2015 - SHV

SHV Holdings N.V.
Head office:
Rijnkade 1
3511 LC Utrecht
The Netherlands
T +31 30 233 8833
F +31 30 233 8304
www.shv.nl
e-mail [email protected]
Statutory seat:
Boulevard Gob. N. Debrot 36
Kralendijk
Bonaire
Chamber of Commerce
Utrecht no. 30065974
Chamber of Commerce
Bonaire no. 7111
The original version of 'SHV in 2015' was drafted in Dutch.
This document is an English translation of the original.
In the case of any discrepancies between the English and
the Dutch text, the latter will prevail.
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SHV in 2015 - Contents
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6
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SHV at a glance
Supervisory Board of Directors
Executive Board of Directors
Staff
Welcome to SHV
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12
14
16
Directors' report
Vision
Highlights 2015
Financial overview 2015
Business review 2015
34
36
37
Corporate Philosophy
SHV History
SHV Group Companies
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SHV at a glance
SHV is a privately held family company that aims to maintain its strong position in a number
of operational activities and selected investment activities. We invest for the long-term,
expand and develop businesses, and provide our customers with excellent value services.
We achieve all this thanks to a team of people who are proud to be part of SHV.
The company was founded in the Netherlands in 1896 as a result of the merger between a
number of large coal trading companies. After the decline of coal as the primary source of
energy, halfway through the twentieth century, SHV moved into other business areas.
Today, SHV is present in 56 countries on all continents and employs approximately 61,000
people. We are active in energy distribution, cash-and-carry wholesale, heavy lifting and
transport activities, industrial services and animal nutrition and fish feed. As an investor, we
are involved in the exploration, development and production of oil and gas, primarily in the
North Sea, and we provide private equity to companies in the Benelux.
Energy distribution
SHV Energy is the leading supplier of LPG in the world. Well-known brand names include
Primagaz, Calor Gas, Liquigas, Super Gas, Ipragaz, Supergasbras, Xiweigas and Gaspol.
SHV Energy is also involved in the distribution of LNG and renewable energy.
Cash-and-carry wholesale
Makro is a focused cash-and-carry wholesaler with 161 stores in South America. It
distributes food and non-food products with excellence in price, quality and variety to
professional customers.
Heavy lifting and transport
Mammoet is a leading company specialised in heavy lifting and transport solutions
worldwide. Mammoet provides services to the oil and gas, petrochemical, power generation,
civil and offshore sectors.
Industrial services
ERIKS is engaged in the supply of high-quality mechanical engineering components and
associated technical and logistics services. ERIKS has a leading position in its markets in
Europe, the USA and Asia.
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Animal nutrition and fish feed
Nutreco is a global leader in animal nutrition and fish feed. Its advanced nutritional solutions
are at the origin of food for millions of consumers worldwide.
Oil and gas investments
Dyas invests in joint ventures in the exploration, development and production of oil and gas.
Dyas acts as a non-operator, with a primary focus on the North Sea.
Private equity investments
NPM Capital provides private equity to companies with above-average growth opportunities
and focuses mainly on unlisted, medium-sized businesses in the Benelux. As a reliable and
long-term investor, NPM Capital has built up a strong market position over several decades
and has holdings in 26 companies.
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Supervisory Board of Directors
Mrs A.M. Fentener van Vlissingen, Chairman
P.A.F.W. Elverding, Vice-chairman
P.C. Klaver, Vice-chairman
R.W.J. Groenink
Ph.C.O.E.A. von Hammerstein-Loxten
R.J.M.S. Huët
Mrs P. Mars Wright
M.L. Mautner Markhof
Mrs M.J. Oudeman
Executive Board of Directors
S.R. Nanninga, Chairman
B.L.J.M. Beerkens (until December 31, 2015)
R. Kandelman
W. van der Woerd
Staff
Company Secretary - J. van Klink
Corporate Talent Management - J.M. Alberdingk Thijm
Financial and Economic Affairs - C. Dekker
Fiscal Affairs - G.Y.B. Kruisinga
Information Technology - M.J. de Hoop
Internal Audit - Th. Smit
Legal Affairs - Mrs L.E. de Beer
Treasury - W.N. Pals
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Welcome to SHV
Once again, the year gone by was an intense year. Despite an increasingly unstable global
political environment and a stagnating world economy, SHV and its people were able to
achieve good results in 2015.
Nutreco, active in the animal nutrition and fish feed business, was added to the group,
following a successful public offer. The acquisition concludes the strategic search for new
business after the divestment of Siam Makro in 2013. In reinvesting the proceeds of this
divestment, SHV was able to count on its shareholders' confidence and trust, as they did not
put pressure on the process in any way. This says much about the nature of SHV.
With the acquisition of Nutreco, SHV is less dependent on energy for its results. As was to
be expected, several of SHV's businesses were negatively affected by the lower oil price.
To create a base for sustainable growth, SHV invested further in attracting and developing
talented people and strengthening the organisation in the areas of people affairs, IT, audit,
compliance and control. As we often state, people are key to the success of SHV. We
believe that it is not enough for a company to be active internationally in very different
businesses and to have good professionals; we consider it essential for employees to share
common values and to feel passionate about improving and creating business. The way SHV
achieves this is through the in-house development of talent and through frequent contacts
between SHV's people around the world, at any level.
In May, the Supervisory Board of Directors visited Nutreco’s business in Stavanger, Norway.
Learning more about the fish feeding business and meeting several of Nutreco’s employees
have made us even more enthusiastic about this company than we were before. The
Executive Board of Directors has put considerable effort into planning the successful
integration of Nutreco into SHV, a process that remains ongoing.
Sustainability and innovation play an increasingly important role in SHV's activities.
Throughout SHV's 120-year history, its employees have focused on building a lasting,
reputable company that has succeeded in reinventing itself time and time again. Today, this
vision is embodied in our strategy and is communicated by a simple creed: Make it Last.
The Supervisory Board held five meetings in 2015, engaged in several conference calls and
was in regular contact with the Executive Board. At each meeting, the Executive Board
informed the Supervisory Board about the financial position of SHV and its businesses, the
main developments in their markets, and the performance of each business and of the group
as a whole. The strategy of SHV as a whole and of several of SHV’s activities were
discussed, as well as all significant investment proposals. The Supervisory Board was
strengthened by the appointment of Mr Jean-Marc Huët as member of the Supervisory
Board.
Mr Boudewijn Beerkens has informed the Supervisory Board and his colleagues on the
Executive Board of his intention to leave SHV. We respect his decision and are grateful to
Mr Beerkens for his contribution to SHV and in particular for his role in the acquisition of
Nutreco, the introduction of SHV's Business Support Framework, and the realisation of
important changes within the financial organisation.
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With continuing worldwide political instability, lower oil prices, a volatile economic
environment and changing weather patterns, 2016 looks set to be another challenging year.
Added to these challenges are today’s information and communication patterns (“immediate
and always online”) and the increasing focus on compliance and control in the different
legislative environments in which SHV operates.
The Supervisory Board wishes to thank the Executive Board and all employees, who have yet
again helped the company to achieve good results. We greatly appreciate their commitment
to serving SHV's customers and their diligence in performing their work.
Utrecht, March 18, 2016
On behalf of the Supervisory Board of Directors,
A.M. Fentener van Vlissingen
Chairman
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Vision
SHV’s firm foundations, entrepreneurial spirit and wealth of experience provide a solid base
for continued growth. As our operations expand, we take care to remain close to our
customers. Therefore, decentralisation is fundamental to the way we do business.
Over the years, SHV has demonstrated its capacity to change. By establishing ourselves
as a leading player in our individual markets, and striving to stand out from the crowd, we
continue to build a solid company.
Investment for the future
A successful long-term investment strategy is important for our future. We invest to develop
our existing activities. We seek expansion organically and through acquisitions. We invest to
develop new business activities, which bring challenges and opportunities. Our shareholders
accept the risks that come with any new ventures.
Make it Last
For more than a century, SHV has kept one eye on its business and the other firmly on the
future. Building a sustainable company has always been our key focus. Today, this vision is
embodied by a simple creed: Make it Last.
Make it Last means we take control over our own destiny. Make it Last means sustainable
growth in all areas simultaneously: operational, organisational, financial, economic and
ecological.
Make it Last stands for consistency, sustainability and quality in everything we do. It also
stands for a belief in the innovative strength of our people and the adding of value to our
customers and the world. It means we use what we have as efficiently as possible, always
deliver quality, choose the right people, never rest on our laurels and think continuously
about our right to exist.
Sustainovation
We know we only have one planet to pass on to future generations. Our approach to
sustainability goes further than reusing, renewing and recycling. To be a truly sustainable
company we believe that the combination of sustainability and innovation is key. We call
this Sustainovation.
Sustainovation should not be a buzzword, it must result in concrete achievements.
Delivering these results will continue to be a central challenge for each and every one
of SHV’s activities.
Sustainovation should be integrated into the way we do business. We want to achieve
growth through sustainable innovation with a view to developing new products, services or
business models. By using scarce resources prudently, switching to renewable sources and
recycling and minimising waste, we can reduce our environmental footprint. We can also
help our customers to reduce theirs.
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Investing in people
We believe our people make a difference. They embody our values, support our culture and
build our success. We recognise that our long-term commitment to the business requires a
long-term people strategy too. As a result, we prefer to promote from within. We invest in
our people by offering challenging careers with real responsibilities. We complement this with
specific training and development programmes aimed at growing our current and future
leaders.
Shared values and
objectives unite us
Our company is shaped by our people who work with shared values and business objectives.
Our culture is typical for its professionalism, common sense and entrepreneurship. Mutual
respect and trust provide the basis for sound working relationships between our people, who
are encouraged to take responsibility in their work and are stimulated to be entrepreneurial.
Knowing that our people are capable of meeting the challenges of today gives us confidence
in the future.
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Highlights 2015
In a public offer that took place between October 2014 and August 2015, SHV was able to
obtain all of the shares in Nutreco, active in animal nutrition and fish feed. The decision to
acquire Nutreco was the outcome of a thorough strategic study that reviewed global trends
and several industries, as well as our desired spread in activities and geographies.
With the addition of Nutreco, SHV at year-end 2015 had 61,000 colleagues. SHV continued
to focus on the development of its people and once again prioritised internal succession and
the cross-group exchange of key positions. To make that possible, many development
programmes were initiated, also for newly recruited young potentials. Health and safety have
for decades been major cornerstones of our people policy, and this will remain so in 2016.
It is SHV’s ambition to extend the life-cycle of its activities through continuous growth
and sustainable value creation. To realise this, a new strategy for the coming years has
been developed throughout the company under the all-encompassing creed ‘ Make it Last’.
The strategy builds on SHV’s unique DNA and corporate philosophy which is dedicated to
investing in people, focused on continued growth and committed to creating a culture where
innovation takes the lead in generating sustainable long-term value. The strategy is based on
six pillars: People, Sustainovation, Customer Satisfaction, Return on Capital Employed
(ROCE), Business Support Framework (BSF) and Sales growth.
SHV now operates in 56 countries on all continents. Although our scope has widened, the
volatility and unpredictability of the countries and markets we operate in remains unchanged.
Our vast spread over sectors, markets and geographies brings challenges but also enables
us to absorb fluctuations. The year 2015 is a good example of this.
Worldwide GDP growth is at its weakest point since the global economic crisis started
in 2008. The Chinese economy, which had until recently been a major engine for global
consumption and production, grew by less than 7% in 2015 for the first time since 2009.
This slowdown is expected to have an effect on countries in the region and beyond. In the
Middle East, growth has stagnated as a consequence of continuing turmoil and a lower oil
price. Europe’s economy is recovering, albeit modestly. Latin America’s larger economies are
struggling, and poverty is on the rise again. The US economy – which is strongly affected by
the decline in commodity prices in both a positive way (as a boost to consumer spending)
and a negative way (its troubled oil and gas industry) – is still growing considerably. Africa’s
growth has improved in the last three years.
Since July 2014, oil prices have been declining sharply. Brent crude oil reached an elevenyear low, with prices as low as $ 36 per barrel at the end of 2015. This trend has directly
affected the business of Dyas, which sells oil and gas produced from the oil and gas
projects in the North Sea it has invested in. As oversupply may cause the oil price to remain
relatively low for a longer period, it becomes harder for exploration and production projects
to remain economically viable. Oil and gas companies are cutting long-term capital
expenditure and are waiting for better days, resulting in the postponement or cancellation
of many projects. This has impacted an increasingly broader service industry, including
companies such as ERIKS and Mammoet. Fortunately, SHV Energy has been able to benefit
from a decline in LPG supply prices. The impact of the lower oil price was further
compensated by SHV activities which are less exposed to energy markets, for example
the recently acquired Nutreco.
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The addition of Nutreco has made SHV more robust in the changing world around us. It is
a solid business with good growth opportunities, and its addition has improved our industry
spread and also given us new inspiration. The integration of Nutreco into SHV is proceeding
well. The professionalism and positive attitude of our new colleagues have certainly helped in
this regard, as well as the strong cultural fit. Already, we are seeing other SHV activities
learning from Nutreco, and vice versa.
The instability of the world we operate in is reflected in the current state of our businesses,
which have had both ups and downs in their individual performances. Overall, however,
SHV is performing well, mostly owing to excellent results from both SHV Energy and Nutreco
(included as of mid-March 2015). Capital gains from NPM Capital and currency gains at
corporate level further contributed to net income.
SHV Energy’s very good result is primarily due to good margin management, cost
containment and numerous initiatives to further improve customer relations. Makro’s
performance was affected by lower results in Brazil, where the economic and political
climate is very tough. Other Makro countries managed to deliver solid results. Mammoet
performed satisfactorily on an operational level due to good results in the USA and Europe,
but the overall result has been severely affected by a number of one-offs. ERIKS had
a difficult year, as the effects of a lower oil price on its customers resulted in lower sales.
In its first year at SHV, Nutreco exceeded expectations. This is mostly the result of
favourable market circumstances and an improved product mix. In spite of continued lower
oil and gas prices, Dyas reported a good result, supported by higher volumes and a reduced
tax rate for oil and gas production in the UK. For NPM Capital, 2015 was a good year, as it
managed to exit participations at attractive prices and successfully invested in promising
new participations as well as existing ones.
In 2016, which will mark SHV’s 120th anniversary, we expect another challenging year given
the volatile environment with continued low oil and gas prices. Since its foundation, SHV has
been a profoundly entrepreneurial company and never afraid to change. We are determined
to continue operating with this mind-set by making new investments in order to sustainably
grow our businesses. Great effort will be put into further improving our operational result,
with particular focus on some parts of our businesses which are currently not performing
fully in line with expectations. In 2016, the organisation will be further strengthened, among
others in the areas of people development, compliance and control.
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Financial overview 2015
SHV’s net income significantly increased from € 523 million in 2014 to € 746 million in 2015.
SHV Energy and Nutreco, which both performed very well in 2015, contributed considerably
to these improved results.
Total sales in 2015 amounted to € 18.1 billion. This represents an increase of 22%
(€ 3.2 billion) compared with 2014. This increase is primarily attributable to the completion
of the acquisition of Nutreco in March 2015. Excluding Nutreco's sales, which amounted to
€ 4.6 billion, total sales dropped by € 1.4 billion. This decline was caused by lower energy
prices. The strong devaluation of a number of currencies against the euro, mainly the
Brazilian real and the Venezuelan bolivar affected sales by € 365 million, offsetting sales
growth at Makro and Mammoet.
On an operational level, performance of SHV’s Groups varied. At € 788 million, income from
operations improved by € 103 million compared with 2014. This increase was mainly the
result of the acquisition of Nutreco and a good performance of SHV Energy. Dyas, ERIKS,
Mammoet and Makro reported a lower operational result than the year before.
The 2015 results were negatively impacted by exceptional items amounting to € 111 million.
These include net impairment losses on energy-related assets due to lower oil prices, and
additional provisions for claims.
Net income in 2015 was positively affected by three factors: higher income from private
equity investments due to favourable exits at NPM Capital, a foreign exchange gain on
money held in US dollars, and a lower average tax burden compared with 2014. The average
tax rate decreased from 29.9% to 14.5%, caused by Dyas due to a decrease in the UK oil
and gas tax rate, lower taxable profits, and investment allowances for UK oil and gas
production. The net positive translation effect of all currency fluctuations on SHV’s 2015
net income amounted to € 27 million.
As in previous years, working capital improvement was a strong focus across all Groups.
The working capital development of SHV Energy, Mammoet, ERIKS and Nutreco generated
a positive cash flow, which was partly offset by the working capital development at Makro
and Dyas.
Operational cash flow improved in line with the increase in income from operations, which
was mainly driven by the contributions of Nutreco and SHV Energy. Investment cash flow in
2015 amounted to € 3.4 billion, which compares with € 1.3 billion in 2014. This significant
increase is attributable to the completion of the Nutreco acquisition during 2015. In addition,
€ 52 million was spent on smaller acquisitions, mainly by ERIKS and SHV Energy. A total of
€ 851 million was spent on operational fixed assets, namely investments in oil and gas fields
by Dyas, gas cylinders and tanks by SHV Energy and heavy lifting and transport equipment
by Mammoet. NPM Capital acquired an interest in Hendrix Genetics, made several
investments in existing participations, and divested a number of participations.
At the end of 2015, SHV's group equity amounted to € 5.2 billion. The decrease compared
with 2014 was mainly due to the goodwill paid on the completion of the Nutreco acquisition
of € 1.8 billion, which was directly charged against equity. A part of shareholders’ equity is
invested in countries with currencies other than the euro. In 2015, the total negative effect of
converting these currencies into euro amounted to € 215 million. Total liquidity amounted to
€ 1.3 billion, and the net debt position was € 537 million.
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The return on shareholders’ equity was 15%, which was unchanged from 2014 (15%,
excluding the effect of the sale of Makro Thailand).
Results, in millions of euro
Net sales
Income from operations **
Net income
Amortisation and depreciation
Income taxes
Dividend
Cash flows, in millions of euro
Changes in working capital
Operational cash flow
Investment cash flow
Financing cash flow
(
2011
2012 *
2013
2014
2015
17,362
873
782
20,010
985
735
17,609
885
3,559
14,906
685
523
18,149
788
746
522
327
238
644
298
254
569
334
265
505
228
276
706
130
287
70)
1,277
597)
474)
82
1,360
2,274
522)
90
1,172
1,256)
520)
349
1,609
3,426)
457)
10
1,354
1,666)
370
Financial position, in millions of euro
Shareholders’ equity
3,513
Equity of the Group
3,784
Total assets
10,174
(
(
(
(
(
(
(
(
3,823
4,068
10,280
6,774
6,930
12,304
6,597
6,763
12,053
5,015
5,182
12,418
22%
19%
53%
8%
15%
37%
40%
56%
56%
42%
1.01
1.22
2.37
2.31
1.36
Employees, at December 31
Nominal number
54,700
55,800
47,100
48,500
60,800
Amounts per share
Net income
Dividend
107.76
32.75
101.22
35.00
489.82
36.50
71.91
38.00
102.56
39.50
Ratio information
Net income as a percentage of
shareholders’ equity
Equity of the Group as a
percentage of total assets
Current assets in relation to
short-term liabilities
* restated for changes in
accounting principles
** 2013: excluding gain on sale
Makro Thailand
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Business review 2015
SHV is a privately held company consisting of a number of operational activities and
selected investment activities. The operational activities are in the areas of energy
distribution and marketing, wholesale cash-and-carry, industrial services, heavy lifting and
transport, and animal nutrition and fish feed. The investment companies are active in the
exploration, development and production of oil and gas, and private equity. The private
equity company, with its base in the Benelux, invests in midsized enterprises in a wide
range of sectors.
The company operates globally but is at the same time decentrally organised to ensure that
its diversified businesses maintain close and loyal customer relationships. SHV aims to
achieve growth in each of its activities, whether of an operational or an investment nature,
by growth through performance and acquisitions for the purpose of consolidation. The
company’s strategy is to develop strength in niche markets and to deliver sustainable growth
through a relentless focus on safety, ethical values and investing in its people.
Risks
Risks and uncertainties define all business environments. Risk-taking is an essential part of
business and a precondition for achieving adequate returns. The risk environment in which
SHV companies create value and generate income is determined by both manageable risks
and a number of external risks that are beyond the control of SHV. The manageable risks
include commercial, operational, financial, tax, compliance and regulatory risks, the reliance
on information technology and the ability to recruit and retain employees.
Risks change constantly as the internal and external dynamics of the operating environments
of SHV companies change, especially in the current uncertain and volatile global economic
environment. This can have an impact of an unpredictable nature on SHV’s business. Also
taking into account the competitive environment, it is essential for SHV management to
continue to devote attention, and take a proactive approach, to market developments and
their consequences for the businesses in which SHV operates. Furthermore, an area requiring
constant attention from all the businesses remains the challenge of recruiting, developing
and retaining qualified and talented people to ensure on-going successful performance.
The Business Support Framework is instrumental to support the monitoring of risks.
SHV’s profitability is further influenced by several other external risk factors. Geopolitical
risks exist, for instance, where the company owns assets in politically unstable countries,
which are further compounded by potential problems related to terrorism, social unrest
and the scarcity of vital resources. SHV operates in countries with differing business ethics.
Governmental interference in business, changes in legislation, the continuing inequitable
enforcement of regulations, and sudden increases in taxation and levies in several
jurisdictions, further add to risk and related costs. Populist government measures bear down
on business also. External risk factors also include economic factors such as inflation,
interest rates, commodity prices, the sovereign debt crisis, exchange rate policies and stock
market returns (in so far as they have a negative impact on companies’ pension liabilities).
Reference is made to the Risk Management Paragraph in the Financial Statements.
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SHV Energy
SHV Energy is a leading, dedicated off-grid energy distributor. In that capacity, it
continuously aims to break new ground in developing existing and new markets for
liquefied petroleum gas (LPG) around the world through effective innovation, education and
promotion strategies. SHV Energy operates in more than 20 countries, where it provides the
decentralised energy sources of LPG, liquefied natural gas (LNG) and biomass to tens
of millions of customers.
The results of SHV Energy, especially in Europe, tend to be influenced by the weather.
A mild or cold winter will determine heating-related demand. The purchase price of LPG
fluctuates and depends on supply and demand situations in the applicable LPG markets,
the price of oil, and movements in exchange rates, particularly in the US dollar. These
influences are mitigated by SHV Gas Supply & Risk Management, which advises on and
executes risk management and associated hedging on behalf of SHV Energy’s business
units. SHV Energy’s results are also affected by government policies, for example those
related to pricing or regulations of a technical or operational nature. Managing health and
safety risks is of paramount importance in the energy business.
For SHV Energy, the gradual economic recovery in Europe has supported industrial and
commercial LPG volumes and customer creation in that segment. Domestic customer
creation from newly built housing was still limited. A colder winter than the year before in
Europe positively influenced domestic heating volume. In Brazil, an important market for
SHV Energy, the sharp economic downturn affected sales volumes.
Overall, SHV Energy performed very well in 2015, with particularly the business units in
Great Britain, China, Italy and France reporting outstanding results. Overall sales volumes
were higher than in the previous year. However, the deteriorating economic situation in some
countries led to bulk customers using less gas than expected, most notably in Brazil.
Margins were healthy due to the favourable cost of product, good margin management
and a favourable sales mix. In addition to good margins, the good result of SHV Energy was
made possible by hard work ‘behind the scenes’, for example through the optimisation of
processes. Centrally led commercial and operational excellence programmes were initiated,
consisting of a comprehensive range of strategic change projects – including projects to
improve procurement, supply chain management and customer satisfaction. In addition to
strengthening relations with existing customers, SHV Energy increased its efforts to attract
new customers, developing a more targeted approach to converting heating oil customers to
the low carbon emitting fuel of LPG, particularly in Great Britain, Belgium and Ireland.
In addition to organic growth initiatives, SHV Energy aims to grow through a strategy of
acquiring LPG businesses and assets to strengthen its position. This led to investments in
particularly Italy, Great Britain and also Turkey, where an agreement was signed to acquire
the cylinder and autogas activities of Petgaz. In addition, SHV Energy increased its interest
in Balcas in the UK, active in wood pellet production and renewable energy. Following a
strategic review, an agreement was signed for the divestment of Prímagáz Hungary at the
end of the year.
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SHV Energy continued to further develop its LNG activities and by now has established a
market-leading position in small-scale LNG in the emerging Northwest European market. In
2015, market circumstances in this segment were difficult, as the strong decline in energy
prices negatively impacted the development of the European LNG business. Competitiveness
of LNG versus oil – a key pillar of the LNG business proposition – diminished, which led to
lower than expected growth of the LNG market. In spite of the challenging circumstances,
LNG volumes increased compared with 2014.
In 2016, SHV Energy is planning to distribute Bio LPG (biopropane) as a new and renewable
alternative to LPG and LNG, which are fuels that already emit low levels of carbon.
Preparations for this have commenced with the construction of the world’s first Bio LPG
production facility in Rotterdam, for which SHV Energy will be the exclusive distributor.
During the year, SHV Energy established a new sustainability reporting structure, which
includes key performance indicators for CO 2 , water and waste and a SHV Energy specific
indicator on carbon reduction resulting from customers switching their fuel supply. In 2015,
a number of so-called ‘Innovation Challenges’, which are relevant business issues, were
successfully executed by Calor GB and Liquigas on the Sustainovation Hub, SHV’s internal
online innovation platform.
SHV Energy’s strong result in 2015 is mostly attributable to good margin management and
cost containment. At 4.8 million tonnes, overall volumes were slightly higher than last year.
Makro
Makro is a cash-and-carry wholesaler that sells high volumes of food and non-food products
at low prices to professional customers. These include small and medium-sized retailers,
horeca and the institutional market. Makro’s mission is to distribute products with excellence
in price, quality and variety in assortment to professional customers, offering them
competitive advantages and opportunities for growth. Makro currently operates over 160
stores in five countries in South America: Brazil, Argentina, Venezuela, Peru and Colombia.
Makro's results depend largely on the generation, retention and spending of customers,
which in turn is influenced by the development and stability of the economies in which
Makro operates. In 2015, the overall economic and political situation in South America
was increasingly unstable and difficult to operate in. Particularly in Brazil, Argentina and
Venezuela, circumstances were very challenging, with issues such as growing unemployment
and high inflation. In contrast, the situation in Colombia and Peru has been relatively stable
and their economies have continued growing at a considerable pace.
In the wake of Brazil’s worst recession in decades, Makro Brazil struggled to maintain
a healthy performance. Nonetheless, during the year it gradually managed to improve
performance as a result of a new, thorough action plan, which is executed by a professional
and dedicated team, and which included a vast number of measures such as improving
internal processes, enhancing stock management and strengthening Makro Brazil's
relationship with its suppliers. Additionally, to deal with changing customer demands, Makro
Brazil piloted a new delivery sales channel called Makro4U aimed at horeca customers and
small food retailers. The results of the action plan were already visible in the last quarter of
2015 and should continue into 2016. Nevertheless, the measures taken did not prevent
Makro from reporting a lower overall result in 2015 than the year before.
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In spite of the often challenging circumstances, Makro managed to report a solid
performance in Argentina, Venezuela, Peru and Colombia. Makro Argentina is performing
satisfactorily, in the face of a challenging economic and political environment. In a
competitive market, management continues to focus on the professional food customer
by offering a low cost base, low price image and high volumes. To grow its business,
Makro Argentina is building on its ‘M&K’ network licensing model, aimed at supporting
independent food retailers who are uniquely branded and supported by supplying them with
Makro’s own brand products at competitive prices. Makro Colombia is performing well, with
increased sales volumes and lower costs, and is gradually moving its focus towards the food
professional customer. As part of a larger divestment programme to make better use of
excess land, Makro Colombia sold its property in the city of Boyaca. Makro Peru is reporting
a very healthy sales growth, as well as a significantly improved operational result. With the
opening of the 11 th store in Villa El Salvador in Lima, Makro now has a strong foothold in
the Peruvian capital. During the year, Makro Peru continued to focus on increasing the
share of wallet of professional food customers and further expansion. The unpredictable
economic and political environment in Venezuela continues to present Makro with a variety of
challenges. Sales have been impacted by the low availability of products and by government
price controls on basic products. As in previous years, circumstances are extremely difficult
and it is therefore a remarkable achievement on the part of everyone at Makro Venezuela to
keep the business running.
During the year, Makro continued to invest in IT support with the gradual implementation
of a new Enterprise Resource Planning (ERP) and a finance application in all five countries it
operates. Strengthening the development of talent continued to be a priority for Makro in
2015: two new regional learning and development programmes were established as well as
a regional trainee programme.
Makro is in the process of developing new policies and organisation structures for
Sustainovation: it is investing in an own brand line of sustainable products, reducing
CO 2 emissions at its stores, and improving the infrastructure and efficiency of its stores.
To embed innovation in its processes, Makro launched its first local Sustainovation Hub
Challenge, initiated in Colombia.
In 2015, overall sales at Makro improved by 16% in local currency terms (a decrease of 3%
in euro terms). Makro's net income was negatively impacted by the lower performance of
Makro Brazil and the depreciation of local currencies against the euro. All other Makro
countries performed better than the previous year. Makro opened one new store in Peru
and closed one store in Brazil, bringing the total number of stores to 161 at year's end.
Mammoet
Mammoet helps its clients to improve construction efficiency and optimise the uptime of
plants and installations. To that end, it provides solutions for lifting, transporting, installing
and decommissioning large and heavy structures. The services of Mammoet are focused on
the petrochemical and mining industries, civil engineering, power generation and offshore
projects. The logistical challenges in these industries are growing daily. Factors such as
remote locations, harsh climates and a strong emphasis on environmental protection require
smarter and safer solutions.
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Mammoet’s heavy lifting and transport activities generally rely for their profitability on
the overall investment climate and, more specifically, on the dynamics in the oil and gas,
petrochemical, power generation, civil engineering and offshore sectors. Cyclical risks are
mitigated by operating in both the project and rental market and also through Mammoet’s
presence in various market segments and regions. With a global tendency of growing order
size, the profitability of larger projects in particular is increasingly dependent on project
management capabilities. At Mammoet, managing health and safety risks is of crucial
importance.
The capital-intensive world of heavy industry has come under pressure because of low
commodity prices. Important markets for Mammoet are affected, including Canada – where
new projects in the oil sands need an average oil price well in excess of current prices to
break even – and this translates directly into lower sales. However, due to a number of
maintenance projects, Mammoet in Canada was able to compensate this negative effect to
a certain extent and remain an important contributor to Mammoet's overall results. In the
USA, Mammoet is performing better than expected due to improved sales and lower-thanexpected costs. Mammoet Europe also had a very strong year as a result of high activity
levels in the Netherlands and improved utilisation in the UK. In the Asia Pacific region,
performance was in line with expectations.
To strengthen its sales organisation, Mammoet has taken a number of concrete actions in
2015, including steps to improve market intelligence, communications and branding, sales
and tender guidelines, and sales reporting. Furthermore, Mammoet took steps to make
necessary improvements with regard to contracting and project management, amongst others
with the introduction of a new risk and opportunity assessment tool. Additionally, Mammoet
was able to further improve management information with regard to the utilisation of its
equipment and people.
Every day, Mammoet deals with a variety of heavy lifting and transport challenges for
customers all over the world. During 2015, a number of sizeable, complex projects were
completed successfully, such as the installation of a tidal power plant in the Netherlands,
the decommissioning of a nuclear pilot reactor in Germany and the transport of heavy
refinery items in Egypt over 247 kilometres – the longest route travelled in Mammoet history
using self-propelled modular transport vehicles. Customer satisfaction, one of SHV’s strategic
pillars, has long been a focus point for Mammoet. This year the company continued to make
significant improvements to its net promoter score (NPS) processes to measure customer
satisfaction.
In challenging market circumstances, Mammoet managed to deliver a satisfactory operational
performance, with good results in particularly Europe and the USA. Sales of € 1.2 billion,
adjusted for currency impacts, improved by 3% versus last year. The result was however
severely impacted by provisions on a number of specific projects. As a result of this,
Mammoet’s net income was lower than the previous year.
ERIKS
ERIKS is a leading international provider with a focus on technical, sustainable and valueadded solutions for industrial applications. It offers a wide range of mechanical engineering
components and associated technical and logistics services. Sharing know-how and being
involved in finding technical solutions for customers are at the heart of everything ERIKS
does. This enables ERIKS to make a positive contribution to the business operations of its
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customers. The products and services offered by ERIKS can be divided into the following
categories: flow technology; power transmission; industrial plastics; sealing technology; and
tools and maintenance products.
In general, the success of ERIKS’ business depends on the level of industrial production,
especially with regard to original equipment manufacturers (OEM). The market for the
maintenance repair and overhaul segment (MRO) is less cyclical, although it is still exposed
to the general economic climate. The distribution of ERIKS’ activities between OEM and
MRO, in combination with a healthy geographical spread, mitigates these business risks.
It was a difficult year for ERIKS due to the steadily declining oil price and challenging
circumstances in various markets. ERIKS’ subsidiaries in the USA were affected as they are,
beyond average, exposed to the troubled oil and gas sector. The low production of shale
gas and the postponed refinery shutdowns affected the performance of mainly The Newdell
Group and Lewis-Goetz. To deal with adverse market conditions in the USA, ERIKS’ has
developed an action plan which will be executed in 2016. In Europe, results were impacted
by lower sales in Germany due to the crisis in Russia and a weakened machine and
automotive market. In the Netherlands, the UK and Switzerland, ERIKS also posted lower
results as a consequence of the current downturn in the oil and gas industry and the
strength of the British pound and Swiss franc. ERIKS in Belgium managed to perform well.
ERIKS continued to expand its operations through some smaller acquisitions early in the
year. In Germany, ERIKS acquired K&S Antriebssysteme, which is specialised in electric
motors, gears and frequency converters. In the USA, Lewis-Goetz acquired Action Industrial
Group, a manufacturer and distributor specialising in fasteners, gaskets, hose products and
industrial construction tools and supplies. ERIKS Seals and Plastics acquired its Texas-based
competitor Seals and Packings.
Since ERIKS joined SHV in 2009, the company has grown substantially, both organically and
through acquisitions. However, ERIKS’ organisation has not always grown at the same pace,
and in some areas it has had difficulties keeping up, particularly in the USA. Therefore in
2015, after very rapid and high growth, ERIKS has refocused and taken numerous steps to
strengthen its organisation and further optimise processes.
During 2015, ERIKS further invested in its e-business, launching a new web shop to meet
the changing demands of its customers. Customer behaviour in the search for products is
shifting and it will be essential to attract and lead the customer to ERIKS’ products. The first
results of the web shop have been very promising. Although current sales through this
channel are still modest, the number of registered customers and overall website traffic are
constantly increasing.
ERIKS' approach towards Sustainovation extends beyond its contribution to environmental
conservation and social development, as it includes the continuous improvement of its
processes and procedures and that of its customers and suppliers. ERIKS is now tracking its
ecological (energy, water and waste) and social performance as well as measuring progress
and identifying scope for improvement. With regard to innovation, ERIKS is focusing on two
subjects, namely big data and 3D printing.
It was a difficult year for ERIKS. Sales in 2015 of € 2.1 billion were slightly higher than last
year, supported by currency effects. Sales volumes were impacted by the lower performance
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in the USA and Germany as a result of the challenging business environment. Cost
reductions were made in most regions. However, these savings were not sufficient to offset
the overall drop in sales volumes and margins, resulting in a lower net income than the
previous year.
Nutreco
Nutreco is a global leader in animal nutrition and fish feed. The company name stands for
nutrition, ecology and economy. In a world with limited natural resources and a fast-growing
population, ‘Feeding the Future’ is its mission. Nutreco’s advanced feed solutions are at the
origin of the food that reaches millions of consumers worldwide. Quality, innovation and
sustainability are guiding principles embedded in the Nutreco culture: from research and raw
material procurement to products and services for livestock, fish and shrimp farming. Its
100-year history gives Nutreco a rich heritage of knowledge and experience for building its
future. Nutreco is active in 35 countries, with sales in over 80 countries.
Nutreco consists of six business units, four of which have a regional scope (the Americas,
Asia, EMEA and Nutreco Iberia) and two with a global scope (Feed Additives and Salmon
Feed). Within these business units, a number of brands are used to serve various segments.
In 2015, as part of a rebranding initiative, Nutreco decided that Trouw Nutrition will be
Nutreco’s global brand for animal nutrition. Skretting is its global brand for fish feed.
Nutreco is positioned at the critical junction between the surging demand for proteins and
supplies that are struggling to keep up. Its success depends on a strong and well-spread
customer base with a healthy growing livestock. In order to distinguish itself from
competitors or backward-integrating customers, Nutreco constantly needs to innovate.
Furthermore, it is key for Nutreco to ensure the availability of sustainable raw materials.
Volatility in the purchase prices of these materials requires active margin management.
Food safety can be endangered when raw materials do not meet rigorous quality and safety
standards or when errors in manufacturing processes occur. For Nutreco, therefore, quality
and safety standards and controls are of the utmost importance to ensure feed-to-food
safety.
After making a public offer for Nutreco in October 2014, SHV declared this offer
unconditional in March 2015, when 96% of the shares were tendered. As of mid-August
2015, SHV legally owns 100% of the shares. In its first months as part of the SHV family of
companies, Nutreco has performed very well, as it continued to execute its existing business
strategy ‘Driving sustainable growth’, including its planned capital expenditures
and acquisitions.
The salmon feed business performed strongly in 2015, particularly in Chile and North
America. Shrimp and fish feed in Ecuador reported good organic growth, along with strong
margins. Growth through acquisitions has come from Brazil and Nigeria. The EMEA business
unit, mostly consisting of mature markets, improved its operational result on the back of
increased margins and favourable raw material positions. Nutreco's increased focus on
higher margin global products has improved the performance of its feed additives business,
which predominantly sells its products through Nutreco’s other business units. Nutreco Iberia
in Spain and Portugal improved its performance in 2015: Nanta, a producer of compound
feed, reported growing volumes to third parties while Sada, which specialises in poultry
meat, benefited from strong margins during the high (summer) season. An improvement in
Nutreco’s operations led to an improved result in Asia, most notably in fish and shrimp feed.
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Asia is considered an important growth region for Nutreco. This year, Nutreco continued
its commitment to grow and invest in this region by opening a new animal nutrition plant
in Indonesia and by upgrading its animal nutrition plant in China. These investments in the
production capacity of premixes, farm minerals and young animal feed will enable Trouw
Nutrition to further strengthen its position in the Asian region. Nutreco also expanded its
business in Egypt, where its subsidiary Skretting opened an additional line in its existing
plant in order to triple its tilapia fish feed capacity to 150,000 tonnes per annum. It has
also signed a five-year research partnership deal in that country with fish research institute
WorldFish to support the sustainable development of aquaculture. Furthermore, in December,
Nutreco announced the acquisition of Micronutrients, a US-based global leader in the
production of so-called hydroxy-based trace minerals. These trace minerals are dietary
minerals required by living organisms in very small quantities, and are an essential
component of animal nutrition. This sizeable acquisition is a very significant step for Nutreco,
as it strengthens its position in a specific category of feed-additive products.
As well as looking for new investment opportunities, innovation is key for Nutreco. Its
extensive research and development (R&D) activities are closely aligned to the needs of
the market through close collaboration between the R&D centres and Nutreco’s operating
companies. Nutreco conducts research globally in several locations with state-of-the-art
research facilities, which enables it to do multi-site studies, both at research locations and
in field farms. Nutreco’s international research community is a multi-disciplined team of
highly skilled specialists in fields such as nutrition, veterinary science, microbiology and
immunology. In 2015, Nutreco announced that it will double its investment in R&D and
innovation over the next years and that it will combine its animal nutrition research and
development efforts under Trouw Nutrition R&D.
Overall, Nutreco performed very well in 2015, mainly as a result of higher margins and a
more favourable product mix. In addition, Nutreco's acquisitions (Brazil) and positive
currency effects contributed positively to the results. Nutreco’s results are consolidated into
the SHV accounts since mid-March, when SHV declared the offer for Nutreco unconditional.
As of mid-March, sales amounted to € 4.6 billion.
Dyas
Dyas is an active, non-operating partner in oil and gas exploration and production
investments. With its strong technical and financial capabilities, Dyas aims to grow its
long-term production and developed reserves in a solid portfolio of assets. To achieve this
aim, the company participates in material exploration and development projects. Dyas is an
investor with a medium to long-term outlook. Its involvement in projects usually spans a
large part of the asset life cycle, and many of Dyas' investments have remained in its
portfolio for up to twenty years. Dyas has a compact organisation with the flexibility to
respond quickly to opportunities and challenges.
Throughout the year, the slump in the oil price continued, with Brent prices falling as low
as $ 36. The average price for the year was $ 52. The relative drop in gas prices has been
significantly less and these have also shown less volatility. Nevertheless, the consequences
of increasingly lower oil and gas prices were clearly felt by Dyas. To reduce its exposure to
the drop in oil and gas prices, part of Dyas’ oil and gas production was hedged, with
positive results.
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Dyas’ results are influenced by operational asset performance, the price of crude oil, the
price of natural gas, and the exchange rates of the US dollar and the British pound. As a
non-operator, Dyas relies significantly on the various operators with whom it co-operates
in oil and gas operations. Safety is a very important topic for Dyas, and the company uses
every opportunity to disseminate among its joint venture partners the good practices and
relevant lessons it has learned.
To maintain a strong portfolio of oil and gas assets for the long term, Dyas is constantly
looking for new opportunities in all stages of the oil and gas exploration and production
life cycle, which starts with exploration and appraisal. In 2015, Dyas participated in two
exploration wells, both of which were a technical success. The Dutch P18-7 well found gas,
and the UK Boatswain well in the Greater Mariner Area found oil. Dyas managed to acquire
participations in new appraisal licenses in the UK’s 28th offshore licensing round and is
actively pursuing licenses in the 7th Danish licensing round.
The low oil price environment has created a difficult market for oil and gas assets, as a
value expectation gap has emerged between buyers and sellers. The latter have become
reluctant to enter into asset sales, which would lead to write-offs or losses. In 2015, Dyas
reviewed a substantial number of acquisition opportunities in the North Sea as well as in
Southeast Asia. For the latter area it has established a local office in Singapore. These
efforts resulted in one acquisition taking place in 2015, which has yet to close.
As well as looking for new opportunities, Dyas continued investing in its key existing
development projects, namely A18, Stella, Mariner and Catcher. The A18 gas development
project in the Dutch North Sea started production at the end of 2015. The Stella gas/
condensate development project has been delayed, as the modifications to the floating
production vessel are behind schedule. Production is not expected to start before the
end of 2016. The Mariner heavy oil project is well underway, albeit with delays in the
construction of the platform topsides. The Catcher project, acquired in 2014, is progressing
well, with some delays in constructing the hull of the floating production vessel. Mariner
and Catcher are expected to start production in 2018. In addition to making progress on the
aforementioned projects, an extensive drilling programme was completed during the year,
with the majority of the wells being drilled on the Elgin & Franklin, Golden Eagle and
Stella fields.
With its Sustainovation strategy, Dyas aims to take into account the environmental impact
and value of each individual field with the objective of building and maintaining a portfolio of
assets that have significantly less environmental impact than the average asset found within
the various basins in which it invests. The so-called ‘eco-cost’ concept enables Dyas to
make a like-for-like comparison of the environmental impact of its assets.
The lower oil price, as well as a number of write-offs recorded as a result of this, have
significantly impacted Dyas’ results. In spite of this, Dyas performed well in 2015, with
production volumes exceeding expectations at 7 million barrels of oil equivalent. This is
largely attributable to the good performance of the producing oil and gas fields, particularly
in the UK. The reduction in the UK tax rate for oil and gas production from 62% to 50%
also had a substantially positive effect on Dyas’ results.
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NPM Capital
NPM Capital provides private equity to companies with above-average growth opportunities,
focusing on unlisted medium and larger-sized businesses in the Benelux. NPM aims to be
a long-term investment partner that is committed to sustainable value creation for the
companies it invests in. Some of these investments have been in the portfolio for many
years. NPM works closely with the management teams of its participations, acting as a
sparring partner in the formulation and evaluation of company strategy and the
professionalisation of the organisations. It uses its knowledge, experience and network to
promote operational excellence, e-business and sustainable value creation. NPM does not
use excessive leveraging to finance its participations and is flexible in choosing the timing of
its divestment.
NPM Capital’s results are mainly determined by the success and subsequent sale of
companies in which it has invested. Exit opportunities and price, as well as possible
impairments, are influenced by the economic and financial climate in any given period,
which also impact the performance of the participations. NPM’s results can therefore
fluctuate considerably over the years. In the longer term, NPM’s success depends on its
capacity to identify profitable investment opportunities, execute a buy-and-build strategy,
initiate improvement in performance and ensure that good corporate governance is in place
to monitor the investments adequately until the moment of divestment.
In the Benelux private equity market, funding remains abundant. Internationally active funds,
which are under pressure to invest the capital allocated to them, are increasingly active in
the region, with dedicated offices in the Netherlands, especially in the larger deal space
where NPM Capital is also active. Partly as a result of, among others, the great fund
availability and leverage opportunities, transaction multiples have reached all-time highs.
In this competitive landscape, NPM managed to acquire a stake of 25% in Hendrix Genetics,
a leading multi-species breeding company with primary activities in layer poultry, turkey,
pig, aquaculture and traditional poultry breeding. Hendrix Genetics is dedicated to
generating solutions for the animal protein sector that meet the challenges of food
production. To achieve this, it aims to be innovative and therefore invests substantially
in research.
During the year, NPM also made a number of add-on investments in existing portfolio
companies. Most notably, a large investment was made in Kiwa, which specialises in
testing, inspection and certification, as it acquired its Scandinavian counterpart Inspecta.
The combination of Kiwa, Shield Group and Inspecta creates a diversified company with
more than 4,000 specialists active in 30 countries. Add-on investments were also made in
a number of other participations, such as the NL Healthcare group, Dieseko and Continental
Bakeries.
NPM managed to exit four portfolio companies in 2015, namely Helvoet (rubber and plastic
technologies), Hertel (industrial services), VSI (functional nutrition bars) and Optelec (optical
and electronic tools for the visually impaired). These exits were possible against attractive
prices. Parts of other companies in the portfolio were sold, namely the Hans Struijk chain of
bicycle shops and the Building Supplies division of Deli, which constitutes a substantial part
of the company.
During 2015, NPM successfully reinvented itself by critically reviewing its strategy and its
way of working. As a long-term investor with a flexible horizon, NPM’s main priority is to
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ensure the continuity of each of the companies it invests in. NPM facilitates and supports
a company's growth or development phase for as long as is needed, without any pressure
to exit. This makes NPM an involved and active shareholder, without activist tendencies.
Moreover, NPM’s long-term horizon is likely to be for the benefit of all stakeholders. NPM
managed to perform well in 2015, mainly due to the exits of a number of its participations
on favourable terms. Dividends from participations also contributed positively to NPM's
result.
Special thanks
In challenging circumstances, SHV managed to performed well in 2015. We thank all our
colleagues around the world for making this possible. In the year to come, we will again rely
on their hard work and dedication. Our people are the engine that has kept our train running
for twelve decades now, and we shall continue to depend on them in the decades to come.
Utrecht, March 18, 2016
On behalf of the Executive Board of Directors,
S.R. Nanninga
Chairman
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Corporate Philosophy
SHV is privately-held company and wishes to remain so.
SHV is a decentralised company. Great trust is placed in our people in the field. This
decentralisation provides an excellent opportunity for individual development. Mutual respect
and trust provides the basis for happiness at work.
SHV’s most important values are integrity and loyalty. Integrity means being honest, genuine
and totally open in communications about all matters that concern the company. Good news
may travel slowly, bad news should travel quickly. Loyalty means putting your best effort into
your work for the company and its development.
Based on the integrity and loyalty of our people, SHV wishes to continue to grow both for
the benefit of our shareholders, our employees and for the well-being of the society in which
we live and work.
Growth through
performance
We optimise our business and keep an eye open for opportunities. We work as a team for
better results. We keep hierarchy and bureaucracy to a minimum.
Shareholders are not looking for “puffed up” quarterly or annual results, but for sustainable
profit growth.
Shareholders accept the risks of new endeavours.
Go for niche and market
share
In looking for niche markets, we will not dabble in general trends or fashions.
We will establish ourselves as a leading participant in our markets.
Invest in people
Success comes through our people.
Investing in people means:
– trusting our people
– giving our people responsibility
– stimulating creativity and own initiative
– coaching and training our people
– rewarding excellence
Motivate by example, smile and find happiness in your work. It is important not to blame
people. We all make mistakes. To blame is to be negative. If integrity and loyalty are
undisputed, a mistake might be the start of better management.
Manage change
Change is all around us always. Do not be blind or deaf to change. Change creates
opportunities.
Analyse change, discuss it with others, evaluate and challenge your own thoughts. See
change as oxygen for our company and manage it with understanding and wisdom.
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Look for the unusual
The unusual is interesting. The unusual challenges our intellect and our creative spirit. At all
levels our people are invited to look for the unusual and see how it can help our business.
This is essential to our success. The unusual may be exactly what can differentiate us.
Listen, learn and react
No one knows everything, we all know something. By listening to other people’s ideas and
thoughts we widen our horizon. To listen before speaking is to learn. The wise man or
woman will benefit from the knowledge of others. After listening and learning we should
decide to react. Never forget that to do nothing is also a decision.
Keep things simple
Life only seems to be complicated. Technicalities are complicated, good business is not.
Choices and decisions are difficult at times, not complicated. Put your thoughts on any
subject on a single piece of paper – it helps clarify the mind.
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SHV History
Coal Trading Association
SHV is a family-owned company that was founded in 1896, when eight Dutch coal traders
established the Steenkolen Handels-Vereeniging in Utrecht, the Netherlands. Since then, the
company has grown into a diversified multinational by constantly innovating, and adapting to
the changing business environment.
Innovation in coal
activities
In the early 20th century, SHV was a key player in the Dutch coal distribution market,
a major source of energy at that time. One of SHV’s earliest innovations was an elevator
transporter used in bunkering vessels that could handle 1200 tons of coal per hour –
a remarkable capacity in 1908. Furthermore, SHV was the first company to use onshore
bridges for loading and unloading coal.
Trading in oil products
After the Second World War, demand for coal declined as oil became increasingly important.
In response, SHV started to move from trading and distributing coal in the Netherlands to
supplying oil, oil products and Liquefied Petroleum Gas (LPG) throughout Europe under the
brand names PAM and Calpam.
Wide diversification
In the 1960s, the Dutch coal market collapsed after the discovery of huge natural gas
reserves in the northern part of the Netherlands. As a reaction, SHV expanded its operating
base by entering several new markets, among which various formulas in the distribution of
consumer goods, technical installation, construction, shipping and technical equipment
trading. In 1968, SHV opened its first Makro cash-and-carry wholesale store in Amsterdam.
SHV established Dyas as an oil and gas investment company and acquired a metals
recycling company in the USA.
Focus on Energy and
Makro
Diversification came to a halt in the 1980s when SHV refocused on trading in energy and
consumer goods. The LPG distribution activities and Makro stores were consolidated and
expanded internationally. SHV also acquired LPG activities and opened Makro stores in
various countries in Eastern Europe, South America and Asia.
Expanding SHV's base
In recent history, SHV divested the Makro activities in Europe and Asia, as well as the
metals recycling activities. SHV was strengthened by acquiring NPM Capital, a private equity
company, Mammoet, a specialist heavy-lifting and transport company and ERIKS, an
industrial service provider. In 2015, Nutreco, active in animal nutrition and fish feed, was
added to SHV as a seventh group company.
Although the face of SHV has changed over time, the entrepreneurial spirit that has shaped
the company throughout the years still flourishes today.
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SHV Group Companies
As per March 1, 2016
SHV Holdings N.V.
Rijnkade 1
3511 LC Utrecht
P.O. Box 2065
3500 GB Utrecht
The Netherlands
T +31 30 233 8833
F +31 30 233 8304
[email protected]
www.shv.nl
SHV Energy
Zuidtoren
Taurusavenue 19
2132 LS Hoofddorp
The Netherlands
T +31 23 555 5700
F +31 23 555 5701
[email protected]
www.shvenergy.com
Management
F.J.C. van Lede
J.K. Wilson
Mrs M. Groeneveld-Klunder
M. Kossack
Makro
Rua Carlos Lisdegno Carlucci 519
05536-900 São Paulo - SP
Brazil
T +55 11 3745 2814
www.makro.com
Management
J.E.Q.M. Boelen
P.A. Pittella
Mammoet Holding B.V.
Van Deventerlaan 30-40
3528 AE Utrecht
P.O. Box 10000
3505 AA Utrecht
The Netherlands
T +31 88 650 2300
F +31 88 650 2340
[email protected]
www.mammoet.com
Management
J.A. Kleijn
O.C.J. den Boer
J.W. Henkelman
F.H. Rebel
M.W. Roelants
H. Smit
ERIKS N.V.
Robonsbosweg 7D
1816 MK Alkmaar
P.O. Box 1088
1810 KB Alkmaar
The Netherlands
T +31 72 547 5888
F +31 72 547 5889
www.eriks.com
Management
S.M. Franken
Mrs I.C. Verlinde
P.C. van Gelder
J.A.A. In ‘t Velt
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Nutreco N.V.
Prins Frederiklaan 4
3818 KC Amersfoort
P.O. Box 299
3800 AG Amersfoort
The Netherlands
T +31 33 422 6100
F +31 033 422 6105
[email protected]
www.nutreco.com
Management
K. Nesse
J.H. Wakkerman
M. Adorf
G. Botter
V. Halseth
W.F. Kernkamp
S. Li
S. Rafferty
H. de Wildt
Dyas B.V.
Rijnkade 1
3511 LC Utrecht
P.O. Box 2065
3500 GB Utrecht
The Netherlands
T +31 30 233 8434
F +31 30 233 8418
[email protected]
www.dyas.nl
Management
R.J. Baurdoux
P.J. Waaijer
J.A.B. Hoonhorst
N. van Ooijen
A.C. van der Weijden
E.F.G. Zielinski
NPM Capital N.V.
Breitnerstraat 1
1077 BL Amsterdam
P.O. Box 7224
1007 JE Amsterdam
The Netherlands
T +31 20 570 5555
F +31 20 470 6454
[email protected]
www.npm-capital.com
Management
J.P. Drost
N.J.M. Kramer
B.P. Coopmans
J.R. Ruigrok
J.K. Terpstra
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