Corporate Presentation January 2015

Transcription

1 Corporate Presentation January 2015

2 Table of contents 1. Market environment and group positioning p.3 2. Equity story p.7 3. Logistics, transport and freight forwarding activities p Financials p Acquisition of Jacobson Companies p Appendices p.43 Disclaimer This document was prepared by Norbert Dentressangle for the sole purpose of presenting its situation on January This document may not be reproduced or distributed, in whole or in part, without the prior agreement of the Company. Norbert Dentressangle may not be held liable due to the use of this document by any person not belonging to the Company. This document does not contain any quantified forecast of results. The Company makes no commitment or guarantee that it will meet its objectives or any goal that it may state in its business plans. While the Company believes that its objectives are reasonable, readers are reminded that said targets are subject to risks and uncertainties, notably as described in the "Risk factors" section of the annual "Document de Référence" registration document. 2

3 1. Market Environment and Norbert Dentressangle Group Positioning 3

4 The European Contract Logistics market is undergoing consolidation MARKET INDICATORS MARKET SIZE & TRENDS 2013 MARKET FRAGMENTATION Germany 15bn 8,0% 6,0% 4,0% 2,0% 0,0% European market size: 62 billion (i.e.31% outsourcing ratio) Market dynamics (value growth) 7,0% 5,0% Source : Transport Intelligence UK 15 billion France 8 billion Italy 4 billion Netherlands 4 billion Spain 2 billion Russia 1 billion 3,2% 1,8% Main ND markets Europe 1,4% 0,8% 0,7% 0,3% 2,9% 2,7% CAGR European market concentration in millions 2013 Share EBITA% DHL ,4% 3,1% Kuehne + Nagel ,9% 2,3% CEVA ,3% n.c. Geodis ,3% n.c. ND Group ,2% 4,5% Rhenus ,1% n.c. Market & ND Positioning The market is undergoing consolidation, particularly in Western Europe, and shows high growth in Eastern and Central Europe ND largest markets (UK, France, Italy, Netherlands, Spain & Russia) represent a global value of 36 billion Norbert Dentressangle is a first-class player in the market, delivering strong profitability 4

5 The European Road Freight market is large and highly fragmented MARKET INDICATORS MARKET SIZE & TRENDS 2014 MARKET FRAGMENTATION 6,0% 4,0% 2,0% 0,0% 2,0% 4,0% European market size: 296 billion Source : Transport Intelligence France 34 billion 12% UK 32 billion 11% Spain 29 billion 10% Germany 59bn Italy 33bn Market dynamics (value growth) 4,2% 1,5% France / UK / Spain 0,7% 3,2% 1,0% 1,5% Europe 0,9% 1,4% CAGR 3,2% 2,5% European market concentration in millions 2013 Share EBITA% DB Schenker % 1.4% DHL % 1.4% DSV % 4.1% Dachser % n.c. Kuehne Nagel % -0.3% ND Group % 2.7% Market & ND Positioning The road freight market in Europe is highly fragmented and offers significant room for growth France, the UK and Spain (ND main markets) represent a global value of 95 billion Norbert Dentressangle operates the #1 European owned fleet, a key differentiator providing better pricing power 5

6 Apart from a few leaders, global Air & Sea Freight markets are highly fragmented MARKET INDICATORS AIR & SEA FREIGHT 2013 MARKET FRAGMENTATION Global market size: 123 billion China 13 billion 11% USA 25 billion 20% UK 5 billion 4% Global market concentration Worldwide TOP 7 players* represent a 36% market share in *:Ceva, DB Schenker, DHL, Expeditors, Kuehne Nagel, Panalpina, and Sinotrans France 4 billion 3% 25% 15% 5% 2,7% Market dynamics (volume growth) 19,2% 13,3% 14,8% 12,5% 8,2% Seafreight vol. (TEUs) Airfreight vol. (tons) 5,9% 4,4% 2,4% 1,8% 5% LTM year onyear growth 4,1% 0,6% 4,4% 2,1% 0,6% 0,3% 15% Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Market & ND Positioning Both air & sea freight forwarding markets are dominated by a limited number of major players Behind these major players, the freight forwarding market is highly fragmented, with many niche players The US, China, UK and France, (ND main markets) represent a value of 47 billion Source : Transport Intelligence 6

7 2. Equity Story 7

8 Our ambition: to become a top-tier player in supply chain management GROUP AMBITIONS Expanding geographic presence Increasing scale on our markets Widening service offering Supporting our clients wherever they operate and moving with them whenever they need us Increasing our credibility to become the go-to supply chain management expert of choice Always striving to increase our critical mass in our chosen markets Combining organic & external growth to acquire and expand our areas of expertise Developing and expanding our range of services & solutions 8

9 Milestones to create a global player: a combination of organic & external growth 1979/89 Birth & development of international Transport between Europe and UK 1994 A family group listed on the Paris stock exchange Venditelli Turnover : 61m Transport TNT Logistics France Turnover : 160m Transport & Logistics Christian Salvesen Turnover : 1.3bn Transport & Logistics TDG Turnover : 700m Transport, Logistics & Freight Fwding Schneider Log. (USA) Turnover : 30m$ Freight Fwding Fiege Italy & Spain Turnover : 130m Logistics Daher France/Russia Turnover : 80m Freight Fwding Stockalliance Turnover : 95m APC (China) Logistics Turnover : 50m Freight Fwding ,0% 8,6% 10,4% 7,0% 4,8% 5,7% 5,8% 5,3% 5,5% 8,1% 4,3% 3,4% 5,6% 0,0% 2,4% % 18% 15% 13% 10% 8% 5% 3% 0% LONG TERM GROWTH Jacobson (USA) Turnover : $800m Logistics & Transport PF Organic growth Turnover 1998 Integration of a second area of expertise : Logistics 2010 Third area of expertise with Freight Forwarding 9

10 A diversified client portfolio and a strong customer base CLIENT PORTFOLIO Very well balanced client portfolio Customer Top 10 First customer below 4% of turnover and Top 10 below 20% of turnover Very low exposure to specific customer or sector or end-market risks Key customers are both leading and innovative players in their own markets Top100 customer portfolio Other; 4% Industry; 2% Hi Tech; 2% ecommerce; 3% Metal; 4% FMCG; 4% Construction; 4% Household; 4% Special Retail; 5% Textile; 5% Automotive; 9% Retail; 30% Food; 14% Chemical; 10% Recent Gains 10

11 A robust governance, driven by a European Executive Board GROUP GOVERNANCE DISTRIBUTION OF CAPITAL 30% PUBLIC The benefits from a family owned company and a managerial organisation A supervisory board: - 10 Directors of which 6 are independent Directors - An audit committee A European Executive Board : - Hervé Montjotin, CEO 68% DENTRESSANGLE INITIATIVES + FAMILY - Malcolm Wilson, Logistics Division MD - Luis Angel Gomez, Transport Division MD - Patrick Bataillard, CFO - Ludovic Oster, HRD 11

12 Ambitions and strategy aligned to different business development and maturity BUSINESS MODEL Market Global, highly fragmented, but with few very large players Freight Forwarding Development Mix of Greenfield development and acquisitions (8) since 2010, which enabled to achieve a suitable geographical coverage Outlook Consolidate our market position, deploy cross-selling actions, gain critical mass on key trade lanes and verticals, focus on skills, IT, and processes Logistics Market Local to global, undergoing consolidation in Europe Development First-class player in Europe (strong presence in Western Europe), and strategic developments outside Europe (Russia, Saudi Arabia, Brazil) Outlook Increase scale on our key European markets, deploy our know-how on growth sectors such as ecommerce, go global through accompanying key customers and make strategic acquisitions in new geographies Transport Market Local to regional, large and highly fragmented and regulated Development Leading position on key markets in Europe (France, UK and Spain), ND operates the #1 European owned fleet, enlarged service offering Outlook Expand the distribution network in Europe, manage the international FTL shift from Western to Eastern Europe, increase scale on Central European markets, develop Key PL solutions 12

13 3. Logistics, Transport and Air & Sea Freight Forwarding businesses 13

14 The Group operations are organised around 3 divisions (2013 annual figures) BUSINESS MODEL LOGISTICS TRANSPORT Air & Sea Freight Forwarding 1,950m in revenue 87.4m EBITA 2,014m in revenue 53.0m EBITA 145m in revenue 1.3m EBITA 23,580 employees 281 sites in 16 countries + Russia & Saudi Arabia Total warehouse surface area of 7.8m sq meters (1) Temperature controlled volume of 3.6m m 3 13,380 employees 182 sites in 12 countries Number 1 vehicle fleet in Europe with 8,000 motorised vehicles (2) 94% Euro V & VI + Morocco 720 employees 57 offices in 14 countries 8 acquisitions in 4 years Proforma revenue estimated at ca. 220m Seafreight 59% of revenue, with a volume of 60,000 TEUs Airfreight 32% of revenue, with a volume of 24,000 tons (1) incl. 0.6m for Transport operations (2) incl. 2,000 dedicated to Logistics 14

15 Logistics at a glance - 30/06/2014 One of the few European players with an increasing international profile (the UK represents 41% of the total sales of logistics business) 1,068m revenue (before interco TO) 37.7m EBITA Contracted business (4 years average length) 23,600 employees 281 sites across 15 countries 7.8m m² warehouse space 3.6m m 3 temperature controlled volume 15

16 Logistics: mastery of key logistics skills throughout Europe Ambient and temperature-controlled logistics Global and industry solutions Warehousing and inventory management 480m Order preparation 660m Value-added services 178m Downstream transport management 465m o/w 200m of turnover in e-commerce & 370m of turnover in temperature controlled The highest safety and quality standards Service: ISO 9001 (66%of revenue) Food safety: ISO (16 warehouses) & HACCP (39 warehouses) Staff safety: ISO (33 warehouses) Safety of medical devices: ISO (1 warehouse) One of the few European players with an increasing international profile (with integration of Jacobson, US will represent 15% of total sales) Business is 100% contracted, and retail & FMCG sectors are key commercial targets 16

17 A consistently growing business with major positive scale effects since 2008 Turnover In M Long term revenues and operating income (EBITA) EBITA In M % of turnover Turnover Logistics EBITA Logistics 8,0% 6,0% 4,0% 3,9% 4,0% 4,5% 5,1% 5,1% 3,8% 5,1% 5,0% 5,5% 5,7% 3,6% 4,2% 5,1% 5,1% 4,4% 4,5% 2,0% 0,0% EBITA %age Logistics 17

18 A rigorous management structure, developing strict cost controls COST STRUCTURE 100% 90% 5,1% 5,0% 5,5% 5,7% 3,6% 4,2% 5,1% 5,1% 4,4% 4,5% Logistics Division cost structure % 18% 17% 16% 15% 18% 16% 16% 17% 18% 18% 70% 60% 28% 28% 29% 30% 21% 23% 24% 22% 22% 20% Operating profit 50% Other (overheads, etc.) 40% Subcontracting & transport 30% 20% 44% 45% 45% 46% 50% 51% 52% 50% 52% 53% Rental costs 10% Personnel expenses 0%

19 Transport at a glance - 30/06/2014 A major European player with robust and mature operations in France, United Kingdom and Spain, and with an improved network coverage and increased presence in Central and Eastern Europe 1,067m revenue (before interco TO) 26.9m EBITA 13,400 employees 182 sites in 13 countries #1 vehicle fleet in Europe with 8,863 tractor units operated* Of which 5,800 owned fleet Europe's cleanest vehicle fleet 95% EURO V & VI 54,000 TCO 2 less since 2010 Each driver runs an average 550,000km without causing accidents * Plus 2,000 spot sub-contractors 19

20 KeyPL & Transport Organisation Transport: focus on the development of value-added B2B service offerings Domestic/International FTL & Cross-Channel Dedicated fleet Domestic/International Pallet Network * FY 2013 / To be added: 53m of warehouse storage associated with transport services A major European player with robust and mature operations in France, United Kingdom and Spain, and with an improved network coverage and increased presence in Central and Eastern Europe 20

21 Transport: a resilient and profitable profile over the past 15 years Turnover In M Long term revenues and operating income (EBITA) EBITA In M % of turnover 8,0% 5,9% 6,0% 4,0% 2,0% 3,8% 4,5% 5,3% Turnover Transport 4,4% 4,4% 4,9% 2,9% EBITA Transport 5,0% 3,9% 1,7% 1,9% 2,7% 2,4% 3,0% 2,6% 0,0% EBITA %age Transport 21

22 A rigorous management structure, developing strict cost controls COST STRUCTURE 100% 90% 4,9% 2,9% 5,0% 3,9% 1,7% 1,9% 2,7% 2,4% 3,0% 2,6% Transport Division cost structure % 70% 26% 28% 32% 32% 32% 34% 37% 40% 41% 43% 60% Operating profit 50% Other (overheads, etc.) 40% 26% 26% 25% 26% 24% 21% 24% 22% 22% 20% Subcontracting & disbursements Vehicle costs, including fuel 30% Personnel expenses 20% 34% 34% 33% 31% 32% 33% 31% 29% 29% 29% 10% 0%

23 Air & Sea Freight Forwarding at a glance - 30/06/2014 Launched from scratch in m revenue 0.8m EBITA 659 employees 53 offices across 14 countries 24,000 Tons Air freight 60,000 TU s Sea freight Strong position in the Russian market Member of the WACO global network 23

24 Freight forwarding: revenues and operating income (EBITA) Turnover In M ,0 1,3 0,3 12 0, Turnover Air & Sea EBITA Air & Sea % of turnover 2% 3% 0,3% 0,7% 0,9% % 6,7% EBITA %age Air & Sea 24

25 4. Group Financials 25

26 Consolidated income statement and contribution by division Income statement In m Transport Logistics Air & Sea Conso 31/12/13 Conso 31/12/12 Total revenue Consolidated revenue * 2,014 1,947 1,950 1, ,032 3, % EBITDA Operating profit before goodwill (EBITA)** % % % % % 0% EBIT % % Net financial expenses Income tax Associates Minority interests (26.7) (36.7) (1.5) (0.3) (32.2) (26.8) (0.0) (0.8) Net income % % 1% * Breakdown by Division is net of intercompany revenue 26

27 Consolidated turnover for the first 9 months Strong momentum across all activities Q revenue In m Transport Q YTD Q YTD Change LfL * Transport % +3.7% Logistics % +6.7% Air & Sea % +0.8% Inter-divisions (62) (59) n.a. n.a. Consolidated Turnover % +5.1% * Percentage change at a constant scope and exchange rate 27

28 Group LT EBITA Evolution Long Term profitability achievements EBITA ,4% 4,1% 3,9% 5,2% 4,6% 4,1% 4,9% 3,7% 5,2% 4,4% 3,2% 3,0% 3,7% 3,6% 3,7% 3,5% % 7% 6% 5% 4% 3% 2% 1% 0% EBITA %age EBITA Highly sustainable profitability ratios EBITA %age comprised in a 3% to 5% range since 15 years EBITA %age maintained to 3% in 2009 despite the strong economic downturn 28

29 Long-Term consolidated cash flow statement (5 years) Cash-flow In m Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Cash flow Change in operating WCR UK pension fund financing (28) (13) (11) 196 (36) (10) Net cash flow from operations CAPEX (net of disposals) Sales of warehouses and sites Acquisition of a subs., net of cash acquired - - (122) 30 (288) Net cash flow from investing activities (64) (86) (380) (73) (66) Free Cash Flow (before external growth) Dividends Financing operations Purchase of own shares - - (11) 176 (6) (93) 23 (3) (12) (70) (3) Net cash flow from financing activities (38) (43) 159 (85) 59 (54) 43 (54) Forex impact Change in cash (39) Cash available at period end (15) 81 (7) 29

30 Simplified consolidated balance sheet at 30 June 2014 Balance sheet GOODWILL & INTANGIBLE 740m Goodwill 611m Intangible incl. customer relation 129m EQUITY 607m PROVISIONS & OTHERS 276m TANGIBLE & OTHER NON CURRENT ASSETS 607m Tangible fixed assets 524m Other fixed and non current assets 83m NET FINANCIAL DEBT 551m WORKING CAPITAL 87m 30

31 In m Consolidated net financial debt and projected amortisation of gross debt Estimate Group Group Acquisition debt Revolving facility ( 400m max) Asset financing Euro Private Placement GROSS FINANCIAL DEBT 1, CASH & CASH EQUIVALENTS NET FINANCIAL DEBT 1, Evolution of 2014 estimated gross debt Asset financing Acquisition debt Revolving facility Euro PP 0 31/12/ /12/ /12/ /12/ /12/ /12/

32 Strong track record of managing leverage Leverage Acquisition UTL Seroul 1,6x 1,6x 1,3x Acquisition Stockalliance 0,4x 1x 0,5x Acquisition TNT Logistics Venditelli 1,3x 1,4x Acquisition Christian Salvesen 0,8x Acquisition TDG APC Beijing Acquisition Jacobson Acquisition Fiege Italy/Spain Daher Acquisition Nova Natie John Keells (estimate) Net Financial Debt Leverage ratio 3,5x 2,8x 2,3x 1,8x 2,5x 2x 1,8x 3,2x 4 3,5 3 2,5 2 1,5 1 0,5 0 32

33 Medium-term historical trends Key financial indicators MEDIUM TERM KPIs Strong profitability Resilient business model ,0% 3,7% 3,6% 3,7% 3,5% 6% 4% 20% 15% 10% 11,3% 14,9% 12,0% 11,7% 12,7% % 5% EBITA EBITA %age 0% 0% Capital Employed avg ROCE 0 4% 3% 2% Tight capex monitoring 3,4% 2,9% 3,0% 2,4% 1,3% Sound cash conversion 58% 60% 62% 52% 78% 140% 120% 100% 80% 60% 1% 0% Capex Capex %age EBITDA FCF/EBITDA 40% 20% 0% 33

34 5. Acquisition of Jacobson Companies 34

35 Transaction Overview Norbert Dentressangle has acquired Jacobson Companies, the #5 US contract logistics provider in the US Founded in 1968, Jacobson is the fifth largest contract logistics provider in the US, with a highly complementary asset-light transportation offering Extensive US network, spanning 142 locations with over 33 million square feet of warehouse space; 84% of locations are dedicated facilities Long-standing relationships with blue-chip and regional customers : customer retention rate of 95% Expected 2014 gross Revenue of ~$800mm, overall EBITDA margins of ~10%, with low capex Led by proven US management team which will oversee Norbert Dentressangle s US operations going forward Immediately positions Norbert Dentressangle as one of the top 5 players in the fast-growing US 3PL market Purchase consideration : $750 million initial consideration at close, all funded with cash resources and Norbert Dentressangle s credit lines Additional capped earn-out based upon near term performance =>Purchase multiple is approximately 9x EBITDA 35

36 Strategic Rationale Accelerates Norbert Dentressangle s growth ambitions to become a top player in global supply chain management +15% in annual revenue growth reaching 5 Billion The group is scalable in the US logistics & transport market with US$800 million in gross revenue Enhances Norbert Dentressangle s growth and profitability Revenue synergies leading to cross-selling opportunities to both sets of customers Sharing best practices in contract logistics EBITDA Margin enhancing in year 1 after acquisition Provides entry into the attractive US 3PL market Immediately becomes one of the top 5 players in the US contract logistics market with nationwide coverage US logistics market expected to grow faster than Europe due to higher GDP growth and less mature outsourcing profile Provides geographical and risk diversification Mitigates impact of any European-specific events Provides alternative revenue stream The transaction is earnings accretive and maintains Norbert Dentressangle s sound financial structure

37 Jacobson Business Overview #5 value-added warehousing 3PL provider in North America with integrated domestic transportation management capabilities Transport Revenue Expected to generate ~$800mm in Gross Revenue and ~$80mm of EBITDA in 2014 Logistics Operates through two segments: Contract Logistics Services: manages 142 facilities with 3 million m² of warehouse space Transportation Logistics Services: asset-light transportation network with 350+ tractors and 1,225 trailers Adj. EBITDA by Segment (1) Services customers within the food & beverage, chemical, life sciences, CPG, retail, consumer electronics, durable good and automotive industries Transport Logistics Strong trade record : EBITDA 9,5% of sales in 2013 EBITA 7,5% of sales in 2013 (1) Excludes allocation of corporate overhead 37 37

38 Jacobson s nationwide coverage Well managed portfolio of predominantly dedicated, leased warehouses, most of which are linked to the customer contract duration West: 12 sites Midwest: 58 sites Northeast: 32 sites Leasing of warehouses compliant with Norbert Dentressangle s strategy of low real estate assets Dedicated vs. Shared Facilites Shared 16% Dedicated 84% Southwest: 58 sites Southeast: 18 sites Regional Mix Dedicated DC Shared User DC Offices² West 9% Northeast 25% Southeast 11% Southwest 14% Midwest 41% 38

39 Strong and well balanced customers Revenue Concentration by Vertical portfolio Chemicals 18% Agriculture and others 16% Food & Beverage Durable Goods CPG 12% Consumer Packaged Goods Primary Verticals and Representative Clients Durables 19% Food and Beverages 35% Chemicals Revenue Concentration by Customer Agricultural Products Others 32% Top 10 41% % % 39

40 Jacobson s Positioning among primary 3PL competitors #4 Largest US Value-added Warehousing Provider with National Footprint Warehouse Est. Net Company Space (mm ft 2 ) Revenue 99.0 $2,500 Perceived End Market Capabilities by Service Offering Warehousing / Distribution Packaging / Kitting F&B CPG Chemical Ind / Agri F&B / CPG Chemical ,009 Strong Market Share in Food and Beverage and CPG Differentiated Platform in Chemicals Dedicated Facilities with Long-Term Anchor Tenants , Offers Complementary TMS and Dedicated Trucking Services ,038 1,100 (1) (1) Gross revenue due to lack of disclosure. Source: Armstrong and Associates; Company reports; Company websites; Transport Topics

41 Enhancing geographic and business transformation 4% 45% 65 % Breakdown of turnover by business line TRANSPORT LOGISTICS AIR&SEA USA Becomes the 3rd largest country for Norbert Dentressangle Breakdown of turnover by geographic area FRANCE OUTSIDE FRANCE 35 % 51 % Others 16% France 35% 14% 1998 A second area of expertise is integrated: Logistics Norbert Dentressangle doubles in size through the acquisition of the British company Christian Salvesen 2010 Launch of a third area of expertise: Air & Sea 2014 PF Spain 9% Revenue: 5 billion Operations in 25 countries 43,200 employees worldwide UK 26% Split in turnover per country 41

42 CONTRACT LOGISTICS 52% TRANSPORT 44% FREIGHT FWD 4% 5 billion Annual turnover 5 continents 25 countries 43,200 employees 9,650 vehicles 662 sites 10,800,000 m 2 warehousing * Pro-forma figures including Jacobson

43 6. Appendices 43

44 6.1 Financial statements 44

45 Consolidated income statement 45

46 Consolidated balance sheet 46

47 Consolidated cash flow statement 47

48 6.2 Corporate Social Responsibility & Sustainable Development 48

49 Norbert Dentressangle CSR approach as a key differentiating factor CSR APPROACH CSR initiatives aligned with business strategy Leverage gains in reputation and legitimacy Strong contribution to additional business The Group banks on safety and depolluting Build a responsible brand Reputation acts as a marketing differentiation strategy Attract talents and increase workers retention rate Costs of CSR activities are much less than potential benefits Strong CSR has positive impact on business & financials through enhanced reputation As a pioneering company in its sector, Norbert Dentressangle included its sustainable development approach in its strategic goals as far back as ,251 vehicles 600 millions kms travelled each year 7.8 million m2 warehousing 37,835 employees Reduction of greenhouse gas emissions Road safety Environmental site management Development and internal promotion 49

50 Reducing greenhouse gas emissions targets and initiatives (2013 annual figures) GAS EMISSIONS Greenhouse Gas Emissions Key Targets and Initiatives Fleet of vehicles : 7,251 Breakdown of Euro standards 75% 6% 19% Euro V EEV Euro V Euro III & IV CO 2 emissions 676,950 Tonnes CO 2 performance in grams per tonne.km Division Change Transport % Logistics % Total % Reducing greenhouse gas emissions Less fuel consumption - Driver training to efficient driving - Technical improvement of vehicles - Testing new alternative technologies Improved use of vehicle capacity (payload & space) Better transport flows optimisation, through multimodal solutions Measuring greenhouse gas emissions Our in-house designed C0 2 calculator designed in partnership with Ademe French government body 50

51 Road safety is part of the Norbert Dentressangle DNA ROAD SAFETY With our Safe Driving Plan, Norbert Dentressangle has been committed to managing road safety risks The aim of the Safe Driving Plan: avoiding accidents by improving driver behaviour 340 trainers dedicated daily to road safety A Norbert Dentressangle driver travels 550,000 km on average without causing an accident. Member of the European Safety charter 51

52 Environmental site management at Norbert Dentressangle SITE Management Key Environmental Facts & Figures Key Targets and Initiatives Transport Division 86% of energy consumed is primary, i.e. vehicle fleet s fuel consumption 620,000 m2 on 182 sites Logistics Division 7,800,000 m2 & 3,900,000 m3 on 281 sites ISO 9001 certifications 64% of the sites ISO certifications 49% of revenue 69 warehouses under food safety certifications Electricity consumption 332 million kwh Gas consumption 11,6 million m3 Generation of wastes 53,000 Tonnes 87% is sorted, and 76% is recycled Norbert Dentressangle has defined an environmental management standard which covers several dimensions - Regulatory conformity - Monitoring and measurement of energy and water consumption - Monitoring and measurement of emissions and waste Norbert Dentressangle monitors the percentage of sites that have been brought into line with the defined environmental standard and aims to bring 100% of sites up to this standard 52

53 Key social and human resources indicators HUMAN RESOURCES Headcount at 31-Dec-13 : 37,835 Key Social / HR Facts & Figures 62% 2% 36% Transport Logistics Freight Fwing Group s employees average age 41 years Average seniority 7 years Permanent contracts employment 92% Voluntary turnover rate 6,7% 23% 3% 35% France UK Rest of Europe New recruitments in ,329 Internal promotion (managers) 60% Absenteeism rate 5,23% 19% 39% 10% 44% 27% Asia/America Drivers Workers Employees Executives Collective bargaining agreement coverage 75,4% (100% in France) Staff training investments in m Via its adhesion to the Global Compact, the Group has committed to comply with and promote its 10 principles 53

54 Human resources: the key success factor of Norbert Dentressangle's growth HUMAN RESOURCES The Group is highly skilled in integrating acquired businesses and staff Accumulated experience through more than 35 acquisitions during the last 20 years In 2013, integration of 1,140 new employees following the acquisitions of logistics businesses of Fiege in Italy, Spain and Portugal, and of the freight forwarding business of Daher in France and Russia Hands-on employee support Acceleration of the Red Management training programme launched in 2010, 2000 managers trained in 2012 in Europe Deployment of the Red Graduate Programme, with the integration of 20 high potentials each year A specific initiative in Logistics in France A JV set up with Ares, a French social integration association, dedicated to the training of disabled and/or underprivileged people to logistics jobs Log Ins is a logistics company developing essentially co-packing and e-commerce service offerings Today Log Ins already employs 15 people and is based in Paris area 54