Compagnie Chargeurs Invest · EURONEXT:CRI
Compagnie Chargeurs Invest — Chargeurs — Investor Presentation (November 2017)
49 slides from Compagnie Chargeurs Invest's investor presentation, November 2017
Slide 1: Investor Presentation
Investor Presentation November 2017
Slide 2: Overview
OVERVIEW 1. Summary 2. Our value creation model 3. H1 2017: An excellent first-half performance 4. A robust and disciplined financial culture 5. Outlook Investor Presentation – 2017 ―2
Slide 3: Summary
1 Summary Investor Presentation – 2017 ―3
Slide 4: An excellent first-half performance: robust results
An excellent first-half performance: robust results and a sharp increase in net cash from operating activities Strong revenue growth, higher cash flow and cash generation Revenue EBITDA Recurring operating profit +11.2% +15.0% +15.8% 281.8 253.5 29.1 25.3 10.3% 23.5 10.0% 20.3 8.3% 8.0% €m €m €m H1
Slide 5: Launch of a New Acceleration Plan
An Excellent First-Half Performance: Launch of a New Acceleration Plan An excellent performance that reflects the Group’s capacity and efficiency drive Another period of growth: Recurring operating profit up 15.8% like-for-like Revenue up 5.4% like-for-like to €281.8 million EBITDA up 15.0% li
Slide 6: A New Acceleration Plan: Game Changer
A New Acceleration Plan: Game Changer SMART Objective: AND ADVANCED to accelerate revenue growth, MANUFACTURING with the target of > Improving our assets’ performance > Reducing our production costs doubling profitable revenue > Reducing all non within 5 years quality items TALENT MANAGEMENT SALES &
Slide 7: Our value creation model
2 Our value creation model Investor Presentation – 2017 ―7
Slide 8: 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 70 countries Protective Films Solid financial performance Geographic breakdown of H1 2017 revenue No. 1 worldwide Revenue in temporary surface protection +11.
Slide 9: A Distinctive Long-Term Vision: Achievements and Ambitions
A Distinctive Long-Term Vision: Achievements and Ambitions Chargeurs in 2015: Our achievements Our 5-year A hidden heavyweight, with strong potential from 2015 through 2017 vision High-quality assets with strong Managerial transformation Ever-stronger growth in our end potential markets, fueled by t
Slide 10: Our Value Creation Drivers
Our Value Creation Drivers Product and services innovation Market segmentation Targeted acquisitions Customer Talent proximity management Industrial & logistics excellence Innovative marketing Digital at the heart of our processes Investor Presentation – 2017 ― 10
Slide 11: A Systematic Upgrading of our Added-Value
A Systematic Upgrading of our Added -Value New unique technological coating line for production of highly New implementations to strengthen our already diverse technical films with very high value-added (4.0. Industry) geographical footprint for Protective Films and Fashion Technologies Medium and L
Slide 12: Effectiveness through a Distinctive Human Capital Management Model
Effectiveness through a Distinctive Human Capital Management Model Chargeurs leverages multicultural worldwide management teams A worldwide transformation management Implement Chargeurs Business Standards Support implementation of high impact projects with dedicated team (Chargeurs Business Solu
Slide 13: A Selective Acquisition Strategy
A Selective Acquisition Strategy Our acquisition criteria Consolidating our existing Expanding into businesses related/new businesses • Strengthening our positions in • Leadership position in a high value business segments where we do not have a major presence niche market • Extending our geographic
Slide 14: A Selective Acquisition Strategy
A Selective Acquisition Strategy Our acquisition process Our market knowledge enables us to apply a pre-emptive approach in most cases we can therefore negotiate attractive assets in optimum conditions By effectively using our tax loss carryforwards Transformation we can accelerate our retur
Slide 15: Targeted Acquisitions in Line with Our New External Growth Strategy
Targeted Acquisitions in Line with Our New External Growth Strategy Illustration of our acquisition strategy TRACK RECORD Walco, Somerra Main Tape & Omma • Leadership position extended in • High-quality and highly targeted the growing US market acquisitions • Positions strengthened in the following
Slide 16: 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 17: 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 CUSTOMERS Continuous profitable business Worldwide competitive availability opportunities Respectful care Pass
Slide 18: H1 2017: An excellent first-half performance
3 H1 2017: An excellent first-half performance Investor Presentation – 2017 ― 18
Slide 19: First-Half 2017 Key Figures
First-Half 2017 Key Figures Another strong increase in results 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 +5.4% +8.7% -2.8% +7.8% +7.8% growth growth xxxx x
Slide 20: Chargeurs Protective Films
Chargeurs Protective Films CPF "The leading innovative coating solutions" First-Half 2017 Highlights Development and marketing of Low noise technology products as a solution to the problem of the noise caused when protective films are unrolled (which can reach up to 110 decibels in our customers’
Slide 21: 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 22: Protective Films Key Figures
Chargeurs Protective Films Key Figures Acceleration in like-for-like and acquisition-led growth (€m) H1 2017 H1 2016 Change Revenue 143.3 120.5 +22.8 +18.9% Like-for-like change (%) +8.7% EBITDA 21.4 16.5 +4.9 +29.7% as a % of revenue 14.9% 13.7% Recurring operating profit 18.2 14.0 +4.2 +30.0% as a
Slide 23: Chargeurs Fashion Technologies
CFT Chargeurs Fashion Technologies "IN’SIDE FASHION" First-Half 2017 Highlights A showroom inaugurated in New York Production ramped up at the Ethiopian plant while respecting Chargeurs’ excellence standards Fashion specialists recruited to partner the development of our products Investor Pres
Slide 24: 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 25: Fashion Technologies Key Figures
Chargeurs Fashion Technologies Key Figures Robust performance maintained despite an unfavorable basis of comparison (€m) H1 2017 H1 2016 Change Revenue 67.8 68.9 -1.1 -1.6% Like-for-like change (%) -2.8% EBITDA 5.8 6.5 -0.7 -10.8% as a % of revenue 8.6% 9.4% Recurring operating profit 4.0 4.5 -0.5 -
Slide 26: Chargeurs Technical Substrates
Chargeurs Technical Substrates CTS An industrial champion First-Half 2017 Highlights Patrick Bonnefond appointed as the division’s new CEO New distinctive patents filed: worldwide launch of the Sublimis range expected before H1 2018 Specific sales force created for the division Investor Presen
Slide 27: 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 28: Technical Substrates Key Figures
Chargeurs Technical Substrates Key Figures Sustained robust performance (€m) H1 2017 H1 2016 Change Revenue 12.5 11.6 +0.9 +7.8% Like-for-like change (%) +7.8% EBITDA 2.3 2.3 - - as a % of revenue 18.4% 19.8% Recurring operating profit 1.8 1.8 - - as a % of revenue 14.4% 15.5% A successful start f
Slide 29: Chargeurs Luxury Materials
Chargeurs Luxury Materials CLM "From the sheep to the shop" First-Half 2017 Highlights 1 4 Certified farms Weaving/Knitting Product quality and traceability: procedures being rolled out to our partner combing mills http://lanastrinidad.com 2 5 RWS certification process for partner combing mills
Slide 30: 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 31: Luxury Materials Key Figures
Chargeurs Luxury Materials Key Figures Gradual ramp-up of the new business model (€m) H1 2017 H1 2016 Change Revenue 58.2 52.5 +5.7 +10.9% Like-for-like change (%) +7.8% EBITDA 1.7 1.8 -0.1 -5.6% as a % of revenue 2.9% 3.4% Recurring operating profit 1.7 1.8 -0.1 -5.6% as a % of revenue 2.9% 3.4%
Slide 32: A robust and disciplined financial culture
A robust and disciplined 4 financial culture Investor Presentation – 2017 ― 32
Slide 33: Consolidated Income Statement
Consolidated Income Statement Strong earnings growth (€m) H1 2017 H1 2016 Change Comments Revenue 281.8 253.5 28.3 11.2% Up 5.4% like-for-like: improved mix and higher volumes Gross margin 71.8 65.2 6.6 10.1% Gross margin impacted by a negative currency effect as a % of revenue 25.5% 25.7% EBITDA 29
Slide 34: Recurring Operating Profit That Continues to Grow Faster Than Revenue
Recurring Operating Profit That Continues to Grow Faster Than Revenue Revenue and recurring operating profit bridges Revenue bridge (€m) Recurring operating profit bridge (€m) 10.9 2.7 281.8 12.3 2.4 253.5 5.4% organic 2.5 23.5 2.8 20.3 0.2 -2.1 -0.2 15.8% organic H1 2016 Scope Currency Volume Price
Slide 35: Success of the Annual Productivity Plan
Success of the Annual Productivity Plan 2017 target: €4 million in cost savings for the year Savings on distribution costs 4% Savings on production costs 54% 77% achieved by June 30, 2017, Savings on material i.e. €2.2m in costs EBITDA gains 18% Savings on administrative expenses and other fixed cos
Slide 36: Statement of Cash Flows
Statement of Cash Flows Net cash from operating activities up by a sharp 87.1% (€m) H1 2017 H1 2016 Comments EBITDA 29.1 25.3 Up 15% thanks to improved mix, higher volumes and the productivity plan Non-recurring - cash (2.4) (2.1) H1 2017: impact of acquisitions and departures of Group execs Finance
Slide 37: Balance Sheet Analysis
Balance Sheet Analysis A very robust balance sheet structure (€m) June 30, 2017 Dec. 31, 2016 Comments Intangible assets 86,1 92,1 €5m negative currency effect on goodwill in USD Property, plant and equipment 59,7 61,8 €1.3m negative USD currency effect Investments in equity accounted investees 12,6
Slide 38: A Very Robust Balance Sheet Structure
A Very Robust Balance Sheet Structure Financial headroom further increased in first-half 2017 (€m) 250 Maturity schedule of financing Profile at Dec. 31, 2015 New Euro PP Profile at Dec. 31, 2016 issue Profile at Dec. 31, 2017 200 + €40m 191 Repayment of 187 175 a €15m loan Repayment of 168 in 2020
Slide 39: Outlook
5 Outlook Investor Presentation – 2017 ― 39
Slide 40: Q3 2017: Robust like-for-like growth and a solid end of year in view
Q3 2017: Robust like-for-like growth and a solid end of year in view Nine months Change Third quarter Change like-for- like-for- In euro millions 2017 2016 reported 2017 2016 reported like * like * Protective Films 211.0 187.5 +23.5 +6.3% 67.7 67.0 +0.7 +1.9% Fashion Technologies 98.7 100.3 -1.6 -0.
Slide 41: Outlook
Outlook The Group is standing by its guidance for full-year 2017: Revenue (excluding Chargeurs Luxury Materials)* Recurring operating profit Net cash from operating activities * Based on a comparable scope of consolidation and at constant exchange rates, barring any major global macro-economic eve
Slide 42: Strong Shareholder Value Creation
Strong Shareholder Value Creation Strong value creation for shareholders thanks to enhanced profitability Share performance since the change in Chargeurs’ governance structure (CAC 40 and SBF 120 indices adjusted in line with Chargeurs' share price) Market capitalization (€m) €30 +46% €25 + 194 % 53
Slide 43: Appendices
“1 WORLD OF” NICHE HARKET LENDERS CHARGEURS
Slide 44: Key Figures 2016: An excellent performance in a volatile macro-economic environment
KEY FIGURES 2016: An excellent performance in a volatile macro-economic environment Investor Presentation – 2017 ― 44
Slide 45: Sharply Higher Profits in 2016
Sharply Higher Profits in 2016 A new dimension Revenue +1 .5% EBITDA Recurring Operating Profit +4.3% +21 .1 % 498.7 506.4 +26 .7 % 478.3 +27 .1 % 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 Fl
Slide 46: 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 47: 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 48: 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 49: 2018 Investor Calendar
2018 Investor Calendar January 25, 2018 2017 Annual Revenue (after the close of trading) Chargeurs 1 1 2 , av e n u e K l é b e r 7 5 1 1 6 Pa r i s +33 1 47 04 13 40 co mf i n @ c h a rg eu rs .f r w w w. ch a rg e u rs .f r