Chargeurs extends its international leadership: Acquisition of US-based Main Tape Michaël Fribourg, Chairman and Chief Executive Officer July 18, 2016
CONTENTS 1. Chargeurs: "A World of Niche Market Leaders" 2. The Chargeurs business model 3. A "surgical" acquisition 4. Strengthening the Group Chargeurs presentation – 2016 ― 2
Chargeurs: "A World of Niche 1 Market Leaders" Chargeurs dominates global industrial niche markets Chargeurs presentation – 2016 ― 3
1. Dominant, global positions in niche markets A strategic position in global value-added niche businesses thanks to an international network of unseen champions operating a Mittelstand model � Four business skill-sets with leadership positions in niche industrial markets Chargeurs Protective Films Chargeurs Technical Substrates global leader in temporary a European leader in surface protection functionalized textiles Chargeurs Fashion Technologies Chargeurs Wool world number two in global leader in topmaking, garment interlining premium wool trading � An extensive international footprint � A presence in 32 countries on 5 continents � 93% of revenue generated outside France � 11 plants in 6 countries on 4 continents � A stable, long-term reference shareholder Chargeurs presentation – 2016 ― 4
Thanks to the Chargeurs development 2 model, the Group's businesses set the highest international standards Performance Discipline Ambitions Chargeurs presentation – 2016 ― 5
2. The Chargeurs business model A sustainable global model based on excellence and industrial differentiation Decentralized management High barriers to entry Managerial leadership Constant innovation Investment in human capital Innovative service solutions and and leveraging international bespoke solutions developed jointly talent with our customers A culture dedicated to Precise management of specific, Engaged promoting development Niche products integrated solutions management of Encouragement of cooperation and services Absolute quality and reliability across age groups within the human capital organization A WORLD OF NICHE MARKET LEADERS A robust and Substantial return on capital A model based Continuous business process demanding employed optimization on operational financial Management of finance costs Global, diversified geographic excellence culture footprint Tight control over operating cycles Effective supply chain Implementation of "surgical", Continuous cost control and a acccretive growth transactions "best-cost" culture Productivity and optimal skill-sets Chargeurs presentation – 2016 ― 6
A solid foundation for development Reinforcing the Group's financials � Solid foundations strengthened by new governance � A stable, long-term reference shareholder � A robust financial position � A positive net cash position � Profitable individual operating segments � A demanding integration model � An on-going cost-cutting program � Excellent performance in 2015 � Recurring operating profit up 34% to € 30.6m � Net profit up 42% to € 15.3m � New financial resources available for 2016 � A € 57m Euro PP private placement notes issue in May 2016 � Renewal and extension of Group credit lines Chargeurs presentation – 2016 ― 7
Main Tape, a surgical acquisition 3 in line with the new Chargeurs business model Chargeurs presentation – 2016 ― 8
Main Tape: A first, carefully targeted acquisition in line with CHARGEURS PROTECTIVE the new Chargeurs strategic development model FILMS Strengthening the Group's leadership position in its main business and primary market � A solid position at the forefront of the US market that complements the market presence of Chargeurs Protective Films � The addition of a well-known, iconic US brand � A stronger positioning for Chargeurs Protective Films across its entire product offering � A product range that perfectly complements Chargeurs Protective Films' product offering � Stepped up development of Main Tape in Europe through Chargeurs Protective Films' sales network � Main Tape, like Chargeurs Protective Films, is a formula patent owner with highly innovative products and production processes that meet demanding operational quality requirements � A second dollar-zone production unit improves the distribution of Chargeurs Protective Films' production � A site close to the rapidly expanding Newark airport and marine terminal, near New York � A surgical transaction, reflecting the Group's prudence and demanding financial culture Chargeurs presentation – 2016 ― 9
Main Tape, 30 years of excellence in temporary surface protection in the United States A high-quality company with a significant presence across the United States and proven expertise in temporary surface protection � Founded in 1987, Main Tape is based in Cranbury, New Jersey � In 2015, it reported revenue of US$27m, mainly from operations in the United States, and to a lesser extent in Mexico and Europe � 75 employees � Thanks to its expertise in manufacturing and marketing films for temporary surface protection applications, Main Tape offers a comprehensive range of high-quality solutions to its customers � Active in four markets: metals, building & construction, specialty applications and automotive Chargeurs presentation – 2016 ― 10
Chargeurs Protective Films: the world leader CHARGEURS PROTECTIVE in temporary surface protection FILMS Specialist in self-adhesive films for the temporary protection of fragile surfaces throughout the manufacturing process � Active in four markets: construction, household appliances, automotive and electronics industries � Protecting numerous, constantly evolving, technical surfaces: metals, plastics, laminates, floor coverings, glass, automotive bodywork, flat screens, etc. � A background in innovation in products (e.g., fiber laser) and processes (e.g., machine coating) coupled with a bespoke customer service central to the business' differentiation strategy � A global geographic footprint, a CSR process and operating discipline Revenue 94% Recurring operating profit 500 of sales outside +10.0% 227.2 employees +29.8 % France 21.8 + 57.0 % A sales presence +8.2% 9.6% 3 production 16.8 206.6 in 47 countries units 8.1% 10.7 190.9 5.6% ISO 14001 ISO 9001 Environment € m € m Quality certified certified 2013 2014 2015 2013 2014 2015 "We deliver innovative coating solutions" Chargeurs presentation – 2016 ― 11
4 Strengthening the Group Chargeurs presentation – 2016 ― 12
Strengthening the Group Putting Chargeurs at the heart of a sustainable business model based on excellence and industrial differentiation � Enhancing the " Chargeurs business model " of developing leadership positions in niche businesses worldwide with a balanced global presence � A renewed culture of operational excellence � A tightly controlled balance between organic development and external growth � A demanding and closely monitored financial model Chargeurs presentation – 2016 ― 13
2016 Financial calendar 2016 interim results Friday, September 9 Third-Quarter 2016 Financial Information Thursday, November 10 Contacts Investor Relations Chargeurs Cédric Ratouis 112, avenue Kléber 75116 Paris, France Financial Communications Tel: +33 (0)1 47 04 13 40 Pauline Bayec Email: comfin@chargeurs.fr www.chargeurs.fr
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