6 June 2018 - Antalis · Xerox and Roland Provide After Sales support for hardware repair m and maintenance + complaint management After Sales technicians Dedicated sales force for

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


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


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



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.



9%

11%


https://www.google.fr/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwic6KTfybPTAhXEyRQKHe_-DD0QjRwIBw&url=https://en.wikipedia.org/wiki/File:Avery_Dennison_(logo).svg&psig=AFQjCNEucdnFTMOxJJOcZyr0E2KovDMGUQ&ust=1492796132782662

https://www.google.fr/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwic6KTfybPTAhXEyRQKHe_-DD0QjRwIBw&url=https://en.wikipedia.org/wiki/File:Avery_Dennison_(logo).svg&psig=AFQjCNEucdnFTMOxJJOcZyr0E2KovDMGUQ&ust=1492796132782662

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


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


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.)


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 &


– 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


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


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


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


17

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%


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


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


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


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.


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


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.


FY 2017 financial statements


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.


(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


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


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


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


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)


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


Outlook


•

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


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


www.antalis.com

34

+33 1 58 04 22 80

[email protected]


Documents

6 June 2018 - Antalis · Xerox and Roland Provide After Sales support for hardware repair m and maintenance + complaint management After Sales technicians Dedicated sales force for