Integrated financial and sustainability review 2014
Integrated financial and sustainability review 2014 VOS LOGISTICS BEHEER B.V.
Integrated financial and sustainability review 2014 VOS LOGISTICS BEHEER B.V.
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Vos Logistics’ Integrated Financial and Sustainability Review presents the
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company’s financial and sustainability performance and customer appreciation
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during the year in a single integrated report. Vos Logistics Vorstengrafdonk 39
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Contents Integrated financial and sustainability review 2014
1.
ABOUT VOS LOGISTICS
• Profile • European network • Values Of Service • Stakeholder engagement
2 4 7 8 10
2.
KEY FIGURES AND RATIOS
12
3.
REPORT OF THE BOARD OF MANAGEMENT
• Business review 2014 • Prospects • Sustainability - Sustainability framework - KPI Dashboard 2010 – 2015 • Sustainability review 2014 - Technology - Operations - Premises - Safety - Staff - Customers - Society
14 15 26 27 29 30 32 32 38 46 48 54 62 64
• Risk management • Governance - Corporate governance - Composition of the Group’s Board of Management - Organization of sustainability
66 68 68 72 73
4.
ABOUT THIS REPORT
• Independent assurance report on the sustainability KPI’s • KPI Dashboard 2010 - 2015 table • Materiality assessment and GRI G4 • Glossary
75 76 80 82 86
1
About Vos Logistics
2
3
Profile Vos Logistics is an independent European logistics service provider, delivering a wide range of international transport and logistics services. THE COMPANY HAS FOUR CORE ACTIVITIES • Cargo consists of the transport of packed goods. Its operations consist mainly of FTLs, part loads and intermodal transport. The markets Vos Logistics serves include the automotive, consumer electronics, retail and construction industries. • Bulk comprises mainly the transport of dry unpacked goods (both granulates and powders). The products include chemicals, foodstuffs, animal feed, starch, minerals and waste. In the chemical industry, Vos Logistics is a specialist in freight management, steering goods flows from a variety of production locations. In addition, Bulk provides handling, storage and packaging services as well as EFTCO tank cleaning activities. • Logistic Services offers customer-specific logistics and transport solutions: from forwarding, warehousing and value added services and distribution to full supply chain solutions in which Vos Logistics assumes the management of its customers’ goods flows in full or in part. • Fleet Services offers efficient transport and distribution solutions to companies with their own dedicated vehicle fleets: analyses of transport needs, fleet financing, replacement and sale of used equipment, preventive maintenance, fuel optimization, insurance, management of seasonal influences, recruitment, training and management of drivers and planning tools.
4
With a network of almost 25 group-owned locations, Vos Logistics is active throughout Europe and in the bulk and volume transport markets ranks among the largest road hauliers in Europe. With about 1,900 employees (FTEs), the company operates a modern fleet of some 1,000 euro 5, EEV and euro 6 vehicles 3,000 loading units and 170,000 m2 of storage space. The strength of the company lies in its combination of innovative skills in both international transport and logistic services, a highly developed European network, advanced transport management systems (e.g. LOVOS) and a sharp focus on quality and service. These qualities are reflected in the high degree of customer satisfaction, particularly with prompt delivery times, low loss rates and value for money. With its international organization based on the flexible and efficient operation of both its own vehicle fleet and external capacity, the company can respond effectively to the dynamics of the international transport market in terms of both volume and destinations.
Profile in key numbers Cargo Bulk Incl. Fleet
Logistic Services Incl. Fleet
Services
Services
Turnover 2014 (x 1,000 euro)
88,000
77,000
91,000
FTEs involved
680
560
690
Own operated truck capacity
387
345
240
QUALITY Our Values Of Service are key to the way we ensure the quality of our work. And with ISO-9001:2008 corporate quality certification the company has a uniform quality standard to offer the same recognizable quality to all its customers. Vos Logistics is also ISO 14001, ISO 22000, GMP, SQAS and ADR certified. Vos Logistics has the AEO status for its subsidiaries in Oss, Helmond and Uithoorn and a GDP certificate for the storage of medical goods for one of its warehouses in Oss. The company trains its employees at its own Vos Logistics Education Center. The Mobile Quality Team, which monitors transport procedures and can be deployed throughout Europe, is also closely involved in driver’s training.
INTEGRATED VIEW ON SUSTAINABILITY Sustainability is an integral part of Vos Logistics’ operations. In all its decisions the company takes account not only of commercial aspects but also of health, safety and environmental issues. Our integrated approach comprises not only reporting, but also integrated management as the non-financial sustainability KPIs provide vital steering information to manage and optimize our business. Vos Logistics gives high priority to safe, clean and efficient mobility and logistic solutions, such as an eco-efficient fleet, alternative fuel (LNG), Ecocombis and operational excellence through multimodal transport, the optimization of loading capacity and the reduction of empty mileages and CO2 emissions. Vos Logistics has laid down its ambitions for 2010-2015 in an action program with concrete targets on CO2 reductions, multimodal solutions, staff welfare, safety and customer satisfaction. By means of quality management and Behavior-Based-Safety, the company consistently applies and enforces strict standards, rules, codes and procedures in the field of safety and the environment. Vos Logistics was established in 1944. More information on the company can be found on our website at www.voslogistics.com
5
4 6 7 5 1 3
The Netherlands
8
2 17 10 15 16 11 13 18 Belgium 9
Germany
France 12
Spain 23
14
24
FTE
(fulltime-equivalent) Average 2014
6
759
526
227
108
78
Poland
The Netherlands
Romania
Germany
France
European network 1
Oss
The Netherlands Vos Bulk Logistics Oss Vos Distri Logistics Oss Vos Logistics Oss Vos Management & Logistical Development Vos Logistics Beheer
20
Nederlands Cement Transport Cetra
2
Maastricht
3
Roosendaal
4
Uithoorn
5
Barendrecht
6
Breukelen
7
Ede
8
Helmond
9
Pittem
10
Meer
11
Oevel
12
Gerzat
13
Lesquin
14
Saint Fons
15
Mönchengladbach Nedex International Spedition
16
Wülfrath
17
Goch
18
Bergheim
19
Budapest
20
Kwidzyn
21
Warszawa
22
Cluj Napoca
23
Barcelona
Vos Logistics Roosendaal Vos Logistics Uithoorn Vos Logistics Barendrecht Vos Logistics Breukelen Vos Logistics Ede Vos Logistics Helmond
21 Poland
Belgium Vos Cargo Logistics Belgium Vos Logistics België – Meer Vos Logistics België – Oevel France 22 Romania
Vos Logistics France – Gerzat Vos Logistics France – Lesquin Vos Logistics Lyon Germany Silo Transporte H.P. Lutz Vos Logistics Goch Vos Logistics Bergheim Hungary Vos Logistics Budapest Poland Vos Logistics Polska – Kwidzyn Vos Logistics Polska – Warszawa Romania Vos Logistics Romania Spain
24
77
47
Spain
Belgium
Vos Logistics Barcelona
Montcada i Reixac Zozaya Cisternas
7
Values Of Service
8
The Values Of Service represent what Vos Logistics stands for and provide guidance for all processes within our organization. They support the transparency of our communication of what we stand for, both internally and externally with customers and other stakeholders. Furthermore they help to continuously improve vital elements of our business.
9
Stakeholder engagement
10
Vos Logistics recognizes five stakeholder groups: customers, staff, suppliers, society and shareholders. The table below shows the general expectations that the stakeholder groups have of Vos Logistics. The specific issues that Vos Logistics discussed with these stakeholder groups, the communication channels we used and the results we achieved are presented in several interviews and sections in this report.
STAKEHOLDER
EXPECTATIONS
MAIN FORMS OF DIALOGUE
Customers
Value for money Optimal service Innovation Corporate sustainability responsibility Reliability Prompt complaint handling
Client relationship Visits Performance measurements Complaint management Customer satisfaction survey Panel meetings Company updates
Staff
Safe workplace Personal development and training opportunities Attractive terms of employment Pleasant working conditions and atmosphere Career perspectives
Personal development plans Appraisal/performance interviews Newsletters, social media Staff satisfaction survey CEO Road Shows to meet colleagues Staff exchange programs Internal and external training courses
Suppliers
Reliability Long-term relationship Competitive pricing Compliance with laws and regulations Sustainability
Day-to-day practice Regular visits Supplier assessments Benchmarking
Society (civil society organizations + public authorities/ supervisors)
Support for civil society organizations (sponsoring, donations, charity, knowledge sharing, etc.) No activities that harm society Increasing accountability about how we create societal value Compliance with legislation and regulations Commitment to local societal activities/local sustainability initiatives
Participation in/membership of alliances Bilateral consultation with various organizations Active participation in local initiatives Meetings Website
Shareholders
Value creation Financial solidity Solid risk policy, including reputation management
Shareholders meetings Management Letters Annual report
Adherence to our values, including sustainability ambitions
11
Key Figures and Ratios
12
in thousands of euros, unless stated otherwise
2014
2013
Profit and loss account Net turnover 252,183 Operating result before interest and taxes (EBIT) 6,019 Operating result before interest and taxes plus depreciation and amortization (EBITDA) 14,661 Operating result before interest, taxes, depreciation, amortization and lease (EBITDAL) 31,848 Result before tax 3,103 Result after tax (after deduction minority interests third parties) 1,101 Comprehensive income 1,032
248,402 3,205 12,009 26,636 57 (780) 502
Investments Additions (in)tangible fixed assets 8,499 Disposals (in)tangible fixed assets 3,472 Depreciation/amortization/impairment 8,642 Lease and rental costs 17,187
12,732 5,054 8,804 14,627
Guarantee capital Shareholders’ equity Minority interest third parties Perpetual loan Subordinated loan Deferred tax liabilities
27,152 16,452 2,773 - 6,540 1,387
Sustainability CO2 emission fleet per ton/km 0.0379 CO2 emission premises per m2 8.9 Fleet’s average (Euro standard trucks) 5.0 Percentage multimodal (versus total) 20.0% Customer satisfaction 7.76 Personnel Staff costs 72,517 Staff costs in % of net turnover 28.8% Number of employees (average) 1,785 Number of employees (year-end) 1,822 Number of employees including temps (average) 1,978 Lost Time Injury Rate 0.78 Fatalities 1 Sickness absence 2.83% Capacity (year-end) Trucks 972 Trucks from fixed subcontractors 126 Loading units 3,000 Warehouses m2 170,000 Silo m3 20,000 Ratios Capital ratio: Guarantee capital in % of balance sheet total 23.4% Liquidity ratio: Current assets/current liabilities 0.95 Result ratio: EBIT in % turnover EBITDA in % turnover EBITDAL in % turnover Result before tax in % turnover Result after tax in % turnover
2.4% 5.8% 12.6% 1.2% 0.4%
14,232 (36,989) 2,634 30,103 16,767 1,717
0.0387 8.8 4.8 21.0% 7.94
70,394 28.3% 1,772 1,809 1,914 0.95 3.06%
970 179 3,000 170,000 20,000
13.2%
0.77
1.3% 4.8% 10.7% 0.0% (0.3%)
13
Report of the Board of Management Ben Vos, CFO and Frank Verhoeven, CEO Vos Logistics
14
Business review 2014 marked Vos Logistics’ 70th anniversary and it was a good year in many respects. The upward trend seen in the second half of 2013 continued in 2014. A strong increase in value added activities at Logistic Services and the effects of cost rationalizations were responsible for the improved result. Sustainability performances also showed further improvement. A historic moment in the year was a change in the shareholder structure in December. This was a logical step in view of Vos Logistics´ successful improvement program in recent years and its ambitions for the years ahead. At the same time the company’s financial base was considerably reinforced. This offers scope to invest in the further implementation of our strategy.
Strong quality improvement in profit on slightly higher turnover Turnover increased by 1.5% to € 252.2 million in an unbalanced economic climate with an unconvincing recovery in the euro zone. The higher turnover was predominantly due to more customer-specific business in all our core activities. Freight rates remained under pressure in the first half of the year but eased slightly in the second. Lower diesel price in the closing months added slightly to an improved contribution margin.
Revenues excl. Divestments EBT Operational
Development of net turnover and EBT 2010-2014 5,000
270,000
4,000
Euro x 1,000
260,000
3,000 2,000
250,000
1,000
240,000
0 1,000
230,000
2,000
220,000
3,000 4,000 -
210,000
2010
2011
2012
2013
2014
15
The benefits of the cost rationalizations implemented in 2013, including the closure of the hubs in Slovakia and Italy, were felt in full in 2014. Further rationalization of indirect costs was initiated in 2014, as were a series of improvement initiatives. Intensified driver training combined with fuel management control and continuation of the renewal program of the truck fleet also led to a further reduction in fuel consumption. All these measures visibly contributed to the improved quality of turnover. EBIT increased from € 3.2 million to € 6.0 million. Net profit came to € 1.1 million compared to a loss of € 0.8 million in 2013.
Result in thousands of euros
2014 % of net turnover
% of net turnover
Total net turnover 252,183 Subcontracted work 69,746
27.7%
248,402 76,022
30.6%
Added value 182,437 Total direct costs excl. leases 121,205
48.1%
172,380 116,103
46.7%
Contribution margin 61,232 Total indirect costs 29,384
24.3% 11.7%
56,277 29,641
22.7% 11.9%
EBITDAL 31,848 Total depreciations & leases 25,829
12.6% 10.2%
26,636 23,431
10.7% 9.4%
EBIT
6,019
2.4%
3,205
1.3%
EBT
3,103
1.2% 57
0.0%
INVESTING IN CUSTOMER-SPECIFIC TRANSPORT CONCEPTS With the installation of a 24/7 customer service desk to cater to our customers round the clock and our LOVOS transport management system, we can move goods throughout Europe quickly and with a high level of security, while offering our customers continuous real-time information on the position and status of their goods. This technical backbone drives our commercial strategy of exploring the higher added value segments with a differentiated service offering and dedicated equipment. An example of this strategy is the development of the Vos CuBoLiner® trailer concept, a curtainside mega trailer with flexible side boards that is an attractive alternative to traditional box trailers. It can be loaded from the side, provides the protection of a box trailer and can also be lifted by crane, making it suitable for multimodal transport. The trailer is designed to transport high value goods such as electronics and pharmaceuticals and to carry tires and automotive components that must be loaded and unloaded from the side. We also operate double deck trailers to improve loading capacity for non-stackable goods. And in 2014 we introduced a new service – ‘Vos Super Fast’ – a network of double manned trucks to move goods that demand short and reliable delivery times throughout Europe.
16
2013
International network transport CARGO Volume increased by 2% as a result of our sharper strategic focus on customer-specific transport solutions. In addition, Cargo grew its business in the automotive industry. Cargo’s EBIT was boosted by an improvement in the contribution margin and lower indirect costs. Turnover was the same as in 2013. We have made significant investments in recent years to align the value proposition of our international transport solutions better to the demands of existing customers and to gain a foothold in consumer goods, electronics, e-commerce and other market segments that require fast and reliable services.
BULK In Bulk, turnover declined by 4% on balance. The contribution margin remained unchanged and indirect costs developed in line with turnover. EBIT declined by nearly 40% due to the challenging situation in the international transport network. The international dry bulk market suffered from downturn in the petrochemical industry in Western Europe. In addition, a shift in import flows from the Middle East exerted pressure on rates and disrupted the balance in our network operation to move goods with maximum efficiency and minimum empty running. Our volumes in the food segment were negatively affected by one of our customers closing down a plant. The intake of new business during the year looked promising but could not make up for the decline in volume. The Bulk specialties, customized transport services, silo storage and logistics services, developed well during the year. We invested in the startup of national distribution activities for Mebin in the Netherlands and a new on-site logistics contract in France. These initiatives match our ambition of growing in customized services and will contribute to growth in this segment in the years ahead.
2010 2011
International network transport
2012 2013 2014
Euro x 1,000
95,000 90,000 85,000 80,000 75,000 70,000 65,000 60,000
Cargo
Bulk
Logistic Services
(excl. divestments)
(excl. divestments)
17
INTERNATIONAL NETWORK TRANSPORT OPERATION AND CAPACITY Demand for transport capacity has been volatile in recent years, especially in the international markets we serve. We anticipated these changes by optimizing our flexible capacity based on a mix of in-house transport capacity (single and double manned) and fixed and flexible spot charters in combination with multimodal transport modules. Vos Logistics has made considerable investments in specialized operations in Poland and Romania, from where the company operates the international network transport for Cargo and Bulk. In the year under review, we further expanded our planning, customer service, ICT and financial accounting operations in Romania to support the international transport business. The number of indirect employees in Romania increased from 14 to 28 FTEs. In Poland we have a strong operation with a supporting staff of 60 people. Our transport fleet increased to 488 trucks in Poland and from 69 to 103 in Romania. The total fleet capacity remained at 972 trucks. The number of loading units was slightly higher. Vos Logistics currently operates approximately 2,000 trailers and 1,100 swap bodies. Loading efficiency (paid kilometers versus total produced kilometers) improved at Cargo, Bulk and Logistic Services. Kilometer production per truck increased at Logistic Services and to a lesser extent at Bulk. At Cargo, the performance of the fixed charter fleet improved slightly. Subcontracted work (including multimodal transport) declined from 30% to 28% of turnover due to an increase in our own fleet at the end of 2013. Going forward and in line with Vos Logistics’ policy of flexible transport capacity (a mix of our own capacity with fixed and flexible spot charters), the share of subcontracted work will increase following the inflow of additional charter capacity and an increase in freight management & forwarding activities. SECA surcharges in combination with lower diesel prices will also underpin an increase in land transport. At € 17.6 million, multimodal turnover remained at almost the same level as in 2013.
18
Logistic Services CUSTOMER-SPECIFIC SERVICES Logistic Services reported excellent growth. Turnover increased by 10% driven by new business. This cluster now accounts for about 35% of the Group’s total turnover. EBIT was enhanced by almost 80% thanks to higher volumes, improved operational excellence and some rationalization of indirect costs in international transport and forwarding.Within the cluster, Contract Logistics increased its turnover by 17%, mainly due to increased business for existing customers in the Netherlands. To cater for this growing demand, we expanded our storage capacity in Oss with a new 25,000 m2 warehouse. We have identified growing demand for professional distribution services. Apart from timely and correct deliveries, more efficient and cleaner transport is critical. Vos Logistics is seamlessly meeting this customer demand by using greener LNG (liquefied natural gas) trucks for distribution. LNG trucks can also be driven on LBG (liquefied biogas) and have a range of up to 1,300 kilometers. Operating these trucks results in a CO2 reduction of 19% (‘tank to wheel’) compared to diesel trucks. They are a sustainable alternative specifically for national and regional distribution. We are a leader in LNG transport in Europe. The value of this initiative is recognized by a growing number of customers that are specifically opting for LNG trucks to contribute to their sustainability ambitions. We serve retail customers and customers in container trucking and the automotive industry with our LNG trucks. Freight Forwarding developed well. We expanded the business with two new groupage lines (between the Benelux, Italy and Poland). We implemented freight management services for one of our customers in Belgium.
LOGISTICS PROPOSITION FURTHER REINFORCED In October we commissioned a new sustainable (BREEAM) distribution center in Oss for customers in the retail and medical industries. The center has raised Vos Logistics’ total warehouse capacity in the Benelux and Germany to 170,000 m2. Oss is strategically located in the hinterland of the ports of Rotterdam and Antwerp and boasts a multimodal container terminal. Access to the new distribution center by road, water (Maas Port) and rail is excellent. At this AEO certified site Vos Logistics performs order fulfilment and added value activities such as sampling and return handling for its customers. Our distribution network seamlessly matches our international transport, container trucking, distribution and consumer delivery activities.
19
Targeted investments in quality, IT and operational excellence Vos Logistics invested € 15 million in strengthening the company in 2014. As well as commissioning 25,000 m2 of storage capacity at the new warehouse in Oss, we replaced 120 trucks. The fleet currently consists of euro 5 and 6 trucks. In addition 277 new loading units were added: 75 Vos CuBoLiners®, 150 swap bodies equipped with an innovative safety system, 2 multiconnect container chassis and 10 cement trailers for Cetra. In line with changing market requirements, we invested in a fleet of 40 EN 12642-XL certified Taultline Mega Intermodal Trailers, predominantly to serve Italian customers shipping to and from the Benelux. In 2014 the IT landscape was further innovated in a number of areas through investments in, inter alia, client terminals, new office software, mail exchange servers and new interfaces. This enables us to work more efficiently and improve customer service. Planning, for example, is now paperless and customer specifications are secured in a single system that is accessible to all relevant officers. We can also better manage standstills and unexpected disruptions through truck and trailer planning & maintenance. After the successful audits of the sites in Pittem (BE), Lyon, Gerzat (F) and Cluj-Napoca (RO) all Vos Logistics’ business units have now been awarded the group ISO 9001 certificate. This is an important step towards achieving a uniform quality standard that is firmly rooted in the organization so that we can offer our customers recognizable quality. We paid ample attention to safety, driving performance, and professionalism in 2014, dedicating 15,000 hours to staff training. We also tightened up workplace safety procedures. Furthermore, in recent years our consistent focus on damage prevention has clearly resulted in a reduction in the number of collisions. In 2014, the average percentage of trucks that had a minor incident decreased by 25% compared to 2012. More about damage prevention can be found in the sustainability review section of this report. In spite of our safety measures, regrettably two fatalities occurred in 2014, one of which involved one of our drivers. Our deepest sympathies go out to the families of the victims.
20
STATE OF THE ART: LOVOS Vos Logistics’ operations are supported by the LOVOS transport management system developed in-house. In conjunction with the OmniExpress onboard computers in the trucks, it is a very efficient management platform. Thanks to its integrated approach, it supports a variety of disciplines, such as customer service, planning, fleet and driver management and the administration backbone in more than 15 European offices, and enables us to utilize our transport capacity to the maximum. The transportation orders we receive from our customers are processed in LOVOS; a growing number of orders are received via EDI connections with our customers. The shipment orders are transmitted to the drivers’ onboard computers. Customers have access to real time track and trace information. The PTV route planning system is an integral part of LOVOS and helps our planners optimize route planning. Drivers and our back office are able to exchange information with the system. The onboard computers also help our drivers drive economically, safely and with respect for the environment.
21
Strategic perspective: controlled growth Vos Logistics has undergone a sweeping transition in recent years to become a professional and flexible organization. The company has successfully cut its structural costs and returned to health in a competitive and rapidly changing market. In the past three years the company has given priority to making itself more agile and sustainable. A substantial investment program has been rolled out to underpin further growth. Vos Logistics’ ambition is to offer clean and efficient transport and logistics services to trade and industry. The strategy is directed at profitable growth in markets where the company is already active and in new selected markets where we can add value with our solutions. The markets in which we operate are very complementary. The international transport market is more cyclical and volatile and is dominated by price competition. We will therefore focus on further direct and indirect cost management in the international transport networks for packed goods and dry bulk as competitive pricing is a prerequisite for organic growth in this market. The logistics market is more varied and less volatile, with a strong focus on added value and quality. Here the critical success factors are compatibility with customer expectations, quality standards, flexibility, knowledge of the customers’ industry and company, specific requirement fulfillments, etc. In this market we aim to realize controlled growth organically and through selective acquisitions. Another pillar underpinning our strategy is sustainability, in the conviction that it strengthens the economic base of our company and our customers. Sustainability has been fully integrated into our operations and management reports. We launched a five-year Eco-safe-logistics action program in 2010 to increase operational excellence by training and educating our people and offering quality, safety and environmentally-friendly transport and logistics solutions. In 2010, we identified eight KPIs to steer our policy. We are currently in the process of setting our sustainability ambitions for the period 2016 - 2020.
Strategy
port ans r t ork tw
Intern atio na ln 60 e Ca 34% rg %
rt s
po
s gi 3
ns
Lo
t d an % 0
ra
Bu
l 31 k %
o l u ti o n s
o
ti 5% c S e r vice s
We have invested a great deal in our people, equipment and transport concepts in recent years. These investments have generated clear results (see page 13, Key Figures and Ratios). We will continue to make similar investments in the future but we are aware that the scope for further improvement largely depends on factors beyond our direct control. Our long-term sustainability strategy will therefore focus more strongly on external factors to optimize goods flows in cooperation with customers in order to offer cleaner and more efficient transport and logistics solutions. It is the next logical step in our sustainability strategy in the coming years. We have the know-how and technology in house to achieve this goal. The preferred carrier agreement with Michelin that we concluded last year is a good example of the way forward (see insert page 28, Sustainability in international transport networks).
Lo g i s t i c s e r
s vice
4
Turnover per market segment and business activity
22
Change in the shareholder structure In December the Management of Vos Logistics and Scheybeeck Investments jointly acquired all the shares in Vos Logistics. Scheybeeck’s participation in Vos Logistics reflects its long-term view, entrepreneurship and experience in transport and logistics. The new shareholder structure will allow Vos Logistics to implement its strategic plans and take the next step towards a sustainable future for the company and all its stakeholders.
Change in governance structure On account of the change of ownership, the governance structure of Vos Logistics was also modified. In the new setting it was concluded that the combination of professional management, investors and new financiers supported by several sets of regulations on the performance of the various bodies and the rules applicable within Vos Logistics offered a sufficient basis for adequate governance. The Supervisory Board of Vos Logistics was in place until the change of ownership. The Board, Messrs. Benjamins, Scholten and Nelissen, has guided the company through a difficult phase in the past years. Mr. Benjamins was Chairman of Vos Logistics’ Supervisory Board since 2006. His extensive knowledge and experience of the international logistics sector has been of inestimable value to our company. Messrs. Nelissen and Scholten have been members of the Supervisory Board since 2008. Together with Mr. Benjamins, they have vigorously supervised the company, were robust sparring partners for the management and very committed to the successful transition to a healthy company with growth prospects. The management, employees and other stakeholders are grateful for the trust and commitment of the Supervisory Board and for their important contribution and dedication to Vos Logistics in recent years.
PROVIDING EFFICIENT TRANSPORT SOLUTIONS Mebin, a supplier of ready-mixed concrete on the Dutch market, wanted to enhance the flexibility of its transport capacity in order to meet the wishes of customers more efficiently and decisively. Ronel Dielissen-Kleinjans, General Manager of Mebin, explains that the strongly changing demand in the building industry requires creative and flexible solutions. ”Ordering times are becoming ever shorter whilst the differences between quiet and peak production and transport days are getting bigger. As a consequence the average utilization rate of our fleet is declining and costs are increasing. That is why we wanted more flexibility in our transport capacity, with sustainability being an important precondition. Thanks to the cooperation with Vos Logistics, where sustainability is an integral part of the business operations as it is in our company, flexibility is guaranteed.” Vos Logistics invested in four new truck mixers that are deployed for Mebin. In addition two standard trucks were added to the fleet to pull Mebin’s ready-mixed concrete trailers.
23
Stronger financial base A solid and robust balance sheet is essential for the implementation of our strategy. In recent years Vos Logistics’ balance sheet has shown the consequences of the dramatic years of 2008 and 2009. The change in ownership enabled us to strengthen the balance sheet. The new shareholders took over the perpetual and subordinated loans from the consortium of Dutch banks and subsequently converted the bank loan into share capital and injected € 5.5 million of new share capital. Delta Lloyd Mezzanine Fund granted a long-term subordinated loan of € 7 million to replace senior loans and facilities from the consortium of banks. As a consequence, Shareholders’ equity increased by € 53.4 million to € 16.5 including the 2014 profit; the guarantee capital increased by € 13.4 million to € 27.2 million. As at the end of 2014 the solvability amounted to 23%.
BALANCE SHEET STRENGTHENED
Balance sheet strengthened
30,000 25,000 20,000 15,000
7,000
Guarantee capital
-681 27,152
Guarantee capital
5,500 5,500
1,101 Equity
-30
1,101
10,000 5,000 0
16,452
14,232 16,767 31-12-2013
-5,000
converted perpetual loan
converted subordinated loans
new capital injection
result for the year
new subordinated loans
other movements
31-12-2014
-10,000 -15,000 -20,000
36,989 30,103
-25,000 -30,000 -35,000 -40,000
Equity
Financial lease positions declined on account of regular installment payments and the financing of the 2014 truck renewal program by means of operational leases instead of financial leases.
24
EJ / J&A February 2015
Cash flow and liquidity Cash flow from operating activities increased by € 1.8 million to € 9.3 million, predominantly as a result of considerably higher EBIT. The total cash flow for the year excluding the effects of the refinancing for the change of ownership amounted to € 1.9 million positive (2013: € 1.9 million negative). In 2014 the liquidity position was boosted to € 12.4 million by the capital injections by the new shareholders and Delta Lloyd Mezzanine Fund and the positive cash flow for the year. Although Vos Logistics has a high-quality debt portfolio, some pressure was exerted on working capital during 2014. The number of days of sales outstanding (DSO) increased by 4 to 63 days. The average payment term at the end of 2014 was 45 days. Applicable billing cycles (monthly or bi-weekly) as well as overdues increased the DSO from 59 to 63 days. However, the number of days payable outstanding (DPO) was further reduced by 2 days to 57.
Development of cash flow from Group operating activities
Cash flow from operating activities
15,000
70 68
12,000
Days
Euro x 1,000
Days sales outstanding
66 64
9,000
62 60
6,000
58 56
3,000
54 52
0
2010
2011
2012
2013
2014
50
25
Prospects Although market prospects are expected to be better in 2015 than they were in 2014 economic recovery in most euro zone countries is still fragile. Cargo and Logistic Services are expected to grow their volumes further; for Bulk we foresee another challenging year. On the basis of the new business gained in 2014 and through continued cost rationalization in 2015 we expect to realize a modest increase in turnover and result. Vos Logistics will continue to strengthen its quality in order to stand out for excellent customer service. Investments in 2015 will total € 13 million, which might be revised depending on the further development of the market recovery and prospects. We will also continue our fleet innovation program in 2015. No significant changes are expected in the number of employees.
In conclusion We look back on a year in which Vos Logistics wrote seventy years of history and found itself at the start of an excellent and promising future with new shareholders. We will remain critical and alert in 2015 to ensure our operational excellence going forward. We sincerely thank the team of Vos Logistics for their input and dedication and our customers, partners and suppliers for their trust and support.
26
Sustainability
27
SUSTAINABILITY IN INTERNATIONAL TRANSPORT NETWORKS As a logistics service provider we seek efficient and clean transport solutions. In the year under review Vos Logistics signed a preferred carrier agreement with the Michelin Group with the objective of further reducing the number of empty kilometers and hence CO2 emissions within Michelin’s transport network. The agreement is part of Michelin’s program to optimize its European distribution flows. It enables the tire manufacturer to control its costs in a sustainable manner and secure transport capacity for its goods flows. For Vos Logistics it is a natural follow-up to our sustainability agenda, with the emphasis placed on realizing synergy by optimizing loading and unloading addresses in association with the forwarders within the various networks. Synergy advantages for customers A team of specialists from both parties analyzes and combines the goods flows to produce the best routes, driving schedules and equipment deployment. Michelin’s goods flows include end products, intercompany deliveries and raw material supplies to its factories. Through the creation of synergy we reduce both the costs and the CO2 emission and simultaneously guarantee the transport capacity and therefore delivery reliability.
28
FRAMEWORK Vos Logistics sustainability framework
MISSION
FOCUS AREAS
Vos Logistics is an independent European logistics service provider delivering a wide range of transport, logistic and supply chain solutions. Our ambition is to be an industry leader by offering our clients competitive, reliable and sustainable solutions. To us, sustainability means providing clean and efficient services, care about the safety and wellbeing of our employees and suppliers as well as customer satisfaction. The company consistently applies and enforces strict standards, rules, codes and procedures in the field of quality, security, health, safety and the environment.
1. Eco-safe-logistics • Technology
CERTIFICATION • ISO 9001, ISO 14001, ISO 22000, ADR, GMP+/Qualimat (standards to assure feed quality and safety), SQAS (Safety and Quality Assessment System), BREEAM, AEO (Authorized Economic Operator) and Lean and Green Star
EXTERNAL GUIDELINES • National and European legislation and regulations • GRI • Green Freight Europe Program • Responsible Care® (ECTA)
INTERNAL GUIDELINES • Values Of Service • Drivers’ Manual • Company policy
FOCUS
• Eco-efficient fleet • Innovation in alternative fuel •New types of equipment: Ecocombis, Vos CuBoLiners, swap bodies and double deck trailers • Fuel management
• Operations
• Optimizing the logistics network • Reduction of empty mileage • Multimodal transport •V os Superfast with double manned trucks • Sustainable procurement • Quality assurance • Damage prevention plan • 24/7 customer service
• Premises
• Energy efficient buildings • Waste separation • BREEAM certified buildings
• Safety
• Safety awareness • Root Cause Analysis • Safety Alerts
2. Staff
• Training and education • Working conditions • Staff satisfaction survey
3. Customers
• Customer satisfaction • Customer partnerships • Value for money
4. Society
• Local socially relevant projects • Blind spot projects • Donation to KidsRights
• Quality Management System • Code of Conduct
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KPI DASHBOARD 2010-2015 Vos Logistics has defined its goals in eight key performance indicators (KPIs). The KPIs are measured identically at all business units and consolidated at group level. A five-year KPI program was launched in 2010. The sustainability goals are summarized in the dashboard. The sustainability policy is monitored in order to check the progress made on the KPIs. Performance is measured each quarter and the results of each location are published on a specially designed sustainability poster. The sustainability KPIs are audited externally. Since 2014 the KPIs have been incorporated in the monthly financial report. On a monthly basis Management and cluster directors discuss the financial results and the sustainability, quality and safety results. As a consequence, the sustainability KPIs, the quality audits and the safety incidents form specific steering instruments for group and cluster management. 2015 is the final year of the program. In the course of this year a sustainability program and a new KPI program will be established for the years after 2015.
Kg CO2 per tonne/km
Kg CO2 emission fleet per tonne/km 0.050 0.045 0.040 0.035 0.030
0.0450
0.0430
0.0421
0.0405
0.0387
0,0379
2009
2010
2011
2012
2013
2014
4.2
4.4
4.8
5.0
2011
2012
2013
2014
2015
Average Euro standard trucks
Fleet's average
5.0 4.5 4.0 3.5 3.0
3.7
2009
3.8
2010
2015
Percentage
Percentage multimodal
25 % 20 % 15 % 10 % 5% 0%
30
16.0 %
2009
17.0 %
18.5 %
20.0 %
2010
2011
2012
21.0 %
2013
20.0 %
2014
2015
Kg CO2 per m2
Kg CO2 emission premises per m2 20 15 10 5 0
16.9
11.8
12.9
9.9
8.8
8.9
2009
2010
2011
2012
2013
2014
0.87
0.95
0.78
2012
2013
2014
2015
LTIR
Lost Time Injury Rate (LTIR) 1.2 1.0 0.8 0.6 0.4 0.2 0.0
0.60
0.70
2009
2010
1.05
2011
2015
Fatalities Year Results
2009
2010
2011
2012
2013
2014
1
0
0
0
0
1
Target = 0
Percentage
Sickness absence 4.50% 4.00% 3.50% 3.00% 4.20%
2.50%
2009
3.80%
2010
3.40%
2011
3.00%
2012
3.06%
2013
2.83%
2014
2015
Average score
Customer satisfaction 8.6 8.2 7.8 7.4 7.0
Results 7.4
7.6
7.7
7.94
7.94
7.76
2009
2010
2011
2012
2013
2014
Result 2014 Targets 2015
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Sustainability review 2014 TECHNOLOGY
Key points 2014/2015 • Intensified driver’s training programs focused on fuel consumption • Increase fleet to 50 LNG trucks • Further roll out of driving behavior monitoring (KPI2 reporting)
REALIZED IN PROGRESS IN PROGRESS
Sharp cut in CO2 emissions We reduced the CO2 emission per ton/kilometer by 2.0% in 2014. The modernization of the fleet, the training of our drivers, and the modern board computers have paid dividends. However, the number of multimodal shipments decreased. As a result, we fell short of achieving our 2014 target for CO2 reduction. Nevertheless, in the past years we have reduced the CO2 emission of our fleet by over 16%. We are committed to continue and intensify our efforts to reduce CO2 emissions of our fleet in years to come. In 2015 our focus will be on cutting back empty mileage and reducing fuel consumption. However our fleet is equipped to move by rail and/or ferry, achieving an increase in the number of multimodal shipments will largely depend on market developments and customer demands. This will prove to be a challenge for Vos Logistics and the transport industry as a whole. (See: Dillema’s in the Operations chapter)
Kg CO2 per tonne/km
Kg CO2 emission fleet per tonne/km
32
0.050 0.045 0.040 0.035 0.030
0.0450
0.0430
0.0421
0.0405
0.0387
0,0379
2009
2010
2011
2012
2013
2014
2015
Vos Logistics’ fleet consists for 95% out of euro 5 trucks or higher. The average age of our trucks is less than three years. At Dutch companies the percentage of trucks with at least euro 5 amounts to 75%. (Source: TLN)
Greening the fleet In 2014 we replaced 120 trucks of our fleet vehicles with trucks that comply with the euro 6 emission standard. The average euro standard increased to 5.0. We consequently reached our target. In 2015 we intend to invest increasingly in customer-specific solutions and relevant equipment, for example by deploying euro 6 mixed chassis for Mebin.
Average Euro standard trucks
Fleet's average
5.0 4.5 4.0 3.5 3.0
3.7
2009
3.8
2010
4.2
4.4
4.8
5.0
2011
2012
2013
2014
2015
Lower fuel consumption In 2014 we consumed significantly less fuel per kilometer than in 2013. Apart from the outflow of older trucks and the inflow of new ones (euro 6) we also took targeted measures to limit fuel consumption, such as: •M onitoring driving behavior (KPI2). The monitoring of fuel consumption on a monthly and annual basis. •E co-driving training for each driver. Drivers with a high consumption receive additional eco-driving training. •R oute optimization (validation). The routes are analyzed by fleet managers on the basis of the experiences of the drivers. On what routes is the least fuel consumed? This takes, for instance, traffic jams and the state of the roads into account. •R ound trips. Dedicated drivers are increasingly being deployed on selected routes. They know exactly what they can expect on the road and can so reduce fuel consumption.
33
VOS LOGISTICS MAXIMIZING LOAD EFFICIENCY IN SWEDEN The mega trailer is a well-known concept in international transport. As an important player in this market Vos Logistics operates a fleet of 900 mega trailers. We invest in growth, in this case in the length of the combination. From a normal combination (16.5 meters) via an Ecocombi (25.5 meters) to a concept of two trailers behind a single truck (32 meters). New legislation in Sweden opens the door to test these combinations. Sweden is a frontrunner in road transport solutions. It is our ambition to be the first nonSwedish logistics provider to operate these combinations for our customers.
Fleet’s average: Based on European standard
Euro 2/3
Euro 5
Euro 4
Euro 6
5%
4% 5%
16%
13%
‘14 62% 62%
5% 16%
‘13
12%
34
EEV
New developments in LNG (Liquefied Natural Gas) In 2014 there have been a few exciting developments for the introduction of LNG as an alternative fuel. Under the European Alternative Fuel Infrastructure Directive (2014/94/EU) adopted in 2014, each member state must have a network of LNG stations along the European core road network in 2015, with at least one LNG station every 400 km. The directive is a welcome stimulus for the development of an international network. In 2014 Belgium and France each opened their first two stations. In the Netherlands about ten LNG stations are already operational (see map). Another development in 2014 was the arrival of the second generation of LNG trucks with euro 6 engines. We expect capacities and configurations to improve further in the years to come so that the trucks can also be deployed for heavier loads, international transport and bulk transport. We regularly discuss our technical wishes with a variety of OEMs. In the past year we added three Iveco Stralis euro 5 LNG trucks to our LNG fleet, these trucks are deployed in the Benelux and Germany. A further increase of the fleet with euro 6 LNG trucks is planned for 2015. Looking back on 2014, developments for the LNG market are positive: in addition to regulatory and technical progress on the supply side, (prospective) customers increasingly communicate a specific interest in LNG, mainly driven by an ambition to reduce CO2 emissions. We intend to continue to cooperate with enthusiastic shippers to maintain and build on our position as LNG pioneer.
LNG stations in Europe 2014 Sweden
United Kingdom
The Netherlands
Belgium
France
Portugal
Spain
Italy
35
WIM VAN DE POLDER - OPERATIONS DIRECTOR LAND, WESTERN EUROPE CONTAINERSHIPS ROTTERDAM B.V. “There is a natural fit between the organizations of Containerships and Vos Logistics. In combination with our common interest in LNG, there is a perfect basis for a longterm partnership.” Vos Logistics’ LNG concept was embraced by Containerships in 2014. This resulted in an agreement and the startup of a partnership with Vos Logistics which will be further expanded in 2015. Containerships, a company with its head offices in Finland, provides every service our customers need to ensure safe and rapid container shipping between Russia and the Baltic, Europe, UK, Ireland and the North Sea, as well as between North Africa and the Mediterranean. Containerships will become the first short-sea container operator in Europe to use LNG as its main fuel in the whole end-to-end service at sea and on land. The cooperation between Vos Logistics and Containerships includes container trucking mainly from/to the ports of Rotterdam (NL) and Gent (BE). The new cooperation is based on the use of Vos Logistics’ LNG trucks, not only because of the positive effect on the environment, but also because it meets Containerships performance and efficiency needs.
36
37
OPERATIONS
Key points 2014/2015 • • • • • • • •
Roll out multisite ISO 9001 certification to all sites Apply for lean and green star (Connekt) Prioritize damage prevention plan Enlarge internal audit team to four auditors Integration of sustainability into the overall procurement process Introduction of code of conduct Launch project: reducing idling time (stationary running of engine) Develop transport of ADR goods
REALIZED REALIZED REALIZED REALIZED IN PROGRESS NEW NEW NEW
Percentage
Percentage multimodal
25 % 20 % 15 % 10 % 5% 0%
16.0 %
2009
17.0 %
18.5 %
20.0 %
2010
2011
2012
21.0 %
2013
20.0 %
2014
2015
Reducing idling time Analyses of diesel consumption show that drivers often leave the engine running at rest moments. In 2015 we will launch a project to cut idling time by half. We will focus on both technical solutions and increased awareness among our drivers.
Transport of ADR goods In 2015 we will expand our services by further developing the international transport of ADR goods. All international trucks and trailers will be made suitable for the transport of ADR goods. All international drivers will be trained as ADR driver.
38
Slight decline in multimodal transport Multimodal solutions were used for 20% of all international shipments in 2014, 1 percentage point less than in 2013 and 2 points off our objective of 22%. The decline in the number of multimodal shipments is mainly the result of a reduction in rail transport from the Benelux and France to Italy. The number of short-sea shipments remained unchanged. In 2015 we expect a reduction in ferry shipments due to the implementation of SECA (Sulfur Emission Control Area; see Dilemma). In dialog with train and ferry operators we are assessing how to benefit from economic and effective multimodal alternatives to serve our customers. A new train service will be introduced from Le Boulou to Calais in 2015, with connections to all ferry lines to the UK. In addition a new train service from Coevorden (NL) to Malmö (Sweden) will start in the first quarter of 2015. (see: Dilemma).
Multimodal Infrastructure
55 intermodal ports in 12 countries and 41 routes in total
Terminal Port
Sweden
United Kingdom
The Netherlands Poland Belgium
Germany
Luxembourg
France
Portugal
Spain
Italy
39
DILEMMA SECA (SULFUR EMISSION CONTROL AREA) INCREASED COSTS Since 1 January 2015 vessels that sail in the SECA areas (North Sea, Baltic Sea, English Channel) may not emit more sulfur than 0.1% (was 1.0%). Lower emission can be realized, inter alia, by making use of low sulfurous fuel. This fuel, however, is 40% to 50% more expensive than the fuel currently used by shipping companies. At the end of 2014 Transfennica terminated its service between Spain and Belgium (via the UK) because of the higher costs. The route, between the ports of Bilbao (Spain), Portsmouth (United Kingdom) and Zeebrugge (Belgium), had been opened in 2007. A return from water to road traffic is foreseen for significant trailer volumes as a consequence of the SECA legislation. This legislation generates a side effect that is at odds with its objective, which is to reduce emissions.
40
DANIEL LEBRETON - SALES MANAGER VIIA - LORRY RAIL (SNCF LOGISTICS) GILLES CATTANI - SALES MANAGER AFA (SNCF LOGISTICS)
‘Vos Logistics: a key partner with the rail motorways’ The VIIA group (SNCF Logistics) launched AFA, the first rail motorway, in November 2003. The line runs from Aiton (near Chambery, Savoy, France) to Orbassano (Turin, Piedmont, Italy) and Vos Logistics has been using it since the very first day. The 180 km line carries freight across the Alps and allows transport companies to avoid high road costs. The connection accepts unaccompanied trailers and accompanied trailers plus tractors and drivers, currently with 10 shuttles per day from Monday to Saturday. The average CO2 reduction is 180 kg per trip. In 2007, at the launch of the second rail motorway, Lorry Rail, between Bettembourg (Luxemburg) and Le Boulou (Spanish border near Perpignan), Vos Logistics was again one of the first customers. With 8 shuttles per day 7/7, the line carries unaccompanied trailers, containers and swap bodies 1,050 km between northern France and Spain without using expensive motorways and saving precious time each trip. The average CO2 reduction is approximately 980 kg per trip. The environmentally-friendly and innovative system saves money and transporters can carry up to four additional tons per shipment. The higher volumes being shipped on rail motorways enables Vos Logistics to negotiate important contracts with industrial companies. Vos Logistics shipped approx. 29,000 trailers on AFA and approx. 15,000 on Lorry Rail. Since the start of the operation, the rail motorways therefore carried approx. 44,000 units in total for Vos Logistics, with a carbon footprint reduction of more than 20 million kg! Both Vos Logistics and the VIIA group’s rail motorways from share the same idea and strategy for a future with less pollution and efficient new multimodal services. VIIA is investing in new lines. A new service will be opened from Le Boulou to Calais in 2015 with connections to all ferry lines to the UK. The Atlantic Route from Dourges to Bayonne is also a priority. These services will strengthen the loyal partnership built up between VIIA and Vos Logistics over 12 years.
41
DILEMMA RAIL VERSUS ROAD TRANSPORT: A BALANCE BETWEEN SERVICE, COSTS AND SUSTAINABILITY The considerable benefits of rail transport are felt on longer distances, mainly because of the more favorable pricing. Another advantage is the lower CO2 emission compared to road transport. Rail transport is therefore a sustainable solution. In our experience the performance of rail operators is adversely affected by frequent delays due to, for instance, industrial actions and bad weather conditions. This renders rail transport unreliable compared to road transport. The absence of standard traceability also makes rail less attractive, as does regular damage caused by switching and theft. In the years to come it will remain a challenge to find the correct balance between the service, costs, and sustainability of the various transport solutions.
Sustainable procurement For major procurement processes, we work with expert procurement teams. Specialists within the organization collaborate on the basis of their specific knowledge. We challenge suppliers to offer innovative and sustainable solutions during and after procurement that contribute to our objectives and help us stand out from other logistics service providers.
Damage prevention plan The plan to prevent collision damage was rolled out further in 2014 and mentor drivers received additional training. As three out of four collisions occur during maneuvering, Vos Logistics Polska developed a new maneuvering course in 2014. A version of it will be given to all drivers, irrespective of their experience. Awareness in the company –from drivers to directors– of the consequences of collisions is growing. Our objective of reducing collisions by a quarter within three years has been realized within two years. We aim to reduce the number further in 2015 by training drivers to position their mirrors correctly.
Code of conduct We act in accordance with our values of service and ethical principles. To provide our organization and our suppliers with specific guidelines on how to act, we are in the process of drawing up a Vos Logistics Code of conduct, which contains ethical principles and explains what we expect from our organization and our suppliers. Once the Vos Logistics Code of conduct has been finalized an implementation program will be set up to effect both internal and external introduction of the code.
42
‘The multisite certification has now been awarded to all sites and central management is gaining more momentum.’ Auditor conclusion ISO 9001: 2008 audit
CERTIFICATES
2014
2013
ISO 9001:2008
21
18
ISO 22000
7
6
ISO 14001
3
3
GMP+/Qualimat
9
10
SQAS
7
6
AEO
3
3
*The number indicates the number of business units that hold each quality certificate
Quality assurance At the end of 2013 we set ourselves the goal of having the corporate multisite ISO 9001 certificate covering all sites. After the successful audits of the sites in Pittem (BE), Lyon, Gerzat (F) and Cluj-Napoca (RO), all our locations have now been ISO certified. All branches within Vos Logistics have been working with a uniform Quality Management System accessible via the intranet since 2014. Other certificates are based on the locations’ activities. Those that serve the food industry are covered by the ISO 22000 multisite certificate. Those that are active in the feed industry are covered by the GMP+ multi-site certificate.
Vos Logistics plays an active role in the following programs: • Lean and Green/Connekt Netherlands • Responsible Care®/ECTA • Green Freight Europe • Green Care Transport
43
VOS LOGISTICS WINS LEAN & GREEN STAR AWARD In 2014 Vos Logistics was awarded the Lean & Green Star for reducing the Group’s CO2 emissions by 20% within five years. The honor follows the Lean & Green Award Vos Logistics won in November 2010 for its ambitious plan to cut CO2 emissions by 20% over five years. The Lean and Green Star is an initiative of Connekt, an independent network of companies and public authorities that connects parties in order to work on the sustainable improvement of transport in the Netherlands. The program matches Vos Logistics’ ongoing sustainability program focusing on efficient and clean transport and logistics innovations.
44
Training A variety of quality courses were followed in 2014: ISO 9001:2008-2015, Root Cause Analysis (RCA) training and a course for internal auditors. Staff from several sites took part in the courses. Staff on the ISO 9001 course learnt about the new ISO standard that will be published in 2015 and the changes that will have to be made in the current quality management system. We will carry out a GAP analysis in 2015 to compare the current ISO standard (2008) with the required ISO standard (2015). 36 employees were trained in performing root cause analyses last year. The multidisciplinary training teams approach problems from multiple points of view (operational, quality, HR, etc.). Staff training is based on real cases with the focus on how to analyze the root cause of a problem in order to determine and implement corrective measures. Vos Logistics has opted for the fishbone model to approach a problem from various angles (material, method, human and machine). We will continue these training sessions in the coming year.
Internal audits In 2014 the internal audit team checked compliance with safety regulations by paying additional attention to aspects such as keeping emergency exists free, evacuation drills, risk inventories and the use of personal protective equipment. The team specifically checked whether the storage of dangerous goods complied with applicable regulations and local permits. The maintenance and inspection reviews were checked on completeness and timely performance. The internal audit team also paid particular attention to: • safety (emergency response plan, Safety@Warehouse) • maintenance and inspections • follow-up internal audits • storage of dangerous goods In 2015 the internal audit team will continue to pay specific attention to safety: • safety: Safety@Warehouse, dangerous goods, emergency response plan, evacuation drill, personal safety equipment; • follow-up internal audits: a timely and proactive follow-up of the findings of the internal audits; • suppliers’ assessments: the quality of the annual assessment and evaluation of suppliers; • root cause analysis: the practical application of RCAs.
45
PREMISES
Key points 2014/2015 • • • •
Roll out waste separation at source to other locations BREEAM build distribution center in Oss Renovation of offices in Oss Reduction of paper use in the offices
REALIZED REALIZED IN PROGRESS NEW
Kg CO2 per m2
Kg CO2 emission premises per m2 20 15 10 5 0
16.9
11.8
12.9
9.9
8.8
8.9
2009
2010
2011
2012
2013
2014
2015
Carbon footprint of premises on target In 2014 the average CO2 emission amounted to 8.9 kg CO2 per m2, a small increase compared to 2013 (8.8 kg CO2 per m2) but well under the objective for 2014 (9.3 kg CO2 per m2). In Oevel (BE) and Goch (DE) we achieved a further CO2 reduction, as we did at our warehouse in Oss, where the use of LED lighting had definite benefits. The CO2 emission of our locations in Roosendaal, Helmond and Silo Oss, on the other hand, increased. This is because the CO2 emission is measured by the footprint and not related to the activities carried out. At these locations we increased on activity levels. We expect to reduce the CO2 emission per m2 in Oss as activities that used to take place at different locations will be combined in one building at the start of 2015 and the new BREEAM certified warehouse will be taken into operation.
46
Waste separation at source In our BREEAM certified buildings in Roosendaal and Oss waste is collected in four streams: industrial waste, paper/cardboard, foil and chemical waste. This waste is collected separately in the warehouse and the offices and disposed of with the local waste processor. Automatic compactors are available for paper/cardboard and foil. Reservoirs (special chemical collector boxes) are available to dispose of dangerous substances. Dangerous substances are also collected and processed by the waste processing company. The compactor rentals are paid for from the proceeds of the sale of the compacted plastic. To reduce office waste, a more active ‘paperless/less paper’ policy will be introduced in 2015. More digital and fewer hardcopy files will therefore be created. By default, printing also takes place double-sided.
Renovation of the offices in Oss In 2014 we examined the options of renovating our office in Oss. We concluded that moving into another existing building would be more efficient and better meet the organization’s requirements. In March 2015 we have moved into an existing building in Oss. The building will house the corporate staff and Cargo, Bulk and Forwarding teams. The relocation will reduce the number of office locations from three to one.
47
SAFETY Key points 2014/2015 • • • • •
48
Introduce new concept of safety alerts Launch Safety@Warehouse project Appoint internal safety teams Increase safety awareness Improve follow-up of accident reports
REALIZED REALIZED RESOLVED IN PROGRESS IN PROGRESS
Highest priority to zero accidents The Lost Time Injury Rate fell from 0.95 to 0.78 in 2014. Improving safety results can take a long time and require continuous attention. In recent years our focus has centered on training and creating awareness. We will continue on this course in the years to come.
Fatalities In the past year we had to regret two fatal accidents, one of which involved a Vos Logistics’ driver. On 15 March our driver Mariusz Kolczynski died after falling out of the cabin of his truck. On 28 November one of our drivers had to perform an evasive maneuver in poor weather conditions, resulting in fatal injuries to another truck driver. We have carried out thorough root cause analyses in relation to these incidents in order to implement measures to prevent them from recurring in the future
Lost Time Injury Rate (LTIR) In 2014, 29 accidents at work led to absenteeism. This is an improvement on 2013, when the number came to 36. All accidents were subject to Root Cause Analysis (RCA) to identify the root cause and take corrective measures. Lack of attention remains the biggest cause. Stepping into and out of the truck and lifting share second place. Stumbling and slipping are the third biggest cause of accidents. Information about the causes is used to improve our training programs. As employees who have been working with us for less than one year are involved in an accident more often, training new employees remains a priority.
Lost workday cases 2014
2013
2012
29
36
33
2014
2013
2012
568
1,609
932
2014
2013
2012
20
45
40
Lost workdays
Average days
49
LTIR
Lost Time Injury Rate (LTIR) 1.2 1.0 0.8 0.6 0.4 0.2 0.0
0.60
0.70
2009
2010
1.05
2011
0.87
0.95
0.78
2012
2013
2014
2015
** LTIR: Number of Lost Workday Cases + number of fatalities x 1,000,000 divided by the number of man-hours worked (153 hours per month)
Cause 35 %
Percentage
30 % 25 % 20 % 15 % 10 % 5% 0%
31%
Human error
50
17 %
17 %
Falling out of truck/trailer
Lifting tilting
14%
Slipping / stumbling
10 %
Force Majeure
3%
3%
3%
Unsafe conditions at customer
Personal protective equipment
Weather conditions
Employees involved in Lost Time Injuries
86%
67%
2014
2013
Driver
10%
22%
2014
2013
Warehouse employee
4%
8%
2014
2013
Cleaning employee
0%
3%
2014
2013
Office employees
How many days lost?
24%
25%
2014
2013
1 week & 1 month & 6 months
Age
7%
31%
24%
24%
14%
15-25 years
25-35 years
35-45 years
45-55 years
>55 years
Working experience
31%
7%
28%
34%
1 - 2 - 5 years
51
CLEANING STATIONS AT OSS AND LYON Cleaners working at a height in our facilities in Oss and Lyon are at risk of injury. Cleaners go on top of the silos approximately 3,000 times a year. To achieve a safe working environment, a fall protection system was fitted at both cleaning stations. The fall protection system consists of four elements: • Approved harnesses; • Bars around the top of the vehicle; • Rail and runners for assist climbing; • Stop-block (based on safety belt system in cars). Cleaners receive training for tank cleaners, suitable personal protective equipment (PPE) and procedures to prevent incidents.
52
Contract Logistics introduced the Safety@ Warehouse project in 2014. Its objective is to improve and safeguard safety at the logistics sites. The need for safety is explained using examples from recent accidents. Best practices were collected from each site and external companies that are trendsetters in safety were visited. A training program was set up with modules on safety awareness, dangerous goods handling and storage, and material handling. Finally, our insurer carried out a risk assessment and provided specific recommendations for each site.
Safety@Warehouse team
Safety alerts In 2014 we issued our first three safety alerts. A safety alert can contain information about accidents and how to prevent them. The objective is to increase awareness amongst the employees. The alerts provided information on: • an accident in the warehouse; • instructions on how to handle claims in France; • an accident in the cleaning station; • instructions on how to secure loads; • the prevention of illegal immigrants and theft; • instructions on the receipt of goods in the warehouse. We recently prepared a new format for our employee safety alerts. We monitor whether the employees received the safety alert and whether they read it. Employees can report accidents and dangerous situations via a central email address:
[email protected]
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STAFF Key points 2014/2015
• Improve training records REALIZED • Follow-up action points from staff satisfaction survey REALIZED • Follow-up staff dialogue REALIZED • Updating driver’s manual REALIZED • Investigate possibilities for implementation drivers’ portal IN PROGRESS • Improve language skills of drivers NEW
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Vos Logistics considers its staff to be its most important asset. We aim to offer our employees a safe and healthy workplace and invest in their personal development. The quality of our services are determined by the performance of our people. That is why, in addition to infrastructure and IT systems, Vos Logistics recognizes the great value of the development of individual employees. Education and training therefore are of the utmost importance.
Improving training records Vos Logistics trains its staff with the objective of providing them with the required knowledge to achieve organizational and personal objectives. The policy also contributes to retaining qualified, competent, vital and motivated colleagues. We monitor which employees have taken which courses every quarter to show whether the training targets have been met. The number of training hours increased by 769 to 25,709 in 2014. The average number of annual training hours per employee remained the same: 14 hours. A training plan has been drawn up for 2015 outlining which courses are planned for which employees.
Training direct staff
Hours 2014
Hours 2013
Vos Logistics Driver Training
9,103
2,100
Language training
3,511
960
Refresher training Code95 (NL)
1,686
880
Driver refreshment training
618
4,770
Digital tacho training
606
960
Safety & Hygiene training
497
1,560
Behavior-Based-Safety training
371
900
Eco-safe driving
311
2,620
Accident prevention training
288
840
Technical training
192
1,390
Forklift training
101
60
Other
688
130
Total
17,972
17,170
*Direct staff: Truck drivers, forklift drivers, cleaning and workshop employees
Training indirect staff
Hours 2014
Hours 2013
Communication training
2,025
Legal, HR, Safety and Quality training
1,711
790
Management training
1,515
1,470
Financial training
984
880
Sales
702
0
IT training
426
120
Logistics
32
1,460
2,950
16
20
Other
326
80
Total
7,737
Technical training
7,770
*Indirect staff: Office staff
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Vos Logistics driver’s training With the relatively high inflow of new drivers in 2014, there was a considerable increase in driver’s training hours. The Vos Logistics driver’s training course is taken by every driver at the start of their employment and consists of five modules: • roles, communication and communication tools • safety, health and the environment • truck and trailer • on the road • customer focus After they have completed the course, the drivers are coached and trained by mentor drivers during their work. This practical training pays special attention to driving style, loading and unloading and how to work at customers.
Language training A large proportion of the drivers took language courses in 2014. We introduced the courses because our customers are setting ever higher demands on communication. They were developed jointly with a language school and are geared specifically to the subjects that drivers encounter in their day-to-day work. We intend to improve our drivers’ language skills further in 2015.
Improved appraisal and performance interviews Several managers took a course in appraisal interviews in 2014. The course was introduced partly because the 2012 staff satisfaction survey had revealed areas for improvement in the appraisal and performance interviews. The course teaches managers how to incorporate the organization/employees’ expectations into appraisal interviews.
Sickness absence further reduced Vos Logistics wants its employees to be able to work throughout their careers. An active sickness absence policy run by the company itself has significantly cut absenteeism over the years. With an overall sickness absence rate of 2.83% we performed better than our target of 2.9% in 2014. In comparison with 2013, the rate fell by 0.23 percentage point. The improvement was due mainly to a fall among indirect personnel.
Percentage
Sickness absence 4.50% 4.00% 3.50% 3.00% 4.20%
2.50%
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2009
3.80%
2010
3.40%
2011
3.00%
2012
3.06%
2013
2.83%
2014
2015
Sickness absence 2014
Duration sickness 2014
Total staff
2.83%
Short (< 8 days)
52%
Direct staff
3.03%
Medium (8-43 days)
29%
Indirect staff
2.29%
Long (>43 days)
19%
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Sickness absence in 2014 was below the average rate in the transport and storage industry. In the last couple of years the average rate in the Netherlands has been slightly higher than 4%. (Source: Transport in figures, TLN)
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Sustainable employability Sustainable employability is becoming more important for Vos Logistics. The average age of the workforce will increase as the next generation must work longer. It is important that employees remain healthy enough to work with passion and pleasure. Investing in sustainable employability is therefore vital. Vos Logistics is anticipating these changes with special employability training courses and job rotation programs.
Drivers’ portal We were unable to develop a driver’s portal in 2014. In 2015 we will again consider whether the implementation of a driver’s portal is feasible and how it should be designed.
Staff dialogue CEO ‘I would like to meet you’ Frank Verhoeven (CEO) will again hold staff sessions at every location in 2015 to give all members of staff an opportunity to ask questions and present ideas to improve the organization. The staff will also be brought up-to-date on the latest developments. Previous sessions produced a lot of positive responses from the staff and the Management found them to be very inspiring and helpful.
Composition of the workforce The average number of staff (excluding temporary staff and self-employed drivers) increased slightly from 1,772 FTEs in 2013 to 1,785 in 2014.
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Composition of the workforce The average number of staff declined during the year from 1,778 FTEs in 2012 to 1,772 FTEs in 2013, a reduction of six FTEs. Vos Logistics is an international organization that is home to different nationalities and different cultures and encourages mutual respect for each other.
Staff nationality 2014
7% 2% 4% 4% 38%
6%
12%
27%
60
38%
27%
12%
6%
4%
4%
2%
7%
Polish
Dutch
Romanian
German
French
Spanish
Belgium
Other
Years of employment
19%
13%
20%
26%
12%
6%
3%
1%
1
1-2
2-5
5-10
10-20
20-30
30-40
40
Age of employment
4%
21%
31%
27%
17%
15-25
25-35
35-45
45-55
>55
Fulltime-equivalent (FTE) Direct
1,403
Indirect
382
Total
1,785
* Average 2014
Male - Female
11% 89%
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CUSTOMERS
Key points 2014/2015 • Improvement in operational excellence • Focus on customer partnerships • Continued improvement in customer satisfaction
IN PROGRESS IN PROGRESS IN PROGRESS
Average score
Customer satisfaction 8.6 8.2 7.8 7.4 7.0
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7.4
7.6
7.7
7.94
7.94
7.76
2009
2010
2011
2012
2013
2014
2015
Customer satisfaction THINKING IN SOLUTIONS AND CUSTOMER CARE MAIN RESULTS OF CUSTOMER SATISFACTION SURVEY Customer satisfaction is a high priority at Vos Logistics. For the fourth time we executed a survey amongst our customers to gauge their satisfaction with our service and to find out what they find important. To express our appreciation for participating we made a donation to KidsRights® for every response received. Overall our service is appreciated with a score of 7.8, which is above the benchmark of the sector and slightly below the score of 2013. The Net Promoter Score (NPS) expressing the extent to which customers are prepared to recommend Vos Logistics as a service provider to others increased with 2.0% to 10.0%. Customers recognize the Values Of Service of Vos Logistics and particularly appreciate Vos Logistics for its professionalism, thinking in solutions and customer care. Vos Logistics’ employees are friendly, easy to reach, provide quick responses and are well informed about the status of shipments and stock positions. Customers encourage us to be more innovative and focus on a safe working environment. We notice that sustainability in the supply chain is becoming increasingly important to them. 97% of the respondents indicates that the service quality improved or stayed the same, 82% of the respondents indicated that innovation is important to their business and 85% said sustainability had a medium to large impact on the selection of logistics service partner. Although Vos Logistics’ employees are seen as being responsive, customers want us to pay more attention to situations when complaints arise. Most complaints relate to missed delivery times and incomplete and/or damaged deliveries. Customers are specifically asking us to improve the corrective actions we take to avoid future disruptions. Vos Logistics has a special complaint handling procedure. Every complaint is investigated with the aid of Root Cause Analysis. The customer always receives a full explanation of our response and the measures we take. With the information we receive, we can analyse any bottlenecks in our operation and take corrective measures to improve our products and services.
Customer satisfaction survey
2015 2013
Sales Management
8.1 8.3
Customer Service
8.1 8.3
Logistics
7.9 7.7
Warehousing
7.7 7.9 7.7 7.6
Equipment and Driver 7.3 7.1
Value for Money
6.7 6.9
Complaints Handling
0
1
2
3
4
5
6
7
8
9
10
Average score
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SOCIETY Vos Logistics is aware of its role in society, especially in an international and multicultural environment. The company is active in various partnerships with industry, local and regional government and education. The goal is to create a good working environment by strengthening the local and regional economy and cooperate with local companies (logistics service providers and shippers) to devise smarter and more efficient logistics solutions. The company is firmly anchored in the regional community, as illustrated by the many initiatives taken in the northeast Brabant region:
• Logistics Platform Oss, an alliance between logistics service providers and the municipality of Oss
• Five star Logistics, an alliance of three logistics’ platforms in Oss (LPO) Veghel/Uden/Cuijck (LPNOB) and ‘s-Hertogenbosch (LP’sH).
• AgriFood Capital, an alliance between entrepreneurs, education and the business community focusing on the Agrifood sector.
Vos Logistics also encourages its staff to become personally involved in a variety of local social initiatives. This has led to many initiatives to benefit society. In this context we can mention three other examples of local initiatives: the Shoebox Project at Vos Logistics Romania and the cooperation of Vos Logistics Helmond with Atlant. In addition in 2014 Vos Logistics made a donation to KidsRights for every customer participating in the customer satisfaction survey.
KidsRights KidsRights helps very vulnerable children aged 0 to 18 everywhere in the world who do not have the chance to develop themselves because their rights are systematically ignored. It supports children who are the victim of neglect, abuse, violence, exploitation and discrimination or who run more risk of becoming a victim due to their living conditions or environment. KidsRights makes it possible for children to realize their rights. It does so by financing existing, well-run local projects that focus on the promotion and observance of children’s rights. For more information see www.kidsrights.nl
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Vos Logistics Romania - Shoebox project The team of Vos Logistics Romania got involved in the Shoebox Project, a project for more privileged people to give Christmas presents to children in need. The initiative drew a great public response; Romanians from 96 cities in 14 countries donated presents at 204 collection centers. Vos Logistics Romania was proud to be one of them. Every day the faces of our colleagues lit up as they delivered their shoebox filled with clothes, toys and sweets to our office. As the pile of carefully wrapped shoebox presents grew so did the morale and the Christmas spirit in our office. The team involved their friends and family in the project and in a couple of days 30 boxes had been gathered and dropped off at the collection center for distribution to underprivileged children from all corners of the country. ‘Getting involved in this project created a meaningful experience for the whole team.’ said Alexandra Szabo. ‘It was an incredible team building and leadership experience for those taking part and gave employees the chance to make a difference, doing something they are passionate about without it coming at a cost at work.’ said Katalin Vincze. We trust that this experience, like any other social engagement project, creates bonds among employees, encourages a value-based company culture and increases the overall morale of the organization. We plan to continue these kinds of projects in 2015.
Vos Logistics Helmond – Most Social Partner 2014 In 2014 Vos Logistics Helmond was named the Most Social Partner of the Atlant Group for its commitment to corporate social responsibility. A considerable group of people in society need help to find a job. Think about people with an impairment, people who have not been working for a long period of time or who need to look for a new job after a period of sickness. The Atlant Group helps them participate in the labor force. The Atlant Group sees to it that as many of these people as possible find an appropriate job in the regular business community. Vos Logistics Helmond has been working with people who are not part of the regular labor market since 2008, well before the Dutch Participation Act that took effect on 1 January 2015. In recent years it has worked closely with the Atlant Group. At the moment Helmond employs 26 people who are not part of the regular labor market. They are supervised by a coach from Atlant. According to business unit manager Toine Rijvers the people have fully integrated in the organization and their commitment benefits the labor relationships of the whole team. Personally it gives him a very good feeling when he sees the Atlant employees go home satisfied at the end of the day and start working again for Vos Logistics with enthusiasm the next day.
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Risk management Like every other company, Vos Logistics is exposed to market, operational and financial risks in its ordinary activities. Vos Logistics seeks to mitigate the risks on its ordinary activities by means of a robust professional organization and high quality service. Service and efficiency levels are assured by uniform working methods, staff training and education, consistent administrative procedures and transparency in costs and revenues, supported by integrated communication and information systems.
Market risks Vos Logistics is sensitive to fluctuations in economic activity and in the volumes generated by its customers. Vos Logistics’ market is mainly in Western Europe. Economic developments and changes in the overall volume of international goods flows can vary per country, impacting not only on revenues but also on the capacity balance in our networks. Vos Logistics serves many industries in many countries with a variety of transport and logistics services. The different product/market combinations follow different dynamics. This partly mitigates our sensitivity to market fluctuations. One of Vos Logistics’ main Values Of Service, ‘Agility’, deals with these changes. With its international organization based on the flexible and efficient operation of both its own vehicle fleet and external capacity, the company can respond effectively to the rapidly changing demand for international transport in terms of both volumes and destinations.
Political and regulatory changes European and national transport legislation and taxation are changing. This is resulting in operational uncertainties and extra costs. Vos Logistics is actively following these developments and adapting its operations to remain compliant with regulations and to take the changed cost settings into account.
Operational risks DEFAULTS The processes within Vos Logistics are supported by advanced information and communication systems. The transparency they create facilitates compliance with procedures and minimizes the risk of misunderstandings and errors. An example of such a system is LOVOS. Developed in-house, it supports the customer service, planning, fleet management and accounting departments at more than 20 locations in Europe so that we can make maximum use of our transport capacity. LIABILITY Liability for direct and indirect losses is limited or excluded by means of general terms and conditions of trade and/or specific agreements with customers or suppliers. Remaining risks are mitigated by both internal procedures and insurance coverage. Strict internal procedures and guidelines have been drawn up to limit liability risks arising from non-conformity with local legislation or customs clearance activities. Compliance is continuously monitored. The staff are trained accordingly. FUEL PRICES Fuel costs are a major component of the transport costs. Fuel prices have fluctuated up and down over recent years. In line with our sustainability ambitions Vos Logistics is actively managing the fuel consumption and offering more multimodal transport solutions, which reduce the relative use of fuel. Vos Logistics is also using fuel clauses in most of its sales agreements that transfer fuel cost fluctuations, with a minimum of delay, to customers.
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SAFETY There is a risk of operating activities leading to accidents, bodily injury and loss of reputation or being implemented in breach of health and safety regulations. Vos Logistics’ safety measures are very strict. Prevention has the highest priority and the safety policy recognizes human awareness as one of the highest risk factors. A great deal of energy is spent on training staff about safety awareness and skills.
Financial Risks INTEREST RATE FLUCTUATIONS The euro interest rates are currently fluctuating at a low level. Vos Logistics has several forms of financing which could be impacted by interest rate fluctuations, as financing from factoring and the subordinated loan include an Euribor base. The interest rate risk to Vos Logistics for financing from leasing’s is limited as they are based on a fixed rate. The Euribor rate is not hedged. DEBTOR RISKS Vos logistics faces two types of debtor risk. The risk that the debtor cannot fulfill its obligations and the cash flow risks of late payments. Vos Logistics mitigates these risks by means of credit checks, credit insurance and active monitoring and collection. LIQUIDITY RISK Transport in general, and Vos Logistics in particular, is capital intensive with a fairly fixed cost base. The markets for transport & logistics are cyclical. Liquidity risk is mitigated by maintaining liquidity buffers as well as long-term banking arrangements (until 2020) and factoring arrangements (until 2016). Financing of the asset base is secured by long-term leasing. The financing required for the intended investment programs is secured. Management of debtor risks (see above), utilization of a flexible non-committed capacity shell, use of temporary workers as well as periodic exit possibilities of own capacity further mitigate liquidity risks. FOREIGN EXCHANGE RISK As the Group includes Polish and Romanian companies, its balance sheet may be influenced by movements in the Polish zloty and the Romanian leu against the euro. The Group is also exposed to foreign exchange risks arising from purchase and sales transactions denominated in a currency other than the Group’s functional currency. The Group’s policy is not to hedge these risks
Internal control system Vos Logistics has an internal control system to control the risks inherent in its business operations and to oversee the effectiveness and efficiency of business processes and the consistency of accounting procedures. The Management is responsible for implementing, operating and monitoring the internal control system. This system has been designed to control significant risks and to realize the operational and financial objectives, as well as to ensure compliance.
Conclusion on the performance of the risk management and control system To the best of its knowledge and in the opinion of the Management, Vos Logistics’ risk management and control systems: • provide a reasonable degree of assurance that financial reporting is free of material misstatement; • have operated effectively during the financial year. There are currently no indications that the risk management and control systems will not function effectively in 2015.
Oss, 31 March 2015 Board of Management Frank Verhoeven, CEO Ben Vos, CFO
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Governance CORPORATE GOVERNANCE Change of ownership In December 2014 the ownership of Vos Logistics changed due to a transfer of all shares by sole shareholder Stichting Administratiekantoor Vos Logistics to (indirectly) Management and Scheybeeck Investments B.V. This change of ownership signifies a new corporate governance structure, as set out below. Before the change of ownership, the ultimate beneficiaries of the shares (predominantly a consortium of banks) were represented by Stichting Administratiekantoor Vos Logistics. The board of the Stichting (in English: foundation) was formed by three board members, i.e. the same persons as the Supervisory Board members. Effective as of the date of the change of ownership, they stepped down both as Supervisory Board members and as board members of the Stichting. As of the same date, the Supervisory Board was dissolved; the Stichting is in the process of being wound up. The Management of Vos Logistics Group wishes to express their deepest gratitude to the former depositary receipt holders and Supervisory Board members for their valuable contributions and support to the Group during the past years. Vos Logistics Beheer B.V., a limited liability company incorporated under Dutch law, remains Vos Logistics Group’s top holding company. It is not a listed company and therefore under no obligation to adhere to the Dutch Corporate Governance Code. Nevertheless, Vos Logistics as an organization strongly supports the principles underlying the Code and aims at complying with its best practice provisions where possible.
Shareholders On 17 December 2014, all shares in Vos Logistics Beheer B.V. were transferred by sole shareholder Stichting Administratiekantoor Vos Logistics to Elephantus B.V. Majority shareholder of Elephantus B.V. is Scheybeeck Investments B.V. (60% of ordinary shares). Frank Verhoeven (CEO) and Ben Vos (CFO) through their respective holding companies have become co-owners of Vos Logistics Group (they each hold 20% of the ordinary shares of Elephantus B.V.). The shareholders of Elephantus B.V. entered into a shareholders’ agreement, setting out their internal arrangements with regard to, inter alia, decision-making and reporting structures.
Organization of the company MANAGEMENT The change of ownership did not change the composition of the Board of Management: as before Vos Logistics Beheer B.V. is managed by a Board of Management consisting of a CEO (Frank Verhoeven) and a CFO (Ben Vos). The Board of Management is responsible for managing the company. It formulates and sets the vision and the corresponding mission, strategy and goals, in close consultation with the shareholders’ meeting. The Board of Management is responsible for the transparent management of the company. Board of Management members may be appointed, suspended and dismissed by an increased majority of the shareholders’ votes. The shareholders’ agreement contains reporting and consulting structures between the Board of Management and the shareholders. Financial reports are discussed with the shareholders in monthly and quarterly meetings.
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Furthermore, the shareholders’ agreement prescribes that certain shareholders’ resolutions may only be adopted by an increased majority of shareholders’ votes. The articles of association of Elephantus B.V. and those of Vos Logistics Beheer B.V. were drawn up accordingly. The shareholders’ agreement also contains a list of Management resolutions that may only be adopted after prior approval of the shareholders’ meeting. Management regulations were drawn up and approved by the shareholders. The management regulations list all resolutions to be adopted by the board members jointly. The management regulations further stipulate that in the event of a difference of opinion amongst the board members on specific issues barring them from adopting resolutions, the shareholders’ meeting may be requested to provide binding advice to the Management. The Board of Management exercises its duties in the interests of the company. The Board of Management continuously and whenever required provides the shareholders with the information they need to carry out their task. We are aware that there are currently no women on the Board of Management. Gender will be one of the assessment criteria for future appointments and we will seek qualified female candidates CONFLICTS OF INTEREST As of the date of change of ownership, the shareholders’ meeting is responsible for resolving any conflicts of interest between members of the Management and the external auditor on the one hand and the company on the other. No conflicts of interests have occurred since. In the new structure, the shareholders have chosen not to appoint a Supervisory Board. Both the shareholders and the Board of Management are confident that the new corporate structure contains sufficient checks and balances to ensure a proper functioning of the organization. During the sales process preceding the change of ownership, the Supervisory Board has represented the company regarding certain matters, in accordance with the provisions of the articles of association of the Company, in view of the Board of Management members’ prospective shareholding of the Company.
Financial Reporting EXTERNAL AUDITOR The external auditor is appointed by the Annual General Meeting. The external auditor reports to the shareholders and to the Board of Management. Shareholders and the Management hold one meeting with the external auditor, the CFO of the Company and the Group Controller. INTEGRATED REPORTING As of 2013, the company’s annual report comprises not only the financial report, but also the company’s sustainability report. Such integrated reporting is an expression of the importance of sustainability as an integral part of Vos Logistics’ operational management on behalf of its stakeholders. GOVERNANCE Sound business practices, integrity, respect, transparent reporting and accountability remain the cornerstones of Vos Logistics’ corporate governance policy. For Vos Logistics, corporate governance is determined by applicable national and European legislation, codes of best practice in the countries in which it operates and its own company values. Vos Logistics has several sets of regulations regarding the performance of the various bodies and the rules applicable within Vos Logistics. The regulations are reviewed from time to time and amended if necessary. The regulations are: - Articles of Association of the Company - Articles of Association of Elephantus B.V. - Shareholders’ Agreement - Vos Logistics’ policy - Values Of Service - Management Regulations
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ORGANIZATIONAL STRUCTURE
CEO/CFO
Cargo
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Group Control
Legal & Compliance
HRM
ICT
Bulk
Logistic Services
Transport Operations
MANAGEMENT TEAM (From left to right)
PAUL VAN HAM
ICT
TWAN HAERKENS
GROUP CONTROL
ANNEMARIE TIMMERMANS
LEGAL & COMPLIANCE
TOINE VAN GILS
WAREHOUSING & DISTRIBUTION
BEN VOS
CFO
FRANK VERHOEVEN
CEO
PAUL HOPPENBROUWERS
INTERNATIONAL FREIGHT FORWARDING AND TRANSPORT
HENK-JAN VAN DER MOLEN
CARGO
GUUS VAN BERGEN
TRANSPORT OPERATIONS
MARC VAN ALPHEN
BULK
TADEUSZ GRUBA
INTERNATIONAL FLEET
MAINO REMMERS
HUMAN RESOURCE MANAGEMENT
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COMPOSITION OF THE GROUP’S MANAGEMENT
Board of Management FRANK VERHOEVEN (B. 1966) CEO Nationality: Dutch Joined Vos Logistics: April 2007 (Supervisory) Board memberships and other positions held: Logistics Platform Oss (chairman), NDL/HIDC, OMO (Ons Middelbaar Onderwijs), Munckhof Groep, Stichting AgriFood Capital, Vijfsterren Logistiek Previous positions: Between 2006 and 2007 CEO at Biegelaar. From 1994 until 2006, senior management positions and member of the Group Management Team at the Royal Frans Maas Group (currently DSV). From 1992 until 1994, marketeer at Lease Plan
BEN VOS (B. 1966) CFO Nationality: Dutch Joined Vos Logistics: May 2008 Supervisory Board memberships held: Rabobank West Brabant Noord U.A. Previous positions: Since 2000, senior financial management positions at Wilson Logistics (currently Geodis Wilson) and Brunel International. Before 2000, auditor (in Dutch: registeraccountant) at Deloitte and PwC
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ORGANIZATION OF SUSTAINABILITY The sustainability policy, one of the key responsibilities of the CEO of Vos Logistics, is anchored at all levels of the organization. Sustainability is a responsibility of the Corporate Legal & Compliance Manager, who has a direct reporting line to the CEO. The Corporate Quality & Sustainability Manager and the Corporate Insurance Manager are members of this department.
CEO/CFO
Legal & Compliance Manager
Quality & Sustainability Manager
Insurance Manager
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SUSTAINABILITY TEAM Sustainability, quality and safety results and developments are discussed and shared during the Sustainability Team meetings. Two meetings were held in 2014. The team consists of all responsible directors from throughout the organization. The meetings considered the progress made in the field of sustainability, quality and safety. This meeting structure will be continued in 2015. One of the focal points on the agenda in 2015 will be a review of the KPI structure and the setting of new KPI targets for the next five year period.
The members of the Sustainability Team are:
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• Frank Verhoeven
CEO
• Annemarie Timmermans
Legal & Compliance Manager
• Natasja van Schaijk
Quality and Sustainability Manager
• Maino Remmers
Director Human Resource
• Marc van Alphen
Managing Director Sector Bulk
• Guus van Bergen
Director Transport Operations
• Toine van Gils
Director Sector Contract Logistics
• Paul Hoppenbrouwers
Director Sector International Freight Forwarding
• Tadeusz Gruba
Transport Operations Poland
• Marton Dosza
Transport Operations Romania
About this report
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INDEPENDENT ASSURANCE REPORT ON THE SUSTAINABILITY KPIS To: the general meeting of shareholders and Board of Management of Vos Logistics Beheer B.V. We have audited the statement of sustainability key performance indicators included in the report of the Board of Management on the pages 30 to 31 in the Integrated financial and sustainability review over 2014 (hereinafter: KPI Dashboard 2010-2015) of Vos Logistics Beheer B.V., Oss (hereinafter: Vos Logistics).
Limitations in our scope Our engagement to provide assurance on the KPI Dashboard 2010-2015 does not include other sustainability information, the corresponding comparative figures before 2012 of the KPI Dashboard 20102015 or references to www.voslogistics.com or external websites.
Board of Management’s responsibility The Board of Management is responsible for the preparation of the KPI Dashboard 2010-2015 in accordance with the reporting policy as developed by Vos Logistics as described in the Report of the Board of Management in the chapter “About this report”. The Board of Management is also responsible for such internal control as it determines is necessary to enable the preparation of the KPI Dashboard 2010-2015 that is free from material misstatement, whether due to fraud or error.
Auditor’s responsibility Our responsibility is to express an opinion on the KPI Dashboard 2010-2015 based on our audit. We conducted our audit in accordance with Dutch law, including the Dutch Standard 3000 Assurance engagements other than audits or reviews of historical financial information. This requires that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the KPI Dashboard 2010-2015, in all material respects correctly presents the data in accordance with the reporting policy of Vos Logistics. The procedures selected depend on the auditor’s judgment, including the assessment of risks of material misstatement of the KPI Dashboard 2010-2015, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the KPI Dashboard 2010-2015 in order to design assurance procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
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The examination of the KPI Dashboard 2010-2015 comprises the following procedures, in particular. • evaluating the acceptability of the reporting policies as developed by Vos Logistics and their consistent application; • assessing the information contained in the KPI Dashboard 2010-2015 on the basis of the reporting principles as included in the reporting policy of Vos Logistics Beheer B.V.; • obtaining an understanding of the design and operation of the systems and methods used to collect and process the reported information, including the consolidation process; • identifying inherent risks relating to the reliability of the information and investigating the extent to which these risks are limited by internal controls; • assessing the concerning internal controls for their operating effectiveness, insofar as this was relevant for our assurance engagement; • performing based on a risk analysis further procedures related to the KPI Dashboard 2010-2015 in the report, by a combination of: - interviews with relevant staff on all KPIs combined with quantitative analyses to assess the quantitative data; - reconciliations with audited financial statements and underlying environmental and social data systems; - detailed checks of the data themselves on a test basis, using internal and external sources of information to substantiate the reliability of the information provided. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Opinion In our opinion, and with due consideration of the limitations described in the paragraph ’Limitations in our scope’, the KPI Dashboard 2010-2015, in all material respects, correctly presents the data in accordance with the reporting policy of Vos Logistics as described in the report of the Board of Management in the chapter “About this report”.
Rotterdam, 31 March 2015 Ernst & Young Accountants LLP
Signed by H. Hollander
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Scope This report covers Vos Logistics’ activities and operational, financial and sustainability performance. It includes quantitative and qualitative data for the calendar year 2014 (January 2014 to December 2014). Most topics consider the Vos Group as a whole including joint ventures; some topics (where stated) do not include all joint ventures.
Materiality We have used input from internal and external stakeholders to draw up this integrated report. They assessed the impact of key issues on stakeholders and Vos Logistics by means of a materiality test. The results of this test served as the basis for selecting and prioritizing the issues dealt with in the report. KPIs were established for eight material subjects on the basis of ambition and agreements with stakeholders.
Materiality Matrix 2014 High
Relevant to stakeholders
4. Training & communication 5. Reliability 6. Complaint handling 7. Staff satisfaction
11. Innovation 12. ICT Security 13. Supplier assessments
1. Economic performance 2. Professionalism 3. Safety
8. Multimodal delelopments 9. Clean vehicle technolgies 10. Energy efficient buildings
14. Community engagement
Low
High Relevant to Vos Logistics
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TOP 10 Priorities 1. Economic performance 2. Professionalism 3. Safety 4. Training & communication 5. Reliability 6. Complaint handling 7. Staff satisfaction 8. Multimodal delelopments 9. Clean vehicle technolgies 10. Energy efficient buildings
Relevant chapter Key Facts Part of questionnaire customer satisfaction LTIR, fatalities Training hours Part of questionnaire customer satisfaction Part of questionnaire customer satisfaction Sickness absence Percentage mulitmodal CO2 Fleet CO2 premises
Medium material topics 11. Innovation 12. ICT security 13. Supplier assessment 14. Community engagement
Euro standard/LNG developments ICT Code of conduct Society
The materiality matrix consists of material (relevant) aspects that influence the performances of the organization. The more considerable the impact on both society and the business operations the more considerable the materiality. The materiality matrix was established by combining internal observations and the findings of stakeholders. On the vertical axis the material aspects are ranked by importance to our stakeholders, e.g. customers and employees. By connecting a relative value to these aspects it becomes apparent what materialities are most relevant and what we work on to improve performance and intensify the dialogue with stakeholders.
Validating the analysis We validated the outcome of the materiality assessment against the outcome of the most recent customer and employee satisfaction surveys. We also used the outcome of the CEO staff sessions ‘I would like to meet you’ as a validation instrument. During these sessions the staff have an opportunity to talk with the CEO and are encouraged to put forward ideas to improve the organization. For the carbon footprint we applied the decarbonisation model of the World Economic Forum to verify whether the outcomes of our materiality assessment differed from how our peers report. The Legal and Compliance team then presented the list of material aspects to the Sustainability Team (CEO and senior managers within the organization). The Sustainability Team determined the final list.
GRI G4 Vos Logistics prepared its 2014 integrated annual report in accordance with the GRI G4 framework for sustainability reporting (application level ‘core’) to the extent that the relevant guidelines are applicable to our activities. The GRI table can be found on our website: www.voslogistics.com
Assurance We integrated our financial report with our sustainability report this year and asked Ernst & Young Accountants LLP to provide assurance on our eight sustainability KPIs. The independent auditor’s report and assurance report is reproduced on pages 116 to 117.
Reporting process We have no overall information system in place for sustainability. Nevertheless, we have created a corporate sustainability report. All information is exported from our systems, such as LOVOS, SAS and PersMaster (Human Resources), where possible. We have used the GHG (GreenHouse Gas) Protocol to calculate the CO2 emissions for our premises and vehicles. The CO2 conversion factors for electricity and fuel have been adjusted to the latest version of the GHG Protocol (August 2012). The table below presents the definitions, scope and method used to measure, calculate and estimate the KPIs in our KPI Dashboard.
Third party quotes Instead of limiting this report to our own statements, we have chosen to report some quotes from our customers, employees and other stakeholders. We have used the quotes as they were presented to us.
Further information This report covers limited aspects of Vos Logistics. To gain a more comprehensive picture, we refer to our website: www.voslogistics.com
Disclaimer Nothing in this report is intended to extend Vos Logistics’ existing obligations to its customers or stakeholders. Vos Logistics reserves the right to withhold from third parties any details of policies, procedures, criteria, instruction guidelines or any comparable material mentioned in the report.
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KPI DASHBOARD 2010-2015 TABLE
KPI DEFINITION RELEVANT CHAPTER
CO2 emissions per ton/km (kg)
The CO2 in kilograms emitted by our trucks per ton/kilometer plus the CO2 emission per ton/km of multimodal transport
CO2 emissions, premises per m2 (kg)
The CO2 emissions from our premises
Multimodal
Transport using more than one modality, such as rail and short-sea
Fleet average
The average Euro standard of the fleet
Customer satisfaction
Average customer satisfaction, determined by external online Customer Satisfaction Survey
Sickness absence
Lost Time Injury Rate (LTIR)
Fatalities
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The absenteeism rate indicates the percentage of working time that is not worked owing to sickness or incapacity for work
Number of accidents with one or more lost working days + number of fatal accidents involving Vos Logistics’ staff relative to the number of hours worked in a given period.
The number of fatal accidents involving Vos Logistics’ staff
SCOPE MEASUREMENT, CALCULATION AND ESTIMATION METHOD
Vos Logistics Group, including joint ventures Zozaya and Cetra
•Road Transport: GreenHouse Gas Protocol. Total CO2 emission divided by ton/ km (Total CO2 + liters fuels x GHG Protocol unit. Ton/km = loaded kilometers x loaded weight). • Shipments reported by Vos Logistics Uithoorn and the joint venture Cetra are actual loaded weights. Other shipments are estimated at 24 tons. Approx. 85% of the locations record their loaded kilometers in LOVOS. The loaded kilometers of the locations that do not use LOVOS (approx. 15%) are estimated (varying from 50% to 85%). • Multimodal transport: ‘Measuring and Managing CO2 emissions of European Chemical Transport’ by Professor Alan McKinnon ((Number of multimodal shipments x average loaded weight) x average number of kilometers) x unit according to ‘Measuring and managing CO2 emissions of European Chemical Transport’ by Professor Alan McKinnon and Maja Piecyk.
Vos Logistics locations in the Netherlands + Goch (DE) + Oevel (BE)
GreenHouse Gas Protocol Number of KwH x GHG protocol unit divided by number of square meters. The CO2 measurement relates to the consumption of electricity; gas consumption is not included. The number of m2 per building is determined by lease contracts, measurement certificates and floor plans. The area of the location in Goch is estimated at 20,100 m2.
Vos Logistics business units operating in the international network: Cargo (Oss, Italy, Barcelona, Gerzat) Bulk (Oss, Lyon) Logistic Services (Pittem, Breukelen)
Number of multimodal shipments (rail and short sea) derived from the invoices of the rail and short-sea companies divided by the total number of shipments (road, rail and short sea) from the Lovos/Chainware planning system.
Vos Logistics Group, including joint ventures Zozaya, Cetra and Lutz
The number of trucks times the Euro standard divided by the number of trucks. The Euro standard for EEV is 5.5.
Vos Logistics Group, including joint venture Cetra
Average customer satisfaction, determined by external online customer satisfaction survey. The survey covers: Logistics, Equipment & driver, Sales management, Customer service, Warehousing, Complaints and Value for money
Vos Logistics Group, including joint ventures Zozaya and Cetra
Total number of days of absenteeism in a given period divided by the number of calendar days in the same period x number of employees x 100%.
Vos Logistics Group, including joint ventures Zozaya and Cetra
Number of Lost Workday Cases + number of fatalities x 1,000,000/number of man-hours worked (153 per month). Accidents and fatalities are reported and recorded centrally and checked against data at the HR department. Vos Logistics is confident that the data underlying the number of Lost Workday Cases and the LTIR are reliable. Vos Logistics works on increasing safety awareness, including the reporting of incidents. Absolute assurance on the completeness of the reports, however, cannot be given.
Vos Logistics Group, including joint ventures Zozaya and Cetra
Number of fatalities involving staff of Vos Logistics.
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GRI G4 TABLE (GLOBAL REPORTING INITIATIVE) Vos Logistics prepared its 2014 integrated annual report in accordance with the GRI G4 framework for sustainability reporting (application level ‘core’) to the extent that the relevant guidelines are applicable to our activities.
STRATEGY AND ANALYSIS GRI CODE G4-1
DESCRIPTION
OMISSIONS
EXTERNAL ASSURANCE
REFERENCE
Statement from the organization’s most senior
No omissions
No
Report of the Management/ Business review
decision maker
ORGANIZATIONAL PROFILE DESCRIPTION
OMISSIONS
EXTERNAL ASSURANCE
REFERENCE
G4-3
Name of the organization
No omissions
No
Cover/About Vos Logistics
G4-4
Primary brands, products and services
No omissions
No
About Vos Logistics/Profile
G4-5
Location of the organization’s headquarters
No omissions
No
About Vos Logistics/European network
G4-6
Number of countries where the organization
No omissions
No
About Vos Logistics/European network
INDICATOR
operated and names of countries where either the organization has operations that are significant or specifically relevant to the sustainability topics covered in this report G4-7
Nature of ownership and legal form
No omissions
No
Report of the Management/Governance
G4-8
Markets served (including geographic
No omissions
No
About Vos Logistics/Profile
No omissions
No
- About Vos Logistics Profile
breakdown, sectors served,and types of customers and beneficiaries) G4-9
Scale of the organization
- About Vos Logistics/European network -R eport of the Management/ Governance/Organization chart G4-10
Size of the workforce
No omissions
No
-A bout Vos Logistics/Profile -R eport of the Management/ Sustainability/Staff
G4-11
Percentage of total employees covered by
No omissions
No
All employees in the Netherlands working subject to the CAO (in English: collective
collective bargaining agreements
labor agreement) G4-12
Describe the organization’s supply chain
No omissions
No
-R eport of the Management/ Sustainability/Operations - Report of the Management/Governance
G4-13
Any significant changes during the reporting
No omissions
No
-S ince December 2014 all shares
period regarding size, structure,
in Vos Logistics have been held by
ownership or supply chain
the Company’s Management and the Dutch independent investment company Scheybeeck Investments http://www.scheybeeck.nl - Forwarding entity in Hungary sold
G4-14
Report whether and how the precautionary approach or principle is addressed by the organization
82
No omissions
No
Report of the Management/Risk management
ORGANIZATIONAL PROFILE GRI CODE G4-15
DESCRIPTION
OMISSIONS
EXTERNAL ASSURANCE
REFERENCE
List externally developed economic,
No omissions
No
- Responsible Care® – ECTA
environmental and social charters, principles
- Green Freight Europe
or other initiatives to which the organization
- Lean and Green – Connekt
subscribes or which it endorses G4-16
Memberships of associations (such as
No omissions
No
- TLN - ECTA
industry associations) and national or international advocacy organizations in which the organization: 1. holds a position on the governance body 2. participates in projects or committees 3. provides substantive funding beyond routine membership dues or 4. views membership as strategic
IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES GRI CODE G4-17
DESCRIPTION
OMISSIONS
EXTERNAL ASSURANCE
REFERENCE
a. List all entities included in the organization’s
No omissions
No
About this report
No omissions
No
About this report
No omissions
No
-R eport of the Management/Sustainability
consolidated financial statement or equivalent documents. b. Report whether any entity included in the organization’s consolidated financial statements or equivalent documents is not covered by the report. The organization can report on this standard disclosure by referencing the information in publicly available consolidated financial statements or equivalent documents G4-18
a. Explain the process for defining report content and the Aspect boundaries; b. Explain how the organization has implemented the reporting principles for defining report content
G4-19
List all the material Aspects identified in the
/KPI Dashboard 2010 - 2015
process for defining reporting content.
- About this report/Materiality assessment G4-20
For each material Aspect, report the Aspect
No omissions
No
- Report of the Management/Sustainability /KPI Dashboard 2010 - 2015
boundary within the organization
- About this report/ KPI Dashboard 2010 - 2015 table G4-21
For each material aspect, report the aspect
No omissions
No
/KPI Dashboard 2010 - 2015
boundary outside the
- About this report/
organization G4-22
Effect of any restatements of information
No omissions
No
- No restatements
and the reasons for such restatements Significant changes from previous reporting periods in the scope and aspect boundaries
KPI Dashboard 2010 - 2015 table - About this report/ KPI Dashboard 2010 - 2015 table
provided in previous reports G4-23
- Report of the Management/Sustainability
No omissions
No
- About this report/ KPI Dashboard 2010 - 2015 table - No significant changes
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STAKEHOLDER ENGAGEMENT GRI CODE G4-24
DESCRIPTION
OMISSIONS
EXTERNAL ASSURANCE
REFERENCE
List of stakeholder groups engaged by the
No omissions
No
About Vos Logistics/Stakeholder
No omissions
No
No omissions
No
engagement
organization G4-25
Basis for identification and selection of
engagement
stakeholders with whom to engage G4-26
Organization’s approach to stakeholder
About Vos Logistics/Stakeholder About Vos Logistics/Stakeholder engagement
engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process G4-20
No omissions
No
Key topics and concerns that have been raised No omissions
No
For each material aspect, report the aspect
- About this report/Materiality assessment
boundary within the organization G4-27
-A bout Vos Logistics/Stakeholder engagement -A bout Vos Logistics/Stakeholder engagement - About this report/Materiality assessment
through stakeholder engagement and how the organization has responded to those key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns
REPORT FILE GRI CODE G4-28
DESCRIPTION
OMISSIONS
EXTERNAL ASSURANCE
REFERENCE
Reporting period (e.g. fiscal/calendar year) for
No omissions
No
- About this report
No
06-05-2014
- 1 January 2014 – 31 December 2014
information provided G4-29
Date of most recent previous report (if any)
No omissions
G4-30
Reporting cycle
No omissions
No
Yearly
G4-31
Contact point for questions regarding the report No omissions
No
[email protected]
No
- About this report
or its contents G4-32
a. Report the ‘in accordance’ option the
No omissions
- Assurance report
organization has chosen b. Report the GRI Content Index for the chosen option c. Report the reference to the External Assurance Report, if the report has been externally assured. GRI recommends the use of external assurance but it is not a requirement to be ‘in accordance’ with the Guidelines G4-33
a. The organization’s policy and current practice No omissions with regard to seeking external assurance for the report. b. If not included in the assurance report accompanying the sustainability report, report the scope and basis of any external assurance provided. c. The relationship between the organization and the assurance providers d. Report whether the highest governance body or senior executives are involved in seeking assurance for the organization’s
84
sustainability report
No
- About this report
GOVERNANCE GRI CODE G4-34
DESCRIPTION
OMISSIONS
EXTERNAL ASSURANCE
REFERENCE
Governance structure of the organization,
No omissions
No
-R eport of the Management/
including committees of the
Governance/Composition of the
highest governance body. Identify any
Group’s Management -R eport of the Management/
committees responsible for decision making on economic, environmental and social
Governance/Organization of
impacts
sustainability
ETHICS AND INTEGRITY GRI CODE G4-56
DESCRIPTION
OMISSIONS
EXTERNAL ASSURANCE
REFERENCE
Organization’s values, principles, standards
No omissions
No
-R eport of the Management/ Governance/Code of conduct
and norms of behavior such as codes of conduct and codes of ethics
MATERIAL ASPECTS DESCRIPTION, DMA AND INDICATORS
OMISSIONS
EXTERNAL ASSURANCE
REFERENCE
No omissions
Yes
- KPI Dashboard
Occupational Health and
Lost Time Injury Rate
Safety
(LTIR), Fatalities,
- About this report/Materiality assessment
Sickness Absence
- Report of the Management/
(DMA-G4-LA4)
Sustainability/Safety - Report of the Management/ Sustainability/Staff
Training and education
Average hours of training
Gender
No
per year per employee
- Report of the Management/
(G4-LA9) Economic performance
Profit and loss account
- About this report/Materiality assessment Sustainability/Staff
No omissions
Yes
(DMA-G4-EC1)
- Key figures and ratios - About this report/Materiality assessment - Report of the board of management / Business review
Customer Health and
Average customer
safety
satisfaction
- About this report/Materiality assessment
(DMA-G4-PR5)
- Report of the board of management /
No omissions
Yes
- KPI dashboard
Sustainability / Customers Environmental emissions
Kg CO2 per ton/km
No omissions
Yes
- KPI Dashboard
Kg CO2 per m2
- About this report/Materiality assessment
(DMA-G4-EN15 + DMA-
- Report of the Management/
G4-EN19)
Sustainability/Technology - Report of the Management/ Sustainability/Premises
Average euro standard
Multimodal solutions
No specific GRI aspect
No omissions
Yes
- KPI Dashboard
available but considered
- About this report/Materiality assessment
material within
- Report of the Management/
Vos Logistics
Sustainability/Technology
No specific GRI aspect
No omissions
Yes
- KPI Dashboard
available but considered
- About this report/Materiality assessment
material within
- Report of the Management/
Vos Logistics
Sustainability/Operations
85
GLOSSARY
AEO - Authorized Economic Operator A certificate issued by the Customs authorities to internationally active businesses that satisfy set safety criteria. An AEO certificate reduces delays at borders as checks are less stringent
EFTCO - The European Federation of Tank Cleaning Organizations EFTCO studies, protects and develops the professional interests of the federation and its members
BREEAM - Building Research Establishment Environmental Assessment Method A method to assess the sustainability performance of buildings
Fatality A work-related injury resulting in the death of an employee, even if death did not occur immediately
BU – Business Unit Subsidiary of Vos Logistics
Fleet Average The average euro standard of the truck fleet FTL - Full Truck Load
ECTA - European Chemical Transport Association ECTA is an association of European land transport companies. Its aim is to improve efficiency, safety and quality standards and reduce the environmental and social impact of the transport and logistics of chemical goods in Europe EEV – enhanced-environmentally-friendlyvehicle A classification of European emission standards. An EEV is a vehicle between euro 5 and euro 6
FTE – Full-time equivalent A unit to express the size of the workforce or number of employees GCT - Green Care Transport The GCT program is designed to manage transport more sustainable; the primary goal is to reduce CO2 emissions GDP - Good Distribution Practice Quality assurance system with standards on the purchase, receipt and export of human medication GMP - Good Manufacturing Practices GMP+ is a scheme for assuring food safety in all the links in the food chain
86
ISO - International Standards Organization An international standard-setting organization. The ISO is an affiliation of national standard organizations
Multimodal Transport using more than one modality, such as rail and short-sea
KPI - Key Performance Indicator Variables used to analyze performance
RC - Responsible Care® A program based on a partnership agreement with the European Chemical Industry Council
KPI2 Fuel Management System LNG - Liquefied Natural Gas Natural gas stored as a liquid at a temperature of -162ºC LOVOS Transport Management System developed by Vos Logistics LTIR - Lost Time Injury Rate A work-related injury with one or more lost working days plus fatal accidents involving Vos Logistics staff, relative to the number of hours worked LWC - Lost Workday Case A work-related injury involving days when the employee is unable to return to work due to the injury. The day of the injury is not counted as a lost workday. Lost workdays are based on the employee’s ability to return to work, not actual attendance, and involve full workdays rather than partial workdays
SECA - Sulphur Emission Control Area Sea areas in which stricter controls were established to minimize airborne emissions Sickness absence The absenteeism rate indicates the percentage of working time that is not worked owing to sickness or incapacity to work SQAS - Safety & Quality Assessment System SQAS is a system to evaluate the quality, safety, security and environmental performance of logistics service providers and chemical distributors in a uniform manner by single standardized assessments carried out by independent assessors using a standard questionnaire
87
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Contact and information
Entered in the Trade Registry of the Brabant Chamber of Commerce under
Vos Logistics welcomes any questions, comment
number 34054561
and suggestions you might have about this report.
Vos Logistics’ Integrated Financial and Sustainability Review presents the
Mail to:
[email protected]
company’s financial and sustainability performance and customer appreciation
Thanks for contribution: Containerships Rotterdam B.V., Wim van de Polder SNCF Logistics, VIIA, Daniel Lebreton SNCF Logistics, AFA, Gilles Cattani
during the year in a single integrated report. Vos Logistics Vorstengrafdonk 39
© Copyright 2015, Vos Logistics
5342 LW Oss, The Netherlands
The information contained in this document is the intellectual property of
Advice, editing and coordination: Jonkergouw & van den Akker, Amsterdam Steward Redqueen, Haarlem
Vos Logistics. It has been issued in confidence and may not be reproduced in Telephone: + 31 412 699 500
whole or in part or used in tendering or manufacturing or given or communicated
E-mail:
[email protected]
to any third party without the prior written consent of Vos Logistics. This
Internet: www.voslogistics.com
document does not form or constitute a part of a contractual document, nor does its submission imply acceptance of any commercial terms. Our proposals and agreements are subject to Vos Logistics’ General Terms and Conditions.
Design & layout: The Cre8ion.lab, ‘s-Hertogenbosch
Photography: Arjo van der Graaff, Dirksland
Integrated financial and sustainability review 2014
Integrated financial and sustainability review 2014 VOS LOGISTICS BEHEER B.V.
Integrated financial and sustainability review 2014 VOS LOGISTICS BEHEER B.V.
