Sequana CSR Report 2014
Transcription
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