EDITOrIalA New Name, New Ambitions

SDV is now Bolloré Logistics. Our new name reflects the commitment of our long-standing shareholder - the Bolloré Group - to the transport and logistics sector. Created in 1822, Bolloré Group ranks among the world’s 500 biggest companies, with a turnover close to €11 billion in 2014.

The Bolloré Logistics brand brings together our shared values of innovation and entrepreurial approach with a long-term vision, while affirming our corporate and social responsibility. We are a major player in multimodal transport and logistics, and are part of a global structure - Bolloré Transport & Logistics - which has three other business units: port terminal management, operation of rail concessions and oil logistics, and distribution.

Bolloré Logistics assists its clients’ international growth, delivering performance-generating solutions that combine innovative design with flexible execution capabilities. Our operational excellence comes primarily from our expert teams, who are proactive and committed to constantly improving our services. They are supported by an integrated information system that provides visibility and end-to-end supply chain management.

Thierry EhrenbogenBolloré Logistics CEO

Edition N° 15 / March 2016

LIVE

a brand ofbolloré transport & logistics

BOLLOré LOGisTiCs’ NEWs - P2

NEWs frOm ThE GrOup - P5

ExpErTs’ pOiNTs Of ViEW - P6

Air & sEA TrENds - P9

mArkET fOCus - P10

bollore-logistics.com

contents

BOLLOré LOGisTiCs’ news

2

21.01.16

Bolloré Logistics announced a stake in AmC Company (Agence maritime Cognaçaise), which is also present in the us since 1996 and in spain since 2011.

management remains entrusted to Edouard Wollenweber and Antoine Wollenbewer for the us subsidiary. henri Le Gouis, CEO Europe of Bolloré Logistics, becomes president of AmC.

AmC will continue to operate with major french wines and spirits groups, as well as french and foreign traders on its behalf. With this equity participation, Bolloré Logistics expands

its offering in the wines and spirits sector. “Our strategy is to develop value-added services, adapted to the sectorial needs of our customers, such as pick-up tool in the cellars supported by a specialized information system,” says henri Le Gouis. AmC will also support the sales forces of Bolloré Logistics in wine regions like Alsace or Bourgogne, in france.

founded in 1960 in Cognac, france, AmC is one of the leading french international logistics companies of wines and spirits with a turnover over of 30 million Euros in 2015 and a volume of 15,000 TEus.

BOllOrÉ lOGISTICS STrENGTHENS ITS WINES

aND SPIrITS OFFEr BY aCQUIrING STaKE IN

aMC COMPaNY

3

Bolloré Logistics Philippines became the 15 country in Asia-Pacific to receive the full Integrated Management System (IMS) certification.

th

05.02.16

Bolloré Logistics along with five pilot companies*, obtained the new “Biodiversity commitment” certification launched this year by Ecocert, global leader in certification of organic farming and cosmetics, and a recognized player in the certification of environmental management systems and fair trade.

isabelle Vampouille, director of Csr/sustainable development Bolloré Logistics, is enthusiastic: The Biodiversity Commitment certification awarded by Ecocert validates and rewards the strategy that the Csr/sustainable development management team has been putting in place since 2013. The Ecocert audit was conducted in November 2015 in france, at the company’s headquarters in puteaux, as well as at its operational sites in paris CdG and Nantes, which are already BiodiverCity® certified with respect to sustainable construction. it has made it possible to verify the coherence of the biodiversity management system that has been developed, the concrete steps taken at the sites, together with a number of ongoing projects, such as the construction of a 36,000 sqm green hub in Le havre.

End of 2014, Bolloré Logistics had already formalized its commitment through its Biodiversity Charter.

*The other companies are Guerlain, séché Environnement, Gsm, Veolia and sanef.

BOllOrÉ lOGISTICS PIONEEr INBIODIvErSITY COMMITMENT IN BUSINESS

26.01.16

Bolloré Logistics’ office in Nice, france, operated three An-124-100 cargo flights for the Exomars space exploration programme that aims to discover any traces of life on mars.

The flights, which operated on december 18, 20 and 22 for consignor Thales Alenia space italia, departed from Turin in italy to kazakhstan’s Baikonur Cosmodrome via moscow’s sheremetyevo Airport.

Volga-dnepr’s cargo included the Entry, descent and Landing demonstration module (Edm) as well as the Trace Gas Orbiter (TGO) which will be launched into space in the first mission in march 2016.

Exomars is a joint programme between the European space Agency and the russian space agency, roscosmos. The 2016 mission will reach mars in October and aims to demonstrate Europe’s ability to land a probe on the red planet.

BOllOrÉ lOGISTICS HElPS DISCOvEr IF THErE IS lIFE ON MarS

BoLLoré LoGiSTicS WiNS ThE “ouTSTANDiNG coNTriBuTioN To ThE AfricAN hEALThcArE iNDuSTry” AWArD

coLLABorATioN oN ProJEcTS Such AS iN ThE DEMocrATic rEPuBLic of coNGo (Drc) WiTh ThE uNiTED NATioNS DEVELoPMENT ProGrAMME (uNDP)

28.02.16

The Africa healthcare in London is the largest African healthcare event held in Europe with a focus on the latest healthcare developments across Africa, existing reform measures and the impact of the considerable investment currently forecast in Africa’s healthcare sector.

isabelle hagner, healthcare industry and NGO director for the Africa region, and the teams helped Bolloré Logistics stand out from the rest of the nominees by focusing on the strengthening of the public health systems, thereby demonstrating Bolloré Logistics’ pursuing strategy to provide sustainable solutions related to healthcare distribution on the African continent.

and in malawi with the National Aids Commission and The Global fund were presented to illustrate our continuous efforts on the deployment of operations to support public health systems in Africa.

ALSo iNThE NEWS

sOLAs Convention requirement

on bollore-logistics.com

participation in Alstom’s “supply Chain for Growth” program

Awards from the Cameroonian Customs

successful run at the singapore Airshow 2016

BOllOrÉ lOGISTICS aWarDED lOGISTICS CONTraCT FOr aFrICa’S larGEST WIND POWEr PlaNT

22.03.16

The project, which involves installation of 365 wind turbines supplied by Vestas Wind systems, one of the main contractors for the project, will supply an additional 310mW of power to kenya’s national supply grid. This is the largest single private investment in kenya’s history (€600 million).

As the logistics provider for the project, the scope of Bolloré Logistics is to ensure customs and regulatory compliance, handling and transport this extra-ordinary cargo from the port of mombasa to the project site, located in a remote area in Loyangalani district, marsabit West County, and a distance of 1,220 km.

The first shipment has been discharged with success, and land transport operations are now ramping up to reach cruise speed. it is a real challenge for Bolloré Logistics because of a very tight schedule as well as operational constraints due to the remote location of the site.

By the end of the project, in terms of volumes, Bolloré Logistics will move 160,000 freight tons of cargo in 1,376 truckloads, of which 730 are out of gauge.

18.03.16

Valeo has recognized Bolloré Logistics in india as one of their best logistics service providers in 2015, with sanjay Goel, india CEO, receiving the award on behalf of the Group during their india supplier Convention in Chennai, india, from the hands of Laure Lemarchand-Testu, Group Commodity director at Valeo.

Bolloré Logistics brings dedicated transport solutions for various Valeo plants in india since 2014. Thanks to these tailored solutions and value-added services such as personalized consolidation and customs clearance engineering, Bolloré Logistics heavily supports the fluidity of Valeo india’s supply chain.

“We are honored to have been recognized by one of our key customers for our implication, commitment, and teamwork in a complex country like india,” mentions rémi Lefevre, regional Business manager for south Asia. Lefevre adds: “This is a direct consequence of a true group effort from our global, national and local - Chennai, pune and Ahmedabad - teams.”

valEO aWarDS BOllOrÉ lOGISTICS IN INDIa FOr THE “BEST SUPPlY CHaIN PErFOrMaNCE IN 2015”

4

Bolloré Logistics has been awarded a contract to provide project logistics services for the Lake Turkana Wind Power Plant, Kenya.

news frOm ThE GrOup

BOllOrÉ POrTS HaS WON THE TENDEr PrOCESS FOr THE

CONCESSION OF THE FUTUrE POrT of Dili in Timor-lesTe

5

Bolloré Energy will invest €50 million to redevelop the site, which is scheduled between now and 2017.

Bolloré Ports will build and operate the Dili Deepwater Port in Timor-Leste.

Nicole klein, the prefect of the Normandy region, signed the deed transferring the authorisation to operate the stockyard known as “Le milthuit” to Bolloré Energy on february 11, 2016. As the legal operator of these facilities, the company is now bound by the related security obligations.

01.02.16

This award is in keeping with the strategy implemented by Bolloré Transport Logistics, which wants to develop its various areas of expertise in markets where the Group already operates.

knowledge of the logistics market in Timor-Leste, where the Group has been expanding mits operations for the past 16 years, enabled it to draw up the best bid. Accordingly, Bolloré ports will build and operate the dili deepwater port as part of a public-private partnership with the Timor-Leste Government Authorities.

This ambitious project provides for the construction of a 630 metre-long and 15-metre-deep wharf, and of a landside area covering 24 hectares.

This port platform, which will be compliant with international standards, will be equipped with cutting-edge container handling and general cargo equipment, which will specifically enable the handling of container ships with a capacity of over 7,500 TEus.

The project will provide a boost to the country’s economic growth, by encouraging trade with Asia and the rest of the world, for the benefit of the entire population of Timor-Leste.

The partnership agreement will be signed for a period of 30 years. The project will create over 350 direct jobs, and will enable new companies to set up in the future port zone.

11.02.16

584,000 tonnes of storage capacity for petroleum products (gasoline, petrol, heating oil, and jet fuel) will ultimately be made available to customers, primarily superstores and hyper markets, and dealers like Total, as well as to sAGEss (Limited Company for the storage of strategic Oil reserves).

Bolloré Energy, the leading independent distributor of heating oil in france, will also consolidate its distribution in the area thanks to this acquisition. Bolloré Energy will invest €50 million over a 30-month period in order to redevelop the site and carry out the development required for its re-use, which is scheduled between now and 2017. The fuel will therefore be able to arrive at the stockyard by ship or via pipeline, and be re-routed via road, pipeline, and ship. furthermore, the reconversion of the site into a bonded warehouse implies making the tanks compliant, as they will be measurement containers recognised and certified by LNE (french National Laboratory for metrology and Testing).

BOllOrÉ ENErGY IS SET TO TUrN a SECTION of The former refinery in PeTiT-Couronne (normanDy) inTo a sToCkyarD

Bolloré Logistics provided its expertise in the transportation of heavy parcels to Matelec Group for the construction of Tobène power plant in Senegal.

ExpErTs’ points of view

rISK MaNaGEMENT FOr INDUSTrIal PrOjECTS lOGISTICS

6

15.02.16

Bolloré Logistics created new global standard operating procedures for risk analysis of out-sized, remote-location heavy industry projects. Construction of dams, mines, pipelines, offshore platforms, energy plants and other large industrial installations frequently require enormous, expensive and -- in some cases -- uniquely manufactured components. Transporting such gigantic material to remote locations poses considerable physical challenges that are further complicated by rudimentary or ill-adapted infrastructure crossing populated areas.

“You must protect the clients’ financial and industrial interests, but also human and environmental imperatives,” explains patrice dubois, health, safety and Environment manager at Bolloré Logistics’ hsE department in paris. “You need to carefully plan route, lifting and equipment details in advance and prepare use of alternate roads if primary itineraries can no longer be used. That requires a lot of on-the-ground scouting, and considerable collaboration and coordination with the client.”

Bolloré Logistics’ integrated structure allows units in different countries and regions to share strengths with others, and forge a stronger unified approach to large project transport management.

it also facilitated the creation of uniform documentation for separate but inter-linked transport and lifting planning.

As part of that global approach, a fixed chain of management and responsibility for preparation and execution of projects is also applied at the local level, where planning and reaction to changing variables is essential. “The integrated structure allows us to capitalize on strengths across the network, and harmonize best practices,” says Audrey Becque, Bolloré Logistics’ hsE Coordinator involved in standardizing transport and lifting documentation.

A successful participation in projects with the global network came in since 2015, where Bolloré Logistics organized the transport of seven 320-ton engines and five, eight meter-high alternators for matelec’s new Tobene electrical plant. That required dismantling nine low-slung bridges and raising obstacles like power lines so 30-meter convoys could transport the 600 TEus of cargo 94 kilometers inland – protected by accompanying traffic control – over a seven-week time frame allotted.

“You need to know exactly what transport and lifting equipment will be required, but to also have visited and noted every curve, every bridge, every possible obstacle you have or may encounter along the way,” Becque says. “You also have to know who the best partners are to participate in the project so it’s safe and successful.”

The knowledge, insight and experience unified within Bolloré Logistics’ risk management structure make the Group the natural choice for clients preparing giant industrial projects.

Our Green Hub in Singapore is a 42,000 sqm building with nine floors, equipped with an access ramp at four stages. With a total of S$55 million invested, this green warehouse is the first one in Singapore to be certified both Green Mark Platinum and LEED Gold.

7

lEaN MaNaGEMENT BOOSTS FrEIGHT

FOrWarDING EFFICIENCY

07.03.16

Companies that adopted efficiency-improving lean management practices have begun demanding their business partners embrace similar performance-enhancing methods.

“it’s really the same process of increasing value by standardizing process and eliminating wasteful or less productive steps,” explains Christian Teillet, Corporate director of QhsE at Bolloré Logistics in paris.

Bolloré Logistics began implementing its lean management plan in 2015 in singapore -- its main Asian hub with 150,000 square-meters of warehousing operations and over 1,250 employees.

“innovation and productivity improvement are at the center of our company strategy”, says fabien Giordano, managing director of Bolloré Logistics in singapore. “The success of our solution team in logistics nurtured the development of a similar approach in our freight forwarding operations.”

Lean manager in singapore, ronan Le Gall, notes that human resistance to such change is natural – but also essential to overcome. To do so, he insisted on full dedication of senior managers in introducing, explaining, and observing new methods, and from operators to adopt and enhance them. in singapore, modifications involved structural rationalization that streamlined packing, storing and scanning procedures. it also introduced 5s projects to develop standardized work, clearer progress status of processing by deploying performance measuring tools.

Loose packing and anchoring, for example, was revised by introducing motorized conveyors between work areas to reduce transport time. The overall organization of the warehouse was also reconfigured to enhance efficiency

of the chain of activity in it. Time gained with that has also reduced the volume of inventory at any given time, further lowering operating costs.

The same effort went into increasing performance on the transport side of business, says Camille Jozon, head of international freight forwarding solutions in singapore.

The transport activity required the Bolloré Logistics team to improve information flows between partners along the supply chain – including shippers, freight forwarder, customs, airline or shipping line/consignee etc. -- by implementing new iT applications and tools.

for example, the company developed an electronic data interchange between its Tms (Transport management system) and brokerage vendors for export/ import permit submission and retrieval. That has augmented productivity on both sides.

Another example, “regarding shipments milestones updates, our main trucking companies are now using hand phones to update pick-up and delivery events via Qr code scanning technology,” Jozon says. “meanwhile, 90% of our airlines are interfaced to our Tms for flight take off. These new solutions avoid manual entry by Bolloré Logistics staff and increase data accuracy to customers.

That successful effort in singapore was just the first-step in a company-wide management revolution. Bolloré has begun extending similar changes to other activity centers, particularly where integrating management systems into those of clients enhances efficiencies for both.

“it’s been introduced in places like Toulouse, where aeronautic clients applied the method in their own businesses with good results,” Teillet says. “We’re expanding that to hubs worldwide.”

Bolloré Logistics had a successful run at the SingaporeA irshow 2016 earlier this February. Left: French Pavilion Inauguration. France, featured countrya this 2016 edition.

8

27.01.16

The spectacular increase of both business travel and tourism has made air transport one of the fastest-growing activities in recent decades.

One area within that bustling sector rarely crosses voyagers’ minds: the transportation and storage of dismounted jet engines flying millions of people around the globe.

The potential of impairing engines worth between $1 million and $15 million during transport is bad enough.

“Jet engines are popped off rather easily for overhaul or use by other airlines. Transport, handling and storage is central to that process, but must be done right to avoid costly damages,” says scott farrar, Bolloré Logistics usA’s Texas-based global account manager of clients including several mrOs, airframe manufacturers, and engine lessors.

Though robust and powerful when in use, the structure of jet engines leaves them sensitive to blows and shocks during transport. internal cushioning components between the cradle and base of the engine stand can actually magnify the force of transportation shocks if turbines are incorrectly fastened to the trailer.

meanwhile, though centrifugal force of a spinning turbine evenly distributes the 5,000 kg to 12,000 kg a typical engine weighs, that load becomes centered on the central shaft when it’s idle -- inflicting damage when jolted. for that reason, Bolloré Logistics requires hauling vehicles to be equipped with full air ride suspension and ensures its partners have adequate forklift, crane and storage capabilities as well.

“Once you know what procedures and precautions are necessary in this activity, you then identify the air and trucking transporters that are similarly trained, experienced and proven in handling jet engines,” farrar explains.

in addition to its high standards for moving jet engines around the world, Bolloré Logistics also assists clients with its knowledge of the unusual structure of the sector.

for example, an engine returned to an engine lessor in Japan may be sent to Germany or the uk for overhaul. it could then be sent back to specialized storage centers in singapore, the us or other places where regional clients are likely to lease additional engines are most abundant. The engine niche is more diffused globally than the wider aerospace sector, and requires specialized surface. That’s where Bolloré Logistics comes in.

paris CdG muscles up as regional import hub

soft Commodities: Next mine of African Wealth

mobile solutionsprovide real- Time services

Expanding in Africa Transporting satellites into space

raising the Bar on pharma handling

on bollore-logistics.comoThEr ArTicLES

jET ENGINE TraNSPOrT KEEPS aIr SECTOr

FlYING HIGH

Air & sEA trends

9

02.03.16

A combination of rising over-capacity, flattening demand and slowing growth in key economic regions continued driving air and sea cargo prices down in the fourth quarter of 2015, undercutting the income of sector operators.With those trends generally expected to persist in the medium-term, activity in 2016 isn’t likely to surpass last year’s disappointing results.

The over-arching problem has been China’s slowing economy, and fears it may never recover its formerly red-hot expansion rates. That has had a negative impact on raw material exports from Africa and south America that fed China’s growth, and sapped trade between Europe and those emerging economic zones. Atop that was an unexpected dip in us growth to .7% in the fourth quarter following a 2.2% rise the previous period. The dramatic drop in oil prices penalizing emerging export economies like Venezuela, Argentina, Nigeria, Angola and russia has also complicated matters.

“China has slowed, Africa and south America have gone flat, russia isn’t recovering and the u.s. had a disappointing quarter,

all of which pinched demand,” says Anne-sophie fribourg, sea freight middle Office director for Bolloré Logistics in paris.

But she and Bolloré Logistics Air freight middle Office director Claude picciotto add that the additional problem of over- capacity is one transporters have largely brought on themselves. “Capacity has been rising, and even though most major passenger airlines have reduced cargo space, new capacity being injected into the market by Gulf carriers and pure freight transporters is offsetting those cuts,” Claude picciotto says. The result was a virtually flat fourth quarter in air freight activity, and in a full-year 2015 increased of only 2.5%. But with neither the macro-economic motors certain to kick back into gear soon, nor the over-capacity problem likely to ease for many months, most estimates foresee virtually no growth in international air freight traffic in 2016.

“players outperforming the market, as we have, focused hard on satisfying current clients and winning new business – especially in China,” Claude picciotto says. “That will provide momentum continuing through 2016.”in addition, he notes, Bolloré Logistics is also adapting to changing market realities created by over-capacity. “We’ll adapt our commitments on certain routes by reducing firm capacity and going to spot options,” he says.

The situation in the maritime sector was similar to air cargo -- driven by even worse capacity excess. stalling activity on most major routes that began in the third quarter of 2015 continued into the fourth. That cut traffic growth for the year to about 2% -- half of initial forecasts. Estimates for 2016 are only slightly better, due largely to the worsening capacity problem.

Anne-sophie fribourg notes that nearly 1.7 million TEus – or 214 new container vessels -- were added to sea cargo capacity in 2015. But only one million TEus were parked by maritime transport operators last year -- generating an 8.5% net capacity increase. Around 60 new 18-22k TEu ultra-large vessels are slated to enter operation in 2016, plus numerous smaller ships expected to expand sector capacity by 4.6%.

As a result, research company drewry said 2015 produced the lowest spot rates since 2009. it believes that downward trend will persist into 2016, and forecasts sector losses exceeding $5 billion.

Anne-sophie fribourg says many shipping companies anticipate the capacity/demand disparity will start balancing out in mid-2016, allowing for price increases. But she believes the current volatility and pricing pressure will force cash-strapped companies still financing new vessel purchases to consolidate for survival. “There are already rumors of certain Asian operators nearing bankruptcy, so i expect to see considerable consolidation in the sector,” she says. “The merger of China shipping and Cosco is already underway, and we may see similar action between Japanese and south korean groups, too.”

Airfreight Hub in Paris CDG, 30,000 sqm, LEED Gold - HQE - BiodiverCity label.

over-CaPaCiTy CONTINUES TrOUBlING

CarGO

a brand of

mArkET focus

BY BOllOrÉ lOGISTICS

MExICO

1 - Bolloré Logistics’ mexico management team based in mexico City, hQ 2 - A glance at mexico City’s warehouse 3 - schlumberger foundation plant project4 - Temporary import of oil rigs in Ciudad del Carmen - muralla 4

10

Julian monjardin CEO mexicoTel: +52 55 4334 7000julian.monjardin@bollore.com

America Aguilar sales director - mexicoTel: +52 55 4334 7022 america.aguilar@bollore.com

kEyS coNTAcTS

nd rd

mexico’s $2.2 trillion economy has become increasingly oriented toward manufacturing in the 22 years since the North American free Trade Agreement (NAfTA) entered into force. its wide network of trade agreements makes it one of the most connected economies in the world, and an excellent gateway to the Americas or foreign companies.

Today, the united states’ 2 largest export market and 3 largest source of imports has free trade agreements with 46 countries, putting more than 90% of trade under free trade agreements.

Also, the growing integration of supply chains, development of energy sectors and government-to-government focus on trade facilitation will carry on, making the North American region increasingly competitive and contributing to mexican economic development and strength.

starting its formal operations in 1998 in its offices at mexico City (polanco area and the airport), Bolloré Logistics mexico has gained a reputation throughout the years for its efficient and competitive work as a logistics service provider with presence in four of the main ports and three of the main airports of the country. headquartered in mexico City (customs Airport and warehousing), they also have two other operational offices in Guadalajara and monterrey with warehousing capacities, as well as a sales office in Querétaro. in addition to traditional freight

operations (air, sea and land), Bolloré Logistics mexico also provides warehousing and distribution in méxico, close to the international Airport, and covers cross-border logistics.

its fields of expertise include Aerospace, high Tech, Automotive, Oil & Gas and industrial projects industries, among others.

As way of example, Bolloré Logistics mexico has been handling and managing the inventory of Airbus helicopter mexico for the past few years in their warehouse in mexico City, leading to manage their in-house spare parts warehouse for two years now.

recognized as an international Air Transport Association (iATA) agent, they are also part of the Customs-Trade partnership Against Terrorism (C-TpAT) program, and are isO 9001-2008 certified, in compliance with civil protection. Bolloré Logistics mexico is also certified and recognized as a Non-Vessel- Operating Common Carrier (NVOCC), an hAZmAT certified specialist, and owns a harmonized alphanumeric carrier code (CAAT) mexican license.

1 2 3 4