Team Talk The Suttons Group Magazine

IN THIS ISSUE Welcome Letter from John Sutton Think Safe Be Safe Suttons Core Principles and our Primary Purpose Suttons Outrageous Ambition Suttons Celebrates 60th Anniversary Business News Message from our Finance Director Appointments Star Awards

“...a successful but challenging year...” Dear colleagues 2013-14 has been a successful but challenging year for the Suttons Group. During the year we have retained key contracts and developed new business in the UK and abroad. But it has not all been plain sailing. We operate in a highly competitive marketplace and have had to make some difficult decisions regarding retaining some business and have reviewed our structure as a result. We will no doubt face similar challenges in the future and will continue to ensure that we are operating as efficiently and cost effectively as possible in order to retain our competitive position. In the last 12 months we have focussed on developing a winning strategy for the business. We have started communicating our plans with all of you and we have had some very valuable feedback from the sessions held across the Group. Thank you for all your open comments. There is a lot of work to be done, but I am committed to implementing our plans and leading the business towards our goal of being the world’s leading supply chain management company, rated as the best by our customers and our employees. People are the lifeblood of any business and I recognise that without you we would not have a business to grow. That is why one of my biggest priorities is continuing to increase employee engagement. This is a big undertaking and will not happen overnight, so I ask you for your support and patience. We may not get it right first time, but I am committed to achieving this and with your buy-in, I am sure we will achieve our ambitions of making Suttons one of the best companies to work for. We have started this process with an employee survey and have so far surveyed all office staff. Over the next few months we will continue this process and survey our entire depot and driver workforce to give us a full picture across the Group. From this feedback we will be able to devise plans and activities to improve engagement within the company. This year marks the 60th anniversary since my grandfather restarted the company after denationalisation in 1954. Throughout the year we will do a number of things to mark this historic event. One example that you’ll find in this issue is the branding of four new vehicles with the Union flag and our 60th anniversary logo. We will be very proud to take one of these to the annual cart marking ceremony in London later this year. Looking forward, we have a lot of work to do, retaining key customers, developing new business to continue our growth, and looking at new markets. We are also implementing two new IT systems in both the International Division and the UK Tanker division. These systems will take a lot of extra work to implement, but will give us the technology that will set us ahead of our competition in terms of the real time information we can provide to customers, and enable us to improve our efficiency. We have made some changes to the format of this company magazine and will use it to keep you briefed on developments within the company. We are always open to suggestions, so please do not hesitate to let us have your views. I look forward to the next year and working with you all. Regards

John Sutton

e f a S e B , e f a S k n Thi In 2005 Suttons Group launched the Think Safe campaign to highlight the importance of safe working practices in all of our operations. As part of the campaign we have introduced a number of new initiatives and procedures in an effort to minimise the risks to our staff and the general public. We now feel it is time to update the ‘Think Safe’ brand and re-launch the initiative under the name Think Safe Be Safe. To support the launch we held a competition open to relatives of Suttons’ employees aged between six and 14 to design a Think Safe Be Safe logo. The only instructions given were to be creative and design something that conveys the importance

RUNNER UP - Jamie Goulding age 14 and Matthew Goulding age 10

Holly Lawson age 9

Libby Clegg age 9

Suttons places on safety and safe working practices. We had a fantastic response to the competition and the standard of entries was extremely high. It was therefore very difficult to choose a winner and we would like to thank everyone for taking the time to enter. We are very pleased to announce that, following a comprehensive judging process, the winner is Amelia Rowland for her logo which communicated both the importance of safety and the activities of our business very clearly. The runners-up were Emily Hill, Jamie and Matthew Goulding and Ryan and Kyle MacShane.

RUNNER UP Emily Hill age 11

Emily Jones age 13

Jack Baxter age 10

Matthew Osborn age 11

Gemma Eager age 10

Jacob Baldwin age 9

Milly Clegg age 8

Amelia Rowland age 13 - WINNER

Grace Morris age 7

Jordi Richter age 14

Molley Hayes age 8

Liam Wood age 12

Noah Jones age 7 Emilie Jones age 13

Cameron Hamilton age 10

Ryan McShane age 12 and Kyle McShane age 10

Scarlett Leighton age 8

Scarlett Leighton age 8

Zara Holmes age 6

Suttons core principles and our primary purpose Over the last 60 years, Suttons has developed into a strong business with a very positive reputation within our chosen markets. During that time we have constantly made changes to how we operate and which markets to target, always adapting and never taking our success for granted. In 2014 the company began a new chapter. We have set ourselves challenging targets to achieve over the coming years and I am well aware that to achieve these targets we need the commitment and dedication of us all. Wherever we work and whatever our role within the Group, we are all responsible for the company’s success and can all contribute to achieving our targets. To support the Group’s ambitions, we have developed a primary purpose which defines why we exist as a business and reflects the impact the company has, other than to create jobs and profit. We have also developed a series of core principles which describe the ways we need to behave and I think encapsulate the best attributes from within the company. Understanding our primary purpose and living these principles on a daily basis will help us all to develop into a cohesive team which will put us ahead of our competition. With your commitment, I am confident we will achieve our targets, uphold the principles and make Suttons an exciting, rewarding and successful place to work. Thank you for your commitment.

John Sutton

Suttons outrageous ambition: By 2030 Suttons will be the leader in global supply chain management, rated as the best by our people and our customers.

Our primary purpose:

Delivering life’s essentials safely Suttons’ primary purpose is the reason we exist as a business. We deliver a diverse range of products throughout the world which are used in thousands of different items consumed by millions every day. These products are all around us and are critical to daily life, from the petrol and air conditioning in our cars, to the food we eat and drink and everything in-between. Putting this simply, we are delivering life’s essentials safely.

Our core principles:

• Creating value for customers and ourselves • Driving efficiencies through innovation, relationships and partnership

• Being open, honest and fair • Offering support and constructive feedback • Honouring commitments and promises

• Supporting each other and loyal to each other • Sharing common goals and acting with the big picture in mind • Celebrating and rewarding success

• Exceeding expectations with energy and pace • Finding ways to be more effective, efficient and innovative • Thinking ahead, adapting and changing

• Being rigorous, responsible and accountable • Being proactive and seeking solutions • Recognising opportunities, not obstacles

Suttons celebrates April 4th this year marked Suttons Transport Group’s 60th anniversary.

In 1954 Suttons founder Alf Sutton created Sutton and Son (St Helens) Ltd with 18 vehicles and 58 staff following the denationalisation of the long-distance haulage sector. We now employ more than 800 people across five continents, operate the UK’s largest shared user chemical road transport network, won countless awards for our safety and service performance and have a large and diverse international fleet of tank containers providing customers with a wide range of transport, logistics and supply chain solutions. We continue to be a commercial success and are still focussed on the development of our chosen markets, always looking for new and innovative ways to improve and grow. In the 1950s, prior to nationalisation, the

company was known as A.B. Sutton and Sons and had a strong reputation for reliability and innovation. De-nationalisation, together with a rapidly expanding road network and burgeoning motorway system, provided the company with the freedom to truly push technology and provide customers with alternative solutions. One example of Alf’s ingenuity was adapting his six wheeler fleet to be able to carry four tonnes more payload by adding a trailer in a system which became known as wagon and drag. The system gave Suttons a legal payload of 22 tonnes which was substantially more than the competition. Alf’s resourceful and innovative approach to operations laid the foundations for the modern day transport and logistics sector. Without pushing the boundaries of what was possible, it would never have developed into the multi-faceted, fast, and reliable service we have now come

to expect. Alf, together with other key members of his team and other pioneering and entrepreneurial operators in the sector, played a very large part in that development. As the decades came and went, Suttons grew consistently, always staying one step ahead of the competition and always looking for new and emerging markets and trends to capitalise on. One such emerging market was the use of ISO tank containers to transport chemicals. There are currently over 350,000 tank containers around the world transporting countless liquids and gases. But in the late 1960s there was only a handful and Suttons was at the forefront of their development. One such invention was heating systems on ISO tanks and in the early 1970s Suttons was the first company to develop this technology. We designed and built our own systems for heat sensitive products, further broadening the range of materials we could

US office cake!

Our USA offic the 60th a e celebrating nniversary

Suttons Malaysia office celebr with a specially baked Suttons ating cake IT Director Rob Sutton, retired Secretary Imelda Birkett, Insurance Officer Elaine Burrows, Chairman Michael Sutton and Phil Ryan, Property & Electrical Engineer enjoying 60th celebrations at head office

Suttons Antwerp gather to celebrate Suttons 60th anniversa ry

Suttons Singapore office all wearing red for their 60th celebrations

Suttons Engineering Department

s 60th anniversary carry. In 1978, Alf Sutton’s son Michael became Managing Director of Suttons and took the company from strength to strength. Always keeping a close eye on market developments, Suttons opened a number of international offices in strategic locations to support the growing popularity of tank containers. This included our office in New Jersey which is now supported by two other offices in North America in Houston and Chicago. During the 80s and 90s Suttons grew considerably, both domestically and internationally, staying at the forefront of technology and making sure the company had the equipment and people needed to satisfy an ever growing list of customers. In the last 10 years the company has grown substantially. We opened our first Chinese office in Shanghai in 1997, today it is supported by four other sales offices in the country and a large tank container depot

that provides cleaning and maintenance services. Most recently we acquired a transport company in Shanghai allowing us to operate our own trucks in the country. In 2012 we formed a joint venture in Saudi Arabia and are delivering both domestic and international transport in the region. In South East Asia we now operate offices in Singapore and Malaysia and we have seen huge growth in these areas. In Europe the business has also enjoyed success, we opened a large office in Antwerp in 2011 and have diversified operations in UK tankers to now provide a wider range of logistics solutions for chemical, gas, food and fuel products. John Sutton, grandson of founder Alf Sutton and son of Michael Sutton is now CEO and in charge of the day to day running of the business. He has worked for the company since leaving university and has held a number of positions within the Group. With

Going International - A Suttons ISO tank in the USA in the 90s

big ambitions for the future of Suttons, which includes organic growth in some areas and substantial investment in others, John has built a team that puts Suttons at the forefront of logistics and supply chain development. Suttons has enjoyed many successes in the last 60 years and looks well placed to capitalise on the opportunities it has identified across the world. It is one of the largest private and truly family owned companies in the UK and retains the values that helped it get to where it is today. Suttons is proud of its past and excited about its future. Please join us in celebrating this important milestone in a unique and accomplished history of one of the UK’s most successful transport companies.

the road Suttons vehicle on in the late 80s

Suttons tod ay - a mode rn ISO tank and truck in Saudi A rabia

An early model ISO tank conta iner being lifted onto a S uttons vehicle

Suttons spe cia celebration l union flag livery in of our 60th anniversary

BusinessNews Suttons awarded integrated logistics contract from Bayer Materialscience (China) Suttons has been awarded an integrated logistics services contract from Bayer MATERIALSCIENCE (China), to provide a wide range of traditional and value added bulk chemical logistics and supply chain services. Suttons has invested heavily in recent years as it develops its business to offer more value added services and provide customers with a competitive advantage, through supply chain resilience and efficiency. Anthony Latham, Suttons Regional Director North Asia said: “This contract is a significant win for Suttons. It’s pleasing to know that our multi-service offering and dedicated account management approach is recognised by a customer of Bayer’s stature and a deciding factor in us winning this contract.”

Suttons Arabia launches new website We are very excited to announce the launch of our new website suttonsarabia.com after almost six months of development. The site is focussed on the activities of our joint venture company in Saudi Arabia which has been a great success since beginning operations in 2012. The new website is designed to be a fast and easy way for visitors to navigate the wide variety of services Suttons Arabia currently provides. The site will be updated on a regular basis with news, product launches and new content, so please keep visiting the website for latest developments!

Suttons USA obtains domestic transport licence Suttons USA, headquartered in New Jersey, has obtained its domestic transport licence. The licence allows us to manage domestic transport on behalf of Suttons USA customers and take a leading role in developing bespoke transport solutions for our customers within the USA. Every customer requirement is different and this licence gives us the ability to design and implement value added services with us in control, to fully utilise the suppliers we have and provide a more efficient and dependable service to our customers. Greg O’Shea, Suttons USA Regional Director said: “The licence is an excellent opportunity for Suttons to demonstrate to our customers that we are more than a tank container operator. We are now able to take ownership of our domestic transport needs and through our knowledge of customers flows and volumes and synergies with our multimodal suppliers, we can tailor a solution to deliver the most efficient and reliable service to our customers, releasing value and increasing their profitability.”

Suttons drives home Chinese acquisition Suttons has acquired Chinese transport company Han Chi Logistics Co. Ltd as it further develops its operational footprint in China and increases the range of services it can offer its customers in the region. The deal is part of an ongoing expansion for Suttons in China, as the company continues to build infrastructure on the ground increasing its customer’s competitiveness through a greater choice of logistics solutions. Graeme Rooney, Suttons International managing director said: “The acquisition is an important development for the business and forms part of our growth strategy in China. It enables us to offer a wider range of services to customers whilst ensuring that we continue to provide the highest levels of SHEQ and customer service standards.”

British Sugar presents Suttons with contractor safety award Health and Safety is of paramount importance to British Sugar and the company presents one of their contractors with a safety award each year to recognise contractor safety performance and how the contractor has made positive steps to improve safety for its staff, contractors and the general public. The Suttons team working with British Sugar has an impressive safety record. This has been achieved through the hard work and professionalism of the drivers, coupled with safety culture improvements driven by British Sugar and Suttons management teams working together in partnership. Gary Piper, Suttons Distribution Manager in charge of all of Sutton’s operations on the contract said: “Suttons is extremely proud to receive this award. Our focus on the highest standards of safety runs through our entire organisation and it is fantastic to have been recognised by British Sugar.”

BP Acetyls Safety Awards

Far left - Stuart Greenhill, BP, 3rd from Left - Martin Robinson, BP, far right - Alistair Greenwood, 2nd from right, Jonathan Garlick, BP, 3rd from right - David Rickard BP Acetyls held a driver safety award and dinner on 17th March to recognise and congratulate those UK and European drivers who raised the best Near Misses in 2013. Attended by Martin Robinson, BP’s Vice President of Western Hemisphere, the drivers were praised for showing “quality, positive safety behaviours, the courage to say stop, ensuring defects are rectified before carrying on with any duties, and doing the right thing.” BP continue to play a significant role in championing Suttons focus on the removal of unsafe conditions before someone is injured, and our thanks go to the following Hull Depot drivers who received recognition at the event for their continued vigilance: Alan Russell - Whilst carrying out pre-delivery checks, Alan noticed he could not get a good earth on the site earthing point. Site staff were informed and rectified the defect before unload started. Alistair Greenwood - Driver noticed that once loading was completed the loading arm remained full of product. He observed that the drain valve was corroded and the concrete floor area in the gantry showed signs of corrosion due to leakage. This was reported and repaired immediately. David Rickard - Driver noticed a spill of glycerine next to the off-loading point. Concerned this may be a slip hazard to others the driver informed the site immediately and the spillage was cleaned.

Why safety ranks high on the Group finance director’s list of priorities When I wake up in the morning, safety is very high on the list of things that I think about, which may come as a surprise to many people. My concern is driven by a number of factors. 1.

Despite rumours to the contrary accountants do feel emotion, so I am naturally concerned to avoid injury to colleagues throughout the business. My father was killed in an industrial accident when I was seven years old, leaving my mother with four children aged between seven and two to bring up on her own, so I have first-hand experience of the trauma and pain that avoidable accidents can bring.

2.

As a Director of all Group companies I have a legal duty to ensure that the businesses operate safe working practices. All Directors carry equal responsibility, even the Finance Director.

3. Every accident has a financial impact on the business through lost time,

Keith Broom, Suttons Group Finance Director.



4.

repairs to damaged equipment, insurance claims and increased premiums, so my concern does have a professional aspect to it. The Group pays insurance premiums to external insurers to cover employee and public liability, which are a legal requirement. We also have to cover catastrophic losses from vehicle accidents and ISO tank movements. However liability for the vast majority of motor claims is below our insurance for excess so they impact directly on our profits. The cost of uninsured damage runs at around £0.5m per year, so if we have less accidents, there is a huge prize in terms of cash available for investment back into the business. Major incidents risk the reputation of the Suttons name. Our focus on safety and our good record are valuable to us in the market. Our good name is something we should all protect.

5. Investigating and dealing with the consequences of incidents takes more time than taking action to avoid them in the first place. If we minimise safety issues we can all focus our efforts on developing the business. For all of these reasons I am keen to encourage and support expenditure on training and equipment to improve safety and reduce accidents. I am also keen to invest my time in promoting the Group’s safety culture through involvement in briefings, safety conversations and taking part in our regular “safety weeks”. Safety is something that everyone in the business should think about every day. It needs to be a way of life for us all. If we avoid accidents we avoid injury to ourselves and members of the public. We build on our good reputation and we avoid cost to the business. It’s a win-win for everyone involved so make it your priority. I know it’s mine.

Luc Laurijssens Luc is the new general manager Europe within International and is based in Antwerp. Luc is a contract logistics professional and is responsible for our sales and operations in mainland Europe with a particular focus on building our presence in the Benelux.

Halime Civcar Halime Civcar is managing the administration and compliance team for UK Road Tankers. Halime is also heading up engineering for our chemicals and fuels businesses. Halime is a highly experienced engineering professional with specialist sector knowledge and will play a vital role as we develop our products and services in the UK.

Mike Ellis Joining Suttons Road Tankers is Mike Ellis. Mike will take up the newly created role of business unit director, contract logistics. Mike will be responsible for developing relationships with new and existing customers. He will work with them to provide expertise and solutions across the wider supply chain, identify and release value, improve efficiencies and maintain Suttons high levels of customer service. Mike brings significant experience to this role gained through many years working at a senior level in a number of different sectors. Mike’s knowledge and understanding of customer requirements will add significant strength to the UK team as it continues to focus on creating value and competitive advantage for our customers. Gavin Taylor Gavin is the new UK operations manager within International and is based in Widnes. Gavin re-joins the business having previously been an operator and is responsible for all operations and customer service in the UK.

Nick Wadey Nick Wadey has been appointed as business unit director, network chemicals in another newly created role within Suttons Road Tankers. The appointment adds large scale blue chip logistics leadership and global supply chain management experience to Suttons as we continue to invest in strengthening our team in the UK. Nick’s position will centre around chemical logistics and supply chain services and will focus on creating real collaborative working platforms and value sharing with customers, suppliers and other parties operating in the chemicals sector. Nick’s appointment reinforces our intent to grow the business through expanding our value added proposition to new and existing customers. Chrisi Lloyd Roberts Joining Suttons as Group procurement manger, Chrisi is responsible for developing and implementing a Group wide procurement strategy focused on delivering cost reductions, supplier rationalisation, service delivery improvements, process efficiencies, risk mitigation and standardisation. Chrisi will be working with senior stakeholders to target key initiatives, provide commercial expertise and influence best procurement practices in line with the Group strategy.

Jodie Hartley Jodie Hartley joins Suttons as transport manager for the British Sugar contract. Jodie has many years logistics and supply chain experience and has worked in the telecoms, food and gases sectors. Most recently, Jodie worked for Linde in Brazil where she played a pivotal role in coaching and supporting her local colleagues in cultural, systematic and operational changes. Her achievements saw her nominated for a global transformation performance award in 2013 by the Linde board of South America.

Chris Van Ginkel Joining us for a second time, Chris takes up the role of sales manager France and Benelux based in Antwerp. Chris returns to Belgium having lived in Montreal for two years. Her international experience and customer focus will make her a great asset to an already strong team.

SUTTONS STAR AWARDS We are delighted to announce the following staff as our first ‘Star Award’ winners. Muhammed Al Somali – Suttons Arabia Playing a key role in a large, new contract implementation. Dave Ashton – SHEQ Excellent design and delivery of a customer training programme. Michael Morrison / Gordon Eichstadt – Roger Gate – Gretna Depot For exceeding customer expectations on contract delivery. Nicola Roberts – Purchasing For outstanding effort in ensuring our internal systems were fully updated within tight deadlines. Hannah Ford – SHEQ For her hard work and determination in helping us to achieve ISO 14001 Environmental Accreditation.

Lee Aik Siong – Malaysia Office For playing a key role in securing the award for ‘Best Logistics Provider’ from BASF. Graeme Baldwin - Transport Office For covering the Traffic Office and even cancelling annual leave to ensure that the planning was dealt with effectively with no disruption for customers. Ian Burrows - Engineering For his excellent work supporting Lynne Hughes with the FMC contract. FMC’s procurement manager also praised Ian’s professionalism and knowledge. Sue Lambert - British Sugar Following the recent strategy roll out, Sue spotted the company e-mail signature had not been updated in line with the strategy. By doing this, Sue demonstrated the kind of input the company is looking for in engaged employees.

Congratulations to all our winners. We are keen to recognise all our employees who achieve great things for the company so please keep your nominations coming.

Suttons driver successfully completes Brighton Marathon Suttons driver Tony Gochmanski who is based at our Purfleet depot, recently completed the Brighton Marathon in an extremely impressive personal best time of 4:29:07. Tony was running the marathon in aid of the Bedford and District Cerebral Palsy Society and in memory of Iona, a family friend who was born prematurely with severe quadriplegic cerebral palsy. Sadly, Iona lost her fight for life in June 2013 aged 12. Tony said: “She was always very brave and strong and touched the lives of everybody that she

met. The charity that I am fundraising for was a great support to Iona and her parents and continues to help other families and rely on donations to carry on their fantastic work.” To show your support for Tony and the Bedford and District Cerebral Palsy Society, you can text £5 from your mobile by texting IONA47 to 70070. You’ll be charged £5 plus one message at your standard network rate. Alternatively please go to Tony’s just Giving page http://www.justgiving. com/Tony-Gochmanski

Suttons engineering team continue safety focus A good safety culture can only be achieved where all staff accept they have a role to play. It requires people to take responsibility for their own safety and the safety of their colleagues. Recently, Craig Wilkinson and Ste Lally, fitters at our Widnes depot, supported by his colleagues from the engineering department, identified a potential area for improvement. Electrical tools are in frequent use in the workshop and although the likelihood of a safety

incident occurring is low, the potential severity could be serious. They suggested installation of a defibrillator and a number of team members volunteered to be trained to use it. Defibrillators are often life savers and are used on patients in cardiac arrest and can keep a person alive while waiting for an ambulance.

and training of 12 staff in February this year. Craig and Ste’s initiative, together with his colleague’s support and the willingness of the team to take responsibility for the safety of others, is an excellent example of how the safety culture at Suttons continues to develop. Congratulations to everybody involved.

The company supported the suggestion and provided funding for the equipment

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