Social Annual Report 2013

EFFICIENT AND RESILIENT

SOCIAL ANNUAL REPORT

2013

CONTENTS

SOCIAL ANNUAL REPORT 2013

4

FOREWORD

6

DEVELOPMENTS

12

AVAILABILITY

20

EMPLOYABILITY

32

MOTIVATION

38

CORPORATE SOCIAL RESPONSIBILITY

44

AFTERWORD

3

4

FOREWORD

This is not the first time that we’ve been through turbulent times. But we’ve always succeeded in overcoming difficult periods by holding on to our Wagenborg values, which focus on continuity and the ongoing relationships with our staff and our customers. The economic problems are not yet over, but we believe that the worst is now behind us. In 2013 there were signs of recovery, such as the fact that the debt crisis affecting European governments has not extended any further.

Last year we demonstrated our resilience by successfully moving ahead in a dynamic external setting. We live in a world where yesterday’s certainties are no longer certain and in which we have to reconsider all scenarios. That calls for alertness in order to promptly identify and respond to risks, and preferably to convert them into opportunities. We succeeded in this because we continued to play to our strengths: the strength of our brand and our talents.

Efficiency is just as important as resilience. How do we stay ‘lean’ without running serious operational risks?

We have to find the right balance between added value for the customer, productivity and cost levels. In order to do that, we have to be resilient, to have the necessary knowledge and understanding of uncertainties and limitations. We have to continuously cater to customers’ changing wishes and requirements. In some cases this involves changing our employees’ mindset and skills.

Our approach to safety at work is an example of changing the mindset of our employees. Unfortunately, there were four fatal accidents at our company in 2013. It has become clear to us that the industrial safety standard can differ between various sectors. We at Wagenborg are no longer willing to accept that. There is still much to be gained: safety goes beyond safe technology and instruction manuals. The ideal situation is to have employees who act safely as a matter of course. This calls for organisational changes and for a change in the ‘heads, hearts and minds’ of all those concerned. It is not enough just to meet the international safety standards.

We have to create a mindset in which people: “Think first and then act, feel free to confront each other, and ask each other for help rather than going their own way. Come up with ideas about how to do things better, take care of each other and have the courage to accept responsibility”. In the years to come our safety policy will focus on improving leadership and behaviour that is more conducive to safety at work.

Wagenborg employs various generations of people. A manager plays an important role in creating a culture in which the various characteristics of these generations are treated with respect and are joined together. A culture in which an entrepreneurial spirit, partnership, problem-solving and safety are taken seriously. It is not for nothing that these are the competencies that characterise our personnel and contribute to Wagenborg’s efficiency and resilience.

5 In this report we set out what we have done in 2013 to achieve and retain a strong, versatile and efficient organisation with sustainably employable personnel.

E. Vuursteen

G.R. Wagenborg

DEVELOPMENTS “BEING RESILIENT CALLS FOR AN UNDERSTANDING OF THE UNCERTAINTIES AND LIMITATIONS OF OUR FIELD OF WORK”

8

DEVELOPMENTS

The global slowdown in economic activity resulted in a moderate capacity utilisation level. We are assuming that the economy will gradually normalise in the next few years. Improving confidence will lead to an upturn in international trade.

Wagenborg Shipping faced a freight market that failed to live up to expectations. There was an upturn in the autumn following a poor summer. We were unable to sell enough vessels because the banking crisis made it difficult for buyers to obtain financing. The completion of new vessels increased the size of our fleet to 186 seagoing ships with a cargo capacity ranging from 2,000 to 23,000 tons. With an average age of 6.5 years our fleet is one of the world’s youngest.

In 2013 Wagenborg completed a project for the construction of an offshore wind park off Borkum. The project was jointly carried out by Stevedoring, Sleepdienst, Nedlift and Agency. Offshore wind remains an important future technology in which we set out to offer our joint services. Wagenborg Bulk Terminal was able to make reasonable use of its capacity by storing sugar. Wagenborg Sleepdienst achieved good results, partly through its activities in the offshore wind industry. The crew tender “Waterlines”, which operates in the North Sea from Helgoland, was added to the fleet for the summer.

Koninklijke Niestern Sander (KNS) delivered the final 12,000 ton ice class multipurpose vessel. KNS has concluded a joint venture with companies involved in the mobilisation and demobilisation of jackup/platforms for the offshore wind industry. This joint venture offers mechanical and electrical engineering and maintenance services. For that purpose there is workplace at the Wagenborg Stevedoring location at Eemshaven. As well as maintenance they work on larger tasks, such as positioning helicopter platforms.

The ratio of 60% permanent and 40% flexible contracts operated over the years for newbuild and repair projects has enabled KNS to maintain continuity for its own personnel in a period in which few orders were placed. This is important to the long term because it ensures that the accumulated workmanship is retained.

That workmanship is vital to the continuity of KNS. When the crisis presented itself Wagenborg Nedlift tailored its policy to difficult years. The policy was aimed at holding onto turnover and focusing on niche markets with a high quality requirement. We are concentrating less on economy-sensitive markets such as building. Investments for replacement of equipment are geared to this in order to put capacity more closely in line with market demand. We have decided to buy larger cranes in response to the cutthroat competition in the “small cranes market”.

9 Costs have been saved by working more closely in partnership with other Wagenborg companies in the procurement area. After enjoying many years of benefit from the building of power plants and wind farms at Eemshaven, we are now seeing a decline in this area. On the other hand, work for the oil and gas industry is on the up. Together with Reining, Nedlift has introduced a service for the oil and gas industry that supplies equipment for locations, complete and “just in time”. This makes it possible to work more efficiently and safely in what are often confined locations. Nedlift has performed virtually entirely in keeping with its prognosis, which is no mean feat considering the market conditions.

Reining faced problems not only with the crisis, but because we were unable to invest sufficiently in the lorry fleet. The result was helped by smaller write-downs, but it is important to Reining’s future that investments are resumed. For that reason, we have joined the new management in looking for ways of giving Reining a stronger foundation. The integration of Transport and Forwarding is a case in point. Reining will also be focusing more sharply on the volume cargo container concept. Special attention is being paid to warehousing because some of one of our most important customer’s activities will be stopping at the end of 2014. In the meantime, good relationships have been built up for alternative warehousing activities. Reining will be carrying out a reorganisation based on the product/market combination. We have discontinued warehousing in Tilburg, forwarding, and intermodal transport from and to Scandinavia.

The division least affected by the crisis was Wagenborg Passagiersdiensten (WPD). The passenger service to Ameland and Schiermonnikoog has proved resistant to cyclical fluctuations. There are some difficulties with the departure times because the extensive meandering and dredging are causing more delays. Both tourists and the islanders are suffering from these difficulties. The problem is an important point of discussion with the government.

Wagenborg Offshore had fewer vessels under contract in Kazakhstan. The floatels were difficult to rent out because no vessels were able to get close to them because of the risk of toxic gas that may be released during the first phase of production. We are setting out to keep as many units under contract as possible, also in other regions if possible. The gap between the first and second phases gave us no choice other than to adapt the organisation. This affects employees in Kazakhstan and a limited number in Delfzijl.

Wagenborg Offshore has concluded a contract with NAM/Shell UK for the deployment of what is known as a Walk2Work ship. This ship will be used to carry out maintenance on the small oil rigs in the North Sea from 2015 onwards. This activity is in keeping with intention to spread the risks geographically as much as possible. The ship is being built by KNS and features a wave compensating system that prevents the gangway from going up and down with the waves. This makes it possible for people to move safely to the oil rigs.

10 Wagenborg Foxdrill operates in several countries. The number of rig moves went down in Europe and up in the Middle East and Africa. Our establishment in Dubai has given us an extra spearhead for attracting orders in the Middle East, where we also market our knowledge in the form of manuals for the assembly and finishing of drilling rigs. The aim is to expand by 4 to 5% in the next few years. Foxdrill has set up an inspection activity with Nedlift in Schoonebeek. This location has now grown from being a 3-man to an 8-man operation. There are plans to open a new Foxdrill establishment in Schoonebeek in due course.

Wagenborg Oilfield Services (WOS) concentrates on supplying a large number of services to the oil and gas industry. These services range from the deployment of ‘fishing tools’ that are used to fish material out of the drilling well and to loosen drilling pipes that have got stuck at great depths to the supply of drilling pipes with the right specifications to carry out overhauls with the correct screw thread. WOS plans to expand in terms of locations and its scope. Wagenborg Oilfield Services (WOS) has opened a second location to the east of the Urals.

Last year we held intensive consultations both with the personnel representation bodies and works councils and the Supervisory Board. In the current conditions less pleasant measures are unavoidable. We do however believe that the worst of the crisis is behind us and are hoping for better times.

9

AVAILABILITY “AN EFFICIENT AND RESILIENT ORGANISATION NEEDS SUFFICIENT TALENT”

14

AVAILABILITY

The availability of sufficient qualified personnel is a precondition for guaranteeing the continuity of our service safely and profitably and at a high level of quality. In this chapter we set out our activities in the areas of strategic staff planning, labour market communication and personnel turnover as a contribution to the availability of sufficient personnel. The availability of personnel is also affected by the number of permanent and temporary employment contracts.

Strategic staff planning Strategic staff planning is needed to gain a clear understanding of the availability of sufficient good quality employees. In 2012 we made a start with operating the same staff planning method at all Wagenborg companies by means of an in-company Strategic Staff Planning course for HR personnel.

We already have a clear image of the quantity aspect:

Numbers employed per division

2010

2011

2012

2013

Wagenborg Shipping

1442

1473

1557

1651

Wagenborg Offshore

272

421

401

304

Wagenborg Passagiersdiensten

119

103

115

120

Wagenborg Reining

618

625

612

591

Wagenborg Nedlift

436

405

469

478

Koninklijke Niestern Sander

203

181

176

173

3090

3208

3330

3317

Total

At a number of companies we have made a start with registering our staffing levels by means of the Human Resource Performance & Potential Planning method (HR3P-method). This registration method will contribute to being able to promptly replace employees retiring from 2015 onwards. The performance and potential of employees is summarised in an HR3P code.

In view of the slowdown in the growth of the fleet and - accordingly - the reduced need for seafaring personnel compared to previous years, we placed the emphasis more on developing the quality of seafarers. The key question was this: how can seafarers do things better, smarter, faster and less expensively? At the Crewing department 3 people have been dedicated to gaining a clearer impression of the quality and performance of seafarers by paying more visits to the ships. Their findings are being translated into actions aimed at improving quality.

To generate more turnover it has been decided to offer the specific knowledge and experience among the crews to the shipping companies not affiliated with Wagenborg. We are planning to extend this further in 2014. This means that the Crew department will have to do more acquisition.

15 At KNS there are also plans to use HR3P to gain a clearer understanding of who has the potential to grow into a managerial role. KNS has a preference for internal promotion rather than outside appointments. The later age of retirement means that it is important for KNS to keep its employees sustainably employable.

The replacement of crew members leaving the company is planned about 3 years in advance at WPD. Wagenborg Reining’s staff planning is aimed at meeting the changing demand of a ‘lean & mean’ product/ market organisation. Wagenborg Nedlift made a start with HR3P in 2013, and this has been translated into a long-term plan based on a number of scenarios.

Labour market communication Our strategic staffing plans and labour market developments lead us to believe that there will be labour shortages in the years to come. We are always on the lookout for new colleagues to replace the ones leaving us, and we have professionalised our labour market communication policy to meet the increasing demand and declining supply on the labour market. We maintain structural contact with the internal and external labour market in order to recruit staff. We have also launched a new career portal - www.careeratwagenborg.com - to improve our image as an employer and maintain contact with potential employees.

This website enables us to project a good image as an attractive employer offering interesting jobs. The content of the website is based on in-depth labour market research and the valuable input of our personnel. Also, the most innovative insights are applied to the creative and technical realisation. The smartest technology currently available is used to attract the best international candidates.

A new corporate website, which is even more in line with our “Sign of Solutions” philosophy, has also been launched, Our website is having a favourable effect on our image as an employer. This has led to a growing number of visitors and has made it possible to fill our vacancies even sooner.

16 Staff turnover Wagenborg South East Asia opened an office in Manila in May. The recruitment and selection activities for Asian crew members are centralised here. An office in this region forms a base for the further commercial development of Wagenborg.

The table below shows the staff percentages for each division and nationality.

Numbers employed per nationality

NL

EU

PAN EU

Wagenborg Shipping

35,4%

6,2%

18,2%

39,7%

0,5%

100,0%

Wagenborg Offshore

26,3%

0,7%

72,4%

0,3%

0,3%

100,0%

Wagenborg Passagiersdiensten

ASIA REST

TOTAL

100,0%

0,0%

0,0%

0,0%

0,0%

100,0%

Wagenborg Reining

27,1%

72,4%

0,5%

0,0%

0,0%

100,0%

Wagenborg Nedlift

90,6%

9,4%

0,0%

0,0%

0,0%

100,0%

Koninklijke Niestern Sander

100,0%

0,0%

0,0%

0,0%

0,0%

100,0%

Total

46,8% 17,4%

15,8%

19,8% 0,3%

100,0%

EU staff come from Belgium, Germany, Great Britain, Sweden, Portugal, Spain, Italy, Hungary, Romania, Slovakia, Estonia and Lithuania. The PAN EU employees are from Serbia, Ukraine, Russia and Kazakhstan.

Most of our Asian employees are from the Philippines, Indonesia, Vietnam and China. In 2013 there was 1 employee from India, and all of the other colleagues came from Canada, Cape Verdi, Tunisia and Turkey.

The table below shows the age structure for each division.

Numbers employed by age

<25

25-34

35-44

45-54 55-64

>65

TOTAL

Wagenborg Shipping

9%

29%

28%

23%

10%

0%

100%

Wagenborg Offshore

9%

35%

26%

21%

9%

0%

100%

Wagenborg Passagiersdiensten

5%

14%

28%

28%

24%

0%

100%

Wagenborg Reining

3%

18%

35%

29%

14%

0%

100%

Wagenborg Nedlift

9%

23%

28%

22%

17%

1%

100%

Koninklijke Niestern Sander

5%

14%

19%

31%

30%

0%

100%

Total

8%

26%

29%

24%

13%

0%

100%

Op basis van deze gegevens kunnen we de vervangingsvraag door pensionering voorspellen. Bij de bedrijven This information makes it possible for us to predict the need to replace retiring employees. At the companies in Delfzijl there was a recruitment level of 6.8% and a departure level of 7.1% (1.9% involuntary). We have decided not to include the staff turnover figures for seafarers. Since the contract expires when foreign seafarers sign off, the percentage of this group of employees that rejoins us after a period of leave - the re-hire percentage - is more important. A high re-hire percentage is a clear indication of the sustainable employability level. Last yearâ&#x20AC;&#x2122;s average re-hire percentage for the fleet was 87%. In other words, 87% of the foreign seafarers who signed off rejoined after taking leave.

17 To guarantee the availability of sufficient Dutch seafarers in the figure, students of the nautical college in Vlissingen are given the opportunity spend a week at sea on a roll-on roll-off ship. This short placements make it possible for the college to optimally prepare its students for their six-month placements. As well as the work they do, they learn a lot about life on board and about working with people from different cultures. Four students and one placement supervisor go on each short placement.

Since 1 January 2013 Wagenborg Nedlift has conducted the transport activities for the Northern region of EQin (Equipment Industrial Intelligence), for which 7 drivers were taken on by Wagenborg Nedlift.

KNS had a stable staffing level last year. A total of just 5 people were recruited and 4 left the company. The number of employees we need to have available depends on the number of assignments we receive. For that reason it was important that Wagenborg Offshore was awarded a contract for the building and operational management of a Walk2Work ship. The building of this unique vessel will provide the shipbuilding division with work until 2015.

Staff recruitment at Foxdrill takes place mainly by word of mouth. This attracts the right candidates, people who are a good match for Foxdrillâ&#x20AC;&#x2122;s culture. The Dubai location has an effect on the staffing requirement at Wagenborg Foxdrill.

The activities of the transport department in Tilburg have been transferred to Kolham and we have discontinued Reining Forwarding. SCA stopped using Reining for most of its warehouse activities from the end of 2014.

Reining had to be adapted in terms of its quantity and quality to changing market conditions. The indirect support staff had to be reduced by 30%. A new social plan will have to be negotiated for this reorganisation, which is intended to result in a â&#x20AC;&#x2DC;lean & meanâ&#x20AC;&#x2122; organisation in 2014. The plan operated for a previous reorganisation was no longer financially feasible. The reorganisation was intended to transfer employees from job to job. This resulted in some cases in internal transfers. Other employees affected by the reorganisation were helped to find new jobs. Wagenborg Reining has not taken on any employees in the Netherlands owing to the reorganisation. When recruiting Hungarian drivers special attention is paid to their driving and language skills and on reducing undesirable staff turnover.

A change has been made to the composition of the Management Team at WPD. The staffing level of the telephone service has been extended by 85% to place availability more closely in line with customer requirements.

Wagenborg Nedlift had 25 vacancies, 15 as replacements and 10 as additions. Nedlift has made a start with a selection & development assessment for managerial staff from higher professional education level upwards.

18 Permanent/flexible staff ratio The ratio between the number of permanent and flexible contracts tells us something about the longer-term availability of personnel. Flexible employment contracts make it possible for us to flexibly gear the number of employees to the amount of work, which enhances our resilience.

Numbers employed by type of employment contract

Permanent

Temporary TOTAL

Wagenborg Shipping

58%

42%

100%

Wagenborg Offshore

94%

6%

100%

Wagenborg Passagiersdiensten

83%

17%

100%

Wagenborg Reining

95%

5%

100%

Wagenborg Nedlift

80%

20%

100%

Koninklijke Niestern Sander

97%

3%

100%

74%

26%

100%

Total

Because of the current uncertainties, temporary contracts at Wagenborg Shipping are not automatically converted into permanent ones. All foreign seafarers in the fleet have a flexible employment contract. At Wagenborg Offshore we operate annual contracts in Kazakhstan. Foxdrill offers a permanent contract to employees who perform well after three six-month contracts. Foxdrill uses the services of approximately 20 self-employed people for specific activities. A lot of attention is paid to relationship management to maximise the rehire percentage of self-employed people.

KNS operates a permanent/flexible ratio for newbuild and repairs of 60% permanent and 40% flexible contracts. Owing to the reduction in the number of orders barely any use has been made of flexible employees.

In 2014 WPD is planning to adapt all of the flexible contract types operated up to now in accordance with changing legislation to the wishes of employees and management.

Owing to the loss of most of the SCA business at the end of 2014, the warehouse will no longer be used 24/7, which will do away with the need for shifts.

Wagenborg makes full use of the options provided by the Dutch Flexibility and Security Act. There is a growing trend in the wish of operational personnel to work part time. We are increasingly moving away from the employment of fixed crane operators and drivers per crane and vehicle. This also has to do with the fact that some cranes are used continuously on the request of new customers. Temporary workers are used only in the event of staff sickness and/or peak periods. Wagenborg Nedlift also uses the services of the self-employed.

17

EMPLOYABILITY WHETHER PEOPLE GET THE MOST OUT OF THEIR TALENTS IS DETERMINED BY WHAT THEY CAN, MAY, WANT AND DARE TO DO. OPTIMUM EMPLOYABILITY IS DETERMINED BY WHAT THEY CAN AND MAY DO.

22

EMPLOYABILITY

Our personnel policy is aimed at recruiting and retaining healthy, motivated and competent employees who contribute sustainably to our organisational targets. This sustainability employability is not the responsibility of Wagenborg alone, but also of every employee individually. Our aim is to employ people who live healthily and work safely in a setting in which professional development and promotion are encouraged. We are convinced that this helps employees to remain pleasantly employable so that they can eventually enjoy their well-earned retirement. In this chapter we set out the activities that contribute to the more sustainable employability of our personnel.

Safety at work and healthy living Health and safety are preconditions for long-term viability. We pursue an active policy in the health and safety area. But despite this policy we suffered a number of serious industrial accidents that came as a big shock to us all in a short time span. Wagenborg is a family firm where we want to prevent unsafe work situations for all of our ‘family members’ and maintain our reputation as a good employer and a reliable, professional partner for our customers. Also, the increasing amount of work for sectors with a high HSEQ (Health, Safety, Environment and Quality) standard makes it even more necessary to act professionally in this area. After all, we all want to return safely home at the end of our day’s work and continue the work with the same team when we arrive next day.

We have established through internal research that the extent to which HSEQ is experienced differs between the various Wagenborg companies. Because we successfully profile Wagenborg in this market as a single logistics service provider, we are more and more likely to be regarded as a single company. The success of the Sign of Solutions concept means that we can also influence our image together. Where positive aspects are concerned, this will make us stronger. But if something less positive happens in one division this affects us all.

Wagenborg is being held accountable for its actions more and more as a whole by its employees, customers and other stakeholders.

This is one of the reasons for doing a number of things differently in the safety area. That is not to say that we’ll be letting go of what we’re best at: our entrepreneurship. It is not our intention to frustrate sound initiatives but to enhance alertness in order to prevent accidents. This is all playing out under the motto: ‘FIRST THINK, THEN ACT’.

Managerial staff have a key role in bringing about this change in mindset. The challenge we face is to combine our entrepreneurship with acting more prudently. We jointly consider how we can improve our company’s performance in the HSEQ and make agreements on how to go about it. Our shared point of departure concerning our HSEQ ambitions is laid down in a policy statement.

23 We are aware that taking such a statement as a starting point is a good thing, but that a safety-oriented mindset is decisive. The challenge in the years to come is to continue putting the content of the statement into practice. This implies that if everyone truly commits to the policy statement, it will have to put into practice.

There are many good examples that others can learn from within the organisation. Keeping each other informed of what we are doing prevents us from having to constantly reinvent the wheel. We will be taking a systematic approach to this in order to raise our HSEQ behaviour to a higher level. There is only any point in having regulations, instructions and courses if people are willing and able to make use of them in their dayto-day work.

This calls for a future-proof approach to work, characterised by: • ‘Setting a good example’; • ‘First think, then act’; • ‘Having the courage to confront each other’; • ‘Being allowed to make mistakes, report them and learning from them’; • ‘Being able to put forward ideas about how things can be done better’; • ‘Taking care of each other’; • ‘Taking responsibility’; • ‘Keeping to agreements’; • ‘Helping each other rather than trying to do everything ourselves’; • ‘Communicating openly with each other and making this visible’ This behaviour, combined with a clear HSEQ policy is of decisive importance to getting good results. The corporate HSEQ team, in which managers from all divisions are represented, closely monitors the results and progress and reports periodically to the holding management.

Prevention at the workplace The physical workload, work with computer monitors and repetitive movements are addressed by means of information, workplace inspections and adaptations. We regularly provide information and training courses on the correct work posture. Attention is also paid to the burden caused by climate, noise and vibration.

Only 2 employees have been granted an invalidity benefit since 2006. This is well below the national average.

To limit long-term sickness absence and encourage sustainable employability, absence coordinators quickly and effectively deploy specialist medical expertise in consultation with the company doctor. We make use of our own networks and the financing facilities offered by health insurance. All employees living or working in the Netherlands are required to take out basic medical insurance. This insurance covers the costs of a general practitioner, hospital and pharmacy, for example. Supplementary health insurance is not compulsory.

24 In 2013 health insurers focused more on price than content. This leads to the risk of employees opting for a cheap policy offering limited cover. An employee with an occupational disability may therefore decide not to see a physiotherapist because the costs will not be covered.

This decision affects the duration of the period of occupational disability and/or the employee’s sustainable employability. Wagenborg takes the view that the availability of healthcare and solidarity between young and old, healthy and less healthy is not open to compromise. For that reason we have taken out a group health insurance policy: the “Wagenborgpolis” Participating employees are not saddled with a € 350 deductable and are offered a very broad package at a competitive price. This lowers the threshold for necessary care in the event of occupational disability.

We work all over the world at great heights, with heavy-duty equipment and sometimes dangerous cargoes, under poor weather conditions and during irregular hours. Our work calls for a lot of attention to the HSEQ aspect. The biggest risks are taken by our direct personnel (79% of the total) that mainly does the hands-on work. The table below shows the ratio of direct (operational) and indirect (support) personnel.

Percentage of direct and indirect personnel per division

DIRECT

INDIRECT TOTAL

Wagenborg Shipping

82%

18%

100%

Wagenborg Offshore

69%

31%

100%

Wagenborg Passagiersdiensten

60%

40%

100%

Wagenborg Reining

81%

19%

100%

Wagenborg Nedlift

78%

22%

100%

Koninklijke Niestern Sander

84%

16%

100%

79%

21%

100%

Total

Until recently the HSEQ policy at Wagenborg Nedlift was primarily incident-driven. Outstanding safety performance calls for more than applying rules or ticking off checklists. At Wagenborg Nedlift we have made a start with a project concentrating on managerial staff, because they exert a strong influence over the steering and coaching of hands-on workers. During this project certain behaviour on the part of managerial staff was evaluated. During one week the key aspect was the provision of (positive) feedback, and another was spent visiting work locations to speak to employees. The safety breakfasts at which managers and employees talked about safety issues were warmly welcomed. The initial evaluations of this project show that operational employees appreciate the new approach. There is more interaction and openness, which is improving mutual cooperation. At the beginning of 2014 a joint assessment will be carried out to decide how to embed the most successful activities. This will ultimately lead to an improvement in safe behaviour. Because the work at Nedlift is becoming increasingly international, personal safety is gaining in importance. For that reason we are installing gas detection systems to protect our vehicles against robberies.

25 Following an evaluation KNS has purchased better Personal Protection Equipment (PPE). At Wagenborg Foxdrill safe behaviour is addressed directly during recruitment and selection and the introduction of new staff.

The networks of our own employees are used as much as possible for recruitment.

They are able to make an accurate assessment of whether a candidate is sufficiently safety-conscious. Safety is continuously addressed during education & training and performance appraisals. Foxdrill uses a “practice tower” at its own location for practical training. The training is given entirely by Foxdrill’s own instructors and under its own management.

For the fleet, too, the emphasis will be placed on the personal development of seafarers and a more conscious approach to safety in 2014. At WPD safety at work is stimulated by means of scenario training on board. On the initiative of the personnel a committee has been instituted to evaluate the industrial clothing used at WPD for its practical applicability and suggest improvements to it. Employees should always feel confident and safe at work. Confidential counsellors have been appointed for each company to deal with psychosomatic problems such as pressure of work, bullying, sexual harassment and aggression.

Prevention at home Good health is important to having sufficient energy both during and after work. Good health has to do with age, eating habits, regular exercise and relaxation. We offer employees examinations and preventative medical examinations to make them more aware of their own health and what they can do about it themselves.

At Nedlift a work experience section has been added to the Periodic Medical Examination, and the employee’s health is addressed during the job appraisal. At WPD, Shipping and Foxdrill employees can make use of a company fitness facility. At Shipping and KNS participation is encouraged by a tax benefit. Wagenborg Nedlift encourages participation by paying the contribution if the company doctor establishes a high BMI. To encourage people to take more exercise employees of Wagenborg Shipping, Stevedoring, Sleepdienst and KNS are given the option of buying a bicycle with a tax benefit. We have also started at Weight Watchers@ Work programme at Wagenborg Shipping and Reining. This programme helps staff to eat in more balanced and healthy way and to take more exercise. Fourteen weekly meetings have been held at the office under the supervision of a coach. Participants were able to register their food consumption and activities online and monitor their weight. The 38 participants together lost about 250 kilos. Finally, we make it possible to take part in performance races such as the 4Mijl van Groningen and the city run in Appingedam.

Company emergency service Unfortunately there are sometimes accidents at our company. For that reason there are certified company emergency response team members at all of our locations, who in the event of emergencies provide expert assistance until the professional emergency services arrive. Medical care is provided on board by the first officer. All other seafarers have knowledge about company emergency service matters. The members of the emergency response teams regularly hold exercises. There are company emergency plans at all work locations,

24

27 and accidents and near-accidents are registered. Wagenborg Foxdrill did not have any lost time accidents.

Wagenborg Kazakhstan achieved a safety record: 1.5 million hours worked without a lost time accident. KSN will be placing the emphasis on safe behaviour based on the proposition: “every accident is one too many”.

Sickness absence The success of our corporate care policy is underlined by the fact that the sickness absence level for all companies divisions together was just 1.9%. That is half the average throughout the entire Transport and Logistics sector. WPD had a higher level of absenteeism in 2013 owing to more long-term sicknesses. This sickness absence was not work-related. Wagenborg Offshore in Kazakhstan has a low short-term absence level, not least because people receive only 10% of their salary when off sick. Despite having a busy year, Foxdrill had only a small number of people reporting sick, including some long-term (not work-related) cases.

Sickness absence

%

Average duration

Report frequency

Wagenborg Shipping

1,1%

16,1

0,23

Wagenborg Offshore

1,5%

5,0

0,36

Wagenborg Passagiersdiensten

4,4%

20,5

0,57

Wagenborg Reining

2,9%

7,6

0,58

Wagenborg Nedlift

3,3%

10,2

0,83

Koninklijke Niestern Sander Total

6,0%

8,0

1,89

1,9%

12,2

0,49

Paying attention to sick employees is important and is greatly appreciated. In some cases people are so committed that we have to put off the sick employee’s return to work. The purpose of this is to prevent more serious problems caused by people resuming their work too soon. Reining’s absenteeism level was similar to that in previous years. At Nedlift there was less absenteeism than in previous years, which can be attributed to more emphasis being placed on the role of managerial staff in prevention.

Performance Presenting a challenge, addressing talent and showing appreciation are conditions that contribute to a long and successful career. These aspects are addressed during performance appraisals.

The method used for job appraisals at Wagenborg has been improved. In the fleet, the ships’ captains are appraised for specific competencies by a crew manager, superintendent and shipper. The result of this appraisal is discussed with the captain. At Wagenborg Sleepdienst the interviews with office workers are based on competencies. The people working on board the tugs and forwarding staff in the harbours are not yet been appraised according to competencies.

To increase employability and maximise efficiency we are always looking for ways of combining and sharing job-specific knowledge. That was our reason for taking part in the “Shore Support” project, in which the possibility of providing technical support from ashore was looked into. A new monitoring system makes it

28 possible for us not only to detect faults on board, but also to predict them. We have already for some time been receiving data about tank levels, engine parameters, incoming alarms, etc., but we now have a new system that also gives us detailed information about the turbo compressor and shaft generator.

Monitoring this data in the long term makes it possible for us to detect reductions in performance and predict faults. Maintenance is deferred until a component reaches 98% of its break curve rather than 60-70%. This results in huge cost savings. There is a serious manpower shortage in shipping. That makes working with different crewing levels an attractive option. This is made possible by the fact that the effective communication facilities do away with the need for ships to be fully self-supporting. The current crew composition is outdated and is getting in the way of the efficient operation of the ships. We are planning to work with self-trained engineers on board, guided from ashore by an experienced chief engineer. This chief engineer can oversee several ships at a time.

The plans to introduce competency management at Wagenborg Offshore have been temporarily postponed on the advice of the Works Council. Appraisals based on job-specific competencies are only carried out at Wagenborg Foxdrill in the Offshore division. Once the evaluation has been completed, a distinction will be made between direct and indirect personnel in job and performance appraisals in 2014. For direct personnel the emphasis will be placed more on expertise.

Job specific-competencies are being added to all job descriptions at the WPD office. The managers concerned have been given a training course on â&#x20AC;&#x153;competency-based interview techniquesâ&#x20AC;?. The office staff and employees of Wagenborg Plaza have had an information meeting at which they were given tips on how to exert more influence over their performance appraisals.

At Wagenborg Reining the job descriptions of some middle-management roles have been adapted by the management to the new organisation under consultation with those concerned. Wagenborg Nedlift also operates competency-based job descriptions. There are plans to continue working on them in 2014.

KNS also holds job and performance appraisals based on competencies. KNS operates the same definitions as the other divisions, with the addition of the KNS-specific expertise requirements.

Personal development The chances of a long-term period of employment and sustainable employability are improved by giving employees opportunities for personal development. Job satisfaction and making optimum use of the available knowledge and experience are secured by offering career prospects. All employees have talents. Successful personal development depends on whether people are willing and able to develop their talents. They also have to be given the space to develop them. We at Wagenborg do what we can to facilitate this, provided that the employees are willing and able to move ahead. To encourage discussions about careers we facilitate mutual contacts such as corporate consultation between job positions, career interviews with HR and internal network meetings, such as Wagenborg Young Management.

29 As well as renting cranes customers are increasingly asking for a complete package, such as the provision of complete hoisting teams. Wagenborg is responding to this market demand by providing the in-company course “Hands-on foreman”.

HR makes it possible for employees with questions about career prospects to take online tests. These tests provide people with information about their own interests, talents and aptitude. Being given feedback makes it possible for people to compare their self-image with how others see them. Differences and similarities are highlighted for each interest and competency. The result is an overview of competencies, subdivided into core competencies, development competencies and stressors. Development competencies are competences that someone says they are interested in but are not yet sufficiently developed. Stressors are competencies that somebody is good at but does not like doing. If there are too many stressors in someone’s work, this affects job satisfaction and may cause stress. Avoiding stressors is important to remaining sustainably employable. The test results are discussed with a career advisor and translated into practical agreements. Six HR officers at the various divisions have completed an internal career coaching course.

Personal development is something that can be requested by the employee himself or the employer. The latter applies to courses needed to meet statutory requirements. At WPD sailors follow a study programme via the “Zoute Veere”, which makes it possible to gain promotion to engineer or navigating officer.

The Wagenborg Management Development programme has been postponed. Office managers at Wagenborg Shipping have followed a course on conducting competency-based performance appraisals. A number of seafarers have been given the opportunity to gain the necessary knowledge and experience concerning Dynamic Positioning. They are prepared for employment on the Walk2Work ship by means of education, training and work experience placements with third-parties. Two captains from our own fleet have been selected to prepare the crew training. In 2014 the emphasis in the fleet will be placed on safety at work.

Managers at KNS are having to supervise more instead of delegating because employees are becoming less independent as a result of the departure of experienced employees and a decline in the expertise of younger people.

At Foxdrill, in addition to courses aimed at retaining certificates, a lot of attention was paid to personal development in the area of new technologies. Foxdrill works together with Nedlift in the area of internal safety training courses. A “test tower” has been built at the location for practical training. External parties also want to make use of this facility.

30 At Reining the management provided the middle-managers with individual coaching in order to connect up more closely to the product/market demand and identify key performance indicators.

WPD needs to improve its professionalism in the area of change management. This is being tackled in 2014, with the primary aim being to improve internal communication in order to overcome resistance to change.

The training and development at Nedlift were aimed at meeting the stricter quality standards of new customers (VCA Petrochemie). On the operational side in particular drivers and operators need to think more internationally and less regionally. Employees spend more time than average on the road and spend less time at home in the evenings. The ratio between international and regional work for heavy transport is now 80/20. Some drivers have been assigned to different vehicles to make the driver a better fit for the specific vehicle and work area.

Promotion Self-development is important to the motivation of employees and their ties with Wagenborg. This process is supported and accelerated by competency development, career counselling and coaching. This enables us to make more efficient use of current and future talent. Promotion is not a privilege or a luxury, but a must, both for Wagenborg and the individual employees. Promotion results in a true ‘win-win’ situation. All participants in the corporate trainee programme have been promoted to regular job positions. No new corporate trainees are currently being taken on owing to the current economic conditions. At Wagenborg Shipping there was an office staff promotion percentage of 6.1%. Of the 1315 seafarers, 88 were promoted to a higher position, which amounts to a promotion percentage of 6.7%. Fifteen employees have taken part in online ‘career tests’ with a view to advancing their careers.

Kazakhstani employees are motivated primarily by pay rises. This can only be achieved through promotion to a higher rank or job position. Promotion is also important at Foxdrill because lateral entry is virtually impossible in this professional field. People’s ambitions are noted during performance appraisals. Employees are keen to improve their workmanship.

At WPD 3 employees were promoted, 2 of them temporarily to captain’s positions. As a result of the reorganisation some employees at Reining were promoted to a different role, and there were also some demotions. The introduction of HR3P has identified promotion candidates at Nedlift. Putting managerial staff more frequently in contact with each other creates internal networks, which makes it easier to find out who is where and what they can do.

31 Stage of life-conscious personnel policy By consciously taking account of their stage of life employees remain fit and concentrated, which keeps them employable for longer and more effectively. Knowledge, experience and competencies are retained because fewer employees leave or ‘drop out’ owing to sickness or other causes. Employees are in part responsible for their own careers and are kept maximally and flexibly employable because the conditions for permanently developing knowledge and competencies are created.

The employee’s knowledge and capacity is optimally used and retained for Wagenborg. At Nedlift there was a perceivable trend in which there was a difference in the number of overtime hours worked depending on the stage of life. We are looking into ways of keeping employees employable for longer with part-time pensions.

There are also examples of job positions being adapted to the employees stage of life and fitness. We are also following the statutory regulation in the area of care leave.

Employees of Wagenborg Foxdrill are spending more time at home on average each year. We are working on limiting the duration of secondments to no more than 3 weeks in order to secure sustainable employability.

Longer secondments have implications for the composition of teams. Wagenborg Reining has decided that employees should not hold a planning role for more than 10 years. After that they should be given a different role or position.

An example of the success of our sustainable employability policy was last year’s 50th work anniversary of Ben Vogelzang. A 50-year period of employment is something special, even for Wagenborg. This means that Ben has experienced no fewer than 3 generations of Wagenborg and Vuursteen. That means that he has become part of our history. In 2014 he will be continuing to work as a navigating officer at Wagenborg Sleepdienst, not least because he still enjoys life on the water. Job satisfaction is an important aspect of mutual ties and commitment in the organisation and contributes to sustainable employability. We have various staff associations that regularly organise activities. We are also seeing more and more spontaneous initiatives at departmental level. An example of such an initiative was the “Reining revival reunion”. Former colleagues organised a reunion for everyone who works or has worked for Reining. This resulted in a successful event with more than 200 people taking part. This way former colleagues remain involved with Wagenborg, even in the stage of life when they are no longer working.

MOTIVATION “TALENT CAN ONLY FLOURISH IF THE EMPLOYEE IS ACTUALLY WILLING AND ABLE TO MAKE THE EFFORT”

34

MOTIVATION

Commercial success is only possible with motivated and committed employees. We encourage this by organising leadership and introduction programmes with an active contribution made by the management. We also do this by means of mutual consultation and sharing knowledge at interdivisional meetings. Knowledge is also shared through various forms of consultation, newsletters and intranet applications. Finally, motivation can also be affected by employment conditions. That is why this chapter also addresses the most important developments concerning wages and pensions.

Introduction A good introduction forms the basis for long-term commitment and motivation. New employees are given an introduction specific to where theyâ&#x20AC;&#x2122;ll be working at the location. This introduction meets the requirements of various quality and safety standards. Corporate introduction days have also been held for people who joined the company in 2013. During these days they were given the opportunity to get to know each other and the Wagenborg approach: how do you go about solving problems and how do you operate safely and enterprisingly?

Leadership Leadership makes an important contribution to safe and sustainable employability. The purpose of sustainable employment is healthy, motivated and competent employees who contribute optimally to a resilient and learning organisation. Leaders are motivators and stimulators, the link between employees and a resilient organisation.

A precondition for playing a leadership role is for the manager to know himself (Leading yourself). Living and working authentically and according to personal strengths is vital to success. Leaders must be able to take personal risks and to reflect on their own actions. They must continuously ascertain which approach is effective in a given situation and which contributes to sustainable employability. Leaders achieve success by not responding emotionally to situations but by consciously choosing an effective approach.

In the role as the link between personnel and the organisation leaders have the task of creating the conditions for the safe and sustainable employment of employees (Leading others). These conditions include showing appreciation, providing support and challenges and having an eye for talent. Appreciation is expressed by giving employees confidence, freedom and responsibility. There is room for challenges: learning new things in a setting where it is acceptable to make mistakes (provided that you learn from them) and you are supported by your manager. Thinking about and shaping the development and utilisation of talent. Leaders use the provision of future prospects to achieve the sustainable employability of their employees.

35 Managing and achieving organisational targets by leading themselves and others. This enables them to set changes in motion within and outside of the organisation and to steer the process (Leading business & change).

Leaders get results by cooperating with others and are able to make connection beyond the boundaries of their own organisation division. They put the interests of the organisation before their own. By utilising each other’s strengths and respecting each other’s differences they go for the organisation’s long-term success. Leadership has been added as a compulsory competency for managers in order to guarantee the level of management.

There are annual coaching and development interviews with participants of the Management Development programme. Managerial officers on board are given a “People Management” course. Employees of all Wagenborg divisions under the age of 36 are entitled to take part in the meetings of Wagenborg Young Management (WYM). WYM has organised three meetings on the themes of developments in the business and personal development. The management warmly welcomed the WYM programme and has given approval for it to be continued and for work to be started on practical cases. WPD captains have followed the “Refresher Course Zoute Veere management for captains”. A practical leadership course specifically tailored to Nedlift’s operations was organised at Wagenborg Nedlift. At Foxdrill leadership development focused on developing the right mindset for safety at work. At Wagenborg Reining individual coaching was given by the managing director, aimed at ensuring that managerial staff concentrate more on talent and driving forces.

Consultation Commitment and motivation are enhanced by effective structural consultation. Developments are discussed at meetings, toolbox sessions, operations team meetings and departmental meetings. The head of department meeting has been introduced at Wagenborg Shipping with the aim of increasing inter-departmental cooperation.

At Reining the main subject of consultation was the reorganisation and its implications. Three toolbox meetings have been organised for drivers, and there have been three information meetings for office staff.

Following an evaluation Wagenborg opted for a consultative form in which there is more space for dialogue and less for a monologue by the management or the course leader. This means more meetings with a smaller composition.

The management has informed the works councils about the company-specific developments. New works councils have been instituted at Shipping, Passagiersdiensten and KNS. At KNS the works council regulations and election times have been adapted to what is usual at the other Wagenborg companies. We also have interdivisional forms of consultation in the areas of health, safety, quality, environment (HSEQ), Finance, Management Development, Sales, Procurement, Communication and HR.

36 Commitment is enhanced by distributing newsletters such as “Weekinfo” (WPD), “Niestern Sander Nieuws” (KNS) and the Wagenborg Times. Other divisions communicate about their developments using the intranet.

The intranet is intended to inform employees more quickly, irrespective of whether they are at the office, at home or on the road. The intranet is also used to offer employees online training courses.

Employment conditions Employment conditions differ between companies depending on the applicable collective labour agreement or employment conditions scheme. We set out to pay market-compliant wages, an important aspect of which involves keeping wage costs manageable. Last year there was a limited pay rise and important changes were made to the pension.

Wages and pension Wagenborg Shipping awarded a 1.9% pay rise to Dutch seafarers and 1% to other employees. As in previous years the Pensioenfonds Koopvaardij (Merchant Navy Pension Fund) decided against indexing the pension.

Indonesian seafarers have the option of making use of the “deferred savings system”.

Wagenborg Sleepdienst operates the pension scheme of Stichting Bedrijfspensioenfonds voor de Rijn- en Binnenvaart. This fund provided cover that was lower than it should have been according to the recovery plan.

That led to all pension rights being reduced by 1.5% with effect from 1 April 2013. The age of retirement has been raised to 67 and the accrual percentage to 1.57%.

Wagenborg Reining, Wagenborg Nedlift and Wagenborg Foxdrill increased wages by 1.5% with effect from 1 January and 0.5% from 1 July 2013. The employees of these divisions and those of Wagenborg Passagiersdiensten are included in the Pensioenfonds Vervoer (transport pension fund), which has also raised the age of retirement to 67. This fund has a pension accrual of 1.85%. Because the annual premium received was still not enough to finance new pension rights, the pension premium was increased to 30%. The employee’s share was 10.16%.

WPD has awarded a pay rise based on developments in the CBA salaries as published by the CBS. The CBA for the Food Industry is operated for employees working at Wagenborg Plaza. This CBA expired on 31 March 2013. No increase has been agreed for 2013.

According to the CBA for the metals and electrical engineering sector, KNS increased salaries by 1% on 1 January and 2.35% on 1 December. KNS is a member of the PME pension fund. Because the cover level was too low this pension fund had to reduce the pensions of all of its members by 5.1%.

37 On 31 December 2013 the cover level had risen to 103.8%. Because this was under the statutory lower limit of 104.3%, it was decided to lower the pensions once again by 0.5% on 1 April 2014.

Old age pension The fact that the age of retirement has been raised by an average of 2 years has given rise to many questions among employees. When can I retire, and what pension will I be given? This calls for individual advice and arrangements in the HR area, based on the principle that employees should be able to continue working in good health until they retire. This need will continue to grow in the years to come.

Life-course savings scheme The government has decided to discontinue the life-course savings scheme. It was no longer possible for employees who did not yet have â&#x201A;Ź 3000 in their life-course savings account to make any further contributions.

Employees with â&#x201A;Ź 3000 or more in their account can continue to contribute until January 2022.

In 2013 a temporary measure was also introduced to encourage people to withdraw their life-course savings.

Under this measure it was possible to withdraw the life-course savings balance and pay tax over only 80% of the balance on 31 December 2011.

Leave We are seeing a Wagenborg-wide trend in which employees are making more use of the statutory leave arrangements in order to achieve a better balance between work and private life or to set aside time for care tasks. To keep employees more flexibly available a flexible approach is taken to the extra accumulated leave, which should preferably be taken in less busy periods. In some cases a negative balance arises during the year, and this can be made up in busier periods.

Ultimately the idea is that high motivation contributes to sustainable employability. The table below shows that 1/3 of all employees have more than 5 years of service.

Years of service table

<1

2-5

Wagenborg Shipping

61%

20%

Wagenborg Offshore

13%

43%

Wagenborg Passagiersdiensten

12%

33%

Wagenborg Reining

18%

Wagenborg Nedlift

8%

Koninklijke Niestern Sander Total

6-10

11-20

21-30

31-40

>40

Total

7%

8%

3%

1%

0%

100%

27%

15%

1%

1%

0%

100%

8%

26%

8%

13%

0%

100%

52%

22%

6%

2%

0%

0%

100%

35%

19%

19%

12%

6%

1%

100%

2%

18%

15%

21%

24%

13%

6%

100%

36%

30%

14%

11%

5%

1%

1%

100%

SOCIAL COMMITMENT “WHAT WE CAN DO WITH OUR TALENTS IS DETERMINED BY OUR ENVIRONMENT”

40

SOCIAL COMMITMENT

Our transport activities have an environmental impact. We are aware of our responsibility for the environment and population. For that reason we stimulate employment for the local population in the areas where we have locations and ensure that our activities are burdening the environment as little as possible.

In this chapter we have set out a number of initiatives concerned with our care for our fellow-man and the environment.

Attention to our fellow-man www.wagenborg-store.nl - supports projects in Malawi.

The Transport4Transport foundation was established to improve transport in Malawi. What started out as a workplace for the production of bicycle ambulances has developed into an important supplier of means of transport in Malawi. From water trolley and mobile milk churn to mobile mini-shop and trolley for taking away street waste. More than 1500 bicycle ambulances have now been made.

A new Transport4Transport project involves setting up a bakery and a distribution network for bread using bread carts. Another project is the Mobile Maintenance Unit (MMU), in which someone is being trained to visit the villages with a motorcycle and tool carriage to check the maintenance status of the bicycle ambulances and carry out minor repairs.

Many of these projects are being financed by the Transport4Transport foundation. The foundation is funded to a significant extent by the proceeds of the Wagenborg Store, which sells items such as scale models of heavy transport combinations and mobile cranes of Wagenborg Nedlift. All of the proceeds of this webshop go directly to the foundation.

Orphans in Kazakhstan visit floatel and ice breaker During the New Year party children at an orphanage in Aktau were invited to visit a hotel ship and an ice breaker at the base in Bautino. The children were given a tour of the hotel ship in groups, from the bridge to the engine room and the galley. The guided tour left all of the children overawed. After lunch they were given a surprise when a ship moored alongside the hotel ship, the ice breaker Acticaborg. The children were given a tour of this ship, too. Everyone was enthusiastic and decided immediately on a career with Wagenborg Kazakhstan. Since the crew also enjoyed the day and would like to continue the collaboration with the orphanage, this will be organised more frequently. This is being kept as a surprise for the children for now.

Two Reining colleagues took part in the Alpe dâ&#x20AC;&#x2122;HuZes, an activity in which the participants raise funds individually or in a team and contribute to the fight against cancer.

41 Attention to the environment Wagenborg amply fulfils the international standards for environmental care. The key principle of our environmental management system is to continuously improve performance and prevent environmental pollution, taking account of the applicable statutory requirements.

The environmental performance of our ships is measured with the aid of what are known as Energy Efficiency Management Plans. There are periodic peaks in consumption. Everyone on board is kept informed by means of environmental impact reports. The average age of our dry cargo vessels is just 6.5 years. The ships therefore meet the most recent technical environmental requirements. We also look to reduce the emission of harmful substances and our fuel consumption. We pay special attention to consumption with various draughts, combined with a ship’s operational profile. This leads to the building of ships with unconventional hull shapes and drive concepts.

Shipyard Ferus Smit delivered the third ECO 12,000 tonner, the m.s. Volgaborg. The first ship in a new series of ECO 23,000 tonners was also delivered, the m.s. Reestborg. At just 4,500 kW, the hull shape, ECO bow and ducted propeller make this the world’s most economical ice breaker in its class.

The outstanding ratio between the cargo capacity and fuel consumption make this an exceptionally efficient type of vessel. The innovative bows perform well, especially in bad weather. The International Maritime Organisation (IMO) also has requirements for raising the efficiency of ships. The Energy Efficiency Design Index forms part of this. The index determines the maximum amount of CO2 that various vessel types are allowed to emit. The reference line is being made stricter in steps in 2015 and 2020, until the emission has decreased by 30% in 2025 compared to the current generation of ships. Our vessels with an ECO bow feature such low fuel consumption that they are already performing better than the IMO standard for 2025.

In 2013 Wagenborg Reining won the Green Star for “Sustainable Logistics”. This award was presented to logistics companies who achieved their CO2 target in the context of the Lean and Green programme. The CO2 emission has to be reduced by at least 20% within 5 years. Wagenborg Reining has been investing in its sustainability policy for years. Several improvements in the areas of technology, driving style and loading level have resulted in a permanent CO2 reduction of more than 20%. Reining is planning to make further improvements through driving optimisation and extending the intermodal solutions.

Attention to the region We support local initiatives and various social requests. We consider suppliers in the regions where we are located for the purchase of products and/or services. This also applies to supporting services in the areas of culture, sport and education.

42 In the departure hall on the pier in Holwerd the Wadden Association and Wagenborg Passagiersdiensten have launched the project “Wad Weetjes” (‘Wadden factoids’). Passengers with a smartphone can scan QR code stickers in the departure halls and on board and download stories, photos, videos or sound clips about the Wadden Sea. The Wadden Sea factoids are linked to the location. If you are looking out over the salt marches, you are given information about them. Passengers can experience the Wadden Sea in a surprising way: what’s so special about the world heritage site Wadden Sea, how do the tides work and can you tell from the waves how hard the wind’s blowing, which seagulls are swarming around the boat and how to recognise them, why are some buoys red and others green?

41

44

AFTERWORD

In 2013 much was said about confidence. Our prime minister called for confidence, economists explained that a lack of confidence is getting in the way of economic recovery, and the director of De Nederlandsche Bank told pension funds to invest in confidence.

Confidence also has an important role to play in organisations. Mutual confidence results in less time being wasted on hedging, registering and checking. Agreement is reached more quickly and misunderstandings are avoided. If there is no confidence within a team, but only distance and distrust, many things are left unsaid.

Problems are not sorted out and mutual suspicions of spurious arguments remain. This affects the quality of a team’s decisions and decisiveness.

Good leadership results in more confidence and, accordingly, to improved confidence. And not only in the logistics area, but also by setting a good example in the safety at work aspect. Leadership is above all about being a good person, having sincere motives and being open and honest in your day-to-day work and life. A good manager makes a conscious choice to put their trust in people as a matter of course. With convincing arguments he underlines an old saying: “treat others as you’d be treated yourself”.

We believe that giving and having confidence leads to a uniquely interactive organisation. People enjoy working at Wagenborg based on their ambition and talent. We are all involved in innovation and growth and exchange knowledge internally and externally. We innovate in partnership with customers, personnel, knowledge parties and public authorities. Our added value is determined by our vision and talents. Confidence, workmanship and connection are conditions for Wagenborg’s success. There is a healthy balance to be found between achieving personal targets (being in charge of one’s own career) and jointly achieving the organisation’s targets.

In an interactive organisation there is support for diversity, we cherish unique talent and how we work together is no longer determined by uniformity and the standard. In this type of organisation we as entrepreneurs are able to do what we’re best at and work towards our ambitions. Leading means facilitating, creating space and allowing the style to be determined by the situation.

In the years to come the labour market will decide who is to thrive in the innovation economy, who will lag behind and who will fall by the wayside. People will once again be the focal point and the systems will once again support us, as they were supposed to do. Systems often distract us from our tasks, but in the new economy there will be plenty of space for workmanship and creativity. That creativity is where our ability to find solutions starts.

45 The new economy is dominated by the Eastern economies, which are characterised by a culture of obedience and discipline. The open Western society has developed an inventive, creative, flexible culture with a free spirit and a functional intellect. Based on this culture we must move towards an ideas economy or an innovation economy. We should not wait until the â&#x20AC;&#x2DC;crisisâ&#x20AC;&#x2122; has passed, for the crisis symbolises the future situation. The challenge in a constantly changing and increasingly complex situation is to place our trust in craftsmanship and cooperation and to invest in willingness to change. We will have to continue to develop in the years to come: from an organisation in which managers bother the workers with an excessive need for control, steering and information supply to a company that occupies a responsible position in society, in which people do useful work and where the craftsman takes centre stage. A company with a culture of confidence, connection, craftsmanship and inspiration. Where job satisfaction is an aim and continuity comes first. A company that is ready for the next generation.

Bert Buzeman Personnel & Organisation Manager

ROYAL WAGENBORG P.O. Box 14, 9930 AA Delfzijl Marktstraat 10, 9934 CK Delfzijl The Netherlands T +31(0)596 636 911 F +31(0)596 636 250 E info@wagenborg.com www.wagenborg.com