Chargeurs : 2014 Condensed Financial Report

VA - P.8 - TFT .pdf

Financial Report

Year ended December 2014

CONTENT

1. Annual Activity Report

2. Consolidated Statement of Financial Position

3. Consolidated Income Statement

4. Consolidated Statement of Comprehensive Income

5. Consolidated Statement of Changes in Equity

6. Consolidated Statement of Cash Flow

2014 ANNUAL RESULTS

March 18, 2015

· Robustoperatingperformance

· Strengthenedfinancialposition

· Recommendeddividend

· 2015positiveoutlook

The Board of Directors of Chargeurs met on March 17, 2015 under the chairmanship of Eduardo

Malone to approve the 2014 consolidated financial statements.

By deploying its innovation-driven strategy and focusing on operating discipline, Chargeurs delivered a very robust performance in 2014 and met its end-2015 objectives a year ahead of schedule.

CONSOLIDATED FINANCIAL STATEMENTS

(in euro millions) 2014 2013

Revenue

Recuring operating profit

Operating profit

Attributable net profit

Dec. 31, 2014 Dec. 31, 2013

Consolidated equity

Group net cash

Solid growth in revenue

Consolidated revenue rose by 2.5% in 2014, lifted by significant growth in business volumes, particularly at Chargeurs Protective Films, and despite an unfavorable currency effect, mainly from the South American currencies.

Sharp improvement in margins and net profit

The focus on innovation combined with the development of high value-added products helped to drive a very strong increase in recurring operating profit to €22.9 million from €14.4 million in 2013.

Thanks to this operating momentum, attributable net profit rose sharply to €10.8 million from

€3.6 million in 2013.

2014 Annual Results 1/3

ANALYSIS BY BUSINESS SEGMENT

Chargeurs Protective Films: further growth in operating profit

Revenue

(in euro millions)

2014 2013

Recurring operating profit

Operating profit

Pursuing its active strategy of developing high value-added products, Chargeurs Protective Films reported a robust 8.2% increase in revenue in 2014, supported by significant growth in business volumes during the year. Around one third of revenue was derived from products less than five years old, attesting to the business' strategic focus on innovation.

Buoyed by the revenue gains, recurring operating profit rose steeply to €16.8 million, from €10.7 million in 2013.

Chargeurs Interlining: strong growth in recurring operating profit

Revenue

(in euro millions)

2014 2013

Recurring operating profit

Operating profit

* Of which €1.2 million in a non-recurring capital gain on a property disposal

Excluding the unfavorable currency effect, primarily due to the fall in the Argentine peso, Chargeurs Interlining demonstrated firm resistance by maintaining its business volumes in a global market suffering from over-capacity and aggressive competition.

With recurring operating profit of €6.2 million, versus a comparable €3.2 million in 2013, the business improved significantly its margins, thanks in particular to the benefits of diversifying into technical products.

Chargeurs Wool: a significant improvement in earnings

Revenue

(in euro millions)

2014 2013

Recurring operating profit

Operating profit

Chargeurs Wool's revenue increased by 2.3% to €104.2 million in 2014, lifted by growth in delivered volumes that offset the impact of lower raw wool prices.

Backed by the strength of its global sales network, the Wool business reported recurring operating profit of €3.4 million, compared with €2.2 million the year before.

2014 Annual Results 2/3

A STRONGER FINANCIAL POSITION

The Group continued to strengthen its financial position in 2014.

Pursuing its priority objective of reducing debt, Chargeurs repaid the medium-term credit facilities provided for under the debt restructuring agreement several months ahead of the due date, thereby extinguishing all of the related liabilities.

As a result, the consolidated net cash position ended the year at €9.3 million, compared with

€3.2 million in net cash at December 31, 2013. Year-end consolidated equity amounted to

€182.6 million (excluding minority interests) versus €157.9 million at December 31, 2013.

Of the 415,083 convertible bonds issued in April 2010 with a total face value of €22.8 million and a

January 1, 2016 maturity date, 218,069 were outstanding at December 31, 2014.

DIVIDEND

The Board of Directors will ask Shareholders at the Annual Meeting on May 5, 2015 to approve the payment of a dividend of €0.20 per share for the year, based on a healthy financial position and the solid operating performance delivered in 2014.

The timetable for the dividend will be the following:

- Ex-dividend date: May 25, 2015

- Payment date of the dividend: May 29, 2015

OUTLOOK

In a more favorable environment, Chargeurs intends to pursue its strategy of focusing on innovation and creating high value-added products to generate a further growth in recurring operating profit in

2015.

Next announcement: First-quarter 2015 financial information, May 5, 2015

Financial Communication • Tel: +33 (0)1 47 04 13 40 • Email: contact@chargeurs.fr• www.chargeurs.fr

Chargeursis a global manufacturing and services group with leading positions in three niche markets: temporary surface protection, technical textiles and combed wool. It has 1,600 employees based in 32 countries on five continents, who serve a diversified customer base spanning more than 45 countries. In 2014, consolidated revenue totaled €478 million, of which

93% was generated outside France.

2014 Annual Results 3/3

Consolidated Statement of Financial Position at December 31, 2014

( n euro m ll on )

Assets December 31, 2014 December 31, 2013

Non-current assets

n ang ble a e	72 6	66 3
roper yy plan and eeu pmen	50 3	37 5
nve men n a oc a e and o n ven ure	27 1	25 7
Deferred ax a e	13 5	11 9
Non curren f nanc al a e
nve men n non con ol da ed compan e	0 8	0 9
Long erm loan and rece vable	2 2	1 6
O her non curren a e	0 6	0 6
166 1	144
Current assets
nven or e and work n progre	98 2	97 6
rade rece vable	44 2	44 2
Fa c d ab e (*	43 9	49 3
Der va ve f nanc al n rumen	0 6	0 3
O her rece vable	24 7	30 2
Ca h and ca h eeu valen	72 7	48 0
284 3	269 6
Assets eld for sale	0 2	0 2
Total assets	4 1 6	414 3
Equity and Liabilities	December 31, 2014	December 31, 2013
Equity Attributable to owners of t e parent hare cap al	2 6	2 3
hare prem um accoun	42 2	39 5
O her re erve and re a ned earn ng	115 8	115 7
rof for he per od	10 8	3 6
rea ury ock	(0 2)	(0 2)
ran la on re erve	11 4	(3 0)
182 6	1 6 9
Non-controlling interests	3 8	3 3
Total equity	186 4	161 2
Non-current liabilities
Conver ble bond	11 2	13 2
Long erm borrow ng	42 0	13 0
Deferred ax l ab l e
en on and o her po employmen benef obl ga on	15 5	12 7
rov on	0 4	0 4
O her non curren l ab l e	10 3	10 1
69 4	49 4
Current liabilities
rade payable	88 6	88 9
O her payable	30 6	32 6
Fa c r ab c e (*	43 9	49 3
Curren ncome ax l ab l y	0 6	0 6
Der va ve f nanc al n rumen	0 7	0 5
hor erm por on of long erm borrow ng	6 7	11 5
hor erm bank loan and overdraf	14 7	20 3
18 8	203 6
Liabilities related to assets eld for sale
Total equity and liabilities	4 1 6	414 3

P. 4

Consolidated Income Statement

Year ended December , 20 (in euro millions)

P. 5

Year ended December

Consolidated Statement of Comprehensive Income for the year ended December 31, 2014

(in euro millions)

P. 6

Year ended December 31

Consolidated Stateeent of Changes in Equity
n eurnm r

Share Other reserves
Translation ash flow
Actsarial gains and losses on post-
Total eqsity attribstable to
Non-
Total
Share capital
premism
and retained
reserve
hedges
employment Treassry stocc owners of the
controlling
equity
accosnt
earnings
beneft obligations
parent
interests

t te eerne 2 2 2 2 2 22 2 2
ssse of share capital 0 1 1 1 .5 1 .5
hanges in treassry stocc (0 7) 1 0 0 3 0 3
Profit for the period 3 6 3 6 (0 3) 3 3
mpact of changes in scope of consolidation 0 0 (2 ) (2 ) Other comprehensive income/(expense) for

the period (0 3) (11 0) 1 2 (10 1) (0 6) (10 7)

t te eerne 2 2 22 2 2 2 22 5 2
ssse of share capital 0 3 2 7 3 0 3 0
Profit for the period 10 8 10 8 0 1 10 9
Other comprehensive income/(expense) for

the period (0 1) 1 (0 ) (3 0) 10 9 0 11 3

t te eerne 2 2 2 2 2 2 2 22 2

t te eerne 2 2 2 2 2 22 2 2
ssse of share capital 0 1 1 1 .5 1 .5
hanges in treassry stocc (0 7) 1 0 0 3 0 3
Profit for the period 3 6 3 6 (0 3) 3 3
mpact of changes in scope of consolidation 0 0 (2 ) (2 ) Other comprehensive income/(expense) for

the period (0 3) (11 0) 1 2 (10 1) (0 6) (10 7)

t te eerne 2 2 22 2 2 2 22 5 2
ssse of share capital 0 3 2 7 3 0 3 0
Profit for the period 10 8 10 8 0 1 10 9
Other comprehensive income/(expense) for

the period (0 1) 1 (0 ) (3 0) 10 9 0 11 3

t te eerne 2 2 2 2 2 2 2 22 2

P. 7

Consolidated Statement of Cash Flows for the year ended December 31, 2014

in euro mi ion )

Cash flows from operating activities

Year ended December 31

2014 2013

Preetax pro it o con o idated companie 15 1 11 3

Adju tment to reconci e preetax pro it to ca h nenerated rom operation 9 5 5 9

a t 8 . 8 6

a a o l a a .3 .7

.4

aa .3 .3

a .4 6

s a a a o 2 8

_ o s l a a l a .3

ncome tax paid 4 6) 4 0)

Cash generated by operations 20 0 13 2

ioidend rom equitteaccounted companie 0 7 0 3

hanne in operatinn oorrinn capita 8 6 4 6

Net cash from operating activities 29 3 18 1

Cash flows from investing activities

Purcha e o intannii e a et 0 3) 0 3) Proceed rom a e o intannii e a et 0 1 0 1

Purcha e o propertty p ant and equipment 9 7) 6 7) Proceed rom a e o propertty p ant and equipment 0 8 6 6

mpact o channe in cope o con o idation 3 7

ther mooement 0 8) 0 3)

Net cash from j(sed in) investing activities j9 9) 3 2

Cash flows from financing activities

Proceed rom i ue o hare on conoer ion o iond 3 0 1 5

Purcha e )) a e o trea urt tocr 0 3

Proceed rom neo iorrooinn 28 3 9 2

ond conoer ion 3 0) 1 5)

epatment o iorrooinn and ooerdra t 22 5) 36 0)

ther mooement 1 1) 3 4)

Net cash from j(sed in) financing activities 4 j23 1)

ncrease jdecrease) in cash and cash eq(ivalents	24 1	j1 9)
a h and ca h equioa ent at ieninninn o period	48 0	50 6
a h and ca h equioa ent rec a i ied a a et he d or a e	0 3)	0 2)
E ect o channe in oreinn exchanne rate on ca h and ca h equioa ent	0 9	0 5)
Cash and cash eq(ivalents at period end	2	48 0

P. 8