06-12-2008 Heppner stays the course in 2008: a new face, new ambitions...

2007 was a transition year for Heppner. Four strategic development priorities were mapped out and continue to be deployed this year. Thus Heppner has armed itself with the means to figure amongst the major players in transport and logistics in 2008 by redistributing its cards in order to assure the continuity of its development during these times of change. 

Despite 2007 being synonymous with a difficult economic situation, Heppner posted a 5.2% increase in turnover year-on-year. 


Key figures for 2007

 • 532 million euros consolidated turnover, of which: 

France Transport: 281m euros (52.8 % of turnover)
      o Groupage: 203m (+ 1 %)
      o Chartering: 78m (+ 1.1 %)  
International Transport: 193m (36.2 % of turnover)
      o Europe Ground: 134m (+ 10.3 %)
      o Overseas: 59m (+ 8.3 %)  
Logistics: 58m (11% of turnover)  + 9.2 % 

• Operating profit 2.2 million euros
• Net income 2.3 million euros
• Cash flow 9.1 million euros
• Debt ratio of shareholders’ equity 13 %
• Total employees 3,800
• Direct and indirect investments around 25 million euros
 

Heppner’s « little green fellow” marches on in 2008, after a year of consolidation and transition in 2007 

In 2007 Heppner mapped out four strategic priorities defining the courses of action to take between now and 2010 and concentrated on deploying the means to reach these objectives. In 2008 Heppner is continuing in this direction. Return to the major strategic priorities of a company resolutely turned toward the future … 

Investing in three principle growth catalysts

 • International: promising prospects of development 
The average growth rate for the International activity was 9.3 %, with a better performance in European ground transport (10.3 %) than Overseas (8.3 %). 

To develop its business in Europe, Heppner essentially capitalized on its partners in “System Alliance Europe”, a solid, well-run network organized around a uniform set of procedures understood by clients. 
Clearly the most important progress made in this domain was the standardization of all the operating and information systems associated with a high-quality level of service that is consistent throughout the entire network.  

Heppner also actively sought to find a new equilibrium between its historically strong positions in Northern Europe and developing its activity in the geographical zones that registered the strongest growth, those being Southern Europe, Eastern Europe and Russia.  

The share of the International activity went from 34.8% of turnover at the end of 2006 to 36% at the end of 2007 and should tend towards 40% between now and 2010. The contribution of International will very probably exceed this figure given Heppner’s ambitions, notably in Overseas for which billings are expected to double in 3 to 4 years with the instigation of the « CAP 124 » project. 

Reaching these objectives is achievable by reinforcing competences. This means consolidating the teams and the networks abroad, in China, in India… and optimizing the services offer.  

• Chartering: focus on quality of service 
The limited growth rate of 1.1 % attests to the trade-off Heppner made in favor of its quality approach and maintaining margins. In a context where physical and human resources are lacking, the company thus made the choice to instill loyalty among its existing customer accounts. 

• Logistics: a massive investment that eventually pays back 
This activity increased by 9.2 % in 2007, a figure in line with the ambitions announced.  

This growth is explained in large part by new contract wins with, among others, Brabo, les Bonbons Buddies, Le Coq Sportif, MAN and NextiraOne, and by building up business with existing clients. Many projects, still under evaluation, should materialize in the very near future.  

In terms of property, Heppner invested heavily in 2007, opening 5 new sites: Châtres (77), Gonesse (95), Tigery (91), Houplines (Lille region), Toussieu (Lyon region). This resulted in creating 50,000 more square meters of space, to which must be added the recent 10,000 sq m site near Le Havre. 

This new capacity, built in conformance with the most recent regulatory directives, allows Heppner to carry out its development ambitions in the domain of logistics. 

France Groupage: priority given to optimizing profitability 

Heppner posted net growth of 1 % in this activity. This performance needs to be situated in a context that today strongly works against Groupage, because Groupage is evolving in a mature and deflationist market, subject to more stringent constraints notably in terms of regulatory measures. Given this situation, optimizing profitability remains a priority and is preliminary to any further development.  

A highlight of 2007 was the successful achievement of the first integration phase of XP France and Sodimaine Transports, both at the technical and operational level throughout the network. The second phase, that of optimization, started in 2008. It supposes the deployment of a certain number of measures already underway, including the restructuring of certain agencies (Lille, Angoulême, Avignon…), the review of the transport itinerary, re-engineering procedures …
 
Quality: an even higher level of service 

Considered the cornerstone of its development ambitions, improving quality was a top priority in 2007. 

The beginning of 2008 attests to a clear consolidation of the level of quality in regards to parcel tracking, respect of delivery times and reliability of the global services offer. Heppner has earned its place on the market as a company providing the best levels of service. 

Moreover, Heppner broadened its capacity to provide customized solutions bolstered by a more personalized approach to building customer relations, centering its efforts on proximity, proactively…thus continuing to cultivate its difference from the competition.  

The people who fuel the growth 

Piloted by its newly reconstituted Human Relations Department, Heppner set up an employee development scheme in terms of managing careers, recruitment and training in order to enhance the skills and reinforce the expertise of the people at Heppner, in every position and at every site. 

In 2008, Heppner turns over a new leaf… 

2008 started off with a large-scale project, symbolic of the new step Heppner is taking in its already long history. Created nearly 20 years ago, the “little green fellow” logo has been redesigned, mixing sobriety and simplicity, and affirming the importance of our people. With this new visual identity, Heppner is heading in a new direction and comforting its position as a player who has asserted itself on the Transport and Logistics market.  
“ Heppner is tackling the future with lucidity and confidence and taking an approach oriented around solutions. All our efforts, especially in groupage, are there to tend towards our objectives that remain unchanged in 2008. The new visual identity, inaugurated last March and which will be rolled out over the next 18 months, is indicative of a movement to map out a territory. It is proof of change in continuity as we capitalize on the human values of the enterprise, the people and their competences, who are more than ever invaluable assets. It incarnates the modern and positive vision of the new dimension of the enterprise.”
Jean Schmitt, Heppner CEO and Gilles Moutel, Managing Director