Global Supply Chain top-tiernoRbeRt DentRessAngle 2014 Annual Report 08 I 09 A GLOBAL PARTNER 64,000 SEA FrEIGHt 9,650,000 m 3 tEMPErAtUrE-CONtrOLLED WArEHOUSING VOLUME (CHILLED AND

G l o b a lSupply Chaint o p - t i e rpa rt n e r

2014 AnnuAl RepoRt

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On June 8, 2015, XPO Logistics Acquired Norbert Dentressangle SA

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I 01

A NEWSTATURE

NORBERT DENTRESSANGLE2014 Annual Report

noRbeRt DentRessAngle 2014 Annual Report 02 I 03

2014

Acquisition of Jacobson, the fifth-largest logistics operator in the usA.

+20% growth in e-commerce.

Acquisition of MgF logistique (France). Acquisition of Hopkinson transport (uK). First stage of Air & sea growth achieved.

listed on euronext for 20 years.

+11% growth for Keypl®.

the official transport and logistics partner for the tour de France for 35 years.

second Red graduate programme now underway.

ongoing investment in the vehicle fleet, european leader.


04 I 05

2014

2010

1998

1994

1979

35 YEARS OF STEADY GROWTH

Norbert DeNtressaNgle 2014 annual report 06 I 07

A SUCCESS STORY

1994 1998 2007 2010 20141979

48%

40%

60%

48%

4%

20%

25%

75%

80%

95%

100%

55%

45%

37%

63%

48%

40%

60%

48%

4%

20%

25%

75%

80%

95%

100%

55%

45%

37%

63%

20%

25%

75%

80%

95%

100%

48%

40%

60%

48%4%

55%

45%

37%

63%

45%

35%

65%

51%

4%

48%

40%

60%

48%

4%

20%

25%

75%

80%

95%

100%

55%

45%

37%

63%

42,500 STAFF

€4,669 million REVENUE

€167.9 million EBITA

3.6 % EBITA mARgIN IN % oF REVENUE

€126 million NET FINANCIAL DEBT

3.0 x LEVERAgE RATIo

€75.9 million gRoUP’S SHARE oF NET EARNINgS

€7.75 NET EARNINgS PER SHARE

breakdown of revenue by geographic area

FRAnCe outsIDe FRAnCe

ContRACt logIstICs tRAnspoRt AIR & seA

breakdown of revenue by business line

A second business line is integrated: logistics.

launch of a third business line: Air & sea.

strategic acquisition of Jacobson Companies. the usA is now the 3rd biggest market for norbert Dentressangle.

norbert Dentressangle is listed on the stock exchange.

International transport between the Continental europe-great britain axis is started.

norbert Dentressangle doubles in size through the acquisition of the british company, Christian salvesen.


A GLOBAL PARTNER

64,000SEA FrEIGHt

9,650,000m3

tEMPErAtUrE-CONtrOLLED WArEHOUSING VOLUME(CHILLED AND FrOZEN)

1St

FLEEt IN EUrOPE

42,500EMPLOyEES

25 COUNtrIES

29%

3%

5%5%

10%

United Kingdom

12%Spain

36%France

28%Retail

16%Food

9%Chemicals andpetrochemicalsAutomotiveIndustrial

7%

4%

Fashion and Luxury goodsE-commerce

Construction

3%Household equipmentFMCG

2%High tech

Netherlands

United States(4 months)

Italy

Other countries

BreaKDOWn OF reVenUe BY COUntrY

29%

3%

5%5%

10%

United Kingdom

12%Spain

36%France

28%Retail

16%Food

9%Chemicals andpetrochemicalsAutomotiveIndustrial

7%

4%

Fashion and Luxury goodsE-commerce

Construction

3%Household equipmentFMCG

2%High tech

Netherlands

United States(4 months)

Italy

Other countries

BreaKDOWn OF reVenUe BY BUSIneSS SeCtOr

3 EXPErtISE FOr tHE SUPPLy CHAINKEy CONSOLIDAtED DAtA

BreaKDOWn OF StaFF WOrLDWIDe*

* With Jacobson effect

United Kingdom

France

United States

Spain

Other countries

14,900

12,600

5,000

2,800

7,300

650,000COVErED ON AVErAGEby EACH DrIVEr WItHOUtCAUSING AN ACCIDENt

KM

tU’s

32,000 AIr FrEIGHt

tONNES

27,800EMPLOyEES

13,900EMPLOyEES

650 EMPLOyEES

€2,188rEVENUE

MILLION€2,359rEVENUE

MILLION €206rEVENUE

MILLION

€4,669rEVENUE

MILLION

43,138OF CO2 SAVEDSINCE 2010

tONNE

LOGIStICS tranSpOrt aIr & Sea

nUmBer OF KILOmetreS COVereD On aVeraGe BY eaCh DrIVer WIthOUt CaUSInG an aCCIDent

1990 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 201413

700 000 Km

600 000 Km

500 000 Km

400 000 Km

300 000 Km

200 000 Km

100 000 Km

14 COUNtrIES

14 COUNtrIES

16 COUNtrIES

54OFFICES

217AGENCIES

439WArEHOUSES

10,800MOtOr VEHICLES

10,400,000m2

WArEHOUSING

Follow us on:@NDentressangle

Norbert Dentressangle

Dentressangle1 Also available:2014 Registration Document on www.norbert-dentressangle.com (section investors)

10 I 11

CONTENTS


A WOrLD OF OPPOrtUNItIES Interview with Hervé Montjotin, CEO p 14Transport in 2014 with Luis Angel Gómez, Managing Director p 18Logistics in 2014 with Malcolm Wilson, Managing Director p 20Air & Sea in 2014 p 22USA, outstanding opportunities for growth with Scott Temple, 3PL Country Manager p 24Message from Norbert Dentressangle, Chairman of the Supervisory Board p 26

StrENGtHENED by OUr DIFFErENCESPeople in red p 30Human Resources, at the heart of our ambition, by Ludovic Oster, Group HR Director p 32Our social responsibility, a peformance lever p 34Road safety p 36Cleaner transport p 38In it together p 40

SUPPLy CHAIN EXPErtS E-commerce p 44Aerospace p 46Fashion p 48Perishable goods p 50Automotive p 52Chemicals p 54

OUr FINANCIAL rObUStNESS, A MAjOr ASSEtCombining growth and financial performance, by Patrick Bataillard, CFO p 58Capital and stock exchange information p 60

12 I 13


A WORLD OF OPPORTUNITIES


ALWAYS ENTREPRENEURS

What is your assessment of the past year?With a 15.8% increase in sales to €4,669 million in 2014, norbert Dentressangle is achieving its targets in difficult european economic con-ditions. I welcome the fact that the group has recorded significant like-for-like organic growth of 4.1% across its three business lines of transport, logistics and Air & sea. since 2010 it has exceeded the sector average with a compound annual growth rate (CAgR) of approximately 11%. profitability has also progressed, with an operating margin of 3.6%.

the profitability of the transport Division has been on a constant up-ward trend. the operating margin of the logistics business remained at the same high level of 4.5% as in 2013. And lastly, the 1.7% operating margin of the Air & sea Division demonstrates a good initial level of performance only four years after its launch.

the strategic acquisition of Jacobson, the fifth-largest logistics operator in the united states, is a further major growth milestone for the group. the initial

integration phase has been successful in both continuity and operational performance, and also in the synergies to be found between our european and American teams. this success demonstrates our ability to successfully manage major acquisitions.

It is a stated ambition of norbert Dentressangle to be a global Supply Chain management partner. What exactly does this mean?It means being a top-tier partner capable of meeting the expectations of all our customers, both local and international companies, supporting their growth and development, and being their supply chain partner of choice at both local and global level. It is this strategic vision that has shaped the company for the last 35 years and will continue to do so.

What makes the Group today’s partner of choice?norbert Dentressangle is now a key player in the market. Firstly due to its size: it now has a staff of nearly 43,000. but also as a result of its geographic footprint which, with a presence in 25 countries, now extends significantly beyond europe. Finally, its position can be explained by the breadth in the range of services offered in our three business lines and our acknowledged expertise in a number of sectors that make high demands on transport and logistics, such as e-commerce, luxury goods, textiles, chemicals, retail or fresh and frozen products. We are now able to bid for major supply Chain tenders involving complex sets of problems that call for innovative and integrated solutions.

now that is has reached such a scale how can the Group remain true to the spirit of its origins?I am pleased to say that in recent years we have grown significantly in both size and geographic reach without losing our identity. so, how have we done this? by always remembering that we are all, first and foremost entrepreneurs. every day, across the world, our teams remain true to this entrepreneurial spirit, through their commitment to responding to clients’ needs with flexibility and excellence. Added to this, the family, led by our entre preneurial founder, norbert Dentressangle, remain the majority shareholders and remain committed to this spirit.

this balance of being a global player yet still with an entrepreneurial spirit is unique in our sector and is a considerable advantage that sets us apart in the market.

Interview with Hervé Montjotin, Ceo.


You have alluded to the employees of norbert Dentressangle, what is their contribution to this success story?the key to our success is the quality of the execution, combining added value solutions with efficient cost mana-gement. this is a real challenge but one which the ‘people in red” rise to every single day.

We all strive to provide our clients with excellent service, creating value whatever the requirement, by using our entrepreneurial common sense. It’s what we call the “norbert Dentressangle way”.the company has always sought to imbibe this culture across all its global teams. to remain successful we must be able to develop and grow all the ‘people in red’ whilst remaining faithful to our founding values.

So, what new opportunities does the future hold for norbert Dentressangle?We have four good reasons to be optimistic for continued growth in the future. the transport business which is where the company began and is at the heart of the supply Chain, offers us real opportunities for growth, particularly by focusing on added value services. our european pallet network (Red europe), dedicated distribution (Red Inside) and 4pl solution (Keypl®) offerings all allow us to meet market challenges and the needs of customers on an international scale. the logistics business is ready to conquer new markets, thanks

to its ability to support customers across multiple geographies and its acknowledged expertise in key sectors such as e-commerce (+20% growth last year), retail or textiles.

the organic growth of the Air & sea business is as a direct result of its operational excellence and increasing market credibility. Having achieved critical mass with sales of more than €200 million, the Division can now legitimately meet global supply Chain management demands in synergy with the transport and logistics Divisions.

Finally, 2015 will bring a new chapter as we begin our first full year of trading in the usA. With the Jacobson acquisition, norbert Dentressangle intends to seize the opportunities the American market offers by capitalizing on the economic dynamism, whilst focusing on growth sectors such as food, and chemicals.

2014 was an eventful year for norbert Dentressangle, marking a major step forward in the development of our company. this solid basis provides us with everything we need to succeed in 2015.

Further information on corporate governance can be found in the 2014 Registration Document available at norbert-dentressangle.com (see in particular chapter 4, sections 4.2 and 4.3).

Further information on the management report can be found in the 2014 Registration Document (see in particular chapter 2, sections 2.1 to 2.6).

From left to right: Ludovic Oster, HR Director. Patrick bataillard, CFO. malcolm Wilson, Logistics Division Managing Director. Hervé Montjotin, CEO. Luis Angel Gómez, Transport Division Managing Director.

+15.8%bUSINESS GrOWtH

+18.5%OrGANIC GrOWtH

+8.3%GrOUP’S SHArE OF NEt EArNINGS

€4,669 rEVENUE

MILLION


TRANSPORT, PILLAR OF GROWTH

how did the transport Division perform in 2014?It is a business that has enjoyed a sustained recovery on the back of growth. With sales of €2,188 million, transport recorded business growth of +8.7% in 2014 and of +4.3% in price/volume compared with 2013.

the pallet network business remained buoyant throughout the year with our Red europe offering posting growth of 11%. the same performance was seen for our Keypl® solution, which also grew by +11%. only full-load transport activities were affected by the sluggishness of the French industrial sector.

the acquisition of Jacobson in August allowed growth of +3.4% to be achieved over the last 4 months on a consolidated basis.

What makes norbert Dentressangle the partner of choice for transport?norbert Dentressangle aims for operational excellence in its day-to-day operations and has a number of strengths to facilitate this: the largest in-house managed fleet of vehicles in europe; the professionalism of its engineering teams; advanced It systems; and industry-leading investment in road safety and reducing Co2 emissions.

the group has the ability to design and drive forward advanced transport solutions to meet its clients’ needs in terms of efficiency, reliability, safety and respect for the environment. It can rely on the vast geographical coverage of its network, in europe and now in the united states, and its use of multimodal alternatives.

Interview with Luis Angel Gómez, Transport Division Managing Director

the group also stands out thanks to its ability to drive forward global logistics solutions, and is able to provide a single point of contact for clients.

how is the transport Division central to the ambition of the Group to become a leading Supply Chain management partner?Firstly, because of its performance, transport is a resilient and increasingly profitable activity due to its commercial dynamism and the introduction of the value-added-service offerings.

secondly, a strong transport offering is essential to complement our logistics and Air & sea services, if we want to offer integrated supply Chain solutions to meet our clients’ expectations.

Where are the opportunities for future development?transport is continuing to develop its overall offering, through the Red europe pallet network, which was extended to Central europe in 2014 to meet the growing requirement of companies to reduce stocks and manage their flows at domestic and european levels; the Keypl® 4pl solution, because our clients require optimization of their flows and the related reduction in their transport costs; contract distribution with Red Inside on the French and uK markets, where the outlook is promising; and international transport with the project to create a new link between europe and Russia, modeled on the

transport lines we set up to turkey and Morocco in 2014.

Following the acquisition of Jacobson, the transport Division also has new bases in the united states allowing it to develop a domestic transport offering there in synergy with our other business lines which are likewise represented.

+8.7%business growth

2.8%EBITA margin

€2,188revenue

MILLION

1998

Evolution of revenue and EBITA in millions of euros



Transport Revenue Transport EBITA

48528

2188

59

1626

2,359

105

206

3.5

-0.8

12

1998

2010

2014

2014

2014

Logistics Revenue Logistics EBITA

Air & Sea Revenue Air & Sea EBITA

1998

Évolution du chiffre d’affaires (CA) et du résultat opérationnel avant écarts d’acquisition (EBITA) en M€



CA Transport EBITA Transport

48528

2188

59

1626

2359

105

206

3,5

-0,8

12

1998

2010

2014

2014

2014

CA Logistique EBITA Logistique

CA Air & Sea EBITA Air & Sea


Retail and FMCg, and our new us teams now add considerable experience in sectors such as Agro-Chemicals.

the third reason is our logistics Division’s flat organization. this is also a real differentiator, making us extremely agile, with the ability to make decisions fast, while synergies between our teams in different countries and with our Divisions ensure customers benefit from the full range of our expertise.

And finally, our customers know that we can provide extensive capacity in terms of warehouse space and that we have the financial robustness to support them when their logistics projects require investments in mechanization or automation.

What makes Logistics a growth driver and a pillar of performance for the Group?our scale, without question. As we grow, customers are increasingly inclined to entrust us with very large projects, often worth tens of millions of euros, and we can expand the spread of services we offer them within the warehouse, through added-value services like co-packing and complex engineering solutions.

We can also open the way to providing complementary services to logistics, inbound with Air & sea and outbound with road transport.

the fact that logistics is a fully contract-based business, with con tracts running for three years

on average, is also an important element.

Where are the opportunities in the Logistics market?Retail offers exciting scope to grow our business, now and in the future as this sector needs substantial logistics support. And we are in an excellent position in this market. More and more products are being purchased online and we have already developed considerable expertise in e-fulfillment. In 2014 we launched our Red online offer to further strengthen this offer.this solution brings added value e-commerce services to our cus tomers, including leading pure players and multi-channel brands.

these are all factors that make me feel confident about our future performance.

how did the Logistics Division perform in 2014? our Division maintained its strong record of organic growth in 2014, coupled with favorable tactical acquisitions in Italy, spain and France and culminating with our major strategic integration of Jacobson, the 4th largest usA-based logistics provider.

We achieved revenues of €2,359 million, up 20.9% on the previous year, or +5.7% on a like-for-like basis, making us the group’s largest Division.

It became clear during the year that our ability to maintain our focus on our core business and our excellent customer service as our business grows is a key success factor, setting us apart from the competition. It

allows us both to win new contracts and retain existing customers.

to what extent is norbert Dentressangle now truly a global top-tier partner in Logistics?there are four main reasons why I believe norbert Dentressangle is very well placed to claim that position. the first is our ability to provide our customers with innovative and efficient solutions wherever they need them. Indeed, our acquisition of Jacobson makes us truly global and our ability to offer services worldwide is a significant advantage in meeting the needs of both local and global businesses.

secondly, we bring our customers outstanding expertise in various industries such as Food & beverages,

LOGISTICS: NOW NORBERT DENTRESSANGLE’S LARGEST BUSINESS, GOING GLOBAL

Interview with Malcolm Wilson, Logistics Division Managing Director


4.5%EBITA margin

2,359revenue

MILLION

1998





48528

2188

59

1626

2,359

105

206

3.5

-0.8

12

1998

2010

2014

2014

2014



1998





48528

2188

59

1626

2359

105

206

3,5

-0,8

12

1998

2010

2014

2014

2014




AIR & SEA, THE FIRST STAGE OF GROWTH ACHIEVED

our Air & sea expert teams enhance the offering of norbert Dentressangle overall.

the future priority for the air & Sea Division is to continue developing synergies with the transport and Logistics Divisions,as is already the case for certain clients of the group. With recognized positions on the commercial routes between France and Russia and China and the united states, the Air & sea teams also capitalize on a tried and tested business model by replicating it in other regions in support of their clients. In the rapidly-expanding aerospace sector, norbert Dentressangle is aiming to offer its expertise to all the key players. the knowledge of the teams specializing in Aog (Aircraft on ground) and the ability to operate in the vast Aviation

logistics network (Aln) are key to its success.

the air & Sea activity recorded sales of €206 million in 2014, an increase of 42.2% compared with 2013 and +2.8% on an organic basis. these figures are evidence of the solid foundations for growth which will allow the momentum to be continued.Acknowledged expertise in aero-space, chemicals, luxury goods and the management of large industrial products, together with know-how in customs engineering – particularly in Russia – have made norbert Dentressangle a credible partner in the market.

Four years on from its launch, the Air & sea activity has also shown how it can complement the group’s transport and logistics activities, thereby enhancing the legitimacy of norbert Dentressangle as a leading supply Chain partner in the eyes of its clients.

norbert Dentressangle is now a major international provider of air & Sea services.this is best illustrated by the increased number of invitation to

tender enquiries now regularly received. In 2014 it was placed in the top three of all major Air & sea tenders in which it took part, despite only being a relatively new market entrant.

such success underline the recognition major clients place on norbert Dentressangle’s ability to provide global solutions to their supply Chain problems without compromising its characteristic agility.

this recognition provides additional leverage when negotiating rates and space availability with all the main maritime and airline com pany partners, allowing norbert Dentressangle to propose the best client solutions.

Finally, the strengthening of the company’s foothold in the united states is generating genuine interest among our clients who see it as an opportunity to develop their operations in this region.

the air & Sea Division is now fully equipped to add to the Group’s growth momentum.Its global presence enables the Division to support its clients in all their projects. Apart from this international footprint, the Division also benefits from expertise in the abovementioned economic sectors where the freight forwarding requirements are colossal. such knowledge strengthens the group’s positions in these markets. Finally, working in synergy with the group’s transport and logistics Divisions,

With more than €200 million

of sales generated in 2014, the Air

& Sea Division has achieved

critical mass. Today more than

ever it can legitimately meet the

global Supply Chain management

demands in synergy with our

Transport and Logistics Divisions.

As for its organic growth in 2014,

this is proof of its operational

excellence and its market

credibility.”

Hervé Montjotin, CEO


206revenue

MILLION

1998





48528

2188

59

1626

2,359

105

206

3.5

-0.8

12

1998

2010

2014

2014

2014



1998





48528

2188

59

1626

2359

105

206

3,5

-0,8

12

1998

2010

2014

2014

2014



1.7%EBITA margin


how is the integration of Jacobson Companies into norbert Dentressangle progressing? the integration is progressing well, and ahead of schedule. When we first met with representatives from norbert Dentressangle, it was apparent that there was a great deal of common ground, not just with the type of customers we serve, but also with our culture and the family orientation of the businesses.

how have your clients reacted to this acquisition?the fact that norbert Dentressangle openly expressed the intention to keep the business intact and retain existing management was very much appreciated by our customers. We are no longer seen as just a us entity but a global player that can provide the same level of top-tier service, whether in the united states, europe, or elsewhere in the world. this capability provides customers with a better-rounded solution that

USA: OUTSTANDING OPPORTUNITIES FOR GROWTH

Interview with Scott Temple, US 3PL Country Manager

Scott Temple joined Jacobson Companies in 2007, serving as Senior Vice President of Operations, then President of Transportation Logistics Services and later President of Contract Logistics Services. Today Scott Temple serves as the US 3PL Country Manager.

US consumers are demanding. They want quality items for a reasonable price, and they want them ‘yesterday’. Not all companies can keep up with that pace. So as the US economy continues to improve, you’re definitively going to see more companies outsource operations - packaging, kitting, sub-assembly - to third-party providers to increase speed-to-market and satisfy customer demand.

Stepping into the US market when Norbert Dentressangle did was a brilliant move. The US economy is improving at a steady rate, but I don’t think the true ‘boom’ has happened yet. Companies have to be ready to position their resources for growth; not just their infrastructure, but their people and processes too. They have to account for the increase in products and speed of delivery demanded by consumers.

My outlook on the market is very positive. Norbert Dentressangle has come into the US at an exciting and opportune time. Jacobson was a middle market company with impressive footprint and book of business. Now as part of Norbert Dentressangle, with their flexibility and responsiveness, there is still a lot of room to grow.”

eXpert VOICe tony tegnelia, Advisory Board Member

What are the commercial opportu nities for norbert Dentressangle in the US today?the cross-selling between the us and our new european colleagues is tremendous and we have already listed a lot of opportunities we are working on jointly. our Chemical expertise adds value to the existing business in europe, and the company’s e-commerce and Retail capabilities are easily transferrable to the us. norbert Dentressangle’s transportation ex pertise is really going to help us expand our activity in the transportation industry.

What is your outlook on 2015?I am very optimistic about the opportunities for 2015. We’re coming off of a solid fourth quarter for 2014, and the us economy continues to improve. the integration with norbert Dentressangle is almost complete and the process has been embraced by our operations, our people, and our customers. new opportunities have never been greater across the entire business.

will allow them to maintain high levels of service across their supply chain.

how has the norbert Dentressangle brand been received by the US marketplace? norbert Dentressangle’s entry into the united states was quite a surprise. but the group’s stature in the world market adds an additional level of credibility to our existing product line. As we take on the name norbert Dentressangle, I’m excited about expanding our opportunities, and demonstrating the strength of our new owners to the us market and growing the norbert Dentressangle brand.

and by US employees and leaders? our integration into norbert Dentressangle is the best possible outcome for our employees. It allows us to take a long-term look at the business and create better opportunities for our people by having a strategic ownership in place. We have fully embraced our move into the norbert Dentressangle group.

Focus on Jacobson Companies

Jacobson Companies was started in 1968 by Mr. Richard Jacobson as a warehousing and distribution company, and later. As the company grew over time it added on a transportation business unit to further enhance and broaden its range of service offerings.For more than 45 years, the company earned the respect of clients across sectors for their customer-centric culture and entrepreneurial spirit.


SUSTAINABLE GROWTH

Norbert Dentressangle, who founded the Group in 1979 is now Chairman of the Supervisory Board.

“For norbert Dentressangle, 35 years after it was first established, 2014 will be remembered as a watershed in the history of the company, a year in which a major strategic move was made with the acquisition of the us Jacobson logistics company against a backdrop of very weak european growth.

this us acquisition is accelerating the transformation of our group and we are already feeling the effects on the size of our company, how it is organized and its balance sheet. In particular, this move is creating new impetus which will help towards a more balanced business and

geographical spread as well as strengthening brand recognition.

since the outset it is growth that has spurred us on at norbert Dentressangle. It is both our fuel and our engine. the company’s strategy has remained simple: grow to become, and remain a leading player for all our clients, wherever they are in the world. grow by combining organic growth with the acquisition of other companies, providing us with new service offerings, new skills and talents and new clients leading us to new horizons.

From the acquisition of Christian salvesen at the end of 2007 to that of Jacobson in the summer of 2014, growth of the group, which has been strong since the 1990s, has accelerated despite the major crisis we experienced from 2008 onwards. the performance that we were able to maintain throughout this period was welcomed by the market and to my mind essential elements were strengthened in terms of the momentum behind the development and internationalization of norbert Dentressangle, and our attractiveness to our clients and employees.

thanks to the acquisition of Jacobson and consistent with our ambition for norbert Dentressangle, we are now a global group, with a presence in major economies such as the united states, the uK, France and Russia and also spain, Italy, netherlands, belgium and poland, with promising footholds in China and brazil.today we are succeeding in winning major clients on all continents, while enhancing our product mix. As for our teams, these are driven by a high level of excellence and desire and demonstrate a strong ability to adapt.

We approach 2015 strengthened by a new reach and a macroeconomic environment in europe on an improving trend.

I have every confidence that the executive board team, with the help of all group employees, will follow a

path to growth which also creates value for our shareholders.”

Further information on corporate governance can be found in the 2014 registration document available at norbert-dentressangle.com (see in particular chapter 4, sections 4.1 and 4.4 to 4.9).

Norbert Dentressangle,Chairman of the Supervisory Board

MEMBERS OF DENTRESSANGLE INITIATIVES

Henri Lachmann Vice-Chairman and Lead Director of the Board of Directors of Schneider Electric SA

Pierre-Henri Dentressangle CEO of Hi Inov

Evelyne Dentressangle Vice-chairwoman of the Supervisory Board of Norbert Dentressangle SA

jean-bernard LafontaCEO of HLD Associés

Vincent MénezManaging Director of Dentressangle InitiativesMember of the Audit Committee

jean-Luc Poumarède Managing Director of Fast Booking, Investor and Director of the personal services company To Do Today and Wealth Management Consultant Chairman of the Audit Committee

François-Marie Valentin Director - Trustee of pension funds CSPS and TDGPS

bruno roussetFounding CEO of the April Group and Founding CEO of the capital investment fund Evolem Member of the Audit Committee

INDEPENDENT DIRECTORSClare ChatfieldSenior Partner at L.E.K. Consulting and Managing Director of L.E.K. Paris

28 I 29


STRENGTHENED BY OUR DIFFERENCES


PEOPLE IN RED

entrepreneurs

everyone acts as entrepreneurs, driven by the desire to rise to ambitious challenges in the service of their customers. they have a taste for good performance and distinguish themselves through their ability to be a creative force and to innovate. A spirit of initiative, a sense of responsibility, and diligent management guides them through each day.

Focussed on excellence

they are experts, each in their own field. they are always looking to do the right thing and cultivate a good work ethic. they strive to make continuous progress, showing attentiveness and humility.

Committed

they are committed to improving the performance of their customers. Available and responsive, they strive to earn their trust every day. Keeping promises is a golden rule.

Standing together

they work in teams and share a common passion for the profession. transparency,

integrity and loyalty unite them.


HUMAN RESOURCES, AT THE HEART OF OUR AMBITION

the world, mainly in the uK and France, but now also in the united states. We have had to adapt in order to continue recruiting and supporting employees on this new scale, whilst remaining true to our Human Resources brief.

As a decentralized organization, all managers from team leader to director, have a responsibility for the deve-lopment of their teams. that is why we have continued to roll out our Red Management programme and, by the end of 2014, 2,000 managers (team leaders, operators, site Managers, Regional Directors, etc) throughout the world had completed it. We have also offered all employees professional apprenticeships and developed our commitment to safety training, specifically through the safe Driving plan which provides a development path for all drivers joining norbert Dentressangle.

Finally, building on the success of the 2013 Red graduate programme, that fast-tracks young graduates and high flyers, 2014 saw a new intake of 27 young people from throughout europe. these young, motivated recruits will become our managers of the future.

In august 2014 norbert Dentressangle acquired the US company Jacobson. how has the integration of these 5,000 new employees gone? throughout the acquisition phase it was noticeable how our two companies share similar culture and values. like the employees at norbert Dentressangle, the Jacobson teams have a customer focused business with a pragmatic and responsive approach. And both share the same entrepreneurial spirit.

since the Jacobson teams were already highly professional and effective, we have concentrated on identifying at what level we can provide them with real added value. to do this we have favored exchanges of information and meetings between european and us counterparts to promote the sharing and under-standing of our methods and processes, whilst preserving their autonomy at operational level. I believe that this has been a successful first step.

What will be your priorities in 2015? our Human Resources brief sets out the following priorities, with the aim of contributing fully to the group’s ambition to be a top-tier international partner:• to continue working to identify

potential; • to continue with the Development

Centers for the country managers and operating site managers;

• to support professional development through training;

• to integrate and retain the young talent coming through the Red graduate programme;

• to roll out and strengthen our human resources management tools.

Further information on Human Resources can be found in the 2014 Registration Document available at norbert-dentressangle.com (see in particular chapter 2, section 2.7).

You were appointed to the executive Board of norbert Dentressangle in november 2014. What does this appointment say about the status of human resources within the Group?It is the ambition of norbert Dentressangle to continue developing into a top-tier partner for its clients. this makes management of Human Resources a priority. Indeed, every single person working at norbert Dentressangle are key to our performance and the success of the company. My appointment to the executive board of the group in 2014 is an acknowledgement of the central role played by our employees, who mark us out from the rest. It is also the result of the contribution made every day by the Human Resources teams and managers.

how do human resources specifically contribute to the achievement of this ambition?In order to maintain and grow the ‘people in red’ who are at the very heart of the business, we not only have to attract the best talent but also support and develop existing teams. We have three main objectives: improving effectiveness, looking at new ways of working to prepare for the future; and encouraging promotion from within. Indeed, we are convinced that the development of every person contributes to the success of the company and the “You grow, We grow” philosophy is central to our commitment to Human Resources.

What is your assessment of 2014?this year the workforce has grown significantly. norbert Dentressangle now has 42,500 employees across

Ludovic oster, new member of the Executive Board, has been a Human Resources Director since 1993. After 15 years’ international experience in the Automotive sector, he joined Norbert Dentressangle in 2008 as Group HR Director with a brief to support its internationalization.

ALMOSt

60%of key positions filled through internal promotion

42,500staff

2,000managers trained through the Red Management Programme


OUR SOCIAL RESPONSIBILITY, A PEFORMANCE LEVER

Across the whole of the business there is a strong link between the economic challenges of our development and the requirements to control the impact of our activities on the environment and society. That is why our corporate social responsibility (CSR) commitment is central to our corporate strategy.

an approach anchored in the reality of our operationssince 2003 norbert Dentressangle has been investing in a voluntary approach to sustainable development. the group has prioritized three areas for its commitment, that echo the business characteristics: safety, on the road or in the warehouse; control of the environmental footprint, through a reduction in Co2 emissions and particles from vehicles and environmental management of sites; and social integration and promotion, two principles that underpin our Human Resources policy of You grow, We grow.

our initiative is guided by a desire for continuous improvement, measurement of performance and innovation in the choice of solutions. the involvement and behavior of each of our employees every day is the guarantee of our success.

Going further with the United nations Global CompactIn 2013 norbert Dentressangle signed up to the united nations global Compact, extending the scope of its commitment. the group embraces the 10 fundamental principles of the pact promoting human rights, labor standards, the environment and anti-corruption.

It promotes these principles across the whole business and incorporates them in its strategic roadmap, commercial culture and operational procedures. A progress report on this commitment is published annually.

Further information on CSR commitment can be found in the 2014 Registration Document available at norbert-dentressangle.com (see in particular chapter 2, sections 2.8, 2.9, 2.11 and 2.13).

Further information on the commitments made in the context of the United Nations global Compact and in particular on anti-corruption can be found on the norbert-dentressangle.com website under the Commitments and CSR tab.

.


handling risksthe control of Risk is not only confined to the roads: it is also relevant when handling product. the transport Division has developed the Safe Handling Practice Plan speci-fically for loading bay operatives,

enabling the sharing best practice and spreading the safety culture as widely as possible.

At Norbert Dentressangle safety is an integral part of the company culture and it is everyone’s business. A major initiative aimed at controlling road-related risks, the Group’s Safety policy, is present across the business. On the road or in the warehouse, risk management and prevention are an everyday priority.

prevention and trainingWhen it comes to safety, nothing is inevitable. Most accidents are a result of decisions and behaviors of individuals, so are avoidable.

prevention is the key to norbert Dentressangle’s safety at work policy. the aim is to raise awareness of foreseeable risks, by analyzing previous accidents in order to learn lessons and avoid them recurring.

the group prioritizes the training of employees on how to adopt appropriate behaviors and make the correct decisions.

road safetysince 1991 all drivers must undertake training on the safe Driving plan programme. Right across europe, the results speak for themselves every day - each norbert Dentressangle driver travels 650,000 kilometers on average without an at-fault accident. the safe Driving plan Manual is used by driver trainers and instructors to share best practices across europe.

Following the 2013 success of the first top Driver challenge in France, the group will select a top Driver in France, the united Kingdom and Romania in 2015, rewarding exemplary performance, knowledge and driving excellence.

ROAD SAFETY IS OUR PRIORITY

Our earliest road safety initiative was started in 1991 when we set up the Safe Driving Plan for all our drivers. This program offering induction and ongoing training for new drivers is run by our 58 driver instructors and 410 driver trainers, combining theory and practice and focusing on human behavior and safe driving techniques. It also includes instruction on economical driving.

New drivers undertake a week-long refresher and awareness-raising course followed by accompanied training and undergo a safety audit every 18 months, whatever their experience. The one aim is to ensure everyone adopts and maintains, under all circumstances, exemplary behavior on the road. With regular updates and improvements, the Safe Driving Plan has been rolled out across Europe. The

result has been a lower accident rate and lower staff turnover. In 2014, encouraged by the success of this program, the Group set up the Safe Handling Practice Plan for loading bay staff working in our pallet network.”

16or 650,000 km, is the average distance driven by a Norbert Dentressangle driver without at-fault accident

tIMES ArOUND tHE WOrLD

eXpert VOICe Damien Chapotot, Director of the Distribution and Groupage Business Unit and Transport Division Safety Manager

58driver instructors

410driver trainers


As the operator of Europe’s largest fleet, the Transport Division of Norbert Dentressangle is at the vanguard of reducing the environmental impact of trucks. By using all the technical and behavioral means at its disposal, the Group once again improved its performance in 2014, particularly the carbon footprint of its vehicles.

reducing CO2 emissions is a priorityFor many years norbert Dentressangle continually reduced the carbon foot-print of its vehicles. In 2008, the group was the first carrier to sign up to the “target Co2, Carriers undertake” charter of the French Agency for Environment and Energy Management (ADEME), a voluntary scheme to reduce carbon emissions. by 2012, having re-signed a further three times, the group committed to reduce Co2 emissions by 6% by 2015. In 2014, the group collaborated on producing a new carrier certif cation standard in the form of a “Co2 label”.

Four priority action areasIn order to meet its commitments, norbert Dentressangle has introduced an action plan to reduce fuel con-sumption, the training of drivers in economical driving techniques, trials of alternative fuel engines and route optimizing transport planning. With nearly 55% of the transport Division’s business in France this is where

these initiatives were trialled, and then rolled out across the rest of the business.

the vehicleIn partnership with vehicle and equipment manufacturers, norbert Dentressangle is investing in the latest generation of environmentally compliant euro VI and eeV vehicles, fitted with fuel-saving devices such as automatic engine stop-start systems.

the driver Driver behavior is key when addressing improved vehicle fuel consumption. At norbert Dentressangle, all drivers are trained in economical driving. they are also given responsibility for their individual performance through monthly monitoring. Analysis of driving styles with the help of our on-board It tools a lso a ids continuous improvement.

Fuelsince 2011 when the group began testing a number of diesel-electric hybrid vehicles, followed in 2013 with a prototype electric truck with range extender, the group is now inves-tigating the use of natural gas with lng vehicle trials planned for 2015.

Optimized transport planningnorbert Dentressangle optimizes its transport planning by utilizing the most suitable mode of transport for customers, looking at the most economical and environmentally friendly multimodal options, often combining road transport with river, sea or rail.

In 2014, the emissions reduction plan carried out within the transport Division showed a further improvement of 2.7% (gr/tonne.km).

FOR CLEANER TRANSPORT

-2.7%emissions of CO2 in 2014 compared to 2013

43,138tonnes of CO2 saved by the Transport Division since 2010

Our partnership with Norbert Dentressangle, which began in 2005, is aimed at sharing our complementary expertise. The evaluation of new technologies and the initiatives that we have worked on together were a precursor to the “Target CO2” charter. It was in part due to our shared activities and experiences that we were able to formalize the methodology, the criteria and the indicators for

monitoring the charter, to which Norbert Dentressangle has been a signatory since its official launch in 2008. Since then, ADEME has been supporting the action plan of Norbert Dentressangle, which, in turn, supports our research. Together we operate as a “test bed”. The results of these experiments contribute to our best practice database which we share so the whole transport sector can benefit.

Our project for 2015 is to look at a labelling system to compliment the Target CO2 approach. This involves developing a label that can be displayed by carriers whose vehicle fleet meets CO2 performance levels.”

eXpert VOICe Gérald Lalevée, Engineer at the ADEME Department of Transport and Mobility Department

noRbeRt DentRessAngle 2014 Annual Report 40 I 41

since 2014, three charitable initiatives have been financed and supported by the Norbert Dentressangle Solidarité endowment fund. these focus on : social inclusion, sharing of expertise and health.

Social inclusionActivities promoting the social inclusion of people excluded from the workplace are at the heart of the group commitment. log’ins, a joint social enterprise set up in 2011 by norbert Dentressangle in partnership with the Ares association, trains handicapped or unqualified workers in the logistics profession, offering them access to the world of work. through this system, unparalleled in the industry, log’ins aims to take in and reintegrate into the employment market 80 people between now and the end of 2015.

expertise sharingNorbert Dentressangle Solidarité devotes one aspect of its work to the sharing of its supply chain management expertise. Aimed at supporting populations, organi-zations and countries lacking transport and logistics knowledge, this is illustrated by the current partnership with transaid. Founded in 1980 and based in the united Kingdom, transaid is a charitable organization that implements local transport solutions to promote the economic progress of underprivileged populations in developing countries. As a transaid supporter for over five years, norbert Dentressangle’s contribution is twofold: financial and

IN IT TOGETHER

Transaid, an international development organization under the patronage of HRH The Princess Royal, identifies, champions, implements and shares local transport solutions that improve access to basic services for poor people in developing countries. Since 2010, our corporate partner Norbert Dentressangle has been supporting our Professional Driver Training Project initiative by sending technical experts to conduct fork lift truck training in Zambia and Tanzania, and since 2012, three graduates from

their Fast Track Talent Programme* spent six months each in Dar es Salaam, Tanzania working alongside our local team on increasing road safety standards in East Africa. The company is also an active member of the Driver Training Consortium, a forum that gives Transaid access to senior level expertise and strategic planning guidance from our main supporters.Our partnership allows Norbert Dentressangle to link corporate social responsibility with expertise and good industry practice. The synergy and high level of engagement this

generates impacts staff and the industry but also creates opportunities to better respond to key transport challenges in the developing world.”

* Fast Track Talent Programme - A two year programme developed by Norbert Dentressangle that consists of four six-month placements in different areas of the business.

operational, with graduate trainees spending a six month secondment in tanzania supporting local projects.

healthNorbert Dentressangle Solidarité supports the development of transplant

therapies and more speci fically research into organ donation. the fund provides backing for the Fondation Centaure which conducts kidney and pancreas transplant research projects. this partnership was renewed in 2014.

HRH The Princess Royal, patron of Transaid, on a visit to the Norbert Dentressangle depot in Corby (United Kingdom).

In December 2013, the Group co-founded the Norbert Dentressangle Solidarité endowment fund with the Dentressangle Initiatives holding company. The aim is to provide a meaningful and common framework for all the charitable initiatives embarked upon by the Group across the world. Its focus is on three main causes, closely linked to our business and dear to the heart of our founder Norbert Dentressangle.

eXpert VOICe Gary Forster, Transaid CEO

42 I 43


Supply Chain ExPERTS


E-COMMERCE: A BOOMING MARKET

eXpert VOICe Kevin richardson, Development Director, Logistics Division

placed to become the “partner of choice” for their customers’ global expansion in the e-commerce market.

* click and collect - ordering goods online and then collecting from store.

In 2013, the global e-commerce market was estimated at 951 billion euros. By 2017, it is expected to double, making e-commerce the fastest growing retail channel in the world. Consumption, globalization, ease of financial processing and a large untapped customer base point to an extremely competitive, consumer-driven market. Great opportunities exist for e-fulfilment players who can offer flexible, scalable and bespoke solutions.

today’s e-commerce market is divided almost equally between europe, the Americas and the rest of the world (RoW), a trend that is rapidly shifting east - by 2020 the RoW market is expected to overtake Western europe and the usA combined. With access to the Internet expanding, companies selling online are growing in number, constantly expanding their product ranges and meeting increasing challenging consumer driven service requirements.

multiple players in the e-commerce markettraditionally the market has been split into a number of segments: pure players, who operate exclusively online, multi-channel retailers with a bricks and mortar store and an online channel, and market place organi-zations where small companies leverage It capabilities of pure players to advertise and sell products. Consumer-to-consumer (C2C) tran-

sac tions are also on the rise, and more purchases are being made using mobile devices (m-commerce).

more than just a logistics operationRecent evolutions in e-commerce - click and collect*, multiple speed-of-delivery choice and effortless return processes - all reflect new consumer buying behaviors, including the increased demand for convenience. With worldwide orders arriving day and night, managing information is key. orders must be handled in real time, requiring an It system capable of handling large amounts of data and operations that can accommodate large fluctuations in activity especially during peak holidays (e.g. Chinese new Year, Christmas, etc.) and sales periods when volumes spike significantly, for example black Friday. Many of today’s major players are entrusting their complex logistics operations to suppliers with proven engineering and flexible operational capabilities and robust It systems.

red Online: a specialist offering Red online, norbert Dentressangle’s e-fulfilment product offering, reflects more than 10 years of e-commerce expertise and draws heavily on the group’s core capabilities of resource management and solutions design. With an annual turnover of €260 million and over 47 major e-fulfilment and returns customers, the company has become one of the largest outsource e-fulfilment logistics providers in europe and is perfectly

E-fulfilment demands much more of logistics suppliers today - orders come in higher volumes, with more pronounced peaks and with shorter lead times. This means our IT systems must be robust, and our receiving and dispatch teams must react instantly to any changes in the flow. With more than 10 years’ proven experience running fulfilment operations for clients in a range of sectors including fashion, electronics, homewares and luxury goods, our culture is closely aligned with many of the world’s large e-commerce players; we’re seen as fast moving, entrepreneurial and customer focused, a pre-requisite in today’s market.Our focus is very much on the end consumer and on certainty*.

It’s about recognizing the link between our client’s brand and consumer confidence - brand loyalty exists as long as our fulfilment and returns services meet or exceed consumer expectations. So we know we’ve got to get it right - all the time. In a market that’s experiencing phenomenal growth, our scale is key. As our customers grow, they can count on us to quickly scale up or to replicate our operations and share the solutions design and best practices that will meet their requirements today and their future needs.”

* Certainty - assuring the customer that if they order a product online, not only is it in stock, but they can have it delivered in perfect condition, where and when they choose, and with the possibility to return it quickly.

Norbert Dentressangle has built a team that fits very well with the Surfdome culture, but they’ve also brought us the operational discipline we needed as a fast growing, passionate team. We’re very happy with our choice.”

SurfdomeSource Talents #19 the magazine of Norbert Dentressangle.

Our supply chain partner provides solutions that are tailored to our specific needs, taking the customer and business requirement as a starting point, and then executing that exactly according to our specifications.” Liberty GlobalSource Talents #20 the magazine of Norbert Dentressangle.

CLIent teStImOnIaLS

Forecast:

x 2 between 2013 and 2017

€951e-commerce market in 2013

bILLION


eXpert VOICe Jean-Yves marianne, Aerospace Development Director, Air & Sea Division

demanding flexibility and exceptional responsiveness in support of the airline companies (see testimonial below).

the Supply Chain, a strategic asset in aerospacethis growing aerospace market is leading to a multiplication and acceleration of channels, creating new requirements and major supply chain opportunities.Manufacturers and equipment pro-ducers consider transport and

logistics expertise a major lever for growth. With its extensive experience and sector knowledge, norbert Dentressangle has all the attributes to establish itself as the partner of choice, capable of managing global supply Chain operations with innovative solutions.

AEROSPACE: A MARKET TAKING OFF

With the population growth, particularly in Asia and the Middle East, passenger air traffic is set to double every 15 years. Between now and 2033, aircraft manufacturers are going to have to deliver more than 36,700 new aircraft, inevitably followed by the subsequent huge after-sales market. So prospects for Supply Chain partners with the ability to support aerospace companies across the world are good.

a sector conquering new territoriesthe historical aerospace markets continue to be europe (Airbus) and the united states (boeing), together with Japan. In order to meet rapidly growing demand, however, manufacturing is extending into new global areas such as brazil (embraer), Canada (bombardier), Russia (sukhoi) and even China (Comac). us and european manufacturers are also basing their production outside the dollar and euro zones, in neighboring countries such as Mexico and Canada for the former and Morocco, tunisia and poland for the latter. Finally, the phenomenon of right-shoring* is resulting in many aerospace equipment manufacturers setting up in China, but also in India and brazil.

* Setting up in a country offering the best combination of cost and efficiency

the boom in aftersalesAlong with manufacturing, aftersales are experiencing strong growth, offering new challenges in terms of deadlines and routes to reach airports across the globe.

In order to lower aircraft operating costs, manufacturers and equipment producers are constantly seeking to reduce client stockholdings, by developing new approaches such as spares leasing. Maintenance and repair activities are proving to be more and more crucial because plane downtime is very costly (€30,000 per hour, or more). these Aog (Aircraft on ground)services are extremely challenging,

By combining knowledge with its ability to think outside the box, Norbert Dentressangle is ideally placed to respond to the development of the Aerospace sector and to support those involved with their new Supply Chain challenges. We design, implement and manage solutions on the continents of Europe, America and Asia by combining our expertise in Transport, Logistics and Air & Sea. Our continuous improvement approach, based on our engineering capability, means that we are constantly looking at making flows faster and more reliable. The sector recognizes our ability to meet demanding reliability challenges.

In aftersales, we provide an efficient answer to the challenges of AOG (Aircraft On Ground) where our responsiveness and operational experience make the difference. Being part of the ALN (Aviation Logistics Network) also guarantees our ability to extend this knowledge across the network.”

The Norbert Dentressangle team in the US clears 100% of our international freight to the United States through customs. Our partner always responds with speed and efficiency.”Ansett Aircraft Spares & ServicesSource Talents #18 the magazine of Norbert Dentressangle.

Our exports are subject to complex procedures. Norbert Dentressangle provides us with a quality service thanks, in particular, to a perfect knowledge of our products, our markets and our regulations.”

Airbus HelicoptersSource Talents #20 the magazine of Norbert Dentressangle.

CLIent teStImOnIaLS

€70spent on transport and logistics for the manufacture of new aircraft in 2014

bILLION

$7annual logistics spend

MILLION


FASHION: STRONG ONLINE GROWTH

Fast moving and ever changing, the global fashion and luxury goods sector continues to grow, driven by the rapid expansion of e-commerce. From prestigious fashion houses to high-street chains, customers need Supply Chain solutions to be a perfect fit.

Online apparel fuels growthIn 2016, the world clothing and textiles market is forecast to reach a value of €2,745 billion, posting growth of some 5% a year since 2011.

this vast and varied market has been transformed by the emergence of online shopping. Fashion was one of the early adopters of e-commerce and, thanks to dynamic pure players like Asos and increasing numbers of traditional brands adding online to their offer, annual growth of around 20% continues.

overall, the sector remains highly fragmented, with no company controlling more than 2% of the market. Asia continues to be the major sourcing and production region, although many brands are now sourcing closer to the market, in turkey, north Africa, southern europe or Mexico. In the luxury segment, 90% of garments and accessories are made in Italy.

Fashion must be fast and faultlessthe pace and seasonality of fashion also applies to the supply Chain. If a new collection is in stores late, it simply won’t sell and in e-commerce, with consumers paying up front, speed is even more essential. Items must be shipped from the production site fast, mainly by air or road. Warehouses must hold thousands of sKus with different sizes and colors for each model and ensure the right order is packed and delivered, whether in multiple cartons to stores or as individual packages for online consumers. It systems must be robust enough to absorb a massive increase in order numbers during seasonal peaks and pilot state-of-the-art automated processes. security and reliability are always a key concern, particularly for luxury goods. Also, given that e-consumers may change their mind, a smooth and reliable reverse logistics process has become crucial in the fashion industry.

Support from Supply Chain specialists is now a must-haveAcross the sector, more and more companies are turning to external providers for their supply Chain needs. Highly automated distribution centers require specialized expertise, as do complex export and customs requi-rements. With its extensive textile experience, robust business model and expertise across the supply chain, norbert Dentressangle ensures its solutions are a perfect fit, for customers from Xs to XXl and from little black dress to plain white tee.

Norbert Dentressangle teams move well over 900 million textile and luxury pieces a year, for customers as demanding as Gucci, Inditex and Marks & Spencer. And we are recognized for our in-depth knowledge of the sector, as well as for our technical expertise in the field, with 65% of our e-commerce business in fashion and textiles. As a global company, with the hub of our operations in Europe and flows to and from Asia and the Americas, we can combine the expertise of our Air & Sea, Logistics and Transport teams, offering end-to-end solutions. Along with the ability to design and implement cutting-edge IT logistics solutions, we have the financial robustness to invest in the warehouse automation customers need. We can bag, iron or repair clothing, or check every item in every carton. Luxury brands know that our customs experts will ensure their high-value garments travel seamlessly across borders, especially to Russia,

one of their main markets, while textile retailers can be sure our China operations comply fully with their codes of ethics and optimize shipping costs. Specialist retailers trust our drivers with the keys to their stores for secure out-of-hours delivery. Beyond technical excellence, Norbert Dentressangle has a strong service culture. We are committed to providing the right, made-to-measure solution for each customer’s needs in a sector where every company, just like their own consumers, is a different shape and size.”

+4 to 6%growth by year

€2,745textile market

bILLION

Norbert Dentressangle successfully manages three different flows in the same warehouse, handling 3,200 containers for the Spring-Summer and Fall-Winter collections. Initial seasonal orders are managed weekly, but certain priority restocking flows may need handling in 48h.”

Groupe CarrefourSource Talents #18 the magazine of Norbert Dentressangle.

Our challenge is to create a unique online brand experience and immerse our online shoppers into the world of luxury brands. Thanks to the high level of integration between brand content and e-commerce achieved with Norbert Dentressangle, we are able to go beyond the traditional limits of online shopping.”

The Level GroupSource Talents #19 the magazine of Norbert Dentressangle.

CLIent teStImOnIaLS eXpert VOICe ruprecht meyer zu riemsloh, Business Development Director, Logistics Division


partner of choice for perishablesnorbert Dentressangle has been very active in the perishable goods sector ever since the company sent their first truckload of apples from France to the uK more than 30 years ago. the sector is still an important part of its global business today. service developments include combined

logistics operations for multiple manufacturers and retailers to reduce handling and optimize the supply chain. Fully integrated solutions across the transport, logistics, and Air & sea Divisions make the company the partner of choice in a market that is likely to continue growing for several years to come.

PERISHABLE GOODS: AN EXPANDING GLOBAL MARKET

Today’s global food market is booming. The leading players in the sector have to provide fast, effective, temperature controlled supply chain services while always monitoring food safety and traceability. Smart solutions that reduce the handling of goods or consolidate logistics operations of several clients play an increasingly important part in meeting this challenge.

perishable goods encompass all foods with a limited quality and shelf life due to time or temperature (fresh products, fresh fruit and vegetables, frozen foods). With more than 4 trillion dollars in global revenue, this expanding market, which brings together numerous food manu-facturers and retailers, is expected to continue growing at nearly 4% annually. looking after perishable goods requires managing the entire supply chain, from harvest to the end-consumer, in temperature-controlled environments.product handling must be kept to a minimum in order to reduce a potential cold chain breach, requiring robust It systems, which track and trace both the product and the temperature, keeping a data history in case of product recall.

extensive infrastructure and expert teamsthe sector’s leading companies are looking for partners with an extensive logistics infrastructure and expert teams experienced in running temperature-controlled operations. given the increasing distances between production and consumers, logistics partners must also be capable of managing the airfreight as well as any associated customs procedures and sanitary inspections. In this market it’s vital that the time and distance between production, warehousing and final destination are kept as short as possible.

The fact that consumers around the world today are demanding a greater variety of higher quality food products is driving manufacturers, retailers and service providers to reduce time to market from production to consumer. And all of this while operating a fully controlled supply chain every step of the way.

Drawing on our years of experience in the sector, Norbert Dentressangle has the knowledge, capabilities and systems in place to deliver the exact solutions our clients require. For example, in order to reduce handling and optimize the supply chain, food quality and costs, we combine logistics activities for multiple customers wherever possible.

As our clients expand their activities in the sector, we help them grown on an increasingly global scale by providing them with all the logistics services they demand. These clients know they can count on us as a strategic partner. And thanks to our years of proven expertise in the sector, they are trusting us with more complex projects, the size and scale of which are creating larger business opportunities for Norbert Dentressangle.”

$4.2for global food market

trILLION

+4%annual growth

Our Air & Sea partner always provides us with solutions; we can call the team to ask them to transport 100,000 kg of blueberries urgently and they’ll do it! The people we liaise with always keep their word.”

California GiantSource Talents #21 the magazine of Norbert Dentressangle.

Norbert Dentressangle’s teams will give us greater flexibility by providing next day deliveries, in order to guarantee the best possible service for our agencies. Our partner is forging ahead with the expansion and updating of its warehouses.”

bofrostSource Talents #16 the magazine of Norbert Dentressangle.

CLIent teStImOnIaLS eXpert VOICe Wilfred Van Swam, Business Development Director, Logistics Division

$2.2for fresh products

trILLIONOF WHICH


tailor-made Supply Chain solutionsnew flows have resulted, in particular, from the coming on stream of production sites of european manufacturers in eastern europe. those involved in transport and logistics have thus been called upon to support the manufacturers in these new geographical areas, with solutions that continue to meet the demands of the market in terms of reliability, frequency and optimization of flows. Here, norbert Dentressangle

provides the expertise of its teams and its years of experience in the sector, guaranteeing the engineering, control and execution of supply Chain operations on an international scale. In this context, the group offers flexible logistics solutions allowing it to respond to variations in volumes, and customs engineering solutions ensuring the smoothness of international flows.

* ACEA: Association des Constructeurs Européens d’Automobiles (European Automobile Manufacturers Association).

AUTOMOTIVE: A RETURN TO GROWTH

The global automotive supply chain is dynamic and fast moving. Whilst new vehicle manufacturers suffered badly during the worldwide downturn, only returning to growth in 2014 after a tough 6 years,the aftermarket parts manufacturers had not experienced such difficulties, with consumers keeping and repairing their vehicles instead of buying new ones.

recovery of new vehicle manufacturing marketAfter grinding to a halt in 2008, the new vehicle manufacturing market finally returned to growth in 2014 with eu new car sales increasing by 5.7% (source: ACeA*). spain (+18%) and portugal (+35%) performed well, as did the united Kingdom (+9%) which rose to second place in the european market, behind germany and ahead of France. Conversely, 2014 was a difficult year (-20%) for the Russian market due to an unstable environment despite forecasts of high growth. globally, China is establishing itself as the leading market with still growing figures. In the united states the market also started improve following restructuring at the factories of general Motors and Ford in particular.

aftermarket parts manufacturers are seizing their opportunitiesDuring the economic uncertainty present since 2008, consumers have been putting off buying new vehicles, preferring to maintain and repair existing ones instead. this has benefited the aftermarket parts manufacturers. posting operating results of 7.5%, they have been able to position themselves in the growing markets of China, the united states, eastern europe, Mexico and south America.

Tires are very specific products and require a lot of handling. We need a partner who knows the product and is capable of dealing with fluctuations in orders and seasonal changes as business can vary by up to 200%.”

MichelinSource Talents #17 the magazine of Norbert Dentressangle.

+5.7%growth of the European vehicle manufacturing market

62.1Passenger cars manufactured in 2014 across Europe

MILLION

eXpert VOICe Fabien ruelleu, Automotive Key Account Manager, Transport Division

25 years of experience in the sector, a resilient European distribution network and a unique transport capability are our main strengths in this demanding market. Our engineering knowledge and the innovative character of our solutions, together with the flexibility of our organization, set us apart. Our clients consider us to be a crucial supply chain partner as we are able to support them in new territories by providing tailor-made, quality solutions. We have not hesitated to invest in Transport or Logistics infrastructures in Turkey, Morocco or also Russia, to meet their specific needs.

We experienced strong growth in this sector during 2014, up 12% compared to 2013. To maintain this momentum we are also developing dedicated solutions for the aftermarket parts manufacturers.Our solid foundations together with our new acquisitions in the US will also give us the opportunity to strengthen our partnerships with our European clients looking to conquer the US market. Finally, the combination of our expertise in Logistics, Transport and Air & Sea allows us to offer new services and to be in a position to meet our clients’ future challenges.”

CLIent teStImOnIaLS

We collaborate with Norbert Dentressangle in Chile as our clients are completely happy with the imports, management and costs. It is a virtuous circle with all the lights on green.”

CIDEFSource Talents #20 the magazine of Norbert Dentressangle.


CHEMICALS: AN EVOLVING MARKET

the company is also a member of euRteAM(3), an organization of leading european Freight Forwarding companies that offers clients one solution for their pan-european logistics requirements to and from worldwide destinations. With proven It and QHse systems in place, and with local expertise in

each country, the group’s transport, logistics and Air & sea teams are taking advantage of the expanding market to provide even better cross-divisional solutions to support their clients’ future growth in the chemical industry.

(1) ADR - European Agreement concerning the International Carriage of Dangerous Goods by Road.

(2) HAZMAT – Hazardous Materials and Items.(3) EURTEAM - The European alliance EURTEAM

includes five companies specializing in international transport and logistics of chemicals present in eight European countries.

(4) COMAH - Control of Major Accident Hazards Regulations.

(5) Seveso I/II - EU directive on the prevention of major accident hazards.

The multi-billion euro Chemical sector includes an extensive range of products such as petrochemicals, paints, coatings, plastics, fertilizers and consumer chemicals. The constant evolution of the market has prompted service providers to develop flexible solutions combining their technical know how with their expertise in international safety regulations.

Strong growth in the sector

In 2013, chemical sales were greater than 3,100 billion euros worldwide, with the Asian market accounting for nearly half of all global chemical sales. If this trend continues, Asia could reach 66% by the year 2030. the european union remains one of the world’s leading exporter of chemicals (€430bn), and boosted by its shale gas production, the us market in the sector is strong and growing.

Global supply chain needsthough not all chemical products are hazardous, many have flammable, corrosive or toxic properties, and must be handled in compliance with international and local safety and security regulations. Manufacturers are looking for supply chain partners with strong sector expertise who offer a complete range of services, including value added solutions, with extensive geographic coverage, and competitive pricing.

norbert Dentressangle’s high levels of expertiseFor more than 40 years norbert Dentressangle teams have been developing high levels of expertise of inventory management, strict health and safety compliance and managing customers’ worldwide transport and distribution. today the company is one of the largest service providers in europe, and now the usA through the acquisit ion of Jacobson Companies, one of the major actors in the sector, especially in the management of agricultural chemicals.

Specialist teams delivering global service today norbert Dentressangle’s transport teams ensure the safe delivery of customers’ dry and liquid chemical products thanks to their dedicated ADR distribution network in europe and ADR(1) and HAZMAt(2)

accredited drivers.

With more than 300,000m2 of warehousing facilities in europe and in the usA (fully compliant with CoMAH(4) seVeso(5) and HAZMAt storage regulations), the group also offers clients a wide range of value-added services (blending, drumming, mixing, bagging…).

In addition, norbert Dentressangle also specializes in handling clients’ chemical goods through their Air & sea offer by providing worldwide import/export services, state-of-the-art track and trace software and a global presence in all major world markets.

eXpert VOICe ann Dawson, Director of Bulk Transport Business Unit in the United Kingdom

When you analyze the market you quickly understand that the Chemical sector touches every aspect of our business, whether that be Logistics, Transport or Air & Sea. At Norbert Dentressangle we’ve been active in the sector for many years and have developed a strong reputation for our expertise and longevity. We’re known in the industry for our safe pair of hands and our health and safety record is exemplary. Our warehousing facilities and distribution networks across Europe are fully compliant with COMAH, SEVESO I and II, and ADR regulations, and as a member of EURTEAM, we specialize in the international transport and logistics of chemical products.Traditionally present throughout Europe, we’ve recently expanded our geographic reach to North America with the acquisition of Jacobson, a company known

for their expertise in handling the logistics and transport operations for some of the world’s largest manufacturers in the sector (BASF, DOW). As the fifth largest service provider in the US, our teams manage more than 3 million square feet of chemical warehousing space and offer solutions that include warehousing and distribution, manufacturing support, container and returns management, and import/export processing. Growth in the US sector, with 100 projects announced in the Gulf Coast alone, is expected to exceed $70b by 2020 and will certainly play an important role in the development of the Chemical sector for Norbert Dentressangle.”

Norbert Dentressangle is able to offer us a wide variety of services, including pallet deliveries, the transportation of complete batches or of powders in bulk, controlled temperatures, multimodal transport solutions, and much more besides. We are extremely happy with our transport partner, as it fully understands our requirements and shares our objectives.”

BASF, Spain and Portugal Source Talents #19 the magazine of Norbert Dentressangle.

Our products (cans of paint) are susceptible to damage and must be handled with care. Thanks to our partner’s experience, they pack and dispatch our products carefully, and with minimal damage.”

PPG Industries UKSource Talents #19 the magazine of Norbert Dentressangle.

CLIent teStImOnIaLS

56 I 57


Our FINANCIAL ROBUSTNESS, a major asset


model that it has applied for many years with an RoCe (Return on Capital employed) of 12% at the end of 2014 comparable to the previous years. now a global partner, the group continues to achieve results and generate free cash flow allowing it to pay down debt and finance future new acquisitions itself.

norbert Dentressangle has had a stock market listing for 20 years and has an exemplary record, reflecting the sustained perfor-mance of the Group and a good understanding of its strategic roadmap. Its share price has thus increased tenfold. since 2013 its dual listing on the paris and london stock markets has provided exposure to the community of investors at international level. An outstanding moment in 2014 was when the group entered compartment A and the sRD (Deferred settlement service - service à Règlement Différé) which strengthened its visibility to the market. the group is now attracting greater interest from financial analysts and investors. this is also the result of the very significant stock market recovery that has taken place over the last 18 months.

Further information on corporate governance can be found in the 2014 Registration Document available at norbert-dentressangle.com (see in particular chapter 4, sections 4.2 and 4.3 and 4.10).

Further information on the management report can be found in the 2014 Registration Document (see in particular chapter 2, sections 2.1 to 2.6).

Analysis by Patrick Bataillard, Group CFO

In 2014 norbert Dentressangle generated sales of €4,669 million, an increase of 15.8% and of +4.1% on a constant exchange rate and like-for-like. In this context the Group maintained an operating margin of 3.6%, the same as in 2013.In terms of operational profitability, the acquisition of the us company Jacobson in August 2014 had a strengthening effect: thanks to the four months of consolidated results after the acquisition, the operational profitability of the group rose to 3.6%. It is worth pointing out that this strategic acquisition cost $750 million, a sum which reflects the ambitions for the operation and the expected performance.

once again this year norbert Dentressangle has shown itself to be one of the top-performing companies

in its sector both in terms of growth in sales and operating margin. our transport activities, hampered by the sluggishness of the French market, continue to form the basis for solid growth by the group. It is worth noting that in 2014 logistics became the group’s top business Division with sales of €2,359 million, an increase of 20.9% (+5.7% on a like-for-like and exchange rate basis). launched just four years ago, the Air & sea business has achieved critical mass (in excess of €200 million). It is now profitable and able to finance its own development.

In 2014 the acquisition of Jacobson fundamentally transformed the Group balance sheet. the main impact has been that net financial debt has increased significantly compared with previous years from €456 million at the end of 2013 to €1.017 billion at the end of 2014. For the first time norbert Dentressangle is also showing a positive working capital requirement (WCR) of €40 million which is necessary for financing the organic growth of the activities resulting from Jacobson.

It is noteworthy that with each of the previous transforming acquisitions in 2007 (Christian salvesen) and 2011 (tDg), our group proved its ability to control its debt and to clear this quickly. With a leverage ratio today of 3.0x (pro-forma including 12 months’ incorporation of Jacobson), the group is able to demonstrate that this debt is under control. thus the group remains faithful to the financial

COMBINING GROWTH AND FINANCIAL PERFORMANCE

2013*2012* 2014

012345678

NET EARNINGS PER SHARE IN EUROS

7.28 7.20 7.75

010203040506070

GROUP'S SHARE OF NET EARNINGS IN MILLIONS OF EUROS

69.7 70.1 75.9

NET FINANCIAL DEBT AS A PERCENTAGE OF EQUITY CAPITAL

0

30

60

90

120

150

78 66

126

REVENUE IN MILLIONS OF EUROS 0

1000

2000

3000

4000

5000

4000 3,880 4,0324,669

EARNINGS BEFORE INTEREST, TAXES AND AMORTISATION (EBITA) IN MILLIONS OF EUROS

0

50

100

150

200

141.7 141.7167.9

+15.8% GrOWtH

3.6% EbItA MArGIN(INCLUDING 4 MONtHS OF jACObSON)

3.0 xLEVErAGE rAtIO

(After deduction of shares held directly by the Group and calculated based on the Group’s share of net consolidated earnings.)

*adjusted for the impact of application of accounting standard IAS 19R.


A FAMILY GROUP LISTED AT THE STOCK EXCHANGE

CapItaL

on 31 December 2014, norbert Dentressangle equity rose to 19,672,482 €, consisting of 9,836,241 shares with a nominal value of €2.

SItUatIOn aS at 31 DeCemBer 2014 Shares Quantity

Voting rights Quantity

Dentressangle Family 544,244 1,088,468Dentressangle Initiatives 6,063,132 12,108,532employees 53,610 82,220public 3,129,465 3,154,165shares held by norbert Dentressangle sA 38,578 0shares held as per liquidity contract 7,212 0ToTAl 9,836,241 16,433,385

StOCK eXChanGe InFOrmatIOn 2014 2013 2012

price on 31/12 in € 119.85 93.50 58.45

number of shares on 31/12(1) 9,836,241 9,836,241 9,836,241Market capitalisation in €m 1,178.87 919.6 574.9net income per share in €(2) 7.75 7.20 7.28net dividend in € 1.80(3) 1.60 1.50Distribution ratio in %(1) 22.3 22.5 19.7

The distribution ratio corresponds to the net dividend divided by the net income. (1) Including treasury shares. (2) After deduction of treasury shares and calculated based on the Group’s share of net consolidated earnings. (3) Proposed to the General Meeting of 21 May 2015.

80.30%

0.50%

19.20%Public

Employees

Dentressangle Initiatives(1) + Dentressangle Family

61.64%

31.82%

0.07%

0.55%0.39%

5.53%

Public

Dentressangle Initiatives(1)

Employees

Shares held by Norbert Dentressangle SA

Shares held as per liquidity contract

Dentressangle Family

80.30%

0.50%

19.20%Public

Employees

Dentressangle Initiatives(1) + Dentressangle Family

61.64%

31.82%

0.07%

0.55%0.39%

5.53%

Public

Dentressangle Initiatives(1)

Employees

Shares held by Norbert Dentressangle SA

Shares held as per liquidity contract

Dentressangle Family

DIStrIBUtIOn OF CapItaL DIStrIBUtIOn OF VOtInG rIGhtS

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aVeraGe CLOSInG prICe (in euros) 2013 – 2014

(1) Dentressangle Initiatives is 100% owned by the Dentressangle family.

www.norbert-dentressangle.com

Documents

Global Supply Chain top-tiernoRbeRt DentRessAngle 2014 Annual Report 08 I 09 A GLOBAL PARTNER 64,000 SEA FrEIGHt 9,650,000 m 3 tEMPErAtUrE-CONtrOLLED WArEHOUSING VOLUME (CHILLED AND