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Dear Madam, dear Sir, dear Shareholder,

Despite a deteriorated economic environment that continued to impact the demand for printing and writing paper in the third quarter, our Group nevertheless registered a 4.3% growth of its consolidated sales at constant exchange rates at end of September.

This increase reflects the scope effect on Antalis resulting from the acquisition of Xerox’s office paper distribution business in Western Europe that contributed 7% to the consolidated sales growth. Growth was also shored up by the solid performance of the Packaging and Visual Communication businesses at Antalis and the good resilience of the specialties business of Arjowiggins. At end-September, EBITDA was stable year-on-year at €88 million, while Sequana benefited from the positive impact of lower raw material prices and an improved product mix.

As you know, the first half-year was marked by Sequana’s financial restructuring plan and the capital increase rights issue. These transactions, closed in late July, have helped us restore a normalised debt profile and a cashflow level required to fund our business operations.

Spotligt

Key figures to 30 september 2014

Shareholder’s Notebook

Stock Exchange

Traceability solutions

Focus

In a nutshellNews

Letter to Sequana’s Shareholders / November 2014 / No.4

At end September, the net consolidated debt stood at €441 million versus €717 million a year ago in September 2013, down €276 million.

In addition, Arjowiggins continues to restructure its printing and writing paper business in line with our targets. A collective agreement on the employment protection plan (“PSE”) was signed in early October with the Charavines mill works councils.

In parallel, we also continue to actively seek buyers for the Charavines and Wizernes mills. Numerous initial contacts have been made in France and abroad, with the assistance of the specialised consulting firm Ernst & Young and support from public authorities. Over 140 companies have been approached for each site, both in France and abroad. To date, we have received three expressions of interest for the Charavines mill and two for Wizernes, all of which in a preliminary stage and still requiring in-depth technical and marketing analyses for the potential buyers to check that the mills’ industrial facilities match their projects. We will obviously opt preferentially for a sale of our mills that enjoy real and valuable assets; however, should the disposal

process fail, we would then be forced to close them down in the first half-year 2015. In the USA, the disposal process for the Appleton Coated mill, initiated in late 2013, is still ongoing.

Fiscal year 2014 marks a new milestone for Sequana Group. Once completed, the operational restructuring plan of Arjowiggins’ printing and writing paper business will have a significant positive impact on the Group’s EBITDA starting in the second half-year 2015. Furthermore, with resources now available to fund the strategic expansion of Antalis, the Group will also enjoy real assets to sustain profitable growth in the future.

I wish to thank you warmly for your continued trust and loyalty.

Pascal Lebard Chairman and Chief

Executive Officer

04 / November 2014

to 's Shareholders


SpotTag®, a chemical signature for immediate authentication.

Innovative and efficient traceability solutions

Traceability relies on information used to track a product across its entire life cycle, from manufacturing up to distribution. Depending on the business sectors, it may respond to regulatory requirements, to issues of production or logistical monitoring, or to authentication needs for securing the flows. Various traceability solutions are available on the market, such as labelling, tagging or code engraving, but these options only provide for an identification feature to confirm the existence of a product in a centralised system. In order to remedy this inadequacy and reassure consumers about the authenticity of a product, Arjowiggins Security’s Brand Protection department designs customised authentication solutions based on substrates and taggants incorporated into inks, and develops secure traceability applications combining physical security and digital security.

These solutions are intended for private companies in various business sectors such as luxury perfumes and leather goods, wines and spirits, pharmaceutical or automotive industries, as well as governments (protection of coins and banknotes) and regulated industries (gambling, tobacco, spirits, etc.).

Thus a number of classified Premiers Crus wines now enjoy the benefits of the expertise developed by Arjowiggins Security’s Brand Protection department. Sophisticated traceability and authentication solutions have been designed specifically for these premium wineries. The labels, caps or bottles can incorporate one or several security features, whether visible or invisible, or may be printed with security inks serving as chemical signatures, or even engraved with a 2D code giving each bottle a unique identity.

In the automobile and chemical industries, Arjowiggins Security has been securing the

authentication of spare parts and crop protection products for major global leaders for more than eight years. Over 300 million such products are printed each year with a security ink that guarantees their authenticity.

In the pharmaceutical industry where counterfeiting is a major societal concern, Arjowiggins Security supplies around 100 million secured labels meeting the most exacting protocols of the major manufacturers.

Last but not least, in an entirely different sector, Arjowiggins Security’s Brand Protection recently developed a tailor-made system for the oyster farmer Gillardeau, allowing the company’s logo to be engraved on oyster shells in response to the increasingly large number of ordinary oysters falsely sold in France and abroad under the brand name.

Traceability, a major concern for industries

Focus

Lost market shares, impact on brand image, lack of control over the

production and supply chain, health and safety risks… counterfeiting

and parallel markets can have multiple negative consequences

for industries. As a global leading producer of banknote paper,

Arjowiggins Security is fleshing out its portfolio of high-tech security

solutions to combat counterfeiting. The Group has now become

a major player in Brand Protection, a booming business sector.

Arjowiggins Security combats counterfeiting

In 2013, the French customs authorities seized 7.6 million counterfeit items(1). Pharmaceuticals and clothes largely top the list, with over one million items seized last year, ahead of personal accessories and footwear. Asia remains the primary source of counterfeit products (80%), while e-commerce is fast becoming the primary marketing vector. Over 1.5 million postal and express delivery parcels were seized last year, i.e. 5% more than in 2012. Lastly, it is estimated that 200,000 job cuts worldwide, of which 100,000 in Europe and 30,000 in France, are a direct consequence of counterfeiting (source: OECD).In order to help combat this veritable scourge, Arjowiggins Security delivers a range of solutions for authentication, tamper-proofing, theft-proofing and traceability. For instance, the Signoptic™ solution is founded on a simple truism of the physical world, namely that every object is innately unique. Whether worked by hand or

mass-produced in a factory, each object has variations in its physical composition which can be used to compute a unique signature. A related unit identifier is then generated, allowing for individual tracking of each product. This solution can be easily integrated into industrial processes, and meets the requirements of both public and private sectors on issues of product traceability, management of logistical flows, and fight against counterfeiting and illicit trade. As an example, the Royal Canadian Mint first used the Signoptic™ solution to protect its new series of 1 and 2 dollar coins, and has once again opted for this technology to authenticate its Golden Maple Leaf coins.


News

(1) Source: Bilan de la Douane 2013 (French Customs Report 2013)

SinopticTM, premium protection for the collection coins minted by the Royal Canadian Mint, worth around CAN$ 3,000.

Arjowiggins Healthcare opens its doors to medical device manufacturers

As the only integrated operator in the medical packaging sector, Arjowiggins Healthcare combines on a single site all processes ranging from paper making to paper conversion (coating, printing, cutting) for the market of medical devices. Backed by this expertise, the Amélie-les-Bains mill (in Pyrénées-Orientales) opened its doors wide on two occasions in 2014 to companies from the medical device industry during its Pack Design Days. Some twenty French and foreign companies thus learned more about regulatory compliance and performance requirements, and how they are imbedded into the development, manufacturing and quality control of the packaging materials delivered to the market. New open door events are already scheduled for 2015.

PackDesignDayTop web selection for medical device packaging

Options of materials Criteria of choice

Demonstration of compliance

I N V I T A T I O N / P R O G R A M

Appeal of creative papers for the Luxury industry

Already well established in the world of luxury goods, in particular in perfumery, Arjowiggins Creative Papers supplies fine papers for perfume cases to the most prestigious perfumers. Thus Hermès once again chose our Delos paper for its newest fragrance to be released in early 2015. Similarly, Chanel has remained loyal to the bespoke paper produced by Arjowiggins for its Chance fragrance over the past decade.

Arjowiggins Creative Papers is leveraging its know-how in the sector and was invited to speak at the conference cycle organised by Luxury Society on the topic of communication addressed to Luxury players. Over 800 Luxury professionals in London, New-York, Paris and Hong-Kong had the opportunity of re-discovering how paper can be a powerful vector of brand promotion.

Two new passports for Arjowiggins Security

Arjowiggins Security’s portfolio is fleshing out with two new e-passport references for Benin and the Republic of San Marino. These e-passports will use the operating system Soma™ developed for passport security and control in compliance with the standards of the International Civil Aviation Organisation (ICAO).

In Benin, Arjowiggins will supply a full packaged solution covering the passport, operating system and issuance system. In San Marino, Arjowiggins Security also supplies the e-passport booklet with a polycarbonate page for variable data.


Arjowiggins Security: first Diamone® Xtra reference in Africa

Banknotes made of Diamone® Xtra paper, initially introduced on the market in 2013, will soon be in circulation in a major African country. This multi-layer extra-high durability paper, the latest born in the Arjowiggins Security range of high durability papers, is made from 100% cotton fibres and designed to withstand any types of stains.

Banknotes printed on this new paper can stay in circulation three times longer than those printed on standard paper. They are protected with a watermark, a security thread and an iridescent band. Diamone® Xtra is thus ideally suited to withstand the extreme climate conditions in Africa and multiple daily handling of banknotes.

Arjowiggins Graphic by the side of SOS Children Villages in Madagascar

Arjowiggins Graphic began three year ago to support the NGO SOS Children Villages via its Cyclus brand. This year, the brand’s

commitment focussed on child education in Madagascar. For each Cyclus design notebook ordered by its clients and partners, Arjowiggins Graphic sponsors one year of schooling for a child at the SOS Children Village of Vontovorona. Thanks to the record participation of over 3,900 customers worldwide, the campaign contributed to funding a year of schooling for 500 children in the village of Vontovorona.

Choosing your paper is an act of creation!

In September, Antalis launched its “Creative Power” initiative to promote its product range, currently the broadest on the market, featuring samples, training sessions, showrooms, expertise, and much more! In preparation to the launch of this global campaign, twelve “Cards” were designed by twelve artists, illustrators, photographers, typographers, etc. The cards will be sent out each month, printed on a new creative paper, each with a different printing technique to demonstrate how paper can contribute to showcase the value of the artists’ work. The campaign is targeting 15,000 creative designers and marketing and communication professionals, and will be followed with a “Creative Power Tour”. Antalis intends to leverage this approach to raise the awareness of the design and advertising community to the genuine value that creative papers can add to any application

Antalis fights preconceived ideas

In an effort to fight preconceived ideas and restore the positive image of paper, Antalis has produced an entertaining video clip entitled “Did you know?” about the myths and facts of paper. The video explains among other how paper is biodegradable by nature, that it can be recycled five to seven times without losing any of its intrinsic qualities, or how a 3-minute screen display consumes more energy than the printed version of the same page; virtues that still remain largely unknown by companies, printers or the public at large, all targeted by this video film. Learn more: www.antalis.co.uk

Antalis and Arjowiggins partnering with FIAC

On the occasion of the 2014 edition of the FIAC Contemporary Art Fair, nearly 250 clients had the opportunity to admire artworks created on Arjowiggins papers by talented students from the Estienne school of graphic design, selected in a contest organised by Antalis on the topic of “Retro-Chic in Design”. The initiative was an ideal way to tighten our links with future influencers and with the art world. Several books printed on graphic and creative papers manufactured by Arjowiggins and distributed by Antalis were also featured: FIAC catalogue, a book entitled “Hors les Murs” showcasing the artworks exhibited outdoors in various Paris venues, and the “(Off)icielle” catalogue of FIAC’s new off-event for emerging contemporary creation.

Antalis: a value-added packaging solution

As a major development pillar for Antalis, the supply of packaging products addresses various industrial markets such as

the automotive, logistics or food & beverage industries. The expertise offered by Antalis, backed by a broad proposition ranging from standard products to the design of customized solutions, recently won over the leading global producer of DIY tools and automotive parts. In spite of excellent in-house logistical systems, packing stations still represented a major bottleneck in their industrial process. The solution implemented by Antalis – a system of air cushion inserts via a sensor-controlled conveyor to all packing stations – helped the client enhance the staff productivity by 8%, reduce its logistical costs by 75% and significantly lower the number of customer complaints.


Third-quarter 2014 highlights

July- Sequana rights issue totalling

€66.3 million following the partial exercise of the extension clause,

- Issue of bonds redeemable in shares (“ORA”, “ORNANE”) listed on Euronext Paris.

October- Signature of a collective agreement

on the employment protection plan (“PSE”) with the Charavines mill works councils in France.

Key figures for the nine months to 30 September 2014

Spotligt

Key figures for the third quarter(1)

(1) Key figures for the third quarter and the nine months to 30 September 2014 do not include the US Coated division which is classified in discontinued operations.

Sales at €817m

Sequana’s sales rose 4.9% (up 4.6% for Antalis, down 1.1% for Arjowiggins). Xerox’s office paper distribution business in Western Europe which contributed 7% to the increase in sales, sustained growth in Antalis’ packaging and visual communication activities, and a resilient performance from most of Arjowiggins’ specialty businesses (recycled and transfer papers, bookbinding, security solutions) helped offset the decline in printing and writing volumes and in the banknote business in Brazil.

EBITDA at €20m

EBITDA fell €5 million year-on-year, chiefly reflecting the decline in standard coated and fine paper volumes.

Key figures for the nine months(1)

Sales at €2,537m

Sequana’s sales for the first nine months of 2014 were up 4.3% at constant exchange rates (+5.5% for Antalis, -1.8% for Arjowiggins). Xerox’s office paper distribution business, consolidated for the full nine-month period, accounted for around €180 million of the growth in sales.

EBITDA at €88m

EBITDA edged up 1.3% year-on-year to €88 million. EBITDA margin remained stable year-on-year at 3.5% of sales. Sequana benefited from the positive impact of lower overheads, the decrease in raw material prices and an improved product mix.

Net attributable income at €136m

Sequana generated net attributable income of €136 million – which included the positive non-recurring impacts of the Group’s financial restructuring – versus a net loss of €58 million for the first nine months of 2013. These restructuring impacts were recorded in the third quarter and generated net income of approximately €250 million. They mainly consist of debt write-offs obtained on existing Group credit facilities.

Consolidated net debt at €441m

Consolidated net debt fell by €276 million to €441 million at 30 September 2014, down from €717 million one year earlier, reflecting the positive impact of the Group’s financial restructuring.

Shareholder’s Notebook

Stock Exchange

0.24%Treasury shares

14.97%Exor SA


19.68%Bpifrance Participations

Share information

Listing: Euronext Paris (Compartment B)Indices: CAC Small®, CAC Mid & Small®, CAC All-Tradable®,Eligible for SRD LongTicker symbol: SEQISIN code: FR0011352590Par value per share: €1.00

Shareholding structure at 30 September 2014

10.01%Group Allianz

3.28%DLMD (including Pascal Lebard)

51.82%Public

This Newsletter is printed on Conqueror Vergé Diamond White 160 g, FSC-certified paper manufactured by Arjowiggins Creative Papers and distributed by Antalis.

Credits Antalis and Arjowiggins© photo library, Hermès photo library, Michel Labelle.

Design and production:

Capital increase and bond issues

As part of the Group’s financial restructuring plan, Sequana launched a capital increase with preferential subscription rights, under a rights issue opened from 1 to 15 July 2014.Based on a decision adopted by the Shareholders’ Meeting on 25 June 2014, Sequana’s share capital had previously been reduced via a decrease of the share par value from €9 down to €1. The rights issue, for a gross amount of 66.3 million euro after partial exercise of the extension clause, was finalised on 29 July. It resulted in the creation of 26,019,500 new shares, thereby increasing Sequana’s capital to €51,060,304, split into 51,060,304 shares with a par value of 1 euro each.Further to the capital increase, Sequana issued ORA and ORNANE equity-redeemable bonds subscribed at par by the lenders of Sequana and Arjowiggins respectively, as a debt-for-equity swap. The bonds are listed on Euronext Paris under the ticker symbols SEQAA and SEQAB.

Contact usTelephone: +33 (0)1 58 04 22 80Postal address: Service Actionnaires, 8 rue de Seine, 92100 Boulogne-Billancourt – FranceE-mail: [email protected]

14.49%Exor SA

19.05%Bpifrance Participations

Voting rights at 30 september 2014

10.51%Group Allianz

4.77%DLMD (including Pascal Lebard)

51.18%Public

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