Annual Report 2015 Profile of the Hupac Group Hupac at a glance Facts & Figures Profile from the origin to the terminal and the onward Year of incorporation 1967 Traffic volume carriage form the terminal to the final destination Road consignments in 1000s Share capital CHF 20 million 724 Hupac is the leading combined transport opera- are carried out by transport companies. Hupac is 690 702 690 Shareholders around 100 646 657 660 662 tor through Switzerland and one of the market committed to railway liberalisation and offers its 612 607 leaders in Europe. The company works to ensure services to all transport companies. Capital structure 72% logistics and transport companies that an increasing volume of goods can be 28% rail companies transported by rail and not by road, thus making Headquarters Chiasso an important contribution to modal shift and Business units Operational branches/ Basel, Busto Arsizio, Piacenza, Singen, Cologne, environment protection. Representative office Duisburg, Rotterdam, Antwerp, Warsaw, Moscow Hupac’s presence in the market consists of two Business profile Independent intermodal transport operator Hupac operates 100 trains each day between business units offering services for different Business units Shuttle Net: intermodal network in west Europe, 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Europe’s main economic areas and as far away customer requirements: east Europe and Far East Employees as Russia and the Far East. In 2015, the traffic } The business unit Shuttle Net manages the Company Shuttle: point-to-point transports for large Number of natural persons volume was around 662,000 road consignments. network for intermodal transport in west Europe, volumes 433 426 east Europe and Far East. It is designed for 405 407 413 Customers Transport and logistics companies 386 390 388 394 400 The Hupac Group is composed of 15 companies flexible use by the customers based on their with locations in Switzerland, Italy, Germany, the needs. Hupac bears the capacity utilisation risk Traffic volume 661,540 road consignments Netherlands, Belgium, Poland and Russia and for the trains. Employees 413 natural persons employs around 400 persons. } The business unit Company Shuttle focuses 404 persons in full time equivalent on point-to-point transports in Europe. Freight Rolling stock 5,216 rail platforms Hupac was founded in 1967 in Chiasso. The forwarders preferring to ship large volumes 10 main-line and/or shunting locomotives company has around 100 shareholders. The share in dedicated train compositions find a strong Terminal management Busto Arsizio, Novara, Piacenza, Aarau, Basel, capital amounts to CHF 20 million; 72% belongs business partner in Hupac. Chiasso, Lugano, Singen, Antwerp 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 to logistics and transport companies while 28% is Information technology Goal, integrated software solution for intermodal transport Rolling stock held by rail companies, thus guaranteeing close- Cesar, web-based customer information system Number of rail platforms ness to the market and independence from the Traffic development Ediges, XML-based data exchange system 6.087 5.874 5.667 5.529 5.629 railway companies. 5.216 Certifications Quality management system ISO 9001:2008 5.166 4.967 5.036 In 2015 Hupac shipped approximately 662,000 Environmental management system ISO 14001:2004 4.425 road consignments by rail, representing a growth ECM – Entity in Charge of Maintenance according to Business model rate of 0.2% compared to the prior year. Once Directive EU 445/2011 again, non-transalpine traffic was the growth driver Financial data Annual turnover CHF 427.5 million (EUR 394.1 million) Hupac has around 5,200 rail platforms and bun- with an increase of around 6%. The transalpine traf- Profit for the year CHF 6.1 million (EUR 5.6 million) dles the consignments of transport companies fic through Switzerland declined slightly by 0.6%, as Cash flow CHF 41.3 million (EUR 38.2 million) into whole trains as a neutral, independent com- a consequence of the slowdown of Swiss economy Dated 31.12.2015 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 bined transport operator. The trains run back and related to the abolition of the minimum exchange forth between transhipment terminals on long and rate CHF/EUR. A connection in the transalpine mostly international routes. The traction is pro- traffic via the Brenner Pass had to be discontinued, Tunover 574,9 588,2 vided by external rail companies. The pre-carriage resulting in a decrease of nearly 20%. 504,5 476,9 481,1 493,1 480,2 476,6 in million CHF in million EUR exchange rate Ø CHF/EUR 454,5 427,5 700 2 1,9 588,2 600 574,9 1,8 504,5 493,1 481,1 480,2 500 476,9 476,6 1,7 454,5 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1,6427 427,5 Transport volumes 1,6 400 1,5729 1,5867 393,8 391,7 Road consignments Net weight in tonnes 1,5101 387 388 364,4 372,9 1,5 348,7 355,9 2015 2014 2015 2014 % % 300 314,6 301,8 1,4 1,3805 Transalpine via CH 377,675 379,944 - 0.6 7,151,000 7,195,000 - 0.6 1,3 Transalpine via A 38,603 48,091 - 19.7 722,000 877,000 - 17.7 200 1,2336 1,2308 1,2146 Transalpine via F 3,168 3,804 - 8.8 76,000 86,000 - 11.6 1,2053 1,2 100 241,794 228,270 5.9 4,055,000 3,797,000 6.8 1,1 Non-transalpin 1,08463 0 1 Total 661,540 660,109 0.2 12,004,000 11,955,000 0.4 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Comment Road consignment: number of loading units that would equate to one HGV in road haulage, i.e. one semi-trailer or two swap bodies Revenue of the Hupac Group is reported in Swiss francs, but arises almost exclusively in euro. The graphic shows the turnover in both currencies, as well as the 7.15 metres long or one heavy tank container or two light 20-foot containers development of the exchange rate. While in 2015 the revenue in euro slightly rises in line with the traffic development, a decline in Swiss francs is observed due to Net weight: weight of the goods carried the weakening of the euro. Annual Report 2015 Introduction Foreword 3 The year 2015 in review 7 Corporate Governance 9 Management report Hupac’s economic responsibility 11 Economic development 12 Risk assessment 13 Offer development 14 Production 17 Operating resources 18 Development of operative shareholdings 20 Hupac’s environmental responsibility 21 Environmental performance 23 Hupac’s social responsibility 25 Employees 26 Modal shift policy 27 Financial statements Consolidated financial statements 30 Financial statements of Hupac Ltd 38 1 New strategy 2016-2020 Ladies and gentlemen, dear friends of our company However, physical resources such as rolling stock and terminals are not the only factors that Every five years Hupac reviews and analyses its determine Hupac’s success. The digital revolution positioning in the transport market. Last year is surging ahead and will very soon bring about time had come again: the Board of Directors and changes to markets, production processes and the Management Board jointly developed a strat- distribution channels. Hupac’s strategy is therefore egy in order to position the company successfully geared to digitization. The aim is to improve train for the future. capacity utilization by means of standardized and automated planning and production processes. Hupac continues to aim for a leading role in the End-to-end data integration, transparent shipment market for intermodal transport in Europe – in tracking and automated information exchange terms of quality as well as quantity. The chances shall become the standard for our customers. of achieving this goal are excellent: goods trans- Preparations for Logistics 4.0 – i.e. the interlink- port is a growth market, and railways have an age of data and processes for all partners in interesting potential for development in the long- the logistics chain – is a top priority at Hupac. haul traffic segment. This also involves us advocating the availability and transparency of rail freight transport data at We aim to step up penetration of our core markets political level, with the aim of improving the entire in the coming years. The objectives are to win transport chain. back market share through Switzerland and to acquire new traffic, especially in the trailer trans- Hupac’s future is shaped by our employees – port and consumer goods segments. individuals who focus consistently on customers’ requirements and devote their efforts to ensuring In addition, we intend to expand our geographical that the company can continue to grow and invest scope. We were able to open a branch in Shanghai profitably. Right from the beginning, flexibility and at the start of 2016. This will establish our pres- innovative strength have been the hallmarks of the ence in the Eurasian market and play its part in Hupac team. In order to meet the challenges of enabling Hupac to produce end-to-end intermodal the coming years, we are continuing to develop transport of high quality between China and our employees’ skills across all levels of the hier- Europe. Additional target markets include south- archy. The logistics of the future call for new, inter- east Europe with transport to Turkey, the Iberian disciplinary and intercultural thinking and behaviour peninsula and France. patterns. Hupac is excellently equipped in this respect, thanks to its history stretching back The Company Shuttle business unit, set up at the almost fifty years and its strong corporate culture.