Slide 1: 2018 Annual Results Presentation
2018 Annual Results Presentation March 12, 2019
Slide 2: Contents
CONTENTS 1. Summary 2. The Game Changer program in action 3. The Iconic Champions program in action 4. Business review 5. Financial review 6. Outlook 7. Appendices Chargeurs - 2018 Annual Results Presentation - March 12, 2019 ―2
Slide 3: Summary
1 Summary Michaël Fribourg Chairman & Chief Executive Officer Chargeurs - 2018 Annual Results Presentation - March 12, 2019 ―3
Slide 4: Successful upscaling since 2015 through strict operational excellence
Successful upscaling since 2015, achieved thanks to a strict model of operational excellence Chargeurs is reaping the rewards of a committed and long-term strategy of excellence A clear vision, Ongoing and tightly-controlled Quantitative & qualitative with new management systems implementation value
Slide 5: 2018: successful upscaling thanks to the Game Changer program
2018: successful upscaling thanks to the Game Changer program ◼ Another sharp increase in performance ⚫ Full-year revenue up 7.6% year-on-year, or €619m including the full-year contribution of companies acquired in 2018 ⚫ EBITDA > 10% of revenue thanks to successful Annual Productivity Plan ⚫ Recurr
Slide 6: Another sharp increase in performance in 2018
Another sharp increase in performance in 2018 Robust 240-bp rise in ROP(1) margin since 2015 Revenue EBITDA Recurring operating profit(1) 573.3 59.8 49.0 54.6 10.4% 44.4 8.5% 48.8 10.2% 38.9 8.3% 40.3 9.6% 7.7% 533.0 30.6 8.1% 6.1% 506.4 498.7 m€ m€ m€ 2015 2016 2017 2018 2015 2016 2017 2018 2015 20
Slide 7: 2019: Chargeurs intends to change the game in all of its businesses
2019: Chargeurs intends to change the game in all of its businesses ◼ Our analysis of the market and economic environment ⚫ An ever-more economic and geopolitical volatile environment, requiring a prudent approach: the USA and Asia still performing well, but a more mixed picture for Europe ⚫ Our pre
Slide 8: Game Changer – the Group's performance acceleration plan
Game Changer – the Group's performance acceleration plan Objective: SMART & ADVANCED MANUFACTURING Double profitable revenue by Improving the performance of 2021 our production assets Reducing our production costs TALENT Reducing our MANAGEMENT → Aimed at speeding up the non-quality costs Implementi
Slide 9: Acceleration of our acquisitions strategy: Leach and PCC Interlining
Acceleration of our acquisitions strategy: integration of Leach and PCC Interlining Since 2015, Chargeurs has carried out targeted acquisitions, creating champions in high value-added niche markets An ongoing and value-creating acquisition strategy Still to come: > Game-changing “bolt- on” acquisiti
Slide 10: Chargeurs 2021: an iconic champion in high value-added niche markets
Chargeurs 2021: an iconic champion in high value - added niche markets ◼ Target confirmed of topping €1bn in profitable revenue Steady rise in margins thanks to the Growth track for €1bn revenue target product mix and economies of scale Our ambition Premiumization and increase in margins 1,000 1,000
Slide 11: The Game Changer program in action
The Game Changer program 2 in action Joëlle Fabre-Hoffmeister Secretary General & Group Chief Compliance Officer Chargeurs - 2018 Annual Results Presentation - March 12, 2019 ― 11
Slide 12: Success of the Game Changer plan
Success of the “Game Changer” plan Game Changer: an operating performance acceleration plan that advocates daily discipline in the creation of long-term value and that is based on 4 key areas: Smart & Advanced Sales & Marketing Talent Management Manufacturing Distinctive Innovation 18 months after
Slide 13: Game Changer plan: daily discipline to create long-term value
Game Changer plan: daily discipline to create long-term value Game Changer – our major achievements Sales and Marketing • Development of bundled “products & services” offerings ▪ “Films + Machines” at CPF thanks to the acquisitions of Somerra, Omma and Walco ▪ “Textiles + Lightboxes” at CTS followin
Slide 14: Game Changer plan: daily discipline to create long-term value
Game Changer plan: daily discipline to create long-term value Game Changer – our major achievements Smart & Advanced Manufacturing • Optimization of supplier and customer logistics across all businesses ▪ Re-engineering raw materials and logistics flows ▪ Automating new production phases • Investing
Slide 15: Non-financial drivers underpinning our value creation strategy
Non-financial drivers underpinning our value creation strategy Chargeurs - 2018 Annual Results Presentation - March 12, 2019 ― 15
Slide 16: The Iconic Champions program in action
The Iconic Champions program 3 in action Matthieu Balescut Executive Vice President, Business Development & Strategy Chargeurs - 2018 Annual Results Presentation - March 12, 2019 ― 16
Slide 17: Launch of the Iconic Champions plan: continued premiumization
Launch of the Iconic Champions plan: continued premiumization From "Iconic champions" “the best-offer culture” - #1 brand worldwide to - A go-to, indispensable partner - An unrivaled partner “the must-have strategy” - Superior emotional appeal - Designer of innovations - Additional success and value
Slide 18: Business Review
4 Business Review Olivier BUQUEN Chief Financial Officer Chargeurs - 2018 Annual Results Presentation - March 12, 2019 ― 18
Slide 19: The Chargeurs Group at a Glance
The Chargeurs Group at a Glance Worldwide industrial Leadership positions A robust financial excellence in niche markets profile Serving over 90 countries Protective Films Success of the strategic Game Changer plan confirmed in 2018 Geographic breakdown of 2018 revenue No. 1 worldwide in quality sur
Slide 20: 2018: an excellent year with further acceleration in performance
2018: an excellent year with further acceleration in performance Very robust growth in the Group’s operating performance: 8.5% operating margin in 2018, representing a 240-bp increase in ROP(1) margin since 2015 Protective Films Fashion Technologies Technical Substrates Luxury Materials 281.0 283.3
Slide 21: Chargeurs Protective Films
Chargeurs Protective Films CPF "The leading innovative coating solutions" 2018 Highlights ◼ Preparation for the launch of a techno-smart 4.0 production line in Italy, scheduled for mid-2019 ◼ Launch of Deep Blue, a new range of phthalate-free and PVC-free environmentally-friendly films ◼ Acceleratio
Slide 22: Key figures
CHARGEURS PROTECTIVE FILMS Key figures Record-high revenue in 2018 and preparations for stepping up the premiumization of the solutions offering in 2019 Twelve months Change 18/17 Change (2) 18/16 In euro millions 2018 2017 2016 reported like-for-like Revenue 283.3 281.0 250.3 +0.8% +0.0% +13.2% EBI
Slide 23: Chargeurs PCC Fashion Technologies
Chargeurs PCC Fashion Technologies CFT "IN’SIDE FASHION" 2018 Highlights ◼ Game-changing acquisition of the USA and Asia-based PCC Interlining, bringing together two entities with solid fundamentals to create long-term value ◼ Global leadership strengthened, notably in terms of nomination ◼ Accelera
Slide 24: Key figures
CHARGEURS PCC FASHION TECHNOLOGIES Key figures An excellent operating performance, with a 300-bp increase in ROP margin in 2018 Twelve months Change 18/17 Change (2) 18/16 In euro millions 2018 2017 2016 reported like-for-like Revenue 161.1 131.2 132.0 +22.8% +6.9% +22.0% EBITDA 17.9 11.3 11.7 +58.4
Slide 25: Chargeurs Technical Substrates
CTS Chargeurs Technical Substrates An industrial champion 2018 Highlights ◼ Integration of Leach, the leading UK producer of high-end visual communication solutions, and creation of a comprehensive solution offering ◼ Sublimis voted “product of the year” at the SGIA Expo printing technology trade sh
Slide 26: Key figures
CHARGEURS TECHNICAL SUBSTRATES Key figures Acceleration of growth capex to help top the €100m revenue mark by 2021 Twelve months Change 18/17 Change (2) 18/16 In euro millions 2018 2017 2016 reported like-for-like Revenue 30.7 25.8 24.6 +19.0% -5.4% +24.8% EBITDA 5.1 4.9 4.7 +4.1% +8.5% as a % of re
Slide 27: Chargeurs Luxury Materials
Chargeurs Luxury Materials CLM "From the sheep to the shop" 2018 Highlights ◼ Accelerated premiumization of the product range thanks to the launch of the digital brand, Amédée 1851, specialized in scarves and squares made of premium-grade fibers ◼ Integration of RWS (Responsible Wool Standard) certi
Slide 28: Key figures
CHARGEURS LUXURY MATERIALS Key figures Successful premiumization strategy Twelve months Change 18/17 Change (2) 18/16 In euro millions 2018 2017 2016 reported like-for-like Revenue 98.2 95.0 99.5 +3.4% +6.4% -1.3% EBITDA 2.7 2.6 2.9 +3.8% -6.9% as a % of revenue 2.7% 2.7% 2.9% Recurring operating pr
Slide 29: Financial review
5 Financial review Olivier BUQUEN Chief Financial Officer Chargeurs - 2018 Annual Results Presentation - March 12, 2019 ― 29
Slide 30: Consolidated Income Statement
Consolidated Income Statement Double digit growth in recurring operating profit: + 10.4% In euro millions 2018 2017 Change Comments Revenue 573,3 533,0 +40.3 +7.6% +2.6% like-for-like: premiumization, new improvement in price/mix despite a difficult basis for comparison Gross margin 154,3 141,6 +12.
Slide 31: Profitable revenue growth
Profitable revenue growth Revenue bridge (in €m) Recurring Operating Profit(1) bridge (in €m) 45.3 22.3 573.3 533.0 -19.1 -8.2 6.9 4.9 49.0 44.4 8.5% 2.6% organic -5.2 -0.8 8.3% -1.2 6.5% organic 2017 Scope Currency Volume Price & mix 2018 2017 Scope Currency Volume Price & mix Other costs 2018 Main
Slide 32: Highly successful Annual Productivity Plan
Highly successful Annual Productivity Plan 2018 achievement: €5.7m in cost savings for the full year, with a cash impact (vs. target of €4.6m) Savings on production costs Savings on distribution costs 26% Cost savings generated by the 9% annual productivity plan 5.6 5.7 Savings on 4.6 124 % administ
Slide 33: Statement of Cash Flows
Statement of Cash Flows Further strong cash generation, with resources used in line with the Group’s growth strategy In euro millions 2018 2017 Comments EBITDA 59.8 54.6 Up 9.5% thanks to a better mix; and the productivity plan Non-recurring – cash (7.7) (5.1) Acquisitions and development projects (
Slide 34: Balance Sheet Analysis
Balance Sheet Analysis A very robust balance sheet structure In euro millions Dec. 31, 2018 Dec. 31, 2017 Comments Intangible assets 158.1 88.3 2018 acquisitions: +€41m in goodwill and +€28m in brands Property, plant and equipment 80.7 63.2 Higher capex, reflecting €20m outlay in Nov. 2017 for CPF E
Slide 35: Outlook
6 Outlook Michaël Fribourg Chairman & Chief Executive Officer Chargeurs - 2018 Annual Results Presentation - March 12, 2019 ― 35
Slide 36: Medium- and long-term outlook
Medium- and long-term outlook ◼ 2019 outlook ⚫ Revenue growth ⚫ Higher ROP (before amortization of intangible assets resulting from acquisitions) ⚫ Solid cash generation ⚫ Rollout of the Iconic Champions plan ◼ Ambitious and achievable medium- and long-term objectives ⚫ Target for end-2021: €1bn in
Slide 37: Chargeurs is rolling out its roadmap to top the €1bn revenue mark by 2021
Chargeurs is rolling out its roadmap to top the €1bn revenue mark by 2021 18 months after announcing its target, Chargeurs has: • Fully implemented its roadmap • Confirmed its target of topping the €1 billion revenue mark by end-2021, one year ahead of schedule External 1,000 Revenue growth - Acquis
Slide 38: Appendices
7 Appendices Chargeurs - 2018 Annual Results Presentation - March 12, 2019 ― 38
Slide 39: Strong shareholder value creation
Strong shareholder value creation Shareholder value creation strategy Market capitalization (in €m) +187 % since 2015 Share performance since the change in Chargeurs' governance structure (CAC 40 and SBF 120 ajusted in ligne with Chargeurs' share price) 590 511 €30 367 178 €25 + 178 % 10/30/15 12/31
Slide 40: Glossary
Glossary Glossary ◼ Change based on a comparable scope of consolidation and at constant exchange rates (like-for-like), organic change or internal change for year Y compared with year Y-1 is calculated: ⚫ by applying the average exchange rates for year Y-1 to the period concerned (year, half-year, q
Slide 41: 2019 Investor Calendar
2019 Investor Calendar Monday, May 6, 2019 First-quarter 2019 financial information (before the start of trading) Monday, May 6, 2019 Annual General Meeting Thursday, September 12, 2019 First-half 2019 results (before the start of trading) Thursday, November 14, 2019 Third-quarter 2019 financial Inf