Annual Report 2012
Thinking Ahead – Moving Forward
Foreword The Main Board From a purely logistics point of view, 2012 was a year of ups and downs. Both revenue increases and decreases were recorded at a correspondingly balanced level throughout the entire industry for the first half of 2012. However, the second half of 2012 was characterized by fierce competition and intense turmoil. Pricing pressure and declining margins continued to play a major role in the market as a whole, however, Hellmann Worldwide Logistics succeeded in increasing its total revenues by 1 percent. This demonstrates a sound strategic movement after proactively responding to an overall reduction in revenues of 3.3 percent in 2011, mostly a result of global currency fluctuations and currency-related corrections. Total annual revenues for the year 2012 fiscal year for Hellmann Worldwide logistics reached an impressive 2.67 billion euros.
livered a year on year increase of 5.3 percent and both products benefited significantly from an overall increase in freight volumes of 1.7 and 9.4 percent respectively. While the Air Freight sector reported a slight decrease in revenues as a result of lower transport volumes, specifically 1.2 percent less turnover than the previous year. To delineate the company’s top products as percentages of the whole, Road Freight, with its share of 27.7 percent of revenues remains the company’s best- selling product, followed closely by Sea Freight with 27.3 percent and Air Freight with a 26.6 percent share. In 2012, the number of employees rose by 7.3 percent. Hellmann Worldwide Logistics currently employs 10,735 staff worldwide, the company thus successfully continues organic growth.
The European region has retained the highest market share with 54.7 percent, followed by the Americas with 21.0 percent, Asia with a 14.7 percent and OMEA with 9.6 percent. Europe and Asia, in relation to the two other regions, have reported only slight declines in revenues when compared to the 2011 results. Taking a closer look at the company’s core businesses, it is clear that Sea Freight experienced tremendous growth and reported a 6.9 percent increase in revenues for 2012. The Road Freight sector also de-
From left to right: Jost Hellmann, Manfred Fischer, Mark Hellmann, Carsten Fuhlendorf, Karl Engelhard & Klaus Hellmann
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History Since 1871 1871 Carl Heinrich Hellmann founds the company as a one-man business delivering goods by a horsedrawn 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 perations 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 cities, and additional Hellmann offices across Mexico and South America. 1992 The Hellmann partner network expands into Eastern Europe. 1996 ellmann celebrates 125 years of customer enthusiasm and has developed a global network of 341 offices in 134 countries.
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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 Airfreight 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). 2011 Rudolph and Hellmann Automotive open a new distribution center for Ford in Dubai. 2012 By joining the United Nations Global Compact (UNGC), Hellmann Worldwide Logistics has committed itself to comply with international standards in human rights, labor, environment and anti-corruption.
our employees
On December 31, 2012, our company employed 10,735 employees worldwide, representing an increase of 7.3 percent compared to 2011. This expansion demonstrates once again Hellmann’s commitment to a culture of organic growth. The increasing complexity and dynamics in the work environment and the consequent need for specialization were reasons for us to focus on the reorganization of the HR structure during the last year, particularly in Germany and across the globe. This reorganization, which brings significant benefits for our company’s future, will be completed in the course of 2013. The first step was creating a new HR Marketing & Recruiting Team. With a standardized and optimized recruiting process the highest level of quality is maintained in the filling of vacant positions. To promote and optimize the worldwide professional and leadership development program, a department for Global Learning & Development was launched.
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Its main activities are the introduction of a global learning management system known as the ”Hellmann Learning Experience“, as well as the development of our global sales force. Also, the second year of the ”International Logistics Management and Leadership Program“ (ILM) is well underway. In this program, 19 junior executives are prepared for future international management positions within the company. Furthermore, with our commitment to the United Nations Global Compact (UNGC) initiative we are putting an even greater focus on responsible corporate governance. Based on uniform global standards, consequent measures are taken in the areas of human rights, labor standards, environmental protection and anti-corruption.
9,228
2012
2011
10,735
10,003
Employees Americas
2010
1,879
1,526
2011
2012
1,318
2012
820
Employees OMEA
2010
2011
713
2,218
2012
2010
2,053
2011
Employees Asia
626
1,867
5,819
2012
2010
5,711
5,417
2011
2010
Employees Europe Employees Total
7
8
2012
2.67
2.58
2011
Other
Road Transport
Sea Freight
Air Freight
Other
Road Transport
Sea Freight
490.3
2.65
18.4
Total Revenue 2012 in billion €
Air Freight
Revenue of the Divisions 2012 in million €
2010
14.7
54.7
58.3
Revenue Percentages of the Divisions 2012
707.6 728.5 739.0
9.6
21.0
41.7
Revenue Percentages of the Regions 2012
26.6 27.3 27.7
Asia
Europe
OMEA
Americas
International
National
Revenue Percentages Germany/Intern. 2012
Development of the Hellmann Group
With total revenue of 2.67 billion euro, Hellmann Worldwide Logistics was able to improve result from the previous year by 1 percent in 2012, however, the global economic downturn and fluctuations prevented a more positive company result. Figures show that even in economically difficult times, our company is able to chart an appropriate course for the future with efficient policies, and effective strategies. In terms of total revenues, Europe remained the top performing region, although the proportion of revenue declined year on year to 54.7 percent by a mere 1.5 percent. The European region is followed by the Americas with 21.0 percent, Asia with 14.7 percent and OMEA with 9.6 percent of total revenues.
global product, previously held by the Road Freight division with 5,3 percent. Contract Logistics also generated a 4.6 percent growth worldwide and the Air Freight division still managed only a 1.2 percent reduction given the global lack of freight volumes in the industry. In reference to the company’s revenue shares, Road Freight, was slightly higher with a 27.7 percent share, maintaining its leading position followed by Sea Freight with 27.3 percent and Air Freight generating a 26.6 percent share. The remaining services from the Hellmann Worldwide Logistics product portfolio accounted for 18.4 percent of total revenues.
In terms of products, the Sea Freight division reported a currency-adjusted growth of 6.9 percent and thus took over the leading position as the top-selling
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Air And Sea Freight Europe
The results of Air and Sea Freight in 2012 were affected by both a difficult market environment and the economic downturn in the European market. Consequently, high pressure was seen on revenue margins as well as an increased competition for market share mainly through keeping existing strategically important business. Given the tough environment, the Air and Sea Freight division was able to increase sales by 3.7 percent, Sea Freight being the main driver of this growth with 6.9 percent growth, compared to 0.4 percent achieved in Air Freight. As it is not expected that the situation will change in the near future, based on our operational capabilities and our brand positioning, we have conducted several initiatives and programs. Workshops on both customer planning and segmentation, as well as on regional target customers were initiated during 2012, in order to pave the way for further growth in 2013.
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When looking at the volumes overall, the trend was negative: The Air Freight tonnage had to cope with a downturn of 7.8 percent year on year, which appears to be directly in line with the market, as airlines reported negative in the main Air Freight trade flows. Similarly, in the Sea Freight division, TEU volumes by 0.9 percent to a total of 167,795 TEUs.
195,743
2012
194.5
196.9
2011
2012
2012
2011
216.2
200.8
217.8
Air Freight Revenue in million €
2010
193.3
167,795
2012
Sea Freight TEUs
2010
169,367
2011
156,886
119,484
129,612
Air Freight Tonnage
2010
2012
2011
113,730
201,186
2011
2010
199,175
2010
Air Freight Consignments Sea Freight Revenue in million €
11
12
643.5
661.1
2010
2011
2012
2011
353.9
392.7
349.9
Road Revenue in million €
2010
691.1
4,869,011
2012
Road Tonnage
2012
4,849,738
4,342,754
15,144,454
13,840,251
12,814,644
2011
2010
2012
2011
2010
Road Transports Miscellaneous Revenues in million €
Road transport Europe
In European Road Freight, as in previous years, a significant increase was observed. The number of consignments of approximately 13.8 million grew by 9.4 percent to about 15.1 million. At the same time, the tonnage decreased by 0.4 percent and due to decreasing consignment volumes the total volume fell to 4.9 million tons. Simultaneously, the total revenues achieved in European Road Freight grew by 5.4 percent to yet around 691.1 million euro.
strongest sector in the CIS region and Hellmann East Europe is currently represented in all major automotive clusters in Russia. Since 2011, the company has its own customs broker license in Russia known as “Hellmann Tamozhenny Broker” offering customers solutions for all customs clearance issues. This allows Hellmann to offer a complete solution for the entire transport chain in Air, Road and Sea Freight, from pick-up to delivery in Russia. This service has consistently been expanded in 2012.
Hellmann East Europe Five years after it was founded, Hellmann East Europe – the logistics specialist for the CIS region – was able to further expand its business. In 2012, for the first time the total revenues exceeded the 100 million euro mark. Hellmann East Europe currently has 29 subsidiaries in Russia, Ukraine, Belarus, Azerbaijan and the three Baltic States. In addition, the German locations Erkrath, Lehrte and Maintal also serve as Road Freight hubs for Europe. As in previous years, Automotive Logistics has proved to be the
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Americas
The year 2012 was quite a successful one with regard to sales in the Americas. Compared to 2011, the result increased by 8.9 percent to around 561 million euro. Not least were the influences of the world economy responsible for the fact that the internal target profit margins could not be fully achieved. The TEU-volume in Sea Freight AMERICAS grew by 0.7 percent to 199,259 TEUs, the tonnage of Air Freight rose 1.6 percent to 241,389 tons. Americas Region, the focus in 2012 has consistently been placed on providing top level service. The majority of new customers acquired in 2012 have already been connected to the EDI system for electronic data exchange, and for Contract Logistics clients RedPrairie has been added to the existing LFS warehouse management system.
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Under the joint venture between Hellmann Perishable Logistics and Apollo Freight Inc. from Los Angeles, a new company was founded, which now significantly streamlines the transport of perishable goods between the East and West Coast of the United States.
2012
2011
109.6
84.6
115.7
272.3
243.2
210.8
Sea Freight Revenue in million €
2010
2012
2011
179.0
Air Freight Revenue in million €
2010
2012
2011
165.5
199,259
2012
Sea Freight TEUs
2010
197,881
2011
168,976
241,389
2012
Air Freight Tonnage
2010
237,575
2011
153.7
155,780
2012
224,643
156,713
2011
2010
152,159
2010
Air Freight Consignments Miscellaneous Revenues in million €
15
16
55,679
2012
70.7
2012
61.1
78.2
2011
2012
69.0
123.7
2012
Sea Freight Revenues in million €
2010
116.0
2011
126.7
66.7
2011
Air Freight Revenues in million €
2010
65.2
93,601
78,278
Sea Freight TEUs
2010
2012
2011
49,263
2012
44,895
Air Freight Tonnage
2010
2011
2010
48,852
19,690
55,568
41,232
2011
2010
Air Freight Consignments Miscellaneous Revenues in million €
OCeania, Middle east, Africa (OMEA)
In 2012, the OMEA region has continued its pattern of growth as it has in previous years especially in the areas of Sea, Air Freight and Contract Logistics. Similar to other regions, despite decreasing tonnage, shipment volumes and revenues in Air Freight increased. This was mainly caused by the company‘s activities in the areas of Perishable, Healthcare and Automotive Logistics. The handling of Sea Freight from Asia via the Dubai Air Freight Hub to Europe has also contributed to these results.
Shipment volumes in Road Freight grew by 23.4 percent and revenues rose by a record-breaking 108 percent to 9.4 million euro. This was particularly caused by developments in Automotive Logistics which uses Dubai.
The growth in Sea Freight was also noteworthy: Here, a TEU increase of 19.6 percent brought about a 7.5 percent revenue increase reaching 123.7 million euro. In general, it should be noted that the Sea Freight business developed very positively in this region which has opened up many new opportunities.
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Asia
In 2012, our company was able to increase its revenues in Asia by 3.6 percent to 390.9 million euro in the region. Still, after adjusting for currency fluctuations, the growth was only - 2.3 percent. Development was held back particularly by influences of the debt crisis in Europe and weak European imports from Asia; customer orders from Greater China were also adversely affected. Looking at the Asian sub-regions, South-East Asia reported a growth rate of 60 percent. South Asia, India and Bangladesh in particular, achieved a growth of 8 percent, mainly due to the success of our Air Freight business. The reported 3 percent decrease in Air Freight consignments and 1.7 percent less tonnage compared to 2011 are in line with the overall developments of the Asian market, which contracted by about 3 percent. Sea Freight has also had to cope with difficult market conditions for its long haul lines to Europe
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and AMCS, still creating an increase of 5.9 percent in revenues. TEU volumes fell back 1.6 percent. Our main focus continued to be the CLC product that performed admirably well with a 39 percent revenue growth year on year. The total warehouse space increased by 18 percent and the number of customers in our Asian facilities almost doubled in 2012. Future growth areas are expected in the Healthcare, Automotive, Fashion and Renewable industries, for which dedicated teams are developing customized solutions that add value within the individual customers’ supply chains.
2010
2011
2012
14.3
13.6
116.3
104.0
Sea Freight Revenues in million €
11.8
2012
2011
Air Freight Revenues in million €
2010
261.0
2012
377.1
2010
259.1
223,501
2012
Seaf Freight TEUs
2011
227,043
204,416
2011
116.7
144,180
2012
193,981
199,988
207,249
Air Freight Tonnage
2010
146,691
162,148
2011
2010
2012
2011
2010
Air Freight Consignments Miscellaneous Revenues in million €
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Sustainability Obligates
As a global logistics company, we take our responsibility for sustainability very seriously. This includes aspects of social, ecological and economic responsibility. With”Live Sustainability” we have firmly fixed this thought in our F.A.M.I.L.Y DNA, as that is what the letter “L” stands for. In 2012, Hellmann Worldwide Logistics has joined the United Nations Global Compact initiative. We have committed ourselves to comply with the 10 internationally accepted principles regarding human rights, labor standards, environmental protection and anti-corruption and to continuously improve ourselves in respect to these principles. A report on our progress will be annually issued: The Communication on Progress. In August 2012, Hellmann Worldwide Logistics has conducted a four-week test with LNG (liquefied natural gas) in Osnabrueck. As first German logistics service provider, Hellmann, together with its partners Scania, Iveco and the patrol station constructor Bohlen & Doyen, has successfully tested LNG. In the summer of 2013, a LNG fuel station will be opened in Osnabrueck and several LNG trucks will be used.
Already back in 1993, a working group had been established addressing the improvement of environmental protection. Over the past two decades we have constantly been working on the further development of a well-structured environmental management system. Internal and external audits take place on a regular basis to safeguard the success of sustainable business goals. Beyond that, the following objectives are continuously being pursued: reduction of greenhouse gas emissions of all vehicles, waste reduction, energy conservation and a reduced energy and paper consumption in all offices. The renunciation of the use of environmentally harmful chemicals and detergents, the maximum greening of the company‘s premises, and the use of resource-saving bulbs are just some of our sustainability goals. Our company is always working on improvements in resource conservation and reduction of pollutant emissions. Measures to avoid or reduce potential environmental impacts are an ever-present topic at Hellmann.
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Product Portfolio ▪ National and Continental Road Transport ▪ Airfreight, Seafreight, Sea-Air, Customs Brokerage ▪ Direct Load, Rail Solutions ▪ Contract Logistics & Consulting ▪ Courier-, Express- & Parcel Services ▪ IT-Solutions
Osnabrueck Hellmann Worldwide Logistics GmbH & Co. KG Elbestrasse 1 49090 Osnabrueck / Germany Phone +49 541 605-0 Fax +49 541 605-1211 Hamburg Hellmann Worldwide Logistics GmbH & Co. KG Industriestrasse 100 21107 Hamburg / Germany Phone +49 40 7537-00 Fax +49 40 7526208 Miami Hellmann Worldwide Logistics, Inc. 10450 Doral Boulevard Doral, Florida 33178 / USA Phone +1 305 406-4500 Fax +1 305 406-4519
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Industry Solutions for Agriculture, Automotive, Fashion, Healthcare, Perishables and Renewables, Marine Solutions, Cruise Logistics Public Private Partnership
Sydney Hellmann Worldwide Logistics Pty Ltd. Airgate Business Park, 289 Coward Street 2020 Mascot NSW / Australien Phone +61 2 9667-7555 Fax +61 2 9667-7666 Hong Kong Hellmann Worldwide Logistics Ltd. Unit 2, G/F, Block A, Tonic Industrial Center 26 Kai Cheung Road Kowloon Bay, Kowloon / Hong Kong Phone +852 3626-8000 Fax +852 2796-7303
Our Product and Services Portfolio & Hellmann Headquarters