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Presentation of the groupPresentation of Sequana 1Strong, growing presence on high value-addedsegments (packaging, visual communication,eco-friendly and specialty papers)Antalis and Arjowiggins have operated in fast-growing, highvalue-added market segments for many years.In 2012, Antalis generated 16% of its sales in the fragmented,high-growth markets of Packaging and Visual Communicationwhere it has operated over the past few years and enjoys top-rankingpositions. Antalis’ development on the Packaging distributionmarket was achieved through a combination of organic growthand acquisitions (Brangs & Heinrich in Germany in 2004; DekkerPackaging BV in Benelux in 2006). In 2012, Antalis stepped upits development in this sector with three acquisitions in Europe (inGermany, the UK and the Czech Republic) and one acquisition inLatin America (Chile). The Company is currently No. 2 in Europeon this segment, offering a broad range of standard and bespokeproducts and solutions to a wide variety of customers. Antalis’increasing foothold on the Visual Communication market wasachieved thanks to both organic growth and an enriched productand service offering through its acquisitions of Map and Axeliumin 2007. In late 2010, the Group acquired Macron, a Germandistributor of large-format digital printing equipment and othermedia. Antalis is currently among the market leaders, offering awide range of bespoke products and services to customers such assilkscreen printers, specialists in poster displays and signage, andPOS advertisers and resellers.Antalis intends to consolidate its positions in the Packaging andVisual Communication markets through organic growth andselective acquisitions. It will also continue to capitalise on therobust growth of its higher-margin international businesses.Arjowiggins has long enjoyed top-ranking positions in severalniche markets for high value-added products. ArjowigginsSecurity is the world’s leading producer of banknote paper, a fieldin which it has over two centuries of experience. ArjowigginsCreative Papers is the world’s No. 1 producer of premium finepapers including such recognised brands as Conqueror, CuriousCollection and Keaykolour. It is also the leading producer of castingand tracing paper. Arjowiggins Graphic has a unique positionin the market for recycled graphic papers (excluding LWC) and isEurope’s No. 1 player. The acquisition in 2008 of the Greenfieldplant – the leading producer of extra-white recycled pulp – hasgiven the Company a real edge in the drive to develop a uniquepremium offering in this market. Arjowiggins intends to expandits range of environmentally-friendly recycled products by tappinginto the segment’s strong potential for growth (the penetration ratefor recycled products is still low in these segments) and leveragingits price positioning. The company also intends to consolidate itspositions in other specialty markets through ongoing innovationand a customer-focused strategy. Specialty papers (1) accounted forover 70% of Arjowiggins’ sales in 2012.Strong focus on cash flow generationSequana has proved its capacity for maximising cash flow generationin its most mature markets (e.g., office and print paper,Antalis’ core business). This has enabled it to carve out strong marketpositions and to limit its investment outlay. Over the past fewyears, these segments have generated a steady stream of cash flow.Sequana operates in an industry which is more sensitive than othersectors to the economic and financial climate and since 2011 theGroup’s results have been hit by the slump in volumes and strongdownward pressure on selling prices. The Group’s priorities goingforward are to continue unlocking performance gains while maximisingcash flow generation and steadily reducing financialleverage.(1) Group specialty sales include products sold by the Security, Creative Papersand Graphic divisions (excluding sales of standard coated and uncoated papers).Sequana | 2012 Document de référence (English version) | 7