Compagnie Chargeurs Invest · EURONEXT:CRI
Compagnie Chargeurs Invest — Chargeurs — H1 2018 Earnings Presentation
39 slides from Compagnie Chargeurs Invest's earnings presentation, Sep 6, 2018
Slide 1: First-Half 2018 Results Presentation
First-Half 2018 Results Presentation "A World of Niche Market Leaders" Chargeurs re-affirms the effectiveness of its structural growth strategy Michaël Fribourg Chairman and Chief Executive Officer Olivier Buquen Chief Financial Officer September 6, 2018
Slide 2: Contents
CONTENTS 1. Summary: another excellent performance in first-half 2018 2. Game Changer plan: daily discipline to create long-term value 3. A successful acquisition program: €75m in additional revenue from value-generating acquisitions, purchased at reasonable prices 4. Business review: significant an
Slide 3: Summary: another excellent performance in first-half 2018
Summary: 1 another excellent performance in first-half 2018 Chargeurs – First-Half 2018 Results – September 6, 2018 ―3
Slide 4: Another excellent performance in first-half 2018
Another excellent per formance in first -half 2018: revenue growth and higher margins and cash flow from operations Chargeurs continues to enhance its growth profile, profitability and resilience: • Further increase in operating performance despite an adverse geopolitical and currency environment an
Slide 5: Another excellent performance in first-half 2018
Another excellent per formance in first -half 2018: revenue growth and higher margins and cash flow from operations Chargeurs is methodically rolling out its roadmap: excellent financial performances, continued capex and opex, and accretive acquisitions Excellent financial performance: ROP up 12.3
Slide 6: A methodical growth strategy aimed at €1bn revenue by 2022
A methodical growth strategy deployed since 2015 aimed at achieving €1bn in revenue by 2022 A clear vision & Well on the way to achieving solid strategy A success model €1bn in revenue by 2022 Acting as a “designer” of our niche Managerial transformation to drive Upscaling and multiplying sources of
Slide 7: A clear and distinctive vision of industrial markets
A clear and distinctive vision of industrial markets Chargeurs: A designer of leaders recognized in their niche markets Drawing on our operational excellence as an industrial leader, we are shaping our future operations based on four main principles: Optimized global A consumer centric and Globally-
Slide 8: Game Changer plan: daily discipline to create long-term value
Game Changer plan: 2 daily discipline to create long-term value Chargeurs – First-Half 2018 Results – September 6, 2018 ―8
Slide 9: Successful deployment of the Game Changer performance acceleration plan
Successful deployment of the Game Changer performance acceleration plan SMART AND ADVANCED → Plan aimed at accelerating the MANUFACTURING Group's growth and profitability: Improving the performance of our production assets • launched in September 2017 Reducing our production costs Reducing our non-q
Slide 10: Successful upscaling since 2015 through 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 and with new management systems implementation qualitative val
Slide 11: Game Changer plan: reinvesting in growth opex and capex
Game Changer plan: daily discipline to create long-term value Reinvesting qualitatively our excellent financial performance in growth opex and capex 11.5% of EBITDA margin Sales & Marketing EBITDA LFL and excl. growth opex - Bundled “products & services” offerings 11.1% of EBITDA margin •- Developme
Slide 12: Game Changer – our major achievements
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 13: Game Changer – our major achievements
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 14: A successful acquisition program
A successful acquisition program: €75m in additional revenue from 3 value-generating acquisitions, purchased at reasonable prices Chargeurs – First-Half 2018 Results – September 6, 2018 ― 14
Slide 15: 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 Vertical acquisitions to move up Acquisitions in new
Slide 16: A successful strategy for value creation
A successful strategy for value creation 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” acquisitions $80m in revenue > Acquisitions to move
Slide 17: Business review: significant and measurable progress
Business review: 4 significant and measurable progress Chargeurs – First-Half 2018 Results – September 6, 2018 ― 17
Slide 18: First-half 2018 key figures
First-half 2018 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 xxxx H1 2018: +3.1% xxxx H1 2018: +3.6% xxxx H1 20
Slide 19: Chargeurs Protective Films
Chargeurs Protective Films CPF "The leading innovative coating solutions" First-Half 2018 Highlights Volatile economic context marked by geopolitical uncertainty, an adverse USD effect and a highly unfavorable basis of comparison Outstanding performance: further organic growth and operating marg
Slide 20: Protective Films key figures
Chargeurs Protective Films Key figures A robust performance despite an unfavorable basis of comparison and an adverse USD currency effect 3.6% like-for-like revenue growth in first-half 2018: price/mix improvements and higher volumes thanks to the steady launch of game-changing innovations, the su
Slide 21: Chargeurs Fashion Technologies
Chargeurs Fashion Technologies CFT “Creating the new worldwide leader” First-Half 2018 Highlights Angela Chan succeeds Bernard Vossart as Managing Director of Chargeurs Fashion Technologies Acquisition of Precision Custom Coatings Interlining: announced on June 28 and completed on August 24: + A
Slide 22: Fashion Technologies key figures
Chargeurs Fashion Technologies Key figures An excellent performance: like-for-like growth of more than 7% and operating margin topping 8% Brisk sales momentum in a competitive market: further commercial success thanks to investments in 40 gauge machines and the opening of new showrooms and sales o
Slide 23: Chargeurs Technical Substrates
Chargeurs Technical Substrates CTS An industrial champion First-Half 2018 Highlights Leach: a game-changing acquisition Leader in graphic display solutions for retailers, museums and institutions A change driver for CTS, opening up new market and geographic opportunities thanks to a bundled of
Slide 24: Technical Substrates key figures
Chargeurs Technical Substrates Key figures Another acceleration for like-for-like growth, to 6.4%, and successful integration of Leach Strong sales momentum: Successful launch of Sublimis Capture of new geographic markets, such as Japan, demonstrating the quality of CTS’s solutions New comme
Slide 25: Chargeurs Luxury Materials
Chargeurs Luxury Materials CLM "From the sheep to the shop" First-Half 2018 Highlights 37% increase in wool prices versus 2017 Launch of Organica and creation of strategic partnerships with recognized brands Positive contribution from CLM’s equity-accounted investees, proving the success of th
Slide 26: Luxury Materials key figures
Chargeurs Luxury Materials Key figures Opex to gradually ramp up the new business model Wool prices increasingly high mainly due to an explosion in demand from the fashion industry in Europe, China and the United States Higher wool prices only have a limited impact on ROP, thanks to CLM’s busine
Slide 27: Financial review: continued excellence
Financial review: 5 continued excellence Olivier Buquen, Chief Financial Officer Chargeurs – First-Half 2018 Results – September 6, 2018 ― 27
Slide 28: Consolidated Income Statement
Consolidated Income Statement Another sharp rise in results €m H1 2018 H1 2017 Change Comments Revenue 287.1 281.8 +5.3 +1.9% Up 3.1% like for like: further price/mix improvement Gross profit 75.8 71.8 +4.0 +5.6% Increase in profit thanks to a positive price/mix effect to offset the negative currenc
Slide 29: ROP growth higher than revenue increase
ROP growth once again higher than the year-on-year increase in revenue Revenue and recurring operating profit bridges Revenue bridge (€m) Recurring operating profit bridge (€m) 281.8 9.7 10.1 287.1 -13.2 -1.3 3.1% organic 12.3% organic 5.1 23.5 1.4 2.1 24.8 -4.3 -3.0 H1 2017 Scope Currency Volume Pr
Slide 30: Success of the annual productivity plan
Success of the annual productivity plan 2018 target: €4.6m in cost savings for the full year Cost savings generated by the Productivity plan annual productivity plan 5.6 Target 4.6 4.6 2.1 €2.1m in €m EBITDA gains 2016 2017 2018 achieved in H1 2018 €2.1m in savings achieved in the six months ended
Slide 31: Statement of Cash Flows
Statement of Cash Flows Solid cash flow from operations, further quality-focused investments, and acquisition of Leach €m H1 2018 H1 2017 Comments EBITDA 30.6 29.1 Up 5.2%: improved mix, higher volumes and reinforcement of productivity plan Non-recurring – cash (2.0) (2.4) H1 2018: acquisition-relat
Slide 32: Balance Sheet Analysis
Balance Sheet Analysis A very robust balance sheet structure €m 06/30/18 12/31/17 Comments Intangible assets 102.6 88.3 Leach: goodwill (+€8m) & trademark (+€4.6m); €1.5m positive currency effect (USD) Property, plant and equipment 69.5 63.2 Increase in capex including CPF's "techno-smart" productio
Slide 33: Outlook
6 Outlook Michaël Fribourg, Chairman and Chief Executive Officer Chargeurs – First-Half 2018 Results – September 6, 2018 ― 33
Slide 34: Chargeurs re-affirms its structural growth profile in a volatile environment
Chargeurs re-affirms its structural growth profile in a volatile environment Chargeurs will continue to concentrate on its effective, ambitious and quality-focused structural growth strategy, despite the volatile economic and geopolitical environment A strategy built for resilience Further accel
Slide 35: Continuing to accelerate performance with operational excellence standards
Chargeurs is continuing to accelerate its per formance, with solid operational excellence standards A methodical excellence and long term implementation strategy • A committed reference shareholder • Experienced Top Management with an international profile A clear • A clear vision: constantly streng
Slide 36: Roadmap to achieve €1bn in revenue by 2022
Chargeurs is rolling out its roadmap to achieve €1bn in revenue by 2022 Confirmation of the 2018 guidance Revenue growth Higher operating margin Solid cash generation One year after announcing its €1bn revenue target, Chargeurs confirms and fully achieves its roadmap Our ambition 1 000 Revenue (€m)
Slide 37: Strong shareholder value creation
Strong shareholder value creation Strong value creation for shareholders thanks to enhanced profitability Payment of an interim dividend of €0.30 per Dividend per share share, with a dividend reinvestment option +9% €0.60 €0.55 Ex-dividend date for the interim dividend and +83% September 12, 2018
Slide 38: Glossary
Glossary Like-for-like growth (based on a comparable scope of consolidation and at constant exchange rates) 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, quarter); and using the scope of consolidat
Slide 39: 2018 Investor Calendar
2018 Investor Calendar Wednesday, November 14, 2018 (after the close of trading): Third-quarter 2018 financial information 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