Maritime Values. Annual ReporT 2011

Transcription

1 Maritime Values Annual ReporT 2011

2 MARKETS Shipping is the backbone of the global economy as over 90% of all goods traded are transported by sea. As the global economy continues to grow, so will the transport volume on the oceans. The Rickmers Group is in an excellent position to benefit from this development. We help to make our clients products available worldwide. COMPETENCES The Rickmers Group has branches and representative offices across the globe and offers the full range of services in the shipping supply chain. We have been expanding our network in Asia for decades. As we operate our own shipping lines, we understand the needs of liner operators. We are also a tramp owner and offer the scheduled transportation of capital goods. SHIPS The Rickmers fleet comprises more than 120 ships: this includes 88 container ships and 15 multi-purpose freighters that transport breakbulk and heavylift shipments. We are the sole owners of 37 ships, which on average are four years old. CLIENTS The Rickmers Group has an impressive international client base, with client relationships cultivated over many years. We are the preferred shipping partner for many well-known global players. And we intend to further develop this status. NETWORK Our work is supported by an established, strong network that spans the whole shipping industry. As a reliable partner, we have unrivalled connections along the entire shipping supply chain and in all relevant markets.

3 Annual Report 2011 Kapitel 1 The Rickmers Group is an established international provider of services for the shipping industry with its business segments Maritime Assets, Maritime Services and Logistics Services. The key to our success is the combination of modern services and over 175 years of tradition in shipping. Staying true to our principle future meets tradition has earned the Rickmers Group a global reputation for reliability and quality. We operate a fleet of over 120 ships, with over 3,000 people employed at sea and currently around 450 staff ashore in more than 20 branches and over 50 agencies across the world. This global team secures the success of the company, which acts in accordance with its core values: Leadership. Passion. Responsibility. Contents 02 Key performance indicators 04 Preface by Bertram R.C. Rickmers 06 Letter of the Executive Board 10 Extended Board Committee 12 Maritime Values Strategy of the Rickmers Group 18 Maritime Assets 22 Maritime Services 26 Logistics Services 32 Corporate governance 35 Group management report 59 Consolidated financial statements 89 Further information

4 2 Key performance indicators RiCKMers Group Our financial year 2011 Key performance indicators for the Rickmers Group in million (pro forma) 2010 (as reported) Sales EBITDA EBT Result after taxes Balance sheet total 2, , Equity Equity ratio in % Net debt 1, , Cash flow from operating activities Number of employees 1 3,409 3,061 1,063 1 Including employees at sea from external crewing agencies Represented internationally by 20 branch offices and more than 50 agencies Greenland North America Europe Asia Africa South America Australia Offices Agencies

5 Annual Report 2011 Key performance indicators 3 RICKMERS Group The business activities of the Rickmers Group and its three business segments cover the full range of services in the shipping supply chain. Maritime Assets Maritime Services Logistics Services plans, finances, buys, operates and sells company-owned ships as well as ships held in trust which are chartered out to liner operators, and invests in companies of the maritime industry. is responsible for technical management, crewing, insurance and other services for the operation and management of ships and economic goods in the maritime industry. offers logistics and liner services for heavylift, breakbulk and project cargo transport, operating a fleet of multi-purpose freighters with heavylift cranes. Investments are held in several shipping terminals. Maritime Assets in million (pro forma) Sales EBITDA Number of employees Maritime Services in million (pro forma) Sales EBITDA Number of employees 1 3,048 2,704 Logistics Services in million (pro forma) Sales EBITDA Number of employees Detailed information on the segments can be found in the consolidated financial statements from page 68.

6 4 Preface by Bertram R. C. Rickmers RiCKMers Group PREFACE Shipping across the world is experiencing profound changes. The financing of ships, the best utilisation of their capacities under tighter market conditions, the increasing requirements for environmentally friendly operation and the continuing rise of Asia s economies all of these present new challenges for the sector. These challenges cannot be met using the methods of old. Shipping companies need new approaches and ideas, must develop alternative financing concepts and find investors who view developing global trade as an opportunity to be seized.» The Rickmers Group seeks to set new industry standards for quality, the environment and client focus.«the Rickmers Group began to prepare for these challenges at an early stage. Over the past financial year, we have realigned the Rickmers Group to fit it for future challenges. We have examined old practices, optimised processes, jettisoned ballast and set the correct course for the future. Shipping is our core business. It will remain so in the years ahead and we will continue to cover the full range of the value-added chain. This process is still ongoing but we have already taken steps in many areas that will allow us to set new standards for the industry as we move forward. Our aim is to be a trailblazer in our industry. We want to set the benchmark for environmentally friendly shipping. We will also make these and other services available to third parties and thereby use the unstoppable progress in the industry to our advantage. It helps that we have always run our business with a long-term view towards the success of the company. This means, for example, that we are not burdened by a large pipeline of pre-ordered ships today. Our fleet financing is secure for several years and we have a widely diversified business, which brought us safely through the recent shipping crisis. We have also revised our system of management and control corporate governance and ensured that the Rickmers Group has the organisational structure of a modern corporation. In this context, the company s shareholders have appointed a five-strong Advisory Board to advise and monitor the two-person Executive Board. We are also treading a new path with this annual report, which greatly increases our transparency to banks, business partners, and current and future investors.

7 Annual Report 2011 Preface by Bertram R. C. Rickmers 5 Dr. Wolfgang Bornheim, who had enriched the Advisory Board of the Rickmers Group with his experience since 2003, sadly passed away last year after a long illness. The recognised tax consultant worked with us for many years as an adviser and expert counsel. With his passing, the Rickmers Group has lost a valued friend. There have been some personnel changes to the Executive Board and to the Advisory Board this year. As of 31 March 2012, Jan B. Steffens, CEO of the Rickmers Group and CEO of Rickmers-Linie is moving from the executive Board to the Advisory Board. As well as serving on the Advisory Board, Mr. Steffens, who has worked for Rickmers for ten years, will also be involved in other special projects associated with the Rickmers Group. Jan B. Steffens has contributed significantly to our successful development in the past and recently played an important role in the strategic realignment of the company. I would like to thank him most sincerely for his helpful and friendly commitment. Bertram R. C. Rickmers Chairman Rickmers Group Bertram R.C. Rickmers is the Chairman of the Advisory Board and majority shareholder of Rickmers Holding. As of 31 December 2011 he held 96% of company shares. He set up MCC Marine Consulting & Contracting in 1982 and Rickmers Reederei in 1984 as a foundation for the current ship owning and ship management activities of the Group. In 2000 he purchased Rickmers-Linie back from Hapag-Lloyd. Mr. Rickmers has a degree in economics from the University of Freiburg. Ron D. Widdows will become the new CEO of the Rickmers Group and Rickmers-Linie effective 1 April Mr. Widdows has more than 40 years experience in shipping. For 31 of these years he was at APL and Neptune Orient Lines, most recently as Group President and Ceo. Mr. Widdows is currently Chairman of the World Shipping Council. He has extensive experience in container shipping, a vast network of connections in the maritime sector, and excellent contacts in the political and financial community. A highly experienced and respected expert, he will help us to implement our new growth strategy. Dr. Ignace Van Meenen, CFO of the Rickmers Group, will be deputy to Ron D. Widdows. Both managing directors represent continuity and will uphold the tradition, values and economic success of the Rickmers Group. With these steps, and other measures we have taken to redefine the Rickmers Group that are at an advanced stage, we will be in a position to define the market. But we will retain our aim of ensuring the highest levels of client satisfaction and reliability. I would be pleased if you would accompany us on this path. Yours sincerely,

8 6 Letter of the Executive Board RiCKMers Group EXECUTIVE BOARD Dr. Ignace Van Meenen Deputy CEO and CFO Dr. Ignace Van Meenen joined the Rickmers Group as Chief Financial Officer in October In his function as CFO, Dr. Van Meenen is also responsible for the shared service areas Accounting & Tax, Controlling & Corporate Invest ments, HR & IT, M&A, Legal Affairs and Treasury. He is also a member of the Super visory Board of Rickmers Maritime Trust in Singapore. After studying law in Ghent and Osnabrück, Dr. jur. Van Meenen started his career at Deutsche Bank AG, where he held various positions in the financial sector in Germany and America. Thereafter he held leading management positions as finance director and CFO at the mining and chemical group RAG AG, the inter national media company RTL Group S.A. and the real estate group DIC. Jan B. Steffens Managing Partner, CEO Rickmers Holding and CEO Rickmers-Linie Jan B. Steffens joined the Rickmers Group in 2002 as Managing Director of Rickmers- Linie. In 2005 he became the CEO of Rickmers Holding and a partner in As CEO of Rickmers Holding, Mr. Steffens is responsible for the strategic and operational development of the Rickmers Group, the business segments Maritime Assets, Maritime Services and Logistics Services and the Business Development and Corporate Communication departments. Mr. Jan B. Steffens studied mathematics and economics at the University of Kiel before working for 24 years in container shipping in management positions at Hapag-Lloyd and Senator Linie. At Rickmers-Linie he was responsible for the development of the company as the leading liner operator specialising in the global transportation of breakbulk, heavylift and project cargoes. As from 1 April 2012, he is a member of the Advisory Board of Rickmers Holding and is also involved with special projects associated with the Rickmers Group.

9 Annual Report 2011 Letter of the Executive Board 7 LADIES AND GENTLEMEN, FRIENDS OF THE RICKMERS GROUP, 2011 presented a challenge for the shipping industry. Charter rates increased at the beginning of the year, but soon fell back again. Newly delivered ships increased supply levels in the market and the number of container ships laid up reached new record levels at the end of the year. Against this background, we are very happy with the growth of the Rickmers Group in the 2011 financial year. Sales and profits of the Rickmers Group were higher than in 2010 and financing of our fleet of new buildings in 2011 went ahead as scheduled. Sales rose from million (pro forma) to million. Earnings before income tax stood at 15.2 million. We look forward to the 2012 financial year with confidence; we will seize opportunities and expand our sound market position. This outlook is due to the strategic realignment of the Rickmers Group and our outstanding market position. We used the 2011 financial year to re define the strategy and business segments of the Rickmers Group. We merged Pacific Holdings International and Rickmers Holding and sold the real estate business. The Rickmers Group is now made up of Rickmers Holding GmbH & Cie. KG and the three business segments Maritime Assets, Maritime Services and Logistics Services. This clear structure enables quicker decision-making, increases transparency and allows the business segments to act independently in a changing shipping market. We have also extended our corporate governance system as part of our strategic redefinition. The Executive Board is now advised and monitored by a professional Advisory Board that knows the industry well, with Bertram R.C. Rickmers as its Chairman.

10 8 Letter of the Executive Board RiCKMers Group Current challenges in shipping are financing, the trend towards larger and more environmentally friendly ships, lower capacity utilisation due to the oversupply of container tonnage and the continuing increasing dominance of the Asian markets. Financing terms have undergone a drastic change. Many banks are reducing their ship financing portfolios, and the German limited partnership equity market for ships has come to a complete standstill. Other proven financing forms are required to avoid a funding shortfall. Large ships that carry more than 10,000 TEU, or very large container ships (VLCSs), are the way to the future, particularly for East-West routes. They have efficient bunker consumption and are cheaper to operate and more environmentally friendly. Due to their size and new technology, however, these ships require a greater investment per ship. Despite the existing market oversupply, the search for more affordable and energy-efficient ships has led to new tonnage coming on to the market. This will have an adverse effect on the capacity utilisation of older and less efficient tonnage. We are also watching the constantly growing importance of the Asian market, where Chinese liner operators are winning increasing market shares. China is already responsible for around one third of containerised global trade. Ultimately, the market shares on the Far East-Europe route were redistributed at the end of 2011 by the increased joint ventures between various liner operators. This realignment is in all likelihood not yet complete. The sum of all these events is bound to lead to a consolidation of the shipping market. The Rickmers Group has prepared for this and will play an active role. With this annual report, which we are publishing for the first time in order to voluntarily increase our transparency, we are striking out in a new direction: in future the Rickmers Group will be taking account of the rules of the capital markets. We think this bodes well for our future.

11 Annual Report 2011 Letter of the Executive Board 9 We would like to thank our long-standing clients and business partners, and our employees on land and at sea, who have made our past successes possible. Together with you we look forward to leading the Rickmers Group to further success in the future. Yours sincerely, Jan B. Steffens Dr. Ignace Van Meenen

12 10 Extended Board Committee RiCKMers Group Extended Board Committee The Global Heads of the three business segments and the Chief Risk & Treasury Officer make up the Extended Board Committee of the Rickmers Group. The three business segments Maritime Assets, Maritime Services and Logistics Services each have independent market positions for their companies and services. Their services are used within the Group and by third parties. Holger Strack Maritime Assets After an apprenticeship as an industrial clerk, Holger Strack joined Rickmers Reederei in 1997 and worked in various departments and positions in accounting and treasury. He has been Managing Director of Rickmers Reederei since 2010 and has been in charge of the newly created business segment Maritime Assets since Jens Lassen Maritime Services After concluding his engineering studies, Jens Lassen held various international posts in differ ent segments of the shipping industry. He joined Rickmers Reederei in 2010 as Man aging Director. Since 2011 he has been in charge of the business segment Maritime Services and has also been head of the newly founded Rickmers Ship Management since Rüdiger Gerhardt Logistics Services Rüdiger Gerhardt began his training with Rickmers-Linie in Subsequently he held various positions within the company in the areas of finance, controlling and personnel, and then as Director. Since 2011 he has been Global Head for Logistics Services and Managing Director of Rickmers-Linie. Frank Bünte Chief Risk & Treasury Officer, Head of Capital Markets (from 1 April 2012) After a traineeship and studying for a degree, Frank Bünte worked in various functions and positions in the lending department of HSH Nordbank, where he was latterly responsible for the domestic shipping market. He has been part of the management of the Rickmers Group since 2011 and is head of the departments Risk Management and Treasury. As from 1 April 2012, he is responsible for the Capital Markets department, where the Rickmers Group concentrates its expertise in securing capital markets funding for the business segments.

13 Annual Report 2011 Kapitel 11 Rickmers Group CONTENTS 12 Maritime Values Strategy of the Rickmers Group 18 Maritime Assets 22 Maritime Services 26 Logistics Services 32 Corporate governance

14 12 Maritime Values Strategy of the Rickmers Group RiCKMers Group A SUCCESSFUL REDIRECTION The global economy is growing, and with it global trade and, of course, shipping. Over 90% of global trade is transported by sea. This underlines the immense importance of shipping in the globalised world. The Rickmers Group can look back on 175 years of tradition in shipping and has always successfully adapted to changing circumstances and new technologies. Today, too, the shipping industry faces substantial challenges, both from a global viewpoint and, more specifically, in daily business operations. The financial crisis is having unforeseeable effects on world trade and globalisation. Ongoing climate change and limited natural resources also require more responsible corporate behaviour. At the same time, we observe the continuing rise of Asia s economies, which is bound up with new challenges and different cultural rules. The changes in our environment are gathering pace. A CHANGING MARKET From an operational point of view, the changes in the shipping industry are marked by four challenges: The large container liner operators need to lower their costs per container slot. This is made possible by lower operating costs, which are mainly influenced by fuel consumption. This trend is resulting in larger ships and therefore greater investments per ship. At the same time, there is a need to build more environmentally friendly ships and to optimise existing tonnage in order to sustain operations. The sustainability aspect is therefore also becoming more important for the transportation of goods. We have addressed this issue actively and are working on innovative solutions to lower fuel consumption. The reduction of fuel consumption has a direct effect on emissions and operating costs. However, shipping is still the most environmentally friendly mode of transport based on volume of freight transported. Financing new, efficient ships is a major challenge for the coming years. The requirements imposed by banks when granting ship mortgage financing and those of equity providers are now more stringent. In addition to the provisions of Basel II, the effects of the financial and shipping crisis years are also taking their toll. Banks are providing less equity capital during the building phase than previously. Closed-end funds for long-term ship financing are currently finding almost no investors. This cuts off important

15 Annual Report 2011 Maritime Values Strategy of the Rickmers Group 13 financing sources for the industry. New financing concepts have to be developed and shipping needs to find new investors that are also prepared to invest more money per ship than before. Finally, we are seeing an increasing degree of specialisation in shipping. Against this backdrop, the Rickmers Group has decided to run the functions for the commercial management of ships (Asset Management) and the operational management of ships (Services) separately. One reason for this is the difference between the segments operational and financial requirements and the different products and services offered to clients. The SCORPIO RICKMERS, with 13,100 TEU container slots, is operated by the world s largest liner operator, Maersk These challenges have a direct effect on us as a shipping company. To remain on a par with the best liner operators, a company needs to be in a position to finance and manage very large container ships (VLCSs). The Rickmers Group has already proved itself in both respects. We also offer integrated solutions that meet the needs of our clients. The measures that we have now almost fully implemented to redefine the Rickmers Group in the changed markets will allow us to emerge stronger from the crisis to compete with marine transport and logistics service providers. In the 2011 financial year, we launched the EAGLE project to properly prepare the Group for new challenges and tasks. We have given the Rickmers Group a new focused structure in line with market conditions, abandoned non-shipping activities, and established clear aims and strategies in all corporate segments. We run our company on the basis of our core values: Leadership. Passion. Responsibility.

16 14 Maritime Values Strategy of the Rickmers Group RiCKMers Group CLEAR FOCUS ON SHIPPING The Rickmers Group has set its focus on shipping. It is now composed of the three independent business segments Maritime Assets, Maritime Services and Logistics Services. Along with this new alignment go the new allocation of responsibilities and the ongoing adjustment of our business segments to the needs of our customers. The resulting clear structure enables quicker decision-making, increases transparency and allows the business segments to act independently in a changing market. In the Maritime Assets segment, the company buys its own ships and charters them out to leading liner operators. Maritime Assets also offers ship financing, asset management and charter management services to third parties for individual ships and for whole fleets. This business segment is distinguished by more than USD 3.2 billion in managed assets and 116 ships under commercial management of which 37 ships are company-owned, 63 are owned by German limited partnerships and 16 are Rickmers Maritime Trust ships. organisational chart of the Rickmers Group, see also page 38. Maritime Assets, see also from page 18. The RICKMERS HAMBURG in the port of Hamburg

17 Annual Report 2011 Maritime Values Strategy of the Rickmers Group 15 The business segment maintains a global network, with close contact to the most important players such as liner operators, brokers, banks, institutional investors, private equity providers and ship managers in all areas of shipping, and maritime organisations. Maritime Services, see also from page 22. Logistics Services, see also from page 26. The Maritime Services segment provides fleet management for our own ships and for third-party ships. It offers technical services, puts together crews and sells products such as insurance. The strategic direction of the Maritime Assets and Maritime Services segments will remain closely linked but we have made a decision to allow the segments to offer their own products and solutions. The financing and management of services from these two segments is based on completely different requirements. Therefore we have given the Maritime Assets and Maritime Services segments their own organisational and legal structures, with independent management and clear, market-oriented goals, and each offers our clients a modern and customised portfolio of services. The Logistics Services segment comprises services in the logistics business. Rickmers-Linie is one of the world s leading specialists in logistics for machinery and equipment for the chemical and power plant industry, yachts, heavylift cranes, construction machinery and locomotives, and, in addition to the liner services, also offers contract-based (tramp) voyages. The Roundthe-World Pearl String Service, a global scheduled liner service for breakbulk, heavylift and project cargo, is unique. The greatest logistical challenge for this business segment so far was the transport of the Japanese space research module Kibo (the Japanese word for hope ). Rickmers-Linie was awarded this unique contract to transport the high-tech laboratory to be docked at the International Space Station ISS from Yokohama to the world space centre at Cape Canaveral just in time. Since September 2011 there has also been cooperation with the US-registered Maersk Line, Limited, under the name Maersk-Rickmers U.S. Flag Project Carrier, which specialises in the marine transport of project cargoes under the US flag.

18 16 Maritime Values Strategy of the Rickmers Group RiCKMers Group THREE BUSINESS SEGMENTS, ONE GOAL The cross-segment strategic aim of the Rickmers Group and its three business segments is to set new standards for the shipping industry. We seek to position ourselves as a leading partner for shipping services and logistics with our client-oriented portfolio of products, state-of-the-art management processes and efficient operations, coupled with innovative strength in the development of environmentally friendly solutions. And with this approach, we also want to raise the long-term value of the Rickmers Group. We seek to make each of the three business segments into global market leaders in their field through an even stronger client focus and with active brand marketing. We seek to ensure greater client value with high quality standards. All services are characterised by environmental awareness and cost effectiveness. The Rickmers Group wants to develop into the most prestigious employer in the maritime industry in order to attract and keep the best staff. Rickmers Holding GmbH & Cie. KG has a cross-segment function. It provides the business segments with services such as financing and allocation of resources. In doing so, it supports them in reaching growth and profitability targets. The holding company promotes innovation and, amongst other things, provides support to cross-segment areas such as Financial Services, Legal Affairs, IT Services, Human Resources, Communications, Strategy and Business Development. The Advisory Board monitors management of the holding company. STRONG POSITION IN FAR EAST Rickmers has been operating in today s boom market, Asia, for a long time. Since as far back as 1859, the ships of Rickmers Reederei have been making regular visits to ports in South-East Asia and the Far East. In order to spread commercial risk, Rickmers entered the rice business in the 1870s. Rice was transported from Asia to Europe on our own sailing ships and processed in the company s rice mills in Europe and Asia, including Siam today s Thailand. Since 1985, when Bertram R.C. Rickmers first ship entered service, the Rickmers Group has ordered 70 ships in China with an investment volume of USD 3.1 billion, and more than 30 ships in South Korea with an investment volume of USD 2.5 billion. Bertram R. C. Rickmers first ship entered service in In Singapore, the Rickmers Group holds 33.1% of Rickmers Maritime Trust, which has been listed on the Singapore Stock Exchange since The trust is managed by the asset management company Rickmers Trust Management, a fully owned subsidiary of the Rickmers Group.

19 Annual Report 2011 Maritime Values Strategy of the Rickmers Group 17 Iin 1985 Rickmers-Linie opened its first office in Tianjin, China. The first representative office of Rickmers-Linie in China opened in Tianjin in September Today Rickmers has 42 employees in China in seven branches (Beijing, Shanghai, Dalian, Hong Kong, Tianjin, Xingang, Qingdao) and has a sales agency in Urumqi (Xinjiang). Our China business will be extended in 2012 by recently nominated distribution agencies in Chongqing (the former capital of Sichuan province), in Changsha (the capital of Hunan province) and in Shenzhen (in Guangdong province in southern China). The multi-purpose heavylift freighters of Rickmers-Linie call at various Asian ports as part of their regular scheduled liner services. Rickmers (Japan) Inc. has had a branch office in Tokyo since 2006, and Rickmers (Korea) Inc. one in Seoul since These offices demonstrate the long-term commitment of Rickmers-Linie to its clients in Japan and Korea, underlining the importance of these markets. The presence of the branches has considerably increased sales in both markets and expanded our client base. Greenland North America Douglas Hamburg Duesseldorf Antwerp Europe Genoa Constanta Asia Bejing Dalian Houston Limassol Seoul Tokyo Shanghai Africa Hong Kong Mumbai Manila Colombo Singapore South America Australia Offices Agencies Round-the-World Pearl String Service Shuttle service between Europe, the Middle East and India Heading west: Service from the east coast of the USA to northern China, South Korea and Japan Heading east: NCS service from China, South Korea and Japan to the north coast of South America and the east coast of the USA Possible pre-carriage and on-carriage transportation

20

21 Maritime assets International shipping is the backbone of the global economy. It enables the worldwide exchange of goods and the international division of labour. The volume of traded goods grows ever larger, while there have also been some signs of consolidation on the supply side. At the same time, demand for economical, environmentally friendly ships is increasing. These are prospects for us.

22 20 Maritime Assets RiCKMers Group COMMERCIAL MANAGEMENT OF OVER 116 SHIPS The business segment Maritime Assets covers commercial management of ships with a focus on containers, breakbulk and multi-purpose carriers (MPC). The spectrum of services ranges from the initiation and financing of ship projects, via the chartering of ships to first-class companies, through to the sale of the ships. The main focus throughout is always earning the best possible yield for investors. The segment includes Rickmers Reederei, Polaris, EVT, Atlantic, Harper Petersen and Rickmers Trust Management. At the centre of our fleet are the 88 container ships, from smaller 500 TEU vessels to VLCSs with a capacity of 13,100 containers. Maritime Assets also manages a fleet of 15 MPC ships with crane capacities of up to 640 tonnes (combined). The fleet also contains bulk carriers, conbulkers and car carriers. Maritime Assets currently manages a total of 116 ships with a current market value of over USD 3.2 billion. The Rickmers Group owns 37 of these ships. The fleet of owned vessels has been fully financed since 2010 until at least On average each ship is four years old. In order to create economies of scale to lower costs per transported container, ships with more than 10,000 container slots are essential. Following the completion of work to widen the Panama Canal, these New Panamax container ships (NPX) allow for an important additional trading route from Asia to the east coast of the USA. Ships under 3,000 TEU are required for feeder services. Maintaining the value of the ships and preserving resources are central strategic aims for Maritime Assets, as they provide the basis for future charter income. Therefore, continuous work is carried out together with Maritime Services to modernise the fleet. These measures are designed to increase fuel efficiency and reduce fuel consumption, which secures our competitiveness against other asset managers. The long tradition of the founding family and extremely close contacts with all important players in the shipping markets, including charterers, brokers, shipyards, financial institutions, consultants and maritime organisations, puts the Maritime Assets segment in a position to adapt quickly and flexibly to the rapidly changing environment of international shipping markets. Whilst in the past ships have mainly been financed by private investors in closed-end funds, other financing models, such as private equity, institutional investors as well as equity and debt capital market products, will play an important role in the future.»in the future, Maritime Assets will also take on commercial management on behalf of third parties and thereby realise economies of scale.«holger Strack, Global Head Maritime Assets

23 Annual Report 2011 Maritime Assets 21 With our many years of cultivating a finely meshed worldwide network of brokers and shipowners, Maritime Assets is successful in chartering out vessels and has been able to significantly outperform the market in various ship classes. One of the most important clients is Maersk, the world s largest liner operator. The Rickmers Group is the only shipowner to have chartered 13,100 TEU ships out to Maersk. This makes the Rickmers Group a preferred partner of Maersk. We have already fixed over 75% of possible charter days for our own fleet for 2013, and we have already contracted out over 50% for We also have charter parties and personal relationships with the following companies: MOL, MSC, OOCL, Evergreen, PIL, Clipper and CMA CGM, to name but a few. Of the 116 ships, 12 are chartered out to Rickmers-Linie. Maritime Assets is internationally well positioned and has an excellent network in Asia. It has offices in Hamburg, Singapore, Shanghai and the Isle of Man. Rickmers is particularly well established in China, with its own local organisation supported by business relationships developed over many years. The Maritime Assets segment has already set up more than 70 closed-end funds for ship financing purposes. Our own trustee administers the funds of over 11,000 investors. The management has already planned, managed and in part resold over 180 ships. This means that Maritime Assets can demonstrate the unrivalled experience necessary for chartering and for the sale and purchase of ships. Executive bodies at Rickmers Maritime Trust Chairman of the Supervisory Board of the Rickmers Maritime Trust is Bertram R.C. Rickmers. Dr. Ignace Van Meenen is also a member of this Board. Independent members are Lee Suet Fern, Lim How Teck and Raymundo A. Yu Jr. On the management team are Thomas Preben Hansen (CEO) and Gerard Low Shao Khang (CFO). The Rickmers Group extended its presence in Asia in 2007 with the Rickmers Maritime Trust. Rickmers Maritime Trust currently owns and operates 16 container ships ranging in size between 3,450 TEU and 5,060 TEU, which are chartered out to leading container operators on long-term contracts. With a focus on the Asian container shipping market, we utilise the advantages offered by the maritime services available in Singapore. The trust is listed on the Singapore Exchange and included in the FTSE ST Maritime Index. The shareholders are the Rickmers Group with around 33.1% and institutional and private investors. The aim of the trust is to provide its clients with first-class services and achieve a stable, growing cash flow and increasing enterprise value for its shareholders. The long-term chartering strategy has proved its worth during the financial and shipping crises. Sales in 2011 stood at EUR million and the after-tax profit was EUR 18.3 million.

24

25 maritime services The qualifications of employees and the quality of services will be among the most important criteria for success in international shipping in the future. They ensure that international rules and increased client requirements are met. Employee training is also crucial for success in reducing environmental pollution in shipping. We will continue to set new industry standards in this area.

26 24 Maritime Services RiCKMers Group SHIPPING AND TECHNICAL MANAGEMENT EXPERTS As part of the strategic realignment of the Rickmers Group, we created the Maritime Services business segment to pool client and industry-specific solutions and innovative services for the maritime industry. We provide a wide range of services: technical and operational fleet management services previously offered by Rickmers Reederei and the selection, training and composition of crews. In addition to human resources issues, the segment is also responsible for monitoring ship newbuildings, supplying the ships on the basis of Group-wide procurement, brokering maritime insurance including claims settlement and, not least, questions about certification in accordance with international standards and regulations. We are also currently paying particular attention to increasing the fuel efficiency of ships. Our largest clients are currently the other two business segments Maritime Assets and Logistics Services. Our aim is to use the most modern management methods to establish standards that will increasingly allow us to provide services to third parties. Activities in the Maritime Services segment are based on the recognition that the long-term cost-efficiency of ship operations depends on a welltrained crew and professional on-board management who can guarantee high technical quality and high safety standards. This concept of shipcentric management has been successfully applied to optimise the operations of the Rickmers fleet since the 2011 financial year.»further education and training qualifications for our staff and improvements in fuel efficiency are the focus of our work.«jens Lassen, Global Head Maritime Services Client-oriented services with a focus on quality and energy efficiency Under this organisational principle, a ship is regarded as a production unit within an organisation. Captain, officers and superintendent form the ship management team. This allows for lean, efficient organisation and ensures that the high technical and safety standards we maintain on our ships are complied with.

27 Annual Report 2011 Maritime Services 25 Ship-centric Management A ship is regarded as a production unit within an organisation. The captain, officers and superintendent form the ship management team. Another main part of the Maritime Services segment is crewing finding and putting together on-board crews. In order to further improve the future availability of highly qualified crews and officers for the Rickmers Group in the Far East, we will be reorganising our crewing activities in Manila in the Philippines. We are also aiming to secure an A-licence for recruiting crew members from China and to set up a crewing agency in Shanghai. In order to have strong successful on-board management teams and functional teams ashore, we will continue to recruit and train highly qualified officers and give them the opportunity to further their career, take on responsibility and generate excellent economic results. Where possible, managing officers should always be employed on the same ship. This allows them to plan for the long term and be responsible for the efficiency of the ship s maintenance and the training of junior officers and crews. In order to improve efficiency and lower costs, the Maritime Services segment focuses on reducing ships fuel consumption, among other things. One of our aims for 2012 is to be one of the first shipping companies in the world to achieve certification for our measures for increasing fuel efficiency under the international standard ISO Measures that can be taken to increase fuel efficiency include adjusting boilers, regular cleaning of ship propellers, optimising trims on an ongoing basis, the use of bow coatings to reduce hydrodynamic resistance, training senior officers in fuel-efficient operation, small bow adjustments and heat recovery. Our offices at strategically important centres in Hamburg, Singapore and Limassol coordinate our worldwide activities and international representations. As a global maritime service provider, our aim is to achieve sustained profitable growth and contribute to the economic success of the clients by means of safe, efficient operations and continual improvements to our internal processes. As regards the services we provide for the other business segments in the Rickmers Group, this means that all ships are run in the same way and meet all international regulations and best practice recommendations. An integrated safety, quality and environmental management system drawn up in accordance with ISO 9001 and ISO is applied for the activities of the Maritime Services segment. As part of general process optimisation, by the end of 2013 the Rickmers fleet will be furnished with an integrated, process-based new ship management software with a materials management system.

28

29 Logistics services Reliability, punctuality, safety and the highest levels of technical competence generate success in logistics. We provide these and more in our transport from port to port and for some clients even door to door. Furthermore, with Rickmers-Linie and its Round-the-World Pearl String Service, we established a round-the-world liner service with unrivalled reliability, and we have built up a well-known, high-quality brand with excellent client loyalty.

30 28 Logistics Services RiCKMers Group WE SET BIG THINGS IN MOTION The business segment Logistics Services includes the logistical services provided by the Rickmers Group. The heart of this is Rickmers-Linie, a leading global specialist for the ocean transportation of breakbulk, heavylift and project cargoes, and deliveries for large-scale projects. Cargoes transported include transformers, generators, locomotives, pressure vessels, construction machinery, wind turbines, facility components for the chemical and petrochemical industries, breweries, cement facilities, and sailing and motor yachts. In 2003 Rickmers-Linie revolutionised the market by setting up the Roundthe-World Pearl String Service. With short transit times and a reliable schedule, the vessels on this liner service follow a fixed itinerary serving 16 ports around the globe on an eastbound route with departures every 14 days. The ports include Hamburg, Antwerp, Genoa, Singapore, Shanghai, Masan, Yokohama and Houston. Further port calls along the main route may be added in case of sufficient demand. For clients of Rickmers-Linie, the Pearl String concept in practice also makes supply chain traffic and justin-time deliveries possible, even in project cargo and heavylift operations.»our reliability, client focus and punctuality make us one of the most important providers of logistics services in the maritime sector.«rüdiger Gerhardt, Global Head Logistics Services Our Round-the-World Pearl String Service ensures regular and predictable transportation of heavylifts

31 Annual Report 2011 Logistics Services 29 Greenland North America Douglas Hamburg Duesseldorf Antwerp Europe Genoa Constanta Asia Bejing Dalian Houston Limassol Seoul Tokyo Shanghai Africa Hong Kong Mumbai Manila Colombo Singapore South America Australia Offices Agencies Round-the-World Pearl String Service Shuttle service between Europe, the Middle East and India Heading west: Service from the east coast of the USA to northern China, South Korea and Japan Heading east: NCS service from China, South Korea and Japan to the north coast of South America and the east coast of the USA Possible pre-carriage and on-carriage transportation The Round-the-World Pearl String Service is operated by nine modern and identical ships with a cargo capacity of 30,000 dwt that were built in China between 2002 and Each ship has four cranes, the two largest of which (each 320 tonnes capacity) can be combined to lift up to 640 tonnes of cargo on board. Flexible tweendecks mean that the height of the cargo holds can be adapted to meet customer requirements. Dehumidification systems ensure improved air quality for moisture-sensitive cargoes. One prime example of the excellent competence and reputation of Rickmers-Linie in transporting sensitive loads is the transportation of the Kibo research module of the Japanese space agency Jaxa. Rickmers-Linie transported this module from Yokohama to Port Canaveral for onward transport by space shuttle to the International Space Station (ISS). Kibo is Japan s main contribution to the ISS. The module provided add itional space for carrying out scientific experiments and includes storage capacity for materials, tools and supplies. The pressurised cabin also allows astronauts to work in comfortable surroundings. Planning and development of the module took more than 10 years. This was by far the most valuable cargo ever transported by a Rickmers ship. The insured value was more than four times the value of the ship transporting the cargo.

32 30 Logistics Services RiCKMers Group Rickmers-Linie was awarded the contract to transport the precious cargo due to the reliability of its liner transport and comprehensive planning possibilities. Before the contract was awarded and the module transported, the loading, safety and securing of the cargo was planned and simulated at the Rickmers-Linie head office in Hamburg using the unique 3D cargo management system RICOSYS. Advanced planning using RICOSYS contributed to the flawless implementation of the transport process. Careful long-term advanced planning meant that the delivery window set one year in advance could be met with precision. The punctual arrival of the RICKMERS NEW ORLEANS thus ensured the punctuality of Japan s contribution to the ISS. RICOSYS RICOSYS is our exclusive 3D cargo management system for the virtual planning of cargo operations. The main products provided by Logistics Services focus on the port-to-port ocean transportation of breakbulk, heavylift and project cargoes. At an early stage Rickmers-Linie also makes available to clients the consultancy services of its Transport Engineering team to determine optimal and additional points to best secure a cargo with the aid of the RICOSYS cargo management software developed by the company and its software partners. Some clients are offered full-service packages for heavylift, where door-to-door transportation from the factory to point of use is organised by Rickmers-Linie together with reliable haulage partners. Rickmers-Linie has branch offices in all the important markets and these generate over 90% of sales. In addition to its 20 branches, Rickmers-Linie is also represented by 50 agencies worldwide. Its own offices include Hamburg, Antwerp, Houston, Shanghai, Tokyo and Seoul. Logistics Services is also part owner of breakbulk terminals in Hamburg and Antwerp. This commitment allows Rickmers to ensure access to handling capacity in the breakbulk and heavylift sector. This investment is of strategic importance in light of the increasing expansion of container terminals in many ports. It also allows clients to be offered further services, in conjunction with the terminal operators, such as storage or other value-added services. The Logistics Services business segment has ambitious goals, including a quantitative and geographical expansion of the business in order to better compensate for regional fluctuations in demand. This should stabilise revenues and make them more foreseeable. The segment will also focus on profitable lines with high demand and add to business with additional charters outside the existing liner network. The offer of first-class services and utmost reliability is designed to secure new clients and to increase the loyalty of existing clients to Rickmers-Linie. In the future, the expansion of high-end logistics such as the doorto-door solutions will become even more important and contribute to profitable growth.

33 Annual Report 2011 Logistics Services 31 Rickmers-Linie takes its responsibilities for the environment and its employees very seriously. Therefore, its declared goal is to continue to reduce emissions from its ships. Slow steaming and hull coatings reducing hydrodynamic resistance, for example, are used to lower fuel consumption. As these measures also reduce ship operating costs, they also help to improve profitability. Rickmers-Linie meets strict safety regulations in order to ensure the bestpossible protection for the ship and its cargo. In order to strengthen and extend its leading market position for the future, the selection of the most suitable employees, and their qualifications and further training is one of the most important corporate policies. Training includes handling valuable cargoes in particular. Rickmers-Linie has a worldwide reputation for complex, punctual and reliable ocean transportation As a leading player in the global marine transportation of breakbulk, heavylift and project cargoes, client satisfaction is the highest priority for Rickmers-Linie. The company also places great emphasis on a pleasant working climate and transparent decision-making processes. Both staff and clients value the transparency, honesty and cooperative relationships. The integrated quality and environmental management system and the measures for occupational health and safety at Rickmers-Linie are certified by Germanischer Lloyd in line with ISO 9001:2008, ISO 14001:2004 and ohsas 18001:2007.

34 32 Corporate governance RiCKMers Group Corporate Governance The Executive Board and Advisory Board of Rickmers Holding regard it as their duty to ensure the continuity of the company by way of responsible and long-term corporate management and to bring about a sustainable increase in enterprise value. The Executive Board and Advisory Board of Rickmers Holding support the aims of the German Corporate Governance Code, which is used as a guideline. This means that the system of corporate governance at Rickmers meets the standards prescribed under German law for publicly listed companies (Aktiengesellschaften). Although Rickmers Holding is not listed on any stock exchange, corporate governance at Rickmers largely meets the recommendations of the German Corporate Governance Code in the version dated 26 May 2010, which is mainly aimed at publicly listed companies. Exceptions made by Rickmers Holding in application of the Code refer in particular to those parts that Rickmers Holding considers to apply to public companies with a large or anonymous circle of shareholders. MANAGEMENT Rickmers Holding has a dual management system with separation of personnel between the Executive Board as the managing body and the Advisory Board as the monitoring body. The Executive Board of Rickmers Holding is responsible for managing the company. Its responsibilities include determining company goals, the strategic direction of the Group, managing the Group, and handling corporate planning and Group financing. The Executive Board keeps the Advisory Board informed in a timely and comprehensive manner of all issues relevant to the company in its entirety, including business development, implementation of strategy, planning, financial and earnings position, the risk situation and risk management. It ensures compliance with statutory provisions and internal Group regulations. The Chief Executive Officer coordinates cooperation with the Advisory Board and consults regularly with the Chairman of the Advisory Board. The Advisory Board monitors the Executive Board and advises it on strategic issues and important business transactions. The Executive Board and the Advisory Board work together intensively and with trust in order to meet the requirements of effective corporate control and the necessity for effective and quick decision-making processes. Basic issues of corporate strategy and their implementation are openly discussed and voted upon at joint meetings. The Advisory Board has reserved rights of consultation and authorisation for important measures taken by the Executive Board.