Message from the CEO

In what concerns business consolidation of paper distribution and in strategic markets, Inapa has strengthened its position in France, being now the second operator in the paper distribution market. In Spain, a market where it added its natural growth to the market share resulting from the acquisition that has been made, it has today a market share superior to the sum of the positions that were then hold by the two distributors, corresponding to the third position in that Iberian market.
At the same time, and as a result of the diligences that have been made in the year under analysis, we have concluded in the beginning of 2011 the alienation of the total capital of Tavistock, the participated company operating in the UK. With this transaction we have concluded the concentration plan of Inapa in strategic markets, where it holds leading positions, according to what we have announced to the market in 2007.
In what regards to the paper complementary business, we must emphasize its growth that justifies the increase of its importance, both at the level of consolidated sales and its results contribution. In the present triennium, Inapa business profile should change substantially, with a bigger investment in packaging and visual communication and subsequent value generating resulting from the best profitability and growing perspectives of these segments.
The improvement of operational efficiency also presents a step forward resulting from the effort made in costs management and the Group progressive integration of the areas that potentiate the scale effect, such as the relation with suppliers and strategic marketing, systems and communication, finance policy and treasury management, among others.
Finally, I would like to mention the success achieved in the replacement of the securitization operation, under favourable conditions to Inapa, as well as the reconstitution of the financing structure that should be complemented with the strengthening of share capital as requested authorization to the General Assembly. The results achieved and the credibility of Inapa have certainly been determining factors for the support gathered near national and international financial institutions together with the confidence and support of the shareholders.
In conclusion, in this environment of strong economic contraction and financial restrictions, Inapa has had the ability to obtain results even under adverse conditions. The consistent and continuous improvement of its results reflects the deep restructuring that Inapa was able to implement in due time and that has allowed it to have a more adequate structure to the new reality that the whole sector is facing.
The strategy to pursue is challenging, but will be generate value for the shareholders. Besides the investment in the segment of packaging and visual communication, we are committed to get more efficiency from the operations and to rebalance the capital structure in such a way as to ensure the Group sustainability and an attractive remuneration of the capitals employed.
Our policy of market communication will continue to be based on transparency and accuracy with Governance practices that best represents the interests of all shareholders. A proof of this recognition has been the award won by Inapa of best Corporate Governance in Portugal in 2011 given by the prestigious international magazine World Finance.
The performance we have achieved reflects the joining of efforts of our shareholders who, since 2007, have been supporting the strategic plan that we have been carrying out, of all the members of the corporate body without the contribution of which it wouldn't have been possible to achieve this progress, of the Inapa multinational and multicultural collaborators and also the support of our business partners with whom we share this success.