Slide 1: Annual General Meeting 2016
Annual General Meeting 2016 18 May 2016
Slide 2: Agenda
Agenda Welcome and Chairman’s presentation 1 Mike Clasper, Chairman Trading update 2 Paul Forman, Group Chief Executive Our approach to innovation 3 Rajiv Sharma, Global CEO Industrial 4 Questions and answers 5 Quorum and Notice of Meeting 6 Resolutions 7 Close of meeting
Slide 3: Housekeeping: Disclaimer
Housekeeping Disclaimer Restricted distribution This presentation is not for release, publication or distribution, in whole or in part, directly or indirectly, in, into or from any jurisdiction where to do so would constitute a violation of the relevant laws or regulations of such jurisdiction (the
Slide 4: Housekeeping
Housekeeping Fire escapes. There are three fire escapes located on the 9th floor. No fire drills are planned for this morning. Fire escape Fire escape We are here Fire escape
Slide 5: Housekeeping
Housekeeping Audiocasting Todays meeting is being audiocast live on our website www.coats.com An audio recording of the meeting will also be available later today
Slide 6: Welcome
Welcome Introductions Present today we have the members from our Board • Mike Clasper CBE, Chairman • Paul Forman, Executive Director and Group Chief Executive • Rajiv Sharma, Executive Director and Global CEO, Industrial • Nicholas Bull, Senior Independent Non-Executive Director • Mike Allen, Indep
Slide 7: Chairman’s presentation
Chairman’s presentation • Board and Governance – New Non Executive Director • Pensions • Delisting • Looking ahead
Slide 8: Agenda
Agenda Welcome and Chairman’s presentation 1 Mike Clasper, Chairman Trading update 2 Paul Forman, Group Chief Executive Our approach to innovation 3 Rajiv Sharma, Global CEO Industrial 4 Questions and answers 5 Quorum and Notice of Meeting 6 Resolutions 7 Close of meeting
Slide 9: World leader with a global presence
World leader with a global presence Coats is the world’s leading industrial thread manufacturer and a major player in the Americas textile crafts market Revenues of US$1.5bn in 2015 – Headquartered in UK; LSE premium listing (COA) Global footprint Employees 19,000 We operate on a global basis employ
Slide 10: Our journey over the past six years..
Our journey over the past six years.. Corporate Commercial Skills and expertise • From one of many investments • From no growth to consistent • From below sector average to global, leading industrial Industrial growth of +5% Employee Engagement score to manufacturer with clear vision upper decile gl
Slide 11: The proof – our financial journey
The proof – our financial journey Progress across a range of key financial measures Adjusted EPS (US cents) Return on capital employed Adjusted free cash flow (US$m) 3.96 33% 88 74 3.08 60 24% 20% 2.17 2013 2014 2015 2013 2014 2015 2013 2014 2015
Slide 12: Looking ahead
Looking ahead Our market goals for 2018 The leading value added partner to The leading the apparel, global player in footwear and Speciality accessories threads and industries yarns The leading textile crafts partner / inspiration source in chosen markets We have a clear and agreed strategy – no cha
Slide 13: Trading update summary
Trading update summary For the period 1 January to 30 April 2016 Group Pensions • Sales stable year-on-year; 5% decline on a reported (actual) • Triennial valuations - Staveley (Dec’13) now agreed with Technical currency basis reflected relative strength of US dollar compared to Provisions deficit o
Slide 14: In summary
In summary Focus on sales, earnings and Strong and defendable free cash flow 5. Cash 1. Global core business growth generative; market leader consistent with robust growth fundamentals 2. Global 4. Key differentiators presence that provide a Experienced Leadership, people and platform for growth and
Slide 15: Agenda
Agenda Welcome and Chairman’s presentation 1 Mike Clasper, Chairman Trading update 2 Paul Forman, Group Chief Executive Our approach to innovation 3 Rajiv Sharma, Global CEO Industrial 4 Questions and answers 5 Quorum and Notice of Meeting 6 Resolutions 7 Close of meeting
Slide 16: Our approach to innovation
Our approach to innovation Rajiv Sharma
Slide 17: Our approach to innovation
Our approach to innovation • Thread is not a commodity • Pioneering history and expertise • Proven track record of delivering innovative, high valued added products • Use virtual network of commercial and academic partners • In-house R&D capabilities embedded at sites; supported by small central tea
Slide 18: Speciality innovation – ‘focused on customer benefits’
Speciality innovation – ‘focused on customer benefits’ FlamePro Ultrabloc • Comfort • Installation • Performance productivity • Cost • Performance Synergex Reinforced • Shorter cycle Thermoplastic times Pipes • Process • Lower flexibility installation cost • Corrosion resistance
Slide 19: Apparel and footwear innovation – ‘focused on customer benefits’
Apparel and footwear innovation – ‘focused on customer benefits’ Magellan Signal • High • Product productivity differentiation • Reusable • Night time visibility Secura Verifi • Fewer • Supply chain customer verification returns • Anti- • Cheaper counterfeiting processing
Slide 20: Digital innovations – ‘focused on customer benefits’
Digital innovations – ‘focused on customer benefits’ Portal Opti Express • Comprehensive • Product • Educational configurator • Interactive • Faster design sampling eComm Digital Seamworks • Fast and • Ordering efficient support • 24/7 • Expert advise
Slide 21: Tracking benefits – 200+ products launched in past 5 years
Tracking benefits – 200+ products launched in past 5 years Signal thread eCommerce Coats Ultrabloc • Sales increased in 2015 • Delivering savings in sales and • Sales increased from zero to • Introduced by leading A&F brands admin several million $ in three years for new products launched in • +8,50
Slide 22: Thank you
Thank you
Slide 23: Agenda
Agenda Welcome and Chairman’s presentation 1 Mike Clasper, Chairman Trading update 2 Paul Forman, Group Chief Executive Our approach to innovation 3 Rajiv Sharma, Global CEO Industrial 4 Questions and answers 5 Quorum and Notice of Meeting 6 Resolutions 7 Close of meeting
Slide 24: Questions and answers
Questions and answers
Slide 25: Agenda
Agenda Welcome and Chairman’s presentation 1 Mike Clasper, Chairman Trading update 2 Paul Forman, Group Chief Executive Our approach to innovation 3 Rajiv Sharma, Global CEO Industrial 4 Questions and answers 5 Quorum and Notice of Meeting 6 Resolutions 7 Close of meeting
Slide 26: Quorum and Notice of Meeting
Quorum and Notice of Meeting There is a quorum present and we can start this part of the meeting You may wish to follow proceedings by referring to the Notice of Annual General Meeting which was posted on 7 April 2016 On today's agenda there are 17 resolutions – Resolutions 1 to 13 inclusive and 17
Slide 27: Agenda
Agenda Welcome and Chairman’s presentation 1 Mike Clasper, Chairman Trading update 2 Paul Forman, Group Chief Executive Our approach to innovation 3 Rajiv Sharma, Global CEO Industrial 4 Questions and answers 5 Quorum and Notice of Meeting 6 Resolutions 7 Close of meeting
Slide 28: Resolutions
Resolutions Procedure On each resolution the voting will be by way of show of hands On a vote by way of show of hands, each shareholder present in person has one vote Validly appointed proxies present also have one vote on a show of hands Proxy holders who have been instructed to vote different ways
Slide 29: Resolution 1
Resolution 1 Ordinary Resolution To receive the Accounts and Reports of the Directors and the Auditor for the year ended 31 December 2015 Total proxy votes cast Total proxy Total proxy Proxy votes Resolution as % of issued share votes for votes against withheld capital Receipt of 1 980,831,064 100%
Slide 30: Resolution 2
Resolution 2 Ordinary Resolution To approve the Directors’ Remuneration Report (other than the Directors’ remuneration policy) for year ended 31 December 2015 Total proxy Total proxy Total proxy votes cast as Proxy votes Resolution votes for votes against % of issued share capital withheld Approval
Slide 31: Resolutions 3 to 10: Re-election of Directors
Resolutions 3 to 10: Re-election of Directors Resolutions 3 to 10 deal with the re-election of the Directors In accordance with the provision of the UK Corporate Governance Code and the Company’s Articles of Association, all Directors are submitting themselves for re-election A summary of the skills
Slide 32: Resolution 3
Resolution 3 Ordinary Resolution To re-elect Mike Allen as a Director Total proxy Total proxy Total proxy votes cast as Proxy votes Resolution votes for votes against % of issued share capital withheld To re-elect 3 980,067,344 99.97% 249,843 0.03% 69.69 595,748 Mike Allen as a Director Resolution p
Slide 33: Resolution 4
Resolution 4 Ordinary Resolution To re-elect Ruth Anderson as a Director Total proxy Total proxy Total proxy votes cast as Proxy votes Resolution votes for votes against % of issued share capital withheld To re-elect 4 980,147,036 99.98% 161,295 0.02% 69.69% 604,345 Ruth Anderson as a Director Resol
Slide 34: Resolution 5
Resolution 5 Ordinary Resolution To re-elect Nicholas Bull as a Director Total proxy Total proxy Total proxy votes cast as Proxy votes Resolution votes for votes against % of issued share capital withheld To re-elect 5 980,144,733 99.98% 160,270 0.02% 69.69% 607,673 Nicholas Bull as a Director Resol
Slide 35: Resolution 6
Resolution 6 Ordinary Resolution To re-elect Mike Clasper as a Director Total proxy Total proxy Total proxy votes cast as Proxy votes Resolution votes for votes against % of issued share capital withheld To re-elect 6 980,138,792 99.98% 199,855 0.02% 69.69% 574,029 Mike Clasper as a Director Resolut
Slide 36: Resolution 7
Resolution 7 Ordinary Resolution To re-elect Paul Forman as a Director Total proxy Total proxy Total proxy votes cast as Proxy votes Resolution votes for votes against % of issued share capital withheld To re-elect 7 980,177,710 99.98% 160,943 0.02% 69.69% 574,023 Paul Forman as a Director Resolutio
Slide 37: Resolution 8
Resolution 8 Ordinary Resolution To re-elect David Gosnell as a Director Total proxy Total proxy Total proxy votes cast as Proxy votes Resolution votes for votes against % of issued share capital withheld To re-elect 8 980,138,904 99.98% 187,321 0.02% 69.69% 586,710 David Gosnell as a Director Resol
Slide 38: Resolution 9
Resolution 9 Ordinary Resolution To re-elect Alan Rosling as a Director Total proxy Total proxy Total proxy votes cast as Proxy votes Resolution votes for votes against % of issued share capital withheld To re-elect 9 980,307,287 99.98% 209,435 0.02% 69.69% 605,648 Alan Rosling as a Director Resolut
Slide 39: Resolution 10
Resolution 10 Ordinary Resolution To re-elect Rajiv Sharma as a Director Total proxy Total proxy Total proxy votes cast as Proxy votes Resolution votes for votes against % of issued share capital withheld To re-elect 10 979,897,356 99.96% 393,291 0.04% 69.69% 622,288 Rajiv Sharma as a Director Resol
Slide 40: Resolutions 11 and 12: Auditors
Resolutions 11 and 12: Auditors In accordance with UK Company Law, it is necessary for the shareholders to re-appoint the auditors of the Company and to authorise the Directors to fix their remuneration Resolutions 11 and 12 relate to this
Slide 41: Resolution 11
Resolution 11 Ordinary Resolution To reappoint Deloitte LLP as auditors of the Company to hold office until the conclusion of the next general meeting at which accounts are laid before the Company Total proxy Total proxy Total proxy votes cast as Proxy votes Resolution votes for votes against % of i
Slide 42: Resolution 12
Resolution 12 Ordinary Resolution To authorise the Directors to fix the remuneration of the auditors Total proxy Total proxy Total proxy votes cast as Proxy votes Resolution votes for votes against % of issued share capital withheld Re-appointment 12 980,213,600 99.96% 403,782 0.04% 69.69% 294,784 o
Slide 43: Resolutions 13 to 14: Share capital
Resolutions 13 to 14: Share capital The next Resolutions, 13 to 14, deal with the Company's share capital The full wording of these Resolutions is set out in the Notice of the Meeting along with an explanation of why they are being proposed
Slide 44: Resolution 13
Resolution 13 Ordinary Resolution To authorise the Directors generally to allot relevant securities. Total proxy Total proxy Total proxy votes cast as Proxy votes Resolution votes for votes against % of issued share capital withheld Authority to allot 13 979,430,586 99.93% 681,626 0.07% 69.69% 800,7
Slide 45: Resolution 14
Resolution 14 Special Resolution To disapply pre-emption provisions Total proxy Total proxy Total proxy votes cast as Proxy votes Resolution votes for votes against % of issued share capital withheld Disapplication of 14 979,490,049 99.94% 633,550 0.06% 69.69% 789,336 pre-emption provisions Resoluti
Slide 46: Resolution 15
Resolution 15 Special Resolution To authorise the Company generally to purchase its own shares Total proxy Total proxy Total proxy votes cast as Proxy votes Resolution votes for votes against % of issued share capital withheld Authority to purchase own 15 980,597,939 99.98% 227,115 0.02% 69.69% 87,6
Slide 47: Resolution 16
Resolution 16 Special Resolution That a general meeting, other than an Annual General Meeting, may be called on not less than 14 clear days’ notice Total proxy Total proxy Total proxy votes cast as Proxy votes Resolution votes for votes against % of issued share capital withheld Authority to call ge
Slide 48: Resolution 17
Resolution 17 Ordinary Resolution To approve the delisting from New Zealand Stock Exchange (NZX) Total proxy Total proxy Total proxy votes cast as Proxy votes Resolution votes for votes against % of issued share capital withheld Approval to the 17 977,755,912 99.68% 3,110,085 0.32% 69.69% 46,679 del
Slide 49: Results of the Annual General Meeting 2016 (‘AGM’)
Results of the Annual General Meeting 2016 (‘AGM’) Coats announces that at the AGM, held in London, United Kingdom on 18 May 2016, all the resolutions put to the meeting were duly passed by way of a show of hands by the requisite majority. The following table shows the proxy votes cast on each resol
Slide 50: Agenda
Agenda Welcome and Chairman’s presentation 1 Mike Clasper, Chairman Trading update 2 Paul Forman, Group Chief Executive Our approach to innovation 3 Rajiv Sharma, Global CEO Industrial 4 Questions and answers 5 Quorum and Notice of Meeting 6 Resolutions 7 Close of meeting
Slide 51: Close of meeting
Close of meeting
Slide 52: Thank you
Thank you