Annual Report 2009

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Foreword

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History

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People

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Development of the Company Group Air Freight and Sea Freight Europe Road Transport Europe Asia

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Oceania, Middle East, Africa (OMEA)

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Americas

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Products

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Committed to Sustainability

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Hellmann Headquarters ............................................................................................................................................... 15

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The company’s overall performance in 2009 was stron-

increase of 1.9 percent and 0.8 percent respectively.

gly influenced by the global financial crisis and the

The company also retained an impressive 97.2 percent

corresponding decline in global cargo volume as well

of all employees during this crisis period regardless

as significant rate reductions across the various regi-

of revenue and volume reductions. The company’s

ons. Currency adjusted revenue for the year reached

global cost reduction program focuses on efficient

2.47 billion Euros. On a Regional level, Europe achie-

employment of skill sets, economical and environ-

ved 57.6 percent of the total revenue followed by the

mental policies geared toward reducing and re-using

Americas with 16.2 percent, Asia with 15.3 percent

resources and productive sales strategies. In terms of

and OMEA (Oceania, Middle East and Africa) with 10.9

Products, Seafreight lead the way with an impressive

percent.

31.4 percent of total global turnover followed by Airfreight with 25.3 percent, Road freight with 24.5 per

As the market trend continued toward dispatching a

and other divisions with 18.8 percent.

larger quantity of smaller shipments, the total number of consignments decreased only slightly with a 2.6 percent reduction reported. Total tonnage and the total number of TEU’s also demonstrated a particular

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resilience toward the economic crisis with a reported

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Throughout its more than 137-year history, Hellmann has distinguished itself with many attributes but only two differing traits; an unwavering focus on customer satisfaction and an eagerness to embrace innovation and change. Since our humble beginnings, our goal has been – and always will be – to grow alongside our customers. 1871 Carl Heinrich Hellmann founds the company as a one-man business delivering goods by a horse-drawn cart. 1925 Hellmann becomes one of the first companies to successfully replace their horse-drawn fleet with

coal-powered trucks in Germany.

1935 An innovation in efficient transport management: Hellmann launches a large scale (LTL)

consolidated freight terminal with 60 employees.

1968 After more than 20 years of post-war growth and expansion across Europe, the company’s shares are

transferred to the fourth generation, Jost and Klaus Hellmann.

1976 Hellmann becomes a founding member of the DPD parcel system service. 1982 Hellmann opens their first Asian office in Hong Kong, followed soon after by offices in the People’s

Republic of China, Taiwan, Singapore, South Korea, and more recently Vietnam, Sri Lanka and Japan.

1987 Operations begin in Sydney, Australia, followed one year later by office openings in New Zealand. 1988 Operations begin in Long Beach, California, and expansion ensues with offices in 18 U.S. cities, 6 Canadian

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cities, and additional Hellmann offices across Mexico and South America.

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1992 The Hellmann partner network expands into Eastern Europe. 1996 Hellmann celebrates 125 years of customer enthusiasm and has developed a global network of

341 offices in 134 countries.

2002 Global gross revenue exceeds 2 billion euros as Hellmann’s services become progressively more

industry-specific with products from the Perishable, Automotive, Fashion, Consumer Electronics,

Process Management, Contract Logistics & Consulting divisions.

2004 Construction is completed on the new Shanghai air freight warehouse. The company’s operations now

include 7 A-Class licenses and 23 offices in the People’s Republic of China.

2006 Hellmann receives the coveted “Award of Excellence” from the Global Institute of Logistics. 2007 Hellmann opens offices in India and Pakistan. In August, the European Logistic Center (ELC) in Munich is put

into operation and begins the distribution of spare parts for MAN vehicles. The second ELC based in Paris

begins operations in December.

2008 Best Office Award for the new building “Speicher III“ in Osnabrueck awarded by the “Wirtschaftswoche“ (a German business magazine).

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2007

1,229

1,306

1,117

545

603

579

1,732

5,146

2009

1,565

5,426

2008

1,503

5,357

2007

Despite the effects of the global economic crisis in 2009,

and talent management. Hellmann’s International Logi-

the company succeeded in minimizing staff downsizing

stics Management & Leadership programs, as well as the

by employing a combination of shift-work optimization

mentoring and the talent management programs all set

and voluntary decreases in the number of working hours.

the focus on performance. These programs also promote

Given the exceptionally high staff participation in the

active internal communication where employees directly

voluntary programs, the company reported an impressi-

participate in development of the company by commu-

ve 97.2 percent retainment of all employees around the

nicating ideas, setting plans in motion and measuring

world. The total number of employees in 2009 was 8,652

performance. The programs themselves are measured

down only slightly from the previous year. In order to

using critical analysis in order to ensure that they are

remain an employer of choice during critical times, the

continuously adjusted in accordance with both the requi-

company strengthened investments in both leadership

rements of the employees and the company.

People

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8,652

Employees Total

2009

Employees Americas

8,900

Employees OMEA

2008

Employees Asia

8,556

Employees Europe

8,652


Development of the Company Group

2.47

In 2009, the global economic crisis had a noticeable

considered, 2009 was a very challenging year for the

influence on the company’s results, the effects of

entire logistics industry. In comparison, Hellmann

which varied widely across the different regions and

withstood these adversities quite well utilizing a pro-

products. For example, the Asia region reported a si-

active agenda, effective cost-reduction programs and

gnificant decrease in turnover of 23.1 percent* while

productive sales strategies. The company’s outlook for

OMEA only experienced a 9.5 percent* reduction.

2010 is optimistic.

When comparing global transport modes employed in the year, total airfreight revenues dropped

* Denotes figures after currency adjustment

by 25.5 percent*, global sea freight experienced a 20.0 percent* reduction, however road freight only reported a decrease of 8.1 percent*. All things

2.87

2008

2.47

2.82

2007

Total Revenue in billion €

2009

Overland

Sea Freight

Others

464.1

603.6

625.4 Air Freight

Others

Overland

Sea Freight

Air Freight

Asia

15.3

18.8

24.5

25.3

57.6 Europe

OMEA 10.9

Americas 16.2

International

44.2 Germany

Revenue of the Divisions 2009 in million €

776.4

Percentages of the Divisions 2009

31.4

Percentages of the Regions 2009

55.8

Percentages Germany / Intern. 2009

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318.8

2009

388.3

357.0

2007

189.8

2009

260.2

2008

2007 276.8

In 2009, European Air and Sea markets were signifi-

Proactive measures in cost-reduction and efficiency

cantly affected by the global economic situation. Low

augmentation were initiated at the outset the year.

freight rates, declining sea freight volumes, particular-

The company was able to maintain its high service

ly in the second and third quarters, combined with a

levels and product quality as freight volumes began

drastic drop in air freight volumes, adversely impacted

to rise in the fourth quarter of 2009. This strategy will

the activities of the 12 European countries belonging

continue to have a positive impact in 2010.

to the region. Despite the highly volatile market conditions, the company reported impressive numbers of TEUs in the sea freight sector and although the overall tonnage reported dropped significantly, consignment numbers in the air freight division remained strong.

Air Freight and Sea Freight Europe

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Sea Freight Turnover in million â‚Ź

2008

Air Freight Turnover in million â‚Ź

139,465

2009

147,827

139,489 88,785

2009

2007

101,291

2008

117,010

2007

2009

2008

2007

Sea Freight TEUs

2008

Air Freight Tonnage

188,728

196,880

204,144

Air Freight Consignments

318.8


Road Transport Europe

598.7 The decline in the total number of shipments, ton-

work. The harmonization of cargo handling processes

nage and turnover that began at the end of 2008

produced a reduction in costs while simultaneously

continued throughout 2009. The reduction was espe-

improving both customer service and product quality.

cially strong during the first half of the year however

As the program further expands across the continent,

showed signs of improvement during the third and

the European network is strongly positioned for 2010.

fourth quarters. In comparison to the rest of Europe, Spain was rather severely affected while both Poland and Great Britain reported only slight reductions in revenues. In order to take proactive measures, the company initiated an intensive re-organization of the complete European line operation and transport net-

Others Turnover in million â‚Ź

319.7

315.9

2008

2009

2007

2009

2008

374.3

598.7

650.7

575.7

3,982,899

2008

2007

3,876,683

2007

3,659,311

11,567,294

2009

Overland Turnover in million â‚Ź

2009

11,881,207

Overland Tonnage

2008

2007

10,678,934

Overland Consignments

09


Others Turnover in million €

11.359

9.799

5.993

129.2

168.2

2008

2009

180.4

Sea Freight Turnover in million €

2007

237.0

2009

324.8

2008

163,951

2009

323.8

161,303

2008

Air Freight Turnover in million €

2007

162,493

2007

Sea Freight TEUs

115,791

2009

125,223

2008

184,646

2009

134,202

188,003

2008

Air Freight Tonnage

2007

190,145

2007

Air Freight Consignments

Asia as a region experienced negative growth in 2009

performance of the Asian market as a whole in 2009.

with nearly all countries experiencing a reduction in

Despite the negative economic influences, the region

revenues. The effects of the global economic down-

experienced a very positive fourth quarter and the

turn on Asian trade became especially evident in the

overall number of TEUs actually increased by 1.64

first three quarters of the year resulting in a revenue

percent. Overall the number of consignments was

reduction of 23.0 percent*. The drop in revenue

only reduced by 1.79 percent and the total airfreight

for the Asian region was predominantly caused by

tonnage dropped only slightly by 7.53 percent.

a reduction in both the market buying and selling rates in addition to a sharp drop in demand from our customers. However, this development is still considered to be a positive result when compared to the

Asia

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237.0

* Denotes figures after currency adjustment


Oceania, Middle East, Africa (OMEA)

145.9

Despite the global economic crisis, the region of Oce-

up by 8.9 percent*. The Automotive Logistics division

ania, Middle East and Africa reported mostly positive

performed well under the circumstances with only a

results in 2009. The total number of consignments

0.9 percent* drop in revenue despite the crisis in the

dropped slightly year-on-year and the total air freight

automotive manufacturing sector. The Perishable divi-

tonnage for OMEA decreased by 1.7 percent. Sea

sion also continues its position as a major player in the

freight volumes rose significantly as the total number

Australian, New Zealand and South African markets

of TEU’s increased by almost 10 percent overall. The

with an increase in revenues of 14.5 percent* in 2009.

company’s dedicated industry solutions continued to expand throughout the region as the Contract Logis-

* Denotes figures after currency adjustment

tics and Consulting division reported a third successive

46.8

43.4

Others Turnover in million €

38.6

2009 145.9

2007

77.1

70.3

2008 139.8

Sea Freight Turnover in million €

168.5

Air Freight Turnover in million €

86.4

2009 39,745

2007 49,198

2008 36,140

Sea Freight TEUs

17,712

Air Freight Tonnage

18,024

2009 39,308

2008 42,516

2007 45,485

Air Freight Consignments

24,113

year of growth with distribution revenues for the year

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Others Turnover in million €

94.9

86.9

59.1

182.6

2009

223.3

2007

2009 121.4

164.3

2008

2007 150.2

247.5

Sea Freight Turnover in million €

2008

Air Freight Turnover in million €

138,883

168,108

2008

2009

172,470

164,002

2009

Sea Freight TEUs

2007

163,127

2008

175,634

Air Freight Tonnage

2007

169,884

2009

179,708

2008

2007

166,577

Air Freight Consignments

In 2009, the difficult economic climate lead to a de-

a strong sales force and experienced customer service

crease of 20.6 percent* in revenue for the Americas.

departments. The region also experienced strong

This figure, in addition to lower customer demand in

fourth quarter results with year-on-year increases in

the region, was primarily influenced by falling fuel

both the total number of TEUs and the total number

prices. Interestingly, after adjusting for the sharp

of shipments during the same period.

drop in fuel prices, net revenue only showed a slight decrease of 1.1 percent. Still, despite the reduction in overall revenue, the Contract Logistics and Consulting division reported an increase of 9.5 percent*. The region experienced excellent customer retention and aggressive expansion in market share by maintaining

Americas

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182.6

* Denotes figures after currency adjustment


Portfolio

National and Continental Road freight

CourierExpress, Parcel Services

Supply Chain Management

Airfreight, Seafreight, Sea-Air, Customs Brokerage

Direct Load, Rail Solutions

ITSolutions

Industry Solutions: Automotive, Electronics, Fashion, Healthcare, Perishables, Public Private Partnership

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For a globally active company such as Hellmann

green space maximization for exterior areas, elimi-

Worldwide Logistics, the development of economic

nation of salt usage for winter walkway and parking

interests is inherently connected to our responsibility

maintenance; sponsorship of ecological and environ-

to the environment. The idea of sustainable deve-

mentally friendly programs and the compliance of the

lopment has long been and always will be our focus.

ISO 14001 certification.

At Hellmann we are committed to working within a structured system of environmental management

We recognize that there is still much to be done and

using task-oriented methods, continuous self-monito-

we are committed to ensuring that all our business

ring and regular external auditing.

activities and services continue to be economically, socially and environmentally responsible.

For all of our activities we have goals in place to achieve sustainable development. Some of our tasks include: waste reduction and recycling, reduction of greenhouse gas emissions in all vehicles, energy saving and reduction of the power consumption in the workplace, elimination of environmentally harmful

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chemicals and cleaning agents from the workplace,


Osnabrueck

Miami

Hong Kong

Hellmann Worldwide Logistics

Hellmann Worldwide Logistics, Inc.

Hellmann Worldwide Logistics Ltd.

GmbH & Co. KG

10450 Doral Boulevard

Unit 2, G/F, Block A

Elbestrasse 1

Doral, Florida 33178

Tonic Industrial Center

49090 Osnabrueck

United States of America

26 Kai Cheung Road

Germany

Phone +1 305 406-4500

Kowloon Bay, Kowloon

Phone +49 541 605-0

Fax

Hong Kong

Fax

+1 305 406-4519

+49 541 605-1211

Phone +852 3626-8000 Fax

Hamburg

Sydney

Hellmann Worldwide Logistics

Hellmann Worldwide Logistics Pty Ltd.

GmbH & Co. KG

Airgate Business Park

Industriestrasse 100

289 Coward Street

21107 Hamburg

2020 Mascot NSW

Germany

Australia

Phone +49 40 7537-00

Phone +61 2 9667-7555

Fax

Fax

+61 2 9667-7666

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+49 40 7526208

+852 2796-7303

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