ID Logistics : Integrated Report 2023

MOMENTUM

BEYOND BORDERS

INTEGRATED REPORT 2023

CONTENTS

THE ID LOGISTICS GROUP

p. 4 > 17

ID Logistics key metrics for 2023 p. 4

A multinational operator p. 6

ID Logistics, a pure player in contract logistics p. 8

Joint interview: Éric Hémar and Christophe Satin p. 10

2023 in pictures p. 12 > 17

01	MORE EFFICIENT
THAN EVER
	p. 18 > 25

MORE UNITED 02

THAN EVER

p. 26 > 33

03	MORE COMMITTED
THAN EVER
	p. 34 > 41

GOVERNANCE & RESULTS

p. 42 > 51

2

The majority of the images in this integrated report show the central warehouse of our client PepsiCo in Mszczonów, Poland. ID Logistics would like

to extend its sincere thanks to PepsiCo and all the teams who made this photo report possible.

D z ię k i *

THE MSZCZONÓW SITE Opened in 2020, Mszczonów is the largest PepsiCo distribution network warehouse, and is operated by the company's Polish subsidiary. It is also the first warehouse in Poland to be awarded BREEAM Asset Performance and Management Performance certification, highlighting the importance placed on environmental issues by PepsiCo.

KEY FIGURES

58,000 M²	230
	EMPLOYEES
60,000	10,000
PALLETS	PALLETS HANDLED
STORED	EVERY DAY

103 LOADING/UNLOADING BAYS

From left to right: Aleksandra Biniecka, Sebastian Wacławek, Anna Zając, Patryk Banasiewicz, Teresa Smolińska, Anton Udod, Vladyslav Horbatko, Yuliia Romanovych, Damian Kuziemski and Nataliia Demydenko.

* Thank you

3

4

ID LOGISTICS

KEY METRICS FOR 2023

€ 2.75 bn	98%
REVENUES	CUSTOMER
	RETENTION RATE
	38,000
	EMPLOYEES
400	8+ million m2
SITES	OF WAREHOUSING
	18
	COUNTRIES
10	2.6
CSR TARGETS	INNOVATIONS
FOR 2030	PER SITE, PER YEAR

5

LOCATIONS

1. MULTINATIONAL OPERATOR

Consolidating its positions in Europe and the US has firmly established ID Logistics as a global force with the ability to respond even more effectively to the needs of key customers

on every continent.

TREND IN REVENUES

2022-2023

Group

+ 10.7%

USA

North America

+ 34.3%

Europe (exc. France)

+ 16.4%

France

- 4%

Others

+ 8.1%

BRAZIL

ARGENTINA

CHILE

6

THE NETHERLANDS

UK

POLAND

BELGIUM

GERMANY

ROMANIA

FRANCE

ITALY

PORTUGAL

SPAIN

MOROCCO

REUNION ISLAND

TAIWAN

INDONESIA

7

ID LOGISTICS

A PURE PLAYER IN CONTRACT LOGISTICS

RESOURCES

				Human capital	Innovation capital						Financial capital
. 38,000 employees	. 50 innovation engineers	. €417 million in shareholders'
		in 18 countries	worldwide		equity
. Average age of 39.4	. 3 innovation campuses (Brazil,	. A debt ratio limited
. A best-in-class health	The Netherlands and France)		to 1.6* x EBITDA
	and safety policy	. 30% of sites mechanised	. A Group listed on Euronext
. A strong employer brand	worldwide		Paris and a member
		of the SBF 120 index
						* Pre-IFRS 16 and pro-forma
VALUE CREATION			acquisitions

Societal and environmental capital

. Signatory of the French

Responsible Procurement

Charter

• Member of the UN Global
  Compact

. An ambitious environmental policy

For customers

. Average customer satisfaction rating: 4.3/5

. Average year-on-year organic growth of +10%*

. 20 new customers per year on average*

. Contract renewal rate above 90%

For employees

. HappyAtWork survey: overall employee rating of 3.9/5

. 7,500 new hires per year*

. 235,320 hours of training per year*

. A 16% reduction in the occupational accident frequency rate (Group-wide 2023 vs. 2018)

* 5-year average

For the planet

. 66% of waste recovered

. 18% reduction in carbon footprint per pallet (Scopes 1&2, 2023

vs 2018)

. Eco-responsible solutions for our customers

For the community

. 75% of suppliers (95% of annual purchasing volumes) have signed the CSR & Responsible Procurement Charter

. 70% of subsidiaries have engaged in at least one local community projects

. 100% of country Management Committees and 80% of managers have received ethics training

THE GROUP'S BUSINESS LINES

■ Warehousing	■ Transport and flow
and value-added	organisation
services
■ Supply chain	■ Delivery of turnkey
optimisation	projects

• Dedicated e-commerce solutions

8

A BALANCED CUSTOMER PORTFOLIO

36%	25%	19%	11%	6%	3%
Retail	e-commerce	FMCG	Others	Fashion	Cosmetics

4 FUNDAMENTAL VALUES

SOLIDARITY

Encouraging social advancement and inclusion at every level of the company and engaging with local communities.

UNCOMPROMISING STANDARDS

Demanding the very best for ourselves and our customers, behaving responsibly as a company and controlling our environmental, social and societal impacts.

ENTREPRENEURSHIP

Offering all our people the opportunity to be imaginative, entrepreneurial and creative. Supporting every individual in their achievements and projects.

OPERATIONAL EXCELLENCE

Ensuring delivery of the highest standard of logistics services to ensure maximum performance and customer satisfaction.

OUR STRATEGIC PILLARS

• A totally customer-centric organisational structure
• Stable and experienced teams
• Optimally consistent quality of service
• A commitment to CSR throughout the history of the Group
• An ongoing process of innovation

9

JOINT INTERVIEW

ÉRIC HÉMAR,

CHAIRMAN & CHIEF EXECUTIVE OFFICER

CHRISTOPHE SATIN,

CHIEF OPERATING OFFICER

The Group today has even greater stability than previously, and activities outside France now generate 70% of our revenues.

ÉRIC HÉMAR

How would you sum up your performance in 2023?

Éric Hémar: We are once again able to report double- digit growth, which I think can accurately be described as an excellent performance in what was an uneven trading environment. This achievement demonstrates our resilience and the relevance of our diversification strategy, which applies equally to geographic presence and customer profiles. The Group today has even greater stability than previously and activities outside France now generate 70% of our revenues. Although 2023 saw volumes plateau in some countries

of Western Europe as a result of high inflation, this effect was more than offset by dynamic performances in other regions, including the USA, Brazil

and Poland, where we now lead the market. We've also benefitted from an increasingly strong performance from Italy

and our expansion into the UK.

Christophe Satin: Our global scale and balanced portfolio are key strengths of our growth and long- term value creation strategy.

Our performance in 2023 can also be directly attributed to a strategy we adopted in 2022 to strengthen our position in three major verticals we identified as offering high potential for growth. So we went ahead and set up global centres of expertise for all three of these sectors: e-commerce, fashion and FMCG. This strategy has been quick to deliver results, and we will now continue to apply and develop it over the years ahead.

You expanded your position in the fashion sector during the year with the acquisition of Spedimex in Poland…

• H.: Yes, and that acquisition has generated significant synergies very quickly. Our ability to replicate operational standards developed jointly with our customers has attracted the interest of key players in

this sector; companies that operate a multi-channel structure adding hundreds of new products every month and handling a large number of customer returns. And we now have the ability to respond effectively to these kinds of specific demands. That ability has already gained us a foothold in the UK and further strengthened our position in Brazil.

C. S.: Our strong cash flow generation is what gave us the opportunity to finance our acquisition of Spedimex in Poland without compromising our balance sheet and ending 2023 with net debt of 1.6 x EBITDA. Our IDeLiver operational excellence programme is helping to contain costs in the ongoing inflationary environment, and is increasing our resilience to the negative effects of volume fluctuations. Which means we retain our

full capacity to finance new developments and acquisitions.

10