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1Presentation of the groupPresentation of SequanaDespite this economic context and excess capacity on the market,the banknote business remained upbeat. Security solutions(secure documents, brand protection) continued to perform well.Business in the brand protection segment benefited from the successfulintegration of Signoptic and the development of the traceabilitysolutions on offer. Arjowiggins Security also benefitedfrom the fall in cotton prices back to near-2010 levels. EBITDAcame in 15.8% higher at €28 million, compared to €24 million in2011, and represents 7.7% of sales.To optimise production capacity and reduce costs, ArjowigginsSecurity closed its Witcel plant in Argentina in September. Allproduction was then transferred to the Salto site in Brazil. Theclosure of the Ivybridge plant in the UK is currently in progressand will be completed in the first quarter of 2014.Innovation drives banknote businessInnovation is paramount on all of the division’s markets.Arjowiggins Security relentlessly develops new products and newsecurity technology across its three businesses (banknote paper,secure documents and product authentication and traceability),leveraging its powerful production capacity and the creativeexcellence of its R&D teams to make intelligent substrates (paperand synthetic materials) that can be secured and integrated.In a generally tough banknote market, Arjowiggins Securitycemented its positions by leveraging its technological leadershipand high quality service. The division landed new contracts,including for the commemorative 100-peso banknote featuringEva Perón, Argentina’s former First Lady. The paper used containsa 5mm-wide security thread combining two key technologiesdeveloped by Arjowiggins Security:■■Picture Thread, a high-precision thread that can containimages. The portrait of Eva Perón on the banknote also servesas a security feature;■■Combifluo®, which features a multi fluorescent effect on thefront and back of the security thread.At the Banknote conference held in Washington in December,the division launched a new product, Diamone Xtra, proof of itsunrelenting efforts to upgrade its offering. This highly-resistantpaper with excellent printability triples the life of conventionalbanknotes thanks to superior soil resistance.Further growth in security solutionsArjowiggins Security boasts a comprehensive range of securedocuments combining secure substrates with reading systems(e-gates), allowing it to cement its positions on this fast-growingmarket. The division landed new contracts in the year, for examplein Africa and Asia. It has been chosen by Indonesia for therenewal of its customised system for e-passports and for the supplyof electronic components for its immigration card. It has alsobeen appointed by FIFA as the “official ticket producer” for personalisedtickets for the FIFA Confederations Cup 2013 and the2014 FIFA World Cup TM to be held in Brazil.In brand protection, the division’s acquisition of Signoptic in2011 allows it to bolster its presence in this sector by offering customersadditional anti-counterfeit and brand and consumer protectionsolutions. In late 2011, the Royal Canadian Mint adoptedthis material biometrics technology for all new $1 and $2 coinsissued in 2012. Arjowiggins Security also launched a range ofservices for coding secondary packaging on behalf of its clients,giving them a cost-effective means of accessing this technology.In the synthetic papers segment, innovation efforts continuedas Arjobex launched Polyart Iridescent, a new product for thein-mould labels (IML) market, along with wet-glued self-adhesivelabels and the Polyart Digital range for HP Indigo certifieddigital printing. Capitalising on the strong position enjoyed byArjowiggins Security on this market, Arjobex launched its firstrange of secure labelling solutions.Key figures – Security division(€ millions) 2012 2011Sales 364 362EBITDA 28 24Recurring operating income 16 12Operating margin 4.3% 3.3%40 | Sequana | 2012 Document de référence (English version)