Press kitSITL EUROPE 2016

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In just 50 years, FM Logistic has become one of the major playersin the warehousing, transport and co-packing businesses. Theinternational and independent group is now a reputed logisticsexpert in the consumer goods, distribution, cosmetics, industryand health markets.

At the 33rd SITL Europe fair, there will be a concrete demonstrationof the FM Logistic group’s dynamism and leadership concerningits 3 strategic priorities that support its current development :

FM Log

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Internationalisation, the growth accelerator PAGE 4

FM Logistic has become an internationalgroup in just a few years through policiesof acquisition and organic development.With its 19 500 staff members, thecompany is based in 3 continents and 5 operating areas : Asia, Eastern Europe,Central Europe, Western Europe and Latin America.

Discover : the group’s commercialstrength from Eastern Europe to Asia.

• Group anniversaries : 10 years in China, 20 years in Poland

• Recent contracts : LG in Brazil, Leroy Merlin in Russia,Whirlpool in Hungary…

Innovation, a pro-performance toolPAGE 6

The development of FM Logistic is basedon a strong policy of innovation thatrespects the environment.The group pioneered “pooling” (pooledresource management for transport andlogistics), and has received numerousprofessional awards for the concept.

Discover : new projects, solutions and their implementation.

• Co-packing innovation : the box-cutting module

• Cobotics in logistics : the robotic armwith multiple applications…

FM Logistic, an open corporate culture PAGE 8

FM Logistic has a free-thinking culturewhere the most innovative concepts arestudied and tested before being adopted.Objective : to meet the strategic challengesof the supply chain worldwide.

Discover : the group’s latestcommitments, from employer brand to environmental performance andfrom sustainable logistics to thewarehouse of the future…

• Initiatives in support of employment :the Alliance for YOUth programme, the creation of the FMEA subsidiary, the Adapted Companies network…

• A focus on tomorrow’s Supply Chain :the CRC project (Collaborative RoutingCentre), CityLogin Paris…

istic

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Internationalisation,the growth accelerator

Since its first steps taken on the international scene in 1994, FM Logistic’s aim has been to drivethe competitiveness of its customers throughout the world. Today the group is present in 12countries (France, Spain, Italy, Romania, Czech Republic, Slovakia, Hungary, Poland, Ukraine,Russia, China and Brazil), and makes 64 % of its revenue internationally ; only 25 % of its 19 500members of staff are based in France : evidence that the international aspect of the company isnot simply a reality, it’s a concrete strategy.

10th anniversary for the group in China

Over the coming three years, FM LogisticChina will open new sites near major cities.It also intends to develop its distributionnetwork in the South East and centre ofthe country.

FM Logistic celebrated its 10th anniversaryof being on Chinese territory in 2015. Thelogistics provider operates across thewhole country with over 300 staff mem-bers. 2014 was an exceptional year with a40 % increase in revenue.The company gained important newcontracts with Chinese customers such asthe kitchen appliance group Joyoung whoawarded FM Logistic the « best serviceprovider of the year » title in 2014 out of50 companies.

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The group’s 20th anniversary in Poland

In 2014, FM Logistic Poland inaugurated thebiggest distribution centre for the healthsector in Central Europe. The centre is loca-ted near Warsaw. The group decided to de-velop its International Transport services aswell by opening its first office in Poland in2002, halfway between Paris and Moscow.

FM Logistic set up in Poland in 1995. Thegroup was considered to be a pioneer at thetime and it has now developed its businessactivities to become one of the logistic leadersin Poland and Central Europe as a whole.20 years on, the company owns 9 logisticscentres, a fleet of over 2 000 vehicles andhas almost 3 000 staff members. Its custo-mers include : Mars, Auchan, Carrefour,Mondelez…

Poland is one of the 3 pillars of our international success. The reason of our 20-year success in Poland is our capacity to meet the demands of our international and Polish customers by providing them with a wide and secure range of services. We are ranked among the top 3 logistic providers in the country.

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”JEAN-CHRISTOPHE MACHET, CEO OF FM LOGISTIC

NEW 2016 CONTRACTS

LG in Brazil

FM Logistic has been established in Brazil since 2013. With 4 sites

and a total surface area of 200 000 m2, the company can boast real

expertise in the transport sector. The international consumer

electronic devices specialist, LG, has chosen FM Logistic to manage

its electrical appliance deliveries in Northern Brazil.

FM Logistic Brazil operates from the LG factory in Manaus where it

has set up a complex organisation of multi-modal waterway-road

transport to handle nearly 500 loads per year. Deliveries to the most

remote areas can take up to 20 days of transportation.

Leroy Merlin in Russia

Leroy Merlin is one of the worldwide leaders in DIY and partner to

FM Logistic in Russia since January 2014. The two French companies

decided to extend their partnership with the signing of two new

contracts. The first took effect at the end of 2015 and concerns

logistics for 11 000 e-commerce references. The DIY specialist chose

FM Logistic to operate in Moscow and the surrounding area from

the Leroy Merlin warehouse located 45 km from the capital.

The second contract that will takes effect in July 2016 relates to

warehousing services and cross-docking operations as well as

deliveries to the company’s retail outlets in Moscow and other

regions in the country.

And in…

•Ukraine : Henkel Beauty Care (warehousing) and Arcelor Mittal

(transport) ;

• Czech Republic :Mappa (distribution to 5 countries) ;

• Sovakia : Johnson & Johnson Cosmetics (distribution to 4 countries)

and Bic (co-packing contract renewed for 5 years).

In addition the Slovakian subsidiary of FM Logistic has announced

that it will build 3 new units on its existing giant platform to attain

a total surface area of 17 000 m².

•Hungary :Whirlpool (transport) ;

• Russia : Auchan and Nespresso (omni-channel and e-commerce).

FM Logistic Russia is also developing rail freight to the East of

the country : 6 carriages deliver to Vladivostok every week ;

• Brazil : Procter & Gamble and LVMH (transport) ;

• Continental Europe : FM Logistic’s objective is to strengthen

its territory by developing its range of services (logistic and

distribution) and omni-channel transport in all of its countries.

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Innovation, a pro-performance toolFrom the first transport optimisation solutions created in 1967 to the development of newservices such as co-packing (1987), including innovative pooled logistic solutions (2004), makinga difference has always been an important part of FM Logistic’s identity.

In 2015, the Russian and Hungarian subsidiaries implemented the Put to Light picking solutionto support the growing e-commerce business there. Put to Light is a concept which is totallyadapted to current order-picking methods. It works by displaying the quantity of parcels that theoperator has to take and then providing a light indication of where the order should be placed.

From the first signs of a policy to the creation of an international ecosystem, the importance ofinnovation has rapidly developed within the group. Recently, FM Logistic set up an Automationdepartment whose purpose is to come up with high value-added innovative and optimisationconcepts in co-operation with its customers and partners. This is part of the warehouse of thefuture project.

The box-cutting module : a major asset in co-packing

list company in the integration of roboticlines), FM Logistic has developed a modulewith numerous advantages :

• The cutting tool adapts to the thicknessand quality of the cardboard ;

• Manual box opening is suppressed the-reby contributing to improved workingconditions ;

• The module’s simple programming andeasy troubleshooting makes it a quick ma-chine to master.

Due to benefits in terms of ergonomicsand safety as well as its small size, the box-cutting module will be implemented onother FM Logistic sites. The AutomationDepartment is also studying the possibilityof new features such as handling film-co-vered logistic units.

The co-packing operation of box opening isa repetitive task that can cause musculos-keletal disorders and cuts. Some semi-auto-matic opening systems exist already but FMLogistic’s Automation Department wanteda solution that could cut boxes of differentformats with no risk of damaging thecontents, a solution that would facilitatemanual product handling with a simple anduser-friendly Man-Machine interface.

In partnership with Axys Robotique (specia-

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The robotic arm :logistics ofthe robotic era !

The first application was installed at the Neu-ville-aux-Bois site (France, 45). It is composedof two standard frames equipped with tworobotic arms and conveyors. It carries out lowvalue-added, repetitive tasks : the first armremoves the top of the « self-ready » packa-ging and puts it onto a waste conveyor. Thesecond arm takes 6 products simultaneouslyand places them onto the conveyor by batchof 2 or 3 for the labelling process.

The module has already been fitted with a

speech synthesizer and the Automation De-partment will shortly be equipping it with aspecial sight application.

FM Logistic has also invested 2 million eurosin the acquisition of industrial robots. Ob-jectives : to simplify palletising / de-palleti-sing operations and to keep the physicallydemanding tasks involved in this activity toa minimum in the aim of reducing the riskof musculoskeletal disorders that often re-sult from handling heavy loads.

With warehouses being increasingly auto-mated, new generation robots that are des-igned to work in co-operation with peoplehave come on the scene. These "cobots"are equipped with sensors which detecthuman presence and are programmed tooptimise and standardise simple handlingtasks thereby significantly reducing muscu-loskeletal disorders.

The Automation Department selected therobotic arm from Universal Robot, specialistcompany in collaborative robotic techno-logy. Selection criteria were :

• Simple functions ;

• Easy programming ;

• High capacity to interact with humans.

Inventory viewer :cherry picker-free inventory automation

and storage locations. Every pallet’s code-bar is matched to a location and the infor-mation is sent directly to the WMS.

This system is more reliable than traditionalinventory procedures thanks to the camerasand sensors. The initial results show 99 %reliability, which was the target. FM Logistichas already identified 15 to 20 sites liableto be equipped with Inventory viewer. Ini-tial feedback is due in September 2016,until then, two pilot operations will takeplace in real conditions at the FM Logisticplatforms of Satolas (France, 69) and Ca-priata d’Orba in Italy.

Whether for tax-based inventory or cyclecounting, cherry pickers have to be hired (5to 15 on average) and many staff memberscalled upon. In partnership with Hub One(specialist services group in professional in-formation and communication technology),FM Logistic has created an intelligent inven-tory solution.

It comes in the form of a reach truck witha platform carried by the forks. Its equip-ment includes COGNEX cameras that readat a height of 2.5 m, IP cameras that pho-tograph the pallets, and sensors (LIDAR andultrasound) that detect pallets and obsta-cles. The fork-lift operator travels around at4 km/h, level per level (1 level = approxima-tely 90 pallets), while the cameras collectthe code-bar information from the pallets

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FM Logistic, an open corporate cultureBeing a naturally open company, FM Logistic accompanies its customers in developing a flexiblesupply chain that is capable of adapting to new challenges and changes in the sector : employerbrand, environmental performance, sustainable logistics…

An employer brand to attract tomorrow’s talent

ping a business model or a novel idea thatinvolves connected objects, 3D printing oraugmented reality.

The majority of applicant teams are made upof 2 or 3 students from varying backgrounds(business schools, engineering schools, uni-versities...). They have until April 10 to sendin their application. 20 teams will be selec-ted and coached by an FM Logistic expert inorder to put a detailed presentation of theirproject together. Only the 5 best teams willbe chosen to go on to the oral evaluation onJune 16 when the winning project will bepicked.

The winning team will then be invited to In-novation Day to present their project at thisevent held annually for FM Logistic’s Frenchand international customers.

An European initiative to promote jobs for young people :Alliance for YOUth

FM Logistic takes an interest to both currentstaff members and future employees. Thecompany recently got involved in developingits employer brand, one of the aims beingto increase the recruitment of young talentand encourage professional insertion foryoung unemployed people.

In Italy, the Czech Republic, Romania andnow in France, FM Logistic has joined Nestléand its 200 partners in its Alliance for YOUthinitiative. The aim of the programme is tohelp find a solution to the problem of youthunemployment in Europe by 2017 throughthe creation of more than 100 000 job op-portunities.Partner companies commit to developingjoint and individual projects to give youngpeople the possibility to gain significant pro-fessional experience.

In order to feed the hotbed of talent thatwill support the company’s future develop-ment, FM Logistic is building up a networkof partnerships with universities in France,Russia, Ukraine, Italy, Spain, Brazil... The group is participating in the emergenceof logistics of the future and is contributingto spreading best practices to all the coun-tries in which it have a foothold, and thisthrough numerous initiatives :

The Supply Chain of the future competition : The Faster Mind Challenge

In February 2016, FM Logistic launched aninnovation challenge for students called theFaster Mind Challenge. The goal is to designthe Supply Chain of tomorrow by develo-

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Environmental performance serving group development

Being aware of the highly consumer-basednature of its business activities, FM Logistic hasintegrated environmental performance intothe heart of the group’s development. Mea-suring and optimising processes in the aim ofcoming up with alternative solutions is consi-dered priority in order to reach the target ofa 15 % reduction in CO2 pollution by 2022.

Green projects with high added value

Warehouse energy consumption is conside-red to be second in line, behind transport,in terms of CO2 emissions. Being aware of

this, FM Logistic is committed to optimisingon-site energy consumption while preser-ving working conditions and a high stan-dard of service.Diverse actions have beencarried out like the LED Relamping pro-gramme in warehouses, or building HQEand LEED platforms.The Ressons-sur-Matz(60) platform was the first in France to ob-tain the « exceptional » certification fromthe « NF HQE™ Bâtiments Tertiaires »(French standard for commercial buildings).The group has now set this as the requiredstandard for any new platforms, like theone in Entraigues-sur-la-Sorgue (France, 84)which will be inaugurated in 2016.

FM Logistic France intends to create 3 FMEAsubsidiaries within the next three years, andeventually to create one in each of the re-gions it is based. Each structure will employa maximum of 20 people to ensure efficientsocio-professional support. A project is cur-rently underway in the Picardie region.

The creation of a training SupplyChain/Transport subsidiary with « Apprentis d’Auteuil »

FM Logistic France very recently went into apartnership with « Apprentis d’Auteuil », anauthorised charitable organisation for childprotection. They are working together onthe creation of FM’s twentieth training sub-sidiary : Supply Chain - Transport. The twoentities are developing a training pro-

gramme which combines theory and practi-cal work. It is destined for young peoplewith difficulties finding a place in the profes-sional world.

FM Logistic is starting its first school year inSeptember 2017 for 20 young people, thelong-term plan is to welcome around fiftystudents per year.

An example of economic solidarityand social entrepreneurship : FMEA Adapted Companies network

FM logistic’s HR policy has been concernedover the past few years with the integrationof people with disabilities and providing jobsfor them. In practice this approach meansthat more than 9 % of the company’s staffmembers in 2014 were disabled.In November 2015, FMEA Adapted Compa-nies network, a subsidiary of FM LogisticFrance, inaugurated its first adapted com-pany at its Saint-Cyr-en-Val site (45) with itscustomer the SEB Group. This adapted com-pany is run like an ordinary company, thedifference is that 80 % of staff membershave a disability. Disabled workers are ableto find a paid job in conditions adapted totheir possibilities.

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CityLogin, logistics of the future,today

Tomorrow’s logistics chain, according to FMLogistic, will be greener and more respectfulof Man. The group knows that it cannotmeet this challenge alone.

That’s why the logistics provider has set upnew working procedures to strengthen rela-tions with the company’s different stakehol-ders (customers, staff, suppliers, partners,local communities). Objective : to developcross-group projects in order to find innova-ting value-added solutions.

One of these initiatives is an urban deliveryconcept called CityLogin that is developingin Europe. Since 2015, FM Logistic has beenrunning a 500 m² platform on the outskirtsof the capital city in partnership with an Ita-lian transporter and the city of Rome. Theplatform uses hybrid and electric vehicles tomake deliveries to the city centre.

The improved quality of life and reducedpollution that CityLogin provides, while en-suring distribution conditions to businesses,also appealed to the Mayor of Paris duringa call for innovating sustainable urban logis-tic projects.

The concept involves pooling the transportof products from two cosmetic manufactu-rers into fully-loaded trucks. The manufac-turers in question are established at FMLogistic’s Château-Thierry site (France, 02).The goods are taken to hubs located justoutside Paris which belong to GreenwayServices. From there the pooled goods aredelivered by electric vehicle.

The engineering consultancy Egis, has sup-plied two parking terminals near the pilotshops. They measure length and frequencyof delivery-vehicle-parking as well as occu-pancy rates in the delivery areas.

FM Logistic, eco-responsiblethrough and through

In 2013, the FM Logistic group joined theGreen Freight Europe programme, an ini-tiative which aims to improve the ecologi-cal performance of goods transportation inEurope. It consists in a system of normsthat must be followed to calculate, collect,analyse and monitor CO2 produced by roadfreight.

FM Logistic is one among 100 members inthis pan-European programme which ismade up of transporters, loaders, logisticservice providers….

As a transport organiser, FM Logistic workswith its own trucks as well as with a net-work of over 1 000 partners, so recordingand sharing consumption data is complex.In spite of this complication, it has takenjust two years to integrate 60 % of globaltransport business (own and outsourced as-sets) into the CO2 emission calculation.

In 2015, FM Logistic France undertook toget the eco-responsible performance of itssupply chain evaluated. The TK Blue agencywas entrusted with the mission of notingand assessing the overall environmental im-pact of its transport activities with respectto CO2, greenhouse gases, particles, acci-dents, road congestion and noise pollution.

The CRC© project, driving towards100 % pooled distribution

For the past 10 years now FM Logistic hasbeen an active member of the Demeter clubwhose objective is to develop sustainable lo-gistic practices through experimentationand co-operation.

In this context, FM Logistic France has de-veloped the CRC® project in partnershipwith 4S Network, the specialist in innovativeand sustainable Supply Chain solutions. TheCRC® project is an innovating pooled rou-ting service with multi-industry and multi-distributor transport coordination.

The concept aims to separate upstream anddownstream distribution by developing anopen network of regional collaborative rou-ting centres in order to optimise truck loads(> 90 %) while guaranteeing distributors vi-sibility, transparency and standards. Thanks tothe CRC project’s optimised truck sharingconcept the carbon footprint can be reduced.

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About the FM Logistic group

Since its creation in 1967, FM Logistic has become one of the internationalleaders in the fields of warehousing, transport and packing. As an independentGroup, it is recognised as being expert in the consumer goods, distribution,perfume/cosmetics, manufacturing and health markets. Present in 12 countrieswith 19 500 staff members, FM Logistic’s revenue was 1.066 billion euros at 31 March 2015, up by 10.2 % (at constant rates) on the previous financial year.

Other than internationalisation, FM Logistic’s development is built on a strongpolicy of innovation and respect for the environment. The Group pioneered the“pooling” concept (shared transport and logistic resources), for which theyreceived numerous professional distinctions.

As an eco-responsible company, FM Logistic joined the Green Freight Europeprogramme in 2013. This programme aims to improve the ecological performanceof goods transportation in Europe. In 2015, the Group created CityLogin, thegreen solution to logistic requirements for the last mile of delivery in majorEuropean cities.

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