Slide 1: Investors Presentation
Investors Presentation STRENGTH & VISION April 2017
Slide 2: Overview
OVERVIEW 1. Summary 2. Our value creation model 3. 2016: An Excellent Performance in a Uneven Macro-Economic Environment 4. A Robust and Disciplined Financial Culture 5. Outlook Investors Presentation – April 2017 ―2
Slide 3: Summary
1 Summary Investors Presentation – April 2017 ―3
Slide 4: Performance, Discipline, Ambitions
Performance, Discipline, Ambitions 2016 results: sustained excellent performance in a still uneven macro-economic environment Sharply higher results, well in excess of targets: Revenue up 5.1% like-for-like to €506.4m Recurring operating profit up 27.1% to €38.9m, despite the negative currency
Slide 5: Performance, Discipline, Ambitions: 2017 outlook
Performance, Discipline, Ambitions 2017 outlook: further excellence-driven growth in a still uneven global economic environment Ongoing business optimization strategy: Enhanced industrial and marketing model for each business Development of a performance plan launched in 2015 Focus on a uniq
Slide 6: Performance, Discipline, Ambitions: medium and long-term outlook
Performance, Discipline, Ambitions Medium and long-term outlook: become a game changer in the Group's industrial niches A more robust Chargeurs business model focused on developing leadership positions in global niches and a balanced worldwide presence A philosophy of creating long-term sharehol
Slide 7: Our value creation model
2 Our value creation model Investors Presentation – April 2017 ―7
Slide 8: Distinctive Growth & Performance Strategy
Distinctive Growth & Performance Strategy CHARGEURS TODAY OUR AMBITION IN THE COMING YEARS A niche market leader Becoming a niche market “Game Changer” Protective Fashion Technical Luxury Consolidate leadership in our businesses with targeted key films technologies substrates materials acquisition
Slide 9: Chargeurs' Distinctive Vision
Chargeurs’ Distinctive Vision Our mission: Developing niche products and services recognized as remarkable, innovative, reliable and specific in order to enhance the performance and the success of our customers Market trends Chargeurs key strengths Examples Constant passion to meet Chargeurs Prote
Slide 10: Business Models Aligned With the Best International Standards In Each Segment
Business Models Aligned With the Best International Standards In Each Segment Developing high-end businesses that set Chargeurs apart from competitors CHARGEURS CHARGEURS CHARGEURS CHARGEURS The Chargeurs business model PROTECTIVE FILMS FASHION TECHNOLOGIES TECHNICAL SUBSTRATES LUXURY MATERIALS Temp
Slide 11: Business Models Aligned With the Best International Standards In Each Segment
Business Models Aligned With the Best International Standards In Each Segment Consolidating a new industrial excellence model CHARGEURS CHARGEURS CHARGEURS CHARGEURS The Chargeurs business model PROTECTIVE FILMS FASHION TECHNOLOGIES TECHNICAL SUBSTRATES LUXURY MATERIALS Use of cutting-edge technolog
Slide 12: A Successful Value Creation Strategy
A Successful Value Creation Strategy GOOD TO GREAT Chargeurs’ Strategy BUILT TO LAST A n a l r e a d y s t r o n g t ra c k r e c o rd O rga nic Revenue in M€ Operational Recurring Operating Profit in % of revenue +4,7% +1,6% Margin e ff ic iency organic* organic* (Industrial activities)* +190 bp +1
Slide 13: A Strong Shareholder Value Creation
A Strong Shareholder Value Creation Chargeurs brought high returns thanks to strong profitability improvements Stock value since change of governance Dividend 22 € (Chargeurs share price adjusted) 20 € 18 € +83% +175% 16 € 0,55 € 14 € 12 € 0,35 10 € 0,3 8€ €0,20 6€ 30/10/15 30/01/16 30/04/16 31/07/1
Slide 14: Our Key Value Creation Enablers
Our Key Value Creation Enablers Market Innovation on segmentation products and services Customer Managing proximity talents Industrial and Digital at the Innovative logistic excellence core of our Marketing Investors Presentation – April 2017 processes ― 14
Slide 15: Our Key Value Creation Enablers in Medium and Long Term
Our Key Value Creation Enablers in Medium and Long Term Our strategy : Performing as leader, acting as Game Changer Focus on growing Designing sub- Increasing market Market Focus on profitable Increasing barriers geographies : Asia, market product and shares in end segmentation technical markets to
Slide 16: Our Model for High Potential Targeted Acquisitions
Our Model for High Potential Targeted Acquisitions Proven approach with achieved acquisitions Transform Integration Improve customer service Enhance processes thanks to knowledge Pre-acquisition Secure team from from Chargeurs acquired company Bring portfolio of Leverage Chargeurs innovati
Slide 17: Main Tape: the First Targeted Acquisition
Main Tape: the First Targeted Acquisition Illustrating Chargeurs' New Strategic Growth Model A high-quality company with a significant presence across the United States and proven expertise in temporary surface protection Revenue of US$27m in 2016, mainly from US operations A comprehensive arr
Slide 18: A Transaction Offering Major Benefits for Both Main Tape and CPF
A Transaction Offering Major Benefits for Both Main Tape and CPF In Line With Forecasts A methodical integration process enabling Main Tape to transition to Chargeurs' world-class manufacturing standards An integration process managed with the same rigor and attention to detail as the acquisition
Slide 19: Qualitative and highly targeted acquisitions in the worldwide market for film laminators
Qualitative and highly targeted acquisitions in the worldwide market for film laminators Customers of Chargeurs Protective Films use so-called laminators to apply films to their products (glass, metal, plastic, etc.) Chargeurs Protective Films has just completed two operations in the laminator m
Slide 20: A Powerful & Effective Management Model
A Powerful & Effective Management Model Chargeurs leverages multicultural worldwide management teams A worldwide transformation management Implementation of Chargeurs Business Standards Monitoring of high impact projects with dedicated team (Chargeurs Business Solution) Supporting of key devel
Slide 21: Benefits From Being Chargeurs' Shareholders
Benefits From Being Chargeurs’ Shareholders Accessing, Leveraging and Materializing Accessing to a long term distinctive industrial niche market growth and performing strategy Accessing to more than 40 macroeconomic business cycles thanks to worldwide presence Leveraging day to day strong comm
Slide 22: A Strong & Rewarding Mutual Trust with Stakeholders
A Strong & Rewarding Mutual Trust with Stakeholders CHARGEURS We Deliver MUTUAL TRUST We Expect Innovative reliable & Efficient Very long term relationship products and services Our CUSTOMERS Continuous profitable business Worldwide competitive availability opportunities Respectful care
Slide 23: 2016: An Excellent Performance in a Volatile Macro-Economic Environment
2016: An Excellent Performance 3 in a Volatile Macro-Economic Environment Investors Presentation – April 2017 ― 23
Slide 24: Sharply Higher Profits in 2016
Sharply Higher Profits in 2016 A new dimension Revenue EBITDA Recurring Operating Profit +1 .5% +4.3% 506.4 +21 .1 % 498.7 +26 .7 % +27 .1 % 478.3 48.8 +33.6% 40.3 9.6% 38.9 31.8 8.1% 30.6 7.7% 6.6% 22.9 6.1% 4.8% €m €m €m 2014 2015 2016 2014 2015 2016 2014 2015 2016 Attributable net profit Cash flo
Slide 25: Double-digit EBITDA Growth Across All of the Group's Businesses
Double-digit EBITDA Growth Across All of the Group's Businesses Group Protective Films Fashion Technologies Technical Substrates Luxury Materials like-for-like growth like-for-like growth like- for- like growth like-for-like growth like-for-like growth 5.1% 6.5% 0.1% 21.2% 6.8% 99.5 498.7 506.4 250.
Slide 26: Profitable Revenue Growth
Profitable Revenue Growth Revenue bridge (€m) Recurring operating profit bridge (€m) 498.7 +21.0 +4.6 506,4 -6.8 -11.1 +5.1% organic +9.6 38.9 30.6 +3.9 -1.2 -4.0 +31.0% organic 2015 Scope Currency Volume Price/Mix 2016 2015 Scope Currency Other costs Volume Price/Mix 2016 Main effects on revenue Ma
Slide 27: Successful Implementation of the Performance Plan
Successful Implementation of the Performance Plan Administrative expenses & other fixed costs Raw 23% materials 30% 100% complete, €5.6m in Distribution EBITDA costs 12% gains Production costs 35% Investors Presentation – April 2017 ― 27
Slide 28: Chargeurs Protective Films
Chargeurs Protective Films CPF « The leading innovative coating solutions » Protecting numerous, constantly evolving, technical surfaces in the construction, household appliances, automotive & electronics industries Innovation in products (e.g., fiber laser) and processes (e.g., machine coating)
Slide 29: A Market Leader Dedicated to Customer Service
CHARGEURS PROTECTIVE FILMS A Market Leader Dedicated to Customer Service An expert manufacturer of self-adhesive plastic films used to protect surfaces at every stage of the transformation, handling, transportation and fitting process A comprehensive range of products developed by leveraging exper
Slide 30: Financial Highlights
CHARGEURS PROTECTIVE FILMS Financial Highlights Over €250m in revenue and 150-bps increase in EBITDA margin (in euro millions) 2016 2015 Change Revenue 250.3 227.2 +23.1 +10.2% Like-for-like change +6.5% EBITDA 33.2 26.8 +6.4 +23.9% As a % of revenue 13.3% 11.8% Recurring operating profit 28.0 21.8
Slide 31: Chargeurs Fashion Technologies
CFT Chargeurs Fashion Technologies « IN’SIDE FASHION » Present in the products of over 1,600 leading brands in the luxury, bespoke and fast-fashion segments Innovation: interlining fabric made from recycled polyester yarn (Eco’In) Environmentally responsible products: 80% of products are certi
Slide 32: Positioned Competitively As One Of The Top Two Interlining Manufacturers
CHARGEURS Positioned Competitively As One Of The Top Two FASHION TECHNOLOGIES Interlining Manufacturers 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 main
Slide 33: Financial Highlights
CHARGEURS FASHION TECHNOLOGIES Financial Highlights Sharply improved operating performance: EBITDA margin up 280 bps and recurring operating profit up 45% (in euro millions) 2016 2015 Change Revenue 132.0 157.5 -25.5 -16.2% Like-for-like change +0.1% EBITDA 11.7 9.6 +2.1 +21.9% As a % of revenue 8.9
Slide 34: Chargeurs Technical Substrates
Chargeurs Technical Substrates CTS An industrial champion A strong innovation culture embedded in the Group's business model: Development of EstoMpe®, a coated fabric that selectively filters electromagnetic waves (GSM, WiFi) Capacity increases to offer customers innovative solutions with a 5-
Slide 35: An Industrial Champion
CHARGEURS 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 Textile two specialty areas – fabrics and chemicals – and its passion for i
Slide 36: Financial Highlights
CHARGEURS TECHNICAL SUBSTRATES Financial Highlights Successful 5-meter width coating line and product innovations (in euro millions) 2016 2015 Change Revenue 24.6 20.3 +4.3 +21.2% Like-for-like change +21.2% EBITDA 4.7 4.1 +0.6 +14.6% As a % of revenue 19.1% 20.2% Recurring operating profit 3.8 3.6
Slide 37: Chargeurs Luxury Materials
Chargeurs Luxury Materials CLM ( previously Chargeurs Wool ) Local and global expertise with 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 industrials
Slide 38: From the sheep to the shop
CHARGEURS LUXURY MATERIALS « From the sheep to the shop » An enhanced business model since 2012 Local and global expertise with a strict policy of transparent communications with suppliers and customers 1 4 Expertise deployed to meet the needs of leading brands and Certified farms Weaving/Knitti
Slide 39: Financial Highlights
CHARGEURS LUXURY MATERIALS Financial Highlights A sharper focus on high-end products (in euro millions) 2016 2015 Change Revenue 99.5 93.7 +5.8 +6.2% Like-for-like change +6.8% EBITDA 2.9 2.6 +0.3 +11.5% As a % of revenue 2.9% 2.8% Recurring operating profit 2.9 2.5 +0.4 +16.0% As a % of revenue 2.9
Slide 40: A Robust and Disciplined Financial Culture
A Robust and Disciplined 4 Financial Culture Investors Presentation – April 2017 ― 40
Slide 41: A Robust Balance Sheet
A Robust Balance Sheet A powerful financial position that was further strengthened in 2016 €m Consolidated net cash (excl. factoring) 160 Maturities of debt 140 120 Net cash Net cash €15m loan +23.3 +3.2 repayment in 100 2020 €15m loan repayment in 80 2021 Chargeurs SA 141,2 Chargeurs SA 133,1 97.7
Slide 42: Global Financial Discipline
Global Financial Discipline A global policy to protect against customer risk and country risk Over 90% of revenue generated outside France Credit insurance, wherever this is available (Coface, Euler Hermès) Close monitoring of our assets in countries where a risk exists Increasingly strict
Slide 43: A Dynamic Financial Model
A Dynamic Financial Model An operating culture that promotes cash generation Tight control over the divisions' working capital Continuous optimization of cash generation process Responsive support for newly acquired businesses Cash pool funds made immediately available, in euros or foreign
Slide 44: Consolidated Income Statement
Consolidated Income Statement Strong earnings growth (in euro millions) 2016 2015 Change Comments Revenue 506.4 498.7 7.7 1.5% Up 5.1% like-for-like: improved mix and higher volumes Gross margin 129.9 120.4 9.5 7.9% Improved mix, higher volumes and efficient cost management As a % of revenue 25.7% 2
Slide 45: Statement of Cash Flows
Statement of Cash Flows Cash flow up 24% vs. 2015 (in euro millions) 2016 2015 Comments EBITDA 48.8 40.3 Non-recurring - cash -4.6 -5.4 Restructuring costs of €1.8m and development project costs of €2.0m Finance costs - cash -4.9 -4.2 Increase in financing and maturity extensions & lower average int
Slide 46: Balance Sheet Analysis
Balance Sheet Analysis A very robust balance sheet structure December 31, December 31, (in euro millions) Comments 2016 2015 Intangible assets 92.1 78.5 €10.9m in goodwill on Main Tape acquisition, €2.6m favorable currency effect Property, plant and equipment 61.8 55.9 Acquisitions: Main Tape (€4.5m
Slide 47: Outlook
5 Outlook Investors Presentation – April 2017 ― 47
Slide 48: Q1 2017: Chargeurs steps up the pace of growth again
Q1 2017 : Chargeurs steps up the pace of growth again Chargeurs Protective Films : solid growth dynamics Significant increase in volumes Improvement of the product mix driven by the continuous launch of innovations Contribution of the production capacity of Main Tape in the United States (ac
Slide 49: 2017 Outlook
2017 Outlook Improved operating performance Ongoing innovation-led differentiation Increased financial headroom: liquidity buffer, longer debt maturities Ability to take up attractive acquisition opportunities 2017 guidance: Revenue (excluding Chargeurs Luxury Materials) * + Recurring Oper