gefco annual report final 18 · allows gefco to deliver industry best-in-class returns on capital...

AnnualReport2018

1. Chairman’s Letter 04

2. Governance & Shareholders 06

3. Company Overview 08

5. GEFCO’s Business Model 14

4. Partners, unlimited 12

6. Company Achievements 18

7. Strategy & Business Development 24

8. Innovation 30

9. Excellence & Commitments 32

Contents

Morocco-Europe GatewayCrisis management in France

Heavy machinery logistics in LATAMRail Silk Road in Asia

26-27 28-29

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GEFCO is a world leader in complex supply chain solutions and the European leader in automotive logistics.”

Chairman’s Letter

Chairman’s Letter

It is my pleasure to welcome you to GEFCO’s 2018 Activity Report. This year marks six years since Groupe PSA sold the controlling stake in GEFCO. Our journey so far is marked by a determination to broaden the industries we serve, to expand into new territories and to build new partnerships. Along the way, GEFCO has created a powerhouse brand and forged a unique corporate culture based on creating Infinite Proximity™ relationships with all stakeholders.

Highlights

2018 has been a successful year for GEFCO on many levels. The Group’s expertise in automotive logistics continued to generate robust sales of value-added services to customers, while also expanding further outside our automotive core.

New opportunities with top customers

We continued to serve our historical customer, Groupe PSA, with integrated logistics solutions globally. For example, we have expanded our partnership to support their new Kenitra plant opening in Morocco and in India, GEFCO is providing logistics services to Groupe PSA’s centre of excellence in Chennai.

We are extremely pleased to have renewed a four-year contract with Opel-Vauxhall for managing all inbound and outbound logistics for the brands in Europe and Turkey. This contract renewal demonstrates the strength of our partnership and the continued trust that Groupe PSA has placed in GEFCO.

Expansion of the automotive business and diversification into non-automotive business

GEFCO increased its Market Clients sales (sales excluding our historical automotive customers) by 6.7% (11.1% excluding FX and acquisition impact) welcoming a variety of new automotive and additional blue-chip customers from FMCG, healthcare and aeronautics industries in our portfolio.

Our robust expertise in integrated logistics allows us to build reliable, flexible and cost-effective solutions around our customers’ specific needs, delivering above market turnover growth.

Luc NADALChairman of the Management Board

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Chairman’s Letter

Geographic expansion

GEFCO has a strong history of international expansion to meet customers’ needs for new countries or new routes. Thanks to our flexible business model, we are able to develop quickly and in multiple geographies. We recently opened a GEFCO subsidiary in Chennai, India, to meet the growing needs of our customers.

Acquisitions and alliances

GEFCO also expanded inorganically in several regions. In Spain, GEFCO acquired GLT, the Europe-Morocco transport specialist to strengthen our position and expertise in the region. The Group signed a joint-venture agreement with Spanish car importer Bergé to merge the two companies’ finished vehicle logistics businesses in the country. GEFCO also announced another joint venture in automotive logistics with Almajdouie Logistics in Saudi Arabia. This partnership supports GEFCO’s growing presence in the Gulf, a region in which we have been delivering supply chain excellence for many years.

Flexible and asset-light business model

GEFCO remains deliberately asset-light, choosing to own and invest in strategically important assets (such as railcars and compounds) only when they convey a competitive advantage or increase our flexibility. Instead of owning our transportation assets, we rely on flexible, selected third-party carriers. With this asset-light model, GEFCO has a small fixed-cost and a large variable-cost component making it more agile and resilient over business cycles. This also allows GEFCO to deliver industry best-in-class returns on capital employed.

Innovation

2018 has been a transformative year for innovation at GEFCO as the company paves the way for long-term growth and prepares for coming changes in technology and customer demands. Our holistic approach to the future encompasses internal and external strategies to place innovation at the company’s cultural core.

We signed a partnership with Techstars, a worldwide accelerator that enables us to collaborate with cutting-edge start-ups to transform the industry. We also launched GEFCO Innovation Factory with a goal to drive a culture of innovation internally, empowering every employee to invent and explore innovative ideas. We also received an innovation award at the well-known Automotive Logistics exhibition in Germany for our My Car is There app, offering single car transport solutions.

Our people and brand

GEFCO’s focus on building Infinite ProximityTM relationships with all stakeholders continues to drive our unique company culture.

Our new Partners, unlimitedTM brand signature was successfully launched in 2018 and has had a tangible impact on our employees and on the development of our business worldwide.

GEFCO was ranked among the top 5 companies worldwide for excellence in apprentice onboarding. We are proud to have received a Happy Trainees label and continue to believe in and nurture the new generation at GEFCO.

Company performance

2018 further demonstrates our success in focusing on profitable growth. In 2018 our consolidated revenue reached €4.6bn, up 4.6% compared to 2017 (+7.9% on a like-for-like basis) and we achieved a recurring EBIT of €160m, a 15% increase over last year.

Our strong performance reflects our continued efforts to offer value-added services to our customers such as time-critical solutions while implementing a broad range of operational improvement initiatives.

Our topline growth has benefited from the good performance of Groupe PSA and the expansion of services such as time-critical or light-assembly solutions.

I am also very pleased with the continued strong performance in our Market Clients segment, driven by both new auto and non-auto customers, and continued cross-selling to existing customers. We also achieved more than 10% growth on key account customers, on which we have a dedicated focus, demonstrating the success of our sales and marketing strategy to provide customers with an integrated proposition.

Overall, all divisions generated strong growth, notably Finished Vehicle Logistics (FVL), allowing us to grow again faster than the market.

GEFCO’s excellent financial profile, with very low leverage and strong cashflow, allows us to make decisive strategic moves when the right opportunities arise.

Future growth and strategy

Within the automotive industry there are significant changes just over the horizon. Our unique expertise in working extremely closely with OEMs means we are well-positioned to take advantage of these enormous opportunities (hybrid and electric vehicles, shared mobility, autonomous driving, etc.) while still focusing on profitable growth.

The Group’s growth strategy is focused on several pillars that have proven successful for driving the company’s above-market growth over recent years and is supported by our approach to innovation and our ability to make selective acquisitions.

Within Finished Vehicle Logistics, we aim to maintain our leading position in Europe and become a global leader by leveraging our existing relationships while expanding our geographic presence. We are also extending these relationships into inbound and adjacent logistics segments, becoming more embedded in our customers’ value chains.

Beyond the new vehicle market, there is also a natural expansion for us into the used car market offering a range of services for a car over its lifetime, from first ownership to scrap.

Outside of the automotive market, we will continue to use our expertise in complex logistics to expand into other industries with similarly complex requirements. We will also be expanding geographically, mostly organically as our customers and prospects expand their own supply chains, into fast-growing regions for instance.

GEFCO’s strong balance sheet also gives us the capacity to expand through selected acquisitions, focusing on strategic FVL additions or highly selective opportunities to bring in new geographies, technologies, or capabilities.

I would like to sincerely thank all our employees, our customers, our shareholders and our other stakeholders for their efforts and partnership during this year.

70 years of excellence

With 70 years of expertise, GEFCO continues to rise to the most demanding supply chain challenges to create smart and flexible solutions and go the extra mile to ensure that every solution offers value for our customers.

Together we continue to build on solid foundations for a strong and bright future.

We look forward to another year of robust performance.

I hope that you enjoy the rest of this report and look forward to speaking with you soon.

5

Governance & Shareholders

Membres of the Management Board

Other key managers

Executive Vice-PresidentAsiaJoined in 1998

Paul-Henri FRERET

Executive Vice-PresidentFranceJoined in 2013

Emmanuel DELACHAMBRE

Executive Vice-PresidentSales & MarketingJoined in 2004

Emmanuel ARNAUD

Executive Vice-PresidentAir & SeaJoined in 2016

Anthony GUNN

Executive Vice-PresidentITJoined in 2018

Jean-Luc GALZI

Executive Vice-PresidentEurope Middle East and AfricaJoined in 1989

Pierre-Jean LORRAIN

Executive Vice-PresidentFinance & StrategyJoined in 2015

Pavel ILICHEV

Executive Vice-PresidentFVL, OVL, IS(1)

Joined in 2015

Emmanuel CHEREMETINSKI

(1) Finished Vehicle Logistics, Overland and Contract Logistics and Industrial Services


GEFCO is governed by a Management Board and an Executive Committee responsible for implementing Group strategy and overseeing the quality and added value of our projects for customers, shareholders and employees. The Management Board is composed of five members. The Executive Committee is composed of 12 members and is chaired by Luc NADAL, Chairman of the Management Board.

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Balanced, strategic oversight

The Supervisory Board is responsible for control functions and is composed of 13 members representing the GEFCO Group’s two main shareholders: RZD Russian Railway Company and the Groupe PSA.

Executive Vice-PresidentCorporate CommunicationJoined in 2017

Susan MARRO-FOURNIER

Executive Vice-PresidentPSA Client & 4PL solutionsJoined in 2016

Anne LAMBUSSON

Supervisory board(2)

Executive Vice-PresidentHuman ResourcesJoined in 2013

Stéphane MILHET

GEFCO Group was created in 1949 by the French car manufacturer Groupe PSA as a wholly-owned subsidiary to manage the manufacturer’s distribution network.

It remained a 100% subsidiary of Groupe PSA until 2012. Since 2012, the GEFCO Group has two main shareholders: Groupe PSA, with 25% of the capital, and RZD, the Russian Railways, which holds the remaining 75% of the capital.

GEFCO’s shareholders(2)

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

(2) As of December 2018

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

Vice-Chairman of the Supervisory Board: Yannick BÉZARD, Executive Vice-President, Operational Director Eurasia of Groupe PSA

Konstantin LYULCHEV, Head of Corporate Finance Department of RZD

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

Francesca GAMBONI, Director of Supply Chain of Groupe PSA

Henri William KUITUNEN, CEO of Steveco Oy

Mariia KALVARSKAIA, Deputy Head of Corporate Finance Department of RZD

Vadim MIKHAILOV, First Deputy CEO of RZD

Andrey STARKOV, Deputy CEO of RZD

Tatiana ORLOVA, First Deputy Head of Corporate Finance Department of RZD

Yann VINCENT, Executive Vice-President, Industrial Director of Groupe PSA

Lucie VIGIER, Head of Corporate Finance and Treasury of Groupe PSA

Saül AZOUELOS, Employee representative of GEFCO

7

Company Overview

Company Overview

GEFCO is a world expert in complex supply chain solutions and the European leader in automotive logistics.

From its beginnings in the 1950s as the transport and logistics subsidiary of Groupe PSA, GEFCO has grown into a global specialist in complex supply chains. Now trusted by over 30,000 customers, the company designs and implements value-added logistics solutions for inbound, outbound, and aftersales markets all around the world.

The company is the world expert in all aspects of automotive logistics, and over the past decade has successfully expanded its competencies into other supply chains such as consumer goods, fashion, healthcare, pharmaceuticals and aeronautics. 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.

Figures as of 31/12/2018

TURNOVER

€4.6bn

PARTNER COUNTRIES

59

COUNTRIES

47

CONTINENTS

5

EMPLOYEES

13,000

8

Company Overview

France(1) | 53.3% EMEA | 38.2% RoW | 8.5%

2018 revenue breakdown by geography

Air & Sea | 8.8% Industrial Services | 2.8%

2018 revenue breakdown by division

Finished Vehicle Logistics | 40.2% Overland & Contract Logistics | 48.1%

(1) Less than 40% if adjusted for services provided outside of France but billed in France

(1) GEFCO global freight forwarding agents(2) Includes facilities, warehouses,

compounds and offices that belong to GEFCO

GEFCO Footprint

GEFCO Partners(1)

GEFCO Facilities(2)

GEFCO does not bend its customers into its process, it builds the process around its customers.

9

Company Overview

1949 - 2012

Groupe PSA Ownership (100%)

Acceleration of international expansion from 1999

RZD acquires 75% of GEFCO in 2012and Groupe PSA retains 25%

Acquisition of Mercurio in 2011

Takeover of Citroën’s transport companies in 1978

First foreign subsidiary in 1971

Founded by Groupe PSA in 1949

Main focus on Finished Vehicle Logistics

GEFCO has transformed itself from Groupe PSA’s wholly-owned subsidiary to a commercially driven organisation active in multiple end markets.

LOCATIONS

314

AUTOMOTIVE COMPOUNDS

113

AIR & SEA OFFICES

185

RAIL TERMINALS

57

10

Company Overview

2012 - 2018

RZD Investment (75%)

2019 and beyond

4PL logistic contract with General Motors in 2012

Investment in Human Resources and IT systems

Acquisition of IJS Global, GLT,and joint-venture with Bergé

New strategy and focus on profitable growth

Mind-set change from internal cost centreto commercially-driven organisation

Leverage expertise in automotive complex logisticsinto new end-markets

Focus on operational excellence

Build on leadership in FVL

Harness innovation initiatives to addressa changing market

service offering underpinned by a global, multimodal network, providing smart and flexible logistics solutions for automotive, industrial, and consumer goods customers.

Fully integrated

finished vehicle logistics provider.

European leading

for demanding industrial customers worldwide, with strong customer centric focus and operational knowhow.

70 years of excellence

in complex, value-added logistics.

Unrivalled specialist

11

Partners, unlimited

GEFCO’s updated branding and the Partners, unlimitedTM message is the result of a company-wide project to research its core DNA, and to better understand what makes the company unique to its customers and partners. In terms of what sets us apart as a company, our customers identified our determination to build long-lasting relationships, earn trust and create value across the supply chain.(Partners) conveys the cooperative mindset in which GEFCO builds these relationships with all of its ecosystem based on proximity and shared growth.(Unlimited) expresses the company’s aim of continually pushing back the boundaries in terms of expertise, geographical scope, sustainable growth, creativity, and innovation.

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Partners, unlimited

Our open-mindedness, combined with our ability to listen and learn from our partners, means we always go the extra mile. Our updated branding reflects this, with a new logo and signature. The new yellow box with our brand name represents a window onto the world, while our new signature, Partners, unlimitedTM, expresses our ambition and reaffirms our commitment to our customers and partners.

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GEFCO’s Business Model

Business StructureWe offer complex and time-critical solutions for our customers through four divisions


End-to-end integrated logistics solutions

GEFCO’s Overland (OVL) segment manages door-to-door flows predominantly by road for a wide range of industries.

It achieves this by combining transportation flow management, customised warehousing (72 warehouses worldwide), logistics solutions, engineering and solution design as well as project management.

Through its road network composed of 133 agencies worldwide and more than 300 partners, the Group provides a large range of transport solutions, including full and part load transport and customised time-critical solutions.

Delivering full

Procurement & Inbound Manufacturing Process

Work in progress

Sequenced just-in-time delivery Light assembly services

In-plant logistics

Transport Consolidation centerSupplier Plant Warehouse

Optimised collection & transportation

Consolidation

Overland & Contract logistics GEFCO’s Finished Vehicle Logistics (FVL) segment is Europe’s biggest mover of new vehicles.

The Group delivers more than 5 million vehicles per year globally. GEFCO has over 60,000 vehicles in transit at any time, across 113 compounds through a seamless, multimodal network from factory to distribution centres and car dealers to end customers.

Operating as an integrator, operator and fleet manager, the Group offers end-to-end specialised logistics solutions as well as added-value services such as Post-Production Operations (PPO) and Pre-Delivery Inspection (PDI).

The Group is increasingly developing its services in the attractive second-hand car market.

Finished Vehicle Logistics (FVL)

14

Industrial ServicesAir & Sea


GEFCO’s Industrial Services segment includes various industrial logistics and support services, of which Reusable Packaging Solutions (RPS) is the most significant.

RPS offers a complete range of management solutions for industrial packaging (crates and containers), flow optimisation, planning and monitoring. RPS benefits are numerous: the combination of standardisation and compatibility with state-of-the-art IT container management system provides customers with a capital-efficient solution using less storage space and enhanced flow management.

The service is used by industrial customers across Europe, Turkey and North Africa through approximately 6.3 m crates and small boxes.

Industrial Services also includes the newly set-up light-assembly modules services, GEFCO Industrial Services.

GEFCO’s Air & Sea segment operates global freight forwarding solutions providing integrated, cost-effective and door-to-door transport solutions.

The Group arranges local and cross-border transport through four key products: air, sea, rail and time-critical solutions.

GEFCO also handles all aspects of customs, tax and relevant regulations relating to import and export.

The segment has a network of 185 air and sea offices worldwide.

The Group is also responsible for IPC(1), specialised in transportation equipment out of gauge for conventional means.

supply chain visibility

Integrated logistics solutions

(1) Industrial Project Cargo

Outbound & Distribution / Aftermarket Logistics

Freight forwardingValue-added services (PPO/PDI)

End-user Spare parts, warehouse, Repair centerTrucking Warehouse

Distribution (dedicated & shared networks) Returns & recycle logistics

Warehousing & Inventory control Spare parts warehousing & distribution

Distribution planning Repair activities

Integrate as much as possible, operate where needed

15


Fully integrated within its multimodal transportation offering, GEFCO has a proven ability to provide flexibility and responsiveness to its customers as well as a wide variety of value-added services such as the delivery of Post-Production Operation (PPO) and Pre-Delivery Inspection (PDI) services on finished vehicles and the design control and optimisation of customers’ supply chain through dedicated control towers.

The Group has also developed significant expertise in providing customers with on-demand, time-critical solutions, designed to provide tailored solutions to meet unpredicted requirements that arise either because of their timing sensitivities or due to their sizeable and/or complex nature.

Delivering complex logistics and time-critical solutions across the entire value chain

What makes GEFCO different?

With almost 20% market share in 2018, GEFCO is Europe’s leading mover of finished vehicles, delivering 5 million vehicles per year globally. At any time GEFCO has 60,000 vehicles in transit across more than 100 compounds through a seamless, multimodal network from factory to distribution centres, dealers and end customers.

GEFCO is also increasingly expanding its footprint in the sizeable second-hand vehicle logistics market, moving cars for customers including car manufacturers, car rental companies or e-commerce pure players.

A #1 position in Finished Vehicle Logistics (FVL) in Europe

Other | 44.3%Top 2-6 | 35.5%GEFCO | 20.2%

European FVL market share

Developing deep and long-lasting customer relationships

GEFCO prides itself on building close and long-lasting relationships with its customers. GEFCO’s deep understanding of supply chain challenges and focus on cooperation, allows the Group to find solutions that create cost savings and efficiencies, turning a supply chain into a value chain.

The benefit of these deep partnerships is shown by the longevity of the Group’s relationships and its ability to grow with its customers as well as attracting new ones.

The Group has more than 11 years’ partnership with each of its top 8 customers outside the 69-year relationship with Groupe PSA.

42%

€3.6bn

€4.6bn

45%

13%

42%58%

2012 2018

Opel-Vauxhall Market ClientsGroupe PSA

+29%

Revenue mix by customer

+37%

Groupe PSA Exclusivity Contract

16


The Group operates under an asset-light model, owning only strategic assets such as railcars and part of its compounds to ensure a competitive advantage and to increase the Group’s flexibility.

The Group operates a specialised fleet of over 4,100 railcars, all designed to meet automotive customers’ needs as well as more than 11,000 trucks daily, owning only 850 of them.

The Group also has a strong and cash generative financial profile supported by a flexible cost base (80% variable costs / 20% fixed costs).

The low-asset intensity of GEFCO provides flexibility and drives high returns on capital employed.

Asset-light and flexible business model driving attractive return on capital

Historically focused on automotive logistics, GEFCO has successfully developed its solutions over a variety of logistics verticals to become a leader in complex supply chain solutions serving various end-markets.

The diversification has been achieved through strategic selection of verticals and customers facing similarly complex logistics chain requirements.

The Group has successfully expanded into the consumer goods, fashion, healthcare, pharmaceutical and aeronautic sectors, building long-lasting relationships with blue chip customers.

Continued diversification of the business mix across verticals

(1) Value Key Accounts (VKAs) only (i.e.multi-national customers, excl. Groupe PSA and OV, utilising one or more supply chain services, targeted for further growth by GEFCO)

Auto Non auto

22% 32%

68%78%

2012 2018

Revenue mix by industry(1)

The Group has enhanced its customer segmentation to be aligned with the Group’s strategy of providing integrated logistics solutions in partnership with key targeted customers. Through this focused sales and marketing strategy, GEFCO has succeeded in developing long-lasting relationships outside of Groupe PSA and expanding outside the automotive sector by leveraging its expertise in automotive to expand in new markets with similar level of supply chain complexity.

Today, the Market Clients (customers outside Groupe PSA and Opel-Vauxhall) account for 45% of total Group’s turnover and has been growing at 7.4% (CAGR 2016-18). More importantly, GECFO has been successful in growing its sales even faster with customers on which it specifically focusses (Value Key Accounts, “VKAs”) through specific targeting and cross-selling efforts, both in auto and non-auto sectors. As such, VKAs registered a 16.9% CAGR over 2016-2018.

Generation of above-market growth

Global logistics market

Group Market Clients Automotive VKAs

Total VKAsEuropeanFVL market

Non-autoVKAs

19.0%16.9%16.0%

7.4%4.8%4.2%3.8%

2016-2018 CAGR (market vs. GEFCO)

Market GEFCO

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Company Achievements

Opel-Vauxhall renew their exclusive 4PL partnership with GEFCO

Opel-Vauxhall renewed GEFCO’s contract for managing the supply chain for a four-year period starting on January 1, 2019. This demonstrates the strength of the partnership between the two companies and the trust that Groupe PSA has placed in GEFCO.

This contract covers all inbound and outbound logistics for Opel-Vauxhall in Europe and Turkey. GEFCO will distribute parts to Opel-Vauxhall assembly plants from supplier sites worldwide. The group will also deliver vehicles to dealers and importers.

GEFCO acquires GLT

The acquisition of GLT, the Europe-Morocco transport specialist, will enable GEFCO to strengthen its position and expertise in the region while consolidating and expanding its customer portfolio, particularly in the automotive, fashion and retail sectors.

Founded in 1998, GLT is recognised as the specialist for fully-secured logistics flows through the strait of Gibraltar and is the leading operator between Algeciras and Tangiers. The company ensures over 16,000 crossings per year, with 75 trucks and 380 trailers.

GEFCO and BERGÉ form an alliance to develop automotive vehicle logistics in Spain

GEFCO and BERGÉ, specialised in multimodal logistics services in Spain, have agreed to join forces to create the leading company in the finished vehicle logistics market in Spain.

The new equally-owned company (BERGÉ-GEFCO) will have the capacity to manage 1.4 million cars annually, with more than 3 million m² of vehicle storage, 700 vehicle trucks, 100 rail wagons and 40,000 m² of workshop space.

BERGÉ-GEFCO will offer an extensive portfolio of logistic solutions to current customers of both companies enabling them to better manage seasonal peaks and benefit from dedicated resources. In addition, the new company expects to develop strong operational synergies through pooling of resources and capacities, and to strengthen both its position on domestic and international flows.


2018 Key Highlights

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GEFCO launches its Innovation Factory to accelerate internal innovation

GEFCO Innovation Factory is designed to nurture a culture of innovation, empowering every employee to invent and explore innovative ideas, with the potential of developing them into solutions to support business growth. The Group’s aim is to boost the creative spirit of its employees by providing an internal incubator for their most promising new concepts.

The GEFCO Innovation Factory, open all year long, enables candidates, working in teams, to submit their projects and pitch their innovative ideas at any time. These can apply to any area of GEFCO’s business, but must be aligned with GEFCO’s innovation axes, meet a customer need and be scalable across the Group.

Strong development of Market Clients

GEFCO continues to deliver strong growth in its Market Clients segment through a relentless and focused sales and marketing strategy around targeted customers around the globe.

GEFCO further increased its customer base in the automotive, industrial and consumer good sectors in 2018 thanks to its robust expertise in integrated logistics allowing the Group to build reliable, flexible and cost-effective solutions around customers’ specific needs.

For instance, GEFCO continued to develop its inbound and outbound activities in Europe with Renault-Nissan.

The Group delivered body care products for Procter & Gamble in Europe and in the UK, GEFCO reinforced its successful storage and just-in-sequence operations for tier-one automotive suppliers and OEMs in Halewood.

GEFCO was also chosen as the lead logistics provider to design transportation flows for France, Portugal and Morocco for Mecachrome.

Market Client growth (2016-2018)

+15%

GEFCO partners with Techstars, a worldwide network that helps entrepreneurs succeed with experience in over 1,000 international start-ups

This collaboration represents a unique opportunity for GEFCO to leverage the expertise of Techstars team in the field of entrepreneurship and innovation, and its industry know-how to the programme.

The partnership will enable GEFCO to: Collaborate with highly promising start-ups, that are driving major industry

transformations, on concrete user cases and disruptive business models

Amplify transformation already initiated on work models and group culture through start-up pilots and start-up accelerator programme

Access a network of talented entrepreneurs, industry and innovation experts

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Executive Vice-PresidentFinance & Strategy

In 2018, the Group further enhanced its financial performance by focusing on profitable growth and driving operational excellence throughout the organisation.

Group Performance

Consolidated revenue (in €m)

20182016 2017

Groupe PSA Opel-Vauxhall Market Clients(3)

2016-2018 CAGR(1)

+4.9%

(8.0%)

+7.4%

+7.4%

4,6474,442

1,942

624

2,081

1,855

634

1,953

4,228

1,684

737

1,807

(1) Compound Annual Growth Rate (2) Like-for-like growth, i.e. at constant exchange rates and perimeter (main exchange rate impacts coming from Argentina and the United Kingdom) (3) Customers other than Groupe PSA and Opel-Vauxhall. Market Clients include RZD (representing €6.2m of revenue in 2018)

We are very proud of this year’s results. Our focus on management excellence has been absolute, and we are confident that we will be able to continue delivering material growth in the years ahead. GEFCO is in a very strong financial position with the ability to finance its growth strategy.”

Pavel ILICHEV

In 2018, Group’s revenue amounted to €4.6bn, up 4.6% compared to 2017. Like-for-like growth reached 7.9%, adjusted for exchange rates (-3.6%) and change in perimeter (+0.3%) effects.

Top-line growth benefited from the good performance of Groupe PSA through volume growth, expanded services such as time-critical services and development of new geographies (India and Morocco).

Market Clients’ sales continued to grow steadily with an increase of 6.7% (like-for-like growth reached 11.1%), driven by both new auto and non-auto customers globally and continued cross-selling accompanying existing customers in their own development.

Overall, GEFCO enjoyed strong growth across all divisions.

Finished Vehicle Logistics (FVL) segment has been mainly driven by Groupe PSA volumes, additional sales of value-added and mission critical solutions.

Overland and Contract logistics segment benefited from continued good momentum in Market Clients sales and Groupe PSA production volume increases.

Higher revenue for Air & Sea segment also derived from higher volume of time critical services.

Increase in Industrial Services revenue was mainly due to the full year impact of the new light-assembly service (GIS) and the increase in reusable packaging activity.


+6.7%

+4.6%+7.9%(2)

+4.7%

(1.7%)

20

In 2018, ROCE reached 31.4% compared to 31.0% as of December 2017, based on the capital employed excluding leases (IFRS 16 and IAS 17) at the end of the period.

The Group’s ROCE is driven by its asset-light model (limited capital expenditure requirements), its strong balance sheet as well as continued measures aiming at improving margins and increasing operational and financial efficiency.

2016

31.4%31.0%25.8%

20182017

2016-2018 ROCE(1)

(1) Refers to Return on Capital Employed, calculated as Recurring EBIT over average capital employed (Trade Working Capital + Goodwill + Intangibles + PP&E)

GEFCO enjoys excellent financial health, with low leverage and strong cash flow generation. The Group’s flexible financial structure and strong balance sheet allow it to make decisive strategic moves when and if the right opportunities arise.

In 2018, GEFCO adopted the application of IFRS 16 following the modified retrospective method. An additional lease liability amounting to €249m was recognised as of December 31, 2018.

Excluding the impact of IFRS 16, net debt increased by €48m in 2018 to €69m.

(1) Net Financial Debt before leases (2) Leverage as Net Financial Debt / EBITDA (pre and post IFRS 16 for 2018)

17 21

Net Financial Debt (€m)(1) and Leverage (x)(2)

2016 20182017

69

318

0.1x 0.1x 0.3x1.0x

The Group’s recurring EBIT increased by 15.0% to €160m, driven by the continued focus on profitable growth as well as efforts from the management to implement performance improvement initiatives.

The clear strategy to offer complex logistics solutions, value-added services and time-critical solutions also helps sustaining margin improvement.

114

160(1)

3.4%

2016 2018

CAGR : +18.5%

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

139

2017

2.7%

(1) Early implementation of IFRS 16 had a positive impact of €2.7m on recurring EBIT in 2018


3.1%

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Segment Information

Finished Vehicle Logistics (FVL)

The past years have seen the FVL division grow its position as Europe’s largest mover of vehicles. It has achieved this by simultaneously diversifying its customer base and expanding its geographic footprint into high growth regions.

The division benefited from the good performance of its first customer, Groupe PSA, and increased sales of time-critical solutions.

Importantly, Market Clients sales continued to grow at a high pace through new contracts as well as further cross-selling with existing customers.

The division has also increased its vertical integration with some of its largest customers, providing services more usually associated with OEMs.

In 2018, FVL generated €1,869m in revenue (+5.5% compared to 2017) driven by Market Client development.

2016

1,869

1,706

2018

1,772

2017

Revenue (€m)

2018-17 growth

+5.5%

18-17 LFL growth

+8.8%

(1) Refers to Less than Truck Load (2) Refers to Full Truck Load(3) Refers to Time-Critical Solutions

Overland & Contract Logistics (OVL)

A clear strategy and strong management have been implemented for the OVL division. First, the restructuring and optimisation of the delivery network have been achieved using new management expertise and big data. Second, and perhaps most importantly, the sales teams have been refocused on larger customers where GEFCO’s expertise is more applicable. Smaller customers, or more traditional services, particularly in Groupage are increasingly serviced using digital platforms.

The warehousing offering has grown steadily aided by capital investment in specialised industries such as pharmaceutical and automotive line-feeding. It also serves to enhance the attractiveness of other business segments within GEFCO.

The division has also successfully integrated the acquisition of GLT over the second semester of 2018.

In 2018, the division generated €2,237m in revenue (+4.2% compared to 2017) due to a good performance of LTL(1) / FTL(2) and TCS(3) as well as Groupage activity for Market Clients.

2016

2,237

2,075

2018

2,147

2017

Revenue (€m)

2018-17 growth

+4.2%

18-17 LFL growth

+7.0%


Executive Vice-PresidentFVL, OVL, IS


All divisions have been contributing to our growth thanks to the integrated solutions we can offer to our customers. We continue to innovate and explore new paths of growth as significant upheaval is coming to the automotive market, the second-car market being one of them.”

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Air & Sea

The strategy for Air & Sea involved some of the same concepts as the OVL division – a focus on large accounts, selected verticals as well as trade lanes, the use of digitalisation and big data analysis to boost growth and drive down cost.

In 2018, the division generated revenue of €410m (+0.8% compared to 2017). Air & Sea top-line performance was severely impacted by currency fluctuations. Excluding exchange rate impacts, revenue grew by 7.5% compared to 2017.

2016

410

353

2018

407

2017

Revenue (€m)

2018-17 growth

+0.8%

18-17 LFL growth

+7.5%

Industrial Services (IS)

The Industrial Services division containing Reusable Packaging (RPS), and the newly set-up service for light assembly, GEFCO Industrial Services (GIS), has continued to grow steadily.

Growth in Industrial Services was driven by good volumes from Groupe PSA at RPS and the ramp-up of the GIS business.

In 2018, the division generated revenue of €131m (+12.4% compared to 2017) mainly due to the full year impact of GIS.

2016

131

93

2018

116

2017

Revenue (€m)

2018-17 growth

+12.4%

18-17 LFL growth

+12.6%


Executive Vice-PresidentAir & Sea

Anthony GUNN

Air & Sea allows us to offer fully integrated solutions globally and to answer to the most complex requirements of our customers including Time-Critical and Industrial Project Cargo solutions. We also remain at the forefront of innovation; for example we launched a unique voice-activated shipment tracking tool for our customers in 2018.”

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Strategy

Strategy

The Group’s growth strategy is focused on 5 pillars, which reflect a continuation of the approach that has proven successful for driving the Group’s above market growth over recent years.

Become the global leader in Finished Vehicle Logistics (FVL)

Consolidation platform for selective M&A

As the largest FVL provider, GEFCO aims to expand its leadership by capitalising on the strength and breadth of its service offering, on a focused commercial strategy and on its global network.

The Group has a two-pronged approach to M&A: a specific focus on FVL, where the Group will look at strategic and value enhancing companies and more opportunistically, in other segments to add a new geography, technology or capability to the Group.

Expand auto inbound and adjacent logistics segments

Further develop second-hand vehicle logistics and services

Grow non-auto verticals by leveraging existing expertise

Harness innovation as an accelerator

Continue developing new geographies and trade lanes

The Group will continue to leverage its leadership in FVL to expand market share in adjacent automotive logistics segments (inbound, spare parts, reusable packaging, etc.) through upselling, cross-selling and prospects.

Beyond FVL for new cars, the Group is positioning itself as the key provider of services for the “Car as a Customer” market, which includes all secondary (used car) market transactions as well as all services provided to a car during its life from the first owner to scrap.

The group is building on its unrivalled expertise in the demanding and complex automotive industry and on its global integrated network to further expand into industries with similarly complex supply chain requirements.

Innovation is key to be successful as a logistics provider given the increasingly rapid changes in customers’ supply chains. GEFCO has partnered with Techstars, an international accelerator to have access to appropriate start-ups and has also set up a dedicated internal organisation for innovation, GEFCO Innovation Factory.

The group will selectively expand internationally through existing and prospect customers, especially in fast-growing countries thanks to its agile business model.

Two fundamentals will support these five strategic pillars:

24

Business Development

GEFCO Group’s sales and business development objective is to achieve sustainable, international growth worldwide through reliable, flexible and innovative supply-chain solutions

Our new Partners, unlimitedTM branding, launched in 2018, highlights our focus on building long-term cooperation with our customers.

We have been extremely successful in developing our Market Client Sales (customers outside Groupe PSA and Opel-Vauxhall), with a 7.4% compound annual growth rate (CAGR) between 2016-2018. Our growth has been even stronger with specific Value Key Accounts. This success is based on our ability to win new business while cross-selling and upselling to a diverse portfolio of existing customers, thanks to our wide range of integrated services and our global multimodal network.

Today, more than 65% of GEFCO’s Value Key Accounts use more than two of our services, and in the automotive sector, GEFCO benefits from a wide range of customers, including OEMs, tier-1 suppliers, two-wheeler companies and online auctioneers.

Our strategy is based on three main components:

GEFCO’s growth strategy is clear and deliverable. We will focus on developing our large client base where our expertise gives us the advantage over competitors. We will continue to expand internationally, and into new and relevant industries.“

Executive Vice-PresidentSales & Marketing

Emmanuel ARNAUD

Continue to grow with our historical customer Groupe PSA by offering new services and geographies to support its business (e.g. Groupe PSA’s new plant in Morocco and accelerated development in India in 2018)

Create value and outpace market growth by focusing on targeted accounts (Value Key Accounts), based on a clear customer segmentation, prioritised resources and strong commitment

Further develop our business outside automotive by applying our unrivalled expertise in automotive logistics to markets with a similar level of supply chain complexity (e.g. the pharmaceutical and aeronautics industries)

Distribution of premium-brand cars in France through our multimodal network

Implementation of bonded and free warehousing facilities in Tangiers, Morocco

New finished vehicle logistics services in the Middle East through a partnership with Almajdouie Logistics (MLC) in Saudi Arabia

New business with Bosch Powertools between Germany and France

A new contract with Leaseplan to prepare for the Amazon Prime fleet in the United Kingdom

New compound management contract for Jaguar Land Rover in Nitra, Slovakia

An agreement with Airbus to launch a multipurpose fleet for reusable packaging

New contract to manage sea shipments between Spain, the United States and Mexico for Cerealto

Business Development

25

Case Study

Morocco-Europe Gateway

GEFCO showcases comprehensive supply chain expertiseSince the Arab spring in late 2010, Morocco has become an even more attractive best-cost destination for nearshore manufacturing and a major gateway to Europe.

The automotive industry alone accounts for 24.4% of all Moroccan exports1, with the country producing, for instance, more than 20% of automotive harnesses for European OEMs. These figures should grow further, given the healthy forecasts for the automotive industry (revenues of €10 billion in 2020, up from €6 billion in 2016).

From a supply chain perspective, the Morocco-Europe gateway demands skills in a wide range of areas, including Strait of

Gibraltar crossings, short lead times, customs formalities, security, tracking and handling specific transport equipment. GEFCO meets these needs and more.

In early 2018, GEFCO announced a strong ambition to develop its multimodal operational capabilities and service for growing customer demand for the gateway. GEFCO acquired GLT, a major player on the Morocco-Europe gateway and is an authorised economic operator (AEO) for customs clearance. With this acquisition, an already strong presence in Spain and France, and leadership in domestic finished vehicle deliveries in Morocco, GEFCO has become the leading player in Morocco-Europe gateway.

The Group has introduced additional full truckload (FTL) lanes between Morocco and Spain, and France and the UK for Tier-1 automotive clients, while increasing delivery frequency to offer daily service between Morocco and Toulouse, France for aerospace customers. The Group has quickly become the leader in Strait of Gibraltar exchanges of general cargo with over 25,000 crossing expected in 2019.

At the end of 2018, GEFCO started delivery of car carrier wagons to support Groupe PSA’s new Kenitra car manufacturing facility in Morocco, which is expected to produce 200,000 vehicles annually by 2020. A total of 47 rail wagons will transport new vehicles, linking the Moroccan factory to the Port of Tangier in 2019. This is truly a unique challenge in terms of industrial capabilities and demonstrates the strong partnership between GEFCO and its long-standing customer, Groupe PSA.

The Morocco-Europe gateway offers unique potential to our customers and we’re reinforcing our expertise to meet fast-growing demand for supply chain services in this specialized niche.”

Executive Vice-PresidentEurope Middle East and Africa

Pierre-Jean LORRAIN

(1) Source: 2016 economic report by the Embassy of France in Morocco

26

Case Study

GEFCO demonstrates crisis capabilities during French rail strikeIn the spring of 2018, France was paralysed by a strike initiated by railway workers from the French national railway company (SNCF). At the heart of the strike was opposition to the French government’s rail reform. The strike lasted 38 days over a 3-month period.

The organisation of the strike movement was sequenced. Rail workers went on strike for two days followed by three days of normal circulation. In addition to the disrupting passenger traffic, the impact of the strike on freight impacted the entire supply chain for our customers.

With a tailor-made time-critical, and crisis offer, GEFCO was able to continuously and seamlessly reroute the French rail flow to other rail operators and was able to design alternative transport modes including sea and road.

Specifically, GEFCO designed new transport plans by organising the switch from rail to road, sea and barge mass transport solutions at competitive price. The Group also arranged temporary storage capabilities to address the limited capacity of car storage at the existing plants. Lastly, GEFCO set up a dedicated task force to manage the crisis.

During the 3-month strike, GEFCO planned over 1,000 loadings per week by road and managed 200-400 trucks.

Thanks to its expertise in logistics and multimodal transport, GEFCO was able to ensure the transport and delivery of its customers’ products and respect deadlines, confirming the Group’s flexibility and ability to adapt in complex environments.

GEFCO’s expertise in crisis management allowed us to seamlessly support our customers during the French rail strike. The challenges were twofold: limiting the delivery delays in Europe and ensuring that new vehicles could be transported to their final destination. During the strikes our teams acted with agility to design solutions to meet the specific needs of our customers.”

President of GEFCO FranceFrance

Emmanuel DELACHAMBRE

Crisis management in France

27

Case Study

GEFCO contributes to agriculture development in the regionOver the past 40 years, Brazilian agriculture has evolved from labour-intensive methods to large scale commercial farm systems. The sector’s growth and transformation have been driven by innovations in crop, animal genetics and farm management, as well as government funding and credit schemes1.

With agricultural equipment in high demand, GEFCO has leveraged its 20-year expertise in transporting heavy machinery from Argentina to the Brazilian market and neighbouring countries. In June 2018, GEFCO purchased 60 trucks and specialized flat bed trailers to service leading brands in agricultural and highway construction machinery. With a service ramp up from June to November 2018, machine delivery covered all regions in Brazil and Mercosur countries (Uruguay, Argentina, Chile, Paraguay, Peru, Bolivia). In 2018, 810 machines were loaded and a total of 2,100,000 kilometres travelled.

GEFCO continues to transport heavy machinery successfully, understanding its customers’ need for tailored solutions to their individual needs. Skills in international flow engineering and real-time tracking, combined with a collaborative spirit and strong cooperation, make long-term partnerships a reality. The group also offers specific know-how in integrated logistics services between countries and a strong local presence for national distribution.

We are proud of our expertise in transporting heavy machinery in Latin America. We are applying our deep knowledge in automotive and construction machinery to the agriculture sector and are excited about our achievements. We look forward to deepening our relationships with leading brands in this sector and will continue to explore and invent to meet their needs.”

(1) USDA Agricultural Projections to 2028

Heavy machinery logistics in Latin America

Executive Vice-PresidentFVL, OVL, IS


28

Case Study

GEFCO gains speed on the Silk RoadGEFCO has been operating rail shipments between Europe and Asia for the past five years, continuously looking for new cost-effective, flexible, reliable and secure solutions on key trade lanes to meet customer requirements.

Following the Chinese unveiling of the One-Belt-One-Road initiative, GEFCO was one of the first movers in the region with significant advantages in a number of pan-Asian corridors.

In 2017 GEFCO completed the first block train journey between China and France, coordinated by GEFCO’s freight forwarding teams in Shanghai, Moscow, and Paris.

In 2018, GEFCO increased its volume on the Silk Road by more than 50% with new customers and services.

GEFCO expanded its portfolio in 2018 with customers in automotive, FMCG, industrial goods and fashion. The Group also deployed new services such as LCL (less than container load) and Reefer containers for temperature-controlled transportation. GEFCO also launched return trains operations from Europe to China.

Rail Silk Road in Asia

We continue to push back boundaries to meet our most demanding customers on the Sino-European trade lane. This achievement is one of a number of firsts in the region and confirms our ability to continuously enlarge our service offering through our multimodal global network.”

Executive Vice-PresidentAsia

Paul-Henri FRERET

29

GEFCO is in partnership with a number of incubators and accelerators such as Techstars, and these relationships are emphatically not for publicity or image. We work closely with the teams to examine the most promising ideas, and help to advance and integrate promising concepts within GEFCO, giving them access to and support from our global network. We also bring them problems and challenges from our customers, often discovering

solutions from outside of the current logistics industry.

Innovation

Start-ups and Accelerators

unit is the focal point for innovation at GEFCO. It explores and identifies trend signals from both our customers’ industries and from the start-up ecosystem, looking for areas of potential overlap. It takes a proactive approach and explores internal GEFCO sources as well as external.

The Innovation Watch and Business Intelligence

will design investment structures for individual projects as well as ensuring that proper reporting and governance is in place in each case.

Innovation Funding

is responsible for both nurturing innovation and executing delivery. Internally the unit will be creating a culture of innovation within GEFCO, as well as directly supporting, exploring and building upon nascent ideas. It will also oversee and support the delivery of projects that have been selected for testing and development.

GEFCO Innovation Factory

Group DirectorStrategy

Gilles DESANGES

The supply chain market continues to undergo a spectacular transformation. Over the past few years, GEFCO has switched its approach to innovation from responding to change to effectively anticipating it. We need to stay ahead of the curve by integrating these processes and offering our customers the best technical solutions at the right time and price – our new innovation structure will ensure this.“

Innovation

GEFCO operates in a constantly changing environment, with fast-evolving customer needs, increasingly complex social and environmental regulation, and disruptive digital technologies that are transforming both production processes and consumer lifestyles. As a company, GEFCO is deliberately and explicitly fostering innovation at every level of the organisation.

30

Innovation

To rise to new challenges in the supply-chain sector, GEFCO continues to push back the boundaries with game-changing digital technologies like Internet of Things (IoT), Artificial Intelligence (AI), robotics and blockchains.

Innovation Projects

Robotics /4.0 Compounds

By combining several new technologies coming on the market, innovative robotisation allows us to reshuffle vehicles in compounds with COBOTS for faster, safer and more efficient car flow and space management.

Boost car flow efficiencies in compounds

Mobility / My Car Is There (MCIT)

In just a few clicks, MCIT technology allows a car owner to organise the pick-up and delivery of a car to any destination with real-time tracking convenience. GEFCO’s MCIT solution was awarded “Innovation Leader” at Automotive Logistics Europe 2018.

Organise the transportation of individual cars via a smart phone application

Automation /Automatedinventory control

Drones allow greater efficiency in verifying and recording inventory data. They also reduce the risk of accidents by minimising manual labor at high levels in warehouses. They generate considerable time and cost savings in the inventory process, for both GEFCO and customers.

Efficient inventory management in warehouses with drones

Paperless /Digitalisedadministrative services

Digital processing of al l invoice management improves control, data quality and productivity. GEFCO’s E-Vendor seamless IT solution offers improvements and savings through connected and standardised 100% paperless processes.

Digital processing of all invoices to accelerate payment

(1) Internet of Things (2) Artificial Intelligence

31

GEFCO aims to recruit and retain the best talents as a cornerstone of its asset-light strategy and a key competitive advantage in a fast-changing industry. Here are some of the highlights:

Talent acquisition. Over the past two decades, the logistics industry has been transformed by digitalisation, becoming more attractive to ambitious talents who are drawn to the fast pace of change. In particular, we have created partnerships with leading universities and business schools, and introduced a Happy Trainees programme. Currently 17% of our employees are under 30.

equal human resources management. In 2018, GEFCO signed a binding commitment to gender equality, while in France, a strategy of recruiting and promoting people with disabilities was introduced in 2008.

Code of ethics. Long-term cooperation demands trust and transparency. That means conducting business with integrity, keeping our promises to customers and creating a positive work environment. Our code of ethics provides clear guidelines and commits to treating employees fairly in every aspect of their careers.

Health and safety. We aim for zero accidents and illnesses, through management engagement, mandatory risk assessment and employee training.

A unique culture and strong employee engagement. At the heart of GEFCO’s DNA, our Infinite ProximityTM mindset focuses on building cooperation between our employees, partners and customers. Our ability to listen to employees and continually improve the workplace plays a key role in this culture. In our most recent “Pulse” employee satisfaction survey attracted 82% participation and revealed a 10% increase in engagement compared to 2016.

Development and training. We help employees develop their skills, creativity and entrepreneurial spirit through personalised career paths and training. At least 3% of GEFCO’s annual budget is allocated to training and development, and GEFCO University was launched in 2018 to offer blended online, classroom and community learning. GEFCO has also introduced a company-wide mentoring programme.

Rewards and recognition. In line with our performance-based culture, GEFCO has an attractive rewards and recognition scheme to encourage excellence. This is based on fair and market-competitive remuneration, combined with incentives for individual and team performance.

A performance management programme. GEFCO employees each have an annual one-on-one meeting with their manager to discuss their job performance in terms of Infinite ProximityTM principles, as well as their career plans, training needs and more.

Diversity and inclusion. GEFCO promotes diversity, equal opportunities and anti-discriminatory practices in recruitment, training and career development. Our managers and employees receive training on fair and

Excellence & Commitments


Our People

Executive Vice-PresidentHuman Resources

Stéphane MILHET

Our Infinite ProximityTM approach is only possible thanks to the quality of our people.”

32

CSR is a priority for engaging our workforce, building trust and also a competitive advantage.”

Executive Vice-PresidentCorporate Communication

Susan MARRO-FOURNIER

Just like our customers, we take our responsibilities seriously. Our comprehensive sustainability strategy goes beyond tick-box compliance, driving progress in our industry by:

To guide our efforts, we have signed the United Nations Global Compact, aimed at meeting fundamental responsibilities in human rights, labour and the environment, and preventing corruption. We have also introduced a strong internal framework, including:

Corporate Social Responsibility

Increasing employee engagement

Respecting the environmentImproving risk management

Contributing positively to local communities

Building closer relationships with suppliers and customers


To uphold human rights, employee health and safety, and environmental protection, combined with an Ethics Committee to monitor our performance, and an employee whistleblowing initiative.

A code of ethics

To prioritize critical CSR issues and maximize our impact.

Materiality analysis

To monitor our carbon footprint and help customers achieve their targets. 60 dedicated managers coordinate this system with the support of local liaison officers. In 2018 we reduced CO2 emissions by 2% and committed to a further 2% reduction in 2019.

An environmental management system

We maintain our fleet in optimal condition, upgrading old trucks with more efficient models (Euro 5 or 6 standard currently and electric haulage vehicles in the future). We have also introduced eco-driving training to reduce fuel consumption and accidents, and more resource-efficient vehicle washing technology.

Greener vehicles

Responsible partnershipsWe are working with partners, customers and other stakeholders to achieve the highest standards of responsibility. At the end of 2018, 1,478 road transport providers had signed the GEFCO Responsible Purchasing Charter, representing 76% of regular route spending. GEFCO also achieved a 60/100 rating from EcoVadis and a B grade from CDP climate change. We expect these scores to rise further in the coming years.

Our sites each have targets for reducing energy consumption and landfill use, while increasing recycling and energy recovery. In 2018, 69% of the Group’s waste was recovered or recycled, and 59 of our sites achieved ISO 14001 certification.

Energy-efficient operations

We are developing multimodal transport and promoting alternative solutions, including greener warehousing and optimized road transport.

Innovative solutions

33

GEFCO

77/81 Rue des Lilas d’Espagne 92400 Courbevoie, France

T. +33 (0)1 49 05 21 21 GEFCO.net

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gefco annual report final 18 · allows gefco to deliver industry best-in-class returns on capital...

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