Annual Report 2020 - GEFCO...This report features some images that were taken before the COVID-19...

Annual Report 2020

This report features some images that were taken before the COVID-19 pandemic. Throughout 2020, GEFCO put measures in place to ensure full compliance with the rules and guidelines in the various geographies in which it operates.

Our VisionAt GEFCO, our aim is to become one of the most innovative and influential players in supply chain transformation to meet technological, social and environmental challenges.

We believe we create value through cooperation.

Our open mindset and the humility to listen and learn from our partners take us the extra mile.

This is GEFCO’s Infinite Proximity.

Our MissionOur global network is driven by the desire to push back boundaries and respond with agility to the most demanding challenges.

We explore and invent flexible and smart solutions.

We build long-lasting cooperation and earn the trust of our partners every day.

We are proud of our unwavering commitment to excellence.

Our BeliefsAt GEFCO, we have a unique sense of Infinite Proximity.

We are proud of the history that has forged our expertise. It has taught us to listen and learn from our partners, exploring the best ways to build long-term relationships and share growth.

We push back the boundaries, overcoming the most demanding supply chain challenges and inventing lasting solutions to our partners’ needs.

We share core commitments in our global network: strong cooperation, agility, courage, caring and trust.

We are strongest when working as a team with shared values.

We increase trust day by day through our reliability and our results.

We are Partners, unlimited.

Our ValuesWe are strongest when working as a team with shared values. We are:

■ Agile ■ Caring

■ Cooperative ■ Trustworthy

■ Courageous

Chairman’s Letter 2

Governance and Shareholders 5

Company Overview 6

Strategy 8

Business Model 10

Innovation 12

2020 Performance 15

2020 Group Performance 16

2020 Division Performance 18

GEFCO: Partners, unlimited 21

Case Studies 22

Operations Excellence and Sustainability 29

Our People, Our culture 30

Sustainability 32

Contents

GEFCO.net

Enabling the New World of Mobility 27

GEFCO Air & Sea Rises to the Challenges of COVID-19

Supply Chain Harmony for Westcon: GEFCO’s Control Tower

GEFCO Germany Leverages Rail and Overland for Energy and Chemical Industries

26

22 24 Almajdouie and GEFCO Meet z’s Growing Automotive Demand

25

GEFCO Opens One of the Largest Warehouses in Poland

28

Case Studies

1 2020 Annual Report GEFCO Group

Chairman’s Letter by Luc Nadal

Successfully keeping supply chains operating through strikes, geopolitical events, extreme weather and other crisis situations is in GEFCO’s DNA. With the COVID-19 epidemic we overcame new challenges, and GEFCO remained agile and resilient in its response to this unprecedented crisis.

In January, Asia’s economy was impacted, and we formed a crisis team including all business divisions and functions to implement contingency plans for our employees, partners and customers. When the epidemic intensified in Europe in March, all GEFCO teams were focused on finding alternatives for our customers to keep their supply chains operating under extremely difficult conditions.

Lockdown measures in many European countries starting at the end of March heavily impacted our business. With most factories and retail outlets closed, and border crossings unpredictable, we consistently went the extra mile, activating our supply-chain expertise to find sustainable solutions for our partners and customers.

Our health and safety teams quickly implemented measures to help keep our employees safe on the docks and along the roads, while integrating our customers’ safety protocols. GEFCO benefited from government schemes to protect jobs and widely implemented home working schemes for office employees during the height of the lockdown measures.

GEFCO’s time-critical solutions by air and road were in high demand and we carried out a record number of operations to transport personal protection and medical equipment from Asia to Europe and across the world. We also collected components in Wuhan China and Italy’s Lombardy region, going the extra mile for customers despite strict lockdown conditions in these two regions.


Successfully keeping supply chains operating through strikes, geopolitical events, extreme weather and other crisis situations is in GEFCO’s DNA. With the COVID-19 epidemic we overcame new challenges, and GEFCO remained agile and resilient in its response to this unprecedented crisis.”

This year we faced each challenge with strong skills and dedication to being Partners, unlimited. I am proud of how our teams have worked with our entire ecosystem to keep supply chain operations running under extremely difficult conditions. Our expertise and GEFCO’s Infinite Proximity culture remained a source of inspiration for our teams, and I thank everyone for all their hard work, commitment and trust.

Company PerformanceDespite the negative impact of the pandemic on our business, GEFCO’s yearly results are robust. As an agile, asset-light business, we were able to control costs while meeting customer needs and progressing on our strategic priorities. Our revenues contracted sharply in April, May and June at the height of major disruptions in global business, and during the second semester of 2020, we were able to increase our activities in line with our customers’ production ramp-up schedules.

GEFCO’s overall turnover decreased by 19.7% to €3,805m, with an operating profit of €140.3m, down from €204.7m in 2019 and a margin of 3.7% in 2020 compared to 4.3% in 2019. Given GEFCO’s extensive portfolio of automotive customers and industrial players, we are pleased with our ability to maintain a robust operating profit margin within the context of the global pandemic.

AutomotiveThe automotive industry was deeply impacted by the pandemic, with factory and dealership closures and consumers delaying purchases. GEFCO’s Finished Vehicle Logistics (FVL) division revenues dropped by 20% for the year, in line with the 22% decrease in European automotive production reported by IHS Markit.

For our historical customer Groupe PSA, we provided a full range of services to meet its needs around the world. For example, we transported spare parts from Asia to Europe at the beginning of the pandemic and helped the company resume production in the second semester. For Citroën Ami, Groupe PSA’s new 100% electric urban vehicle, we provided logistics from its plant in Kenitra, Morocco to France, along with vehicle personalisation and home delivery. In Turkey, we began the national distribution of Groupe PSA brands by rail. Our joint venture partners, BERGE-GEFCO in Spain and Almajoudie-GEFCO in Saudi Arabia, also performed well in supporting Groupe PSA and other top automotive brands.

Sales to Market Clients (customers outside GEFCO’s historical Groupe PSA business) remained steady and accounted for 50% of our revenues in 2020, up from 48% in 2019. In the automotive sector, we significantly increased our FVL activities for Ford and Renault Nissan Dacia in France and in Spain, building on our strong partnership in Europe. In Eastern Europe, we increased or renewed our partnerships with Skoda, Toyota and Subaru. We also began assembling utility vehicles for global commercial vehicle manufacturer Foton Motors in Brazil.


DiversificationIn line with our strategy, we continued to expand in non-automotive sectors, where our know-how in managing similarly complex supply chains provides critical value. In recent years, this has been particularly true in healthcare and pharma, and I’m pleased with the growth of our business in these sectors in 2020. Last year, we also deployed our business with Nestlé and Electrolux in Europe and welcomed new business from several energy leaders to transport diesel, gasoline, and heating oil by rail from Germany to other European countries.

DigitalisationOur IT progress remained on track, despite a temporary setback in September due to a cyberattack. I sincerely thank our IT teams, IT partners and customers for their support and confidence in GEFCO’s ability to deliver services during this time. Despite the headwinds, we made significant progress in rolling out a new IT system for our FVL business, a key development for our future growth.

We also ramped up our services with Moveecar, our brand dedicated to in-life vehicle management for manufacturers, retailers, leasing companies and auctioneers. We started working with vehicle leasing and fleet management leader Unidas in Brazil for remarketing activities and Polestar, Volvo’s electric vehicle (EV) brand in Shanghai, to deliver cars to individual consumers. We also began a partnership with LEVC to support its EV van distribution.

InnovationInnovation remains central to our growth strategy. Our in-house Innovation Factory continued to generate ideas from employees, while exploring new technologies to make logistics greener and more efficient. For example, electrification, hydrogen and autonomous technologies offer exciting opportunities for making long-haul trucking greener. Developing new superfast terminals for EV or hydrogen trucks on autoroutes would greatly reduce CO2 emissions, and GEFCO is actively seeking partners to advance this vision. Moreover, with EV sales increasing steady, we are equipping our compounds with chargers and are on a positive trajectory for managing end-to-end logistics for EV players.

Strategic OutlookThe Group is at a crossroads in its history, and in 2021, we will begin a journey to accelerate our growth with a new strategic vision. We will continue building on our FVL expertise and integrated logistics, and we look forward to working with more top global brands. We will pursue our growth in the auto, industrial and consumer goods sectors, and we will invest in innovation internally and with experts. GEFCO will actively seek new partnership opportunities and invest strategically in new geographies to grow.

Partners, unlimitedThe COVID-19 epidemic has profoundly changed our lives and how we do business. GEFCO’s foundations were greatly tested during this unprecedented health crisis, but they are solid. I truly believe that Partners, unlimited will continue to be our North Star, guiding all our actions and decisions now and in the future to make our business and teams stronger.

I would like to warm-heartedly thank all our employees, customers, partners and shareholders for their partnership and trust in 2020.

Luc Nadal CEO and Chairman of of the Management Board


Governance and ShareholdersManagementGEFCO’s executive management structure is comprised of a Management Board (five members) and a wider Executive Committee (eleven members) that are responsible for executing Group strategy and overseeing the ongoing operational excellence of the business to deliver value for customers, shareholders and employees. These groups are chaired by Luc Nadal, Chairman of the Management Board.

Support functions such as finance, HR, IT, communications and compliance are managed at the group level, while the respective international subsidiaries are responsible for operational functions and commercial interface.

Supervisory BoardGEFCO’s Supervisory Board represents the company’s two main shareholders, RZD Russian Railway Company and Groupe PSA, as well as employees via a direct Board seat. It is comprised of 14 members.

Chairman of the Supervisory Board: Oleg Belozerov, CEO of RZD

Vice-Chairman of the Supervisory Board: Mark Rollinger, Chief Legal Officer of PSA

Members of the Supervisory Board: Anne Abboud, General Director of PSA Retail

Arnaud Deboeuf, Executive Vice President Manufacturing and Supply Chain of PSA

Vera Evsegneeva, Head of Subsidiaries & Affiliates Supervision Department of RZD

Vladimir Gaponko, Operating Efficiency Director, Head of Department of Economics of RZD

Mariia Goetz, Deputy Head of Corporate Finance Department of RZD

Vadim Mikhailov, First Deputy CEO of RZD

Tatiana Orlova, Нead of Corporate Finance Department of RZD

Aleksei Shilo, Deputy CEO of RZD

Andrey Starkov, Deputy CEO of RZD

Lucie Vigier, Head of Corporate Finance and Treasury of PSA

Maryline Attal, Employee representative of GEFCO

Saül Azouelos, Employee representative of GEFCO

Luc NadalCEO and Chairman of the Management Board

Emmanuel ArnaudExecutive Vice-President, Sales & Marketing

Emmanuel CheremetinskiExecutive Vice-President, FVL, OVL & CL, IS*

Pavel IlichevExecutive Vice-President, Finance & Strategy

Paul-Henri FreretExecutive Vice-President, Air & Sea and East Asia

Vittorio BattagliaExecutive Vice-President, France

Pierre-Jean LorrainExecutive Vice-President, Europe, Middle East and Africa

Sophie BaudouxExecutive Vice-President, Information Systems

Susan MarroExecutive Vice-President, Corporate Communications

Stéphane MilhetExecutive Vice-President, Human Resources

Anne LambussonExecutive Vice-President, PSA Client & 4PL solutions

Shareholder Information

Groupe PSA | 24.96% Minority Shareholders | 0.04%RZD | 75%

* FVL = Finished Vehicle Logistics OVL & CL = Overland & Contract Logistics IS = Industrial Services

Executive CommitteeManagement Board


Company OverviewGEFCO is a world expert in complex supply-chain solutions and the European Leader in automotive logisticsFrom its beginnings in the 1950s as the transport and logistics arm of Groupe PSA, GEFCO has grown into a global specialist in complex supply chains. We are now trusted by over 30,000 customers around the world to deliver integrated supply-chain solutions.

Since 2012 when GEFCO became independent, the company has transformed, culturally and operationally, into a confident, innovative and outward-facing powerhouse brand.

We are a world leader in all aspects of automotive logistics, and over the past decade have successfully expanded into other sectors, including consumer goods, fashion, healthcare, electronics, pharmaceuticals and aerospace.

No other logistics provider combines this unified, multimodal global presence with the flexibility and expertise to design specific, integrated solutions for each and every customer.

65 rail terminals

182 Air & Sea offices

116 vehicle compounds

No.1 in Finished Vehicle Logistics (FVL) Europe

11,500 employees

100+ nationalities

Partners in countries70+

years of expertise

Presence in79 47 countries


€149m net financial debt 2

€3.8bn turnover

€140m recurring EBIT

1 GEFCO delivered over 5m cars in 2019, and the decrease in 2020 is the result of the COVID-19 pandemic and related economic slowdown2 Included lease liabilities from IFRS 16, implemented since 1 January 2018. As of 31 December 2020, lease liabilities amounted €308m.

25.1% ROCE

4.2m vehicles delivered 1

3.7% recurring EBIT margin


StrategyThe Group’s strategy is focused on five pillars, building on the approach that has proven successful in driving the Group’s above market growth over recent years.

StrategyThe Group’s strategy is focused on five pillars, building on the approach that has proven successful in driving the Group’s above market growth over recent years.

STRATEGY PILLARS

STRATEGY ACCELERATORS

Given the increasingly rapid changes in our customers’ supply chains, innovation is and must be central to our company and

culture. We have partnered with Techstars, and launched a dedicated internal organisation for innovation – GEFCO Innovation Factory – which is already producing results.

The Group has a two-pronged approach to M&A: firstly within FVL where the Group will look at strategic and value-

enhancing companies; and secondly on an opportunistic basis in other segments where we can add additional geographies, technologies or capabilities to the Group.

The Group is well established as

Europe’s largest provider of FVL and aims to expand this leadership position

by capitalising on its expertise,

specialised assets, global network,

and existing deep customer relationships.

Become the global leader in

Finished Vehicle Logistics (FVL)

With changing approaches to car ownership, and

GEFCO’s existing positioning and expertise, the company has an immense

opportunity to become a key

provider of services for vehicles

throughout their lifetime. This

includes all used car transactions as well as a range of services from first

owner to scrap.

Further develop second-hand

vehicle logistics and services

The Group will continue to leverage

its leadership position in FVL to

expand market share in adjacent

automotive logistics segments including

inbound supply chain, spare parts,

reusable packaging, and light assembly.

Expand auto inbound and

adjacent logistics segments

Consolidation platform for selective M&A Harness innovation as an accelerator

The Group has an existing global

integrated network and unrivalled

expertise in the demanding and

complex automotive industry. We

are successfully expanding into

adjacent industries with similarly

complex supply chain requirements.

Grow non-auto verticals by

leveraging existing expertise

With its asset-light and agile

business model the Group can expand internationally on a selective basis. We can do so in partnership with

existing customers who are themselves

expanding, and prospect customers,

especially in fast-growing geographies.

Continue developing new geographies and

trade lanes


Finished Vehicle Logistics (FVL)

GEFCO’s FVL segment is Europe’s biggest transporter of new vehicles, with over 60,000 in transit at any one time. Across the globe, the Group delivered 4.2 million3 vehicles in 2020 from factories to distribution centres, and from car dealers to end customers.

In addition to new vehicle delivery, GEFCO is increasingly involved in a number of added-value services within our customers’ supply chains, including post production, fleet management, and inspection. The Group is also deploying its market-leading solutions in the very large second-hand market and developing tailored solutions for the quickly advancing EV sector.

Overland & Contract Logistics (OVL & CL)

GEFCO’s Overland segment designs and operates supply-chain and delivery flows for a wide range of industries, predominantly via road. The offering is a combination of transportation, customised worldwide warehousing, engineering and solutions design, and project management.

Through our contracted network of 133 agencies and more than 300 partners worldwide we provide a full spectrum of transport solutions, including full and part load transport and customised time-critical solutions. Our asset-light approach, only owning 900 trucks directly but with access to over 11,000, allows us to build solutions around our customers’ needs rather than bend them to our process.

Business ModelWe operate our business in four interlocking segments to provide complete solutions for every sector and every geography worldwide.

End-To-End Integrated Logistics Solutions

3 GEFCO delivered over 5m+ cars in 2019, and the decrease in 2020 is the result of the COVID-19 pandemic and related economic slowdown

PROCUREMENT & INBOUND

Optimised collection & transportation

Consolidation

Sequenced just-in-time delivery

MANUFACTURING PROCESS

In-plant logistics

Light assembly services

Transport Consolidation centre Plant WarehouseSupplier


Industrial Services

GEFCO’s Industrial Services segment provides various industrial logistics and support services, the most significant of which is our Reusable Packaging Solutions (RPS), providing proprietary reusable crates and containers for a range of logistics needs.

The offering includes 6.5 million crates and small boxes in circulation with our customers, allowing standardisation, and state-of-the-art container management and storage with minimal capital outlay.

Air & Sea

GEFCO’s Air & Sea segment arranges local and cross-border transport via air, sea and rail infrastructure, while handling all aspects of customs, tax, and relevant import and export regulations. We have a network of 182 offices worldwide with a presence in 120 countries.

The segment is also responsible for arranging time-critical solutions, where our customers’ unforeseen disruptions require fast and stable solutions to keep their supply chains moving.

Lastly, the Air & Sea team arranges specialist transportation for unusually large or unwieldly cargo, such as heavy industrial equipment that is unable to be moved by conventional means.

OUTBOUND & DISTRIBUTION / AFTERMARKET LOGISTICS

Warehousing & Inventory control

Distribution planning

Distribution (dedicated & shared networks)

Value-added services (Post-production operations & Pre-delivery inspection)

Spare parts warehousing & distribution

Repair activities

Returns & recycle logistics

Freight forwarding

Trucking Warehouse End-user Spare parts, warehouse, repair centre


InnovationInnovation is revolutionising supply chains everywhere, transforming both production processes and consumer trends. Building on a strong internal innovation ecosystem, GEFCO is developing and repurposing cutting-edge technologies such as artificial intelligence (AI), robotics and the internet of things (IoT), along with new, more eco-friendly energy solutions, to bring long-term value for customers.

GEFCO’s approach to innovation draws on expertise from across the organisation: our Watch and Business Intelligence team explores the trends influencing and impacting industry, our in-house Innovation Factory boosts intrapreneurial concepts and projects, and our Open Innovation ecosystem builds partnerships with external experts and entrepreneurs to develop commercial products with start-ups. In the face of a challenging 2020, GEFCO has taken the time to explore and build proofs of concept to be tested in 2021.

Fuel Reduction and AlternativesProviding cleaner transport solutions for our customers is not only necessary to comply with increasingly strict regulation on carbon emissions, but also brings a commercial advantage. To match this ambition, GEFCO is successfully testing several innovative solutions from combustion optimisation to improving aerodynamics, all designed to decrease fuel consumption over the next few years.

GEFCO is also working closely with OEMs and start-ups to make eco-driving a reality through improved monitoring, driver training and real-time advice on driving behavior. In parallel, GEFCO continues to explore alternative options to diesel, looking at ways to replace combustion engine trucks with Battery Electric Trucks (BETs) for short distances and fuel-cell electric trucks (powered by hydrogen) for long mileage. Both have the potential to take clean transportation to the next level.

Compound 4.0New technologies have paved the way for compounds to develop new services, bringing added efficiency and value for customers. On several sites, GEFCO has tested different artificial intelligence and computer vision technologies to scan vehicles and identify damage more efficiently.

Another imminent challenge for automotive logistics is to operate the increasing number of electric vehicles that are coming onto the market. GEFCO is making significant investments in the electrification of its compounds, with charging stations at many sites across Europe.

To be even more efficient at managing compound exit and entry in 2021, GEFCO will be testing an automatic license plate recognition solution for the trucks it operates. Providing alerts ahead of time, the technology will speed up the process of entering our compounds. This creates an improved experience for the driver, together with a more efficient process for GEFCO, the fleet operator and, ultimately, the customer.

Warehouse 4.0Making warehousing flows faster, safer and more efficient is key when it comes to improving employee working conditions and avoiding mistakes. Developed from a combination of computer vision, artificial intelligence and the internet of things, robots can speed up operations by working alongside humans and automatically shutting down when necessary to avoid collisions.

GEFCO is starting to test collaborative robots to relieve workers of repetitive or difficult manual tasks and improve their working conditions. In tow tests, robots have loaded caddies at long distances, followed workers and gone straight to the loading zone when an order is complete. Employees can concentrate on picking rather than pushing or towing heavy weights. Further tests will be conducted in 2021 at different sites across Europe. GEFCO has also used augmented reality to guide workers undertaking the complex packing of certain goods, improving ease and flow.


Natural GasChoosing green alternatives for transportation

For companies and consumers alike, clean transportation has never been more important. Compressed natural gas (CNG) and liquefied natural gas (LNG) offer compelling alternatives to diesel, reducing greenhouse gas, noise and costs per mile. GEFCO has been partnering with customers, suppliers and truck manufacturers to test these green alternatives. Following trials of LNG/CNG trucks in France and Poland to measure the costs and benefits, GEFCO is now identifying routes to roll out LNG trucks.

AerodynamicsImproving truck performance through aerodynamics

Aerodynamics reduce wind resistance, which can account for as much as 40% of truck energy consumption. More streamlined trucks decrease emissions while increasing the bottom line. In several countries, including France and the UK, GEFCO is testing promising new technologies, from an automatic deflector that adapts to real-time conditions, to connected skirts for trailers.

Early Payment SchemesFacilitating suppliers’ handling of early payments to strengthen partnerships

With its asset-light business model, GEFCO has established strong partnership with its suppliers, especially road carriers. As a result, GEFCO plans to test a platform enabling road carriers to access their pending invoices, see where they are in the payment process and request early payments on-demand. Pilots will be launched in Spain and the UK in 2021.


Pavel Ilichev Executive Vice-President, Finance & Strategy

2020 PerformanceWhile none of us would wish to see a year like 2020 again, I am immensely proud of our performance and believe that few companies could have reacted with the operational and financial agility that GEFCO has shown. To deliver an operating profit and maintain healthy operating margins while experiencing a 20% decrease in revenues is a truly impressive achievement.

These results were possible thanks to our asset-light business model, our deep relationships with customers, and our fast and decisive financial management – in particular focusing on three issues across all divisions: operating profitability and cost control in purchasing, working capital management, and a selective approach to Capex.

I would like in particular to thank our employees and partners for all their outstanding efforts last year. Through close coordination we have continued to manage costs fairly and effectively whilst keeping our customers’ international supply chains functioning.

Looking forward, GEFCO is extremely well placed to support the wider economic recovery and deliver on our long-term plans. We have improved our already excellent cash generation, and have very low net debt levels with ample headroom for growth. We end this difficult year with a very healthy balance sheet and a clear strategy. Whatever 2021 brings, GEFCO will be in a strong position to handle it.


4,442

2020 Group Performance2020 has been a uniquely challenging year in both the automotive and wider logistics sectors. GEFCO’s distinguishing strength lies in its deep expertise, agility and asset-light business model, which allow the company to adapt quickly to changes or disruptions in our markets. The value of this approach has been vividly demonstrated in 2020 with GEFCO not only delivering an operating profit but doing so without a significant reduction in margins.

Many aspects of our culture and history were beneficial in responding to this crisis, including our considerable experience in designing and operating multimodal solutions. This expertise allowed us to continue finding alternative solutions when established supply chains were unviable. Our deep experience in time-critical solutions was also of benefit as customers looked to us to keep their supply chains intact.

The Group’s revenues dropped 19.7% overall to €3,805m as economies around the world halted and then readjusted to the pandemic. Whilst there was some variance across divisions, H2 showed a marked improvement in revenues across the business compared to H1. Q4 was particularly strong, with performance at par or above Q4 2019. Group recurring EBIT for the year was €140m, down from €205m in 2019 and representing an operating profit margin of 3.7% in 2020 compared to 4.3% in 2019.

At the beginning of March 2020 as the scale of the pandemic became apparent, we created a dedicated crisis management task force composed of senior management, heads of business units, country managers and client relationship managers.

This team ensured constant dialogue with customers and employees, and was the foundation for our operational success in 2020.

From a financial standpoint, we were quickly in dialogue with our global teams to introduce a range of measures to closely monitor working capital and potential debtors. We also immediately commenced a review of cost-optimisation opportunities across the business. This focused internally on reducing general procurement costs and freezing non-essential programmes, and externally on renegotiating purchasing agreements in a low-volume environment. With an extremely strong balance sheet and robust cash flows, the company required no external financial support in tackling the pandemic.

Consolidated Revenue (in €m)

1,942

624

2,081

2018

1,855

634

4,647 4,739

3,8051,952

2017

1,876 1,494

594 419

2,269

1,892

2019 2020

Total:

4 Includes RZD revenue (€7.3m in 2020)

Market Clients4

Opel Vauxhall PSA


Moreover, GEFCO’s already strong cash generation improved in 2020 with free cash flow up €70m against 2019, allowing the company to ride the challenges of the pandemic and prepare well for recovery. We were also able to continue with selective investment into the second-hand car market, in-life vehicle management and electric vehicle logistics, ensuring that we made progress towards our strategic goals.

Overall, the company ended the year in a very strong financial position, free cash flow bringing net debt below €150m vs. €348m at the end of 2019, and offering considerable headroom to pursue opportunities as economic growth returns.

We were pleased to continue diversifying our customer base, with revenues from our Market Clients segment (customers outside GEFCO’s historical Groupe PSA business) accounting for almost half of our sales for the first time.

The benefits of an increasingly diversified business were visible across the Group, with non-automotive customers helping to compensate for the market downturn in automotive, and the countercyclical nature of our Air & Sea, warehousing, and reusable packaging offerings also performing well.

The final quarter of 2020 showed marked improvement over the preceding months with supply chains significantly less disrupted in the second wave of the pandemic compared with the first, and customers keen to rebuild and rebound as soon as possible. In combination with the success of the company’s cost control measures, this led to higher operating profit and margins in H2 2020 than in H2 2019, delivering €103m of recurring EBIT against €87m in the prior year. While we expect markets to remain disrupted in 2021, we look forward to a better year as we continue to deliver integrated global supply-chain solutions and play an essential role in the global recovery.

5 IFRS 16 implementation from 1 January 2018, excluding valuation of minority put and call option debt6 Refers to Return On Capital Employed, calculated as Recurring EBIT over average capital employed (Trade Working Capital + Goodwill + Intangibles + PP&E). Excludes leases

(IFRS16 and IAS 17) for comparability purposes.

Recurring EBIT (€m) and Recurring EBIT margin (%)

Net Financial Debt5 ROCE6

Post IFRS 16 Pre IFRS 16

2019

34.1%

2018

31.4%

2017

31.0%

2020

25.1%

2020201920182017

87

H2

H2

103

205

140160

139

4.3%

3.1%3.4%

3.7%

2020201920182017376921

-159

348

149

318

28


2020 Division PerformanceFinished Vehicle Logistics (FVL)GEFCO’s FVL division was significantly affected by reduced volumes in the first half of 2020, in line with the wider slowdown in vehicle manufacturing. IHS Markit Automotive reported a 22% drop in European production in 2020, with consumer purchases and leases delayed, corporate fleets frozen and car-hire companies facing their most difficult year ever.

FVL’s top-line performance followed this fall, also decreasing by 22% to €1,546m. Behind this figure we were pleased to maintain our #1 position in Europe, and continue adding customers in Europe and around the world.

The fast onset of lockdowns across Europe brought complications, with factories closed at short notice, compounds full and oversupply in some areas such as spare parts. Restarting manufacturing in this context required significant understanding and expertise, and we are proud of our operational performance in this regard.

Reduced volumes were partially offset by the implementation of new routes as manufacturers altered their flows to send vehicles to the least affected global markets. The end of the year also showed better-than-expected performance for FVL, with fourth-quarter revenues recovering and remaining largely unimpacted by the second wave of the pandemic.

Overland & Contract Logistics (OVL & CL)The Overland & Contract Logistics division faced significant reductions in volumes in the first half of the year, with extremely low activity in March, April and May. We remained active throughout the period supporting customers as they rebuilt their supply chains in the second quarter, with our time-critical solutions team enabling the transport of 750 tonnes in the first two months of the quarter, demonstrating the value of our deep relationships with clients and ability to achieve deliveries on time in any context.

The market for full truck loads (FTL) and less than truck loads (LTL) recovered well in Q4, with volumes for the quarter only slightly behind 2019 levels. Groupage was more affected by the second wave of the pandemic, but this was partially offset by our purchasing optimisation, a strong performance from our time-critical solutions team, and our strengths in Europe-Africa channels. Our contract logistics performance was also robust as we worked with customers to ensure that their warehouse stock was managed in a cost-effective way.

Overall, the division saw revenues for 2020 drop by 19.7% to €1,828m, with tight control of costs and purchasing allowing us to deliver an operating profit at similar margins to 2019.

Revenue (€m) Revenue (€m)

2017

1,772

2018

1,869

2019 2020

1,979

1,546

2017

2,147

2018

2,237

2019 2020

2,278

1,829


Air & SeaWhile still affected, the freight-forwarding industry was less impacted by the pandemic than other logistics sectors as a result of lower exposure to lockdowns. Although volumes decreased in the first half of the year, this result was somewhat balanced by significant flows of Personal Protective Equipment (PPE) from China to Europe and North America, which added around €10m in revenues. Global supply-chain capacity across both air and sea saw significant variability throughout the year and the division did an excellent job in a reactive environment.

Volumes recovered significantly in the second half, but the fourth quarter in particular saw large increases in sea freight costs as the world’s container stock accumulated in the major import markets of Europe and North America, leaving comparative scarcity of available containers in Asia. Full year revenue reached €340m, up 1.6% on 2019.

We were also pleased to open our new Air & Sea hub in the Netherlands close to Amsterdam’s Schipol Airport, adding significant capabilities for dangerous or temperature-controlled goods and time-critical services.

Industrial ServicesThe Industrial Services division was restructured in 2020 as Groupe PSA decided to internalise the light assembly business at the end of 2019, with all assets and employees transferring to PSA.

GEFCO’s Reusable Packaging Services (RPS) business faced unique challenges with customers often unable to reach inventory, and many of GEFCO’s boxes remaining in warehouses for an extended period of time. We worked with customers to find an equitable solution to this new problem.

The downsizing of the division saw revenue decrease by 38.3% to €90.8m, alongside a significant improvement in operating margins. On a like-for-like basis, revenue for the year was down by only 12.2%.

Revenue (€m) Revenue (€m)

2017

407

2018

410

2019 2020

334 340

2017

116

2018

131

2019 2020

147

91


Emmanuel Arnaud Executive Vice-President, Sales & Marketing

GEFCO: Partners, unlimitedI would like to sincerely thank our customers for their commitment to GEFCO in 2020. Your continued trust in GEFCO inspires and sustains our Partners, unlimited spirit. I would also like to congratulate all the GEFCO teams who have delivered outstanding performance in these most challenging times.

Open communication and cooperation with our customers continue to be our focus. Agility and courage, coupled with solid troubleshooting skills, were keys to our success in 2020. Our global network rallied to find alternatives to keep supply chains operating, and I am proud of what we have achieved. This is particularly true for our Air & Sea business, which was at the frontline, delivering valuable Personal Protective Equipment (PPE) equipment from Asia to Europe.

GEFCO’s 70-year heritage in the automotive industry provides us with unique skill in managing complex supply chains. In 2020, this expertise enabled us to quickly make crucial decisions during the COVID-19 pandemic with customers around the world. Our Control Tower expertise was in high demand for major electronics and energy companies transporting critical communications equipment and fuel.

The pandemic accelerated many trends in the automotive business-to-business and business-to-consumer markets, including the shift to cleaner fuels and customised services. GEFCO is pleased to support these trends. For example, our Moveecar brand offers single or multiple car transport and remarketing services to mobility players in the used-car market through a new app. Within consumer retail we saw an unprecedented explosion in online sales, and accordingly we expanded our workshop activity to equip 10,000 delivery vans for a customer serving the world’s leading e-commerce retailer.

We continue to push back the boundaries for many customers, which has set us on a course for future success. Our joint venture company in Saudi Arabia celebrated its first anniversary in 2020 and we added several top automotive brands to our customer roster, despite headwinds from COVID-19. In the UK we began working with electric car subscription service, Onto, to provide smart repair services and delivery to and from our four Finished Vehicle Logistics (FVL) compounds. We are also working with LEVC to provide EV conversions and deliveries to prospective fleet clients in the UK and were awarded a long-term contract with a leading US multinational specialising in science-based technologies to support their operations in the UK.

In a year of challenges, obstacles and adaptation, GEFCO’s multimodal offering and Infinite Proximity culture have ensured that our customers’ supply chains have continued to flow.


C A S E S T U D Y

GEFCO Air & Sea Rises to the Challenges of COVID-19For GEFCO’s Air & Sea division, the expert provision of urgent global deliveries is in our DNA, whatever happens in the world. The team has continued to grow and evolve as time-critical logistics have become more important to the day-to-day functioning of global business. GEFCO’s long history of delivering multimodal solutions is a key asset in maintaining flexibility in a crisis, but the pandemic still presented some real challenges for the team to overcome.

Throughout the year, we worked with partners from across the globe and around the clock to provide speedy, regulation-compliant solutions. This included everything from urgent shipments of vital supplies from China to the UK for one of the largest manufacturers of first aid products and Personal Protective Equipment (PPE), to the delivery of 50 million medical masks to Australia for a leading provider of supplies for frontline health services.

At times, the most effective solution is an unconventional one. An early assignment for PENTA shortly after the onset of the virus in March saw GEFCO secure specialised charter flights from Shanghai to Bratislava to help tackle COVID-19 in Slovakia and the Czech Republic. The deliveries used two Boeing 787 planes, which were temporarily converted to cargo format and loaded with more than 64 tonnes of medical supplies. The team consolidated the cargo from seven different suppliers in China, organised all the export documents and coordinated the dispatch by two charter flights to Bratislava, all in record time.

Elsewhere, we offered critical support to our long-term customer Hillrom, a European manufacturer of medical devices and surgical equipment. A dedicated GEFCO Control Tower in Rennes, France, coordinated and tracked deliveries of more than 1,000 beds, air mattresses and other accessories from Hillrom’s production plant in Pluvigner to medical centres, clinics and hospitals in France, Germany, Italy, Spain, Switzerland and the United Kingdom.


While medical supplies were clearly crucial, our work extended far beyond the pharmaceutical industry to a huge range of supply chains that are crucial to the smooth running of the global economy. Following the partial closure of car manufacturing plants across Europe at the beginning of the pandemic, GEFCO transported over 750 tonnes of key automotive spare parts including turbo compressors, pistons, control panels, doors and mouldings from China to Europe in eight chartered flights, with additional next-flight-out solutions from Morocco, South America and Mexico to Europe to prevent production stoppages.

Our teams in China and France operated together across airfreight, warehousing and road transport to support our customers with time-critical shipments. It was a showcase of our Partners, unlimited ethos.

We approach all problems with a multimodal mindset, and while air transport proved to be vital for many of our shipments, we also secured one of the first block trains to travel from Wuhan since the COVID-19 global crisis began. This door-to-door solution, which included all necessary pre- and post-carriage arrangements for road and rail, saw the delivery of 500 tonnes of key automotive spare parts over a 10,000 km route across seven countries: China, Kazakhstan, Russia, Belarus, Poland, Germany and finally France. This particular block train from China to Europe also ensured a 4,500-tonne reduction in CO2 emissions compared to an equivalent air solution.

“The crisis has seen our teams reach even greater heights in their ability to adapt, collaborate and work in very close partnership with our customers to overcome all manner of challenges.Our message in these situations is clear: whether by plane, train, road or sea, we will identify the most effective routing and timing to match the goods and navigate the customs operations and document management required to ensure their safe delivery.

We’ve been very proud to support our customers’ crucial work while ensuring the safety of our own employees.”

Paul-Henri Fréret Executive Vice-President, Air & Sea and East Asia

2020 represented the biggest test to date for the modern global transit model for goods and services. While there is still a long road ahead of us, we will continue to go that extra mile for all of our customers. In the eye of a storm – whether global or isolated – we strive to act as the calm conductor, finding the solution, delivering it quickly and ensuring a human touch.


C A S E S T U D Y

Supply Chain Harmony for Westcon: GEFCO’s Control TowerSupply chains have become more complex and therefore subject to greater disruption from smaller obstructions. Global technology distributor and long-time GEFCO customer Westcon International needed our support to manage every step of its shipping process and provide live status updates on their critical cargo.

As a supplier of tools for homeworking, infrastructure for national, regional and global telecommunications, and even key technologies for hospitals, Westcon required an end-to-end solution to guarantee the safe delivery of its products.

GEFCO’s Air & Sea division met this need with a Control Tower solution that ensured safe delivery of goods, management of every step of the shipping process, and live status updates.

GEFCO’s Control Towers, such as the one we operate for Westcon, ensure that people, processes, data and organisations throughout a supply chain work in harmony and are fully supported by a set of technology-enabled capabilities for transparency and coordination. Through a dedicated team, we can plan, measure and execute actions to manage every shipment moment to moment.

We operate a number of control towers for customers such as Westcon, the majority on an international basis. Since the beginning of the COVID-19 outbreak, these towers have enabled our teams to guide and reassure their customers and troubleshoot their problems. Our ability to continue this work seamlessly through operational changes such as the move to homeworking has been a testament to the skill and experience of teams across GEFCO.

“At its heart, a control tower represents everything that is fundamental about supply chain management – visibility, expertise, efficiency and, above all, a willingness to get inside a customer’s business and understand their challenges. Ultimately our control tower delivered the much-needed end-to-end solution that Westcon required to guarantee the safe delivery of technology vital to the COVID-19 response. GEFCO has provided these solutions for some of our largest customers for many years now, but the communication, reporting, end-to-end visibility and strong local knowledge provided by a control tower has never been more significant.”

Cyril Lefebvre Director, Sales & Marketing, Air & Sea


C A S E S T U D Y

Almajdouie and GEFCO Meet Saudi Arabia’s Growing Automotive DemandWith a population of over 30 million and a rapidly growing consumer market, Saudi Arabia is quickly becoming a major hub for the Middle East’s automotive sector.

In 2017, Almajdouie Logistics and GEFCO started managing automotive logistics for the Hyundai and Changan brands in Saudi Arabia. This successful collaboration evolved into a 50-50 joint venture in September 2019 and has quickly become a leading provider of automotive supply-chain solutions in Saudi Arabia.

Combining Almajdouie’s leadership in the local market with GEFCO’s 70+ years of expertise in automotive solutions, the joint venture offers end-to-end and integrated supply-chain solutions, including transportation, spare parts distribution and customs clearance.

With 100 employees, the joint venture also provides a range of value-added services: storage and maintenance, preparation, customised post-production operations and pre-delivery inspection, reusable packaging and warehousing.

In November 2019, a leading car manufacturer chose Almajdouie-GEFCO to distribute finished vehicles in Saudi for the next five years. The joint venture now manages custom clearance at the ports of Jeddah and Dammam, and transportation from port to compound, relying on its local capabilities and a network of partners.

“Despite COVID-19 and the related dip in automotive sales in Saudi Arabia, the joint venture grew its business in 2020 and added many top brands to its portfolio. Much of our work has been carried out remotely due to COVID-19 restrictions, and we’ve been delighted with our customers’ continued trust in our ability to manage their business under unique circumstances.”

Stefano Pollotti General Manager, GEFCO Turkey and Middle East

The introduction of VAT in Saudia Arabia on July 1 prompted a rush to buy cars, resulting in a peak of activity for Almajdouie-GEFCO in June. In addition, General Motors and another leading car manufacturer selected the joint venture to support their automotive businesses in the region. Also in 2020, Al Jomaih, the official importer of General Motors in Saudi Arabia for Chevrolet, Cadillac, GMC and GAC Motor, chose Almajdouie-GEFCO to manage the transportation, storage and distribution of finished vehicles. More recently, the partners began spare parts distribution for Hyundai, Peugeot and Changan brands in Dammam.

Almajdouie-GEFCO will continue to play a major role in the automotive logistics market, thanks to the two groups’ expertise in providing reliable supply-chain solutions. The joint venture looks forward to expanding its Finished Vehicle Logistics (FVL) activities in Jeddah and other areas in the future.


C A S E S T U D Y

GEFCO Germany Leverages Rail and Overland for Energy and Chemical Industries EnergyIn January 2020, GEFCO began a three- year partnership with a leading oil and gas company to transport up to one million tonnes of main fuels and other mineral oil products by rail from Germany to other European countries.

The company has entrusted GEFCO’s Control Tower experts with the transportation of 210 trains a year from Stendell, additional transport from Hamburg, and spot trains from Bremen, Karlsruhe, Magdeburg, Neustadt, Speyer and Vohburg. Three GEFCO employees manage operations and proactive communications from a dedicated Control Tower, in addition to a dedicated rail team of four people handling sales, procurement and other operations from Berlin.

Special precautions are required when moving hazardous goods such as fuel to observe extremely stringent local and international regulation for each mode of transportation. With its Partners, unlimited approach, combined with proven experience in Control Tower Management and the transportation of hazardous goods, GEFCO has been able to guarantee the company an effective and efficient rail service to meet its needs.

ChemicalIn 2020, one of the world’s largest plastics, chemicals and refining companies expanded its partnership with GEFCO to overland solutions in EUROMED/CEBAME. Since then, GEFCO has transported more than 48,000 tonnes of butane, propylene and liquid gas annually by rail in compliance with regulations on the International Carriage of Dangerous Goods by Rail (RID).

In addition, GEFCO has continued providing block trains from Germany to Poland and the Czech Republic to transport 55,000 tonnes of butadiene, propane and liquid gas annually, also in compliance with RID. This initial contract, which includes additional services such as customs formalities, routing and parking, started in 2016.

A dedicated Control Team in Berlin provides proactive communications with the customer 24/7. GEFCO has also signed agreements with all Germany’s state-run rail companies and maintains strong relationships with private rail companies to ensure the best possible conditions for our customers’ cargo.


C A S E S T U D Y

Enabling the New World of MobilitySolutions for the Electric Battery RevolutionDespite the slowdown in the wider automotive market, electric vehicles saw very strong growth in sales over 2020. Environmental concerns and stricter emission standards combined with higher fuel taxes and government incentives are driving the auto industry to double down on production, and consumers are showing no signs of slowing. The market share for EVs is expected to reach 29% in 2026, and supply chains will need to adapt.

With many OEMs and Tier-1 suppliers moving swiftly to produce or supply electric vehicles, GEFCO laid the foundations in 2020 for a unique end- to-end battery logistics offering. This meets demand for an in-depth knowledge of the products, and trained staff with specific certification ensure supply-chain excellence. With its expertise in complex supply-chain solutions, GEFCO is partnering with EV manufacturers to support their transformation through compliant, innovative, agile and scalable solutions that include inbound, outbound, aftermarket and end-of-life battery management.

For many years, GEFCO has been transporting EV batteries by rail from China to the rest of the world. And the company is currently equipping all its vehicle compounds with charging stations to manage increased demand for finished EV logistics. Today, GEFCO is partnering with LEVC to provide EV conversions and deliveries to prospective fleet clients in the UK.

Moveecar for In-Life Vehicle ManagementAutomotive retail models are in the midst of a significant evolution. All major industry players are increasing multi- channel sales and marketing routes for new and used vehicles, as well as developing mobility offers.

GEFCO created Moveecar, its in-life vehicle brand, to manage a full range of services from a car’s first registration to the end of its life via a dedicated digital platform. Moveecar’s integrated services include transport and storage, refurbishment and maintenance, inspection and appraisals, as well as car care and administrative services, building on GEFCO’s expertise and professional partner networks.

In 2020, Moveecar added several top car manufacturers and vehicle leasing or fleet management companies to its customer portfolio. For example, Moveecar is transporting urban EV vehicles from Groupe PSA’s factory in Morocco to France, personalizing them to customer specifications and providing home deliveries.

In Brazil, Moveecar is refurbishing cars for Unidas, a Brazilian vehicle leasing and fleet management company, and in Shanghai, Moveecar is delivering Polestar’s EV cars directly from compounds to owners’ homes and service centres. GEFCO is also working with electric car subscription service Onto to provide smart repair services, car collection and delivery, vehicle swaps and de-fleeting services.


C A S E S T U D Y

GEFCO Opens One of the Largest Warehouses in Poland In Psary, Lower Silesia, GEFCO Poland opens its largest warehouse yet and one of the country’s largest facilities dedicated to the automotive sector, measuring more than 42,000 m2. This newly built facility GEFCO will operate the global distribution center for Mahle, a world-leading supplier of engine systems and components. The new facility has a footprint the size of almost six football pitches, and contains almost 35km of IT cabling to support our services.

GEFCO will supply tailored logistics solutions from this purpose-built warehouse through a five-year contract. For inbound operations, the new facility will gather goods from different continents, including Asia and South America.

Meanwhile, for outbound logistics, the warehouse team will ensure fast deliveries to destinations in Poland and other countries, with 24-hour deliveries to almost every location in Germany – a key market for Mahle.

To run the warehouse, GEFCO Poland has recruited around 100 new employees, including forklift operators and order pickers, increasing its staff by 20%. This latest contract makes GEFCO one of Mahle’s top five logistics operators in Europe and reinforces its expertise in customized supply chain solutions.

An impressively large warehouse!

■ Total surface area: 42,060 m2 or the size of nearly six football pitches

■ Total height of all forklift masts: 300 m or the height of the Eiffel Tower

■ Total length of IT cables: 35 km or the length of the Boulevard Périphérique in Paris

■ 100 employees


Operations Excellence and SustainabilityGEFCO has significantly retooled its organisation with a brand-new division, Operations Excellence & Sustainability (OES). Switching from a compliance approach to concrete and practice-based action plans, the Group aims to deliver continuous quality at the right cost with tailor-made sustainable solutions designed to ensure the highest level of customer satisfaction.

OrganisationThe department has a two-fold objective: to guarantee continued operational excellence and promote sustainable supply-chain solutions.

To achieve this ambition, the OES division relies on best-in-class experts in corporate social responsibility and carbon emissions. Their role is to explore and evaluate high-potential solutions that combine quality and reliability with the lowest impact on the environment. In 2021, the team will also launch GEFCO’s CO2 emissions strategy with the objective of providing cleaner and greener supply-chain solutions worldwide.

The OES division has focused on operational excellence, in line with our standards and culture. Quality assurance, operations quality, operational KPIs and quality application are the four pillars of OES’s mission, together with the deployment of lean management at both corporate and country levels.

Management of the COVID-19 pandemicThe OES division has been at the forefront of GEFCO’s response to the pandemic. Relying on a strong health and safety expertise, the team has assessed the entire operation, particularly its production lines, to protect all GEFCO employees across the world and make sure they can work safely on production sites and offices. Specific health rules and guidelines have been defined and audited on a regular basis to monitor implementation at every level of the company.

The Group supplied GEFCO countries with proper protective equipment (including masks, hand sanitiser and gloves when necessary) until they found local sourcing. In the meantime, millions of face masks were also supplied to different customers, avoiding any damage even through supply chains were under strain. GEFCO’s Air & Sea division notably supported customers in shipping crucial Personal Protective Equipment (PPE) equipment from Asia to Europe during the crisis.

Thanks to this proactive strategy, GEFCO has not detected any COVID-19 clusters on business sites. OES continues to monitor the evolution of the pandemic closely and refine the existing rules and guidelines where necessary.

“Compliance with our heightened safety standards and close collaboration with our customers to understand how to adapt to the new working environment were key to the success of our operations in this difficult environment. We are proud to have overcome this unique challenge and will put all our energy into continuing this work in the coming months.”

Anne-Brigitte SpitzbarthVice-President, Operations Excellence & Sustainability


Our People, Our cultureOur CultureInfinite Proximity: This is GEFCO’s DNA – the shared values and unique mindset that create our company culture. The concept was the outcome of an 18-month review of our company, which highlighted the importance GEFCO’s employees, partners and customers place on our close, caring and cooperative working relations. This unique corporate culture is reflected in 10 principles that guide our behavior and decision making.

Looking After our EmployeesGEFCO’s Reward and Recognition Framework is central to providing attractive working conditions. It is represented by three Cs:

■ Caring – Looking after our employees through retirement plans, health insurance, flexible working schedules and home office options. For senior drivers, we actively promote daytime working schedules.

■ Contribution – Recognition and reward for effort and achievement, for both individuals and teams.

■ Competitiveness – Ensuring we remain competitive in terms of responsibilities and remuneration

Helping Them GrowOur company-wide training programme, GEFCO University (G&U), makes GEFCO a great place to build a career: in 2020, GEFCO consolidated training for all employees onto a digital platform, available anytime, anywhere, on any device. Launched in 2018, G&U incorporates more than 16 academies, each of them offering a blended learning plan through online classroom and community activities. Those academies allow our employees to accelerate their development and build their own career plans through supported mentorship.

■ The Innovation Academy promotes an innovative mindset across GEFCO and reinforces the support available for entrepreneurial development.

■ The Project Manager Academy formalises our know-how on project management, improving project managers’ competencies across the company.

■ The GEFCO Fundamentals Academy builds capacity in business compliance skills such as anti-trust, anti-corruption and anti-bribery, export risks, data protection, health and safety.

■ This year, GEFCO has created a specific Electric Vehicles (EV) Academy to support the roll-out of GEFCO’s brand new EV offer with a specific training programme designed to bring all employees up to date on the market.

As an asset-light business, GEFCO’s human capital is the principal source of our value. Talent attraction, retention and development is key to the company’s success. In 2020, GEFCO has continued to promote its unique “Infinite Proximity” culture to make the company an attractive place to work in the long term. We were therefore delighted to be awarded the Happy Trainees label for the third year in a row.

“In 2020, the unprecedented impact of the coronavirus on the global economy and particularly on logistics flows has severely challenged our business and human capabilities worldwide. However, thanks to our employees’ exceptional commitment everywhere around the globe, we have pushed the boundaries, proving to be resilient and agile enough to serve our customers and help them navigate the crisis, true to our Infinite Proximity culture.”

Stéphane MilhetExecutive Vice– President, Human Resources

“GEFCO University (G&U) is a powerful and flexible platform that allows us to constantly adapt to the needs of the company and its employees. In March, as the COVID-19 crisis started to hit our different markets, we delivered more than 100 items of new content on the G&U platform promoting self-care and stress-management to our employees, while helping them to be productive when working from home.”

Virginie OuterovitchDirector, Group Talent

30 2020 Annual Report GEFCO Group30 2020 Annual Report GEFCO Group

Talent AcquisitionOur talent acquisition philosophy incorporates four pillars:

■ Transparency: to encourage employee ambition and promote internal mobility we give internal colleagues access to all open positions.

■ Visibility: to attract the best talent, we strive to improve our visibility in the job market.

■ Efficiency: we ensure we are professional and courteous with all our candidates.

■ Assertiveness: our employer branding is the combination of all the above, ensuring GEFCO is recognised as a great place to work.

Diversity and InclusionStrength in diversity: We actively promote gender diversity and equal opportunities, and avoid discriminatory practices in recruitment, training and career development. We believe diversity provides both a rewarding working environment and a competitive edge.

The company has signed a binding commitment to gender equality. In France, GEFCO France SASU and GEFCO SA have also signed ‘generation contracts’ ensuring the adaptation of roles for seniors, with daytime schedules and training for operators in the use of office tools. We proactively recruit and promote people with disabilities, and in France, GEFCO has had a specific disabilities strategy since 2008. More than 7% of our French employees have disabilities.

Managing the COVID-19 Crisis for our Colleagues The COVID-19 crisis has come without a roadmap. The different restrictive measures put in place by many countries around the world, such as lockdowns and curfews, have led many industrial sites, including ours, to close fully or partially. The lack of visibility has been an ongoing challenge.

Yet, the pandemic has affected the way we are working together as a team. Where possible, we have used agile working and we expect this to continue. More than ever, we must ensure connections between people. Our Infinite Proximity culture is a powerful tool in meeting that challenge.

10 PRINCIPLES THAT GUIDE OUR BEHAVIOUR AND DECISION MAKING

Innovate Integrate On Demand

Design Lasting Cooperations Explore

Commitment To A Global Network

Infinite Proximity

Strong Partner

Flexible & Knowledgeable Pool Of People

Growth & Long term Profitability

“Thanks to the communication tools we put in place in early 2019, we have been able to continue working smoothly despite these restrictions, and we are confident we will be able to continue our activities in the coming months.”

Sophie BaudouxExecutive Vice-President, Information Systems

“It’s important for our employees and the business as a whole to keep wellbeing at the top of our priorities. During the lockdown, we have set up various initiatives to support our employees, such as a podcast series, which includes: Leading with empathy: the positive lessons we learned during COVID-19 and Maintaining your mental health in lockdown. We are determined to preserve social ties between people, true to our Infinite Proximity culture.”

Helen GroverHead of Human Resources, GEFCO UK

Increase Trust


SustainabilityGEFCO takes its role as a responsible business very seriously, and we see the global transition to a low-carbon economy as a significant opportunity for our company as customers increasingly focus on green supply-chain solutions. Our asset-light business model, culture of innovation and multimodal offering means we are well placed to quickly respond to the changing requirements of the market, growing our business while reducing the carbon intensity of our activities.

Combatting climate change is an important pillar of our sustainability strategy, but our approach to operating responsibly is much broader than a reduction of GHG emissions.

In 2020, GEFCO conducted a materiality assessment to identify the impacts of a range of sustainability issues on the company, as well the effects on as our partners, customers, employees, and the communities in which we operate. These material issues were translated into eight commitments, aligned with the UN’s Sustainable Development Goals, which GEFCO is using to structure its approach.

Following on from this exercise, 2021 will see GEFCO launch an ambitious new sustainability and CO2 strategy, aligned with both the UN SDGs and with Science Based Targets criteria. This will set a course for GEFCO and its partners for the next ten years, and will focus on avoiding emissions rather than offsetting them.

For more information on our sustainability activities, please see GEFCO’s dedicated Sustainability Report.

Our Eight Commitments

The United Nations Sustainable Development GoalsThrough these commitments, GEFCO has pre-identified its contribution to seven of the SDGs as explained below. The relationships between the commitments and the SDGs are explained in the following pages.

6 Manage our sites’ impacts Associated risks: resource efficiency, environmental

externalities

5 Reduce our global emissions Associated risks: CO2 emissions,

transport pollution

8 Protect our health and safety Associated risk: health, safety

and security

7 Help our people grow Associated risks: employee

engagement, talent management

1 Conduct business fairly and ethically Associated risk: fair business, ethics

and compliance

2 Manage our supply chain responsibly Associated risks: duty of care, sustainable

purchasing

€3 Lead and engage our stakeholders Associated risks: leadership and

governance, engaging with stakeholders

4 Innovate and digitalise Associated risks: innovation and digitalisation,

cyber-security and data protection

32 2020 Annual Report GEFCO Group32 2020 Annual Report GEFCO Group

https://www.gefco.net/en/about-us/csr/

GEFCO.net

GEFCO 20-22 rue Jean Jaurès 92815 Puteaux Cedex, France+33 (0)1 49 05 21 21

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