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Hamburger Hafen und Logistik AG

Quarterly Report Nov 14, 2017

195_10-q_2017-11-14_6b836b61-e327-4451-9f4a-5c285c009563.pdf

Quarterly Report

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INTERIM STATEMENT HAMBURGER HAFEN UND LOGISTIK AG 2017 JANUARY TO SEPTEMBER

HHLA Key Figures

HHLA Group
in € million 1–9 2017 1–9 2016 Change
Revenue and Earnings
Revenue 942.8 871.0 8.3 %
EBITDA 245.3 218.4 12.3 %
EBITDA margin in % 26.0 25.1 0.9 pp
EBIT 155.2 126.9 22.3 %
EBIT margin in % 16.5 14.6 1.9 pp
Profit after tax 108.5 83.3 30.3 %
Profit after tax and minority interests 79.3 60.9 30.2 %
Cash flow statement and Investments
Cash flow from operating activities 221.6 184.7 20.0 %
Investments 90.2 106.3 - 15.1 %
Performance data
Container throughput in thousand TEU 5,453 4,924 10.8 %
Container transport in thousand TEU 1,126 1,055 6.8 %
in € million 30.09.2017 31.12.2016 Change
Balance sheet
Balance sheet total 1,820.1 1,812.9 0.4 %
Equity 638.8 570.8 11.9 %
Equity ratio in % 35.1 31.5 3.6 pp
Employees
Number of employees 5,565 5,528 0.7 %
Port Logistics Subgroup1, 2 Real Estate Subgroup1, 3
in € million 1–9 2017 1–9 2016 Change 1–9 2017 1–9 2016 Change
Revenue 919.4 847.5 8.5 % 28.2 28.0 0.8 %
EBITDA 229.2 203.1 12.9 % 16.1 15.3 5.1 %
EBITDA margin in % 24.9 24.0 0.9 pp 57.2 54.8 2.4 pp
EBIT 142.5 115.1 23.8 % 12.4 11.5 7.3 %
EBIT margin in % 15.5 13.6 1.9 pp 43.8 41.2 2.6 pp
Profit after tax and minority interests 72.1 53.8 34.0 % 7.1 7.1 1.0 %
Earnings per share in €4 1.03 0.77 34.0 % 2.64 2.61 1.0 %

1 Before consolidation between subgroups

2 Listed Class A shares

3 Non-listed Class S shares

4 Basic and diluted

Ladies and Gentlemen,

The positive business trend of Hamburger Hafen und Logistik AG (HHLA) remained strong throughout the first nine months of 2017. In comparison with the previous year, Group revenue was up 8.3 percent to € 942.8 million, the operating result (EBIT) climbed 22.3 percent to € 155.2 million and profit after tax and minority interests – the relevant figure for shareholders – rose to € 79.3 million (+30.2 percent). This success was driven by significant growth in container throughput (+10.8 percent) and container transport (+6.8 percent). The exceptional performance of our employees – even in the face of the recent stormy weather – also played a major role. We are confident that we can achieve our guidance for the year 2017.

HHLA also benefited from the positive trend of the global economy, which has so far remained unaffected by the unstable political environment. The feared consequences of a strongly protectionist US government and the current Brexit negotiations have not yet materialised. According to economic institutes, the German economy is enjoying a "golden autumn". China is also experiencing stable growth thanks to its expansionary economic policy. However, we must not forget that key factors which have slowed the pace of international trade in previous years continue to prevail. The United Nations Conference on Trade and Development (UNCTAD) forecasts average annual growth of 3.2 percent for the period 2017 to 2022.

There is no doubt that the strength of the global economy and trade are important preconditions for HHLA's performance. However, these factors alone do not explain the positive results achieved this year, which in some cases significantly exceeded expectations. With the aid of in-depth discussions with our customers and targeted sales activities in the spring of this year, we were able to secure our position and increase market share. Despite the ongoing concentration process and a challenging market environment – in which 8 of the world's 20 largest container shipping companies disappeared from the market in the space of two years – we were able to benefit from the reorganisation of syndicate structures. The Container segment again recorded an increase in both Asian routes and feeder traffic with the Baltic Sea ports.

The trend towards mega-ships with capacities of over 20,000 standard containers (TEU) also looks set to continue. HHLA is well prepared to handle these ships due to the investments made in crane and storage technology. In the third quarter, three additional container gantry cranes designed to handle mega-ships were put into operation at the Container Terminal Tollerort (CTT). We now have three highly efficient berths in

We have secured our position and captured market share by holding in-depth discussions with our customers and driving sales activities. In a challenging market environment, we were able to benefit from the reorganisation of syndicate structures.

Hamburg capable of handling the largest vessel category. However, it is still not certain when the necessary dredging of the river Elbe will commence.

The Intermodal segment, the second main pillar of HHLA's business model, also put in a strong performance. Both rail and road transport contributed to growth. The integration of POLZUG activities into the METRANS organisation is making good progress and on track to be completed by the beginning of 2018. The aim is to consolidate and expand our position in the highly competitive market for container traffic in the seaport hinterland.

Another encouraging development is the strong increase in the HHLA share price. Since the beginning of the year, the HHLA share has climbed by more than 50 percent. As a result, HHLA's market capitalisation is currently around € 2 billion. We regard this trend as clear confirmation of the market's trust in HHLA's abilities. In order to consistently meet these shareholder and customer expectations, we will continue to work hard on measures to boost HHLA's productivity, competitiveness and profitability.

Yours,

Angela Titzrath Chairwoman of the Executive Board

Business Development

Course of Business and Economic Situation

Key Figures

in € million 1–9 2017 1–9 2016 Change
Revenue 942.8 871.0 8.3 %
EBITDA 245.3 218.4 12.3 %
EBITDA margin in % 26.0 25.1 0.9 pp
EBIT 155.2 126.9 22.3 %
EBIT margin in % 16.5 14.6 1.9 pp
Profit after tax and minority
interests 79.3 60.9 30.2 %
ROCE in % 15.7 12.8 2.9 pp

Significant Events and Transactions

There were no 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 earnings position and financial position. Both the economic indicators and HHLA's actual performance in the first nine months of 2017 are above the projections made in the 2016 Annual Report – due in particular to the performance of the Container segment from the second quarter of 2017 onwards. See results of operations, net assets and financial position

Earnings Position

HHLA posted very encouraging performance data in the first three quarters of 2017. At 5,453 thousand TEU, there was strong year-on-year growth in container throughput (previous year: 4,924 thousand TEU). This was mainly attributable to an increase in feeder traffic with the Baltic Sea ports, a recovery in Asian routes and market share gains resulting from the reorganisation of shipping alliances. Transport volumes again increased significantly by 6.8 % to 1,126 thousand TEU (previous year: 1,055 thousand TEU). Both rail and road transport contributed to this growth.

Revenue for the HHLA Group rose strongly by 8.3 % to € 942.8 million during the reporting period (previous year: € 871.0 million). This was primarily due to the volume trend in container throughput and transport.

The significant 35.3 % decline in other operating income to € 28.7 million (previous year: € 44.3 million) is mainly attributable to the one-off effect of terminating the lease for the Übersee-Zentrum last year.

The 3.3 % increase in operating expenses to € 820.7 million (previous year: € 794.8 million) was well below the increase in revenue. One-off effects in the previous year included a one-off restructuring expense in connection with the discontinuation of project and contract logistics and the insolvency of the shipping company Hanjin.

The operating result (EBIT) rose by 22.3 % to € 155.2 million in the reporting period (previous year: € 126.9 million). The EBIT margin amounted to 16.5 % (previous year: 14.6 %). In the Port Logistics subgroup, EBIT rose by 23.8 % to € 142.5 million (previous year: € 115.1 million), while EBIT in the Real Estate subgroup was up 7.3 % to € 12.4 million (previous year: € 11.5 million).

Net expenses from the financial result fell by € 6.6 million or 42.3 % to € 9.0 million (previous year: € 15.6 million). This was partly due to a positive change in exchange rate effects of € 3.2 million. Interest paid on pension provisions and to banks and other lenders also decreased.

Profit after tax and minority interests increased by 30.2 % year-on-year to € 79.3 million (previous year: € 60.9 million). Earnings per share rose accordingly to € 1.09 (previous year: € 0.84). The listed Port Logistics subgroup achieved a 34.0 % increase in earnings per share to € 1.03 (previous year: € 0.77). Earnings per share of the non-listed Real Estate subgroup were slightly up on the prior-year figure at € 2.64 (previous year: € 2.61). Return on capital employed (ROCE) reached 15.7 % and was therefore significantly above the prior-year figure.

Financial Position

Balance Sheet Analysis

Compared with year-end 2016, the HHLA Group's balance sheet total grew by a total of € 7.2 million to € 1,820.1 million as of 30 September 2017 (31 December 2016: € 1,812.9 million).

Balance Sheet Structure

in € million 30.09.2017 31.12.2016
Assets
Non-current assets 1,320.5 1,329.0
Current assets 499.6 483.9
1,820.1 1,812.9
Equity and liabilities
Equity 638.8 570.8
Non-current liabilities 979.9 1,028.1
Current liabilities 201.4 214.0
1,820.1 1,812.9

On the assets side of the balance sheet, non-current assets decreased slightly by € 8.5 million to € 1,320.5 million (31 December 2016: € 1,329.0 million). Capital expenditure was roughly offset by depreciation of property, plant and equipment and investment properties and a reduction in deferred tax assets due to interest rate-related changes in pension provisions in the second quarter. Current assets increased by € 15.7 million to € 499.6 million (31 December 2016: € 483.9 million). The increase in cash and cash equivalents and short-term deposits was opposed by a decrease in other assets.

On the liabilities side, equity rose by € 68.0 million to € 638.8 million compared to the year-end figure (31 December 2016: € 570.8 million). The increase was mainly due to the profit for the period of € 108.5 million and the opposing dividend payment of € 47.0 million. The equity ratio increased to 35.1 % (31 December 2016: 31.5 %).

Non-current liabilities declined by € 48.2 million to € 979.9 million (31 December 2016: € 1,028.1 million). The decrease is mainly attributable to the € 30.4 million decline in non-current financial liabilities and the € 15.9 million reduction in pension provisions. Current liabilities fell by € 12.6 million to € 201.4 million (31 December 2016: € 214.0 million), mainly as a result of the € 28.7 million decrease in current financial liabilities. The increase in trade liabilities and other liabilities had an opposing effect.

Investment Analysis

The investment volume in the period under review totalled € 90.2 million and thus fell short of the previous year's figure of € 106.3 million.

Capital expenditure in the first nine months of 2017 focused on the purchase of container gantry cranes, the procurement of large-scale equipment for horizontal transport and storage cranes for the HHLA container terminals in Hamburg, as well as locomotives for Metrans.

Liquidity Analysis

Cash flow from operating activities rose by € 36.9 million to € 221.6 million as of 30 September 2017 (previous year: € 184.7 million). This was primarily due to the increase in earnings.

Investing activities led to cash outflows of € 89.4 million (previous year: € 50.7 million). The increase of € 38.7 million was primarily due to cash outflows for short-term deposits (previous year: cash inflows).

Cash flow from financing activities was down € 4.7 million on the prior-year figure.

Financial funds totalled € 255.7 million as of 30 September 2017 (30 September 2016: € 190.3 million). Including all shortterm deposits, the Group's available liquidity at the end of the third quarter of 2017 amounted to € 275.7 million (30 September 2016: € 229.2 million).

Liquidity Analysis

in € million 1–9 2017 1–9 2016
Financial funds as of 01.01. 232.4 165.4
Cash flow from operating activities 221.6 184.7
Cash flow from investing activities - 89.4 - 50.7
Free cash flow 132.2 134.0
Cash flow from financing activities - 107.8 - 112.5
Change in financial funds 23.3 24.9
Financial funds as of 30.09. 255.7 190.3
Short-term deposits 20.0 38.9
Available liquidity 275.7 229.2

Container Segment

Key Figures

in € million 1–9 2017 1–9 2016 Change
Revenue 563.6 512.7 9.9 %
EBITDA 167.8 148.4 13.1 %
EBITDA margin in % 29.8 28.9 0.9 pp
EBIT 105.2 86.6 21.5 %
EBIT margin in % 18.7 16.9 1.8 pp
Container throughput in thousand
TEU 5,453 4,924 10.8 %

A total of 5,453 thousand standard containers (TEU) were handled at the HHLA container terminals in the first nine months of 2017 – 10.8 % more than in the previous year (4,924 thousand TEU). Container throughput at HHLA's three container terminals in Hamburg was raised by 11.3 % to 5,241 thousand TEU (previous year: 4,711 thousand TEU). HHLA benefited in particular from the reorganisation of syndicate structures and the resulting new liner services, whose new schedules became more firmly established over the course of the third quarter. The Asian routes performed particularly well in the first nine months of 2017, increasing by 17.3 % in total. A significant 17.9 % increase in feeder traffic with the Baltic Sea ports also contributed to throughput growth. The feeder ratio rose accordingly by 1.4 percentage points compared with the prior-year period to 24.9 % (previous year: 23.5 %). At 212 thousand TEU, container throughput at the Container Terminal Odessa was almost on a par with the same period last year (previous year: 213 thousand TEU). This slightly weaker trend was due to delays in ship handling in late September caused by unfavourable weather conditions.

The increase in volumes led to a rise in revenue, which was up 9.9 % on the third quarter of 2016 at € 563.6 million (previous year: € 512.7 million). The temporary increase in storage fees in the first half of the year, due to shipping delays and the associated increase in dwell times for containers at HHLA's container terminals, contrasted with a higher proportion of lower-margin feeder traffic in the reporting period and a resulting fall in average revenue per container handled at the quayside. Consequently, average revenue declined by 0.7 % compared to the same period last year.

The segment's EBIT costs rose by 7.6 % in the first nine months. Despite the growth in volumes, economies of scale on the cost side could not be fully realised. In conjunction with somewhat restricted capacity caused by ongoing extension and maintenance work at the container terminals in Hamburg, the high utilisation of storage capacity resulting from shipping delays and the reorganisation of syndicate structures led to peaks in demand that could only be managed with the use of additional resources. Nevertheless, the year-on-year increase in the operating result (EBIT) of 21.5 % to € 105.2 million (previous year: € 86.6 million), grew faster than the growth in volumes. The EBIT margin rose accordingly to 18.7 % (previous year: 16.9 %).

As part of the expansion work needed for the handling of megaships, three more container gantry cranes capable of handling ships with a capacity of over 20,000 TEU were put into operation at the HHLA Container Terminal Tollerort (CTT) in the third quarter. HHLA now has a total of three highly efficient berths in Hamburg capable of handling the largest vessel category.

Intermodal Segment

Key Figures

in € million 1–9 2017 1–9 2016 Change
Revenue 311.8 289.5 7.7 %
EBITDA 73.9 67.7 9.2 %
EBITDA margin in % 23.7 23.4 0.3 pp
EBIT 55.4 50.0 10.8 %
EBIT margin in % 17.8 17.3 0.5 pp
Container transport in thousand
TEU
1,126 1,055 6.8 %

In the first nine months of 2017, HHLA's transport companies achieved strong growth in the highly competitive market for container traffic in the hinterland of major seaports. Transport volumes rose by 6.8 % to 1,126 thousand standard containers (TEU), compared with 1,055 thousand TEU in the same period last year. In the reporting period, this trend was driven by growth in both rail and road transport. Compared with the prioryear quarter, rail transportation rose by a further 5.4 % to 861 thousand TEU (previous year: 818 thousand TEU). Road transport developed very positively with growth of 11.5 % to 265 thousand TEU (previous year: 237 thousand TEU) as a result of strong freight volumes in the greater Hamburg area.

With growth of 7.7 % to € 311.8 million (previous year: € 289.5 million), revenue slightly outperformed transport volumes. The marginal decline in rail's share of HHLA's total intermodal transportation from 77.5 % to 76.5 % was more than offset by longer transport distances in rail transport.

The operating result (EBIT) increased year-on-year to € 55.4 million (previous year: € 50.0 million) and thus outperformed the volume and revenue trend. In addition to changes in the route mix, the third quarter of 2017 was positively impacted by the improved relationship between import and export volumes compared to previous quarters and an associated rise in the utilisation of train capacities.

Logistics Segment

Key Figures

in € million 1–9 2017 1–9 2016 Change
Revenue 37.4 40.5 - 7.8 %
EBITDA 4.5 0.4 pos.
EBITDA margin in % 12.2 1.0 11.2 pp
EBIT 1.3 - 2.6 pos.
EBIT margin in % 3.3 - 6.4 9.7 pp
At-equity earnings 3.3 3.0 10.0 %

Despite considerable momentum in vehicle logistics, revenue in this segment was down 7.8 % year-on-year at € 37.4 million in the first nine months of 2017 (previous year: € 40.5 million). This was primarily due to the discontinuation of project and contract logistics during the course of 2016. The segment's operating result (EBIT) – clearly negative last year due to project and contract logistics losses – was raised to € 1.3 million in the reporting period.

The companies included in at-equity earnings recorded a year-on-year improvement in the first nine months of 2017 as a result of encouraging growth in bulk cargo handling. Atequity earnings rose by 10.0 % to € 3.3 million (previous year: (€ 3.0 million).

Real Estate Segment

Key Figures

in € million 1–9 2017 1–9 2016 Change
Revenue 28.2 28.0 0.8 %
EBITDA 16.1 15.3 5.1 %
EBITDA margin in % 57.2 54.8 2.4 pp
EBIT 12.4 11.5 7.3 %
EBIT margin in % 43.8 41.2 2.6 pp

HHLA's properties in the Speicherstadt historical warehouse district and the fish market area continued their positive trend. As a result of virtually full occupancy in both areas, total revenue of € 28.2 million was again 0.8 % above the already high prior-year figure.

At € 12.4 million, the operating result (EBIT) rose strongly by 7.3 % compared to € 11.5 million.

Changes to the Business Forecast

There were no significant events in the reporting period.

In the pro forma segment Holding/Others, one-off expenses of up to € 10 million are expected in the fourth quarter for harmonisation of the existing pension schemes. These are already included in the EBIT guidance.

All other disclosures made in the 2016 Annual Report and more recently in the 2017 Half-year Financial Report regarding the expected course of business in 2017 remain unchanged.

Hamburg, 6 November 2017

Hamburger Hafen und Logistik Aktiengesellschaft The Executive Board

Angela Titzrath Heinz Brandt

Jens Hansen Dr. Roland Lappin

Additional Financial Information

Income Statement

1–9 2017 1–9 2017 1–9 2017 1–9 2017
in € thousand Group Port Logistics Real Estate Consolidation
Revenue 942,848 919,367 28,201 - 4,720
Changes in inventories 720 719 1 0
Own work capitalised 3,583 3,106 0 477
Other operating income 28,704 25,284 4,225 - 805
Cost of materials - 277,141 - 272,040 - 5,540 439
Personnel expenses - 337,924 - 336,236 - 1,688 0
Other operating expenses - 115,452 - 110,980 - 9,081 4,609
Earnings before interest, taxes, depreciation and amortisation
(EBITDA) 245,338 229,220 16,118 0
Depreciation and amortisation - 90,182 - 86,671 - 3,756 245
Earnings before interest and taxes (EBIT) 155,156 142,549 12,362 245
Earnings from associates accounted for using the equity method 4,007 4,007 0 0
Interest income 3,458 3,566 30 - 138
Interest expenses - 16,478 - 14,447 - 2,169 138
Other financial result 0 0 0 0
Financial result - 9,013 - 6,874 - 2,139 0
Earnings before tax (EBT) 146,143 135,675 10,223 245
Income tax - 37,638 - 34,310 - 3,268 - 60
Profit after tax 108,505 101,365 6,955 185
of which attributable to non-controlling interests 29,218 29,218 0
of which attributable to shareholders of the parent company 79,287 72,147 7,140
Earnings per share, basic and diluted, in € 1.09 1.03 2.64
1–9 2017 1–9 2017 1–9 2017 1–9 2017
in € thousand Group Port Logistics Real Estate Consolidation
Profit after tax 108,505 101,365 6,955 185
Components which can not be transferred to the Income
Statement
Actuarial gains/losses 14,200 13,993 207
Deferred taxes - 4,584 - 4,517 - 67
Total 9,616 9,476 140
Components which can be transferred to the
Income Statement
Cash flow hedges - 41 - 41 0
Foreign currency translation differences - 3,107 - 3,107 0
Deferred taxes - 34 - 34 0
Other 61 61 0
Total - 3,121 - 3,121 0
Income and expense recognised directly in equity 6,495 6,355 140 0
Total comprehensive income 115,000 107,720 7,095 185
of which attributable to non-controlling interests 29,141 29,141 0
of which attributable to shareholders of the parent company 85,859 78,579 7,280

Income Statement

1–9 2016 1–9 2016 1–9 2016 1–9 2016
in € thousand Group Port Logistics Real Estate Consolidation
Revenue 870,984 847,469 27,980 - 4,465
Changes in inventories 1,743 1,743 0 0
Own work capitalised 4,640 4,408 0 232
Other operating income 44,339 40,868 4,242 - 771
Cost of materials - 258,514 - 252,792 - 5,818 96
Personnel expenses - 329,662 - 327,920 - 1,742 0
Other operating expenses - 115,116 - 110,692 - 9,332 4,908
Earnings before interest, taxes, depreciation and amortisation
(EBITDA) 218,414 203,084 15,330 0
Depreciation and amortisation - 91,519 - 87,953 - 3,810 244
Earnings before interest and taxes (EBIT) 126,895 115,131 11,520 244
Earnings from associates accounted for using the equity method 3,740 3,740 0 0
Interest income 4,788 4,896 46 - 154
Interest expenses - 24,128 - 21,990 - 2,292 154
Other financial result - 10 - 10 0 0
Financial result - 15,610 - 13,364 - 2,246 0
Earnings before tax (EBT) 111,285 101,767 9,274 244
Income tax - 27,999 - 25,551 - 2,389 - 59
Profit after tax 83,286 76,216 6,885 185
of which attributable to non-controlling interests 22,375 22,375 0
of which attributable to shareholders of the parent company 60,911 53,841 7,070
Earnings per share, basic and diluted, in € 0.84 0.77 2.61
1–9 2016 1–9 2016 1–9 2016 1–9 2016
in € thousand Group Port Logistics Real Estate Consolidation
Profit after tax 83,286 76,216 6,885 185
Components which can not be transferred to the Income
Statement
Actuarial gains/losses - 82,421 - 81,149 - 1,272
Deferred taxes 26,601 26,191 410
Total - 55,820 - 54,958 - 862
Components which can be transferred to the
Income Statement
Cash flow hedges 175 175 0
Foreign currency translation differences - 2,872 - 2,872 0
Deferred taxes - 90 - 90 0
Other 103 103 0
Total - 2,684 - 2,684 0
Income and expense recognised directly in equity - 58,504 - 57,642 - 862 0
Total comprehensive income 24,782 18,574 6,023 185
of which attributable to non-controlling interests 21,816 21,816 0
of which attributable to shareholders of the parent company 2,966 - 3,242 6,208

Income Statement

7–9 2017 7–9 2017 7–9 2017 7–9 2017
in € thousand Group Port Logistics Real Estate Consolidation
Revenue 320,016 312,038 9,504 - 1,526
Changes in inventories 394 393 1 0
Own work capitalised 739 537 0 202
Other operating income 6,748 5,677 1,359 - 288
Cost of materials - 92,534 - 90,803 - 2,108 377
Personnel expenses - 110,420 - 109,841 - 579 0
Other operating expenses - 38,124 - 36,786 - 2,573 1,235
Earnings before interest, taxes, depreciation and amortisation
(EBITDA) 86,819 81,215 5,604 0
Depreciation and amortisation - 30,479 - 29,314 - 1,245 80
Earnings before interest and taxes (EBIT) 56,340 51,901 4,359 80
Earnings from associates accounted for using the equity method 1,024 1,024 0 0
Interest income 737 771 10 - 44
Interest expenses - 5,446 - 4,767 - 723 44
Other financial result 0 0 0 0
Financial result - 3,685 - 2,972 - 713 0
Earnings before tax (EBT) 52,655 48,929 3,646 80
Income tax - 14,481 - 13,329 - 1,133 - 19
Profit after tax 38,174 35,600 2,513 61
of which attributable to non-controlling interests 11,503 11,503 0
of which attributable to shareholders of the parent company 26,671 24,097 2,574
Earnings per share, basic and diluted, in € 0.37 0.34 0.95
7–9 2017 7–9 2017 7–9 2017 7–9 2017
in € thousand Group Port Logistics Real Estate Consolidation
Profit after tax 38,174 35,600 2,513 61
Components which can not be transferred to the Income
Statement
Actuarial gains/losses 0 0 0
Deferred taxes 0 0 0
Total 0 0 0
Components which can be transferred to the
Income Statement
Cash flow hedges 0 0 0
Foreign currency translation differences - 1,526 - 1,526 0
Deferred taxes 0 0 0
Other 0 0 0
Total - 1,526 - 1,526 0
Income and expense recognised directly in equity - 1,526 - 1,526 0 0
Total comprehensive income 36,648 34,074 2,513 61
of which attributable to non-controlling interests 11,491 11,491 0
of which attributable to shareholders of the parent company 25,157 22,583 2,574

Income Statement

7–9 2016 7–9 2016 7–9 2016 7–9 2016
in € thousand Group Port Logistics Real Estate Consolidation
Revenue 297,505 289,674 9,255 - 1,424
Changes in inventories 892 892 0 0
Own work capitalised 1,123 1,086 0 37
Other operating income 28,198 27,075 1,360 - 237
Cost of materials - 89,901 - 87,824 - 2,107 30
Personnel expenses - 105,685 - 105,095 - 590 0
Other operating expenses - 39,511 - 38,027 - 3,078 1,594
Earnings before interest, taxes, depreciation and amortisation
(EBITDA) 92,621 87,781 4,840 0
Depreciation and amortisation - 32,581 - 31,412 - 1,251 82
Earnings before interest and taxes (EBIT) 60,040 56,369 3,589 82
Earnings from associates accounted for using the equity method 1,157 1,157 0 0
Interest income 605 634 21 - 50
Interest expenses - 6,999 - 6,306 - 743 50
Other financial result 0 0 0 0
Financial result - 5,237 - 4,515 - 722 0
Earnings before tax (EBT) 54,803 51,854 2,867 82
Income tax - 12,267 - 11,852 - 396 - 19
Profit after tax 42,536 40,002 2,471 63
of which attributable to non-controlling interests 7,431 7,431 0
of which attributable to shareholders of the parent company 35,105 32,571 2,534
Earnings per share, basic and diluted, in € 0.49 0.47 0.93
7–9 2016 7–9 2016 7–9 2016 7–9 2016
in € thousand Group Port Logistics Real Estate Consolidation
Profit after tax 42,536 40,002 2,471 63
Components which can not be transferred to the Income
Statement
Actuarial gains/losses - 8,936 - 8,806 - 130
Deferred taxes 2,883 2,842 41
Total - 6,053 - 5,964 - 89
Components which can be transferred to the
Income Statement
Cash flow hedges 2 2 0
Foreign currency translation differences - 1,787 - 1,787 0
Deferred taxes - 37 - 37 0
Other 110 110 0
Total - 1,712 - 1,712 0
Income and expense recognised directly in equity - 7,765 - 7,676 - 89 0
Total comprehensive income 34,771 32,326 2,382 63
of which attributable to non-controlling interests 7,422 7,422 0
of which attributable to shareholders of the parent company 27,349 24,904 2,445

Balance Sheet

30.09.2017 30.09.2017 30.09.2017 30.09.2017
in € thousand Group Port Logistics Real Estate Consolidation
ASSETS
Intangible assets 70,392 70,376 16 0
Property, plant and equipment 957,715 938,562 4,730 14,423
Investment property 179,720 31,188 174,915 - 26,383
Associates accounted for using the equity method 17,451 17,451 0 0
Financial assets 21,071 17,128 3,943 0
Deferred taxes 74,150 85,962 0 - 11,812
Non-current assets 1,320,499 1,160,667 183,604 - 23,772
Inventories 23,358 23,257 101 0
Trade receivables 159,697 158,643 1,054 0
Receivables from related parties 80,675 75,380 6,797 - 1,502
Other financial receivables 2,658 2,588 70 0
Other assets 29,186 27,800 1,386 0
Income tax receivables 2,313 2,424 2,387 - 2,498
Cash, cash equivalents and short-term deposits 201,727 196,675 5,052 0
Current assets 499,614 486,767 16,847 - 4,000
Balance sheet total 1,820,113 1,647,434 200,451 - 27,772
EQUITY AND LIABILITIES
Subscribed capital 72,753 70,048 2,705 0
Capital reserve 141,584 141,078 506 0
Retained earnings 467,894 427,009 49,871 - 8,986
Other comprehensive income - 104,367 - 104,269 - 98 0
Non-controlling interests 60,951 60,951 0 0
Equity 638,815 594,817 52,984 - 8,986
Pension provisions 444,641 437,959 6,682 0
Other non-current provisions 102,242 99,851 2,391 0
Non-current liabilities to related parties 105,583 105,583 0 0
Non-current financial liabilities 308,709 202,444 106,265 0
Deferred taxes 18,692 15,854 17,624 - 14,786
Non-current liabilities 979,867 861,691 132,962 - 14,786
13,994 90
Other current provisions 14,084 0
Trade liabilities 79,401 76,949 2,452 0
Current liabilities to related parties 11,279 8,279 4,502 - 1,502
Current financial liabilities 47,876 42,771 5,105 0
Other liabilities 44,415 42,383 2,032 0
Income tax liabilities 4,376 6,550 324 - 2,498
Current liabilities 201,431 190,926 14,505 - 4,000
Balance sheet total 1,820,113 1,647,434 200,451 - 27,772

Balance Sheet

31.12.2016 31.12.2016 31.12.2016 31.12.2016
in € thousand Group Port Logistics Real Estate Consolidation
ASSETS
Intangible assets 75,713 75,687 26 0
Property, plant and equipment 950,936 931,871 4,325 14,740
Investment property 183,994 35,409 175,528 - 26,943
Associates accounted for using the equity method 14,317 14,317 0 0
Financial assets 21,270 17,318 3,952 0
Deferred taxes 82,720 90,459 0 - 7,739
Non-current assets 1,328,950 1,165,061 183,831 - 19,942
Inventories 22,012 21,965 47 0
Trade receivables 160,440 159,013 1,427 0
Receivables from related parties 81,736 77,113 6,527 - 1,904
Other financial receivables 2,172 2,083 89 0
Other assets 39,877 38,567 1,310 0
Income tax receivables 488 488 105 - 105
Cash, cash equivalents and short-term deposits 177,192 173,832 3,360 0
Current assets 483,917 473,061 12,865 - 2,009
Balance sheet total 1,812,867 1,638,122 196,696 - 21,951
EQUITY AND LIABILITIES
Subscribed capital 72,753 70,048 2,705 0
Capital reserve 141,584 141,078 506 0
Retained earnings 435,345 396,191 48,325 - 9,171
Other comprehensive income - 110,938 - 110,701 - 237 0
Non-controlling interests 32,094 32,094 0 0
Equity 570,838 528,710 51,299 - 9,171
Pension provisions 460,530 453,488 7,042 0
Other non-current provisions 102,644 100,328 2,316 0
Non-current liabilities to related parties 105,914 105,914 0 0
Non-current financial liabilities 339,150 229,369 109,781 0
Deferred taxes 19,801 16,578 13,994 - 10,771
Non-current liabilities 1,028,039 905,677 133,133 - 10,771
Other current provisions 17,712 17,678 34 0
Trade liabilities 68,106 66,370 1,736 0
Current liabilities to related parties 9,340 8,809 2,435 - 1,904
Current financial liabilities 76,614 71,007 5,607 0
Other liabilities 29,946 29,156 790 0
Income tax liabilities 12,272 10,715 1,662 - 105
Current liabilities 213,990 203,735 12,264 - 2,009
Balance sheet total 1,812,867 1,638,122 196,696 - 21,951

Cash Flow Statement

in € thousand 1–9 2017
Group
1–9 2017
Port Logistics
1–9 2017
Real Estate
1–9 2017
Consolidation
1. Cash flow from operating activities
Earnings before interest and taxes (EBIT) 155,156 142,549 12,362 245
Depreciation, amortisation, impairment and reversals on non
financial non-current assets
90,182 86,671 3,756 - 245
Increase (+), decrease (-) in provisions - 11,581 - 11,440 - 141
Gains (-), losses (+) from the disposal of non-current assets 364 371 - 7
Increase (-), decrease (+) in inventories, trade receivables and
other assets not attributable to investing or financing activities
9,843 10,245 0 - 402
Increase (+), decrease (-) in trade payables and other liabilities not
attributable to investing or financing activities
30,820 27,209 3,209 402
Interest received 1,878 1,986 30 - 138
Interest paid - 9,208 - 7,695 - 1,651 138
Income tax paid - 44,480 - 41,154 - 3,326
Exchange rate and other effects - 1,347 - 1,347 0
Cash flow from operating activities 221,627 207,395 14,232 0
2. Cash flow from investing activities
Proceeds from disposal of intangible assets, property, plant and
equipment and investment property
195 182 13
Payments for investments in property, plant and equipment and
investment property
- 85,637 - 82,093 - 3,544
Payments for investments in intangible assets - 2,736 - 2,736 0
Payments for investments in non-current financial assets 0 0 0
Proceeds (+), payments (-) for short-term deposits - 1,205 - 1,205 0
Cash flow from investing activities - 89,383 - 85,852 - 3,531 0
3. Cash flow from financing activities
Payments for increasing interests in fully consolidated companies 0 0 0
Dividends paid to shareholders of the parent company - 46,738 - 41,329 - 5,409
Dividends/settlement obligation paid to non-controlling interests - 22,885 - 22,885 0
Redemption of lease liabilities - 4,610 - 4,610 0
Proceeds from the issuance of bonds and (financial) loans 0 0 0
Payments for the redemption of (financial) loans - 33,608 - 30,008 - 3,600
Cash flow from financing activities - 107,841 - 98,832 - 9,009 0
4. Financial funds at the end of the period
Change in financial funds (subtotals 1.–3.) 24,403 22,711 1,692 0
Change in financial funds due to exchange rates - 1,073 - 1,073 0
Change in financial funds due to consolidation 0 0 0
Financial funds at the beginning of the period 232,397 222,537 9,860
Financial funds at the end of the period 255,727 244,175 11,552 0

Cash Flow Statement

in € thousand 1–9 2016
Group
1–9 2016
Port Logistics
1–9 2016
Real Estate
1–9 2016
Consolidation
1. Cash flow from operating activities
Earnings before interest and taxes (EBIT) 126,895 115,131 11,520 244
Depreciation, amortisation, impairment and reversals on non
financial non-current assets 91,519 87,953 3,810 - 244
Increase (+), decrease (-) in provisions 6,623 6,646 - 23
Gains (-), losses (+) from the disposal of non-current assets - 1,031 - 1,031 0
Increase (-), decrease (+) in inventories, trade receivables and
other assets not attributable to investing or financing activities
- 30,930 - 32,267 105 1,232
Increase (+), decrease (-) in trade payables and other liabilities not
attributable to investing or financing activities
27,443 28,507 168 - 1,232
Interest received 1,844 1,952 46 - 154
Interest paid - 12,196 - 10,343 - 2,007 154
Income tax paid - 21,594 - 20,365 - 1,229
Exchange rate and other effects - 3,886 - 3,886 0
Cash flow from operating activities 184,687 172,297 12,390 0
2. Cash flow from investing activities
Proceeds from disposal of intangible assets, property, plant and
equipment and investment property
1,998 1,998 0
Payments for investments in property, plant and equipment and
investment property - 77,785 - 76,729 - 1,056
Payments for investments in intangible assets - 9,008 - 8,981 - 27
Payments for investments in non-current financial assets - 9 - 9 0
Proceeds (+), payments (-) for short-term deposits 34,143 34,143 0
Cash flow from investing activities - 50,661 - 49,578 - 1,083 0
3. Cash flow from financing activities
Payments for increasing interests in fully consolidated companies - 13,556 - 13,556 0
Dividends paid to shareholders of the parent company - 46,062 - 41,329 - 4,733
Dividends/settlement obligation paid to non-controlling interests - 22,371 - 22,371 0
Redemption of lease liabilities - 3,825 - 3,825 0
Proceeds from the issuance of bonds and (financial) loans 10,000 10,000 0
Payments for the redemption of (financial) loans - 36,657 - 33,057 - 3,600
Cash flow from financing activities - 112,471 - 104,138 - 8,333 0
4. Financial funds at the end of the period
Change in financial funds (subtotals 1.–3.) 21,555 18,581 2,974 0
Change in financial funds due to exchange rates - 1,242 - 1,242 0
Change in financial funds due to consolidation 4,543 4,543 0
Financial funds at the beginning of the period 165,415 161,162 4,253
Financial funds at the end of the period 190,271 183,044 7,227 0

Financial Calendar

Imprint

27 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

Disclaimer

This Interim Statement was published on 14 November 2017. http://report.hhla.de/interim-statement-q3-2017

The 2016 Annual Report is available online at: http://report.hhla.de/annual-report-2016

This Interim Statement, including its supplemental financial information, should be read in conjunction with the 2016 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 2016 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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