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Annual Report 31 March 2014

FM Logistic – Annual Report – 31 March 2014

Welcome to a new world of opportunity.“ ”


ContentsThe FM Logistic Group

6 FM Logistic: a leader in international supply chain management

8 FM Logistic: provider of choice

10 Continuing our transformation and ensuring we reach our strategic objectives for 2022Interview with Jean-Christophe Machet, CEO of FM Logistic

12 Our strength tomorrow: field intelligenceStatement by Jean-Claude Michel,Chairman of the Board of FM Logistic

14 Executive committee

15 Board of Directors

Ambition 2022 / 2013 results

18 Ambition 2022: mobilising resources to become an international provider of choice

20 Successful opening of a new world of opportunity

24 The entire chain of logistics expertise, from producer to end consumer

26 Information Systems Engineering: solid expertise for inventing the future

28 Management System: the guarantee of operational excellence

Sustainable development

33 Responsibility embedded in the culture of FM Logistic

34 Group responsibility: recruiting today the competencies of tomorrow

36 Corporate Social Responsibility: engagement aligned with the values of FM Logistic

37 Environmental responsibility: a requirement strengthened by the Group's international growth

Financial information

40 Consolidated balance sheet

41 Consolidated income statement

42 Consolidated cash flow statement


The FM Logistic Group1


FM Logistic: a leader in internationalsupply chain management

THE FM LOGISTIC GROUP

Since its creation in 1967, FM Logistic has grown into a leadinginternational actor in the warehousing, transport, co-packingand supply chain management businesses. Independent andfamily run, the Group is a recognised expert by the Food,Retail, Home and Personal Care (HPC) sectors. It also servesclients in the cold chain, luxury, cosmetics, healthcare andindustrial sectors.Now present in 12 countries with 18 730 employees, FM Logisticgenerated turnover of over €1bn as of 31 March 2014, andregistered growth of 17.6% over the previous financial year,with net profit of €12.8 M, or an increase of 23.8%.

• France• Brazil• China• Spain

• Hungary• Italy• Poland• Czech Republic

• Romania• Russia• Slovakia• Ukraine

Key figures on 31.03.2014

FM Logistic is also:

• 2 900 000 m² of warehousing space,• 2 500 vehicles managed.

And every year:

• 1 300 000 deliveries,• 900 million packs assembled,• 500 million parcels prepared,• 200 million units of consumer products.

employees

Growth in turnover (in M€)

Growth – at constant scope 69.2

External growth 120.0

Foreign exchange effects -33.4

Total Variation 155.9

Growth in operating profit (in M€)


External growth 3.8


Total Variation 6.9

Growth in net profit (in M€)


External growth 1.5


Total Variation 2.5


Retail 27 %

Industrial & Electronics 24 %

Home & Personal Care 10 %

Luxury & Cosmetics 6 %

Health 3 %

Food 30 %

Distribution of turnover by business sector

Eastern Europe 29 %

Central Europe 24 %

Western Europe 7 %

Brazil 4 %

China 1 %

France 35 %

Distribution of turnover by zone

Transport 34 %

Co-packing 9 %

Warehousing 57 %

Distribution of turnover by activity

Central Europe 22 %

Eastern Europe 19 %

Western Europe 13 %

China 1 %

France 38 %

Distribution of operating surfaces by zone

Brazil 7 %

Transport 25 %

Co-packing 10 %

Warehousing 65 %

Distribution of operating profit by activity

France 25 %

Central Europe 23 %

Brazil 7 %

Western Europe 4 %

China 1 %

Eastern Europe 40 %

Distribution of employees by zone

Increase in turnover (in M€)

807

31.03.2012

887

31.03.2013

1 043

31.03.2014

Increase in operating profit (in M€)

26

31.03.2012

30

31.03.2013

36

31.03.2014

Increase in number of employees(Temporary workers included)

14 177

31.03.2012

15 345

31.03.2013

18 730

31.03.2014



FM Logistic: provider of choice

To win over new markets and consolidate its position by anticipating the strategies of itsclients, FM Logistic has developed a comprehensive functional Food solution guaranteeingproduct traceability, improved service rates and inventory management. To ensure thesanitary conditions of the food products handled in its warehouses, the Group conducts anHACCP study for each of its clients, which identifies, evaluates and controls the significantrisks linked to food safety.

Food 30%of turnover�

To be able to swiftly adapt to changes in the business models of its retail clients, FM Logisticoffers an innovative, modular and highly effective dedicated solution. Focused on thereactivity of service to stores and combined with a scalable information system, this offeroptimises fill rates and reduces distribution costs.

Retail 27%of turnover�

Thanks to its know-how in co-ordinating delayed differentiation centres and optimisinginventory levels, FM Logistic has developed a solution that secures the relationship thateach of its clients has with its consumers.

Industrial/electronics 24%of turnover�


FM Logistic: provider of choice

To ensure on-shelf availability of their products, brand names in this sector must adopt alogistics model designed with a supply chain free of weak links. For these clients FM Logisticoffers an added value solution guaranteeing the streamlined distribution of their products,thereby boosting service rates, providing more accurate management of inventories andmaking innovative services available to optimise every logistics plan.

Home and Personal care 10%of turnover�

FM Logistic makes available to its clients the high quality services that ensure the safetyand security of end-to-end supply chain management of luxury goods and cosmetics,thereby enhancing the effectiveness of its clients’ multichannel distribution strategies andpromotional campaigns, while also accelerating time to market.

Luxury/cosmetics 6%of turnover�

Managing the logistics of healthcare products requires strict compliance with highlydemanding norms. These constraints provided the impetus for FM Logistic to create FMHealth Supply Chain, a transversal solution meeting the full scope of requirements of thishighly regulated and controlled physical and information system environment. The FM HealthSupply Chain solution is designed for pharmaceutical companies in direct contact withdispensaries and hospitals.

Health 3%of turnover�



What is your assessment offinancial year 2013/2014?

Jean-Christophe Machet: It has been avery satisfying year, the first in our Ambition2022 plan and, of course, our short-termthree-year plan. This year we registeredgrowth of 21% in turnover (excluding ex-change rate effects) and an improvement of23.5% in our operating profit, which rose to36.4 M€. We are ahead of our forecasts interms of sales and financial performance.However, none of this was achieved by acci-dent. Our results are the fruit of the considera-ble efforts that have been made at every levelby our FM Logistic teams over several years.

Do the previous efforts explain the Group’s speed in implementingits strategy?

J.-C. M.: Well yes. Only a few months afterlaunching our Ambition 2022 plan, in No-vember 2012, we undertook two major ope-rations to grow externally with the acquisitionof Univeg, in Russia, in June 2013, and thelogistics subsidiaries of McLane, in Brazil, inJuly 2013. The birth of FM Fresh and FM doBrasil were the reward for our teams’ invest-ment and the materialisation of the strategywe prepared with so much effort and ambi-tion. These acquisitions have enabled us to

Interview with Jean-Christophe Machet, CEO of FM Logistic

Continuing our transformation andensuring we reach our strategic objectives for 2022

consolidate our position in Eastern Europeand ensure we remain a provider of choice inRussia, expanded our operations into a newline of business, cold chain logistics, and pro-vided us with a solid foothold in Brazil, a newcontinent promising strong growth potential.These two acquisitions underscore our de-termination to rise to the challenges of theglobal logistics market. We have not beenneglecting our other engine for develop-ment either, organic growth, as we signedcontracts for over 100 million euros in newbusiness over the year.

Why are you aiming to increasethe share of transport in yourbusiness mix?

J.-C. M.: We have promised our clients wewill run faster and better than our competi-tors. They expect us to propose competitivesolutions that are adapted to each sector andcapable of covering the supply chain from endto end. From this perspective, expanding ourtransport offer is a strategic issue. Many of ourcontracts do not include this type of service.So the transport activity clearly represents animportant lever for growth. In addition, bystrengthening our transport offer we will beable to round out our e-commerce solutionsand accompany our clients in building uptheir “cross-channel” marketing strategies.


Did the continuous improvementapproach begin to bear fruit in 2013?

J.-C. M.: Our policy of continuous impro-vement is aimed at creating value for bothus and our clients. We set a goal of obtai-ning an increase of 8% in productivity insixty client improvement projects by 2016.12 actions plans are underway or achievedin four countries. Of the first 6 client impro-vement projects studied by our operationalteams, important increases in productivityhave already been identified. This is ade-quate proof to decide that every client ofthe company must have its own continuousimprovement plan in order to support andenhance our competitiveness, strengthenour operational excellence and our clients’competitiveness.

What are the HR policy practicesthe Group is following to supportits development?

J.-C. M.: The quality of our employees isone of the strategic challenges from theperspective of 2022. Taking into account ourstrong annual growth, we cannot wait to re-cruit or train for the skills we will need fortomorrow. It takes 3 to 10 years to fully pre-pare a platform director. We have budgeted

3 million euros this year to develop an inter-nal talent incubator for future managers. Si-tuated upstream from the deployment ofour strategic plan, these men and womenwill only be assigned to their operational po-sitions when they have completed their trai-ning. We have also strengthened the FMUniversity programme. In Russia, in just afew months’ time our HR teams have al-ready held 1,500 appraisal interviews toidentify high potential managers and to in-tegrate their training in FMU. Over 150 teamleaders have benefited from a skills refreshertraining or been promoted to line managerpositions. Wherever we are, our employeesare our top priority to prepare for the future.We are currently able to fill some 80% ofour managerial positions internally.

What are the prospects for the upcoming year?

J.-C. M.: In 2013, we enjoyed importantgrowth, integrated a new geographic zoneand a new business line. FM Logistic has de-finitely entered a phase of major transfor-mation which will enable us to achieve theobjectives in our Ambition 2022 plan. Wehave been mobilising our energy, now wemust also mobilise our talent and expe-rience to successfully carry out this strategictransformation. In 2014, this will of course

involve optimising the role of every memberof the organisation, making available po-werful IT processes and tools and choosinginnovative, high added value technologies.

The relevance of our solutions is anotherstrategic issue. To take full advantage of ourrole as logistics facilitator for our clients, weare going to decentralise decision-makingas close as possible to the field, to place itin the hands of those who have the bestknowledge of our clients, their needs andtheir expectations in order to simplify ope-rations and be more proactive. If the role ofthe head office of FM Logistic is to preparethe conditions for our future success, ourlocal managers must be broadly empowe-red to optimise with agility the deploymentof our strategy and drive operational excel-lence and the company’s image.

I have complete confidence in our teams tosuccessfully meet these challenges throughthe right combination of demandingness,entrepreneurship and drive.

FM Logistic has definitely entered a phase of majortransformation which will enable us to achieve the objectives in our Ambition 2022 plan.

“”



Our strength tomorrow:field intelligence

Statement by Jean-Claude Michel, Chairman of the Board of FM Logistic

Congratulations to our teams for their enga-gement in our success. 2013 has been agood year, marked overall by our improvedperformance and our profitability at constantexchange rates. We are ahead of schedulewith our three-year business plan. We havecompleted the acquisition of two strategiccompanies for our future development andin so doing have expanded operations to anew activity, cold chain logistics, and to anew continent, South America. FM Fresh and FM do Brasil are ready, willing and ableto pursue our conquest of new clients andto expand our businesses. Their respective results have even surpassed our forecasts.They are proof of our capacity to swiftly andsuccessfully integrate larger companies.

Furthermore, the new objectives of FM Logisticin terms of turnover and international pre-sence require a strengthening of our go-vernance organisation: independent andexperienced directors have been broughton board and the division of responsibili-ties between the Executive Committee andthe Board of Directors is now clear. Ourstructure is currently aligned with that ofthe largest international groups and wehave accomplished this without losing our

characteristic agility. This modern gover-nance organisation proved its relevanceduring our two operations of externalgrowth. Each of the management bodiesinvolved in governance played its role per-fectly. When all clearly understand theirplace in the scheme of things, decisionstaken are only stronger. We have taken ad-vantage of the necessary time and pers-pective to optimise our acquisitions and tofinalise two excellent deals. The result isobvious. FM Fresh and FM do Brasil havebeen bought and successfully integrated.

In closing, given the continuing crisis in Eu-rope and an international context that re-mains very challenging, we will continue tostrengthen our fundamentals and our busi-nesses and to listen more carefully than everto our clients. We must rely on intelligencefrom the field relayed by our teams toswiftly adapt our offers to our clients, totheir ways of working and to the countries.Our organisation must evolve towards gran-ting greater autonomy and responsibility tolocal management. This approach will en-able us to reach our objectives in 2014.They are ambitious but I am fully confidentin the ability of our teams to achieve them.

We must rely on intelligence from the field relayed by ourteams to be able to swiftly adapt our offers to our clients, to their way of working and to the countries.”“



Executive committee

From left to right:

Daniel Ciz – Chief Financial Officer

Hervé Hochstrasser – Corporate Legal Director

Yannick Buisson – General Manager, France

Christophe Menivard – General Manager, Russia

Olivier Faure – Director of Operational Support Services

Pablo Gomez – General Manager, Western Europe

Jean-Christophe Machet – CEO

Carlos Velez – General Manager, Central Europe

Hervé Dujardin – Corporate Sales Director

Michèle Cohonner – General Manager, Brazil

Stéphane Descarpentries – Corporate Strategic Projects Director

Jacques Fougerousse – Corporate Solutions Director

Eric Lanciaux – Corporate Human Resources Director


Board of Directors

From left to right:

Claude Faure – Co-founder of FM Logistic

Régis Bello – Independent Director

Monique Zomeno – Independent Director

Jean-Claude Michel – President

Gilles Faure – Family Director

Marie-Laure Schreiber – Family Director

Vincent Mercier – Independent Director

Jean-Claude Michel

Former General Manager then Chairman of the Management Board of Norbert Dentressangle Group.

Founder and head of Management et Participation.

Vincent Mercier

Managing partner then president of the Supervisory Board of Roland Berger Strategy Consultants

and member of the Board of Directors of Neopost and Adie.

Regis Bello

Former CEO of De Dietrich.

Administrator (or member of the Supervisory Committee): NSC Groupe, Socomec, De Dietrich,

Ponycom, EM Strasbourg, Alsace Innovation, Fondation Université de Strasbourg.

Monique Zomeno

Former vice-president HR of Cephalon Europe group.

HR Consultant for TEVA group.

Ambition 2022 /2013 Results2



AMBITION 2022 / 2013 RESULTS

Ambition 2022: mobilising resources to become an international provider of choice

FM Logistic possesses all the resources required to become an international provider of choicein its markets. In 2012 the Group adopted a long-term strategy: Ambition 2022. Focused onoperational excellence, the Group set an objective of 10% growth per year and a targetturnover of 2 billion euros relying on 3 pillars:


Consolidating its strongpoints by:

• Focusing on its core business ofconsumer products and retail by offeringsolutions that meet expectations on costsavings in logistics and respect for the environment;

• Strengthening our position andbecoming a povider of choice in each country.

Developing new relays by:

• Offering innovative and dedicatedsolutions in sectors with strong growth,such as DIY and Fresh Food;

• Intensely developing the selectivecosmetics sector at the international level;

• Expanding geographic coverage throughacquisitions, such as this year’s purchaseof the logistics subsidiaries of Mc Lanein Brazil, which led to the creation of FM do Brasil.

Strengthening operationalexcellence by:

• Proposing comprehensive range of transport services, from the unitaryitems to 33 pallets, country by country;

• Promoting continuous improvement and growth in highly profitablecountries to boost operating profit.

1 2 3

12 projects to launch for implementing Ambition 2022

BUSINESSES

Transport

IT upgrades

Sales performance

Solutions, Innovation, New sectors

Human Resources

1

2

3

4

5

EFFICIENCY

Continuous improvementHandling/co-packing

Streamlining the Group

6

7

DEVELOPMENT

New countries

External growth

External communication

Marketing

Sustainable development

8

9

10

11

12

Focused on operational excellence, the Group set an objective of 10% growth per year and a target turnover of 2 billion euros.

“”



Successful opening of a new world of opportunity

2013 was marked by the swift implementation of the FM Logistic strategy with, in June, theacquisition of Univeg in Russia, and in July, the logistics subsidiaries of McLane in Brazil. Thesetwo operations of external growth ensure the Group is well placed as a provider of choice onthe Russian market with a solid footing on the rapidly developing continent of South America.It also expanded its logistics operations to include perishable food products.

FM Fresh: a complementary business, a provider of choice on the Russian market

With the acquisition of Univeg LogisticsRussia, in June, FM Logistic strengthened itsposition as a provider of choice in Russia androunded out its line of services to retail withtransport and warehousing under controlledtemperatures for perishable goods. In additionto its 11 platforms and 400 000 m² ofwarehousing space it already operated inthe country, FM Logistic now possesses sixmore platforms in the vicinity of Moscow,representing 100 000 m² of warehousespace with a headcount of 2 000 employeesand turnover of €80m in 2013.

A fully successful integration

The new FM Fresh entity has joined thescope of FM Russia. FM Logistic had beenpreparing for external growth for manymonths so the integration was swift: “Oursuccess,” explains Christophe Ménivard,General Manager of FM Russia, “is thanksto the motivation of existing teams that

easily adopted our Group culture. In thesecond half of 2013, we were alreadymobilised to ensure the launch of three newoperations for X5, Auchan and O’Key.”Over 300 new employees were also hired tobe able to manage the growth in businessvolume in the last quarter of 2013 alone.

Rapidly developing activities

“In February 2014, we launched Leroy Merlinon our new platform in Oroudievo,”Christophe Ménivard adds. “Following shortlybehind are Moët Hennessy, in Sidorovo, andJohnson & Johnson, in Tchekov. Early nextyear we will launch phase 2 on Oroudievo.”FM Logistic’s eighteenth location in Russia,this new platform north of Moscow, whosefirst phase of 35 000 m² was delivered inearly 2014, is designed to handle all types ofgoods. It is organised into stock sections andpicking sections both on shelves and theground (for outsize goods).


Focused on growth in 2014

Since the start of the year, FM Fresh hasstrengthened its operational and managerialcontrol, structured its reporting and securedits tools, especially its IT with the migrationof its accounting and payroll system. Themigration of the WMS is also underway.“Our priorities for 2014/2015 for the overallscope,” Christophe Ménivard concludes,“will be concentrated in three main areas:growth across all our businesses, continuousimprovement and operational excellence.”

18 platforms in Russia, of which 11 in Moscow

In regions: Saint-Petersburg, Rostov-on-the-Don, Samara,Ekaterinburg, Novosibirsk, Khabarovsk, Vladivostok

In Moscow: 5 platforms FM Logistic (Khimki, Oroudievo,Domodedovo, Sidorovo, Tchekov) and 6 platforms FM Fresh (Novokosino, Trilogy Park (3), Bykovo (2))

3 2



FM do Brasil: conquering a new continent

“”

In July of 2013, the Group acquired thelogistics subsidiaries of McLane in Brazil. Thisdecision is a milestone demonstrating thedetermination of FM Logistic to establish itselfin new regions with strong developmentpotential. This is the case in Brazil and, morebroadly, across the continent of SouthAmerica, where the Group is now developingits business from four sites: representing over 200 000 m² , counting 1 315 employees, witha turnover of €40m, all located in the vicinityof the country’s major centres of consumptionin the States of São Paulo, Rio de Janeiro andRio Grande do Sul (Porto Alegre).

The expertise of FM at the serviceof Brazil’s development

In Brazil, consumer demand is strong butthe logistics offer was unable to meet theneeds of a rapidly developing country toaccompany the growth of its internationalretailers. “FM Logistic practically had anobligation to enter this market,” explainsMichèle Cohonner, General Manager of FMdo Brasil, “because we have the expertiseand the processes they lacked in thelogistics market to optimise and secure the

services. We immediately began operationsin July, taking over the existing base ofmajor clients in the sectors of cosmetics,consumer electronics, consumer productsand automotive, among which are Natura,Philips, Nestlé and Nissan. The integrationof new Brazilian teams was a quick successbecause the culture of McLane was close toours. We have already signed several newcontracts and will now take advantage ofour European technologies to propose highadded value solutions, especially to thecosmetics and spare parts sectors.”

Planning and supporting ambitiousdevelopment goals

The professional logistics business in Brazil,behind in its development compared to

Europe, is having trouble hiring competentmanagers and employees: “Our ambitiousgoal over the next three years is to becomea major actor in logistics for consumer andselective cosmetics products“, MichèleCohonner adds. “To achieve this we have tolaunch our activities in transport and co-packing starting this year. To meet thesechallenges and prepare for the future, withfor example the opening of a new platformin the country’s northeast, we need to hireand train employees to meet our exactingstandards and skills requirements. With thisgoal in mind, we are currently in discussionswith the SENAI, the industrial apprenticeshipservice of the Brazilian business community,in order to create training dedicated tologistics services, which will be a first in thiscountry’s booming economy.”

4 platforms in Brazil: Anhanguera, Canoas, Jundiaí, Resende


China

A growing logistics presence

With a growth rate of 7.7 % in 2013, drivenmore by public investment than privateconsumption, China’s logistics marketremains highly atomised with a multitude oflow-cost actors and industrial and retailactors who prefer to control their ownlogistics operations. Despite this complicatedcontext, in 2013 FM Logistic continued todevelop its warehousing and transportbusinesses out of Shanghai. FM Logisticlaunched its business with three new clients:Décathlon, Campari and Auchan. For thelatter, FM Logistic manages warehousingand distribution to the 43 stores thecompany runs in Eastern China. “Thesecommercial and operational successes aredriving our development here,” explainsStéphane Descarpentries, Corporate StrategicProjects Director. In a few years, this countrywill be the largest consumer market in theworld. We must have a strong presence herestarting now. But what works in Europedoes not always work here. In China, wemust be a Chinese company. Fortunately wecan count on the high quality of our localteams to achieve this. They are given thewidest latitude in developing their own salesapproach and processes. China is anenormous country and our priority for nowis to strengthen our bases before expandinginto other regions.”.

2

Europe

Bases strengthened in all countries

In every country in Europe, FM Logistic hasbeen strengthening its business expertise toensure it is positioned as a local leader in itssectors. This is one of the pillars of itsdevelopment. In Western Europe, the Grouphas consolidated its position in relation toits longstanding and important clients. InItaly, FM Logistic developed and ensured itsfuture with Mondelez by approximately€20m and in Spain, the contract with Ikeain Barcelona was renewed. In a gloomyeconomic context in both these countries,FM Logistic nevertheless registered growthin turnover of over 19%. Despite theabsence of economic recovery, the Groupalso pursued its development in France,notably in the consumer products sectorwith clients such as Blédina, Henkel intransport and L’Oréal in co-packing. InPoland, FM Logistic confirmed its position asa leader by rounding out its service offer intransport and pooling as well as its freshbusiness, with the signature of a contract for€10m with Métro. In the other countries ofCentral Europe the Group registered anincrease of 10% in turnover and is nowrecognised as a credible and significant actorin the region. In Hungary, for example, itsteams started important new contracts,especially with Auchan for its perishable foodproducts and with Nestlé. Here the Group isbecoming the partner of choice for its foodand personal care clients. FM Logistic alsostrengthened its positioning in the CzechRepublic with the opening of a second sitein Prague.

4

9

7

4

33

23

27

Sales development:the future is now

To avoid waiting to recruit sales forcesadapted to its development andambitions, FM Logistic decided, in early2014, to move its three year planforward and begin recruiting to ensureit will have the sales talent and skillsrequired to accompany its clients anddrive its growth, especially in Europe:“Some fifteen new employees werehired and trained,” explains HervéDujardin, Corporate Sales Director,“notably in Ukraine, Romania, Hungary, Italy and Spain.In Germany, we now have a dedicatedsales person proposing logisticsmanagement solutions in CentralEurope and Eastern Europe to local companies.These investments in our salesorganisation are strategic.” Henceforth,each country can count on a centralhigh-level sales team, with knowledgeof its clients’ businesses specialised bysector, to optimise its answers to localrequests for proposals. Over the lastyear, the Group received 450 RFPs fortotal of €613m and signed 55 newcontracts for a total annual amountexceeding €100m. “Thanks to the newtalents we recruited,” Hervé Dujardinadds, “we will be even closer to ourclients and be able to propose solutionsperfectly designed to fit their needs.”


The entire chain of logistics expertise, from producer to end consumer


Anticipating the evolutions of the sector and in support of its drive towards achieving the strategicobjectives of the Ambition 2022 plan, FM Logistic seeks to reinvent the transport business bydeveloping a broader offer for its clients, ranging from the parcel to the full truck. At the sametime, the Group is proposing innovative logistics solutions to accompany clients in their cross-channel distribution strategies.

Many of FM Logistic’s warehousing contractsdo not yet include the transport service,which give the company a powerful leverfor growth and optimisation. The ambitionfor 2022 is to increase the share of transportto 50% of turnover generated from end-to-end of the supply chain. In 2013, 14 actionsplans were launched to reach this objective,among which:

• Development of a multi-country transport offer in Central Europe,

• Deployment of the pooling offering inseveral countries,

• Promotion of the FM brand withutilisation of trailers bearing its logo.

Taking advantage of the powerful dynamicsof international transport in Europe, theGroup registered growth this year ofapproximately 24.5% (at constant exchangerates) in this sector. The transport sector asa whole now represents 34% of its turnover.The quality of this development is evenbetter thanks to the fact FM Logistic selectsits projects and operations based on theirprofitability, privileging profit over turnover.“The outlook for transport is very good,explains Jean-Christophe Machet, CEO ofFM Logistic. The sector is undergoing adeep mutation. We are seeing the deve-lopment of Euro-regions and clusters thatenable us to serve several countries fromthe same location. Our main challenge isto get organised so we are able to inte-grate these changes and propose adaptedand innovative solutions to our clients.”

Operational excellence at the serviceof multichannel strategies

Since 2010, the e-commerce market hasundergone a deep transformation. In fact,there is a new dominant model in whichsuccess depends on the coexistence of achain of stores and a merchandising site forutilising all the possible synergies betweenthe two channels. This approach, called“omni-channel” or “cross-channel,” makesit possible for example for a consumer tosee merchandise in a store and order itonline and vice versa. Today it is spreadingamong the large retailers, and especially in the sectors of cosmetics, householdappliances and white, brown or high-techgoods, which are transforming into a blendof e-commerce with their store model toboost sales. The companies are encouragingtheir customers to pick up deliveries in theirstores so they do not have to pay thedelivery cost of the last mile. Furthermore,companies that are only present on theWeb are fighting for their survival. Amongthe actors in e-commerce, only companieswith a “cross-channel” model are currentlyeconomically viable, with just a fewexceptions. They are seeking high addedvalue solutions to improve the quality of theirservice without losing on competitiveness.Robustness and reliability of processes arekey to enabling them to face seasonal peaksin activity and strong annual growth inbusiness, most often in double digit growth.Today, among FM Logistic clients, many arelaunching into “cross-channel” models.


Thanks to its recognised expertise in ma-naging complex supply chains and takingadvantage of its knowledge of its clients,FM Logistic is able to integrate the require-ments of these multi-channel distributionnetworks to optimise the performance oflogistics all the way to the end consumer.This ensures the Group proposes relevantsolutions to logistical challenges linked tothe omni-channel model, from warehou-sing all the way to distribution by way ofhuman and IT resources. It is already thecase with Yves Rocher (Ukraine, Romania,Czech Republic), Oriflamme (Ukraine), L’Oréal(Russia), Nespresso (Hungary), Natura (Brazil),Nestlé Dolce Gusto (Czech Republic andHungary), Ferrero, Severa, EugenePerma andBrother in France. In 2013, the “cross-chan-nel” business represented 10% of turnoverof FM Logistic.

“

”Transport Organiser: flexibility to adapt with agility to client needs

Rather than merely positioning itself on a very competitive market of executants, FM Logisticstands out thanks to its capacity to organise transport at the national and/or European level.To be able to benefit from the best response times facing market fluctuations, and a fairlyfine level of coverage to meet the needs of our clients, the Group favours partnerships inFrance and even more so abroad.To ensure this choice of flexibility is not detrimental to the security of available transportresources, FM Logistic sets up an organisation that relies on different types of partners.Some transporters dedicate resources in their fleet under the framework of structured long-term commitments, others are faithful partners of the Group and some, in the end, areoccasionally recruited so that no economic dependence weighs on the relationship. Driverscriss-cross the country with tractor trailers belonging to FM Logistic or which are rented inits name. Today, the Group has managed to build up a network of subcontractors in thecountries where it is located. Their loyalty translates into very low rotation of executants,which in turn guarantees the quality of services at the market price.

Transport 34 %

Co-packing 9 %

Warehousing 57 %

Distribution of turnover by business



Information Systems Engineering: solid expertise for inventing the future

Today, for every business that must handle complex flows, information technology plays anessential role in achieving operational excellence in the monitoring, managing and continuousimprovement of processes. Strategic complements to traditional know-how of the logistician, thesetools make it possible to control each link in the logistics chain. The IT Expertise of FM Logistic,FM2i orchestrates the integrated and adaptable information system covering the full range ofthe Group’s businesses.

Driver of the IT strategy of FM Logistic, FM2imobilises its expertise in consulting, integra-tion and maintenance to adapt and conti-nually upgrade the solutions deployed. Itthereby greatly contributes to the addedvalue of the FM Logistic offer.

A new 5-year master plan

In 2013, following the implementation ofthe new governance organisation and therequirements of the Ambition 2022 plan,FM Logistic launched the development ofan IT master plan. “It is a major step in theprocess of updating our information systemand aligning its features with our strategicobjectives, explains Michel Distel, Directorof FM2i. From transport to external growthby way of innovation, our system must fa-cilitate and optimise our current operationsand those of the future. We engaged IBMto conduct the first phase of the audit between last March and June.” Manyworkshops were organised in every countryand with all the businesses to identify theirneeds and areas of improvement. “Begin-ning in September, we drew up a masterplan with the will to offer a global IT service

as close to the business processes as pos-sible, more adaptable and with better performance. We now have a referencedocument that lists our areas of improve-ment over the next 5 years.”

Increasing competitiveness and reliability

The Group is making important investmentsto ensure it reaches the objectives it has set,and especially in terms of competitivenessand reliability of service. “We have alreadymanaged to improve the stability of the sys-tem by about 20%, Michel Distel observes.Our onsite solutions are now more robustand reliable.” Over the year, the Group alsoentrusted to Argon Consulting the perfor-mance of an audit of our transport tools toevaluate the actions to undertake to ensurethey are brought up to date to meet theambitions of FM Logistic in this domain. Finally, in 2013, FM2i pursued its active participation in the “GS1 Logistics Forum,”European working groups aiming to pro-mote standards and secure solutions forthe processing of data in the transport andlogistics sectors.


Oxygène: a warehousing performance tool

Among the various software applications developed by FM2i, Oxygène’s function is to optimise warehousing management, improveoperational performance and ensure product traceability. Its flexibility also enables us to manage several storage methods, the levels ofcontrol of merchandise, preparation of pallets and order picking.

It also makes it possible to document each step of the merchandise life cycle, its entry and exit from the warehouse to the end consumerand to transmit this documentation in real time to the different actors of the project: to FM Logistic, to the client or to the retail outlets. The best location inside the warehouse is given to each piece of merchandise according to its speed of rotation, its potential physicalconstraints, its regulatory classification, the proximity to workshop providing customised co-packing, etc.

All its subsequent movements are then tracked. During the preparation of an order, the goods are selected and placed on a pallet optimisedby their geographic location inside the warehouse. Order preparers are guided by radio communications in order to limit the distancetravelled and to control their preparations according to the weight of the parcel. Oxygène accompanies them all the way to the loadingdock where the entire pallet is given a delivery slip. This system ensures traceability all the way to the shelves in hypermarkets.

IT Transmission

Import

Factory

DistributionCentre

PLATFORM

Store

�

Transport�



Management system: the guarantee of operational excellence

As the logistics partner of its clients, FM Logistic provides guidance to major international groupsin the development of their new markets. In matters of process, infrastructure and regulatorycompliance, the Group relies on its QHSE organisation, enabling it to guarantee a level of qualityand consistency as well as reliable performance around the globe.

In 2013, FM Logistic rolled out a three-levelmanagement system: on the scale of thecompany, the countries and the platformsfrom which it operates. If it is the Group’sresponsibility to define the most exactingstandards for all, each country and eachplatform is granted wide latitude inadapting to and complying with localregulations and realities, as well as theneeds of its local industrial clients. FromBrazil to China by way of Europe in itsentirety, FM Logistic QHSE teams are actorsin a single policy of quality whose objectiveis shared by all employees of the Group:operational excellence.

A comprehensive system for global quality

“Ambitious and global, our QHSE policy isbased on regulatory compliance, risk pre-vention and continuous improvement, ex-plains Olivier Faure, Corporate Director ofOperational Support Services. The principlesgoverning its implementation are relayed bya standard set of rules and tools and trans-mitted through continuous training of em-ployees. The system deployed by FM Logisticcomplies with the strictest certifications andnorms in terms of hygiene, safety, traceabi-lity, manipulation of hazardous materialsand best practices by sector. Our clients canrest assured their products are handled withstate-of-the art practices and equipment ina compliant environment, at each step ofthe supply chain and in every country.”

Certifications compliant with the most exacting international standards

FranceISO 9001ISO 14001OHSAS 18001

SpainISO 9001

PolandISO 9001ISO 14001ISO 22000IFS

Czech Republic ISO 9001 / HACCPISO 14001ISO 22000OHSSAS 18001

RussiaISO 9001

UkraineISO 9001

SlovakiaISO 9001ISO 14001ISO 22000OHSSAS 18001

HungaryISO 9001 / HACCP

RomaniaISO 9001ISO 14001OHSAS 18001


The FM Logistic management system, a pil-lar of its organisation, relies on a mappingof processes that guarantees the consistencyand security of its organisation through theapplication of common and mandatoryrules. The best practices derived from thisapproach are then rolled out to every coun-try taking into account local requirements.FM Logistic’s Management System is basedon three levels of maturity leading to opera-tional excellence (gradual progress, chal-lenges and sharing best practices). It alsocovers the processes deployed and managedand ensures their continuous improvementfrom the “under control” phase.(cf. diagram, opposite).

A common methodology for riskmanagement

In 2013, under the framework of its mana-gement system, FM Logistic also launcheda common methodology for identifyingrisks and validating their acceptability. “Inour countries, Olivier Faure adds, we trainedthe employees concerned until September.Since then, our teams have been analysingrisks linked to their activities in order to eva-luate and rank them according to their po-tential impact on our strategy. By the end ofthe year, we will have fully deployed our riskmanagement system and launched the ne-cessary action plans to control those with alevel the Group considers unacceptable.”

Common practices (common core)

Business fundamentals

1

Mandatory rules

2

Level of compliance

3

The effective system

“under control”

4

The efficient system

5

Excellence

Ambitious and global, our QHSE policy is based on regulatory compliance, risk prevention and continuous improvement.

“”


Sustainable development 3


“

”

Group know-how combined with values

SUSTAINABLE DEVELOPMENT


Group know-how combined with values

Three main areas of engagement supporting sustainable development

Since FM Logistic was founded, the mentality ofresponsibility has never ceased to permeate thecompany and drive its growth. The Group is stillstriving to satisfy its stakeholders - employees,clients, partners, suppliers, society and the en-vironment - in a sustainable and fair way. In itseffort to continue pursuing the logic of thisculture, FM Logistic launched its policy of sus-tainable development aligned with its requi-rement of operational excellence.

To structure and align its approach to sustainable development withthe dynamics of its 2022 strategy, FM Logistic adopted a three-yearplan comprised of three levels: compliance, sustainability and desire(engine of sustainable development).The level of sustainability is divided into three areas and givendefined objectives: controlling the Group’s ecological footprint,commitment to social mobility and workplace health and safety, aswell as citizen involvement.

Responsibility embeddedin the culture of FM Logistic



Group responsibility: recruiting today the competencies of tomorrow

15,300 employees as of March 2013, 18,730 in March 2014: withan increase in headcounts equal to its strong growth, FM Logisticis anticipating and training today those who will ensure theexcellence of its operations and the sustainability of itsdevelopment everywhere around the globe. Encouraginginternal promotion, integrating future managers early andmanaging a talent pool to support the Ambition 2022 strategy,that is the challenge facing the Group’s HR department.

Because the competencies of the Group,invaluable capital that makes the differenceon the markets, drive its sustainablegrowth, their development is considered byFM Logistic to be a strategic social issue.“Our management of human resources,”explains Eric Lanciaux, Group HR Director,“is focused on the management of talent.Operational excellence implies that we havethe right employees in the right positions.In each one of our countries, training andrecruitment are the subject of constant at-tention. Through annual interviews, careerand succession plans, FM Logistic strives todevelop its employees. This is how we meettwo thirds of our needs through internalpromotion. To add in the missing competen-cies, we integrate and train each year 2 000new employees, counting all countries, whothemselves benefit over time from this sameinternal dynamic.”

HR processes identical everywhere

Successfully integrating new employees isalso an issue of crucial importance for agroup with such a high level of externalgrowth: “When we acquire a new company,obviously we have to ensure perfect conti-nuity of operations. That is why we have set

up HR processes that are applied to everyoneand in every country,” Eric Lanciaux adds.“From their arrival, for example, they eachbenefit from an orientation plan, whose duration and content varies according to thelevel of responsibility. Thus, each new hirelearns about the company, its culture, busi-nesses, industrial tools and the correspon-dents with whom they will be working on adaily basis. A three-day training programmeon a platform is also required of them, tolearn about our operational businesses. Thisapproach is unique and much appreciatedby new arrivals. It has also contributed tothe success of the rapid integration of ourUniveg employees in Russia, and the formerMcLane employees in Brazil.”

FM University: the flagship of FM Logistic training

To enrich the competencies of its employeesthroughout their career, the Group has streng-thened its FM University training programme.It is part of its pedagogical guidelines:

• “FM University for all” (programme sharing general knowledgeabout the company and its businesses);

• “Open up to the world” (workshops, seminars and encounterswith clients to learn more about themarket and to develop business creativity);

• “Next step” (medium term programme to prepare the employees’ future in the Group).

“Currently,” Eric Lanciaux adds, “we are set-ting up the business programmes that willconcern the greatest number. Soon, FMUniversity will propose specific curricula forall the team leaders and financial control-lers, for example. We also have an onlinetraining system for refreshing knowledge.


It will provide general information as well,thanks to a collaborative system currentlybeing installed that will function as an inter-nal social network.” In the coming months,about 1 500 employees will benefit fromthe programmes of FM University. A thou-sand more will update their competenciesvia e-learning. “All in all”, Eric Lanciaux ex-claims with delight, “when taking into accountthe training plans of all the countries, by2015, nearly 7 000 people will have followedtraining, or some 40% of our employees.”

Retaining high potential employees

FM Logistic also strives to retain the compe-tencies which it has helped to develop: “Wefavour local employees for management po-sitions in the countries where we are loca-ted,” Eric Lanciaux adds. “This is how weretain the most talented people, by offeringthem the prospect of gradually rising to ahigh level. We also practice a motivatingcompensation policy compared with marketstandards to limit our turnover as much aspossible.” Training future platform managersreceives special attention from the Group:“The Next Step module of FM Universitycontains a specific programme, DestinationPlant Manager, which prepares our futureplatform managers. Today, 10 employees ofsix different nationalities are being trained inbest managerial and operational practices.For one year, they will be accompanied byexperts and experienced platform managersto enrich their experience and vision.”

Partnerships with Institutions ofHigher learning and future talent

Finally, the Group has developed partner-ships with Institutions of Higher Learning:ESSEC, École de Management de Stras-bourg, IUT Robert Schuman – Strasbourg,

INP de Grenoble, and University of Bologna– Italy, etc. “By teaching courses and recei-ving interns we are able to attract young,high potential people and the specialists trai-ned in these schools,” Eric Lanciaux explains.“in 2013, our relationship with ESSEC, forexample, which has a chair dedicated tosupply chain, enabled us to welcome an en-tire class at one of our sites for a half-dayprogramme presenting our company and itsbusinesses. Some of these visitors will beable to fit into a logistics continuity with us.”

Sharing and protecting

Rewarding merit is a duty in the corporateculture of FM Logistic. This is why the groupstrives to offer its employees the possibilityof sharing the fruits of its growth. Depen-ding on the country, they can take advan-tage of an employee savings plan or profitsharing or matching contribution investmentin FM Actionnariat, the employee sharehol-ders’ fund which currently holds 1.94% ofthe Group’s shares.

New ambition, new image

Under the framework of the Ambition 2022 plan in 2013, FM Logistic restructured its centralcommunication department: “The Group has relations of exceptional quality with itsemployees and clients,” explains Christophe Mélo, Director of Communication. “Pride ofbelonging within the Group and trust from our partners must be carefully fostered andmaintained through a structured approach to information aligned with our ambitions.We conducted an audit of our document management architecture over the summer andidentified areas of improvement to enhance the Group’s image and provide information thatmeets market expectations and standards. Since January 2014, we launched the productionof a graphic charter for our corporate identity, which is now applied to every level of corporateand commercial documents we distribute. Our website is also undergoing a completeoverhaul to ensure it reflects our positioning as a logistics provider of choice, our dynamismand our modern and innovative outlook.”

FM University – France

All in all, there are nearly 7,000 people or some 40% of our employees who will follow a training between now and 2015.

“”


Corporate social responsibility: engagement aligned with the values of FM Logistic

Integrated in its management system, the“Safety First Attitude” programme waslaunched in January 2014. It provides acommon and shared framework for enhan-cing safety across the entire organisation. In the field, internal rules are enacted in the“Safety Law” documentation, with whichour teams are familiarised.

“This programme,” explains Olivier Faure,Corporate Director of Operational SupportServices, and in charge of Sustainable De-velopment for the Group, “aims to sharebest practices around the globe and moti-vate managers and employees to improvetheir behaviours and take the necessarymeasures when a safety risk is identified.”

Safety: a priorityaround the globe

Regarding policy on citizen involvement, FM Logistic leaves wide latitude to itsteams. Its employees, imbued with thesense of responsibility that characterises theculture of the Group, are involved in everycountry in efforts to assist people in difficultsituations. Everywhere, FM Logistic supportslocal initiatives that offer it an opportunityto make a contribution to society.

In France, teams are supporting the Asso-ciation des paralysés de France, an organi-sation assisting disabled people. The Groupundertakes many initiatives targeting themost disadvantaged members of society:gifts of clothing, various drives for funds tosupport associations, blood donor sections,“Bouchons d’amour” an association finan-cing wheelchairs for needy persons, etc.

Socially engaged employees


In Spain, the Group ensures the transportof pallets for the Food Bank. It alsolaunched the Blue Heart programme, inwhich each employee can request thecompany’s assistance to undertake aproject. In Barcelona, FM Logistic employeesrecruited a trainer and built a human towerteam that participates in the traditionalcompetitions of Catalonian villages, whilebearing the logo of FM Logistic. Otheremployees organised a crossing of thePyrenees on mountain bikes and still otherstook part in the grape harvests.

In Russia, collections of hygiene productsand clothing are organised for the benefit ofjuvenile rehabilitation centres. A healthcarecentre was opened by local employees andnumerous actions in support of orphanagesare undertaken.

In Brazil, FM do Brasil teams are also veryengaged in assistance to orphans. A pro-gramme named “Light in the dark” waslaunched in 2013 to bring hope to handi-capped or blind children. Working in part-nership with a music school, these childrenbenefit from teaching methods in brailleand will gradually form a Brazilian jazz bandjust like normal children would.

FM do Brasil – Light in the dark


Environmental responsibility: a requirement strengthened by the Group’s international growth

For FM Logistic operational excellence also consists of blendingoperational performance with the protection of resources andthe environment, an increasingly demanding requirement nowthat the Group is rapidly expanding the areas in which itoperates around the globe.

With the invention of pooling, the Groupwas able to prove to all that economicgrowth could go hand in hand with environ-mental progress. It achieved this by optimi-sing the rotation of vehicles, a concept thatreduces greenhouse gas emissions by 35%(measures ECR/Ademe 2009).

In 2013, the reduction of volume of trans-ports required for pooling inputs reducedthese emissions even further. Since the si-gnature, in 2009, of the charter of voluntarycommitments to reductions in CO2 emissions,FM France has renewed its fleet with “Euro 5”vehicles (40% fewer emissions of nitrogenoxide compared with “Euro 4”) and trainedits drivers in ecological driving practices.

In Spain, FM Logistic utilises a fleet of trucksrunning on LNG.

Committed to air quality in Europe

Today, the Group is studying the possibilityof developing similar programs in all thecountries in which it is located and is gi-ving an increasingly important place tomultimodal transport to reduce green-house gas emissions. In early 2014, it joi-ned Green Freight Europe, an independentand voluntary pan-European programme,whose ambition is to intensify collabora-tion between expeditors, logistics servicesproviders and governments. Launched inMarch 2012, this programme set up a sys-tem of European norms for calculating,collecting and analysing the monitoring ofCO2 emissions generated by road freightoperations. Its goal is to improve the eco-logical performance of merchandise trans-port throughout Europe.

Ressons-sur-Matz : An exemplary HQEplatform

FM Logistic is working closely with Batilogistic,its privileged property partner, to minimisethe environmental impact of its sites andplatforms where light bulbs, for example, aregradually being replaced with LEDs. Since2012, all Batilogistic buildings comply withthe “haute qualité environnementale” (HQE)certification in France and LEED certificationabroad. In January 2013, the first installationof this type, in Ressons-sur-Matz, in France,even obtained the “exceptional” notation,the highest level of the HQE certification.

With the invention of pooling, the Group was able to prove to all thateconomic growth could go hand in hand with environmental progress. It achieved this by optimising the rotation of vehicles, a concept that reducesgreenhouse gas emissions by 35%.

“”


Financial information 4


FINANCIAL INFORMATION

Consolidated balance sheetASSETS - in thousands of euros 31.03.2014 31.03.2013

Goodwill 44 685 8 444

Intangible assets 7 675 5 975

Property, plant and equipment 165 684 129 606

Financial assets 34 990 33 970

- Non-consolidated shares 292 276

- Other financial assets 34 698 33 695

FIXED ASSETS 253 034 177 996

Inventories 7 175 7 131

Trade receivables and related accounts 165 465 163 667

Prepayments for current assets 12 701 11 077

Tax and social receivables 13 334 11 897

Current accounts (debit) 3 355 1 144

Other receivables 1 184 583

Deferred tax assets 4 001 3 240

Prepaid expenses 5 088 3 241

Cash and cash equivalents 74 514 36 593

CURRENT ASSETS 286 815 238 572

TOTAL ASSETS 539 848 416 568

LIABILITIES - in thousands of euros 31.03.2014 31.03.2013

Share capital 42 880 42 880

Premiums and reserves 77 653 67 099

Profit for the period 12 844 10 374

Foreign currency translation adjustment -19 483 -3 135

SHAREHOLDERS’ EQUITY - GROUP SHARE 113 893 117 218

Minority interests 0 1

TOTAL EQUITY 113 893 117 219

PROVISIONS FOR RISKS AND CHARGES 20 821 5 972

DEFERRED TAX LIABILITIES 5 322 5 581

Borrowings and other financial liabilities 159 851 82 721

Bank overdraft 16 656 8 172

FINANCIAL LIABILITIES 176 508 90 893

Trade payables and related accounts 113 098 99 895

Advance payments from third parties 931 287

Tax and social liabilities 90 402 80 722

Current accounts (credit) 83 338

Other liabilities 17 838 15 417

Deferred income 953 244

CURRENT LIABILITIES 223 304 196 904

TOTAL LIABILITIES 539 848 416 568


Consolidated income statementIn thousands of euros 31.03.2014 31.03.2013

TURNOVER 1 042 655 886 791

Write-back of provisions and depreciations 2 053 1 175Other operating income 7 334 4 456

TOTAL OPERATING INCOME 1 052 041 892 422

Purchases 72 258 71 193External services 462 332 379 138Other external services 107 515 92 471Taxes, levies and similar payments 17 563 12 650Staff costs 318 427 275 074Allowances for depreciation and provisions 32 104 28 114Other operating expenses 5 397 4 273

TOTAL OPERATING EXPENSES 1 015 596 862 913

OPERATING PROFIT 36 445 29 509

Financial profit / (loss) -8 925 -4 147Exceptional profit / (loss) -3 984 -4 939

PROFIT BEFORE INCOME TAX 23 536 20 423

Employee profit-sharing -298 -58Income tax -8 604 -8 967Deferred tax 809 -11Goodwill amortisation allowance -2 600 -1 013

PROFIT/LOSS FOR THE PERIOD 12 842 10 374

Attributable to:

- Minority interests -1 0- Group share 12 844 10 374- Earnings per share (in €) 3,7 3,0- Diluted earnings per share (in €) 3,7 3,0


Consolidated cash flow statement In thousands of euros 31.03.2014 31.03.2013

OPERATING ACTIVITIES NET PROFIT/LOSS - GROUP SHARE 12 844 10 374Profit for the period from integrated companies attributable to minority interests -1 0

Adjustment for:

- Depreciation, amortisation and provisions 36 213 27 504

- Gains and losses on disposal of PPE and intangible assets 1 285 1 020

- Deferred tax expenses -809 11

- Unrealized foreign exchange gains / losses 2 466 158

- Deferred charges -1 653 0

- Grants 0 0

CASH FLOW GENERATED BY THE ACTIVITY 50 345 39 066Change in trade current assets and liabilities 15 275 -5 065

- Change in inventories -195 301

- Change in trade receivables -3 193 -33 316

- Change in trade payables 18 663 27 950

Change in non-trade current assets and liabilities 753 10 737

CHANGE IN WORKING CAPITAL REQUIREMENT 16 028 5 672NET CASH FROM OPERATING ACTIVITIES 66 372 44 739

INVESTMENT ACTIVITIES Payment / acquisition of intangible assets -3 408 -2 641

Payment / acquisition of PPE -25 992 -33 226

Receipts / disposal of PPE and intangible assets 1 825 3 549

Payment / acquisition of financial assets -1 514 -1 239

Receipts / disposal of financial assets 2 645 1 605

Net cash / acquisition and disposal of subsidiaries -76 109 590

NET CASH FROM INVESTMENT ACTIVITIES -102 554 -31 362

FINANCING ACTIVITIES Increase in capital 0 0

Dividends paid to parent company shareholders 0 0

Cash from borrowings 103 382 24 491

Repayments of borrowings -31 626 -29 794

NET CASH FROM FINANCING ACTIVITIES 71 755 -5 303

VARIATION IN CASH AND CASH EQUIVALENTS BEFORE EXCHANGE RATE FLUCTUATIONS 35 574 8 074Net effect of exchange rate fluctuations -6 137 -211

CASH AND CASH EQUIVALENTS AT THE OPENING 28 420 20 558CASH AND CASH EQUIVALENTS AT THE CLOSING 57 858 28 420

Comments:

In conformance with the Regl. 99-02, restatements at the time of contract signature of financial leases are not presented in Consolidated cashflow statement in so far as they do not generate any cash flow. For information, the value of financial leases signed during the financial yearin the various consolidated companies of the FM Logistic Group is of €7 047k (impact on the increase of gross values and of borrowingsfrom credit institutions).

FINANCIAL INFORMATION

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