Coats Group Plc · LSE:COA
Coats — Shareholder Meeting (May 2014)
15 slides from Coats's shareholder meeting presentation, May 22, 2014
Slide 1: GPG Annual General Meeting presentation
GPG Annual General Meeting presentation Paul Forman Coats Group Chief Executive Thursday 22 May 2014
Slide 2: Disclaimer
Disclaimer Restricted distribution This presentation is not for release, publication or distribution, in whole or in part, directly or indirectly, in, into or from any jurisdiction where to do so would constitute a violation of the relevant laws or regulations of such jurisdiction (the ‘Restricted J
Slide 3: Who we are
Who we are With a rich heritage dating back to the 1750s, Coats is the world’s leading industrial thread and consumer textile crafts business employing 20,000 employees in over 70 countries across six continents • Group revenues of US$ 1.7bn in 2013 • World’s leading industrial thread producer • Lea
Slide 4: Five elements to our value
Five elements to our value Focus on sales, earnings and Strong and defendable free cash flow 5. Cash 1. Global core business growth generative; market leader Experienced consistent Global leader with robust management growth fundamentals and robust model Cash 4. generative Experienced 2. Defined Lea
Slide 5: Global market leader
Global market leader… Coats Coats is Thousands of 1 in 5 produces operations 100million garments enough yarn 3 times take place car airbags are around the to knit larger than the every made using world are held next largest Coats’ thread together using 70million day every year thread Coats’ thread s
Slide 6: Servicing several markets and global customers
… servicing several markets and global customers… End applications Industrial customers Crafts products include include include © Guinness Peat Group plc | Annual General Meeting 2014 Page 6
Slide 7: And stable underlying trends
… and stable underlying trends Strong link between clothing retail sales and GDP growth. For the US, clothing retail sales growth is approximately 1.8 times GDP growth US GDP growth vs consumer retail sales growth (2000-2013) CRS: Clothing Retail Sales Source: IMF, US Census Bureau © Guinness Peat G
Slide 8: Defined growth strategy to achieve three Market Goals
Defined growth strategy to achieve three Market Goals The Coats of 2015… The leading The leading value added global player in partner to the Speciality global Apparel threads and and Footwear yarns industries The leading global player in textile crafts …based on a core of world class skills and infr
Slide 9: Strategy supported by a global, world class asset base
Strategy supported by a global, world class asset base… • Well invested asset base • Restructured manufacturing footprint: reduced number of plants in higher cost Europe and North America Countries in which Coats operates Manufacturing sites Truly global footprint with more than 70 manufacturing fac
Slide 10: Key differentiators providing a platform for growth
… key differentiators providing a platform for growth… Flamepro For use in personal protective equipment Coats Protect Ultrabloc World’s first anti- microbial thread Product Blocks water from seeping into fibre optic cables innovation ‘Make it Coats’ portal Service enhancements Corporate Colour Expr
Slide 11: A highly engaged and safe workforce
… and a highly engaged and safe workforce Global employee engagement survey results Global recordable accident rate Upper quartile performance 80% 77% 72% Industry norm 66% Consistently better than the OSHA average 2010 2011 2012 2013 © Guinness Peat Group plc | Annual General Meeting 2014 Page 11
Slide 12: Leading to revenue and operating profit growth
Leading to revenue and operating profit growth Group revenue - $m Group operating profit - $m (pre-exceptional) 1,704 2009 - 2013 2009 - 2013 133 4.9% CAGR 9.9% CAGR * 96 1,408 2009 2013 2009 2013 * 2013 includes an additional $7m pension administrative expenses charge due to an accounting rule chan
Slide 13: Q1 2014 IMS summary
Q1 2014 IMS summary Group • Q1 2014 sales performance robust; driven by growth in the Industrial Division • Consolidated sales +5% year-on-year on like-for-like (constant currency) basis, continuing the positive trend experienced during 2013, despite the sales decline seen in the Crafts Division Ind
Slide 14: Conclusion
Conclusion • Global market leader with robust fundamentals; strong and defendable core • Defined growth strategy − A&FW: market share growth and Global Services offering − Speciality: focus on existing segments and sector and geographic growth − Crafts: marketing opportunities in b2b and b2c, region
Slide 15: Thank you
® GUINNESS PEAT GROUP PLC Thank you