Chargeurs — Capital/Financing Update 2020

Dec 15, 2020

Chargeurs successfully places €100m in in fine financing over 8 years to accelerate expansion

• The new private placement under particularly advantageous conditions strengthens the Group's longterm liquidity position and reflects the depth of investors' confidence in Chargeurs' strategy
• The Euro PP is Chargeurs' first sustainability-linked loan, which underlines its deep commitment to Corporate Social Responsibility (CSR)

Michaël Fribourg, Chairman and Chief Executive Officer, commented: "At the close of a year characterized by unprecedented successes and a large-scale transformation, the success of this placement embodies the strength of the Chargeurs signature. These additional resources will be leveraged to deploy the Group's investment strategy and to roll out our Leap Forward 2025 program, which will be unveiled in February 2021."

STRENGTHENED GROUP LIQUIDITY

Chargeurs continues to optimize its balance sheet and long-term resources with a private placement bond (Euro PP), totaling €100 million, redeemable at maturity. The loan has an 8-year maturity and pays a coupon of 3.25%. Placement subscribers include: Aviva Investors France, La Banque Postale Asset Management, Aberdeen Standard Investment, SHAM and Klesia Finances.

Against the backdrop of difficult markets, the features of the transaction and high take-up reflect the improvement in the Group's long-term credit quality and Chargeurs' appeal to leading investors. The financing is not subject to leverage covenants and does have a gearing covenant of ≤ 1.2x. As such, the Group has augmented its financial headroom and documentation flexibility, showcasing agility under all circumstances.

The transaction extends the average maturity of the Group's drawn debt from 3.3 to 4.5 years.

AMBITIOUS ENVIRONMENTAL AND SOCIAL CRITERIA

The sustainability-linked Euro PP—a first in Chargeurs history—incorporates two environmental and social commitments selected from the four pillars on which the Group's CSR strategy is based¹ :

• Reducing work accident frequency;
• Increasing revenue generated by sustainable products.

The achievement of these objectives will be reviewed as part of the Non-Financial Performance Statement (NFPS) during an annual audit conducted by an independent third party. The loan structure is aligned with the Sustainability-Linked Bond Principles, as outlined by the International Capital Market Association (ICMA) in June 2020.

The Group agrees to pay an additional coupon to one or several charitable organizations if neither of the two commitments has been met at the end of a given fiscal year.

¹ The two other pillars focus on reducing water consumption and CO2 emissions.

The transaction was cleared and settled on December 14, 2020.

Chargeurs conducted the transaction with support from Kepler Cheuvreux, acting as financial advisor and arranger, and law firm De Pardieu Brocas Maffei, acting as legal advisor.

2021 Financial Calendar

Thursday, February 18, 2021 (before market) 2020 Annual Results Thursday, April 8, 2021 Annual General Meeting Tuesday, May 4, 2021 (before market) First-quarter 2021 financial information

ABOUT CHARGEURS

Chargeurs offers its customers integrated differentiation solutions to meet the new aspirations of consumers in terms of quality, innovation, environmental sustainability and experience. World leader in all of its businesses, the Group, whose marketing signature is High Emotion Technology®, delivers its expertise in four key sectors with very high potential for value creation: protection for premium materials, fashion and luxury goods, museum services and healthcare.

The Group has over 2,400 employees on five continents, who serve a diversified customer base spanning more than 90 countries. Revenue for first-half 2020 amounted to €518.5 million.