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Hamburger Hafen und Logistik AG

Quarterly Report May 16, 2018

195_10-q_2018-05-16_0dd8e90a-2959-451e-af42-2e6a9dab3c03.pdf

Quarterly Report

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INTERIM STATEMENT HAMBURGER HAFEN UND LOGISTIK AG 2018 JANUARY TO MARCH

HHLA Key Figures

HHLA Group
in € million 1–3 2018 1–3 2017 Change
Revenue and Earnings
Revenue 315.2 305.1 3.3 %
EBITDA 77.8 75.1 3.6 %
EBITDA margin in % 24.7 24.6 0.1 pp
EBIT 47.9 45.2 5.9 %
EBIT margin in % 15.2 14.8 0.4 pp
Profit after tax 32.8 31.5 4.1 %
Profit after tax and minority interests 23.7 24.4 - 2.8 %
Cash flow statement and Investments
Cash flow from operating activities 54.6 86.8 - 37.1 %
Investments 21.4 39.8 - 46.2 %
Performance data
Container throughput in thousand TEU 1,824 1,778 2.6 %
Container transport in thousand TEU 350 370 - 5.3 %
in € million 31.03.2018 31.12.2017 Change
Balance sheet
Balance sheet total1 1,839.5 1,835.4 0.2 %
Equity1 589.9 602.5 - 2.1 %
Equity ratio in %1 32.1 32.8 - 0.7 pp
Employees
Number of employees 5,621 5,581 0.7 %
Port Logistics Subgroup2, 3 Real Estate Subgroup2, 4
in € million 1–3 2018 1–3 2017 Change 1–3 2018 1–3 2017 Change
Revenue 307.3 297.4 3.3 % 9.4 9.3 1.4 %
EBITDA 72.9 70.4 3.6 % 4.9 4.7 3.6 %
EBITDA margin in % 23.7 23.7 0.0 pp 51.6 50.5 1.1 pp
EBIT 44.2 41.7 5.9 % 3.6 3.4 5.4 %
EBIT margin in % 14.4 14.0 0.4 pp 38.5 37.0 1.5 pp
Profit after tax and minority interests 21.6 22.4 - 3.9 % 2.1 2.0 9.5 %
Earnings per share in €5 0.31 0.32 - 3.9 % 0.79 0.72 9.5 %

1 The previous year's figures have been retrospectively restated resulting from application of IFRS 9.

2 Before consolidation between subgroups

3 Listed Class A shares

4 Non-listed Class S shares

5 Basic and diluted

Ladies and gentlemen,

Hamburger Hafen und Logistik AG (HHLA) moves thousands of containers at its terminals every day. And we did this with great success in the first quarter. While our revenue rose in line with the overall market, we succeeded in raising consolidated EBIT by almost 6 percent and thus achieving an EBIT margin of 15.2 percent. We believe we are well on the way to achieving our sustainable growth targets for 2018.

Growth requires motion. But which direction do we want to take? In view of the changing macroeconomic environment, this is a question we need to answer. Global change and digitisation are having an increasingly strong impact on the logistics sector. We do not intend to sit back and simply observe these changes – we want to actively shape them. Our aim is to strengthen the future viability and shaping force of HHLA. In the course of a business development process over the past year, the Executive Board and company executives determined the direction we intend to take. One key prerequisite for our sustainable growth is the continued trust our clients place in us. We need to justify their trust on a daily basis if we want to remain successful.

And to ensure we achieve this, we have decided to strengthen our core business. Over the next five years, we will be investing one billion euros in the Container, Intermodal and Real Estate segments with the aim of improving our quality, competitiveness and profitability. We will continue to adapt our terminals to meet the needs of ever-larger ships, modernise our IT infrastructure and make our intermodal fleet more efficient and effective. To ensure that our rail subsidiary Metrans can maintain and expand its leading position in a challenging competitive environment, HHLA has acquired the remaining shares held by Metrans management. The integration of Polzug into the Metrans Group, which has now been largely completed, serves the same aim. This will enable us to make our sales activities even more customer-focused.

In addition to strengthening our core business, we also intend to tap additional growth potential. We are considering future transport flows, such as those along the "New Silk Road".

With our existing transport and logistics network, we already have a strong base in the western part of the "New Silk Road", which we are now expanding with the acquisition of the Estonian terminal operator Transiidikeskuse AS (TK). The transaction should be closed by the end of the second quarter. Acquiring

We want to make the most of the opportunities that increasing digitisation offers. And we are closely monitoring the entire logistics value chain and the changes in production processes.

TK is an investment in HHLA's future. We will be operating in a regional market with promising growth potential. The port of Muuga is an important maritime location in the Baltic region with a connection to the "New Silk Road" hinterland. The acquisition of TK will make HHLA the market leader in container handling in Estonia.

But it is not just goods that will be transported in future. Information highways are becoming an increasingly serious competitor for road and rail. We want to exploit the opportunities that increasing digitisation offers and we are closely monitoring the entire logistics value chain and the changes in production processes. This is just one of the reasons why we decided to acquire a stake in Next Logistics Accelerator, a startup accelerator that will enable us to identify and exploit trends and innovative solutions at an early stage.

HHLA is in motion – and I assure you that it will stay in motion.

Yours,

Angela Titzrath Chairwoman of the Executive Board

Business Development

Course of Business and Economic Situation

Key Figures

in € million 1–3 2018 1–3 2017 Change
Revenue 315.2 305.1 3.3 %
EBITDA 77.8 75.1 3.6 %
EBITDA margin in % 24.7 24.6 0.1 pp
EBIT 47.9 45.2 5.9 %
EBIT margin in % 15.2 14.8 0.4 pp
Profit after tax and minority
interests 23.7 24.4 - 2.8 %
ROCE in % 14.5 13.6 0.9 pp

Significant Events and Transactions

On 26 March 2018, HHLA signed an agreement to acquire 100 % of shares in Transiidikeskuse AS, a terminal operator based in Tallinn, Estonia. The transaction is subject to various conditions precedent and is expected to be closed in the second quarter of 2018.

There were no other particular events or transactions during the reporting period either in HHLA's operating environment or within the Group that had a significant impact on its results of operations, net assets and financial position. Both the economic indicators reported for the first three months of 2018 and HHLA's actual economic performance were largely in line with the performance forecast in the 2017 Annual Report. See results of operations, net assets and financial position

Earnings Position

HHLA's performance data varied in the first quarter of 2018. Container throughput rose slightly by 2.6 % year-on-year to 1,824 thousand TEU (previous year: 1,778 thousand TEU). This was primarily due to an increase in Asia traffic. By contrast, there was a noticeable decline in container transport of 5.3 % to 350 thousand TEU (previous year: 370 thousand TEU). This development is partially due to the scheduled realignment of POLZUG activities.

The HHLA Group's revenue rose moderately by 3.3 % to € 315.2 million during the reporting period (previous year: € 305.1 million). This was due in part to the increase in container throughput mentioned above as well as to longer transport distances in intermodal traffic.

Other operating income amounted to € 8.0 million (previous year: € 11.4 million).

The 1.5 % increase in operating expenses to € 277.3 million (previous year: € 273.1 million) was considerably less than the growth in revenue. The year-on-year increase resulted mainly from high capacity utilisation of facilities due to ship delays which could only be managed with the aid of additional resources.

The operating result (EBIT) rose significantly by 5.9 % to € 47.9 million in the reporting period (previous year: € 45.2 million). The EBIT margin amounted to 15.2 % (previous year: 14.8 %). In the Port Logistics subgroup, EBIT rose by 5.9 % to € 44.2 million (previous year: € 41.7 million). In the Real Estate subgroup, there was EBIT growth of 5.4 % to € 3.6 million (previous year: € 3.4 million).

Net expenses from the financial result increased by € 0.6 million or 19.8 % to € 3.7 million (previous year: € 3.1 million). The decrease in income from associated companies of € 0.5 million had a considerable impact on this item.

Profit after tax and minority interests was down slightly on the previous year at € 23.7 million (previous year: € 24.4 million). Earnings per share amounted to € 0.33 (previous year: € 0.34). The listed Port Logistics subgroup achieved earnings per share of € 0.31 (previous year: € 0.32). Earnings per share of the non-listed Real Estate subgroup were up on the prior-year figure at € 0.79 (previous year: € 0.72). Return on capital employed (ROCE) reached 14.5 % (previous year: 13.6 %).

Financial Position

Balance Sheet Analysis

Compared with year-end 2017, the HHLA Group's balance sheet total grew by a total of € 4.1 million to € 1,839.5 million as of 31 March 2018 (31 December 2017: € 1,835.4 million).

Balance Sheet Structure

31.12.2017
in € million 31.03.2018 (adjusted)
Assets
Non-current assets1 1,335.7 1,348.4
Current assets1 503.8 487.0
1,839.5 1,835.4
Equity and liabilities
Equity1 589.9 602.5
Non-current liabilities 999.1 993.8
Current liabilities 250.5 239.1
1,839.5 1,835.4

1 The previous year's figures have been retrospectively restated resulting from application of IFRS 9.

On the assets side of the balance sheet, non-current assets decreased slightly by € 12.7 million to € 1,335.7 million (31 December 2017: € 1,348.4 million). Scheduled depreciation of property, plant and equipment as well as investment properties was opposed by capital expenditure in the reporting period. Current assets increased by € 16.8 million to € 503.8 million (31 December 2017: € 487.0 million). The increase in trade receivables of € 21.2 million and in other assets of € 19.1 million was offset by a decrease in cash and short-term deposits of € 24.1 million.

On the liabilities side, equity fell by € 12.6 million to € 589.9 million compared to the year-end figure (31 December 2017: € 602.5 million). This decrease resulted mainly from the acquisition of further shares in METRANS a.s. amounting to € 49.9 million. Profit for the period under review of € 32.8 million had an opposing effect. The equity ratio decreased to 32.1 % (31 December 2017: 32.8 %).

Non-current liabilities rose by € 5.3 million to € 999.1 million (31 December 2017: € 993.8 million). The increase was mainly due to the development in pension provisions (€ 13.3 million increase). The € 7.0 million decrease in non-current financial liabilities had the opposite effect. Current liabilities rose by € 11.4 million to € 250.5 million (31 December 2017: € 239.1 million), primarily due to the increase in other liabilities of € 9.3 million.

Investment Analysis

The investment volume in the period under review totalled € 21.4 million and thus fell short of the previous year's figure of € 39.8 million, which was characterised by postponed investments from previous years.

The acquisition of wagons by METRANS made up the majority of capital expenditure in the first quarter of 2018. Investments were also made in expanding the infrastructure at the HHLA container terminals in the Port of Hamburg and in large-scale equipment for horizontal transport and storage cranes. The Speicherstadt historical warehouse district was also developed further in the period under review.

Liquidity Analysis

Cash flow from operating activities declined by € 32.2 million to € 54.6 million as of 31 March 2018 (previous year: € 86.8 million). This was largely due to an increase in trade receivables and other assets. Higher provisions had the opposite effect.

Investing activities led to cash outflows of € 20.5 million (previous year: € 73.3 million). This trend was primarily due to the absence of payments for short-term deposits and a yearon-year decrease in investments in property, plant and equipment.

Cash flow from financing activities was € 50.0 million higher than in the previous year. This was due to the acquisition of the remaining shares in METRANS a.s. in the Czech Republic.

Financial funds totalled € 231.4 million as of 31 March 2018 (31 March 2017: € 237.2 million). Including all short-term deposits, the Group's available liquidity at the end of the first quarter of 2018 amounted to € 251.4 million (31 March 2017: € 286.5 million).

Liquidity Analysis

in € million 1–3 2018 1–3 2017
Financial funds as of 01.01. 255.5 232.4
Cash flow from operating activities 54.6 86.8
Cash flow from investing activities - 20.5 - 73.3
Free cash flow 34.1 13.5
Cash flow from financing activities - 58.6 - 8.6
Change in financial funds - 24.1 4.7
Financial funds as of 31.03. 231.4 237.2
Short-term deposits 20.0 49.3
Available liquidity 251.4 286.5

Container Segment

Key Figures

in € million 1–3 2018 1–3 2017 Change
Revenue 191.7 182.8 4.9 %
EBITDA 53.1 52.9 0.4 %
EBITDA margin in % 27.7 28.9 - 1.2 pp
EBIT 32.7 31.9 2.6 %
EBIT margin in % 17.1 17.4 - 0.3 pp
Container throughput in thousand
TEU 1,824 1,778 2.6 %

A total of 1,824 thousand standard containers (TEU) were handled at the HHLA container terminals in the first quarter of 2018 – 2.6 % more than in the same period of the previous year (previous year: 1,778 thousand TEU). Container throughput at HHLA's three container terminals was raised by 2.2 % to 1,744 thousand TEU (previous year: 1,707 thousand TEU). This slight growth was mainly driven by the 8.9 % increase in Asia traffic. There was an opposing decline in lower-margin feeder traffic. Compared with the same period last year, container throughput at the North Sea and Baltic Sea ports fell by 5.4 %. There was a corresponding decline in the feeder ratio of 1.9 percentage points to 23.1 % (previous year: 25.0 %). Container throughput at the Container Terminal Odessa rose by 13.7 % to 81 thousand TEU (previous year: 71 thousand TEU).

The growth in volumes led to a disproportionately strong yearon-year increase in revenue, of 4.9 % to € 191.7 million (previous year: € 182.8 million). The average revenue per container handled at the quayside rose by 2.2 % year-on-year. This was caused by the developments in loading structure, mentioned above, which shifted towards overseas transport, and the ongoing high storage fees resulting from ship delays and the associated longer container dwell times at HHLA's container terminals.

The segment's EBIT costs rose by 5.4 % in the first three months of 2018, outstripping throughput volume. This was due to the additional resources required as a result of the previously mentioned ship delays and significant fluctuation in utilisation of the various facilities. Nevertheless, the year-on-year increase in the operating result (EBIT) of 2.6 % to € 32.7 million (previous year: € 31.9 million) was able to match volume growth. At 17.1 %, the EBIT margin was slightly below the prior-year figure (previous year: 17.4 %).

A slot-booking process for trucks was established at the terminals in Hamburg at the end of last year to improve the handling of peak loads in hinterland processing caused by increased ship sizes.

Intermodal Segment

Key Figures

in € million 1–3 2018 1–3 2017 Change
Revenue 101.6 101.7 - 0.1 %
EBITDA 25.1 22.4 12.2 %
EBITDA margin in % 24.8 22.0 2.8 pp
EBIT 18.7 16.5 13.4 %
EBIT margin in % 18.4 16.2 2.2 pp
Container transport in thousand
TEU 350 370 - 5.3 %

The scheduled realignment of Polish traffic resulted in a temporary decline in the transport performance in the first quarter of 2018. Container transport decreased by 5.3 % to 350 thousand standard containers (TEU) (previous year: 370 thousand TEU) in the period under review.

The decline concerned both rail and road transport. Compared with the strong first quarter of 2017, rail transport was down 4.5 % to 270 thousand TEU (previous year: 283 thousand TEU). Due to a significant decrease in freight volume in the greater Hamburg area, road transport fell by 7.8 % year-onyear to 80 thousand TEU (previous year: 87 thousand TEU).

At € 101.6 million, revenue was down 0.1 % against the prioryear figure (previous year: € 101.7 million), but performed much better than transport volume. This stable revenue trend resulted from a slight increase in rail's share of HHLA's total intermodal transportation from 76.6 % to 77.2 %, in combination with longer transport distances.

The operating result (EBIT) increased year-on-year to € 18.7 million (previous year: € 16.5 million). In addition to a decrease in the cost of materials, this trend was due in particular to a stable relationship between import and export volumes and changes in the route mix. The terminal in Budapest, which started operations in mid-2017, also had a positive impact on the efficiency of HHLA's intermodal network. The EBIT margin rose by 2.2 percentage points to 18.4 % (previous year: 16.2 %).

During the period under review, HHLA acquired the remaining shares in the Metrans Group from its management and is now the sole owner of METRANS a.s.

Logistics Segment

Key Figures

in € million 1–3 2018 1–3 2017 Change
Revenue 12.2 11.0 11.1 %
EBITDA 1.2 0.7 81.9 %
EBITDA margin in % 10.2 6.2 4.0 pp
EBIT 0.1 - 0.4 pos.
EBIT margin in % 1.1 - 3.7 pos.
At-equity earnings 0.8 1.3 - 39.1 %

The companies of the Logistics segment once again made varying progress in the first quarter of 2018. The consolidated companies reported revenue of € 12.2 million, up 11.1 % on the prior-year figure (previous year: € 11.0 million). This was due in particular to a strong increase in volume in the vehicle logistics division. The operating result (EBIT) of the Logistics segment amounted to € 0.1 million in the period under review, compared to an operating loss of € 0.4 million in the previous year. This improvement resulted mainly from consultancy activities.

At-equity earnings declined by a total of 39.1 % to € 0.8 million in the first three months of 2018. Neither dry bulk handling nor fruit logistics were able to match their prior-year performance.

Real Estate Segment

Key Figures

in € million 1–3 2018 1–3 2017 Change
Revenue 9.4 9.3 1.4 %
EBITDA 4.9 4.7 3.6 %
EBITDA margin in % 51.6 50.5 1.1 pp
EBIT 3.6 3.4 5.4 %
EBIT margin in % 38.5 37.0 1.5 pp

HHLA's properties in the Speicherstadt historical warehouse district and Fischmarkt Hamburg-Altona GmbH continued their positive revenue trend in the first quarter of 2018. Revenue increased slightly again by 1.4 % year-on-year to € 9.4 million as a result of virtually full occupancy in both quarters (previous year: € 9.3 million). Largely due to increased revenue from existing and newly developed properties in the Speicherstadt historical warehouse district, the operating result (EBIT) improved strongly by 5.4 % to € 3.6 million (previous year: € 3.4 million).

Changes to the Business Forecast

There were no events of material importance in the period under review. The disclosures made in the 2017 Annual Report regarding the expected course of business in 2018 continue to apply.

Hamburg, 2 May 2018

Hamburger Hafen und Logistik Aktiengesellschaft The Executive Board

Angela Titzrath Heinz Brandt

Jens Hansen Dr. Roland Lappin

Additional Financial Information

Income Statement

in € thousand 1–3 2018
Group
1–3 2018
Port Logistics
1–3 2018
Real Estate
1–3 2018
Consolidation
Revenue 315,215 307,335 9,422 - 1,542
Changes in inventories 675 673 2 0
Own work capitalised 1,267 1,054 0 213
Other operating income 8,023 7,054 1,332 - 363
Cost of materials - 88,884 - 87,047 - 1,877 40
Personnel expenses - 118,676 - 118,138 - 538 0
Other operating expenses - 39,852 - 38,022 - 3,482 1,652
Earnings before interest, taxes, depreciation and amortisation
(EBITDA)
77,768 72,909 4,859 0
Depreciation and amortisation - 29,843 - 28,713 - 1,234 104
Earnings before interest and taxes (EBIT) 47,925 44,196 3,625 104
Earnings from associates accounted for using the equity method 994 994 0 0
Interest income 606 639 9 - 42
Interest expenses - 5,258 - 4,612 - 688 42
Other financial result 0 0 0 0
Financial result - 3,658 - 2,979 - 679 0
Earnings before tax (EBT) 44,267 41,217 2,946 104
Income tax - 11,463 - 10,552 - 884 - 27
Profit after tax 32,804 30,665 2,062 77
of which attributable to non-controlling interests 9,114 9,114 0
of which attributable to shareholders of the parent company 23,690 21,551 2,139
Earnings per share, basic and diluted, in € 0.33 0.31 0.79

Statement of Comprehensive Income

1–3 2018 1–3 2018 1–3 2018 1–3 2018
in € thousand Group Port Logistics Real Estate Consolidation
Profit after tax 32,804 30,665 2,062 77
Components which can not be transferred to the Income
Statement
Actuarial gains/losses 5,390 5,303 87
Deferred taxes - 1,752 - 1,724 - 28
Total 3,638 3,579 59 0
Components which can be transferred to the
Income Statement
Cash flow hedges 0 0 0
Foreign currency translation differences 1,012 1,012 0
Deferred taxes 35 35 0
Other - 108 - 108 0
Total 939 939 0
Income and expense recognised directly in equity 4,577 4,518 59 0
Total comprehensive income 37,381 35,183 2,121 77
of which attributable to non-controlling interests 9,139 9,139 0
of which attributable to shareholders of the parent company 28,242 26,044 2,198

Income Statement

1–3 2017 1–3 2017 1–3 2017 1–3 2017
in € thousand Group Port Logistics Real Estate Consolidation
Revenue 305,129 297,384 9,291 - 1,546
Changes in inventories 413 409 4 0
Own work capitalised 1,406 1,326 0 80
Other operating income 11,400 10,507 1,150 - 257
Cost of materials - 94,826 - 93,073 - 1,785 32
Personnel expenses - 111,814 - 111,286 - 528 0
Other operating expenses - 36,652 - 34,899 - 3,444 1,691
Earnings before interest, taxes, depreciation and amortisation
(EBITDA) 75,056 70,368 4,688 0
Depreciation and amortisation - 29,811 - 28,649 - 1,248 86
Earnings before interest and taxes (EBIT) 45,245 41,719 3,440 86
Earnings from associates accounted for using the equity method 1,506 1,506 0 0
Interest income 1,041 1,078 10 - 47
Interest expenses - 5,600 - 4,921 - 726 47
Other financial result 0 0 0 0
Financial result - 3,053 - 2,337 - 716 0
Earnings before tax (EBT) 42,192 39,382 2,724 86
Income tax - 10,690 - 9,833 - 835 - 22
Profit after tax 31,502 29,549 1,889 64
of which attributable to non-controlling interests 7,119 7,119 0
of which attributable to shareholders of the parent company 24,383 22,430 1,953
Earnings per share, basic and diluted, in € 0.34 0.32 0.72

Statement of Comprehensive Income

1–3 2017 1–3 2017 1–3 2017 1–3 2017
in € thousand Group Port Logistics Real Estate Consolidation
Profit after tax 31,502 29,549 1,889 64
Components which can not be transferred to the Income
Statement
Actuarial gains/losses 5,714 5,623 91
Deferred taxes - 1,844 - 1,815 - 29
Total 3,870 3,808 62 0
Components which can be transferred to the
Income Statement
Cash flow hedges - 85 - 85 0
Foreign currency translation differences - 935 - 935 0
Deferred taxes - 17 - 17 0
Other 54 54 0
Total - 983 - 983 0
Income and expense recognised directly in equity 2,887 2,825 62 0
Total comprehensive income 34,389 32,374 1,951 64
of which attributable to non-controlling interests 7,166 7,166 0
of which attributable to shareholders of the parent company 27,223 25,208 2,015

Balance Sheet

31.03.2018 31.03.2018 31.03.2018 31.03.2018
in € thousand Group Port Logistics Real Estate Consolidation
ASSETS
Intangible assets 69,308 69,298 10 0
Property, plant and equipment 965,426 946,609 4,606 14,211
Investment property 181,223 28,840 178,369 - 25,986
Associates accounted for using the equity method 16,171 16,171 0 0
Financial assets 18,304 14,286 4,018 0
Deferred taxes 85,237 95,204 0 - 9,967
Non-current assets 1,335,669 1,170,408 187,003 - 21,742
Inventories 22,223 22,136 87 0
Trade receivables 170,016 168,942 1,074 0
Receivables from related parties 82,912 76,541 10,803 - 4,432
Other financial receivables 2,929 2,899 30 0
Other assets 45,967 44,514 1,453 0
Income tax receivables 2,390 1,622 768 0
Cash, cash equivalents and short-term deposits 177,370 173,507 3,863 0
Current assets 503,807 490,161 18,078 - 4,432
Balance sheet total 1,839,476 1,660,569 205,081 - 26,174
EQUITY AND LIABILITIES
Subscribed capital 72,753 70,048 2,705 0
Capital reserve 141,584 141,078 506 0
Retained earnings 476,119 430,377 54,591 - 8,849
Other comprehensive income - 107,873 - 107,673 - 200 0
Non-controlling interests 7,351 7,351 0 0
Equity 589,934 541,181 57,602 - 8,849
Pension provisions 462,270 455,552 6,718 0
Other non-current provisions 111,952 109,558 2,394 0
Non-current liabilities to related parties 105,356 105,356 0 0
Non-current financial liabilities 297,756 193,456 104,300 0
Deferred taxes 21,787 15,886 18,794 - 12,893
Non-current liabilities 999,121 879,808 132,206 - 12,893
Other current provisions 31,718 31,651 67 0
Trade liabilities 79,189 74,016 5,173 0
Current liabilities to related parties 11,322 13,584 2,170 - 4,432
Current financial liabilities 81,901 76,382 5,519 0
Other liabilities 41,815 39,633 2,182 0
Income tax liabilities 4,476 4,314 162 0
Current liabilities 250,421 239,580 15,273 - 4,432
Balance sheet total 1,839,476 1,660,569 205,081 - 26,174

Balance Sheet

in € thousand 31.12.2017
Group
(adjusted)
31.12.2017
Port Logistics
(adjusted)
31.12.2017
Real Estate
(adjusted)
31.12.2017
Consolidation
ASSETS
Intangible assets 69,679 69,666 13 0
Property, plant and equipment 974,551 955,575 4,660 14,316
Investment property 179,884 29,798 176,282 - 26,196
Associates accounted for using the equity method 15,215 15,215 0 0
Financial assets1 21,881 17,851 4,030 0
Deferred taxes1 87,184 96,853 0 - 9,669
Non-current assets 1,348,394 1,184,958 184,985 - 21,549
Inventories 21,340 21,266 74 0
Trade receivables1 148,824 147,624 1,200 0
Receivables from related parties 81,527 75,945 9,575 - 3,993
Other financial receivables 2,651 2,613 38 0
Other assets 26,828 25,519 1,309 0
Income tax receivables 4,302 3,988 1,043 - 729
Cash, cash equivalents and short-term deposits 201,514 197,132 4,382 0
Current assets 486,986 474,087 17,621 - 4,722
Balance sheet total 1,835,380 1,659,045 202,606 - 26,271
EQUITY AND LIABILITIES
Subscribed capital 72,753 70,048 2,705 0
Capital reserve 141,584 141,078 506 0
Retained earnings1 469,740 426,138 52,528 - 8,926
Other comprehensive income - 112,439 - 112,180 - 259 0
Non-controlling interests1 30,823 30,823 0 0
Equity 602,461 555,907 55,480 - 8,926
Pension provisions 448,925 442,058 6,867 0
Other non-current provisions 112,893 110,511 2,382 0
Non-current liabilities to related parties 105,470 105,470 0 0
Non-current financial liabilities 304,721 198,872 105,849 0
Deferred taxes 21,779 15,902 18,500 - 12,623
Non-current liabilities 993,788 872,813 133,598 - 12,623
Other current provisions 34,585 34,519 66 0
Trade liabilities 77,246 73,240 4,006 0
Current liabilities to related parties 8,058 10,036 2,015 - 3,993
Current financial liabilities 80,836 75,612 5,224 0
Other liabilities 32,505 31,180 1,325 0
Income tax liabilities 5,901 5,738 892 - 729
Current liabilities 239,131 230,325 13,528 - 4,722
Balance sheet total 1,835,380 1,659,045 202,606 - 26,271

1 The previous year's figures have been retrospectively restated resulting from application of IFRS 9.

Cash Flow Statement

1–3 2018 1–3 2018 1–3 2018 1–3 2018
in € thousand Group Port Logistics Real Estate Consolidation
1. Cash flow from operating activities 44,196 3,625
Earnings before interest and taxes (EBIT)
Depreciation, amortisation, impairment and reversals on non
47,925 104
financial non-current assets 29,843 28,713 1,234 - 104
Increase (+), decrease (-) in provisions 12,902 12,986 - 84
Gains (-), losses (+) from the disposal of non-current assets - 961 - 960 - 1
Increase (-), decrease (+) in inventories, trade receivables and
other assets not attributable to investing or financing activities
- 38,937 - 38,137 - 1,239 439
Increase (+), decrease (-) in trade payables and other liabilities not
attributable to investing or financing activities
17,625 15,376 2,688 - 439
Interest received 306 339 9 - 42
Interest paid - 3,132 - 2,306 - 868 42
Income tax paid - 10,752 - 9,679 - 1,073
Exchange rate and other effects - 183 - 183 0
Cash flow from operating activities 54,636 50,345 4,291 0
2. Cash flow from investing activities
Proceeds from disposal of intangible assets, property, plant and
equipment and investment property
1,236 1,235 1
Payments for investments in property, plant and equipment and
investment property
- 20,059 - 16,795 - 3,264
Payments for investments in intangible assets - 1,525 - 1,525 0
Payments for acquiring interests in consolidated companies and
other business units (including funds purchased)
- 200 - 200 0
Proceeds (+), payments (-) for short-term deposits 0 0 0
Cash flow from investing activities - 20,548 - 17,285 - 3,263 0
3. Cash flow from financing activities
Payments for increasing interests in fully consolidated companies - 49,908 - 49,908 0
Redemption of lease liabilities - 1,099 - 1,099 0
Payments for the redemption of (financial) loans - 7,621 - 6,074 - 1,547
Cash flow from financing activities - 58,628 - 57,081 - 1,547 0
4. Financial funds at the end of the period
Change in financial funds (subtotals 1.–3.) - 24,540 - 24,021 - 519 0
Change in financial funds due to exchange rates 391 391 0
Financial funds at the beginning of the period 255,514 244,632 10,882
Financial funds at the end of the period 231,365 221,002 10,363 0

Cash Flow Statement

in € thousand 1–3 2017
Group
1–3 2017
Port Logistics
1–3 2017
Real Estate
1–3 2017
Consolidation
1. Cash flow from operating activities
Earnings before interest and taxes (EBIT) 45,245 41,719 3,440 86
Depreciation, amortisation, impairment and reversals on non
financial non-current assets 29,811 28,649 1,248 - 86
Increase (+), decrease (-) in provisions - 1,633 - 1,617 - 16
Gains (-), losses (+) from the disposal of non-current assets - 490 - 490 0
Increase (-), decrease (+) in inventories, trade receivables and
other assets not attributable to investing or financing activities
7,069 5,353 251 1,465
Increase (+), decrease (-) in trade payables and other liabilities not
attributable to investing or financing activities
19,354 18,079 2,740 - 1,465
Interest received 869 906 10 - 47
Interest paid - 3,528 - 2,610 - 965 47
Income tax paid - 8,793 - 7,408 - 1,385
Exchange rate and other effects - 1,105 - 1,105 0
Cash flow from operating activities 86,799 81,476 5,323 0
2. Cash flow from investing activities
Proceeds from disposal of intangible assets, property, plant and
equipment and investment property
543 543 0
Payments for investments in property, plant and equipment and
investment property
- 42,061 - 41,535 - 526
Payments for investments in intangible assets - 1,251 - 1,251 0
Payments for acquiring interests in consolidated companies and
other business units (including funds purchased)
0 0 0
Proceeds (+), payments (-) for short-term deposits - 30,528 - 30,528 0
Cash flow from investing activities - 73,297 - 72,771 - 526 0
3. Cash flow from financing activities
Payments for increasing interests in fully consolidated companies 0 0 0
Redemption of lease liabilities - 1,070 - 1,070 0
Payments for the redemption of (financial) loans - 7,529 - 5,982 - 1,547
Cash flow from financing activities - 8,599 - 7,052 - 1,547 0
4. Financial funds at the end of the period
Change in financial funds (subtotals 1.–3.) 4,903 1,653 3,250 0
Change in financial funds due to exchange rates - 150 - 150 0
Financial funds at the beginning of the period 232,397 222,537 9,860
Financial funds at the end of the period 237,150 224,040 13,110 0

Financial Calendar Imprint

28 March 2018

Annual Report 2017 Press Conference, Analyst Conference Call

15 May 2018

Interim Statement January–March 2018 Analyst Conference Call

12 June 2018

Annual General Meeting

14 August 2018

Half-year Financial Report January–June 2018 Analyst Conference Call

13 November 2018

Interim Statement January–September 2018 Analyst Conference Call

Published by

Hamburger Hafen und Logistik AG Bei St. Annen 1 20457 Hamburg Phone +49 40 3088 – 0 Fax +49 40 3088 – 3355 [email protected] www.hhla.de

Investor Relations

Phone +49 40 3088 – 3100 Fax +49 40 3088 – 55 3100 [email protected]

Corporate Communications

Phone +49 40 3088 – 3520 Fax +49 40 3088 – 3355 [email protected]

Design and Implementation

nexxar gmbh, Vienna Online annual reports and online sustainabilty reports www.nexxar.com

This Interim Statement was published on 15 May 2018. http://report.hhla.de/interim-statement-q1-2018

The 2017 Annual Report is available online at: http://report.hhla.de/annual-report-2017/

This Interim Statement, including its supplemental financial information, should be read in conjunction with the 2017 Annual Report of Hamburger Hafen und Logistik Aktiengesellschaft (HHLA). You can find basic information about the Group and its consolidation, accounting and valuation principles in the HHLA 2017 Annual Report. This document also contains forward-looking statements that are based on the current assumptions and expectations of the HHLA management team. Forward-looking statements are indicated through the use of words such as expect, intend, plan, anticipate, assume, believe, estimate and other similar formulations. These statements are not guarantees that these predictions will prove to be correct. The future development and the actual results achieved by HHLA and its affiliated companies are dependent on a wide range of risks and uncertainties and may therefore deviate greatly from the forward-looking statements. Many of these factors are outside of HHLA's control and therefore cannot be accurately estimated, such as the future economic environment and the actions of competitors and others involved in the marketplace. HHLA neither plans nor undertakes any special obligation to update the forward-looking statements.

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