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ewals.com
Ewals Cargo CareHighlights 2018
3 Facts & figures 20184 Company profile5 Next Generation Logistics6 Key figures7 Developments & highlights8 Report of the Board of Directors
Table of Contents
In
teractive
P D F
Facts & figures 2018
Taxation increased to
3.309 EUR million2017 1.457 EUR million
International goods transported75% Multimodal25% Road
25% 75%
Net profit margin
1.0%
Result before tax
9.436EUR million
4,000Loads per day50% Own assets50% Subcontracted
Net result went up to
6.127EUR million2017 5.561 EUR million
Net turnoverincreased by
4.6% to EUR 625.4 million
Solvency ratio25.0%
1,350 Trucks 800 Subcontractor tractor units 550 Own tractor units
3,700Trailers 1,400 Mega Huckepack XL trailers2,300 Mega Huckepack XLS trailers
2,415Employees
Office 1,085
Drivers 988
Warehouse 342
17Countries
36Locations
Ewals Cargo Care Highlights 2018 3
table of contents
Multimodal transport networkEvery day, Ewals Cargo Care strives to meet the highest standards in transport and logistics; creating value by combining intelligent logistics products with an asset reliable multimodal transport network, optimising use and combination of modalities: road, rail and short-sea.
InnovationInnovation through co-creation is part of Ewals Cargo Care’s DNA. The standard was set with the introduction of the Mega trailer into the European transport market in 1990. This has been followed by the development of the multimodal Mega Huckepack and more recently by the Mega Huckepack XLS trailer. Working on continuous improvement, Ewals Cargo Care challenges current formats and strives to push the industry forward.
Ewals Cargo Care further invests in ICT developments such as the planning application COR (cost optimal routing). COR enables us to use algorithms to calculate the cost-optimal route to ship the goods of our customers. As a result, transports are being planned more efficiently and cost savings are realised.
International playerIn a rapidly changing environment, Ewals Cargo Care has proven itself to be a sustainable and established logistics player. Ewals Cargo Care transported its first load over 100 years ago and today has become a lead logistics provider operating more than 3,600 Mega Huckepack trailers across Europe. This own capacity in combination with a strong partner network enables Ewals Cargo Care to meet its customers’ demands in a flexible and reliable manner. Full loads or part loads, business as usual or unique project-based requests, within or outside of Europe, Control Tower set-ups and Value Added Logistics; by combining multiple products of its portfolio, Ewals Cargo Care provides solutions that enable the development and optimisation of supply chains.
Company profile
Ewals Cargo Care Highlights 2018 4
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Ewals Cargo Care Highlights 2018 5
table of contents
Our ambition is to be a Next Generation Logistics company. We focus on four
programs in which we keep challenging ourselves to embrace new developments
and opportunities.
Products to deliver. At Ewals Cargo Care, understanding the market and
answering the needs of our customers is key. We design fitting solutions based on
our product portfolio. Our down-to-earth mentality, yet entrepreneurial mind-set for
continuous innovation through co-creation characterises us. We are a frontrunner
and aim to stay one.
Professionals to lead. To realise this, Ewals Cargo Care, acknowledges the
importance of having a strong, competent and happy workforce. We actively
invest in the development of our people, both on and off the road. A wide range
of training opportunities are offered within the Ewals Academy; an e-learning
platform, Young Potential Program & Driver Training Program, management and
leadership courses and various other training sessions to strengthen our employee
community.
Communities to build. In general, building communities, with our customers and
partners, but also with our employees and remaining stakeholders, is of great
importance to our company. We invest in our business relationships and even
go the extra mile by creating platforms that bring stakeholders together. We’re
confident these platforms generate mutual understanding, creativity, synergies,
learning experiences, benefitting us all.
Business systems to perform. To support all of this, adequate business systems
are required. Ewals Cargo Care has a solid ICT base and a continuous flow of
ICT developments and investments, not only to secure effective operations but
to deliver ICT value to customers as well. We are a modern company embracing
technology, partnering up to innovate through co-creation.
Next Generation Logistics
Ewals Cargo Care Highligts 2018 6
table of contents
Result (in thousands of euros)
Net turnover
Added value*)
Added value as % of net turnover
EBITDA
Operating result (EBIT)
Net result
Net result as % of net turnover
Cash flow from operating activities
Balance sheet (in thousands of euros)
Balance sheet total
Group equity
Return on equity in %**)
Solvency ratio in %***)
Tangible fixed assets
Investments
Human resources
Number of employees (FTE)
of which in the Netherlands
*) Total operating income minus forwarding and transportation costs
**) Net result / group equity at the beginning of the year
***) Group equity / balance sheet total
2016
610,082
105,943
17.4
12,952
9,177
6,522
1.07
8,032
2016
138,704
34,676
18.5
25.0
9,341
4,660
2016
2,164
321
2018
625,375116,148
18.614,236
9,6756,127
1.016,624
2018
164,04940,993
16.125.0
16,7739,769
2018
2,415326
2015
607,856
95,552
15.7
9,675
6,300
4,506
0.74
7,049
2015
142,039
35,314
13.9
24.9
8,669
4,133
2015
1,852
318
2014
547,810
92,575
16.9
13,285
9,740
7,722
1.41
13,580
2014
129,260
32,315
25.8
25.0
8,008
3,540
2014
1,707
313
Key figures2017
597,696
110,893
18.6
12,111
7,948
5,561
0.9
2,096
2017
161,436
38,126
16.0
23.6
13,378
9,136
2017
2,308
310
Source: Ewals Cargo Care Annual Report 2018
Experience awardsEwals Cargo Care won both the award for employee experience in the category ‘Transport and Logistics’ and the new award ‘getting the best out of your customers and employees’ of our survey partner Integron.
We would like to thank both customers and employees for sharing their valuable feedback with us. Let’s further improve our cooperation together!
Annual eventsMore than 200 customers, subcontractors and sales representatives were welcomed at our annual events in September to meet with peers and to discuss trending topics, challenges in transportation and the changing market situation.
Our Next Generation Logistics program was on the agenda during the events. Throughout the week CO2 reduction in transport was discussed by several speakers.
Jumbo Road Train XLS The new Jumbo Road Train XLS - our latest innovation in terms of equipment - is currently unique in Europe.
The jumbo truck combines the advantages of two systems (Jumbo Road Train and XLS system) and is operated from our organisation in Kiefersfelden.
Blind spot demonstration Together with an organisation committed to road safety we organised several demonstrations at primary schools.
An experienced Ewals Cargo Care driver gave children insight in the danger of the truck driver’s dead angle. They could sit in the driver’s seat to see for themselves how little a driver can see in the blind spot.
JunLaunch of new rail connection German operator DB Cargo Logistics launched a new rail connection which links the terminal of Saarbrücken with the terminal of Perpignan.
DB Schenker never had a train solution involving Mega trailers on pocket wagons before and found a perfect partner in Ewals Cargo Care, due to the large fleet of cranable Mega Huckepack Trailers and a strong presence on the Iberian peninsula.
Developments Highlights
AugMayApr
Sep Nov
Expanding locally We believe in the strength of local knowledge and expertise when working together with our customers and partners.This is represented by our recently opened offices.
In Porto (PT) we are developing the corridor to Rotterdam, further unlocking the domestic Iberian (FTL and LTL) market and attracting local trucking partners. Such partnering is also the main activity of our location in Klaipéda (LT). The office in Immingham (UK) further develops our LTL network from and to the UK and supports in servicing the Irish market.
Ewals Cargo Care Highligts 2018 7
table of contents
Information of the Board ofDirectors
GeneralNet turnover increased by EUR 27.7 million (4.6%) to EUR 625.4
million and our operating result went up from EUR 7.948 million in 2017
to EUR 9.675 million in 2018. The increase of net turnover was driven
by higher volumes at our existing customers in the automotive industry
and within our new offices. The higher automotive related net turnover
resulted in a lower profitability due to higher costs (for drivers and extra
capacity), which could only partly be compensated by higher sales
prices. Our freight management activities reported lower volumes and
margins during 2018, mainly as a result of the loss of a large customer
and disappointing margins.
The results of our freight forwarding offices were very satisfying during
2018. Net turnover and margin ended higher than in 2017, mainly as
a result of the positive macroeconomic developments and the higher
demand for capacity. The only disappointment was the development of
the (“new”) freight forwarding offices in Budapest (Hungary) and Zagreb
(Croatia). The results of these offices ended lower than expected.
The result of 2018 was negatively affected by higher costs for drivers
and subcontractors. Since the 2017 result included the non-recurring
costs for the closing of the warehouse in Genk we were still able to
close the year with a higher result compared to last year. Our net result
went up from EUR 5.561 million in 2017 to EUR 6.127 million in 2018.
Organisation and employeesIn 2018 we were again able to extend our network of offices. We started
new offices in Klaipeda (Lithuania), focussing on trucking planning
and capacity, and Immingham (United Kingdom) related to cross-
docking activities for Less than Full Truckload shipments. In Cologne
(Germany) a new office was opened which focusses on automotive
express transports.
The average number of employees on the payroll increased from
2,308 in 2017 to 2,415. Ewals also employs a substantial number of
temporary workers, mainly for its warehousing operations. During the
year 2018 the total number of staff increased with 107, mainly due to
a further growth of our trucking organisation and an increase of our
staff within the new offices. We expect a further growth of our trucking
organisation in the future. The most important factor in the pace of this
growth is the availability of drivers.
The world around us is changing fast. We observe many technical
& technological developments; such as self-driving vehicles, data
connectivity & artificial intelligence. With this, we see new companies
joining the logistics industry. This is a good development, because
the more active we are as an industry, the more we are driven by
opportunities and ultimately this will bring us further.
Ewals Cargo Care sees new trends and developments following each
other rapidly, changing the environment in which we live and work. For
us as a company, it means that we have to adjust to a new reality.
Rather than just accepting a new situation, we want to take the lead;
take initiative and discover new territories, be a front runner in our
industry. In that perspective, we have introduced the ‘Next Generation
Logistics’ program, in which we keep challenging ourselves to embrace
new developments and opportunities.
It is a program which is used to focus on our initiatives & investments.
Next Generation Logistics is based on:
Products to deliver Selecting and developing existing and new products,
markets and technologies for future differentiation and
customer value creation.
Professionals to lead Investment in a business building attitude, training programs
and leadership skills, and cultivating a workplace where our
employees can get the best out of themselves.
Communities to build Strengthening existing relations, internal and external,
and creating new partnerships to keep on building business
and to stimulate innovations.
Business systems to perform Operational collaboration between our offices and with our
partners. Improving business intelligence and a “first time
right” attitude.
As a company we are taking many initiatives and all our employees are
involved or influenced by this program. We see that a new generation
of logistics is stepping up in our industry, and we at Ewals are part of
this next generation!
Ewals academyOur employees are given access to regular trainings. In 2018 we further
invested in driver training facilities. The training for drivers consists of
manuals and video’s, live and e-learning training sessions and mentor
drivers that accompany new drivers. For further deployment of the
driver training, our train the trainer program transferred knowledge to
our external trucking partners. In 2018, particular emphasis has been
put on developing our “follow-up” on driver (-company) quality with a
Mobile Quality Team and subcontractor auditing. With such training
and follow-up we constantly try to improve the quality of the services to
our customers.
We continue to provide Management and Leadership trainings and
courses for all our staff. With such trainings the range and depth
of courses available to staff has continued to grow, with a mix of
classroom trainings and e-learning courses being offered, dependent
on the subjects being taught.
With an emphasis on developing own internal talent, Ewals continued
in 2018 with its Basic Dispatchers Training which will further enhance
the onboarding, training and education of our (operational) staff by
focusing on commercial, operational, communicative skills and the
best use of ICT systems.
Within Ewals we further invest in having a more structured and
coordinated approach for identifying and nurturing talent and
leadership for various roles in the organization. Ultimately, our aim is to
provide employees opportunities for personal development and career
advancement and, at the same time, ensure that we have the right
skills available to continue to support our business. It will also help us
to recruit the right talented employees and to match individual career
ambitions to the organisation’s ambitions and targets.
The Ewals’ Young Potential Program gives extra attention to young
talents in the first years of their career. Ewals is convinced that it can
offer innovative and entrepreneurial employees the right opportunities.
Ewals mainly employs local employees for its activities but invests in
geographical pooling of talent for learning purposes.
In order to further professionalize the Academy, Ewals has appointed a
full time expert in education as well as an e-Learning developer to align
our learning development with the job profiles within the company.
Financial position and risksCash flowNet cash flow in the cash flow statement is defined as the difference
between the cash position (cash and cash equivalents) at the
beginning and the end of the year. In 2018 we generated a positive net
cash flow of EUR 1.237 million, which was EUR 3.183 million better
than in 2017. The cash inflow from operating activities was EUR 14.528
million higher than in 2017. The increase was primarily due to a higher
operating result and the positive change in working capital, mainly as
a result of a lower trade debtor and a higher trade creditor position as
Information of the Board of Directors
“Ewals Cargo Care is likely most known as a robust multimodal FTL provider. Nevertheless, besides products of this type, we have a wide range of other products in our portfolio. One which we started developing further throughout 2018 is our LTL product. During the coming months and years, we will continue to cultivate our partload offer by strengthening our capacity across our European offices alongside our extending partner base.”
– Bas Schoone (Responsible for LTL product development)
Ewals Cargo Care Highlights 2018 9
table of contents
Report of the Board of Directors
per closing balance sheet date. The cash flow from investing activities
was EUR 1.304 million above the level of 2017 mainly due to higher
investments in acquisition of group companies and intangible fixed
assets. The cash flow from financing activities was a net cash outflow
of EUR 9.968 million higher than the level of 2017, mainly as a result of
the lower proceeds from debts to credit institutions (compared to 2017)
and a higher dividend payment to the shareholder.
The balance of cash and debts to credit institutions in 2018 (EUR
20.974 million) stayed almost on the same level as in 2017 (EUR
20.969 million).
Investments and research & developmentIn 2018 investments amounted to EUR 9.757 million. This was mainly
spent on driver and office facilities, trailer and warehousing equipment
and ICT. The investment in driver and office facilities is related to (own)
parking and driver facilities in Venlo (the Netherlands) and Zeebrugge
(Belgium). Investments in trailer equipment mainly relate to tyres which
are used more than one fiscal year. ICT investments are mainly related
to a new (administrative) Transport Management System including
CRM.
Our organisation is dependent on optimal business processes and
strong ICT systems and solutions. These solutions focus on efficiency,
an easier way of working, communicating, and innovative / supportive
solutions for our services to our customers. ICT investments are visible
within the whole organisation.
For 2019 we expect a lower amount of investments. The expected
investments are mainly related to trailer equipment and ICT and will be
similar as in 2018. The ICT-projects that are planned for 2019 mainly
relate to our new (administrative) Transport Management System, a plan
board for our freight forwarding activities and creating a group platform.
In 2019 we will continue to replace the trailers that are end of lease for
Mega Huckepack (XLS) trailers to support our multimodal strategy.
The Mega Huckepack XLS trailer, where ‘XL’ refers to the European
standard code and ‘S’ stands for extra Strong, Safe and Secure has
become our “standard trailer”. The unique construction of the Mega
Huckepack XLS ensures that the side curtains are forced inwards to
maintain the maximum legal width of the trailer. The Mega Huckepack
XLS meets the latest market requirements in terms of load securing
and safety and has the following advantages:
• the trailer is tested and approved by the German TÜV authorities;
• the trailer is certified for cargo that tends to bulge during multimodal
transport;
• the system contains no loose parts, increasing the speed of (un)loading;
• the curtain sides are strengthened with integrated bars to minimize
the risk of cargo theft;
• the curtains can still be easily opened from the side.
It is Ewals’ ambition to introduce the XLS as the new market standard.
For 2019 we expect to further increase the number of own trucks and
trailers. The investments in trucks and trailers are not included in the
above planned investments since new trucks and trailers are financed
off balance.
Solvency, liquidity and credit riskSolvencyThe financial position at balance sheet date was sound and stable in
terms of solvency and the availability of funding through credit facilities
of our banks is more than sufficient for our business. As a result of
our investments in ICT, land and buildings and the higher net working
capital position our balance sheet total increased compared to 2017.
Given the undistributed profit of EUR 3.063 million group equity also
increased in 2018. The solvency ratio at the end of 2018 (25,0%)
increased compared to last year (2017: 23.6%). This ratio is well in
excess of the 10.0% per the agreement with BNP Paribas Factor.
The balance sheet total increased mainly due to a higher intangible
and tangible assets position compared to 2017. This is due to the
investments in ICT and driver- and parking facilities.
LiquidityLiquidity remains strong. As a result of our investments and higher working
capital we increased our current account overdraft facility at BNP Paribas
Factor the Netherlands from EUR 40.0 million to EUR 50.0 million. Ewals
managed to successfully prolong the above facility for another period
of four years as per 1 February 2019. Outstanding amounts under the
account overdraft facility will bear interest at EURIBOR plus a margin that
depends on Ewals’ solvability ratio. During 2018 we were not faced with
problems related to our available credit facilities. The facility at our bank in
the Czech Republic remained at the level of EUR 4.3 million. At the end of
2018 our bank overdraft to credit institutions amounted EUR 24.421 million
(2017: EUR 23.179 million).
Our liquidity needs are affected by seasonality and payment behavior
of our customers and factors that relate to the uncertainties of the
European economy and the industries we are in. Although our cash
requirements fluctuate based on the timing and extent of these
factors, we believe that cash generated from operations, together with
our principal sources of liquidity are sufficient to satisfy our current
requirements, including our expected capital expenditures in 2019.
At the end of 2018 the current ratio was 1.21 (2017: 1.22).
Credit riskCredit risk consists of the exposure for Ewals in relation to accounts
receivables with customers. A default can have a material adverse
effect on operating results. For this reason we closely monitor our
accounts receivables and Ewals has insured its account receivables.
With this insurance we have also improved the quality of the credit
information we have of (potential) customers. Ewals continuously
monitors the credit standing of its biggest customers. During 2018 there
has been no material write-off on receivables.
Financial targets and focusImportant financial targets of Ewals are:
• improving the profitability (result before tax / net turnover)
to a sustainable level of > 1.5%;
• improving the return on capital employed (ROCE) to > 20%
• maintaining a healthy balance sheet with a solvency ratio
of at least 25%;
• a strong cash position.
The portfolio of the individual business units and operating companies
within the group is monitored by focusing on:
• aligning the activities with the strategy of the group;
• profitability and capital employed;
• liabilities and risks linked to the business;
• future potential;
• quality of its management.
Quality, Environment, Safety and Health (QESH)Ewals Cargo Care creates customer value by offering its services from
a QESH point of view.
Ewals has grown into a sustainable continuous improvement
organisation. The responsible QESH team has defined clear
milestones, which guide the action programs around quality,
environment, safety and health. The own internal audit teams verify
the progress of continuous improvement actions and ultimately embed
quality thinking and acting within our group.
Ewals strives for efficiency, effectiveness and flexibility. Alignment
of processes and the development of uniformity throughout our
organization is a focal point. Not only by clearly describing processes
from sales through operations to invoicing, but also by aligning ISO
9001 and ISO 14001 certifications from a multisite point of view. We
see this certification as a means to improve our processes. In 2018
we have been able to implement SQAS (Safety & Quality Assessment
for Sustainability) which further helps us to align with our customers’
demands. Our non-conformity registration (NCR) system helps the
organization to further improve processes. Moreover, the company’s
driver communication gateway (DCG) is further developed and
will reduce the intensity of communication between the operations
planner and driver by linking the driver onboard unit with our transport
management system.
Transport has an impact on the environment. Ewals is well aware of
this and continuously strives to lower the impact on the environment.
We believe that smarter logistics results in a lower carbon footprint
of our organization. As an example, our duo-trailer initiative is not yet
allowed on the roads, but shows Ewals’ believe in improvements on
emission, driver dependency as well as transport costs. We, like other
“In December 2018 the RFQ module of our new ERP system went ‘technically’ live. Both the Sales & Purchase contracts module and the Financial plan will follow. The implementation of the operational processes in Italy and Germany are planned to start in 2019”
– Bart Dessent (Project Manager Proces 2020)
Ewals Cargo Care Highlights 2018 10
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Report of the Board of Directors
companies, face the challenge to have a uniform carbon footprint
calculation. Therefore Ewals has close links to market initiatives that
develop this uniformity. Besides reporting our carbon footprint of our
operations, we actively improve awareness of our employees about
sustainability. Sharing tips and tricks amongst office employees and
the eco-driving training for drivers are just two examples.
We have the strong belief that sustainable development of our
organisation goes hand in hand with a professional QESH and HRM
mindset. With the initiatives described above Ewals Cargo Care would
like to indicate that it is continuously investing in its organisation
to remain and develop as a corporate social responsible (CSR)
company. The upcoming years, Ewals Cargo Care will focus on further
professionalising its CSR policy. For this reason, we believe that this
development makes Ewals ready for Next Generation Logistics!
Code of EthicsOur Code of Ethics consolidates the fundamental principles on which
Ewals’ activities are, or should be, based. It is meant to safeguard,
stimulate and promote:
• honest and ethical conduct;
• compliance with applicable rules and regulations;
• the prompt internal reporting of violations of applicable law, this
Code of Ethics or the underlying company policies.
The Code of Whistleblowers has to be considered as an addition to the
Code of Ethics and describes how to handle in the event of any abuse
within our group and determines the legal protection of reporters of an
abuse. Each employee within the Ewals Group has the opportunity to
report suspicious circumstances. Examples of abuses to be reported
on the basis of this Code can be found in potential misappropriations,
regulatory violations, misconduct, harassment, discrimination,
safety violations, misuse of intellectual property, conflicts of interest,
workplace violence, substance abuse, and more. This Whistleblower
Policy reflects our commitment to ethical conduct and enhances the
effectiveness of fraud fighting, it provides the opportunity to address
problems internally before they are reported to outsiders and it
supports our (regulatory) compliance efforts.
The Confident Procedure deals with unwanted behavior within our
organisation. Unwanted behavior is related to individual sexual
harassment, mobbing, discrimination or aggression. These kinds
of manners could cause (emotional) damages to employees which
influences their performance as an employee as well as a private
human being. In order to assist, guide and help employees in such
individual unwanted circumstances, we’ve introduced the possibility to
approach the assigned confidants in our Head Office in Tegelen.
Outlook, a view on 2019Ewals Cargo Care is a leading European logistics player and will
continue to invest in the products and services it provides and its
footprint. We look forward to further invest in our future by starting up
new products, opening new offices and continue to invest in equipment
and information technology.
We have made strong progress in our transformation to a Next
Generation Logistics organisation with our focus on: Professionals to
lead, Business Systems to perform, Products to deliver and Communities
to build. During 2019 we will continue to implement programs related to
this transformation.
Our professionals are key to all aspects of our business. As a logistic
service provider, it is our people that make the difference in the quality
of the services we provide to our customers.
Beesel, 8 April 2019
Board of Directors
B. (Bram) Ewals (CEO)
J.Th. (John) van de Rijdt (CFO)
“Following earlier cooperation, Ewals Cargo Care started participating in the Global Logistics Emissions Council (GLEC) as GLEC Consultee in September 2018. The mission of this council is to establish and implement a universal and transparent framework for calculating logistics emissions. This framework should support driving emission reduction and enhancing efficiency across global logistics supply chains.”
– Marc Mous (QESH Manager & Ewals Cargo Care’s GLEC delegate)
“Our professionals are key to all aspects
of our business”
Ewals Cargo Care Highlights 2018 11
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