Corporate Presentation
January 2015
Table of contents
1.
Market environment and group positioning
p.3
2.
Equity story
p.7
3.
Logistics, transport and freight forwarding activities
p.13
4.
Financials
p.26
5.
Acquisition of Jacobson Companies
p.34
6.
Appendices
p.43
Disclaimer
This document was prepared by Norbert Dentressangle for the sole purpose of presenting its situation on
January 2015. This document may not be reproduced or distributed, in whole or in part, without the prior
agreement of the Company. Norbert Dentressangle may not be held liable due to the use of this document
by any person not belonging to the Company. This document does not contain any quantified forecast of
results. The Company makes no commitment or guarantee that it will meet its objectives or any goal that it
may state in its business plans. While the Company believes that its objectives are reasonable, readers are
reminded that said targets are subject to risks and uncertainties, notably as described in the "Risk factors"
section of the annual "Document de Référence" registration document.
2
1. Market Environment and Norbert
Dentressangle Group Positioning
3
The European Contract Logistics market
is undergoing consolidation
MARKET SIZE & TRENDS  2013
MARKET FRAGMENTATION
European market size: €62 billion
(i.e.31% outsourcing ratio)
European market concentration
UK  € 15 billion
France  € 8 billion
Italy  € 4 billion
Netherlands  € 4 billion
Spain  € 2 billion
Germany €15bn
€ in millions
2013 Share EBITA%
DHL
8 281 13,4%
3,1%
Kuehne + Nagel
2 394 3,9%
2,3%
CEVA
2 033 3,3%
n.c.
Geodis
2 015 3,3%
n.c.
ND Group
1 950 3,2%
4,5%
Rhenus
1 899 3,1%
n.c.
Russia  € 1 billion
Market dynamics (value growth)
Market & ND Positioning
8,0%
7,0%
Main ND markets
6,0%
Europe
5,0%
4,0%
2,9%
3,2%
2,0%
1,8%
1,4%
2,7%
0,8%
0,3%
0,7%
0,0%
2010
MARKET
INDICATORS
2011
Source : Transport Intelligence
2012
2013
CAGR 2014‐
2017
• The market is undergoing consolidation,
particularly in Western Europe, and shows
high growth in Eastern and Central Europe
• ND largest markets (UK, France, Italy,
Netherlands, Spain & Russia) represent a
global value of € 36 billion
• Norbert Dentressangle is a first-class player
in the market, delivering strong profitability
4
The European Road Freight market is
large and highly fragmented
MARKET SIZE & TRENDS  2014
MARKET FRAGMENTATION
European market size: €296 billion
European market concentration
France  € 34 billion  12%
UK  € 32 billion  11%
Spain  € 29 billion  10%
Germany €59bn Italy €33bn
Market dynamics (value growth)
4,0%
2,0%
France / UK / Spain
1,5%
0,9%
0,0%
Europe
3,2%
2,5%
1,5%
1,0%
‐0,7%
‐3,2%
2011
2012
Source : Transport Intelligence
2013
2014
2013 Share EBITA%
DB Schenker
6 370 2.2%
1.4%
DHL
4 246 1.5%
1.4%
DSV
3 100 1.1%
4.1%
Dachser
3 019 1.0%
n.c.
Kuehne Nagel
2 618 0.9%
-0.3%
ND Group
2 014 0.7%
2.7%
• The road freight market in Europe is highly
fragmented and offers significant room for
growth
• France, the UK and Spain (ND main markets)
represent a global value of €95 billion
1,4%
‐2,0%
‐4,0%
€ in millions
Market & ND Positioning
6,0%
4,2%
MARKET
INDICATORS
2014‐17
CAGR
• Norbert Dentressangle operates the #1
European owned fleet, a key differentiator
providing better pricing power
5
Apart from a few leaders, global Air & Sea
Freight markets are highly fragmented
AIR & SEA FREIGHT  2013
MARKET
INDICATORS
MARKET FRAGMENTATION
Global market size: € 123 billion
Global market concentration
China  € 13 billion  11%
USA  € 25 billion  20%
UK  € 5 billion  4%
Worldwide TOP 7 players*
represent a 36% market
share in 2013.
*:Ceva, DB Schenker, DHL,
Expeditors, Kuehne Nagel,
Panalpina, and Sinotrans
France  € 4 billion  3%
Market dynamics (volume growth)
25%
Seafreight vol. (TEUs)
Airfreight vol. (tons)
19,2%
14,8%
15%
5%
8,2%
2,7%
‐5%
‐4,4%
13,3%
5,9%
12,5%
LTM year‐on‐
year growth
Market & ND Positioning
‐0,6%
‐4,1%
4,4%
‐2,1%
2,4%
1,8%
‐0,6%
0,3%
‐15%
Mar‐10 Sep‐10 Mar‐11 Sep‐11 Mar‐12 Sep‐12 Mar‐13 Sep‐13
Source : Transport Intelligence
• Both air & sea freight forwarding markets are
dominated by a limited number of major
players
• Behind these major players, the freight
forwarding market is highly fragmented, with
many niche players
• The US, China, UK and France, (ND main
markets) represent a value of € 47 billion
6
2. Equity Story
7
Our ambition: to become a top-tier player
in supply chain management
Expanding
geographic
presence
• Supporting our clients
wherever they operate
and moving with them
whenever they need us
Increasing scale on
our markets
• Increasing our credibility
to become the go-to
“supply chain
management expert” of
choice
• Always striving to
increase our critical
mass in our chosen
markets
GROUP
AMBITIONS
Widening service
offering
• Combining organic &
external growth to
acquire and expand our
areas of expertise
• Developing and
expanding our range of
services & solutions
8
Milestones to create a global player: a
combination of organic & external growth
1979/89 Birth & development of international Transport between Europe and UK
1994 A family group listed on the Paris stock exchange
Venditelli
Turnover : 61m€
Transport
4 000
3 500
Christian Salvesen
Turnover : 1.3bn€
Transport & Logistics
2 500
500
20%
3 880
2 719
1 222
1 303
1 399
4 600
4 032
18%
15%
1 500
1 000
Turnover : 30m$
Freight Fwding
3 107
Stockalliance
Turnover : 95m€
Logistics
2 000
Fiege Italy & Spain
Jacobson (USA)
Turnover : 130m€
TDG
Turnover : $800m
Logistics
Turnover : 700m£
Logistics & Transport, Logistics & Daher France/Russia
Transport
Turnover : 80m€
Freight Fwding
Freight Fwding
Schneider Log. (USA)
3 576
TNT Logistics France
Turnover : 160m€
Transport & Logistics
3 000
LONG TERM
GROWTH
1 608
2 839
13%
APC (China)
Turnover : 50m€
Freight Fwding
1 804
10%
8%
5%
647
9,0%
744
8,6%
838
10,4%
972
1 053
7,0%
4,8%
5,7%
5,8%
5,3%
5,5%
8,1%
4,3%
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
3%
3,4%
5,6%
0,0%
2,4%
2010
2011
2012
2013
0%
0
Organic growth
1998 Integration of a second area of expertise : Logistics
2009
2013 PF
Turnover
2010 Third area of expertise with Freight Forwarding 9
A diversified client portfolio and a
strong customer base
CLIENT
PORTFOLIO
Customer Top 10
• Very well balanced client portfolio
• First customer below 4% of turnover and
Top 10 below 20% of turnover
• Very low exposure to specific customer or
sector or end-market risks
• Key customers are both leading and
innovative players in their own markets
Top100 customer portfolio
Other; 4%
Industry; 2%
Hi‐Tech; 2%
eCommerce; 3%
Metal; 4%
Retail; 30%
Recent Gains
FMCG; 4%
Construction; 4%
Household; 4%
Food; 14%
Special Retail; 5%
Textile; 5%
Automotive; 9%
Chemical; 10%
10
A robust governance, driven by a
European Executive Board
GROUP
GOVERNANCE
DISTRIBUTION OF CAPITAL
30% PUBLIC
• The benefits from a family owned company
and a managerial organisation
• A supervisory board:
- 10 Directors of which 6 are independent
Directors
- An audit committee
• A European Executive Board :
- Hervé Montjotin, CEO
- Malcolm Wilson, Logistics Division MD
68% DENTRESSANGLE
INITIATIVES + FAMILY
- Luis Angel Gomez, Transport Division MD
- Patrick Bataillard, CFO
- Ludovic Oster, HRD
11
Ambitions and strategy aligned to different
business development and maturity
BUSINESS
MODEL
• Market  Global, highly fragmented, but with few very large players
Freight Forwarding
• Development  Mix of Greenfield development and acquisitions (8) since
2010, which enabled to achieve a suitable geographical coverage
• Outlook  Consolidate our market position, deploy cross-selling actions, gain
critical mass on key trade lanes and verticals, focus on skills, IT, and processes
• Market  Local to global, undergoing consolidation in Europe
Logistics
• Development  First-class player in Europe (strong presence in Western
Europe), and strategic developments outside Europe (Russia, Saudi Arabia,
Brazil)
• Outlook  Increase scale on our key European markets, deploy our know-how on
growth sectors such as eCommerce, go global through accompanying key
customers and make strategic acquisitions in new geographies
Transport
• Market  Local to regional, large and highly fragmented and regulated
• Development  Leading position on key markets in Europe (France, UK and
Spain), ND operates the #1 European owned fleet, enlarged service offering
• Outlook  Expand the distribution network in Europe, manage the international
FTL shift from Western to Eastern Europe, increase scale on Central European
markets, develop Key PL solutions
12
3. Logistics, Transport and Air & Sea
Freight Forwarding businesses
13
The Group operations are organised
around 3 divisions (2013 annual figures)
BUSINESS
MODEL
LOGISTICS
TRANSPORT
Air & Sea Freight Forwarding
• €1,950m in
revenue
• €2,014m in
revenue
• €145m in
revenue
• €87.4m EBITA
• €53.0m EBITA
• €1.3m EBITA
• 23,580 employees
• 13,380 employees
• 720 employees
• 281 sites in 16 countries
• 182 sites in 12 countries
• 57 offices in 14 countries
• 8 acquisitions in 4 years
• Proforma revenue
estimated at ca. €220m
+ Russia &
Saudi Arabia
• Total warehouse surface
area of 7.8m sq meters (1)
• Temperature controlled
volume of 3.6m m3
(1) incl. 0.6m for Transport operations
+ Morocco
• Number 1 vehicle fleet in
Europe with 8,000
motorised vehicles (2)
• Seafreight  59% of
revenue, with a volume
of 60,000 TEUs
• Airfreight  32% of
revenue, with a volume
of 24,000 tons
• 94% Euro V & VI
(2) incl. 2,000 dedicated to Logistics
14
Logistics at a glance - 30/06/2014
One of the few European players with an increasing international profile
(the UK represents 41% of the total sales of logistics business)
• €1,068m revenue (before interco TO)
• €37.7m EBITA
• Contracted business (4 years average length)
• 23,600 employees
• 281 sites across 15 countries
• 7.8m m² warehouse space
• 3.6m m3 temperature controlled volume
15
Logistics: mastery of key logistics
skills throughout Europe
Ambient and temperature-controlled logistics
Global and industry solutions
Warehousing
and inventory
management
€480m
Order
preparation
€660m
Value-added
services
€178m
Downstream
transport
management
€465m
o/w €200m of turnover in e-Commerce & €370m of turnover in temperature controlled
The highest safety and quality standards
Service: ISO 9001 (66%of revenue) – Food safety: ISO 22000 (16 warehouses) & HACCP (39 warehouses)
Staff safety: ISO 18001 (33 warehouses) – Safety of medical devices: ISO 13845 (1 warehouse)
• One of the few European players with an increasing international profile (with integration of
Jacobson, US will represent 15% of total sales)
• Business is 100% contracted, and retail & FMCG sectors are key commercial targets
16
A consistently growing business with
major positive scale effects since 2008
Long term revenues and operating income (EBITA)
Turnover
In €M
EBITA
In €M
2 250
1 950
1 783
2 000
175
1 589
1 750
1 364
1 500
1 233
150
1 239
125
1 250
100
1 000
750
500
250
162
199
0
6
1998
8
1999
249
11
2000
279
14
2001
348
18
2002
477
18
2003
497
502
25
25
2004
2005
648
600
81
33
37
2006
2007
Turnover Logistics
49
52
2008
2009
78
87
25
0
2010
2011
5,1%
5,1%
2010
2011
2012
2013
4,4%
4,5%
EBITA Logistics
8,0%
6,0%
3,9%
4,0%
4,5%
1998
1999
2000
5,1%
5,1%
5,1%
5,0%
5,5%
5,7%
3,8%
3,6%
4,2%
2,0%
0,0%
2001
2002
2003
2004
2005
75
50
63
% of turnover
4,0%
200
2006
EBITA %age Logistics
2007
2008
2009
2012
17
A rigorous management structure,
developing strict cost controls
100%
5,1%
5,0%
5,5%
5,7%
18%
17%
16%
15%
28%
29%
30%
3,6%
4,2%
5,1%
5,1%
4,4%
4,5%
17%
18%
18%
22%
22%
20%
COST
STRUCTURE
Logistics Division cost
structure 2004-2013
90%
80%
18%
16%
16%
70%
60%
28%
21%
23%
24%
Operating profit
50%
Other (overheads, etc.)
40%
Subcontracting & transport
30%
20%
44%
45%
45%
46%
50%
51%
52%
50%
52%
53%
Rental costs
Personnel expenses
10%
0%
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
18
Transport at a glance - 30/06/2014
A major European player with robust and mature operations in France, United Kingdom and
Spain, and with an improved network coverage and increased presence in Central and
Eastern Europe
• €1,067m revenue (before interco TO)
• €26.9m EBITA
• 13,400 employees
• 182 sites in 13 countries
• #1 vehicle fleet in Europe with 8,863
tractor units operated*
• Of which 5,800 owned fleet
• Europe's cleanest vehicle fleet
• 95% EURO V & VI
• 54,000 TCO2 less since 2010
• Each driver runs an average 550,000km
without causing accidents
* Plus 2,000 spot sub-contractors
19
Transport: focus on the development
of value-added B2B service offerings
KeyPL &
Transport Organisation
Domestic/International
FTL & Cross-Channel
Dedicated fleet
Domestic/International
Pallet Network
* FY 2013 / To be added: €53m of warehouse storage associated with transport services
• A major European player with robust and mature operations in France, United Kingdom and Spain,
and with an improved network coverage and increased presence in Central and Eastern Europe
20
Transport: a resilient and profitable
profile over the past 15 years
Long term revenues and operating income (EBITA)
Turnover
In €M
EBITA
In €M
2 500
250
1 966
2 000
1 744
1 486
1 500
1 000
485
544
590
693
705
745
807
898
1 008
0
20
1999
26
2000
37
2001
31
2002
33
39
2003
2004
200
150
1 109
100
50
26
2005
3,8%
4,0%
4,5%
5,3%
4,4%
4,4%
43
2006
Turnover Transport
% of turnover
8,0%
5,9%
6,0%
2 014
1 636
500
28
1998
2 038
2007
30
2008
28
2009
44
47
2010
2011
2,7%
2,4%
2010
2011
50
60
53
2012
2013
3,0%
2,6%
2012
2013
0
EBITA Transport
5,0%
4,9%
3,9%
2,9%
2,0%
1,7%
1,9%
2008
2009
0,0%
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
EBITA %age Transport
21
A rigorous management structure,
developing strict cost controls
100%
4,9%
2,9%
5,0%
3,9%
1,7%
1,9%
26%
28%
32%
32%
32%
34%
2,7%
2,4%
3,0%
2,6%
40%
41%
43%
COST
STRUCTURE
Transport Division cost
structure 2004-2013
90%
80%
70%
37%
60%
50%
Operating profit
Other (overheads, etc.)
26%
26%
25%
26%
24%
21%
40%
24%
Subcontracting & disbursements
22%
22%
20%
Personnel expenses
30%
20%
Vehicle costs, including fuel
34%
34%
33%
31%
32%
33%
31%
29%
29%
29%
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
10%
0%
22
Air & Sea – Freight Forwarding
at a glance - 30/06/2014
• Launched from scratch in 2010
• €96m revenue
• €0.8m EBITA
• 659 employees
• 53 offices across 14 countries
• 24,000 Tons Air freight
• 60,000 TU’s Sea freight
• Strong position in the Russian market
• Member of the WACO global network
23
Freight forwarding: revenues
and operating income (EBITA)
Turnover
In €M
160
143
145
140
4
3
120
2
86
100
80
1,0
60
1,3
0
0,3
40
12
20
1
‐1
‐0,8
0
‐2
1999
2000
2001
2002
2003
2004
2005
2006
Turnover Air & Sea
2007
2008
2009
2010
2011
2012
2013
0,3%
0,7%
0,9%
2011
2012
2013
EBITA Air & Sea
% of turnover
2%
‐3%
1999
2000
2001
2002
2003
2004
2005
2006
2007
‐8%
2008
2009
2010
‐6,7%
EBITA %age Air & Sea
24
4. Group Financials
25
Consolidated income statement
and contribution by division
Transport
Logistics
Air & Sea
2,014
1,947
1,950
1,943
145
142
In €m
Total revenue
Consolidated revenue *
EBITDA
Operating profit before
goodwill (EBITA)**
53.0
2.7%
87.4
4.5%
EBIT
Net financial expenses
Income tax
Associates
Minority interests
Net income
* Breakdown by Division is net of intercompany revenue
1.3
0.9%
Conso
Income
statement
Conso
31/12/13
31/12/12
4,032
3,880
251.5
244.8
141.7
3.5%
141.6
3.7%
135.1
3.4%
129.5
3.3%
(26.7)
(36.7)
(1.5)
(0.3)
(32.2)
(26.8)
(0.0)
(0.8)
70.1
1.7%
69.7
1.8%
+3.9%
0%
1%
26
Consolidated turnover for the first 9 months
Strong momentum across all activities
Q3 2014
revenue
Q3 2014
YTD
Q3 2013
YTD
Change
LfL *
Transport
1.618
1.514
+6.8%
+3.7%
Logistics
1.670
1.409
+18.5%
+6.7%
Air & Sea
149
94
+59.2%
+0.8%
Inter-divisions
(62)
(59)
n.a.
n.a.
3.375
2.959
+14.1%
+5.1%
In €m
Consolidated Turnover
Transport
* Percentage change at a constant scope and exchange rate
27
Group LT EBITA Evolution
Long Term profitability achievements
160
142
130
140
120
83
20
7%
6%
5%
80
80
64
80
40
8%
142
106
98
100
60
EBITA
51
35
31
33
5,4%
4,1%
3,9%
49
4%
51
51
3%
2%
5,2%
4,6%
4,1%
4,9%
3,7%
5,2%
4,4%
3,2%
3,0%
3,7%
3,6%
3,7%
1%
3,5%
0
0%
1998
1999
2000
2001
2002
2003
2004
2005
EBITA %age
2006
2007
2008
2009
2010
2011
2012
2013
EBITA
• Highly sustainable profitability ratios
• EBITA %age comprised in a 3% to 5% range since 15 years
• EBITA %age maintained to 3% in 2009 despite the strong economic downturn
28
Long-Term consolidated cash
flow statement (5 years)
Cash-flow
In €m
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Cash flow
Change in operating WCR
UK pension fund financing
-
-
223
(28)
(13)
217
42
(11)
196
(36)
(10)
205
183
182
247
150
CAPEX (net of disposals)
Sales of warehouses and sites
Acquisition of a subs., net of cash acquired
-
-
(122)
30
(288)
(93)
23
(3)
(54)
43
(54)
Net cash flow from investing activities
(64)
(86)
(380)
(73)
(66)
141
103
90
178
138
-
-
(11)
176
(6)
(12)
(70)
(3)
(15)
81
(7)
(38)
(43)
159
(85)
59
-
-
-
1
-
Change in cash
104
55
(39)
90
142
Cash available at period end
141
196
157
247
389
Net cash flow from operations
Free Cash Flow (before external growth)
Dividends
Financing operations
Purchase of own shares
Net cash flow from financing activities
Forex impact
29
Simplified consolidated balance sheet
at 30 June 2014
GOODWILL & INTANGIBLE 740m€
Balance
sheet
EQUITY 607m€
• Goodwill 611m€
• Intangible incl. customer relation 129m€
PROVISIONS & OTHERS 276m€
TANGIBLE & OTHER NON CURRENT
ASSETS 607m€
• Tangible fixed assets 524m€
• Other fixed and non current assets 83m€
NET FINANCIAL DEBT 551m€
WORKING CAPITAL 87m€
30
Consolidated net financial debt and
projected amortisation of gross debt
Estimate
31-12-14
In €m
Acquisition debt
Revolving facility (€400m max)
Asset financing
Euro Private Placement
GROSS FINANCIAL DEBT
CASH & CASH EQUIVALENTS
NET FINANCIAL DEBT
Group
30-06-14
Group
31-12-13
270
260
370
310
165
394
310
168
367
310
1,210
869
845
180
318
389
1,030
551
456
1 400
Evolution of 2014 estimated gross debt
1 200
1 000
800
Asset financing
Acquisition debt
600
Revolving facility
400
Euro PP
200
0
31/12/2014
31/12/2015
31/12/2016
31/12/2017
31/12/2018
31/12/2019
31
Leverage
Strong track record of managing
leverage
Acquisition
TDG
APC Beijing
Acquisition
Christian Salvesen
1200
1000
Acquisition
TNT Logistics
Venditelli
Acquisition
Stockalliance
3,5x
Acquisition
UTL
Seroul
Acquisition
Jacobson
Acquisition
Fiege Italy/Spain
Daher
Acquisition
Nova Natie
John Keells
4
3,2x
2,8x
3
2,5x
800
3,5
2,3x
2,5
2x
600
1,8x
1,6x
1,8x
2
1,6x
1,3x
1,3x
400
1,4x
1,5
1x
0,8x
0,4x
200
1
0,5x
0,5
76
80
69
31
74
43
165
159
121
533
553
445
382
624
489
456
1030
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
0
Net Financial Debt
Leverage ratio
0
(estimate)
32
Medium-term historical trends
Key financial indicators
Strong profitability
MEDIUM
TERM KPIs
Resilient business model
6%
160
2 000
20%
14,9%
3,7%
120
3,6%
3,7%
3,5%
3,0%
15%
4%
12,0%
11,3%
12,7%
11,7%
1 000
10%
80
2%
40
80
106
130
142
142
0
0%
2009
2010
2011
EBITA
2012
EBITA %age
500
5%
709
714
1 089
1 214
1 113
2009
2010
2011
2012
2013
0%
2013
Capital Employed ‐ avg
Tight capex monitoring
4%
120
3,4%
2,9%
90
2,4%
2%
1,3%
1%
80
86
122
93
54
2009
2010
2011
2012
2013
Capex %age
ROCE
300
140%
120%
225
78%
60
150
30
75
0
0%
Capex
0
Sound cash conversion
3,0%
3%
1 500
58%
60%
52%
62%
100%
80%
60%
40%
189
216
252
245
251
2009
2010
2011
2012
2013
20%
0%
0
EBITDA
FCF/EBITDA
33
5. Acquisition of Jacobson Companies
34
Transaction Overview
Norbert Dentressangle has acquired Jacobson Companies, the #5 US
contract logistics provider in the US
•
•
•
Founded in 1968, Jacobson is the fifth largest contract logistics provider in the
US, with a highly complementary asset-light transportation offering
• Extensive US network, spanning 142 locations with over 33 million square
feet of warehouse space; 84% of locations are dedicated facilities
• Long-standing relationships with blue-chip and regional customers :
customer retention rate of 95%
• Expected 2014 gross Revenue of ~$800mm, overall EBITDA margins of
~10%, with low capex
• Led by proven US management team which will oversee Norbert
Dentressangle’s US operations going forward
Immediately positions Norbert Dentressangle as one of the top 5 players in the
fast-growing US 3PL market
Purchase consideration :
• $750 million initial consideration at close, all funded with cash resources and
Norbert Dentressangle’s credit lines
• Additional capped earn-out based upon near term performance
=>Purchase multiple is approximately 9x EBITDA
35
Strategic Rationale
•
Accelerates Norbert Dentressangle’s growth ambitions to become a top player in
global supply chain management
•
+15% in annual revenue growth reaching €5 Billion
•
The group is scalable in the US logistics & transport market with US$800 million in gross
revenue
•
Enhances Norbert Dentressangle’s growth and profitability
•
Revenue synergies leading to cross-selling opportunities to both sets of customers
•
Sharing best practices in contract logistics
•
EBITDA Margin enhancing in year 1 after acquisition
•
Provides entry into the attractive US 3PL market
•
Immediately becomes one of the top 5 players in the US contract logistics market with
nationwide coverage
•
US logistics market expected to grow faster than Europe due to higher GDP growth and
less mature outsourcing profile
•
Provides geographical and risk diversification
•
Mitigates impact of any European-specific events
•
Provides alternative revenue stream
•
The transaction is earnings accretive and maintains Norbert Dentressangle’s sound
financial structure
Jacobson Business Overview
•
#5 value-added warehousing 3PL provider in North
America with integrated domestic transportation
management capabilities
Revenue
Transport
•
Expected to generate ~$800mm in Gross Revenue and
~$80mm of EBITDA in 2014
Logistics
•
Operates through two segments:
•
Contract Logistics Services: manages 142 facilities
with 3 million m² of warehouse space
•
Transportation Logistics Services: asset-light
transportation network with 350+ tractors and 1,225
trailers
Adj. EBITDA by Segment (1)
Transport
•
Services 1800+ customers within the food & beverage,
chemical, life sciences, CPG, retail, consumer electronics,
durable good and automotive industries
Logistics
•
Strong trade record : EBITDA 9,5% of sales in 2013
EBITA 7,5% of sales in 2013
37
(1) Excludes allocation of corporate overhead
37
Jacobson’s nationwide coverage
West: 12 sites
Midwest: 58 sites
Northeast:
32 sites
•
Well managed portfolio of
predominantly dedicated, leased
warehouses, most of which are
linked to the customer contract
duration
•
Leasing of warehouses
compliant with Norbert
Dentressangle’s strategy of low
real estate assets
Dedicated vs. Shared Facilites
Shared
16%
Dedicated 84%
Southwest: 58 sites
•
•
•
Dedicated DC
Shared
SharedUser
UserDC
DC
Offices
Offices²
Southeast:
18 sites
Regional Mix
Northeast
25%
Midwest
41%
West
9%
Southeast
11%
Southwest
14%
38
Strong and well balanced customers
portfolio
Revenue Concentration by Vertical
Chemicals
18%
Agriculture and
others
16%
CPG
12%
Food &
Beverage
Durable Goods
Primary Verticals and Representative Clients
Consumer
Packaged
Goods
Chemicals
Food and
Beverages
35%
Durables
19%
Revenue Concentration by Customer
Others
32%
Top 10
41%
Agricultural
Products
21-30
11%
11-20
16%
39
Jacobson’s Positioning among primary
3PL competitors
#4 Largest US Value-added
Warehousing Provider with
National Footprint
Strong Market Share in Food
and Beverage and CPG
Warehouse Est. Net
Company Space (mm ft2) Revenue
99.0
$2,500


35.0
1,009


34.0
513


33.0
611


30.0
420


26.0
877
25.0
1,247


22.0
925


16.0
313


15.1
1,038
3.1
1,100
Differentiated Platform in
Chemicals
Dedicated Facilities with
Long-Term Anchor Tenants
Offers Complementary TMS
and Dedicated Trucking
Services
Perceived End Market Capabilities by Service Offering
Warehousing / Distribution
Packaging / Kitting
F&B
CPG Chemical Ind / Agri F&B / CPG Chemical

























(1)






(1) Gross revenue due to lack of disclosure. Source: Armstrong and Associates; Company reports; Company websites; Transport Topics 2013
40
Enhancing geographic and business
transformation
4%
45%
65 %
Breakdown of turnover by business line
TRANSPORT
LOGISTICS
AIR&SEA
USA
Becomes the 3rd
largest country for
Norbert
Dentressangle
Breakdown of turnover by geographic area
FRANCE
OUTSIDE FRANCE
35 %
51 %
Others
16%
France
35%
14%
1998
A second area of
expertise is
integrated:
Logistics.
2007
Norbert Dentressangle
doubles in size
through the
acquisition of the
British company
Christian Salvesen
2010
Launch of a
third area of
expertise:
Air & Sea
2014 PF
Spain
9%
Revenue: €5 billion
Operations in
25 countries
43,200 employees
worldwide
UK
26%
Split in turnover
per country
41
CONTRACT LOGISTICS
52%
€ 5 billion
5
TRANSPORT
44%
FREIGHT FWD
4%
continents
Annual turnover
25
countries
43,200
employees
662
sites
9,650
vehicles
* Pro-forma figures including Jacobson
10,800,000 m2
warehousing
6. Appendices
43
6.1 Financial statements
44
Consolidated income statement
45
Consolidated balance sheet
46
Consolidated cash flow statement
47
6.2 Corporate Social Responsibility &
Sustainable Development
48
Norbert Dentressangle CSR approach as
a key differentiating factor
CSR initiatives aligned with
business strategy
• The Group banks on safety and
depolluting
Leverage gains in reputation
and legitimacy
• Build a responsible brand
• Reputation acts as a marketing
differentiation strategy
• Attract talents and increase
workers retention rate
CSR
APPROACH
Strong contribution to
additional business
• Costs of CSR activities are much
less than potential benefits
• Strong CSR has positive impact
on business & financials through
enhanced reputation
As a pioneering company in its sector, Norbert Dentressangle included its sustainable
development approach in its strategic goals as far back as 2003.
7,251 vehicles
600 millions kms travelled each year
Reduction of
greenhouse gas
emissions
Road safety
7.8 million m2
warehousing
37,835
employees
Environmental site
management
Development and
internal promotion
49
Reducing greenhouse gas emissions
targets and initiatives (2013 annual figures)
Greenhouse Gas Emissions
Fleet of vehicles : 7,251
Breakdown of Euro standards
6%
GAS
EMISSIONS
Key Targets and Initiatives
Reducing greenhouse gas emissions
•
19%
Euro V EEV
Euro V
Euro III & IV
Less fuel consumption
-
Driver training to efficient driving
-
Technical improvement of vehicles
-
Testing new alternative technologies
•
Improved use of vehicle capacity (payload &
space)
CO2 emissions  676,950 Tonnes
•
Better transport flows optimisation, through
multimodal solutions
CO2 performance in grams per
tonne.km
Measuring greenhouse gas emissions
75%
Division
2012
2013
Change
Transport
66.0
65.17
-0.07%
Logistics
93.5
99.91
+6.8%
Total
74.9
69.12
-1.1%
•
Our in-house designed C02 calculator designed
in partnership with Ademe French
government body
50
Road safety is part of the Norbert
Dentressangle DNA
•
With our Safe Driving Plan, Norbert Dentressangle has been
committed to managing road safety risks
•
The aim of the Safe Driving Plan: avoiding accidents by
improving driver behaviour
•
340 trainers dedicated daily to road safety
•
A Norbert Dentressangle driver travels 550,000 km on
average without causing an accident.
ROAD
SAFETY
Member of the
European Safety
charter
51
Environmental site management at
Norbert Dentressangle
Key Environmental Facts & Figures
Transport Division
SITE
Management
Key Targets and Initiatives
•
Norbert Dentressangle has
defined an environmental
management standard which
covers several dimensions
•
86% of energy consumed is primary, i.e.
vehicle fleet’s fuel consumption
•
620,000 m2 on 182 sites
-
Regulatory conformity
Logistics Division
-
Monitoring and measurement of
energy and water consumption
-
Monitoring and measurement of
emissions and waste
•
7,800,000 m2 & 3,900,000 m3 on 281 sites
•
ISO 9001 certifications  64% of the sites
•
ISO 14001 certifications  49% of revenue
•
69 warehouses under food safety certifications
•
Electricity consumption  332 million kWh
•
Gas consumption  11,6 million m3
•
Generation of wastes  53,000 Tonnes  87%
is sorted, and 76% is recycled
•
Norbert Dentressangle monitors
the percentage of sites that have
been brought into line with the
defined environmental standard
and aims to bring 100% of sites
up to this standard
52
Key social and human resources
indicators
Headcount at 31-Dec-13 : 37,835
2%
36%
Freight Fwing
62%
3%
23%
35%
Key Social / HR Facts & Figures
•
Group’s employees average age  41 years
•
Average seniority  7 years
•
Permanent contracts employment  92%
•
Voluntary turnover rate  6,7%
•
New recruitments in 2013  5,329
•
Internal promotion (managers)  60%
•
Absenteeism rate  5,23%
•
Collective bargaining agreement coverage 
75,4% (100% in France)
•
Staff training investments in 2013  €11m
Transport
Logistics
France
UK
Rest of Europe
Asia/America
39%
10%
27%
19%
Drivers
HUMAN
RESOURCES
Workers
Employees
Executives
44%
Via its adhesion to the Global Compact,
the Group has committed to comply
with and promote its 10 principles
53
Human resources: the key success factor
of Norbert Dentressangle's growth
•
•
•
HUMAN
RESOURCES
The Group is highly skilled in integrating acquired businesses and staff
–
Accumulated experience through more than 35 acquisitions during the last 20 years
–
In 2013, integration of 1,140 new employees following the acquisitions of logistics
businesses of Fiege in Italy, Spain and Portugal, and of the freight forwarding business of Daher in
France and Russia
Hands-on employee support
–
Acceleration of the Red Management training programme launched in 2010, 2000 managers
trained in 2012 in Europe
–
Deployment of the Red Graduate Programme, with the integration of 20 high potentials each year
A specific initiative in Logistics in France
–
A JV set up with Ares, a French social integration association, dedicated to the training of disabled
and/or underprivileged people to logistics jobs
–
Log’Ins is a logistics company developing essentially co-packing and e-commerce service offerings
–
Today Log’Ins already employs 15 people and is based in Paris area
54