Slide 1: Chargeurs: A World of Niche Market Leaders
Chargeurs "A World of Niche Market Leaders" Investor presentation, October 2016
Slide 2: Overview
OVERVIEW 1. A global manufacturing & services Group in niche markets 2. Chargeurs: A Distinctive Performance Model 3. Success of the “Performance, Discipline, Ambition” Plan 4. Financial Review 5. Outlook 6. Appendices Investor Presentation - October 2016 ―2
Slide 3: A global manufacturing & services Group in niche markets
A global manufacturing & services 1 Group in niche markets Investor Presentation - October 2016 ―3
Slide 4: Dominant global positions in niche markets
DOMINANT GLOBAL POSITIONS IN NICHE MARKETS Four business skill-sets with leadership positions in niche industrial markets Chargeurs Protective Films Chargeurs Fashion Technologies World no.1 in temporary World no.2 in garment interlining Protective Fashion Films surface protection Technologies Cha
Slide 5: Summary: sharply higher profits in first-half 2016
SUMMARY: SHARPLY HIGHER PROFITS IN FIRST-HALF 2016 First-half results that reflect a solid improvement in the value creation process Revenue EBITDA EBITDA margin Recurring operating profit Net profit Like-for-like +22% +190 bps +30% +64% +5.4% 256,6 253.5 25,3 10,0% 20,7 8,1% 20,3 15,6 13,1 8,0 €m H
Slide 6: First-half 2016 financial highlights
FIRST-HALF 2016 FINANCIAL HIGHLIGHTS A further strong improvement in results Group Protective Films Fashion Technologies Technical Substrates Wool Like- for-like Like-for-like Like- for- like Like- for-like Like- for-like +5.4% +7.0% +3.6% +18.4% +2.2% 256,6 253.5 120.5 113,6 79,7 Revenue 68,9 53,5
Slide 7: Chargeurs Protective Films
CHARGEURS PROTECTIVE FILMS 1 "The leading innovative coating solutions" Numerous, constantly evolving technical surfaces that need protecting in construction, household appliances, automotive & electronics Innovation in products (e.g., fiber laser) and processes (e.g., machine coating) combined
Slide 8: A market leader dedicated to customers service
CHARGEURS PROTECTIVE FILMS A MARKET LEADER DEDICATED TO CUSTOMERS SERVICE An expert manufacturer of self-adhesive plastic films used to protect surfaces at every stage of the transformation, handling, transport and fitting process A comprehensive range of products developed by leveraging expertise
Slide 9: Geographic presence
CHARGEURS PROTECTIVE FILMS GEOGRAPHIC PRESENCE Present in all of the world's main markets Légende 4 production units (France, Italy, United States) 9 commercial subsidiaries (France, Italy, Germany, Spain, United Kingdom, Belgium, United States, China and South Korea) 8 commercial offices (Czech Rep
Slide 10: Financial highlights: Protective Films
CHARGEURS PROTECTIVE FILMS FINANCIAL HIGHLIGHTS Further revenue growth and a 180-bp increase in EBITDA margin (in euro millions) H1 2016 H1 2015 Change Revenue 120,5 113,6 +6,9 +6,1% Like-for-like change (%) +7,0% EBITDA 16,5 13,5 +3,0 +22,2% as a % of revenue 13,7% 11,9% Recurring operating profit
Slide 11: Chargeurs Fashion Technologies
1 CHARGEURS FASHION TECHNOLOGIES "IN’SIDE FASHION" Present in the products of over 1,600 leading brands in the luxury, bespoke & fast-fashion segments Innovation: interlining fabric made from recycled polyester yarn (Eco’In) Environmental responsibility: 80% of products are certified Oekotex C
Slide 12: A competitive No.2 position
CHARGEURS FASHION TECHNOLOGIES A COMPETITIVE No.2 POSITION An expert in the production of interlining, the only technical fabric used by the apparel industry, which is essential to help garments keep their shape Vertically integrated production, to maintain control over all phases in the productio
Slide 13: Geographic presence
CHARGEURS FASHION TECHNOLOGIES GEOGRAPHIC PRESENCE A global organization serving customers in their local markets Key 7 production units (France, United States, China, Bangladesh, Sri Lanka, Argentina and Brazil) 21 commercial subsidiaries (France, Italy, Germany, United Kingdom, Portugal, Romania,
Slide 14: Financial highlights: Fashion Technologies
CHARGEURS FASHION TECHNOLOGIES FINANCIAL HIGHLIGHTS Sharply improved operating performance, with EBITDA margin up by over 300 bps and recurring operating profit up 60% (in euro millions) H1 2016 H1 2015 Change Revenue 68,9 79,7 -10,8 -13,6% Like-for-like change (%) +3,6% EBITDA 6,5 5,0 +1,5 +30,0% a
Slide 15: Chargeurs Technical Substrates: An industrial champion
CHARGEURS TECHNICAL SUBSTRATES 1 An industrial champion A strong innovation culture embedded in the Group’s model Development of EstoMpe®, a coated fabric that selectively filters electromagnetic waves (GSM, WiFi) Capacity increases to offer customers innovative solutions with a 5-meter width
Slide 16: Chargeurs Technical Substrates, an industrial champion
CHARGEURS CHARGEURS TECHNICAL SUBSTRATES , TECHNICAL SUBSTRATES AN INDUSTRIAL CHAMPION A European leader in its niche market for specialty technical textiles Senfa has 40 years' experience of functionalizing technical textiles, drawing on its expertise in two specialty areas – fabrics and chemical
Slide 17: Geographic presence
CHARGEURS TECHNICAL SUBSTRATES GEOGRAPHIC PRESENCE A network of distributors serving customers throughout the world Key 1 production unit in Sélestat, Alsace (France) 22 countries served by agents and distributors Investor Presentation - October 2016 ― 17
Slide 18: Financial highlights: Technical Substrates
CHARGEURS TECHNICAL SUBSTRATES FINANCIAL HIGHLIGHTS Successful innovations and production from the new 5-meter width coating line helped to drive 25% EBITDA growth (in euro millions) H1 2016 H1 2015 Change Revenue 11,6 9,8 +1,8 +18,4% Like-for-like change (%) +18,4% EBITDA 2,3 1,8 +0,5 +27,8% as a %
Slide 19: Chargeurs Wool
CHARGEURS WOOL 1 "From the Sheep To the Shop" Local and global expertise backed by a strict policy of transparent communications with suppliers and customers ("From the Sheep To the Shop") http://lanastrinidad.com Product quality and traceability: partnerships with local spinning mills Experti
Slide 20: An original and effective business model
CHARGEURS WOOL AN ORIGINAL AND EFFECTIVE BUSINESS MODEL An expert in marketing very high quality combed wool Topmaking, a key phase in the wool garment production process, consists of creating long, fine blended-wool fibers, known as tops, that successfully meet the needs of spinning mills An or
Slide 21: Geographic presence
CHARGEURS WOOL GEOGRAPHIC PRESENCE Un réseau couvrant les principaux marchés de la laine dans le monde Key 4 partner combing mills (United States, Uruguay, Argentina and China) 5 marketing and distribution subsidiaries (Uruguay, Italy, France, United States and New Zealand) 6 wool sources (United St
Slide 22: Financial highlights: Wool
CHARGEURS WOOL FINANCIAL HIGHLIGHTS An enhanced business model since 2012 (in euro millions) H1 2016 H1 2015 Change Revenue 52,5 53,5 -1,0 -1,9% Like-for-like change (%) +2,2% EBITDA 1,8 1,5 +0,3 +20,0% as a % of revenue 3,4% 2,8% Recurring operating profit 1,8 1,5 +0,3 +20,0% as a % of revenue 3,4%
Slide 23: Chargeurs: A Distinctive Performance Model
2 Chargeurs: A Distinctive Performance Model Investor Presentation - October 2016 ― 23
Slide 24: The Chargeurs model in action
THE CHARGEURS MODEL IN ACTION A sustainable global model based on industrial excellence and differentiation • Decentralized management • High barriers to entry • Managerial leadership • Constant innovation • Investment in human capital and • Innovative service solutions and leveraging international
Slide 25: A method based on strategic and operational efficiencies
A METHOD BASED ON STRATEGIC AND OPERATIONAL EFFICIENCIES Our objective : to become a diversified manufacturing Group recognized for its excellence Daily management and impulsion as closely as possible to the field, customers, products and talents Strong emphasis on effectiveness of the changes
Slide 26: Business models aligned with best international standards
BUSINESS MODELS ALIGNED WITH THE BEST INTERNATIONAL STANDARDS IN EACH SEGMENT Chargeurs is developing high-end businesses that stand clearly apart from the competition Investor Presentation - October 2016 ― 26
Slide 27: Business models aligned with best international standards
BUSINESS MODELS ALIGNED WITH THE BEST INTERNATIONAL STANDARDS IN EACH SEGMENT Chargeurs is consolidating its new industrial excellence model Investor Presentation - October 2016 ― 27
Slide 28: Success of the Performance, Discipline, Ambition Plan
Success of the “Performance, 3 Discipline, Ambition” Plan Investor Presentation - October 2016 ― 28
Slide 29: Significant events of first-half 2016
SIGNIFICANT EVENTS OF FIRST-HALF 2016 Six months devoted to implementing the Performance, Discipline, Ambition plan July May Acquisition of Main Tape, Inc. in Annual Shareholders' the United States by Chargeurs Meeting Protective Films Payment of the 2015 Expansion of product dividend of €0.
Slide 30: Successful implementation of the performance plan
SUCCESSFUL IMPLEMENTATION OF THE PERFORMANCE PL AN 2016 annual performance plan target: €4.5 million (cash impact) Performance plan objectives Reduce structural product costs Create more efficient manufacturing organization at Chargeurs Fashion Technologies in China (by closing the 65% Guangzhou
Slide 31: Main Tape: first targeted transaction illustrating new M&A model
MAIN TAPE: FIRST TARGETED TRANSACTION ILLUSTRATING CHARGEURS' NEW STRATEGIC M&A MODEL Extended leadership in the Group's largest business and largest market A robust leadership position in the United States that complements the position held by Chargeurs Protective Films An iconic brand that enj
Slide 32: Financial Review
4 FINANCIAL REVIEW Investor Presentation - October 2016 ― 32
Slide 33: Consolidated income statement
CONSOLIDATED INCOME STATEMENT Strong earnings growth (in euro millions) H1 2016 H1 2015 Change Comments Revenue 253,5 256,6 -3,1 -1,2% +5.4% like-for-like: improved mix and higher volumes Gross margin 65,2 60,1 +5,1 +8,5% Improved mix, higher volumes, good cost discipline as a % of revenue 25,7% 23,
Slide 34: Positive contribution of all businesses to recurring operating profit
POSITIVE CONTRIBUTION OF ALL BUSINESSES TO RECURRING OPERATING PROFIT Revenue and recurring operating profit bridges Revenue bridge (in €m) Recurring operating profit bridge (in €m) 256.6 +8.5 253.5 +5.3 +4.4 20.3 -8.8 -8.1 15.6 +0.2 +2.8 +5,4% organic -0,1 -2.6 +29,5% organic June 2015 Scope Curren
Slide 35: Consolidated financial position at June 30, 2016
CONSOLIDATED FINANCIAL POSITION AT JUNE 30, 2016 Liquidity position significantly enhanced during the period €57 million 7-year Euro PP issue, repayable at maturity Notes: €25 million Bank loan: €32 million Less than 3% average interest rate New 3 and 5-year confirmed revolving credit faci
Slide 36: Statement of cash flows
STATEMENT OF CASH FLOWS Cash flow up 23% versus first-half 2015 (in euro millions) H1 2016 Comments EBITDA 25,3 Non-recurring – cash -2,1 Restructuring costs (€1.4m), business acquisition costs (€0.7m) Interest paid -2,0 Increase in Group financing resources, extension of average maturity, lower cos
Slide 37: Balance sheet analysis
BALANCE SHEET ANALYSIS A very robust balance sheet structure (in euro millions) June 30, 2016 Dec. 31 2015 Comments Intangible assets 77,2 78,5 Currency effect on Protective Films goodwill in USD Property, plant and equipment 56,1 55,9 Solvent equipment installed (Protective Films) Associates and jo
Slide 38: Outlook
5 OUTLOOK Investor Presentation - October 2016 ― 38
Slide 39: 2016 Outlook
2016 OUTLOOK The Group's 2016 guidance is confirmed: Revenue (excluding Chargeurs Wool)* + Recurring operating profit ++ Free cash flow +++ Like-for-like, excluding the impact of any major global macro-economic event Payment of an interim dividend of €0.20 per share in September 2016: Ex-divid
Slide 40: Appendices
6 APPENDICES Investor Presentation - October 2016 ― 40
Slide 41: Revenues by country
REVENUES BY COUNTRY The United States, the Group's largest market H1 2016 As a % of (in euro millions) Revenue total revenue United States 44,1 17,4% Italy 41,0 16,2% China & Hong Kong 23,3 9,2% Germany 23,2 9,2% France 19,9 7,8% Top 5 countries 151,5 59,8% Other countries 102,0 40,2% Total revenue
Slide 42: Like-for-like revenue growth
LIKE-FOR-LIKE REVENUE GROWTH Change (like- (in euro millions) H1 2016 H1 2015 Change (reported) for-like) Protective Films 120,5 113,6 6,9 6,1% 7,0% Fashion Technologies 68,9 79,7 -10,8 -13,6% 3,6% Technical Substrates 11,6 9,8 1,8 18,4% 18,4% Wool 52,5 53,5 -1,0 -1,9% 2,2% Chargeurs 253,5 256,6 -3,
Slide 43: Share performance
SHARE PERFORMANCE As of September 30th, 2016 Number of shares 22,966,144 ISIN: FR0000130692 – CRI Share price €14.09 Listing: Euronext Paris Compartment B, eligible for deferred Market capitalization €323.6 million settlement service and for inclusion in PEA and PEA-PME personal equity portfolios In
Slide 44: Changes in ownership structure
CHANGES IN OWNERSHIP STRUCTURE Shareholder value creation strategy Number of shares 22,966,144 Chargeurs moved up from compartment C to compartment B of Euronext Paris in January 2016 Chargeurs SA's bylaws updated €2.6 million liquidity contract set up Colombus Holding's stake increased from
Slide 45: 2016 Financial Calendar and Contacts
2016 Financial Calendar Third-Quarter 2016 Financial Information Thursday, November 10 Contacts Investor Relations Chargeurs Cédric Ratouis 1 1 2 , av e n u e K l é b e r 7 5 1 1 6 Pa r i s Te l : + 3 3 1 4 7 0 4 1 3 4 0 Financial Communications E m a i l : co mf i n@ c h a rg e u rs .f r Pauline Ba