annual report - antalis · sequana / 2014 annual report 07. ... beaufret 64 years old,...

A N N U A L R E P O R T

02/17CONSOLIDATING

OUR FUNDAMENTALS 04/06

Interview with the Chairman and CEO07/09

Corporate Governance10/13

Results14/15

Strategy16/17

Stock exchange

18/29DISTRIBUTING

AND PRODUCING PAPERS AND SOLUTIONS FOR THE FUTURE

20/21 Ramp-up of packaging and visual

communication business 22/23

Heading for the digital world24/26

Priority to technical papers and solutions27/29

Priority to innovation and added value

30/47COMFORTING

OUR COMMITMENTS

32/33 Group policy

34/39 Natural Resources

40/43 Human Resources

44/45 Eco-friendly products

46/47 Social responsibility

Antalis operates in four business segments where it enjoys solid market positions: printing papers, office papers, packaging products and solutions, and visual communication materials. Sequana generates over three fourths of its sales in the distribution business.Arjowiggins is positioned in niche market segments with three divisions: • Arjowiggins Creative Papers produces premium fine papers, papers for technical applications,

for secured documents, and for printed electronics applications. • Arjowiggins Graphic manufactures recycled pulp and papers, specialty papers, along with

coated and uncoated papers.• Arjowiggins Security produces banknote paper as well as security and access control solutions. With over 9,600 employees in more than 45 countries, Sequana serves a business portfolio of corporate customers and printers worldwide, and is committed to corporate responsibility. Sequana delivered sales of €3.4 billion in 2014.

Sequana is a major player in the paper industry, boasting top-ranking positions in B2B distribution with Antalis – No. 1 in Europe and No. 2 worldwide – and a global leadership in the production of creative and technical papers through Arjowiggins.

01Sequana / 2014 Annual Report 01

CONSOLIDATINGOUR FUNDAMENTALS

02

Sequana / 2014 Annual Report 03

“ Our 2014 performances are encouraging considering the major projects implemented in the Group.”

Interview with the Chairman and CEO

What is your view on the Group’s FY2014 performance?For the first time in four

years, both our sales and EBITDA have registered growth despite a printing paper market that remains challenging. The growth of sales to €3.4 billion was primarily driven by additional sales from the Xerox office paper distribution business, as well as by the expansion momentum in specialties, packaging and visual communication. Over the year, the favourable downtrend of input costs (paper pulp and energy in particular), the reduced overheads and enhanced product mix have helped us grow our EBITDA up 5.6% to €124 million. Our net income was positive at €117 million thanks to the favourable impact of the Group’s financial restructuring plan. This is an encouraging performance, considering the major projects implemented in the Group in 2014 in order to transform Arjowiggins’ operations and consolidate Antalis’ position.

Tell us about the progress of the Arjowiggins restructuring plan.One year after announcing the operational restructuring of Arjowiggins’ printing and writing paper operations, we are perfectly aligned with our plans. Last December, we definitively exited the US coated paper market with the sale of Appleton Coated to Virtus Holding LLC, founded by the company’s senior managers. In France, a highly structured process was followed to search for potential buyers to take over the Wizernes and Charavines mills. Our efforts have unfortunately been unsuccessful for the time being and both sites will cease their production by the end of the first half-year. This restructuring plan will have a positive impact on the Group’s accounts starting in the second half-year 2015. Considering that the restructuring of Arjowiggins still remains to be finalised in 2015, the Board of Directors has decided that no dividend would be paid for fiscal year 2014.

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The financial performance of Antalis has improved significantly in 2014. Is this attributable to the integration of the Xerox office paper distribution business?The acquisition of Xerox’s office paper distribution business has indeed contributed up to 4.5% to the growth of Antalis’ sales. Its integration was a full commercial success, with profitability exceeding our expectations, but it was not the only driver of improved sales. For many years now, Antalis has been focusing steadily on improving its customer service level while reducing its overhead costs in its traditional businesses, thereby placing the company in a more favourable position to face the declining printing paper market. This year, nearly €40 million were invested in restructuring expenses, in particular to optimise the supply chain. In Germany for instance, we have outsourced freight transport and streamlined the number of distribution centres from twelve down to only four.

Last but not least, the Packaging and Visual Communication businesses have been growing steadily, now accounting for 18% of Antalis’ sales and 32% of its gross margin. These market segments are expected to continue growing significantly over the coming years.

In distribution, the competitive landscape is undergoing deep changes. Is this an opportunity for Antalis?While unfortunate, the near-disappearance of Antalis’ main competitor is a good illustration of the situation of the printing paper market in Europe. In this declining sector with too many players, our strict management, the quality of our service level and inventory control constitute decisive and differentiating assets. Since April, our business has been growing significantly in some countries, particularly in the UK and Netherlands.

Why did you sell Arjo Wiggins Ltda in Brazil? Is this a prelude to a disposal of the banknote business in Europe?The main activity of Arjo Wiggins Ltda is the manufacturing of papers for banknotes, primarily for the Brazilian market. Consequently, it offered very little synergy potential with our other production operations. The sale of this subsidiary to the Fedrigoni Group, closed under satisfactory financial conditions, will shore up Arjowiggins’ financing capacity, in particular to invest in the construction of a deinked pulp unit at the Bessé-sur-Braye mill. This capital investment will help the Graphic Division comfort its positions in recycled papers where it is the European market leader. On the banknote paper segment, we will continue to operate our mills at Crèvecœur in France and Apeldoorn in the Netherlands whose business is export-oriented.

05Sequana / 2014 Annual Report

You are also selling the Security Solutions operations of Arjowiggins although they are positioned in buoyant market segments. Why?This deal is a tremendous opportunity for our Group since it fully releases Arjowiggins from its debt. The Impala Group who, prior to this transaction, had acquired Arjowiggins’ full €125 million debt, will acquire 85% of Arjo Systems and Arjowiggins Solutions in compensation for a €110 million debt write-off and cash repayment of the remaining €15 million balance by Arjowiggins. Thanks to this deal which values the Security Solutions businesses at €130 million, we will thus regain enough leeway to contemplate new forms of financing, along with expansion plans in our strategic markets, particularly in recycled papers and in distribution on the packaging and visual communication segments. As for Arjo Systems and Arjowiggins Solutions, now backed by a group with

“ We regain enough leeway to expand in our strategic markets.”

substantial resources to support their growth, they will be able to pursue their momentum of expansion and value creation. We will keep a share in the growth of these companies via our 15% minority stake.

The Group’s capital ownership structure is changing. What will be the impact for Sequana?If approved by the Shareholders Annual General Meeting, the amended maturity dates and redemption terms of the equity-redeemable ORA and ORNANE notes will enable the Impala Group to become one of Sequana’s reference shareholders, while the related share capital dilution will be reduced from over 30% down to 20% for the benefit of current shareholders. This equity investment by Impala in Sequana’s share capital, and its subsequent appointment to the Board of Directors, represented by the renowned French investor Jacques Veyrat, are a clear acknowledgement of the validity of our business strategy and growth potential.

What is your medium-term outlook on the Group, considering the change in Arjowiggins’ scope? On completion of these ongoing operations, Sequana will earn over three-fourths of its sales in the distribution business where our strategy consists in continuing to contribute to the market consolidation in our traditional activities, while actively pursuing our policy of targeted acquisitions in Packaging and Visual Communication. In the production sector, Arjowiggins will refocus on specialties in niche markets where it enjoys solid leading positions. With a streamlined scope and profitable business activities, Arjowiggins has all the assets in hand to consolidate its market positions and win new contracts, thanks in particular to its innovation expertise. The commitment of all Group employees has proved decisive to carry out successfully the major restructuring processes implemented in 2014. I wish to take this opportunity to thank them all very warmly. I have full confidence in their ability to continue to support the Group’s expansion and to create value for all of our stakeholders.

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Pascal Lebard 52 years old, Chairman & Chief Executive Officer of Sequana, Chairman of Antalis and Arjowiggins

Hervé Poncin 51 years old, Senior Executive Vice-President of Sequana, Chief Operating Officer of Antalis

Xavier Roy-Contancin 56 years old, Group Chief Financial Officer

Antoine Courteault 58 years old, Corporate Secretary

Guy Léonard 62 years old, Group Human Resources Director and Chief Operating Officer of Arjowiggins

Corporate Governance

Executive Committee


Board of Directors

Corporate Governance

The Board met on 14 occasions in 2014, with directors’ attendance rate at 84%. Meetings focused mainly on the Group’s financial and operational restructuring processes and its day-to-day business operations.

Sequana’s Board of Directors comprises six independent directors out of its nine members. Its membership complies with the recommendations of the AFEP-MEDEF corporate governance code both in terms of directors’ independence and of gender equality, with one third female directors.

1 - Pascal Lebard 52 years old, Chairman & Chief Executive Officer, Chairman of Antalis and Arjowiggins

2 - Jean-Pascal Beaufret

64 years old, Vice-Chairman, independent director, partner and member of the Management Committee of Portalis AM, and member of the Investment Committee of Aurinvest Capital 3

3 - Luc Argand 67 years old, independent director, Partner at the law firm Pfyffer & Associés (Switzerland)

4 - Christine Bénard 47 years old, independent director, Managing Partner of G-G+

5 - Odile Desforges 65 years old

6 - Jean-Yves Durance

72 years old, independent director, Chairman & Chief Executive Officer of Société Immobilière du Palais des Congrès (SIPAC)

7 - Marie Lloberes 57 years old, independent director, Executive General Manager of the Services Branch at La Poste

8 - Michel Taittinger 71 years old, independent director

9 - Bpifrance Participations represented by Bertrand Finet, 49 years old, Executive Manager of SME Equity Investment at Bpifrance Investissement

10 - Éric Lefebvre 47 years old, non-voting observer, Head of Investment at Bpifrance Participations

1 2 3 4 5

6 7 8 9 10

08

he Board’s Committees act within their respective remit as defined by the Board of Directors. While they proactively prepare the

Board’s work and draft proposals, they have no decision-making power. The committees report on a regular basis to the Board who takes decisions that are then reported to the shareholders by the Board Chairman.

Nominations and Compensation Committee chaired by Jean-Yves Durance

It comprises three members, including two independent directors. Its prerogatives cover the compensation paid to corporate officers and key executives, and the Group’s policy on stock-options and free-share awards. It also reviews matters relating to the membership, organisation and operation of the Board and its committees.

The Nominations and Compensation Committee met three times in 2014, with an attendance rate of 89%.

Audit Committee chaired by Jean-Pascal BeaufretIt comprises three members, all independent directors. It focuses on five areas: verification of accounting principles; approval of half-yearly and annual corporate and consolidated financial statements; internal control; review of the Group’s financial position and any risks to which it may be exposed; and the status of Statutory Auditors (appointment, independence).

The Audit Committee met four times in 2014, with an attendance rate of 67%.

Board Committees

Strategy Committee chaired by Luc ArgandIt comprises four members, two of whom are independent directors. It makes proposals to the Board on the Group’s key strategic orientations, and reviews investment opportunities.

The Strategy Committee did not meet in 2014 as it was decided that, during the time of the Group’s transformation plan, all debates on strategic issues would be held in plenary sessions of the Board of Directors.

T


2014 Results

SEQUANA GROUPConsolidated sales were up 1.6% year-on-year to €3,369 million at constant exchange rates (up 1.3% on a reported basis). This included 3.4% growth linked to the full-year consolidation of Xerox’s office paper distribution business (approximately €195 million).

The resilience of Arjowiggins’ specialty businesses and sustained growth in Antalis’ Visual Communication and Packaging businesses partially offset the decline in printing and writing paper volumes.

EBITDA reached €124 million, accounting for an EBITDA margin of 3.7% (up 0.2 points). Sequana benefitted from lower input costs (mainly pulp and energy), a positive impact from lower overheads, and an enhanced product mix.

Recurring operating income totalled €72 million. This year-on-year improvement is mainly attributable to the lower depreciation expense recognised by Arjowiggins (€11 million) following the impairment losses booked in 2013, but also to productivity gains made over the period in both distribution and production.

Operating income takes into account other operating income and expenses amounting to €119 million. These mainly comprise non-recurring items: a net gain of almost €260 million arising from the Group’s financial restructuring plan and €107 million in net restructuring expenses (of which €68 million relating to Arjowiggins and €37 million to Antalis).

Net income attributable to owners was €117 million for the year.

Sequana’s performance has shown good resilience in FY2014 during a period highlighted by the implementation of Arjowiggins’ transformation plan and the consolidation of Antalis’ position in a still challenging printing paper market.

Condensed analytical income statement

In € million (except for EPS data) 2014 2013 % change(*) 14/13 Sales 3,369 3,326 +1.3%EBITDA** 124 117 +5.6%EBITDA margin (as% of sales)* 3.7% 3.5 % +0.2 pointsRecurring operating income 72 49*** +47.6%Operating margin (as% of sales)* 2.1% 1.5 % +0.6 pointsNet income attributable to owners 117 (301) NADiluted earnings per share (€) 1.72 (9.76)Average number of shares after dilution 67,579,672 30,829,134

(*) Percentage and margin changes are based on figures rounded out to one decimal place.(**) EBITDA: recurring operating income before depreciation and amortisation and excluding movements in operating provisions.(***) Includes a €12 million gain on changes to pension plans.

Net debt (in € million)

The decrease of €226 million between 31 December 2013 and 31 December 2014

reflects the positive impact of the Group’s financial restructuring plan.

RESILIENT RESULTS DURINGA PERIOD OF TRANSFORMATION

2012 2013 2014

538 537

311

10

46%Antalis Printing Papers

14%Antalis Visual Communication & Packaging

11%Arjowiggins Graphic

4%Arjowiggins

Creative Papers

8%Arjowiggins Security

17%Antalis Office Papers

Sales by segment

Sales by region

48%Europe (excl. France & UK)

1%USA

13%France

22%UK

16%Rest of World

Average headcount by geographic area

33%Europe

(excl. France & UK)18%Rest of World

31%France

17%UK

1%USA

In late April 2015, Sequana crossed a decisive step in its ongoing transformation process with plans for asset disposals that will enable Arjowiggins to fully pay off its debt and shore up its financing capacity.

The following disposals should be finalised over the next few months:

• Sale of Arjo Wiggins Ltda to the Fedrigoni Group for an enterprise value of €85 million. The main activity of this Arjowiggins subsidiary is paper manufacturing for banknotes and secure documents in Brazil, with sales reaching approximately €70 million in 2014.

• Sale of 85% of Arjo Systems and Arjowiggins Solutions to the Impala Group. These subsidiaries operate respectively in proof-of-identity solutions (e-passport, ID cards, driving licenses, etc.) and in access control solutions (public transit, event ticketing, etc.). In 2014, the two businesses earned approximately €54 million in sales and €7 million in EBITDA.

The Impala Group who has acquired Arjowiggins’ €125 million syndicated loan, will buy 85% of the Security Solutions businesses in compensation for a €110 million debt write-off and cash repayment of the remaining balance by Arjowiggins.

Concurrently with the acquisition of Arjowiggins’ debt, the ORNANE notes were transferred over to the Impala Group. If approved by the Shareholders Annual General Meeting in June 2015, the amended maturity date and redemption terms of ORNANE notes would enable Impala to become one of Sequana’s main long-term shareholders.

Recent events


2014 Results

60%Print 22%

Office

12%Packaging

6%Visual Communication

The 2.2% sales growth reflects primarily the scope effect related to the acquisition of the Xerox office paper distribution business in Western Europe contributing 4.5% to sales growth (approximately €195 million). It also reflects the sustained expansion of the Packaging and Visual Communication businesses, up 6% and 7% respectively.

Sales by business

EBITDA was up 14.6% thanks to the enhanced product mix, the positive impact of consolidation of the Xerox office paper distribution business and to reduced overheads after restructuring, particularly across the supply chain, offsetting the negative impact of lower volumes in printing and writing papers.

73%Western Europe

14%Rest of World

13%Eastern Europe

EBITDA by region

ANTALIS

Sales by region

41%Western Europe

(excl. France & UK) 12%Eastern Europe

13%France

9%Rest of World

25%UK

Key figures 2014

In € million 2014 2013Sales 2,585 2,528EBITDA 80 70EBITDA margin (as % of sales) 3.1% 2.8%Recurring operating income 55 44(1)

Operating margin (as % of sales) 2.1% 1.7%

Capital employed at 31 December 479 476Recuring operating income/ Capital employed (ROCE) 11.5% 9.2%

Net debt at 31 December 250 199(1) Including gains of €5 million linked to changes in pension plans

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Sales were down 1.8% in 2014, reflecting the continued volume drop in standard coated and fine papers. Conversely, the specialty businesses showed good resilience (in particular transfer and tissue papers and bookbinding). The brisk expansion of access control solutions has offset the decline in banknote paper volumes in Brazil linked to destocking by the National Mint and the Central Bank in 2014.

Sales by Division

24%Creative Papers

38%Green

28%Coated

34%Specialties 27%

Security

49%Graphic

EBITDA was down 3.9%. In FY2014, Arjowiggins benefitted from the positive effect of lower input costs (pulp, energy, chemicals) and from an enhanced product mix, which almost fully offset the lower volumes of printing papers and banknote paper in Brazil.

44%Security

17%Graphic

39%Creative Papers

EBITDA by Division

ARJOWIGGINS


Key figures 2014

In € million 2014 2013Sales 1,020 1,039EBITDA 54 56EBITDA margin (as % of sales) 5.3% 5.4%Recurring operating income 28 15(1)

Operating margin (as % of sales) 2.7% 1.5%

Capital employed at 31 December 248 235Recuring operating income/ Capital employed (ROCE) 11.3% 6.6%

Net debt at 31 December 67 325(1) Including gains of €7 million linked to changes in pension plans

34%Europe

(excl. France & UK)

5%USA

12%Rest of World

20%Asia

16%France

13%UK

Sales by region

4 KEYSTRATEGICORIENTATIONS

Strategy

In an effort to counteract this fundamental trend, Sequana has been expanding for several years in more profitable and promising market segments: packaging and visual communication in the distribution business, recycled and specialty papers in the production sector.

Stepping up the pace of expansion of Antalis in “non-paper” businesses As the leading distributor of printing and office paper in Europe, Antalis also has an extensive footprint in the packaging and visual communication segments which enjoy a higher growth rate than the paper market.

In order to diversify in these markets where it already holds solid positions, the Group has been pursuing a policy of well-targeted acquisitions that has steadily contributed to growing its gross margin. As of 2014, Antalis now enjoys enhanced financial headroom to continue this acquisition policy.

Refocusing the Group on the most dynamic and profitable market segments

Sequana has been gradually refocusing its business activities on distribution where it is the European leader with Antalis, and reorienting Arjowiggins on specialty markets where it enjoys top-ranking positions.

Refocusing Arjowiggins on specialty papersOn the standard coated paper market, Arjowiggins has suffered chronic losses due to high raw material prices, primarily for paper pulp, and to downward pressure on selling prices linked to overcapacities on the market.

Faced with a renewed deterioration of the printing paper market in 2013, Sequana decided to reduce significantly the Group’s exposure to this segment. Appleton Coated was sold in late 2014, thus enabling the Group to exit definitively the US coated paper market. In addition, a disposal/closure plan was initiated in April 2014 for the Wizernes mill in France, in order to refocus the Graphic division on recycled and specialty papers. On completion of the operational restructuring process planned in 2015, standard coated paper will account for approximately 5% of total Arjowiggins sales.

he printing paper market is undergoing deep changes due to the growing use of Internet and electronic media. Since 2008, volumes have fallen around 8% per annum in Europe. In such an

environment, Sequana has implemented substantial restructuring and cost-cutting measures. Confronted however with the ongoing deterioration of market conditions in 2013 and the expected downtrends over the coming years, Sequana has speeded up the pace of its strategic plan.

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14

As a general rule, some market consolidation is imperative in a declining sector such as printing and writing papers, among others because it helps preserve a critical size effect and develop synergies, particularly in terms of costs. Sequana thus ambitions to comfort the leadership of Antalis in Europe, and the recent acquisition of Xerox’s office paper distribution business in Western Europe in late 2013 highlights this strategy. Strengthening the Group’s base in Europe where paper distribution remains its core business is essential to continue its expansion in high-growth countries and market segments.In the future, Antalis will continue to seize any opportunities and contribute to the necessary consolidation of this market sector.

Sequana also intends to bolster the activities of Arjowiggins in the recycled paper market where the Group is already a European leader, and in other business sectors where it enjoys top-ranking market positions. In line with this strategy, plans are under consideration to build a deinked pulp unit at the Bessé-sur-Braye mill (France) in order to comfort the Graphic Division’s leadership in the recycled paper market.

Enhancing operational efficiency in each of its businesses is crucial for the Group. Accordingly, Antalis is focusing on the optimisation of its sales organisation and logistics network, while retaining a premium service level.

Arjowiggins continuously adapts its production capacities to match the changing demand. In April 2014, the Creative Papers division initiated an operational restructuring plan designed to consolidate its fine paper production in a limited number of mills, and optimise its tracing paper production facilities. This plan is supported by a shift in the division’s business model, in particular with simplified product ranges, intended to boost its competitiveness and profitability.

Lastly, Sequana is leveraging the full potential of its businesses by shoring up the commercial links between Antalis and the Graphic and Creative Papers divisions.

Sequana regards customer service as a key success factor of value creation. In distribution, Antalis places customer care excellence at the core of its sales organisation. Following the completed roll-out of the RACE 2012 business model transformation plan, the Group has launched the DNA (Deliver the New Antalis) initiative intended to capitalize on previously identified drivers of operational efficiency.

Arjowiggins focuses on innovation, backed by its R&D departments in each division. Developments of new products, research on new product applications, enhanced product quality and reliability all contribute to the continuous improvement of customer relations. The launch of PowerCoat® by the Creative Papers division is a perfect example of this approach. PowerCoat® is a substrate for printed electronics that opens up a whole new scope of opportunities, as a powerful communication vector in the packaging and advertising sectors among others.

Improving efficiency and operational performance

Contributing to the consolidation of the paper industry

Continued priority to innovation and customer service


SEQUANAON THE STOCK EXCHANGE

Stock exchange

Rights issue Sequana carried out a capital increase with preferential subscription rights, under a rights offer opened from 1 to 15 July 2014.

Prior to its launch, the Shareholders’ General Meeting had voted on 25 June 2014 to authorize a share capital reduction via a decrease of the share par value from €9 down to €1. The capital reduction amount was incorporated to the retained loss for fiscal year 2013.

The €63.8 million gross initial issue was increased to €66.3 million after partial exercise of the extension clause. Three of Sequana’s main shareholders at that time – Bpifrance Participations, Exor SA and the Allianz Group – fully exercised their preferential subscription rights prorata to their equity holdings (“à titre irréductible”), i.e. €30,415,563 representing 11,927,672 new shares. On completion of the rights issue which resulted in the creation of 26,019,500 new shares, Bpifrance Participations, Exor SA, the Allianz Group and Pascal Lebard respectively held 19.68%, 17.03%, 10.01%, 6.54% and 0.25% of Sequana’s share capital.

Fiscal year 2014 was highlighted by a capital increase and an issue of ORA and ORNANE equity-redeemable bonds. Both transactions took place in the context of the Group’s financial and operational restructuring plan intended to refinance the debt of Arjowiggins, fund its transformation plan, and provide Antalis with the necessary resources to pursue its acquisition growth strategy.

The shareholding structure has changed significantly since the capital increase, notably as Exor SA and the Allianz Group have reduced their share-ownership.

Issue of ORA and ORNANE bonds In the context of the Group’s financial and operational restructuring, Sequana had issued bonds in late July 2014 as follows:• 7,000 ORA notes redeemable in Sequana

shares, each at a par value of €1,000, with a maturity date at 31 December 2018,

• 125,000 ORNANE notes redeemable in cash or in new and/or existing Sequana shares, each at a par value of €1,000, with a maturity date at 31 December 2020.

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The ORA and ORNANE notes were subscribed at par by the lenders of Sequana and Arjowiggins respectively in a debt-for-equity swap.A proposal to prepone the maturity date of ORA and ORNANE notes and to amend their redemption rates will be submitted for approval to the next Shareholders General Meeting in June 2015. If approved, this operation would enable the Impala Group, as full owner of the ORNANE notes, to acquire an equity stake in Sequana’s capital and to become one of its main long-term shareholders, while the share capital dilution would be reduced from over 30% down to 20% for the benefit of current shareholders.

Pre-transformation Post-transformationNumber of shares

in % of post-redemption

capital

in % of issued capital

Number of shares

in % of post-redemption

capital

in % of issued capital

Share capital at 30 July 2014 51,060,304 66.50% 51,060,304 78.33%

ORA 1,979,040 2.58% 3.88% 1,086,377 1.67% 2.13%

ORNANE 23,748,750 30.93% 46.51% 13,036,670 20.00% 25.53%Post-redemption capital 76,788,094 100% 50.39% 65,183,351 100% 27.66%

Effects of changes to be submitted for approval to the shareholders

Voting rights Each Sequana share entitles its holder to a voting right. Since 26 June 2014, each share registered under the name of the same shareholder for at least two years is entitled to a double voting right.

Shares consolidation On 15 November 2012, Sequana carried out a reverse stock split based on the exchange of six old Sequana shares with a par value of €1.50 each for one new Sequana share with a par value of €9. This consolidation operation lasted two years and ended on 14 November 2014. The share capital now comprises one single category of shares (ISIN code FR0011352590).

FINANCIAL CALENDAR • 29 July 2015: First half-year 2015 Results• 22 October 2015: Q3 2015 Sales

STOCK MARKET DATA Listed on Eurolist at Euronext Paris (Segment C)Indices: CAC Small® and CAC Mid & Small® -

Eligible for the “Long Only” Deferred Settlement Service (SRD Long)

Ticker symbol: SEQ ISIN Code: FR0011352590Par value per share: 1 euro

CONTACTSSequana – Shareholders Relations 8, rue de Seine – 92100 Boulogne-Billancourt, France Tel.: +33 1 58 04 22 80 E-mail : [email protected]

ADMINISTRATION OF SHARE ACCOUNTSBNP Paribas Securities Services Shareholders Relations 9, rue du Débarcadère – 93500 Pantin, France Tel.: +33 826 109 119

Key share data over 3 years

Share performance from 1 January 2014 to 30 April 2015In €

Monthly trading volumes CAC Small® (adjusted) Sequana(Source Euronext Paris)

(1) Decision subject to approval by the Shareholders General Meeting of June 2015.(2) On 15 November 2012, Sequana carried out a reverse stock split based on the exchange of one new Sequana share with a par value

of €9 for six old Sequana shares with a par value of €1.50, leading to a similar adjustment in the quoted share price.

Total number of shares traded per month

2014 2013 2012Number of shares at 31 December 51,060,304 25,011,221 25,009,372Dividend (in €) -(1) - -Share price (in €)(2)

Highest 7.75 9.63(01/01 to 14/11) 6.70(15/11 to 31/12) 10.75Lowest 2.10 5.13(01/01 to 14/11) 1.12(15/11 to 31/12) 5.97Closing price 2.64 5.70 8.24Market capitalisation (in € millions)At 31 December 135 143 206

0

1

2

3

4

5

6

7

Feb.

Feb.

Mar

ch

Mar

ch

April

May

June July

Aug.

Sept

.

Oct.

Nov

.

Dec.

Jan.

2015

Shareholding structure at 30 April 2015 Voting rights at 30 April 2015

68.79%Free float

19.68%Bpifrance Participations

8.06%Allianz Group

3.28%DLMD (incl. Pascal Lebard)

0.19%Treasury shares

30,000,000

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

0

Jan.

2014

April

67.50%Free float

19.08%Bpifrance Participations

8.64%Allianz Group

4.78%DLMD (incl. Pascal Lebard)

8 35,000,000


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DISTRIBUTING AND PRODUCING PAPERS AND SOLUTIONS FORTHE FUTURE

RAMP-UP OF PACKAGING AND VISUAL COMMUNICATION BUSINESS

businesses and printers.FL: The universe of visual communication encompasses all materials required by graphic art specialists to produce their promotional and advertising campaigns, from signage and posters to indoor and outdoor decoration for trade fairs, for instance.

What is the scope of these business activities?TS: Ten years ago, the Packaging activity was quite modest. The packaging distribution business started to soar along with the acquisition-based growth policy

What exactly is involved in the distribution of packaging products and visual communication materials?TS: We are positioned on the market segment of tertiary packaging, i.e. products and solutions designed for the protection of merchandises during their transport and storage. We supply standard products, such as bubble wrap, strapping and packing machines, or customized logistical and technical solutions, in particular for export shipping and anti-corrosion protection of industrial goods, to a clientele of large industrial groups, small

“ By expanding our offer and designing customized solutions, we are able to keep always one step ahead.”

initiated by the Group in Europe, and more recently in Latin America where an acquisition in Chile has provided us with a solid base to expand in this region of the world. We also leveraged our clientele portfolio by cross-selling packaging products to businesses who were already our customers in the Print and Office sector. Today, we have become the second largest supplier in Europe, with sales of 298 million euros, i.e. 12% of the Group’s consolidated sales.FL: And don’t forget that Antalis is one of the leaders on the European market of signage and POS advertising, with steadily growing

sales accounting for 6% of our total revenue.

What are your assets on these markets?TS: Our pan-European footprint is a key asset to help our international customers find the same products and services everywhere they operate on the continent. We also add real value for our customers, in terms of products, services and customized solutions. One of our key strengths is our ability to help our customers optimize their entire packaging and logistical process chain in order to reduce their costs and shorten their delivery lead-times while retaining high quality. FL: The ongoing expansion of our product lines is a major asset for us. For instance, in response to a growing number of printers interested in digital printing for outdoor signs, banners or posters, we designed Coala, the first European comprehensive line of visual communication materials for large printing formats. And we recently extended it further with an indoor decoration line. Our goal is to always stay one step ahead of everyone else!

3 questions to Tassilo Steinbach, Antalis Packaging Business Development Director, and François Lainé, Print & Visual Communication Marketing Director

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NEWSAntalis

In response to the sub-contracting requirements of a German automobile manufacturer, Antalis has developed an innovative packaging solution to store drive shafts, with a dual purpose: reuse the steel box pallets incorporating an anti-corrosion protection, and ensure optimum use of containers to reduce shipping and storage costs. To this purpose, Antalis designed special frame compartments and

intermediate propylene plates customised to fit the product without any waste of space. This eco-friendly solution made of 70% recycled materials provides protection against corrosion and moisture. It is also cost-efficient as it allows both for flat storage and shipping of the components, and shortened delivery lead-times.

Constantly on the lookout for trend insights and customers’ expectations, Antalis has further enriched its Coala range of materials for visual communication with the launch of 60 new products in three categories: • Laminates: a range of adhesive

vinyls designed to protect and embellish printed pictures applied indoors or outdoors.

• Easy Apply: a selection of media that can be printed, applied and

easily removed thanks to low-cost solutions requiring no professional installers.

• Digitally-printed wallpapers that can be used to decorate a shop, a reception lobby, a hotel room or a home; you create your own design, choose the paper texture among a selection of 20 references, and apply it to the wall.

Bespoke packaging

Leveraging the success of Coala, its European range of flexible signage and display solutions, Antalis has launched a complementary range of portable accessories designed for trade fairs or retail outlets. Coala Systems offers in particular portable display systems like roll-up banners, counter-top displays and foldable brochure holders. Initially launched in European markets, this offering has proved immediately successful with customers for whom Antalis has become a single contact point for a comprehensive range of display and communication products and accessories.

Portable visual communication accessories

60 new products added to the Coala range

A comprehensive packaging solution for a variety of productsOn behalf of a global manufacturer of hydraulic systems and components, Antalis has designed a comprehensive packaging solution for different products of various size and weight. The products

are placed on a corrugated board tray, possibly reinforced with wood, and foil-wrapped automatically. In line with the customer’s goal, the task of the dispatch staff is made largely easier, and the manufacturer’s brand image was upgraded to match the premium quality products thanks to this standardised solution.

ZOOM18%Antalis generates 18% of its sales in the Packaging and Visual Communication businesses.

Antalis

A machine for “smart” packaging and shippingA growing number of small businesses are now selling their products via online e-platforms like Ebay. The ePacker machine was designed specifically for Antalis to provide them with a simple, easy-to-install and easy-to-use packing solution. This small air-cushioned machine can replace loose fill bags of high volume, while still protecting the merchandise

during shipment, and helps reduce negative ratings given to the shipper by on-line buyers. In order to market this machine, Antalis initiated an innovative online marketing campaign with banners posted on Ebay, Facebook and a YouTube video. Piggybacking on the success of the campaign, Antalis will reiterate this marketing initiative in 2015.

“ Packaging and Visual Communication account for more than one third of Antalis’s gross margin.”

COALA.GREAT SELECTIONFOR GREAT IDEAS.

W A L L D E S I G N

Antalis

Antalis


Last but not least, while our customers benefit directly from the expertise and advice shared by our digital print market specialists, they can also access extensive information with a simple multi-criteria search on our e-commerce web site.

The digital print market is first and foremost a market of high-tech innovations. How can Antalis add value for its customers? Antalis is currently perceived as the specialist in digital printing, both for our product range, one of the most comprehensive on the market, and for our value-added services. In order to help our customers negotiate the digital shift, we have developed our “d2b” (digital-to-business) programme, to participate in an ecosystem of stakeholders focussed on digital printing. In the context of the d2b programme, we organise regular meetings in Europe in partnership with major manufacturers of digital printing presses (HP, Xerox, Konica-Minolta, Ricoh…) and finishing

3 questions to Xavier Jouvet, Group Marketing & Purchasing Director, Antalis

HEADING FOR THE DIGITAL WORLD

What are the special features of the digital print market?This market is growing very fast and should more than double in size by 2024. Digital printing enables small volumes to be printed cost-efficiently and with faster turnaround thanks to shorter production times. Recent progress achievements are also reflected in the steady improvement of the printing quality and the emergence of new uses, in particular for customisation. While digital printing initially became popular for photo albums, it has now spread to all areas of traditional printing applications: book publishing, direct marketing campaigns or printing on new media like customisable wallpaper.

What assets does Antalis enjoy to serve this market? On a European scale, we offer the broadest selection and most comprehensive range of products specifically adapted to the various digital printing techniques, including coated and uncoated papers, creative papers, large-format printing materials (LFP) or specialty papers. The integration of Xerox®’s office paper and digital media distribution business has further boosted our expansion on this market. Together with Xerox®, we also tested all of our other media and ranked them according to performance in order to extend Xerox product ranges for digital printing presses.

equipment (Hunkeler) or developers of software solutions (XMPie, DirectSmile…). These events help our customers familiarize themselves with the digital print sector and capture all growth opportunities offered by cross-media or web-to-print solutions. Lastly, we also sponsor the Xerox Annual European Forum and the events organised by Dscoop (Digital Solutions Cooperative, a community of HP Graphic Arts equipment users) in Europe, Asia and Latin America.

“ We offer the broadest and most comprehensive range of products.”

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NEWSAntalis

In the context of its “d2b” (digital-to-business) programme intended to help customers gain a better knowledge of the digital print market and its potential, Antalis has developed a unique marketing tool to promote its digital offering, targeting in particular corporate in-house copy departments and copy-shops. The tool compiles over

180 media tested on various Xerox digital printers and rated according to their performance. It also contains over 60 samples printed on Xerox iGen 150 and Colour Press 1000 printers. Customers can thus easily choose the media best suited to their digital printers, print out pages delivering higher added value, and leverage new applications.

After a full year of collaboration between Antalis, its suppliers and Xerox, Antalis has launched a new recycled paper for office applications, called Xerox® Recycled Supreme 100%. This premium paper made of one hundred percent post-consumer waste, is rated five stars in the Antalis Green Star System and was granted the “100% Performance Guaranteed” seal of quality,

guaranteeing top quality levels on Xerox® printers. It provides the same quality levels as a virgin fibre-based paper for customers who wish to adopt a sustainable sourcing policy. This is the first Xerox®-branded paper introduced on the market by Antalis since the acquisition of the Xerox® office and digital paper distribution business in late 2013.

A new tool to promote the digital print offering

Antalis UK launched a series of regional workshops in 2015 in order to facilitate its customers’ access to the Digital Academy training sessions usually organised at the Leicestershire head office. The first workshop held in April in Exeter was devoted to signage. The printers learned about digital printing, the basics of applying vinyls, and their specific features. The Digital Academy regional workshops are designed to help participants gain practical experience and in-depth knowledge about the signage and display market, along with opportunities to broaden their service offering and address new markets.

Antalis UK Digital Academy on the road

Xerox® Recycled Supreme 100%: best in class recycled office paper

Huge success for the Antalis e-commerce websiteNow operational in all European countries, the Antalis e-commerce website provides customers and prospects with 24/7 access to detailed information, along with extensive advice and services. The website is regularly updated and compiles since 2014 the full Xerox®-branded paper range. It also offers on-line payment in several European countries. With 1.5 million order lines and a sales penetration rate 4 points higher than in 2013, the website has proven its efficiency and ability to create value.

ZOOM

“ Thanks to a dedicated sales team established in 2014, Antalis digital media sales grew by 29% in volume and 16% in value in the UK.”

Antalis

Antalis

“ We offer the broadest and most comprehensive range of products.”


What are your assets in the recycled paper market? The penetration of recycled papers into the graphic paper segment still remains low, unlike for packaging paper or newsprint for instance. In this steadily growing segment benefitting from the expansion of CSR policies, we are uniquely positioned in the market. Thanks to our Greenfield mill, the single manufacturer of premium-grade recycled commercial pulp in Europe, we have developed a selection of unparalleled scope, ranging from 100% recycled papers in extra-white or natural shade, to a line of papers blending FSC®-certified virgin fibres with recycled fibres. In addition, the increasing demand for shorter printing runs has fostered a fast growth of the digital printing market, and stepped up the use of eco-responsible papers.

Arjowiggins is refocusing on specialty papers. What does it mean for the Graphic division?This shift in focus responds to the need for trimming down our operations in the chronically loss-making segment of standard coated papers, where pressure on selling prices linked to overcapacities on the market, high costs of raw materials, and virgin pulp in particular, all have a significantly negative impact on our margins. In 2014, we therefore decided to consolidate our paper production in a limited number of mills, in order to reduce our exposure to the coated segment, and to refocus on specialties and recycled papers where we are the European leader. In line with these plans, the disposal/closure process for the Wizernes mill will be finalised by the end of the first half-year 2015.

“ We have just launched a new 100% recycled paper for ink-jet digital printing.”

PRIORITY TO TECHNICAL PAPERS AND SOLUTIONS3 questions to Agnès Roger, Managing Director of Arjowiggins Graphic

This shift opens up tremendous opportunities for innovation and expansion for us. As an example, we have just launched a new 100% recycled paper for ink-jet digital printing, certified by all ink-jet printing press manufacturers in the industry. In the digital printing sector, we recently invested in a sheeting and packing line designed for these highly specific formats, which will enable us to increase our production capacity and adapt our cutting precision to the new ultra high-speed printing presses.

What are your key strengths in specialties? One of our key assets is that we operate in niche markets where we enjoy solid positions. In addition, we manufacture specialty papers for highly diversified applications: labelling and soft packaging

materials, advertising posters, textile transfer, etc. We also produce laminated paper for prepaid phone cards, retail loyalty cards, gift cards or playing cards for casinos, as well as tissue papers used for napkins and tablecloths or for hygiene applications where we are the market leader in coloured tissue paper with a range of 160 shades. Our ambition is to step up our pace of expansion in these various market segments by capitalizing on our know-how, in particular in environmentally friendly products, and leveraging our innovation expertise.

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NEWSArjowiggins Creative Papers

PowerCoat® Alive combines the award-winning substrate developed by Arjowiggins Creative Papers for printed electronics, with premium fine papers. This combination gave birth among others to Conqueror Alive and Curious Alive, two

well-known brands in interactive applications. Their originality stems from the NFC chip embedded into the papers that can be used by any converter or printer to create smart and interactive applications.

PowerCoat® Alive revolutionises communications

“ Post restructuring, Arjowiggins will make 95% of its sales in specialty papers.”

Arjowiggins Security

Banknotes made of Diamone® Xtra paper, initially introduced on the market in 2013, will soon be in circulation in an African country. This multi-layer extra-high durability paper, the latest born in the Arjowiggins Security range of high durability papers, is made from 100% cotton fibres, and designed to withstand any types of stains. Banknotes printed on this new paper can stay in circulation three times longer than those printed on standard paper. They are protected with a watermark, a security thread and an iridescent band. Diamone® Xtra is thus ideally suited to withstand the extreme climate conditions in Africa and multiple daily handling of banknotes.

First Diamone® Xtra reference in Africa


IN BRIEF

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The gold or silver maple leaf investment coins minted by the Royal Canadian Mint, feature among the most preferred investments on international markets. In order to guarantee to investors the authentic nature of a coin, the Royal Canadian Mint has opted for the Signoptic™ technology.

The process allocates a single signature to a coin and generates a unit identifier linked to an authenticator to ensure traceability, thereby enabling Mint-authorised merchants to verify in a few seconds the authenticity of the investment coins brought by their customers.

Sequoia is a laminated paper solution offering an alternative to plastics for retail loyalty cards, gift cards or prepaid cards. In 2014, in response to market expectations on CSR,

Arjowiggins has fleshed out the Sequoia product range with a new 100% recycled version. While retaining its premium quality in terms of printing and rigidity, Sequoia Recycled features

the best in class performance in its market segment, with a carbon footprint 20% lower than virgin fibre-based paper.

Secret security for perfumes In the perfumery and cosmetics industry, the FS-A2 Signoptic® scanner delivers an innovative solution for premium brands to fight against parallel trade channels. This new technology verifies the authenticity of a perfume case via an optical scan confirming the single identification number and authenticity of the product, without disclosing to the scanner user any confidential data linked to the operation of the Signoptic system. This solution provides a way for multinationals to prove counterfeiting and win their court cases against illicit trade networks, and has enabled Arjowiggins Solutions to comfort its global leadership in the perfumery industry. Authenticated value

100% recycled, 100% efficient laminates


NEWS


Arjowiggins Healthcare

From white tissue to coloured tissueCapitalising on the success of Easy Print in the white tissue market, Arjowiggins Graphic has launched Kaleïdo Easy Process, an adaptation of this product for the coloured tissue market. Thanks to a unique glued-ply tissue process, the products provide enhanced printing quality for Easy Print and improved industrial efficiency for Kaleïdo Easy Process. This innovation has helped the Group successfully gain a solid footprint in the North American market, thereby opening up new growth prospects for the entire range of Kaleïdo coloured tissue paper.

The Central Bank of Turkey has awarded Arjowiggins Security a contract for the production of paper to be used for printing 800 million Turkish banknotes, a major challenge since these notes are among the most sophisticated in the world. Apart from conventional security features (watermarks, security thread, fibres), a holographic band on the front and iridescent coating on the back provide additional security. Deliveries started in 2014 and will extend until late 2015.

Arjowiggins Healthcare has signed the first sales of its new Polybond, a porous substrate designed for sterilisation packaging, consisting of 50% cellulose fibres and 50% synthetic fibres. This highly resistant hybrid substrate provides medical device manufacturers with a genuine alternative to 100% synthetic solutions for heavy-weight, bulky and blunt medical devices.

Highly secured Turkish banknotes

In the context of the launch of its new Pro™ C9100, Pro™ VC60000 and Pro™ C7100X printers, Ricoh selected Arjowiggins Graphic’s 100% recycled Cocoon Silk and Cocoon Jet Pro papers to print on the Ricoh IP5000 / Ricoh Pro C9110 at the New Dawn event the book ‘The Real Mad Men’, based on the popular television series ‘Mad Men’. The publication successfully showed how a digital print can deliver a high quality alternative to offset printing, especially for short print runs and customisation, while retaining an optimum product quality.

Digital printing: an alternative to offset printing?

New packaging for medical devices

Arjowiggins Graphic

Arjowiggins Graphic

The London-based designer Studio Kunze opted for the 100% recycled CyclusOffset paper to print the new product catalogue of Passoni, an Italian manufacturer of premium bicycles. The design conveys an image of subtle luxury to the bicycles,

in line with Passoni’s rebranded image and identity. The catalogue was printed in A3 format to bring out the heroic element of the bikes. The CyclusOffset paper highlights the quality of the prints, and reflects Passoni’s craftsmanship and

attention to details. Antalis has sent this catalogue to over 1,800 customers to showcase CyclusOffset and demonstrate how its premium quality can enhance the value of upscale products.

CyclusOffset invited to pedal along with Passoni

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CyclusOffset invited to pedal along with Passoni

collaboration with Arjowiggins Graphic and one of our customers specialized in the supply of labelling systems to develop a product solution for their food packaging labelling process that is more efficient and environmentally-friendly than traditional labelling processes.

How are these priorities reflected in your product offer? We are continually adapting our offer in relation to the changing demands of the market and of our customers. In the field of Green papers for instance, Antalis has built an environmentally-friendly product offering that is one of the broadest available on the market today. It adheres to stringent environmental credentials to meet our

Why are innovation and adding value high priorities for Antalis?Innovation is crucial to anticipate and meet the ever-changing needs of our customers and to create new growth opportunities. By offering our customers a choice of premium quality products and high added-value services it gives them options to develop their own businesses and opportunities to gain a real competitive edge with their own clients. This approach is deeply anchored into our DNA; it is actually part and parcel of the “DNA - Deliver the New Antalis” initiative launched by the Group in order to enhance our efficiency and deliver more added value to our customers. As an example, we have worked in close

“ Innovation is deeply anchored into our DNA.”

PRIORITYTO INNOVATION AND ADDED VALUE 3 questions to David Hunter, Managing Director of Antalis UK, Ireland & South Africa

customers’ expectations, as well as the expectations of their own customers and end-users who increasingly demand products with a lower environmental footprint. Another example is our product offer for small-format digital printing which we have significantly enhanced with the addition of Xerox® branded papers that have been tested extensively to ensure optimum performance on Xerox® printers. We give a 100% Performance Guarantee for any product that is featured on the Paper & Media List for a specific Xerox® printer or digital press.

What about services? We offer a wide range of business and logistics services. For instance, Antalis has developed the Green Star System, an innovative yet simple environmental classification system designed to help our customers choose environmentally-friendly papers. All of our products have been ranked from 1 to 5-stars, with a product considered eco-responsible if it has a minimum of 3-stars.

In an entirely different area of our business, we provide the major British book publishers with a comprehensive service encompassing the management of their paper sourcing, print waste reduction and inbound paper logistics.

Another example of our customer service approach is the Digital Academy that we have created at our UK main office in Leicestershire. The Academy is a hub of information for anyone interested in digital print, both small and large format, and is equipped with the latest digital kit offering live demonstrations and real life application case studies to help inform and educate our customers. Last but not least, the strong increase that we’ve seen in website visits and orders placed on-line indicate that our e-business solutions are proving very useful for our customers.


is a premiere in our industry. The initiative is intended as a source of inspiration for printers and end users. For the same reason, we are also actively involved in social media like Instagram, Twitter or Facebook.

Can you tell us about any other highlights initiated over the past few years? The Alive range is undoubtedly one of our major innovations. It is unique in that it combines our fine paper brands such as Conqueror or Curious with PowerCoat®, a substrate for printed electronics launched in 2013. Our papers thus become truly “alive” by incorporating discreetly an NFC antenna (Near Field Communication) – a contactless technology designed to communicate with smartphones. This solution opens the way to numerous potential applications in areas like advertising or luxury packaging, providing agencies and brands with an innovative vector of communication with consumers via their mobile devices. In an entirely different area, we developed our in-house programme “Be MAD” (Make A Difference), intended to encourage creativity everywhere across the business, from paper mills to sales departments, thereby improving our efficiency.

In your view, are innovation and added value indissociable?Absolutely! The goal of any innovation is to deliver added value to our entire ecosystem, i.e. our customers, distributors and printers, as well as the communication agencies who advise the end users. This is why we pursue creativity on an ongoing basis, and encourage it at all levels in the company, whether this innovation relates to technologies, marketing or sales. In order to find good ideas, we need to be constantly on the look-out for market insights to understand fully the changing needs of our clientele and design new applications for our papers. In an industry like ours undergoing deep changes, innovation and added value are what bolsters the power of our brands, what durably makes a difference and fosters the loyalty of our customers on the long run.

How is this reflected in your business activities?As an example, we have developed new product applications by leveraging the inherent qualities of paper to offer alternatives to plastics. But innovation and added value are not restricted only to products: they may also involve services, in marketing for instance. Thus in 2014, we focused on the quality and features of the brochures presenting our product ranges to help designers and printers select the best papers for their needs. In addition, we created the “Pop-Up” exhibition featuring over 100 end products designed and printed by our customers around the world for luxury bands, restaurants or companies. This travelling exhibition, organised in six major European cities renowned in the world of design,

“ In order to find good ideas, we need to be constantly on the look-out for market insights.”

3 questions to Jonathan Mitchell, Managing Director of Arjowiggins Creative Papers

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For the first time ever, the complete collection of creative papers designed and manufactured by Arjowiggins has been compiled into a single book. The “Paper Book”, published in 20,000 copies and circulated worldwide, is the encyclopaedia of Arjowiggins Creative Papers. The book showcases some one hundred A4 samples, and lists out all ranges, textures, weights, colours and shades in the Arjowiggins Creative Papers range. This is a simple yet elegant tool designed to facilitate choices for designers, printers and end users.

Premium Club for resellers of Antalis office papers In early 2015, Antalis launched a Premium Club for its office paper resellers in the Group’s major European countries. A series of exclusive advantages related to the Image and Xerox® brands is proposed to resellers, such as marketing tools, sales programmes, promotional campaigns or product training sessions, a win-win approach to grow the business of both Antalis and its customers.

Choosing the right paper is an act of creation!In October 2014, Antalis introduced its “Creative Power” initiative intended to raise the awareness of creative directors, graphic designers, brands, event agencies and public relations firms about the value added to any application by creative papers. The global “Papercards” campaign, targeting 15,000 creative designers as well as marketing and communication professionals, showcases each month all year long the artwork of 12 international artists using 12 different papers and printing techniques. A Papercard is sent out each month to demonstrate how the choice of the right paper can contribute to enhance the value of a creative message.

ZOOMSterilisation of hospital trays

Touring exhibit for creative papers

Highly secured concert tickets

Sterisheet®, the hospital business of Arjowiggins Healthcare, has launched ArjoDuoTM, a first of a kind packaging solution designed for the sterilisation of hospital trays. This patented solution, made of bonded SMS and

paper sheets, delivers nearly 50% productivity gains for hospital sterilisation centres, while preserving optimum packaging properties.

Arjowiggins Creative Papers and Antalis have organised transient exhibits named “Pop-Up Exhibitions” that will tour six European cities from January to June 2015 in Paris, Barcelona, Milan, London, Amsterdam and Berlin. Printers, designers and advertisers are thus given the opportunity to discover over one hundred artworks printed in over 30 countries across the world. In each capital city, more than a thousand guests can share the work of artists highlighting our brands in various printing techniques (embossing, gilding, varnishing, etc.).

The Taiwanese pop star A-MEI has selected Arjo Systems to supply the e-tickets for the 10 concerts of her Utopia Tour in April 2015. Each e-ticket is highly secured and fully personalised, with a chip embedded in the card containing information about the buyer’s name, prices, seat numbers and colour codes for each concert. The e-ticket can be checked from a smartphone at the stadium entrance, and provides a unique solution against counterfeiting, as well as a new marketing tool as a collector card.

Arjowiggins HealthcareArjowiggins Creative Papers

Antalis

Arjowiggins Creative Papers


Arjowiggins Paper Book – International standards for creative papers

A catalogue of services is available to Antalis customers in all European countries, a particularly useful tool for them to choose the desired service level and find out about the related costs. With over 70 services provided in some countries, Antalis offers one of the most comprehensive ranges on the market. The service offering combines advice, training, bespoke services, customisation, sharing of best practices, high added-value logistics, on-line tools, after-sales service, etc.

NEWS

Catalogue for one of the most comprehensive service offers on the market


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COMFORTINGOUR COMMITMENTS

A COMPREHENSIVE CSR APPROACH

Group policy

he establishment of a CSR Department and the implementation of a Group-wide sustainability policy have created a genuine momentum within Antalis and Arjowiggins to fully

mainstream into their business activities all of the priorities identified in the fields of corporate governance, natural resources, human resources and product offering. Raw material traceability features among the major areas of progress achieved, particularly for the sourcing of wood-based fibres primarily used in the Group’s value chain. Antalis has rolled out a pioneering suppliers online platform to compile information related to suppliers’ governance, compliance and traceability of the materials they supply. Employee safety is another major area of progress: the steady decrease in the incident and severity rates of lost-time accidents attests to the management’s constant commitment and concern to reach our zero-harm target. As regards the product offering, Sequana has developed a common Group-wide definition for “eco-friendly” products, shared by the distribution and production businesses. Antalis subsequently engaged in a customer awareness-raising process, and has established a simple evaluation system to assess the eco-friendliness of a product: the Green Star System is now applied to all paper products distributed by Antalis. Last but not least, the Group’s Code of Good Conduct, addressing issues of anti-trust law and business ethics among others, was proactively communicated to all Group employees.

Arjowiggins Security accredited by Banknote Ethics Initiative (BnEI)After successfully undergoing an audit conducted by an independent anti-corruption control systems assessor, Arjowiggins Security was formally accredited by the Banknote Ethics Initiative Accreditation Council in late 2014. Banknote Ethics Initiative (BnEI) was created in 2013 at the initiative of six leaders of the banknote industry, including Arjowiggins Security, for the purpose of promoting a Code of Ethical Business Practice, with a focus on the prevention of corruption and on compliance with anti-trust law within the banknote industry. The BnEI accreditation recognizes and rewards the ongoing commitment of Arjowiggins Security to perform to the highest ethical standards.

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A COMPREHENSIVE CSR APPROACH

How did you mainstream the market’s CSR expectations? For the past decade or so, our approach has involved reinforcing our control over the supply chain in order to deliver to our customers all required social and environmental guarantees on the end products. We were among the first to be granted the FSC® and PEFC Chain of Custody certification, and we have been pioneers in terms of anticipating and enforcing government regulations on wood sourcing.

One of our key issues was to keep the data on our suppliers and products updated in order to demonstrate consistently our compliance with European regulations, whether on the traceability of wood-based fibres or chemical safety, among others.

The suppliers platform developed by Antalis two years ago was our response to this issue. CSR concerns are now fully mainstreamed into the Group’s business model. We deliver regular communications and training sessions on the subject to our employees and our customers.

What are the specific features of CSR on the UK market?Companies in the UK are gradually changing their CSR practices. The pace of change may be slower or faster depending on the companies’ maturity, some of whom now regard CSR not just as a moral issue but more as a growth opportunity.

CSR influencers in the UK market place are the government, NGOs and large multinationals who have bolstered their CSR policies.

This shift is in line with the increasingly multiple expectations of our stakeholders on issues of Human Rights, compliance of our suppliers and mills with social and labour standards, and traceability of wood-based fibres.

InterviewMatthew Botfield, Environment Manager, Antalis UK What major progress did you

achieve in 2014? Regarding governance, we created a consulting service for our customers who wish to become certified. We also conducted audits of our key suppliers on their fair trade practices.

As regards natural resources, we renewed the certification of our operations by the Carbon Trust Standard, guaranteeing Antalis’s commitment to reduce our carbon emissions each year.

As for health and safety at work in particular, our distribution centre was granted the OHSAS 18001 certification. Last but not least, we introduced our “Full Cycle” label certifying that our papers are integrated into a circular economy system called closed-loop process: the recycled paper sold to our customers is collected after use and reintroduced into a new papermaking loop.


Natural Resources

In an effort to improve its control over the supply chain and increase the proportion of sustainable materials in its products, Sequana has bolstered its policies and procedures, in particular for suppliers, designed to deliver always more transparency and more traceability.

n a globalised and diversified sourcing market, Sequana is committed to guaranteeing full transparency about the origin of the fibres used in its products. In this perspective, the Group has developed a policy of responsible

sourcing for paper-based materials, paper pulp and cotton-based products, driven by the ambition to improve its control over the supply chain and increase the proportion of sustainable materials in its products. Dedicated procedures have thus been implemented to ensure the traceability of all products sold by the Group and the sustainability of materials sourced from its suppliers.

Back in 2013, Antalis had launched a centralised platform, asking its suppliers to report on line all of their data and documents related to mill certifications, compliance with fundamental corporate guidelines (i.e. labour law, environmental protection, social commitment) and product conformity. Arjowiggins sends a comprehensive CSR questionnaire every year to all of its suppliers. In addition, the policy implemented by the Group several years ago for paper pulp is now applicable to cotton sourcing as well. In compliance with the European Union Timber Regulation (EUTR), the Antalis on-line platform covers all suppliers affected by the EUTR.

The platform incorporates a tool designed to assess the various risks related to the wood species used in materials, their geographic origin, deforestation issues, as well as to the countries of origin and their governance. This on-line tool also provides the possibility of implementing risk mitigation procedures.Since the EU regulation is applicable to its paper pulp purchases, Arjowiggins sends a specific questionnaire about pulp sources to all of its non-European suppliers.

The Antalis on-line platform addresses: • 183 suppliers, i.e. nearly 71% of total

procurement volumes• all suppliers potentially at risk• 924 products • 270 millsThe platform contains: • 23,000 items of information stored• 1,500 compliance documents

GUARANTEEING PRODUCT TRACEABILITY

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To this purpose, we work in close cooperation with our suppliers in order to gain a shared understanding of responsible sourcing, and to foster transparency between the supplier and the customer. Sharing information on the environmental, social and ethical performance of products is the cornerstone of these relations.

What is your view about the Antalis online suppliers platform? As a global company selling a wide range of products in many different countries, it is increasingly challenging every year to respond to growing expectations on social and environmental issues. This is where a centralised information platform can provide real support.

Instead of receiving multiple separate enquiries from the many countries where Antalis operates, the Antalis suppliers platform enables us to upload on line only once a year the sustainability information requested about our products.

Why are traceability and responsible sourcing key issues in UPM’s overall strategy?Sourcing plays a major role in driving the efficiency and profitability of UPM. But more than this, the origin and sustainability of the raw materials which we use, including wood, pulp, energy and recycled paper are at the core of our “Biofore” vision which ambitions to integrate the bio and forestry industries in order to create a new, sustainable and innovation-based future.

Our goal at UPM is to create value from renewable and recyclable materials. It is essential for the success of Biofore to ensure the traceability and sustainability of our raw materials, and to assess any potential risks along our supply chain. Thus, our supplier risk assessments reach well beyond the mere economic sustainability of our sourcing: they also cover environmental and social risks.

InterviewJohn Sanderson, Manager, Environment & Responsibility, UPM UK & Ireland

This also helps us manage our own resources more efficiently, and plan for future resources necessary to update the information.

How does this platform help you improve your sourcing processes?One of our big challenges is to understand perfectly the concerns of both our suppliers and customers, as well as what information they expect from us.

Expectations from our customers are much more difficult to assess due to the large number of markets, customers and end-uses. The Antalis platform provides us with a clear overview of all the sustainability issues of importance to a worldwide paper distributor.

We can then use this insight when developing our own systems to deliver the requested information, and to respond to the priority concerns of our customers.


Natural Resources

Increasing the use of renewable energy and improving energy efficiency are the two key priorities in the Group’s energy policy, and the key drivers for the initiatives developed in 2014. In addition, a number of initiatives were carried out to further bolster our water management process, which is essential to prevent any pollution events.

Energy efficiency, an ongoing concernIn 2014, Sequana clearly announced its determination to reduce its dependence on fossil fuels and improve its environmental footprint. The biomass-to-energy project (boiler burning wood chips) has been commissioned and is now operational at the Palalda mill (France), leading to a reduction of CO2 emissions by a factor of 7 versus 2013. A similar biomass boiler project is currently under review for construction at the Stoneywood mill (UK). As regards energy efficiency, the ISO 50001 certification constitutes an opportunity for continuous improvement of our energy management system. It provides a standard model to help the sites implement policies and action plans designed to optimise energy uses, track energy savings, and plan for the necessary improvement actions. In 2013, Arjowiggins Graphic thus launched the ISO 50001 certification process for its mills at Bessé-sur-Braye, Le Bourray, Wizernes and Château-Thierry, which together account for over 63% of the Group’s total energy consumption.

The multi-site certification was granted in early 2014, turning Arjowiggins Graphic into a pioneer both within the Group and the paper industry.

This approach, based on optimised process control, has helped the division reduce its energy consumption by 2.6% by late December, well above the 2% target set for 2014. CO2 emissions per tonne of paper produced were reduced by 1.9% per tonne, i.e. 3.7% in absolute value. The Group’s target for 2015 is to initiate an ISO 50001 certification process in the other divisions.

Reducing energy consumption at Antalis is a lesser challenge since the distribution business only accounts for 1.2% of the Group’s total energy consumption, and no specific action plan has therefore been established. However, even there, each country is putting in place a number of actions to reduce the energy consumption in line with local opportunities and priorities.

ENERGY AND WATER UNDER CLOSE SCRUTINY

36

“ By switching to biomass combustion, we were able to divide by 7 our CO2 emissions and to reduce the volatility of our energy costs. Both elements combined give us an additional source of competitive advantage for the future.” Thibaut Hyvernat, General Manager Arjowiggins Healthcare

Optimising water managementGood water management practices constitute a major challenge for the Arjowiggins mills. While the total water offtake volume from natural sources accounted for 18.1 million cubic metres in 2014, the Group’s mills released nearly 16.5 million cubic metres back into the natural environment after use, i.e. over 91%. It is therefore essential to ensure the quality of the released wastewater. Accordingly, a wastewater treatment plant (WWTP) is installed on each of the 19 production and conversion sites operated by Arjowiggins. The WWTPs collect the effluents, and depurate them in successive steps (settling, physiochemical treatments, biofiltration as

ENERGY AND WATER UNDER CLOSE SCRUTINY

In 2014, the European Union Joint Research Centre (JRC) published its new BREF (Best Available Techniques Reference Document) for the manufacturing of pulp, paper and board. The BREF document includes in particular new threshold values on wastewater discharges that will become mandatory under EU regulations by 2018. In anticipation of the new requirements, Arjowiggins has set up an inter-division task force in order to design and share enhanced assessment and compliance tools, in collaboration with the Centre Technique du Papier (CTP).

needed), before releasing the treated wastewater back into the natural environment without any risk of pollution. Eight out of the ten major mills are currently equipped with dual physiochemical plus biological treatment systems.Each mill carries out twice-daily calculations to measure all key indicators of water quality, in strict compliance with regulatory standards applicable in the countries where the Group operates. These indicators are checked regularly by local authorities, but the measurements also enable the Group to assume its full responsibility and commitment to the protection of natural environments, over and beyond regulatory compliance.


Environmental indicators

38

Note: Values given as a ratio per tonne of sellable paper are the average values for all production activities across the Group; significant differences may exist among the sites depending on the products manufactured. The values are aligned with values reported by the most efficient papermakers who produce comparable paper grades.The actual 2013 values may differ from the values published in 2013, since there were calculated on a same-mill like-for-like basis. The published data are cumulative or average values per division, and may vary due to the actual consolidation scope.

GRAPHIC CREATIVE PAPERS HEALTHCARE SECURITY TOTALINDICATOR UNIT 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013Water consumption Water use/ Net sellable production m3/T. paper 12.7 12.2 55.2 57.9 48.5 47.1 109.6 120.3 23.9 24.6

Water released back into the environmentDischarges/Net sellable production m3/T. paper 11.4 11.1 55.0 56.8 31.5 31.7 103.8 112.9 22.2 22.9

Analysis of total suspended solids (TSS)TSS discharged/ Net sellable production Kg/T. paper 0.17 0.18 0.76 0.83 0.20 0.20 0.60 0.60 0.27 0.28

Analysis of chemical oxygen demand (COD)COD/Net sellable production Kg/T. paper 1.34 1.35 4.44 4.77 3.87 3.56 7.40 9.54 2.14 2.30

Analysis of biochemical oxygen demand after 5 days (BOD5)BOD5/Net sellable production Kg/T. paper 0.10 0.10 0.89 0.88 0.92 0.96 2.21 3.47 0.33 0.41

Analysis of nitrogen (N)N/Net sellable production Kg/T. paper 0.05 0.04 0.05 0.04 - - 0.04 0.01 0.05 0.04

Analysis of phosphorus (P)P/Net sellable production Kg/T. paper 0.006 0.004 0.036 0.042 - - - - 0.0098 0.0095

Analysis of nitrogen oxide (NOx)NOx/Net sellable production Kg/T. paper 0.16 0.02 1.55 1.16 - - - - 0.38 0.28

Analysis of CO2 (scopes 1 & 2)(1) CO2 emissions /Net sellable production Kg/T. paper 397 405 1,248 1,238 104(2) 582 1,480 1,463 537 565

Gas consumption (energy)Gas consumption/Net sellable production NCV KWh/T. paper 1,124 1,133 5,025 5,024 76 2,454 1,007 909 1,550 1,727

Steam purchased externally (energy)Steam purchased/Net sellable production KWh/T. paper 517 543 117 118 2,255 - - - 524 441

Electricity consumption (energy)(3)

Electricity consumption /Net sellable production KWh/T. paper 787 784 1,460 1,372 1,058 1,053 2,225 2,209 947 937

Energy consumptionTotal energy consumption/Net sellable production KWh/T. paper 2,314 2,350 5,538 5,528 3,390 3,509 4,817 3,908 2,871 2,862

Analysis of sludge: Total quantity Production of sludge (dry)/Net sellable production 0.16 0.14 0.05 0.04 0.02 0.02 0.06 0.07 0.13 0.12

NHIW (non-hazardous industrial waste)(4)

Volume of NHIW T/ paper 15,987 18,038 359 435 3,206 3,228 331 218 19,882 21,929

SIW (special industrial waste)Volume of SIW T/ paper 237 384 183 1 64 70 24 16 508 471

24.62013 2014

23.9

Water use (m3/T. paper)

39

GRAPHIC CREATIVE PAPERS HEALTHCARE SECURITY TOTALINDICATOR UNIT 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013Water consumption Water use/ Net sellable production m3/T. paper 12.7 12.2 55.2 57.9 48.5 47.1 109.6 120.3 23.9 24.6

Water released back into the environmentDischarges/Net sellable production m3/T. paper 11.4 11.1 55.0 56.8 31.5 31.7 103.8 112.9 22.2 22.9

Analysis of total suspended solids (TSS)TSS discharged/ Net sellable production Kg/T. paper 0.17 0.18 0.76 0.83 0.20 0.20 0.60 0.60 0.27 0.28

Analysis of chemical oxygen demand (COD)COD/Net sellable production Kg/T. paper 1.34 1.35 4.44 4.77 3.87 3.56 7.40 9.54 2.14 2.30

Analysis of biochemical oxygen demand after 5 days (BOD5)BOD5/Net sellable production Kg/T. paper 0.10 0.10 0.89 0.88 0.92 0.96 2.21 3.47 0.33 0.41

Analysis of nitrogen (N)N/Net sellable production Kg/T. paper 0.05 0.04 0.05 0.04 - - 0.04 0.01 0.05 0.04

Analysis of phosphorus (P)P/Net sellable production Kg/T. paper 0.006 0.004 0.036 0.042 - - - - 0.0098 0.0095

Analysis of nitrogen oxide (NOx)NOx/Net sellable production Kg/T. paper 0.16 0.02 1.55 1.16 - - - - 0.38 0.28

Analysis of CO2 (scopes 1 & 2)(1) CO2 emissions /Net sellable production Kg/T. paper 397 405 1,248 1,238 104(2) 582 1,480 1,463 537 565

Gas consumption (energy)Gas consumption/Net sellable production NCV KWh/T. paper 1,124 1,133 5,025 5,024 76 2,454 1,007 909 1,550 1,727

Steam purchased externally (energy)Steam purchased/Net sellable production KWh/T. paper 517 543 117 118 2,255 - - - 524 441

Electricity consumption (energy)(3)

Electricity consumption /Net sellable production KWh/T. paper 787 784 1,460 1,372 1,058 1,053 2,225 2,209 947 937

Energy consumptionTotal energy consumption/Net sellable production KWh/T. paper 2,314 2,350 5,538 5,528 3,390 3,509 4,817 3,908 2,871 2,862

Analysis of sludge: Total quantity Production of sludge (dry)/Net sellable production 0.16 0.14 0.05 0.04 0.02 0.02 0.06 0.07 0.13 0.12

NHIW (non-hazardous industrial waste)(4)

Volume of NHIW T/ paper 15,987 18,038 359 435 3,206 3,228 331 218 19,882 21,929

SIW (special industrial waste)Volume of SIW T/ paper 237 384 183 1 64 70 24 16 508 471

5652013

5372014

CO2 emissions (Kg/T. paper)

(1) CO2 emissions shown in this document (2013 & 2014) cover Scopes 1 & 2 under the GHG protocol. Centralised emission calculations ensure that a homogeneous methodology is used at Group level to enhance the reliability of the published indicators. In a concern for comparability, the 2013 data were restated according to the same method.

(2) The significant decrease of CO2 emissions at Arjowiggins Healthcare results from the switch to biomass combustion at the Palalda mill, the largest energy consumer in this business.(3) The analysis of total energy consumption includes electricity, gas, steam and biomass, as well as fuel-oil and coal consumptions (not included in the chart).(4) Non-hazardous industrial waste (NHIW) contains primarily paper scraps/trimmings that cannot be reintroduced into the papermaking process.

Sequana / 2014 Annual Report

Human Resources

Against a backdrop of in-depth business transformation, Sequana endeavours to bolster the skills of its managers and employees, in particular on issues of change management. In addition, the challenges of safety at work and risk management constitute increasingly relevant concerns. Safety at work, an absolute priorityIn the context of the 2012-2015 plan, the overriding goal of Arjowiggins is to strengthen the training path on occupational safety. Beyond the programme designed to enhance the safety of paper machines and finishing equipment, new plans were developed to foster risk assessments, as illustrated by the implementation of dynamic risk analysis procedures for maintenance operations, or the introduction of in situ training sessions to help operators identify hazards. Efforts have focused in particular on safety issues related to dual pedestrian and forklift truck traffic flows. In spite of a steady decrease in the number of lost-time accidents, the 30% target of incident rate reduction versus 2011 was still not reached this year. As regards occupational health, all sites have focused on the reduction of occupational illness risks, linked primarily to manual handling operations and strain-generating working postures, and to noise and heat exposure. Dedicated action plans have been developed to address such hazards.Another key point of the plan is the OHSAS 18001certification process: in line with its commitments, 100% of the Graphic division sites were awarded the OHSAS 18001 certification. In the context of the Antalis Health & Safety policy which had established the “10 Golden Rules”, an action plan was developed, focusing on four key areas: management

SUPPORTING CHANGE

commitment, communication and employee commitment, operational excellence (with priority to risk control), and influencing safe behaviours. A self-assessment tool designed to monitor these topics was made available to the countries to help them evaluate their maturity level in the safety management process. This proactive policy has enabled Antalis to improve its performance significantly in terms of incident and severity rates.

Human Resources: speeding up the pace of skills developmentIn this area, Sequana’s challenge is to capitalise on the skills of its employees in its two businesses, and deliver a comprehensive reporting tool providing a 360° overview of HR-related issues and topics.

In this perspective, Antalis focuses on training and development of its employees and managers. The Leadership programme launched in 2013 helps the executive staff gain new expertise in people and operation management as well as, and more importantly, in change management. In addition, the e-learning platform is used by employees to develop their individual skills, attend training courses in project or performance management, and gain new technical expertise or information about various products. In a context of restructuring of its business operations, Arjowiggins has endeavoured to establish a constructive industrial dialogue. Training initiatives have focused primarily on personal and asset safety.

40

Employee safety

Incident rate = number of lost-time accidents / number of full-time permanent and temporary employees x 1,000 Data calculated on a scope of 118 distribution centres for Antalis and 19 production and converting sites for Arjowiggins (excluding headquarters).2012 2013 2014

Incident rate ArjowigginsIncident rate Antalis

Lost-time accidents ArjowigginsLost-time accidents Antalis

15

10

5

100

80

60

40

20

0

Enhancing employees’ skills is a priority for Antalis. How does your e-learning platform respond to this priority? Developing and retaining the best people and leaders is a key part of our HR mission. Reaching this goal across the Group is always a challenge and requires delivering a broad range of training to all employees with different solutions than traditional classroom-based training.We have therefore developed and implemented an e-learning platform across Antalis. It enables employees to access training courses directly when and where it best suits them. It provides access to customised programmes dedicated to our own products and services, complemented by a range of ‘off-the-shelf’ programmes covering subjects like personal development and computer skills.We have plans in place to develop additional customised modules designed to develop employee engagement on key business subjects such as cross-selling, eco-friendly offers and packaging, as well as health and safety.

InterviewAndrew Jordan, Antalis Group HR Director

To date, nearly 2,000 users have attended 5,000 e-learning modules, i.e. 1,665 hours of training. While the use of the platform is growing fast, we still have a lot to do to make it a full-fledged part of our employees’ everyday work.

Does the Leadership Programme constitute an additional driver to reach this goal?The Antalis Leadership programme was developed to help new and established leaders focus on three key areas: Leading People, Leading Change and Leading the Business. It was also designed to help participants apply theoretical lessons to concrete business projects, test their new skills and collaborate with other leaders in project teams. The Leadership programme has been a key driver to implement projects with local teams, while developing the skills and capability of our managers. We plan to continue in this direction by incorporating new curricula into the programme.

What is the goal of the employee survey you have launched with the Group’s employees?The engagement of our employees plays a vital role in our current success as well as in the development of our culture in the future. The open and honest style of our leaders helps to ensure that the messages from employees are heard and understood. However, we needed a more coordinated and structured approach to gain feedback from employees. This is why we introduced the survey called MyView to analyse employees’ perceptions on a range of topics such as their working environment, jobs, corporate culture, or health and safety. The survey results show an excellent ownership of our Antalis values and behaviours, but also revealed that some improvement can still be achieved in areas like communications and collaboration. We have therefore decided to adapt and accelerate a project to implement an Antalis Intranet, called WeConnect, across the whole Group by the end of the first quarter 2015. This ambitious project should enable all of our employees to collaborate, communicate and connect in a better way.

“ 100% of Arjowiggins recycled pulp and paper mills are OHSAS 18001-certified.”


Human Resources

42

2014Change

versus n-1 2013 2012Arjowiggins 3,977 (696) 4,673 5,118Antalis 5,585 (296) 5,881 6,043Sequana and Sequana Resources & Services (SRS) 53 (1) 54 55TOTAL 9,615 (993) 10,608 11,216

Average headcounts per company

France

7,758Europe

Arjowiggins3,280

Antalis4,425

934South America

Arjowiggins402

Antalis532

460Asia-Pacific

Arjowiggins209

Antalis251

380Africa-Middle East

Arjowiggins3

Antalis377

83North America

Arjowiggins83

Antalis-

incl. 2,971Arjowiggins2,304

Antalis614

INDICATORS 20149,615

employees worldwideArjowiggins3,977

Antalis5,585

43

Antalis Arjowiggins Total

Number of training days per employee in 2014 1.22(1) 3.52(2) 2.10(3)

Number of training days per employee in 2013 2.85 2.60 2.80

Training

Antalis Arjowiggins Total

Absenteeism rate in 2014 2.97% 2.90% 2.94%

Absenteeism rate in 2013 2.85% 3.75% 3.30%

Absenteeism(1)

Breakdown by gender

Percentage of women in management(1)

(1) Data calculated for all Group entities

Group

Group ArjowigginsAntalis

ArjowigginsAntalis

men

63.5%men

85.24%women

36.5%women

14.8%men

72.8%women

27.2%

Breakdown by agen Antalis n Arjowiggins

-30 years 30-40 years 40-50 years 50-60 years +60 years

16%

3%

20%

32%29%

13%

4%

27%

23%

33%

Breakdown by seniorityn Antalis n Arjowiggins

-1 year 1-5 years 5-10 years 10-20 years +20 years

10%

17%15%

21%

37%

10%

26%

22%

26%

16%

29.1% 29.5%

2013 2014

29.5%27%

2013 2014

22.0%

28.9%

2013 2014

(1) Ratio calculated based on 31 entities accounting for 87.9% of Antalis employees (2013: 32 entities accounting for 81%)

(2) Ratio calculated based on 15 entities accounting for 73.2% of Arjowiggins employees (2013: 12 entities accounting for 81%)

(3) Ratio calculated based on 46 entities accounting for 81% of Group employees (2013: 46 entities accounting for 81%)

(1) Data calculated for all Group entities

Sequana / 2014 Annual Report

Eco-friendly products

In 2014, Sequana bolstered its initiatives to encourage its customers to choose eco-friendly papers. A common Group-wide definition of “greenness” based on objective criteria was established, along with a system assessing the eco-friendliness level of products at Antalis, providing clear benchmarks to enhance information and guidance for our customers.

n 2014, Sequana bolstered its initiatives on customer information and awareness about eco-friendly products. After developing in 2013 a common Group-wide definition of eco-friendly paper products, the various Group entities

implemented action plans dedicated to their respective specific features. This definition of eco-friendliness is simple and easily understandable by all stakeholders; it takes into account the two major environmental impacts of paper throughout its life cycle: use of raw materials and manufacturing process. For each type of impact, the requirements are based on internationally recognised standards. For instance as regards raw materials, a paper is said to be eco-friendly provided that it is

SPOTLIGHT ON ECO-FRIENDLINESS

IFSC® or PEFCTM certified at the strict minimum, and ideally 100% recycled from post-consumer waste recycled fibres. Regarding the manufacturing process, the minimum criterion is ISO 14001 certification (Environmental Management System) of the manufacturing site, and ideally a European Ecolabel® certification. The requirements related to both criteria are cumulative.Based on this definition, the Group has assessed its product lines against relevant indicators for eco-friendly products, a sector where Sequana enjoys a clear leadership.In order to highlight the importance of paper in a CSR strategy, Antalis has developed its Green Connection programme dedicated to its customers. Several information tools are now available for each country: the Green White

Paper, a catalogue of recycled products, and a video film entitled Did you know? designed to counter preconceived ideas about paper. The Green Star System further provides customers with a way to assess the eco-friendliness of a product on a rating scale of 1 to 5 stars, with a product regarded as eco-friendly from three stars up. Customers can thus make enlightened choices based on this simple and reliable assessment matrix.

“ Under the Antalis Green Star System, 32% of the products are rated 3 stars, 37% are rated 4 stars, and 5% are rated 5 stars.”

44

A wide range of eco-friendly productsAccording to the Group’s definition, eco-friendly products account for the following volumes:

In the case of Arjowiggins Healthcare and Arjowiggins Security, the small proportion of wood fibres in finished products means that a definition based specifically on paper products is not relevant.

91%at Arjowiggins Graphic

97%at Arjowiggins Creative Papers

74%*at Antalis

Communicating about environmental commitments Arjowiggins Graphic has launched a new environmental impact calculator to help its customers create, download and print their own Environmental Benefit Statements. The tool also enables printers, designers and companies to display for the first time on their communication materials the prestigious WWF logo Climate Savers. “It is still possible to produce a gorgeous glossy magazine with Arjowiggins Graphic papers without sacrificing your environmental responsibilities. The Environmental Benefit Statement is a great way to bring commitments to life and demonstrate the benefits of printing on recycled paper,” declared Anna Simpson, Editor of the magazine Green Futures.

Green Star System

(1) According to FSC® and PEFCTM certification requirements(2) Remaining percentage complying with FSC® and PEFCTM standards

GREEN STAR SYSTEM

★ ★ ★ ★ ★ GREEN STAR SYSTEM

★ ★ ★ ★ ★

GREEN STAR SYSTEM



★ ★ ★ ★ ★

GREEN STAR SYSTEM

★ ★ ★ ★ ★

Raw material origin

Manufacturing process

GREEN STAR SYSTEM

★ ★ ★ ★ ★

GREEN STAR SYSTEM


★ ★ ★ ★ ★

Eco-responsible products

Non certified manufacturing

processISO 14001 EU

Ecolabel®

100% recycled(1)

or at least 50% recycled min.(2)

post-consumption

Certified(1)

(FSC® or PEFC standards)

Non certified(2)

* of total stock volume


Cultural patronage and sponsorshipThis year again, Sequana continued to share its expertise and premium papers for the benefit of Le Louvre Museum, thereby contributing to making artworks accessible to the greatest number for over a decade now. The Group has also renewed its partnership agreement with FIAC, and supplied the papers necessary to print the annual catalogue, the Hors les Murs monography and the (Off)icielle catalogue for the first FIAC’s off-event focused

on emerging contemporary creation. This partnership was an ideal opportunity for Antalis to help promote the art world by organising during the inauguration an exhibit of artworks created on Arjowiggins papers by students from the Estienne school of graphic design, selected in a contest held jointly by the Group and the school.The Group’s distribution and production businesses also support numerous community initiatives.

Social responsibility

For many years now, Sequana’s social engagement has relied on cultural patronage and solidarity with the communities. Likewise, its subsidiaries have been leading various outreach initiatives focused on culture, solidarity, education and health in their countries of operation, with the goal of embedding their actions into the local economic, social and cultural fabric.

INVOLVEMENT IN THE COMMUNITY

In Thailand for instance, Antalis has continued to donate paper to universities and design schools, or on the occasion of various events such as The Autonomous Spirit Exhibition by artist Inson Wongsam at the Bangkok Art & Cultural Centre. Arjowiggins Graphic signed a partnership on the occasion of the first Graphic Design Festival, an international event fully dedicated to the development, promotion and dissemination of graphic arts and design.

46

A socially responsible Group involved in community lifeFor the second year in a row, RéciproCité, the project developed by Sequana’s head office in Boulogne-Billancourt, has enabled Group employees to engage personally in community outreach initiatives in partnership with local associations. Apart from tutorial support to schoolchildren, support to the elderly to combat loneliness, organisation of cultural and sports outings for underprivileged youth, a number of new initiatives took place in 2014. Youngsters from the CEBIJE centre (CEntre Boulonnais d’Initiative Jeunesse) benefited from the expertise of Group employees to prepare for their professional integration (search for internships, help for CV drafting, coaching for job interviews, etc.). Lastly, the half-marathon of Boulogne-Billancourt gave an opportunity for twelve headquarters employees and five CEBIJE youngsters to run as a joint RéciproCité team, and to share their common passion and values during training sessions.

In 2014, 38 employees were involved in regular or one-off activities offered under the RéciproCité programme, accounting for a total of 496 hours donated to community initiatives.In the field of education, Arjowiggins Graphic started three years ago to support the NGO SOS Children Villages via its Cyclus brand. In 2014, the division’s commitment focused on child education in Madagascar. For each Cyclus design notebook ordered by its customers and partners, Arjowiggins Graphic sponsored one year of schooling for a child at the SOS Children Village of Vontovorona. Thanks to the record participation of over 3,900 customers worldwide, the campaign contributed to funding a year of schooling expenses for 500 children. Antalis supported a Zulu school in South Africa by donating paper to a local artist whose artworks were then sold at an auction. The proceeds funded the installation of three water reservoirs that will supply water to the school’s vegetable garden and help educate children on personal hygiene.

Both Antalis and Arjowiggins are actively involved in humanitarian initiatives, and participate in a number of child-focused and illness eradication programmes, in particular in Bolivia, Brazil, Finland and the United Kingdom.On health issues, Antalis has for many years been engaged in anti-cancer initiatives and aid to sick children in several countries. In the UK for instance the “Wear it Pink” day is a highlight of staff mobilisation where employees make a donation to fly the NGO colours throughout the day, or organise their own fund-raising events (quizzes, etc.). Antalis also involves its customers in this event by donating to the NGO a portion of the sale price for purchases of a selected product. In Lithuania, the Group donated Priplak sheets to the NGO Rugute to make the windmills sold to its benefit. In the Czech Republic, Antalis mobilised by the side of the NGO RWTTC (Running With Those That Can’t) who provides help to disabled children in their daily life. Participation of Group employees in the Prague international marathon, along with funds donated by Antalis and its employees funded the purchase of special wheelchairs designed for handisports. Lastly in Thailand, Antalis supports the Operation Smile Foundation who provides free surgery for children suffering from facial deformities.


Designed by

Photo creditsPhotothèques Antalis and Arjowiggins©

©Arjowiggins Healthcare – All rights reservedCyril Abad/Capa PicturesJulien Lutt/Capa PicturesBrendan Mc Neil/Capa Pictures Cristel Sasso/Capa Pictures

PrinterPPA MAHÉ, Imprim’Vert®, FSC® and PEFC certified

This report is printed on eco-friendly paper manufactured by Arjowiggins Graphic and distributed by Antalis: Cocoon Silk 350 g for the cover and 150 g for the inside pages.

Cocoon Silk is a 100%-recycled, semi-matte, extra-white coated paper, FSC® Recycled (FSC C021878) and European Ecolabel certified (FR/011/003).

By choosing to print its annual report on Cocoon Silk instead of non-recycled paper, Sequana has reduced the carbon footprint of this publication by*:

C02 3,692 kWh of energy,

C02 60,240 litres of water,

C02 224 kg of CO2, which is equivalent to:

a 2,243 km trip in the average European car,

1,670 kg of landfill waste,

2,714 kg of wood.

* SourceCarbon footprint data evaluated by FactorX in accordance with the Bilan Carbone® methodology. Calculations are based on a comparison between the recycled paper used versus a virgin fibre paper according to the latest European BREF data (virgin fibre paper) available.Results are obtained according to technical information and subject to modification.

Printed in France in June 2015 ©Sequana® All rights reserved

C02

C02

48

Sequana8, rue de Seine

92100 Boulogne-Billancourt – FranceTel.: +33 1 58 04 22 00

www.sequana.com

Antalis 8, rue de Seine

92100 Boulogne-Billancourt – France Tel.: +33 1 58 04 21 00

www.antalis.com

Arjowiggins 32, avenue Pierre Grenier

92100 Boulogne-Billancourt – France Tel.: +33 1 57 75 92 12 www.arjowiggins.com

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