Chargeurs : New strategic internal investment for Chargeurs Protective Films

NEW STRATEGIC INTERNAL INVESTMENT FOR CHARGEURS PROTECTIVE FILMS

PRESS RELEASE

Paris - November 10, 2017

"This investment paves the way for a new ramp-up in activity for Chargeurs Protective Films as it focuses on high value-added market segments from Novacel range. Chargeurs is continuing with Game Changer, its program to accelerate and optimize operations that combines qualitative internal change with external acquisitions", said Michaël Fribourg, Chairman and Chief Executive Officer.

As part of Game Changer, its program to accelerate operations and double profitable revenue for the Group over the next five years, Chargeurs has announced its commitment to an internal investment envelope of more than €20 million for Chargeurs Protective Films.

Over the next 24 months, Chargeurs will be commissioning a new coating line at one of its Western entities that will be devoted to its Protective Films business and the production of highly technical films with very high value-added. The first production samples and first sales are expected in 2019.

Capitalizing on a geographic positioning that enables it to work very closely with its target markets, and part of a smart manufacturing center, this unique technological production line will integrate state-of-the-art industrial functionalities for smart - automation, virtualization, Big Data, modeling, etc. - and sustainable - huge energy gains - control, placing the division among the world's frontrunners in Industry 4.0.

This investment should also optimize the return on capital employed for the Group's divisions over the long term.

This new techno-smart project, which will enable the division to increase its industrial and commercial scope and accelerate its organic growth, is based on the four core pillars of the Game Changer program:

• Innovation: acceleration in the launch of disruptive and highly technical innovation in line with continuous market growth and constant improvement in production capacities.

• Production: strengthening of the industrial performance of the division's assets.

• Sales and marketing: contribution to the success of high value-added products (Low Noise and Laser Fiber among others).

• Talent management: modernization of the industrial organization in place at Chargeurs Protective Films to enable it to develop its value chain, and creation, as part of an ad hoc department, of a Smart Production Unit to manage the industrial strategy for smart production and the optimization of the production tool.

With more than 600 employees based in 17 countries, revenue of €250.3 million in 2016 and organic revenue growth of 6.5%, Chargeurs Protective Films is the world leader in self-adhesive plastic films for the temporary protection of fragile surfaces.

Financial Calendar

Tuesday, November 14, 2017 (after trading) Third-quarter 2017 financial information

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 1,500 employees based in 34 countries on five continents, who serve a diversified customer base spanning more than 70 countries.

In 2016, revenue totaled more than €500 million, of which over 90% was generated outside France.

CONTACT

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

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