delivering excellence to our customers - sequana...race 2012 was launched in 2010 and is focused on...

ANNUAL REPORT 2010

Delivering excellence to our customers

01 A FEW WORDS FROM THE CHAIRMAN

02 ANTALIS

04 ARJOWIGGINGS

06 GEOGRAPHIC COVERAGE

STRATEGY

08TOP-RANKING

POSITIONS

10 INTERVIEW WITH THE CEO

12 KEY FIGURES

14 BOARD OF DIRECTORS

17 EXECUTIVE COMMITTEE

18 STOCK MARKET INDICATORS

BUSINESSES

20UNIQUE PRODUCTS

AND SERVICES

22 DISTRIBUTION - ANTALIS

28 PRODUCTION - ARJOWIGGINS

SUSTAINABILITY

32 CORPORATE

COMMITMENTS

34 THE ENVIRONMENT

38 HUMAN RESOURCES

40 SAFETY

42 SPONSORSHIP

With 12,900 employees

in more than 50 countries,

Sequana serves corporate

clients and printers across

the globe.

Sequana is a major player in the

paper industry, boasting top-ranking

positions in each of its businesses:

– No. 1 in Europe and No. 4 worldwide

in B2B distribution of paper and

packaging products (Antalis).

– No. 1 producer of creative and

technical papers (Arjowiggins).

Sequana’s strategy is focused on

strengthening its market positions

in order to create value for all of its

shareholders. The Group’s goals are to

refocus on distribution over the long term

and to participate in the consolidation

of the paper industry in order to carve

out leading positions for its industrial

businesses on their markets.

A global paper group committed to

sustainable development, Sequana

delivered sales of €4.3 billion in 2010.

€4.3 billion

in sales in 2010

2.2 million tonnes

of paper distributed each year

by Antalis

1.3 million tonnes

of paper manufactured each year

by Arjowiggins

This report is printed on Cocoon Silk, 100% recycled extra-white coated paper, FSC® and European Ecolabel certified. The cover is printed on Cocoon Silk 350g and the inside pages on Cocoon Silk 150g. Cocoon Silk is a product and a brand of Arjowiggins Graphic and is distributed by Antalis.

CONTENTSPROFILE

The Group’s results have improveddespite the tough market conditions In a market beset by contrasting demand patterns and sharp

increases in raw material prices, particularly paper pulp,

Sequana delivered a satisfactory performance in 2010.

The Group successfully dealt with spiralling raw material costs

by implementing a series of selling price increases across its

distribution and production businesses which helped boost

operating performance by nearly 8%. Antalis weighed in with a

17.8% increase in its recurring operating income which reflects

a deliberate strategy to enhance its gross margin. There was a

marked improvement in consolidated net income year on year.

2010 witnessed major changes to our Group: the sale of

Arjowiggins’ Decor and Abrasive businesses and the sale of

Antalis Office Supplies in Spain and Portugal were initiated

in late 2010 and completed in early 2011 for an enterprise

valuation of €120 million. The proceeds from these divestments

reflect the quality of Group assets and the effectiveness of

our strategy designed to create value for our shareholders.

Sequana’s Board of Directors has therefore decided to

recommend a dividend payment of €0.40 per share at the Annual

Shareholders’ Meeting, representing an increase of 14% on 2009.

Given the internal measures taken to deal with the relentless

increase in raw material prices, I am very confident in the Group’s

ability to deliver an operating performance that is ahead of 2010.

Tiberto Ruy Brandolini d’Adda,

Chairman of the Board of Directors

1Sequana / Annual report 2010

A FEW WORDS FROM THE CHAIRMAN

No. 1 in Europe and No. 4 worldwide in B2B distribution of paper and packaging products

FOUR BUSINESS SEGMENTS

Print

Coated and non-coated papers, creative papers, envelopes, specialty papers (carbonless, self-adhesive paper), etc.

Offi ce

Reams, envelopes, consumables.

Packaging

Standard products for packaging and protecting goods (kraft paper, bubble wrap, cardboard boxes, strapping machines, packaging, etc.), bespoke technical solutions (anti-corrosion protection), etc.

Visual communication

Board, plastics and paper for point-of-sale advertising, signage, store and car window displays, banners, etc.

LEADING POSITIONS

No. 1 in the Baltic States, Finland, France, Hungary, Ireland, Norway, Poland, Slovakia, South Africa, Switzerland, etc.

No. 2 in Austria, Belgium, the Czech Republic, Denmark, the Netherlands, Romania, Spain, Sweden, Turkey, the UK, etc.

BROAD RANGE OF CLIENTS

More than 230,000 customers around the world:

– printers, publishers– companies and government

agencies– professionals specialised

in signage systems– industrial firms

€2.9 billionin sales

6,700employees in 54 countries

20,000deliveries a day in Europe

130distribution centres

Sequana / Annual report 20102

GROUP / Antalis

OCTOBER

Masterline®: packaging with the Antalis touchAntalis now provides an exclusive range of standard industrial packaging machines for the European market under its own Masterline® brand that includes seven models for strapping and shrink wrapping. The full range was available in France, Germany, the Netherlands and Belgium at the end of 2010 and it will be rolled out to 15 other European countries in 2011.

DECEMBER

“Just ask Antalis”At the end of 2010, Antalis unveiled its new identity in various media, including a short fi lm.The campaign focuses on the breadth of Antalis’ offering, services and solutions. “Just ask Antalis”, the Group’s new baseline, stresses that as the partner of choice for paper, viscom and packaging, Antalis can provide customer solutions from A to Z.

JANUARY

RACE 2012 - aiming for excellenceRACE 2012 was launched in 2010 and is focused on delivering excellence to customers. It harnesses the energy of all employees and is fi rst and foremost a vector for boosting the Group’s growth and profi tability through fi ve key priorities: customer focus, expansion into growth markets, operational excellence, services and solutions, and people development. It uses a new marketing approach that combines more effi cient procedures for managing customer relations, tighter coordination between different sales channels, and the widespread application of CRM tools. RACE 2012 has been backed by major investment in training and particularly the creation of the Antalis Sales Academy which trains the sales teams in providing excellent customer service.

DECEMBER

“All you need is Olin”

“Olin”, Antalis’ new premium offset brand is a contraction of “all you need is in” and it was rolled out throughout Europe in 2010. Olin is

of exceptional tactile quality. It is available in fi ve shades from white to ivory, three fi nishes and fi fteen weights allowing it to be put to very different high-quality uses ranging from pharmaceutical leafl ets to business cards or mailshots. Olin is FSC®-certifi ed and is also available in a recycled version and matching envelopes for all formats. It’s multi-functional features are part of the “all-in-one” focus and have helped to make Olin the most comprehensive range available on the market. In order to stress the range’s depth and the printing quality of the paper, the marketing campaign has used photos taken by renowned artists as part of a partnership forged with the Valérie Hersleven Agency.

From Santiago to Hong Kong, or from Beijing to Cape Town and Durban, Arjowiggins’ Creative Paper ranges were making all the headlines in the graphic art world outside of Europe in 2010. Imagination was the name of the game when presenting the Curious Collection, Rives and Conqueror brands to designers, advertising agencies, printers or end users whether they were in South America, Asia or South Africa. In Chile, more than 250 people turned up to see a show organised around the themes of water, earth, wind and fi re. In China, the brands were launched by organising events at local level – a fashion designer was commissioned to make dresses out of paper that were displayed at the launches – and in South Africa events were organised in the main cities. The success of the events was a fi tting tribute to these creative, eco-friendly products.

SPRING

Creative papers with worldwide ambitions


2010 highlights

No. 1 producer of creative and technical papers worldwide

FIVE AUTONOMOUS DIVISIONS*

Graphic

– Standard or recycled coated and non-coated paper for the publishing, advertising and printing markets, specialty paper and 100% recycled premium pulp.

– Brands: Chromomat, Cocoon, Cyclus, Eural, Maine gloss, Maine gloss green, Playper, RePrint, Satimat, Satimat Green, Utopia, etc.

Coated US

– Coated papers for the commercial printing and book publishing industries.

– Brands: Altima, Utopia.

Creative papers

– Paper for use in corporate communication and advertising, bookbinding and luxury packaging, fine art, and paper for specialty applications.

– Brands: Arches, Conqueror, Curious Collection, Gateway, Guaflex, Iris, Keaykolour, Opale, Pop’Set, Priplak, Rives, etc.

Industrial Solutions

– Papers for use in industry (decor paper, abrasive paper, thin and opaque paper)** and the medical and hospital sector (medical packaging, sterile packaging and sterilisation wraps).

– Brands: Arjofoil, ArjoTop, ArjoPrint, Arjosave, ArjoFinish, ArjoMulti, ArjoBasic, Arjopeel, Sterisheet, Elementa, etc.

Security

– Paper for banknotes and secure documents (biometric passports, e-documents, etc.), brand and consumer protection.

– Brands: Diamone, Polyart.

* Organisation and figures include the businesses sold by the Industrial Solutions division.

** The Decor, Abrasive and Thin and Opaque Papers businesses were sold in March 2011.

€1.7 billion in sales

6,100employees

27production plants


GROUP / Arjowiggins

AUGUST

Creative papersAs part of its ongoing innovation drive, Arjowiggins Creative Papers revamped its fl agship Conqueror brand using a groundbreaking advertising campaign stressing that “It’s not what you say, it’s how you say it” and underlining the importance of paper in quality communication. In addition to recasting the range and introducing innovations like Bamboo and Print Excellence, and a new 400g weight, Jean-François Porchez was commissioned to create new exclusive “AW Conqueror” typographies that can be downloaded by designers free of charge from the new website at www.conqueror.com. The Rives brand also got a makeover with four new textures inspired by the latest fashion trends, a new Sensation matte print fi nish, and 100% recycled versions of its best-sellers. This desire to be at the cutting edge of trends in communication was also apparent in the launch of applications for choosing printed online paper solutions. The Paper Box contains all of the brands’ swatch books, the Creative Box showcases paper printing and creative techniques, and Paper Selector is a handy search tool for the new website at www.arjowigginscreativepapers.com.

MAY

SecurityArjowiggins Security is the world’s leading producer of banknote paper and it prints 17 billion banknotes every year. Its new Pixel™ watermark was awarded the 2010 Best New Currency Feature by the International Association of Currency Affairs. It has already been selected by 10 central banks for their new denomination notes, including those of Hong Kong, Bolivia and the Philippines, which has also chosen Bioguard® anti-bacterial treatment developed at our

Apprieu research centre in France.

NOVEMBER

MedicalArjowiggins’ innovation capability bore fruit in 2010 with the launch of ArjoGreen™ a product that it has patented for the hospital sector. Made wholly from natural products, it is the fi rst “green” biodegradable product to comply with medical standards and bacterial barriers.

SEPTEMBER

Coated USAppleton Coated launched Utopia Inkjet and Utopia Book Inkjet, a new range of coated papers for high-speed inkjet web press technology developed by big manufacturers such as HP and Kodak. Thanks to a specifi c coating, the entire range – developed in partnership with HP – is especially well-suited for “full-colour” high-speed, premium-quality printing.

DECEMBER

GraphicIn late 2010, Arjowiggins Graphic launched a new paper solution that provides an alternative to plastic in gift cards, SIM cards, access badges and customer loyalty cards. Thanks to its rigidity and durability, this paper technique, developed

at the Bessé-sur-Braye plant in France, complies with GSM mobile telephony standards and can incorporate a magnetic strip and an electronic chip. It is easy to print and comes in a range of fi nishes (matte, semi-matte, gloss) that turns the card into a powerful sales and advertising tool.

This papers’ eco-friendly credentials – it is easily recyclable and biodegradable – mean that it offers a credible alternative to plastic cards for major supermarkets, fashion retailers, hotels and telecom operators. And it has already been taken up by two major players: by Marks & Spencer for its 2010 Christmas gift cards and by Oberthur Technologies for the fi rst paper-only SIM card on the market.


2010 highlights

A worldwide presence

With 12,900 employees in more than 50 countries, Sequana

serves corporate clients and printers across the globe via

Antalis and Arjowiggins. The bulk of the Group’s production and

distribution activities are located in Europe which generates

76% of consolidated sales.

In Europe, the Group combines balanced geographic coverage

with critical mass in its distribution activity. Outside Europe,

Antalis has carved out strong positions in Asia, South America

and South Africa. The partnership with xpedx helps it to serve

its North American customers.

EUROPEAustria

Belgium

Bulgaria

Czech Republic

Denmark

Estonia

Finland

France

Germany

Hungary

Ireland

Italy

Latvia

Lithuania

Luxembourg

Netherlands

Norway

Poland

Portugal

Romania

Russia

Slovakia

Slovenia

Spain

Sweden

Switzerland

Turkey

United Kingdom

THE AMERICAS Argentina

Bolivia

Brazil

Chile

Colombia

Mexico

Peru

ASIA/PACIFICAustralia

Bangladesh

China

South Korea

Hong Kong

India

Indonesia

Japan

Malaysia

New Zealand andthe Pacifi c Islands

Pakistan

The Philippines

Singapore

Sri Lanka

Taiwan

Thailand

AFRICA South Africa

Botswana

Mauritius

B2B distributionSales and headcount by geographic area

United Kingdom

19%of sales,

1,065 employees

Western Europe

(excluding France and UK)

44%of sales,

2,702 employees

Eastern Europe

14%of sales,

1,013 employees

Rest of the world

10%of sales,

1,274 employees

France

13%of sales,

653 employees


GROUP / Geographic coverage

EUROPECzech Republic

Denmark

France*

Germany*

Italy

Netherlands

Spain

United Kingdom

THE AMERICAS Argentina

Brazil

United States

ASIAChina

* Sale of the Arches (France) and Dettingen (Germany) plants in March 2011.

Production sites Sales and headcount by geographic area

France

15%of sales,

2,931 employees

North America

20%of sales,

745 employees

Europe

(excluding

France and UK)

31%of sales,

926 employees

Asia

12%of sales,

181 employees

Rest of the world

11%of sales,

581 employees

United Kingdom

11%of sales,

770 employees


As a major player in the paper industry, Sequana’s strategy is to progressively refocus on the distribution sector where it holds the position of European market leader with Antalis. Its goal is also to participate in the consolidation of the paper industry in order to carve out leading positions for its production activities.


STRATEGY

TOP-RANKINGPOSITIONS

Visual Communication: large-format image printing

9

2010 will be remembered as the year of rising selling prices

How would you assess this past year?As you are aware, we had to contend with a contrasting business environment in 2010. In Europe, demand remained fairly sluggish on the distribution side of the business. On the production side, it also began to fall back in the second-half of the year after registering a strong increase in volumes in the first six months as customers rebuilt their inventories in the wake of the 2009 crisis. At the same time, there were sharp increases in raw material prices, especially pulp. Against this backdrop, our results may be considered satis-factory insofar as they improved year-on-year, particularly in view of the negative impact of our American business.

What levers did you use to improve your results?Well, the answer to your question is a fairly simple one: we increased our selling prices! The upward trend in raw material prices that began in July 2009 was confirmed in early 2010 when pulp prices soared to reach an all-time high. At the same time, there were unprecedented hikes in waste paper and titanium dioxide (used in decor paper manufacturing) prices, and in cotton (used in the production of banknote papers) prices in Q4 2010. We had to react very quickly and as early as March 2010, we implemented price increases on both the distribution and the production sides

of the business. The Group’s ability to pass on successive price increases to the market in 2010 is a tribute to all of our teams.

Why wasn’t the United States included in this policy?Arjowiggins is no.4 in the coated US paper segment and this restricts its ability to set the pace of market prices. It was unable to pass on the effects of very high paper pulp prices to its customers because the big players had launched a price war and this hit our American results very hard. The situation should improve somewhat in 2011 following the expected market shake out. Arjowiggins has been able to implement price increases – albeit modest ones – in Q1 2011 and, with its high-quality production facilities, the more positive market outlook should enable it to enhance its operational performance.

You have just sold Arjowiggins’ Arches and Dettingen plants in France and Germany despite their return to profitability.And it is precisely the renewed profitability of these plants that enabled us to begin exclusive negotia-tions with the Swedish Group Munksjö in late 2010. Arjowiggins did not have a leading position in the European Decor paper market which accounted for two-thirds of Arches and Dettingen sales. This is a fiercely competitive sector that requires global consolidation and we were not in a posi-tion to achieve this. The sale to Munksjö – which was completed in March 2011 – with its leading position in the sector will enable the new structure to attain critical mass and to become a big player in this market. The proceeds (€95 million based on the enterprise value) reflect the quality of the Group’s assets.


STRATEGY / Interview with the CEO

Pascal Lebard, Chief Executive Officer

and Tiberto Ruy Brandolini d’Adda,

Chairman of the Board of Directors.

Antalis has launched RACE 2012. What are your expectations for this programme?RACE 2012 is set to overhaul Antalis’ sales struc-ture. It is based on a new approach that will boost Antalis’ efficiency and profitability by enhancing the expertise of its sales teams and through more effective CRM processes. It also aims to boost growth in the fragmented, rapidly growing Packaging and Visual Communication segments. RACE 2012 is clearly a vector for improving operating margin – there is no reason why Antalis should not be generating an operating margin of at least 5% just like other specialist distributors and this is the Group’s objective in the medium term.

How do you feel moving into 2011?The downturn in demand that began in the second half of 2010 has continued into 2011 and reflects structural changes in our industry as a whole. Moreover, raw material prices have defied market forecasts made in late 2010: they have remained very high and prices are now key – along with the pursuit of sales and plant efficiency. We managed to improve our operating performance in 2010 and I have every confidence in the ability of our teams to keep up the good work.

Does this mean that there could be other big changes in the Group structure?Our strategy has not changed. Our aim is to gradu-ally refocus on distribution where we are no. 1 in Europe with Antalis and where our growth continues apace. We want to increase our pres-ence in the high-growth Packaging and Visual Communication segments and to actively partici-pate in the paper market consolidation process. Achieving critical mass will enable us to invest more in innovation and development of products and services and give us a real competitive edge. We may choose a number of different solutions – acquisitions, partnerships or divestments – but our ultimate aim is to accompany the emergence of leading market players and to use this strategy to create value for our shareholders. We have demonstrated this by selling Arjowiggins’ Decor and Abrasive paper businesses.

So is the Security division no longer for sale?This is a prized asset and one of our most profitable businesses. We are currently focused on its oper-ating and commercial development. Arjowiggins is the world’s leading producer of banknote paper and it is growing its official documents (passports, ID cards, etc.) and brand protection businesses. The recent signature of a number of major contracts is a big boost to sales and this is a key priority for the Group.


Satisfactory results

Sequana managed to enhance its operating performances

in 2010 by increasing its selling prices in a market plagued

by rising raw material prices.

Sales by geographic area

Sequana makes 87% of its sales outside France.

United Kingdom

15%Rest of the world

17%

United

States

7%France

13%

Europe


48%

up 7.7%Recurring operating income grew from €137 million to €148 million and represented 3.4% of sales.

up 5.5%EBITDA amounted to €224 million compared with €213 million in 2009, representing an increase of 5.5% (17.1% for Antalis and 3.3% for Arjowiggins) and 5.2% of sales.

In late November 2010, Antalis signed an agreement with Lyreco to sell Antalis Offi ce Supplies (paper and fi ling, writing and hygiene products, etc.) in Spain and Portugal. This sale was completed in early 2011. It also sold its 50% holding in Chilean offi ce supplies fi rm Ofi market to its partner Lapiz Lopez. The two transactions were for a combined enterprise value of €26 million. Antalis also acquired Macron, a German distributor of

large-format digital printing materials for the visual communication industry.

Arjowiggins entered into exclusive negotiations with the Munksjö group in mid-December for the sale of the businesses based at the Arches and Dettingen plants in France and Germany, respectively. These plants produce the decor paper used in laminated fl ooring and furniture, abrasive materials used in the auto and building

industries, thin opaque papers for pharmaceutical leafl ets and fi ne arts paper. They brought in sales of around €220 million, two-thirds of which were generated by Decor papers, and €11 million in recurring operating income. The sale was completed in March 2011 following the approval of the EU Competition Commission and the Arches and Dettingen plants were assigned an enterprise value of €95 million.

2010 highlights

Key financial indicators for 2010 (after disposals)

€ millions2010

reported

Arjowiggins Arches &

Dettingen

Antalis offi ce

supplies businesses

2010 proforma

Sales 4,333 (216) (101) 4,016

EBITDA 224 (15) (3) 206

Recurring operating income 148 (11) (3) 134


STRATEGY / Key figures

Analytical income statement

€ millions, except per share amounts 2010 2009 Change

2010/2009

Sales 4,333 4,088 +6.0%

EBITDA (*) 224 213 +5.5%

EBITDA margin (%) 5.2% 5.2% -

Recurring operating income 148 137 +7.7%

Operating margin (%) 3.4% 3.4% -

Recurring net income (**) 61 73 -17.6%

Recurring diluted earnings per share €1.20 €1.49 -19.5%

Net income attributable to owners 32 20 +60.5%

Diluted earnings per share €0.64 €0.41 +56.1%

Weighted average shares outstanding, after dilution 50,480,341 49,117,160 -

(*) EBITDA: recurring operating income before depreciation and amortisation and changes in provisions. (**) Recurring net income: recurring operating income after net financial income (expense) and income tax on recurring

operating income.

Key figures - Antalis

€ millions 2010 2009

Sales 2,900 2,790

EBITDA 113 96

EBITDA margin 3.9% 3.5%

Recurring operating income 88 75

Operating margin 3.0% 2.7%

Capital employed 635 620

Return on capital employed (ROCE) 13.8% 12.1%

Key figures - Arjowiggins

€ millions 2010 2009

Sales 1,711 1,534

EBITDA 128 128

EBITDA margin 7.5% 8.3%

Recurring operating income 76 74

Operating margin 4.4% 4.8%

Capital employed 561 498

Return on capital employed (ROCE) 13.6% 14.8%


A balanced division of dutiesSince 1 July 2007, the duties of Chairman and of Chief Executive Officer of Sequana have been separated and they are currently exercised by Tiberto Ruy Brandolini d’Adda and Pascal Lebard, respectively. The separation of these two corpo-rate offices around the complementary skills and experience of both men provides Sequana with optimum visibility over its operational activities while safeguarding the quality of the Board’s work.

Board of DirectorsComposition* and role

Since the renewal of the shareholder agreement on 21 July 2010, Sequana’s Board of Directors is chaired by Tiberto Ruy Brandolini d’Adda and has 10 members. As the terms of office of all members expire at the Shareholders’ Meeting of 19 May 2011, at its meeting of 9 March 2011, the Board of Directors recommended that the share-holders renew the terms of office of nine members and appoint a new director, Raffaella Papa. Five directors on the Board meet the independence criteria set out in the recommendations in force. At meetings, directors bring their commitment, diver-sity and complementary professional experience

into play, participating actively in debates and expressing their opinions freely. They endeavour to be available whenever needed. The Board periodically makes decisions regarding the Group’s strategic directions, internal restruc-turing operations and important investment projects designed to generate organic growth. It examines the conduct of the Group’s business, reviews its financial position and approves the consolidated financial statements. To ensure that the Company’s corporate decision-making bodies work in an effective manner, the Board of Directors has also adopted a set of internal rules which define the precise role of the Board and the status of its members, and how meetings and discussions should be organised.

The Board’s work in 2010

The Board met on six occasions in 2010, with an attendance rate of 77%. The Board meetings dealt with corporate governance issues, approval of the consolidated financial statements for 2009 and the first-half of 2010, and the normal course of the Group’s business, particularly the state of progress of the RACE 2012 strategic programme to overhaul Antalis’ commercial model and the planned sale of Arjowiggins’ Decor and Abrasive businesses.

Accountable directorsThe shareholder agreement between Exor SA and DLMD governs the allocation of responsibilities among directors and each company’s role on the Board and its committees. Each director must hold at least 100 shares during his or her entire term of office and also undertakes to comply with the rules of conduct set forth in the Directors’ Charter and the Code of Good Conduct.

* Subject to shareholder approval at the Shareholders’ Meeting of 19 May 2011.

Independent vigilant governance

Sequana constantly strives to follow a corporate governance policy that

complies with the recommendations of the French stock market authorities

and with best market practices.

10 members, including 5 independent directors

3 different nationalities represented (Italian, French, Swiss)

Average age of 55


STRATEGY / Board of Directors

Pierre Martinet,Permanent representative of Exor SA since 21 July 2010, 61 years old, Managing Director of Old Town (Luxembourg).

Michel Taittinger,66 years old.

Nicolas Lebard,Permanent representative of DLMD, 44 years old, Managing Director of ED&F Man Malaysia SDN BHD.

Pierluigi Riches,Permanent representative of Allianz France, 58 years old, Chief Operating Offi cer responsible for investments and Member of the Executive Committee of Allianz France.

Tiberto Ruy Brandolini d’Adda,63 years old, Italian citizen, Chairman of the Board of Directors of Sequana.

Pascal Lebard,48 years old, Chief Executive Offi cer of Sequana, Chief Executive Offi cer of Antalis and of Arjowiggins.

Jean-Pascal Beaufret,60 years old, Chief Financial Offi cer, National Broadband Networks (Australia).

Luc Argand,63 years old, Swiss citizen, Partner at the law fi rm of Pfyffer & Associés (Switzerland).

Laurent Mignon,47 years old, Chief Executive Offi cer of Natixis.

Alessandro Potestà,Non-voting observer as of 19 May 2011, 43 years old, Italian citizen, Managing Director of Exor SpA.

Raffaella Papa*,42 years old, Italian citizen, Principal of Exor SpA.


Proactive committeesThe Board’s committees act strictly within their remit as defined by the Board. They prepare the Board’s work and make recommendations but have no decision-making power. The committees regu-larly report to the Board, which takes decisions that are then relayed to shareholders by the Chairman.

– Audit Committee

The Audit Committee is composed of four members, including two independent members. It focuses on five main areas: verification of accounting princi-ples; approval of half-yearly and annual parent company and consolidated financial statements; internal control; review of the financial position of the Group and any risks to which it may be exposed; and the status of the Statutory Auditors (appoint-ment, independence). The Audit Committee met twice in 2010, with an attendance rate of 100%.

– Nominations and Compensation Committee

The purpose of this committee is to make recom-mendations on compensation to be paid to corporate officers and key executives, and to review stock purchase or subscription plans and proposals for share award plans. It is also responsible for reviewing all matters relating to the composition of the Board and its committees, how they are organised and how their business is conducted. The Nominations and Compensation Committee is composed of four members, two of whom are inde-pendent. It met three times in 2010 and all members were present on each occasion.

– Strategy Committee

The purpose of this committee is to make recom-mendations on the Group’s key strategic directions and examine the best investment opportunities. It is composed of four members, two of whom are independent. The Strategy Committee met on one occasion in 2010 and the attendance rate was 75%.

As part of its brief, the Audit Committee ensures that internal control systems are being correctly applied throughout the Group, assesses and manages risk and examines and oversees the internal audit action plan. The internal Audit department is independent of operational management and reports directly to the CEO and the Audit Committee. This independence guarantees control over the processes that contribute to the Group’s strategic objectives.

Every half-year, the Internal Audit department reviews the audit plan and its results with the Audit Committee. It is also responsible for

regularly checking that Group accounting and operating procedures have been implemented, monitoring and improving the overall internal control environment and ensuring that rules on ethics are respected. Although a similar approach is used for both Antalis and Arjowiggins, internal audits take account of each company’s specifi c operating environment. Based on an ongoing audit principle, Antalis and Arjowiggins entities are internally audited at least once every two or three years. In March 2010, the Internal Audit department approved the 2010 audit plan comprising 33 internal audits in 24 different countries: 20 in

Antalis and 13 in Arjowiggins. These internal audits revealed many areas for improvement. For each audit point identifi ed, a recommendation is made that includes the necessary corrective action together with a timetable, all of which are closely tracked.In 2010 a risk-mapping process was conducted within the Group. The existing risk maps for Antalis and Arjowiggins, dating from 2004 and 2006, respectively, were updated. An audit-based approach was adapted to cover the main risks identifi ed.As part of the overall internal control process, Group entities are required to complete self-assessment questionnaires every year.

Audit

Contributing to the Group’s performance

>>


STRATEGY / Board of Directors

Proactive operationalmanagement

The Executive Committee comprises executives from Sequana, Antalis and Arjowiggins

and helps to coordinate overall Group strategy more effectively and to boost the

operating performances of Antalis and Arjowiggins.

1

2

3

6

7

4

5

1 – Pascal Lebard, 48 years old, Chief Executive Offi cer of Sequana, Chief Executive Offi cer of Antalis and of Arjowiggins.

2 – Hervé Poncin, 47 years old, Chief Operating Offi cer of Antalis.

3 – Guy Léonard, 58 years old, Chief Operating Offi cer of Arjowiggins and Managing Director of Arjowiggins’ Creative Papers division.

4 – Xavier Roy-Contancin, 52 years old, Group Chief Financial Offi cer.

5 – Isabelle Boccon-Gibod, 43 years old, Executive Vice-President.

6 – Antoine Courteault, 54 years old, Company Secretary.

7 – Gilles Raynaud, 55 years old, Group Human Resources Director.


STRATEGY / Executive Committee

Sequana provides the market with quarterly updates on its results (sales by business and condensed consolidated income state-ment) and its strategic focuses, and it

publishes full or condensed financial statements twice a year. All of this information can be consulted in French and English on its website at www.sequana.com. A financial notice is published in the French media in connection with the Group’s annual and half-year earnings announcements. Radio ads also invite listeners to consult the Sequana website, thereby forging an interactive link with online publi-cations. An email alert service keeps all interested parties informed of the latest press releases.

Ongoing contactSequana maintains a privileged dialogue with financial analysts, private shareholders and insti-tutional investors. In addition to information meet-ings that coincide with the publication of annual and interim earnings, senior management meets regularly with investors in Europe and takes part in conferences organised for small mid-caps. In 2010, Sequana participated in five small meetings in Paris and London.

To make it easier for shareholders and the market to track its share price, Sequana’s VOR ticker symbol was changed to SEQ on 10 September 2010. Furthermore, the NYSE Euronext Scientific Index Committee included the Sequana share on the SBF 120 index as from 20 September 2010. Sequana is now quoted on the new CAC Small®, CAC Mid & Small® and CAC All-Tradable® indexes following the reorganisation of French listed securities on NYSE Euronext effective from 21 March 2011.

Renewal of the shareholder agreement between Exor SA and DLMDAs the shareholders’ agreement signed between Exor SA, DLMD and Pascal Lebard on 21 July 2007 was due to expire, on 21 July 2010 the parties entered into a new, automatically renewable one-year agreement. Under the terms of this agreement, DLMD sold 1.59% of its stake in Sequana to Exor SA on 30 July 2010, reducing DLMD’s interest to 20.22% and increasing Exor SA’s interest to 28.24%, thereby making Exor SA the largest shareholder in Sequana.

Ongoing dialogue with investors

Sequana fosters two-way communication with investors and shareholders

and it has a well-honed financial reporting system that provides continuous

feedback on Group strategy and performance.

Shareholders’ Meeting

19 May 2010.


STRATEGY / Stock market

Share data over the last three years

2010 2009 2008

Number of shares at 31 December 49,545,002 49,545,002 49,545,002

Dividend (in €) 0.40 (*) 0.35 -

Share price (in €)

High 12.95 10.77 22.50

Low 6.83 3.51 3.90

Closing 11.65 7.98 4.33

Market capitalization (in € millions) at 31 December 577 395 215

(*) Subject to shareholder approval at the Shareholders’ Meeting of 19 May 2011.

Key dates in 201119 May: Annual Shareholders’ Meeting

28 July: H1 2011 results

27 October:Q3 2011 sales

Sequana on the stock marketListed on Eurolist of NYSE Euronext (Segment B)

Indices: CAC Small® CAC Mid & Small® and CAC All-Tradable®

Eligible for the deferred settlement service (SRD)

Ticker symbol: SEQ

ISIN code: FR0000063364

Par value per share: €1.50

Contact usSequana 19, avenue Montaigne 75008 Paris France Tel.: +33 1 56 88 78 00 [email protected]

Share accounts are administered byBNP Paribas Securities Services Investor Relations 9, rue du Débarcadère 93500 Pantin France Tel.: +33 826 109 119

Market capitalization at 31 December 2010

Ownership structureat 31 December 2010

Exor SA

28.24%

DLMD

20.25%(incl. Pascal Lebard 0.03%)

Free float

51.06%(incl. Allianz 11.83%)

Treasury shares

0.45% 577

395

215

201020092008

Sequana had a market

capitalization of €577 million

at 31 December 2010, up 46%

year on year.

Sequana share price SBF 250 index (adjusted) SBF 120 index (adjusted)

50,000

100,000

EUROS AVERAGE NUMBER OF SHARES TRADED/DAILY

Monthly trading volumes

Jan.

2010

Feb. March Apr. May June July Aug. Sep. Oct. Nov. Dec. Jan.

2011

Feb. March00

12

8

4

16

150,000

200,000

250,000

Performance of the Sequana sharebetween 1 January 2010 and 20 March 2011 (Source: NYSE Euronext)

SBF 120 (ADJUSTED)

as from 20 September 2010

SBF 250 (ADJUSTED)

up to 17 September 2010


In both its distribution and production businesses, Sequana strives to create value added for its customers. So innovation lies at the very heart of the Antalis and Arjowiggins commercial strategies, driving an ever-richer and distinctive product offering.


BUSINESSES

UNIQUE PRODUCTS AND SERVICES

Antalis logistics centre in the Netherlands.

21

Delivering global solutions

Europe’s leading B2B distributor of paper and packaging products and No. 4 worldwide,

Antalis offers a broad array of products and services to more than 230,000 corporate

clients and printers.

A broad range of products tailored to professional requirementsAntalis distributes a complete range of reams and envelopes suitable for the very latest printing techniques (ink jet, laser jet, digital) to large corpo-rations, government organisations and resellers. Antalis continued to streamline its office paper portfolio concentrating on the Image range. Image Recycled was launched in France, Spain and Portugal, and Image Light (75g copy paper) in France, Benelux and the UK. Antalis is also present in two growth segments: packaging and visual communication. In the pack-aging sector, Antalis is a key partner for major industrial groups, particularly in the auto industry and electronics, and provides a one-stop shop for SMEs, helping them to save time and to boost efficiency. The Antalis offering includes standard products such as cardboard boxes and stretch film as well as bespoke logistics and technical solutions, especially for the export market and protection against corrosion for industrial goods. In the Viscom market, Antalis supplies graphic art specialists with the board, plastics and paper materials they need to design their posters, point-of-sale advertising displays, signage, store and car window displays, and banners.

Antalis is the leader in the print market and is recognised as having the highest quality and most extensive range of prod-ucts on the market to printers, graphic

designers, publishers and advertising agencies. Antalis expanded its range in 2010 with Olin, an innovative brand of FSC®-certified premium offset paper unique on the market, available in five colours, three finishes, a recycled version and eighteen grammages, and rounded out by a range of standard and recycled envelopes. In all, 116 combinations can be chosen by designers and printers to showcase companies’ black and white and colour printing documents. Launched in 15 countries across Europe in the second half of 2010, Olin became available in 2011 in Austria, Germany, Switzerland, Nordic countries and the Baltic states, as well as in countries outside Europe.

Antalis France telesales employees

Antalis sales by business segment

Print

60%

Office

20%

Packaging

6%

Other

10%Visual

Communication

4%


BUSINESSES / Distribution

E-commerce customer solutions: vectors for efficiencyE-commerce is an essential part of Antalis’ sales policy, and a key driver of efficiency and customer service excellence. Antalis has developed a new-generation e-commerce platform which is designed like an online store and provides customers with easy-to-use, multi-criteria searches, cross-selling offerings and detailed product information that includes product factsheets, photos and descrip-tions. The e-commerce platform launched in France in 2009 has been a resounding success, with the online sales penetration rate up 17% in the year. In 2010, this platform was adopted in Belgium, the Netherlands, the UK, Switzerland and Sweden. Customers in the Netherlands are now able to consult and download invoices and from early 2011 they will be able to calculate cuts for their visual communication media and limit waste.

Extensive European coverageAntalis has developed a number of key competi-tive advantages in the European paper distribution market which has undergone major consolidation over the past ten years. Antalis consolidated its position as European market leader by acquiring Map (fourth largest European paper distributor) in late 2007: it is currently either No. 1 or No. 2 in most of the 28 countries in which it is present. The Company has reached critical mass in most of its markets and this enables it to offer high quality service underpinned by the optimisation of its supply chain and the reach of its distribu-tion network. Antalis offers 24-hour or same-day delivery service in most major European cities.

Buoyant international marketsAntalis is No. 4 worldwide with a strong presence in the buoyant Asian, South African and South American markets that contribute significantly to performance and profitability: these markets now bring in 10% of Group sales and 19% of recurring operating income. In South America and South Africa, Antalis is unique insofar as it is present in the graphic supplies distribution market (printing plates, ink, etc. for printers). It has carved out a leading position in this highly profitable business and is renowned for the excellence of its products and services. In 2010, Antalis do Brasil scooped first prize in the “Best supplier of offset printing plates” category, one of the most prestigious awards in the South American graphics industry. The Group continued the successful launch of the Arjowiggins Creative Papers and eco-friendly Arjowiggins Graphic ranges in these markets and it also continued to develop the visual communi-cation offering.

2010 PERFORMANCE

Solid 2010 resultsThe paper and communications materials distribution market remained challenging throughout the year in Europe. Demand was modest across all geographic regions, although trends differed widely from one country to the next. Overall, volumes in the European market remained stable year-on-year.In contrast, growth outside Europe was particularly robust in South America, South Africa and Asia.Antalis reported a slight 3.4% decline in volumes due chiefl y to its proactive policy aimed at improving gross margin. This contraction in volumes was offset by the rise in selling prices across all segments and countries where the Group trades, and by an improved product mix. Sales climbed 3.9% year-on-year to €2,900 million. The policy of increasing selling prices and the tight rein on overheads helped drive a 17.8% increase in recurring operating income and a 3% increase in operating margin (up 0.3 points on 2009).

Antalis sales by geographic area

UK

19%

France

13%

Western

Europe

44%(excluding

France and UK)

Rest of the world

10%Eastern

Europe

14%

Critical mass in Europe

Market share +20%

-20%

21

23

1

2

2

1 2

1

2

4

2

2

2

1

2

11

1

1

1

*

* Italy: distribution of packaging products only

3

2


In 2010 Antal is launched an ambitious programme to boost both its growth and prof-itability. The programme, known as RACE 2012 (Results Acceleration through Customer

Excellence) focuses on improving operating effi-ciency by shifting the company’s commercial model towards products and services and creating more value added for customers. It also aims to leverage best practices in its businesses and adopt these practices in every country and to boost sales in the two high-growth Packaging and Visual Communication businesses.

Moving towards a new commercial modelThe Group is using RACE 2012 to put in place consistent commercial models based around a fresh approach to customer segmentation. This demands a higher level of team expertise, more efficient procedures for managing customer rela-tions, tighter coordination between different sales

channels (field sales, telesales, Internet), and the widespread application of CRM tools. The Group has invested heavily in IT to incorporate the new bases of customer segmentation into its systems and make the e-commerce platform more effective and attractive to use. Ultimately, this new approach will enable the company to develop a stronger relationship with customers by anticipating their needs, providing personalised solutions and helping them capture new markets.

Keeping ourcustomers in front

The RACE 2012 programme to overhaul its commercial model

structure and deliver excellence to customers will keep Antalis

ahead of the game.

How would you sum up RACE 2012?

In two words: customers and leader. “Customers” because the entire programme is customer-centric, and “Leader” because the aim of RACE 2012 is to strengthen Antalis’ positions in paper and packaging distribution in Europe.

How was the programme devised?The Group has signifi cant pools of skills and expertise that are not being used optimally. We need to incorporate these into a process to bring value added to our customers so we drew on best practices identifi ed within the Group to develop a fl exible commercial model that takes account of country specifi cities and our key priorities. Various working

groups comprising about a hundred managers used this as a starting point in devising ways of implementing improvements in different areas.

What impact do you expect RACE 2012 to have?This represents a very real culture change that will require people to work in a different way and to be more open-minded. Essentially, we have to make everyone realise that we are a customer-centric business – and not just the sales teams who have always been focused on customer satisfaction anyway. This is absolutely crucial if we wish to anticipate and nurture our long-term growth.

Stéphane Courtot, General Manager, Antalis Western Europe

“ Our corporate culture is evolving to cater to the needs of the future.”

1



Developing in high-growth segmentsOne of RACE 2012’s priorities is reinforcing the Group’s presence in high-potential markets that will be used to drive future growth and one such market is Visual Communication. This remains a fragmented sector – no one company can claim market leadership status in Europe – and it is currently growing by between 5% and 10% a year. The European market is valued at €4 billion and offers great potential for growth, already

accounting for 4% of Group sales. In 2010, the Group gained a foothold in the German market with the acquisition of Macron, a distributor of large-format digital printing materials for the visual communication industry. Moreover, in accordance with its strategic objec-tives, the Group withdrew from the office supplies sector following the sale of Antalis Office Supplies in Spain and Portugal to Lyreco and the sale of its 50% holding in the Chilean office supplies firm Ofimarket to its partner Lapiz Lopez. This is firmly in line with the Group’s development strategy which aims to consolidate its positions in paper distri-bution and expand its footprint in the secondary packaging and viscom sectors.

SERVICES

Services have catalogues too

A distributor has to offer customers a wide range of products coupled with services tailored to their businesses and specifi c characteristics.

From order placement to after-sales services, delivery solutions to inventory management, and technical advice to e-procurement solutions, Antalis now boasts a comprehensive service offering that varies depending on the country:• a 24 hour online ordering

service: catalogues, customised pricing, samples, special offers and ordering;

• online information: online access to technical information (specifi cations, certifi cations, technical advice, etc.);

• sampling: samples available in 24 hours (A4, reams, formats);

• packaging: labelling and rewrapping;

• converting: to the required format (reel-to-sheet, sheet-to-sheet) and perforating;

• waste management: collection of waste paper and pallets;

• stock management: paper management and/or printed documents management for customers;

• delivery: same-day or within 24 hours in 90% of cases, a taxi service for express deliveries, 2-man deliveries (from handling to multi-point dispatch), etc.;

• logistics: storage of client goods and delivery to clients’ own customers;

• returns: collection of goods in the event of errors or changes in requirements.

Antalis deployed considerable marketing resources in 2010 to put together services catalogues in all the different European countries in which it is present to help customers have a clear overview of each service offering along with the corresponding prices. As Hervé Poncin, Antalis’ Chief Operating Offi cer puts it, “Antalis leads the way in this area and continues to innovate. By providing a broad range of services that add value for our customers, we are behaving like true market leaders.”

3

1 – Converting

for large-format

media

(Netherlands).

2 - Fillpak®-

void-fill system.

2


Once the design phase was completed and vali-dated, the deployment phase kicked off in the different European countries in second-half 2010. Kick-off meetings were held in each country and attended by members of the Group’s Executive Committee. A dedicated communications process keeps employees up to date on the state of play in their countries. Employees have also been able to ask questions about RACE 2012 via online chats on the intranet organised on a regular basis since early 2010 with Hervé Poncin, Chief Operating Officer of Antalis, and the regional manager concerned.

Guiding employees through changeIn the second half of 2010, the new sales struc-ture was deployed in France and Poland and it will be rolled out to the other European countries in 2011. The project is being backed by major investment, particularly the creation of the Antalis Sales Academy. The Group has earmarked €4 million over three years to provide training for its sales forces. The first training courses kicked off in France in November 2010. The Group has also developed a comprehensive range of resources to enable managers to train teams in their new roles: a practical guide to change management has been disseminated and a Change Manager has been appointed in each country.

A new image to forge an “Antalis reflex”RACE 2012 will recast not only Antalis’ organisation, but its communication as well. Its customers have very diverse profiles and they are not always aware of the breadth and richness of the group’s products and services. In order to encourage them to adopt the “Antalis reflex” whenever they need a tailored solution or a specific service, the group has radically

Rallying all employeesRACE 2012 is the culmination of six months of work involving about one hundred managers from different European countries who devised ways of implementing the eleven identified areas for improve-ment. A key source of motivation for the company’s employees, the programme is underpinned by five key priorities: customer focus, expansion into growth markets, operational excellence, services and solu-tions, and people development.

A new dynamic for communication

The RACE 2012 programme is being deployed across Europe and is driving a new

commercial and marketing dynamic for the entire company.

1

To know what Antalis can

do for you, download

the QR Code reader

on to your smart phone:

www.mobiletag.com



overhauled its positioning strategy and in late 2010 it unveiled a brand new visual identity together with a matching advertising campaign. The base line “Just ask Antalis” is initially used as a teaser, and then associated with a character, “paperman”, who serves as a leitmotif for all of the group’s advertising while simultaneously infusing it with dynamism and personality. These elements have appeared in all printed and online communication media since early 2011. Antalis commissioned the director Wim Wenders to make its first corporate film which features “paper-man” guiding the viewer through the Antalis world and the variety of its offering. The film has been translated into all languages and posted on all of the websites of the Group. This new image is a clear statement of intent: providing a tailored solution to each customer requirement.

IN-HOUSE

Stepping up internal communications

Communication is key in successfully deploying RACE 2012 and the strategic programme was the primary focus at this year’s three management meetings (international seminars) attended by 120 managers and the annual Antalis convention which also brought together over 200 people. Workshops were organised to bring teams into the thought

process concerning the major areas for improvement and to give them a stake in the programme as a whole. A monthly e-newsletter sent by e-mail provides an overview of the state of progress at both group and country level and a major in-house information campaign was launched in 2010 to explain the programme’s content and objectives. Kick-off meetings took place

across Europe using simple up-to-date techniques: a video presenting RACE 2012, posters and a monthly e-newsletter at local level informing all employees of the state of play.

2

4

3

1 – Launch of the new campaign in

Finland by Jukka Silventola, General

Manager, Nordics and East.

2 – The Antalis universe portrayed

through its corporate firm.

3 – Group e-newsletter.

4 – Workshop during a Management

Meeting.


A unique profile in the market

The world’s leading producer of creative and technical papers, Arjowiggins

has operations in Europe, North America, South America and Asia. It sells

high value-added products and services incorporating the latest advances

in technology and eco-friendly innovation to all market players.

– Graphic: eco-friendly papers, speciality papers for niche markets (playing cards, laminated products, tissue, transfer paper, etc.), papers for the medical and hospital sector (sterile pack-aging for the protection of disposable medical instruments such as compresses and for steri-lised sealing and wrapping solutions for use in the operating theatre);

– Coated US: coated paper for commercial printing and book publishing;

– Creative Papers: premium fine papers and speci-ality paper such as tracing or casting papers;

– Security: papers for banknotes and official documents, brand and consumer protection solutions.

Arjowiggins derives three-quarters of its sales from products with a high technical component.The remaining 25% of sales are generated by standard coated and uncoated papers.

Arjowiggins is pressing ahead with a niche market strategy in businesses in which it boasts leading positions thanks to its dynamic innovation policy and the excel-

lence of its services. Arjowiggins is a manufacturer of speciality papers and occupies a unique posi-tion on the market.

A business focused primarily on specialty productsFollowing the sale of the Decor and Abrasives businesses in March 2011, the Group is organised around four autonomous divisions:

Arjowiggins sales by division (after divestments)

Coated US

18%Graphic

42%Green

41%

Coated

31%

Specialty

28%

Creative

Papers

19%

Security

21%1


BUSINESSES / Production

Selling prices for specialty products are far higher than for traditional coated papers, reflecting the value added resulting from the technical and envi-ronmental components of these papers. As the cost of pulp as a proportion of the total production cost is less than for commodity goods (standard coated and non-coated), the Group is less sensitive to fluctuations in paper pulp prices. Furthermore, the Security division produces papers that are chiefly manufactured using cotton fibre.Given the broad range of its business activities, Arjowiggins has many competitors.

The only group producing recycled pulpArjowiggins is currently the only group that is verti-cally integrated into the production of premium 100% recycled pulp thanks to Arjowiggins Graphic’s Greenfield plant at Château-Thierry in France which produces extra-white premium recycled pulp. This whiteness, which is unique on the market, is obtained through an innovative, chlorine-free manufacturing process. The 100% recycled pulp produced at Greenfield is FSC®-certified, giving it a major advantage amid growing demand for eco-friendly products.

2010 PERFORMANCE

Ability to pass on price increasesRaw material prices soared in 2010 – particularly the cost of paper pulp which doubled in just one year – and this trend was also driven by certain macro-economic factors including increased stock levels in China and the February earthquake in Chile, a country that accounts for 8% of the world’s pulp production. The rise in the cost of these raw materials was also driven by the scarcity of waste paper and certain chemical products such as titanium dioxide. Faced with this situation, Arjowiggins showed its strong capacity to react. Selling price

increases were implemented as from April across all businesses, with the exception of Coated US where these were precluded by prevailing market conditions. Further price increases were implemented in the second half, with the full impact expected to be felt in 2011. This strategy helped offset the rise in external costs over the year.In 2010, Arjowiggins enjoyed robust activity in all market segments, and particularly Creative Papers. However, demand slowed in the second half in the standard coated papers segment

in Europe and the US. Volumes advanced 3.7% over the year as a whole, while sales increased 11.6% to €1,711 million. Recurring operating income rose 3.3% to €76 million, and operating margin represented 4.4% of sales.

1 – 100% recycled

pulp after drying.

2 – Innovative

educational

brochure for the

Cocoon Silk/Gloss

range.

3 – Campaign for

the Conqueror

Bamboo range.

32


Innovating on behalf of our customers

Our R&D programme is all about driving innovation to come up

with constantly better and more eco-friendly products

for our customers.

R&D is a key strategic driverInnovation lies at the very heart of Arjowiggins’ development strategy and is focused on antici-pating customer and end user needs more effec-tively. Each division has an R&D department with its own renowned innovative capabilities recognised by the various awards garnered at regular intervals.It usually takes between 12 and 18 months to develop a new type of paper. The Arjowiggins Graphic R&D department aims to develop new eco-friendly paper products in just three months and it has launched nine innovative products in one and a half year. Arjowiggins Security, which strives to make the substrate (i.e., paper + synthetic) more secure, intelligent and easy to integrate, files about 20 patents every year.R&D departments in other Arjowiggins divisions have also been very active. In 2010, Arjowiggins Healthcare marketed two new products that it had patented and Arjowiggins Creative Papers

incorporated Print Excellence technology into the Conqueror range which reduces drying time and gives the paper a natural feel.

Greening the offeringEnvironmental concerns are a key vector for inno-vation in the paper sector. Arjowiggins Graphic currently boasts the market’s largest eco-friendly offering, comprising a unique range of white and natural recycled papers and eco-friendly papers mixing recycled and FSC®-certified virgin fibres, sold under the Cocoon, Cyclus, Eural, Maine Gloss green and Satimat green brands. In 2010, the division continued to broaden its environmen-tally responsible products with new paper quality and grammages and a new range of office solu-tions for Cocoon, Cyclus and Eural. These include 100%-recycled extra-white papers and envelopes bearing the European eco-label. Papers in the Cocoon Office range are also certified FSC®. Arjowiggins also extended its green credentials to its specialty products range, with the launch of Maine 1 Face Green, a comprehensive range of recycled papers meeting the needs of distribu-tors and consumers in terms of environmentally responsible packaging, especially for food and cleaning products.All of Arjowiggins Creative Papers’ ranges are FSC®-certified and it continued its creative inno-vation drive in 2010 with the launch of Bamboo. This new FSC®-certified paper, manufactured from bamboo using natural pigments, broadens

AWARDS

A high watermark for Arjowiggins Security innovationThe Currency Awards are handed out by the International Association of Currency Affairs (IACA), which brings together central banks and international security and industry bodies, in recognition of the most exceptional innovations in the currency sector. In 2010, the Arjowiggins Security Pixel™ watermark was voted best new currency feature. It is a new type of multi-tone watermark with a unique effect obtained through the interplay of dark dots on a light background.


BUSINESSES / Production

INNOVATION

Arjowiggins Healthcare: two patents fi led in 2010In 2010, Arjowiggins Healthcare’s innovation efforts resulted in two new patented products for the medical/hospitals segments. ArjoGreen™ is the fi rst ever sterile barrier system designed to minimise its carbon footprint. It provides the same performance but generates material economies of scale and offers an alternative to SMS, a wholly petroleum-based derivative product. It allows hospitals to choose an eco-friendly packaging option that complies with hospital standards and bacterial barriers.

Ethypel® Reinforced ST was the second major innovation in 2010 and it provides medical equipment manufacturers with high quality, reinforced grade packaging with a sterilised seal. It enables manufacturers to achieve fi nal packaging without the need of any coating prior to printing and expands the range of customer solutions available for delivery directly from the plant at Palalda (France).

the division’s premium, eco-friendly offering which now includes a recycled offering in all ranges as well as Conqueror CarbonNeutral® in a number of European countries.

Harnessing technology to creativityInnovating also means coming up with a steady stream of products and solutions that pave the way for new uses and evolving printing techniques. In the laminated segment, Arjowiggins Graphic intro-duced an alternative solution to plastic for gift and Sim cards using FSC®-certified laminated paper producing superior quality images. In textile printing the division also launched its innovative Sublimage range, sublimation transfer papers for polyester printing, as well as the Digipeel kit, which includes copy paper, water-based ink and a low-melt powder. The Coated US division launched Utopia Inkjet and Utopia Book Inkjet, a new range of coated papers for high-speed inkjet web press technology developed by major manufacturers such as HP and

Kodak. There were several innovative high points in 2010 for Arjowiggins Creative Papers, including the launch of Priplak Supercristal, seven new casting paper designs, and new applications for tracing paper in the press sector. Arjowiggins Security used the Currency Conference in Buenos Aires to launch Bioguard ®, which protects banknotes from viruses, bacteria and fungi, thus demonstrating its continued ability to keep up with the changing demands of the market.

2

1 – Casting papers:

end-use in the synthetic

leather market.

2 – Appleton Coated’s

eco-friendly approach

presented in the Green

Story brochure.

3 – Ethypel®

Reinforced ST medical

packaging.

3

2

1


Sequana has been committed to sustainable development now for a number of years, both on the production and the distribution sides of its business. The Group is constantly striving to reduce its environmental footprint and to boost its range of innovative, eco-friendly products.


SUSTAINABILITY

CORPORATE COMMITMENTS

Recovered paper for manufacturing 100% recycled paper at the Bourray plant in France.

33

A progressive approach

The paper sector is a key environmental player as its businesses straddle

sensitive areas like global warming or the preservation of natural resources.

Sequana is firmly committed to offering customers environmentally-

friendly solutions in all of its businesses.

TEXT PAGESBrand

Grammage

Number of pages

COVER PAGES

Environmentalcalculator

Reduce your environmental impact

with recycled papers

Brand

Grammage

Number of pages

Size

x (cm)

Quantity

Cocoon Silk

115 g/m2

36

Cocoon Gloss

250 g/m2

4

21 29.7

5,000

kg C02 of greenhouse gases

km travel in the averageEuropean car

litres of water

kWh of energy

kg of wood

kg of landfill

Copyright © 2010 Arjowiggins and its licensors. All rights reserved.

Source:European BREF(data on virgin fi bre paper).Carbon fontprint data auditedby the CarbonNeutral Company.

By using

rather than a non-recycled paper, theenvironmental impact was reduced by:

Cocoon Silkand

Cocoon Gloss

A3 A4 A5 A6

AWARDS

Arjowiggins Graphic: European Eco-label ambassadorArjowiggins Graphic’s Cocoon advertising campaign was awarded the 2010 European Eco-label Communication prize in the manufacturer-retailer category. This prize is sponsored by the European Commission in recognition of companies that deploy outstanding initiatives to raise public awareness of the European Eco-label and its logo appears on all advertising media in the Cocoon range since it obtained certifi cation in January 2010.

Arjowiggins and Antalis have developed certification processes and product life cycle analyses (LCA) to help customers engage in responsible procurement prac-

tices on the basis of transparent disclosures.

Fostering responsible procurement practicesArjowiggins as a paper producer is one of the first links in the graphic chain. Arjowiggins’ Graphic and Creative Papers divisions have developed a very wide range of recycled and FSC®(1)-certified products to help customers achieve their sustain-able development objectives through responsible procurement practices. All Arjowiggins Creative Papers product ranges are FSC®-certified and comprise a recycled offering, and the division also markets Conqueror CarbonNeutral® in a number of different European countries. Arjowiggins Graphic is the European leader in eco-friendly papers. Arjowiggins Graphic currently boasts the market’s largest eco-friendly offering, comprising a unique range of white and natural recycled papers and eco-friendly papers mixing recycled and FSC®-certified virgin fibres. And the divi-sion wants to go even further with the European Eco-label certification. This label is monitored by the EU Commission and guarantees that the certified paper has a very small carbon footprint. In 2010, Cocoon became the sixth Arjowiggins Graphic brand to obtain European Eco-label certi-fication. The division also uses product life cycle analysis to provide customers with transparent information concerning the carbon footprint of all of its products.Antalis also offers customers PEFC-(2) or FSC®- certified papers, particularly for use in own brand products, to cater to the needs of its various markets. Its most recent offspring, Olin, a premium offset paper launched in 2010, is FSC®-certified and replete with a recycled version. The office paper brand Image offers a choice of eco-certifications:

FSC® for Image Impact and Image Impact Plus and PEFC for Image Business. Image also comes in a version recycled wholly from post-consumer waste that has obtained “Blue Angel” and “Nordic Swan(3)” environmental accreditation. The Antalis range of packaging products also includes eco-friendly products (biodegradable bubble paper, recyclable cardboard, etc.).


SUSTAINABILITY / The Environment

1 – Deinking process

at the Dalum Papir plant

in Denmark.

2 – Campaign for the

100% recycled Cyclus

paper range.

Acting to inform and raise awarenessAntalis and Arjowiggins are actively involved in initiatives to promote responsible procurement practices. Since 2009, Arjowiggins Graphic has been involved in a strategic partnership with WWF France to promote the use of recycled and FSC®-certified paper and in 2010 it participated in a conference and debate on “Biodiversity: an asset for business?”, attended by the President of WWF France, Isabelle Autissier. The division also pursued the “Recycled paper in my satchel” campaign for local authorities, aimed at promoting the use of recycled paper in school books. As part of its partnership with Antalis, Arjowiggins Graphic also organised seminars for Antalis sales forces and backsellers to raise their awareness of the eco-friendly product offering. Customers can also access an eco-calculator on the division’s website that calculates the decrease in the carbon footprint of recycled products.Within Antalis, all countries have been involved in awareness-raising initiatives. For example, the Éco’Prim campaign was launched in France in 2010: each time a customer purchases a “green” product in a given period, it receives a premium that will help fund an eco-friendly initiative within the client company. Every month, Antalis France also organises a “green day” advertised in “brain-stores” and on its website in which a given product is promoted. In Switzerland, customers can use an online calculator to measure and compare the carbon footprint of products throughout their life cycle. Special breakfasts are organised in the UK

to explain the different types of certification to customers and there is a consultancy service for customers wishing to launch their own certification drives. In Poland, Map has pioneered one of the first eco-friendly paper foundations with the aim of fostering awareness among manufacturers and publishers, as well as teachers, parents, children and the media of the environmental benefits that accrue from eco-friendly papers.

(1) FSC® (Forest Stewardship Council): certified compliance with strict environmental, social and economic criteria throughout the manufacturing process.

(2) PEFC (Programme for the Endorsement of Forest Certification): certification of compliance with sustainable forest management criteria.

(3) Blue Angel is an environmental label created in 1977 under the impetus of the German Environment Ministry. Nordic Swan is the official Eco-label certification used in Denmark, Finland, Iceland, Norway and Sweden.

1

COMMITMENTS

Antalis Switzerland: carbon audit transparency

Antalis is the fi rst paper distributor in Switzerland to offer customers a range of products and services whose carbon footprints have been audited in 2010 in accordance with ISO 14040 and ISO 14044. These carbon audits, which are prepared by an independent agency and validated by the certifi cation company SGS using Life Cycle Analysis (LCA), provide customers with a basis for making decisions on what products they should buy. They measure and compare the carbon footprint of the products or services throughout their life cycle, from extraction of the raw materials used to make them through to their elimination, and including all of the stages and logistical processes involved in their use. By posting LCAs and carbon audits for a selection of over 50 graphic and offi ce papers at www.greenpaper.ch, Antalis is reasserting its commitment to eco-friendly principles.

2


29 suppliers, representing 90% of Antalis’ product offering, comply with the group’s Supplier Code of Conduct.

A tight rein on our carbon footprint

In all of its businesses, the Group strives to control and reduce its

carbon footprint, especially through certification.

Water and energy as well as plant and mineral materials and chemical prod-ucts are needed to manufacture paper and the processes used also generate

waste that must be carefully controlled and treated. Consequently, carbon footprint reduction is now a key part of Arjowiggins’ strategy.

Reducing the environmental footprintIn order to reduce its carbon footprint(1), Arjowiggins constantly strives to reduce its consumption of fossil fuels and promote sources of renewable energy with a smaller carbon impact such as cogeneration and, more recently, biomass boilers. Energy optimisation plans are continually deployed involving alternative uses for the heat produced in the manufacturing processes and new refining techniques.Arjowiggins’ strategy is based around control-ling its use of and preserving natural resources. Action plans have been deployed at all of the

Group’s plants to reduce water consumption, especially by reusing water already consumed, and waste treatment is being optimised using systems that condense and recover waste gases. The Arjowiggins Graphic plant at Dalum, Denmark, which manufactures recycled paper from deinked pulp, was awarded the PPI(2) prize for 2010 in the ”Water efficiency” category for the sharp reduc-tion it achieved in the volume of water used in deinking processes. Lastly, waste consisting mostly of sludge from waste treatment facilities is recy-cled in different sectors, including agriculture and construction (brick-making).Even though Antalis’ distribution activities have a relatively low environmental impact, the group plays an important role in the graphic chain in guaranteeing the quality of the products and services offered to customers and so commitment to sustainable development forms a key plank of its strategy. Antalis published a Sustainable Development Charter in 2006, setting out its commitment to sustainable development through its businesses, operations and people. The company’s regions have also continued to roll out the 2008 five-point action plan focusing on reducing its carbon footprint in procurement, energy, business travel, supply chain and waste management.

Guaranteeing traceability (chain of custody)With the exception of the Greenfield plant where certification is pending, all Arjowiggins plants have obtained ISO 14001 certification which

RECYCLING

Priplak, where waste gets a new lease of life

Priplak is Arjowiggins’ subsidiary specialised in the production of

polypropylene sheets for use in graphics, fi ling products and packaging. One of the big advantages of polypropylene is that it can be recycled a

number of times without any signifi cant alteration in its technical characteristics or performance and Priplak has launched a major drive to recover industrial waste materials from its customers. This waste is then used to produce specifi c ranges of 100% recycled products from polypropylene.

pi

1


SUSTAINABILITY / The Environment

Over 120Antalis sites in 32 countries are FSC®/PEFC-certified.

is a testament to the group’s commitment to environmental management based on continual performance enhancement. The group has also incorporated this approach into its range of recycled, carbon-neutral, FSC®- and European Eco-label certified papers. For Antalis, environmental certification is vital. It guarantees product traceability (chain-of-custody) for customers at all stages of production and

distribution in all countries. In 2010, Antalis became the only distributor on the market to set up a multi-site FSC® and PEFC certification process for 120 entities in 32 different countries which standardises auditable data in order to guarantee customers the highest possible level of transparency. The use of identical standards means that all countries in which Antalis is present are required to meet the same environmental requirements. In 2010, Antalis became the first distributor in the UK and only the fourth company to obtain PAS 2020:2009 certi-fication, the first and only environmental standard for direct marketers.

Responsible procurement practicesProcurement is also a key focus of Group strategy. In the product design phase, Arjowiggins’ teams focus on selecting environmentally-friendly paper pulp, raw materials and additives. Consequently, the centralised purchasing departments have forged close relations with key suppliers in order to secure supplies of mainly FSC®-certified paper pulp from sustainable forest management programmes.29 of the company’s suppliers, representing 90% of its products and services, have adopted the Supplier Code of Conduct drawn up by the Group or apply their own code of conduct which complies with the principles set out in the Code of Conduct.

(1) The footprint represents all direct and indirect greenhouse gas emissions in the paper manufacturing process (raw materials, transport, production).

(2) PPI: Pulp and Paper International Awards.

2010 2009 (1) 2008

Water consumption (m3/paper tonne) 26.0 26.3 26.2

Energy consumption

Fossil fuels (kWh/paper tonne) 1,529 1,650 2,299

Electricity (kWh/paper tonne) 897 906 885

Liquid effl uents after treatment

Volume of effl uents (m3/paper tonne) 23.1 23.5 23.6

Total suspended solids (TSS) (kg/paper tonne) 0.38 0.36 0.71

Chemical oxygen demand (DCO) (kg/tonne paper) 2.28 2.32 2.9

Biochemical oxygen demand (DBO5) (kg/paper tonne) 0.34 0.35 0.51

Gas effl uents

CO2 emissions (kg/paper tonne) 361 378 414

NB: These data correspond to average values for the whole group. Significant differences may exist between different plants due to the type of products manufactured.(1) 2009 data are adjusted for changes in scope of consolidation.

ARJOWIGGINS Environmental performance indicators

1 – Biomass energy at the Dalum Papir

plant in Denmark.

2 – Enzymatic action on cellulosic

fibre.

GREEN ENERGY

Innovating to consume less

Arjowiggins constantly invests in new technological processes to reduce the energy consumed in manufacturing. In tracing paper production, which is the most energy-intensive sector, Arjowiggins Creative Papers has developed an enzymatic refi ning process that cuts electricity consumption by a quarter. This technique took two years to develop and it replaces electricity with a more eco-friendly source of energy without compromising on product quality. The Arjowiggins Graphic plant in Dalum, Denmark, uses a steam recovery system not only to gradually reduce its gas consumption, but to provide an alternative to electricity for domestic heating in the city of Odense. New investment in 2010 boosted output at the plant and helped double the number of households benefi ting from this green energy.

2


autonomous divisions, and Antalis was in the process of integrating Map. Consequently, in 2010, Group Human Resources launched a review of potential HR resources in the medium term in order to help in strategic planning. Group-wide succession maps were prepared and validated by Antalis and Arjowiggins career committees and backed up by action plans deployed in early 2011 to be monitored by the Internal Audit department.

Dynamic employee relationsGiven the specific local and cultural features of both the Group’s distribution and production businesses, human resources are managed on a decentralised basis as the most effective way of fostering effec-tive two-way communication with employee repre-sentatives. Obviously, Arjowiggins’ reorganisation into autonomous divisions impacted these channels of communication and, in addition to European

Shared objectivesSince the creation of a Group Executive Committee in 2009, Sequana deploys an operational focus to coordinate overall Group strategy more effectively and to boost the operating performances of Antalis and Arjowiggins. A two-day seminar was held for the first time in September 2010, bringing together the Sequana, Antalis and Arjowiggins Executive Committees in order to pool experiences, analyse the specific features and challenges of the different businesses and highlight potential synergies.In the same vein, senior executive compensation policy in both Arjowiggins and Antalis was reviewed to link the variable component of compensation more closely to the Group’s long-term performance and financial objectives.Succession plans for key managerial functions had also been disrupted in both companies: in 2008 Arjowiggins was restructured around five

Underpinning the Group’s strategy

Sequana is present in 50 countries and employs 12,900 people, two-thirds

of which are in Europe. The Group’s human resources policy is focused on

rallying employees around key strategic objectives and fostering two-way

dialogue throughout all of the businesses.

The Academy’s fi rst training courses began in France in January, and are gradually being rolled out to 16 countries across Europe. The creation of the Academy is key to the future of Antalis, as it will help boost operating effi ciency, train and retain the Group’s employees and also attract new talent. By giving sales teams the resources they need to achieve excellence in their relations with customers

through an original, complementary approach based on coaching and e-learning, the Academy will be the driving force behind Antalis’ new commercial model.It is the key to achieving a genuinely customer-centric culture.

Alistair Wade, Antalis Sales Academy Director

“ The Academy is the cornerstone of our customer-centric culture”


SUSTAINABILITY / Human resources

Average number of employees by geographic area

France

28%Rest of the world

16%

UK

14%

United States

6% Europe


36%

and French Works Council meetings, a series of meetings were held in 2010 with Arjowiggins’ trade unions. Dialogue with employee representatives was also reorganised based on a clear distinction between Arjowiggins and divisional responsi-bilities: employee savings schemes and pension schemes continue to be handled at Arjowiggins level, however, the agreement on forward-looking skills and career management, mandatory annual negotiations, issues surrounding manual positions and initiatives in favour of seniors or gender equality are now dealt with at division level.In Antalis, the terms of office of certain members of the European Works Council expired in late 2009 and the new members received training in how to effectively exercise their representational functions.

Training: building for the futureIn 2010, Arjowiggins continued to pursue its training strategy focused essentially on the protec-tion of employees and Group facilities.Antalis has created a Sales Academy as part of the RACE 2012 programme, with the clear-cut goal of training and developing sales teams to achieve excellence in customer relations and customer service. This is the cornerstone of the new sales approach and a key means of achieving an advan-tage over competitors. To help it design and roll out its training programme, Antalis worked with a UK-based training organisation with a network of offices across Europe with proven, recognised expertise in developing in-house sales acad-emies. The originality of the Antalis Sales Academy resides in its two-pronged approach: providing sales training to enhance product expertise and develop selling skills, while offering participants post-training skills consolidation and coaching in their day-to-day working lives.To ensure that sales teams and sales managers have the same understanding of the RACE 2012 project and its goals, the training programme kicks off with the “Antalis Way”. This day-long session focuses on the five key objectives of RACE 2012 and allows trainees to share a common view on what constitutes excellence for customers and for the Group, using interactive modules that include a “Day in the Life of a Customer” workshop. This is followed by specific training for managers and by two specific training days for the sales teams (Field Sales – Sales Advisors – Telesales). This training is designed to show how to add value to customer relationships and how to achieve the objective of “Customer Excellence”.

As well as classroom training, the programme also involves exercises and activities such as role plays, e-learning modules and self-training, enabling each participant to advance at his or her own pace. Once the course is over, sales teams can consult online training tools provided by the Academy to consolidate their skills. Day-to-day, they can also benefit from the ongoing support of managers who have been trained in coaching methods, and this will help their teams apply the new skills and techniques learned. A skills assessment will be performed regularly to identify areas that need to be improved. The first training courses (Antalis Way day) kicked off in France in November 2010. Over the next two years, all of the Group’s 2,300 sales staff will complete the training programme.

Launch of

RACE 2012 in

Sweden.


Safety at the heart of all our businesses

The safety of employees in both production and

distribution activities has always been a key Group priority.

It uses a programme to encourage the safe use of industrial

machinery by focusing on individual behaviour.

Safety policy is handled by a dedicated department and it is both a strategic priority and a key performance indicator. It is deployed through programmes that

take account of the specific features of each of the production and distribution businesses and initiatives that involve employees in improving their working environment.The five-year “Manufacturing paper safely” programme was launched in 2009 in Arjowiggins around two broad themes: the primacy of employee physical welfare over the continuity of production and the necessity to focus on behaviour and the protection of facilities in tandem.

Safety concerns everyoneProtecting machines is indispensable to employee safety, however, raising awareness and involvement levels is also essential. Each Arjowiggins division is responsible for preparing its own version of this programme. In 2010, the Palalda plant (France), specialised in manufacturing paper for the medical sector, provided a great example of just such a blend of participation and interaction. Shop floor meetings were organised to define needs and to adjust and validate solutions accordingly around

plans displayed in each workshop. A number of tools were used to guide behaviour including a film on safety in the workplace featuring people talking about work-related accidents, followed by constructive dialogue between operators and management. This film is now an integral part of the orientation programme for new employees along with a film entitled “maison sécurité” (“a safe house”) featuring potentially risky situations both inside and outside the workplace.For the past two years, Antalis has been organising seminars in most European countries on protecting people and goods. They are tailored to each country or region and bring together operating managers, safety coordinators and maintenance technicians from the distribution centres.

The creation of “Safety Corners” has considerably boosted employee awareness, motivation, and participation in relation to safety. We use these areas to display alerts, important safety-related information, best and not so good practices, and to collect suggestions, but their key role is to provide a forum for

exchanges between employees and a place where safety meetings can be held. Safety Corners are easy to spot and have been set up in all warehouses in Spain and Portugal. Aside from this initiative, warehouse managers also participated in a Group safety seminar where we learned a new methodology and approach for

deploying this innovative process. Forklift truck drivers also received training and participated in workshops focusing on the seven main risks they face and how best to contain these risks. In a nutshell, this new safety-oriented culture is a whole new way of working!

José Manuel Viñambres, Logistics Manager, Antalis Iberia.

“Safety areas in all warehouses”

Safety corner in the Antalis logistics centre in Velilla, Spain.


SUSTAINABILITY / Safety

They provide an opportunity for consolidating or launching initiatives to enhance safety in the different countries. In Spain, as well as the crea-tion of “Safety Corners” in all warehouses in 2010, a project focused on the manner in which forklift trucks are driven culminated in a standard prac-tice based around a simple idea: a permanent one-metre security radius around all forklift trucks.Group Safety management also disseminated general alerts to share experiences and raise awareness of certain risks in order to bolster actions being deployed by security coordinators both on the distribution and production sides of the business. In 2010, 28 of these alerts went out, including 9 that were common to both busi-nesses, and this proactive process was rounded out by specific alerts issued for each individual Arjowiggins division and plant.

Creating a safe working environmentThe Group has deployed an energetic certification drive to provide employees with the methods and processes inherent to a safe working environ-ment. 12 Arjowiggins plants out of 27, as well as 9 of Antalis’ main European distribution centres, are classified as a High Protected Risk (HPR) against fire.OHSAS 18001 certification provides an essential framework for an effective, continually evolving safety management system as well as external, independent recognition of the maturity of the Group’s safety management processes. Arjowiggins is aiming for 100% certification at all of its plants by the end of 2012. At end-2010, 10 out of 27 plants had obtained certification, 5 more than in 2009.

Stéphane Giral, Manager of the Palalda plant (France).

“Battling entrenched attitudes and changing mindsets”

“We have observed that employees have an almost fatalistic attitude to industrial accidents.” This is how the work psychologist wound up his address at the Palalda plant in the wake of a serious accident that took place there in 2008. The trauma experienced by the teams at that time helped unite management and the CHSCT (committee focusing on hygiene, safety and working conditions) behind a two-pronged safety policy focusing on protecting machines and changing mindsets. A fi lm (French title: “La sécurité, on s’en mêle”) drew a parallel between safety on the shop fl oor and on a rugby pitch (rugby is a popular local sport) and creating a “safe house” helped drive home the idea that safety can be enhanced by a major change in the mindsets of both operators and supervisors. This approach now forms the basis for general safety training. There is still much to do, particularly in combating conscious bad practices and unconscious human error. Zero accidents in the workplace remains a goal that we are all striving to achieve – and we’re determined to get there!

Machine guarding at the Palalda plant in France.

24.9

0.25

0.17

0.30

201020092008

28.6 22.9

20.9

0.45

0.29

2010200920082003

31 19.721.3

Frequency and seriousness of work-related accidents

Incident rate: number of Lost Time Accidents/number of Full Time Equivalent Employees (permanent and temporary staff) x 1,000Severity rate: number of working days lost/total number of hours worked x 1,000

Antalis

Arjowiggins

Incident

rate

Seriousness

index


A belief in solidarity

Sequana’s corporate philanthropy programme is focused on

making culture and education as widely accessible as possible

and underpinned by principles of solidarity and commitment.

It gives rise to concrete initiatives that involve the local teams

in all of the countries in which the Group is present.

Sponsoring young artistsAntalis was also active in supporting design and writing in 2010. In Romania, all of the documents for the 12th Young Journalists Prize in Bucharest were printed on Antalis paper. In Thailand, a number of design initiatives were supported through paper donations, including “I am a Thai Graphic Designer”, and Conqueror pads and pencils were given to participants in the “Design Decode” seminar organ-ised by the Thailand Creative and Design Centre. In Hong Kong, the documentation for the first international “Positive Posters” competition was printed on paper donated by Antalis.

Promoting cultureAs a recognised premium paper producer, Sequana has been supporting the Louvre Museum for quite some time and for the fifth consecutive year it helped supply the catalogues for its temporary exhibitions in 2010. These catalogues are printed on Arjowiggins’ papers, carefully chosen to show-case all of the artists’ depth and creativity. Sequana has also been sponsoring the prestig-ious Paris International Contemporary Art fair (FIAC) since 2008 and this year the catalogue, bookmark and the private tour were all printed on Arjowiggins’ papers. The 37th Fair was held from 21 to 24 October and welcomed 195 art galleries from 24 countries and 85,662 visitors, i.e., 6% more than in 2009.The Group also sponsored an original idea by the designer Philippe Millot, resident artist at Villa Médicis in Rome, based around a series of 26 illus-trations inspired by Cicero’s letters to friends. Copies of this “library of friends” were printed on different papers supplied by Arjowiggins and will be published in 2011.

1, 2 – Exhibition

catalogues for

the Louvre

Museum.

3 – FIAC

catalogue.1 2 3


SUSTAINABILITY / Sponsorship

In Poland, Antalis has been sponsoring the Junk Fashion Show in Krakow for a number of years now. It is organised by the Krakow School of Fashion Design to showcase clothes made out of recycled materials. Antalis has also been a loyal sponsor of the Polish national packaging competition since its inception in 2006. Finally, in Estonia, Antalis gave

a helping hand to a design competition organised by Estonian artistic directors. It put up the prize for the “25 best designed books” and supplied the catalogue paper.

EVENTS

Arjowiggins Creative Papers supports tomorrow’s leadersIn 2010, Arjowiggins Creative Papers sponsored the fi rst international forum for the leaders of tomorrow via its Conqueror brand. “One Young World” brought about 1,000 delegates from 110 countries together in London in February 2010 and it was attended by Kofi Annan and Desmond Tutu. Bright young people from all over the world (all participants were less than 25 years old) were given an opportunity to debate and give their opinions on major contemporary issues and Arjowiggins sponsored seven delegates from China, Thailand, the UK, France, Malaysia and Kenya. All delegates were presented with

Conqueror recycled CX22 paper to help organise and express their ideas. They also took part in the Blank Sheet Project in which a giant sheet of Conqueror paper was hung on the wall and the delegates were asked to complete the sentence: “If I could do just one thing to make this world a better place, I would…”. This very original experiment, which provided the Conqueror brand with exceptional visibility, will be repeated in 2011. Next year, the forum takes place in Zurich and Conqueror will once again be an active partner.

4 – Arjowiggins

customers’ visit

to Villa Médicis.

4


Sponsoring education and health initiativesSequana is present in over 50 countries and it supports many local education and health initiatives. Child-focused initiatives are a priority and in 2010 Antalis employees in Romania contributed clothes, money and foodstuffs to a foundation that helps orphaned children. Lithuanian employees chose to support two associations – Ragute, which looks after child cancer victims, and Diabites Plius, which helps young diabetics. In Poland, Antalis has been partnering the Synapsis Foundation for autistic children for over ten years.Various countries have also been organised in the fight against serious illnesses such as cancer. Denmark sponsored the 2010 calendar of an anti-cancer association and the UK supports the annual “Wear it pink” day to collect funds for cancer research. Ireland was also involved in this awareness-raising initiative.Several countries also lent a helping hand to victims of natural disasters which occurred in 2010. In China, a donation was made to help victims of the March 2010 earthquake in Taiwan and after the earthquake on 12 January in Haiti, the teams in Hong Kong quickly joined forces to make a dona-tion to the Red Cross.Map Poland has entered into an educational part-nership with the publisher Opolgraf focused on the “Opole Inspiration Factory Project” initiative. Debates were organised between writers, jour-nalists and bloggers around various topics as a means of promoting books and reading in general and this initiatives is part of Antalis’ longstanding commitments in this area.

Antalis actively partners projects to encourage reading. In 2010, Antalis supported the national campaign “All of Poland Reads to Kids” organised by the ABCXXI Foundation. This program has been running since 2001 and it aims to raise awareness of the importance of reading to children among the public at large. Every year, 2,000 volunteers from throughout Poland (teachers, librarians, educators, etc.) are involved.

Map has been a stalwart partner since the programme began through its paper donations and in March 2010 it received a medal from the Polish Ministry for Culture in recognition of its support. Map was also involved in another cultural project, “Opole Inspiration Factory Project”, in 2010.

PRIZES

Promoting reading

Arjowiggins has also continued to be a partner to Amnesty International, the Paris Committee of the Anti-Cancer League (Ligue contre le cancer) and Enfance majuscule by donating the paper they use for the invitations and programmes to their fundraising events.

Programme for

an Amnesty

International

fundraising

evening.

Antalis receives an award for its contribution towards promoting reading in Poland.


SUSTAINABILITY / Sponsorship

Designed by:

Photo credits:

Photothèques Antalis et Arjowiggins©

,

Arjowiggins Healthcare - All rights reserved,

Foto & Co (Denmark), William Beaucardet,

Jean-Lionel Dias, Musée du Louvre/Angèle Dequier,

Grégoire Korganow, Julia Fullerton-Batten,

Gilles Rolle/Réa, Corbis.

This report is printed on eco-friendly paper

manufactured by Arjowiggins Graphic and

distributed by Antalis: Cocoon Silk 350g for

the cover and 150g for the inside pages.

Cocoon Silk is a 100% extra-white coated

paper, FSC®

Recycled (FSC C021878) and

European Ecolabel (FR/011/003) certifi ed.

By choosing to print its annual report on Cocoon Silk,

a 100% recycled paper instead of non-recycled paper,

Sequana has saved 1,471 kWh energy, 15,921 litres of water

and 137 kg of CO2, which is equivalent to a journey of

981 km in an average European car or 544 kg of waste.

Printer: Bergame, IMPRIM’VERT®

,

FSC®

and PEFC certifi ed

Printed in France in May 2011

© Sequana®

All rights reserved

* Source: BREF European average (information

on paper made from virgin pulp). Carbon footprint

data audited by The CarbonNeutral Company.

19, avenue Montaigne75008 Paris – FranceTel.: +33 1 56 88 78 00E-mail: [email protected]

Antalis122, rue Édouard Vaillant92300 Levallois-Perret – Francewww.antalis.com

Arjowiggins20, rue Rouget de Lisle92130 Issy-les-Moulineaux – Francewww.arjowiggins.com

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