2017 05 24 - Projet Gentiane - Slideshow - SFAF [Lecture ... · Rest of the World 9% Operations in 43 countries 43 countries 43 countries spanning 5 continents 5 continents Over 5,600

Investors PresentationInvestors PresentationInvestors PresentationInvestors PresentationMay May May May 2017201720172017

Today’s SpeakersToday’s SpeakersToday’s SpeakersToday’s Speakers

2

Pascal Lebard,Chairman and CEO of Sequana, Chairman of the Board of Directors of Antalis

Hervé Poncin, Chief Executive Officer of Antalis

Xavier Roy-Contancin,Chief Financial Officer of Antalisand Sequana

� More than 13 years with Sequana

� Formerly member of the Executive Board of Sequana (2004), Deputy Managing Director (2005), Chief Executive Officer of Sequana (2007), Chairman & Chief Executive Officer (2013)

� 23 years with Antalis after holding senior marketing positions at Apple

� Several senior MD positions in European Group operations and in HQ Marketing & Purchasing,Antalis EVP (2007), Antalis COO (2009), Senior Executive VP of Sequana (2014)

� 15 years with Sequana since his appointment as Antalis CFO in 2002, became Group CFO in 2009

� Began his career with PWC in 1982, before holding senior positions at Carnaud Metalbox and DeLaval

Antalis International - May 2017

Transaction HighlightsTransaction HighlightsTransaction HighlightsTransaction Highlights

3

StructureStructureStructureStructure� Sequana shareholders would receive 18.36% of Antalis International shares

� 1 Antalis International share distributed for 5 Sequana shares held

TimetableTimetableTimetableTimetable

� June 6, 2017: Combined general meeting of Sequana shareholders deciding on the contemplated distribution of Antalis International shares

� The detachment of the distribution should take place shortly after the combined

shareholders general meeting and will be subject to a public communication by Sequana with a minimum of 4 days’ notice

LockLockLockLock----upupupup � Sequana committed to a lock-up of 6 months

GovernanceGovernanceGovernanceGovernance

� Governance based on best corporate governance practices (Afep/Medef code)

� Board composed of 8 members out of which

– 4 independent members, 1 Bpifrance Participations representative


Rest of the World9%

� Operations in 43 countries 43 countries 43 countries 43 countries spanning 5 continents5 continents5 continents5 continents

� Over 5,600 employees Over 5,600 employees Over 5,600 employees Over 5,600 employees serving c.130,000 customersc.130,000 customersc.130,000 customersc.130,000 customers

around the world

� 118 118 118 118 distribution centers worldwide worldwide worldwide worldwide

� 14,000 deliveries per day14,000 deliveries per day14,000 deliveries per day14,000 deliveries per day

� Vision: strengthen the group as the leadingleadingleadingleading andandandand mostmostmostmost

trustedtrustedtrustedtrusted internationalinternationalinternationalinternational BtoBBtoBBtoBBtoB distributordistributordistributordistributor of Papers,

Packaging, Visual communication, supplies & equipment

and associated services

� Mission: deliver excellenceexcellenceexcellenceexcellence forforforfor customerscustomerscustomerscustomers throughthroughthroughthrough

expertiseexpertiseexpertiseexpertise andandandand innovationinnovationinnovationinnovation in the products and services

provided andandandand inininin thethethethe relationshipsrelationshipsrelationshipsrelationships withwithwithwith businessbusinessbusinessbusiness partnerspartnerspartnerspartners

andandandand stakeholdersstakeholdersstakeholdersstakeholders

Antalis Antalis Antalis Antalis aaaat A Glancet A Glancet A Glancet A Glance

4

� Consolidated revenues of €2,459m2,459m2,459m2,459m

� EBITDA: €88m / 3.6% of sales88m / 3.6% of sales88m / 3.6% of sales88m / 3.6% of sales

� ROCE: 10.7%10.7%10.7%10.7%(2)

BtoBBtoBBtoBBtoB distributor of Papers worldwide distributor of Papers worldwide distributor of Papers worldwide distributor of Papers worldwide (excluding (excluding (excluding (excluding USUSUSUS))))

BtoBBtoBBtoBBtoB distributor in Europe of distributor in Europe of distributor in Europe of distributor in Europe of Papers Papers Papers Papers and and and and PackagingPackagingPackagingPackaging

Vision & Mission

A Worldwide leader

2016 key figures

BtoBBtoBBtoBBtoB distributor in Europe of distributor in Europe of distributor in Europe of distributor in Europe of ssssupports for upports for upports for upports for Visual CommunicationVisual CommunicationVisual CommunicationVisual Communication

#1#1#1#1

Top 3Top 3Top 3Top 3

#1#1#1#1

(2) ROCE: EBIT after normative taxes / Capital Employed at end of year

(1) Source: Company estimates, #1 at par with Spandex and Vink

(1)

2016 GEOGRAPHICAL & BUSINESS SECTOR SPLITS

BY GEOGRAPHY BY BUSINESS SECTOR

Packaging20%

Visual Communication9%

Papers71%

France 11%

Germany & Austria13%

UK & Ireland27%

Rest of Europe40%

67%23%

10%

Sales

Gross margin

Sales

EBITDA

51%38%

11%

��

��

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Presentation of Antalis’ BPresentation of Antalis’ BPresentation of Antalis’ BPresentation of Antalis’ Business usiness usiness usiness SSSSectors and ectors and ectors and ectors and MMMMarkets arkets arkets arkets

5Antalis International - May 2017

FullFullFullFull----Fledged Papers OfferingFledged Papers OfferingFledged Papers OfferingFledged Papers Offering

6

PapersPapersPapersPapers

Key ProductsKey ProductsKey ProductsKey Products Main brandsMain brandsMain brandsMain brands ClientsClientsClientsClientsDistribution Distribution Distribution Distribution

market sizemarket sizemarket sizemarket size(1)(1)(1)(1)

(Europe)(Europe)(Europe)(Europe)

Market Market Market Market PositionPositionPositionPosition(1)(1)(1)(1)

� Coated and uncoated papers

� Specialty and creative papers

� Envelopes

� Graphic supplies

� Printers

� Advertisingagencies

� Publishers

9mt9mt9mt9mtof paper

-3.8% per year

#1#1#1#1

in Europe, with a 18% market share

#1#1#1#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

2016 sales 2016 sales 2016 sales 2016 sales contributioncontributioncontributioncontribution

2016 gross margin 2016 gross margin 2016 gross margin 2016 gross margin contributioncontributioncontributioncontribution

71%71%71%71%

67%67%67%67%


Graphic

Office

0 kt

1 000 kt

2 000 kt

3 000 kt

4 000 kt

5 000 kt

6 000 kt

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Coated sheet Uncoated sheet Copier

0 kt

2 000 kt

4 000 kt

6 000 kt

8 000 kt

10 000 kt

12 000 kt

14 000 kt

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Challenging Papers Market Still Offering OpportunitiesChallenging Papers Market Still Offering OpportunitiesChallenging Papers Market Still Offering OpportunitiesChallenging Papers Market Still Offering Opportunities

7

Paper producer output in Europe Market environment and trends

� Large European print and office market reaching c.9 millions tons

� Increasing digitalisation and dematerialization of communication leading to a declining market

� Lower decrease for the office segment

� 6% decrease in 2016 in Europe due to geopolitical and economic issues

� Digital printing opportunities: estimated growth of 10% per year in volume

� Consolidate leadership in the sector

– Potentially through targeted acquisitions in strategic markets

� Invest to enrich offering with value-added products & services

� Ensure one-stop shop offering

� Develop e-commerce

� Market distinctive organic initiatives (d2b - Digital to Business, Antalis Creative Power, Antalis Green Connection)

Antalis’ strategy

European paper producer output evolution(1)

Output evolution per main product segments(1)

(1) Source: Eurograph

-4.6%per year

-2.5%per year

-4.0%per year

-3.8%per year


Comprehensive Range of Comprehensive Range of Comprehensive Range of Comprehensive Range of Packaging Packaging Packaging Packaging OfferingOfferingOfferingOffering

8

PackagingPackagingPackagingPackaging

Key ProductsKey ProductsKey ProductsKey Products Main brandsMain brandsMain brandsMain brands ClientsClientsClientsClientsMarket SizeMarket SizeMarket SizeMarket Size(1)(1)(1)(1)

(Europe)(Europe)(Europe)(Europe)Market Market Market Market

PositionPositionPositionPosition(1)(1)(1)(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)

€7bn7bn7bn7bnin Europe in 2016

+2/3% annual growth

#1#1#1#1

in Europe, with a 7-8% market share

#1#1#1#1

in Germany

#2#2#2#2

in UK

(1) Source: Company estimates for addressable Packaging distribution market



20%20%20%20%

23%23%23%23%


1 5481 5481 5481 5481 9151 9151 9151 915

2 3522 3522 3522 3522 8602 8602 8602 860

3 4183 4183 4183 4184 0584 0584 0584 058

2015 2016E 2017E 2018E 2019E 2020E

Positive Packaging Positive Packaging Positive Packaging Positive Packaging MarketMarketMarketMarket OutlookOutlookOutlookOutlook

9

European market growing at 2/3% per year supported by strong underlying drivers

� Outperform the market relying on 1/ Antalis’ sales & marketing organisation 2/ state of the art logistic platforms 3/ global footprint

� Lead sector consolidation through targeted acquisitions (notably in Eastern Europe and Latin America), taking advantage of a still fragmented market & competitors being mainly national players

Sources: (1) IMF as of 30/10/2016 (World Economic Outlook) (2) eMarketer as of 30/08/2016

Supportive GDP & international trade trends Acceleration of Global e-commerce

Growth of world trade volumes and services(1) World e-commerce sales evolution ($bn)(2)

CAGR2015-2020:

Rising environmental awareness

Antalis’ strategy

� Customers’ need for packaging resistant to variable transport and storage conditions

� Increasing complexity of packaging chains as a consequence of the relocation of production units

� Customers’ need for integrated logistics solutions to improve their profitability

� Ongoing roll-out of digital technology impacting relationships between companies

� Drives e-commerce penetration

� Supports demand for packaging solutions

� Increasing regulatory constraints in terms of packaging and waste management : ecological footprint, certifications, Reduce / Reuse / Recycle CSR policy

� Supports increasing demand for fibre-based packaging solutions

+21%

2,6%2,6%2,6%2,6%2,3%2,3%2,3%2,3%

3,8%3,8%3,8%3,8%4,2%4,2%4,2%4,2% 4,2%4,2%4,2%4,2% 4,3%4,3%4,3%4,3%

2015 2016E 2017E 2018E 2019E 2020E


Visual Visual Visual Visual CommunicationCommunicationCommunicationCommunication Key ProductsKey ProductsKey ProductsKey Products Main brandsMain brandsMain brandsMain brands ClientsClientsClientsClients

Market SizeMarket SizeMarket SizeMarket Size(1)(1)(1)(1)

(Europe)(Europe)(Europe)(Europe)Market Market Market Market

PositionPositionPositionPosition(1)(1)(1)(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 3bn 3bn 3bn in Europe in 2016

+1%annual growth

Top 3Top 3Top 3Top 3

in Europe, with a 7-8% market share

#1#1#1#1

in UK

#2#2#2#2

in Poland

Expanding Expanding Expanding Expanding Visual Communication Visual Communication Visual Communication Visual Communication Offering From Offering From Offering From Offering From Consumables to Printing SolutionsConsumables to Printing SolutionsConsumables to Printing SolutionsConsumables to Printing Solutions

10

(1) Source: Company estimates for addressable Visual Communication distribution market, #1 at par with Spandex and Vink



9%9%9%9%

10%10%10%10%


Visual Communication: Visual Communication: Visual Communication: Visual Communication: OngoingOngoingOngoingOngoing Shift Shift Shift Shift TowardsTowardsTowardsTowards MultiMultiMultiMulti----SubstratesSubstratesSubstratesSubstrates &&&& Digital PrintingDigital PrintingDigital PrintingDigital Printing

11

European market is growing at 1% per year with different sub-segments dynamics

(1) Source: Company estimates

� Lead sector consolidation through targeted acquisitions, by taking advantage of the high market fragmentation (500

independent distributors, with sales reaching c. €5m each)

� Rolling-out of Antalis’ global offering, capitalizing on the Coala brand

� Extension of the existing range of services offered

� Investment in promising markets (road marking, wallpaper designed for shop or home decoration)

Antalis’ strategy

Europe World Latin America

Development of Large format Retail strategies Personalization

� Demand for ads, displays and adhesives

� Indoor & outdoor advertising

� Marking & signing on buildings / bus / vehicles

� Deployment of client-centered strategies, notably in the grocery retail sector

� Increasing demand for personalization, especially for office and home decoration

Large format printing estimated market growth (1)

In-store promotion of products

Increasing rotation frequency of advertising

campaigns

+ 2% / 3% + 5% + 10%


ValueValueValueValue----Added Added Added Added BtoBBtoBBtoBBtoB Distributor Through Distributor Through Distributor Through Distributor Through Two Complementary Distribution FlowsTwo Complementary Distribution FlowsTwo Complementary Distribution FlowsTwo Complementary Distribution Flows

12

Stock

SalesSalesSalesSalesOrderOrderOrderOrder intakeintakeintakeintake

Transport & Transport & Transport & Transport & delivery delivery delivery delivery

SourcingSourcingSourcingSourcingInventory Inventory Inventory Inventory

ManagementManagementManagementManagement& Warehousing& Warehousing& Warehousing& Warehousing

Indent - Bespoke

Transport & Transport & Transport & Transport & delivery delivery delivery delivery

Advice & Sales Order intakeAdvice & Sales Order intakeAdvice & Sales Order intakeAdvice & Sales Order intake

Optimized purchasing

approach with a limited number

of strategic suppliers

Best-in-class two-tier network

of 118 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

Purchasingpower

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 Sales Sales Sales BillingBillingBillingBilling

Customer billing performed by

Antalis

SalesSalesSalesSalesBillingBillingBillingBilling

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

71%of sales(1)

29%of sales(1)

(1) In FY 2016 Antalis International - May 2017

� Stock & Indent distribution flows ensure answering to a full spectrum of customer needsKey takeaways

AntalisAntalisAntalisAntalis Equity StoryEquity StoryEquity StoryEquity Story


Antalis’ Key Antalis’ Key Antalis’ Key Antalis’ Key Competitive AssetsCompetitive AssetsCompetitive AssetsCompetitive Assets

A strong European leader in its core Papers, Packaging and Visual Communication sectors A strong European leader in its core Papers, Packaging and Visual Communication sectors A strong European leader in its core Papers, Packaging and Visual Communication sectors A strong European leader in its core Papers, Packaging and Visual Communication sectors

with a diversified customer base and recognized brandswith a diversified customer base and recognized brandswith a diversified customer base and recognized brandswith a diversified customer base and recognized brands

A seasoned Sales/Marketing & Supply Chain organisation focused on operational excellence A seasoned Sales/Marketing & Supply Chain organisation focused on operational excellence A seasoned Sales/Marketing & Supply Chain organisation focused on operational excellence A seasoned Sales/Marketing & Supply Chain organisation focused on operational excellence

with with with with financial discipline, delivering sustained ROCEfinancial discipline, delivering sustained ROCEfinancial discipline, delivering sustained ROCEfinancial discipline, delivering sustained ROCE

�

A digitallyA digitallyA digitallyA digitally----modern and efficient distributor focused on services with growing emodern and efficient distributor focused on services with growing emodern and efficient distributor focused on services with growing emodern and efficient distributor focused on services with growing e----business business business business revenue supported by a revenue supported by a revenue supported by a revenue supported by a powerful powerful powerful powerful organisationorganisationorganisationorganisation

�

Additional potential for international expansion from its solid Latin American, Asian & Additional potential for international expansion from its solid Latin American, Asian & Additional potential for international expansion from its solid Latin American, Asian & Additional potential for international expansion from its solid Latin American, Asian & Southern Southern Southern Southern African basesAfrican basesAfrican basesAfrican bases

�

An attractive growth platform with further buildAn attractive growth platform with further buildAn attractive growth platform with further buildAn attractive growth platform with further build----up potential in high margin up potential in high margin up potential in high margin up potential in high margin

Packaging & Visual Communication sectorsPackaging & Visual Communication sectorsPackaging & Visual Communication sectorsPackaging & Visual Communication sectors

A proven consolidator of the European pA proven consolidator of the European pA proven consolidator of the European pA proven consolidator of the European papers apers apers apers distribution market distribution market distribution market distribution market �

�

14

�


Antalis’ Antalis’ Antalis’ Antalis’ Key Competitive AssetsKey Competitive AssetsKey Competitive AssetsKey Competitive Assets


with a diversified customer base and recognized brandswith a diversified customer base and recognized brandswith a diversified customer base and recognized brandswith a diversified customer base and recognized brands

A seasoned Sales/Marketing & Supply Chain A seasoned Sales/Marketing & Supply Chain A seasoned Sales/Marketing & Supply Chain A seasoned Sales/Marketing & Supply Chain organisation organisation organisation organisation focused on operational focused on operational focused on operational focused on operational excellence excellence excellence excellence

with with with with financial dfinancial dfinancial dfinancial disciplineisciplineisciplineiscipline, delivering sustained ROCE, delivering sustained ROCE, delivering sustained ROCE, delivering sustained ROCE

�

A digitallyA digitallyA digitallyA digitally----modern and efficient modern and efficient modern and efficient modern and efficient distributor distributor distributor distributor focused on focused on focused on focused on services services services services with growing with growing with growing with growing eeee----business business business business revenue supported by a revenue supported by a revenue supported by a revenue supported by a powerful powerful powerful powerful organisationorganisationorganisationorganisation

�

Additional Additional Additional Additional potential potential potential potential for international for international for international for international expansion expansion expansion expansion from its solid Latin American, Asian & from its solid Latin American, Asian & from its solid Latin American, Asian & from its solid Latin American, Asian & Southern Southern Southern Southern African basesAfrican basesAfrican basesAfrican bases

�

An attractive gAn attractive gAn attractive gAn attractive growth rowth rowth rowth pppplatform latform latform latform with further with further with further with further buildbuildbuildbuild----uuuup p p p ppppotential otential otential otential in high min high min high min high margin argin argin argin

Packaging & Visual Communication Packaging & Visual Communication Packaging & Visual Communication Packaging & Visual Communication sectorssectorssectorssectors

A proven A proven A proven A proven consolidator consolidator consolidator consolidator of the European Papers of the European Papers of the European Papers of the European Papers distribution distribution distribution distribution mmmmarket arket arket arket �

�

15

�



Visual CommunicationVisual CommunicationVisual CommunicationVisual Communication


A Strong European Leader in its core Papers, Packaging & A Strong European Leader in its core Papers, Packaging & A Strong European Leader in its core Papers, Packaging & A Strong European Leader in its core Papers, Packaging & Visual Communication Sectors Visual Communication Sectors Visual Communication Sectors Visual Communication Sectors

16

1

1

1

11

11

1

1

23

3

3

4

4

4

2 3

2

4

2

1

3

1

1

1

2

� #1 distributor in Europe(1)

� 7% - 8% market share(1)

� Operating in 27 countries, including 5 outside Europe (Chile, Peru, Bolivia, Brazil, Southern Africa)

� Top-3 leader in Europe(1)

� 7% - 8% market share(1)

� Operating in 26 countries, including 3 outside Europe (Chile, Brazil, Southern Africa)

#1 / #2 position in 18 countriesLargest European footprint

18% market share in Europe(1)

(1)Source: Company estimates


A High Quality, WellA High Quality, WellA High Quality, WellA High Quality, Well----Diversified Customer BaseDiversified Customer BaseDiversified Customer BaseDiversified Customer Base

17

� A large and diversified customer base with c.130,000 clients

� Low risk profile with no client representing more than 1.2% of Antalis total sales

� High trustworthiness and client satisfaction

� Unique offering for international customers

Key takeaways

Diversified base of c.130,000 customers High customer satisfaction

Sources: (1) Company in 2016 (2) Small & MidCap Companies (« SMC ») (3) 2015 study provided by an independent agency on 20 countries covering all Antalis activities

Delivery reliabilityDelivery reliabilityDelivery reliabilityDelivery reliability

Customer satisfactionCustomer satisfactionCustomer satisfactionCustomer satisfaction

8.1 /10 for overall average

customer satisfaction(3)

8.3 /10 for average customer satisfaction regarding reliability to deliver on

time the right product in good condition upon

arrival(3)

Breakdown of active customers by type(1)

Breakdown of number of customers by business sector(1)

Printers

Public bodies, office resellers,large companies

Designers / Publishers

Industrial companies / SMC

27%27%27%27%35,00035,00035,00035,000

11%11%11%11%14,00014,00014,00014,000

41%41%41%41%52,00052,00052,00052,000

21%21%21%21%26,00026,00026,00026,000

(2)

62%62%62%62%

27%27%27%27%

11%11%11%11%

Papers

Packaging

Visual Communication




with a diversified customer with a diversified customer with a diversified customer with a diversified customer base and recognized brandsbase and recognized brandsbase and recognized brandsbase and recognized brands



�


�


�

An attractive gAn attractive gAn attractive gAn attractive growth rowth rowth rowth pppplatform latform latform latform with further with further with further with further buildbuildbuildbuild----uuuup p p p ppppotential otential otential otential in high min high min high min high margin argin argin argin

Packaging & Visual Communication Packaging & Visual Communication Packaging & Visual Communication Packaging & Visual Communication sectorssectorssectorssectors

A proven consolidator of the European Papers distribution market A proven consolidator of the European Papers distribution market A proven consolidator of the European Papers distribution market A proven consolidator of the European Papers distribution market �

�

18

�


21,5%21,5%21,5%21,5%

20,9%20,9%20,9%20,9%

21,8%21,8%21,8%21,8% 22,1%22,1%22,1%22,1%21,6%21,6%21,6%21,6% 21,8%21,8%21,8%21,8% 21,8%21,8%21,8%21,8%

22,2%22,2%22,2%22,2%

23,1%23,1%23,1%23,1% 23,2%23,2%23,2%23,2%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Demise of PaperlinX Europe

A A A A PPPProven Consolidator of the roven Consolidator of the roven Consolidator of the roven Consolidator of the European European European European Papers Distribution Papers Distribution Papers Distribution Papers Distribution MarketMarketMarketMarket

Anta

lisA

nta

lisA

nta

lisA

nta

lisac

quis

itio

ns

acquis

itio

ns

acquis

itio

ns

acquis

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

Conso

lidat

ion

Conso

lidat

ion

Conso

lidat

ion

Swan Paper(€13m)

2007 2008 2009

Map Merchant(€1,400m)

Inapa/Papyrus swap deal between French and Swiss operations

Pap

ers

Pap

ers

Pap

ers

Pap

ers

gro

ss m

argin

rat

egro

ss m

argin

rat

egro

ss m

argin

rat

egro

ss m

argin

rat

e

Berberich acquires Igepa Austria

Mar

ket

Mar

ket

Mar

ket

Mar

ket evo

lution

evo

lution

evo

lution

evo

lution

Company (€Xm sales)

Antalis Papers gross margin rate improvement

Most recent dealsConsolidation still ongoing


Distinctive Distinctive Distinctive Distinctive OrganicOrganicOrganicOrganic GrowthGrowthGrowthGrowth Initiatives Initiatives Initiatives Initiatives in in in in PapersPapersPapersPapers

20

� Antalis aims to support its customers faced with the many challenges of the digital printing ever-changing market by helping them harness industry developments and capture business opportunities

� Strengthening cooperation between OEM, printers, agencies and brand owners

� Offer to designers, communications and marketing professionals, end-users and printers, a wealth choice of creative papers

� Combination of large product offering (more than 2,000 product references in creative papers) and associated services (backselling experts, showroom, samples, events)

� Full range of services (consulting, training…) and tools (environmental calculator, samples, brochures)

� Eco-responsible product offering

� Supplier code of conduct enabling to ensure responsible sourcing


Antalis Key Competitive AssetsAntalis Key Competitive AssetsAntalis Key Competitive AssetsAntalis Key Competitive Assets





�


�


�




�

21

�


A Successful Business Transformation StoryA Successful Business Transformation StoryA Successful Business Transformation StoryA Successful Business Transformation Story

22

Anta

lisA

nta

lisA

nta

lisA

nta

lisac

quis

itio

ns

trac

kac

quis

itio

ns

trac

kac

quis

itio

ns

trac

kac

quis

itio

ns

trac

k -- --re

cord

reco

rdre

cord

reco

rd

2010

Macron(€13m)

Pack 2000(€25m)

Branopac(€3m)

Ambassador(€30m)

Abitek(€12m)

Hansapakend(€7m)

PaperlinX CC&CoCadorit i Boras(€92m)

TFM Industrial(€5m)

1st Class PackagingDonington Packaging SuppliesParkside 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

con

trib

uti

on

Tra

nsf

orm

atio

nTra

nsf

orm

atio

nTra

nsf

orm

atio

nTra

nsf

orm

atio

n

Gregersen(€6m)

Visual Communication

Packaging

Company (€Xm sales)

Packaging & Visual Communication growing contribution to Antalis gross margin

14%14%14%14% 17%17%17%17% 22%22%22%22% 25%25%25%25% 25%25%25%25% 29%29%29%29% 33%33%33%33%

86%86%86%86% 83%83%83%83% 78%78%78%78% 75%75%75%75% 75%75%75%75% 71%71%71%71% 67%67%67%67%

2010 2011 2012 2013 2014 2015 2016


Visual Visual Visual Visual CommunicationCommunicationCommunicationCommunicationPackagingPackagingPackagingPackaging

Antalis is Positioned to Seize Further M&A OpportunitiesAntalis is Positioned to Seize Further M&A OpportunitiesAntalis is Positioned to Seize Further M&A OpportunitiesAntalis is Positioned to Seize Further M&A Opportunities

23

� Solid M&A know-how with experienced teams and outstanding track record of successful value-

creative acquisitions

� Antalis is the natural European consolidator in markets offering numerous opportunities

� Antalis track-record highlights the accretive impact of past acquisitions on margins

Key takeaways

� Structured acquisition process based on an exhaustive list of strict operational and financial criteria

- Operational : products and clients portfolio, industry knowledge, suppliers, teams

- Financial : sales, upside on Working Capital, indebtedness, ROCE, Cash Flow, EBITDA multiple and synergiesCRITERIA

1

2

� Experienced HQ M&A team supported by local skills and presence

� In-depth knowledge of competitive environment enabling successful acquisition targeting

� Leverage on Antalis state-of-the art IT systems and processes to favor seamless integration processKNOW-HOW

Source: company estimates

STRATEGY

� Consolidate fragmented markets

� Increase critical size in certain geographies

� Accelerate business mix shift towards higher

margin activities

c. 80%

7 -8%

c. 13%

c. 71%

7 -8%

c. 22%

Top main competitorsAntalisMarket potential (highly fragmented)

Market shares







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�

24

�


� c. 140 employees

� Focused on small accounts, also performing commercial prospection

� c. 860 employees

� Dedicated to large and medium accounts, in charge of a given geographic area

� c. 860 employees� Advise customers, directly monitor order

intake and related administrative tasks� Located in telephone customer service

centers

� c. 90 employees

� Field consultants supporting demand creation at agencies and brand owners

25

Telephone account management

Field sales

Sales advisors

Backselling consultants

ValueValueValueValue----Added Added Added Added OmnichannelOmnichannelOmnichannelOmnichannel Sales Sales Sales Sales & Marketing & Marketing & Marketing & Marketing OrganisationOrganisationOrganisationOrganisation

� 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 ca

talo

gu

e

� 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

Se

rvic

es

cata

log

ue

� Several showrooms worldwide� Recent 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� c. 130 employees

� 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

3

3

2

3

1

3

1

2

2

5

5

118

2

BestBestBestBest----inininin----class Supply Chain Platformclass Supply Chain Platformclass Supply Chain Platformclass Supply Chain Platform

26

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

4

1

Central distribution

centers

Coverage area

Number of warehouses

per country

Europe Africa Latin America

Asia

4235m(1) INVENTORY

41

41

(1) 2016 average

12

8

4 2

1

1

2

3

2

Worldwide logistics network of 118 warehouses (total of 620,000 square meters)



– centralization centralization centralization centralization of paper sourcing of paper sourcing of paper sourcing of paper sourcing on a limited number of suppliers

– strategy led by the Group purchasing Group purchasing Group purchasing Group purchasing team in relation with regional team in relation with regional team in relation with regional team in relation with regional purchasing directorspurchasing directorspurchasing directorspurchasing directors

– close relationships with suppliers enabling to benefit from a quick and responsive sourcing

Effective Sourcing PolicyEffective Sourcing PolicyEffective Sourcing PolicyEffective Sourcing Policy

27

Sourcing strategy and initiatives

Packaging & Packaging & Packaging & Packaging & Visual CommunicationVisual CommunicationVisual CommunicationVisual Communication

– ongoing rationalization rationalization rationalization rationalization towards a less towards a less towards a less towards a less fragmented fragmented fragmented fragmented suppliers portfolio suppliers portfolio suppliers portfolio suppliers portfolio

– sourcing strategy and relationship with strategic suppliers led by a dedicated dedicated dedicated dedicated team at the Group levelteam at the Group levelteam at the Group levelteam 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.54% of total sourcing in value in 2016

3

Focus on supply chain control and traceability via the Antrak online platform

‒ 213 suppliers registered ensuring constant monitoring of the compliance of products and manufacturing sites with regulatory standards

4


Constant Constant Constant Constant FFFFocus on Gross Margin Improvementocus on Gross Margin Improvementocus on Gross Margin Improvementocus on Gross Margin Improvement

28

Evolution of overall gross margin rate since 2007(1)

21,6%21,6%21,6%21,6%

22,0%22,0%22,0%22,0%

22,4%22,4%22,4%22,4%

22,8%22,8%22,8%22,8%

22,4%22,4%22,4%22,4%

22,8%22,8%22,8%22,8%22,8%22,8%22,8%22,8%

23,1%23,1%23,1%23,1%

24,0%24,0%24,0%24,0%

24,3%24,3%24,3%24,3%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

(1) Gross margin rate = (Sales - cost of goods – customers and suppliers discounts & rebates) / sales

Mix effect: Packaging and Visual Communication higher contribution

�

Strong pricing managementDedicated pricing managers in all territories

�

Mix evolution within business sectors

�

Optimization of purchasing conditions

�


� 270bps gain since 2007

2,5852,5852,5852,585 2,6252,6252,6252,625

2,4592,4592,4592,45997 77 -134

-109 51 -109

2014 FX Perimeter Organic 2015 FX Perimeter Organic 2016

Resilient Financial Profile Supported by the Ongoing Shift in Resilient Financial Profile Supported by the Ongoing Shift in Resilient Financial Profile Supported by the Ongoing Shift in Resilient Financial Profile Supported by the Ongoing Shift in Gross Margin ContributionGross Margin ContributionGross Margin ContributionGross Margin Contribution

29

Sales (€m)

� 2016 sales impacted by negative exchange rates evolution (mainly UK) and Papers volume decrease

� Good performance of Packaging and Visual Communication sectors and external growth

EBITDA (€m) & margin

� Margin improvement since 2014 thanks to Antalis operating initiatives and higher contribution of Packaging and Visual Communication

� 2016 EBITDA close to 2015 without exchange rates impact

Evolution of gross margincontribution

� Group margin is increasingly supported by Packaging and Visual Communication, two well-oriented activities

3.1% 3.6% 3.6%

% EBITDA in % of sales

80808080

94949494888888886 4

4 -5 2 -3

2014 FX Perimeter Organic 2015 FX Perimeter Organic 2016


25% 29% 33%

75% 71% 67%

2014 2015 2016

Packaging & Visual CommunicationPackaging & Visual CommunicationPackaging & Visual CommunicationPackaging & Visual Communication PapersPapersPapersPapers

4543

2014 2016

6663

2014 2016

5453

2014 2016

Highly Efficient Working Highly Efficient Working Highly Efficient Working Highly Efficient Working CCCCapital Managementapital Managementapital Managementapital Management

30

Days payables(1)Days receivables(1) Days in inventory(1)

� Optimisation of suppliers’ cash

discounts

� Efficient inventory management thanks

to common methodology and warehousing optimization

� Tight monitoring of credit risk

� Implementation of factoring

programmes

(1) calculations based on a monthly average over the year

-1 day

-3 days

-2 days


Sound Sound Sound Sound Value Value Value Value CCCCreation and controlled Indebtednessreation and controlled Indebtednessreation and controlled Indebtednessreation and controlled Indebtedness

31

(1) leverage ratio: Net debt as of end of year / EBITDA (2) EBIT after normative taxes / Capital Employed at end of year

Net debt (€m) and leverage(1)

� Strict control of indebtedness despite

restructuring expenses impacting cash flows

250250250250

232232232232

254254254254

3,1x3,1x3,1x3,1x

2,5x2,5x2,5x2,5x

2,9x2,9x2,9x2,9x

2014 2015 2016

ROCE performance (2)

� Efficient capital employment over the

last three years

8,6%

11,5%10,7%

2014 2015 2016

Capital expenditure (€m/% of sales)

� Controlled capital expenditure

management

14141414

17171717 16161616

0,6%0,6%0,6%0,6%

0,6%0,6%0,6%0,6%0,7%0,7%0,7%0,7%

2014 2015 2016







�

A digitallyA digitallyA digitallyA digitally----modern and efficient distributor focused on services with growing emodern and efficient distributor focused on services with growing emodern and efficient distributor focused on services with growing emodern and efficient distributor focused on services with growing e----business revenue supported by a business revenue supported by a business revenue supported by a business revenue supported by a powerful powerful powerful powerful organisationorganisationorganisationorganisation

�


�




�

32

�


Supply chain & purchasingSupply chain & purchasingSupply chain & purchasingSupply chain & purchasing

StateStateStateState----ofofofof----thethethethe----art IT Systemsart IT Systemsart IT Systemsart IT Systems

33

� Ongoing rationalization Ongoing rationalization Ongoing rationalization Ongoing rationalization of Antalis ERP systems on SAP and Navision

� SSSStandardization and harmonization tandardization and harmonization tandardization and harmonization tandardization and harmonization of back-office process

� Rolling-out of core applications in all Antalis entities

� Standardization of internal process, allowing synergies & economies of scale

� Acceleration of process automation

Key takeaways

and strategy

� Pivotal Pivotal Pivotal Pivotal CRM CRM CRM CRM SoftwareSoftwareSoftwareSoftware in 23 countries

� NNNNew digital servicesew digital servicesew digital servicesew digital services aiming at improving customer satisfaction

� Integrated Integrated Integrated Integrated ACD telephony ACD telephony ACD telephony ACD telephony systemssystemssystemssystems

� Single eSingle eSingle eSingle e----commerce platformcommerce platformcommerce platformcommerce platform

� Social media presence and developmentSocial media presence and developmentSocial media presence and developmentSocial media presence and development

� Optimization of maintenance and development costs thanks to a centralized IT platform

� Development of Electronic Data Interchange Electronic Data Interchange Electronic Data Interchange Electronic Data Interchange messagesmessagesmessagesmessages with customers and suppliers

� Improved performance from best of breed Improved performance from best of breed Improved performance from best of breed Improved performance from best of breed software solutionssoftware solutionssoftware solutionssoftware solutions:

‒Warehouse management system

‒ Transport management system

‒Planning and Forecasting tools

� Group intranet / collaborative platform Group intranet / collaborative platform Group intranet / collaborative platform Group intranet / collaborative platform WeconnectWeconnectWeconnectWeconnect covering:

‒Competence and performance management

‒Skills management

‒ Integrated e-learning platform

‒ Internal social network

Enterprise Enterprise Enterprise Enterprise Resource Resource Resource Resource Planning («Planning («Planning («Planning (« ERPERPERPERP »)»)»)») Customer Relationship ManagementCustomer Relationship ManagementCustomer Relationship ManagementCustomer Relationship Management

2007 2016… … 2018 … 2022

16161616 7777 5555 2222# of ERP

Centralized IT PlatformCentralized IT PlatformCentralized IT PlatformCentralized IT Platform

Human ResourcesHuman ResourcesHuman ResourcesHuman Resources


34

Innovative e-commerce platforms…

Fast Fast Fast Fast ggggrowing Antalis erowing Antalis erowing Antalis erowing Antalis e----businessbusinessbusinessbusiness

… at the heart of Antalis’ strategy

Exhaustive offering Exhaustive offering Exhaustive offering Exhaustive offering An exhaustive online catalogue reporting all stocked items commercialized by Antalis

�

Simplified accessSimplified accessSimplified accessSimplified accessAccess to Antalis catalogue 24/7 to all Papers, Packaging and Visual Communication products

�

Unique ergonomics Unique ergonomics Unique ergonomics Unique ergonomics Customer-friendly platform adapted to a wide range of users, with pre-registered customised purchasing terms

�

International reachInternational reachInternational reachInternational reachSame platform available in 30 countries, with specialized translated contents adapted to local demand

�

� Steady 2 to 3 points increase per year in e-commerce penetration over the last years

� Continuous improvement of the website to further increase ergonomics (customer journey, promotion functionalities)

� Should drive e-commerce revenues from €261m to €400m by 2020

(1) Number of electronic stock order lines on total number of order lines

27%e-commerce penetration in

2016(1)

€261mannual sales

in 2016

€400mannual sales

in 2020


UUUUnique Innovative Antalis Service Offeringnique Innovative Antalis Service Offeringnique Innovative Antalis Service Offeringnique Innovative Antalis Service Offering

35

� Trade shows

� Antalis events

� Seminars

� Paper consultants

� Showrooms

� Samples

� Training

� Applications seminars

� Technical consultations

BUSINESS NETWORKINGBUSINESS NETWORKINGBUSINESS NETWORKINGBUSINESS NETWORKING SELECTION ASSISTANCESELECTION ASSISTANCESELECTION ASSISTANCESELECTION ASSISTANCEPRINT & VISUAL COM PRINT & VISUAL COM PRINT & VISUAL COM PRINT & VISUAL COM

EXPERT & CONSULTINGEXPERT & CONSULTINGEXPERT & CONSULTINGEXPERT & CONSULTING

� Testing

� In-house laboratories

� Design converting

� Personalisation

� Environmental benefit statement

� Training

� CSR consulting

� Price lists

� Online orders

� Stock availability

� E-billing

� Social media

PACKAGING EXPERTISEPACKAGING EXPERTISEPACKAGING EXPERTISEPACKAGING EXPERTISESUSTAINABLE SUSTAINABLE SUSTAINABLE SUSTAINABLE

DEVELOPMENTDEVELOPMENTDEVELOPMENTDEVELOPMENTONLINE PARTNERONLINE PARTNERONLINE PARTNERONLINE PARTNER

� Cutting

� Perforation

� Rewrapping

� Relabelling

� Specific timed delivery

� Convenient and flexible services

� Easytruck

� Hotline

� Money back guarantee

� Technical advice

� Equipment maintenance

PRODUCT PRODUCT PRODUCT PRODUCT PERSONALISATIONPERSONALISATIONPERSONALISATIONPERSONALISATION

VALUE ADDED LOGISTICVALUE ADDED LOGISTICVALUE ADDED LOGISTICVALUE ADDED LOGISTIC CUSTOMER CARECUSTOMER CARECUSTOMER CARECUSTOMER CARE

� One-stop-shop offering

� Dedicated catalogues (paper and online)

� Game-changing competitive advantage vs competitors

� Support client loyalty

� Margin accretive

Formalized offering of Services across all business sectors


Powerful Powerful Powerful Powerful OrganisationOrganisationOrganisationOrganisation Combining Central Drive Combining Central Drive Combining Central Drive Combining Central Drive aaaand Local nd Local nd Local nd Local EmpowermentEmpowermentEmpowermentEmpowerment

36

� Centralized support functions leading strategies, developing common tools and supporting

operations

� Associated with operational teams in geographic clusters driving business

Key takeaways

UK

& I

rela

nd

, S

ou

the

rn A

fric

a

We

ste

rn E

uro

pe

Mid

dle

Eu

rop

e

Asi

a P

acifi

c

Latin

Am

eric

a

Nor

dics

, Bal

tics

& R

ussi

a

Ce

ntr

al,

So

uth

ern

an

d E

ast

ern

Eu

rop

e

Process standardisation Know-how deploymentClose to clients & local

expectationsSynergies

A backbone of central support functions combined with local teamsPurchasing - Marketing – Procurement – MIS – Finance / Legal – International Customer Sales – HR – Supply Chain

Visual Visual Visual Visual CommunicationCommunicationCommunicationCommunication




� Seasoned and committed senior management team with strong industry and BtotB experience successfully leading Antalis transformation

� Focus on achieving qualitative and quantitative goals (profit & loss, working capital)

– Chief Financial Officer– Marketing and Purchasing Director– Chief Information Officer– HR Director– General Secretary

� International culture: 8 nationalities

HQ Functional & Business Directors

International and International and International and International and ExperiencedExperiencedExperiencedExperienced Management TeamManagement TeamManagement TeamManagement Team

37

Senior management team composed of

Geographical Cluster Directors


Pioneering Pioneering Pioneering Pioneering Corporate Social Responsibility PolicyCorporate Social Responsibility PolicyCorporate Social Responsibility PolicyCorporate Social Responsibility Policy

38

GOVERNANCEGOVERNANCEGOVERNANCEGOVERNANCE NATURAL RESOURCESNATURAL RESOURCESNATURAL RESOURCESNATURAL RESOURCES HUMAN RESOURCESHUMAN RESOURCESHUMAN RESOURCESHUMAN RESOURCES PRODUCT OFFERPRODUCT OFFERPRODUCT OFFERPRODUCT OFFER

CSR StrategyCSR StrategyCSR StrategyCSR StrategyReinforce the integration of CSR at the heart of professions: numerical targets, network indicators, reporting

Business Business Business Business ethicsethicsethicsethicsGuarantee the Group’sactivity is in line with the Code of Conducteverywhere in the world

1

8 CSR Heads8 CSR Heads8 CSR Heads8 CSR HeadsOne per regionOne per regionOne per regionOne per region

2

2020 target of 100% of at2020 target of 100% of at2020 target of 100% of at2020 target of 100% of at----risk risk risk risk populations trained in business populations trained in business populations trained in business populations trained in business

ethicsethicsethicsethics

TraceabilityTraceabilityTraceabilityTraceabilityGuarantee the control of the supply chain to identify and manage risks

Energy usage Energy usage Energy usage Energy usage efficiencyefficiencyefficiencyefficiency

2020 target of 85% of 2020 target of 85% of 2020 target of 85% of 2020 target of 85% of purchase volume traced and purchase volume traced and purchase volume traced and purchase volume traced and

sustainablesustainablesustainablesustainable

2020 target of 90% of 2020 target of 90% of 2020 target of 90% of 2020 target of 90% of transport carbon footprint transport carbon footprint transport carbon footprint transport carbon footprint

measuredmeasuredmeasuredmeasured

Employee SafetyEmployee SafetyEmployee SafetyEmployee SafetyGuarantee a healthy and safe working environment and aim for zero accidents and work related illnesses

Training & Training & Training & Training & ApprenticeshipApprenticeshipApprenticeshipApprenticeshipGenerate permanent training and create employment through apprenticeship

EcoEcoEcoEco----responsible responsible responsible responsible productsproductsproductsproductsDevelop the market and the offer of eco-responsible products (Papers, Visual Communication, Packaging)

3

4

2020 target of a LTA2020 target of a LTA2020 target of a LTA2020 target of a LTA(1)(1)(1)(1) = 7 = 7 = 7 = 7 ((((----30% vs. 2015)30% vs. 2015)30% vs. 2015)30% vs. 2015)

2020 target of 80% of 2020 target of 80% of 2020 target of 80% of 2020 target of 80% of employees trained annuallyemployees trained annuallyemployees trained annuallyemployees trained annually

In 2016, 74% of ecoIn 2016, 74% of ecoIn 2016, 74% of ecoIn 2016, 74% of eco----responsible productsresponsible productsresponsible productsresponsible products(2)(2)(2)(2) and and and and

4.3% of sales of recycled paper 4.3% of sales of recycled paper 4.3% of sales of recycled paper 4.3% of sales of recycled paper productsproductsproductsproducts

(1) Lost time accident rate (2) Green Star SystemTM definition for Papers

5

6

7

� CSR at the heart of Antalis economic model

� Based on the ISO 26000 standard

� Clear roadmap for 2016-2020

Key takeaways


Committed & Innovative HR ManagementCommitted & Innovative HR ManagementCommitted & Innovative HR ManagementCommitted & Innovative HR Management

39

Incident rate (1)

15,95

12,2310,82 10,24 10,94

2012 2013 2014 2015 2016

Global Employee PlatformGlobal Employee PlatformGlobal Employee PlatformGlobal Employee Platform

Company wide system for managing Company wide system for managing Company wide system for managing Company wide system for managing ttttalent, alent, alent, alent, eeee----learninglearninglearninglearning, , , , recruitment, performance, recruitment, performance, recruitment, performance, recruitment, performance,

remuneration and remuneration and remuneration and remuneration and communicationcommunicationcommunicationcommunication

Health and Health and Health and Health and Safety FirstSafety FirstSafety FirstSafety First

Continued commitment to Health and Continued commitment to Health and Continued commitment to Health and Continued commitment to Health and Safety, first and all the time, with a clear Safety, first and all the time, with a clear Safety, first and all the time, with a clear Safety, first and all the time, with a clear

roadmap and integrated strategy with CSRroadmap and integrated strategy with CSRroadmap and integrated strategy with CSRroadmap and integrated strategy with CSR

Core Values and BehavioursCore Values and BehavioursCore Values and BehavioursCore Values and Behaviours

A clear and living set of values and A clear and living set of values and A clear and living set of values and A clear and living set of values and behaviours help us to create a positive, high behaviours help us to create a positive, high behaviours help us to create a positive, high behaviours help us to create a positive, high

performing and successful performing and successful performing and successful performing and successful organisationorganisationorganisationorganisation

(1) Incident rate = number of lost-time accidents / number of full-time employees and temporary personnel x 1,000







�

A digitallyA digitallyA digitallyA digitally----modern and efficient distributor focused on services with growing emodern and efficient distributor focused on services with growing emodern and efficient distributor focused on services with growing emodern and efficient distributor focused on services with growing e----business revenue supported by a business revenue supported by a business revenue supported by a business revenue supported by a powerful powerful powerful powerful organisationorganisationorganisationorganisation

�

Additional potential for international expansion from its solid Latin American, Asian & Additional potential for international expansion from its solid Latin American, Asian & Additional potential for international expansion from its solid Latin American, Asian & Additional potential for international expansion from its solid Latin American, Asian & Southern Southern Southern Southern African basesAfrican basesAfrican basesAfrican bases

�




�

40

�


41

Additional Additional Additional Additional Potential Potential Potential Potential for for for for International ExpansionInternational ExpansionInternational ExpansionInternational Expansion

Latin America

Southern Africa

� Presence in the 6 main countries

� Only distributor present throughout the continent

� Allowing amortization of core investments (IT tools, website, product portfolio, …)

� Strong Packaging development

� Distribution of Papers including Graphic Supplies and Visual Communication

� Presence in South Africa and Botswana with leading positions

� Distribution of Papers including Graphic Supplies and Visual Communication

� Presence as a full-fledged distributor in 7 countries combined with a reseller network in a wider number of countries

� Focused on high added value Papers

Asia Pacific

� EBITDA rate at 4.4% in 2016 for Rest of the World geographies

� With a direct presence in 43 countries across 5 continents, Antalis International is positioned to deploy its offering globally and further expand its geographical footprint leveraging on its platform

� Unique capacity to service customers globally

Key takeaways


AntalisAntalisAntalisAntalis GuidancesGuidancesGuidancesGuidances


OutlookOutlookOutlookOutlook

43

2017 Forecasts

Revenue � Low single digit decrease vs 2016(1)

Market Trends

� Paper market still decreasing at -3/4%

� Packaging growing at c. + 2%

� Visual Communication growing slightly

� Slight inflationary effect on product costs and selling prices

� Brexit and uncertain political environment

(1) Before acquisitions and at constant exchange rates

Operating profitability

� EBITDA margin between 3.4% and 3.8%

Company Refinancing

� Antalis is currently reviewing its refinancing options and plan to engage into refinancing

execution in H2 2017


MidMidMidMid----Term ObjectivesTerm ObjectivesTerm ObjectivesTerm Objectives

44

Revenue

� Low single digit yearly organic decrease in total revenue:

‒ Continued revenue growth and shift towards higher growth, higher-margin Packaging and

Visual Communication business sectors

‒ Moderate yearly organic decrease in Paper revenues

‒ Antalis aims at generating €400m revenues through its e-platforms vs €261m in 2016

2020 Objectives(1)

Operating profitability

� 4% EBITDA margin target vs 3.6% in 2016 thanks to several levers :

- Greater contribution of the Packaging and Visual Communication to gross margin

- Cost-effective contribution of e-platforms revenues

- Continuous cost optimization across IT, Supply-chain and Sales & Marketing

FinancialPolicy

� Natural deleveraging enabling to reach year-end Net debt / EBITDA ratio below 2.5x (before

acquisitions)

(1) Before acquisition and at constant exchange rate (2) ROCE: EBIT after normative taxes / Capital Employed at end of year

Value creation � After tax ROCE(2) above 11.5%

Capital allocation

• The Group is considering paying a regular dividend in the next few years, but wishes to

prioritise acquisitions in the Packaging and Visual Communication sectors, along with

investments in digital information systems


AppendicesAppendicesAppendicesAppendices


ShareholdingShareholdingShareholdingShareholding StructureStructureStructureStructure

46

Before (as of 09/05/2017)After distribution of 18.36% of Antalis

Impala GroupImpala GroupImpala GroupImpala GroupBpifranceBpifranceBpifranceBpifrance

ParticipationsParticipationsParticipationsParticipationsFree floatFree floatFree floatFree float

10.8% 73.8%15.4%

100%

Impala Impala Impala Impala GroupGroupGroupGroup

BpifranceBpifranceBpifranceBpifrancePart.Part.Part.Part.

Free FloatFree FloatFree FloatFree Float

81.6% 13.6%2.8%2.0%


2016 2016 2016 2016 Financial StatementsFinancial StatementsFinancial StatementsFinancial Statements

47

P&L

(in € millions) 2016 2015 % 2016 / 2015

Sales 2,459 2,625 -6.3%

EBITDA 88 94 -6.4%

EBITDA margin (%) 3.6% 3.6%

Recurring Operating Income 64 68 -5.9%

Operating margin (%) 2.6% 2.6%

Non-recurring items -27 -23

Net financial expense -28 -33

Income taxes -4 -4

Net income attributable to owners 5 8

� Sales decline by 6.3% (-2.3% at constant

exchange rate)

o Mainly driven by a €109m unfavorable FX

effect (mainly from GBP) and the negative

impact from the decline in papers volumes

o Partly compensated by the growing

contribution from Packaging and Visual

Communication and acquisitions achieved in

2015

� EBITDA margin maintained at 2015 level (i.e.

3.6%) thanks to effective cost discipline and

achieved variability of transportation costs


2016 Financial Statements2016 Financial Statements2016 Financial Statements2016 Financial Statements

48

Key P&L performance indicators per business sector

(in € millions) 2016 2015 % 2016 / 2015

Sales 2,459 2,625 -6.3%

Papers 1,746 1,958 -10.8%

Packaging 485 443 9.5%

Visual Communication 228 224 1.8%

Gross margin 597 631 -5.4%

Papers 402 448 -10.3%

Packaging 133 122 9.0%

Visual Communication 62 61 1.6%

� Decline in Papers is limited to 6.1% at constant

exchange rate, in line with the trend observed

on the market

� Positive dynamics for Packaging and Visual

Communication business sectors, supported by

favorable market factors

o Organic growth rate stands at 3.6% and

2.7% respectively

� Growing contribution of Packaging and Visual

Communication on the gross margin


2016 Financial Statements2016 Financial Statements2016 Financial Statements2016 Financial Statements

49

P&L per geography

(in € millions) 2016201620162016 2015201520152015% 2016 / 2015

SalesSalesSalesSales 2,4592,4592,4592,459 2,6252,6252,6252,625 ----6.3%6.3%6.3%6.3%

UK & Ireland 663 768 -13.7%

France 279 300 -7.0%

Germany & Austria 316 333 -5.1%

Main European countries 1,258 1,401 -10.2%

Rest of Europe 974 983 -0.9%

Rest of the World 227 241 -5.8%

Gross marginGross marginGross marginGross margin 597597597597 631631631631 ----5.4%5.4%5.4%5.4%

Main European countries 287 314 -8.6%


Rest of the World 61 63 -3.2%

EBITDAEBITDAEBITDAEBITDA 88888888 94949494 ----6.4%6.4%6.4%6.4%

Main European countries 45 48 -6.3%


Rest of the World 10 9 11.1%

� UK & Ireland sales decline equals to -3% at

constant exchange rate

o i.e. a €31m decrease vs €105m as reported

� Declining sales in France (-7.0%) broadly in line

with market trends (c. -6% on the papers

market)

� Decrease in Germany & Austria (-5.1%) sales

lower than the domestic markets (c. -6% on the

papers market)

� Rest of Europe sales decline equivalent to -4%

at constant rate

� Unfavorable FX impact partly compensated by

positive impact from acquisitions

� In Rest of the World, sales decline by 5.8%

mainly explained by a €13m FX impact from

BRL and ZAR evolution



50

Balance sheet

(in € millions) 31 Dec. 201631 Dec. 201631 Dec. 201631 Dec. 2016 31 Dec. 201531 Dec. 201531 Dec. 201531 Dec. 2015

Goodwill 150 147

Property, plant & equipment 49 50

Intangible assets 43 48

Other fixed assets 30 29

Operating WCR 297 303

Other current assets (liabilities) -89 -107

Total assetsTotal assetsTotal assetsTotal assets 480480480480 470470470470

Shareholders' equity 141 156

Non-controlling interests 1 0

Provisions 81 79

Net debt 256 235

Deferred tax liabilities 1 3

Total Total Total Total liabilitiesliabilitiesliabilitiesliabilities 480480480480 470470470470



51

Change in net debt

(in € millions) 31 Dec. 201631 Dec. 201631 Dec. 201631 Dec. 2016 31 Dec. 201531 Dec. 201531 Dec. 201531 Dec. 2015

Consolidated net debt Consolidated net debt Consolidated net debt Consolidated net debt ---- 1 January1 January1 January1 January ----232232232232 ----250250250250

EBITDA 88 94

Change in WCR of businesses -15 42

Capex -16 -17

Asset disposals 3 11

Operating cash flowOperating cash flowOperating cash flowOperating cash flow 59595959 129129129129

Net finance costs -23 -26

Income tax expenses -5 -6

Restructuring costs & other non-recurring items -24 -36

Disposals / (acquisitions) -8 -24

Financial restructuring programme -2 -2

Currency impact -6 -4

Other items -13 -14

Consolidated net debt Consolidated net debt Consolidated net debt Consolidated net debt ---- 31 December31 December31 December31 December ----254254254254 ----232232232232

� Negative change in WCR over 2016:

o Decrease in payables partially compensated

by the decrease in inventory and receivables

� Decrease in restructuring costs


Review of Existing FinancingReview of Existing FinancingReview of Existing FinancingReview of Existing Financing

52

Net debt & refinancing roadmap

� RecentRecentRecentRecent diversificationdiversificationdiversificationdiversification ofofofof Antalis’Antalis’Antalis’Antalis’ financialfinancialfinancialfinancial resourcesresourcesresourcesresources::::

– Factoring program of €200m (maturing in December 2018): €145m drawn as of 31 December 2016

– Syndicated credit facility of €310 million (maturing in December 2018): €237m drawn as of 31 December 2016

� NetNetNetNet debtdebtdebtdebt ofofofof €254254254254mmmm asasasas ofofofof 31313131 DecemberDecemberDecemberDecember 2016201620162016 (vs(vs(vs(vs €232232232232mmmm atatatat 31313131 DecemberDecemberDecemberDecember 2015201520152015))))::::

� FinancialFinancialFinancialFinancial ratiosratiosratiosratios (covenants)(covenants)(covenants)(covenants) atatatat 31313131 DecemberDecemberDecemberDecember 2016201620162016::::

– Leverage ratio (Net debt /EBITDA) = 2.9x (≤ 3.35x)

– Interest coverage ratio (Recurring operating income/net finance costs) = 4.2x (≥ 2.30x)

� FinancialFinancialFinancialFinancial covenantscovenantscovenantscovenants ofofofof thethethethe factoringfactoringfactoringfactoring programmeprogrammeprogrammeprogramme alignedalignedalignedaligned withwithwithwith thosethosethosethose applicableapplicableapplicableapplicable totototo thethethethe creditcreditcreditcredit facilityfacilityfacilityfacility::::

Test date Leverage ratio Interest coverage ratio 30 June 2017 ≤ 3.30 ≥ 2.3530 September 2017 ≤ 4.55 ≥ 2.3531 December 2017 ≤ 3.20 ≥ 2.3531 March 2018 ≤ 3.95 ≥ 2.4030 June 2018 ≤ 3.05 ≥ 2.4030 September 2018 ≤ 4.10 ≥ 2.45

� DebtDebtDebtDebt refinancingrefinancingrefinancingrefinancing processprocessprocessprocess willwillwillwill startstartstartstart inininin HHHH2222 2017201720172017

CovenantActual


New New New New GovernanceGovernanceGovernanceGovernance

53

50% independent Board members � vs 33% recommended by

AFEP-MEDEF for controlled companies(1)

�

At least 40% women or men represented� Parity : 5 women / 3 men

�

Management Board complying with AFEP-MEDEF standards

Hervé Poncin

Cécile Helme-Guizon

Franck Bruel

Clare Chatfield

CEO of Antalis

Independent

Independent

Delphine Drouets

Independent

Pascal Lebard

Chairman and CEO of Sequana, Chairman of the Board of Directors of Antalis

Board member of Sequana

Christine Mondollot

Independent

Amélie Finaz de Villaine

>> 8 Board members

Accounts Committee(2)

� At least 3 members� 2/3 of independent � President : independent

�

Appointments and Remuneration Committee(2)

� Majority of independent members

� No executive director

�

(1) Within the meaning of Article L233-33 of the French Commercial Code(2) Composition to be determined by a decision of the Board of Directors following the admission of the Company's shares to trading on Euronext Paris

Investment director at Bpifrance Investissement


Contact Contact Contact Contact

54

www.antalis.com

Antalis International

Analysts & InvestorsXavier Roy-Contancin+33(0)1 58 04 22 80

CommunicationSylvie Noqué+33(0)01 58 04 22 [email protected]

Image Sept

Claire DoligezPriscille Reneaume+33(0)1 53 70 74 [email protected]@image7.fr


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