Annual Report 2011
Thinking Ahead – Moving Forward
Foreword by the Main Board Although the global economy in 2011 grew at a slower rate than anticipated, Hellmann Worldwide Logistics experienced substantial growth, especially in the first half of the year.
all core products increased in volume. The tonnage of Airfreight increased by 8.2 % and road transport grew also by 8.2 %. The number of TEUs in our Seafreight product grew by 16.1 %.
During the 2010 business fiscal year, we changed our method of calculating the revenue which negatively influenced our revenue reporting for 2011. Furthermore, falling prices caused by the current market situation also had a negative impact on revenues. The company’s revenues for 2011 showed an overall decrease of 3.3 % (after currency adjustments were made1)). Total revenues amounted to 2.58 billion Euro. Tumbling rates and increased market pressure were also responsible for affected sales.
Road freight represented 27.0 % of the company’s overall revenue followed closely by Airfreight with 26.6 % and Seafreight with 25.7 %. Our number of employees increased by 8.4 %, from 9,228 to 10,003 employees worldwide. 1)
for all revenues stated
On a regional level, whilst Europe showed a 3.9 % growth, Asia‘s revenue dropped by 33.6 % primarily due to the aforementioned change in our revenue calculation method. The Americas and OMEA both reported an increase of 7.2 % and 6.5 % respectively. Of the company’s core products, Airfreight and Seafreight saw a decrease in revenues of 13.5 % and 8.9 % respectively, predominantly due to the decrease revenue calculation in Asia. Our road freight product increased revenues by 16.4 %. At the same time,
From left to right: Jost Hellmann, Manfred Fischer, Mark Hellmann, Carsten Fuhlendorf, Karl Engelhard & Klaus Hellmann
3
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 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 cities, and additional Hellmann offices across Mexico and South America. 1992 The Hellmann partner network expands into Eastern Europe.
4
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 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.
OUR EMPLOYEES
In 2011, the number of fulltime employees increased by 8,4 %, to 10,003 employees worldwide.
also launched a global sales development program to further develop successful sales strategies.
Our HR initiatives are focused around attracting, retaining, and developing talent. Employee engagement surveys allow us to measure our people’s satisfaction and identify key areas needing improvements. We remain dedicated to providing learning opportunities to our people based on our global performance management processes. Some of our main people development programs include: on the job training, classroom learning, e-Learning, job rotations and professional development. In 2011, we awarded certified apprenticeships and trainee programs. We
In 2011, fifteen of our leaders, coming from eleven countries, successfully completed our first International Logistics Management and Leadership Programme (ILM), which granted a “Senior European Logistician” certificate issued by the European Logistics Academy.
6
2011
2010
10,003
9,228
8,652
2011
2010
Employees Americas
2009
1,526
1,318
2009
2011
2010
2009
2011
2010
2009
Employees OMEA
1,229
713
626
2,053
1,867
1,732
5,711
5,417
5,146
Employees Asia
545
2011
2010
2009
Employees Europe Employees Total
7
8
2011
2010
1.92
2.58
2.65
685.7 664.0 697.1 534.0
20.7 Revenue of the Divisions 2011 in million €
26.6 25.7 27.0
56.2
54.8
Revenue Percentages of the Divisions 2011
2009
Misc.
Road Transport
Seafreight
Airfreight
Misc.
Road Transport
Seafreight
14.6
10.1
19.1
45.2
Revenue Percentages of the Regions 2011
Airfreight
Asia
Europe
OMEA
Americas
International
Germany
Revenue Percentages Germany/Intern. 2011 Total Revenue 2011 in billion €
Development of the hellmann group
The total revenue in 2011 was 2.58 billion euro which exceeds the total revenue we had prior to the crisis. This highlights our successful approach in improving our sales strategy. The recorded decrease of 3.3 % compared to previous year is attributed to a change in revenue calculation which took place in 2010, as well as the overall decrease in prices in the industry globally. Europe remained the largest producer of revenue with 56.2 % of total revenues; the Americas generated 19.1 %, Asia 14.6 %, and OMEA 10.1 %. In terms of products, road transport reported the highest revenue growth for the year with an increase of
16.4 %. Both the Seafreight and Airfreight divisions reported a reduction in year on year revenues partly due to the aforementioned change in our revenue calculation and partly due to the slower than expected growth in the Asian market. The road transport division increased its share to 27.0 %, while Seafreight increased by a fraction with 25.7 %, and Airfreight‘s share declined to 26.6 %. The other divisions account for the remaining 20.7 %, a minor increase from the previous year.
9
Air- and Seafreight Europe
2011 began with a very successful quarter, followed by positive gains in the second and third quarters. However, the European economic crisis had a negative effect on our revenue in the fourth quarter. Despite the market downturn at the end of 2011, the overall growth in Seafreight volumes, in terms of the total number of TEUs, increased by 8.0 %. This figure was significantly higher than the overall market trend in the same year. Similarly, the year on year Airfreight tonnage for Europe also countered stagnating market trends with a 14.0 % increase in total tonnage. Overall, the results achieved in 2011 are satisfactory, despite falling
10
freight rates which reduced revenues and the increase in tonnage which augmented costs. Investments in operational gateways and a constant focus on process management continued to streamline services by reducing lead times, improving efficient communication and providing optimal products and services for customers.
2011
2010
200.8
217.8
149.2
194.5
193.3
Airfreight Revenue in million €
2009
2011
2010
124.0
169,367
156,886
Seafreight TEUs
2009
2011
2010
139,465
129,612
113,730
88,785
201,186
199,175
188,728
Airfreight Tonnage
2009
2011
2010
2009
2011
2010
2009
Airfreight Consignments Seafreight Revenue in million €
11
12
349.9
275.4
2011
2010
392.7
661.1
Road Revenue in million €
2009
2011
643.5
571.9
2009
Road Tonnage
2010
4,849,738
4,342,754
3,659,311
13,840,251
12,814,644
11,567,294
2011
2010
2009
2011
2010
2009
Road Transports Miscellaneous Revenues in million €
Road transport Europe
In 2011, the company reported a 8.0 % increase in European road transport volume with a total of 13.8 million consignments shipped. Overall, the positive gain amounted to 4,850,000 tons transported across the continent which represent, year on year, an impressive 11.7 % growth in total tonnage. Furthermore, the division reported a strong revenue growth of 15.2 %, demonstrating a significant development in the market. The close cooperation with reliable network partners combined with the company’s own operations in Germany, Poland, the United Kingdom, Spain and Turkey were the foundation for a continued growth platform in Europe. Fixed departure frequencies and synchronized road transport across the continent provided outstanding service levels and an optimized distribution network connecting the European economic centers.
Hellmann East Europe Hellmann East Europe was able to continue on the success of the past years and increased its revenue from 50 to over 94 million Euro. The number of consignments handled by Hellmann East Europe increased by 30 %. The progress in Automotive has contributed to the revenue growth in particular. The same applies to Seafreight, where Hellmann East Europe from Russia was able to acquire: China, India, Korea and the USA. The network of Hellmann East Europe has grown also as new branches have been established in the following Russian cities: Kaluga, Naberechny Chelny and Nishny Novgorod.
13
Americas
2011 was a record setting year for the company in the Americas with strong results being reported by all divisions. Overall, revenue grew by an impressive 7.2 % year on year. In the Airfreight division, both the number of shipments and the total tonnage increased significantly. For Seafreight, the total number of TEU’s significantly increased by 17.1 % for a total of 197.881 TEU’s. An unprecedented eightfold growth in domestic trailer consignments was also reported for the year. The company continued to invest in global systems compliance and to focus on the highest levels of security for all facilities in the Americas throughout
14
2011. Ongoing training programs, development and advancement incentives, reward programs and succession planning created a superior team of people in the region whose outstanding customer service not only provided substantial new business development but also helped to retain nearly 100 % of existing business.
2011
2011
2010
2009
Seafreight Revenue in million €
84.6
115.7
84.7
243.2
210.8
142.2
2009
Airfreight Revenue in million €
2010
165.5
153.7
2011
2010
99.4
197,881
168,976
Seafreight TEUs
2009
2011
2010
138,883
237,575
224,643
164,002
156,713
152,159
169,884
Airfreight Tonnage
2009
2011
2010
2009
2011
2010
2009
Airfreight Consignments Miscellaneous Revenues in million €
15
16
78.2
69.0
2011
2010
2009
2011
Seafreight Revenues in million €
44.2
116.0
2010
2009
74.3
Airfreight Revenues in million €
126.7
2011
2010
66.7
65.2
2009
2011
2010
Seafreight TEUs
47.5
78,278
49,263
2009
2011
2010
2009
2011
2010
2009
Airfreight Tonnage
39,745
48,852
19,690
17,712
55,568
41,232
39,308 Airfreight Consignments Miscellaneous Revenues in million €
OCeania, Middle east, Africa (OMEA)
In 2011, revenues in the OMEA (Oceania, Middle East and Africa) region increased by 6.5 % year on year. The Airfreight division reported a notable 34.8 % growth in handled shipments, while the total tonnage was an astounding 148.1 % higher than that of 2010. This significant increase is partly explained by the fact that for the first time the HPL Airfreight numbers were included into the total. As the perishable export market leader in New Zealand and with a strong Healthcare Logistics vertical in Australia and the United Arab Emirates, the company is well positioned for continued growth in the Airfreight sector. With dedicated focus on Seafreight and the acquisition of a competitor in South Africa, the company re-
ported a 58.9 % growth on Seafreight TEUs in 2011. The domestic trailer traffic division reported a 83.9 % increase in revenues and a 7.6 % increase in the total number of shipments handled. Automotive, Healthcare and Contract Logistics all performed admirably well in the region showing significant growth and considerable gains in business development.
17
AsiA
2011 was a year of growth and opportunity for Hellmann in Asia. The South and South-East Asian sub-regions saw a 20.0 % increase in revenues. Seafreight volumes grew by 11.1 % compared to the market whose average growth was 7.0 %. Interestingly, the largest growth segment was seen in Seafreight import due to strong Asian consumer demands for products from the Americas and Europe. Airfreight volumes experienced a slight decrease in 2011, primarily due to the European economic crisis. The total number of Airfreight shipments, year on year, decreased by a marginal 3.5 %. Contracts Logistics and Consulting (CLC) made great strides with a 79.4 % increase in revenues, while the total area of warehouse space
18
more than doubled in 2011. Another highlight of the year was the opening of our own offices in Bangkok, Thailand. Future growth areas are expected in China, South East Asia with a continued focus on the Healthcare and Automotive industries.
14.3
2011
2010
2009
2011
2010
2009
Seafreight Revenues in million €
11.8
104.0
116.7
99.7
259.1
377.1
Airfreight Revenues in million €
8.7
2011
2010
196.0
227,043
204,416
Seafreight TEUs
2009
2011
2010
163,951
146,691
162,148
115,791
199,988
207,249
184,646
Airfreight Tonnage
2009
2011
2010
2009
2011
2010
2009
Airfreight Consignments Miscellaneous Revenues in million €
19
Sustainability Obligates
Hellmann Worldwide Logistics as a global player is aware of its responsibility for the environment. This awareness is also reflected in the company philosophy as sustainable development is a central part of it. The development of economic interests is inextricably linked to sustainable development. In order to maintain the sustainability aspect and to meet the requirements of a structured environmental management, Hellmann conducts internal examinations and external audits on a regular basis. A central part of the management systems is a clear definition of the company‘s objectives with respect to sustainability. These objectives guarantee a profound comprehensive and steady company development.
By sponsoring ecological and eco-friendly projects, Hellmann also supports the social aspects of sustainability. Hellmann views the idea of sustainable development as a continuous improvement process, knowing that in respect to the conservation of resources and the reduction of emissions there is always room for improvement. Hellmann‘s objective is, with the help of specific measures, to prevent and reduce corporate behavior causing environmental pollution and to shape and optimize all present and future business activities to be economically, socially and ecologically compatible.
Some of these objectives are: Reducing greenhouse gas emissions for all vehicles, reducing waste, conserving of energy and reducing the consumption of electricity at the workplace. Also we aim to abandon the use of ecologically harmful chemicals and detergents, to maximize green space of exterior areas and to use environmentally friendly light bulbs.
21
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
22
▪ ▪ ▪
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 / Australia 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