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1Presentation of the groupPresentation of SequanaExperienced management teamSequana’s management team has a perfect understanding of theGroup’s businesses and proven expertise in the field. It is alsoexperienced in managing industry cycles. Consistent with itsfocus on value creation, in 2007 management began to realignthe business as a pure paper player by reorganising its activities.Non-core businesses were sold off and a new growth push targetedhigh value-added segments. Profitability and cash flowgeneration became priorities amid tough market conditions. Allmembers of the Group’s Executive Committee have been withSequana for at least five years and boast over ten years’ experienceon average in the paper industry.Thanks to the new-look management structure and the newExecutive Committee set up in 2009 comprising senior executivesfrom Sequana, Arjowiggins and Antalis, the Group hasbeen able to ensure swift implementation of its operating decisionsbacked by strong central departments (strategy, HR, legalaffairs, finance and investment), and decentralised decision-makingin the marketing and production field.The Group’s performance is measured based on profitability andcash flow. Investment decisions are taken applying strict returnon-investmentcriteria. This strategy helped the Group to reactdecisively to address the deterioration in the markets as from2008. By increasing selling prices and consistently reducing costs,selling off non-core businesses, improving productivity and carefullymanaging cash flow, Sequana has been able to safeguard itsmargins and its cash flow generation. Nevertheless, the slumpin volumes and strong downward pressure on selling prices tooktheir toll on the Group’s operating performance in 2011 and 2012.Group management has successfully integrated both large companiessuch as Map and Greenfield as well as smaller-sizedfirms like Brangs & Heinrich, Dekker Packaging, Axelium andMacron. The Group’s experience makes it ideally placed to identifyand successfully integrate future acquisitions, particularly distributorsof products and solutions in the Visual Communicationand Packaging businesses.Group strategyThe Group’s strategy consists chiefly of acquiring and leveragingits top-ranking positions on specific markets to create value by:■■focusing on distribution and stepping up its developmenton fast-growing markets (such as Packaging and VisualCommunication) and outside Europe; and■■playing a role in the increasing consolidation of the productionmarket with the aim of creating market leaders, to consolidateArjowiggins’ foremost positions in niche segments, while graduallydivesting non-core businesses.The concrete aims of the Group’s strategy are described in moredetail below.Protect and consolidate the Group’stop-ranking positions in selected strategic marketsThe Group enjoys top-ranking positions as a distributor of paperand packaging products (Antalis) and as a niche player on variousproduction markets (Arjowiggins). Organic growth and acquisition-ledexpansion aimed at protecting and consolidating its marketpositions is vital to the Group’s strategy. Sequana intends toleverage its scale in order to continue enhancing its innovationcapabilities, enriching its range of products and services, improvingcustomer service and maximising value creation.On the production side of the business, Sequana enjoys leadingpositions on a number of niche markets, including eco-friendlypapers. Its strengths allow it to continue growing its customerbase and developing new product applications, and more generallyto pursue its business development by capitalising on its key differentiatingfactors, notably innovation, customer service excellence,and product quality and reliability. On the distribution sideof the business, Sequana intends to consolidate its leadership byadopting a selective acquisitions policy to reinforce its presence inthe Packaging and Visual Communication segments which currentlyboast higher rates of growth than the paper market.Ongoing growth and consolidation of the Group’s position in themost profitable, value-added segments such as the production ofeco-friendly and specialty papers are key to improving operatingperformance.The July 2012 capital increase provided Sequana with freshresources for continuing to deploy the Group’s strategic planacross the two businesses. A decision was taken to close threeplants in Argentina, Denmark and the UK to enable Arjowigginsto bring production of printing and writing papers back into linewith demand and to optimise management of production facilities.Antalis continued its development in the Packaging distributionsegment. Two new acquisitions in Chile and the CzechRepublic were added to the UK and German acquisitions carriedout in early 2012.8 | Sequana | 2012 Document de référence (English version)