Chargeurs — Regulatory Filings 2019

Sep 3, 2019

SUCCESSFUL COMMISSIONING OF THENEW CHARGEURS PROTECTIVE FILMS TECHNOLOGICAL SITE

PRESS RELEASE

Paris - September 3, 2019

Chargeurs Group has announced the launch of its new 4.0 production line at Chargeurs Protective Films as part of the Game Changer program

• An industrial transformation project with a record timetable
• A global ecosystem to accelerate profitable growth
• Confirmation of the target of €35 million in additional revenues in 2021 with higher profit levels than the business line's current revenues

"Chargeurs has once again demonstrated the value of its strategy for operational excellence with the successful launch of a new 4.0 production line for Protective Films in Sessa, Italy. Being able to offer its clients around the world a comprehensive new range of highly engineered interlinings, the business line has once again proven its unrivaled expertise and profitable growth profile, and can look forward to additional revenues of around €35 million in 2021 and profit levels that exceed its current revenues" said Michaël Fribourg, Chairman and Chief Executive Officer.

As announced, June 2019 saw the market launch of Chargeurs Protective Films' new offer of premium solutions from its new production line called Techno Smart Coating 1 (TSC1), which has been up and running in Sessa Aurunca, Italy, since the end of the second quarter of 2019.

Having accelerated the strategic timetable for the roll-out of the project at the end of 2018 and reduced the timeframe from the initial 24 months to 18 months, Chargeurs Protective Films was able to carry out and complete the production tests needed in the first half of 2019 to begin the launch of the new offer amongst its clients from June 2019.

SUCCESSFUL DEPLOYMENT OF THE GAME CHANGER INDUSTRIAL TRANSFORMATION STRATEGY AT CHARGEURS PROTECTIVE FILMS

Chargeurs Protective Films' new techno smart project is based on the four core pillars of the Game Changer plan to ensure its strategic success and ramp-up in profitability between now and 2021:

• Innovation: shorter time-to-market for disruptive, highly technical innovation, 3D modeling, automated processes, increased flexibility, connectivity and server virtualization, management of Big Data and savings in raw material resources.
• Production: stronger industrial performance and production capacity with around €35 million in additional revenues expected in 2021 thanks to products with superior profitability combined with streamlined production costs and lower non-quality costs (supervision of line control), automated predictive maintenance to avoid production stoppages and improved product traceability during production.
• Sales and Marketing: contribution to the success of high value-added products, such as low noise and fiber laser cutting films, broader industrial and commercial scope and greater proximity when it comes to client relations. Ideally located in Sessa Aurunca near the port of Naples in the heart of the Campania region in Italy, the smart manufacturing center is the ideal hub to market the business line's solutions to its international clients on the world's European, Asian and American markets.

• Talent management: development of teams with a project team of 30 individuals from five different nationalities and the recruitment of 40 engineer, technician and operator profiles in Italy, ramp-up in expertise to match the specific requirements of the new production line and optimization of the organizational structure of the business line.

A GLOBAL ECOSYSTEM TO ACCELERATE PROFITABLE GROWTH

Illustrating its expertise in the management and oversight of industrial transformation projects, Chargeurs Protective Films has developed the only production tool of its kind in the world with disruptive technological functionalities that will enable it to accelerate its profitable growth and improve its financial management profile to increase its global leadership in surface protection solutions.

Thanks to this innovative project, Chargeurs Protective Films is targeting €35 million in additional revenues and higher profit levels than the business line's current revenues by 2021.

ABOUT CHARGEURS

Chargeurs is a global manufacturing and services group with leading positions in four segments: temporary surface protection, garment interlinings, technical substrates and combed wool.

It has over 2,000 employees based in 45 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 (0)1 47 04 13 40 comfin@chargeurs.com