Slide 1: First-half 2020 results
SOLIDARITY & EXCELLENCE First-half 2020 results @2018 Arial Innovations
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements relating to the business, results and financial performance of the Chargeurs Group. Such forward-looking statements are based on assumptions that are currently considered reasonable but which are dependent on external factors such a
Slide 3: First-Half 2020 Results Presentation
Sept. 10, 2020 First-Half 2020 Results Presentation SOLIDARITY & EXCELLENCE
Slide 4: Giving our all at the peak of the crisis
Giving our all at the peak of the crisis 4
Slide 5: Contents
Contents 01 02 03 INTRODUCTION – BUSINESS AND FINANCIAL MID-TERM OUTLOOK STRATEGY REVIEW
Slide 6: Introduction – Strategy
01 Introduction – Strategy Michaël Fribourg – Chairman and CEO
Slide 7: Chargeurs: a global leader in niche industrial markets
Chargeurs: a global leader in niche industrial markets OUR To make Chargeurs a global champion in segments with very high potential for value creation: AMBITION protection for premium materials, fashion and luxury, visitor experience, and healthcare Chargeurs Protective Films Chargeurs PCC Fashion C
Slide 8: Chargeurs, a committed industry leader that invests in its territories
Chargeurs, a committed industry leader that invests in its territories As part of its Game Changer program, since 2015 Chargeurs has invested over €90 million in making its businesses world leaders in their field, in constantly enhancing their performance and in strengthening its key territories The
Slide 9: Chargeurs leads the way: solidarity & support at the height of the crisis
Chargeurs leads the way: solidarity & support at the height of the crisis DONATIONS TO DONATIONS TO THE HELP AND SUPPORT FOR INVESTMENTS FOR HEALTHCARE MOST VULNERABLE OUR EMPLOYEES HEALTHCARE WORKERS INDEPENDENCE ◆ Protecting our employees' health ◆ Maintaining jobs at the peak of the crisis ◆ Hand
Slide 10: Chargeurs demonstrated the strength and agility of its business model
Chargeurs demonstrated the strength and agility of its business model in a tough operating environment Strong resilience Creation of a new An even more solid of core businesses, division that is a leader financial structure which were profitable in PPE – Chargeurs overall Healthcare Solutions Divers
Slide 11: Long-standing businesses remained profitable despite the crisis
Buoyed by the Game Changer program, our long-standing businesses remained profitable despite the unprecedented crisis ROP Investments that enriched Exemplary responsiveness H1 2020 our business model in extreme circumstances ✓ Excellent resistance thanks to a premium positioning and Chargeurs ✓ Prod
Slide 12: Chargeurs Healthcare Solutions: successful creation of a long-lasting business
Chargeurs Healthcare Solutions: successful creation of a long-lasting business, that reflects the Group’s entrepreneurial mindset Proprietary expertise A distinctive Quality & A totally stand-alone Committed and talented and technologies Logistics management model production base people ✓ Knitting a
Slide 13: CHS set up game-changing solutions in the middle of a severe health crisis
CHS was able to set up a range of game-changing solutions in the middle of a severe health crisis Outstanding industrial and logistics engineering in a context of unprecedented global lockdowns CONTEXT Worldwide shortage of personal protective equipment (PPE) for healthcare and other workers Global
Slide 14: Global mobilization
Global mobilization PPE representing the equivalent volume of 28 Boeing Close to 2,500 hours of quality controls performed by our teams worldwide 747s, delivered in 3 months Total = 2,466 hours of quality controls 2 800,00 30,0 Total de 28 boeing 747 livrés 25,0 2 300,00 20,0 1 800,00 15,0 1 300,00
Slide 15: Lainière Santé: a brand well known for personal protective equipment
Lainière SantéTM: a brand already well known for personal protective equipment A BtoB & BtoC offering B2B distribution: B2C distribution: Major public and private E-commerce platform: organizations lainiere-sante.com Large international accounts Partnership with SMEs, VSEs tobacconists An innovative
Slide 16: Chargeurs: an entrepreneurial champion that grew even stronger in 2020
Chargeurs: an entrepreneurial champion that grew even stronger in 2020 A unique business model ◆ An entrepreneurial and responsible approach An enlarged, diversified and ➢ A global leader in niche markets A solid balance-sheet structure balanced business portfolio ➢ Strict operational and financial
Slide 17: From Game Changer to the Leap Forward 2025 program
From the success of the Game Changer Program to the possibilities of the future strategic program – “Leap Forward 2025” Having successfully implemented its value-creation strategy from 2015 through 2020, Chargeurs is now preparing a new-generation strategic program to deepen its success in high valu
Slide 18: Business and Financial Review
02 Business and Financial Review Olivier Buquen – Group Chief Financial Officer
Slide 19: Strong sales growth in H1 2020 fueled by CHS in Europe
Strong sales growth in H1 2020 fueled by CHS in Europe Major contribution from Europe and a balanced Outstanding performance by Chargeurs Healthcare showing from Asia and the Americas Solutions and a resilient showing by the Group’s long-standing businesses €m €m 519 519 77 Asia 79 Americas 254 CHS
Slide 20: Chargeurs Protective Films
Chargeurs Protective Films A business that stayed profitable despite the slump in the world economy
Slide 21: Robust profitability for CPF thanks to depth of offering and service quality
Robust profitability for CPF thanks to the depth of its offering and high service quality Only a moderate contraction in revenue, proving the business’s resilience in an exceptionally difficult operating environment ◆ Good Q1 with sales up 2.5%. Q2 impacted by lower sales volumes and a negative pric
Slide 22: Solid core business, geographic expansion, new sectors and green offensive
A solid core business, geographic expansion, openings in new sectors, and a green offensive, all offering very promising growth prospects for CPF ◆ Innovation to add functionalities to protective films ◆ Transformation of the business to move towards a more eco-responsible approach for both producti
Slide 23: Chargeurs PCC Fashion Technologies
Chargeurs PCC Fashion Technologies Offensive commercial strategy to get through the crisis
Slide 24: CFT-PCC is leveraging its expertise to safeguard profitability
CFT-PCC is leveraging its expertise to safeguard its profitability in a lackluster market H1 2020 Q2 2020 Q1 2020 H1 2020 H1 2019 vs vs vs In € millions H1 2019 Q2 2019 Q1 2019 R evenue 65.5 107.7 -39.2% -62.9% -14.7% Like-for-like change -38.5% -61.8% -14.5% EBITDA 5.2 11.4 as a % of revenue 7.9% 1
Slide 25: Many new openings for interlinings in fashion and new sectors
Many new openings for interlinings in the fashion industry and whole new sectors New opportunities in the traditional apparel sector, driven by CFT-PCC’s innovations: Functionalities added to interlinings: anti-bacterial and anti-odor properties, etc. smart textiles Strong growth for “digital native
Slide 26: Chargeurs Luxury Materials
Chargeurs Luxury Materials A green and premium positioning to stand out from the competition
Slide 27: CLM's performance impacted by record-low wool prices
CLM’s performance impacted by record-low wool prices Performance heavily weighed down by the health crisis A good start to the year but then sales volumes heavily hit by the lockdown measures imposed as of March Decrease in wool prices to record lows (down 35.3% at end-June 2020 vs end-June 2019). N
Slide 28: High-end products resolutely focused on environmental protection
High-end products resolutely focused on environmental protection Development of Nativa – the Group’s label that guarantees the quality and traceability of wool fibers throughout the value chain Added value for brands Consumer demand Commercial synergies with CFT-PCC Differentiation through a focus o
Slide 29: Chargeurs Museum Solutions
Chargeurs Museum Solutions Creation of a global champion in a fast-changing and very high-potential market
Slide 30: Creation of CMS – a champion in museum visitor experience services
Creation of CMS – a champion in museum visitor experience services D&P and Hypsos – two strategic acquisitions consolidated in H1 Located in the Washington, D.C. Based in Amsterdam, Hypsos has metropolitan area, D&P is the U.S's been a world-renowned specialist leading specialist provider of in exhi
Slide 31: CMS is positioned to capitalize on expansion in museum services
CMS is ideally positioned to capitalize on the strong expansion in museum services worldwide The sector’s growth is being propelled by increasing investments from countries that are using museums as a vector for raising their regional and international profiles. Chargeurs Museum Solutions’ unique in
Slide 32: CMS's sales dynamic and strong product offering bode well
CMS’s sales dynamic and strong product offering bode well for the division H1 2020 Q2 2020 Q1 2020 H1 2020 H1 2019 vs vs vs In € millions H1 2019 Q2 2019 Q1 2019 R evenue 25.0 18.0 +38.9% +38.4% +39.5% Like-for-like change -46.7% -79.8% -6.2% EBITDA 2.1 2.3 as a % of revenue 8.4% 12.8% R ecurring op
Slide 33: Chargeurs Healthcare Solutions
Chargeurs Healthcare Solutions A new leader in value-added PPE
Slide 34: CHS: an outstanding performance led by exceptional needs
CHS: an outstanding performance led by exceptional needs and a recognized brand H1 2020 H1 2019 In € millions R evenue 253.9 - Like-for-like change EBITDA 55.4 - as a % of revenue 21.8% R ecurring operating profit 54.3 - as a % of revenue 21.4% ◆ Exceptionally high organic sales, with CHS making a k
Slide 35: CHS is ready to produce and manage new PPE inventory needs
CHS is ready to produce and manage new PPE inventory needs worldwide ◆ Global, recurring and growing needs for healthcare products in both the public and private sectors ◆ Chargeurs Healthcare Solutions has proprietary expertise and technologies ◆ Manufacturing capacity enabling CHS to independently
Slide 36: Financial Review
Financial Review
Slide 37: Record increase in profit for the period
Record increase in profit for the period In € millions H1 2020 H1 2019 Change Comments R evenue 518.5 326.1 +192.4 54.4% like-for-like growth; €253.9m generated by CHS . CPF held up well Gross profit 131.8 85.0 +46.8 Impact of (i) the business mix on the overall Group total and (ii) the decrease in
Slide 38: Strong like-for-like growth in revenue and ROP
Strong like-for-like growth in revenue and ROP Revenue (€m) Recurring operating profit (€m) 179 -1.5 518.5 42.8 -3.5 -5.4 59.5 15.4 -0.4 326.1 Like-for-like growth: 2.7 0.2 22.7 54.4% Like-for-like growth: 149.5% H1 2019 Scope Currency Volumes Price/mix H1 2020 H1 2019 Scope Currency Volumes Price/m
Slide 39: Very strong cash flow generation: €71m
Very strong cash flow generation: €71m In € millions H1 2020 H1 2019 Comments EBITDA 71.2 32.5 Up 119%: impact of strong revenue growth and strict cost control Non-recurring – cash (4.1) (4.2) Non-recurring costs related to acquisitions and adaptation plans Finance costs – cash (5.9) (5.3) Income ta
Slide 40: An even stronger balance sheet
An even stronger balance sheet June 30, Dec. 31, In € millions Comments 2020 2019 Intangible assets 240.0 173.1 Increase in goodwill and intangible assets resulting from acquisitions in H1 2020 R ight-of-use assets 37.3 25.8 Increase related to acquisitions in H1 2020 Property, plant and equipment 8
Slide 41: Mid-term outlook
03 Mid-term outlook Michaël Fribourg – Chairman and CEO
Slide 42: 2015-2020: accelerating Chargeurs' modernization – a strong value creator
2015-2020: accelerating Chargeurs’ modernization – a strong value creator A committed Group Revenue (in €m) Recurring operating profit (€m) CAGR since 2015 > 8.5% CAGR since 2015 > 14.2% >750 >60 499 31 ✓ 7% of revenue generated through sustainable products ✓ 11% reduction in water use since 2017 20
Slide 43: A reinforced management team to accompany Chargeurs' change in scale
A reinforced management team to accompany Chargeurs’ change in scale Promotions and Appointments Audrey Petit has been promoted to Executive Vice President, in charge of Group Strategy and Diversification. Gustave Gauquelin will be joining the Group on October 1, as Senior Vice President, Global Per
Slide 44: Looking beyond the crisis, new objectives for 2025
Looking beyond the crisis, Chargeurs is in a position to set new objectives for 2025 Chargeurs is reviewing its ROP guidance upwards but very prudently in view of the uncertainty related to the Covid-19 crisis: Revenue > €750m ROP > €60m Priority given to like-for-like growth in an extremely volatil
Slide 45: CHARGEURS
* oe CHARGEURS High Emotion Technology®