Compagnie Chargeurs Invest · EURONEXT:CRI
Compagnie Chargeurs Invest — Chargeurs — Non-Deal Roadshow (October 2019)
46 slides from Compagnie Chargeurs Invest's roadshow presentation, Oct 4, 2019
Slide 1: Investor Presentation: Chargeurs, a pioneer in sustainable transformation of niche industrial markets
INVESTOR PRESENTATION CHARGEURS, A PIONEER IN THE SUSTAINABLE TRANSFORMATION OF OUR NICHE INDUSTRIAL MARKETS October 2019
Slide 2: Summary
SUMMARY Chargeurs – Investor Presentation – 2019 October ―2
Slide 3: Chargeurs is standing firmly by its strategic growth targets (1/3)
Chargeurs is standing firmly by its strategic growth targets in a more volatile environment (1/3) Creating global champions in niche markets with a high value-added, low capital intensity and Our core business strong growth potential ➔ In the space of 4 years, the Group has become no. 1 worldwide in
Slide 4: Chargeurs is standing firmly by its strategic growth targets (2/3)
Chargeurs is standing firmly by its strategic growth targets in a more volatile environment (2/3) ⚫ Increasing operating margins over the long term in all of our businesses by constantly keeping them on a tight rein ⚫ Putting in place a strong strategy aimed at: ▪ Evenly weighting our worldwide cove
Slide 5: Chargeurs is standing firmly by its strategic growth targets (3/3)
Chargeurs is standing firmly by its strategic growth targets in a more volatile environment (3/3) ⚫ Heavy investments to futureproof the Group: ▪ TSC1, acquisitions of PCC and Leach in 2018 ⚫ Regular dividend payments to our shareholders since 2015 Our achievements ⚫ Strategy of capturing growth and
Slide 6: H1 2019 – one of the Group's best-ever first-half performances (1/2)
H1 2019 – one of the Group’s best-ever first-half performances despite the economic environment and a peak in opex and capex (1/2) ⚫ H1 2019: revenue up 13.6%, EBITDA up 6.2% and cash flow up 5.1%; return to like-for-like growth in Q2 2019 ⚫ H1 2019 recurring operating profit of €22.7m – one of the
Slide 7: H1 2019 – one of the Group's best-ever first-half performances (2/2)
H1 2019 – one of the Group’s best-ever first-half performances despite the economic environment and a peak in opex and capex (2/2) ⚫ 9 first-rate acquisitions including Main Tape, CPSM (Asidium, Omma, Game Changer: sequence of investments and their impact on operating margin Ongoing acquisitions Wal
Slide 8: Contents
CONTENTS 1. Chargeurs, a world leader in high value-added niche markets 2. Since 2015: a methodical strategy of growth to achieve €1bn in revenue by 2021 Performance since 2015 3. Performance since 2015 4. A successful acquisition program: > €100 m in additional revenue from value-generating acquisi
Slide 9: Chargeurs, a world leader in high value-added niche markets
CHARGEURS 1 A WORLD LEADER IN HIGH VALUE-ADDED NICHE MARKETS Chargeurs – Investor Presentation – 2019 October ―9
Slide 10: Robust growth and well on track to meet its revenue target
Robust growth and well on track to meet its revenue target AMERICAS EUROPE ASIA WORLDWIDE Leadership positions Industrial IN NICHE MARKETS excellence OF LTM OF LTM OF LTM SERVING OVER REVENUE REVENUE REVENUE 90 AT JUNE 30, 2019 AT JUNE 30, 2019 AT JUNE 30, 2019 CHARGEURS Surface quality PROTECTIVE p
Slide 11: Chargeurs Protective Films
Chargeurs Protective Films From New York Penn to Boston, stations under renovation Chargeurs – Investor Chargeurs Presentation – Investor – 2019 Presentation October – 2019 October ― 11
Slide 12: 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 13: Chargeurs PCC Fashion Technologies
Chargeurs PCC Fashion Technologies From the Fendi Show to the New York Marathon Chargeurs – Investor Presentation – 2019 October ― 13
Slide 14: Positioned competitively as a worldwide leader
Chargeurs PCC Fashion Technologies Positioned competitively as a worldwide leader 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 maintain control over al
Slide 15: Chargeurs Technical Substrates
Chargeurs Technical Substrates From the Louvre to the Brooklyn Museum Chargeurs – Investor Chargeurs Presentation – Investor – 2019 Presentation October – 2019 October ― 15
Slide 16: Leader in the visual communication field dedicated to the visitor experience
CHARGEURS Leader in the visual communication field TECHNICAL SUBSTRATES dedicated to the visitor experience Two areas of expertise: Industrial area Graphic service area SENFA Chargeurs Creative Collections ➔ Mainly dedicated to the digital printing industry ➔ Master the art of custom-made, disruptiv
Slide 17: Chargeurs Luxury Materials
Chargeurs Luxury Materials From The Sheep to The Shop Chargeurs – Investor Presentation – 2019 October ― 17
Slide 18: From the sheep to the shop
CHARGEURS LUXURY MATERIALS « From the sheep to the shop » A distinctive innovative business model based on traceability ◼ Local and global expertise with a strict policy of transparent communications with stakeholders ◼ Expertise deployed to meet the needs of leading brands ◼ Label Nativa Precious F
Slide 19: Since 2015: a methodical strategy of growth to achieve €1bn in revenue by 2021
SINCE 2015: 2 A METHODICAL STRATEGY OF GROWTH TO ACHIEVE €1BN IN REVENUE BY 2021 Chargeurs – Investor Presentation – 2019 October ― 19
Slide 20: A much larger geographic footprint since 2015
A much larger geographic footprint since 2015 and strong growth potential in the Americas and Asia Key A larger international Revenue footprint Production units In 2015, Chargeurs generated over Distribution units 90% of its revenue in international Offices markets, with some 1,500 Employees employe
Slide 21: A strategy underpinned by a stronger financial structure
A strategy underpinned by a stronger financial structure Groupe ◼ Groupe Familial Fribourg significantly raised its investment in Chargeurs’ capital base in Familial Fribourg H1 2019 by becoming the controlling shareholder of Colombus Holding controlling stake ⚫ Groupama – a blue chip, long-term inv
Slide 22: A methodical growth strategy aimed at achieving €1bn in revenue by 2021
A methodical growth strategy deployed since 2015 aimed at achieving €1bn in revenue by 2021 A clear vision & Well on the way to achieving €1bn solid strategy A success model in revenue by 2021 Acting as a “designer” of our niche Managerial transformation to drive Upscaling and multiplying sources of
Slide 23: Our value creation drivers
Our value creation drivers Chargeurs – Investor Presentation – 2019 October ― 23
Slide 24: Key non-financial components of our overall performance
Key non-financial components of our overall performance Innovation Innovating to meet global challenges and enhance the sustainability of our customers’ products Governance Applying a robust corporate governance structure to ensure the consistency of Talent Chargeurs’ strategy over the long term man
Slide 25: Game Changer: the Group's performance acceleration plan
Game Changer: the Group’s performance acceleration plan SMART AND ADVANCED MANUFACTURING Improving the performance of Objective: our production assets Reducing our production costs • €1bn in revenue by 2021 Reducing our TALENT MANAGEMENT non-quality • > 10% normative operating margin as from 2022 SA
Slide 26: Game Changer: a premiumization strategy
Game Changer: a premiumization strategy underpinned by measures to step up the plan Game Changer: an operating performance acceleration plan that advocates daily discipline in the creation of long-term value and that is based on four key areas: Smart & Advanced Sales and Marketing Talent Management
Slide 27: Launch of the Iconic Champions plan: premiumization pursued
Launch of the Iconic Champions plan: premiumization pursued Chargeurs – Investor Presentation – 2019 October ― 27
Slide 28: Premiumization with High Emotion Technologies marketing strategy
Premiumization accompanied by a high -potential marketing strategy: High Emotion Technologies ® This global marketing approach is designed to drive the upscaling of the Group and its businesses A solid industrial heritage... ...Underpinning 3 fundamentals focused on ...which are drivers of accelerat
Slide 29: Performance since 2015
PERFORMANCE SINCE 2015 3 Chargeurs – Investor Presentation – 2019 October ― 29
Slide 30: Continued enhancement of growth profile, profitability and resilience
Continued enhancement of Chargeurs’ growth profile, profitability and resilience Very robust growth in the Group’s operating performance: a 240-bp increase in ROP(1) margin since 2015 Protective Films Fashion Technologies Technical Substrates Luxury Materials 281.0 283.3 250.3 227.2 157.5 161.1 Reve
Slide 31: First-half 2019 key figures
First-half 2019 key figures Another strong increase in results Group Protective Films Fashion Technologies Technical Substrates Luxury Materials Intensified opex drive Change in scale Creation of a global Premiumization 326.1 champion 281.8 287.1 256.6 253.5 143.3 150.0 142.1 107.7 113.6 120.5 79.7
Slide 32: Success of the Annual Productivity Plan
Success of the Annual Productivity Plan 2019 target: €7.3m in cost savings for the full year Cost savings generated by the annual productivity plan Productivity plan 7.3 Savings on production costs Savings on distribution 48% 31% costs 2.2 2.1 9% 3.5 Savings on administrative €3.5m in €m and other f
Slide 33: A successful acquisition program: >€100m in additional revenue
A SUCCESSFUL ACQUISITION PROGRAM: 4 > €100 M IN ADDITIONAL REVENUE FROM VALUE -GENERATING ACQUISITIONS, PURCHASED AT REASONABLE PRICE Chargeurs – Investor Presentation – 2019 October ― 33
Slide 34: Cementing leadership positions through well-integrated acquisitions
Cementing leadership positions at a faster pace thanks to carefully -purchased and well-integrated acquisitions in high -potential segments Guided by the Chargeurs Business Standards, since 2015 Chargeurs has carried out targeted acquisitions, creating champions in high value-added niche markets. An
Slide 35: PCC case study
Carefully-purchased and well-integrated acquisitions in high -potential segments: PCC case study ⚫ PCC: $80m in revenue, of which more than 90% generated in Asia ⚫ 300 employees in a dozen countries, primarily in Asia and the United States ⚫ Leader in nomination Specialist in ✓ 30 years of business
Slide 36: CCC case study
Carefully-purchased and well-integrated acquisitions in high -potential segments: CCC case study A global benchmark for museum heritage management and visitor experience services Founded in the UK in 1891 Based in London • Pioneer in large format graphic displays • Major player in project management
Slide 37: Outlook and opportunities
5 OUTLOOK AND OPPORTUNITIES Chargeurs – Investor Presentation – 2019 October ― 37
Slide 38: Building a long-term model of quality and excellence
Building a long-term model of quality and excellence Reasonable but essential levels of capex for transforming a high-potential industrial group into the world champion in high value-added niche markets that it has become today A solid model built on 3 pillars ⚫ Game Changer plan Premiumizing our ⚫
Slide 39: A targeted and long-term acquisition strategy
A targeted and long-term acquisition strategy An acquisition strategy based on a strict and targeted model Distinctive Create global champions in high value-added niche markets vision Focus on accretive businesses Disruption Game-changing bolt-on acquisitions closely Vertical acquisitions to move up
Slide 40: Ambitious and achievable medium- and long-term objectives
Ambitious and achievable medium- and long-term objectives Target for end-2021 confirmed: €1bn in profitable revenue (subject to macro-economic conditions remaining constant) Steadily rising margins thanks to the product mix and economies of scale Full-year revenue Growth track for target of €1bn rev
Slide 41: Maximizing shareholder value creation
Maximizing shareholder value creation Shareholder value creation strategy Ownership structure at July 31, 2019: 23 756 103 shares Ownership structure at May 31, 2019: Share performance since the change in Chargeurs' governance structure ( CAC 40 and SBF 120 adjusted in line with Chargeurs' share pri
Slide 42: Appendices
6 APPENDICES Chargeurs – Investor Presentation – 2019 October ― 42
Slide 43: Consolidated Income Statement
Consolidated Income Statement Recurring operating profit once again high despite a more volatile operating environment and high levels of capex In euro millions H1 2019 H1 2018 Change Comments Revenue 326.1 287.1 +39.0 -1.9% like-for-like against a record figure in H1 2018; internal growth of 0.8 %
Slide 44: Balance Sheet Analysis
Balance Sheet Analysis A constantly robust balance sheet structure In euro millions 06/30/19 12/31/18 Comments Intangible assets 157.6 158.1 Right-of-use assets 27.7 0.0 Impact of the application of IFRS 16 including €11.2m in reclassification of finance leases Property, plant and equipment 83.1 80.
Slide 45: Statement of cash flows
Statement of cash flows In euro millions H1 2019 H1 2018 Comments EBITDA 32.5 30.6 Up 6.2%: impact of IFRS 16 (€3.3m), growth opex and annual productivity plan Non-recurring – cash (4.2) (2.0) Acquisition-related expenses Finance costs – cash (5.3) (4.5) Strengthening of financial resources and exte
Slide 46: 2019 Investor Calendar
2019 INVESTOR CALENDAR Thursday, November 14, 2019 Third-quarter 2019 financial information (after the close of trading) Chargeurs 112, avenue Kléber 75 116 Paris +33 1 47 04 13 40 comfin@chargeurs.com www.chargeurs.com