Coats

Factory

Understanding Coats

Prospects

We enter 2018 in a strong position, with continued momentum in our Apparel and Footwear and hi-tech Performance Materials businesses.

Whilst market conditions in our North American Crafts business are expected to remain challenging, our new management team has commenced implementation of a refocused strategy.

We expect 2018 adjusted operating profits to benefit from the incremental full year contribution from the Patrick Yarn Mill acquisition, and the anticipated first year benefits from the Connecting for Growth programme.

As such, 2018 adjusted operating profits are expected to be slightly ahead of previous management expectations.

We will also continue to focus on cash flow generation in order to allow us to continue to reinvest in both organic and inorganic growth opportunities.