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Activity and Sustainable Development Report 2016 Improving well-being by offering the best of nature Activity and Sustainable Development Report 2016 1_ Activity and Sustainable Development Report 2016 I ROQUETTE I FOREWORDI roquette In brIef Improving well-being by offering the best of naturE A leader in specialty food ingredients and pharmaceutical excipients. A family-owned Group serving customers globally, Roquette is a leader in specialty food ingredients and pharmaceutical excipients. The products and solutions developed by the Group deliver proven technological, nutritional and health benefits precisely tailored to the pharma, nutrition, food and selected industry markets. Roquette’s offer is produced from plant-based raw materials such as corn, wheat, potatoes and peas. Since its foundation over 80 years ago, the Group’s growth has been based on innovation, a passion for the job and a commitment to achieve. Roquette operates in over 100 countries, has a turnover of 3.2 billion euros and currently employs more than 8,000 people worldwide. 22__ ActivityActivity andand SustainableSustainable DevelopmentDevelopment ReportReport 20162016 II ROQUETTEROQUETTE II ITABLE OF CONTENTS p16 sourcing sustainably TABLE OF CONTENTS p22 innovating sustainably p30 biorefining sustainably p38 acting sustainably p48 reporting I ROQUETTE I Activity and Sustainable Development Report 2016 _3 EditorialEDITORIAL I In 2016, Roquette made investments designed to drive prospects, growth and meaning! What is your take on 2016? Jean-Marc Gilson, ER I To address the numerous global what do you consider as the most challenges to come, population growth, significant events of 2016? changes in and diversity of eating JMG I We positioned the Group as a habits, the emergence of new special top-performing player in its sector. diets, gluten-free, allergen-free or It is not an end objective as such, but vegetarian, Roquette has taken a bold it provides the means to accomplish step and is working on a significant our vision. We set up our new Global phase of future growth. For instance, Business Units (GBU) organization, the Group has decided to boost its which aligns our resources with our range of nutritional solutions and to strategic ambitions in each sector. We develop plant proteins. More than also reinforced our innovation centers Edouard Roquette ever, our mission is to help improve in Europe, the United States and more Chairman of the the nutritional well-being and health recently in Asia in order to develop Board of Directors of millions of consumers all over the specific products for the high-potential world. markets in South-East Asia. Is the family-owned dimension I would also like to highlight a new of the Group an asset? customer service approach based on a ER I Indeed, we engage in investment, highly-integrated organization that we research and development programs are going to gradually roll-out across that are fully consistent with a long- the Group. It not only entails addressing term approach. This makes Roquette customer needs, but addressing them a unique partner. We dare to position interactively, facilitating our relations ourselves on new markets, which and ensuring that our customer is others who are more focused on fully satisfied. We want the customer short-term performance wouldn’t experience with Roquette to be perfect necessarily do. The best example is from start to finish. the decision we made in late 2016 to In order to support our growth as establish ourselves in Canada in order well as that of our customers on a to build a new plant to process pea long-term basis, the Group has set protein. This investment will lead to the ambitious sustainable development establishment of the most significant goals for the years to come. We have pea protein production site in the world, always maintained an intimate bond serving the food, nutrition and health with nature. markets. It will have a profound impact on these markets. Jean-Marc Gilson Chief Executive Officer 4_ Activity and Sustainable Development Report 2016 I ROQUETTE I IEDITORIAL Executive Office Jean-Marc GILSON Chief Executive Officer Sustainable development is deeply set in the Group’s DNA, particularly as regards recycling plant raw materials. In addition, every year we set up bolder procedures, such as in the fields of energy and water. To this effect, in India we recycle all of the water in our plants. It’s a global first, which we wish to reproduce across the Group. Jeremy BURKS Driven by a growth dynamic and the Sophie ANCELIN Global Business commitment of its employees, the Human Resources Units & Commercial Roquette Group has asserted its position as a leading global producer of natural ingredients for the food, nutrition and health markets. Edouard Roquette concludes : “Acting and investing sustainably now makes sense more than ever!” Emmanuel de GEUSER Nathalie JOANNES Finance Group General Counsel Thierry MARCEL Gianfranco PATRUCCO Research & Global Operations Development I ROQUETTE I Activity and Sustainable Development Report 2016 _5_5 CORPORATEINTERVIEW I 2016 places us in a position favorable for speeding up our growth dynamic. The business climate in 2016 was below 7%. Only India experienced some particularly beneficial to the Roquette jolts due to demonetization. Group, leading to a milestone The raw materials market experienced performance that positions it as a a fifth year of consecutive decline both global front-runner in its business in terms of wheat from Europe, or corn sector. Firstly, the Group benefits Emmanuel de GEUSER from the Americas or Asia. The only from the committed efforts made difficulty recorded was in India, whose Executive Vice President Finance by its entire teams to better address poor monsoon resulted in a sharp price customer demands consistently. increase for local corn. Its new organization for the Global Business Units endows the sales Energy, a key component of the division with a decisional capacity, as Group’s expenses, also experienced well as a new approach that is less a relative decline in prices, as the fall quantitative than in the past. in oil prices impacted gas prices. This coincides with a slight fall of the euro “What matters is not the volume but against the dollar (2%), after its strong the value created by the business,” depreciation in 2015, thus favoring highlights Emmanuel de Geuser, who Roquette’s positions. “Mostly, our notes a slight decline in turnover linked costs are in euros, while our export to trade-offs and concurrent speeding sales are in dollars,” says Emmanuel up of the specialties, super-specialties de Geuser, to whom the outstanding and ingredients with a high added performance in 2016 “places us in value for the food, nutrition and health a good position to speed up our sectors. profitable and sustainable growth Then, the macro-economic context of dynamic.” 2016 was beneficial to many fields. Global growth held steady at 3.1% with more reliable growth recorded in Europe, but accelerating. The United States, a high added-value market, remained above 3%, and Asia slightly 6_ Activity and Sustainable Development Report 2016 I ROQUETTE I ICORPORATE Key figures A presence over 100 countries Turnover 3.2 Billion euros World total Americas: 2 20 europe: 10 industrial sites asiA: 8 World total Americas: 550 8,000 europe: 4,950 employees asiA: 2,500 top 5 Starch processing industry More than 300 employees innovation dedicated to research 40 patents per year II ROQUETTEROQUETTE II ActivityActivity andand SustainableSustainable DevelopmentDevelopment ReportReport 20162016 _7_7 CORPORATE I Our markets and our products Some examples Satisfying our customers and of applications developed anticipating their needs is the with our customers: Group’s number one priority. In order to provide them with the most appropriate solutions, we optimize all components of renewable raw materials (corn, wheat, potatoes, peas) by drawing on our botanical expertise. To this effect, we harness the technological and nutritional properties of these natural resources with the aim of offering a broad range of products and solutions in the fields of food, nutrition and health, as well as other industry sectors. As such, we offer over 700 products worldwide. Our industrial know-how, which is driven by a long- standing tradition of engaging in research and innovation, enables us to be at the cutting- edge of solutions. It guarantees the high quality of our products and services, appreciated by our Food & human customers around the world. nutrition Our plant-based solutions with nutritional and health benefits enable us to: • Offer solutions that are adapted to people with diabetes thanks to our ingredients with a low glycemic index: NUTRIOSE® soluble fiber, SWEETPEARL® maltitol, • Help prevent sarcopenia (muscle weakening) which affects seniors: NUTRALYS® plant proteins, • Reduce the sugar level in foods: SWEETPEARL® maltitol and NUTRIOSE® soluble fiber. 8_ Activity and Sustainable Development Report 2016 I ROQUETTE I ICORPORATE Pharma Excipients, raw materials and active ingredients make up a wide range of products with multiple uses for the pharmaceutical and biopharmaceutical industry, which serve to: • Save lives: LYCADEX® PF pyrogen-free dextrose, a vital molecule of the human body, used in solutions administered through infusion for first-line treatment in emergency situations, • Facilitate medicine intake: dosage formulation, mannitol-starch combination, PEARLITOL® Flash for orodispersible tablets that do not require water and melt in the mouth. Animal nutrition
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