AnnuAl RepoRt 2011 - Hellmann Worldwide Logistics

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.
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
made 1) ). total revenues amounted to 2.58 billion
euro. tumbling rates and increased market pressure
were also responsible for affected sales.
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,
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 %.
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
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.
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
also launched a global sales development program
to further develop successful sales strategies.
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 7
employees
europe
5,146
2009
5,417
2010
5,711
2011
employees
Asia
2009
1,732
2010
1,867
2011
2,053
employees
oMeA
2009
545
2010
626
2011
713
employees
Americas
2009
1,229
2010
1,318
2011
1,526
employees
Total
8,652
2009
9,228
2010
10,003
2011

evenue
Percentages
germany/intern.
2011
45.2
Germany
54.8
International
revenue
Percentages
of the regions
2011
19.1
Americas
10.1
OMEA
56.2
Europe
14.6
Asia
revenue
Percentages
of the divisions
2011
26.6
Airfreight
25.7
27. 0
Seafreight
Road Transport
20.7
Misc.
revenue
of the divisions
2011 in million €
685.7
Airfreight
664.0
697.1
Seafreight
Road Transport
534.0
Misc.
Total revenue
2011 in billion €
1.92
2009
2.65
2010
2.58
2011
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.
8 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
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.
Airfreight
Consignments
188,728
199,175
201,186
Airfreight
Tonnage
88,785
113,730
129,612
Seafreight
TeUs
139,465
156,886
169,367
Airfreight
revenue
in million €
124.0
193.3
194.5
Seafreight
revenue
in million €
10 11
2009
2010
2011
2009
2010
2011
2009
2010
2011
2009
2010
2011
149.2
2009
217.8
2010
200.8
2011

oad
Transports
11,567,294
2009
12,814,644
2010
13,840,251
2011
road
Tonnage
3,659,311
2009
4,342,754
2010
4,849,738
2011
road
revenue
in million €
571.9
643.5
661.1
2009
2010
2011
Miscellaneous
revenues
in million €
275.4
349.9
392.7
2009
2010
2011
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.
12 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
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.
Airfreight
Consignments
169,884
152,159
156,713
Airfreight
Tonnage
164,002
224,643
237,575
Seafreight
TeUs
138,883
168,976
197,881
Airfreight
revenue
in million €
99.4
153.7
165.5
Seafreight
revenue
in million €
142.2
Miscellaneous
revenues
in million €
14 15
2009
2010
2011
2009
2010
2011
2009
2010
2011
2009
2010
2011
2009
210.8
2010
243.2
2011
2009
84.7
2010
115.7
2011
84.6

Airfreight
Consignments
2009
39,308
2010
41,232
2011
55,568
Airfreight
Tonnage
2009
17,712
2010
19,690
2011
48,852
Seafreight
TeUs
2009
39,745
2010
49,263
2011
78,278
Airfreight
revenues
in million €
2009
47.5
2010
65.2
2011
66.7
Seafreight
revenues
in million €
2009
2010
74.3
126.7
2011
116.0
Miscellaneous
revenues
in million €
2009
44.2
2010
69. 0
2011
78. 2
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.
16 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
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.
Airfreight
Consignments
184,646
207,249
199,988
Airfreight
Tonnage
115,791
162,148
146,691
Seafreight
TeUs
163,951
204,416
227,043
Airfreight
revenues
in million €
196.0
377.1
259.1
Seafreight
revenues
in million €
99.7
116.7
104.0
Miscellaneous
revenues
in million €
18 19
2009
2010
2011
2009
2010
2011
2009
2010
2011
2009
2010
2011
2009
2010
2011
2009
8.7
2010
11.8
2011
14.3

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.
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.
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.
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