Annual Report 2018-19

ANNUAL
REPORT
(MARCH 31, 2019)
2019, staying the course

Contents
02 — FM LOGISTIC / ANNUAL REPORT MARCH 31, 2019

2019, staying the course /
Company profile Key figures Highlights
04
Editorial by
/5 /6 /8 Jean-Claude Michel
/ 10
The board of directors The executive Review and outlooks by Transport by

/ 12 committee Jean-Christophe Machet Vittorio Battaglia
/ 14 / 16 / 20
France Spain and Italy

Country focus /
Romania and Ukraine Russia
22
Central Europe
/ 24 / 26 / 27 / 28 / 30
Brazil China India Vietnam

/ 32 / 33 / 34 / 35
Pursuing operational excellence /

Further progress in
36
An organisation open
operational excellence to innovation
/ 38 / 42
Focus on customer expectations /

Logistics: A strategic Greater speed A wider range A new co-packing
44 Eco-friendly
advantage and agility of services solution urban logistics
/ 45 / 45 / 47 / 48 / 48
Digital transformation
Pursuing our model /
Creating sustainable
50
FM Foundation:
supporting human effort ecosystems A first year full of activity
/ 52 / 54 / 56
Financial statements /
Consolidated Consolidated
58
Consolidated cash
balance sheet income statement flow statement
/ 60 / 61 / 62
FM LOGISTIC
BEHIND THE SCENES
OF OMNI-CHANNEL
DISTRIBUTION
— 2019, STAYING THE COURSE — FM LOGISTIC / ANNUAL REPORT MARCH 31, 2019 — 03
Company
profile

Staying the course
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.
CROSS DOCKING
THE CROSS-DOCKING FACILITY NEAR ŁÓDŹ
IS DESIGNED TO OPTIMISE DELIVERIES
OF FAST-MOVING CONSUMER GOODS
THROUGHOUT POLAND
Key figures
FY 2018-19
+12%
❚ Revenue (€m)
Change excluding currency impact: +15%
Currency impact: €37m reduction
KEY
FINANCIAL
DATA
1,178
1,318
2017-18 2018-19
❚ By major region
Brazil 2% 5% Asia
REVENUE
BREAKDOWN
Central Europe 22% 39% France
Eastern Europe 22%

10% Western Europe
HUMAN
RESOURCES ❚ Headcount ❚ Gender balance
(no. of average FTE during the year, (incl. temp. workers)
incl. temp. workers)
+2,300
24,900 27,200 59% 41%

2017-18 2018-19

+32%
❚ EBIT (€m)
Earnings before interest and tax
35.1
Currency impact: €1.7m reduction
26.5
2017-18 2018-19
❚ By sector ❚ By business line
Healthcare 3%
Transport 35%
Industry 20% 31% FMCG 55% W

arehousing
& handling
Perfume 28% Distribution Co-packing 10%

& beauty 18%
❚ Average age ❚ Headcount by region

CENTRAL
of employees EASTERN EUROPE 35%
EUROPE 19%
FRANCE 24%
WESTERN ASIA 2%
YEARS
BRAZIL 3% EUROPE 5%
INDIA 12%
Highlights
2018-19
EXPANSION OF CITYLOGIN
In 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.
Two new members

of the executive
committee
FM 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 creation

FM 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.

+ 1 2
revenue growth at current
exchange rates and 15%
excluding currency impact
% A BROAD CUSTOMER
PORTFOLIO
In 2018, FM Logistic started
numerous customer projects,
in particular in the fast moving
consumer goods (FMCG),
FM Logistic posted revenues of business lines (warehousing and distribution, cosmetics
€1,318 million in FY 2018-19, an handling, transport, co-packing) and luxury sectors. These
increase of 11.8% over the previous throughout all its geographical launches include Beiersdorf
FY (15% excluding currency impact). markets. It is also the result of the (France), Carrefour and
EBIT increased 32% to €35.1 million. company’s positioning in expan- Sephora (multiple countries),
The revenue growth is all organic ding markets (consumer goods, Leroy Merlin and Coty (Spain),
and is one of the strongest in the omni-channel logistics driven by Sanofi, Ipsen (Poland),
contract logistics sector. It reflects e-commerce) and the renewed Bonduelle (Russia), Dana
the development of all FM Logistic’s confidence of its customers. (Brazil) and Caterpillar (India).
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.
PEPS on the cloud

In 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.
Editorial
By 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

TOWARDS A MORE
SELECTIVE AND also testament to the company’s long term vision.
Innovation in all its forms — automation, digiti-
PROFITABLE GROWTH 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
AGAINST A BACKDROP OF teams in their daily work and enhance the quality
DOUBLE-DIGIT ORGANIC of service offered to customers.
GROWTH, PROOF OF THE TRUST
SHOWN BY OUR CLIENTS, WE IMPROVING RESULTS
At the same time, the implementation of the
PLAN TO FOCUS ON DEVELOPING Focus plan must go on. It’s vital that FM Logistic
HIGH VALUE-ADDED SEGMENTS. continue to improve its operating result, as good
financial performance today gives the company
the means of pursuing its ambitions in future, by
I
take a very positive view of FY 2018-19:
FM Logistic posted a strong EBIT, our primary area
“The providing the financial resources needed for in-
vestment.
of focus, whilst achieving exceptionally strong double-digit The economic environment is certainly more
growth and continuing to invest for the future.
I would like to congratulate the 27,200 employees organic uncertain, but FM Logistic appears well-equipped
to navigate this challenging period. Its identity as
who have contributed to this performance, which
is remarkable on a number of levels.
growth of a family-owned, independent company ensures
it has the stability and the reliability required for
First of all, FM Logistic improved its profitabi- the past long-term commitments; the synergies deve-
lity beyond our expectations. The Focus plan has
begun to achieve its aim, i.e. to develop premium
eighteen loped with NG Concept enable the company
to put together a highly competitive portfolio of
quality service going hand-in-hand with profitabi- months multi-customer platforms, particularly in France
lity. This plan is based on strengthening our fun-
damentals, meeting our quality standards, and
demonstrates and Russia. Its expertise in pooling, combined
with its range of solutions bringing together
conducting an essential dialogue with our cus- customer know-how in multiple domains (from warehou-
tomers on the fair price for our services, a price
that reflects the actual cost of their specific requi- confidence in sing to packaging and transport) and different
sectors (FMCG, distribution, cosmetics, luxury
rements and accounts for the increase in salary
costs observed in certain markets. All of this has
FM Logistic” and beauty products), fill me with confidence for
the future.
strengthened the core of our company. The double-digit organic growth of the past
eighteen months demonstrates customer confi-
FUTURE INVESTMENT dence in FM Logistic, and the company can now
It is by being strong in its fundamentals be more selective in the development of its port-
that FM Logistic will be able to seize the new folio. The priority for 2019 and 2020 is therefore
opportunities offered by the markets, such as to develop those market segments that offer
omni-channel logistics. greater value creation, while giving ourselves the
In this regard, the Group’s teams worked well means to achieve a genuine increase in profitabi-
in 2018 to prepare for the future without focu- lity for each business line: improving operational
sing solely on short-term profitability. Major in- procedures first of all, followed by engaging in
vestment was made in human resources —─ the dialogue with customers around pricing, but also
recruitment of talent, a greater emphasis on taking responsible decisions to disengage when
employee integration and training —─ as well as all other avenues have been explored. The pri-
in innovation, in particular the automation of ope- mary responsibility of a company is to ensure its
rations and urban logistics. The intensification of profitability, as this will guarantee its growth and
efforts in the area of sustainable development is sustainability.
The board of directors
CLAUDE FAURE
Co-founder of FM Logistic
GILLES FAURE
Family director
MARIE-LAURE FAURE
Family director

JEAN-CLAUDE MICHEL MONIQUE ZOMENO
Chairman Independent director
RÉGIS BELLO
OLIVIER FAURE Independent director
Family director
JEAN-CLAUDE MICHEL MONIQUE ZOMENO

Former CEO then Former Vice-President
chairman of the Execu- HR at Cephalon Europe.
tive Board of Norbert HR consultant for TEVA
Dentressangle group. group.
Founding director of
Management et Partici- RÉGIS BELLO
pation. Former Chairman
and CEO of De Dietrich.
VINCENT MERCIER Director or member of
Managing partner then the supervisory board of
VINCENT MERCIER vice-chairman of Roland NSC Group, Socomec,
Independent director Berger Strategy’s De Dietrich, Ponycom,
Supervisory Board. EM Strasbourg, Alsace
Member of the Board Innovation, Strasbourg
of Directors at Neopost university foundation.
and Adie.
The executive committee
BÉATRICE OGÉE DANIEL CIZ

Commercial Finance director
and marketing director
XAVIER PRÉVOST STÉPHANE JEAN-CHRISTOPHE MACHET

Business solutions and DESCARPENTRIES Chief executive officer
information systems director Director for Asia,
strategic projects and
mergers & acquisitions

CHRISTOPHE MÉNIVARD YANNICK BUISSON
Managing director for Russia Managing director for France
and Eastern Europe and Western Europe
CÉCILE CLOAREC VITTORIO BATTAGLIA

Human resources, Transport director and
communication & sustainable managing director for Italy
development director
Review and outlooks
By Jean-Christophe Machet
“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
EBIT growth of
32%

STAYING THE COURSE
OF PROFITABLE GROWTH
FM LOGISTIC’S CEO WHAT ARE THE FEATURES
JEAN-CHRISTOPHE MACHET OF THE FOCUS PLAN?
REVIEWS THE HIGHLIGHTS OF It is made up of four components, two of
FY 2018-19, THE FOCUS PLAN which relate to our internal operation. The first
of these is the pursuit of operational excellence,
AND THE TRANSFORMATION which is a means of guaranteeing our quality of
OF THE FAMILY BUSINESS service. Operational efficiency relies on both an
investment in automation and adherence to our
HAT IS YOUR VIEW OF THE FISCAL
W business fundamentals: FM Logistic created
2018-19 YEAR? 2,300 net direct jobs in FY 2018-19. Each new
It was a very good year in a number of ways. employee must be able to implement best prac-
First of all, we achieved record organic growth tices on a daily basis and to apply our expertise
and posted one of the strongest performances and good management practices. It is particu-
across the entire contract logistics sector. larly important that the logistics business evolves
FM Logistic revenues reached €1.32 billion, together with the digital transformation. In 2019
representing a 15% increase in volume, or 12% and 2020, we will accelerate our development by
including the impact of foreign exchange. This means of open innovation in particular.
progression reflects the renewed confidence of The second component involves the deve-
our clients and our capacity to gain market share. lopment of our human resources. In a services
Secondly, FM Logistic exceeded its profitabi- business such as ours, looking after the
lity targets. We posted an EBIT (earnings before workforce is essential. Investment in human
interest and tax) of €35.1 million, up 32% from resources is a means of supporting growth. We
€26.5 million last year, which is a solid result. are bolstering our staff recruitment and loyalty
I would like to thank each of our 27,200 strategies through schemes such as the young
employees for their hard work and the initial graduate programme, continuous training for all
“We must be results achieved. We are entrepreneurs

and we love profitable growth. It is the only
(FM University) and the digital transformation of
our HR procedures. These activities are related to
flawless from way of providing the means for our deve-
lopment, our transformation and the acce-
the managerial transformation under way within
FM Logistic and the development of collabora-
an operational leration of our investment in innovation. tive working methods, supported by tools such as
perspective We must be flawless from an operational

perspective and selective in a commer-
Workday or G Suite.

and selective in cial sense. These are two of the objectives

of our Focus plan, the implementation of
HAT ARE THE OTHER TWO
W
COMPONENTS?
a commercial which began to yield positive results in FY
2018-19. We will continue to roll out the
They relate to FM Logistic’s relationship with
its customers. First of all, the price we charge for
sense” plan this year. our services must reflect the quality of the work
Review and outlooks
By Jean-Christophe Machet
“An
innovative,
digital and
collabora-
delivered. Pricing must also reflect, where appli-
cable, the increase in salary costs related to the
tive com- This is not merely a question of providing last-mile
delivery, but of offering a specially-adapted logistics
shortage of labour, particularly in Central and pany, well infrastructure. We are responding to these challenges
Eastern Europe. The price renegotiations under-
taken with our customers in FY 2018-19 must
equipped by developing our Citylogin service. Citylogin is based
on logistics platforms located near urban centres
enable us to restore a better balance.
The final aspect of the Focus plan, as alluded
to respond and a fleet of around 500 light duty vehicles. This
service makes it possible to access city centres. This
to earlier, has to do with our commercial selec- to the needs also shows that urban logistics and sustainable logis-
tivity. It involves prioritising and allocating our
resources to the requests and calls for tenders
of our clients ” tics are very closely related. For FM Logistic, CSR is a
means of meeting a growing demand among clients
where our added value is greatest. At the same and providing us with a competitive advantage.
time, we want to draw upon the complementary All of this is in keeping with the comprehensive
nature of our business lines and better exploit solutions that we want to build for our customers:
data to build dedicated high-value offers for our innovative, effective and responsible solutions.
clients. FM Logistic’s transformation strategy is
progressing independently of the Focus plan. IN THIS PERIOD OF INCREASED
ECONOMIC UNCERTAINTY, WHAT
IS THE OUTLOOK FOR FM LOGISTIC
WHAT DOES THIS STRATEGY INVOLVE? IN 2019?
First, we focus on digital technologies and auto- FM Logistic gained market share in 2018,
mation. We are using an increasing number of agile demonstrating the relevance of our model. Our
and flexible cobots and automated guided vehicles, order book is strong. We operate in some of the
which facilitate more efficient management of peaks most dynamic sectors such as e-commerce and
in volume whilst freeing our teams from the tasks urban logistics. Our fundamentals are healthy. We
with low added value for humans. The men and are a family company. Our durability is based on
women working at FM Logistic must be supported the satisfaction of our clients, our independence,
by technology; that’s the basic premise of our the close relationship with our sister company
modernisation. NG Concept and a good balance between our
A second priority is to meet the demand for omni- different business lines, geographical locations
channel logistics driven by e-commerce, a segment and client sectors. We have chosen to focus on
that currently accounts for 15% of our activity. In order resilient and countercyclical client sectors, such
to provide our clients – and consumers – with the as consumer goods and retail. Furthermore,
necessary flexibility and reliability in terms of order FM Logistic strives to offer its clients a broader
preparation and distribution, we have equipped array of services addressing the different stages of
ourselves with the means of managing pallets as well their supply chain, through related services such
as individual products and packages under one roof. as long-distance international transportation and
Thirdly, we are developing our urban logistics border crossing operations.
activities, which are also driven by e-commerce.

15%
of revenues comes
from omnichannel
logistics
YOU HAVE REFERRED TO THE INTERNA-

TIONAL DIMENSION. HOW WOULD YOU
ASSESS YOUR GLOBAL PRESENCE?
“For FY 2019-20, we expect
In addition to our European base, we are a further improvement of EBIT
gradually strengthening our presence on selected
Asian markets such as Vietnam and India. We have on the back of slower revenue
operated in China since 2006. This is a long-term
choice. Asia boasts large and highly dynamic
growth due to increased
consumer centres. An ever-increasing number of commercial selectivity”
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 the transformation of FM Logistic towards an
Goods and Services Tax (GST). Our third multi-client even more innovative, digital and collaborative
warehouse will soon enter operation in India. We company. By doing so we will be better equipped
have chartered a course and we are staying on it. to respond to the needs of our clients and to public
expectations in the area of sustainable logistics.
WHAT DOES ‘STAYING THE COURSE’ Finally, staying the course means remaining
MEAN? faithful to our identity as a family business, focused
This year once more, staying the course prima- on people and proactive in the growth strategy we
rily means continuing the implementation of our have chosen.
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
Transport
By Vittorio Battaglia
ONGOING GROWTH
OF TRANSPORT
AGAINST A BACKDROP OF SUSTAINED
DEMAND, THE TRANSPORT BUSINESS
MANAGED TO WEATHER THE LACK OF
CAPACITY OBSERVED DURING PREVIOUS
YEARS.
FM
Logistic has made trans-
port a key component
of its development. The
“Revenues and EBIT
fiscal 2018-19 year saw increased in FY 2018-19
further development of this strategic business line.
Revenues from transport activities rose by 17% at
thanks to improved sales
constant FX to reach €477 million. The operating and service quality”
profit improved as well. This double progression
was driven by increased sales and service quality, VITTORIO BATTAGLIA
supported by a more selective commercial deve- TRANSPORT DIRECTOR
lopment and greater operational efficiency, in line AND MANAGING DIRECTOR
with the Focus plan. FOR ITALY
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- In Eastern Europe and particularly in Russia,
port organiser, FM Logistic enlisted the maximum FM Logistic’s transport business continued to grow
involvement of its subcontractors in this approach on both the domestic and international front, with the
in order to provide them with greater visibility and development of international supply chain activities
guarantee their support. and customs services.
In Vietnam, FM Logistic launched its transport
EXPANSION ACROSS ALL MARKETS business in 2018, winning its first customers. The
FM Logistic’s transport business has grown company implements a strict security policy so as to
consistently in all its geographical markets. ensure the safety of its people, resources and goods.
In Western Europe, it experienced particu- In India, where the Goods and Services Tax (GST)
larly strong growth in France, Italy and Spain, reform represents a genuine lever for development,
driven by the success of the Citylogin solution. FM Logistic signed a major transport contract with
FM Logistic won new transport contracts inclu- Caterpillar covering services across a large part of
ding Sephora in Italy and a number of large the country. In both India and Vietnam, FM Logistic
retailers in France. has bolstered its transport teams. FM Logistic
In Central Europe, FM Logistic is focusing on expects its transport activity to continue to grow
the development of international transport and in FY 2019-20. In digitisation and data exploitation
strengthening its local distribution network. The the Group sees an opportunity to improve capacity
company also recorded strong growth in the planning, reduce truck waiting times and ‘empty’
Balkans, which is set to continue in 2019. kilometres and win new customers.

NETWORK
FM LOGISTIC RELIES
ON A NETWORK OF
TRANSPORT PARTNERS
17%
increase in revenues
Citylogin
attracting new
India
new transport contract
in FY 2018-19 clients in Europe wins for FM Logistic
Country focus
In FY 2018-19, FM Logistic continued
to expand in France and overseas
in order to harness the potential
of new markets.

61%
of revenues is generated
outside France
UKRAINE
DUDARKIV LOGISTICS
PLATFORM NEAR KIEV
Country focus
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.
I
n FY 2018-19, FM Logistic
posted revenues in France of
€510 million, an increase of
MAIN LOCATIONS
14.7 %. This performance stems OF FM LOGISTIC
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
6,000
business benefited from excellent
warehouse occupancy rates. An
increasing number of customers
are entrusting FM Logistic with employees
co-packing tasks on top of storage. in France
Certifications and value-

added services
In order to meet the demand for
storage space, FM Logistic took
over, expanded or opened nume-
rous platforms, in particular in already awarded ISO 45001 certi-
L’Herbergement (western France) fication (health and safety at work)
and Escrennes (Centre-Val-de-Loire for all its French sites at the start of
region). These two ultra-modern “FM Logistic launched 2019, the first such award for a logis-
warehouses are each equipped with
1,500m2 of solar panels. FM Logistic or extended 19 customer tics provider. FM Logistic’s expertise
in the management of classified
also intends to obtain the ISO 50001
energy management certification by
projects in France in products, as guaranteed by its
status as an Approved Economic
the end of 2019. The company was 2018-19” 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- In the last fiscal year, FM Logistic to suppliers has also facilitated the
forms, is the result of close colla- also bolstered its offer in value- co-creation of ideas for improving the
boration with NG Concept and its added services, with the introduction company’s processes and services.
partnership with Ineris. of Lean Design & Copack, a compre- On the basis of contracts signed in 2018,
At the same time, the deployment of hensive solution that combines FM Logistic forecasts a high single-digit
AGVs (automated guided vehicles) packaging design, manufacturing revenue growth in France in FY 2019-20.
and cobots at FM Logistic’s 30 and co-packing. The launch of an
French sites is ongoing, as is ergos- online collaborative platform open
keleton testing. to customers, employees and soon
Country focus
Spain. Significant growth in activity.

FM Logistic took advantage of the national economic recovery.
FM
Logistic recorded distributors Maxxium and Leroy
a sharp growth Merlin, which joined the Cabanillas
in sales in Spain platform in June 2018.
in FY 2018-19 in An additional 10,000m2 will be
a buoyant economic climate. The added to the multi-customer Illescas
company posted reve- platform, the strategic
nues of €74 million, location of which is a
up by 43 % compared
“Vigorous sales major asset, in order
to the previous year. momentum to meet the growing
This performance is recorded in demand. FM Logistic
FY 2018-19”
43%
the result of service also bolstered its trans-
quality optimisation, port teams in Spain
the success of the new through the appoint-
increase in
revenues Illescas platform and the company’s ment of a new director dedicated
positive commercial momentum. to this business line in the second
FM Logistic signed contracts with half of 2018.
MAIN LOCATIONS
OF FM LOGISTIC
Italy. Positive performance.

Business growth despite a lacklustre market.
30,000 m 2
D
surface area for
espite a macroeconomic 20,000 m² will be extended by 10,000 m² the Vellezzo Bellini site
environment marked by a in 2019. FM Logistic’s transport business in in 2019
slowdown in growth, sluggish Italy continued to grow thanks to service
consumption and uncertainty quality optimisation and the start-up of
surrounding the government’s economic numerous contracts.
policy, FM Logistic managed to increase FM Logistic bolstered its management
revenues in Italy by 21%, to team in Italy with the appoint-
€58.4 million. “The ment of an operations director
This excellent performance management responsible for the inte-
was driven by the start-up of team has been grated management of all MAIN LOCATIONS
three contracts at three diffe- bolstered” the company’s platforms in OF FM LOGISTIC
rent logistics platforms, with the country. In the interest
Yves Rocher (e-commerce), Kärcher and of reinforcing its business fundamen-
Pernigotti, an Italian chocolate maker. tals, one of the pillars of the Focus plan,
At the end of 2018, the Vellezzo Bellini FM Logistic decided to bring in-house
site (near Milan) was added to sites in a number of handling activities that had
Pieve Emanuele, Capriata d’Orba, Santa previously been outsourced, with the aim
Palomba and Trofarello. The Vellezzo of improving the quality and reliability of
Bellini site with a surface area of the service provided to customers.

Romania. A new warehouse and DC.
Robust business, particularly in warehousing.
FM
MAIN LOCATIONS Logistic’s In FY 2019-20, FM Logistic will place
OF FM LOGISTIC revenues particular focus on the development
in Romania of its co-packing and transport activi-
increased by ties, which present significant growth
10% in FY 2018-19 to reach potential. Appointed
€29.1 million. As in the Managing Director
previous year, warehousing “A new CEO o f FM Logistic
was the fastest-growing Romania in August
activity. After €20 million
to drive 2018 and with fifteen
of investment and a year growth” years of experience
of work, the 20,000m² at FM Logistic in
€20
million
warehouse in Dragomirești-
Vale, near Bucharest, officially
opened in September 2018. Sanofi,
Pavlov is
Russia, Alexander
charged with accelera-
ting FM Logistic’s development in
were invested in Zentiva and L’Oréal are among the Romania, with a double-digit growth
the warehouse of customers managed on-site. target for FY 2019-20.
Dragomirești
Ukraine. The economic outlook is brightening.

Stepped up growth despite challenging recruiting requirements.
FY
2018-19 was a fulfil its recruitment needs to serve its
year of stabilisa- customers and increased its turnover
tion and transition by 48%. This performance was driven
for FM Logistic by improved operational efficiency
in Ukraine. The Ukrainian economy and human resources management,
continued its recovery with growth of as well as a sustained marketing
3.5% according to the effort. At the end of March
World Bank. Domestic 2019, the headcount
consumption, however, “More efficient numbered around 900.
continued to suffer and productive The teams made opera-
900
from high levels of teams” tional efficiency gains
migration to neighbou- after absorbing the high
ring countries, such as levels of growth in 2017
Poland, Germany and the Czech and 2018. In FY 2019- 20, FM Logistic employees in
MAIN LOCATIONS
Republic. Recruitment in Ukraine has aims to continue with its plan of Ukraine
OF FM LOGISTIC
proven difficult and salaries are rising targeted commercial growth with
as a result. Despite this challenging numerous new customer launches
environment, FM Logistic was able to scheduled.
Country focus
Russia. Strong performance driven

by innovation. Strengthened position in the e-commerce logistics market.
MAIN LOCATIONS
OF FM LOGISTIC
A
mid considerable
economic uncertainty,
FM Logistic posted
a sharp increase in
volume sales (revenues
reached €240 million) and consi-
derably improved its profit margins.
the door-to-door transportation of
products from 14 European countries,
“With a presence
With a presence in Russia since 1994, consolidates them at its hubs in France in Russia since
FM Logistic is reaping the rewards of
its longevity, its size (8,000 employees)
and Poland, and handles customs
clearance activities. FM Logistic also 1994, FM Logistic
and its dynamism. organises the international transporta-
tion and distribution in Russia, to stores
is reaping the
International transport : +30% in Moscow, of the products of a major rewards of its
Its fastest-growing activities were
transport and handling. The domestic
French luxury brand.
FM Logistic is renowned in Russia longevity”
transport business grew by around for its storage activities, supported
17% in FY 2018-19. International trans- by a vast network of warehouses
port increased by 30%, a business (over 800,000m 2). The technolo-
line for which turnover has multiplied gical centrepiece of this system
tenfold in four years. For its customer is the XXL platform in Chekhov
L’Étoile, a major Russian cosmetics and (110,000m2), south of Moscow, which
perfume brand, FM Logistic organises serves over 20 retail and industrial

customers under a single roof. It faci- A global e-commerce Alongside its largest customers,
litates the consolidation and distri- solution FM Logistic also targets a client base
bution of customers’ products to In FY 2018-19, FM Logistic streng- of smaller companies, to which it offers
shops in Moscow. Pooling resources thened its position on the Russian EEE logistics services (easy to start,
in this way generates guaranteed e-commerce logistics market. Notable easy to use, easy to exit).
economic and environmental bene- customers in this field include Auchan, In order to better absorb changes in
fits. In the southern city of Rostov- Leroy Merlin, Clarins, Rive Gauche and volumes, FM Logistic has also conti-
on-Don, FM Logistic is set to open Etam, soon to be joined by Pierre Fabre. nued the automation of its warehouses
a 35,000m2 platform in mid-2019, The Group is developing a compre- in the Moscow region. The Group
built by NG Concept. The expansion hensive e-commerce logistics solution recently launched an e-commerce
of the Elektrougli site (in Noginsk, comprising storage, order preparation, logistics solution for a major inter-
east of Moscow) will be completed shipping, collection, returns hand- national cosmetics brand, based on
in September. FM Logistic is also ling and customer service. A future the use of specially-designed order
planning to launch new operations in stage may involve the creation, with picking trolleys and the introduction
Novossibirsk, Siberia, in late 2019. the support of a partner, of commer- of automation.
cial websites for western European
brands seeking expansion into Russia.
800,000 m of warehouses
2
in Russia
THE TEAM
FM LOGISTIC HAS AROUND
8,000 EMPLOYEES IN RUSSIA
Country focus
CAPACITY
FM LOGISTIC HAS
AROUND 40 LOGISTICS
PLATFORMS AND HUBS
IN CENTRAL EUROPE
Poland, Czech Republic, Slovakia, Hungary.
Central Europe. A favourable economic envi
FM
Logistic posted Another cross-docking site attached Greater synergies
revenues of to an existing high-capacity ware- The creation of regional headquarters
€297 million in house is due to open its doors in 2019 near Warsaw in 2017 is yielding posi-
Central Europe in Będzin, in the Silesian Highlands in tive results: the new Central Europe
in FY 2018-19, up 16 %, supported by the south of Poland. This 34,000m² structure is supporting the exchange
a favourable economic environment. complex will also offer co-packing of information and experiences
Revenue growth was particularly and co-manufacturing services in between national entities. It facilitates
strong in the Czech Republic (23 %) response to growing demand. the coordination and harmonisation of
and in groupage activities. FM Logistic Since summer 2018, FM Logistic has transport and warehousing services
signed new contracts with Chipita, operated an additional 7,400m² dedi- between countries and support
Ipsen Pharma and Sanofi-Zentiva cated to logistics services for pharma- functions such as recruitment, invoi-
and was entrusted with a broader ceutical and cosmetics products at its cing and maintenance. International
range of services by Mars (Wrigley) Błonie facility. The largest platform customers welcome this simplification.
and Jeronimo Martins. opened in Central Europe in 2018 FM Logistic is also better equipped to
is located in Lovosice, in the Czech lever its employer brand strength. This
Platform expansions Republic. Dedicated to e-commerce, is a critical issue given that meeting
With around 40 warehouses and it spans a surface area of 20,000m², labour requirements remains a difficult
transport hubs in Central Europe, which could quickly be expanded. task in Central Europe as the region
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 “FM Logistic continued to increase
distribution hub for all groupage
customers, including major consumer
its warehousing and distribution
goods brands. capacity in the region”

“FM Logistic
MAIN LOCATIONS
was again a
OF FM LOGISTIC
prize-winner
at the Logistics
Operator of the
Year awards
in Poland”
ronment.
is experiencing almost full employ-

ment. In order to offset the resulting
20,000
additional m2 of warehousing
salary increases, the Group has started space for e-commerce
in the Czech Republic
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 EMPLOYER BRAND
IN A TIGHT JOB MARKET,
and security. FM LOGISTIC’S EMPLOYER
BRAND IS A REAL STRENGTH
Renowned expertise
In 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.
Country focus
CONTRACT WINS
FM LOGISTIC WON A NEW
CONTRAT WITH OEM DANA
Brazil. A recovering economy.

Focus on operational and financial efficiency.
B
razil is gradually recove- MAIN LOCATIONS
OF FM LOGISTIC
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-
1.4%GDP growth
tions and a prolonged strike by truck in 2018
drivers.
In this volatile environment,

FM Logistic focused in FY 2018-19
on its warehousing, handling and
packaging business lines and put A significant development at the end
its transport activity on hold. With of FY 2018-19 was the appointment
a presence in Brazil since 2013, of a new managing director, Ronaldo
FM Logistic operates five logis- Fernandes da Silva. A Brazilian
tics platforms and employs about national, he brings over twenty years’
840 staff. It counts some major experience in domestic and interna-
names in the distribution, cosme- tional transport and logistics.
tics and industrial sectors among His role will be to continue and
its customers. Last year, for instance,
FM Logistic won a new contract with
consolidate FM Logistic’s commer-
cial growth in Brazil whilst improving
“A new managing director
the automotive supplier Dana. its operational efficiency. to consolidate sales growth”

China. New contracts.
Sales performance and network expansion.
C
MAIN LOCATIONS
hinese GDP growth OF FM LOGISTIC
was 6.6% in 2018. With
17
a population of about
1.4 billion people and a
growing middle class
of 400 million citizens, China repre- BHG stores supplied
by the Beijing
sents a huge market. warehouse
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 An expanding network
BHG, delivering to 17 of its stores A new site will open its doors in
in Northern China, and US group Chengdu in eastern China in 2019.
Johnson & Johnson with delivery to From a commercial perspective,
five provinces, also in the north of the FM Logistic is seeking to optimise
country. occupancy at the Taicang site, near
FM Logistic was awarded a contract Shanghai, following the decision of
from its long-time customer one customer to internalise its logis-
Carrefour for the operation, from tics operations, and to develop its
March 2019, of a 3,400m² dual-tem- existing sites in Tianjin and Wuhan.
perature warehouse in Shanghai, at With regard to transport, which
which FM Logistic provides logistics accounts for two-thirds of its reve-
and distribution services for fresh nues in China, FM Logistic is pursuing “FM Logistic now
produce (fruit and vegetables) to 50
stores. The Group is now present in
a dual objective: increase its customer
base to optimise its network in the
operates in the Chinese
the Chinese fresh produce logistics
market.
north and east, and develop its acti-
vities in the south, centre and west of
cold chain logistics
the country (particularly in Chengdu). market”
Clean transport testing
FM 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.
POPULATION
CHINA’S MIDDLE CLASS
NUMBERS AROUND 400 MILLION
Country focus
TRADE
THE INDIAN VAT REFORMS
ARE EXPECTED TO PROMOTE
DOMESTIC TRADE
$150million investment
plan over 5 years
India. New
platforms in a
promising market.
FM Logistic has won new contracts.
FM
Logistic’s reve-
nues in India
grew by 23.4%
in FY 2018-19. important development was the
This result was driven by the good launch of an 80,000m 2 omni-
performance of the Indian economy, channel site for a major European
the expansion of the Group’s offer distributor, designed for delivery to
and several contract wins. Transport stores and consumers.
now accounts for a growing portion
MAIN LOCATIONS
of revenues. OF FM LOGISTIC
Digital tools supporting
FM Logistic signed a contract with ambition
Caterpillar for the transportation of In order to satisfy increasingly
components from 2,000 suppliers demanding customers in terms
to three factories using a control Three new multi-client of quality, security and infor-
tower. FM Logistic also gained a platforms mation, FM Logistic has conti-
contract from stationery manufac- The company’s growth is also based nued to roll-out new Warehouse
turer BIC Cello for the management on the development of multi-client Management Systems (WMS)
of in-plant warehousing operations warehouses and distribution centres and Transport Management
at its factory in Vapi, in the State of located near major Indian cities. Systems (TMS). The company is
Gujarat. The first of these sites opened in also focused on the growth oppor-
Bhiwandi, near Mumbai, for three tunities created by the tax reform
“FM Logistic customers: Welspun (textiles),

Wipro (cosmetics) and Reliance
(GST) to continue its development
in India and to establish itself as the
has continued to roll-out (retail). The second opened in Delhi.
A third, in Bangalore, is scheduled
reference partner in the consumer
products, distribution, automotive
new WMS and TMS” to begin operation in 2020. Another and industrial sectors.

Vietnam. The construction
of additional capacity is underway.
Besides winning new clients, FM Logistic also began
construction work on a new multi-client platform near Hanoi.
FM
Logistic’s se- Group aims to offer its customers
2,000
cond year of a modern and scalable site that
operation in will support their growth within a
Vietnam was highly dynamic Vietnamese mar-
marked by new customer wins: ketplace (growth of 7% in 2018). delivery points are served
from the Hanoi warehouse
Brenntag, for warehousing services Through pooled resources and throughout the country
near Hanoi, and Beko, for which shared spaces, the new facility will
FM Logistic now distributes products offer greater efficiency and flexibility.
to 2,000 delivery points throughout This will be the first warehouse of
the country. During the fiscal year its type in the region. In spring 2019,
work also began on the construc- FM Logistic also commenced MAIN LOCATIONS
OF FM LOGISTIC
tion of a 52,000m 2 multi-client operation of a 6,500m2 site near
warehouse close to Hanoi. The Ho Chi Minh City.
“Through pooled resources and shared spaces,

the new Hanoi facility will offer greater efficiency and flexibility”
NEW WAREHOUSES
FM LOGISTIC IS ESTABLISHED
IN VIETNAM SINCE 2017
Pursuing operational
excellence
FM Logistic is engaged in a continuous
improvement drive spanning its
storage, handling, transport and
co-packing operations.

15 minutes
is 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
excellence
FURTHER PROGRESS IN
OPERATIONAL EXCELLENCE
FOR FM LOGISTIC, COMPETITIVENESS
AND OPERATIONAL EXCELLENCE ARE
DRIVEN BY TECHNOLOGICAL ADVANCES.
FURTHER PROGRESS IN THIS DIRECTION
WAS MADE IN FY2018-19.
A
chieving 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- INCREASING AUTOMATION
ness are a means of maintaining and increasing OF HANDLING EQUIPMENT
employment. Getting a return on investment (ROI) From France to Russia, FM Logistic increa-
often requires a period of around six to eight years The continuous singly uses automated guided vehicles (AGV) at its
for complex installations. optimisation of warehouses. Inaugurated in 2018, the Savigny-sur-
FM Logistic implements automation solutions FM Logistic’s Clairis logistics platform operated by the Group on
dedicated to specific customers in the context of storage, handling, behalf of Carrefour boasts five automated guided
transport and co-packing
its long-term contracts. Solutions are designed operations covers diffe- handling vehicles manufactured by the company
jointly and structured to meet the specific needs of rent aspects: reasonable Balyo. These automated vehicles operate in
the customer, providing it with maximum efficiency automation of processes, conjunction with the pallet wrapping unit. Once
digitisation, organisatio-
at the best price. Investments are shared or depre- nal transformation. the pallets have been wrapped, the handling
ciated over the term of the contract. This approach vehicles transport them 460 metres to the loading
is commonly used in the automation of picking bays ready for dispatch. The system is capable of
operations, which requires major investments. processing up to 30 pallets per hour. The return
At the same time, FM Logistic is working on on investment is expected within three years. The
introducing shared equipment that can be reconfi- area in which the automated vehicles operate is
gured and reused for multiple customer accounts, defined in advance. They have a field of vision which
such as automated guided vehicles, inventory enables them to determine their exact position. Any
drones and cobots (collaborative robots). potential obstacles are detected using a radar.

AGV
SAVIGNY-SUR-CLAIRIS
AGVS CARRYING PALLETS
TO THE LOADING BAYS
INVENTORY DRONES
FM 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
30
pallets per hour
can be transported
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
by automated guided reasons that FM Logistic tested and then adopted
vehicles (AGV) 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.
“Cobots guarantee consistent
quality and allow for faster delivery PERSONAL TRANSPORTERS
IN NEUVILLE-AUX-BOIS
at peak times” FM 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
USE OF COBOTS IN PALLETISATION start-up Hublex to design a logistics gyropod. With
FM Logistic increasingly uses cobots to perform a surface area of 85,000 m², the Neuville-aux-Bois
repetitive tasks such as palletisation. This leads to warehouse was the ideal place to test this tool over
productivity gains by relieving teams of the most several months. The on-site managers, adminis-
tiring tasks. Cobots also guarantee consistent trative staff and support staff were the first users.
quality and allow for faster delivery at peak The gyropod travels up to 9 km/hour and can be
times. They have proven to be a valuable tool for used 24 hours a day thanks to its removable char-
co-packing and special packaging preparation geable battery system. A trip around the platform
tasks supporting customers’ publicity campaigns can be completed safely in less than 15 minutes, as
or special offers. opposed to 30 minutes on foot.
excellence
ERGOSKELETONS TO REDUCE MSD RISK

In 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
TRANSFORMATION
Besides automation, digital transformation repre-
sents a second lever for driving operational efficiency.
Towards hybrid
Cloud, simplification, standardisation, industrialisa-
platforms
tion and security were the buzzwords for FM Logistic FM Logistic is developing
in FY 2018-19 with regard to information systems. hybrid logistics platforms
The first action point was migrating new appli- for BtoB and BtoC omni-
channel distribution and
cations to the cloud. FM Logistic transferred its
e-commerce.
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 ).
COBOTS
EW WAREHOUSE
N COLLABORATIVE ROBOTS INTERACT
MANAGEMENT SOFTWARE WITH FM LOGISTIC EMPLOYEES
Another action point involved

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

“Several digital solutions follow
on from the final roll-out of
the G Suite in April 2018”
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
56
the physical environment (products inflows into the
warehouse, storage in a specific location, handling,
outflows from the warehouse) and then interpreting
projects were managed
the information.
using Reflex as Oxygène and One of the first practical applications of this tech-
of February 2019 Opale NG, to stan- nology by FM Logistic involves analysing the data
d a rd c o m m e rc i a l to optimise the loading of its own trucks, pooling
solutions. A WMS is a available capacities and reducing empty kilometres.
software programme Another application involves improving the quality of
that enables companies the data generated in the information systems with
such as FM Logistic and their a computer-aided delivery address correction tool.
customers to have full visibi-
lity over stock inventories, track MORE ONLINE TRAINING
products, manage warehouse flows Digitisation also means supporting company
and maximize available surface area employees to master the new digital tools and to
as a result. Selecting good warehouse make best use of them. FM Logistic has launched
management software gives a company an e-learning programme, which includes training
the means to increase productivity, reduce to help its teams to get the most out of G Suite.
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
excellence
AN ORGANISATION
OPEN TO INNOVATION
DIGITAL TRANSFORMATION
IS NOT ONLY TECHNOLOGICAL,
IT ALSO TOUCHES TO HABITS AND
METHODS OF MANAGEMENT.
F
rom 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
DRONES second place was a project from Poland that halves
INVENTORY DRONES
WERE INTRODUCED
co-packing line change over time by means of the
AT FM LOGISTIC IN 2017 SMED (single minute exchange of dies) method.
Digital trans- OPEN INNOVATION

formation implies In the same spirit of collaborative work, in
changes in managerial
practice with greater FY 2018-19 FM Logistic continued to harness open
emphasis on collabo- innovation, based on cooperation with start-ups and
ration and entrepre-
neurship. FM Logistic
research institutions. In addition to the partnerships
wants its employees mentioned above with such companies as Hublex,
to be involved in this Noonee and Hardis Group, FM Logistic organised
development.
a new edition of its Faster Mind Challenge. 684

STRATEGY
OPEN INNOVATION IS A PILLAR
OF THE INNOVATION STRATEGY
OF FM LOGISTIC
“The Group acquired dynamic

simulation capabilities for its
warehouse flows”
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
7
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
countries took part
school. in the company’s continuous
improvement competition
A NETWORK OF INNOVATION EXPERTS in 2018.
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, operations while the other is dedicated to mana-
methods and process, and continuous improvement ging medium-term innovation projects.
teams. This across-the-board organisation is super- The IT teams have been strengthened by the
vised by Xavier Prévost in his role as Group business recruitment of new team members. FM Logistic
solutions and information systems director, and has decided to integrate certain technologies. For
member of the executive committee. An expert in example, the Group has acquired the necessary
operational efficiency, Xavier Prévost also brings his internal competencies to create – using 3D prin-
knowledge of the retail and e-commerce industries ting – and configure the robotic arm grippers used
through his past international experience at Auchan. on its platforms. This enables the company to be
more reactive and autonomous when adapting the
EXPANDED IT SYSTEMS DEPARTMENT solution to new uses.
The IT management team plays a pivotal role in In 2018, the Group also acquired dynamic simu-
innovation by coordinating all the activities involved lation capabilities for its warehouse flows. A new
in the digital transformation, the migration of appli- central team specialised in the purchase of auto-
cations to the cloud and big data. The IT depart- mated systems is responsible for assessing the
ment is managed so as to meet two objectives: systems available on the market and the practical
one part of its teams provides daily support to feasibility of implementing them on-site.
MADRID
LOGISTICS IS KEY
TO CUSTOMER SATISFACTION

Focus on
customer
expectations
The management of the supply chain must adapt
to new consumption expectations. In the face of
8
omni-channel marketing, logistics must meet the classic
requirements of price and reliability and also satisfy the
French towns
growing demand for speed, responsiveness and custo-
benefit from the
Citylogin service
misation, whilst being mindful of the challenges posed by
sustainable development.
Logistics: Omni-channel Greater speed

A strategic e-commerce and agility
advantage solutions FM Logistic has the means
For many years invisible to Almost one fifth of to manage the peaks in
the general public, logistics FM Logistic’s revenues is volume that mark the rhythm
has become a commercial generated by omni-channel of e-commerce (end of year
matter for many companies, e-commerce logistics. The celebrations, Black Friday,
in particular e-commerce Group offers a range of sales, etc.).
merchants. When making integrated services, including Efficient human resources
purchasing decisions, online last-mile delivery, order management is the first lever
shoppers now consider condi- preparation and support for for action. FM Logistic has
tions relating to the delivery e-commerce merchants in the carried out a sustained recruit-
and return of their orders. design and management of ment drive over recent years.
They want to take delivery on their commercial sites, such as The pooling of its warehouses,
time, at home, at a store or in Italy. i.e. the presence of multiple
at a collection point. As such, clients from different sectors
efficient logistics helps breed at a single site, facilitates
customer loyalty. Conversely, the dynamic management
any delays or logistical errors of its teams, which may be
may damage the reputation of restructured depending on
the retailer or manufacturer. the needs of the different
customer projects served by
the platform.
A new CRM tool
Developing 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.

Focus on customer
expectations
Support from software, Image Claim Mana- A wider range of services

technology ger, that records the different
stages of preparation and syncs FM Logistic offers a broad range of
The automation of a number this information with the WMS industry expertise and skills. An increa-
of warehouse procedures (warehouse management sing number of customers that use
supports the teams. It enables software). In France and Poland, the company’s storage and handling
greater productivity in order the use of robotic arms helps services are now also entrusting it with
preparation and co-packing. speed up co-packing opera- co-packing activities and the organisa-
New technologies facilitate tions. tion of a part of their transport flows.
work, saving valuable time and Finally, for a number of its major FM Logistic has enhanced its offering
boosting reliability. The Go-to- customers in the cosmetics in complementary activities such
Light shelving lighting system sector in particular, FM Logistic as co-manufacturing. This involves
(developed by Pickeos) and has installed satellite platforms delayed customisation, assembling
the Pick-by-Picture innovation dedicated to order preparation semi-finished products and customi-
(tablets displaying pictures of for leading product lines with sing packaging (preparing batches
products to be picked from the high sales volumes. Located in- or boxes) for the creation of ready-
shelves) are two examples of side the ‘master platforms’, they for-sale items. FM Logistic carries
the tools used by FM Logistic to receive the products directly out these operations as close to
help their operators quickly pick from the customers’ factories in customers’ factories as possible (wall
the correct items. The Group order to save on unloading and to wall solution), thereby helping to
also uses flow management reloading time. reduce logistics flows, stocks
and time-to-market.
.
2019
will see the deployment
of a new CRM system
at FM Logistic
URBAN LOGISTICS
FM LOGISTIC IS EXPLORING
MULTIPLE OPTIONS TO FACILITATE
CITY CENTRE DELIVERIES
Focus on customer
expectations
A comprehensive of contact throughout the Eco-friendly urban

new co-packing process. This solution helps logistics
to reduce time-to-market and
solution FM Logistic continued to
optimise costs through the
In November 2018, FM Logistic design of packaging suitable develop its urban logistics
was awarded a prize for for mechanised production activities in 2018. The
innovation at the All4pack lines. FM Logistic’s co-packing company increased its fleet
2018 trade exhibition for its operations rely on a network of Citylogin vehicles after
new Lean Design & Copack of 35 sites in Europe served by signing new contracts with a
service. This comprehensive 3,500 dedicated employees. number of major players in
co-packing solution comprises The Group is able to offer a e-commerce. More than 500
upstream consulting, packa- wide range of packing styles zero-or low-emission vehicles
ging concept and design by a (blistering, overpack, X-folded now support this city centre
creative team, manufacture, cellophane, sleeving, display, delivery service available in
and execution of all warehouse box) enabling brands to diffe- places including Rome, Paris,
co-packing operations. The rentiate and customise their Madrid, Moscow, Warsaw and
customer has a single point products. Milan.
500
vehicles
generating reduced
or zero emissions
make up the
Citylogin fleet

CO-PACKING
FM LOGISTIC’S CO-PACKING SOLUTIONS RELY
ON A NETWORK OF 35 FACILITIES IN EUROPE
AND 3,500 COMMITTED EMPLOYEES
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.
Pursuing our model
Against a backdrop of strong organic
growth and transformation, FM Logistic
reaffirms its social and environmental
model geared to sustainable
development.

20%
of revenues will be generated
by sustainable solutions
in 2022
ITALY
TWO FM LOGISTIC EMPLOYEES
AT CAPRIATA D’ORBA, ITALY
Pursuing
our model
DIGITAL
TRANSFORMATION
SUPPORTING
I
nvesting in human resources is one of the pillars Corporate culture at
HUMAN EFFORT of the Focus plan. Economic performance and
social performance go hand in hand. That’s why
FM Logistic is based
on three core values:
FM Logistic makes employee integration, well-
UPSKILLING AND FOSTERING being and skills development the cornerstone of TRUST
Each employee deserves
COLLABORATIVE WORK PATTERNS its strategy. Carrying on from the previous year, the respect, consideration and
ARE CORE FEATURES OF THE human resources (HR) teams have had to face up to benevolence.
a triple challenge: fulfilling major recruitment needs, Trust encourages each person
HUMAN RESOURCES POLICY. to give their very best.
contributing to the enhancement of operational Trust is shown as a matter of
excellence and continuing the digital transforma- principle and grows with time.
tion of HR procedures.
PERFORMANCE
Backed by a global workforce of around 27,200 The company’s goals are
FTE employees in 2018-19, FM Logistic created geared towards achieving
long-term client satisfaction
2,300 net jobs during the financial year ended. The
and ambitious results.
9% growth in the company’s global workforce was This performance is achieved
outpaced by its revenue growth (12%), a reflection through daily commitment to
quality, safety and continuous
of both the enhanced skills of employees recruited improvement.
last year as well as the improvement in operational
procedures, resulting in productivity gains. OPENNESS
The company must constantly
rethink itself and innovate in
NEW DIGITAL HR SUITE order to offer clients optimal
FM Logistic has continued the digital transfor- solutions.
mation of its HR and internal communication tools. Openness means challenging
the status quo and listening
The roll-out of G Suite in spring 2018, the creation to what stakeholders have
of the new Hello Intranet and the December 2018 to say.
Openness promotes “win-
launch of the Workday collaborative tool as part of win” relationships in a spirit of
the PEPS programme are three examples of this. partnership.

FM UNIVERSITY
JEAN-CHRISTOPHE MACHET
WITH THE SECOND YEAR OF PARTICIPANTS
ADMITTED TO THE YOUNG GRADUATE
PROGRAMME
PEPS (People Empowerment Solutions) is the culmi-

nation of two years’ work. The purpose of this digital “Satisfy This desire to improve skills within the teams and
develop a collaborative model is fully in line with the
HR suite is to facilitate and streamline HR proce-
dures for employees and managers alike. Available
recruitment Focus plan. Harmonising ways of being and acting
across business lines and geographical borders
in all countries except India, the tool enables each needs while is also the purpose for FM Way, the behavioural
employee to access their personal data and navigate
organisational charts in real time. For their part, mana- strengthening competency model created by the company to
support its growth and to transmit and bring to life
gers will soon benefit from additional functionality in
order to guide them to assign the relevant operators
operational a distinctive work culture.
to a given task and establish the optimal allocation efficiency”

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 MODEL

Against 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
FOCUS ON:
department and the operations managers have — The first Young Graduate Programme, launched in 2017, completed its
created a set of training resources aimed at reinfor- two-year cycle and gave way to a second group of young graduates. Another
cing key competences irrespective of hierarchical programme, called Future Managers of Business Unit, caters to more expe-
rienced employees. It continues to be a success and enables its participants
level. This overhaul of business fundamentals
to undertake operational duties in various countries as part of their training
(methods, tools, management styles) will be rolled in order to prepare them for taking on P&L responsibility in warehousing,
out throughout 2019. transportation and co-packing and to combine this expertise.
Pursuing
our model
CREATING SUSTAINABLE
ECOSYSTEMS
FOSTERING STAFF WELFARE, IMPROVING
THE CARBON FOOTPRINT AND OFFERING
RESPONSIBLE SERVICES ARE CORE FEATURES
OF FM LOGISTIC’S SUSTAINABLE DEVELOPMENT
PROGRAMME.
I
n 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 FOCUS ON: Value-sharing and innovation
promotion of 10 voluntary principles for sustainable Richard Quesne, Logistics Director Europe
development. and Middle-East at Sephora (LVMH group)
— “We want to be pioneers in sustainable development and we expect our
LOOKING AFTER EMPLOYEES: partners to share our high standards and innovative spirit. That’s why we en-
SAFETY FIRST 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
In 2018, FM Logistic stepped up its focus on health increasingly focusing on our packaging, an area in which FM Logistic is a real
and safety at work by strengthening the fundamental source of inspiration. For example, at the Escrennes platform, which we joined
aspects of its security policy. The ISO 45001 certifi- in early 2019, we’re working together on a type of packaging that optimises our
cation awarded to all its French sites in early 2019 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
is testament to this new approach. FM Logistic has as we can only improve that which we can measure, we’re interested in our sup-
invested in ergonomics through the development pliers’ ratings. This is an area we monitor with the support of the agency TK’Blue.”
54 — FM LOGISTIC / RAPPORT ANNUEL 31 MARS 2019

ERGOSKELETON
FM LOGISTIC HAS DESIGNED AND DEVELOPED
A NEW TYPE OF ERGOSKELETON TOGETHER
WITH THE COMPIEGNE UNIVERSITY OF TECHNOLOGY
the use of renewables. In France, FM Logistic will fit
30
French facilities are
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.
FM Logistic
2022 goals:
ISO 45001 certified
— 80% of employees
(health and safety SUSTAINABLE OFFER
A satisfied with their em-
at work) THROUGHOUT THE VALUE CHAIN ployer;
FM Logistic has continued to develop its — 12% reduction in ener-
gy consumption and 20%
Citylogin urban logistics solution. Designed to reduction of its warehou-
facilitate deliveries in even the most crowded city sing carbon footprint
centres, such as in Madrid, Rome, Prague, Moscow compared to 2018;
or Paris, Citylogin is based on pooling customer — over 70% of its trans-
port flows using Euro 5
“FM Logistic has set flows and combines the use of environmentally-
friendly light-duty vehicles and local distribution
trucks as a minimum,
including clean energy;
itself the target to make centres. This market positioning is attracting an — all of its customers
equipped with a sus-
its warehouse and increasing number of customers, as evidenced by
the 20 new natural gas powered vans acquired to
tainable development
dashboard;
co-packing activities meet demand in Spain. With a view to supporting — 20% of revenues
generated by sustainable
carbon neutral by 2030“ its customers in the management of their supply
chains, FM Logistic is due to publish its first sustai-
products and services.
nable development impact report this year for

FY 2018-19.
of a specific model of ergoskeleton dedicated to RECOGNISED COMMITMENT

its activities in France. In Russia, the Group imple- In January 2019, the ratings agency CDP
mented concrete measures designed to improve (Carbon Disclosure Project) awarded FM Logistic
working conditions following a survey of employees a B- rating, ranking it among the top 13% of compa-
at multiple platforms. nies in terms of performance in the fight against
climate change. In November 2018, FM Logistic
I MPROVING ITS received a gold medal at Nuit de la RSE, a presti-
ENVIRONMENTAL FOOTPRINT gious French corporate social responsibility event,
FM Logistic has set itself an ambitious target: to in recognition of its “overall CSR programme”.
make its warehouse and co-packing activities carbon FM Logistic was also involved in the creation and
neutral by 2030. FM Logistic is drawing on its close testing of the Référentiel RSE en logistique (CSR
relationship with NG Concept to take the right action guidelines for logistics) published in September
from the platform design stage. The other initiatives 2018 by the ministry for the ecological and inclusive
introduced include energy efficiency measures and transition of France.
— 2019, TENIR LE CAP — FM LOGISTIC / RAPPORT ANNUEL 31 MARS 2019 — 55

Pursuing
our model
FM FOUNDATION:
A FIRST YEAR FULL
OF ACTIVITY Since 2017
FM Foundation
THE FM FOUNDATION, SET UP TO SERVE boasts:
CHILD WELFARE AND PROFESSIONAL
INTEGRATION, CELEBRATED ITS FIRST
BIRTHDAY IN 2018. A YEAR LADEN WITH 329 173
employees
PROJECTS AND ACHIEVEMENTS. beneficiaries
involved
€113,437
T
he first event worth highlighting is the cele-
bration of its first 12 months of existence. invested
896
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
days of skills
INSERTION
its network. The event was held on 21 September 2018 sponsorship FM FOUNDATION SUPPORTS
YOUNG PEOPLE AGED 14-18
at the offices of the Apprentis d’Auteuil foundation. The IN RUSSIA
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 INTEGRATION Bridging the gap with the professional world
Alongside the Apprentis d’Auteuil foundation, “The logistics sector has jobs to offer and everyone is
FM Foundation’s French teams have developed a
given a chance. Despite this, in many countries the unem-
logistics qualification programme aimed at disadvan-
ployment rate remains high in the under-25 age bracket.
taged young people. Lasting one year, it comprises a
FM Foundation seeks to bridge the gap between these
theoretical component delivered by Adecco training,
young people, particularly those from underprivileged
followed by on-site practical training at FM Logistic’s
sites provided by company employees acting as
backgrounds, and the professional world. This goal is
mentors. Through their involvement in this programme,
achieved through training and mentoring. FM Logistic
the mentors hope to support recipients in their integra- employees are the players on the field. And the playing
tion into the labour market by providing experience and field is primarily the workplace, near to our locations.
knowledge of an industry with positive prospects. Eight The foundation also supports orphan children to give
young graduates from the first class have been hired by them a better start in life. In France, China, Poland, Russia
FM Logistic France on a permanent contract. and Brazil, several hundred under 25-year olds received
In Poland, ninety 18-year-olds from orphanages support and guidance from FM Foundation in 2018.
and foster homes have benefited from the partnership I sincerely thank all FM Logistic employees as well as
between FM Logistic and the Independent Robinsons our partners, charities and NGOs for their hard work and
foundation. The volunteers working at this foundation commitment. FM Foundation has already implemented
have developed a scheme to facilitate access to the initiatives in six countries. The foundation is looking
logistics industry and to provide guidance on economic to multiply its initiatives in 2019.”
and social empowerment. The programme has been Jean-Christophe Machet, CEO of FM Logistic.

“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 general skills acquisition programme. Twenty-nine
people. Each beneficiary receives the support of an youths from orphanages and foster homes received 23
FM Logistic mentor. Thirty-five FM Logistic employees days of training led by the Speed Foundation. FM Logistic
have so far signed up to support this initiative. employees then ran a three-day workshop at which
they shared their industry experience in fields including
ACCESS TO VOCATIONAL TRAINING warehouse management, purchasing or QSE (Quality
In Brazil, the FM Logistic teams at the Anhanguera Safety Environment).
site, near São Paulo, together with the Lochpe founda- A scheme promoting access to the industry in
tion have set up a supply chain skills training programme. which the company operates was set up alongside the
The aim of this 12-month course is to equip its benefi- Vincent-de-Paul foundation near FM Logistic’s headquar-
ciaries with the theoretical knowledge and operational ters, in Phalsbourg. Twelve employees welcomed two
skills required to access the labour market by means of a groups of 13 young people to the company’s premises
certificate issued by the Federal University of Paraná. The and delivered presentations on their industry, career path
employee mentors first received training in order to guide and experience.
the 12 youths over the course of the year. The programme Three other initiatives should also be mentioned: the
recipients received 900 hours of course time as well as involvement of FM Logistic employees in the creation of
on-site practical training delivered by the FM Logistic a pop-up restaurant (in France), the mentoring of young
mentors. Twenty-eight group employees were involved people separated from their families (at the Taicang site
in this initiative. in China), and the Successors Academy project (inte-
In India, the Pune teams in collaboration with the gration and socialisation of orphans aged 14 to 18 in
Speed Foundation provided a vocational training and Russia).
Financial
statements
58 — FM LOGISTIC / ANNUAL
RAPPORT REPORT
ANNUELMARCH
31 MARS
31,2019
2019
€35.1 million EBIT
— 2019, STAYING
TENIR LE THE
CAP COURSE
— — FM LOGISTIC
FM LOGISTIC/ /ANNUAL
RAPPORT
REPORT
ANNUEL
MARCH
31 MARS
31, 2019 — 59
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
60 — FM LOGISTIC / ANNUAL
RAPPORT REPORT
ANNUELMARCH
31 MARS
31,2019
2019
Consolidated income statement / in thousands of euros
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
— 2019, STAYING
TENIR LE THE
CAP COURSE
— — FM LOGISTIC
FM LOGISTIC/ /ANNUAL
RAPPORT
REPORT
ANNUEL
MARCH
31 MARS
31, 2019 — 61
Financial
statements
Consolidated cash flow statement / in thousands of euros
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
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.

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.
FM Logistic Corporate
rue de l'Europe
57370 Phalsbourg – France
Tel.: +33 (0)3 87 23 12 12
www.fmlogistic.com

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ANNUAL

2019, staying the course

02 — FM LOGISTIC / ANNUAL REPORT MARCH 31, 2019

The board of directors The executive Review and outlooks by Transport by

France Spain and Italy

Brazil China India Vietnam

Pursuing operational excellence /

Focus on customer expectations /

04 — FM LOGISTIC / ANNUAL REPORT MARCH 31, 2019

Central Europe 22% 39% France

Eastern Europe 22%

24,900 27,200 59% 41%

06 — FM LOGISTIC / ANNUAL REPORT MARCH 31, 2019

❚ By sector ❚ By business line

Industry 20% 31% FMCG 55% W

Perfume 28% Distribution Co-packing 10%

❚ Average age ❚ Headcount by region

Two new members

A great year for job creation

8 — FM LOGISTIC / ANNUAL REPORT MARCH 31, 2019

PEPS on the cloud

10 — FM LOGISTIC / ANNUAL REPORT MARCH 31, 2019

12 — FM LOGISTIC / ANNUAL REPORT MARCH 31, 2019

JEAN-CLAUDE MICHEL MONIQUE ZOMENO

BÉATRICE OGÉE DANIEL CIZ

XAVIER PRÉVOST STÉPHANE JEAN-CHRISTOPHE MACHET

14 — FM LOGISTIC / ANNUAL REPORT MARCH 31, 2019

CÉCILE CLOAREC VITTORIO BATTAGLIA

“Staying the course

16 — FM LOGISTIC / ANNUAL REPORT MARCH 31, 2019

“We must be results achieved. We are entrepreneurs

perspective We must be flawless from an operational

and selective in cial sense. These are two of the objectives

18 — FM LOGISTIC / ANNUAL REPORT MARCH 31, 2019

YOU HAVE REFERRED TO THE INTERNA-

In order to address the capacity shortages

20 — FM LOGISTIC / ANNUAL REPORT MARCH 31, 2019

22 — FM LOGISTIC / ANNUAL REPORT MARCH 31, 2019

France. Growth driven by new contracts

Certifications and value-

24 — FM LOGISTIC / ANNUAL REPORT MARCH 31, 2019

“The launch of an online collaborative platform

Spain. Significant growth in activity.

Italy. Positive performance.

26 — FM LOGISTIC / ANNUAL REPORT MARCH 31, 2019

Ukraine. The economic outlook is brightening.

Russia. Strong performance driven

28 — FM LOGISTIC / ANNUAL REPORT MARCH 31, 2019

Poland, Czech Republic, Slovakia, Hungary.

Central Europe. A favourable economic envi

30 — FM LOGISTIC / ANNUAL REPORT MARCH 31, 2019

is experiencing almost full employ-

Brazil. A recovering economy.

In this volatile environment,

32 — FM LOGISTIC / ANNUAL REPORT MARCH 31, 2019

“FM Logistic customers: Welspun (textiles),

34 — FM LOGISTIC / ANNUAL REPORT MARCH 31, 2019

“Through pooled resources and shared spaces,

36 — FM LOGISTIC / ANNUAL REPORT MARCH 31, 2019

38 — FM LOGISTIC / ANNUAL REPORT MARCH 31, 2019

ERGOSKELETONS TO REDUCE MSD RISK

Another action point involved

40 — FM LOGISTIC / ANNUAL REPORT MARCH 31, 2019