Röhlig Annual Report 2012 Rohlig_Annual_Report_2012.pdf


Röhlig Annual Report 2012 Rohlig_Annual_Report_2012.pdf

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CLOSE TO THE MARKETS. CLOSE TO THE CUSTOMERS. | AnnuAl report 20125 Foreword6 Close to the markets.Close to the customers.MANAGeMeNT rePorT14 Business development16 Divisions and regions18 Consolidated companies20 Group22 Structural changesand risk management25 OutlookANNUAL FINANCIAL STATeMeNT26 Balance sheet28 Consolidated profit and loss statement29 Cash flow statement30 AUdITor’S CerTIFICATe31 rePorT oF The AdvISory boArd3

AnnuAl repOrt 2012 | ForewordForeword | AnnuAl repOrt 2012Dear Ladies and Gentlemen,Dear Customers and Partners,With this report we publish the results of our161st year in business. We managed to increaseour business volume by 15.8 per cent – with grossprofits amounting to eur 110.9 million from withinthe consolidated companies and eur 161.9 millionfrom the Group. this was achieved despite hugeturbulence in the container shipping business anda weak air freight market. All regions, with the exceptionof europe, contributed to our growth.the operating result (eBIt) was eur 1.1 millionlower than that of the previous year. However, wewere prepared for this, as our primary objectiveis not the short-term maximisation of profits. Weare unable to secure our future by simply reducingcosts; no one has ever achieved significance bycontracting. Investment in the expansion of newbusiness areas therefore takes priority over shorttermpursuit of profit.At this point, I would like to thank the membersof our Advisory Board for their invaluable commitment.With them, we are concentrating onimplementing our 2018 strategy and the longtermdevelopment of röhlig. We aim to protectthe company against all future developments andmake it highly productive to maintain our financialindependence and our ability to determineour future. the long-term success of röhlig greatlydepends on the confidence of our customers,the commitment of our staff and our capacity forinnovation.We regard 2012 as a year of consolidation. Wemade progress in restructuring our German businessand completed the integration of the investmentswe made in South America and the uSAin 2011. Furthermore, we also invested in projectbusiness and the development of supply chainmanagement solutions, and appointed thomasHansen to the vacant board position in Miami,uSA. We are therefore well-equipped to face anyfuture challenges.I would like to thank our customers and businessassociates for their confidence and their interestin röhlig. On the following pages you can readmore about how we solve complex forwardingand logistics tasks. Despite the latest technologyand digital networks, it is our staff who remainthe key players. We combine “high quality” and“high tech” with “high touch” – that’s what makesthe difference, and for that, I extend my gratefulthanks to all our employees.Yours sincerely,Thomas w. herwigManaging partnerThe röhLIG GLobAL exeCUTIve boArd(from left to right) Quentin lacoste, thomas Hansen, thomas W.Herwig, Hans-ludger Körner, ulrike Baum, Jan Skovgaard4 5

AnnuAl report 2012 | CLOSE TO THE MARKETS. CLOSE TO THE CUSTOMERS.CLOSE TO THE MARKETS. CLOSE TO THE CUSTOMERS. | AnnuAl report 2012»Our Global executive Board islocal – with CeOs in all the world’skey trade areas. We consider proximityto the markets a top priority.«By proximity we don’t just mean knowledge ofregional market conditions. thanks to our manyyears of experience – and our self-image as anowner-managed family company – we know howimportant it is to be familiar with the culture andvalues of our customers. We listen to them to beable to understand their needs. All this has led toour business relationships becoming long-termpartnerships.this conviction has shaped our business activitiesfor many years. Our executive managers arethus personally present in the world’s key economicareas. In addition to the central functionswhich are managed from Bremen, a CeO withoperative responsibility is present in Hong Kongfor our Asia/pacific business, in Miami for northand South America and South Africa, and in Hamburgfor europe and India. this means we’re closeto our customers’ businesses and are thus ableto master highly complex logistical challengesefficiently – an integral aspect of our ambitiousgrowth strategy.UTC - 5 | 08.42 A.M.13 JAnuArY 2012UTC +1 | 02.42 P.M.13 JAnuArY 2012UTC +8 | 09.42 P.M.13 JAnuArY 2012MIAMI, U.S.A.HeAD OFFICe: AMerICAS/AFrICAThoMAS hANSeNCeO AMerICAS/AFrICAhAMbUrG, GerMANyHeAD OFFICe: eurOpe/MIDDle eASt/SuBCOntInentQUeNTIN LACoSTeCeO eurOpe/MIDDle eASt/SuBCOntInenthoNG KoNG, ChINAHeAD OFFICe: ASIA/pACIFICJAN SKovGAArdCeO ASIA/pACIFIC6 7

AnnuAl report 2012 | CLOSE TO THE MARKETS. CLOSE TO THE CUSTOMERS.CLOSE TO THE MARKETS. CLOSE TO THE CUSTOMERS. | AnnuAl report 2012»perfect organisation, personalcommitment and a precise knowledgeof local conditions worldwideare required for optimum sea freightoperations.«utC -3 | 03.00 p.M.NorTh ATLANTIC oCeAN42° N, 46° wMOnDAY, 1 OCtOBer 2012utC +2 | 08.10 A.M.breMeN, GerMANyMOnDAY, 17 SepteMBer 2012utC +2 | 10.15 A.M.roTTerdAM, NeTherLANdStHurSDAY, 20 SepteMBer 2012utC -1 | 02.35 p.M.NorTh ATLANTIC oCeAN49° n, 8° WMOnDAY, 24 SepteMBer 2012utC -5 | 11.42 A.M.ChICAGo, USAtueSDAY, 16 OCtOBer 2012utC -4 | 09.35 A.M.MIAMI, USAMOnDAY, 22 OCtOBer 20128 9

AnnuAl report 2012 | CLOSE TO THE MARKETS. CLOSE TO THE CUSTOMERS.CLOSE TO THE MARKETS. CLOSE TO THE CUSTOMERS. | AnnuAl report 2012»time is of the essence in the caseof air freight. proactivity, forwardthinkingand swift actions are key tosuccess. these are our strengths.«utC +4 | 03.00 p.M.INdIAN oCeAN19° N, 63° eSAturDAY, 10 MArCH 2012utC + 1 | 09.10 A.M.STUTTGArT, GerMANytHurSDAY, 8 MArCH 2012utC +1 | 05.10 A.M.FrANKFUrT, GerMANySAturDAY, 10 MArCH 2012utC +1 | 08.00 A.M.FrANKFUrT, GerMANySAturDAY, 10 MArCH 2012utC +7 | 09.15 p.M.INdIAN oCeAN17° S, 111° eSAturDAY, 10 MArCH 2012utC +11 | 09.15 A.M.SydNey, AUSTrALIAMOnDAY, 12 MArCH 201210 11

AnnuAl report 2012 | CLOSE TO THE MARKETS. CLOSE TO THE CUSTOMERS.CLOSE TO THE MARKETS. CLOSE TO THE CUSTOMERS. | AnnuAl report 2012»technical knowledge about everyaspect of a shipment is neededfor project logistics. Our specialistsbecome experts on every singleproject.«utC +5 | 10.42 A.M.INdIAN oCeAN1° S, 79° eWeDneSDAY, 20 June 2012utC + 8 | 08.20 A.M.beIJING, Pr ChINAMOnDAY, 4 June 2012utC + 8 | 09.15 A.M.ShANGhAI, Pr ChINAWeDneSDAY, 13 June 2012utC +2 | 11.15 A.M.hAMbUrG, GerMANyMOnDAY, 9 JulY 2012utC +2 | 04.17 p.M.hAMbUrG, GerMANytueSDAY, 10 JulY 2012utC +2 | 10.45 A.M.bUTJAdINGeN, GerMANyFrIDAY, 20 JulY 201212 13

MANAGEMENT REPORT | BUSINESS DEVELOPMENTBUSINESS DEVELOPMENT | MANAGEMENT REPORT»We managed to record solidgrowth – in spite of the euro crisis.«(i)the highest grossprofit in the company’shistory was recordedfor the third time insuccession at eur111 m.Increase in sales and gross profitthe 161st financial year was a successful one forröhlig. We were able to extend the business invirtually all regions, with the highest growth rates,like last year, being achieved in America. Withsales totalling eur 572 million, the highest grossprofit in the company’s history was recorded forthe third time in succession at eur 111 million. thisrepresents an increase of 15.3 per cent comparedto the previous year. Approximately 4 per centof this growth is attributable to currency effects.the consolidated companies’ annual result, onthe other hand, was eur 1.7 million down on theprevious year. the recession in europe is one ofthe influen cing factors impacting on our results.We used 2012 to consolidate our business by onthe one hand successfully pushing ahead with restructuringthe German business and, on the other,completing the integration of the investments wepurchased in 2011 in South America and the uSA.the growth we achieved is thanks to the joint effortsof our employees worldwide. together we arepursuing our ambitious Strategy 2018, in order topreserve röhlig’s independence and act as a competentadviser to our customers in the long term.Euro crisis slows down growth in Europethe sovereign debt crisis in many europeancountries led to a recession in europe in 2012.Above all, our businesses in Spain and Italy wereaffected. Overall, growth in transport volumesfailed to meet expectations in the year underreview. this could be felt most strongly in theair freight sector. In the area of sea freight thehigher percentage growth in the freight spaceon offer compared to cargo volume had a majorimpact on the volatility of rates and made themarket very unpredictable for all participants.In 2013, once again, non-european countrieswill provide the main growth momentum in theglobal economy. It is created in the regions ofthe world with high economic development potentialand, at the same time, strong populationgrowth. they include, in particular, China, Indiaand Indonesia, and also Africa and parts of latinAmerica.GroSS ProFIT deveLoPMeNT(CoNSoLIdATed CoMPANIeS)2008 – 2012 in TeUr100908070605040302010077,850200867,515200983,292201096,1852011110,8672012GroSS ProFITin teur 2012 2011Consolidated companies 110,867 96,185Associated companies 51,061 43,704Total 161,928 139,889Growth despite volatile marketsIn 2012, the global sea freight market was characterisedon the one hand by permanent overcapacitieson the main routes and, on the otherhand, the global increase in sea freight volumewas considerably lower than had been forecasted.the overcapacities were mainly caused by alarge number of newly built ships that had beenput into service. this led to strong price fluctuationsfor our customers and us. In the first half ofthe year we were confronted with significant rateincreases at short intervals. After the heavy lossesin 2011, the priority for shipowners was their ownearnings situation. However, in the second half ofthe year we experienced a new battle for marketshares, with rates falling again at a lightning pace.essentially, in our principal markets we are experiencinga volatility in sea freight rates that hasnever been seen before, which is set to continuein 2013. In spite of this market trend, we were ableto increase our volume in the sea freight sectorby 4.1 per cent.the globally transported air freight tonnage declinedin the year under review, especially in theAsia-pacific region. According to our observations,the reduced air freight volume is not only aneconomic matter but also increasingly linked tostructural issues. More and more companies arechanging their delivery chains over to sea freight,especially when it comes to price-sensitive products.the airlines reacted by reducing their fleets,but it did not compensate for the falling freightvolume. In the consolidated companies this wasreflected in a volume reduction of 1.1 per cent, althoughröhlig Deutschland increased its volumeby 14.2 per cent.Workforce continues to growAs gross profit rose, so did the number of employees.the yearly average number of employees inthe röhlig Group stood at 2,343, which is 251 morethan the yearly average of the previous year. thenew companies in South America were included inthese figures for the first time. Overall, the growthin employee numbers took place outside europe.For many years we have continued to promote therecruitment of junior executives from our own ranksthrough numerous staff development measures.For example, at röhlig Deutschland we have an apprenticeshipratio of 16 per cent, and in South Africawe recruit up to 15 young adults in our learnershipprogram every year.At the start of 2012, we once again brought homeour values and corporate principles to all employeesworldwide in workshops within the scope ofour Blue Show and jointly developed core objectivesfor 2013 for each country. Such measureseMPLoyeeS2012 2011Germany 341 337thereof röhlig Deutschlandand r+C Commodity 243 245thereof röhlig Holding,röhlig blue-net, Blue Services 98 92Belgium 17 20France 121 112Great Britain 40 40Italy 40 44the netherlands 19 19Spain 24 25Denmark 8 6Australia 174 159new Zealand 54 51Hong Kong/China 122 125Singapore 25 25Korea 39 35uSA 186 128Canada 11 12Chile 26 25India (rohlig Blue Services) 10 0Argentina 22 0paraguay 8 0uruguay 24 0Total Röhlig consolidatedcompanies1,308 1,163South Africa 539 464India* 160 163thailand 19 13Japan 25 6China 236 232uAe 26 25taiwan 30 27Total associated companies 1,035 929Total Röhlig Group 2,343 2,092* employees India: 31.03.201214 15

MANAGEMENT REPORT | divisions and REGionsdivisions and REGions | MANAGEMENT REPORT»Investment in our new Supply ChainManagement business segment has apositive effect.«(i)new acquisitions inSouth America and theuSA make a positivecontribution to thedevelopment of thecompany.dIvISIoNSDouble-digit growth in the air freight and seafreight sector/New SCM business segmentDespite the difficult market conditions, we havebeen able to significantly increase our gross profitin the sea freight sector. 8.6 per cent of thisgrowth is due to the first-time consolidation ofnew acquisitions in South America and the uSAand 3.6 per cent of it is attributable to organicgrowth. even in the air freight sector we managedto achieve a double-digit increase in gross profit,despite falling transport volumes in the market.For the first time the investments in the new SupplyChain Management (SCM) business segmenthad a positive effect this year. these intensifiedactivities are part of our Strategy 2018.therefore, a significant increase in gross profitwas posted above all in the area of Other services,in which our intensified activities in the SupplyChain Management segment are combined.ensure that our staff are able to grow with thechallenges presented both by the market andour customers, and can always offer customerservices of the highest possible quality. For 2013,we are planning to launch our third Blue Arenaprogramme, in which 12 already experienced executiveswill participate. they will receive trainingand will be entrusted with developing and implementingcost-cutting and product developmentprojects. the aim is to prepare managers for apotential position as a director of one of our subsidiaries.GroSS ProFIT by dIvISIoN(CoNSoLIdATed CoMPANIeS)in teur 2012 2011Sea freight 64,244 57,236Air freight 41,892 35,717Other services 4,731 3,232Total 110,867 96,185ShAreS58.0% Sea freight37.8% Air freightreGIoNSGrowth outside Europethe importance of the America region continuedto rise in the year under review. the distribution ofthe generated gross profit in röhlig’s consolidatedcompanies shows a shift towards the regionsoutside europe. Whilst America, and in particularthe uSA, is enjoying above-average growth, Germany’sand, especially, europe’s share of the overallgross profit is in steady decline.GroSS ProFIT by reGIoNS(CoNSoLIdATed CoMPANIeS)in teur 2012 2011Germany 21,567 20,509europe (excl. Germany) 25,456 26,094Australia / new Zealand 23,086 19,762Asia 13,420 12,068America 27,338 17,752Total 110,867 96,185ShAreS12.1% Asia23.0% europe (excl. Germany)19.4% Germanyfreight and air freight business within Asia (Intra-Asia) as well as between north and South America.Within the röhlig Group, which also includes theassociated companies in China and South Africa,there is also a shift towards the regions outsideeurope. europe’s share, including Germany, nowstands at 29 per cent, whereas in 2008 it was 42per cent. this fact alone makes clear that in recentyears, röhlig has transformed itself from an internationalfreight forwarder based in Germany to aglobal provider of logistics services.GroSS ProFIT by reGIoNS (GroUP)in teur 2012 2011Germany 21,567 20,509europe (excl. Germany) 25,456 26,094Australia/new Zealand 23,086 19,762Africa 31,108 27,336Asia 33,373 28,437America 27,338 17,752Total 161,928 139,889ShAreS15.7% europe (excl. Germany)13.3% Germany16.9% America(i)America, and inparticular the uSA,is enjoying aboveaveragegrowth.4.2% Other services20.8% Australia / new Zealand20.6% Asia24.7% America19.2% Africa14.3% Australia / new ZealandAs a result of the continuous strategic developmentof the business between the regions outsideeurope and within specific regions, we have beenable to participate in the strong growth in the sea16 17

MANAGEMENT REPORT | divisions and REGionsdivisions and REGions | MANAGEMENT REPORTCoNSoLIdATed CoMPANIeSGermanyIn Germany in 2012 there was a greater focus onimproving the income situation combined with astrict cost control, which led in the second half ofthe year to a positive trend in terms of profits. Inthe year under review, the company in particularsuccessfully expanded its project business. thevolatility of the rate schedule particularly impactedon the margins to the Far east. In 2013 we areexpecting the positive business development tocontinue.GerMANy*in teur 2012 2011Gross profit 21,567 20,509thereof: Sea freight 10,498 10,471Air freight 8,366 8,126Other services 2,703 1,912Adjusted net income -1,671 -1,705thereof: Sea freight and Air freight 228 -604Holding/IBG/Blue Services/blue-net -1,899 -1,101employees 341 337trainees 45 42* röhlig & Co. Holding GmbH & Co. KG, röhlig DeutschlandGmbH & Co. KG, r+C Commodity GmbH & Co. KG,Internationale Beteiligungsgesellschaft mbH, röhligblue-net GmbH & Co. KG, Blue Services GmbH & Co. KGEurope (excl. Germany)In europe, the recession was clearly recognis ableand led overall to a drop in gross profit. Havingsaid that, the individual subsidiaries developeddifferently. thus, the röhlig subsidiaries inFrance and Denmark increased their gross profityear-on-year, while the trend in Great Britain andthe netherlands was constant, and in Belgium,Italy and Spain gross profit nosedived.eUroPe (exCL. GerMANy)*in teur 2012 2011Gross profit 25,456 26,094thereof: Sea freight 16,157 16,678Air freight 8,170 9,054Other services 1,129 362Adjusted net income -670 684employees 268 266* Belgium, Denmark, France, Great Britain, Italy,the netherlands, SpainIn the netherlands, the financial situation couldbe held at a stable level, despite the tense marketsituation, due to the successful focus on the newSupply Chain Management business segment.In Great Britain, we were able to keep grossprofit at the previous year’s level in the year underreview, but even here there was a decline inthe result due to the high margin pressure. In theSupply Chain Management segment, röhlig uKwas able to further extend its range of warehousingservices.In Italy, Spain and Belgium, we had to make upfor the loss of a key account as well as high marginpressure, but success was limited. However,in Italy we managed to notch up our first positiveexperiences in the Supply Chain Managementsegment. Despite the recession, we are expectingfurther impetus for 2013 in this field. Spainis still in a very difficult economic situ ation. thefocus here is on expanding the transatlantic business.In Belgium, we will utilise cost-cutting potentialby streamlining administrative processes.röhlig France managed to generate a slight increasein gross profit. the margin pressure couldalso be clearly felt in France. We invested in anew office in le Havre and also in developingnew products, and for this reason we could onlyachieve a satisfactory result.Our company in Denmark boasted a sharp increasein gross profit of 32 per cent. At the sametime, we have invested in the sales area and indeveloping air freight products, although thishad a negative impact on the result.Pacific (Australia/New Zealand)In Australia, we experienced a fall in customer demandin the air freight sector. therefore, in 2012we were not quite able to replicate the positiveresult from 2011. Increasingly, we are observing asplit in the Australian market between fast-growingcommodities industries in the west and otherindustries in the rest of the country where growthis levelling off. In new Zealand, the result was alsodown on 2011, but it was still satisfactory. We acquirednew business in 2012 very successfully andare extremely confident about the prospects for2013.AUSTrALIA/New ZeALANdin teur 2012 2011Gross profit 23,086 19,762thereof: Sea freight 13,901 11,661Air freight 8,867 7,977Other services 318 124Adjusted net income 2,354 2,659employees 228 210Asiathe company Hong Kong/South China was ableto achieve a very good result, whereas the resultsin Korea and Singapore were down on the previousyear. Despite the decline in exports to europeand the uSA, we were able to expand the businessin Hong Kong and Southern China. new businesswas primarily acquired in the Supply ChainManagement sector. In Singapore, we merged thesea freight and air freight activities at one locationwith a large warehouse and are thereforeable to offer our customers better capacities inthe area of supply chain management products.the subsidiary in Korea invested heavily in salesin 2012 and was therefore unable to achieve theprevious year’s result.ASIA*in teur 2012 2011Gross profit 13,420 12,068thereof: Sea freight 7,882 7,001Air freight 5,073 4,406Other services 465 662Adjusted net income 4,440 4,296employees 196 185* Blue Services India, Hong Kong/South China, Korea,SingaporeAmericaIn America, the financial year 2012 was characterisedby the integration of the new affiliatedcompanies in the röhlig Group, in that we will beincluding Argentina, uruguay and paraguay in theannual financial statements for the first time. Boliviawill be included in the group of consolidatedcompanies for the first time in 2013. In paraguayand uruguay, the result was negatively affectedby restructuring and higher costs. In Argentina,the current political situation, in particular theextreme import restrictions, influenced the resultand led to a loss.Weiss-röhlig uSA was able to improve on theprevious year’s gross profit by 38 per cent andin turn achieve an outstanding result. In 2012,the focus was on fully integrating the companiesSeajet in Boston and CSI International in Chicago,which were acquired in 2011. Moreover, we investedin extending the management and sales to(i)Weiss-röhlig uSAachieved an outstandingresult once again.18 19

MANAGEMENT REPORT | divisions and REGionsdivisions and REGions | MANAGEMENT REPORT»the associated companies are alsoof strategic importance for the röhlignetwork.«(i)the rise in the grossprofit of the röhlig-Grindrod Groupamounted to13.8%.adjust the structures to the strong growth of theorganisation.Our subsidiary in Canada was able to up its performancecompared to the previous year. In Chile,on the other hand, we posted a loss due to a baddebt, despite a 20 per cent increase in gross profit.AMerICA*in teur 2012 2011Gross profit 27,338 17,752thereof: Sea freight 15,807 11,426Air freight 11,416 6,154Other services 115 172Adjusted net income 543 1,574employees 276 165* Argentina, Canada, Chile, paraguay, uruguay, uSAGroUPRöhlig GroupIn addition to the consolidated companies, theröhlig Group also includes the associated companiesin South Africa, China, India, Japan, taiwan,thailand and the united Arab emirates. thesesites are all of major importance for the röhlignetwork. the companies are included “at equity”in the consolidated accounts.South AfricaIn South Africa, economic growth slowed dueto the crisis in europe. nevertheless, the röhlig-Grindrod Group managed to increase its grossprofit once again by 13.8 per cent. this improvementwas mainly generated in the area of thewarehousing business, in that we can now offerour customers 15,000 square metres of storagespace. We also succeeded in securing a large projectcontract that will run for five years.SoUTh AFrICA*in teur 2012 2011Gross profit 31,108 27,336net income after taxes 6,221 6,006net income from equityconsolidation 2,658 3,003employees 539 464* Mozambique, republic of South Africa; share in capital50% until 31.05.2012; 42.5% as of 01.06.2012South East/East Asiathe South east/east Asia region comprises oursubsidiaries in China, taiwan, Japan and thailand,which we operate jointly with our Austrianalliance partner Gebrüder Weiss, with Chinarepresenting the heavyweight in this market.Our company Weiss-röhlig China celebratedits 20th anniversary this year. Despite the firstgrowth downturn for 20 years in this region, withthe exception of 2009, the company achieved agood result here once again. In thailand, therewas a strong focus on expanding the customerbase with corresponding investments in sales,which had a negative effect on profitability in theshort term. In 2012, the results of our associatedcompany in taiwan were down on the previousyear. this is due to investments in sales, the verticalmarket of the bicycle industry and projectlogistics, which we are hoping will lead to a positivedevelopment in the future.SoUTh eAST/eAST ASIA*in teur 2012 2011Gross profit 16,077 12,867net income after taxes 2,073 3,655net income from equityconsolidation 1,054 1,742employees 310 278* share in capital: China 50%, Japan 50%,taiwan 50%, thailand 37.5%IndiaIn India, we recorded a drop in profits due to thegeneral market trend and reacted by standardisingprocesses further, which improved our productivitysignificantly.INdIA*in teur 2012 2011Gross profit 2.253 2.203net income after taxes -621 -282net income from equityconsolidation -163 -70employees 160 163* share in capital: 32.38%;reporting period 01.04.2011 – 31.03.2012Middle EastDespite the continuing weak economic developmentin the united Arab emirates, our joint venturein Dubai was able to increase its earningsconsiderably. this was primarily due to the acquisitionof new customers in the local market; wecan also offer our customers our own warehousein the Jebel Ali Freezone.MIddLe eAST*in teur 2012 2011Gross profit 1,624 1,299net income after taxes 278 129net income from equityconsolidation 139 64employees 26 25* share in capital: Weiss-röhlig Middle east ltd. 50%;Weiss-röhlig uAe (llC) 24.5%Agency networkIn countries where röhlig is not directly representedwe maintain close business ties with agencies.the strongest of these partners are awardedthe “premium Agent” quality seal. We developjoint products and processes for the good of ourcustomers. the consolidation of and focus on existingpartnerships in 2012 once again led to positiveresults.Events after the reporting periodthere have been no events or incidents of particularsignificance since the end of the businessyear.20 21

MANAGEMENT REPORT | STRUCTURAL CHANGES AND RISK MANAGEMENTSTRUCTURAL CHANGES AND RISK MANAGEMENT | MANAGEMENT REPORT»We are aiming for further growth,always focusing on process efficiency.«(i)the equity ratio ofthe consolidatedcompanies rose to30.7%.the financial markets remained unsettled in2012. We see a certain risk that this unrest willcontinue in 2013 and that the situation will notstabilise until 2014 at the earliest. the Germaneconomy is still in a unique position at the presenttime in our view, but in other europeancountries a significant deterioration in the realeconomy can already be seen. Worldwide theuSA is bucking this trend with increased domesticdemand, and in Asia a trend towards strongregional business can be felt.Despite these not ideal underlying conditions,we generated growth that was well above themarket level and expect this trend to continue inthe coming years.Risk managementthe main risk of our business model is the largeliquidity flows that have to be channelled in differentcurrencies on a daily basis. As a result ofour strong growth, this subject is of considerablerelevance for our risk management. By continuouslyfocusing on controlling these paymentflows, we succeeded in ensuring that the receivablesturnover ratio remained virtually constantlast year.As the shareholders waived a dividend payout,the entire annual profits could be transferred toeconomic equity capital, which increased in theyear under review by eur 4.3 million to eur 40.7million. this meant that the Group’s risk-bearingcapability could continue to be increased significantly.the equity ratio of the consolidated companiestherefore rose to 30.7 per cent.In the last reporting year, we launched a newdepartment under the name Blue+. Within theröhlig consolidated companies, this unit specialisesin the professional organisation of qualitymanagement, process optimisation and riskmanagement. the experiences with this teamare very positive. In addition to the businessprocess analyses, all the risk-related facts areanalysed and improved if necessary. Amongstother things, the Blue+ team has successfullyimplemented our environmental certification inaccordance with DIn ISO 14001 for the röhligHolding, the subsidiaries in Australia, France,Great Britain, Canada, Singapore and the uSAas well as the It subsidiary blue-net.In principle, a distinction is made between risksthat restrain a company’s development andthose that threaten its continued existence. Atpresent, we are not aware of any risks that couldthreaten the company’s continued existence.We do, however, classify the following individualrisks as restraining company development:Exchange rate risksthe high currency volatility continued in 2012. Inthe course of the year, we identified fluctuationsof between 10 and 17 per cent in our main currenciesagainst the euro. Speculation is not part ofour company policy. For this reason, we only concludehedging transactions that limit the effectsof this volatility.using our dividend compass, we establish theequity required in the particular countries whichwe must make available to the subsidiaries. Bydoing so, we can achieve a significant reductionof the valuation risks at the year-end in the consolidatedcompanies.As in previous years, we continue to cover currencyrisk with forward exchange transactionsand options. the market interest rates fell onceagain compared to the previous year and are at ahistorically low level. In our estimation, this stateof affairs will continue in the large industrialisednations over the next few years. We realise thatwe will have to expect significantly higher interestcharges for local financing within the globalnetwork compared with the level we are familiarwith in Germany. through the central financing ofinternational growth, the Group is able to make apositive contribution to the overall result.Our central treasury division based in Bremencoordinates global interest and currency covertransactions as well as additional measures to ensureoptimal management of our cash flows.Del credere managementIn 2012, the economic momentum of the two previousyears levelled out. We observed a certainsideways movement of the markets. nevertheless,the year under review developed very positivelyin terms of reported bad debt losses, which alsonormalised the cooperation with credit insurers.As in previous years, Germany, Denmark, thenetherlands, Belgium, the uSA, Spain, Great Britain,France and Australia as well as South Africaare included in the credit insurance cover. In 2013,we will have worldwide cover available for thefirst time. Within this framework, the reportingand management tools will be further optimised.Integrated It systems enable röhlig to react toinherent business risks with rigorous claims management.this It support has resulted in majorimprovements in terms of credit limit assignmentrules and automated collection processes. In addition,regular credit status checks of our customershelp to minimise risks.relations with our agents are monitored centrally.this extends not only to debtors but also to thebusiness relationship in general.Working capital managementActive receivables management has been a keysuccess factor of our Group for many years. theachieved growth is to be used to increase availablefunds rather than to create more receivables.In permanent consultation meetings with oursubsidiaries, the Days of Sales Outstanding (DSO)are optimised as a parameter for outstandingreceivables. In 2012, we managed to reduce theDSO by one day to 40 days.We are focusing on strengthening our internalfinancing and our financial independence. Inaddition, we have sufficient financing lines at ourdisposal through long-term banking partners. Inthe year under review, we were able to acquiretwo new ones, in order to ensure optimum risk diversification.We maintain partnership-based andlong-term relationships with all our banks. In thisarea, we regard ourselves as well supported forgrowth as well as the challenges of the comingyears.Transport damage/financial damagethrough our long-standing cooperation with thelondon-based insurer tt-Club we have establisheda very stable and efficient system for handlingforwarders legal liability claims. Worldwide,such claims can be managed via a uniform It system.transparency is ensured at all times and ateach location.essentially, we are only liable to a limited extenton the basis of our General terms and Conditionsand business model, as we do not renderany physical transport services and subcontractthem instead.(i)Our focus ison financialindependence.22 23

MANAGEMENT REPORT | STRUCTURAL CHANGES AND RISK MANAGEMENTOutlook | MANAGEMENT REPORT»Sustained growth and strengtheningof our financial capacity are our goalsfor 2013.«(i)The expansion of ourinformation systemsand the permanentfurther educationand training of ourstaff are crucial toour success.Inherent business risksThe shift in transport flows in the direction ofemerging countries identified in recent years continuedin the year under review. Hence, these marketsare becoming more and more important forus. As a result of our business activities in thesecountries, the complexity of our processes is increasing,and we are countering this by expandingour information systems and permanently improvingthe qualifications of our staff.In addition to the rollout of our operating systemEDI Cargowise in the Netherlands and France,we have introduced our SAP financial platformin Southern China and Singapore. Both platformsare to be used across the Group by mid 2014.In the area of personnel development we haveestablished programmes for further educationand training at different levels. These measuresare very important to us, as we regard the furtherdevelopment of our staff as being crucial to thesuccess of our Group.Structural changesThe restructuring of the Global Executive Boardwas concluded in the year under review with theappointment of Thomas Hansen as CEO Americas/Africa.Prior to his appointment, ThomasHansen was the Managing Director of our subsidiaryin Australia and now he is responsible forbusiness development in Northern and SouthernAmerica as well as South Africa. Thomas Hansenis also in charge of Global Sales.When it comes to the companies, in Japan we acquiredthe shares in JHB Express in 2011 and theywere merged with our company Weiss- RöhligJapan in 2012. In Southern China we foundedWeiss-Rohlig Int’l Forwarding (Shenzhen) Co. Ltd.at the start of the year as a subsidiary of Weiss-Röhlig Hong Kong. As a result of these measures,we have once again expanded our network presencein Asia.At Weiss-Röhlig India we were able to raise ourshares from 25 per cent to 32.38 per cent in thecourse of the year under review. In addition, inIndia we founded Rohlig Blue Services India Pvt.Ltd. This company provides IT services for the entireRöhlig Group.In South Africa, together with Grindrod we tookon the company Calulo Investments as an additionalshareholder with a stake of 15 per cent witheffect from 1 June 2012. This meant that the shareof Röhlig and Grindrod was each reduced to 42.5per cent. The purchase price was settled in partby incorporating the Calulo freight forwardingdivision.Operationally, we fully integrated our participationsin Latin America in the year under review.These companies now trade under the standardname Röhlig, with the addition of the respectivecountry names Argentina, Bolivia and Paraguay.In Uruguay, this reorganisation will take place in2013. The integration of the Latin American companiesis a further important step towards creatinga uniform network and a strong brand.The operational business of the companies CarlBlock and Transfair has been transferred to RöhligDeutschland.Röhlig blue-net was converted into a limited partnership(KG) in the year under review and nowtrades under the name Röhlig blue-net GmbH &Co. KG.The new participations in Latin America, with theexception of Bolivia, as well as Blue Services Indiawere consolidated for the first time in the yearunder review.The leading economic institutes and some banksare expecting an improvement in the economicsituation in 2013 in the USA, Brazil and numerouscountries in Asia, where, along with China and India,Indonesia and the Philippines will be seen ina positive light again. In Europe, the rescue of theeuro has not yet finally succeeded. However, thereduced increase in public deficits in many eurocountries has already led to a significant reductionin the risk premiums in terms of the interestpaid by the Southern European states. The risingdemand for commodities accompanying thegrowth should also ensure an economic recoveryin the countries which are important for us, namelySouth Africa and Australia.In the past three years, we have increased ourbusiness volume at the consolidated companiesby 64 per cent from EUR 67.5 million to EUR110.9 million. This strong growth has allowed usto consolidate our position in the air freight andsea freight market. However, the expansion of thebusiness has at the same time necessitated an enlargementof the management as well as capacityincreases at the head office.In 2013, we are expecting moderate sales growthand a result at the previous year’s level. We haveset ourselves the goal of improving our productivityand restructuring some European subsidiaries.Although the latter is being hampered by thecontinuing sovereign debt crisis in Europe, we areoptimistic that progress can be made in this area.Internally, we intend to complete IT integration bychanging all the subsidiaries with the exceptionof the Latin American companies over to SAP andEDI Cargowise systems by mid-2013. In autumn2012, we conducted a worldwide staff survey. Wewant to use the results to develop measures withthe managers of all the consolidated companies,through which we can increase staff satisfaction,especially in the areas of work organisation, personneldevelopment and innovation climate.We want to significantly increase the number oforders by improving sales once again. To do this,we filled the position of Global Sales Director forthe first time in January 2013. In tandem with this,we want to continue the development of differentsupply chain management products which wasstarted in 2011, in order to meet the needs of oursea and air freight customers in terms of integratedsolutions for their global supply chains.The even global distribution of our activitiesmakes us more independent of regional fluctuationsand allows us to benefit from the dynamismof both emerging countries and some industrialisednations. We therefore entered the new yearwith cautious optimism. The restrained dividendpolicy of our shareholders strengthens our financialclout and safeguards our financial room formanoeuvre.Bremen, 8 April 2013Global Executive BoardThomas W. HerwigHans-Ludger KörnerQuentin LacosteUlrike BaumJan SkovgaardThomas Hansen24 25

AnnuAl FInAnCIAl StAteMent | CoNSoLIdATed ProFIT ANd LoSS STATeMeNTCASh FLow STATeMeNT | AnnuAl FInAnCIAl StAteMentCoNSoLIdATed ProFIT ANd LoSS STATeMeNT For The PerIod FroM 1 JANUAry To 31 deCeMber 2012röHlIG & CO. HOlDInG GMBH & CO. KG, BreMenCASh FLow STATeMeNT For The PerIod FroM 1 JANUAry To 31 deCeMber 2012röHlIG & CO. HOlDInG GMBH & CO. KG, BreMen2012 teur prev. year teur2012 teur prev. year teur1. Salesa) Sales incl. excise and import turnover taxes 847,062 742,301b) of which excise and import turnover taxes -274,627 -251,362572,435 490,9392. Decrease/Increase of work in progress -446 1,9433. Cost of purchased services 461,122 396,6974. Gross profit 110,867 96,1855. Other operating income 5,751 4,6196. personnela) Wages and salaries 61,508 51,346b) Social security and pensions 11,523 9,670- thereof pensions: teur 2,059 (previous year: teur 1,765)73,031 61,0167. Depreciation and amortisation on the intangible assets of fixed capitalinvestments and property, plant and equipment 3,170 1,5218. Other operating expenses 29,907 27,67010,510 10,5979. Income from participations in associated companies 4,283 4,81410. Income from participations 104 9111. Income from loans of financial assets 43 512. Other interest and similar income 53 8713. expenditure on assumption of losses from associated companies 594 7514. Interest and similar expenditure 984 7142,905 4,20815. Net income from ordinary operations 13,415 14,80516. taxes on income and revenue 4,406 3,972- thereof deferred taxes: teur 0 (previous year: teur -5)17. Other taxes 119 1094,525 4,08118. Costs for partial profit transfer 480 57019. Consolidated profit for the financial year 8,410 10,154- thereof profit due to shares of other shareholders 2,407 2,6261. Consolidated net income (including shares in resultsby minority shareholders) 8,410 10,1542. Depreciation on non-current assets 3,170 1,5213. Adjustment of proportional assessed valueof associated companies -3,689 -4,7394. Changes in pension provisions 32 35. Changes in other reserves 1,006 18,6586. Miscellaneous non-cash-item transactions -440 4487. loss/profit from disposal of fixed assetsand the sale of consolidated companies -1,156 898. Changes in inventories, trade accounts receivable and other assets -4,186 -3,8479. Changes in trade accounts payable and other liabilitiesnot classified as investment or financing activities -2,292 -13,84010. Cash flow from operating activities 855 8,44711. receipts from retirement of fixed assets 134 14512. payments for fixed asset investment -1,266 -1,54613. payments for intangible fixed asset investment -79 -6,10214. receipts from associated companies’ dividends 1,416 2,00015. receipts from retirement of non-trading assets 278 1616. payments for investment in non-trading assets -747 -1,85017. payments for consolidated companies and acquisitionof minority shareholdings -162 -16718. Cash flow from financing activities -426 -7,50419. payments to shareholders -592 -2,68020. payments to minority shareholders -3,030 -1,57121. payments for redemption of silent partnerships 0 -1,00022. receipts from taking up financial loans 4,020 10,45923. payments for redemption of financial loans -4,835 -2,69024. Cash flow from financing activities -4,437 2,51825. Change in capital funds -4,008 3,46126. Change in capital fund cash items -4,008 3,46127. exchange-related capital funds changes 96 3128. Changes in capital funds as a result of changes to the consolidated companies 296 029. Capital funds at the start of the period 8,000 4,50830. Capital funds at the end of the period 4,384 8,00028 29

AnnuAl repOrt 2012 | AUdITor’S CerTIFICATeThe following auditor’s certificate was issuedfor the complete consolidated accounts andthe consolidated management report:“We have audited the consolidated accounts forröhlig & Co. Holding GmbH & Co. KG – comprisingthe balance sheet, profit and loss statement, notesto the consolidated financial statements, cashflow statement and statement of equity – and theconsolidated management report for the businessyear from 1 January to 31 December 2012. thepreparation of the consolidated accounts and theconsolidated management report in accordancewith German commercial regulations lies withinthe responsibility of the legal representatives ofthe company. Our responsibility is to provide anevaluation of the consolidated accounts and theconsolidated management report on the basis ofthe audit which we carried out.We conducted our audit of the consolidated accountspursuant to Section 317 of the GermanCommercial Code (HGB) and in compliance withthe generally accepted German auditing standardsadopted by the Institute of public Auditorsin Germany (IDW). these standards require thatan audit is planned and performed in such a waythat misstatements and infringements that wouldmaterially affect the presentation of net assets,finances and earnings in the consolidated accountsin accordance with the applicable principlesof proper accounting and in the consolidatedmanagement report can be detected withreasonable assurance. In determining the auditprocedures, we take into account our knowledgeof the business activities, the economic and legalenvironment of the consolidated companies andexpectations concerning possible errors. Withinthe framework of the audit, the effectiveness ofthe accounting-related internal control systemand the evidence supporting the disclosures inthe consolidated accounts and the consolidatedmanagement report are assessed primarily on arandom test basis. the audit includes assessmentof the annual statements of those companies includedin the consolidated accounts, the scope ofthe consolidated companies, the accounting andconsolidation principles applied and significantestimates made by the legal representatives aswell as evaluation of the overall presentation ofthe consolidated accounts and the consolidatedmanagement report. We believe that our auditprovides a reasonable basis for our evaluation.Our audit has not led to any reservations.According to our evaluation, based on the findingsobtained from the audit, the consolidatedaccounts of röhlig & Co. Holding GmbH & Co.KG for the business year from 1 January to 31 December2012 accord with the legal requirementsand provide a picture of the actual state of theassets, finances and earnings of the consolidatedcompanies taking into account the principles ofcorrect accounting procedures. the consolidatedmanagement report agrees with the consolidatedaccounts and provides, on the whole, an accuratepicture of the consolidated companies’ positionand appropriately represents the opportunitiesand risks of future development.”Oldenburg, 17 April 2013treuhand Oldenburg GmbHAuditing CompanySchürmannAuditorwitteAuditor30

ePort oF the advisory board | AnnUAl RePoRT 2012the röhliG advisory board(from left to right) Prof. Dr. Peer Witten,Thomas Bagusch, Dr. Hans-edgar Schütte,Dr. Andreas M. odefeyDear Ladies and Gentlemen,Although the economic climate was still difficult infinancial year 2012, the Röhlig Group managed togenerate a good result, achieving growth of over15 per cent worldwide based on gross profit. Atthe same time, measures were taken that served,and will serve, the positive development of theGroup. By rigorously pursuing Strategy 2018,the foundations were laid to prepare the RöhligGroup for the future and safeguard its long-termexistence.The Advisory Board assisted the Group’s Globalexecutive Board with important decisions in anadvisory capacity at its meetings on 22 February,5 June and 26 and 27 november 2012, and issuedrecommendations which were implemented.The accountancy firm Treuhand oldenburg GmbHaudited the 2012 annual accounts, issued an unqualifiedaudit opinion and confirmed that themanagement’s status report gives a true and fairview of the financial and economic situation ofthe Röhlig Group. The assessment by the auditorsis shared by the Advisory Board.The Advisory Board would like to thank the membersof the Board and all staff for their continuedexemplary commitment, which was the prerequisitefor the Group’s economic success.Bremen, 24 April 2013Dr. Hans-Edgar SchütteChairman of the Advisory Board31

Röhlig & Co. Holding GmbH & Co. KGAm Weser-Terminal 828217 BremenPostfach 10 21 8028021 Bremen, GermanyT +49 421 3031-0F +49 421 3031-1185E info@rohlig.comwww.rohlig.comPublished byRöhlig & Co. Holding GmbH & Co. KGCoordinationAnnika Schütz, Rebecca Völker, Marion WeinerRöhlig & Co. Holding GmbH & Co. KGConcept/Design/Realisationmoskito, BremenPrinting Meiners Druck, Bremen© 2013

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