Full-year 2017 results
13 September 2017ODDO BHF NEXTCAP FORUM6 June 2018
2
Disclaimer
By participating in the meeting at which this presentation is discussed, or by reading this document, you
acknowledge that you have fully understood this disclaimer and agree to be bound by its content and
restrictions:
The information appearing in this document should only be construed as of the date of said document and, except in
those cases expressly provided for by law, Antalis does not have any obligation to update or revise this information
in order to reflect changes in the events, situations, assumptions or circumstances on which it is based. This
information should be considered neither as investment advice nor as an offer of shares in the Company.
This presentation contains or may contain disclosures concerning the Group’s objectives or statements of a forward-
looking nature. Such information may be identified by the use of the conditional tense or expressions such as “wish”,
“expect that”, “anticipate”, “in the future”, ‘intend to” “forecast”, “believe”, “estimate” or other similar expressions.
Because they are based on assumptions that may turn out to be inexact, they are not forecasts and there is
absolutely no guarantee that the anticipated events and results will actually materialise or that the stated objectives
will be attained. By nature, these objectives might not be achieved and the assumptions on which they are based
may prove to be erroneous. Actual events and results may differ materially from the objectives stated or from the
results based on the forward-looking information contained in this presentation.
The Company’s future performance is dependent on various risks and contingencies, most of which are difficult to
predict and beyond its control. These risks and contingencies include those highlighted in Chapter 5 “Risk factors”
contained in the Antalis 2017 annual financial report available on the website of the Company (www.antalis.com).
ODDO BHF NEXTCAP FORUM - 6 June 2018
Antalis businesses and strategy
3ODDO BHF NEXTCAP FORUM - 6 June 2018
4
A Leading BtoB Distributor
Three business sectors
Papers Packaging Visual Com.
Operating in 43 countries on 5 continents
#1in Europe
#1 worldwide
(excluding US)
#1 in Europe #2 in Europe
Asia-Pacific
Main European countries
Rest of Europe
Latin America
Southern Africa
Rest of the World
• Present in 28 countries
across Europe with a
position of #1 or #2 in
21 of them in the Papers
sector
2017 key figures
An efficient logistics serving
140 000 customers worldwide
• 123 distribution centres worldwide
• 533,000 sq.m of storage space
• 13,500 deleveries per day
• Sales: €2.4 bn
• EBITDA : €84 m
• ROCE(1) : 12%
(1) After normative taxes
ODDO BHF NEXTCAP FORUM - 6 June 2018
Full-Fledged Papers Offering
Papers
Key Products Main brands Clients
Distribution
market
size(1)
(Europe)
Market
Position(1)
Coated and uncoated
papers
Specialty and creative
papers
Envelopes
Graphic supplies
Printers
Advertising
agencies
Publishers
7.3mtof paper
-4% per year
#1
in Europe, with a 9%
market share
#1
worldwide
(excl. US)
Paper for copier (A4, A3)
Envelopes
Large
companies
Public bodies
Office resellers
(1) Source: Company estimates for addressable Papers distribution market
2017 sales contribution
2017 gross margin contribution
70%
65%
Graphic
Office
5ODDO BHF NEXTCAP FORUM - 6 June 2018
Comprehensive Range of Packaging
Offering
6
PackagingKey Products Main brands Clients
Market Size(1)
(Europe)Market
Position(1)
Consumables: cushioning &
void fill, films, boxes & pallets,
tapes & glues, papers &
boards
Machines
Main applications: conveying,
stretching, shrinking,
palletising, strapping, filling
and cushioning, box closing
Tailor-made packaging
products designed by
in-house CAD/CAM design
centers
Large industrial
companies
(car makers,
electronics, food
industry)
Internet /
e-commerce
companies
Logistics
companies
Printers
(cross-sell)
€7bnin Europe in 2016
+2/3% annual growth
#1
in Europe, with a 7-8% market share
#1
in Germany
#2
in UK
(1) Source: Company estimates for addressable Packaging distribution market
2017 sales contribution
2017 gross margin contribution
21%
24%
ODDO BHF NEXTCAP FORUM - 6 June 2018 6
Visual Communication Key Products Main brands Clients
Market Size(1)
(Europe)Market
Position(1)
Adhesives, vinyl
Banners
Rigid sheets, boards &
plates
Large format printing
materials for indoor &
outdoor signage
(posters, films,
labels,…)
Point of sales materials
Wide format print
hardware & inks
Digital printers
Large format
printers
POS
manufacturers
Sign makers
Screen printers
€3bn in Europe in 2016
+1%annual growth
#2
in Europe, with a 7-8% market share
Visual Communication: from Consumables
to Printing Solutions
(1) Source: Company estimates for addressable Visual Communication distribution market.
2017 sales contribution
2017 gross margin contribution
9%
11%
7ODDO BHF NEXTCAP FORUM - 6 June 2018
8
Stock
SalesOrder intake
Transport & delivery
SourcingInventory
Management& Warehousing
Indent - Bespoke
Transport & delivery
Advice & Sales Order intake
Optimized purchasing
approach with a limited number of strategic suppliers
Best-in-class two-tier network of
123 warehouses mainly operated by
Antalis
Effective salesforce selling
more than 12,000 references in
France, 16 000 in UK
Outsourced to leading or regional
carriers
Purchasing
power
Optimized
Inventory
management
Dedicated
salesforce
teams
Outsourced
Salesforce sourcing specific demand from large customers
Directly managed by the supplier from
manufacturing site to customer
In-depth knowledge of
customers’ needs and suppliers’
offeringOutsourced
Sales Billing
Customer billing performed by
Antalis
SalesBilling
Customer billing performed by
Antalis
Standard distribution model
• Standard product range ensuring
fast availability D+1 to customers
Key differentiating factors
• Large customer base
• Best-in-class logistics network of
warehouses allowing international
reach
• Efficient delivery service
• Stock % higher than paper
distribution competitors
Dedicated specific model
• Adapted to large volumes for
standardized products or bespoke
demand for customized products
with longer lead time than D+1
Key differentiating factors
• Sourcing capabilities
• Client knowledge
• Design expertise
72%of sales(1)
28%of sales(1)
(1) In FY 2017
Stock & Indent distribution flows ensure answering to a full spectrum of customer needsKey takeaways
ODDO BHF NEXTCAP FORUM - 6 June 2018
Demise of PaperlinX
Europe
A Proven Consolidator of the European
Papers Distribution Market
Anta
lisac
quis
itio
ns
2010
Xerox Document supplies
Europe business (€300m)
• Global scale and competitive positioning ensure Antalis a leading role in the European papers distribution market consolidation
and represent key assets to take advantages of sector’s restructuring opportunities
• Demonstrated know-how in acquiring and integrating large acquisitions over the past 10 years
• Continuous optimization of operating performance through IT convergence, supply-chain rationalization, pricing management,
purchasing power and synergies
2011 2012 2013 2014 2015 2016
Conso
lidat
ion
Swan Paper
(€13m)
2007 2008 2009
Map Merchant
(€1,400m)
Inapa/Papyrus swap deal
between French and Swiss
operations
Pap
ers
gro
ss m
argin
rat
e
Berberich acquires Igepa Austria
Mar
ket evo
lution
Company (€Xm sales)
Most recent deals
Consolidation still ongoing
9ODDO BHF NEXTCAP FORUM - 6 June 2018 9
2017
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Antalis Papers gross margin rate improvement
21.5%
20.9%
21.8%22.1%
21.6% 21.8% 21.8%22.2%
23.1% 23.2% 23.0%
A Successful Business Transformation
Story
10
Anta
lisac
quis
itio
ns
trac
k-re
cord
2010
Macron
(€13m)
Pack 2000
(€25m)
Branopac
(€3m)
Ambassador
(€30m)
Abitek
(€12m)Hansapakend
(€7m)
PaperlinX CC&Co
Cadorit i Boras
(€92m)
TFM Industrial
(€5m)
1st Class Packaging
Donington Packaging Supplies
Parkside Packaging
(€30m)
• Successful shift from a pure-player in Papers distribution toward higher margin, higher growth activities in Packaging and
Visual Communication
• 13 successful acquisitions completed over the past 6 years
• Active development of Packaging & Visual Communication business sectors leveraging on Antalis cost-effective platform
(logistic networks, IT architecture, customers base)
2011 2012 2013 2014 2015 2016
Gro
ss m
arg
in
co
ntr
ibu
tio
nTra
nsf
orm
atio
n
Gregersen
(€6m)
Visual
Communication
Packaging
Company (€Xm sales)
ODDO BHF NEXTCAP FORUM - 6 June 2018 10
14% 17% 22% 25% 25% 29% 33% 35%
86% 83% 78% 75% 75% 71% 67% 65%
2010 2011 2012 2013 2014 2015 2016 2017
Packaging & Visual Communication growing contribution to Antalis gross margin
2017
Focused on small accounts, also performing commercial prospection
Dedicated to large and medium accounts, in charge of a given geographic area
Advise customers, directly monitor order intake and related administrative tasks
Located in telephone customer service centers
Field consultants supporting demand creation at agencies and brand owners
11
Telephone account
management
Field sales
Sales advisors
Backselling
consultants
Large catalogues in terms of references for
Papers, Packaging and Visual Communication
‒ 12,000 references available to French customers and 16,000 to UK customers
‒ Adapted to each geographies and translated into 40 languages P
rod
uct
s c
ata
log
ue
A catalogue of Services formalizing Antalis’
unique offering
‒ Up to 70 services offered in largest countries
‒ Covering a wide range of needs (business networking, product personalisation, value added logistics…) adapted to each geographies S
erv
ice
s c
ata
log
ue
Several showrooms worldwide
Opening of a flagship store in Paris
(September 2016)
‒ Next-generation digital press made available to professionals thanks to Antalis’ partnerships with Xerox and Roland
Sh
ow
roo
m
Provide After Sales support for hardware repair and maintenance + complaint management
After Sales technicians
Dedicated sales force for each business sector ensuring efficient customers reach
Client-specific pricing and profitability management supported by specific IT toolsKey takeaways
ODDO BHF NEXTCAP FORUM - 6 June 2018
3
3
2
3
1
3
1
2
2
5
5
118
2
12
118 DISTRIBUTION CENTRES
14,000 DELIVERIES
PER DAY IN THE WORLD
D+1 DELIVERY
BEFORE NOON
MOST OF THE TIME
2
1
6
1
Agile infrastructure ensuring productivity and efficient warehouse & transport organization
Seamless order management
Efficient warehouse management (WMS) & transport management system (TMS)
Close monitoring of error rates
1 central distribution centre per country (up to 42,000m2), usually rented and operated by Antalis
Smaller regional distribution centres in large countries: mainly outsourced (10 countries), limited inventories, fast delivery service thanks to customers proximity
Mainly subcontracted to local leading transportation companies
Leverage on a network of transportation expert companies in larger countries
Rationalized network Best-in-class supply chain ITSubcontracted transport
1
1
42 1
7
41
Central distribution
centers
Coverage area
Number of warehouses
per country
Europe Africa Latin America
Asia
€235m(1) INVENTORY
41
41
(1) 2016 average
12
8
4 2
1
1
2
3
2
Worldwide logistics network of 123 warehouses (total of 533,000 sq.m.)
ODDO BHF NEXTCAP FORUM - 6 June 2018
Papers
– centralization of paper sourcing on a limited number of suppliers
– strategy led by the Group purchasing team in relation with regional purchasing directors
– close relationships with suppliers enabling to benefit from a quick and responsive sourcing
13
Sourcing strategy and initiatives
Packaging &
Visual Communication
– ongoing rationalization towards a less fragmented suppliers portfolio
– sourcing strategy and relationship with strategic suppliers led by a dedicated team at the Group level
Sourcing strategy per business sectors
Strategic partnerships with global
suppliers…
‒ negotiations of annual discounts based on volumes or sales objectives
‒ optimization of sourcing conditions at group level
… with strong local contact points
‒ negotiations of specific sourcing conditions by Antalis subsidiaries
‒ flexibility to react quickly to local markets dynamics
1
2
Diversification of the supplier base
‒ Antalis top 11 suppliers represented c.53% of total sourcing in value in 2017
3
Focus on supply chain control and traceability
via the Antrak online platform
‒ 256 suppliers registered ensuring constant monitoring of the compliance of products and manufacturing sites with regulatory standards
4
ODDO BHF NEXTCAP FORUM - 6 June 2018
14
Evolution of overall gross margin rate since 2007(1)
(1) Gross margin rate = (Sales - cost of goods – customers and suppliers discounts & rebates) / sales
Mix effect: Packaging and Visual Communication higher contribution
Strong pricing management
Dedicated pricing managers
in all territories
Mix evolution within business sectors
Optimization of purchasing
conditions
290 bps gain since 2007
ODDO BHF NEXTCAP FORUM - 6 June 2018
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
21.6%
22.0%
22.4%
22.8%
22.4%
22.8% 22.8%
23.1%
24.0%
24.3%
24.5%
2017 Review
15ODDO BHF NEXTCAP FORUM - 6 June 2018
16
2017 Key Figures
Sales (in € millions)
EBITDA (in € millions)
Net income (in € millions)
Net debt (in € millions)
2 377
2 459
2017 2016
88
2017 2016
84
5
2017 2016
11
- 3.3 %
• Sound operating performances in line with our forecasts
254
2017 2016
248
- 4.3 %
Sales down 1.8% at constant exchange rates
• Lower volumes partially offset by better performances in Packaging
• Unfavourable forex impact (€38 m), mainly attributable to sterling
• The acquisitions completed late 2016 added €25 m to full-year 2017 sales
Increase in gross margin rate by 0.2 points to
24.5%
EBITDA margin stable at 3.6%
• Continued optimisation of supply chain• Lower sales and marketing and logistics
costs• Unfavourable forex impact (€2 m)
Net debt /
EBITDA : 2,93x
ODDO BHF NEXTCAP FORUM - 6 June 2018
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Key Figures by Geographical Area
• EBITDA margin at 3.6%
Main European Geographies: EBITDA
margin stable at 3.5 % despite forex impact
Rest of Europe: EBITDA margin improved
to 3.5% (up 0.1 points)
Rest of the World: EBITDA margin stable at
4.2% (down 0.1 points)
2017 sales
2017 EBITDA
• Sales of €2,377 M
Main European Geographies: gross margin rate
stable despite lower Papers volumes and
depreciation in sterling
Rest of Europe: gross margin rate improved to
25.9% (up 0.4 points)
Rest of the World: gross margin rate up 1.3 points
to 28.0%
ODDO BHF NEXTCAP FORUM - 6 June 2018
Germany &
Austria
13 %
Rest of the World
10 %
France
11 %
Rest of Europe
40 %
UK & Ireland
26 %
Main European
Geographies
50 %
Rest of the World
11 %
Rest of
Europe
39 %
Key Figures by Business Sectors
18
Gross margin contribution (%)
by business sectorSales by business sectors
Papers
Gross margin rate stable despite lower
volumes in a context of sharp price
increases
Positive impact of Swan Papers
consolidation partially offsetting
depreciation in sterling
Packaging
Increase in sales by 3.4% and in gross
margin by 4.7% with a slight
improvement in gross margin rate
Positive impact of TFM Industrial (Peru)
offsetting unfavourable forex trends
Visual Communication
Increase in in gross margin and strong
improvement in gross margin rate
(up 1.3 points) despite lower sales
Positive impact of Gregersen consolidation in
Norway offsetting unfavourable forex trends
ODDO BHF NEXTCAP FORUM - 6 June 2018
Packaging
21 %
Papers
70 %
Visual
Communication
9 %
0
100
200
300
400
500
600
700
Packaging Visual Communication Papers
86%
16%14% 16%
83%
10%9%
78% 75% 75% 71%
19% 23%5% 7%
8% 9% 9%10% 10%
67%
24%
11%
65%
e-commerce Key Figures
e-commerce websites
19* Number of stock order lines via e-commerce websites and EDI
2017 sales
€312m
e-penetration
rate* 35 % (up 1.3 point)
e-commerce (websites + EDI)
• Up and running in the 30 main countries in which the
Group operates
• e-penetration rate* up by 1.7 points
• 1,674 million stock order lines
Digital innovations
ODDO BHF NEXTCAP FORUM - 6 June 2018
20
A Pioneering CSR Policy
•
• Performance indicators tracking table(1)
(1) Using 2015 as a reference year, the objectives are set on the basis of indicators defined for 2020.
ODDO BHF NEXTCAP FORUM - 6 June 2018
Initiatives Indicators 2020
objectives 2017
position
Good business practices
Percentage of at-risk employees trained 100% 100%
Traceability Percentage of supplies covered by a traceability procedure including due diligence
85% 81.2%
Energy Percentage of transport volume covered by a carbon footprint calculation 90% 72%
Employee safety
Lost-time accident incident rate 7 9.9
Employee training
Percentage of employees trained 80% 90.2%
Eco-responsible products
Percentage of eco-responsible paper products - 75%
21
CSR: Safety
Improved incident rate
• Performance indicator 2017
Incident rate at 9.9 (10.9 in 2016) Objective 2020: 7
Lost-time accidents Incident rate
ODDO BHF NEXTCAP FORUM - 6 June 2018
Incidence rate Severity rate
22
CSR: Product Traceability
Antrak, an innovantive traceability platform in the distribution sector
• Key figures 2017
256 suppliers
45,800 centralised information out of which
• 5,300 compliance documents regarding almost 2,200 distributed products
• 510 production sites
• Performance indicator 2017
81% of the total value of the Group’s purchases objective 2020 : 85 %
86% of its Papers purchasing volumes
• Additional procedure for new suppliers since 2015
Before listing
191 new potential suppliers assessed in 2017
6% not listed (10% in 2016)
• New due diligence module added in 2017
Assessment of the potential supplier risk as regards respect for fundamental rights
Screening system stepping up requests for additional information and guarantees from
suppliers in the area of labour law, human rights, occupational health and safety, anti-
corruption, etc.
ODDO BHF NEXTCAP FORUM - 6 June 2018
FY 2017 financial statements
23ODDO BHF NEXTCAP FORUM - 6 June 2018
24
Consolidated income statement
Net income (loss) attributable to owners 9.4 5.1 NA
Non-recurring items (26.5) (26.8) NANet financial expense (25.4) (28.3) NAIncome taxes (4.4) (4.1) NANon-controlling interests (0.1) (0.1) NA
Sales 2,377.4 2,458.5 - 3.3%Gross margin 582.4 596.5 - 2.4%
EBITDA 84.4 88.2 - 4.3%
EBITDA margin (% of sales) 3.6% 3.6% -
Current operating income 65.8 (1) 64.4 +2.2%Current operating margin (as a % of sales) 2.8% 2.6% + 0.2 points
20162017
down 1.8% at constant exchange
rates(in € millions) Change
Acquisitions: €25 mFX impact: €(38) m
Acquisitions: €2.3 mFX impact: €(2.2) m
(1) Includes a €2.3 million gain arising on a change to a Swiss pension plan.
ODDO BHF NEXTCAP FORUM - 6 June 2018
(10)
84
88 2
5(2)
10
0
10
20
30
40
50
60
70
80
90
(9)
EBITDA trends
25
2016 Forex impact Inflation Overheads 2017Margins/Mix/Volumes
Variable costs
Acquisitions
ODDO BHF NEXTCAP FORUM - 6 June 2018
26
Breakdown of non-recurring items
Non-recurring items (26.5)
Restructuring costs (16.8)
Asset write-downs (6.1)
Other non-recurring items (9.6)
Proceeds from disposals of assets 6.0
(in € millions) 31 Dec. 2017
Costs related to IPO and refinancing
ODDO BHF NEXTCAP FORUM - 6 June 2018
27
Consolidated statement of financial
position
€ millions 31 Dec. 2017
Goodwill 141.1 149.8Property, plant & equipment and intangible assets 84.0 91.5Operating WCR 183.2 207.3Capital employed 408.3 448.6Other assets (net) 24.7 29.4
Shareholders' equity 123.8 141.3Non-controlling interests 0.5 0.6Provisions 61.1 81.8 Net debt 247.6 254.3
31 Dec. 2016
Total 433.0 478.0
Total 433.0 478.0
ODDO BHF NEXTCAP FORUM - 6 June 2018
28
Breakdown of provisions
(in € millions)
Pension provisions 44.7 59.7
Restructuring provisions 1.9 4.2
Other risk and contingency provisions 14.5 17.9
Total 61.1 81.8
20162017
ODDO BHF NEXTCAP FORUM - 6 June 2018
29
Change in net debt
(in € millions) 2017
Consolidated net debt at beginning of period (254.3) (231.7)
EBITDA 84.4 88.2Change in WCR of businesses 7.5 (15.5)CAPEX (18.7) (16.4)
Operating Cash Flow 73.2 56.3Net finance costs (25.0) (25.8)Income tax expense (4.8) (5.5)Restructuring costs & other non-recurring items (21.4) (23.5)Disposals 11.3 2.7Impact of changes in scope of consolidation 0.3 (7.8)Dividends paid (8.0) (8.0)
Costs related to IPO & refinancing (6.6) (0.2)Currency impact (7.6) (5.4)
Other items (4.7) (5.4)
(Increase)/decrease in net debt 6.7 (22.6)
Consolidated net debt at end of period (247.6) (254.3)
2016
Financial covenants at 31 December 2017
• Net debt / EBITDA = 2.93 (≤ 3.20)
• Current operating income/net interest expense = 4.42 (≥ 2.35)
ODDO BHF NEXTCAP FORUM - 6 June 2018
30
Recent events
• Key conditions
Increase of around €10 million in finance costs in the income statement
• impact on the Group’s cash position limited to approximately
€3 million per year (portion of the interest expense deferred to maturity
in 2021)
• increase of approximately 2% in weighted average effective
interest rate
• Payment milestones:
€5 million on 30 June and 31 December in both 2019 and 2020
€10 million at 30 June 2021 and the balance in December 2021
• Maturity extended to 31 December 2021
• Possibility of continuing external growth strategy (“acquisitions basket”
every year)
• Refinancing of main factoring agreement
• Maturity aligned with syndicated credit facility
Syndicated credit
facility
€285 million
• Completion of Group refinancing in March 2018
Factoring
€215 million
ODDO BHF NEXTCAP FORUM - 6 June 2018
Outlook
31ODDO BHF NEXTCAP FORUM - 6 June 2018
•
Improved economic outlook, with the exception of the UK (Brexit)
Contrasting patterns of demand across different sectors
Successive strong increases in Paper prices linked primarily to soaring raw materials costs
for producers
Consolidation of the paper production market
•
32
(€ millions) Q1 2018 Q1 2017 Change
Sales 589.9 611.9 - 3.6 %
Gross marginGross margin rate (as % of sales)
143.624.4 %
150.424.6 %
- 4.5 %- 0.2 point
EBITDAEBITDA margin (as % of sales)
19.23.3 %
21.63.5 %
- 11.1 %- 0.2 point
Current operating incomeCurrent operating margin (as % of sales)
13,82.3 %
18.63.0 %
- 25.8 %- 0.7 point
• Negative impact of less working
days of 2%
• Unfavourable forex impact (€11m)
• When adjusted for the negative
impact of less working days this
quarter and at constant exchange
rates, sales, gross margin and
EBITDA were stable year on year
ODDO BHF NEXTCAP FORUM - 6 June 2018
Outlook
33
Outlook
• Organic growth supported by initiatives in Packaging and Visual Communication
as well as digital innovations
• Pursuit of targeted acquisition policy in Packaging and Visual Communication
• At constant perimeter and exchange rates,
• Low-single digit decrease in FY sales compared to 2017
• Profitability maintained at a level close to 2017 thanks to continued optimisation of
supply chain and commercial costs, but including the impacts of the costs attributable to
a listed, independent company
ODDO BHF NEXTCAP FORUM - 6 June 2018