Sequana CSR Report 2014

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Sequana CSR Report 2014
ANNUAL REPORT
02/17
18/29
30/47
CONSOLIDATING
DISTRIBUTING
COMFORTING
20/21
Ramp-up of packaging and visual
communication business
22/23
Heading for the digital world
24/26
Priority to technical papers and solutions
27/29
Priority to innovation and added value
32/33
Group policy
34/39
Natural Resources
40/43
Human Resources
44/45
Eco-friendly products
46/47
Social responsibility
OUR FUNDAMENTALS
04/06
Interview with the Chairman and CEO
07/09
Corporate Governance
10/13
Results
14/15
Strategy
16/17
Stock exchange
AND PRODUCING PAPERS
AND SOLUTIONS FOR THE FUTURE
OUR COMMITMENTS
S
equana is a major player in the paper industry, boasting top-ranking
positions in B2B distribution with Antalis – No. 1 in Europe and
No. 2 worldwide – and a global leadership in the production of
creative and technical papers through Arjowiggins.
Antalis operates in four business segments where it enjoys solid market positions: printing
papers, office papers, packaging products and solutions, and visual communication materials.
Sequana generates over three fourths of its sales in the distribution business.
Arjowiggins is positioned in niche market segments with three divisions:
• Arjowiggins Creative Papers produces premium fine papers, papers for technical applications,
for secured documents, and for printed electronics applications.
• Arjowiggins Graphic manufactures recycled pulp and papers, specialty papers, along with
coated and uncoated papers.
• Arjowiggins Security produces banknote paper as well as security and access control solutions.
With over 9,600 employees in more than 45 countries, Sequana serves a business portfolio of
corporate customers and printers worldwide, and is committed to corporate responsibility.
Sequana delivered sales of €3.4 billion in 2014.
Sequana / 2014 Annual Report
01
CONSOLIDATING
OUR FUNDAMENTALS
02
Sequana / 2014 Annual Report
03
Interview with the Chairman and CEO
“Our 2014 performances are
encouraging considering the major
projects implemented in the Group.”
W
hat is your
view on the
Group’s
FY2014
performance?
For the first
time in four
years, both our sales and EBITDA
have registered growth despite a
printing paper market that remains
challenging. The growth of sales to
€3.4 billion was primarily driven by
additional sales from the Xerox
office paper distribution business,
as well as by the expansion
momentum in specialties,
packaging and visual
communication. Over the year, the
favourable downtrend of input
costs (paper pulp and energy in
particular), the reduced overheads
and enhanced product mix have
helped us grow our EBITDA up 5.6%
to €124 million. Our net income was
positive at €117 million thanks to the
favourable impact of the Group’s
financial restructuring plan.
This is an encouraging performance,
considering the major projects
implemented in the Group in 2014
in order to transform Arjowiggins’
operations and consolidate
Antalis’ position.
04
Tell us about the progress of the
Arjowiggins restructuring plan.
One year after announcing the
operational restructuring of
Arjowiggins’ printing and writing
paper operations, we are
perfectly aligned with our plans.
Last December, we definitively
exited the US coated paper
market with the sale of Appleton
Coated to Virtus Holding LLC,
founded by the company’s senior
managers. In France, a highly
structured process was followed
to search for potential buyers to
take over the Wizernes and
Charavines mills. Our efforts have
unfortunately been unsuccessful
for the time being and both sites
will cease their production by the
end of the first half-year.
This restructuring plan will have
a positive impact on the Group’s
accounts starting in the second
half-year 2015. Considering that
the restructuring of Arjowiggins
still remains to be finalised in 2015,
the Board of Directors has
decided that no dividend would be
paid for fiscal year 2014.
The financial performance of
Antalis has improved significantly
in 2014. Is this attributable to the
integration of the Xerox office
paper distribution business?
The acquisition of Xerox’s office
paper distribution business has
indeed contributed up to 4.5% to
the growth of Antalis’ sales. Its
integration was a full commercial
success, with profitability
exceeding our expectations, but
it was not the only driver of
improved sales. For many years
now, Antalis has been focusing
steadily on improving its customer
service level while reducing its
overhead costs in its traditional
businesses, thereby placing the
company in a more favourable
position to face the declining
printing paper market. This year,
nearly €40 million were invested
in restructuring expenses, in
particular to optimise the supply
chain. In Germany for instance,
we have outsourced freight
transport and streamlined the
number of distribution centres
from twelve down to only four.
Last but not least, the Packaging
and Visual Communication
businesses have been growing
steadily, now accounting for 18%
of Antalis’ sales and 32% of its
gross margin. These market
segments are expected to
continue growing significantly
over the coming years.
In distribution, the competitive
landscape is undergoing deep
changes. Is this an opportunity
for Antalis?
While unfortunate, the neardisappearance of Antalis’ main
competitor is a good illustration of
the situation of the printing paper
market in Europe. In this declining
sector with too many players, our
strict management, the quality of
our service level and inventory
control constitute decisive and
differentiating assets. Since April,
our business has been growing
significantly in some countries,
particularly in the UK and
Netherlands.
Why did you sell Arjo Wiggins
Ltda in Brazil? Is this a prelude to a
disposal of the banknote business
in Europe?
The main activity of Arjo Wiggins
Ltda is the manufacturing of
papers for banknotes, primarily for
the Brazilian market.
Consequently, it offered very little
synergy potential with our other
production operations. The sale of
this subsidiary to the Fedrigoni
Group, closed under satisfactory
financial conditions, will shore up
Arjowiggins’ financing capacity, in
particular to invest in the
construction of a deinked pulp unit
at the Bessé-sur-Braye mill. This
capital investment will help the
Graphic Division comfort its
positions in recycled papers
where it is the European market
leader. On the banknote paper
segment, we will continue to
operate our mills at Crèvecœur in
France and Apeldoorn in the
Netherlands whose business is
export-oriented.
Sequana / 2014 Annual Report
05
“We regain enough leeway to expand
in our strategic markets.”
You are also selling the Security
Solutions operations of
Arjowiggins although they are
positioned in buoyant market
segments. Why?
This deal is a tremendous
opportunity for our Group since it
fully releases Arjowiggins from its
debt. The Impala Group who, prior
to this transaction, had acquired
Arjowiggins’ full €125 million debt,
will acquire 85% of Arjo Systems
and Arjowiggins Solutions in
compensation for a €110 million
debt write-off and cash
repayment of the remaining
€15 million balance by
Arjowiggins. Thanks to this deal
which values the Security
Solutions businesses at
€130 million, we will thus regain
enough leeway to contemplate
new forms of financing, along
with expansion plans in our
strategic markets, particularly
in recycled papers and in
distribution on the packaging and
visual communication segments.
As for Arjo Systems and
Arjowiggins Solutions, now
backed by a group with
06
substantial resources to support
their growth, they will be able to
pursue their momentum of
expansion and value creation.
We will keep a share in the growth
of these companies via our
15% minority stake.
The Group’s capital ownership
structure is changing. What will
be the impact for Sequana?
If approved by the Shareholders
Annual General Meeting, the
amended maturity dates and
redemption terms of the equityredeemable ORA and ORNANE
notes will enable the Impala
Group to become one of
Sequana’s reference
shareholders, while the related
share capital dilution will be
reduced from over 30% down to
20% for the benefit of current
shareholders. This equity
investment by Impala in
Sequana’s share capital, and its
subsequent appointment to the
Board of Directors, represented
by the renowned French investor
Jacques Veyrat, are a clear
acknowledgement of the validity
of our business strategy and
growth potential.
What is your medium-term
outlook on the Group, considering
the change in Arjowiggins’
scope?
On completion of these ongoing
operations, Sequana will earn
over three-fourths of its sales in
the distribution business where
our strategy consists in continuing
to contribute to the market
consolidation in our traditional
activities, while actively pursuing
our policy of targeted acquisitions
in Packaging and Visual
Communication. In the production
sector, Arjowiggins will refocus
on specialties in niche markets
where it enjoys solid leading
positions. With a streamlined
scope and profitable business
activities, Arjowiggins has all the
assets in hand to consolidate its
market positions and win new
contracts, thanks in particular to
its innovation expertise.
The commitment of all Group
employees has proved decisive to
carry out successfully the major
restructuring processes
implemented in 2014. I wish to
take this opportunity to thank them
all very warmly. I have full
confidence in their ability to
continue to support the Group’s
expansion and to create value for
all of our stakeholders.
Corporate Governance
Executive Committee
Pascal Lebard
52 years old,
Chairman & Chief Executive
Officer of Sequana,
Chairman of Antalis
and Arjowiggins
Hervé Poncin
51 years old,
Senior Executive VicePresident of Sequana,
Chief Operating Officer
of Antalis
Xavier
Roy-Contancin
Antoine Courteault Guy Léonard
58 years old,
Corporate Secretary
56 years old,
Group Chief Financial Officer
62 years old,
Group Human Resources
Director and Chief
Operating Officer
of Arjowiggins
Sequana / 2014 Annual Report
07
Corporate Governance
Sequana’s Board of Directors comprises six independent directors out of its nine
members. Its membership complies with the recommendations of the AFEP-MEDEF
corporate governance code both in terms of directors’ independence and of gender
equality, with one third female directors.
The Board met on 14 occasions in 2014, with directors’ attendance rate at 84%. Meetings focused mainly on the Group’s
financial and operational restructuring processes and its day-to-day business operations.
Board of Directors
1 - Pascal Lebard
1
2
3
4
5
6
7
8
9
10
52 years old,
Chairman & Chief Executive
Officer, Chairman of Antalis
and Arjowiggins
2 - Jean-Pascal
Beaufret
64 years old,
Vice-Chairman,
independent director,
partner and member
of the Management
Committee of Portalis
AM, and member of the
Investment Committee
of Aurinvest Capital 3
08
3 - Luc Argand
6 - Jean-Yves
4 - Christine Bénard
72 years old,
independent director,
Chairman & Chief
Executive Officer of Société
Immobilière du Palais des
Congrès (SIPAC)
67 years old,
independent director,
Partner at the law firm
Pfyffer & Associés
(Switzerland)
47 years old,
independent director,
Managing Partner of G-G+
5 - Odile Desforges
65 years old
Durance
7 - Marie Lloberes
57 years old,
independent director,
Executive General Manager
of the Services Branch
at La Poste
8 - Michel Taittinger 10 - Éric Lefebvre
71 years old,
independent director
9 - Bpifrance Participations
represented by
Bertrand Finet,
49 years old, Executive
Manager of SME Equity
Investment at Bpifrance
Investissement
47 years old,
non-voting observer,
Head of Investment at
Bpifrance Participations
Board Committees
T
he Board’s Committees
act within their
respective remit as
defined by the Board of
Directors. While they
proactively prepare the
Board’s work and draft proposals,
they have no decision-making
power. The committees report on
a regular basis to the Board who
takes decisions that are then
reported to the shareholders by
the Board Chairman.
Nominations
and Compensation
Committee chaired
by Jean-Yves Durance
It comprises three members,
including two independent
directors. Its prerogatives cover
the compensation paid to
corporate officers and key
executives, and the Group’s policy
on stock-options and free-share
awards.
It also reviews matters relating
to the membership, organisation
and operation of the Board and
its committees.
The Nominations and
Compensation Committee met
three times in 2014, with an
attendance rate of 89%.
Audit Committee chaired
by Jean-Pascal Beaufret
Strategy Committee chaired
by Luc Argand
It comprises three members,
all independent directors.
It focuses on five areas:
verification of accounting
principles; approval of half-yearly
and annual corporate and
consolidated financial statements;
internal control; review of the
Group’s financial position and any
risks to which it may be exposed;
and the status of Statutory
Auditors (appointment,
independence).
It comprises four members, two of
whom are independent directors.
It makes proposals to the Board
on the Group’s key strategic
orientations, and reviews
investment opportunities.
The Audit Committee met four
times in 2014, with an attendance
rate of 67%.
The Strategy Committee did not
meet in 2014 as it was decided
that, during the time of the Group’s
transformation plan, all debates
on strategic issues would be held
in plenary sessions of the Board
of Directors.
Sequana / 2014 Annual Report
09
2014 Results
RESILIENT
RESULTS DURING
A PERIOD OF TRANSFORMATION
Sequana’s performance has shown good resilience in FY2014 during a period
highlighted by the implementation of Arjowiggins’ transformation plan and the
consolidation of Antalis’ position in a still challenging printing paper market.
SEQUANA GROUP
Consolidated sales were up 1.6% year-onyear to €3,369 million at constant exchange
rates (up 1.3% on a reported basis).
This included 3.4% growth linked to the
full-year consolidation of Xerox’s office
paper distribution business (approximately
€195 million).
The resilience of Arjowiggins’ specialty
businesses and sustained growth in Antalis’
Visual Communication and Packaging
businesses partially offset the decline
in printing and writing paper volumes.
EBITDA reached €124 million, accounting
for an EBITDA margin of 3.7% (up 0.2 points).
Sequana benefitted from lower input costs
(mainly pulp and energy), a positive impact
from lower overheads, and an enhanced
product mix.
Recurring operating income totalled
€72 million. This year-on-year improvement is
mainly attributable to the lower depreciation
expense recognised by Arjowiggins
(€11 million) following the impairment losses
booked in 2013, but also to productivity gains
made over the period in both distribution and
production.
Condensed analytical income statement
In € million (except for EPS data)
Sales
EBITDA**
EBITDA margin (as% of sales)*
Recurring operating income
Operating margin (as% of sales)*
Net income attributable to owners
Diluted earnings per share (€)
Average number of shares after dilution
Net income attributable to owners was
€117 million for the year.
Net debt
(in € million)
2014
3,369
124
3.7%
72
2013
3,326
117
3.5 %
49***
% change(*) 14/13
+1.3%
+5.6%
+0.2 points
538 537
311
+47.6%
2.1%
1.5 %
+0.6 points
117
1.72
67,579,672
(301)
(9.76)
30,829,134
NA
(*) Percentage and margin changes are based on figures rounded out to one decimal place.
(**) EBITDA: recurring operating income before depreciation and amortisation and excluding movements in operating provisions.
(***) Includes a €12 million gain on changes to pension plans.
10
Operating income takes into account other
operating income and expenses amounting
to €119 million. These mainly comprise
non-recurring items: a net gain of almost
€260 million arising from the Group’s financial
restructuring plan and €107 million in net
restructuring expenses (of which €68 million
relating to Arjowiggins and €37 million to
Antalis).
2012 2013 2014
The decrease of €226 million between
31 December 2013 and 31 December 2014
reflects the positive impact
of the Group’s financial restructuring plan.
Sales by segment
46%
11%
Antalis Printing Papers
Arjowiggins Graphic
4%
Recent events
In late April 2015, Sequana crossed a decisive step in its ongoing
transformation process with plans for asset disposals that will enable
Arjowiggins to fully pay off its debt and shore up its financing capacity.
Arjowiggins
Creative Papers
8%
The following disposals should be finalised over the next few months:
Arjowiggins Security
14%
17%
Antalis Visual Communication
& Packaging
Antalis Office Papers
Sales by region
22%
1%
USA
The Impala Group who has acquired Arjowiggins’ €125 million
syndicated loan, will buy 85% of the Security Solutions businesses
in compensation for a €110 million debt write-off and cash repayment
of the remaining balance by Arjowiggins.
UK
48%
13%
Europe
(excl. France & UK)
France
• Sale of Arjo Wiggins Ltda to the Fedrigoni Group for an enterprise
value of €85 million. The main activity of this Arjowiggins subsidiary is
paper manufacturing for banknotes and secure documents in Brazil,
with sales reaching approximately €70 million in 2014.
• Sale of 85% of Arjo Systems and Arjowiggins Solutions to the Impala
Group. These subsidiaries operate respectively in proof-of-identity
solutions (e-passport, ID cards, driving licenses, etc.) and in access
control solutions (public transit, event ticketing, etc.). In 2014, the two
businesses earned approximately €54 million in sales and €7 million
in EBITDA.
Concurrently with the acquisition of Arjowiggins’ debt, the ORNANE
notes were transferred over to the Impala Group. If approved by the
Shareholders Annual General Meeting in June 2015, the amended
maturity date and redemption terms of ORNANE notes would enable
Impala to become one of Sequana’s main long-term shareholders.
16%
Rest of World
Average headcount by geographic area
33%
Europe
(excl. France & UK)
18%
Rest of World
1%
USA
17%
UK
31%
France
Sequana / 2014 Annual Report
11
2014 Results
ANTALIS
Sales by business
60%
22%
Print
Office
6%
The 2.2% sales growth reflects primarily the scope effect related to the
acquisition of the Xerox office paper distribution business in Western
Europe contributing 4.5% to sales growth (approximately €195 million).
It also reflects the sustained expansion of the Packaging and Visual
Communication businesses, up 6% and 7% respectively.
Visual Communication
12%
Packaging
Sales by region
Key figures 2014
41%
In € million
Western Europe
(excl. France & UK)
12%
Eastern Europe
9%
Rest of World
25%
13%
UK
France
Sales
EBITDA
EBITDA margin (as % of sales)
Recurring operating income
2014
2,585
80
2013
2,528
70
55
44(1)
3.1%
2.8%
Operating margin (as % of sales)
2.1%
1.7%
Capital employed at 31 December
Recuring operating income/
Capital employed (ROCE)
Net debt at 31 December
479
476
11.5%
9.2%
250
199
(1) Including gains of €5 million linked to changes in pension plans
EBITDA by region
73%
Western Europe
14%
Rest of World
13%
Eastern Europe
12
EBITDA was up 14.6% thanks to the enhanced product mix, the positive
impact of consolidation of the Xerox office paper distribution business
and to reduced overheads after restructuring, particularly across the
supply chain, offsetting the negative impact of lower volumes in printing
and writing papers.
ARJOWIGGINS
Sales by Division
38%
24%
Green
Creative Papers
49%
Graphic
34%
Sales were down 1.8% in 2014, reflecting the continued volume drop in
standard coated and fine papers. Conversely, the specialty businesses
showed good resilience (in particular transfer and tissue papers and
bookbinding).
The brisk expansion of access control solutions has offset the decline
in banknote paper volumes in Brazil linked to destocking by the National
Mint and the Central Bank in 2014.
Specialties
27%
Security
28%
Coated
Sales by region
20%
Key figures 2014
12%
Asia
Rest of World
5%
USA
16%
France
34%
13%
Europe
(excl. France & UK)
UK
In € million
Sales
EBITDA
EBITDA margin (as % of sales)
Recurring operating income
2014
1,020
54
2013
1,039
56
28
15(1)
5.3%
5.4%
Operating margin (as % of sales)
2.7%
1.5%
Capital employed at 31 December
Recuring operating income/
Capital employed (ROCE)
Net debt at 31 December
248
235
11.3%
6.6%
67
325
(1) Including gains of €7 million linked to changes in pension plans
EBITDA by Division
17%
Graphic
EBITDA was down 3.9%. In FY2014, Arjowiggins benefitted from the
positive effect of lower input costs (pulp, energy, chemicals) and from
an enhanced product mix, which almost fully offset the lower volumes
of printing papers and banknote paper in Brazil.
44%
Security
39%
Creative Papers
Sequana / 2014 Annual Report
13
Strategy
4 KEY
STRATEGIC
ORIENTATIONS
Sequana has been gradually refocusing its business activities on distribution where
it is the European leader with Antalis, and reorienting Arjowiggins on specialty
markets where it enjoys top-ranking positions.
Refocusing the Group on the most
dynamic and profitable market segments
T
he printing paper market is
undergoing deep changes due to
the growing use of Internet and
electronic media. Since 2008,
volumes have fallen around 8%
per annum in Europe. In such an
environment, Sequana has implemented
substantial restructuring and cost-cutting
measures. Confronted however with the
ongoing deterioration of market conditions in
2013 and the expected downtrends over the
coming years, Sequana has speeded up the
pace of its strategic plan.
14
In an effort to counteract this fundamental
trend, Sequana has been expanding for
several years in more profitable and promising
market segments: packaging and visual
communication in the distribution business,
recycled and specialty papers in the
production sector.
Refocusing Arjowiggins on specialty
papers
Stepping up the pace of expansion
of Antalis in “non-paper” businesses
Faced with a renewed deterioration of the
printing paper market in 2013, Sequana
decided to reduce significantly the Group’s
exposure to this segment. Appleton Coated
was sold in late 2014, thus enabling the Group
to exit definitively the US coated paper market.
In addition, a disposal/closure plan was
initiated in April 2014 for the Wizernes mill in
France, in order to refocus the Graphic division
on recycled and specialty papers. On
completion of the operational restructuring
process planned in 2015, standard coated
paper will account for approximately 5% of
total Arjowiggins sales.
As the leading distributor of printing and office
paper in Europe, Antalis also has an extensive
footprint in the packaging and visual
communication segments which enjoy a
higher growth rate than the paper market.
In order to diversify in these markets where
it already holds solid positions, the Group
has been pursuing a policy of well-targeted
acquisitions that has steadily contributed to
growing its gross margin. As of 2014, Antalis
now enjoys enhanced financial headroom
to continue this acquisition policy.
On the standard coated paper market,
Arjowiggins has suffered chronic losses due to
high raw material prices, primarily for paper
pulp, and to downward pressure on selling
prices linked to overcapacities on the market.
Contributing to
the consolidation
of the paper
industry
Improving
efficiency
and operational
performance
Continued
priority to
innovation and
customer service
As a general rule, some market consolidation
is imperative in a declining sector such as
printing and writing papers, among others
because it helps preserve a critical size effect
and develop synergies, particularly in terms of
costs. Sequana thus ambitions to comfort the
leadership of Antalis in Europe, and the recent
acquisition of Xerox’s office paper distribution
business in Western Europe in late 2013
highlights this strategy. Strengthening the
Group’s base in Europe where paper
distribution remains its core business is
essential to continue its expansion in highgrowth countries and market segments.
In the future, Antalis will continue to seize any
opportunities and contribute to the necessary
consolidation of this market sector.
Enhancing operational efficiency in each of
its businesses is crucial for the Group.
Accordingly, Antalis is focusing on the
optimisation of its sales organisation and
logistics network, while retaining a premium
service level.
Sequana regards customer service as a key
success factor of value creation.
In distribution, Antalis places customer care
excellence at the core of its sales organisation.
Following the completed roll-out of the RACE
2012 business model transformation plan, the
Group has launched the DNA (Deliver the New
Antalis) initiative intended to capitalize on
previously identified drivers of operational
efficiency.
Sequana also intends to bolster the activities
of Arjowiggins in the recycled paper market
where the Group is already a European leader,
and in other business sectors where it enjoys
top-ranking market positions. In line with this
strategy, plans are under consideration to build
a deinked pulp unit at the Bessé-sur-Braye mill
(France) in order to comfort the Graphic
Division’s leadership in the recycled paper
market.
Arjowiggins continuously adapts its production
capacities to match the changing demand.
In April 2014, the Creative Papers division
initiated an operational restructuring plan
designed to consolidate its fine paper
production in a limited number of mills, and
optimise its tracing paper production facilities.
This plan is supported by a shift in the division’s
business model, in particular with simplified
product ranges, intended to boost its
competitiveness and profitability.
Lastly, Sequana is leveraging the full potential
of its businesses by shoring up the commercial
links between Antalis and the Graphic
and Creative Papers divisions.
Arjowiggins focuses on innovation, backed by
its R&D departments in each division.
Developments of new products, research on
new product applications, enhanced product
quality and reliability all contribute to the
continuous improvement of customer relations.
The launch of PowerCoat® by the Creative
Papers division is a perfect example of this
approach. PowerCoat® is a substrate for
printed electronics that opens up a whole new
scope of opportunities, as a powerful
communication vector in the packaging
and advertising sectors among others.
Sequana / 2014 Annual Report
15
Stock exchange
SEQUANA
ON THE STOCK
EXCHANGE
Fiscal year 2014 was highlighted by a capital increase and an issue of ORA and
ORNANE equity-redeemable bonds. Both transactions took place in the context
of the Group’s financial and operational restructuring plan intended to refinance
the debt of Arjowiggins, fund its transformation plan, and provide Antalis with
the necessary resources to pursue its acquisition growth strategy.
Rights issue
The shareholding structure has changed
significantly since the capital increase, notably
as Exor SA and the Allianz Group have reduced
their share-ownership.
Prior to its launch, the Shareholders’ General
Meeting had voted on 25 June 2014 to authorize
a share capital reduction via a decrease of the
share par value from €9 down to €1. The capital
reduction amount was incorporated to the
retained loss for fiscal year 2013.
Issue of ORA and ORNANE bonds
Sequana carried out a capital increase with
preferential subscription rights, under a rights
offer opened from 1 to 15 July 2014.
The €63.8 million gross initial issue was
increased to €66.3 million after partial exercise
of the extension clause.
Three of Sequana’s main shareholders at that
time – Bpifrance Participations, Exor SA and
the Allianz Group – fully exercised their
preferential subscription rights prorata to their
equity holdings (“à titre irréductible”), i.e.
€30,415,563 representing 11,927,672 new
shares.
On completion of the rights issue which
resulted in the creation of 26,019,500 new
shares, Bpifrance Participations, Exor SA, the
Allianz Group and Pascal Lebard respectively
held 19.68%, 17.03%, 10.01%, 6.54% and 0.25%
of Sequana’s share capital.
16
In the context of the Group’s financial and
operational restructuring, Sequana had issued
bonds in late July 2014 as follows:
• 7,000 ORA notes redeemable in Sequana
shares, each at a par value of €1,000, with a
maturity date at 31 December 2018,
• 125,000 ORNANE notes redeemable in cash
or in new and/or existing Sequana shares,
each at a par value of €1,000, with a maturity
date at 31 December 2020.
The ORA and ORNANE notes were subscribed
at par by the lenders of Sequana and
Arjowiggins respectively in a debt-for-equity
swap.
A proposal to prepone the maturity date of ORA
and ORNANE notes and to amend their
redemption rates will be submitted for approval
to the next Shareholders General Meeting in
June 2015. If approved, this operation would
enable the Impala Group, as full owner of the
ORNANE notes, to acquire an equity stake in
Sequana’s capital and to become one of its
main long-term shareholders, while the share
capital dilution would be reduced from over
30% down to 20% for the benefit of current
shareholders.
Effects of changes to be submitted for approval to the shareholders
Number
of shares
Pre-transformation
in % of
post-redemption
capital
Share capital at 30 July 2014
51,060,304
66.50%
ORA
1,979,040
2.58%
3.88%
1,086,377
1.67%
2.13%
ORNANE
23,748,750
30.93%
46.51%
13,036,670
20.00%
25.53%
Post-redemption capital
76,788,094
100%
50.39%
65,183,351
100%
27.66%
in % of
issued
capital
Number
of shares
Post-transformation
in % of
post-redemption
capital
51,060,304
78.33%
in % of
issued
capital
Voting rights
Each Sequana share entitles its holder to a voting right. Since 26 June
2014, each share registered under the name of the same shareholder
for at least two years is entitled to a double voting right.
Shares consolidation
On 15 November 2012, Sequana carried out a reverse stock split
based on the exchange of six old Sequana shares with a par value
of €1.50 each for one new Sequana share with a par value of €9.
This consolidation operation lasted two years and ended on
14 November 2014. The share capital now comprises one single
category of shares (ISIN code FR0011352590).
Shareholding structure at 30 April 2015
Voting rights at 30 April 2015
0.19%
Treasury shares
8.64%
8.06%
Allianz Group
Allianz Group
68.79%
3.28%
67.50%
4.78%
Free float
DLMD (incl. Pascal Lebard)
Free float
DLMD (incl. Pascal Lebard)
19.68%
19.08%
Bpifrance Participations
Bpifrance Participations
Share performance from 1 January 2014 to 30 April 2015
Total number of shares traded per month
In €
8
35,000,000
7
30,000,000
6
25,000,000
5
20,000,000
4
15,000,000
3
(Source Euronext Paris)
Monthly trading volumes
CAC Small® (adjusted)
At 31 December
April
March
Feb.
Jan. 2015
Sequana
Key share data over 3 years
Number of shares at 31 December
Dividend (in €)
Share price (in €)(2)
Highest
(01/01 to 14/11)
(15/11 to 31/12)
Lowest
(01/01 to 14/11)
(15/11 to 31/12)
Closing price
Market capitalisation (in € millions)
Dec.
Nov.
Oct.
Sept.
Aug.
July
June
0
May
0
April
5,000,000
March
1
Feb.
10,000,000
Jan. 2014
2
FINANCIAL CALENDAR
• 29 July 2015: First half-year 2015 Results
• 22 October 2015: Q3 2015 Sales
2014
51,060,304
-(1)
2013
25,011,221
-
2012
25,009,372
-
7.75
9.63
2.10
5.13
2.64
5.70
1.12
5.97
8.24
135
143
206
6.70
10.75
(1) Decision subject to approval by the Shareholders General Meeting of June 2015.
(2) O
n 15 November 2012, Sequana carried out a reverse stock split based on the exchange of one new Sequana share with a par value
of €9 for six old Sequana shares with a par value of €1.50, leading to a similar adjustment in the quoted share price.
STOCK MARKET DATA
Listed on Eurolist at Euronext Paris (Segment C)
Indices: CAC Small® and CAC Mid & Small® Eligible for the “Long Only” Deferred
Settlement Service (SRD Long)
Ticker symbol: SEQ
ISIN Code: FR0011352590
Par value per share: 1 euro
CONTACTS
Sequana – Shareholders Relations
8, rue de Seine – 92100 Boulogne-Billancourt, France
Tel.: +33 1 58 04 22 80
E-mail : [email protected]
ADMINISTRATION OF SHARE ACCOUNTS
BNP Paribas Securities Services
Shareholders Relations
9, rue du Débarcadère – 93500 Pantin, France
Tel.: +33 826 109 119
Sequana / 2014 Annual Report
17
DISTRIBUTING
AND PRODUCING
PAPERS AND
SOLUTIONS FOR
THE FUTURE
18
Sequana / 2014 Annual Report
19
RAMP-UP OF PACKAGING
AND VISUAL COMMUNICATION
BUSINESS
3 questions to
Tassilo Steinbach, Antalis Packaging Business Development Director, and
François Lainé, Print & Visual Communication Marketing Director
sales accounting for 6% of our total
revenue.
What exactly is involved in the
distribution of packaging
products and visual
communication materials?
TS: We are positioned on the
market segment of tertiary
packaging, i.e. products and
solutions designed for the
protection of merchandises during
their transport and storage. We
supply standard products, such as
bubble wrap, strapping and
packing machines, or customized
logistical and technical solutions, in
particular for export shipping and
anti-corrosion protection of
industrial goods, to a clientele of
large industrial groups, small
businesses and printers.
FL: The universe of visual
communication encompasses all
materials required by graphic art
specialists to produce their
promotional and advertising
campaigns, from signage and
posters to indoor and outdoor
decoration for trade fairs, for
instance.
What is the scope of these
business activities?
TS: Ten years ago, the Packaging
activity was quite modest. The
packaging distribution business
started to soar along with the
acquisition-based growth policy
initiated by the Group in Europe,
and more recently in Latin America
where an acquisition in Chile has
provided us with a solid base to
expand in this region of the world.
We also leveraged our clientele
portfolio by cross-selling packaging
products to businesses who were
already our customers in the Print
and Office sector. Today, we have
become the second largest
supplier in Europe, with sales
of 298 million euros, i.e. 12% of
the Group’s consolidated sales.
FL: And don’t forget that Antalis is
one of the leaders on the European
market of signage and POS
advertising, with steadily growing
What are your assets on these
markets?
TS: Our pan-European footprint is a
key asset to help our international
customers find the same products
and services everywhere they
operate on the continent. We also
add real value for our customers, in
terms of products, services and
customized solutions. One of our
key strengths is our ability to help
our customers optimize their entire
packaging and logistical process
chain in order to reduce their costs
and shorten their delivery leadtimes while retaining high quality.
FL: The ongoing expansion of our
product lines is a major asset for us.
For instance, in response to a
growing number of printers
interested in digital printing for
outdoor signs, banners or posters,
we designed Coala, the first
European comprehensive line of
visual communication materials
for large printing formats. And we
recently extended it further with
an indoor decoration line.
Our goal is to always stay one step
ahead of everyone else!
“By expanding our offer and designing
customized solutions, we are able
to keep always one step ahead.”
20
NEWS
Antalis
Bespoke
packaging
In response to the
sub-contracting
requirements of a
German automobile
manufacturer, Antalis has
developed an innovative
packaging solution to
store drive shafts, with
a dual purpose: reuse
the steel box pallets
incorporating an
anti-corrosion protection,
and ensure optimum use
of containers to reduce
shipping and storage
costs. To this purpose,
Antalis designed special
frame compartments and
intermediate propylene
plates customised to fit
the product without any
waste of space.
This eco-friendly solution
made of 70% recycled
materials provides
protection against
corrosion and moisture.
It is also cost-efficient
as it allows both for flat
storage and shipping
of the components, and
shortened delivery
lead-times.
Antalis
COALA.
GREAT
SELECTION
FOR GREAT
IDEAS.
WALL DESIGN
Antalis
60 new products added
to the Coala range
easily removed thanks to
Constantly on the lookout for trend
low-cost solutions requiring
insights and customers’
no professional installers.
expectations, Antalis has further
• Digitally-printed wallpapers that
enriched its Coala range of
can be used to decorate a shop,
materials for visual communication
a reception lobby, a hotel room
with the launch of 60 new products
or a home; you create your
in three categories:
own design, choose the paper
• Laminates: a range of adhesive
texture among a selection
vinyls designed to protect and
embellish printed pictures applied of 20 references, and apply
it to the wall.
indoors or outdoors.
• Easy Apply: a selection of media
that can be printed, applied and
18%
Antalis generates 18%
of its sales in the Packaging
and Visual Communication
businesses.
Portable visual
communication
accessories
Leveraging the success of Coala, its European range
of flexible signage and display solutions, Antalis has
launched a complementary range of portable
accessories designed for trade fairs or retail outlets.
Coala Systems offers in particular portable display
systems like roll-up banners, counter-top displays and
foldable brochure holders. Initially launched in
European markets, this offering has proved immediately
successful with customers for whom Antalis has
become a single contact point for a comprehensive
range of display and communication products and
accessories.
ZOOM
A comprehensive
packaging
solution for
a variety of
products
On behalf of a global
manufacturer of hydraulic
systems and components,
Antalis has designed a
comprehensive packaging
solution for different
products of various size
and weight. The products
are placed on a corrugated
board tray, possibly
reinforced with wood,
and foil-wrapped
automatically. In line with
the customer’s goal, the
task of the dispatch staff is
made largely easier, and
the manufacturer’s brand
image was upgraded to
match the premium quality
products thanks to this
standardised solution.
“Packaging and Visual Communication
account for more than one third
of Antalis’s gross margin.”
Antalis
A machine for “smart”
packaging and shipping
A growing number of small
businesses are now selling their
products via online e-platforms
like Ebay. The ePacker machine
was designed specifically for
Antalis to provide them with a
simple, easy-to-install and
easy-to-use packing solution.
This small air-cushioned
machine can replace loose fill
bags of high volume, while still
protecting the merchandise
during shipment, and helps
reduce negative ratings given to
the shipper by on-line buyers. In
order to market this machine,
Antalis initiated an innovative
online marketing campaign with
banners posted on Ebay,
Facebook and a YouTube video.
Piggybacking on the success of
the campaign, Antalis will
reiterate this marketing initiative
in 2015.
Sequana / 2014 Annual Report
21
HEADING FOR
THE DIGITAL WORLD
3 questions to
Xavier Jouvet, Group Marketing & Purchasing Director, Antalis
Last but not least, while our
customers benefit directly from the
expertise and advice shared by our
digital print market specialists, they
can also access extensive
information with a simple multicriteria search on our e-commerce
web site.
The digital print market is first and
foremost a market of high-tech
innovations. How can Antalis add
value for its customers?
Antalis is currently perceived as the
specialist in digital printing, both for
our product range, one of the most
comprehensive on the market, and
for our value-added services. In order
to help our customers negotiate the
digital shift, we have developed our
“d2b” (digital-to-business)
programme, to participate in an
ecosystem of stakeholders focussed
on digital printing. In the context of the
d2b programme, we organise regular
meetings in Europe in partnership
with major manufacturers of digital
printing presses (HP, Xerox, KonicaMinolta, Ricoh…) and finishing
What are the special features of
the digital print market?
This market is growing very fast and
should more than double in size by
2024. Digital printing enables small
volumes to be printed cost-efficiently
and with faster turnaround thanks to
shorter production times. Recent
progress achievements are also
reflected in the steady improvement
of the printing quality and the
emergence of new uses, in particular
for customisation. While digital
printing initially became popular for
photo albums, it has now spread to all
areas of traditional printing
applications: book publishing, direct
marketing campaigns or printing on
new media like customisable
wallpaper.
22
What assets does Antalis enjoy
to serve this market?
On a European scale, we offer the
broadest selection and most
comprehensive range of products
specifically adapted to the various
digital printing techniques, including
coated and uncoated papers,
creative papers, large-format printing
materials (LFP) or specialty papers.
The integration of Xerox®’s office
paper and digital media distribution
business has further boosted our
expansion on this market. Together
with Xerox®, we also tested all of our
other media and ranked them
according to performance in order to
extend Xerox product ranges for
digital printing presses.
equipment (Hunkeler) or developers
of software solutions (XMPie,
DirectSmile…). These events help
our customers familiarize themselves
with the digital print sector and
capture all growth opportunities
offered by cross-media or web-toprint solutions. Lastly, we also
sponsor the Xerox Annual European
Forum and the events organised by
Dscoop (Digital Solutions
Cooperative, a community of HP
Graphic Arts equipment users) in
Europe, Asia and Latin America.
“We offer the
broadest and most
comprehensive
range of products.”
NEWS
Antalis
Antalis
Xerox® Recycled Supreme
100%: best in class recycled
office paper
After a full year of collaboration between
Antalis, its suppliers and Xerox, Antalis has
launched a new recycled paper for office
applications, called Xerox® Recycled
Supreme 100%. This premium paper made of
one hundred percent post-consumer waste,
is rated five stars in the Antalis Green Star
System and was granted the “100%
Performance Guaranteed” seal of quality,
guaranteeing top quality levels on Xerox®
printers. It provides the same quality levels as
a virgin fibre-based paper for customers who
wish to adopt a sustainable sourcing policy.
This is the first Xerox®-branded paper
introduced on the market by Antalis since the
acquisition of the Xerox® office and digital
paper distribution business in late 2013.
A new tool
to promote the
digital print offering
In the context of its “d2b”
(digital-to-business)
programme intended to help
customers gain a better
knowledge of the digital print
market and its potential,
Antalis has developed a
unique marketing tool to
promote its digital offering,
targeting in particular
corporate in-house copy
departments and copy-shops.
The tool compiles over
180 media tested on various
Xerox digital printers and
rated according to their
performance. It also contains
over 60 samples printed on
Xerox iGen 150 and Colour
Press 1000 printers. Customers
can thus easily choose the
media best suited to their
digital printers, print out pages
delivering higher added value,
and leverage new
applications.
ZOOM
Huge success for the Antalis
e-commerce website
Now operational in all European countries, the Antalis
e-commerce website provides customers and prospects
with 24/7 access to detailed information, along with
extensive advice and services. The website is regularly
updated and compiles since 2014 the full Xerox®-branded
paper range. It also offers on-line payment in several
European countries. With 1.5 million order lines and a sales
penetration rate 4 points higher than in 2013, the website
has proven its efficiency and ability to create value.
Antalis
Antalis UK
Digital Academy
on the road
Antalis UK launched a series of regional
workshops in 2015 in order to facilitate
its customers’ access to the Digital
Academy training sessions usually
organised at the Leicestershire head office.
The first workshop held in April in Exeter
was devoted to signage. The printers
learned about digital printing, the basics of
applying vinyls, and their specific features.
The Digital Academy regional workshops
are designed to help participants gain
practical experience and in-depth
knowledge about the signage and display
market, along with opportunities to broaden
their service offering and address new
markets.
“ Thanks to a dedicated
sales team established
in 2014, Antalis digital
media sales grew
by 29% in volume and
16% in value in the UK.”
Sequana / 2014 Annual Report
23
PRIORITY TO TECHNICAL
PAPERS AND SOLUTIONS
3 questions to
Agnès Roger, Managing Director of Arjowiggins Graphic
Arjowiggins is refocusing on
specialty papers. What does it
mean for the Graphic division?
This shift in focus responds to the
need for trimming down our
operations in the chronically
loss-making segment of standard
coated papers, where pressure on
selling prices linked to
overcapacities on the market, high
costs of raw materials, and virgin
pulp in particular, all have a
significantly negative impact on
our margins. In 2014, we therefore
decided to consolidate our paper
production in a limited number of
mills, in order to reduce our
exposure to the coated segment,
and to refocus on specialties and
recycled papers where we are the
European leader. In line with these
plans, the disposal/closure
process for the Wizernes mill will
be finalised by the end of the first
half-year 2015.
What are your assets in the
recycled paper market?
The penetration of recycled
papers into the graphic paper
segment still remains low, unlike
for packaging paper or newsprint
for instance. In this steadily
growing segment benefitting from
the expansion of CSR policies, we
are uniquely positioned in the
market. Thanks to our Greenfield
mill, the single manufacturer of
premium-grade recycled
commercial pulp in Europe, we
have developed a selection of
unparalleled scope, ranging from
100% recycled papers in extrawhite or natural shade, to a line of
papers blending FSC®-certified
virgin fibres with recycled fibres.
In addition, the increasing demand
for shorter printing runs has
fostered a fast growth of the digital
printing market, and stepped up
the use of eco-responsible papers.
This shift opens up tremendous
opportunities for innovation and
expansion for us. As an example,
we have just launched a new
100% recycled paper for ink-jet
digital printing, certified by all
ink-jet printing press
manufacturers in the industry.
In the digital printing sector, we
recently invested in a sheeting and
packing line designed for these
highly specific formats, which will
enable us to increase our
production capacity and adapt our
cutting precision to the new ultra
high-speed printing presses.
What are your key strengths
in specialties?
One of our key assets is that we
operate in niche markets where
we enjoy solid positions. In addition,
we manufacture specialty papers
for highly diversified applications:
labelling and soft packaging
materials, advertising posters,
textile transfer, etc. We also
produce laminated paper for
prepaid phone cards, retail loyalty
cards, gift cards or playing cards
for casinos, as well as tissue
papers used for napkins and
tablecloths or for hygiene
applications where we are the
market leader in coloured tissue
paper with a range of 160 shades.
Our ambition is to step up our pace
of expansion in these various
market segments by capitalizing
on our know-how, in particular in
environmentally friendly products,
and leveraging our innovation
expertise.
“We have just
launched a new
100% recycled paper
for ink-jet digital
printing.”
24
NEWS
Arjowiggins Creative Papers
Arjowiggins Security
PowerCoat® Alive
revolutionises
communications
First Diamone®
Xtra reference
in Africa
PowerCoat® Alive combines the
award-winning substrate
developed by Arjowiggins
Creative Papers for printed
electronics, with premium fine
papers. This combination gave
birth among others to Conqueror
Alive and Curious Alive, two
well-known brands in interactive
applications. Their originality
stems from the NFC chip
embedded into the papers that
can be used by any converter or
printer to create smart and
interactive applications.
Banknotes made of Diamone® Xtra paper, initially
introduced on the market in 2013, will soon be in
circulation in an African country. This multi-layer
extra-high durability paper, the latest born in the
Arjowiggins Security range of high durability papers,
is made from 100% cotton fibres, and designed to
withstand any types of stains. Banknotes printed on
this new paper can stay in circulation three times
longer than those printed on standard paper. They are
protected with a watermark, a security thread and an
iridescent band. Diamone® Xtra is thus ideally suited
to withstand the extreme climate conditions in Africa
and multiple daily handling of banknotes.
IN BRIEF
100% recycled, 100% efficient laminates
Sequoia is a laminated paper solution
offering an alternative to plastics for
retail loyalty cards, gift cards or
prepaid cards. In 2014, in response to
market expectations on CSR,
Arjowiggins has fleshed out the
Sequoia product range with a new
100% recycled version. While retaining
its premium quality in terms of printing
and rigidity, Sequoia Recycled features
the best in class
performance in its
market segment,
with a carbon
footprint 20% lower
than virgin
fibre-based paper.
ZOOM
Secret security for perfumes
In the perfumery and cosmetics industry, the FS-A2 Signoptic® scanner
delivers an innovative solution for premium brands to fight against
parallel trade channels. This new technology verifies the authenticity
of a perfume case via an optical scan confirming the single
identification number and authenticity of the product, without
disclosing to the scanner user any confidential data linked to the
operation of the Signoptic system. This solution provides a way
for multinationals to prove counterfeiting and win their court cases
against illicit trade networks, and has enabled Arjowiggins Solutions
to comfort its global leadership in the perfumery industry.
“Post restructuring, Arjowiggins
will make 95% of its sales
in specialty papers.”
Arjowiggins Security
Authenticated value
The gold or silver maple leaf investment
coins minted by the Royal Canadian Mint,
feature among the most preferred
investments on international markets.
In order to guarantee to investors the
authentic nature of a coin, the Royal
Canadian Mint has opted for the
Signoptic™ technology.
The process allocates a single signature
to a coin and generates a unit identifier
linked to an authenticator to ensure
traceability, thereby enabling Mintauthorised merchants to verify in a few
seconds the authenticity of the investment
coins brought by their customers.
Sequana / 2014 Annual Report
25
NEWS
Arjowiggins Healthcare
Arjowiggins Graphic
New
packaging
for medical
devices
Arjowiggins Healthcare has signed the
first sales of its new Polybond, a porous
substrate designed for sterilisation
packaging, consisting of 50% cellulose
fibres and 50% synthetic fibres.
This highly resistant hybrid substrate
provides medical device manufacturers
with a genuine alternative to 100%
synthetic solutions for heavy-weight,
bulky and blunt medical devices.
CyclusOffset invited to pedal
along with Passoni
The London-based designer Studio
Kunze opted for the 100% recycled
CyclusOffset paper to print the new
product catalogue of Passoni, an
Italian manufacturer of premium
bicycles. The design conveys an
image of subtle luxury to the bicycles,
in line with Passoni’s rebranded
image and identity. The catalogue
was printed in A3 format to bring out
the heroic element of the bikes. The
CyclusOffset paper highlights the
quality of the prints, and reflects
Passoni’s craftsmanship and
Arjowiggins Graphic
Arjowiggins Security
Highly
secured
Turkish
banknotes
The Central Bank of Turkey has awarded
Arjowiggins Security a contract for the
production of paper to be used for printing
800 million Turkish banknotes, a major
challenge since these notes are among
the most sophisticated in the world.
Apart from conventional security features
(watermarks, security thread, fibres), a
holographic band on the front and iridescent
coating on the back provide additional
security. Deliveries started in 2014 and will
extend until late 2015.
26
Digital printing:
an alternative
to offset printing?
In the context of the launch of its new Pro™ C9100, Pro™ VC60000 and
Pro™ C7100X printers, Ricoh selected Arjowiggins Graphic’s 100%
recycled Cocoon Silk and Cocoon Jet Pro papers to print on the Ricoh
IP5000 / Ricoh Pro C9110 at the New Dawn event the book ‘The Real
Mad Men’, based on the popular television series ‘Mad Men’. The
publication successfully showed how a digital print can deliver a high
quality alternative to offset printing, especially for short print runs and
customisation, while retaining an optimum product quality.
attention to details. Antalis has sent
this catalogue to over 1,800
customers to showcase CyclusOffset
and demonstrate how its premium
quality can enhance the value of
upscale products.
ZOOM
From white tissue
to coloured tissue
Capitalising on the success
of Easy Print in the white
tissue market, Arjowiggins
Graphic has launched
Kaleïdo Easy Process, an
adaptation of this product
for the coloured tissue
market. Thanks to a unique
glued-ply tissue process,
the products provide
enhanced printing quality
for Easy Print and improved
industrial efficiency for
Kaleïdo Easy Process.
This innovation has helped
the Group successfully gain
a solid footprint in the North
American market, thereby
opening up new growth
prospects for the entire
range of Kaleïdo coloured
tissue paper.
PRIORITY
TO INNOVATION AND ADDED VALUE
3 questions to
David Hunter, Managing Director of Antalis UK, Ireland & South Africa
customers’ expectations, as well as
the expectations of their own
customers and end-users who
increasingly demand products with a
lower environmental footprint.
Another example is our product offer
for small-format digital printing which
we have significantly enhanced with
the addition of Xerox® branded papers
that have been tested extensively
to ensure optimum performance on
Xerox® printers. We give a 100%
Performance Guarantee for any
product that is featured on the
Paper & Media List for a specific
Xerox® printer or digital press.
What about services?
We offer a wide range of business
and logistics services. For instance,
Antalis has developed the Green Star
System, an innovative yet simple
environmental classification system
designed to help our customers
choose environmentally-friendly
papers. All of our products have been
ranked from 1 to 5-stars, with a
product considered eco-responsible
if it has a minimum of 3-stars.
Why are innovation and adding value
high priorities for Antalis?
Innovation is crucial to anticipate and
meet the ever-changing needs of our
customers and to create new growth
opportunities. By offering our
customers a choice of premium
quality products and high added-value
services it gives them options to
develop their own businesses and
opportunities to gain a real
competitive edge with their own
clients. This approach is deeply
anchored into our DNA; it is actually
part and parcel of the “DNA - Deliver
the New Antalis” initiative launched
by the Group in order to enhance our
efficiency and deliver more added
value to our customers. As an
example, we have worked in close
collaboration with Arjowiggins
Graphic and one of our customers
specialized in the supply of labelling
systems to develop a product solution
for their food packaging labelling
process that is more efficient and
environmentally-friendly than
traditional labelling processes.
In an entirely different area of our
business, we provide the major
British book publishers with
a comprehensive service
encompassing the management of
their paper sourcing, print waste
reduction and inbound paper logistics.
Another example of our customer
service approach is the Digital
Academy that we have created at our
UK main office in Leicestershire. The
Academy is a hub of information for
anyone interested in digital print, both
small and large format, and is
equipped with the latest digital kit
offering live demonstrations and real
life application case studies to help
inform and educate our customers.
Last but not least, the strong increase
that we’ve seen in website visits and
orders placed on-line indicate that our
e-business solutions are proving very
useful for our customers.
“Innovation is deeply
anchored into our
DNA.”
How are these priorities reflected in
your product offer?
We are continually adapting our offer
in relation to the changing demands of
the market and of our customers. In
the field of Green papers for instance,
Antalis has built an environmentallyfriendly product offering that is one of
the broadest available on the market
today. It adheres to stringent
environmental credentials to meet our
Sequana / 2014 Annual Report
27
3 questions to
Jonathan Mitchell, Managing Director of Arjowiggins Creative Papers
In your view, are innovation and
added value indissociable?
Absolutely! The goal of any
innovation is to deliver added value
to our entire ecosystem, i.e. our
customers, distributors and
printers, as well as the
communication agencies who
advise the end users. This is why
we pursue creativity on an ongoing
basis, and encourage it at all levels
in the company, whether this
innovation relates to technologies,
marketing or sales. In order to find
good ideas, we need to be
constantly on the look-out for
market insights to understand fully
the changing needs of our clientele
and design new applications for
our papers. In an industry like ours
undergoing deep changes,
innovation and added value are
what bolsters the power of our
brands, what durably makes a
difference and fosters the loyalty of
our customers on the long run.
How is this reflected in your
business activities?
As an example, we have developed
new product applications by
leveraging the inherent qualities of
paper to offer alternatives to
plastics. But innovation and added
value are not restricted only to
products: they may also involve
services, in marketing for instance.
Thus in 2014, we focused on the
quality and features of the
brochures presenting our product
ranges to help designers and
printers select the best papers for
their needs. In addition, we created
the “Pop-Up” exhibition featuring
over 100 end products designed
and printed by our customers
around the world for luxury bands,
restaurants or companies. This
travelling exhibition, organised in
six major European cities
renowned in the world of design,
28
is a premiere in our industry. The
initiative is intended as a source of
inspiration for printers and end
users. For the same reason, we are
also actively involved in social
media like Instagram, Twitter or
Facebook.
Can you tell us about any other
highlights initiated over the past
few years?
The Alive range is undoubtedly one
of our major innovations. It is
unique in that it combines our fine
paper brands such as Conqueror or
Curious with PowerCoat®, a
substrate for printed electronics
launched in 2013. Our papers thus
become truly “alive” by
incorporating discreetly an NFC
antenna (Near Field
Communication) – a contactless
technology designed to
communicate with smartphones.
This solution opens the way to
numerous potential applications in
areas like advertising or luxury
packaging, providing agencies and
brands with an innovative vector of
communication with consumers via
their mobile devices.
In an entirely different area, we
developed our in-house
programme “Be MAD” (Make A
Difference), intended to encourage
creativity everywhere across the
business, from paper mills to sales
departments, thereby improving
our efficiency.
“In order to
find good ideas,
we need to be
constantly on
the look-out for
market insights.”
NEWS
Arjowiggins Creative Papers
Arjowiggins
Paper Book –
International
standards for
creative papers
ZOOM
Antalis
Catalogue for
one of the most
comprehensive
service offers
on the market
A catalogue of services is available to Antalis
customers in all European countries, a particularly
useful tool for them to choose the desired service
level and find out about the related costs. With
over 70 services provided in some countries, Antalis
offers one of the most comprehensive ranges on
the market. The service offering combines advice,
training, bespoke services, customisation, sharing
of best practices, high added-value logistics, on-line
tools, after-sales service, etc.
Sterilisation
of hospital trays
Sterisheet®, the hospital
business of Arjowiggins
Healthcare, has launched
ArjoDuoTM, a first of a kind
packaging solution designed
for the sterilisation of hospital
trays. This patented solution,
made of bonded SMS and
Choosing the
right paper is an
act of creation!
For the first time ever, the complete collection of
creative papers designed and manufactured by
Arjowiggins has been compiled into a single book.
The “Paper Book”, published in 20,000 copies and
circulated worldwide, is the encyclopaedia of
Arjowiggins Creative Papers. The book showcases
some one hundred A4 samples, and lists out all
ranges, textures, weights, colours and shades in the
Arjowiggins Creative Papers range. This is a simple
yet elegant tool designed to facilitate choices for
designers, printers and end users.
Arjowiggins Healthcare
In October 2014, Antalis
introduced its “Creative
Power” initiative
intended to raise the
awareness of creative
directors, graphic
designers, brands, event
agencies and public
relations firms about the
value added to any
application by creative
papers. The global
“Papercards” campaign,
targeting 15,000 creative
designers as well
as marketing and
communication
professionals,
showcases each month
all year long the artwork
of 12 international artists
using 12 different papers
and printing techniques.
A Papercard is sent
out each month to
demonstrate how the
choice of the right
paper can contribute
to enhance the value
of a creative message.
Premium Club
for resellers
of Antalis office
papers
In early 2015, Antalis
launched a Premium Club
for its office paper
resellers in the Group’s
major European countries.
A series of exclusive
advantages related to the
Image and Xerox® brands
is proposed to resellers,
such as marketing tools,
sales programmes,
promotional campaigns or
product training sessions,
a win-win approach to
grow the business of both
Antalis and its customers.
paper sheets, delivers nearly
50% productivity gains for
hospital sterilisation centres,
while preserving optimum
packaging properties.
Arjowiggins Creative Papers
Touring exhibit
for creative
papers
Arjowiggins Creative Papers and Antalis
have organised transient exhibits named
“Pop-Up Exhibitions” that will tour six
European cities from January to June
2015 in Paris, Barcelona, Milan, London,
Amsterdam and Berlin. Printers,
designers and advertisers are thus given
the opportunity to discover over one
hundred artworks printed in over
30 countries across the world. In each
capital city, more than a thousand guests
can share the work of artists highlighting
our brands in various printing techniques
(embossing, gilding, varnishing, etc.).
Arjowiggins Security
Highly
secured
concert tickets
The Taiwanese pop star A-MEI has selected Arjo Systems to
supply the e-tickets for the 10 concerts of her Utopia Tour in
April 2015. Each e-ticket is highly secured and fully
personalised, with a chip embedded in the card containing
information about the buyer’s name, prices, seat numbers and
colour codes for each concert. The e-ticket can be checked
from a smartphone at the stadium entrance, and provides a
unique solution against counterfeiting, as well as a new
marketing tool as a collector card.
Sequana / 2014 Annual Report
29
COMFORTING
OUR COMMITMENTS
30
Sequana / 2014 Annual Report
31
Group policy
A COMPREHENSIVE
CSR APPROACH
T
he establishment of a CSR
Department and the
implementation of a Group-wide
sustainability policy have created
a genuine momentum within
Antalis and Arjowiggins to fully
mainstream into their business activities all of the
priorities identified in the fields of corporate
governance, natural resources, human resources
and product offering.
Raw material traceability features among the
major areas of progress achieved, particularly for
the sourcing of wood-based fibres primarily used
in the Group’s value chain. Antalis has rolled out a
pioneering suppliers online platform to compile
information related to suppliers’ governance,
compliance and traceability of the materials they
supply.
Employee safety is another major area of progress:
the steady decrease in the incident and severity
rates of lost-time accidents attests to the
management’s constant commitment and
concern to reach our zero-harm target.
As regards the product offering, Sequana has
developed a common Group-wide definition for
“eco-friendly” products, shared by the
distribution and production businesses.
Antalis subsequently engaged in a customer
awareness-raising process, and has established
a simple evaluation system to assess the
eco-friendliness of a product: the Green Star
System is now applied to all paper products
distributed by Antalis.
Last but not least, the Group’s Code of Good
Conduct, addressing issues of anti-trust law and
business ethics among others, was proactively
communicated to all Group employees.
32
Arjowiggins Security
accredited by Banknote
Ethics Initiative (BnEI)
After successfully undergoing an audit conducted
by an independent anti-corruption control systems
assessor, Arjowiggins Security was formally
accredited by the Banknote Ethics Initiative
Accreditation Council in late 2014.
Banknote Ethics Initiative (BnEI) was created in 2013
at the initiative of six leaders of the banknote industry,
including Arjowiggins Security, for the purpose of
promoting a Code of Ethical Business Practice, with
a focus on the prevention of corruption and on
compliance with anti-trust law within the banknote
industry. The BnEI accreditation recognizes and
rewards the ongoing commitment of Arjowiggins
Security to perform to the highest ethical standards.
Interview
Matthew Botfield, Environment Manager, Antalis UK
What are the specific features
of CSR on the UK market?
Companies in the UK are gradually
changing their CSR practices.
The pace of change may be slower
or faster depending on the
companies’ maturity, some of
whom now regard CSR not just as
a moral issue but more as a growth
opportunity.
CSR influencers in the UK market
place are the government, NGOs
and large multinationals who have
bolstered their CSR policies.
This shift is in line with the
increasingly multiple expectations
of our stakeholders on issues of
Human Rights, compliance of our
suppliers and mills with social and
labour standards, and traceability
of wood-based fibres.
How did you mainstream the
market’s CSR expectations?
For the past decade or so, our
approach has involved reinforcing
our control over the supply chain in
order to deliver to our customers all
required social and environmental
guarantees on the end products.
We were among the first to be
granted the FSC® and PEFC Chain
of Custody certification, and we
have been pioneers in terms of
anticipating and enforcing
government regulations on wood
sourcing.
What major progress did you
achieve in 2014?
Regarding governance, we created
a consulting service for our
customers who wish to become
certified. We also conducted audits
of our key suppliers on their fair
trade practices.
One of our key issues was to keep
the data on our suppliers and
products updated in order to
demonstrate consistently our
compliance with European
regulations, whether on the
traceability of wood-based fibres
or chemical safety, among others.
As for health and safety at work in
particular, our distribution centre
was granted the OHSAS 18001
certification. Last but not least, we
introduced our “Full Cycle” label
certifying that our papers are
integrated into a circular economy
system called closed-loop process:
the recycled paper sold to our
customers is collected after use
and reintroduced into a new
papermaking loop.
The suppliers platform developed
by Antalis two years ago was
our response to this issue.
CSR concerns are now fully
mainstreamed into the Group’s
business model. We deliver regular
communications and training
sessions on the subject to our
employees and our customers.
As regards natural resources, we
renewed the certification of our
operations by the Carbon Trust
Standard, guaranteeing Antalis’s
commitment to reduce our carbon
emissions each year.
Sequana / 2014 Annual Report
33
Natural Resources
GUARANTEEING
PRODUCT
TRACEABILITY
In an effort to improve its control over the supply chain and increase the proportion
of sustainable materials in its products, Sequana has bolstered its policies and
procedures, in particular for suppliers, designed to deliver always more
transparency and more traceability.
I
n a globalised and diversified sourcing
market, Sequana is committed to
guaranteeing full transparency about
the origin of the fibres used in its
products. In this perspective, the Group
has developed a policy of responsible
sourcing for paper-based materials, paper pulp
and cotton-based products, driven by the
ambition to improve its control over the supply
chain and increase the proportion of
sustainable materials in its products.
Dedicated procedures have thus been
implemented to ensure the traceability of all
products sold by the Group and the sustainability
of materials sourced from its suppliers.
Back in 2013, Antalis had launched a
centralised platform, asking its suppliers to
report on line all of their data and documents
related to mill certifications, compliance with
fundamental corporate guidelines (i.e. labour
law, environmental protection, social
commitment) and product conformity.
Arjowiggins sends a comprehensive CSR
questionnaire every year to all of its suppliers.
In addition, the policy implemented by the
Group several years ago for paper pulp is now
applicable to cotton sourcing as well.
In compliance with the European Union Timber
Regulation (EUTR), the Antalis on-line platform
covers all suppliers affected by the EUTR.
The platform incorporates a tool designed to
assess the various risks related to the wood
species used in materials, their geographic
origin, deforestation issues, as well as to the
countries of origin and their governance.
This on-line tool also provides the possibility
of implementing risk mitigation procedures.
Since the EU regulation is applicable to its
paper pulp purchases, Arjowiggins sends
a specific questionnaire about pulp sources
to all of its non-European suppliers.
The Antalis on-line platform addresses:
• 183 suppliers, i.e. nearly 71% of total
procurement volumes
• all suppliers potentially at risk
• 924 products
• 270 mills
The platform contains:
• 23,000 items of information stored
• 1,500 compliance documents
34
Interview
John Sanderson, Manager, Environment & Responsibility,
UPM UK & Ireland
Why are traceability and
responsible sourcing key issues
in UPM’s overall strategy?
Sourcing plays a major role in
driving the efficiency and
profitability of UPM. But more than
this, the origin and sustainability of
the raw materials which we use,
including wood, pulp, energy and
recycled paper are at the core of
our “Biofore” vision which
ambitions to integrate the bio and
forestry industries in order to create
a new, sustainable and innovationbased future.
Our goal at UPM is to create value
from renewable and recyclable
materials. It is essential for the
success of Biofore to ensure the
traceability and sustainability of our
raw materials, and to assess any
potential risks along our supply
chain. Thus, our supplier risk
assessments reach well beyond
the mere economic sustainability
of our sourcing: they also cover
environmental and social risks.
To this purpose, we work in close
cooperation with our suppliers in
order to gain a shared
understanding of responsible
sourcing, and to foster
transparency between the supplier
and the customer.
Sharing information on the
environmental, social and ethical
performance of products is the
cornerstone of these relations.
What is your view about the Antalis
online suppliers platform?
As a global company selling a wide
range of products in many different
countries, it is increasingly
challenging every year to respond
to growing expectations on social
and environmental issues. This is
where a centralised information
platform can provide real support.
Instead of receiving multiple
separate enquiries from the many
countries where Antalis operates,
the Antalis suppliers platform
enables us to upload on line only
once a year the sustainability
information requested about our
products.
This also helps us manage our own
resources more efficiently, and
plan for future resources
necessary to update the
information.
How does this platform help you
improve your sourcing processes?
One of our big challenges is to
understand perfectly the concerns
of both our suppliers and
customers, as well as what
information they expect from us.
Expectations from our customers
are much more difficult to assess
due to the large number of markets,
customers and end-uses. The
Antalis platform provides us with a
clear overview of all the
sustainability issues of importance
to a worldwide paper distributor.
We can then use this insight when
developing our own systems to
deliver the requested information,
and to respond to the priority
concerns of our customers.
Sequana / 2014 Annual Report
35
Natural Resources
ENERGY
AND WATER UNDER
CLOSE SCRUTINY
Increasing the use of renewable energy and improving energy efficiency
are the two key priorities in the Group’s energy policy, and the key drivers
for the initiatives developed in 2014. In addition, a number of initiatives
were carried out to further bolster our water management process,
which is essential to prevent any pollution events.
Energy efficiency, an ongoing concern
In 2014, Sequana clearly announced its
determination to reduce its dependence on
fossil fuels and improve its environmental
footprint. The biomass-to-energy project (boiler
burning wood chips) has been commissioned
and is now operational at the Palalda mill
(France), leading to a reduction of CO2
emissions by a factor of 7 versus 2013.
A similar biomass boiler project is currently
under review for construction at the
Stoneywood mill (UK).
As regards energy efficiency, the ISO 50001
certification constitutes an opportunity for
continuous improvement of our energy
management system. It provides a standard
model to help the sites implement policies and
action plans designed to optimise energy uses,
track energy savings, and plan for the
necessary improvement actions.
In 2013, Arjowiggins Graphic thus launched the
ISO 50001 certification process for its mills at
Bessé-sur-Braye, Le Bourray, Wizernes and
Château-Thierry, which together account for
over 63% of the Group’s total energy
consumption.
36
The multi-site certification was granted in early
2014, turning Arjowiggins Graphic into a
pioneer both within the Group and the paper
industry.
This approach, based on optimised process
control, has helped the division reduce its
energy consumption by 2.6% by late December,
well above the 2% target set for 2014. CO2
emissions per tonne of paper produced were
reduced by 1.9% per tonne, i.e. 3.7% in absolute
value. The Group’s target for 2015 is to initiate
an ISO 50001 certification process in the other
divisions.
Reducing energy consumption at Antalis is a
lesser challenge since the distribution
business only accounts for 1.2% of the Group’s
total energy consumption, and no specific
action plan has therefore been established.
However, even there, each country is putting in
place a number of actions to reduce the energy
consumption in line with local opportunities
and priorities.
“By switching to biomass combustion, we were able
to divide by 7 our CO2 emissions and to reduce
the volatility of our energy costs. Both elements
combined give us an additional source of competitive
advantage for the future.”
Thibaut Hyvernat, General Manager Arjowiggins Healthcare
Optimising water management
Good water management practices constitute
a major challenge for the Arjowiggins mills.
While the total water offtake volume from
natural sources accounted for 18.1 million cubic
metres in 2014, the Group’s mills released nearly
16.5 million cubic metres back into the natural
environment after use, i.e. over 91%. It is
therefore essential to ensure the quality of the
released wastewater. Accordingly, a
wastewater treatment plant (WWTP) is
installed on each of the 19 production and
conversion sites operated by Arjowiggins. The
WWTPs collect the effluents, and depurate
them in successive steps (settling,
physiochemical treatments, biofiltration as
needed), before releasing the treated
wastewater back into the natural environment
without any risk of pollution. Eight out of the ten
major mills are currently equipped with dual
physiochemical plus biological treatment
systems.
Each mill carries out twice-daily calculations
to measure all key indicators of water quality,
in strict compliance with regulatory standards
applicable in the countries where the Group
operates. These indicators are checked
regularly by local authorities, but the
measurements also enable the Group to
assume its full responsibility and commitment
to the protection of natural environments, over
and beyond regulatory compliance.
In 2014, the European Union Joint Research Centre
(JRC) published its new BREF (Best Available
Techniques Reference Document) for the
manufacturing of pulp, paper and board. The BREF
document includes in particular new threshold
values on wastewater discharges that will become
mandatory under EU regulations by 2018.
In anticipation of the new requirements, Arjowiggins
has set up an inter-division task force in order
to design and share enhanced assessment and
compliance tools, in collaboration with the Centre
Technique du Papier (CTP).
Sequana / 2014 Annual Report
37
Environmental indicators
GRAPHIC
INDICATOR
Water consumption
Water use/ Net sellable production
Water released back into the environment
Discharges/Net sellable production
Analysis of total suspended solids (TSS)
TSS discharged/ Net sellable production
Analysis of chemical oxygen demand (COD)
COD/Net sellable production
Analysis of biochemical oxygen demand after 5 days (BOD5)
BOD5/Net sellable production
Analysis of nitrogen (N)
N/Net sellable production
Analysis of phosphorus (P)
P/Net sellable production
Analysis of nitrogen oxide (NOx)
NOx/Net sellable production
Analysis of CO2 (scopes 1 & 2)(1)
CO2 emissions /Net sellable production
Gas consumption (energy)
Gas consumption/Net sellable production NCV
Steam purchased externally (energy)
Steam purchased/Net sellable production
Electricity consumption (energy)(3)
Electricity consumption /Net sellable production
Energy consumption
Total energy consumption/Net sellable production
Analysis of sludge: Total quantity
Production of sludge (dry)/Net sellable production
NHIW (non-hazardous industrial waste)(4)
Volume of NHIW
SIW (special industrial waste)
Volume of SIW
UNIT
2014
2013
m /T. paper
12.7
12.2
m3/T. paper
11.4
11.1
Kg/T. paper
0.17
0.18
Kg/T. paper
1.34
1.35
Kg/T. paper
0.10
0.10
Kg/T. paper
0.05
0.04
Kg/T. paper
0.006
0.004
Kg/T. paper
0.16
0.02
Kg/T. paper
397
405
KWh/T. paper
1,124
1,133
KWh/T. paper
517
543
KWh/T. paper
787
784
KWh/T. paper
2,314
2,350
0.16
0.14
T/ paper
15,987
18,038
T/ paper
237
384
3
Note: Values given as a ratio per tonne of sellable paper are the average values for all production activities across the Group; significant differences may exist among the sites depending on the products manufactured.
The values are aligned with values reported by the most efficient papermakers who produce comparable paper grades.
The actual 2013 values may differ from the values published in 2013, since there were calculated on a same-mill like-for-like basis. The published data are cumulative or average values per division, and may vary due to the
actual consolidation scope.
Water use (m3/T. paper)
2013
24.6
38
2014
23.9
CREATIVE PAPERS
2014
2013
HEALTHCARE
2014
2013
SECURITY
TOTAL
2014
2013
2014
2013
55.2
57.9
48.5
47.1
109.6
120.3
23.9
24.6
55.0
56.8
31.5
31.7
103.8
112.9
22.2
22.9
0.76
0.83
0.20
0.20
0.60
0.60
0.27
0.28
4.44
4.77
3.87
3.56
7.40
9.54
2.14
2.30
0.89
0.88
0.92
0.96
2.21
3.47
0.33
0.41
0.05
0.04
-
-
0.04
0.01
0.05
0.04
0.036
0.042
-
-
-
-
0.0098
0.0095
1.55
1.16
-
-
-
-
0.38
0.28
1,248
1,238
104(2)
582
1,480
1,463
537
565
5,025
5,024
76
2,454
1,007
909
1,550
1,727
117
118
2,255
-
-
-
524
441
1,460
1,372
1,058
1,053
2,225
2,209
947
937
5,538
5,528
3,390
3,509
4,817
3,908
2,871
2,862
0.05
0.04
0.02
0.02
0.06
0.07
0.13
0.12
359
435
3,206
3,228
331
218
19,882
21,929
183
1
64
70
24
16
508
471
(1) CO2 emissions shown in this document (2013 & 2014) cover Scopes 1 & 2 under the GHG protocol. Centralised emission calculations ensure that a homogeneous methodology is used at Group level to enhance
the reliability of the published indicators. In a concern for comparability, the 2013 data were restated according to the same method.
(2) The significant decrease of CO2 emissions at Arjowiggins Healthcare results from the switch to biomass combustion at the Palalda mill, the largest energy consumer in this business.
(3) The analysis of total energy consumption includes electricity, gas, steam and biomass, as well as fuel-oil and coal consumptions (not included in the chart).
(4) Non-hazardous industrial waste (NHIW) contains primarily paper scraps/trimmings that cannot be reintroduced into the papermaking process.
CO2 emissions (Kg/T. paper)
2013
565
2014
537
Sequana / 2014 Annual Report
39
Human Resources
SUPPORTING
CHANGE
Against a backdrop of in-depth business transformation, Sequana endeavours
to bolster the skills of its managers and employees, in particular on issues
of change management. In addition, the challenges of safety at work and risk
management constitute increasingly relevant concerns.
Safety at work, an absolute priority
In the context of the 2012-2015 plan, the
overriding goal of Arjowiggins is to strengthen
the training path on occupational safety.
Beyond the programme designed to enhance
the safety of paper machines and finishing
equipment, new plans were developed to
foster risk assessments, as illustrated by the
implementation of dynamic risk analysis
procedures for maintenance operations, or the
introduction of in situ training sessions to help
operators identify hazards. Efforts have
focused in particular on safety issues related to
dual pedestrian and forklift truck traffic flows.
In spite of a steady decrease in the number of
lost-time accidents, the 30% target of incident
rate reduction versus 2011 was still not
reached this year.
As regards occupational health, all sites have
focused on the reduction of occupational
illness risks, linked primarily to manual
handling operations and strain-generating
working postures, and to noise and heat
exposure. Dedicated action plans have been
developed to address such hazards.
Another key point of the plan is the OHSAS
18001certification process: in line with its
commitments, 100% of the Graphic division
sites were awarded the OHSAS 18001
certification.
In the context of the Antalis Health & Safety
policy which had established the “10 Golden
Rules”, an action plan was developed,
focusing on four key areas: management
40
commitment, communication and employee
commitment, operational excellence (with
priority to risk control), and influencing safe
behaviours. A self-assessment tool designed to
monitor these topics was made available to the
countries to help them evaluate their maturity
level in the safety management process. This
proactive policy has enabled Antalis to improve
its performance significantly in terms of
incident and severity rates.
Human Resources: speeding up
the pace of skills development
In this area, Sequana’s challenge is to
capitalise on the skills of its employees in its
two businesses, and deliver a comprehensive
reporting tool providing a 360° overview of
HR-related issues and topics.
In this perspective, Antalis focuses on training
and development of its employees and
managers. The Leadership programme
launched in 2013 helps the executive staff gain
new expertise in people and operation
management as well as, and more importantly,
in change management. In addition, the
e-learning platform is used by employees to
develop their individual skills, attend training
courses in project or performance
management, and gain new technical
expertise or information about various
products.
In a context of restructuring of its business
operations, Arjowiggins has endeavoured to
establish a constructive industrial dialogue.
Training initiatives have focused primarily on
personal and asset safety.
Employee safety
100
80
15
60
10
40
20
0
2012
2013
2014
5
Incident rate Antalis
Incident rate Arjowiggins
Lost-time accidents Antalis
Lost-time accidents Arjowiggins
Incident rate = number of lost-time accidents / number
of full-time permanent and temporary employees x 1,000
Data calculated on a scope of 118 distribution centres
for Antalis and 19 production and converting sites for
Arjowiggins (excluding headquarters).
“100% of Arjowiggins
recycled pulp and paper mills
are OHSAS 18001-certified.”
Interview
Andrew Jordan, Antalis Group HR Director
Enhancing employees’ skills is a
priority for Antalis. How does your
e-learning platform respond to this
priority?
Developing and retaining the best
people and leaders is a key part of
our HR mission. Reaching this goal
across the Group is always a
challenge and requires delivering a
broad range of training to all
employees with different solutions
than traditional classroom-based
training.
We have therefore developed and
implemented an e-learning
platform across Antalis. It enables
employees to access training
courses directly when and where it
best suits them. It provides access
to customised programmes
dedicated to our own products and
services, complemented by a
range of ‘off-the-shelf’ programmes
covering subjects like personal
development and computer skills.
We have plans in place to develop
additional customised modules
designed to develop employee
engagement on key business
subjects such as cross-selling,
eco-friendly offers and packaging,
as well as health and safety.
To date, nearly 2,000 users have
attended 5,000 e-learning modules,
i.e. 1,665 hours of training. While the
use of the platform is growing fast,
we still have a lot to do to make it a
full-fledged part of our employees’
everyday work.
Does the Leadership Programme
constitute an additional driver to
reach this goal?
The Antalis Leadership programme
was developed to help new and
established leaders focus on three
key areas: Leading People, Leading
Change and Leading the Business.
It was also designed to help
participants apply theoretical
lessons to concrete business
projects, test their new skills and
collaborate with other leaders in
project teams. The Leadership
programme has been a key driver
to implement projects with local
teams, while developing the skills
and capability of our managers.
We plan to continue in this
direction by incorporating new
curricula into the programme.
What is the goal of the employee
survey you have launched with the
Group’s employees?
The engagement of our employees
plays a vital role in our current
success as well as in the
development of our culture in the
future. The open and honest style
of our leaders helps to ensure that
the messages from employees are
heard and understood. However,
we needed a more coordinated
and structured approach to gain
feedback from employees. This is
why we introduced the survey
called MyView to analyse
employees’ perceptions on a range
of topics such as their working
environment, jobs, corporate
culture, or health and safety.
The survey results show an
excellent ownership of our Antalis
values and behaviours, but also
revealed that some improvement
can still be achieved in areas like
communications and collaboration.
We have therefore decided to
adapt and accelerate a project to
implement an Antalis Intranet,
called WeConnect, across the
whole Group by the end of the first
quarter 2015. This ambitious project
should enable all of our employees
to collaborate, communicate and
connect in a better way.
Sequana / 2014 Annual Report
41
Human Resources
INDICATORS 2014
9,615
employees worldwide
Antalis
5,585
Arjowiggins
3,977
Europe
7,758
Antalis Arjowiggins
4,425 3,280
South America
934
Antalis Arjowiggins
532
402
Africa-Middle East
380
Antalis Arjowiggins
377
3
Asia-Pacific
460
Antalis Arjowiggins
251
209
North America
83
Antalis Arjowiggins
83
France
incl.
2,971
Antalis Arjowiggins
614
2,304
Average headcounts per company
Arjowiggins
Antalis
Sequana and Sequana Resources & Services (SRS)
TOTAL
42
2014
3,977
5,585
53
9,615
Change
versus n-1
(696)
(296)
(1)
(993)
2013
4,673
5,881
54
10,608
2012
5,118
6,043
55
11,216
Breakdown by age
Breakdown by seniority
n Antalis n Arjowiggins
n Antalis n Arjowiggins
33% 32%
37%
29%
27%
26%
23%
26%
22%
20%
17%
16%
13%
21%
16%
15%
10% 10%
4%
-30 years
30-40 years
40-50 years
50-60 years
3%
+60 years
-1 year
1-5 years
5-10 years
10-20 years
+20 years
Breakdown by gender
Group
men
Antalis
women
men
72.8% 27.2%
Arjowiggins
women
men
63.5% 36.5%
women
85.24% 14.8%
Percentage of women in management(1)
Group
27%
Antalis
Arjowiggins
29.1% 29.5%
29.5%
28.9%
22.0%
2013
2013
2014
2014
2013
2014
(1) Data calculated for all Group entities
Training
Number of training days
per employee in 2014
Number of training days
per employee in 2013
Absenteeism(1)
Antalis
Arjowiggins
Total
1.22(1)
3.52(2)
2.10(3)
2.85
2.60
2.80
(1) Ratio calculated based on 31 entities accounting for 87.9% of Antalis employees
(2013: 32 entities accounting for 81%)
(2) R atio calculated based on 15 entities accounting for 73.2% of Arjowiggins employees
(2013: 12 entities accounting for 81%)
(3) Ratio calculated based on 46 entities accounting for 81% of Group employees
(2013: 46 entities accounting for 81%)
Antalis
Arjowiggins
Total
Absenteeism rate in 2014
2.97%
2.90%
2.94%
Absenteeism rate in 2013
2.85%
3.75%
3.30%
(1) Data calculated for all Group entities
Sequana / 2014 Annual Report
43
Eco-friendly products
SPOTLIGHT ON
ECOFRIENDLINESS
In 2014, Sequana bolstered its initiatives to encourage its customers to choose
eco-friendly papers. A common Group-wide definition of “greenness” based on
objective criteria was established, along with a system assessing the ecofriendliness level of products at Antalis, providing clear benchmarks to enhance
information and guidance for our customers.
I
n 2014, Sequana bolstered its initiatives
on customer information and awareness
about eco-friendly products. After
developing in 2013 a common Groupwide definition of eco-friendly paper
products, the various Group entities
implemented action plans dedicated to their
respective specific features.
This definition of eco-friendliness is simple
and easily understandable by all stakeholders;
it takes into account the two major
environmental impacts of paper throughout
its life cycle: use of raw materials and
manufacturing process. For each type of
impact, the requirements are based on
internationally recognised standards.
For instance as regards raw materials, a paper
is said to be eco-friendly provided that it is
FSC® or PEFCTM certified at the strict minimum,
and ideally 100% recycled from postconsumer waste recycled fibres. Regarding
the manufacturing process, the minimum
criterion is ISO 14001 certification
(Environmental Management System) of the
manufacturing site, and ideally a European
Ecolabel® certification. The requirements
related to both criteria are cumulative.
Based on this definition, the Group has
assessed its product lines against relevant
indicators for eco-friendly products, a sector
where Sequana enjoys a clear leadership.
In order to highlight the importance of paper in
a CSR strategy, Antalis has developed its
Green Connection programme dedicated to its
customers. Several information tools are now
available for each country: the Green White
Paper, a catalogue of recycled products, and a
video film entitled Did you know? designed to
counter preconceived ideas about paper. The
Green Star System further provides customers
with a way to assess the eco-friendliness of a
product on a rating scale of 1 to 5 stars, with a
product regarded as eco-friendly from three
stars up.
Customers can thus make enlightened
choices based on this simple and reliable
assessment matrix.
“Under the Antalis Green Star System,
32% of the products are rated 3 stars,
37% are rated 4 stars, and 5% are rated 5 stars.”
44
A wide range of eco-friendly products
According to the Group’s definition, eco-friendly products account for the following volumes:
91%
97%
at Arjowiggins Graphic
74%
*
at Arjowiggins Creative Papers
at Antalis
In the case of Arjowiggins Healthcare and Arjowiggins Security, the small proportion of wood fibres in finished products means that a definition based
specifically on paper products is not relevant.
* of total stock volume
Green Star System
Raw material origin
100% recycled(1)
or at least
50% recycled min.(2)
post-consumption
★★★★★
★★★★★
★★★★★
GREEN STAR SYSTEM
GREEN STAR SYSTEM
GREEN STAR SYSTEM
Communicating about
environmental commitments
Arjowiggins Graphic has launched a new
environmental impact calculator to help its
customers create, download and print their own
Environmental Benefit Statements. The tool also
enables printers, designers and companies to
display for the first time on their communication
materials the prestigious WWF logo Climate Savers.
“It is still possible to produce a gorgeous glossy
magazine with Arjowiggins Graphic papers without
sacrificing your environmental responsibilities.
The Environmental Benefit Statement is a great way
to bring commitments to life and demonstrate the
benefits of printing on recycled paper,” declared
Anna Simpson, Editor of the magazine Green Futures.
Eco-responsible products
Certified(1)
(FSC® or
PEFC standards)
Non certified(2)
★★★★★
★★★★★
★★★★★
GREEN STAR SYSTEM
GREEN STAR SYSTEM
GREEN STAR SYSTEM
★★★★★
★★★★★
★★★★★
GREEN STAR SYSTEM
GREEN STAR SYSTEM
GREEN STAR SYSTEM
Manufacturing
process
Non certified
manufacturing
process
ISO 14001
EU
Ecolabel®
(1) According to FSC® and PEFCTM certification requirements
(2) Remaining percentage complying with FSC® and PEFCTM standards
Sequana / 2014 Annual Report
45
Social responsibility
INVOLVEMENT
IN THE COMMUNITY
For many years now, Sequana’s social engagement has relied on cultural patronage
and solidarity with the communities. Likewise, its subsidiaries have been leading
various outreach initiatives focused on culture, solidarity, education and health in
their countries of operation, with the goal of embedding their actions into the local
economic, social and cultural fabric.
Cultural patronage and sponsorship
This year again, Sequana continued to share its
expertise and premium papers for the benefit of
Le Louvre Museum, thereby contributing to
making artworks accessible to the greatest
number for over a decade now.
The Group has also renewed its partnership
agreement with FIAC, and supplied the papers
necessary to print the annual catalogue, the
Hors les Murs monography and the (Off)icielle
catalogue for the first FIAC’s off-event focused
46
on emerging contemporary creation. This
partnership was an ideal opportunity for Antalis
to help promote the art world by organising
during the inauguration an exhibit of artworks
created on Arjowiggins papers by students from
the Estienne school of graphic design, selected
in a contest held jointly by the Group and the
school.
The Group’s distribution and production
businesses also support numerous community
initiatives.
In Thailand for instance, Antalis has continued to
donate paper to universities and design schools,
or on the occasion of various events such as
The Autonomous Spirit Exhibition by artist Inson
Wongsam at the Bangkok Art & Cultural Centre.
Arjowiggins Graphic signed a partnership on
the occasion of the first Graphic Design Festival,
an international event fully dedicated to the
development, promotion and dissemination of
graphic arts and design.
A socially responsible Group involved
in community life
For the second year in a row, RéciproCité, the
project developed by Sequana’s head office in
Boulogne-Billancourt, has enabled Group
employees to engage personally in community
outreach initiatives in partnership with local
associations. Apart from tutorial support to
schoolchildren, support to the elderly to combat
loneliness, organisation of cultural and sports
outings for underprivileged youth, a number of
new initiatives took place in 2014. Youngsters
from the CEBIJE centre (CEntre Boulonnais
d’Initiative Jeunesse) benefited from the
expertise of Group employees to prepare for
their professional integration (search for
internships, help for CV drafting, coaching for
job interviews, etc.). Lastly, the half-marathon of
Boulogne-Billancourt gave an opportunity for
twelve headquarters employees and five
CEBIJE youngsters to run as a joint RéciproCité
team, and to share their common passion and
values during training sessions.
In 2014, 38 employees were involved in regular
or one-off activities offered under the
RéciproCité programme, accounting for a total
of 496 hours donated to community initiatives.
In the field of education, Arjowiggins Graphic
started three years ago to support the NGO SOS
Children Villages via its Cyclus brand. In 2014,
the division’s commitment focused on child
education in Madagascar. For each Cyclus
design notebook ordered by its customers and
partners, Arjowiggins Graphic sponsored one
year of schooling for a child at the SOS Children
Village of Vontovorona. Thanks to the record
participation of over 3,900 customers worldwide,
the campaign contributed to funding a year of
schooling expenses for 500 children.
Antalis supported a Zulu school in South Africa
by donating paper to a local artist whose
artworks were then sold at an auction. The
proceeds funded the installation of three water
reservoirs that will supply water to the school’s
vegetable garden and help educate children on
personal hygiene.
Both Antalis and Arjowiggins are actively
involved in humanitarian initiatives, and
participate in a number of child-focused and
illness eradication programmes, in particular in
Bolivia, Brazil, Finland and the United Kingdom.
On health issues, Antalis has for many years
been engaged in anti-cancer initiatives and aid
to sick children in several countries. In the UK
for instance the “Wear it Pink” day is a highlight
of staff mobilisation where employees make a
donation to fly the NGO colours throughout the
day, or organise their own fund-raising events
(quizzes, etc.). Antalis also involves its
customers in this event by donating to the NGO
a portion of the sale price for purchases of a
selected product. In Lithuania, the Group
donated Priplak sheets to the NGO Rugute to
make the windmills sold to its benefit. In the
Czech Republic, Antalis mobilised by the side of
the NGO RWTTC (Running With Those That
Can’t) who provides help to disabled children in
their daily life. Participation of Group employees
in the Prague international marathon, along with
funds donated by Antalis and its employees
funded the purchase of special wheelchairs
designed for handisports. Lastly in Thailand,
Antalis supports the Operation Smile Foundation
who provides free surgery for children suffering
from facial deformities.
Sequana / 2014 Annual Report
47
Designed by
Photo credits
Photothèques Antalis and Arjowiggins©
©
Arjowiggins Healthcare – All rights
reserved
Cyril Abad/Capa Pictures
Julien Lutt/Capa Pictures
Brendan Mc Neil/Capa Pictures
Cristel Sasso/Capa Pictures
Printer
PPA MAHÉ, Imprim’Vert®, FSC® and PEFC
certified
Cocoon Silk is a 100%-recycled,
semi-matte, extra-white coated paper,
FSC® Recycled (FSC C021878) and
European Ecolabel certified (FR/011/003).
By choosing to print its annual report
on Cocoon Silk instead of non-recycled
paper, Sequana has reduced the carbon
footprint of this publication by*:
3,692 kWh of energy,
C02
This report is printed on eco-friendly
C0
paper manufactured by Arjowiggins
Graphic and distributed by Antalis:
Cocoon Silk 350 g for the cover and
150 g for the inside pages.
60,240 litres of water,
2
48
C02
224 kg of CO2, which is equivalent to:
a 2,243 km trip in the average
European car,
C02
C0
1,670
kg of landfill waste,
2,714 kg of wood.
2
* Source
Carbon footprint data evaluated by
FactorX in accordance with the Bilan
Carbone® methodology. Calculations
are based on a comparison between the
recycled paper used versus a virgin fibre
paper according to the latest European
BREF data (virgin fibre paper) available.
Results are obtained according to
technical information and subject to
modification.
Printed in France in June 2015
Sequana® All rights reserved
©
Sequana
8, rue de Seine
92100 Boulogne-Billancourt – France
Tel.: +33 1 58 04 22 00
www.sequana.com
Antalis
8, rue de Seine
92100 Boulogne-Billancourt – France
Tel.: +33 1 58 04 21 00
www.antalis.com
Arjowiggins
32, avenue Pierre Grenier
92100 Boulogne-Billancourt – France
Tel.: +33 1 57 75 92 12
www.arjowiggins.com

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