This document was prepared by Norbert Dentressangle for the sole purpose of presenting its annual results on 29 February 2012.
This document may not be copied or distributed, in whole or in part, without prior agreement from the company. Norbert Dentressangle assumes no responsibility for the use of this document by any person outside the company.
This document contains no earnings forecast data.
The company makes no commitment and provides no guarantee concerning the realisation of any targets or aims that may be expressed within its business plans. While the company believes its targets 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.
Disclaimer
1. Norbert Dentressangle – François Bertreau, Chief Executive Officer
2. Transport – Hervé Montjotin, Managing Director
3. Logistics – François Bertreau
4. Freight Forwarding – François Bertreau
5. Consolidated Financial Statements – Patrick Bataillard, Chief Financial Officer
6. Outlook – François Bertreau
7. Appendices
Norbert Dentressangle
Introduction
2011: a transformative year for
Norbert Dentressangle
•
Sustained growth in Transport and
Logistics and significant expansion in
the Freight Forwarding business
•
International expansion thanks to the
consolidation of TDG and APC Beijing
International
In €m 31/12/11 31/12/11 Historical Scope 31/12/10 Overall % change % Change at constant scope Revenue 3,576 3,002 2,839 +26.0% +5.7%
Operating profit before goodwill and goodwill
impairment (EBITA) 130.4 124.9 106.3 +22.6% +17.8%
EBITA margin 3.6% 4.2% 3.7%
Net income 63.3 - 57.2 +10.7% -
Very solid performance in 2011
Italy 4% UK 28% France 45% Spain 11% Netherlands 3% Other 9%
•
€3.6 billion in revenue
•
Operates in 23 countries
on 3 continents
•
33,000 employees
European leader International company
Norbert Dentressangle, an increasingly
8
Norbert Dentressangle, a responsible player
with actual commitments
Road Safety
• Safe Driving Programme • Drivers travel 655,000 kms
on average in 2011 without causing accidents: up 11% vs. 2010
Efforts to reduce CO² emissions
• Europe’s cleanest vehicle fleet: 93% EURO IV & V.
– Rollout of the first Euro VI tractor earlier this month, 2 years ahead
of legal regulations
• Testing new diesel-alternative technologies:
– Norbert Dentressangle was the first transporter to begin using 3
diesel-electric hybrids in 2011
• 55 g CO2 / Tonnes x kms emitted in 2011: down 3% vs. 2010
• ISO 14001 Certification
– 42% of platforms certified
– 51% of revenue certified
• Environmental site management
– Waste management:
→ Sorting recyclables
→ Reusing recyclable waste (packaging, etc.)
• Energy efficiency
– Optimised lighting systems
10
Human Resources: the core of Norbert
Dentressangle’s growth
• Significant hiring capacity
– Accumulated experience through its
acquisitions
– 6,000 employees added following TDG
consolidation
– 270 employees added following APC Beijing
International acquisition
• Hands-on employee support
– Training: Red Management launched in
2010, 432 managers trained in Europe in 2011
– Internal promotion: 60% of managers are
Transport
€1,966 M (1) Diesel fuel effect +2.1% Volume and price effect +4.7% +20.2% Calendar and forex effect - 0.5% Consolidation effect +14%
(1) Before elimination of “inter-division” revenue
€1,636 M (1)
31/12/10 31/12/11
Change in revenue
Norbert Dentressangle has improved its
position in the market
• +20.2% growth (up 6% on a comparable basis), linear over
the fiscal year
• Growth driven by the momentum of our services:
– Pallet distribution service:
→Domestic up 8%
→Red Europe up 15%
– Transport organisation (Key PL) up 120%
– Dedicated Fleet (Red Inside) up 6%
• Consolidation of TDG’s businesses profoundly transformed
Norbert Dentressangle’s Transport profile in the UK, in terms of both its services and its scope
In €m Transport at 31/12/11 Historical Transport activities at 31/12/11 Transport at 31/12/10 Overall % change % Change at constant scope Revenue* 1,966 1,734 1,636 +20.2 % +6.0%
Operating profit before
goodwill (EBITA) 47.4 50.0 44.1 +7.5% +13.4%
As % of revenue 2.5% 2.9% 2.7%
Transport operating income
14
Improvement of the Transport margin
at historical consolidation scope
•
Historical operating profitability up 13.4% vs. 2010
– “General Cargo” business recovery
– Solid performance in “Pallet distribution” service
→This business now contributes to profit in the UK
•
Former TDG businesses a slight drag on financials
– Major restructuring in Spain (completed 2011)
– Improving operating efficiency a challenge in the UK
International FTL & Cross-Channel 500 M€* Domestic Pallet Distribution 450 M€* International Groupage & Pallet Distribution 150 M€* Domestic FTL 450 M€* Dedicated Fleet 350 M€* CO2 emissions declaration**
* FY 2011 ** Carbon calculator attested by Bureau Veritas
Always striving to improve our services
16
Norbert Dentressangle model 3PL, LLP and 4PL: Key PL®
• Raw numbers:
– 5,000 orders / year
– 28,000 pallets delivered / year (i.e., equal to 1,000 lorries)
– Delivered to 26 European countries
• Advantages to the customer:
– A sole contact from 1 pallet to a full lorry
– Deliveries collected daily
• Our contractual commitments:
– Delivery times
– Online order tracking and delivery confirmation
– Per-pallet pricing
Red Europe veterinary product export
services both reliable and flexible
Transport at the end of 2011
18€1,966 M in revenue
• 40% outside France15,000 employees
• At 160 sites in 14 countriesVehicles
• No. 1 vehicle fleet in
Europe with 7,800 motorised vehicles
Logistics
€1,589 m (1) Volume and price effect +3.9% +28.2% Consolidation scope effect +24.3%
(1) Before elimination of “inter-division” revenue
€1,240 m (1)
31/12/10 31/12/11
Change in revenue
Logistics has leveraged TDG to strengthen
its European scope
•
Satisfactory growth momentum,
particularly in the UK, Italy and Spain
•
The UK became the leader in logistics
with 41% of the revenue
•
Slower growth in Q4 2011 reflecting
consumer trends in Europe for this same
period
In €m Logistics at 31/12/11 Historical logistics activities at 31/12/11 Logistics at 31/12/10 Overall % change % Change at a constant scope Revenue* 1,589 1,294 1,240 +28.1% +4.4%
Operating profit before
goodwill (EBITA) 80.4 75.8 63.0 +27.6% +20.3%
As % of revenue 5.1% 5.9% 5.1%
* Before elimination of “inter-division” revenue
Logistics operating income
Logistics operating margin remains high
•
High profitability throughout Europe
– The two logistics leaders, the UK and France, have
performed particularly well
•
Contribution from former TDG businesses is
Warehousing and inventory management €445 M Upstream transport management €397 M Order preparation €572 M Value-added services €175 M
A mastery of key logistics skills
24
Ambient and temperature-controlled logistics Global and industry solutions
The highest safety and quality standards
Service: ISO 9001 (71%*) – Food safety: ISO 22000 (16 warehouses) & HACCP (24 warehouses) Staff safety: ISO 18001 (35 warehouses) – Medical facility safety: ISO 13845 (1 warehouse)
•
Storage and distribution of fresh products
(between 2
°
C and 6
°
C)
•
4,000 m² warehouse in Bucharest and 1,000 m²
in Cluj. / New 10,000 m² warehouse in
Bucharest in 2012
•
19-platform distribution network
•
Daily delivery to 15,000 retailers
•
80,000 T of Danone products handled annually
•
8,000 T of dairy products, deli meats and
prepared foods for other customers
ClujBucharest
NDL Frigo Logistics: JV with Danone in
Romania for fresh product logistics
€1,589 M in revenue
• 68% outside France17,200 employees
• At 257 sites in 13 countriesTotal warehouse
surface area: 6.6 M m²
Negative cold volume:
3.5 M m
3Logistics at the end of 2011
Freight
Forwarding
28 Dublin Bradford Manchester London Bilbao Madrid Budapest Nijmegen Barcelona Paris Lyon Le Havre Lille
Europe
China
Ningbo Shenzhen Hong KongTianjin Shanghai Nanjing Beijing Urumqi Chengdu Chongqing Xiamen Qingdao Dalian Xi’an Suzhou Shaoxing Ningbo Shenzhen Hong Kong
Tianjin
Shanghai Ningbo Shenzhen Hong Kong
Tianjin Shanghai Nanjing Beijing Urumqi Chengdu Chongqing Xiamen Qingdao Dalian Xi’an Suzhou Shaoxing Beijing San Francisco San Diego Los Angeles Atlanta Chicago New York Miami
United States
Chile
Brazil
Santiago Sao Paulo • 39 offices • 10 countries • 3 continents • 500 employeesNorbert Dentressangle, a major freight
forwarding player
Ningbo Tianjin Shanghai Nanjing Beijing (2) Urumqi Chengdu Chongqing Xiamen Qingdao Dalian Xi’an Suzhou Shaoxing
Head offices in Beijing
€50 M in revenue
• 75% in air freightCoverage of key
geographical regions in
China
• 16 offices270 employees
Acquisition of APC Beijing International,
1 December 2011
€86 M (1) APC €6 M Internal growth €8 M x 7 Schneider & TDG consolidation effect €60 M
(1) Before elimination of “inter-division” revenue
€12 M (1)
31/12/10 31/12/11
30
Freight forwarding continues to expand
• Freight Forwarding grew sharply and reached a significant
size in the market with €86 M in revenue in 2011
• TDG businesses successfully incorporated
• Acquisition of APC Beijing International strengthened Asian
presence and air freight services
In €m Freight Forwarding at 31/12/11 Freight Forwarding at 31/12/10 Overall % Change Revenue* 86 12 x 7 Gross Margin 17.1% 16.0%
Operating profit before
goodwill (EBITA) 0.3 -0.8 N/A
As % of revenue 0.3% -7%
Freight Forwarding Operating Income
32
•
Break-even achieved by the end of 2011
– 2 years following launch
– With 3 acquisitions
– And a presence on 3 continents
•
Improved performance for former Schneider
businesses
•
TDG posted positive contribution starting in the first
year and APC in the first month of consolidation
Profitability in line with
34
•
Intercontinental transport services:
– Air freight – Sea freight
– Management of customs operations
•
Personalised industry solutions:
– High-tech products
– Perishable goods: fruit, vegetables, flowers, etc. – Wine and spirits
Global development of a specific range of
services
LAX, Los Angeles
JFK, New York
SCL, Santiago GRU, Sau Paulo
MAD, Madrid PEK, Beijing HKG, Hong Kong BUD, Budapest DUB, Dublin CDG, Paris LHR , London AMS, Amsterdam MIA Miami SFO San Francisco CHI Chicago
ATL Atlanta
Europe
USA
PVG, Shanghai
China
Door-to-door air freight service launch:
Red Sky Connect
• An integrated air freight solution between Norbert Dentressangle
consolidated hubs guarantees customers:
– Flexible deadlines
Consolidated financial statements
Part 5
In €m Cons. 31/12/11 Historical scope 31/12/11 Cons. 31/12/10 Revenue 3,576 3,002 2,839 EBITDA As % of revenue 252.3 7.1% NA 216.3 7.6%
Operating profit before goodwill (EBITA)
As % of revenue 130.4 3.6% 124.9 4.2% 106.3 3.7%
Impairment test / Goodwill Impairment of the “customer relationship”
-
- 5.8 - - 3.8 -
In €m
Cons.
31/12/11 31/12/10 Cons.
Restructuring costs -9.1 -9.1
Non-operating capital gains (losses) on disposals +3.1 +0.9
Reversal of provisions 0 +1.2
Other non-recurring income and expenses -3.4 -2.4
Subtotal -9.4 -9.4
Breakdown of non-recurring income and
expenses
In €m Transport 31/12/11 31/12/11 Logistics Freight forwarding 31/12/11 Cons. Total 31/12/11 Revenue Inter-group invoices 1,966 (64) 1,589 (7) (1) 86
Revenue, net of interco revenue 1,901 1,582 85 3,576 *
Operating profit before goodwill (EBITA)
As % of revenue
47.4
2.5% 5.1% 80.4 0.3% 0.3 130.4** 3.6%
In €m
Cons.
31/12/11 31/12/10 Cons.
Amortisation of commissions for arranging syndicated
loans -0.7 -1.4
Transaction fees (acquisitions) -1.3 -2.0
Forex gains (losses) -2.2 -0.8
Actuarial (losses) and income (IDR, pension) Miscellaneous
+3.0
-0.2 -2.5 0
Net financial expense -24.0 -20.1
Total financial expense -25.4 -26.8
Net financial expense as % of revenue -0.67% -0.71%
Net financial expense
COUNTRY
Net income before CIT
in €m
Theoretical CIT at local rate €m % Actual CIT** at 31/12/11 In €m FRANCE 39.7* (14.3) 36.1 (12.3) UK 23.1 (6.5) 28 (4.0)
Rest of the world 23.2 (6.1) 26 (6.0)
TOTAL 86 (26.9) (22.2)
Corporate income tax
42 In €m Cons. 31/12/11 31/12/10 Cons. Revenue 3,576 2,839 EBITDA 252.3 216.3
Operating profit before goodwill (EBITA) 130.4 3.6% 106.3 3.7%
EBIT 124.6 3.5% 102.5 3.6%
Net financial expense
Income before taxes and associates Corporate income tax
CVAE Associates Minority share (25.4) 99.1 (22.2) (13.1) 0.2 0.7 (26.8) 75.8 (7.2) (11.9) 0.5 -
Group net income 1.8% 63.3 2.0% 57.2
+ 26%
+23%
+11%
Consolidated income statement
In €m
Cons.
31/12/11 31/12/10 Cons. Cash flow
Change in operating WCR UK pension fund financing
223 (28) (13) 198 (7) (8)
Net cash flow from operations 182 183
CAPEX (net of disposals) Sales of warehouses and sites
Acquisition of securities less acquired cash
(122) 30 (288) (86) 6 (6)
Net cash flow from investment transactions (380) (86)
Dividends
Remaining amount of financing operations
(11)
170 (34) (9)
Net cash from financing transactions 159 (43)
Forex impact (0.1) 1
Change in cash (39) 55
In €m
Cons.
31/12/11 31/12/10 Cons.
Goodwill 552 366
Intangible fixed assets (incl. customer relationship) 115 63
Tangible fixed assets 644 551
Other fixed and non-current assets 95 81
Total non-current and financial assets 1,406 1,061
WCR (21) (25)
TOTAL ASSETS (NET) 1,385 1,036
Equity 512 458
Provisions and deferred tax liabilities 228 182 Fair market value of hedging instruments 21 13
Net debt 624 382
TOTAL LIABILITIES (NET) 1,385 1,036
Balance sheet structure
In €m 31/12/11 31/12/10
Acquisition debt 277 197
Revolving facility 95* 0
Asset financing 401** 373
Employee profit-sharing 9 9
TOTAL GROSS DEBT 781 579
Cash and cash equivalents, net of bank
overdrafts 157 196
NET FINANCIAL DEBT 624 382
9 8 9 10 10 401 302 203 123 67 0 242 284 325 372 0 100 200 300 400 500 600 700 800 900 Crédit Syndiqué Financement d'actifs Autres dettes et participations 31/12/2011 31/12/2012 31/12/2013 31/12/2014 31/12/2015 Outstanding debt in €m
Theoretical amortisation of net financial debt
46
Syndicated Loan
Asset financing
Other debt and participating interests
31/12/11 31/12/10 covenants on Bank 31/12/11
Gearing
(Net Financial Debt/ Equity) 114% 83% < 200% Leverage
(Net Financial Debt/ EBITDA) 2.47 x 1.8 x < 3.5 Interest cover
(EBITA / Net Interest Expense) 5.3 x 5.2 x > 2.5 ROCE
(EBITDA / average capital employed) 12.6% 12%
•
Dividend to be proposed for approval at the 24 May
2012 Annual General Meeting:
– €1.25 / per share, up 14% over €1.10 in 2010
48
Shareholders Meeting scheduled
for 24 May 2012
Outlook
• Macroeconomic outlook flat in Europe at around 0%
• Visible signs of slowing since the end of 2011 from our industrial
and major distributor customers
• Very little transparency on the level of our clients’ business
• Low level of inventories
Priority to reactiveness
An uncertain environment for 2012
• Diversified portfolio of customers from all economic sectors • Size, strong financial situation and durability
• Decentralised organisation with self-sufficient and responsible
managers leading economic and social units (460)
•
Cost synergies following the acquisition of TDG
•
Year of consolidation in Freight Forwarding
•
Rigorous management of costs and balance sheet items
2012 Outlook
Appendices
A balanced customer portfolio
54 Food 17% Automotive 10% Chemical & Petrochemical 9% Distribution 22% Specialised distribution 4% Household supplies 2% FMCG 5% High tech 3% Industry 17% Luxury 2% Brown & white 2%Main transport expense items
2011
Vehicles 22.4% (incl. fuel 13.8%) Other overhead costs 5.9% Operating profit before goodwill (EBITA) 2.8% Staff costs 29.4%56
Main logistics expense items
2011
As % of revenue Premises 21.4% Subcontracting & transport 17.1% Overhead costs 6.1% Operating profit before goodwill (EBITA) 5.1% Staff costs 50.4%In €m
Land and
buildings Transport vehicles Machinery and equipment Other & IT TOTAL
31/12/2009 118 349 61 33 561
31/12/2010 110 355 53 34 551
31/12/2011 150 379 74 42 644
In €m 31/12/10 Cash flow for the period Newly consolidated Change and other non-cash flows 31/12/11 WCR (25) 20 (15) (1) (21) Of which: - Operating WCR 127 - - - 197 - Non-operating WCR (126) - - - (184) - Fixed asset WCR (25) - - - (34)
Change in working capital requirement
Financial Statements
BILAN CONSOLIDE (en M€) 31/12/2011 31/12/2010 31/12/2009
ECARTS D'ACQUISITION 551,9 366,2 358,6
AUTRES IMMOBILISATIONS INCORPORELLES 114,6 63,1 68,7
IMMOBILISATIONS CORPORELLES 644,0 551,0 560,6
IMMOBILISATIONS FINANCIERES 48,9 32,2 30,6
IMPOTS DIFFERES ACTIFS 46,4 48,8 48,1
TOTAL ACTIF IMMOBILISE 1 405,8 1 061,3 1 066,5
Stocks 15,8 12,7 14,4
Clients et comptes rattachés 653,8 495,2 452,0 Autres créances et autres actifs courants 168,0 142,9 152,0 Disponibilités et Valeurs Mobilières de Placement 245,3 213,9 168,0
TOTAL ACTIF CIRCULANT 1 083,0 864,6 786,3
Actifs non courants detenus en vue de la vente
TOTAL DE L’ACTIF 2 489 1 926 1 853
Capital social 19,7 19,7 19,7
Primes et Réserves 451,6 407,7 325,6 Ecarts de Conversion -25,2 -26,5 -30,6 Résultat de l’exercice 63,3 57,2 85,7
CAPITAUX PROPRES PART DU GROUPE 509,5 458,0 400,4
Intérêts Minoritaires 2,9
CAPITAUX PROPRES 512,3
PROVISIONS POUR RISQUES ET CHARGES (+ 1an / -1 an) 144,5 112,5 114,6
IMPOTS DIFFERES PASSIFS 82,4 70,2 73,3
EMPRUNTS A LONG TERME 640,2 453,4 406,7
Dettes financières Court Terme 141,5 125,2 180,1 Fournisseurs et effets à payer 523,6 405,0 368,7
60
COMPTE DE RESULTAT CONSOLIDE (en M€) 31/12/2011 31/12/2010 31/12/2009
CHIFFRE D’AFFAIRES 3 576,2 2 838,7 2 719,4
Achats et charges externes -2 173,9 -1 665,6 -1 541,6
Charges de personnel -1 102,6 -917,7 -925,7
Impôts, Taxes et versements assimilés -42,5 -34,0 -49,6
Dotation / reprise aux amortissements et provisions -120,7 -109,6 -115,1
Autres produits et charges opérationnelles -3,2 2,8 2,3
Résultat sur cession d'actifs d'exploitation 2,9 -0,1 -0,2
Coûts de restructuration -9,1 -9,1 -12,7
Plus et moins-values immobilières 3,1 0,9 3,6
_________ _________ _________
RESULTAT OPERATIONNEL avant écarts d'acquisition (EBITA)
130,4 106,3 80,4
Dépréciation Goodwill 0,0 0,0 0,0
Amortissements de la Relation Client acquise -5,8 -3,8 -3,7
Badwill _________ _________ _________ E.B.I.T. 124,6 102,5 76,7 Résultat Financier -25,4 -26,8 -25,8 Cessation d'Activités _________ _________ _________
RESULTAT AVANT I/MPOT 99,1 75,8 50,9
Impôt sur les sociétés -22,2 -7,2 36,2
Impôt sur les résultats : CVAE / IRAP -13,1 -11,9
Quote-part des résultats des sociétés mises en équivalence 0,2 0,5 -1,4 _________ _________ _________
RESULTAT NET DU GROUPE 64,0 57,2 85,7
Part des intérêts minoritaires 0,6
BENEFICE NET REVENANT
AU GROUPE NORBERT DENTRESSANGLE
63,3 57,2 85,7
ETAT DU RESULTAT GLOBAL (en M€) 31/12/2011 31/12/2010 31/12/2009
RESULTAT NET PART DU GROUPE 64,0 57,2 85,7
Ecart de conversion 1,1 3,8 7,1
Gains et pertes liés aux réévaluations des instruments financiers -7,8 2,8 -2,2 Effet d'impôt sur instruments financiers et écarts de conversion 5,6 -0,5 5,1
Divers -0,3 0,2 -0,2
_________ _________ _________
PRODUITS ET CHARGES COMPTABILISES EN CAPITAUX PROPRES
-1,5 6,2 9,8
_________ _________ _________
RESULTAT NET DU GROUPE 62,5 63,4 95,5
TABLEAU DES FLUX DE TRESORERIE (en M€) 31/12/2011 31/12/2010 31/12/2009
BENEFICE NET PART DU GROUPE 63,3 57,2 85,7
Elimination des charges et produits sans incidence sur la trésorerie
165,3 141,7 137,6
Plus ou moins values sur cessions d'actifs immobilisés -5,2 -0,6 -2,9
MARGE BRUTE D'AUTOFINANCEMENT 223,4 198,3 220,4
Variation des actifs et passifs d’exploitation hors acquis. et immob. -28,6 -7,5 -3,9
Variation Pension Fund U.K. -12,9 -7,6 -11,3
_______ _______ _______
FLUX DE TRESORERIE D’EXPLOITATION 181,9 183,2 205,3
Acquisitions - cessions d'immobilisations corporelles et financières -91,8 -80,0 -64,4 Acquisitions et cessions de sociétés nettes de la
trésorerie acquise
-288,5
-6,0
_______ _______ _______
FLUX DE TRESORERIE D’INVESTISSEMENT -380,4 -85,9 -64,4
Nouveaux emprunts - remboursement d'emprunts existants 198,2 -12,9 -9,2
Dividendes versés aux actionnaires de la société mère -10,7 -8,6 -6,7
Achat de titres en autocontrole / variation stock actions propres 0,1 0,8
Augmentation de capital 0,4
Charges financières nettes liées au opérations de financement -28,4 -22,6 -22,6
_______ _______ _______
FLUX DE TRESORERIE DE FINANCEMENT 159,6 -43,3 -38,4
Effets de change sur la trésorerie -0,1 0,7 1,7