2019, staying the course · sectors. With a presence in three continents and five major regions (Western Europe, Central Europe, Eastern Europe, Asia and Latin America), FM Logistic

(MARCH 31, 2019)

ANNUALREPORT

2019, staying the course

02 — FM LOGISTIC / ANNUAL REPORT MARCH 31, 2019

Contents

FM LOGISTIC BEHIND THE SCENES OF OMNI-CHANNEL DISTRIBUTION

Country focus /

Pursuing operational excellence /

Focus on customer expectations /

Pursuing our model /

Financial statements /

Editorial by Jean-Claude Michel / 10

Highlights / 8

Key figures / 6

Company profile / 5

Romania and Ukraine / 27

Spain and Italy/ 26

France / 24

China / 33

India / 34

Vietnam / 35

Brazil / 32

Central Europe / 30

Russia / 28

Further progress inoperational excellence / 38

2019, staying the course /

The executive committee / 14

Review and outlooks by Jean-Christophe Machet / 16

Transport by Vittorio Battaglia / 20

The board of directors / 12

A new co-packing solution / 48

Eco-friendly urban logistics / 48

Logistics: A strategic advantage / 45

Greater speed and agility/ 45

A wider range of services / 47

Consolidated cash flow statement/ 62

Consolidated balance sheet/ 60

Consolidated income statement / 61

FM Foundation:A first year full of activity / 56

Digital transformationsupporting human effort / 52

Creating sustainableecosystems / 54

03FM LOGISTIC / ANNUAL REPORT MARCH 31, 2019 — — 2019, STAYING THE COURSE —

An organisation open to innovation / 42

22

04

36

44

50

58

Company profile


Established in France in 1967, FM Logistic has grown to become a leading international player in supply chain services (warehousing and

handling, transport, co-packing). An independent and family-owned business, the Group is an expert in the consumer goods,

distribution, cosmetics and beauty, industrial and healthcare sectors. With a presence in three continents and five major

regions (Western Europe, Central Europe, Eastern Europe, Asia and Latin America), FM Logistic employs 27,200

staff and posted revenues of €1.3 billion in FY 2018-19. Renowned for its high-performance solutions, notably

in omni-channel logistics, FM Logistic remains focused on its commitments: achieving sustai-

nable growth and investing in innovation to better serve its customers.

Staying the course

CROSS DOCKING THE CROSS-DOCKING FACILITY NEAR ŁÓDŹ IS DESIGNED TO OPTIMISE DELIVERIES OF FAST-MOVING CONSUMER GOODS THROUGHOUT POLAND


+2,300

Key figures FY 2018-19

2018-19

2018-19

2017-18

2017-18

1,178

24,900 27,200 59% 41%

1,318

+12%

39% France

Eastern Europe 22%

Central Europe 22%

10% Western Europe

Brazil 2% 5% Asia

❚ Revenue (€m) Change excluding currency impact: +15% Currency impact: €37m reduction

❚ Gender balance (incl. temp. workers)

❚ Headcount (no. of average FTE during the year, incl. temp. workers)

❚ By major region

REVENUE BREAKDOWN

KEYFINANCIALDATA


HUMAN RESOURCES

2018-192017-18

26.535.1

+32%

31% FMCG

28% Distribution

55% Warehousing & handling

Co-packing 10%

Transport 35%

Perfume & beauty 18%

Industry 20%

Healthcare 3%

EASTERN EUROPE 35% CENTRAL EUROPE 19%

BRAZIL 3%

INDIA 12%

FRANCE 24%

ASIA 2%WESTERN EUROPE 5%

❚ Average age of employees

❚ EBIT (€m) Earnings before interest and tax Currency impact: €1.7m reduction

❚ Headcount by region

❚ By business line❚ By sector


YEARS

Two new members of the executive committeeFM Logistic has welcomed two new members to its management team. Béatrice Ogée has as-sumed leadership of the marketing department since September 2018. In that capacity, she is res-ponsible for overseeing the implementation of a new CRM tool. Since April 2019 she has also been the Group commercial director, taking over from Hervé Dujardin, who has joined FM Logistic’s sister company NG Concept, a specialist in the design and construction of logistics platforms. In April 2019, Xavier Prévost joined the executive committee as Group business solutions and information systems director. As such, he is responsible for leading FM Logistic’s digital transforma-tion as well as strategic projects to improve its operational efficiency. Xavier Prévost also brings his expertise in retail and e-commerce built at a large FM Logistic customer.

A great year for job creationFM Logistic created 2,300 net jobs in 2018. The company

was able to meet its fundamental recruitment needs despite a particularly tight labour market in a number of countries.

At the same time, the size of the workforce grew at a slower pace than revenues, a clear sign of the enhanced skills of em-

ployees recruited last year and of the positive results yielded by the actions undertaken over the previous eighteen months

to drive proficiency in operational procedures.

EXPANSION OF CITYLOGINIn 2018, FM Logistic enhanced its Citylogin

service, an urban logistics solution based on the use of light-duty vehicles

and logistics sites close to city centres. In France, the company now provides

this service to a major e-commerce player. In Madrid, FM Logistic added

twenty natural gas powered Mercedes vans to meet the demand.

Highlights2018-19


A PLATFORM DEDICATED TO THE PHARMACEUTICAL SECTOR IN ROMANIA

FM Logistic has opened a temperature-controlled warehouse in Bucharest. Spanning a surface area of 10,000m2, this building has been designed to meet the growing demand of the Romanian healthcare and pharmaceutical industry. FM Logistic already counts the companies Sanofi et Zentiva among its pharmaceutical customers. This investment showcases FM Logistic’s capacity to offer services with high added value in a particularly demanding market sector.

A BROAD CUSTOMER PORTFOLIO

In 2018, FM Logistic started numerous customer projects, in particular in the fast moving consumer goods (FMCG), distribution, cosmetics and luxury sectors. These launches include Beiersdorf (France), Carrefour and Sephora (multiple countries), Leroy Merlin and Coty (Spain), Sanofi, Ipsen (Poland), Bonduelle (Russia), Dana (Brazil) and Caterpillar (India).

PEPS on the cloudIn December 2018, FM Logistic launched a new human resources management suite on the cloud. PEPS (People Empowerment Solutions) uses the Workday solution to fulfil a number of requirements: team management, talent management, assessment of recruitment needs and available in-house resources, employee autonomy. The solution, which can be accessed by all employees using mobile devices, will have additional functionality added in 2019. In April 2018, FM Logistic also adopted the G Suite tool, developed by Google, enabling all employees to create, store and share information securely from any location.

FM Logistic posted revenues of €1,318 million in FY 2018-19, an increase of 11.8% over the previous FY (15% excluding currency impact). EBIT increased 32% to €35.1 million. The revenue growth is all organic and is one of the strongest in the contract logistics sector. It reflects the development of all FM Logistic’s

business lines (warehousing and handling, transport, co-packing) throughout all its geographical markets. It is also the result of the company’s positioning in expan-ding markets (consumer goods, omni-channel logistics driven by e-commerce) and the renewed confidence of its customers.

revenue growth at current exchange rates and 15% excluding currency impact

1 2%+


EditorialBy Jean-Claude Michel

“Growth must be selective for it to be profitable. This selective growth will help finance the inno-vation expected by our customers and partners”


JEAN-CLAUDE MICHEL CHAIRMAN OF THE BOARD OF DIRECTORS, FM LOGISTIC

also testament to the company’s long term vision.Innovation in all its forms — automation, digiti-

sation and beyond, disruptive innovation and new services — is at the heart of FM Logistic’s priori-ties for 2019 and 2020. It must both support our teams in their daily work and enhance the quality of service offered to customers.

IMPROVING RESULTSAt the same time, the implementation of the

Focus plan must go on. It’s vital that FM Logistic continue to improve its operating result, as good financial performance today gives the company the means of pursuing its ambitions in future, by providing the financial resources needed for in-vestment.

The economic environment is certainly more uncertain, but FM Logistic appears well-equipped to navigate this challenging period. Its identity as a family-owned, independent company ensures it has the stability and the reliability required for long-term commitments; the synergies deve-loped with NG Concept enable the company to put together a highly competitive portfolio of multi-customer platforms, particularly in France and Russia. Its expertise in pooling, combined with its range of solutions bringing together know-how in multiple domains (from warehou-sing to packaging and transport) and different sectors (FMCG, distribution, cosmetics, luxury and beauty products), fill me with confidence for the future.

The double-digit organic growth of the past eighteen months demonstrates customer confi-dence in FM Logistic, and the company can now be more selective in the development of its port-folio. The priority for 2019 and 2020 is therefore to develop those market segments that offer greater value creation, while giving ourselves the means to achieve a genuine increase in profitabi-lity for each business line: improving operational procedures first of all, followed by engaging in dialogue with customers around pricing, but also taking responsible decisions to disengage when all other avenues have been explored. The pri-mary responsibility of a company is to ensure its profitability, as this will guarantee its growth and sustainability.

TOWARDS A MORE SELECTIVE AND PROFITABLE GROWTH

“The double-digit organic growth of the pasteighteen months demonstrates customerconfidence in FM Logistic”

AGAINST A BACKDROP OF DOUBLE-DIGIT ORGANIC GROWTH, PROOF OF THE TRUST SHOWN BY OUR CLIENTS, WE PLAN TO FOCUS ON DEVELOPING HIGH VALUE-ADDED SEGMENTS.

Itake a very positive view of FY 2018-19: FM Logistic posted a strong EBIT, our primary area of focus, whilst achieving exceptionally strong growth and continuing to invest for the future.

I would like to congratulate the 27,200 employees who have contributed to this performance, which is remarkable on a number of levels.

First of all, FM Logistic improved its profitabi-lity beyond our expectations. The Focus plan has begun to achieve its aim, i.e. to develop premium quality service going hand-in-hand with profitabi-lity. This plan is based on strengthening our fun-damentals, meeting our quality standards, and conducting an essential dialogue with our cus-tomers on the fair price for our services, a price that reflects the actual cost of their specific requi-rements and accounts for the increase in salary costs observed in certain markets. All of this has strengthened the core of our company.

FUTURE INVESTMENTIt is by being strong in its fundamentals

that FM Logistic will be able to seize the new opportunities offered by the markets, such as omni-channel logistics.

In this regard, the Group’s teams worked well in 2018 to prepare for the future without focu-sing solely on short-term profitability. Major in-vestment was made in human resources —─ the recruitment of talent, a greater emphasis on employee integration and training —─ as well as in innovation, in particular the automation of ope-rations and urban logistics. The intensification of efforts in the area of sustainable development is


CLAUDE FAURECo-founder of FM Logistic

GILLES FAUREFamily director

MARIE-LAURE FAURE Family director

The board of directors


OLIVIER FAUREFamily director

VINCENT MERCIERIndependent director

RÉGIS BELLOIndependent director

JEAN-CLAUDE MICHELChairman

MONIQUE ZOMENO Independent director


JEAN-CLAUDE MICHELFormer CEO then chairman of the Execu-tive Board of Norbert Dentressangle group.Founding director of Management et Partici-pation.

VINCENT MERCIERManaging partner then vice-chairman of Roland Berger Strategy’s Supervisory Board.Member of the Board of Directors at Neopost and Adie.

MONIQUE ZOMENOFormer Vice-President HR at Cephalon Europe. HR consultant for TEVA group.

RÉGIS BELLOFormer Chairman and CEO of De Dietrich. Director or member of the supervisory board of NSC Group, Socomec,De Dietrich, Ponycom,EM Strasbourg, AlsaceInnovation, Strasbourguniversity foundation.

XAVIER PRÉVOST Business solutions and

information systems director

DANIEL CIZ Finance director

STÉPHANE DESCARPENTRIES

Director for Asia, strategic projects and

mergers & acquisitions

JEAN-CHRISTOPHE MACHET Chief executive officer

CHRISTOPHE MÉNIVARD Managing director for Russia

and Eastern Europe

BÉATRICE OGÉE Commercial

and marketing director

The executive committee


CHRISTOPHE MÉNIVARD Managing director for Russia

and Eastern Europe

CÉCILE CLOAREC Human resources,

communication & sustainable development director

VITTORIO BATTAGLIA Transport director and

managing director for Italy

YANNICK BUISSON Managing director for France

and Western Europe


EBIT growth of

32%

“Staying the course means remaining

faithful to our identity as a family business,

focused on people and proactive in the growth strategy we

have chosen” JEAN-CHRISTOPHE MACHET

CEO OF FM LOGISTIC

Review and outlooksBy Jean-Christophe Machet


WHAT IS YOUR VIEW OF THE FISCAL 2018-19 YEAR?It was a very good year in a number of ways.

First of all, we achieved record organic growth and posted one of the strongest performances across the entire contract logistics sector.

FM Logistic revenues reached €1.32 billion, representing a 15% increase in volume, or 12% including the impact of foreign exchange. This progression reflects the renewed confidence of our clients and our capacity to gain market share. Secondly, FM Logistic exceeded its profitabi-lity targets. We posted an EBIT (earnings before interest and tax) of €35.1 million, up 32% from €26.5 million last year, which is a solid result.

I would like to thank each of our 27,200 employees for their hard work and the initial results achieved. We are entrepreneurs and we love profitable growth. It is the only way of providing the means for our deve-lopment, our transformation and the acce-leration of our investment in innovation. We must be flawless from an operational perspective and selective in a commer-cial sense. These are two of the objectives of our Focus plan, the implementation of which began to yield positive results in FY 2018-19. We will continue to roll out the plan this year.

WHAT ARE THE FEATURES OF THE FOCUS PLAN?It is made up of four components, two of

which relate to our internal operation. The first of these is the pursuit of operational excellence, which is a means of guaranteeing our quality of service. Operational efficiency relies on both an investment in automation and adherence to our business fundamentals: FM Logistic created 2,300 net direct jobs in FY 2018-19. Each new employee must be able to implement best prac-tices on a daily basis and to apply our expertise and good management practices. It is particu-larly important that the logistics business evolves together with the digital transformation. In 2019 and 2020, we will accelerate our development by means of open innovation in particular.

The second component involves the deve-lopment of our human resources. In a services business such as ours, looking after the workforce is essential. Investment in human resources is a means of supporting growth. We are bolstering our staff recruitment and loyalty strategies through schemes such as the young graduate programme, continuous training for all (FM University) and the digital transformation of our HR procedures. These activities are related to the managerial transformation under way within FM Logistic and the development of collabora-tive working methods, supported by tools such as Workday or G Suite.

WHAT ARE THE OTHER TWO COMPONENTS?They relate to FM Logistic’s relationship with

its customers. First of all, the price we charge for our services must reflect the quality of the work

JEAN-CHRISTOPHE MACHET CEO OF FM LOGISTIC

STAYING THE COURSE


OF PROFITABLE GROWTHFM LOGISTIC’S CEO JEAN-CHRISTOPHE MACHET REVIEWS THE HIGHLIGHTS OF FY 2018-19, THE FOCUS PLAN AND THE TRANSFORMATION OF THE FAMILY BUSINESS

“We must be flawless from

an operational perspective

and selective in a commercial

sense”

delivered. Pricing must also reflect, where appli-cable, the increase in salary costs related to the shortage of labour, particularly in Central and Eastern Europe. The price renegotiations under-taken with our customers in FY 2018-19 must enable us to restore a better balance.

The final aspect of the Focus plan, as alluded to earlier, has to do with our commercial selec-tivity. It involves prioritising and allocating our resources to the requests and calls for tenders where our added value is greatest. At the same time, we want to draw upon the complementary nature of our business lines and better exploit data to build dedicated high-value offers for our clients. FM Logistic’s transformation strategy is progressing independently of the Focus plan.

WHAT DOES THIS STRATEGY INVOLVE?First, we focus on digital technologies and auto-

mation. We are using an increasing number of agile and flexible cobots and automated guided vehicles, which facilitate more efficient management of peaks in volume whilst freeing our teams from the tasks with low added value for humans. The men and women working at FM Logistic must be supported by technology; that’s the basic premise of our modernisation.

A second priority is to meet the demand for omni-channel logistics driven by e-commerce, a segment that currently accounts for 15% of our activity. In order to provide our clients – and consumers – with the necessary flexibility and reliability in terms of order preparation and distribution, we have equipped ourselves with the means of managing pallets as well as individual products and packages under one roof.

Thirdly, we are developing our urban logistics activities, which are also driven by e-commerce.

This is not merely a question of providing last-mile delivery, but of offering a specially-adapted logistics infrastructure. We are responding to these challenges by developing our Citylogin service. Citylogin is based on logistics platforms located near urban centres and a fleet of around 500 light duty vehicles. This service makes it possible to access city centres. This also shows that urban logistics and sustainable logis-tics are very closely related. For FM Logistic, CSR is a means of meeting a growing demand among clients and providing us with a competitive advantage.

All of this is in keeping with the comprehensive solutions that we want to build for our customers: innovative, effective and responsible solutions.

IN THIS PERIOD OF INCREASED ECONOMIC UNCERTAINTY, WHAT IS THE OUTLOOK FOR FM LOGISTIC IN 2019?FM Logistic gained market share in 2018,

demonstrating the relevance of our model. Our order book is strong. We operate in some of the most dynamic sectors such as e-commerce and urban logistics. Our fundamentals are healthy. We are a family company. Our durability is based on the satisfaction of our clients, our independence, the close relationship with our sister company NG Concept and a good balance between our different business lines, geographical locations and client sectors. We have chosen to focus on resilient and countercyclical client sectors, such as consumer goods and retail. Furthermore, FM Logistic strives to offer its clients a broader array of services addressing the different stages of their supply chain, through related services such as long-distance international transportation and border crossing operations.

“An innovative, digital and collabora-tive com-pany, well equipped to respond to the needs of our clients ”


Review and outlooksBy Jean-Christophe Machet

“For FY 2019-20, we expect a further improvement of EBIT on the back of slower revenue growth due to increased commercial selectivity”

YOU HAVE REFERRED TO THE INTERNA-TIONAL DIMENSION. HOW WOULD YOU ASSESS YOUR GLOBAL PRESENCE?In addition to our European base, we are

gradually strengthening our presence on selected Asian markets such as Vietnam and India. We have operated in China since 2006. This is a long-term choice. Asia boasts large and highly dynamic consumer centres. An ever-increasing number of clients there are placing their trust in us. In India, for example, we positioned ourselves in 2016 to exploit the growth potential offered by the reform of the Goods and Services Tax (GST). Our third multi-client warehouse will soon enter operation in India. We have chartered a course and we are staying on it.

WHAT DOES ‘STAYING THE COURSE’ MEAN?This year once more, staying the course prima-

rily means continuing the implementation of our Focus plan to strengthen our business funda-mentals and our profitability. For FY 2019-20, we expect a further improvement of EBIT on the back of slower revenue growth due to increased commercial selectivity.

Staying the course also means continuing

the transformation of FM Logistic towards an even more innovative, digital and collaborative company. By doing so we will be better equipped to respond to the needs of our clients and to public expectations in the area of sustainable logistics.

Finally, staying the course means remaining faithful to our identity as a family business, focused on people and proactive in the growth strategy we have chosen.

15% of revenues comes from omnichannel

logistics


VITTORIO BATTAGLIA TRANSPORT DIRECTOR

AND MANAGING DIRECTOR

FOR ITALY

Transport By Vittorio Battaglia

“Revenues and EBIT increased in FY 2018-19 thanks to improved sales and service quality”

FMLogistic has made trans-port a key component of its development. The fiscal 2018-19 year saw

further development of this strategic business line. Revenues from transport activities rose by 17% at constant FX to reach €477 million. The operating profit improved as well. This double progression was driven by increased sales and service quality, supported by a more selective commercial deve-lopment and greater operational efficiency, in line with the Focus plan.

In order to address the capacity shortages in the transport sector, FM Logistic bolstered its resources in planning and forecasting peaks in activity through a smarter use of data. As a trans-port organiser, FM Logistic enlisted the maximum involvement of its subcontractors in this approach in order to provide them with greater visibility and guarantee their support.

EXPANSION ACROSS ALL MARKETS FM Logistic’s transport business has grown

consistently in all its geographical markets. In Western Europe, it experienced particu-larly strong growth in France, Italy and Spain, driven by the success of the Citylogin solution. FM Logistic won new transport contracts inclu-ding Sephora in Italy and a number of large retailers in France.

In Central Europe, FM Logistic is focusing on the development of international transport and strengthening its local distribution network. The company also recorded strong growth in the Balkans, which is set to continue in 2019.

ONGOING GROWTH OF TRANSPORT AGAINST A BACKDROP OF SUSTAINED DEMAND, THE TRANSPORT BUSINESS MANAGED TO WEATHER THE LACK OF CAPACITY OBSERVED DURING PREVIOUS YEARS.

In Eastern Europe and particularly in Russia, FM Logistic’s transport business continued to grow on both the domestic and international front, with the development of international supply chain activities and customs services.

In Vietnam, FM Logistic launched its transport business in 2018, winning its first customers. The company implements a strict security policy so as to ensure the safety of its people, resources and goods.

In India, where the Goods and Services Tax (GST) reform represents a genuine lever for development, FM Logistic signed a major transport contract with Caterpillar covering services across a large part of the country. In both India and Vietnam, FM Logistic has bolstered its transport teams. FM Logistic expects its transport activity to continue to grow in FY 2019-20. In digitisation and data exploitation the Group sees an opportunity to improve capacity planning, reduce truck waiting times and ‘empty’ kilometres and win new customers.


Cityloginattracting new

clients in Europe

Indianew transport contract

wins for FM Logistic

17%increase in revenues

in FY 2018-19

NETWORK FM LOGISTIC RELIES ON A NETWORK OF TRANSPORT PARTNERS


In FY 2018-19, FM Logistic continued to expand in France and overseas in order to harness the potential

of new markets.

Country focus


UKRAINE DUDARKIV LOGISTICS PLATFORM NEAR KIEV

61%of revenues is generated

outside France


MAIN LOCATIONS OF FM LOGISTIC

6,000 employees

in France

Country focus

In FY 2018-19, FM Logistic posted revenues in France of €510 million, an increase of 14.7 %. This performance stems

from both the signing of new contracts and customer loyalty. The relevance of the FM Logistic offer, in particular resource pooling, is a key factor. Renowned for its logis-tics expertise in consumer products and distribution, the company signed numerous contracts, inclu-ding with Beiersdorf, Petit Navire, Sephora and other major online and traditional retailers. As a result, FM Logistic launched or extended 19 projects for its customers in 2018.Revenues from the transport acti-vity rose by 50% thanks to the success of Citylogin and higher volumes of transport services sold to existing clients. The warehousing business benefited from excellent warehouse occupancy rates. An increasing number of customers are entrusting FM Logistic with co-packing tasks on top of storage.

Certifications and value-added servicesIn order to meet the demand for storage space, FM Logistic took over, expanded or opened nume-rous platforms, in particular in L’Herbergement (western France) and Escrennes (Centre-Val-de-Loire region). These two ultra-modern warehouses are each equipped with 1,500m2 of solar panels. FM Logistic also intends to obtain the ISO 50001 energy management certification by the end of 2019. The company was

France. Growth driven by new contracts and customer loyalty. 2018 confirmed the dynamism of warehousing,

transport and co-packing activities for FM Logistic in France.

“FM Logistic launched or extended 19 customer projects in France in 2018-19”

already awarded ISO 45001 certi-fication (health and safety at work) for all its French sites at the start of 2019, the first such award for a logis-tics provider. FM Logistic’s expertise in the management of classified products, as guaranteed by its status as an Approved Economic Operator (AEO) and the Seveso


CO-PACKING 15 FRENCH SITES HAVE A SPACE RESERVED FOR CO-PACKING

“The launch of an online collaborative platform has facilitated the co-creation of innovative ideas”

classification of several French plat-forms, is the result of close colla-boration with NG Concept and its partnership with Ineris.At the same time, the deployment of AGVs (automated guided vehicles) and cobots at FM Logistic’s 30 French sites is ongoing, as is ergos-keleton testing.

In the last fiscal year, FM Logistic also bolstered its offer in value-added services, with the introduction of Lean Design & Copack, a compre-hensive solution that combines packaging design, manufacturing and co-packing. The launch of an online collaborative platform open to customers, employees and soon

to suppliers has also facilitated the co-creation of ideas for improving the company’s processes and services.On the basis of contracts signed in 2018, FM Logistic forecasts a high single-digit revenue growth in France in FY 2019-20.


Spain. Significant growth in activity.

FMLogistic recorded a sharp growth in sales in Spain in FY 2018-19 in

a buoyant economic climate. The company posted reve-nues of €74 million, up by 43 % compared to the previous year. This performance is the result of service quality optimisation, the success of the new Illescas platform and the company’s positive commercial momentum. FM Logistic signed contracts with

distributors Maxxium and Leroy Merlin, which joined the Cabanillas platform in June 2018.An additional 10,000m2 will be added to the multi-customer Illescas

platform, the strategic location of which is a major asset, in order to meet the growing demand. FM Logistic also bolstered its trans-port teams in Spain through the appoint-

ment of a new director dedicated to this business line in the second half of 2018.

FM Logistic took advantage of the national economic recovery.

“Vigorous sales momentum recorded in FY 2018-19”


30,000 m2

surface area for the Vellezzo Bellini site

in 2019

43%increase in revenues


Italy. Positive performance.

Despite a macroeconomic environment marked by a slowdown in growth, sluggish consumption and uncertainty

surrounding the government’s economic policy, FM Logistic managed to increase revenues in Italy by 21%, to €58.4 million. This excellent performance was driven by the start-up of three contracts at three diffe-rent logistics platforms, with Yves Rocher (e-commerce), Kärcher and Pernigotti, an Italian chocolate maker.At the end of 2018, the Vellezzo Bellini site (near Milan) was added to sites in Pieve Emanuele, Capriata d’Orba, Santa Palomba and Trofarello. The Vellezzo Bellini site with a surface area of

20,000 m² will be extended by 10,000 m² in 2019. FM Logistic’s transport business in Italy continued to grow thanks to service quality optimisation and the start-up of numerous contracts.FM Logistic bolstered its management

team in Italy with the appoint-ment of an operations director responsible for the inte-grated management of all the company’s platforms in the country. In the interest

of reinforcing its business fundamen-tals, one of the pillars of the Focus plan, FM Logistic decided to bring in-house a number of handling activities that had previously been outsourced, with the aim of improving the quality and reliability of the service provided to customers.

“The management

team has been bolstered”

Business growth despite a lacklustre market.


Country focus

€20million

were invested in the warehouse of

Dragomirești



900employees in

Ukraine

Romania. A new warehouse and DC.

FY2018-19 was a year of stabilisa-tion and transition for FM Logistic

in Ukraine. The Ukrainian economy continued its recovery with growth of 3.5% according to the World Bank. Domestic consumption, however, continued to suffer from high levels of migration to neighbou-ring countries, such as Poland, Germany and the Czech Republic. Recruitment in Ukraine has proven difficult and salaries are rising as a result. Despite this challenging environment, FM Logistic was able to

fulfil its recruitment needs to serve its customers and increased its turnover by 48%. This performance was driven by improved operational efficiency and human resources management, as well as a sustained marketing

effort. At the end of March 2019, the headcount numbered around 900. The teams made opera-tional efficiency gains after absorbing the high levels of growth in 2017

and 2018. In FY 2019- 20, FM Logistic aims to continue with its plan of targeted commercial growth with numerous new customer launches scheduled.

FML o g i s t i c ’ s r e v e n u e s in Romania increased by

10% in FY 2018-19 to reach €29.1 million. As in the previous year, warehousing was the fastest-growing activity. After €20 million of investment and a year of work, the 20,000m² warehouse in Dragomirești-Vale, near Bucharest, officially opened in September 2018. Sanofi, Zentiva and L’Oréal are among the customers managed on-site.

In FY 2019-20, FM Logistic will place particular focus on the development of its co-packing and transport activi-ties, which present significant growth

potential. Appointed Managing Director o f F M Lo g i s t i c Romania in August 2018 and with fifteen years of experience at FM Logistic in Russia, Alexander

Pavlov is charged with accelera-ting FM Logistic’s development in Romania, with a double-digit growth target for FY 2019-20.

Stepped up growth despite challenging recruiting requirements.

Ukraine. The economic outlook is brightening.

Robust business, particularly in warehousing.

“A new CEO to drive growth”

“More efficient and productive

teams”



Amid cons iderable economic uncertainty, FM Logistic posted a sharp increase in volume sales (revenues

reached €240 million) and consi-derably improved its profit margins. With a presence in Russia since 1994, FM Logistic is reaping the rewards of its longevity, its size (8,000 employees) and its dynamism.

International transport : +30%Its fastest-growing activities were transport and handling. The domestic transport business grew by around 17% in FY 2018-19. International trans-port increased by 30%, a business line for which turnover has multiplied tenfold in four years. For its customer L’Étoile, a major Russian cosmetics and perfume brand, FM Logistic organises

the door-to-door transportation of products from 14 European countries, consolidates them at its hubs in France and Poland, and handles customs clearance activities. FM Logistic also organises the international transporta-tion and distribution in Russia, to stores in Moscow, of the products of a major French luxury brand. FM Logistic is renowned in Russia for its storage activities, supported by a vast network of warehouses (over 800,000m2). The technolo-gical centrepiece of this system is the XXL platform in Chekhov (110,000m2), south of Moscow, which serves over 20 retail and industrial

“With a presence in Russia since 1994, FM Logistic is reaping therewards of its longevity”

Russia. Strong performance driven by innovation. Strengthened position in the e-commerce logistics market.


Country focus

800,000 m2

of warehouses in Russia

THE TEAM FM LOGISTIC HAS AROUND 8,000 EMPLOYEES IN RUSSIA

customers under a single roof. It faci-litates the consolidation and distri-bution of customers’ products to shops in Moscow. Pooling resources in this way generates guaranteed economic and environmental bene-fits. In the southern city of Rostov-on-Don, FM Logistic is set to open a 35,000m2 platform in mid-2019, built by NG Concept. The expansion of the Elektrougli site (in Noginsk, east of Moscow) will be completed in September. FM Logistic is also planning to launch new operations in Novossibirsk, Siberia, in late 2019.

A global e-commerce solutionIn FY 2018-19, FM Logistic strengthened its position on the Russian e-commerce logistics market. Notable customers in this field include Auchan, Leroy Merlin, Clarins, Rive Gauche and Etam, soon to be joined by Pierre Fabre. The Group is developing a compre-hensive e-commerce logistics solution comprising storage, order preparation, shipping, collection, returns hand-ling and customer service. A future stage may involve the creation, with the support of a partner, of commer-cial websites for western European brands seeking expansion into Russia.

Alongside its largest customers, FM Logistic also targets a client base of smaller companies, to which it offers EEE logistics services (easy to start, easy to use, easy to exit).In order to better absorb changes in volumes, FM Logistic has also conti-nued the automation of its warehouses in the Moscow region. The Group recently launched an e-commerce logistics solution for a major inter-national cosmetics brand, based on the use of specially-designed order picking trolleys and the introduction of automation.


FM Logistic posted re v e n u e s o f €297 million in Central Europe

in FY 2018-19, up 16 %, supported by a favourable economic environment. Revenue growth was particularly strong in the Czech Republic (23 %) and in groupage activities. FM Logistic signed new contracts with Chipita, Ipsen Pharma and Sanofi-Zentiva and was entrusted with a broader range of services by Mars (Wrigley) and Jeronimo Martins.

Platform expansionsWith around 40 warehouses and transport hubs in Central Europe, FM Logistic continued to increase its warehousing and distribution capa-city in the region. During summer 2018, the company opened a cross-docking site near Łódź in central Poland, which serves as a national distribution hub for all groupage customers, including major consumer goods brands.

Central Europe. A favourable economic envi ronment.Poland, Czech Republic, Slovakia, Hungary.

Another cross-docking site attached to an existing high-capacity warehouse is due to open its doors in 2019 in Będzin, in the Silesian Highlands in the south of Poland. This 34,000m² complex will also offer co-packing and co-manufacturing services in response to growing demand. Since summer 2018, FM Logistic has operated an additional 7,400m² dedi-cated to logistics services for pharma-ceutical and cosmetics products at its Błonie facility. The largest platform opened in Central Europe in 2018 is located in Lovosice, in the Czech Republic. Dedicated to e-commerce, it spans a surface area of 20,000m², which could quickly be expanded.

Greater synergiesThe creation of regional headquarters near Warsaw in 2017 is yielding posi-tive results: the new Central Europe structure is supporting the exchange of information and experiences between national entities. It facilitates the coordination and harmonisation of transport and warehousing services between countries and support functions such as recruitment, invoi-cing and maintenance. International customers welcome this simplification. FM Logistic is also better equipped to lever its employer brand strength. This is a critical issue given that meeting labour requirements remains a difficult task in Central Europe as the region

“FM Logistic continued to increase its warehousing and distribution capacity in the region”

CAPACITY FM LOGISTIC HAS AROUND 40 LOGISTICS PLATFORMS AND HUBS IN CENTRAL EUROPE


Country focus

Central Europe. A favourable economic envi ronment.

is experiencing almost full employ-ment. In order to offset the resulting salary increases, the Group has started to renegotiate its contracts with a number of customers. To take its regional integration process to the next level, FM Logistic appointed an operations support manager in summer 2018 responsible for coordinating IT and innovation projects, equipment maintenance and security.

Renowned expertiseIn 2018, FM Logistic was again a prize-winner at the Logistics Operator of the Year awards in Poland. This recognition is handed out by the customers them-selves. FM Logistic had been awarded first prize the year before. In June 2018, the Group held the third edition of its Open Minds Debate, dedicated to inno-vation, in the presence of its customers. FM Logistic aims to integrate its services even further over FY 2019-20 to offer a comprehensive suite of logis-tics services.

EMPLOYER BRAND IN A TIGHT JOB MARKET, FM LOGISTIC’S EMPLOYER BRAND IS A REAL STRENGTH

20,000additional m2 of warehousing

space for e-commerce in the Czech Republic

“FM Logistic was again a prize-winnerat the Logistics Operator of theYear awards in Poland”



CONTRACT WINS FM LOGISTIC WON A NEW CONTRAT WITH OEM DANA

Brazil is gradually recove-ring from the recession that lasted from 2014 to 2016. The country returned to growth in

2017 and posted GDP growth of around 1.4% in 2018. However, last year’s economic activity had to deal with the political uncertainty surrounding the presidential elec-tions and a prolonged strike by truck drivers.

In this volatile environment, FM Logistic focused in FY 2018-19 on its warehousing, handling and packaging business lines and put its transport activity on hold. With a presence in Brazil since 2013, FM Logistic operates five logis-tics platforms and employs about 840 staff. It counts some major names in the distribution, cosme-tics and industrial sectors among its customers. Last year, for instance, FM Logistic won a new contract with the automotive supplier Dana.

A significant development at the end of FY 2018-19 was the appointment of a new managing director, Ronaldo Fernandes da Silva. A Brazilian national, he brings over twenty years’ experience in domestic and interna-tional transport and logistics.His role will be to continue and consolidate FM Logistic’s commer-cial growth in Brazil whilst improving its operational efficiency.

Brazil. A recovering economy.Focus on operational and financial efficiency.

“A new managing director to consolidate sales growth”



1.4%GDP growth

in 2018

Country focus

17BHG stores supplied

by the Beijing warehouse


CONTRACT WINS FM LOGISTIC WON A NEW CONTRAT WITH OEM DANA

POPULATION CHINA’S MIDDLE CLASS NUMBERS AROUND 400 MILLION

Chinese GDP growth was 6.6% in 2018. With a population of about 1.4 billion people and a growing middle class

of 400 million citizens, China repre-sents a huge market. FM Logistic signed several new contracts in FY 2018-19, in parti-cular with Andros, which recently joined the FM Logistic site in Tianjin, in the Beijing region. A second 15,000m2 multi-customer platform was inaugurated in the same city in 2018. It serves Chinese retailer BHG, delivering to 17 of its stores in Northern China, and US group Johnson & Johnson with delivery to five provinces, also in the north of the country.FM Logistic was awarded a contract from its long-time customer Carrefour for the operation, from March 2019, of a 3,400m² dual-tem-perature warehouse in Shanghai, at which FM Logistic provides logistics and distribution services for fresh produce (fruit and vegetables) to 50 stores. The Group is now present in the Chinese fresh produce logistics market.

Clean transport testingFM Logistic is currently trialling a zero-emission hydrogen truck for deliveries to Carrefour stores in Shanghai. This testing is in line with its policy of developing a sustai-nable urban logistics offer.

An expanding networkA new site will open its doors in Chengdu in eastern China in 2019. From a commercial perspective, FM Logistic is seeking to optimise occupancy at the Taicang site, near Shanghai, following the decision of one customer to internalise its logis-tics operations, and to develop its existing sites in Tianjin and Wuhan. With regard to transport, which accounts for two-thirds of its reve-nues in China, FM Logistic is pursuing a dual objective: increase its customer base to optimise its network in the north and east, and develop its acti-vities in the south, centre and west of the country (particularly in Chengdu).

Sales performance and network expansion.

China. New contracts.

“A new managing director to consolidate sales growth”

“FM Logistic now operates in the Chinese cold chain logistics market”


$150million investment plan over 5 years

Three new multi-client platformsThe company’s growth is also based on the development of multi-client warehouses and distribution centres located near major Indian cities. The first of these sites opened in Bhiwandi, near Mumbai, for three customers: Welspun (textiles), Wipro (cosmetics) and Reliance (retail). The second opened in Delhi. A third, in Bangalore, is scheduled to begin operation in 2020. Another

“FM Logistic has continued to roll-out new WMS and TMS”

India. New platforms in a promising market.FM Logistic has won new contracts.

important development was the launch of an 80,000m2 omni-channel site for a major European distributor, designed for delivery to stores and consumers.

Digital tools supporting ambitionIn order to satisfy increasingly demanding customers in terms of quality, security and infor-mation, FM Logistic has conti-nued to roll-out new Warehouse Management Systems (WMS) and Transport Management Systems (TMS). The company is also focused on the growth oppor-tunities created by the tax reform (GST) to continue its development in India and to establish itself as the reference partner in the consumer products, distribution, automotive and industrial sectors.

FMLogistic’s reve-nues in India grew by 23.4% in FY 2018-19.

This result was driven by the good performance of the Indian economy, the expansion of the Group’s offer and several contract wins. Transport now accounts for a growing portion of revenues.FM Logistic signed a contract with Caterpillar for the transportation of components from 2,000 suppliers to three factories using a control tower. FM Logistic also gained a contract from stationery manufac-turer BIC Cello for the management of in-plant warehousing operations at its factory in Vapi, in the State of Gujarat.



Country focus

TRADE THE INDIAN VAT REFORMS ARE EXPECTED TO PROMOTE DOMESTIC TRADE

2,000delivery points are served from the Hanoi warehouse

throughout the country

NEW WAREHOUSES FM LOGISTIC IS ESTABLISHED

IN VIETNAM SINCE 2017

Vietnam. The construction of additional capacity is underway.

FMLogistic’s se-cond year of operation in Vietnam was

marked by new customer wins: Brenntag, for warehousing services near Hanoi, and Beko, for which FM Logistic now distributes products to 2,000 delivery points throughout the country. During the fiscal year work also began on the construc-tion of a 52,000m2 multi-client warehouse close to Hanoi. The

Group aims to offer its customers a modern and scalable site that will support their growth within a highly dynamic Vietnamese mar-ketplace (growth of 7% in 2018). Through pooled resources and shared spaces, the new facility will offer greater efficiency and flexibility. This will be the first warehouse of its type in the region. In spring 2019, FM Logistic also commenced operation of a 6,500m2 site near Ho Chi Minh City.

Besides winning new clients, FM Logistic also began construction work on a new multi-client platform near Hanoi.

“Through pooled resources and shared spaces, the new Hanoi facility will offer greater efficiency and flexibility”



FM Logistic is engaged in a continuous improvement drive spanning its

storage, handling, transport and co-packing operations.

Pursuing operational excellence


15 minutesis all it takes to cross the entire

85,000m2 platform at Neuville-aux-Bois using

a gyropod

GYROPOD FM LOGISTIC IS TESTING NEW MOBILITY TECHNOLOGIES


FOR FM LOGISTIC, COMPETITIVENESS AND OPERATIONAL EXCELLENCE ARE DRIVEN BY TECHNOLOGICAL ADVANCES. FURTHER PROGRESS IN THIS DIRECTION WAS MADE IN FY2018-19.

Achieving operational excellence in the field of logistics requires the integra-tion of new technologies in production. FM Logistic is constantly searching

for innovative means of improving safety at work and increasing its operational agility and produc-tivity with the aim of absorbing the growth of its business. This is not a question of automating anything and everything with no consideration given to the benefits and impact on its teams. Rather, it’s a matter of adopting realistic, flexible solutions that save time without compromising on quality. The anticipated gains in competitive-ness are a means of maintaining and increasing employment. Getting a return on investment (ROI) often requires a period of around six to eight years for complex installations.

FM Logistic implements automation solutions dedicated to specific customers in the context of its long-term contracts. Solutions are designed jointly and structured to meet the specific needs of the customer, providing it with maximum efficiency at the best price. Investments are shared or depre-ciated over the term of the contract. This approach is commonly used in the automation of picking operations, which requires major investments.

At the same time, FM Logistic is working on introducing shared equipment that can be reconfi-gured and reused for multiple customer accounts, such as automated guided vehicles, inventory drones and cobots (collaborative robots).

The continuous optimisation of FM Logistic’s storage, handling, transport and co-packing operations covers diffe-rent aspects: reasonable automation of processes, digitisation, organisatio-nal transformation.

FURTHER PROGRESS INOPERATIONAL EXCELLENCE

INCREASING AUTOMATION OF HANDLING EQUIPMENTFrom France to Russia, FM Logistic increa-

singly uses automated guided vehicles (AGV) at its warehouses. Inaugurated in 2018, the Savigny-sur-Clairis logistics platform operated by the Group on behalf of Carrefour boasts five automated guided handling vehicles manufactured by the company Balyo. These automated vehicles operate in conjunction with the pallet wrapping unit. Once the pallets have been wrapped, the handling vehicles transport them 460 metres to the loading bays ready for dispatch. The system is capable of processing up to 30 pallets per hour. The return on investment is expected within three years. The area in which the automated vehicles operate is defined in advance. They have a field of vision which enables them to determine their exact position. Any potential obstacles are detected using a radar.



USE OF COBOTS IN PALLETISATIONFM Logistic increasingly uses cobots to perform

repetitive tasks such as palletisation. This leads to productivity gains by relieving teams of the most tiring tasks. Cobots also guarantee consistent quality and allow for faster delivery at peak times. They have proven to be a valuable tool for co-packing and special packaging preparation tasks supporting customers’ publicity campaigns or special offers.

INVENTORY DRONESFM Logistic has brought a number of drones

into service to take partial stock inventories, resul-ting in significant time savings. Traditional inven-tory-taking is a demanding task that requires the use of aerial lift platforms to reach palettes stored up to 12 metres high. It requires two people to work on each aerial lift platform: one to operate it and another to take the inventory. It’s for these reasons that FM Logistic tested and then adopted the Eyesee inventory drone solution developed by Hardis Group. The drone is fitted with a camera to detect the bar codes and location of products and automatically transmits the data to the warehouse management software. The drone uses an internal geolocation and mapping system to navigate around the warehouse. Drones are currently used for partial inventories only due to battery life limi-tations. FM Logistic is also planning to use drones for maintenance operations.

PERSONAL TRANSPORTERS IN NEUVILLE-AUX-BOISFM Logistic is testing innovative products to

improve working conditions in its warehouses. In order to reduce long journeys on foot around logistics platforms spanning more than 10,000m², the health, safety and environment quality depart-ment of FM Logistic France has worked with the start-up Hublex to design a logistics gyropod. With a surface area of 85,000 m², the Neuville-aux-Bois warehouse was the ideal place to test this tool over several months. The on-site managers, adminis-trative staff and support staff were the first users. The gyropod travels up to 9 km/hour and can be used 24 hours a day thanks to its removable char-geable battery system. A trip around the platform can be completed safely in less than 15 minutes, as opposed to 30 minutes on foot.

“Cobots guarantee consistent quality and allow for faster delivery at peak times”

AGV SAVIGNY-SUR-CLAIRIS AGVS CARRYING PALLETS TO THE LOADING BAYS

30pallets per hour

can be transported by automated guided

vehicles (AGV)


ERGOSKELETONS TO REDUCE MSD RISKIn 2018, FM Logistic trialled the ergoskeleton

developed by Swiss start-up Noonee for standing workstations. The equipment consists of a harness fitted to the upper body and two frames for the lower limbs, reducing excess strain on the lower back and legs. It also helps relieve circulation problems by allowing workers to vary their positions from stan-ding to sitting, without hindering movement around the warehouse.

As a result of this experience, FM Logistic is now going one step further, working with the University of Technology of Compiègne (UTC) on the design of a new type of ergoskeleton.

MULTI-FACETED DIGITAL TRANSFORMATIONBesides automation, digital transformation repre-

sents a second lever for driving operational efficiency. Cloud, simplification, standardisation, industrialisa-tion and security were the buzzwords for FM Logistic in FY 2018-19 with regard to information systems.

The first action point was migrating new appli-cations to the cloud. FM Logistic transferred its MySCM solution, an information exchange portal for FM Logistic and its customers, to the Google Cloud Platform. The yard management system solution, an application designed to facilitate the management of loading bays and truck arrivals, was also developed and implemented in the cloud. Still in the cloud, the Group has developed a new proof of delivery solu-tion that is currently being rolled out in a number of its markets. Furthermore, the IT department has upgraded the Cockpit Manager application, designed for use by warehouse team leaders. This application enables the near real-time monitoring of customer order execution and the simulation of opti-misation potential depending on the size of the team. These digital developments follow on from the final roll-out of the G Suite in April 2018 and the launch of PEPS in December of the same year, two flagship human resources projects (see page 52 ).

NEW WAREHOUSE MANAGEMENT SOFTWAREAnother action point involved

accelerating the migration of FM Logistic’s two legacy warehouse management systems (WMS),

Towards hybrid platforms FM Logistic is developing hybrid logistics platforms for BtoB and BtoC omni- channel distribution and e-commerce.

COBOTS COLLABORATIVE ROBOTS INTERACT WITH FM LOGISTIC EMPLOYEES



“Several digital solutions follow on from the final roll-out of the G Suite in April 2018”

O x y g è n e a n d Opale NG, to stan-

dard commercial solutions. A WMS is a

software programme that enables companies

such as FM Logistic and their customers to have full visibi-

lity over stock inventories, track products, manage warehouse flows

and maximize available surface area as a result. Selecting good warehouse

management software gives a company the means to increase productivity, reduce

stocks and prevent order preparation errors. FM Logistic has opted for two market solu-

tions, Reflex (developed by Hardis Group) and GCS (developed by Generix Group). Both of these

programmes can be customised and configured by FM Logistic to facilitate their implementation at the

Group’s different warehouses. As of February 2019, 56 projects corresponding to 36 different customers were managed using Reflex at 24 platforms across 7 countries.

« BIG DATA »The cloud offers unprecedented data storage

and calculation possibilities. The migration of FM Logistic’s applications to the cloud will therefore enable it to make an increasing amount of informa-tion available to its customers, but also to analyse this data to eliminate any waste of resources and provide a better service. It involves collecting data close to the physical environment (products inflows into the warehouse, storage in a specific location, handling, outflows from the warehouse) and then interpreting the information.

One of the first practical applications of this tech-nology by FM Logistic involves analysing the data to optimise the loading of its own trucks, pooling available capacities and reducing empty kilometres. Another application involves improving the quality of the data generated in the information systems with a computer-aided delivery address correction tool.

MORE ONLINE TRAININGDigitisation also means supporting company

employees to master the new digital tools and to make best use of them. FM Logistic has launched an e-learning programme, which includes training to help its teams to get the most out of G Suite.

56projects were managed

using Reflex as of February 2019


Digital trans-formation implies changes in managerial practice with greater emphasis on collabo-ration and entrepre-neurship. FM Logistic wants its employees to be involved in this development.

From forklift operators to warehouse mana-gers, on-site staff know their jobs very well and are often best placed to identify and implement ideas for improvement.

FM Logistic is therefore committed to encouraging collective intelligence.

In FY 2018-19, FM Logistic organised an in-house continuous improvement competition for the second year in row. The final was held in December at the Roissy offices (France) and brought together teams from seven countries (Czech Republic, France, Italy, Poland, Russia, Slovakia and Spain). The winning project, submitted by France, attempts to better structure and systematise the continuous improvement process through the creation of teams of volunteers that meet every two months. In second place was a project from Poland that halves co-packing line change over time by means of the SMED (single minute exchange of dies) method.

OPEN INNOVATIONIn the same spirit of collaborative work, in

FY 2018-19 FM Logistic continued to harness open innovation, based on cooperation with start-ups and research institutions. In addition to the partnerships mentioned above with such companies as Hublex, Noonee and Hardis Group, FM Logistic organised a new edition of its Faster Mind Challenge. 684

AN ORGANISATION OPEN TO INNOVATION

DIGITAL TRANSFORMATIONIS NOT ONLY TECHNOLOGICAL,IT ALSO TOUCHES TO HABITS AND METHODS OF MANAGEMENT.

DRONES INVENTORY DRONES WERE INTRODUCED AT FM LOGISTIC IN 2017



students from 34 countries were tasked with “imagi-ning the supply chain of the future”, with a focus on sustainable development.

In France, FM Logistic works with Sprint Project, a framework that facilitates contact between start-ups and large groups in the supply chain.

The Group is also a member of ALICE (Alliance for Logistics Innovation through Collaboration in Europe) , for which it acts as Vice Chair. Furthermore, FM Logistic also sponsors the research chair dedi-cated to the Physical Internet at MINES ParisTech (École des mines de Paris), a prestigious engineering school.

A NETWORK OF INNOVATION EXPERTS FM Logistic has brought together under the

same leadership the information technology (IT) and business solutions departments, including the members of the innovation, research, projects, methods and process, and continuous improvement teams. This across-the-board organisation is super-vised by Xavier Prévost in his role as Group business solutions and information systems director, and member of the executive committee. An expert in operational efficiency, Xavier Prévost also brings his knowledge of the retail and e-commerce industries through his past international experience at Auchan.

EXPANDED IT SYSTEMS DEPARTMENTThe IT management team plays a pivotal role in

innovation by coordinating all the activities involved in the digital transformation, the migration of appli-cations to the cloud and big data. The IT depart-ment is managed so as to meet two objectives: one part of its teams provides daily support to

operations while the other is dedicated to mana-ging medium-term innovation projects.

The IT teams have been strengthened by the recruitment of new team members. FM Logistic has decided to integrate certain technologies. For example, the Group has acquired the necessary internal competencies to create – using 3D prin-ting – and configure the robotic arm grippers used on its platforms. This enables the company to be more reactive and autonomous when adapting the solution to new uses.

In 2018, the Group also acquired dynamic simu-lation capabilities for its warehouse flows. A new central team specialised in the purchase of auto-mated systems is responsible for assessing the systems available on the market and the practical feasibility of implementing them on-site.

7countries took part

in the company’s continuous improvement competition

in 2018.

“The Group acquired dynamic simulation capabilities for its warehouse flows”


STRATEGY OPEN INNOVATION IS A PILLAR OF THE INNOVATION STRATEGY OF FM LOGISTIC


MADRID LOGISTICS IS KEYTO CUSTOMER SATISFACTION

The management of the supply chain must adapt to new consumption expectations. In the face of

omni-channel marketing, logistics must meet the classic requirements of price and reliability and also satisfy the

growing demand for speed, responsiveness and custo-misation, whilst being mindful of the challenges posed by

sustainable development.

Focus on customer expectations

8French towns

benefit from the Citylogin service

Logistics: A strategic advantage For many years invisible to the general public, logistics has become a commercial matter for many companies, in particular e-commerce merchants. When making purchasing decisions, online shoppers now consider condi-tions relating to the delivery and return of their orders. They want to take delivery on time, at home, at a store or at a collection point. As such, efficient logistics helps breed customer loyalty. Conversely, any delays or logistical errors may damage the reputation of the retailer or manufacturer.

Omni-channel e-commerce solutionsAlmost one fifth of FM Logistic’s revenues is generated by omni-channel e-commerce logistics. The Group offers a range of integrated services, including last-mile delivery, order preparation and support for e-commerce merchants in the design and management of their commercial sites, such as in Italy.

Greater speed and agilityFM Logistic has the means to manage the peaks in volume that mark the rhythm of e-commerce (end of year celebrations, Black Friday, sales, etc.). Efficient human resources management is the first lever for action. FM Logistic has carried out a sustained recruit-ment drive over recent years. The pooling of its warehouses, i.e. the presence of multiple clients from different sectors at a single site, facilitates the dynamic management of its teams, which may be restructured depending on the needs of the different customer projects served by the platform.


A new CRM toolDeveloping customer knowledge, customising its offer

and facilitating the exchange of services: these are the three goals of the new CRM tool set to be rolled-out within

FM Logistic in 2019. “It’s a question of anticipating the needs of customers and building the supply chain of tomorrow

alongside them”, explains Béatrice Ogée, commercial and marketing director. FM Logistic has chosen a Salesforce

solution. The CRM tool will provide the means of proces-sing information that was previously overlooked due to its

fragmented nature. Here again, the cloud will enable the data to be accessed on mobile devices.


Support from technologyThe automation of a number of warehouse procedures supports the teams. It enables greater productivity in order preparation and co-packing. New technologies facilitate work, saving valuable time and boosting reliability. The Go-to-Light shelving lighting system (developed by Pickeos) and the Pick-by-Picture innovation (tablets displaying pictures of products to be picked from the shelves) are two examples of the tools used by FM Logistic to help their operators quickly pick the correct items. The Group also uses flow management

software, Image Claim Mana-ger, that records the different stages of preparation and syncs this information with the WMS (warehouse management software). In France and Poland, the use of robotic arms helps speed up co-packing opera-tions.Finally, for a number of its major customers in the cosmetics sector in particular, FM Logistic has installed satellite platforms dedicated to order preparation for leading product lines with high sales volumes. Located in-side the ‘master platforms’, they receive the products directly from the customers’ factories in order to save on unloading and reloading time.

2019will see the deployment

of a new CRM system at FM Logistic

A wider range of servicesFM Logistic offers a broad range of industry expertise and skills. An increa-sing number of customers that use the company’s storage and handling services are now also entrusting it with co-packing activities and the organisa-tion of a part of their transport flows.FM Logistic has enhanced its offering in complementary activities such as co-manufacturing. This involves delayed customisation, assembling semi-finished products and customi-sing packaging (preparing batches or boxes) for the creation of ready-for-sale items. FM Logistic carries out these operations as close to customers’ factories as possible (wall to wall solution), thereby helping to reduce logistics flows, stocks and time-to-market.

.


Focus on customer

expectations

URBAN LOGISTICS FM LOGISTIC IS EXPLORING MULTIPLE OPTIONS TO FACILITATE CITY CENTRE DELIVERIES

500 vehiclesgenerating reduced

or zero emissions make up the

Citylogin fleet

A comprehensive new co-packing solutionIn November 2018, FM Logistic was awarded a prize for innovation at the All4pack 2018 trade exhibition for its new Lean Design & Copack service. This comprehensive co-packing solution comprises upstream consulting, packa-ging concept and design by a creative team, manufacture, and execution of all warehouse co-packing operations. The customer has a single point

of contact throughout the process. This solution helps to reduce time-to-market and optimise costs through the design of packaging suitable for mechanised production lines. FM Logistic’s co-packing operations rely on a network of 35 sites in Europe served by 3,500 dedicated employees. The Group is able to offer a wide range of packing styles (blistering, overpack, X-folded cellophane, sleeving, display, box) enabling brands to diffe-rentiate and customise their products.

Eco-friendly urban logisticsFM Logistic continued to develop its urban logistics activities in 2018. The company increased its fleet of Citylogin vehicles after signing new contracts with a number of major players in e-commerce. More than 500 zero-or low-emission vehicles now support this city centre delivery service available in places including Rome, Paris, Madrid, Moscow, Warsaw and Milan.


Focus on customer

expectations

Co-packing, or ‘delayed differentiation’

Several major companies entrust the design of their secondary packaging to FM Logistic. These include Unilever, which was looking for a

premium packaging solution including packaging creation and co-packing assignments. FM Logistic set up a packaging line for a premium dental care

product that enabled the manufacturer to handle current volumes with suffi-cient surplus capacity to cover forecast exponential sales growth in the future.

FM Logistic offered a repackaging solution involving automation of a number of non-value-added tasks, thereby considerably reducing production costs. In addition

to this project, Unilever also assigned the task of designing and sourcing packaging to FM Logistic. The Group has rolled out other packaging design-development and

co-packing solutions at Beiersdorf, Häagen-Dazs and Bonduelle.


CO-PACKING FM LOGISTIC’S CO-PACKING SOLUTIONS RELY ON A NETWORK OF 35 FACILITIES IN EUROPE AND 3,500 COMMITTED EMPLOYEES

Against a backdrop of strong organic growth and transformation, FM Logistic reaffirms its social and environmental

model geared to sustainable development.

Pursuing our model


20%of revenues will be generated

by sustainable solutions in 2022


ITALY TWO FM LOGISTIC EMPLOYEES AT CAPRIATA D’ORBA, ITALY

DIGITAL TRANSFORMATION SUPPORTING HUMAN EFFORT UPSKILLING AND FOSTERING COLLABORATIVE WORK PATTERNS ARE CORE FEATURES OF THE HUMAN RESOURCES POLICY.

Pursuing our model

Corporate culture at FM Logistic is based on three core values:

TRUSTEach employee deserves respect, consideration and benevolence.Trust encourages each person to give their very best.Trust is shown as a matter of principle and grows with time.

PERFORMANCEThe company’s goals are geared towards achieving long-term client satisfaction and ambitious results.This performance is achieved through daily commitment to quality, safety and continuous improvement.

OPENNESSThe company must constantly rethink itself and innovate in order to offer clients optimal solutions.Openness means challenging the status quo and listening to what stakeholders have to say.Openness promotes “win-win” relationships in a spirit of partnership.

Investing in human resources is one of the pillars of the Focus plan. Economic performance and social performance go hand in hand. That’s why FM Logistic makes employee integration, well-

being and skills development the cornerstone of its strategy. Carrying on from the previous year, the human resources (HR) teams have had to face up to a triple challenge: fulfilling major recruitment needs, contributing to the enhancement of operational excellence and continuing the digital transforma-tion of HR procedures.

Backed by a global workforce of around 27,200 FTE employees in 2018-19, FM Logistic created 2,300 net jobs during the financial year ended. The 9% growth in the company’s global workforce was outpaced by its revenue growth (12%), a reflection of both the enhanced skills of employees recruited last year as well as the improvement in operational procedures, resulting in productivity gains.

NEW DIGITAL HR SUITEFM Logistic has continued the digital transfor-

mation of its HR and internal communication tools. The roll-out of G Suite in spring 2018, the creation of the new Hello Intranet and the December 2018 launch of the Workday collaborative tool as part of the PEPS programme are three examples of this.


PEPS (People Empowerment Solutions) is the culmi-nation of two years’ work. The purpose of this digital HR suite is to facilitate and streamline HR proce-dures for employees and managers alike. Available in all countries except India, the tool enables each employee to access their personal data and navigate organisational charts in real time. For their part, mana-gers will soon benefit from additional functionality in order to guide them to assign the relevant operators to a given task and establish the optimal allocation of their teams. In the long term, the provisioning and analysis of system data will help guide the recruit-ment strategy, fine-tune team management and ultimately improve operational performance.

DEVELOPING A COLLABORATIVE MODELAgainst the backdrop of major growth in the

activity of FM Logistic and its workforce, one of the main challenges facing the HR department is to help bring the many new employees up to speed as quickly as possible. As such, the human resources department and the operations managers have created a set of training resources aimed at reinfor-cing key competences irrespective of hierarchical level. This overhaul of business fundamentals (methods, tools, management styles) will be rolled out throughout 2019.

— The first Young Graduate Programme, launched in 2017, completed its two-year cycle and gave way to a second group of young graduates. Another programme, called Future Managers of Business Unit, caters to more expe-rienced employees. It continues to be a success and enables its participants to undertake operational duties in various countries as part of their training in order to prepare them for taking on P&L responsibility in warehousing, transportation and co-packing and to combine this expertise.

FOCUS ON:

“Satisfy recruitment needs while

strengthening operational efficiency”

This desire to improve skills within the teams and develop a collaborative model is fully in line with the Focus plan. Harmonising ways of being and acting across business lines and geographical borders is also the purpose for FM Way, the behavioural competency model created by the company to support its growth and to transmit and bring to life a distinctive work culture.


FM UNIVERSITY JEAN-CHRISTOPHE MACHET WITH THE SECOND YEAR OF PARTICIPANTS ADMITTED TO THE YOUNG GRADUATE PROGRAMME

54 55FM LOGISTIC / RAPPORT ANNUEL 31 MARS 2019 — — 2019, TENIR LE CAP — — FM LOGISTIC / RAPPORT ANNUEL 31 MARS 2019

In 2018, FM Logistic set out its sustainable deve-lopment programme based on three priority areas: looking after its employees, improving the environmental footprint of its activities and

developing services for a sustainable supply chain. This programme is the result of an internal and external consultation process and is currently being implemented in all the countries in which the Group operates.

Jean-Christophe Machet officially launched the new programme on 20 June 2018 at a conference broadcast throughout the company, during which he and representatives from a number of customers discussed the following question: How will sustai-nable development revolutionise our industry? FM Logistic took the occasion to announce its adhe-sion to the United Nations Global Compact, thereby joining some 7,000 international companies in the promotion of 10 voluntary principles for sustainable development.

LOOKING AFTER EMPLOYEES: SAFETY FIRST In 2018, FM Logistic stepped up its focus on health

and safety at work by strengthening the fundamental aspects of its security policy. The ISO 45001 certifi-cation awarded to all its French sites in early 2019 is testament to this new approach. FM Logistic has invested in ergonomics through the development

Value-sharing and innovationRichard Quesne, Logistics Director Europe and Middle-East at Sephora (LVMH group)

— “We want to be pioneers in sustainable development and we expect our partners to share our high standards and innovative spirit. That’s why we en-courage our logistics partners to engage more in the pooling of transportation resources, in particular for distribution to retail stores and BtoC flows. We’re also increasingly focusing on our packaging, an area in which FM Logistic is a real source of inspiration. For example, at the Escrennes platform, which we joined in early 2019, we’re working together on a type of packaging that optimises our loads. Our collaboration with FM Logistic has also led us to use the Citylogin solution. In 2019, 85% of our retail stores will receive deliveries via Citylogin. And as we can only improve that which we can measure, we’re interested in our sup-pliers’ ratings. This is an area we monitor with the support of the agency TK’Blue.”

FOSTERING STAFF WELFARE, IMPROVING THE CARBON FOOTPRINT AND OFFERING RESPONSIBLE SERVICES ARE CORE FEATURES OF FM LOGISTIC’S SUSTAINABLE DEVELOPMENT PROGRAMME.

CREATING SUSTAINABLE ECOSYSTEMS

Pursuing our model

FOCUS ON:


of a specific model of ergoskeleton dedicated to its activities in France. In Russia, the Group imple-mented concrete measures designed to improve working conditions following a survey of employees at multiple platforms.

IMPROVING ITS ENVIRONMENTAL FOOTPRINTFM Logistic has set itself an ambitious target: to

make its warehouse and co-packing activities carbon neutral by 2030. FM Logistic is drawing on its close relationship with NG Concept to take the right action from the platform design stage. The other initiatives introduced include energy efficiency measures and

the use of renewables. In France, FM Logistic will fit all new platforms with solar panels, similar to those installed at its Escrennes or l’Herbergement sites, in order to cover their basic energy consumption.

A SUSTAINABLE OFFER THROUGHOUT THE VALUE CHAINFM Logistic has continued to develop its

Citylogin urban logistics solution. Designed to facilitate deliveries in even the most crowded city centres, such as in Madrid, Rome, Prague, Moscow or Paris, Citylogin is based on pooling customer flows and combines the use of environmentally- friendly light-duty vehicles and local distribution centres. This market positioning is attracting an increasing number of customers, as evidenced by the 20 new natural gas powered vans acquired to meet demand in Spain. With a view to supporting its customers in the management of their supply chains, FM Logistic is due to publish its first sustai-nable development impact report this year for FY 2018-19.

RECOGNISED COMMITMENTIn January 2019, the ratings agency CDP

(Carbon Disclosure Project) awarded FM Logistic a B- rating, ranking it among the top 13% of compa-nies in terms of performance in the fight against climate change. In November 2018, FM Logistic received a gold medal at Nuit de la RSE, a presti-gious French corporate social responsibility event, in recognition of its “overall CSR programme”. FM Logistic was also involved in the creation and testing of the Référentiel RSE en logistique (CSR guidelines for logistics) published in September 2018 by the ministry for the ecological and inclusive transition of France.

FM Logistic 2022 goals:— 80% of employees satisfied with their em-ployer;— 12% reduction in ener-gy consumption and 20% reduction of its warehou-sing carbon footprint compared to 2018;

— over 70% of its trans-port flows using Euro 5 trucks as a minimum, including clean energy;

— all of its customers equipped with a sus-tainable development dashboard;

— 20% of revenues generated by sustainable products and services.

“FM Logistic has set itself the target to make its warehouse and co-packing activities carbon neutral by 2030“

30 French facilities are ISO 45001 certified (health and safety

at work)

ERGOSKELETON FM LOGISTIC HAS DESIGNED AND DEVELOPED A NEW TYPE OF ERGOSKELETON TOGETHER WITH THE COMPIEGNE UNIVERSITY OF TECHNOLOGY

INSERTION FM FOUNDATION SUPPORTS YOUNG PEOPLE AGED 14-18 IN RUSSIA

“The logistics sector has jobs to offer and everyone is given a chance. Despite this, in many countries the unem-ployment rate remains high in the under-25 age bracket. FM Foundation seeks to bridge the gap between these young people, particularly those from underprivileged backgrounds, and the professional world. This goal is achieved through training and mentoring. FM Logistic employees are the players on the field. And the playing field is primarily the workplace, near to our locations. The foundation also supports orphan children to give them a better start in life. In France, China, Poland, Russia and Brazil, several hundred under 25-year olds received support and guidance from FM Foundation in 2018. I sincerely thank all FM Logistic employees as well as our partners, charities and NGOs for their hard work and commitment. FM Foundation has already implemented initiatives in six countries. The foundation is looking to multiply its initiatives in 2019.”Jean-Christophe Machet, CEO of FM Logistic.

The first event worth highlighting is the cele-bration of its first 12 months of existence. FM Logistic employees took this opportunity to present their projects to like-minded foun-

dations, customers, partners and members of the FM Family in order to promote the foundation and develop its network. The event was held on 21 September 2018 at the offices of the Apprentis d’Auteuil foundation. The moving testimonies delivered by the FM Logistic teams underlined the importance of this new initiative. The chairman and the managing director of the foundation and the CEO of FM Logistic France also took the occa-sion to express their satisfaction and their gratitude to all those who contributed to the initial projects.

SUPPORTING PROFESSIONAL INTEGRATIONAlongside the Apprentis d’Auteuil foundation,

FM Foundation’s French teams have developed a logistics qualification programme aimed at disadvan-taged young people. Lasting one year, it comprises a theoretical component delivered by Adecco training, followed by on-site practical training at FM Logistic’s sites provided by company employees acting as mentors. Through their involvement in this programme, the mentors hope to support recipients in their integra-tion into the labour market by providing experience and knowledge of an industry with positive prospects. Eight young graduates from the first class have been hired by FM Logistic France on a permanent contract.

In Poland, ninety 18-year-olds from orphanages and foster homes have benefited from the partnership between FM Logistic and the Independent Robinsons foundation. The volunteers working at this foundation have developed a scheme to facilitate access to the logistics industry and to provide guidance on economic and social empowerment. The programme has been

FM FOUNDATION: A FIRST YEAR FULL OF ACTIVITYTHE FM FOUNDATION, SET UP TO SERVE CHILD WELFARE AND PROFESSIONAL INTEGRATION, CELEBRATED ITS FIRST BIRTHDAY IN 2018. A YEAR LADEN WITH PROJECTS AND ACHIEVEMENTS.

Bridging the gap with the professional world

Since 2017 FM Foundation

boasts:

329 beneficiaries

173 employees

involved

896 days of skills sponsorship

€113,437invested


Pursuing our model

“FM Foundation pursues the same goal in all six countries where it operates: bridging the gap between young people in difficulty and the professional world”

renewed this year at 9 sites for a second group of young people. Each beneficiary receives the support of an FM Logistic mentor. Thirty-five FM Logistic employees have so far signed up to support this initiative.

ACCESS TO VOCATIONAL TRAININGIn Brazil, the FM Logistic teams at the Anhanguera

site, near São Paulo, together with the Lochpe founda-tion have set up a supply chain skills training programme. The aim of this 12-month course is to equip its benefi-ciaries with the theoretical knowledge and operational skills required to access the labour market by means of a certificate issued by the Federal University of Paraná. The employee mentors first received training in order to guide the 12 youths over the course of the year. The programme recipients received 900 hours of course time as well as on-site practical training delivered by the FM Logistic mentors. Twenty-eight group employees were involved in this initiative.

In India, the Pune teams in collaboration with the Speed Foundation provided a vocational training and

general skills acquisition programme. Twenty-nine youths from orphanages and foster homes received 23 days of training led by the Speed Foundation. FM Logistic employees then ran a three-day workshop at which they shared their industry experience in fields including warehouse management, purchasing or QSE (Quality Safety Environment).

A scheme promoting access to the industry in which the company operates was set up alongside the Vincent-de-Paul foundation near FM Logistic’s headquar-ters, in Phalsbourg. Twelve employees welcomed two groups of 13 young people to the company’s premises and delivered presentations on their industry, career path and experience.

Three other initiatives should also be mentioned: the involvement of FM Logistic employees in the creation of a pop-up restaurant (in France), the mentoring of young people separated from their families (at the Taicang site in China), and the Successors Academy project (inte-gration and socialisation of orphans aged 14 to 18 in Russia).

Bridging the gap with the professional world



Financial statements



€35.1million EBIT



Financial

statements

Consolidated balance sheet / in thousands of euros

ASSETS 31.03.2019 31.03.2018

Goodwill 38 950 44 313

Intangible assets 12 158 10 229

Property, plant and equipment 216 125 202 232

Financial assets: 28 192 24 789

Non-consolidated shares 1 282 1 357

Other financial assets 26 910 23 432

FIXED ASSETS 295 425 281 563

Inventories 9 579 8 962

Trade receivables and related accounts 190 162 165 707

Prepayments for current assets 5 265 3 898

Tax and social receivables 16 958 22 825

Current accounts (debit) 15 652 17 322

Other receivables 6 773 3 114

Deferred tax assets 5 763 6 364

Prepaid expenses 7 347 6 461

Cash and cash equivalents 91 297 77 786

CURRENT ASSETS 348 796 312 438

TOTAL ASSETS 644 221 594 001

EQUITY AND LIABILITIES 31.03.2019 31.03.2018

Share capital 42 934 42 927

Premiums and reserves 121 103 113 072

Profit for the period 13 130 8 025

Foreign currency translation adjustment -43 724 -40 317

SHAREHOLDERS’ EQUITY - GROUP SHARE 133 444 123 706

Minority interests 115 362

TOTAL EQUITY 133 559 124 069

Provisions for risks and charges 15 837 18 057

Deferred tax liabilities 3 139 1 042

Borrowings and other financial liabilities 180 279 168 806

Bank overdraft 8 773 3 527

FINANCIAL LIABILITIES 189 052 172 333

Trade payables and related accounts 165 603 150 425

Advance payments from third parties 1 475 860

Tax and social liabilities 109 253 98 461

Current accounts (credit) 548 199

Other liabilities 21 001 23 674

Deferred income 4 755 4 883

CURRENT LIABILITIES 302 634 278 501

TOTAL LIABILITIES 644 221 594 001



w w

31.03.2019 31.03.2018

TURNOVER 1 317 605 1 178 083

Write-back of provisions and depreciations 2 749 4 797

Other operating income 8 805 7 382

TOTAL OPERATING INCOME 1 329 160 1 190 262

Purchases -67 155 -60 339

External services -569 083 -519 022

Other external services -178 775 -157 286

Taxes, levies and similar payments -14 965 -13 559

Staff costs -400 808 -353 034

Allowances for depreciation and provisions -49 453 -44 311

Other operating expenses -11 091 -11 322

TOTAL OPERATING CHARGES -1 291 330 -1 158 873

OPERATING PROFIT 37 830 31 389

Financial profit / (loss) -3 148 -3 607

Exceptional profit / (loss) -2 761 -4 892

PROFIT BEFORE TAX 31 921 22 890

Employee profit-sharing -371 -1 243

Income tax -9 681 -10 576

Deferred tax -2 631 3 423

Goodwill amortisation allowance -6 080 -6 440

PROFIT/LOSS FOR THE PERIOD 13 157 8 053

ATTRIBUTABLE TO:

Minority interests 27 29

Group share 13 130 8 025

Earnings per share (in €) 3.74 2.29

Consolidated income statement / in thousands of euros


Consolidated cash flow statement / in thousands of euros

Comments: ─ In conformance with the Regl. 99-02, restatements at the time of contract signature of financial leases are not presented in consolidated cash flow statement in so far as they do not generate any cash flow. For information, the value of financial leases signed during the financial year in the various consolidated companies of the FM Logistic Group is €17 451k (impact on the increase of gross values and of borrowings from credit institutions). Therefore, these contracts should be accounted for during the comparison of the consolidated cash flow statement and the different statements of movements in the notes to the consolidated financial statements.

31.03.2019 31.03.2018

OPERATING ACTIVITIES

NET PROFIT/LOSS 13 157 8 053

Adjustment for:

Depreciation, amortisation and provisions 49 674 47 305

Gains and losses on disposal of fixed assets 892 -40

Deferred taxes 2 631 -3 423

Unrealized foreign exchange gains / losses -824 125

Deferred expenses -518 0

CASH FLOW GENERATED BY THE ACTIVITY 65 012 52 020

Change in trade current assets and liabilities 4 399 11 565

Change in inventories -781 -1 569

Change in trade receivables -21 511 -2 810

Change in trade payables 26 691 15 945

Change in non-trade current assets and liabilities -4 404 13 011

CHANGE IN WORKING CAPITAL REQUIREMENT -6 24 576

NET CASH FROM OPERATING ACTIVITIES 65 006 76 597

INVESTMENT ACTIVITIES

Payment / acquisition of intangible assets -5 042 -3 933

Payment / acquisition of PPE -49 318 -42 178

Receipts / disposal of PPE and intangible assets 8 202 13 260

Payment / acquisition of financial assets -4 342 -6 640

Receipts / disposal of financial assets 939 3 607

Net cash / acquisition and disposal of subsidiaries -1 000 2

NET CASH FROM INVESTMENT ACTIVITIES -50 561 -35 883

FINANCING ACTIVITIES

Increase in capital 75 0

Dividends paid to parent company shareholders 0 0

Cash from borrowings 49 422 15 116

Repayments of borrowings -54 815 -41 601

Variation of accrued interests payable -221 42

NET CASH FROM FINANCING ACTIVITIES -5 539 -26 443

VARIATION IN CASH AND CASH EQUIVALENTS BEFORE EXCHANGE RATE FLUCTUATIONS 8 906 14 271

Net effect of exchange rate fluctuations -641 -3 351

CASH AND CASH EQUIVALENTS AT THE OPENING 74 259 63 340

CASH AND CASH EQUIVALENTS AT THE CLOSING 82 524 74 259


Financial statements

Consolidated cash flow statement / in thousands of euros

Design and production: FM Logistic, Madras Editing. Graphic design: didmanbook.com Photo credits:FM Logistic, Patrick Sordoillet, Nicolas Guerbe, Studio Pygmalion, Jean-François Bohler, Luc Benevello, Fabrice Hirmance, Anton Nazaretyan, Agorize.Printing: this company is certified PEFC, FSC and Imprim’Vert.

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Documents

2019, staying the course · sectors. With a presence in three continents and five major regions (Western Europe, Central Europe, Eastern Europe, Asia and Latin America), FM Logistic