OF THE FRENCH CODE OF

COMMERCE

To comply with article L.22-10-10, 6 of the French Code of Commerce, we remind you that the Board of Directors

implemented a procedure serving to regularly assess if the ordinary agreements entered into under normal

conditions properly fulfil these conditions.

A method for identifying financial flows between Group companies has already been adopted by the Finance

Division, notably in connection with the transfer pricing policy.

To supplement this method, the Finance Division and Legal Division developed the following procedure to be

applied once a year when the annual financial statements are reviewed.

- Identification of all ordinary agreements entered into under normal conditions which remain applicable, or

newly entered into during the period under review;

- A summary of their main terms and conditions and features;

- A presentation of all agreements to the Board of Directors to be convened in order to approve the annual

financial statements in order to determine if these agreements continue to meet the criteria of ordinary

agreements entered into under normal conditions. Persons directly or indirectly concerned by an

agreement do not participate in its evaluation.

7 - ITEMS HAVING A POTENTIAL IMPACT IN THE EVENT OF PUBLIC

OFFERINGS

In application of article L.22-10-11 of the French Code of Commerce, we report to you on those items which we

consider likely to have an impact in the case of a public takeover bid or exchange offer.

7.1 Shareholder base

On 31 December 2021, the share capital and voting rights of the Company were majority-held by Solem that is

itself held by the Saubot family.

We invite you to refer to part 3 of the Board of Directors' management report which this report forms part of.

7.2 Restrictions under the Articles of Association on the exercise of

voting rights and the transfer of shares or the provisions of

agreements reported to the company in compliance with article

L.233-11 of the French Code of Commerce

Article 9 (Transfer and transmission of shares) of the Company's articles of association, provides that legal entities

or natural persons that acquire or cease to hold an amount equal to 1% of the share capital or the voting rights or

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any multiple thereof, must notify the company within fifteen days of crossing such thresholds.

Under its Articles of Association, if the company has not been thus notified, shares that exceed the amount to be

reported under this disclosure requirement shall be deprived of voting rights at the request of one or more

shareholders holding 5% of the share capital (with such request recorded in the minutes of the General Meeting).

7.3 List of direct or indirect shareholdings in the Company's capital of

which it has knowledge by virtue of articles L.233-7 and L.233-12 of

the French Code of Commerce

We invite you to refer to part 3 of the Board of Directors' management report to which this report is attached.

7.4 Holders of shares conferring special control rights and description

thereof

All shares of the Company confer upon shareholders a right to participate in shareholders' meetings under the

conditions and subject to the provision provided for by law and regulations.

Shares shall confer a right to a percentage of the company’s assets, the distribution of earnings and proceeds

after liquidation, equal to the proportion of the share capital they represent.

In accordance with article 16 of the articles of association, a double voting right is granted to all fully paid-up

shares in proportion to the capital they represent subject to proof that they have been registered for at least four

(4) years in the name of the same shareholder.

This right is also granted pursuant to the capitalisation of reserves, earnings or additional paid-in capital to free

registered shares granted on the basis of existing shares entitled to the same right.

7.5 Powers of the Board of Directors, in particular for the issuance or

repurchasing of shares

In application of article L.22-10-11.8, we invite you to refer to part 3 of the Board of Directors' management report

to which this report is attached as well as the table summarising the delegations of authority and powers

granted to the Board of Directors by the shareholders' general meeting.

7.6 Agreements entered into by the Company which are modified or

terminated in the event of a change of control of the Company

In application of article L.22-10-11.9, we inform you that agreements have been entered into by the Company

containing clauses in the event of a change in control, and notably in the case of contracts entered into with

certain service providers or financial institutions.

8 - SUMMARY OF DELEGATIONS OF AUTHORITY IN FORCE GRANTED BY

THE GENERAL MEETING OF SHAREHOLDERS TO THE BOARD OF

DIRECTORS FOR CAPITAL INCREASES IN COMPLIANCE WITH ARTICLES

L.225-129-1 AND L.225-129-2

To this report is attached, in accordance with the provisions of article L.225-37-4, 3 of the French Code of

Commerce, a table of delegations of authority in force granted by the general meeting of the shareholders

relating to capital increases, in application of articles L.225-129-1 and L.225-129-2, and indicating the uses made

thereof in the period.

Nature of the delegation

of authority or powers

granted to the Board of

Directors by the

Company in accordance

with article L.225-129-1

Capital

increase(s)

carried out in

the period

ended 31

Maximum nominal amount of capital

increases which may be carried out

immediately and/or in the future

Date of Length

General of

Meeting validity

Residual

amounts at 31

December 2021

(excluding issuances of debt securities)

December

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ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED 31 DECEMBER 2021

and L.225-129-2 of the

French Code of

Commerce

2021

Grant of authority to the

Board of Directors in

application of article L.225-

197-1 to L.225-197-6 of the

Code of Commerce to

See the Board of

Directors'

Special Report

produced in

application of

article L.225-197-

4 of the Code of

Commerce

See the Board of

Directors' Special

Report produced

in application of

article L.225-197-4

of the Code of

26/05/

2020

The total number of shares likely to be allocated

freely by the Board cannot exceed 0.5% of the

existing share capital on the date of the decision

to allocate them.

proceed with the free

months

allocation of existing shares

or to issue profits to all or

part of the employees and/

or the company officers as

per article L.225-197 II of the

Code of Commerce.

13th

resolution

Commerce

The maximum nominal amount of capital

increases that may be carried out, immediately

or in the future, cannot exceed €1,500,000, to

which may be added, as necessary, an

additional amount to preserve, in accordance

with statute or regulations and, as necessary,

Delegation of authority

granted to the Board of

Directors to increase the

share capital of the

26/05/

2020

Identical to the

maximum nominal

value

None

company through the

capitalisation of reserves,

retained earnings and

additional paid-in capital

months applicable contractual provisions, the rights of

holders of securities or other rights conferring

entitlement to shares, whereby it is specified

that this maximum amount is set

16th

resolution

independently and separately from the

maximum amount set forth above.

haulotte.com l 2021 MANAGEMENT REPORT

SUMMARY

MANAGEMENT

REPORT

ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED 31 DECEMBER 2021

Nature of the delegation

of authority or powers

granted to the Board of

Directors by the

Capital

increase(s)

carried out in

the period

ended 31

Maximum nominal amount of capital

increases which may be carried out

immediately and/or in the future

Date of Length

Meeting validity

Residual

amounts at 31

December 2021

Company in accordance General

with article L.225-129-1

and L.225-129-2 of the

French Code of

(excluding issuances of debt securities)

December

2021

Commerce

€1,300,000.00 (or the equivalent amount in the

event of an issue in another currency), whereby

it is specified that :

Delegation of authority

granted to the Board of

Directors to increase the

share capital through the

issuance of ordinary shares 25/05/2021

or all securities giving

access to the share capital

while maintaining

shareholders' preferential

subscription right.

- the maximum nominal mount of capital

increases that may be carried out, immediately

or in the future, under this delegation of

authority shall be included within the overall

ceiling set forth below in the twentieth

resolution,

Identical to the

maximum nominal

value

months

None

14th

resolution

- this amount will be increased, as necessary, by

the nominal amount of shares to be issued, to

preserve, in accordance with the law, and, as

necessary, applicable contractual provisions, the

rights of holders of securities and other rights

giving access to the company's capital.

€800,000, (or the equivalent amount in the

event of an issue in another currency), whereby

it is specified that:

Delegation of authority

granted to the Board of

Directors to increase the

share capital through the

issuance of ordinary shares

or all securities giving

access to the share capital,

cancelling the preemptive

subscription rights of

- the maximum nominal amount of capital

increases that may be carried out, immediately

or in the future, under this delegation of

authority shall be included within the overall

ceiling set forth below in the twentieth

resolution,

25/05/2021

Identical to the

maximum nominal

value

months

None

15th

- these amounts may be increased, as

necessary, by the nominal amount of ordinary

shares to be issued, to preserve, in accordance

with the law, and, as necessary, applicable

contractual provisions providing for other cases

for adjustments, the rights of holders of

securities and other rights giving access to the

company's capital.

resolution

shareholders, and public

offering, to the exclusion of

the offerings provided for in

section 1 of article L.411-2 of

the French financial and

monetary code

€800,000, nor in any case, exceed the limits

provided for by applicable regulations on the

issue date (by way of indication, to date, the

issue of equity securities carried out by an

offering covered by section 1 of article L.411-2 of

the French monetary and finance code is

limited to 20% of the share capital of the

Company per 12-month period, where said

capital is determined on the date of the

decision by the Board of Directors to use this

delegation of authority), whereby it is specified

that:

Delegation of authority

granted to the Board of

Directors to increase the

share capital through the

issuance of ordinary shares

or all securities giving

access to the share capital,

cancelling the preemptive

subscription rights of

shareholders, in connection

with a public offering for

the benefit of qualified

investors or a restricted

circle of investors as

25/05/2021

Identical to the

maximum nominal

value

months

None

16th

resolution

- these amounts may be increased, as

necessary, by the additional amount of shares to

be issued, to preserve, in accordance with the

law, and, as necessary, applicable contractual

provisions providing for other cases for

adjustments, the rights of holders of securities

and other rights giving access to shares,

provided for in section 1 of

Article L.411-2 of the French

financial and monetary

code

- the nominal amount of all capital increases

that may be carried out shall be included within

haulotte.com | 2021 MANAGEMENT REPORT

SUMMARY

MANAGEMENT

REPORT

ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED 31 DECEMBER 2021

Nature of the delegation

of authority or powers

granted to the Board of

Directors by the

Capital

increase(s)

carried out in

the period

ended 31

Maximum nominal amount of capital

increases which may be carried out

immediately and/or in the future

Date of Length

Meeting validity

Residual

amounts at 31

December 2021

Company in accordance General

with article L.225-129-1

and L.225-129-2 of the

French Code of

(excluding issuances of debt securities)

December

2021

Commerce

In accordance with Article L.225-135-1 of the

French Code of Commerce, within the limit of

15% of the initial issue.

Delegation of authority

granted to the board of

directors to increase the

number of shares to be

issued in the event of a

capital increase, with or

without shareholders’

preferential subscription

rights

25/05/2021

The nominal amount of all capital increases

decided by virtue of this delegation of authority

in connection with capital increases of the

Company, with or without preferential

subscription rights granted by virtue of the

fourteenth and sixteenth resolutions above, will

be included under the total ceiling provided for

below in the twentieth resolution.

months

N/A

18th

resolution

haulotte.com | 2021 MANAGEMENT REPORT

SUMMARY

MANAGEMENT

REPORT

ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED 31 DECEMBER 2021

30 May 2017 –

resolution 16

Shareholders meeting date

Date of grant by the Board of Directors of conditional rights to receive existing or future

shares of the Company

13 March 2018

Number of shares able to be awarded

70.000

0.24%

Percentage of the capital (rounded) on the date of grant by the Board of Directors

Number of RSUs awarded to corporate officers on the basis of their offices and functions

exercised in the Company

70.000

€19.12

Number granted to the ten employees of the Company or companies covered by article

L.225-197-2 of the French Code of Commerce who are not officers having received the

highest number

Unit value of RSUs awarded based on the closing price of the Company's share on the

grant date, i.e. 13 March 2018

Date when the shares are fully vested (1)

14 March 2022

End of the holding period (2)

N/A

Number of shares fully vested on the date of this report

Number of shares cancelled or lapsed on the date of this report

Number of shares able to be awarded on the date of this report

(1) The grant of contingent rights to receive existing shares or shares to be issued on the Company will become

fully vested, for each of the beneficiaries, only on condition that on the vesting date, they fulfil the conditions

imposed by the plan rules, and namely:

- that each beneficiary continues to be an employee of the Company or company covered by article L.225-

197-2 of the French Code of Commerce;

- that Haulotte group has met certain performance targets according to which the number of RSUs fully

vested may be subject to adjustments.

As an exception to the above, the following is provided:

- in the case where a beneficiary is affected during the vesting period by a situation of disability

corresponding to the second or third categories provided for in Article L.341-4 of the French Social Security

Code, such beneficiary may request to receive delivery in advance of the restricted stock units awarded at

any time from the date of disability. The RSUs will thereupon become freely transferable subject to certain

provisions provided for in the plan rules;

- in the case where a beneficiary dies before the end of the vesting period, his or her heirs or beneficiaries

may be entitled to receive the restricted stock units by requesting their grant in advance from the

Company by registered letter with acknowledgement of receipt within a period of six (6) months from the

date of the beneficiary's death.

We remind you that the Board of Directors decided on 17 July 2020, in the context of the COVID-19 health crisis,

to modify the free share allocation plan adopted on 13 March 2018, extending the vesting period from three (3) to

four (4) years as from the acquisition date. As such, shares will be fully vested on 14 March 2022 rather than 14

March 2021.

(2) In accordance with the powers granted to it by the decision of the general meeting of 30 May 2017 as well as

the provisions of article L.225-197-1 of the French Code of Commerce, and in light of the vesting period set for

three (3) years, the Board of Directors of the Company has decided to cancel the holding period. The RSUs will

thereupon become freely transferable, assignable and transmissible upon the end of the vesting period in

accordance with, and subject to compliance with the provisions of the plan rules, of the Company's articles of

association and applicable laws and regulations whose various provisions are destined to ensure the

transparency and security of financial markets and notably those relating to insider misconduct or trading.

haulotte.com | 2021 MANAGEMENT REPORT

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

CONSOLIDATED INCOME STATEMENT

In thousands of euros

Note

31/12/2021

31/12/2020

Sales and revenue

497,272

(389,329)

(30,637)

(48,321)

(11,771)

384

100.0%

-78.3%

-6.2%

-9.7%

-2.4%

0.1%

438,544

(338,176)

(27,904)

(49,824)

(10,281)

(1,358)

100.0%

-77.1%

-6.4%

-11.4%

-2.3%

-0.3%

2.5%

Cost of sales

Selling expenses

General and administrative expenses

Research and development expenditures

Exchange gains and losses

CURRENT OPERATING INCOME

Other operating income and expenses

OPERATING INCOME

17,598

(5,626)

11,972

(4,024)

9,065

3.5%

-1.1%

11,001

(7,130)

-1.6%

2.4%

-0.8%

1.8%

3,871

0.9%

-0.8%

-3.3%

-0.3%

-3.6%

-2.4%

-5.9%

Cost of net financial debt

Exchange gains and losses

Other financial income and expenses

PROFIT BEFORE TAXES

Income tax

(3,360)

(14,666)

(1,455)

(919)

-0.2%

3.2%

-1.6%

1.6%

16,094

(7,956)

8,138

(15,610)

(10,407)

(26,017)

(26,057)

NET PROFIT

attributable to equity holders of the parent

attributable to minority interests

7,934

204

NET EARNINGS PER SHARE

0.27

(0.88)

NET DILUTED EARNINGS PER SHARE

Notes 1 to 47 constitute an integral part of these consolidated financial statements

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

CONSOLIDATED STATEMENTS OF CASH FLOWS

In thousands of euros

Note

31/12/2021

8,138

19,821

1,333

31/12/2020

(26,017)

24,343

(831)

NET INCOME

Depreciation and amortization

Change in provisions (except for current assets)

Change in financial derivative instruments fair value

Unrealised foreign exchange gains and losses

Change in deferred taxes

(9,566)

2,668

12,490

5,489

(1,564)

3,360

17,272

34,384

(17,743)

Gains and losses from disposals of fixed assets

Interests on bank borrowings

4,014

26,449

1,279

7,868

GROSS CASH FLOWS FROM OPERATIONS

Change in operating working capital

Change in receivables from financing activities

Change in other non current assets

CASH FLOWS FROM OPERATING ACTIVITIES

Purchases of fixed assets

35,596

(35,724)

1,884

33,913

(31,200)

2,245

Proceeds from the sales of fixed assets, net of tax

Dividends received

Impact of changes in scope of consolidation

Change in payables on fixed assets

CASH FLOWS FROM INVESTING ACTIVITIES

Dividends paid to shareholders

(33,840)

(28,955)

(6,494)

5,048

(7,763)

(6,725)

Loans issues

23,906

(13,875)

(5,949)

(113)

Borrowings repayments

Lease liabilities repayments

Treasury shares

CASH FLOWS FROM FINANCING ACTIVITIES

3,969

(15,846)

NET CHANGE IN CASH AND CASH EQUIVALENTS

Opening cash and cash equivalents

5,725

(10,804)

(828)

(10,888)

2,112

Effect of exchange rate changes

(2,028)

(10,804)

(10,888)

Closing cash and cash equivalents

(5,907)

5,725

NET CHANGE IN CASH AND CASH EQUIVALENTS

Notes 1 to 47 constitute an integral part of these consolidated financial statements

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

STATEMENT OF CHANGES IN EQUITY

Actuarial

Profit for Treasury

Free

***

gains and

losses on

employee

benefits

premiums

Consolidated

reserves*

Group Minority

share Interests

Translation

differences

Capital

the

Total

In thousands of euros

period

Balance at 31 December

2019

4,078

81,627

(38,061)

Change in capital of the

parent company

Appropriation of 2019 net

income

(2,823)

(6,494)

(26,057)

Dividends paid by the parent

company

(6,494)

(26,057)

(6,494)

Net income for the period

Net income / (expense)

recognised directly in equity

Total consolidated

comprehensive income

Treasury shares

(15,076)

(15,111)

(26,057)

561

Other changes****

2,409

Balance at 31 December

2020

4,078

72,310

Change in capital of the

parent company

Appropriation of 2020 net

income

7,934

Dividends paid by the parent

company

Net income for the period

Net income / (expense)

recognised directly in equity

Total consolidated

comprehensive income

Treasury shares

7,934

204

8,138

(2,620)

7,934

847

6,161

203

6,364

(627)

(1,366)

(627)

(1,366)

(628)

Other changes****

(1)

Balance at 31 December

2021

4,078

72,310

210,492

(55,757)

*Consolidated reserves primarily consist of retained earnings.

**For the three periods, the amount of treasury shares has been disclosed at the book value, and the correction in consolidated reserves.

***Following the non-achievement of the objectives set, the free share allocation plan of March 13, 2018 was fully rversed during the financial year.

****Other changes include hyperinflation effects in Argentina and 2020 employee benefits update following IFRS IC decision (see note 23).

Notes 1 to 47 constitute an integral part of these consolidated financial statements

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

211,699

24,210

(21,387)

237,176

(26,057)

26,057

21,387

(26,057)

7,934

(14,376)

(14,424)

853

(14,336)

1,326

(40)

(1,326)

473

(53,137)

(2,441)

264,718

(38)

(15,114)

(38)

(41,171)

(2,479)

220,023

847

(1,773)

(1,632)

224,191

(372)

264,346

(26,017)

(41,128)

(329)

219,694

(1)

(1,774)

(127)

224,064

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTE 1 - GENERAL INFORMATION

Haulotte Group S.A. manufactures and distributes through its subsidiaries (forming the “Group”) people and

material lifting equipment.

Haulotte Group also operates in the rental market for these equipments.

Haulotte Group S.A. is a “société anonyme” (a French limited liability company) incorporated in Saint-Etienne

(France) with its registered office in Lorette. The company is listed on Euronext Paris – Eurolist Compartment B

(Mid Caps).

The annual consolidated financial statements for the period ended 31 December 2021 and the notes thereto

were approved by the Board of Directors of Haulotte Group SA on March 8th 2022. Figures are expressed as

thousands of euros.

NOTE 2 - MAJOR EVENTS OF THE FISCAL YEAR

2.1 A GLOBAL AERIAL WORK PLATFORM MARKET IN STRONG RECOVERY

During the fiscal year, the global aerial work patform market is recovering strongly in all geographical areas.

Chinese market remains the first market globally. The strong recovery of the North-American market is

confirmed after some slow-down semesters.

This commercial dynamic, in all regions, allows the Group to post an increase of its sales up +13% and a historic

level of its order book.

2.2 DIFFICULTIES IN PROCURING AND COMPONENTS PRICE INCREASE

The strong business recovery of activities has generated difficulties in procuring components and has increased

delivery times that lead to a significant increase of components' prices which impact on last quarter have been

significant.

These various elements also had the effect of extending machine delivery time during the fiscal year.

2.3 SYNDICATED LOAN CONTRACT

On December 22nd, 2021, in order to allow Haulotte to maintain the necessary flexibility to manage its business at

a time of strong recovery, Haulotte submitted to all the lenders of the Syndicated Loan a request for a waiver

concerning the non-compliance with its banking ratios for the periods of December 2021 and June 2022. It was

unanimously accepted on February 15, 2022. This waiver request, obtained after the annual closing date, led to

the presentation of the Syndicated Loan as short-term debt as of December 31st, 2021.

The cash flow forecasts for the next twelve months do not question the Group's ability to ensure its liquidity with

regard to the credit lines opened and available at December 31, 2021 and the cash flow forecasts for the first

months of 2022.

Haulotte had obtained on June 30th, 2021, an extension of one more year of the syndicated loan agreement, as

disclosed in the contract signed on July 17th, 2019, bringing its maturity to July 17, 2026.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The main accounting policies applied to prepare the consolidated financial statements are described below.

Except where specifically stated otherwise, these policies are consistently applied to all financial periods

presented herein.

3.1 STATEMENTS OF COMPLIANCE

As a publicly traded company listed in the European Union and in accordance with EC regulation 1606/2002 of 19

July 2002, the Group's consolidated financial statements for fiscal year ended 31 December 2020 have been

prepared according to IFRS (International Financial Reporting Standards) as adopted by the European Union on

31 December 2021.

These standards can be consulted at the website of the European commission (http://ec.europa.eu/

internal_market/ accounting/ias/index_en.htm). They include standards approved by the International

Accounting Standards Board (IASB), i.e. IFRS, International Accounting Standards (IAS) and interpretations of the

International Financial Reporting Interpretations Committee (IFRIC).

The consolidated financial statements have been prepared according to the historical cost convention, with the

exception of certain items, notably assets and liabilities measured at fair value.

Amendments and interpretations of standards in issue taking effect in 2021

The following standards have been adopted by the Group for the first time for the financial year beginning on or

after 1 January 2021:

Nature of expected change on

accounting principles and methods

Impact of first-time application for

Haulotte Group

Standard or interpretation

Amendments to IFRS 4

These amendments allow a provisional

exemption from the application of IFRS 9 applicable to the Group's financial

This new pronouncement is not

on insurance contracts

statements.

These amendments complete those

published in 2019 and focus on the effects

on the financial statements when a

company switches from the old

benchmark interest rate to another

benchmark rate as a result of the reform

of interbank benchmark rates.

The application of these amendments

does not have a significant impact on the

Group’s financial statements or the

comparative financial statements.

Amendments to IFRS 9, IAS 39,

IFRS 7, IFRS 4 and IFRS 16

The application of these amendments

does not have a significant impact on the

Group’s financial statements or the

comparative financial statements.

These amendments allow a rents'

reduction linked to Covid-19 beyond June

30, 2021

Amendments to IFRS 16

Amendments to IAS 19

Decision of IFRS IC which concluded that

the provision to be recognized for the

benefit should only be constituted over

the period covering the last 16 years of

service rendered by the employee.

Impacts are disclosed in the note 23.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

New standards, amendments or interpretations applicable in advance

The Group did not anticipate and does not expect to anticipate for the text adopted by the European Union at

the closing date but applicable for the following exercises.

New standards and interpretations not yet adopted by the European Union

The Group does not anticipate or plan at this stage early adoption of other new standards or interpretations

published by IASB or IFRIC but not yet adopted by the European Union at the closing date.

3.2 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

3.2.1 Critical accounting estimates and assumptions

In preparing financial statements, the Group will resort to estimates and assumptions about future events. Such

estimates are based on past experience and other factors considered reasonable in view of current

circumstances. Actual results may differ from these estimates.

The main sources of uncertainty concerning key assumptions and assessments are:

- estimated impairment of goodwill (cf. note 4.1),

- evaluation of customer counterparty risk: evaluation of the recoverable value of trade receivables (see note

4.7) is based on credit rating procedures (see note 5 b) and, when applicable, analysis based on the Group's

ability to recover the equipment in the case of customer default and proceed with their sale for a specified

value. This resale value is estimated on the basis of data for the sale of used machines previously carried out

by the Group over a period of several years. The consistency of these values with quoted prices for second

hand assets generally accepted on the market is also verified. Today, there are no factors which might call

into question the valuation of this recoverable value and notably the validity of quoted prices of second-

hand equipment. Nevertheless, deterioration in the future of the market values of second-hand equipment

could result in the recognition of additional impairment charges for trade receivables,

net realizable value of inventory (cf. note 4.6): the net realizable value of work in progress and finished

goods at 31 December 2020 determined on the basis of actual recorded transactions depending on each

equipment’s production year, remains significantly higher than the cost price,

- the assessment of the preferential nature of guarantees for residual amounts: the accounting treatment

associated with transactions accompanied by such guarantees (cf. note 4.7.2) is based on the assumption

that has been almost systematically verified to date of the attractiveness of the option to repurchase

equipment offered to customers when compared to the current sales prices in the second-hand

equipment market. If this assumption ceases to be confirmed, the accounting treatment of such future

transactions should be adapted in consequence.

Use of estimates and assumptions also had an impact on the following items:

- revenue recognition, notably in the context of tripartite agreements described in notes 4.7.2 to 4.7.4

amortization and depreciation periods for fixed assets (cf. note 4.3),

- the evaluation of provisions, notably for manufacturer warranties (cf. note 4.11) and for pension liabilities

(cf. note 4.10),

- the recognition of deferred tax assets (cf. note 4.13).

The financial statements reflect the best estimates according to information available at time of finalizing

production of accounts.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

3.2.2 Evaluation of risks and significant uncertainties having a potential

material impact on Haulotte Group

The main material risks and uncertainties that could have a material impact on the Group identified at 31

December 2021 relate on one hand to the market risk, to the monetary environment of the Group and, on the

other hand, on items relating to its liquidity. Regarding the market (following variations are at constant

exchange rates & excluding IAS 29 application), fiscal year 2021 was marked by an increase of turnover of +13%.

Over the year, sales of equipment increased by +11%, rental sales by +40% and services by +22%.

The Group maintains its policy of a centralised management of foreign exchange as described in note 5.a) and

pays specific attention to the evolution of foreign currencies on its main markets, as these could significantly

affect its financial performance.

During the year, the Group continues to diversify its financing (see note 20).

The liquidity risk is described in detail in note 5.c). The cash flow forecasts for the next twelve months do not

question the Group's ability to ensure its liquidity with regard to the credit lines opened and available at

December 31, 2021 and the cash flow forecasts for the first months of 2022. As mentioned in note 20, at 31

December 2021, the syndicated is used for an amount of 101 M€.

3.2.3 Consideration of risks related to climate change

The Group has taken into account the financial impacts and risks associated with climate change. The Group has

analyzed this risk on all of its financial information and has paid particular attention to the following aspects:

- Goodwill impairment tests;

- Recoverable value of intangible and tangible fixed assets;

- Realizable value of inventories;

- Valuation and completeness of provisions.

As of December 31, 2021, we have not identified any significant climate risk that could have an impact on the

financial statements.

3.3 CONSOLIDATION

Subsidiaries over which Haulotte Group S.A. directly or indirectly exercises exclusive control are fully consolidated.

They are deconsolidated from the date that control ceases.

Equity method is used for all associated companies in which the Group exerts significant influence. According to

this method, Haulotte Group records in a specific caption of the consolidated income statement its share in the

net income of the company consolidated using equity method. As of 31 December 2021, Haulotte Group does not

have any company consolidated using the equity method.

The list of subsidiaries included in the consolidation scope is shown in note 7.

3.4 INTERCOMPANY BALANCES AND TRANSACTIONS

All intercompany balances and transactions between fully consolidated companies are eliminated .

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

3.5 FOREIGN CURRENCY TRANSLATION OF FOREIGN SUBSIDIARIES

FINANCIAL STATEMENT

The consolidated financial statements are presented in euro (€), which is the parent company’s, Haulotte Group

S.A., functional and the Group’s presentation currency.

Financial statements of foreign subsidiaries are measured using the functional currency, their local currency.

The results and financial position of foreign entities that have a functional currency different from the

presentation currency (euro) are translated into the presentation currency as follows:

- Assets and liabilities are translated at the closing rate at the date of balance sheet;

- Income statement items are translated at the average exchange rate for the period (average for 12 monthly

rates) except if exchange rates experience significant fluctuations. In the latter case, applying an average

exchange rate for a period would not be appropriate. Thus, to apply IAS 29, the income statement of the

entities Haulotte Argentina S.A. and Horizon High Reach Limited were converted using the closing rate.

Exchange differences resulting from the translation of the subsidiaries’ financial statements are recognized as a

separate component of equity and broken down between the parent company share and minority interests.

In the case of the disposal of an entity, translation differences that were recognized under components of

comprehensive income items are reclassified from equity to income of the period (as a reclassification

adjustment) when a gain or loss resulting from the disposal is recognized. These amounts are then included in

the disposal result in the ‘other income and expenses’ line.

Goodwill is accounted for in the currency of the subsidiary concerned. It must consequently be stated in the

functional currency of the subsidiary and translated at year-end.

3.6 TRANSLATION OF TRANSACTIONS IN FOREIGN CURRENCY

Foreign currency transactions are translated by the subsidiary into its functional currency using the exchange

rates prevailing at the date of the transaction. At year-end, monetary items of the balance sheet denominated in

foreign currencies are translated at closing exchange rates.

Gains and losses on translation are recorded directly in the income statement under operating income as

“exchange gains and losses” except net foreign investments as defined under IAS 21 for which exchange

differences are recognized as other comprehensive income items. In the event of the prepayment of a current

account balance considered equivalent to a net investment in a foreign operation, the reduction of the

associated investment is assessed on the basis of relative value and implies a decrease of interest rates.

According to this methodology, no recycling in the result of exchange differences is done in case of

reimbursement of the loan. This one does not constitute a partial exit since it does not reduce the interest rate in

the foreign subsidiary.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

3.7 BUSINESS COMBINATIONS

Business combinations occurring after 1 January 2010 are accounted for using the acquisition method, in

accordance with IFRS 3 (Revised) – Business Combinations:

- The acquired identifiable assets and assumed liabilities and contingent liabilities are measured at

acquisition-date fair value, provided that they meet the accounting criteria in IFRS 3 (Revised). An acquired

non-current asset (or disposal group) that is classified as held for sale at the acquisition date is measured at

fair value less costs to sell. Only the liabilities recognized in the acquirees’s balance sheet at the acquisition

date are taken into account. Restructuring provisions are therefore not accounted for as a liability of the

acquiree unless it has an obligation to undertake such restructuring at the acquisition date. Acquisition-

related costs are recognized as expenses in the period in which the costs are incurred.

- The excess of the cost of acquisition over the fair value of the Group’s share of the identifiable net assets

acquired is recorded as goodwill. If the Group’s share in the fair value of the acquired identifiable net assets

exceeds the cost of acquisition, that difference is recognized directly in the income statement (see note 4.1).

- For each acquisition, the Group has the option of using the full goodwill method, where goodwill is

calculated by taking into account the acquisition-date fair value of minority interests, rather than their

share of the fair value of the assets and liabilities of the acquiree.

- Contingent consideration is measured at its acquisition-date fair value and is subsequently adjusted

through goodwill only when additional information is obtained after the acquisition date about facts and

circumstances that existed at that date. Such adjustments are made only during the 12-month

measurement period that follows the acquisition date. All other subsequent adjustments are recorded as a

receivable or payable through profit or loss (line “Other operating income and expenses”).

- In a business combination achieved in stages, the previously held equity interest in the acquiree is

remeasured at its acquisition-date fair value and the resulting gain or loss, if material, is recognized as

“Other operating income and expenses”.

3.8 SEGMENT REPORTING

The Group has determined that the primary operating decision-making body of the entity is the Executive

Committee. The Committee reviews internal reporting of the Group, evaluating its performance and making

decisions for the allocation of resources. The operating segments have been adopted by management on the

basis of this reporting.

The Executive Committee analyses activity both according to geographic markets and the Group's businesses.

These businesses are:

- the manufacture and sale of lifting equipment,

- the rental of lifting equipment,

- services (spare parts, repairs and financing).

The column « Others » includes items not allocated to the Group’s three business segments as well as inter-

segment items.

Internal reporting used by the Executive Committee is based on a presentation of the accounts according to

IFRS principles, including all Group activities.

The main indicators for performance reviewed by the Executive Committee are revenue and current operating

income. In addition, the Executive Committee monitors the main balance sheet captions: trade receivables and

inventories.

The Group has not identified any customer accounting for more than 10% of revenue.

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SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTE 4 - PRINCIPLES AND METHODS FOR THE VALUATION OF

KEY BALANCE SHEET AGGREGATES

4.1 GOODWILL

Goodwill related to consolidated companies is booked to balance sheet assets under “Goodwill”. They result from

the application of the principles of business combinations described in note 3.7 above.

Negative Goodwill (or badwill) is recognized immediately under other operating income and expenses during

the year of acquisition and no later than 12 months after the acquisition, after the correct identification and

valuation of acquired assets and liabilities has been verified.

Goodwill is not depreciated but is instead subject to impairment testing whenever there exists an indicator of

impairment and at least once a year. For the purpose of impairment testing, goodwill is allocated to Cash

Generating Units (CGU) or groups of CGU that may benefit from business combinations.

The Group has defined different CGUs:

The North America CGU including the subsidiaries Haulotte US and BilJax,

- Group rental company subsidiaries each representing an independent CGU, NDU (out of consolidation

perimeter since November 2021) and Horizon Argentina

- Manufacturing and distribution subsidiaries (Excluding North America and Turkey) of the Group included

within a single CGU.

CGU for Acarlar Makine, related to the distribution in Turkey .

An impairment loss is recognized when the carrying value is higher than the recoverable value, defined as the

higher of value in use and fair value. Value in use is determined in reference to five-year business plans for which

future flows are extrapolated and discounted to present value, or for some rental subsidiaires, using the market

value of the rental assets.

Goodwill impairment charges are irreversible.

Income and expense arising respectively from the recognition of negative goodwill (badwill) and the

impairment of positive goodwill are recognized under the “other operating income and expenses”.

4.2 INTANGIBLE ASSETS

Developpement expenditures

Research expenditure is expensed as incurred. Development expenditure in connection with projects (for the

design of new products or improvement of existing products) is recognized as intangible asset when the

following criteria are met:

- the technical feasibility of completing the project,

- the intention of management to complete the project,

- the ability to use or sell the intangible asset,

the intangible asset will generate probable future economic benefits for the group,

the availability of adequate technical, financial and other resources to complete the project,

- the ability to measure reliably the costs.

Other development expenditures that do not meet these criteria are expensed in the period incurred.

Development expenditure previously expensed is not recorded as an asset in subsequent periods.

Development expenditure is amortized from the date the asset is commissioned using the straight-line method

over the estimated useful life of 2 to 5 years.

In compliance with IAS 36, development expenditure recognized under assets not yet fully amortized is tested

for impairment annually or as soon as any impairment indicator is identified (when the inflow of economic

benefits is less than initially anticipated). The carrying value of capitalised development expenditure is compared

with expected cash flows projected over 2 to 5 years to determine the impairment loss to be recorded.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Customer Portfolio

The customer portfolio had been determined at the purchase price allocation of Acarlar.

The price paid for this acquisition includes customer relationship of the company. Only the relationship existing

at the date of acquisition were evaluated.

The fair value of the customer portfolio had been determined using the excess earnings method. Usefull life of

the portfolio was set at 10 years.

Other intangible assets

Other intangible assets (software, patents, etc.) are recognized at purchase cost excluding incidental expenses

and financial charges.

Software is amortized using a straight-line method over 3 to 7 years.

4.3 PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment is recognized on the balance sheet at purchase cost (less discounts and all costs

necessary to bring the asset to working condition for its intended use) or production cost. Finance costs are not

included in the cost of fixed assets.

The basis for depreciation of fixed assets is their gross value (cost less residual value). Depreciation starts from the

date the asset is ready to be commissioned. Depreciation is recorded over the useful life that reflects the

consumption of future economic benefits associated with the asset that will flow to the Group.

When the asset’s carrying value is greater than the estimated recoverable amount, an impairment is

immediately recorded for the difference.

Component parts are recognized as separate assets and subject to different depreciation rates if the related

assets have different useful lives. The renewal or replacement costs of components are recognized as distinct

assets and the replaced asset is written off.

Land is not depreciated. Other depreciation on assets is calculated using the straight-line method over their

estimated useful lives as follows:

Depreciation period

Plant buildings :

Main component

Other components

30 to 40 years

10 to 30 years

Buildings fixtures and improvements:

Main component

10 to 40 years

5 to 20 years

3 to 20 years

5 years

Other components

Plant equipment

Other installations and equipment

Transportation equipment

Computer and office equipment

Office furniture

3 to 10 years

The assets’ residual value and useful lives are reviewed and adjusted, if appropriate, at each balance-sheet date.

Gains and losses arising from the disposal of fixed assets are recognized under other operating income and

expenses.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

4.4 LEASE CONTRACTS

Lease contracts, as defined by IFRS 16 “Leases”, are recorded in the balance sheet, which leads to the recognition of:

- An asset representing a right of use of the asset leased during the lease term of the contracts;

- A liability related to the payment obligation.

At the commencement date, the right of use asset is measured at cost which includes the debt initial amount

and can comprise, when applicable, any lease payments made at or before the commencement date, any initial

direct costs incurred for the conclusion of the contracts and estimated costs for restoration and dismantling of

the leased asset according to the terms of the contract.

The right of use asset is depreciated over the useful life of the underlying assets (the duration chosen is the first

expiry date; unless specific information leads to choose a longer period).

At the commencement date, the lease liability is recognized for an amount equal to the present value of the

lease payments over the lease term.

The right of use asset and the lease liability may be remeasured in the following situations:

- Change in the lease term;

- Modification related to the assessment of the reasonably certain nature (or not) of the exercise of an option;

- Adjustment to the rates and indices when according to which the rents are calculated when rent

adjustments occur.

The key assumptions that the Group uses for the implementation of the standard are:

- Durations : The Group has decided to retain the contractual terms of the contracts. The duration chosen is

the first expiry date; unless specific information leads to choose a longer period taking into account the

options for leaving and renewing the contract.

- Discount rate : The Group wished to use the simplification measures recommended by the standard and

thus use the marginal borrowing rate of the contract taking into account the asset class, the duration of

the contract and the economic environment.

4.5 OTHER FINANCIAL ASSETS

In the IFRS 9 standard, financial assets are classified in three different categories according to their nature and

the intended investment period:

- Held-to-maturity investments

- Financial assets measured at fair value through profit and loss

- Financial assets measured at fair value through other comprehensive income.

The “other financial assets” of the Group are essentially loans. They are recognized at the fair value of the price

paid less transaction costs at initial recognition and subsequently at amortized cost at each balance sheet date.

All impairment losses on these assets (excluding account receivables, see Note 4.7) are immediately recognized

in the income statement through “other financial income and expenses”. The fair value of these financial assets

corresponds to its accounting value.

This caption also includes deposits and sureties.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

4.6 INVENTORIES AND WORK IN PROGRESS

Inventories are stated at the lower of cost or net realizable value:

- Materials and supplies cost is determined using the average cost method based on the weighted average

cost per unit,

- The cost of finished goods and work in progress includes direct production costs and factory overhead

(based on normal operating capacity);

- Traded goods inventories are recorded at purchase price (spare parts) or at their trade-in value (second-

hand machines).

The net realizable value is the estimated selling price in the ordinary course of business less applicable expenses

to sell or recondition the goods.

Impairment is recognized when the net realizable value is less than the carrying value of inventories defined

above.

4.7 TRADE RECEIVABLES

There are four categories of trade receivables:

- Receivables resulting from transactions with customers obtaining financing directly (4.7.1) with no

guarantee given by the Group to the financial institution providing the financing;

- Receivables resulting from transactions for which Haulotte Group grants guarantees to the financial

institution providing financing to the customer (4.7.2);

- Receivables resulting from finance leases with financing or credit sales provided by Haulotte Group (4.7.3);

- Receivables resulting from back-to-back arrangements (4.7.4).

The accounting treatment for each transaction category is described below.

4.7.1 Sales without Group financing or guarantees

These receivables are recognized at fair value of the compensation received or to be received. They are

subsequently recognized at amortized cost according to the effective interest rate method, less provisions for

impairment.

When there exists serious and objective evidence of collection risks, a provision for impairment loss is recorded.

The provision represents the difference between the asset’s carrying amount and the estimated resale value of

the equipment representing the receivable on the date the risk of non-collection is determined. This policy is

based on the following factors:

- assets representing receivables may be repossessed by Haulotte Group in the event of customer default,

when provided for by contractual terms and conditions

- a precise knowledge of the equipment’s market value.

These market values are estimated on the basis of second-hand equipment sales realized by the Group over

several years and corroborated by listed values for second-hand equipment.

4.7.2 Sales including guarantees granted by the Group

In line with industry practice, Haulotte Group grants guarantees to financial institutions offering financing to

Group customers. Under such arrangements, Haulotte Group sells equipment to the financial institution that in

turn contracts with the end user customer through one of two options:

- the credit sale of the equipment, or

- the conclusion of a finance lease.

Haulotte Group may grant several types of guarantees depending on the framework of agreements concluded

with financial institutions and the level of risk assigned to the customer by this institution. Those guarantees are:

Guarantee in the form of a commitment to continue lease payments: Haulotte Group guarantees the

financial institution payment if the debtor defaults and pays said institution in the event of default, the entire

outstanding capital balance owed by the defaulting client. Haulotte Group has a right to repossess the

equipment in exchange for its substitution in the place of the defaulting customer.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Guarantee in the form of a contribution to a risk pool: In this case, a portion of the amount of the sale to the

financial institution is contributed to a guarantee fund that will cover potential risk of future customer default

until a maximum amount defined contractually. In the event of default of a customer qualifying for the pool, the

financial institution is assured of the recovery of its debt as defined in the contract (difference between the

amounts owed by the customer at the time of default and a contractually defined value expressed as a

percentage of the initial sale price of the financed good and decreasing in the time).

Specific guarantee covering a determined amount for a given receivable: In this case, the recourse of the

financial institution is defined receivable by receivable. The financial institution confirms at each accounting

closing the amount of its specific recourse for each receivable having been the object of this specific guarantee.

The accounting treatment of the first three types of guarantees associated with the different lease agreements

concluded between the financial institution and the end-user customer are determined based on the analysis of

the substance of the transaction as follows:

- as a loan granted to the end customer by Haulotte Group, the contract being transferred to the financial

institution in order for the sale to be financed (case of a credit sale);

- as a finance lease between Haulotte Group and the end-customer, the contract being transferred to the

financial institution in order for the sale to be financed (case of a finance lease).

The analysis of the above contracts in accordance with the provisions of IFRS 9 indicates that Haulotte Group is in

a situation known as "involvement retention"; the share of receivables maintained on the balance sheet in this

regard corresponds to the maximum amount that may be repaid by Haulotte under the guarantee given.

Accordingly, for such contracts, the following accounting treatment is applied: recognition of a receivable (under

“receivables from financing activities” in the balance sheet) for the amount of the guarantee given to to the

financial institution as a counterpart of a financial liability (under “Guarantees”). These receivables and payables

are discharged as the customer makes the lease payments to the financial institution.

However, in the case of a guarantee with a contribution to a risk pool covering a fixed amount per receivable, the

amount recognized under receivables and payables is capped to the financial institution amount of recourse

towards Haulotte Group and not expanded to the full amount of the “assigned” receivable.

Haulotte Group measures at each closing the risk of the guarantees granted being activated by reviewing

payment default that would have been reported by financial institutions. In this case a provision for impairment

loss is recorded, determined as described in note 4.7.1.

Other guarantees given by Haulotte Group are disclosed in off-balance sheet commitments in note 44.

4.7.3 Financial leases and credit sales

Haulotte Group concludes credit sales or leasing contracts directly with its customers with no intermediary

financial institutions.

Credit sales are analyzed according to the standard IFRS 15 (see note 6.1).

Analysis of these financial leases contracts according to provisions of IFRS 16, these agreements are classified as

finance leases, as a significant portion of the risks and rewards of ownership are transferred to the lessees.

The accounting treatment for these agreements is as follows:

- equipment sales are recognized under “sales and revenue” in the income statement on the date the parties

sign the lease agreement,

- a trade receivable (under “receivables from financing activities” in the balance sheet) is recognized vis-a-vis

the end customer broken down between current assets for the portion of lease payments due within one

year and non-current assets for the balance,

- for the following periods, payment received from the customer as per the lease agreement or the credit

sale is allocated between financial income and repayment of the receivable and finance charge.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

4.7.4 Back-to-back lease arrangements

Haulotte Group can sometimes use that type of financing.

The Back to back leasing consists for the manufacturer in selling the equipment to a financial institution that

will lease the equipment to him, along with a sub-lease contract signed between the manufacturer and his

customer. Based on the analysis of these transactions, both upstream and downstream structures, they have

been considered as Finance leases. The analysis in substance of upstream and downstream operations leads to

recognize:

- the sale of the good to a customer, recorded in return for a receivable on financing operations.

- a financial debt with the financial institution.

4.8 CASH AND CASH EQUIVALENTS

“Cash and cash equivalents” includes cash at hand and other short-term investments. The latter consists

primarily of money market funds and term deposits.

Cash equivalents consist of short-term high liquidity investments that are readily convertible to known amounts

of cash and present insignificant risk of change in value.

Accrued interest has been calculated for term deposits for the period between the subscription and closing

date.

4.9 TREASURY SHARES

Shares of Haulotte Group S.A. acquired in connection with the Group share buyback programs (liquidity contract

allocated to ensure an orderly market in the company’s shares and buyback program) are recorded as a

deduction from consolidated shareholders’ equity at acquisition cost. No gain or loss is recognized in the income

statement from purchases, sales or impairment of treasury shares.

4.10 EMPLOYEES BENEFITS

The Group records provisions for employee benefits and other post-employment obligations as well as long

service awards. The Haulotte Group has only defined benefit plans. The corresponding obligation is measured

using the projected unit credit method with end-of-career wages. The calculation of this obligation takes into

account the provisions of the laws and collective bargaining agreements and actuarial assumptions concerning

notably staff turnover, mortality tables, salary increases and inflation.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are

recognized among equity items in other comprehensive income for the period in which these gains or losses are

incurred. Previously, these actuarial gains and losses were recognized in the income statement of the period in

which they were generated.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

4.11 PROVISIONS AND CONTINGENT LIABILITY

In general, a provision is recorded when:

- the Group has a present legal or constructive obligation as a result of a past event,

- it is probable that an outflow of resources embodying economic benefits will be required to settle the

obligation and,

- the obligation has been reliably estimated.

Warranty Provision

The Group grants clients a manufacturer’s warranty. The estimated cost of warranties on products already sold is

covered by a provision statistically calculated on the basis of historical data (number of materials under warranty,

average intervention rate related to this parc and average intervention cost). The warranty period is usually one

to two years. When necessary, a provision is recognized on a case-by-case basis to cover specific warranty risks

identified.

Litigation

Other provisions are also recorded in accordance with the above principles to cover risks related to litigations,

site closures (when applicable) or any other event meeting the definition of a liability. The amount recognized as

a provision represents the best estimate of the expenditure required to settle the obligation.

All material lawsuits involving the company were reviewed at year-end, and based on the advice of legal counsel,

the appropriate provisions were recorded, when necessary, to cover the estimated risks.

Contingent liability

The Group can, in some cases, identify the existence of a contingent liability defined as follows:

- a potential obligation resulting from past events and that will be confirmed by the occurrence of (or not) of

one or several future and uncertain events that are not under the total control of the entity or

- a current obligation resulting from past events but not accounted for because:

- it is not probable that a resources output representing an economic benefit will be necessary to settle

the obligation or,

- the amount of the obligation cannot be evaluated with sufficient accuracy.

4.12 BORROWINGS

Borrowings are initially recognized at fair value of the amount received less transaction costs. Borrowings are

subsequently stated at amortized cost calculated according to the effective interest rate method.

4.13 DEFERRED TAXES

Deferred income tax is recognized on temporary differences arising between the tax bases of assets and

liabilities and their carrying amounts in the consolidated financial statements as well as on tax losses carried

forward. They are calculated using the liability method, for each of the Group’s entity, using tax rates that have

been enacted or substantially enacted by the balance sheet date and are expected to apply when the related

deferred income tax asset is realized or the deferred income tax liability is settled.

Deferred tax assets from temporary differences or tax loss carryforwards are recognized only to the extent it is

probable that future taxable profit will be available against which the temporary differences can be utilized.

Deferred tax assets and liabilities are offset if the entities of the same tax group are entitled to do so under

enforceable provisions.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTE 5 - MANAGEMENT OF FINANCIAL RISK

Foreign exchange risk and Interest rate risk

A significant portion of Haulotte Group sales are in currencies other than the euro including notably the US

dollar, Australian Dollar, Renminbi and British pound sterling. Because sales of Group subsidiaries are primarily in

their functional currency, transactions do not generate foreign exchange risks at their level.

The primary source of foreign exchange risks for Haulotte Group consequently results from intercompany

invoicing flows when Group companies purchase products or services in a currency different from their

functional currency (exports of manufacturing subsidiaries located in the euro area and exporting in the local

currency of a sale subsidiary).

The Group favours floating-rate debt which provides it greater flexibility. To hedge against interest rate risks, the

Group seeks to take advantage of market opportunities according to interest rate trends. There is no recourse to

systematic interest rate hedging.

Such exposures are managed by Haulotte Group SA. For the main currencies, foreign exchange trading

positions in the balance sheet are partially hedged using basic financial instruments (forward exchange sales

and purchases against the euro).

To cover market risks (interest rate and foreign exchange exposures), Haulotte Group has recourse to financial

instrument derivatives. These derivatives are designed to cover the fair value of assets or liabilities (fair value

hedges) or future cash flows (cash flow hedges).

In compliance with the provisions of IAS 32 and IFRS 9, derivatives are recorded at fair value. The fair value of

those contracts is determined based on valuation models given by the banks with which the instruments were

traded, and can be considered as level 2 valuations as defined in IFRS 7 (level 2: quoted prices in active markets

for similar assets or liabilities or other valuation techniques for which all significant inputs are based on

observable market data).

There is also a translational risk due to the geographic diversification of the Group's activities. Haulotte Group is

exposed to the risk of conversion of the financial statements of its subsidiaries outside the Euro zone. Thus, an

unfavorable change in exchange rates could deteriorate the balance sheet, the income statement and

consequently the Group's financial structure ratios, when the accounts of foreign subsidiaries outside the Euro

zone are converted into euros in the Group's consolidated accounts.

Credit risk

Credit risk results primarily from exposure to customer credit and notably outstanding trade receivables and

transactions.

To limit this risk, the Group has implemented rating procedures (internal or independent) to evaluate credit risk

for new and existing customers on the basis of their financial situation, payment history and any other relevant

information.

Risk is also limited by Haulotte Group’s ability in the event of default by one of its customers to repossess the

equipment representing the receivable. The provisions for impairment loss on trade receivables are determined

based on this principle (cf note 4.7).

Liquidity risk

Haulotte Group cash management is centralized. The corporate team manages current and forecasted

financing needs for the parent company and subsidiaries.

All cash surpluses are invested in risk-free products at market conditions by the parent company comprised of

money market funds and time deposit accounts.

All the decisions taken during this crisis and the resilience of the business model should allow Haulotte not to

face any liquidity problem in the coming months.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Status of the syndicated credit facility:

On December 22nd, 2021, in order to allow Haulotte to maintain the necessary flexibility to manage its business

at a time of strong recovery, a waiver request with respect to bank ratios for twoperiods (December 2021 and

June 2022) was submitted and unanimously accepted by all the lenders without any condition, on

February 15th, 2022.

On June 30th, 2020, the Group has obtained a one-year extension provided in the loan contract, according to the

contracts clauses signed on July 17th, 2019, extanding its maturity to July 17th, 2026.

Other financings:

Haulotte Group subscribed in 2021 new financing lines (outside the banking syndicate loan) for 20 M€ with

reimbursements from 7 to 10 years.

The Group had subscribed in 2019 a loan from banks outside the syndicated loan pool of a total amount of 5M€

with repayments over 5 years. Two another bilateral lines have been subscrived for a total amount of 10 M€, with

a maturity of 10 years, also obtained from an institution outside the pool of the credit loan. Haulotte Group also

obtained in 2018, from banks outside the banking syndicate loan, loans for an amount of 8 M€ (reimbursement

on 5 years) and 5 M€ (reimbursement on 7 years).

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTE 6 - PRINCIPLES AND METHODS OF MEASUREMENT FOR

THE INCOME STATEMENT

6.1 REVENUE RECOGNITION

« Sales and Revenue » includes the goods and services sales comprising notably:

- sales self-financed by the customer,

- sales funded through back-to-back arrangements and the corresponding financial income (cf note 4.7),

- sales including financial guarantees given by Haulotte Group S.A. to allow the customer to obtain financing

(cf. note 4.7),

- sales within remarketing agreements with financial institution after they had taken back equipment from

defaulting clients,

- equipment rental,

- services offers.

Revenue from the sale of goods reflect the transfer to the customer of the control of a good or service, in an

amount that reflects the consideration to which the seller expects to be entitled when the contractual

obligations are fulfilled. Sales of goods are recorded without VAT.

Sales financing income is the result of sales financing transactions carried out with some of our customers. These

financings are constituted of loans and, consequently, are recorded on the balance sheet at amortized cost

using the effective interest rate method, less any impairment recorded. Income on these contracts is calculated

to generate a constant interest rate over the period. They are included in the turnover.

Accounting treatments applied in function of the type of contracts and according to IFRS 15 standard are the

followings:

Contract type

Accounting treatment IFRS15

Recognition of revenue upon delivery of the good

according to IFRS 15.

Sale of machines

Recognition of revenue upon delivery of the good

according to IFRS 16.

Financed sales of machines

Machine rental

Recognition of revenue upon the rental of the good

according to IFRS 16.

Service agreement involving the provision of a service - Recognition of revenue upon performance of the service

basic sale / service

according to IFRS 15.

Recognition of revenue on a straight-line basis over the

term of the contract according to IFRS 15.

Services – Long-term contracts

6.2 COST OF SALES

The cost of sales includes direct production costs, factory overhead, changes in inventory, provisions for inventory

losses, warranty costs, fair value adjustments of currency hedges and interest expense paid in connection with

back-to-back arrangements.

6.3 SELLING EXPENSES

This item includes notably costs related to sales and commercial activity.

6.4 GENERAL AND ADMINISTRATIVE EXPENSES

This item includes indirect leasing costs, administrative and management expenses, changes in the provision on

trade receivables and the write-off of bad debts.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

6.5 RESEARCH AND DEVELOPMENT EXPENDITURES

Research expenditures are expensed in the period they are incurred.

Development expenditures are expensed in the period except when they meet the criteria defined under IAS 38

(cf. 4.2.a) for recognition as intangible assets. This concerns expenditures incurred in connection with

development projects for new categories of machines or components considered technically viable with a

probability of generating future economic benefits.

6.6 OTHER OPERATING INCOME AND EXPENSES

This heading includes:

- gains or losses from disposals (excluding those by rental companies treated as sales of second-hand

equipment and recognized consequently under revenue),

amortization of capitalized development expenditures,

- income or expenses related to litigations of an unusual, abnormal or infrequent nature,

- impairment losses on goodwill.

6.7 OPERATING INCOME

Operating income covers all income and expenses directly relating to Group activities, whether representing

recurring items of the normal operating cycle or events or decisions of an occasional or unusual nature.

6.8 COST OF NET FINANCIAL DEBT

Cost of net financial debt includes total finance costs consisting primarily of interest expense (according to the

effective interest rate) as well as the fair value adjustments of interest rate hedges.

6.9 OTHER FINANCIAL INCOME AND EXPENSES

This item includes income from cash and cash equivalents (interest income, gains and losses from the disposal of

short-term securities, etc.) and the exchange gains and losses on the financial current accounts. This caption

also includes the depreciation of financial assets (allocation / reversal) and the updating .

6.10 EARNINGS PER SHARE

Earnings per share presented at the bottom of the income statement is determined by dividing the net income

of Haulotte Group S.A. for the period by the weighted average number of ordinary shares outstanding during the

period excluding treasury shares.

Diluted earnings per share are calculated on the basis of the average number of shares outstanding during the

year adjusted for the dilutive effects of equity instruments issued by the company such as stock options

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTE 7 - SCOPE OF CONSOLIDATION

Companies consolidated at 31 December 2021 are:

Consolidation method as at

Entity

Country

Interest %

31 DECEMBER 2021 31 DECEMBER 2020

L'Horme

(France)

Mother

company

Haulotte Group S.A.

Acarlar Dis Ticaret Ve Makina Sanayi A. s.

Bil Jax Service, Inc.

Bil Jax, Inc.

Istanbul

(Turquie)

100%

99.98%

100%

99.99%

100%

98.71%

Full consolidation

Archbold

(Etats-Unis)

Archbold

(Etats-Unis)

Archbold

(Etats-Unis)

Equipro, Inc.

Haulotte Access Equipment

Manufacturing (Changzhou) Co., Ltd.

Changzhou

(Chine)

Buenos Aires

(Argentine)

Haulotte Argentina S.A.

Haulotte Arges S.R.L.

Haulotte Australia Pty. Ltd.

Haulotte Canada

Arges

(Roumanie)

Dandenong

(Australie)

Vancouver

(Canada)

Santiago

(Chili)

Haulotte Chile SPA

Sao Paulo

(Brésil)

Haulotte Do Brazil LTDA

Haulotte DSC

Pitesti

(Roumanie)

St Priest

(France)

Haulotte France Sarl

Haulotte Hubarbeitsbühnen GmbH

Haulotte Iberica S.L.

Eschbach

(Allemagne)

Madrid

(Espagne)

Mumbai

(Inde)

Haulotte India Private Ltd.

Haulotte Italia S.R.L.

Haulotte Japan

100%

99%

Full consolidation

Milan (Italie)

Osaka

(Japon)

100%

Mexico

(Mexique)

Haulotte Mexico SA de CV

Haulotte Middle East FZE

99.99%

100%

Full consolidation

Dubaï

(Emirats

Arabes Unis)

Oosterhout

(Pays-Bas)

Haulotte Netherlands B.V.

100%

Full consolidation

Archbold

(Etats-Unis)

Haulotte North America Manufacturing

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Consolidation method as at

Entity

Country

Interest %

31 DECEMBER 2021 31 DECEMBER 2020

Janki

(Pologne)

Haulotte Polska SP Z.O.O.

Haulotte Scandinavia AB

Haulotte Services France

Haulotte Services SA de CV

Haulotte Singapore Ltd.

100%

Full consolidation

Mölndal

(Suède)

St Priest

(France)

99.99%

100%

Mexico

(Mexique)

Singapour

(Singapour)

Shanghai

(Chine)

Haulotte Trading (Shanghai) co. Ltd.

100%

Virginia

Beach (Etats-

Unis)

Haulotte U.S., INC.

Haulotte UK Limited

100%

Full consolidation

Wolverhampt

(Angleterre)

Moscou

(Russie)

Haulotte Vostok

100%

Full consolidation

Liquidated

Full consolidation

Santiago

(Chili)

Horizon High Reach Chle SPA

Horizon High Reach Limited

Levanor Maquinaria de Elevacion S.A.

Buenos Aires

(Argentine)

100%

Madrid

(Espagne)

91.00%

81.90%

0.00%

100%

Mundilevaçao, Aluger e Transporte de

Plataformas LDA

Paio Pires

(Portugal)

N.D.U Maquinaria y Plataformas

Elevadoras, S.L.

Madrid

(Espagne)

Archbold

(Etats-Unis)

Scaffold Design & Erection

Seaway Scaffold & Equipment

Telescopelle S.A.S

Full consolidation

Archbold

(Etats-Unis)

100%

L'Horme

(France)

100%

The closing date for financial statements of consolidated companies for each period presented is 31 December except for Haulotte

India Private Ltd. which closes books on 31 March of each year.

N.D.U Maquinaria y Plataformas Elevadoras, S.L. owned at 99% and without activity was wound up in November 2021, having no

impact on the Group's consolidated financial statements.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTE 8 - GOODWILL

Translation

adjustment

31/12/2020

Increase

Decrease

31/12/2021

North America CGU

16,241

14,243

154

1,355

17,596

8,521

136

Acarlar CGU

(5,722)

(18)

Horizon CGU

N.D.U CGU

772

(772)

Manufacturing and Distribution CGU (excluding

North America and Turkey)

Haulotte France

31,464

(12,227)

(772)

26,307

(13,247)

GROSS VALUE

(772)

(4,385)

North America CGU

(1,020)

N.D.U CGU

772

Manufacturing and Distribution CGU (excluding

North America and Turkey)

(54)

Haulotte France

(54)

(13,053)

18,411

(54)

(13,301)

13,006

DEPRECIATION

NET VALUE

772

(1,020)

(5,405)

Translation

adjustment

(1,499)

31/12/2019

Increase

Decrease

31/12/2020

North America CGU

17,740

19,418

234

16,241

14,243

154

Acarlar CGU

(5,175)

Horizon CGU

(80)

N.D.U CGU

772

Manufacturing and Distribution CGU (excluding

North America and Turkey)

Haulotte France

38,218

(8,905)

(772)

31,464

(12,227)

(772)

GROSS VALUE

(6,754)

North America CGU

(4,381)

1,059

N.D.U CGU

Manufacturing and Distribution CGU (excluding

North America and Turkey)

(54)

Haulotte France

(54)

(9,731)

28,487

(54)

(13,053)

18,411

DEPRECIATION

NET VALUE

(4,381)

1,059

(5,695)

North America CGU

The last impairment test for the "North America" region considered as a cash generating unit (CGU) was

performed on 31 December 2020. A new impairment test was performed on 31 December 2021 on the CGU that

includes the US entities of the Group.

The recoverable value of the « North America » CGU was based on calculations of value in use. These calculations

were carried out using forecast future cash flows for a five-year period based on budgets approved by

management.

The main assumptions used to perform this impairment test were as follows:

- significant growth in market share in the sector of the sale of aerial work platforms in the “North American”

market, on a 5 years horizon;

- an assumption of long-term growth of 1.7% and a discount rate (WACC) of 10.1%.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

As a reminder, the following impairments has been accounted:

- 5 000 KUSD as at 31 December 2013 on the basis of the impairment test performed at that date;

- 5 000 KUSD as at 31 December 2018 on the basis of the impairment test performed at that date;

- 5 000 KUSD as at 31 December 2020 on the basis of the impairment test performed at that date.

On the basis of this impairment test, the value in use of the “North America” CGU is higher than its accounting

value leading to the conclusion that no further depreciation is neded.

Sensitivity analysis have been carried out on the following key assumptions:

- Assumptions sales forecast in the business plan: a decrease by 38,5% would not result an obligation to

record a goodwill impairment change for this CGU.

- Discount rate: increase of this rate by 5,7 points would not result an obligation to record a goodwill

impairment change for this CGU.

- Long-term growth rate: no long-term growth rate would not result an obligation to record a goodwill

impairment change for this CGU.

Acarlar CGU

The last impairment test for "Acarlar" considered as a cash generating unit (CGU) was performed on 31

December 2020. A new impairment test was performed on 31 December 2021 on the CGU.

The recoverable value of the « Acarlar » CGU was based on calculations of value in use. These calculations were

carried out using forecast future cash flows for a five-year period based on budgets approved by management.

The main assumptions used to perform this impairment test were as follows:

- Recovery of the industrial equipment market at medium term with an average annual growth rate of

turnover of 20% to 30% over the projected horizon;

- An assumption of long-term growth of 3,3% and a discount rate (WACC) of 15%.

Based on the new impairment test performed, as at 31 December 2021, the value in use of this CGU is higher

than its accounting value leading to the conclusion that no further depreciation is needed; therefore,

depreciation is maintained at that amount.

Sensitivity analysis have been carried out on the following key assumptions:

- Assumptions sales forecast in the business plan: a decrease by 27,9 points would not result an obligation to

record a goodwill impairment change for this CGU.

- Discount rate: increase of this rate by 4,9 points would not result an obligation to record a goodwill

impairment change forthis CGU.

- Long-term growth rate: no long-term growth rate would not result an obligation to record a goodwill

impairment change for this CGU.

The Group also carried out an additional sensitivity analysis, in the context of uncertainty described in the major

events, relating to the percentage decline in sales and margin. A drop in the business growth rate (4 points)

combined with a drop in the margin rate (5 points) would lead to a value in use equal to the recoverable value.

Horizon CGU

Regarding entitity and CGU Horizon, the value in use, which is taking into account the fair value of the rental

equipment (disposal costs deducted), is higher than its accounting value.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTE 9 - INTANGIBLE ASSETS

Reclassification Translation

and other changes* adjustment

31/12/2019

Increase Decrease

31/12/2020

Development expenditure

Customers portfolio

31,232

8,914

6,503

(251)

(2,375)

(52)

37,484

6,539

Concessions, patents, licenses

Other intangible and in progress

GROSS VALUE

16,961

2,674

59,781

972

714

1,034

(1,041)

(7)

18,915

2,256

(91)

8,189

(2,769)

65,194

Depreciation / impairment of development

expenditure

12,563

1,115

2,460

741

(384)

(42)

15,023

1,472

Depreciation of customers portfolio

Depreciation of concessions, patents,

licenses

11,564

2,242

(37)

13,727

Depreciation of other intangibles and in

progress

327

117

(30)

414

ACCUMULATED DEPRECIATION AND

IMPAIRMENT

25,569

34,213

5,560

2,629

(37)

(456)

30,636

34,557

NET VALUE

(2,315)

*Amounts indicated under "Reclassifications and other changes" mainly concern the transfer of "Fixed assets in progress" into the other Assets

captions, as well as presentation reclassifications.

Reclassification Translation

and other changes* adjustment

31/12/2020

Increase Decrease

31/12/2021

Development expenditure

Customers portfolio

37,484

6,539

3,491

237

(2,627)

41,212

3,912

Concessions, patents, licenses

Other intangible and in progress

GROSS VALUE

18,915

2,256

198

(7)

723

(644)

19,874

2,625

1,040

4,729

(92)

(99)

65,194

(2,280)

67,623

Depreciation / impairment of development

expenditure

15,023

1,472

2,555

569

(769)

17,588

1,272

Depreciation of customers portfolio

Depreciation of concessions, patents,

licenses

13,727

2,511

(7)

16,293

Depreciation of other intangibles and in

progress

414

(3)

492

ACCUMULATED DEPRECIATION AND

IMPAIRMENT

30,636

34,557

5,697

(968)

(10)

(678)

35,645

31,977

NET VALUE

(89)

(1,602)

*Amounts indicated under "Reclassifications and other changes" mainly concern the transfer of "Fixed assets in progress" into the other Assets

captions, as well as presentation reclassifications.

Acquisitions recorded in 2021 are mainly linked to the capitalization of development costs for 3 491 K€ (see

note 30).

Amortization on developments costs for 2 555 K€ are included in “research and development expenditures” in

the P&L .

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTE 10 - TANGIBLE ASSETS

Reclassification Translation

and other changes* adjustment

31/12/2019

Increase Decrease

31/12/2020

Land

7,373

48,666

40,497

22,347

14,792

11,963

4,747

438

(189)

13,809

262

(179)

(1,296)

(761)

11,956

61,428

41,386

18,328

16,195

Building

Plant machinery

Equipment for rental

Other PPE

1,779

(391)

1,098

2,272

11,595

21,929

2,363

(1,883)

(591)

(27)

(3,207)

(790)

512

Fixed assets in progress

GROSS VALUE

(63)

(14,757)

(186)

(12)

(218)

8,520

145,638

29,145

(3,117)

(1,505)

(6,451)

(957)

157,813

29,034

Depreciation/impairment of building

Depreciation/impairment of plant

machinery

31,720

2,151

(346)

(57)

(564)

32,904

Depreciation/impairment of equipment for

rental

9,123

11,768

1,924

1,738

(1,179)

(541)

(31)

(926)

(604)

8,911

12,381

Depreciation/impairment of other PPE

ACCUMULATED DEPRECIATION AND

IMPAIRMENT

81,756

8,176

(3,571)

(80)

(3,051)

83,230

NET VALUE

63,883

13,753

454

(106)

(3,401)

74,583

*Amounts indicated under "Reclassifications and other changes" mainly concern the transfer of "Fixed assets in progress" into the other Assets

captions, as well as presentation reclassifications.

Reclassification Translation

and other changes* adjustment

31/12/2020

Increase Decrease

31/12/2021

Land

11,956

61,428

41,386

18,328

16,195

(36)

283

(1,693)

(26)

482

743

10,709

62,428

45,379

32,144

17,023

Building

Plant machinery

Equipment for rental

Other PPE

898

(565)

(1,113)

(687)

(83)

2,957

1,395

703

8,077

1,055

21,624

31,901

2,216

5,457

377

Fixed assets in progress

GROSS VALUE

8,520

(4,490)

(1,774)

1,400

9,162

787

26,971

157,813

29,034

(2,448)

194,654

32,138

Depreciation/impairment of building

Depreciation/impairment of plant

machinery

32,904

2,294

(600)

(31)

394

34,961

Depreciation/impairment of equipment for

rental

8,911

12,381

2,385

1,707

(613)

(441)

2,220

291

12,903

13,939

Depreciation/impairment of other PPE

ACCUMULATED DEPRECIATION AND

IMPAIRMENT

83,230

74,583

8,602

23,299

(1,561)

(887)

(23)

(1,751)

3,692

5,470

93,941

100,713

NET VALUE

*Amounts indicated under "Reclassifications and other changes" mainly concern the transfer of "Fixed assets in progress" into the other Assets

captions, as well as presentation reclassifications.

Change in the caption "land" is mainly explained by a subsidy received in 2021 in the framework of the

construction of our new Chinese plant.

In 2020, decrease in this caption concerns mainly machines in rental entities and scaffolding renting machines.

Increase of the caption "fixed assets in progress" concerns mainly the construction of our new Chinese plant.

The amortization accruals of rental equipments are booked in costs of sales in the P&L. The amortization accruals

of Land, building and other PPE are booked in cost of sales and/or commercial and administrative costs in the

P&L.

A provision for impairment is recorded when the carrying value of an intangible asset falls below its recoverable

value. The recoverable value of rental equipment is based on the estimated realizable inventory value on the

market.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTE 11 - IFRS 16

Balance sheets impacts of the application of IFRS 16 standard are the following:

- Right of use assets:

Translation

adjustment

31/12/2020

Increase Decrease

31/12/2021

Building

23,589

1,565

340

158

(187)

(88)

533

24,275

1,669

Machinery equipment

Other tangible fixed assets

GROSS VALUE

4,402

29,555

6,676

799

1,288

1,786

3,605

384

(280)

(555)

(389)

(104)

(638)

(1,131)

576

5,475

31,419

10,021

1,086

632

129

Depreciation of building

Depreciation of machinery equipment

Depreciation of other tangible fixed assets

DEPRECIATION AND PROVISIONS

NET VALUE

2,059

9,535

20,021

1,123

2,576

5,112

(3,325)

168

463

13,684

17,735

- Lease liabilities:

31/12/2021

13,633

Non-current lease liabilities

Current lease liabilities

LEASE LIABILITIES

4,642

18,274

- The variation of lease liabilities is disclosed in the following table, according to IAS7:

cash flow

non cash flow

31/12/2020

31/12/2021

K€

Issue /

Refund

(6,624)

interests overdrafts

other

conv.

Current and non-current lease liabilities

20,436

675

3,787

18,274

P&L impacts are the following :

31/12/2021

(675)

Lease liabilities' financial expenses

Right-of-use assets amortization

Impact on consolidated net result

(5,432)

(158)

The Group is using the exception for the short-term contracts or low value assets.

Impacts are the following:

31/12/2021

(270)

Short terms contracts lease expenses

Lease expenses linked to low value assets contracts

(195)

The weighted average marginal debt rate amounts to 3.7% for 2021.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTE 12 - OTHER FINANCIAL ASSETS

Financial assets include loans, deposits and guarantees to non-Group entities. Their changes over the period are

as follows:

Reclassifi- Translation

31/12/2020

Increase

Decrease

(1,103)

31/12/2021

adjustment

cation

Financial assets

3,464

837

(62)

3,167

Increase corresponds to deposits done during the year.

Decrease corresponds to receivables reimbursements received during the year.

NOTE 13 - INVENTORY

Changes of

31/12/2020

Translation

adjustment

31/12/2021

the period

Raw materials

43,260

2,310

30,594

5,520

(13,433)

(2,663)

20,018

(855)

1,361

75,215

7,857

Work in progress

Semi finished and finished goods

Trade goods

73,549

19,600

138,719

(953)

1,582

182

61,697

17,120

161,889

(1,835)

(3)

GROSS VALUE

3,152

(27)

(0)

Raw materials

Work in progress

Semi finished and finished goods

Trade goods

(4)

(928)

120

(13)

(821)

(2,598)

(4,483)

134,236

212

(25)

(2,412)

(5,071)

156,818

PROVISION

(522)

19,496

(66)

3,086

NET VALUE

The inventory valuation does not include idle capacity .

The decrease in inventory of 22 582 K€ on 31 December 2021 versus an increase of (57 341) K€ at 31 December

2020 is recognized under the cost of sales in the income statement.

Provisions for inventory impairment losses break down as follows:

Translation

adjustment

31/12/2020

Increase

Decrease

(1,798)

31/12/2021

Provision for inventory impairment losses

4,483

2,320

5,071

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTE 14 - TRADE RECEIVABLES

31/12/2021

Gross value

Provision

Net value

NON-CURRENT ASSETS

Receivables from financing activities exceeding one year

including finance lease receivables

including guarantees given

SUB-TOTAL

49,185

30,981

18,204

49,185

30,981

18,204

49,185

CURRENT ASSETS

Trade receivables

127,785

21,684

(15,777)

112,008

21,684

Receivables from financing activities less than one year

including finance lease receivables

including guarantees given

SUB-TOTAL

13,200

8,484

(15,777)

8,484

149,469

198,654

133,693

182,877

TOTAL

31/12/2020

Gross value

Provision

Net value

NON-CURRENT ASSETS

Receivables from financing activities exceeding one year

including finance lease receivables

including guarantees given

SUB-TOTAL

54,205

35,375

18,830

54,205

(441)

53,764

34,934

18,830

53,764

(441)

CURRENT ASSETS

Trade receivables

92,326

22,486

12,184

(13,954)

(447)

78,372

22,039

11,737

Receivables from financing activities less than one year

including finance lease receivables

including guarantees given

SUB-TOTAL

(447)

10,302

114,812

169,017

10,302

100,411

154,175

(14,401)

(14,842)

TOTAL

As at At 31 December 2021, receivables assigned, for the balance factoring contract, amounted 8.4 M€ compared

to 8.4 M€ as at 31 December 2020.

Assignments of receivables are carried out once or twice a month. These receivables are derecognized to the

extent that the contractual rights realating to cash flows have been transferred, as well as most of the risks and

rewards associated with these receivables.

The fair value of “Trade receivables” recorded under current assets equals the carrying value given their short

maturity (less than one year).

Fair value of receivables from back-to-back equipment leases and finance leases represents the lower of the fair

value of the item at the inception (cash sales price net of rebates) or the discounted value of lease payments at

the lease’s implicit interest rate.

As described in note 4.7, the fair value of receivables guarantees granted by Haulotte Group to the lending

institution of the customer, represents:

- either the amount of capital remaining due by the customer of Haulotte Group to the financial institution

- or the maximum amount of the risk incurred by Haulotte Group,

The corresponding receivables and payables are discharged as customers make lease payments to the financial

institution.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

On an outstanding sold to financial institution amounting to 135 M€ to date, the residual risk kept by Haulotte

amounts to 15.2 M€ and is disclosed in Trade receivables from financing activities in the balance sheet and in

Borrowings under the lines “ Guarantees ”.

Due receivables are analyzed on a case-by-case basis with particular attention to customer quotations

established by the Group (see note 5.b). In light of these elements and the resulting risk analysis, the Group

determines the relevance of bokking a depreciation. Where applicable, depreciations are recorded in order to

cover the difference between the book value of the receivable and the estimated resale value of the machine

assessed on the basis of sales history and market conditions at the closing date.

Provisions for trade receivables break down as follows:

Translation

adjustment

31/12/2020

Increase

Decrease

31/12/2021

Provisions for trade receivables

(14,842)

(1,600)

1,508

(843)

(15,777)

Decrease is mainly due to the write-off of some receivables with no impact on the result of the year.

The provisions for trade receivables correspond mainly to receivables due over 120 days.

The trade receivables net amount split as follows by maturity date:

Due

Not due or less

than 30 days

Total

less than 60

days

more than 120

days

60 to 120 days

1,756

Net trade receivables 2021

Net trade receivables 2020

182,877

154,175

173,534

144,955

1,940

2,700

5,647

1,807

4,713

NOTE 15 - OTHER ASSETS

31/12/2021

31/12/2020

26,439

1,263

Other current assets

22,201

1,333

Advances and instalments paid on orders

Prepaid expenses

3,283

1,783

Depreciation of other current assets

TOTAL OTHER CURRENT ASSETS

Other non-current assets

(220)

26,597

2,629

29,265

7,845

TOTAL OTHER ASSETS

29,226

37,110

The caption « Other current assets » includes mainly:

- VAT receivables for 16 366 K€,

- tax credits for 829 K€,

- tax receivables for 497 K€ ,

- various debtors for 4 509 K€ of which an accrued income from an insurance policy of 2 649 K€ for the

payment (virtually certain) of a claim

Other non-current assets are corresponding to tax credits non usable at short term.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTE 16 - RECEIVABLES BY MATURITY

Less than 1

31/12/2021

Amount

1 to 5 years

year

112,008

21,684

Trade receivables*

112,008

70,869

29,226

212,103

49,185

2,629

Trade receivables from financing activities

Other assets

26,597

TOTAL

160,289

51,814

*Including receivables overdue of more than 30 days for € 9 343 thousand (cf. note 14)

Less than 1

year

31/12/2020

Amount

1 to 5 years

Trade receivables*

78,372

75,803

37,110

78,372

22,039

29,265

53,764

7,845

Trade receivables from financing activities

Other assets

TOTAL

191,285

129,676

61,609

*Including receivables overdue of more than 30 days for € 9 220 thousand (cf. note 14)

NOTE 17 - FOREIGN EXCHANGE RISK MANAGEMENT

The following table presents the foreign currency exposures of trade receivables and payables:

EUR

AUD

GBP

USD

TOTAL

Au 31/12/2021 - in thousands of euros

Trade receivables

RMB Others

69,539

(59,254)

10,285

18,753

(794)

5,524

44,477

46,587

13,774 198,654

(3,690) (91,867)

10,084 106,787

Trade payables

(501) (12,740) (14,888)

NET AMOUNT

17,959

5,023

31,737

31,699

EUR

AUD

GBP

USD

TOTAL

Au 31/12/2020 - in thousands of euros

Trade receivables

RMB Others

58,597

(27,542)

31,055

15,109

(926)

5,200

(459)

4,741

32,079

(8,106)

23,973

47,002

(5,919)

41,083

11,030

169,017

Trade payables

(2,349) (45,301)

8,681 123,716

NET AMOUNT

14,183

A 10 % increase in the value of the euro against the pound sterling would represent, excluding the impact of

hedges, an impact in the consolidated financial statements of 457 K€.

A 10 % increase in the value of the euro against the US dollar would represent, excluding the impact of hedges,

an impact in the consolidated financial statements of 2 885 K€.

A 10 % increase in the value of the euro against the Australian dollar would represent, excluding the impact of

hedges, an impact in the consolidated financial statements of 1 663 K€.

A 10 % increase in the value of the euro against the Renminbi would represent, excluding the impact of hedges,

an impact in the consolidated financial statements of 2 882 K€.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTE 18 - CASH AND CASH EQUIVALENTS

31/12/2021

32,860

343

31/12/2020

25,740

437

Cash at bank and in hand

Money market funds

TOTAL

33,203

26,177

NOTE 19 - SHARE CAPITAL AND PREMIUMS

31/12/2021

31,371,274

0.13

31/12/2020

31,371,274

0.13

Number of shares

Nominal value in euros

SHARE CAPITAL IN EUROS

SHARE PREMIUMS IN EUROS

4,078,266

71,901,865

4,078,266

71,901,865

Treasury shares are as follows:

31/12/2021

1,862,120

5.94%

31/12/2020

1,839,251

5.86%

Number of treasury shares

Treasury shares as a percentage of capital

Market value of treasury shares in K€*

* based on quoted value of the last business day of the year

8,938

11,164

Since 14 April 2015, Haulotte Group S.A appointed Exane BNP Paribas for the implementation of a liquidity

contract on its shares. This liquidity contract complies with the Charter of Ethics established by the AMAFI and

approved by the “Autorité des Marchés Financiers”. This contract is yearly renewable by tacit agreement.

For the implementation of this contract, the following resources have been allocated to the liquidity account:

- 102 171.80 Euros in cash,

the equivalent of 11 524.85 Euros in money market funds,

139 418 Haulotte Group S.A. shares.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Change in treasury shares during the years 2021 and 2020 was as follows:

Type

2021

184,774

1,124,857

6.1

2020

175,460

811,308

4.6

Number of shares purchased

Purchase price of shares (*)

Average price per share

Number of shares sold

161,905

781,645

1,012,142

230,496

189,851

1,134,205

899,384

(234,822)

Original value of shares sold

Sale price of shares sold (*)

Net gain/(loss)

Liquidity agreement

Number of shares cancelled

Number of shares

163,715

1,048,737

140,846

705,526

Original value of shares

Number of shares purchased

Purchase price of shares

Average price per share

Number of shares sold

Original value of shares sold

Selling price of shares sold

Net gain/(loss)

Buyback autorisation

Number of shares cancelled

Number of shares

1,698,405

13,183,551

1,862,120

1,698,405

13,183,551

1,839,251

Initial value of shares

Number of shares

Original value of shares

Provision for treasury shares

Closing quoted value of shares

14,232,288

13,889,077

Global

4.80

6.07

(*) : Cash flows generated from treasury shares correspond to the sale price of the shares less the purchase price of shares purchased. This

amounted to (112) K€ for the year ended 31 December 2021.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTE 20 - BORROWINGS AND FINANCIAL LIABILITIES

31/12/2021

31/12/2020

69,381

33,995

8,053

Syndicated loan

44,751

6,962

Other borrowings

Other advances

Guarantees

18,204

69,916

71,521

18,832

130,261

NON-CURRENT FINANCIAL LIABILITIES

Syndicated loan

Other borrowings

10,606

1,013

9,673

Other advances

1,013

Guarantees

8,484

191

10,301

127

Others

Syndicated loan - overdrafts

Other overdrafts

29,050

10,060

130,924

200,840

24,610

12,371

CURRENT FINANCIAL LIABILITIES

TOTAL BORROWINGS AND FINANCIAL LIABILITIES

58,095

188,356

Movements in the syndicated credit facilities in the 2021 financial period may be summarized as follows:

Balance avalaible

for future drowing

on at 31

Net change of Net change

the revolving of the bank

Repayment

schedule

Amortization

of fees

31/12/2020

31/12/2021

credit line

overdraft

december 2021

Revolving credit limit

70,000

2,000

72,000

18,000

10,950

TOTAL EXCLUDING

OVERDRAFTS

70,000

2,000

72,000

Overdrafts

24,610

(619)

4,440

140

29,050

(479)

Commissions and fees

TOTAL

93,991

2,000

4,440

100,571

28,950

As part of the contract signed on 17 July 2019, no commitment has been granted to the banking syndicate. This

syndicated credit facility provides for compliance by the company with a certain number of standard obligations

during the term of the facility. A certain number of ratios will be measured every six months based on the

selected ratios derived from the consolidated financial statements for the half-year periods ended 30 June and 31

December of each year (notably Group EBITDA, shareholders' equity, net debt).

A waiver request with respect to bank ratios for two periods (December 2021 and June 2022) has been submitted

to the lenders. This request has been unanimously accepted by all the lenders on February 15, 2022.

Regarding the purchase in substance of the new Group headquarters, the corresponding liability amounts to 13.5

MEUR as at December 31, 2021 and is disclosed in the caption other borrowings.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Group debt is denominated in the following currencies (excluding guarantees given):

Translated value in thousands of euros

31/12/2021

164,604

9,550

31/12/2020

150,545

Euros

Others

TOTAL

8678

174,154

159,223

The variation of financial debts is disclosed in the following table, according to IAS 7:

Cash flow

Non cash flow

31/12/2020

31/12/2021

Issue /

Refund *

Interests Overdraft

Conv.

Other

Short Term

Long Term

TOTAL

58,095

130,261

1,484

(4,000)

(2,516)

1,143

967

11,997

69,235

(71,681)

(2,446)

130,924

69,916

3,339

188,356

3,339

1,143

12,964

200,840

*The difference between the amount of issues and refunds of borrowings disclosed in the table above and the amount disclosed in the

consolidated statement of cash flow comes from flows on financial assets (deposits or loans).

Non-cash flows are mainly impacted by the change in guarantees on financing operations (disclosed as “other”).

NOTE 21 - MANAGEMENT OF INTEREST-RATE RISKS

Borrowings, excluding guarantees given, break down as follows:

31/12/2021

71,922

31/12/2020

56,648

Fixed rate borrowings

Variable rate borrowings

TOTAL

102,232

102,575

174,154

159,223

A 1 % rate increase would result in a maximum additional interest expense, excluding hedges, of 1 022 K€.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTE 22 - PROVISIONS

Provision Reversal of

Translation

adjustment

31/12/2020 Allowance used in the

unused

provision

(459)

31/12/2021

period

Provisions for product warranty

Restructuring provision

6,249

1,182

2,174

443

(834)

145

6,283

2,174

1,679

Provisions for litigation

2,972

(1,544)

(255)

Short-term portion of pensions provisions

CURRENT PROVISIONS

9,239

6,144

16,525

3,603

730

(2,415)

(119)

(483)

(1,186)

(1,669)

208

(53)

(52)

156

10,154

5,516

15,670

Long-term portion of pensions provisions

NON-CURRENT PROVISIONS

TOTAL PROVISIONS

730

4,333

(119)

(2,534)

Customer warranties

Customer warranties provision remains stable explained by the effects of quality indicators improvement over

the year.

Restructuring provision

During the year, a provision was recognized in connection with the industrial reorganization of a French

production site on which a job protection plan was implemented. The costs related to this operation are

disclosed in note 34.

Other provisions

During the period, the Group has reversed (with utilization) the provision of 1,1 M€ booked in December 2020

following a warranty call.

Other amounts booked as at December 31,2021 are considered as non significants.

Contingent liabilities

In the purpose of its current activities, the Group is involved in various procedures inherent to its activities. The

Group considers that the provisions made for these risks, disputes or contentious situations known or in progress

at the balance sheet date, are of a sufficient amount so that the consolidated financial situation is not

significantly affected in the event of an unfavorable outcome.

- Since 2017 closing, the Group has identified financial assets relating to a customer for who a

reimbursement would not take place according to the original schedules. During the second half of 2018, a

litigation situation has been identified and resulted in a summons in May 2019. As of today, the progress of

the legal litigation leads the Group to consider it as a contingent liability, in connection with the note 34.

- The distribution subsidiary of Haulotte Group in Brazil, Haulotte do Brazil is currently being the subject of a

proceeding concerning the settlement of import tax duties prior to 2010. The Group is currently studying

with its counsel the actual risk of this proceeding. At 31 December 2021, it was not possible to reliably

measure this risk (notably as the amounts cited were considered as very excessive) and this litigation is in

consequence classified as a contingent liability .

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTE 23 - PENSION AND RELATED BENEFITS

Main assumptions used for the valuation of liabilities

The only post-employment benefits of Group employees correspond to retirement severance benefits and long-

service awards, mainly in the French entities.

Provisions are recorded for retirement liabilities according to the principles described in paragraph 4.9, taking

into account the following assumptions:

31 December 2021

31 December 2020

based on historical data available to the Group with no

changes between the two periods

Turnover rate

Rate of wage increases (according to seniority,

based on seniority, expected career profile, collective labor

the projected career profile, collective bargaining agreements and long-term inflation rate calculated on a

agreements, and long-term inflation rate)

historical basis

Discount rate

1.00%

0.39%

Employees born before 1 January 1950

Management

62 years old

60 years old

Supervisors / office employees

and workers 60 years old

Retirement age

Employees born after 1 January 1950

Management

65 years old

63 years old

Supervisors / office employees

and workers

With respect to retirement severance payments, the scenario adopted is voluntary departure of employees

whereby social charges are taken into account (45 %). This calculation method complies with the framework of

the Fillon Law (enacted on 21 August 2003, and amended by Law 2010-1330 of 9 November 2010 for the reform of

retirement systems published in the French official journal on 10 November 2010).

The Group does not hold any plan assets.

A general decline in the discount rate of 0.25 points would result in a 4.0 % increase in benefit obligations.

Following the decision of IFRS IC which concluded that the provision to be recognized for the benefit should only

be constituted over the period which covers the last 16 years of service rendered by the employee (or between

the date of employment and the date of retirement, if the duration determined is less than 16 years), an impact

of 1.1 M€ has been recognized in the opening equity.

Change in accumulated benefit obligations

31/12/2021

7,304

558

31/12/2020

PRESENT VALUE OF THE COMMITMENT AT THE BEGINNING OF THE PERIOD

Service costs of the year

6,845

485

Discount costs

SUBTOTAL OF AMOUNTS RECOGNISED IN PROFIT OR LOSS

Benefits paid in the period

581

536

(97)

111

(9)

SUBTOTAL OF OUTFLOWS (BENEFITS AND CONTRIBUTIONS PAID BY THE EMPLOYER)

Changes in assumptions

(9)

(935)

(248)

Actuarial (gains) and losses arising from experience adjustments

Translation adjustments

(59)

Change of method

(1,142)

(2,325)

SUBTOTAL AMOUNTS RECOGNISED IN OTHER COMPREHENSIVE INCOME

Change in consolidation scope

CURRENCY TRANSLATION

(18)

(33)

7,304

PRESENT VALUE OF THE COMMITMENT AT THE END OF THE PERIOD

5,533

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Total amounts recognized in Other Comprehensive Income (excluding deffered taxes)

31/12/2021

3,525

31/12/2020

TOTAL AMOUNTS RECOGNISED IN OCI AT THE BEGINNING OF THE

PERIOD

3,473

Revaluation of net liabilities / assets of the period

(2,325)

TOTAL AMOUNTS RECOGNISED IN OCI AT THE END OF THE PERIOD

1,200

3,525

NOTE 24 - PAYABLES BY MATURITY

31/12/2021

Gross value Less than 1 year

1 to 5 years More than 5 years

Bank borrowings

Including guarantees given

Bank overdrafts

Trade payables

161,730

26,688

39,110

91,814

8,484

52,777

17,139

18,204

39,110

91,867

18,275

91,867

4,642

9,949

3,683

Lease liabilities

Other current liabilities

TOTAL

22,792

333,774

22,792

250,225

62,726

20,822

31/12/2020

Gross value Less than 1 year

1 to 5 years More than 5 years

Bank borrowings

Including guarantees given

Bank overdrafts

Trade payables

151,375

29,132

21,114

10,302

36,981

45,301

4,581

117,467

12,794

18,830

36,981

45,301

20,436

19,898

273,991

10,989

4,867

Lease liabilities

Other current liabilities

TOTAL

19,898

127,875

128,456

17,661

NOTE 25 - OTHER CURRENT LIABILITIES

31/12/2021

2,136

31/12/2020

931

Down payments received

Tax and employee-related liabilities

Prepaid income

18,407

1,406

16,276

1,039

Others

843

1,652

TOTAL

22,792

19,898

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTE 26 - DEFERRED TAXES

Deferred tax assets are offset by deferred tax liabilities generated in the same tax jurisdiction.

Deferred tax assets resulting from temporary differences or tax losses carried forward are recognized only to the

extent that is really probable that future taxable profit will be available against which the temporary differences

can be utilized over the next five years. When this probability cannot be demonstrated, deferred tax assets are

capped to the amount of deferred tax liabilities recognized on the same tax jurisdiction and deferred tax assets

on tax losses carried forward are not recognized.

The global amount of tax losses carried forward for which no deferred tax assets were recorded amount to 100

549 K€ for the Group at 31 December 2021 (107 343 K€ at 31 December 2020) and the major part can be

indefinitely carried forward.

The change in net deferred tax breaks down as follows:

31/12/2021

325

31/12/2020

315

Deferred taxes from adjustments of the fair value of rental equipment

Deferred taxes from adjustments on finance leases and back-to-back leases

Deferred taxes from provisions of pensions

(57)

1,270

1,880

3,586

3,472

(5,338)

(1,115)

6,357

1,372

Deferred taxes from adjustments of internal margin on inventory and fixed assets

Deferred taxes from non-deductible provisions

Deferred taxes from differences in depreciation periods and R&D costs

Deferred taxes on Acarlar customers portfolio

2,249

4,019

(5,424)

(581)

Deferred taxes from tax losses

6,725

819

Deferred taxes from other consolidation adjustments

Deferred taxes from other temporary differences

Impact of the capping of deferred tax assets

(663)

(3,915)

4,768

766

(4,963)

6,335

TOTAL

The change in net deferred tax breaks down as follows:

31/12/2021

6,335

31/12/2020

OPENING NET BALANCE

11,623

(5,489)

Income / (loss) from deferred taxes from continued activities

Deferred taxes recognised in other comprehensive income

Other

(2,668)

(2,701)

2,295

Translation adjustment

1,507

119

CLOSING NET BALANCE

4,768

6,335

Deferred taxes recognized in other comprehensive income concerned mainly the net impact of unrealized

foreign exchange losses and gains on current accounts classified as net investments.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTE 27 - SALES AND REVENUE

Note 39 on segment reporting provides with details on sales and revenue.

NOTE 28 - COST OF SALES

31/12/2021

(382,726)

(175)

31/12/2020

(332,540)

196

Production cost of sales

Change in inventory provisions

Warranty costs

(6,428)

(5,832)

TOTAL

(389,329)

(338,176)

NOTE 29 - GENERAL AND ADMINISTRATIVE EXPENSES

31/12/2021

31/12/2020

(39,573)

(1,503)

Administrative expenses

Provision for depreciation of trade receivables

Management expenses

TOTAL

(40,177)

256

(8,400)

(48,531)

(8,748)

(49,824)

NOTE 30 - RESEARCH AND DEVELOPMENT EXPENDITURES

31/12/2021

5,348

31/12/2020

Development expenditures recognised as intangible assets

Amortisation of development expenditures

Research tax credit

6,559

(2,647)

2,218

(3,744)

2,479

Development expenditures

(15,854)

(11,771)

(16,411)

(10,281)

TOTAL

NOTE 31 - EXCHANGE GAINS AND LOSSES

In current operating income

Realised exchange gains and losses

Unrealised exchange gains and losses

TOTAL

31/12/2021

(845)

31/12/2020

1,230

(1,379)

(1,358)

385

In financial income

31/12/2021

728

31/12/2020

(3,556)

Realised exchange gains and losses

Unrealised exchange gains and losses

TOTAL

8,336

(11,110)

9,064

(14,666)

TOTAL

9,449

(16,024)

Foreign exchange gains and losses related to underlying considered as financing items (mainly of our

subsidiaries) are presented within the financial result.

For the year ended 31 December 2021, the application of IAS 29 for Argentinian entities (reevaluation of the

accounts in pesos and conversion of the income statement at closing rate) generated a profit of 2.4 M€ in

foreign exchange gains and losses and recognized as a financial income

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTE 32 - EXPENSES BY NATURE OF CURRENT OPERATING

INCOME

31/12/2021

31/12/2020

Purchases of raw materials and other consumablesand changes in finished

products inventory

(278,233)

(250,769)

External charges

(80,621)

(4,561)

(97,170)

(19,515)

384

(64,474)

(4,900)

(87,145)

(13,570)

(1,358)

Taxes and related items

Staff costs

Net depreciation, impairment and provisions

Currency gains and losses

Other operating income and expenses

TOTAL

(5,326)

(479,674)

(427,543)

NOTE 33 - STAFF COSTS

31/12/2021

(69,997)

(25,418)

(710)

31/12/2020

(65,412)

(21,702)

(26)

Salaries and wages

Social security and related expenses

Employee profit-sharing

Pensions costs

(1,045)

(5)

TOTAL

(97,170)

(87,145)

Staff costs are allocated to the appropriate captions of the income statement by function.

NOTE 34 - OTHER OPERATING INCOME AND EXPENSES

31/12/2021

31/12/2020

Industrial reorganization costs

(3,575)

(1,343)

Cost of litigation net of increases/ decreases in provisions

(3,513)

(4,381)

764

Goodwill depreciation

Others

(708)

TOTAL

(5,626)

(7,130)

Over the period, costs were recognized in connection with the industrial reorganization mentioned in Note 22.

They consist of a provision for restructuring of (2.2) M€, a provision of (0.9) M€ for the scrapping of intangible and

tangible assets and (0.5) M€ of other expenses which were settled during the year.

Cost of litigations are mainly composed of legal fees for 0.5 M€, assets depreciation for 0.8 M€ and 0,7 M€ of

other charges.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTE 35 - COST OF NET FINANCIAL DEBT, OTHER FINANCIAL

INCOME AND EXPENSES

31/12/2021

(2,956)

(154)

31/12/2020

Interest expenses and fees on loans and bank overdrafts

Cost of transfers of financial assets

Interests on leasing contracts

(2,408)

(178)

(914)

(774)

(3,360)

COST OF NET FINANCIAL DEBT

Gains and losses on realization of financial instruments

Others

(4,024)

(919)

(1,455)

(4,815)

OTHER FINANCIAL INCOME AND EXPENSES

TOTAL

(919)

(4,943)

NOTE 36 - CORPORATE INCOME TAX

31/12/2021

(5,288)

31/12/2020

(7,648)

361

Current tax

Deferred tax

TOTAL

(2,668)

(7,956)

(7,287)

NOTE 37 - EFFECTIVE INCOME TAX RECONCILIATION

The difference between the effective tax rate of 49.44% (-66.67% in December 2020) and the standard rate

applicable in France of 28.41 % breaks down as follows:

31/12/2021

31/12/2020

Consolidated income before tax

16,094

(15,610)

TAX (INCOME)/ EXPENSE CALCULATED AT THE

TAX RATE APPLICABLE TO THE PARENT

COMPANY'S PROFIT

4,572

28.41%

(4,514)

28.92%

Effect of differential in tax rates

(836)

1,517

Effect of permanently non-deductible expenses or

non-taxable income

(2,233)

Effect of use of loss carry forwards previously not

recognised

(854)

(737)

Effect of tax assets not recognised

Effect of loss carry forwards not recognised

Effect of tax consolidation and income tax credits

Effect of the reversal of unused deferred tax assets

Tax relating to previous years

1,854

5,913

(3,821)

3,408

3,737

17,153

(913)

(3,259)

264

Others

(2,310)

7,956

(608)

10,407

EFFECTIVE TAX (INCOME)/ EXPENSE

49.44%

-66.67%

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTE 38 - EARNINGS PER SHARE

Earnings per share are calculated by dividing net profit or loss of the Group for the period by the weighted

average number of shares outstanding during the period, excluding treasury shares acquired.

Diluted earnings per share are calculated by adjusting the weighted number of shares outstanding in order to

take into account all shares issued on conversion of potentially dilutive securities, and notably stock options. A

calculation is made to determine the number of shares acquired at fair value (the annual average for traded

shares) according to the monetary value of rights attached to outstanding stock options. The resulting number

of shares is then compared with the number of shares that would have been issued if the options have been

exercised.

In Euros

31/12/2021

7,934

31/12/2020

(26,057)

NET INCOME FOR THE GROUP IN THOUSANDS OF EUROS

Total number of shares

31,371,274

1,862,120

31,371,274

1,839,251

Number of treasury shares

NUMBER OF SHARES USED FOR THE EARNINGS PER SHARE AND THE

DILUTED EARNINGS PER SHARE CALCULATION

29,509,154

29,532,023

Earnings per share attributable to shareholders

- basic

0.27

(0.88)

- diluted

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTE 39 - SEGMENT REPORTING

39.1 SALES BREAKDOWN

Sales by business segment

Sales of handling and lifting equipment*

Rental of handling and lifting equipment

Services

31/12/2021

31/12/2020

380,748

12,280

423,981

17,541

55,749

497,272

45,517

CONSOLIDATED SALES

100

438,544

100

* Financed sales amount to 67.3 M€ (versus 92 M€ as per 31 December 2020) and interests income on financed sales amount 3,3 M€

(versus 2.0 M€ as per 31 December 2020).

39.2 MAIN INDICATORS BY BUSINESS SEGMENT

The column « Others » includes items not allocated to the Group's three business segments as well as inter-

segment items.

31/12/2021

31/12/2020

Manufacturing

and Sale of

Manufacturing

and Sale of

In K€ (continuing

operations)

Equipment

rental

Equipment

rental

Others

Total

Others

Total

Services

equipment

INCOME

STATEMENT

HIGHLIGHTS

Sales and revenues

to external

customers

423,981

30,772

17,541

2,449

55,749

7,906

497,272

17,598

380,748

23,204

12,280

2,658

45,517

438,544

10,001

Current operating

income

(23,530

)

3,388 (18,250)

ASSETS

Inventories

144,133

165,571

12,685

11,848

156,818

182,877

120,075

138,363

14,161

11,826

134,236

154,175

Trade receivables*

5,458

3,986

* includes receivables on financing operations

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Notes 40 to 42 provide with information regarding the cash flow statement

NOTE 40 - ANALYSIS OF CHANGE IN WORKING CAPITAL

31/12/2021

(19,896)

381

31/12/2020

48,979

Change in inventories

Change in provision for inventories

Change in trade receivables

(32,468)

100

13,599

Change in provision for trade receivables

Charge in trade payables

(5,225)

(24,249)

1,198

44,897

8,265

Change in other assets and liabilities

CHANGE IN OPERATING WORKING CAPITAL CONTINUED OPERATIONS

1,279

34,384

NOTE 41 - ANALYSIS OF CHANGE IN RECEIVABLES FROM

FINANCING ACTIVITIES

31/12/2021

31/12/2020

(18,077)

Change in gross value

7,868

Change in provisions

334.00

CHANGE IN RECEIVABLES FROM FINANCING ACTIVITIES

7,868

(17,743)

Revenue from financing activities includes back-to-back arrangements, direct financing leases, lease payment

obligations and risk pool commitments.

Transactions involving risk pool commitments and lease payment obligations by Haulotte Group SA represent

transactions for which receivables and payables are fully offset. In consequence, they do not generate cash flow.

The receivables and payables (for the same amount) are discharged as customers make lease payments to their

financial institution. In consequence, these transactions are eliminated in the cash flow statement because they

have no impact on net cash.

Changes in back-to-back lease arrangements and finance leases are presented as a cash component of the

above business. In contrast, changes in the corresponding payable (fully matched by the receivable or resulting

from a comprehensive financing arrangement after the back-to-back lease agreements were repurchased

through a syndicated loan) are presented under cash flows from financing activities.

NOTE 42 - CASH COMPONENTS

31/12/2021

32,860

343

31/12/2020

25,740

Cash on hand and deposit accounts

Money market funds and negotiable instruments

CASH AND CASH EQUIVALENT - BALANCE SHEET

Bank overdrafts (refer to note 20)

437

33,203

(39,110)

(5,907)

26,177

(36,981)

(10,804)

CASH AND CASH EQUIVALENT - CASH FLOW STATEMENT

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTE 43 - INFORMATIONS ON RELATED PARTIES

43.1 RELATED PARTIES TRANSACTIONS

Solem S.A.S. is the majority shareholder of Haulotte Group S.A., with 57.50 % of the share capital at 31 December

2021.

Solem paid to Haulotte Group S.A. income of 30 K€ in 2021 and 30 K€ in 2020, and invoiced charges of 1 455 K€

in 2021 and 1 225 K€ in 2020 corresponding to the expenses incurred for the Group by two Directors as described

in the note below.

In 2021, Telescopelle paid 57 K€ to Solem (55 K€ in 2020) under the terms of a financial recovery clause following

a debt waiver granted on 31 December 2001 for 1 220 K€. The debt waiver balance for which the payment is

expected amounted to 383 K€ at 31 December 2021.

43.2 FEES ALLOCATED TO DIRECTORS AND OFFICERS

Amounts allocated to Board members paid by the Group amounts to 765 K€ for 2021 (766 K€ for 2020). This

whole amount corresponds to short term advantages (fix and variable wages).

In compliance with the agreement to provide general administrative and commercial assistance signed by

Solem S.A.S. the cost of the services is subject to a 10% mark-up.

No loans or advances have been granted to directors and officers. There are no other pension obligations or

related commitments in favor of current or former executives.

NOTE 44 - OFF-BALANCE SHEET COMMITMENTS

Commitments given

31/12/2021

31/12/2020

Repurchase commitments*

Commitments given by Haulotte Group SA to GE Capital for the benefit of

Haulotte US**

4,075

1,473

Guarantees on export financing***

926

(*) : Repurchase commitments cover guarantees for the residual values granted by the Group in connection with customer financing

agreements.

(**) : In connection with product financing agreements executed in 2014, Haulotte Group SA is the first call guarantor in the event of

default by Haulotte US Inc., for up to US$5,000 thousand, in favour of different GE Group companies (General Electric Capital

Corporation US, GE Commercial Distribution Finance Corporation US, GE Canada Equipment Financing G.P.). This commitment

expired on 19 December 2021.

(***) : Financing export agreements are put in place for some customers. Specialized financial institutions guarantee these agreements

to the banks for a certain percentage. Then, the Group gives an additional guarantee to the financial institution for the percentage

not covered.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

CONSOLIDATES FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTE 45 - AVERAGE NUMBER OF EMPLOYEES

31/12/2021

31/12/2020

Average headcount for the year

1,819

1,804

NOTE 46 - AUDITORS' FEES

In euros (excluding VAT)

Reports on financial statemns

Other services

PricewaterhouseCoopers Audit SAS

BM&A

182,861

12,500

94%

96,844

100%

TOTAL

195,361

100%

96,844

100%

Other services are related to independent report on corporate social responsability information.

NOTE 47 - SUBSEQUENT EVENTS

Regarding the recent geopolitical events in Ukraine and Russia, the Group considers that its economic exposure

in this region is limited, since the level of turnover achieved by the local entity established in Russia represents

approximately 5% of the group's turnover. No subsidiary of the group is established in Ukraine and the sales

made in Ukraine are immaterial. Moreover, in this period of high demand, with an orderbook that reached an

historical level, the Group is able to compensate the impact of a potential decrease of activity in this area.

The events listed above, as well as the sanitary situation in China, where a rebound of the Covid-19 epidemic has

been important, had unfavorable impacts on the inflation on the cost of raw materials, components, energy, and

transportations. In this uncertain context, the effects on operations and finances of the group linked to these

impacts and the duration of the conflict in Ukraine are under analysis. The group confirms, through the

implementation of the necessary resources, its ability to meet these challenges.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

SATUTORY AUDITOR'S REPORT ON THE

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

PricewaterhouseCoopers Audit

Grand Hôtel Dieu

3 Cour du Midi, CS 30259

69287 Lyon Cedex 02

BM&A

11 rue de Laborde,

75008 Paris

To the annual general meeting of Haulotte Group SA

Rue Emile Zola

42420 Lorette

This is a free translation into English of the statutory auditors’ report on the consolidated financial statements

of the Company issued in French and is provided solely for the convenience of English-speaking readers. This

statutory auditors’ report includes information specifically required by European regulations and French law,

such as information about the appointment of statutory auditors or verification of the information concerning

the Group presented in the management report and other documents provided to shareholders.

This report should be read in conjunction with, and construed in accordance with, French law and professional

auditing standards applicable in France.

OPINION

In compliance with the engagement entrusted to us by your annual general meeting, we have audited the

accompanying consolidated financial statements of Haulotte Group SA (“the Group”) for the year ended

December 31, 2021.

In our opinion, the consolidated financial statements give a true and fair view of the assets and liabilities and of

the financial position of the Group as at December 31, 2021 and of the results of its operations for the year then

ended in accordance with International Financial Reporting Standards as adopted by the European Union.

The audit opinion expressed above is consistent with our report to the Audit Committee.

BASIS FOR OPINION

Audit framework

We conducted our audit in accordance with professional standards applicable in France. We believe that the

audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Our responsibilities under those standards are further described in the “Statutory Auditors’ Responsibilities for

the Audit of the Consolidated Financial Statements” section of our report.

Independance

We conducted our audit engagement in compliance with the independence with independence requirements

of the French Commercial Code (Code de commerce) and the French Code of Ethics (Code de déontologie) for

statutory auditors, for the period from January 1, 2020 to the date of our report, and specifically we did not

provide any prohibited non-audit services referred to in Article 5(1) of Regulation (EU) No 537/2014.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

SATUTORY AUDITOR'S REPORT ON THE

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

JUSTIFICATION OF ASSESSMENTS - KEY AUDIT MATTERS

Due to the global crisis related to the covid-19 pandemic, the financial statements of this period have been

prepared and audited under specific conditions. Indeed, this crisis and the exceptional measures taken in the

context of the state of sanitary emergency have had numerous consequences for companies, particularly on

their operations and their financing, and have led to greater uncertainties on their future prospects. Those

measures, such as travel restrictions and remote working, have also had an impact on the companies’ internal

organization and the performance of the audits.

It is in this complex and evolving context that, in accordance with the requirements of Articles L.823-9 and R.823-

7 of the French Commercial Code (code de commerce) relating to the justification of our assessments, we inform

you of the key audit matters relating to the risks of material misstatement that, in our professional judgment,

were of most significance in our audit of the consolidated financial statements of the current period, as well as

how we addressed those risks.

These matters were addressed in the context of our audit of the consolidated financial statements as a whole

and in forming in our opinion thereon and we do not provide a separate opinion on specific items of the

consolidated financial statements.

ASSESSMENT OF CUSTOMER CREDIT RISK

Description of risk

The Group has a diverse portfolio of customers whose financial positions may be impacted by the cyclical nature

of the markets and changing geopolitical environments, which could, in the short term, result in limited liquidity

and ultimately affect their ability to make payments.

At 31 December 2021, trade receivables, including receivables from financing activities, represented a gross value

of €198,564 thousand and a net value of €182,877 thousand.

As indicated in Notes 4.7, 5 and 14 to the consolidated financial statements, the assessment of customer risk, and

consequently the measurement of potential impairment, relies on (i) an analysis of customers’ individual

financial situations based primarily on past relationships with those customers and the outlook of the markets in

which they operate, and (ii) the likelihood that the Group would recover underlying assets in the event of

customer default.

Given the materiality of receivables with varying maturities depending on the type of financing and the

judgements and assumptions made by management to measure impairment of trade receivables, we deemed

the measurement of customer credit risk to be a key audit matter.

How our audit addressed this risk

Our work consisted primarily in:

- Gaining an understanding of the internal control procedures put in place by management applicable to

the measurement of customer credit risk;

- Assessing the merits of the assumptions made by management in its measurement of potential customer

credit risks including, where applicable, the ability to repossess equipment;

- Verifying the basic data used to measure provisions related to trade receivables when payment deadlines

are exceeded by more than one year.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

SATUTORY AUDITOR'S REPORT ON THE

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Measurement of the goodwill allocated to the « North America » and

« Acarlar » CGU

Description of risk

At 31 December 2021, total goodwill amount to € €13,006 thousand net and goodwill for the “North America” &

“Acarlar” CGU (cash-generating unit) came to € 4,349 thousand net, and € 8,521 thousand net, respectively. The

procedures for the impairment tests used are described in Notes 4.1 and 8 to the consolidated financial

statements.

The recoverable amounts of the “North America” & “Acarlar” CGU are determined based on their value in use,

which are calculated using the discounted value of cash flows expected over a period of five years from the

group of assets allocated to the “North America” & “Acarlar” CGU. Forecast data includes assumptions in terms of

volume, sale price and production costs and the use of a discount rate and a long-term growth rate.

Given the use of assumptions and estimates to assess the recoverable value, we deemed the measurement of

goodwill to be a key audit matter.

How our audit addressed this risk

We examined the methodology used by the Group for performing impairment tests.

Our work consisted primarily in:

- Reconciling the data underlying the “North America” & “Acarlar” CGU carrying amount with the

consolidated financial statements;

- Ensuring the correct calculation of discounted cash flows;

- Verifying the mathematical accuracy of the data and reconciling forecast data with the budget approved

by management;

- Assessing the consistency of the operational assumptions made by management to establish cash flow

projections, including by comparing them to past performances and market outlook;

- Assessing the discount rate calculations and corroborating certain inputs of this rate with available market

data, particularly in the context of the Covid-19 pandemic;

- Assessing the sensitivity of the recoverable amount to inputs such as discount rate and the assumptions

used.

We also examined the appropriateness of the disclosures provided in Note 8, “Goodwill”, to the consolidated

financial statements.

Assessment of the going concern basis

Description of risk

Consolidated financial statements have been prepared using the going concern basis of accounting.

As indicated in Note 2 “Major events of the fiscal year” to the consolidated financial statements, the financial

covenants defined in the Syndicated Loan have been breached as of December 31, 2021 due to the global strong

recovery of the market cumulated with difficulties in the supply chain. A waiver has been granted by all the

lenders to the Group for the year ended December 31, 2021 and for the half-year as at June 30, 2022.

The net financial debt as at December 31, 2021 amounts to € 167.6 million, including cash for € 33.2 million,

financial debts and liquidity as described in Notes 18 “Cash and cash equivalent” and 20 “Borrowings and

financial liabilities”.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

SATUTORY AUDITOR'S REPORT ON THE

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Based on :

The net financial debt and the portion of debts to be paid within the next 12-month,

The cash and short-term liquidity available at Group level,

The assumptions followed by Management to prepare a budget and assess expected cash-flows,

the level of cash is considered as sufficient by Group Management to ensure the continuity of the activities.

Given the terms and conditions of the financial debts of the Group and the use of assumptions and estimates to

assess the expected rentability and future cash-flows, we deemed the assessment of the going concern to be a

key audit matter.

How our audit addressed this risk

As part of our audit procedures, we assessed the level of liquidity needed by the Group based on future expected

cash-flows, actual cash and short-term credits available.

Our work consisted primarily in obtaining the details of future expected cash-flows and in understanding (i)

procedures followed and (ii) main assumptions applied to determine these cash-flows.

We assessed their consistency with the last business plan prepared by Management and approved by the

executive committee.

We also assessed their reasonableness compared to past performances and to the activity realized within the

FY22 first few months taken into consideration the actual economic and financial situation of the lifting

equipment manufacturing sector as well as an assessment of the on-going actions initiated by the Group as a

response of the Covid-19 crisis and of the conflict in Ukraine.

We also examined the appropriateness of the disclosures included in the notes to the consolidated financial

statements and related to :

Events described in Notes 2.3 “Syndicated Loan contract” and 47 “Subsequent events”,

The liquidity risk mentioned in Notes 3.2.2 “Evaluation of risks and significant uncertainties having a

potential material impact on Haulotte Group” and 5 “Management of financial risks”,

The details of financial debts, borrowings, overdrafts and syndicated loan in Note 20 “Borrowings and

financial liabilities”.

SPECIFIC VERIFICATION

We have also performed, in accordance with professional standards applicable in France, the specific verification

required by laws and regulations of the Group’s information given in the Group’s management report.

We have no matters to report as to their fair presentation and their consistency with the consolidated financial

statements.

We attest that the consolidated non-financial statement required by Article L.225-102-1 of the French commercial

code (code de commerce) is included in the Group’s information given in the management report, it being

specified that, in accordance with article L. 823-10 of this Code, we have verified neither the fair presentation nor

the consistency with the consolidated financial statements of the information contained therein. This

information should be reported on by an independent third party.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

SATUTORY AUDITOR'S REPORT ON THE

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

Format of the presentation of the consolidated financial statements intended to be

included in the annual financial report

We have also verified, in accordance with the professional standard applicable in France relating to the

procedures performed by the statutory auditor relating to the annual and consolidated financial statements

presented in the European single electronic format, that the presentation of the consolidated financial

statements intended to be included in the annual financial report mentioned in Article L.451-1-2, I of the French

Monetary and Financial Code (Code monétaire et financier), prepared under the responsibility of the Group

Managing Director, complies with the single electronic format defined in the European Delegated Regulation N°

2019/815 of 17 Decembre 2018. As it relates to consolidated financial statements, our work includes verifying that

the tagging of these consolidated financial statements complies with the format defined in the above delegated

regulation.

Based on the work we have performed, we conclude that the presentation of the consolidated financial

statements intended to be included in the annual financial report complies, in all material respects, with the

European single electronic format.

We have no responsibility to verify that the consolidated financial statements that will ultimately be included by

your company in the annual financial report filed with the AMF are in agreement with those on which we have

performed our work.

Appointment of the Statutory Auditors

We were appointed Statutory Auditors of Haulotte Group SA by the General Meetings held on 25 May 2021 for

BM&A and on 2 October 1998 for PricewaterhouseCoopers Audit.

As at 31 December 2021, BM&A and PricewaterhouseCoopers Audit were in the seventh year and the twenty-

fourth year of total uninterrupted engagement, which are the seventh year and the twenty-fourth year since

securities of the Company were admitted to trading on a regulated market, respectively.

RESPONSABILITIES OF MANAGEMENT AND THOSE CHARGED WITH

GOVERNANCE FOR THE CONSOLIDATED FINANCIAL STATEMENTS

Management is responsible for the preparation and fair presentation of the consolidated financial statements in

accordance with International Financial Reporting Standards as adopted by the European Union and for such

internal control as management determines is necessary to enable the preparation of consolidated financial

statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the company's

ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the

going concern basis of accounting, unless it is expected to liquidate the company or to cease operations.

The Audit Committee is responsible for monitoring the financial reporting process and the effectiveness of

internal control and risk management systems and where applicable, its internal audit, regarding the

accounting and financial reporting procedures.

The consolidated financial statements were approved by the Board of Directors.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

SATUTORY AUDITOR'S REPORT ON THE

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

STATUTORY AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE

CONSOLIDATED FINANCIAL STATEMENTS

Objective and audit approach

Our role is to issue a report on the consolidated financial statements. Our objective is to obtain reasonable

assurance about whether the consolidated financial statements as a whole are free of material misstatement.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance

with professional standards will always detect a material misstatement when it exists. Misstatements can arise

from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be

expected to influence the economic decisions of users taken on the basis of these consolidated financial

statements.

As specified in Article L.823-10-1 of the French Commercial Code (code de commerce), our statutory audit does

not include assurance on the viability of the Company or the quality of management of the affairs of the

company.

As part of an audit conducted in accordance with professional standards applicable in France, the statutory

auditor exercises professional judgment throughout the audit and furthermore:

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due

to fraud or error, designs and performs audit procedures responsive to those risks, and obtains audit evidence

considered to be sufficient and appropriate to provide a basis for his opinion. The risk of not detecting a material

misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,

forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtains an understanding of internal control relevant to the audit in order to design audit procedures that

are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of

the internal control.

Evaluates the appropriateness of accounting policies used and the reasonableness of accounting estimates

and the related disclosures made by management in the consolidated financial statements.

Assesses the appropriateness of management’s use of the going concern basis of accounting and, based on

the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast

significant doubt on the company’s ability to continue as a going concern. This assessment is based on the audit

evidence obtained up to the date of the audit report. However, future events or conditions may cause the

company to cease to continue as a going concern. If the statutory auditor concludes that a material uncertainty

exists, there is a requirement to draw attention in the audit report to the related disclosures in the consolidated

financial statements or, if such disclosures are not provided or are inadequate, to issue a qualified opinion

expressed therein.

Evaluates the overall presentation of the consolidated financial statements and assesses whether these

statements represent the underlying transactions and events in a manner that achieves fair presentation.

Obtains sufficient appropriate audit evidence regarding the financial information of the entities or business

activities within the Group to express an opinion on the consolidated financial statements. The statutory auditor

is responsible for the direction, supervision and performance of the audit of the consolidated financial

statements and for the opinion expressed on these consolidated financial statements.

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

SATUTORY AUDITOR'S REPORT ON THE

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Report to the Audit Committee

We submit a report to the Audit Committee which includes in particular a description of the scope of the audit

and the audit program implemented, as well as the results of our audit. We also report, if any, significant

deficiencies in internal control regarding the accounting and financial reporting procedures that we have

identified.

Our report to the Audit Committee includes the risks of material misstatement that, in our professional

judgment, were of most significance in the audit of the consolidated financial statements of the current period

and which are therefore the key audit matters that we are required to describe in this report.

We also provide the Audit Committee with the declaration provided for in Article 6 of Regulation (EU) No 537/

2014, confirming our independence within the meaning of the rules applicable in France, such as they are set in

particular by Articles L.822-10 to L.822-14 of the French Commercial Code (code de commerce)and in the French

Code of Ethics (code de déontologie) for statutory auditors. Where appropriate, we discuss with the Audit

Committee the risks that may reasonably be thought to bear on our independence and the related safeguard.

Lyon, April 29, 2022

The Statutory Auditors

PricewaterhouseCoopers Audit

BM&A

Matthieu Moussy

Pascal Rhoumy

haulotte.com l CONSOLIDATED FINANCIAL STATEMENTS 2021

SUMMARY

STATUTORY ACCOUNTS

FISCAL YEAR ENDED 31 DECEMBER 2021

BALANCE SHEET - ASSETS

Amort.

Dépréc.

In thousands of Euros

Note

Gross

31/12/2021 31/12/2020

INTANGIBLE ASSETS

Software, patents

4.1

18,663

168

15,255

3,408

168

4,799

168

Goodwill

Other intangible assets

PROPERTY, PLANT AND EQUIPMENT

Land

1,458

1,156

4.1

882

18,382

26,871

7,084

998

882

4,671

4,557

1,538

998

882

4,578

5,042

1,984

2,149

Buildings

13,712

22,314

5,546

Machinery and equipment

Other PPE

Fixed assets in progress

FINANCIAL ASSETS

Long-term investments

Receivables from investments

Other investments

Other financial assets

NON-CURRENT ASSETS

INVENTORIES AND WORK IN PROGRESS

Raw materials

4.2

4.4

4.3

66,601

126,002

14,232

17,704

27,658

5,226

48,896

98,344

9,006

58,446

73,395

10,622

1,617

3,452

1,112

2,340

284,795

108,528

176,267

164,840

38,023

3,628

12,230

8,871

710

1,160

36,863

3,628

11,725

7,630

710

19,484

552

Work in progress

Finished goods

505

15,325

8,553

703

Trade goods

1,241

Advances paid to suppliers

ACCOUNTS RECEIVABLE

Accounts receivable

Other receivables

129,019

55,064

41,168

4,549

87,851

50,515

72,448

63,106

CASH AND CASH EQUIVALENT

Marketable securities

Cash at hand

343

437

9,262

8,050

ACCRUALS

Prepaid expenses

1,362

258,512

1,537

1,362

209,889

1,537

1,113

189,772

6,733

CURRENT ASSETS

Unrealised foreign exchange losses

TOTAL

48,623

157,150

544,844

387,693

361,345

haulotte.com l STATUTORY ACCOUNTS 2021

SUMMARY

STATUTORY ACCOUNTS

FISCAL YEAR ENDED 31 DECEMBER 2021

INCOME STATEMENT

In thousands of Euros

Note

31/12/2021

210,616

(582)

31/12/2021

186,552

(27,095)

1,270

NET SALES

Change in inventories of finished goods and work in progress

Capitalised production

948

Operating grants

304

Reversals of provisions, depreciation and expense transfer

Other income

6,941

7,584

13,671

181,996

16,232

10,597

228,823

18,189

654

OPERATING INCOME

Purchase of trade goods

Change in inventories (trade goods)

Purchase of raw materials and other supplies

Change in inventories (raw materials and other supplies)

Other purchases and external charges

Taxes other than on corporate income

Wages and salaries

143,399

(18,069)

45,994

2,397

85,696

1,628

37,233

3,011

29,533

12,815

5,437

28,539

12,257

5,147

Social charges

Depreciation and amortisation of fixed assets

Increase in provisions for current assets

Provisions for contingencies and commitments

Other expenses

7,926

2,945

1,817

436

2,301

5,222

OPERATING EXPENSES

251,013

(22,190)

10,463

4,646

9,213

199,731

(17,735)

OPERATING PROFIT (LOSS)

Dividends received from subsidiaries

Interest income

4,071

4,491

2,023

Reversals of provisions

Currency gains

7,145

Net proceeds from the disposal of marketable securities

FINANCIAL INCOME

31,467

23,833

8,209

4,795

10,586

17,315

4,120

4,125

Allowances for depreciation and reserves

Interest expenses

Currency losses

Net expenses from the disposal of marketable securities

FINANCIAL EXPENSES

36,839

(5,373)

(27,563)

309

25,561

(14,975)

(32,710)

381

NET FINANCIAL PROFIT (LOSS)

PRE-TAX PROFIT BEFORE EXTRAORDINARY ITEMS

Extraordinary income sundry business operations

Extraordinary income on transactions

Reversal of provisions, expenses reclassifications

EXTRAORDINARY INCOME

18.1

262

3,695

4,266

1,614

1,388

1,804

1,469

907

Extraordinary expenses sundry business operations

Extraordinary expenses on transactions

Depreciation and provisions

136

2,649

4,398

(132)

1,146

EXTRAORDINARY EXPENSES

EXTRAORDINARY PROFIT (LOSS)

Corporate income tax

3,522

(1,718)

(3,131)

(34,337)

18.2

(2,909)

(23,874)

NET PROFIT (LOSS)

haulotte.com l STATUTORY ACCOUNTS 2021

SUMMARY

STATUTORY ACCOUNTS

FISCAL YEAR ENDED 31 DECEMBER 2021

NOTE 1 - SIGNIFICANT EVENTS DURING THE YEAR

A global aerial work platform market in strong recovery

During the fiscal year, the global aerial work platform market is recovering strongly. This commercial dynamic

allows the Group to post an increase of its sales up to +13% and a historic level of its order book.

Difficulties in procuring and components price increase

The strong business recovery of activities has generated difficulties in procuring components and has increased

delivery times that lead to a significant increase of components' prices which impact on last quarter have been

significant.

These various elements also had the effect of extending machine delivery time during the fiscal year.

Syndicated loan contract

On December 22nd, 2021, in order to allow Haulotte to maintain the necessary flexibility to manage its business at

a time of strong recovery, Haulotte submitted to all the lenders of the Syndicated Loan a request for a waiver

concerning the non-compliance with its banking ratios for the periods of December 2021 and June 2022. It was

unanimously accepted on February 15, 2022. This waiver request, obtained after the annual closing date, led to

the presentation of the Syndicated Loan as short-term debt as of December 31st, 2021.

The cash flow forecasts for the next twelve months do not question the Group's ability to ensure its liquidity with

regard to the credit lines opened and available at December 31, 2021 and the cash flow forecasts for the first

months of 2022.

Haulotte had obtained on June 30th, 2021, an extension of one more year of the syndicated loan agreement, as

disclosed in the contract signed on July 17th, 2019, bringing its maturity to July 17, 2026.

haulotte.com l STATUTORY ACCOUNTS 2021

SUMMARY

STATUTORY ACCOUNTS

FISCAL YEAR ENDED 31 DECEMBER 2021

NOTE 2 - ACCOUNTING POLICIES

The company’s annual financial statements have been prepared in accordance with the laws and regulations

applicable in France and with regulation 2014-03 of France's national Accounting Standards Body (Autorité des

Normes Comptables).

Accounting conventions of establishment and presentation of the annual accounts have been applied in

compliance with the prudence concept, in accordance with the following basic assumptions:

- the going concern concept,

- the time period concept,

- the consistency principle.

The statutory accounts have been prepared according to the historical cost convention.

Only significant information is disclosed.

2.1 INTANGIBLE FIXED ASSETS

Intangible assets are recognised at their purchase price, excluding financial charges. Software is depreciated on

a straight-line basis over 3 to 7 years according to its useful life.

Models and designs are depreciated over 5 years.

Goodwill is not subject to depreciation. An impairment is recorded when its value in use is less than the amount

initially recognised. Under regulation 2015-06 of ANC, it was considered that this goodwill had an indefinite useful

life.

Research and development expenditure is expensed in the period incurred.

2.2 PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are recognised in the balance sheet at purchase cost (less discounts and all costs

necessary to bring the asset to working condition for its intended use) or production cost. Finance costs are not

included in the cost of fixed assets.

Basis for depreciation of fixed assets is their gross value (cost less residual value). Depreciation starts from the

date the asset is ready to be commissioned. Depreciation is recorded over the useful life that reflects the

consumption of future economic benefits associated with the asset that will flow to Haulotte Group SA.

When the asset’s carrying value is greater than its estimated recoverable amount, an impairment is recorded for

the difference.

Subsequent costs are recognised as separate assets and subject to different depreciation rates if the related

assets have different useful lives. The carrying amount of the renewed or replaced part is derecognised, the new

costs incurred being separately capitalised.

haulotte.com l STATUTORY ACCOUNTS 2021

SUMMARY

STATUTORY ACCOUNTS

FISCAL YEAR ENDED 31 DECEMBER 2021

Land is not depreciated. Depreciation on other assets is calculated using the straight-line method over their

estimated useful lives as follows:

Depreciation period

Plant buildings:

Main component

40 years

Other components

10 to 30 years

Buildings fixtures and improvements:

Main component

10 to 40 years

5 to 20 years

3 to 20 years

5 years

Other components

Plant equipment

Other installations and equipment

Transportation equipment

Computer and office equipment

Office furniture

3 to 10 years

The assets’ residual value and useful lives are reviewed and adjusted, if appropriate, at each balance-sheet date.

The gains or losses on disposals of fixed assets are recognised within ‘Extraordinary income/expenses on

transactions’.

⦁ Regulated tax reserves

Regulated reserves include in particular additional tax depreciation allowances calculated by utilising the most

favourable tax option. This mainly concerns depreciation on residual values of equipment recorded as fixed

assets.

2.3 FINANCIAL ASSETS

⦁ Equity Investments

Investments are recognised in the balance sheet at historical cost, including transaction costs such as transfer

rights, commissions and fees directly attributable to the acquisition of the securities. These expenses are

included in the cost of securities and are subject to special accelerated depreciation over five years.

At year-end, their balance sheet value is compared with their value in use, determined with reference to the

share in net equity owned and the earnings prospects. When applicable, a provision for impairment is recorded.

When necessary (notably for subsidiaries with negative net equity), additional provisions are recognised first

against intra-group assets (receivables, current accounts) and further as a provision for charges if necessary.

Most of the long-term investment are valued in relation with the share in net equity owned, this approach does

not use sensitive estimation assumptions. Regarding Acarlar, shares value have been determined using the

multiple valuation method.

⦁ Receivables from investments

Receivables from investments relate to current account advances and loans granted to subsidiaries.

These items are recognised at face value. Long-term current accounts and loans granted to our subsidiaries in

foreign currencies are translated into Euros at the year-end exchange rate. Gains arising on translation are

recognised as ‘unrealised foreign exchange gains’ and recorded in the balance sheet. Losses arising on

translation result in the recognition of a provision for foreign exchange losses and go therefore through the

income statement.

Long-term current accounts are subject to impairment in the cases described in the preceding paragraph. There

is no translation adjustment recorded for the impaired portion of foreign currency current accounts.

haulotte.com l STATUTORY ACCOUNTS 2021

SUMMARY

STATUTORY ACCOUNTS

FISCAL YEAR ENDED 31 DECEMBER 2021

⦁ Other receivables

Short-term current accounts in foreign currencies are converted into euros at the closing rate. Any exchange

gains and losses are recognized in currency gains or losses.

The depreciated portion of current accounts in foreign currencies does not lead to book currency gains or losses.

⦁ Treasury shares

Treasury shares acquired in connection with the Group's share buy-back program are recorded as financial

assets. They are recognised at purchase price. At the end of the year, their carrying value is determined on the

basis of the average quoted price of the shares for the last month of the year. If the carrying value is lower than

the purchase price, an impairment loss is recorded for the difference.

2.4 INVENTORIES AND WORK IN PROGRESS

Inventories are stated at the lower of cost or net realisable value:

- Materials and supplies cost is determined using the average cost method based on the weighted average

cost per unit,

- The cost of finished products and work in progress includes direct production costs and factory overhead

(based on normal operating capacity),

- Traded goods inventories are recorded at purchase price (spare parts) or at their trade-in value (second-

hand machines),

- The net realisable value is the estimated selling price in the ordinary course of business less applicable

expenses to recondition or sell the goods.

Impairment is recognised when the net realisable value corresponding to the estimated selling price in the

ordinary course of business less applicable expenses to recondition or sell the goods, is less than the carrying

value of inventories defined above.

The materials and spare parts inventories are eventually impaired following the last buying date and the

turnover rate.

2.5 RECEIVABLES AND PAYABLES

Receivables and payables are recognised at their face value.

A provision for impairment is recorded when their collection value, determined on a case-by-case basis, is

estimated to be lower than the carrying value.

As soon as there are indications of a real and serious collection risk, a provision for impairment is recorded.

2.6 TRANSLATION OF TRANSACTIONS IN FOREIGN CURRENCY

Transactions in foreign currencies are translated at the exchangerate on the transaction date. At the end of the

period, receivables and payables balances are translated at the closing rate. The resulting translation differences

for payables and receivables in foreign currency at the end of the period are recognised in the balance sheet

under the cumulative translation adjustment. For unrealised foreign exchange losses,

contingencies is recorded.

a provision for

For receivables for which impairment has been recorded, only the remaining balance is translated at the year-

end exchange rate.

Following the ANC regulation No.°2015-5 of 2 July and applicable as from 1 January 2017, allowances and reversals

for foreign exchange losses are recognized under operating income for trade receivables and payables, and as

financial result for financing operations.

haulotte.com l STATUTORY ACCOUNTS 2021

SUMMARY

STATUTORY ACCOUNTS

FISCAL YEAR ENDED 31 DECEMBER 2021

2.7 MARKETABLE SECURITIES

Marketable securities are initially recognised at their purchase price excluding incidentals. Carrying value of the

securities is measured based on quoted values at the closing date. An impairment is recorded when this quoted

value is lower than purchase price.

2.8 PROVISIONS

When a contingent liability is identified, for which no reliable estimation can be determined, there is no provision

recognized. If applicable, a description of the identified risk is included in a dedicated paragraph within the

notes relating to provisions for contingencies and charges (Note 12) or contingent liabilities.

In general a provision is recorded when:

- the Group has a present legal or constructive obligation as a result of a past event,

- it is probable that an outflow of resources embodying economic benefits will be required to settle the

obligation,

- the obligation has been reliably estimated.

⦁ Warranty provision

Haulotte Group grants clients a manufacturer’s warranty. The estimated cost of warranties on products already

sold is covered by a provision statistically calculated on the basis of historical data. The warranty period is

generally two years. When necessary, a provision is recognised on a case-by-case basis to cover specific warranty

risks identified.

⦁ Litigations

Other provisions are also recorded in accordance with the above principles to cover risks related to litigations,

site closures (when applicable) or any other event meeting the definition of a liability. The amount recognised as

a provision represents the best estimate of the expenditure required to settle the obligation.

All material lawsuits involving the company were reviewed at year-end, and based on the advice of legal counsel,

the appropriate provisions were recorded, when necessary, to cover the estimated risks corresponding to a net

out flow of resources.

⦁ Pension

Haulotte Group SA records provisions for retirement severance payment and other post-employment

obligations as well as long-service awards. Haulotte Group SA only had defined benefit plans. The corresponding

obligation is measured using the projected unit credit method with end-of-career wages. The calculation of this

obligation takes into account the provisions of the laws and collective bargaining agreements and actuarial

assumptions concerning notably staff turnover, mortality tables, salary increases and inflation.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are

recorded in the income statement in the period incurred.

As of January 1, 2021, Haulotte applied the new method relating to provisions for retirement according to ANC

recommendation no. 2013-02 amended on November 5, 2021 following a decision of IFRS IC taken in April 2021

which concluded that the provision to be recognized for the benefit should only be constituted over the period

which covers the last 16 years of service rendered by the employee.

This change in accounting method is assimilated to a change in accounting regulations.

haulotte.com l STATUTORY ACCOUNTS 2021

SUMMARY

STATUTORY ACCOUNTS

FISCAL YEAR ENDED 31 DECEMBER 2021

2.9 OPERATING PROFIT

⦁ Revenue recognition

“Net sales” includes the goods and services sales comprising notably:

- Equipment sales to the distribution and renting subsidiaries of the group

- Direct sales to certain customers

- Spare parts sales

- Services.

Sales of goods are recorded net of value added tax at the date of transfer of risks and benefits of ownership.

Revenues related to services are recognised over the period during which the services are rendered.

⦁ Operating expenses

Operating expenses include notably material costs, production costs and overheads.

2.10 FINANCIAL INCOME

Financial income consists primarily of changes in provisions on investments and on intercompany current

accounts, exchange gains and losses (except those relating to commercial receivable and debt), interest income

and expenses on current accounts and financial costs associated with borrowing.

2.11 EXTRAORDINARY INCOME

Items that are exceptional in nature or that do not occur in the normal course of business are recognised under

extraordinary profit or loss. In accordance with the French National Accounting Code (Plan Comptable Général),

extraordinary profit or loss also includes allowances and reversals of special tax depreciation provisions.

NOTE 3 - POST-CLOSING EVENT