Chargeurs — Earnings Release 2019

Dec 6, 2019

CHARGEURS STRENGTHENS ITS LEADERSHIP IN MUSEUM SERVICES AND TECHNOLOGIES

PRESS RELEASE

Paris – December 5, 2019

Chargeurs announces the successful acquisition of creative agency, MET Studio

This acquisition will enable Chargeurs to strengthen its leadership in end-to-end museum heritage management and visitor experience solutions which are a very strong driver for value creation thanks to:

• the double-digit acceleration in global demand,
• the sector potential for consolidation and profitability,
• the pivotal role already played by Chargeurs Creative Collection in integrated solutions for museums and innovative brands.

"After the extremely successful integration of Leach in 2018 and Design PM mid-2019, the acquisition of MET Studio takes Chargeurs to the next level in the creation of a global champion in museum services with an ever-increasing range of services, products and technological and industrial expertise. We are shaping a new niche activity with very high potential by bringing together the best in the world." said Michaël Fribourg, Chairman and Chief Executive Officer.

"It was while spending so much time with our customers, accompanying them around the world, that we became aware of the sheer dynamics of the museum industry that is confronted with a highly fragmented market. It was the ideal configuration to create a new world leader in a segment at the crossroads between luxury and culture. We decided to move up the entire value chain and, bringing together the best in the world, create a network of experts that was able to manage a project from start to finish" added Sampiero Lanfranchi, CEO & Managing Director of Chargeurs Creative Collection.

MET STUDIO, A CUTTING-EDGE PLAYER IN VISITOR EXPERIENCES

Creative agency MET Studio designs and delivers immersive expos and exhibitions that are revolutionizing visitor experiences for the world's most prestigious museums and brands. The internationally-acclaimed team of thirty professionals of this creative niche industry champion have built their reputation on the expert insight that they bring to each major project in terms of research, review and analysis, environmental and experiential design, new technologies, innovative materials and master planning. MET Studio runs its design agencies located on four continents from London, its historical head office, Hong Kong, Singapore and Mexico. The studio works alongside brands, museums and some of the biggest names in architecture, design and curator services around the world to design visitor experiences of the future.

Having worked on iconic projects in around fifty countries, some of the company's most emblematic customers include:

• the National Museum of Natural Science in Taiwan,
• the Dutch Maritime Museum,
• the National Army Museum in London,
• the Manchester United Experience museum in Macao,
• the Contemporary Art Museum in Jakarta,
• the Hong Kong Wetland Park.

ILLUSTRATIVE INTEGRATION OF THE GROUP'S NEW HIGH EMOTION TECHNOLOGY® SIGNATURE

MET Studio strongly embodies Chargeurs Group's new marketing signature, High Emotion Technology®, which carries with it all of the emotional wisdom that goes into each of the Group's products and services and is shaped by continued innovation, inimitable expertise and an exacting service culture. It is a signature that adds another differentiating advantage for Chargeurs' client communities and that complements its technological, logistical and service excellence.

The agency will be integrated into Chargeurs Technical Substrates' service division, Chargeurs Creative Collection. The perfect fit between its global niche champions Leach, Design PM, MET Studio and Hypsos (for which the acquisition is in the process of being finalized) will give Chargeurs Creative Collection a unique offering on today's museum heritage management and visitor experience services market, from project planning to the end-to-end delivery of innovative exhibits and life environments.

MET Studio brings Chargeurs Creative Collection the unique expertise handed down to its talented team and new generations by its founder, Alex McCuaig, who continues to work with the studio which is now run by his son, Alex Jr and Creative Director, Peter Karn. A dedicated disciple of James Leslie Gardner - famous for having radically reinvented the ways in which arts and science museums exhibit their works in the second half of the twentieth century - Alex McCuaig has helped MET Studio earn the highest number of museum sector awards, including:

• the FX 2016 International Lifetime Achievement Award for Design,
• the Queen's Award for Enterprise,
• Museum and Heritage Awards,
• the Grand Designs Award.

By joining Chargeurs, MET Studio will benefit from the Group's talent and expertise in international development, in extending its client offering and in innovation in technologies and services.

AN ACCELERATION IN GROWTH FOR CHARGEURS TECHNICAL SUBSTRATES DRIVEN BY THE GAME CHANGER PROGRAM

Chargeurs Technical Substrates will begin 2020 with revenues of over €60 million, 50% of which is generated by its industrial unit made up of Senfa Technologies, with the other 50% generated by its services unit, Chargeurs Creative Collection. The business will be targeting revenues of over €100 million for the full year and a 14% operating margin in the medium term. The acceleration in its development, led by Sampiero Lanfranchi since 2019, has benefited in full from the Group's strategic program, Game Changer, which has given CTS the additional outside and operational investment needed to strengthen its leadership in:

• Sales and marketing development,
• Talent management,
• Innovation,
• Productive, technological and logistical efficiency.

Leveraging its success, Chargeurs Technical Substrates has brought its target of €100 million in revenues forward by a year to the end of 2020.

The acquisition of MET Studio confirms Chargeurs' ability to create new and extremely high value-added niche activities in its businesses and divisions that bring together the best in the field. MET Studio's existing management will retain a non-controlling interest in the company alongside Chargeurs and continue to pursue its development.

For more information about MET Studio, go to: https://www.metstudiodesign.com/

2020 Financial Calendar Thursday, January 30, 2020 (after the close of trading) 2019 annual revenue release

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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. Number one in the world in all of its businesses, the Group, whose marketing signature is High Emotion Technology®, delivers its expertise in three key sectors with very high potential for value creation: protection for premium materials, fashion and luxury and visitor experience.

The Group has over 2,600 employees based in 90 countries on five continents, who serve a diversified customer base spanning more than 90 countries.

In 2018, revenue totaled €573.3 million, of which more than 90% was generated outside France.

CONTACTS – www.chargeurs.fr

Financial Communications +33 1 47 04 13 40 comfin@chargeurs.fr