1

ANNUALREPORT

2008

THINKING AHEAD – MOVING FORWARD

Foreword ..............................................................................04

History ...................................................................................06

HighlightsoftheYear ..........................................................10

People ..................................................................................12

Facts&Figures ......................................................................17

DevelopmentoftheCompanyGroup .................................18

AirFreightandSeaFreightEurope .....................................20

RoadTransportEurope ........................................................22

Asia ........................................................................................24

Oceania,MiddleEast,Africa(OMEA) .................................26

Americas ................................................................................28

CommittedtoSustainability ................................................30

Products ................................................................................32

HellmannLocations .............................................................34

3Contents

Foreword

5

JostHellmann KlausHellmann KarlEngelhard ManfredFischer MarkHellmann

Main BoardThecompany’soverallperformancein2008remainedpositivedespitetheglobal

economicslowdownwhichbecameespeciallyevidentinthe4thquarterof2008,

wherefreightvolumesdecreasedsignificantlyworldwide.Currencyadjusted

revenuegrowthfortheyearreached4.6percentbringingthetotalannualglobal

revenueto2.87billioneuros.Onaregionallevel,theAmericasdivisionachieved

anexceptionalgrowthinrevenuesof14.9percent,makingitthetopperforming

regionfollowedbyEuropeat6.7percent*beforeOMEA(Oceania,MiddleEast

andAfrica)andAsia.

Thetopperformingindustrysolutionsintermsofrevenuegrowthwere:the

AutomotivedivisionandtheContractLogistics&Consultingsectorwith75.7

percent*and27.7percent*respectively.Whilethecompany’scoreproductssaw

itsglobalairfreightrevenuesdecreasedby2percent*asaresultoftheeconomic

downturn,seafreightrevenuesactuallyroseby5.5percent*androadtransport

revenuesalsoincreasedbyanimpressive14.5percent*in2008.

Themarkettrendshiftedtowardsdispatchingalargerquantityofsmallership-

mentsandhasresultedinanincreasednumberofconsignments,lowertonnage

figuresandaslightdecreaseinthetotalnumberofseafreightcontainerstrans-

ported.Overall,thenumberofconsignmentshandledbythecompanyincreased

by9.6percentyearonyearwhiletonnagedecreasedby0.9percentandthetotal

numberofTEUsdecreasedby2.8percent.

*Denotesfiguresaftercurrencyadjustment

History

Throughoutitsmorethan137-yearhistory,Hellmannhasdistinguisheditselfwith

manyattributesbutonlytwodifferingtraits;anunwaveringfocusoncustomer

satisfactionandaneagernesstoembraceinnovationandchange.Sinceourhumb-

lebeginnings,ourgoalhasbeen–andalwayswillbe–togrowalongsideour

customers.

1871 CarlHeinrichHellmannfoundsthecompanyasaone-manbusiness

deliveringgoodsbyahorse-drawncart.

1925 Hellmannbecomesoneofthefirstcompaniestosuccessfullyreplace

theirhorse-drawnfleetwithcoal-poweredtrucksinGermany.

1935 Aninnovationinefficienttransportmanagement:Hellmannlaunchesa

largescale(LTL)consolidatedfreightterminalwith60employees.

1968 Aftermorethan20yearsofpost-wargrowthandexpansionacross

Europe,thecompany’ssharesaretransferredtothefourthgeneration,

JostandKlausHellmann.

1976 HellmannbecomesafoundingmemberoftheDPDparcelsystemservice.

1981 HellmannopenstheirfirstAsianofficeinHongKong,followedsoonafter

byofficesinthePeople’sRepublicofChina,Taiwan,Singapore,South

Korea,andmorerecentlyVietnam,SriLankaandJapan.

1987 OperationsbegininSydney,Australia,followedoneyearlaterbyoffice

openingsinNewZealand.

7

Hellmann: A History of Innovation and Partnership

9

1988 OperationsbegininLongBeach,California,andexpansionensueswith

officesin18U.S.cities,6Canadiancities,andadditionalHellmannoffices

acrossMexicoandSouthAmerica.

1992 TheHellmannpartnernetworkexpandsintoEasternEurope.

1996 Hellmanncelebrates125yearsofcustomerenthusiasmandhasdeveloped

aglobalnetworkof341officesin134countries.

2002 Globalgrossrevenueexceeds2billioneurosasHellmann’sservices

becomeprogressivelymoreindustry-specificwithproductsfromthe

Perishable,Automotive,Fashion,High-Tech,ProcessManagement,

ContractLogistics&Consultingdivisions.

2004 ConstructioniscompletedonthenewShanghaiairfreightwarehouse.

Thecompany’soperationsnowinclude7A-Classlicensesand23officesin

thePeople’sRepublicofChina.

2006 Hellmannreceivesthecoveted“AwardofExcellence”fromthe

GlobalInstituteofLogistics.

2007 HellmannopensofficesinIndiaandPakistan.InAugust,theEuropean

LogisticCenter(ELC)inMunichisputintooperationandbeginsthe

distributionofsparepartsforMANvehicles.ThesecondELCbasedin

ParisbeginsoperationsinDecember.

2008 BestOfficeAwardforthenewbuilding“SpeicherIII“inOsnabrueck

awardedbythe“Wirtschaftswoche“(aGermanbusinessmagazine).

Highlightsof the Year

BentelerAutomotiveawardsHellmannwith“SupplieroftheYear“

EveryyearsuppliersfromtendifferentcategoriesarerecognizedbyBenteler

Automotiveasthebestglobalsuppliers.Inthecategoryoflogistics,Hellmann

receivedtheawardforoutstandingtransatlanticProcurementlogisticsservices

includingthespecificdevelopmentandimplementationofpackingsolutionsfor

optimalloadingandutilizationofcontainerspace.

Hellmannreceivesqualitycertificateforbeingfamily-oriented

InApril2008HellmannWorldwideLogisticswasawardedthe“berufundfamilie”

(jobandfamily)certificateafteranextensiveaudit.Thiscertificateisbasedon

aninitiativebyaGermanycharityandhasexistedsince1998.Sinceitsinception,

ithasbeenrecognizedasaprestigiousawardforfamily-andemployee-oriented

companies.

HellmannwinstheGerman“BestOfficeAward”

On21October2008,asapartoftheOrgatecInternationalFairinCologne,Hell-

mannreceivedthe“BestOfficeAward”foritsnewbuilding–the“SpeicherIII“

officeinOsnabrueck.TheawardwasgrantedbytheCologneFair,theGerman

businessmagazine“Wirtschaftswoche“aswellasscientistsfromtheInstituteof

ErgonomicsattheDarmstadtTechnicalUniversity.

GreatCLCsuccessforHellmannUSA

On1July2008HellmannCLC,Inc.–adivisionofHellmannWorldwideLogistics,

Inc.–announcedtheacqusitionandpartnershipwithWestPointHome,Inc.to

manageandoperatetheDistributionCenterinWagram,NorthCarolina.The

10

WestPointCenterrepresentsthelargestCLCsetupforHellmannintheUSAand

willbeasignificantsteptowardsthegrowthofHellmann’sCLCproduct.

EnvironmentalManagementSystemISO14001

In2008,HellmannWorldwideLogisticsreceivedISO14001certificationinthree

additionallocations;Miami(US),Lichfield(UK)andHongKong(CN)allachieved

therequiredstandardofenvironmentalsustainabilityastheglobalcertification

programcontinues.

ChinaTraderAward

On18November2008CathayPacificGermanyawardedtheprestigiousChina

TraderAwardtoGerman-basedcompaniesforextraordinaryandcontinuous

engagementinthePeople’sRepublicofChinaandHongKong.HellmannWorld-

wideLogisticsparticipatedthisyearforthefirsttimeandwonthe“ChinaTrader

AwardforSustainableBusiness“.Toqualifyforthisaward,Germancompanies

musthaveasustainableandlongtermrelationshipwithChinaatthecoreoftheir

businessactivities.

11

People

13

Ourtoppriorityremainedattracting,recruiting,developingandretaining

peoplewhocanliveuptotheexpectationsofourcustomersandthemarkets

inwhichweconductbusiness.Wecontinuouslylookforpassionateandinno-

vativepeopletohelpuscreateourfuture.Hellmanniscommittedtobeinga

globalemployerofchoice.

Wearededicatedtoprovidingopportunitiesforcontinuouslearningtoour

people.Injob-relatedtrainings,employeesattendseminarstoacquirenew

skillsandincreaseknowledge,preparingthemfornewchallengesanddevelo-

pingtheircareeratHellmann.Continuouslearningprogramsincludeon-the-

jobtraining,classroomlearning,e-Learning,jobrotation,mentoring,and

professionaldevelopment.Putsimply,weofferchallengingassignmentsand

theopportunitytoworkwithhighlycommittedandtalentedpeoplearound

theworld.

In2008ourstaffgrewgloballyto8,900full-timeemployees.

People First – the Essence of our Success

Hellmann’sPeople-Firstphilosophycanbesummarizedasfollows:

nWeinvestinthedevelopmentofourpeople.

nWecultivateindividualtalent.

nWeenableknowledgetransferinallareasofourbusiness.

nWeencourageteamworkandfosterastrongsenseofcommunityamong

ourpeople.

nWeoffercertifiedapprenticeshipsandinternshipsallovertheworld.

14

Europe

200820072006

Asia

200820072006

OMEA

200820072006

America

200820072006

Total

200820072006

4,5775,3575,426

1,1881,5031,565

530579603

9901,1171,306

7,2858,5568,900

NumberofEmployees

15

ThefoundationofourHumanResourceinitiativesisbasedon:

nRecruitingthebestwithoutcompromise.

nPerformancemanagementthroughcontinuousappraisalsandfeedback.

nFocusedpeopledevelopmenttomaintainandimproveperformance.

nEmployeecommitmentthroughrecognition,rewardandsupport.

Facts &Figures 17

Despitetheglobaleconomicslow-

down,totalturnoverforthecompany

grouprosein2008to2.87billion

Euros.Europeremainedthelargest

producerofrevenuewith56.3percent

oftotalrevenues;Asiagenerated17.5

percent,theAmericas17.4percentand

OMEA8.8percent.

Intermsofproducts,roadtransport

reportedthehighestrevenuegrowth

fortheyear.Seafreightalsoincreased

whiletheairfreightdivisionreported

aslightreductioninyearonyearreve-

nuesasaresultoftheglobaleconomic

downturnspecificallyinthesecond

halfof2008.Theotherproducts,when

groupedtogether,alsoreporteda

smalldeclineintotalrevenuesincom-

parisonto2007.

Seafreightremainedthelargestdivision

with32.8percent,airfreight’sshare

declinedbyafractionto28.5percent

andtheroadtransportdivisionincrea-

seditsshareto22.8percent.Theother

divisionsaccountfortheremaining

15.9percent,representingonlyaslight

decreasefromthepreviousyear.

Development of the Company Group

18

PercentagesGermany/International2008

57.5

42.5 Germany

International

PercentagesoftheRegions2008%

%

56.3

8.8

17.4 Americas

OMEA

Europe

17.5 Asia

PercentagesoftheDivisions2008%

22.8

32.8

28.5 AirFreight

SeaFreight

Overland

15.9 Others

19

RevenueoftheDivisions2008inmillioneuros

655.6

943.8

819.6 AirFreight

SeaFreight

Overland

455.0 Others

TotalRevenueinbillioneuros

2008

2007

2006 2,65

2,82

2,87

Withnearly23percentofthetotal

turnoverworldwide,theEuropeanair

andseafreightgrouprepresentedthe

largestcomponentofglobalrevenues.

Thecompany’sownairfreightandsea

freightentitiesnowinclude12Euro-

peancountrieswiththeacquisition

oftheCzechRepublic,Turkeyand

Denmarkin2008.

Duetoasignificantreductionin4th

quartertrade,theairfreightsector

suffereda4percentdeclineinconsign-

ments,a13percentreductioninton-

nageandadecreaseof4percent*in

totalannualrevenues.Asadirectresult

ofincreasedbusinessdevelopmentand

acquisitions,theEuropeanseafreight

turnoversectorreportedanincreasein

revenuesanda6percentgrowthinthe

numberofTEUstransporteddespite

theworseningmarketsituation.

Air Freight and Sea Freight Europe

20

AirFreightConsignments

2008

2007

2006 206,283

204,144

196,880

SeaFreightTEUs

2008

2007

2006 120,382

139,489

147,827

AirFreightTonnage

2008

2007

2006 118,324

117,010

101,291

*Denotesfiguresaftercurrencyadjustment

21

AirFreightTurnoverinmillioneuros

2008

2007

2006 259.1

276.8

260.2

SeaFreightTurnoverinmillioneuros

2008

2007

2006 292.5

357.0

388.3

Afteraverysuccessfulfirsthalfof2008,

volumesinallEuropeanroadtransport

segmentswereadverselyaffectedinthe

4thquarterasaresultofadecliningeco-

nomy.Despitetheglobaleconomicset-

back,thenumberofconsignments,the

totalweighttransportedandtheannual

turnoverintheEuropeanroadtransport

divisionstillincreasedyearonyear.

TheEuropeanTruckingnetworkwas

entirelyreorganizedin2008andthere-

ductioninthenumberofpartnersfrom

25to10resultedinaharmonizationof

systemsandprocesses.Thecontinued

expansionofthegatewayconceptalso

allowedforincreasedoptimizationof

deliverytimesacrossEurope.In2008,

HellmannSpainjoinedtheEuropean

roadtransportnetwork,anewtrucking

branchopenedinRuesselsheimnear

Frankfurtand12newbranchesopened

inRussia,Belarus,Ukraine,Latvia,Lithu-

aniaandEstonia.InTurkey,thejointven-

turewasdissolvedandthecountrynow

operatesundertheHellmannWorldwide

Logisticsbanner.

Road Transport Europe

22

OverlandConsignments

2008

2007

2006 9,281,347

10,678,934

11,881,207

OverlandTonnage

2008

2007

2006 3,141,504

3,876,683

3,982,899

23

OverlandTurnoverinmillioneuros

OthersTurnoverinmillioneuros

2008

2007

2006 485.4

575.7

650.7

2008

2007

2006 336.6

374.3

319.7

Asiaasaregionexperiencedvery

positivegrowthinthefirsthalfof

2008withnearlyallcountriesperfor-

mingwell.However,theeffectsofthe

globaleconomicdownturnonAsian

tradebecameevidentinthefourth

quarteroftheyearresultinginareve-

nuereductionof6.8percent*.Despite

thenegativeeconomicinfluences,over-

alltonnageincreasedbyanexceptio-

nal11.7percent,whilethenumberof

consignmentsremainedflatandthe

totalnumberofTEUsdroppedonly

slightlyby2.6percent.

Theairfreightcharterprogramwas

wellmaintainedandChinacontin-

uedtogrowwiththeexceptionof

SouthernChinaparticularlyinthe4th

quarter.Geographicmarketsshow-

ingthemostgrowthwereNorthern

China,Vietnam,Indonesiaand

Bangladesh.TheContractLogistics&

Consultingproducthasshowncontin-

uedstrongdemandwithmanynew

entrantsintheAsianmarketplace.The

companyhasinvestedextensivelyin

SouthAsianmarketssuchasIndia,Sri

Lanka,BangladeshandPakistan.

Asia

24 *Denotesfiguresaftercurrencyadjustment

AirFreightConsignments

2008

2007

2006 185,433

190,145

188,003

SeaFreightTEUs

2008

2007

2006 135,070

162,493

161,303

AirFreightTonnage

2008

2007

2006 134,887

134,202

125,223

25

AirFreightTurnoverinmillioneuros

2008

2007

2006 372.1

323.8

324.8

OthersTurnoverinmillioneuros

2008

2007

2006 0.350

5.993

9.799

SeaFreightTurnoverinmillioneuros

2008

2007

2006 153.5

180.4

168.2

In2008,theOMEAregionwasalso

affectedbytheglobaldownturnand

experiencedadownwardtrendincon-

signments,tonnagesandTEUnumbers

duringthefinalquarteroftheyear.

Overalltheregionreportedareduction

intonnageof4.9percent,areduction

inconsignmentsof1.7percentandthe

numberofTEUstransporteddecreased

by26.7percent.Intheproductdivisions,

theAutomotivedivisioncontinued

togrowwitha9.2percent*revenue

increasemainlyasaresultofbusiness

growthintheMiddleEastdistribution

hubinDubaiandastrongdemandfor

specializedautomotiveservicesinSouth

Africa.TheContractLogistics&Con-

sultingsectorgrewby15.8percent*

asaresultoftheproductbeingwell

receivedinAustralia,NewZealandand

theUAE.Despitethereductioninton-

nage,theseafreightdivisionreported

revenuegrowthof3.6percent*while

airfreightrevenuesdroppedby1.3

percent*.Theregionoverallreported

atotalannualturnoverincreaseofjust

underonepercent*yearonyear.

Oceania, Middle East, Africa (OMEA)

26 *Denotesfiguresaftercurrencyadjustment

AirFreightConsignments

2008

2007

2006 48,673

45,485

42,516

SeaFreightTEUs

2008

2007

2006 43,050

49,198

36,140

AirFreightTonnage

2008

2007

2006 21,601

24,113

18,024

27

AirFreightTurnoverinmillioneuros

2008

2007

2006 82.8

86.4

70.3

OthersTurnoverinmillioneuros

2008

2007

2006 37.3

38.6

43.4

SeaFreightTurnoverinmillioneuros

2008

2007

2006 167.8

168.5

139.8

Totalrevenuefortheregionin2008

was498.7millionEuroscomparedwith

432.2millionEurosforthesameperiod

in2007,anincreaseof15.4percent*.

Bothtonnageandconsignments

increasedby3.4percentand3percent

respectively.ThetotalnumberofTEUs

transportedfellslightlyby0.7percent.

Thisgrowthwasconsistentwithinthe

threesub-regionsofUSA,Canadaand

LatinAmericaandwasimpressively

maintaineddespitetheeconomic

downturnthroughoutthesecondhalf

of2008.Marketsharewasexpanded

intheregionthroughanaggressive

focusonnewproductssuchasContract

Logistics&ConsultingaswellasProject

business.

Americas

28 *Denotesfiguresaftercurrencyadjustment

AirFreightConsignments

2008

2007

2006 149,315

166,577

179,708

SeaFreightTEUs

2008

2007

2006 150,634

172,470

168,108

AirFreightTonnage

2008

2007

2006 142,102

175,634

163,127

29

AirFreightTurnoverinmillioneuros

2008

2007

2006 181.4

150.2

164.3

OthersTurnoverinmillioneuros

2008

2007

2006 58.3

59.1

86.9

SeaFreightTurnoverinmillioneuros

2008

2007

2006 219.6

223.3

247.5

ForagloballyactivecompanysuchasHellmannWorldwideLogistics,thedevel-

opmentofeconomicinterestsisinherentlyconnectedtoourresponsibilitytothe

environmentandtheideaofsustainabledevelopmenthaslongbeenourfocus.

AtHellmannwearecommittedtoworkingwithinastructuredsystemofenviron-

mentalmanagementusingtask-orientedmethods,continuousself-monitoring

andregularexternalauditing.

30

Committed to Sustainability

Forallofouractivitieswehavegoalsinplacetoachievesustainabledevelopment.

Someofourtasksinclude:wastereductionandrecycling,reductionofgreen-

housegasemissionsinallvehicles,energysavingandelectricityreductioninthe

workplace,eliminationofenvironmentallyharmfulchemicalsandcleaningagents

fromtheworkplace,greenspacemaximizationforexteriorareas,eliminationof

saltusageforwinterwalkwayandparkingmaintenance;sponsorshipofecologi-

calandenvironmentallyfriendlyprogramsandISO14001certification.

Werecognizethatthereisstillmuchtobedoneandwearecommittedtoen-

suringthatallourbusinessactivitiesandservicescontinuetobeeconomically,

sociallyandenvironmentallyresponsible.

31

Products

33

Nationaland

ContinentalRoadfreight

Courier-Express,

ParcelServices

ContractLogistics&Consulting

Airfreight,Seafreight,

Sea-Air,Customs

Brokerage

DirectLoad,RailSolutions

IT-Solutions

Industry Solutions:Automotive,Electronics,Fashion,Healthcare,

Perishables,PublicPrivatePartnership

Portfolio

34

HellmannLocations

www.hellmann.net

Osnabrueck

HellmannWorldwideLogistics

GmbH&Co.KG

Elbestrasse1

49090Osnabrueck

Germany

Phone +49541605-0

Fax +49541605-1211

Sydney

HellmannWorldwideLogisticsPtyLtd.

AirgateBusinessPark

289CowardStreet

2020MascotNSW

Australia

Phone +6129667-7555

Fax +6129667-7666

Miami

HellmannWorldwideLogistics,Inc.

10450DoralBoulevard

Doral,Florida33178

UnitedStatesofAmerica

Phone +1305406-4500

Fax +1305406-4519

Hamburg

HellmannWorldwideLogistics

GmbH&Co.KG

Industriestrasse100

21107Hamburg

Germany

Phone +49407537-00

Fax +49407526208

HongKong

HellmannWorldwideLogisticsLtd.

Unit2,G/F,BlockA

TonicIndustrialCenter

26KaiCheungRoad

KowloonBay,Kowloon

HongKong

Phone +8523626-8000

Fax +8522796-7303

35

Hellmann Headquarters

Certifiedpaperfromsustainableforestry