Sustainability Report 2016

Transcription

1 Sustainability Report

2 Foreword of the Management Our corporate DNA In the Sign of the Wild Geese Product Divisions Industry Solutions Facts & Figures (Economics) Our Employees Development of the Company Group The Region Europe (Land Transport) The Region Europe (Air and Sea Freight) The Region Americas The Region OMEA (Oceania, Middle East, Africa) The Region Asia Committed to the Future (Ecology) Energy Management System Environmental Training in e-learning People in Focus (Social Matters) Social Health and Safety at Work Diversity

3 Sustainability Report Foreword of the Management Foreword of the Management The year was characterized by far-reaching economic, social and political changes around the world. Many of these events have also concerned the logistics industry and our company. The insolvency of the South Korean shipping company Hanjin Shipping as well as the decision of the British to leave the European Union are worth mentioning. Despite the challenging market environment, we were able to close the fiscal year with a positive Group result. With a group turnover of around EUR 3.0 billion and a double-digit million figure, we not only exceeded our forecasts, but also made it clear that our extensive structuring measures are on the right track to sustainably strengthen the company. Our main products, Air & Sea as well as Road & Rail, contributed the bulk of our sales, but generated slightly lower sales than in the previous year due to challenging market conditions. The reason for the difficult situation in the global ocean freight was a surplus of freight space, which was reflected in a low ratio. The consolidation in the market of the ocean freight carrier went one step further and put the industry under further pressure. The same applies to the air freight industry, in which the price pressure on our sales has increased despite the increase in shipments and tonnage. As in the past few years, the Contract Logistic division has grown positively with a growth of 11.4 percent. Strategic development programs, particularly for our global customers, generated new business in this segment, which contributed significantly to overall sales. The contribution of the individual Hellmann regions shows little change compared to the previous year. With 57.3 percent of the total turnover, Europe continued to be the strongest sales region with the largest land transport organizations. The Americas region contributed 18.6 percent to total revenues, which is very positive in view of the extensive structuring measures in this region. Asia s contribution to total sales has fallen by 0.5 percent as a result of the slowdown in economic growth in China. OMEA s share increased as a result of growth, particularly in the area of Industry Solutions. For the current financial year 2017, we expect a continuation of the positive business development by intensifying the structuring measures. The founding of the three divisions Air & Sea, Road & Rail and Contract Logistics in August this year was a milestone in the company s repositioning. The new corporate structure leads to greater transparency and clearer responsibilities within the individual business areas. In this way, the different strategies of the product areas can be developed simpler and more focused and most especially, implemented. The renaming of the holding company to a Societas Europaea (SE) in the fourth quarter of 2017 also contributes to the further professionalization of corporate structures and, thus, to the further successful development of the Group. Yours sincerely Dr. Thomas Knecht Managing Director Jost Hellmann Managing Partner 4 5

4 Sustainability Report Our corporate DNA Our corporate DNA F A M I L Y First, People First All About The Customer, Always Making It Work Better, Everyday Innovation And Entrepreneurship Live Sustainability You And Me! The success of a company depends on its employees. That is why we create an attractive and professional environment at Hellmann, which captivates, binds, and promotes the interest of good employees. Through training, remuneration and recognition, we encourage our employees to develop their talents in a climate of mutual respect and trust. They determine how our company is perceived externally. They directly influence the satisfaction, enthusiasm and loyalty of our customers and we know that. That is why people always comes first. We are constantly looking for ways to expand and improve our services so that we can exceed the requirements and expectations of our customers. It is our goal to offer our customers around the world the knowledge and experience they need most. We achieve this by listening to them and taking the time to get to know them better. The customer is always our focus. We ensure that all our tasks are handled with a view to our customers. This leads to long-term customer relationships, which we are rightly proud of. Through business processes with high quality standards, we are continuously improving our organizational agility and operational efficiency. We use every opportunity to increase efficiency by improving productivity and maintaining excellent supplier relationships. As a result, we not only contribute to our results, but also improve the added value for our customers. In addition, we consistently live the Continuous Improvement Process (CIP). At Hellmann, we promote creativity, innovation and entrepreneurial spirit in all areas and create an environment in which risks are allowed. We encourage our employees to develop unconventional ideas and to drive the adaptation of our services to our customers wishes. We want to meet the constantly changing requirements and expectations of our customers. At Hellmann, we attach great importance to a service offering based on economic, ecological and social sustainability. After all, it is about the chances for future generations. We are responsible for people, society and the environment in all areas where we operate. And we act accordingly. It is these principles of sustainable development that help us to secure the future of our family business. Every day, we set new goals and face new challenges. Whether it is a successful shipment, a change of work process, or new concepts that are still under development - You And Me makes it possible. The guiding principle stands for mutual responsibility. A responsibility that gives us support in times when we have to rely on each other. You And Me also stands for the cooperation which encourages us to support others and to motivate us to develop solutions together for our customers. 6 7

5 Sustainability Report In the Sign of the Wild Geese In the Sign of the Wild Geese The wild goose is more than just a brand label for us - it symbolizes our entire corporate philosophy. Have you ever observed the V-shaped formation of wild geese swarms? The V-shaped swarm of wild geese is considered a phenomenal representation of science and cooperation. None of the animals could handle the trip alone. Wild geese plan their flights down to the smallest detail, weigh the risks of the journey and have excellent communication and perfect coordination. They are loyal to each other for a lifetime and have a strong sense of responsibility. In our opinion, these are the characteristics that make an excellent logistics service provider. For us, the wild goose reflects the virtues of our family business and shows the reasons for our success. Reliable and long-term relationships with the company, a sense of responsibility, flexibility, a sense of innovation and excellent communication - in short, a trademark that suits us. 8 9

6 Sustainability Report Product Divisions Product Divisions Air & Sea Contract Logistics Airfreight, Seafreight, Sea-Air Our air freight specialists provide individual solutions in a global network of carriers and service providers. Long-term experience and partnerships with leading shipping companies enable our ocean freight experts to offer an efficient freight transport. The Sea-Air service is the ideal combination of economy and speed, up to 80 percent faster than sea freight and is much cheaper than direct air freight. In a world of growing demands from manufacturers, retailers and consumers, innovative concepts and solutions for global supply chains are an important key to securing and expanding market shares. That is why we accompany our customers through their entire value-added process. From the first idea on paper to the goal-oriented implementation, Hellmann realizes every step of the logistics chain, from the supplier to the customer. Road & Rail Other Products and Services Groupage, Direct Load and Hellmann East Europe We are one of the leading medium-sized groupage freight forwarders across Germany and Europe. As a member of the System Alliance and System Alliance Europe, we are part of a general cargo network that works in cooperation with other logistics companies. With Hellmann East Europe, we are able to extend this service to the CIS countries. Part and full loads are provided quickly and safely door-to-door. Courier service, express service, package service and Nightstar Express Our CEP services offer tailor-made solutions for all time-critical shipments. Whether by courier service, express service with the SystemPlus organization, package service combined with the DPD or the Nightstar Express for urgent overnight deliveries, we offer comprehensive services through our strategic partners and deliver reliably and punctually throughout Germany and internationally. Rail Solutions Hellmann Worldwide Logistics relies on the railway all throughout Germany and Europe. Thanks to our Rail Solutions International product, we can even reach customers across the borders of our continent to Asia. We transport goods reliably, on time, and sustainably by rail, thus, protecting the environment. In addition to the rail services between dispatch and receiving stations, we offer the organization the handling of the preliminary and post-production runs. Academy, Consulting Security & Safety and EUROS (Insurance) The Hellmann Academy is the point of contact for the development of employees and executives. Consulting Security & Safety advises on all matters relating to waste and environmental management, work safety and health care, hazardous materials management, fire protection and much more. Our in-house insurance service EUROS specializes in mediation of personal and property insurance, especially in the commercial sector. ecommerce Complex requirements in a dynamic ecommerce market require a strong and competent partner. As part of Hellmann Worldwide Logistics, Hellmann ecommerce offers professional solutions for all areas of e-business from the online shop via middleware, payment solutions and customer care to warehousing. We implement multichannel strategies and connect the desired sales channels. HPM (Recycling) and PCO (IT Solutions) HPM supports the establishment of environmental management systems as well as the optimization of material flows. As a certified waste disposal company, we offer high-quality and individual solutions. The Hellmann-Sister PCO provides a customer-oriented and holistic combination of consulting, support and services for all IT-supported business and logistics processes

7 Sustainability Report Industry Solutions Industry Solutions Agricultural Logistics Whether project, procurement or distribution logistics, our professionals have the know-how and the right logistics solution for agriculture. Automotive Logistics As automotive specialists, we offer individual solutions for complex logistics requirements when procuring production and spare parts. Cruise Logistics We create special supply chain solutions for the requirements of cruise fleets and serve all areas of the supply chain. Perishable Logistics Whether it s flowers or food from origin to destination, we stand by our customers and offer all logistics processes from a single source. Project Cargo With systematic organization and innovative solutions, we offer optimal project logistics for the mining, energy, construction, oil and gas industries. Renewable Energy The future belongs to renewable energies. We recognized this at an early stage and developed our own industry solutions for wind, solar and bioenergy. Fashion Logistics For the fashion industry, we offer certified processes, customized and integrative IT tools as well as additional value-added services, such as the fashion box. Fast Moving Consumer Goods We understand the needs within the supply chain of fast moving consumer goods and can, thus, transform challenges into opportunities. Healthcare Logistics We meet the high requirements of the healthcare industry with suitable concepts for transport management, warehousing and packaging. Hi-Tech Logistics Hi-Tech products are in good hands with us. Specialized teams design supply chains as efficiently as possible and offer integrated solutions. Hospital Logistics Through efficient process management and unique know-how, we realize the optimization of organizational structures in hospitals around the world. Marine Solutions Our tailor-made products meet the requirements of time-sensitive shipments from shipping companies, shipyards, ship owners and their suppliers

8 Facts & Figures Economics

9 Sustainability Report Our Employees Our Employees» First, People First Our Employees are the Foundation of our Success. «Employees Europe Employees Americas The goal of our HR work is to bind employees to the company in the long term and thus, to enable a stable company development. We believe that well-trained and experienced colleagues are crucial to the success of our company. This is why we offer our employees a wide range of attractive development opportunities and promote international and interdisciplinary cooperation in our company. It is not without reason that the top maxim of our corporate DNA is First, People First. In line with this principle, in, we counted 13,371 employees worldwide for our Hellmann Family. Broken down at individual regions, employment growth is almost everywhere. In the Europe region, 7,447 people were employed by us in. The ASIA region had 2,718 employees, AMCS had 2,096 and OMEA had 1,110. In total, this is 836 employees more than in the previous year, which means an increase of 6.7 percent. This increase is primarily attributable to the successful development, especially in the case of the personnel-intensive contract logistics sector. Employees OMEA 7,241 6,702 7, ,049 1,110 Employees Asia Employees in Total 2,082 2,172 2,096 2,568 2,612 2,718 12,872 12,536 13,

10 Sustainability Report Development of the Company Group Development of the Company Group Revenue Percentages National and International 42+58K57+43K National 41.9 International 58.1 Revenue percentages of the Regions 57+43K18+82+K11+89K13+87K Europe 57.3 Revenue percentages of the Divisions 24+76K24+76+K30+70K22+78K Air Freight 23.7 Americas 18.6 Sea Freight 25.4 OMEA 11.4 Road 30.1 Asia 12.7 Miscellaneous 20.8 Revenue of the Divisions in Million EUR Air Freight Sea Freight Road Miscellaneous 814= 840= 1000= 690= Total Revenue in Billion EUR 970= 1000= 970= » Stable Turnover at around EUR 3.0 Billion. «The Hellmann Group is looking back on a positive business development in. The sales figures for the past financial year defy the generally tense market situation and surpass the forecasts. The positive development reflects the successful reorientation of the Hellmann Group, which was launched in. Compared to the Hellmann regions, the majority of worldwide sales were regenerated at 57.3 percent, followed by AMCS with 18.6 percent, the ASIA region with 12.7 percent and OMEA with 11.4 percent. The ratio of domestic and international sales was similar at 41.9 percent to 58.1 percent, as in the previous year. It should be noted that Hellmann realized the majority of its sales in the seven largest national organizations at around 74 percent. These are Germany, USA, China, Mexico, South Africa, Australia and UK. The breakdown of sales by product is as follows: Road & Rail accounted for 30.1 percent of total revenue, followed by sea freight with 25.4 percent and air freight with 23.7 percent. A further 7.2 percent was achieved in contract logistics. All other products and services, such as the Customs Brokerage segment, accounted for 13.6 percent of total sales. The Hellmann Group s sales totaled around EUR 3.0 billion

11 Sustainability Report The Region Europe (Land Transport) The Region Europe (Land Transport)» Solid Growth of 6.8 Percent. «Through a wide range of measures, we were able to push ahead with the standardization of our European land transports last year. We have succeeded in making the internal processes in the main stream more efficient and to further improve the quality of our European connections. In addition, we significantly increased our share in the charter cargo area and were able to provide the required cargo space in the best quality. This was necessary given the tonnage increase of 10.7 percent in European land transport. In total, we were able to ensure optimal pricing for our customers by improving the volume utilization in the national and international line runs. At million consignments, the volume of shipments in European land transport was 0.5 percent lower than in the previous year. Nevertheless, we were able to increase sales by 6.8 percent K100+K99+1K 17,942,614 18,462,730 18,366, K90+10K100K 6,645,191 Road Transports Road Tonnage 6,921,017 7,660,595 Road Revenue in Million EUR 940= 940= 1000= Miscellaneous Revenue in Million EUR 1000= 910= 790=

12 Sustainability Report The Region Europe (Air and Sea Freight) The Region Europe (Air and Sea Freight) Air Freight Consignments 94+6+K98+2K100K 196, K56+44K90+10K 140, K79+21K81+19K 250, ,131 Air Freight Tonnage 140,862 Sea Freight TEUs 255, , , ,654 Air Freight Revenue in Million EUR Sea Freight Revenue in Million EUR 820= 870= 790= 970= 1000= 870= » Volume Growth Clearly Above Market Level. «The sea freight industry has experienced a stormy year in. The insolvency of the South Korean shipping company Hanjin Shipping made headlines, challenged supply chains and procurement teams. Nevertheless, we followed the positive trend of the past few years and in, we were able to close the market with a TEU increase of 3.2 percent. We have, thus, succeeded in implementing our growth targets for the past fiscal year and have gained important shares in a highly competitive market. Despite growing volumes, our sales decreased by 11.5 percent as a result of the low margins in European ocean freight. The growth in European airfreight business was above the general market level in in terms of transported volumes. As a result, we were able to successfully counteract the trend of stagnation from previous years, even though sales in this segment decreased by 8.1 percent. Overall, we achieved a significant volume growth of 60.3 percent and a 1.6 percent increase in shipments which is a good base to improve our buying

13 Sustainability Report The Region Americas The Region Americas» Strategy Change Brings Turnaround. «In the AMCS region, major structural changes have been made to our organization in. In the US, we have strategically optimized our footprint with the result of increasing the scalability of our services and further standardizing operational processes. Central and South America show a strong vertical focus on our Industry Solutions like in previous years. In air freight, the number of tonnage transported decreased by 12.1 percent, but we were able to increase shipments by 1.6 percent to 150,333 shipments. This development boosted our revenues and shows a 14.6 percent increase in sales. Sea freight in the region suffered from generally difficult market conditions. At 196,134 TEU, we lost 5.7 percent, which reduced revenues by 9.2 percent. Despite difficult conditions in ocean freight, we were, nevertheless, able to increase overall sales in the Americas by 0.8 percent in the past financial year. Through the comprehensive structuring measures and the consolidation in the sea freight industry, we expect the positive trend to continue in the coming years. Air Freight Consignments K71+29K75+25K 148, K100K88+12K 232, K64+36K60+40K 207, ,983 Air Freight Tonnage 251,562 Sea Freight TEUs 207, , , ,134 Air Freight Revenue in Million EUR Sea Freight Revenue in Million EUR Miscellaneous Revenues in Million EUR 680= 840= 920= 870= 990= 850= 920= 1000= 990=

14 Sustainability Report The Region OMEA (Oceania, Middle East, Africa) The Region OMEA (Oceania, Middle East, Africa) Air Freight Consignments K28+72K29+71K 62, K18+82K24+76K 46, K35+65K36+64K 113,924 58,754 Air Freight Tonnage 45,263 Sea Freight TEUs 114,476 60,659 61, ,053 Air Freight Revenue in Million EUR Sea Freight Revenue in Million EUR Miscellaneous Revenues in Million EUR 330= 340= 430= 540= 530= 500= 710= 940= 980= » Positive Trend Confirmed. «In, the OMEA region was characterized by continuity and profit primarily from long-term customer relationships. Furthermore, we gained profitable new customer business through intensified sales activities. There was significant growth in air freight due to increased demand for Perishable Logistics, particularly in Australia, New Zealand and the United Arab Emirates. The increase in the general cargo business also boosted the business that we observed a strong revenue growth of 28 percent and an increase of 35 percent in the tonnage. The growth in ocean freight was 1.4 percent lower, but the overall situation in the global ocean freight sector is positive. The Customs Brokerage and, above all, our contract logistics business were linked to the positive trend in recent years and increased sales by 8.9 percent. The driving force behind this positive development was the good performance in New Zealand and the Arabian Peninsula. Overall, we generated sales of around EUR 340 million in in the OMEA region - an increase of 9.3 percent compared to

15 Sustainability Report The Region Asia The Region Asia» Hope for Rising Domestic Demand. «The People s Republic of China continues to dominate the lion s share of our Asian business despite its slowed down economic growth. Also fueled by the insolvency of the South Korean shipping company Hanjin Shipping, we noticed an increased demand for rail transport between Asia and Europe. Additionally, we expanded our offer for South Korea, Japan and the other ASEAN countries through a deepened partnership with the port of Lianyungang. The Indian market is still on the upward path. We were particularly benefiting from the growing demand in the automotive sector as well as for products from the areas of health care and fashion. With a newly opened Competence Center in Mumbai, we secured sustainably important market shares on the Indian subcontinent. The number of air cargo shipments in the Asian region in fell by 3.6 percent with a total of 186,624 shipments, although the tonnage increased by 5.4 percent. This had a negative impact on sales of 4.5 percent. In the sea freight business, the number of TEUs transported was only slightly weaker than in the previous year. However, we were not able to maintain the good sales figures from due to the high price pressure, which meant that we had to record sales losses of 9.5 percent. As a result of the emerging middle class in the emerging markets, we expect the domestic demand for consumer goods, medical supplies and industrial goods to rise in the future, in which we expect to see a recovery in the overall volume of trade in the Asian region. Air Freight Consignments 98+2+K93+7K90+10K 205, K55+45K58+42K 141, K100K99+1K 316, ,686 Air Freight Tonnage 138,538 Sea Freight TEUs 324, , , ,538 Air Freight Revenue in Million EUR Sea Freight Revenue in Million EUR Miscellaneous Revenues in Million EUR 1000= 940= 920= 490= 530= 460= 200= 280= 350=

16 Committed to the Future Ecology

17 Sustainability Report Committed to the Future Energy Management System Environmental Training in e-learning Already in, the QHSE team developed an e-learning for environmental management in order to create more awareness for a sustainable use of resources. E-learning also helps us to meet the requirements of ISO certification for the training of our trainees. By the end of, more than 1500 employees have already successfully completed the training. E-learning includes training on the environmental impacts and aspects of our business and shows what employees can do to support environmental management and minimize our negative impact on the environment. The damage caused by carbon dioxide emissions and the related climate changes are also topics of training, as well as the handling of dangerous goods. Our activities on operational sustainability management have become more integrated last year. The environmental management system according to ISO could be extended by additional contract logistics sites. Over and above, we have successfully complemented our sustainability management in the areas of health and safety and energy. Hellmann can prove this successfully through the first certification according to the international standards BS OHSAS and ISO With the ISO certificate, Hellmann complies with the national requirements of the EU Energy Efficiency Guidelines, which were implemented in Germany by the Energy Services Act (EDL-G). Further to the requirements for compliance, we also expect the energy management system to improve the measurability of our own environmental performance. is the first year in which the Region of Europe was subject to a complete and valid valuation of the Company Carbon Footprints (CCF) with a few exceptions. The results show that we are on a very good path with just under 1.8 million kilos of saved CO2 emissions in the different energy carriers. We intend to further intensify our sustainability management activities in the coming years. Finally, through our measures for environmental sustainability, we also meet our responsibility for succeeding generations. This is firmly embedded in our corporate DNA under Live Sustainability

18 People in Focus Social Matters

19 Sustainability Report People in Focus Social Health and Safety at Work Diversity Stable Health Rate Integration of People with Disabilities Traffic and logistics employees are at the top of the workforce in Germany with an average of 22 days of absence. We intend to specifically counteract these statistics by means of measures for occupational health management. After all, as a company, we are aware of our responsibility towards our employees. In, we began to expand occupational health care across Germany. The goal is to offer our employees on-site targeted, health promotion measures. As a company, we want to use all the potential of our employees in order to be successful in our business areas. This also includes the integration and continued employment of people with disabilities. In line with the Charter of Diversity, we have committed ourselves to promote the inclusion of people with disabilities and to raise awareness about this issue. In, we issued a guide for managers and staff in the human resources area, which provides important answers to questions about the recruitment and employment of people with disabilities. With the aid of the guide, Hellmann would like to contribute to a facilitated preparation and follow-up of the recruitment process. Not only are questions about the employment of people with disabilities clarified, but also general notes on the training are given. The aim of the guideline is to make the awareness process for the topic People with disabilities more firmly anchored in our corporate culture

20 Sustainability Report People in Focus Work-Life Balance Often people in need of care are nursed at home by working relatives. This inevitably presents the nurses with major challenges: How can jobs and care be reconciled? Answers to these questions were dealt with in as part of the Care and Career series of events. The aim is to raise the awareness of professionals and staff responsible for the challenges of the compatibility of care and work and, thus, to achieve advantages for employees as well as for companies. In this way, we were able to gain important insights into the problems of demographic development in order to reduce the risk of absenteeism by the time and energy-intensive care of relatives to a necessary minimum. The findings were summarized in a nursing guide. Integration of Refugees The persistently difficult situation in many countries of the Middle East, Africa and Afghanistan forced millions of people to leave their homeland in the years and. For many, the countries of the European Union were regarded as safe havens. In, the Federal Republic of Germany, in particular, received a large number of refugees. In times of a massive shortage of skilled workers, especially in logistics, where for example professional drivers are being sought, such an increase in population offers enormous potential - assuming the successful integration of the refugees. The most important criterion for integration is still language acquisition. In, the German Foundation for Integration established the I speak German initiative together with the TUI Foundation. Hellmann also participated in this in. For example, Hellmann s employees conducted voluntary language courses to make it easier for the new arrivals to start in the foreign country. Several internships in our company were mediated afterwards. In August, the first refugee finally took up an apprenticeship at Hellmann. More are to follow in Through this, we actively commit ourselves to making this possible for many important first steps towards integration

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