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Hamburger Hafen und Logistik AG

Interim / Quarterly Report May 12, 2017

195_10-q_2017-05-12_0c740af5-0f04-4e14-b85e-adf2e0623f0c.pdf

Interim / Quarterly Report

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interim statement Hamburger Hafen und Logistik ag 2017 JANUARY TO MARCH

HHLA Key Figures

HHLA Group
in € million 1–3 2017 1–3 2016 Change
Revenue and earnings
Revenue 305.1 284.8 7.1 %
EBITDA 75.1 70.4 6.6 %
EBITDA margin in % 24.6 24.7 - 0.1 pp
EBIT 45.2 41.0 10.4 %
EBIT margin % 14.8 14.4 0.4 pp
Profit after tax 31.5 26.0 21.3 %
Profit after tax and minority interests 24.4 18.1 34.4 %
Cash flow statement and investments
Cash flow from operating activities 86.8 62.0 40.1 %
Investments 39.8 27.0 47.8 %
Performance data
Container throughput in thousand TEU 1,778 1,612 10.3 %
Container transport in thousand TEU 370 341 8.4 %
in € million 31.03.2017 31.12.2016 Change
Balance sheet
Balance sheet total 1,850.0 1,812.9 2.1 %
Equity 605.2 570.8 6.0 %
Equity ratio in % 32.7 31.5 1.2 pp
Employees
Number of employees 5,538 5,528 0.2 %
Port Logistics Subgroup1, 2 Real Estate Subgroup1, 3
in € million 1–3 2017 1–3 2016 Change 1–3 2017 1–3 2016 Change
Revenue 297.4 277.1 7.3 % 9.3 9.2 0.8 %
EBITDA 70.4 65.4 7.6 % 4.7 5.0 - 7.1 %
EBITDA margin in % 23.7 23.6 0.1 pp 50.5 54.8 - 4.3 pp
EBIT 41.7 37.1 12.4 % 3.4 3.8 - 8.8 %
EBIT margin in % 14.0 13.4 0.6 pp 37.0 40.9 - 3.9 pp
Profit after tax and minority interests 22.4 16.0 40.1 % 2.0 2.1 - 8.6 %
Earnings per share in €4 0.32 0.23 40.1 % 0.72 0.79 - 8.6 %

1 Before consolidation between subgroups

2 Listed Class A shares

3 Non-listed Class S shares

4 Basic and diluted

Ladies and Gentlemen,

The economy remains untroubled as yet by the ongoing political uncertainties in many regions of the world. Stable growth rates are buoying global trade. Our container terminals and hinterland traffic are benefiting from this development. Hamburger Hafen und Logistik AG (HHLA) achieved positive results in the first quarter of 2017. The Group's most important performance indicators are mainly well above the corresponding prior-year level. Revenue of € 305.1 million was up 7.1 percent on the same period last year while our operating result (EBIT) of € 45.2 million made similarly strong progress over the prior-year figure of € 41.0 million. Profit after tax and minority interests increased by 34.4 percent year-on-year to € 24.4 million.

In view of the positive forecasts and consistently strong upswing in Germany in particular, we remain confident about our future development. HHLA has solid foundations. This is due in part to the successful progress of negotiations held so far with shipping companies about their new schedules. We believe we have succeeded in securing steady demand for our container terminals from our customers. Nevertheless, we remain aware of the risks that could quickly influence economic developments and have an impact on our business. For example, there is still a real risk of US protectionism. Equally, the post-Brexit realignment of the EU and conflict on the Korean peninsula represent incalculable risks for global trade. On the other hand, we also see many opportunities which innovation and digitalisation offer. We aspire to being the engine of digital change in the Port of Hamburg.

The prerequisites for treading new ground are stability and success in our core business of container throughput and container transport. The performance data for both segments was highly encouraging in the first quarter. 1.8 million standard containers (TEU) were handled in the first quarter – 10.3 percent more than in the same period in 2016. The rising volume trend which started in the second half of 2016 was therefore continued. This development was driven by a recovery in Far East volumes and significant growth in feeder traffic with the Baltic Sea ports at Hamburg's container terminals. There was also an increase in throughput of 5.4 percent yearon-year at our Container Terminal Odessa in Ukraine.

HHLA has solid foundations. We believe we have succeeded in securing steady demand for our container terminals from our customers.

The Intermodal segment also recorded further encouraging volume growth. HHLA's Intermodal companies increased container transport by 8.4 percent year-on-year to 370 thousand TEU in the first quarter of 2017. Both rail and road transport contributed to this growth.

In expectation of a significant increase in container throughput this year, the Executive Board has updated its forecast for the 2017 financial year. For the Container segment, we are forecasting an operating result (EBIT) in the upper half of a range between € 75 million and € 105 million. As such, the Group's EBIT could be in the upper half of a range between € 140 and € 170 million. We revise our outlook irrespective of the ongoing political uncertainties that could have an impact on our business in the course of the year.

We are confident, however, that we can reach our targets by the end of the financial year and meet the expectations of our shareholders. We want to continue to strengthen the future viability and dynamism of the company with the aid of a business development process initiated by the Executive Board and actively implemented by HHLA's management.

Yours,

Angela Titzrath Chairwoman of the Executive Board

Business Development

Course of Business and Economic Situation

Key Figures

in € million 1–3 2017 1–3 2016 Change
Revenue 305.1 284.8 7.1 %
EBITDA 75.1 70.4 6.6 %
EBITDA margin in % 24.6 24.7 - 0.1 pp
EBIT 45.2 41.0 10.4 %
EBIT margin in % 14.8 14.4 0.4 pp
Profit after tax and minority interest 24.4 18.1 34.4 %
ROCE in % 13.6 12.5 1.1 pp

Significant Events and Transactions

There were no particular events or transactions during the period under review 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 reported for the first three months of 2017 and HHLA's actual economic performance were largely in line with the performance forecast in the 2016 Annual Report. See results of operations, net assets and financial position

Earnings Position

HHLA achieved very encouraging performance data in the first quarter of 2017. At 1,778 thousand TEU, container throughput rose strongly by 10.3 % year-on-year (previous year: 1,612 thousand TEU). This was mainly attributable to an increase in feeder traffic with the Baltic Sea ports and a recovery in Asian routes. Transport volumes also increased significantly by 8.4 % to 370 thousand TEU (previous year: 341 thousand TEU). Both rail- and road-bound transport contributed to this growth.

The HHLA Group's revenue increased significantly by 7.1 % in the period under review to € 305.1 million (previous year: € 284.8 million). This was primarily due to the volume growth in container throughput and transport described above. The performance of the listed Port Logistics subgroup largely outlined that of the HHLA Group. Revenue rose by 7.3 % to € 297.4 million (previous year: € 277.1 million). The non-listed Real Estate subgroup increased its revenue by 0.8 % to € 9.3 million (previous year: € 9.2 million).

Operating expenses rose by 7.4 %, nearly in line with revenue, to € 273.1 million (previous year: € 254.2 million). The only increase was in the cost of materials ratio, which was partly due to maintenance for container gantry cranes at the Hamburg terminals and increased material costs for maintenance work in the Intermodal segment.

The operating result (EBIT) rose by 10.4 % to € 45.2 million in the period under review (previous year: € 41.0 million). The EBIT margin came in at 14.8 % (previous year: 14.4 %). In the Port Logistics subgroup, EBIT rose by 12.4 % to € 41.7 million (previous year: € 37.1 million) while in the Real Estate subgroup, EBIT declined by 8.8 % to 3.4 million (previous year: € 3.8 million) inter alia as a result of maintenance work.

Net expenses from the financial result fell by € 3.4 million or 53.0 % to € 3.1 million (previous year: € 6.5 million). This was mainly due to a reduction of € 1.9 million in negative exchange rate effects, which resulted almost exclusively from the devaluation of the Ukrainian currency. Interest paid to banks and other lenders also decreased.

The profit after tax and minority interests increased by 34.4 % year-on-year to € 24.4 million (previous year: € 18.1 million). Earnings per share rose accordingly to € 0.34 (previous year: € 0.25). The listed Port Logistics subgroup achieved a 40.1 % increase in earnings per share to € 0.32 (previous year: € 0.23). Earnings per share of the non-listed Real Estate subgroup were down on the prior-year figure at € 0.72 (previous year: € 0.79). Return on capital employed (ROCE) reached 13.6 % 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 € 37.1 million to € 1,850.0 million as of 31 March 2017 (31 December 2016: € 1,812.9 million).

Balance Sheet Structure

in € million 31.03.2017 31.12.2016
Assets
Non-current assets 1,337.4 1,329.0
Current assets 512.6 483.9
1,850.0 1,812.9
Equity and liabilities
Equity 605.2 570.8
Non-current liabilities 1,017.0 1,028.1
Current liabilities 227.8 214.0
1,850.0 1,812.9

On the assets side of the balance sheet, non-current assets increased by € 8.4 million to € 1,337.4 million (31 December 2016: € 1,329.0 million), largely as a result of capital expenditure. Current assets rose by € 28.7 million to € 512.6 million (31 December 2016: € 483.9 million), mainly due to the increase in cash and short-term deposits.

On the liabilities side, equity rose by € 34.4 million to € 605.2 million compared to the year-end figure (31 December 2016: € 570.8 million). This increase was primarily due to the profit for the period of € 31.5 million. The equity ratio increased to 32.7 % (31 December 2016: 31.5 %).

Non-current liabilities declined by € 11.1 million to € 1,017.0 million (31 December 2016: € 1,028.1 million). The decrease is attributable to the € 5.5 million decline in noncurrent financial liabilities and the € 5.0 million reduction in pension provisions. Current liabilities rose by € 13.8 million to € 227.8 million (31 December 2016: € 214.0 million), mainly as a result of the € 10.5 million increase in other liabilities.

Investment Analysis

The investment volume in the reporting period totalled € 39.8 million, well above last year's figure of € 27.0 million. The increase is mainly due to postponed investments from the previous year.

Capital expenditure in the first quarter of 2017 focused on the acquisition of container gantry cranes and large-scale equipment for horizontal transport at HHLA's container terminals in Hamburg.

Liquidity Analysis

Cash flow from operating activities rose year-on-year from € 62.0 million to € 86.8 million. In addition to the improved operating result (EBIT), the increase is largely attributable to the change in trade receivables. The year-on-year increase in income tax payments had an opposing effect.

At € 73.3 million, cash flow from investing activities was significantly higher than in the previous year. This rise in cash outflow was mainly due to an increase in payments for investments in property, plant and equipment and in payments for short-term deposits.

Cash flow from financing activities was down € 2.1 million on the prior-year figure.

Financial funds totalled € 237.2 million as of 31 March 2017 (31 March 2016: € 180.5 million). Including all short-term deposits, the Group's available liquidity at the end of the first quarter of 2017 amounted to € 286.5 million (31 March 2016: € 268.8 million).

Liquidity Analysis

in € million 1–3 2017 1–3 2016
Financial funds as of 01.01. 232.4 165.4
Cash flow from operating activities 86.8 62.0
Cash flow from investing activities - 73.3 - 36.2
Free cash flow 13.5 25.8
Cash flow from financing activities - 8.6 - 10.7
Change in financial funds 4.7 15.1
Financial funds as of 31.03. 237.2 180.5
Short-term deposits 49.3 88.3
Available liquidity 286.5 268.8

Container Segment

Key Figures

in € million 1–3 2017 1–3 2016 Change
Revenue 182.8 169.2 8.0 %
EBITDA 52.9 48.6 8.7 %
EBITDA margin in % 28.9 28.7 0.2 pp
EBIT 31.9 27.9 14.0 %
EBIT margin in % 17.4 16.5 0.9 pp
Container throughput in thousand
TEU 1,778 1,612 10.3 %

A total of 1,778 thousand standard containers (TEU) were handled at the HHLA container terminals in the first quarter of 2017 or 10.3 % more than in the previous year (1,612 thousand TEU). Container throughput at HHLA's three container terminals was raised by 10.5 % to 1,707 thousand TEU (previous year: 1,545 thousand TEU). This trend was driven by a recovery in Asian routes (+ 10.8 %) and significant growth in feeder traffic with the Baltic Sea ports (+ 22.2 %). The feeder ratio rose accordingly by 2.4 percentage points compared with the prior-year quarter to 25.0 % (previous year: 22.6 %). Container throughput at the Container Terminal Odessa rose 5.4 % yearon-year to 71 thousand TEU in the first quarter of 2017 (previous year: 67 thousand TEU).

This volume growth led to an 8.0 % increase in revenue to € 182.8 million compared to the first quarter of 2016 (previous year: € 169.2 million). Storage fees rose as a result of shipping delays and the associated increase in dwell times for containers at HHLA's container terminals, while the higher proportion of lower-margin feeder traffic in particular led to lower average revenue per container handled at the quayside. Consequently, average revenue declined by 2.1 % compared to the same period last year.

The segment's EBIT costs rose by 6.8 % in the first three months. Despite the growth in volumes, economies of scale on the cost side could not be fully realised. The high utilisation of storage capacity resulting from shipping delays and slightly restricted capacity caused by ongoing extension and maintenance work at the container terminals in Hamburg led to peak loads that could only be managed with the use of additional resources. Nevertheless, the year-on-year increase in the operating result (EBIT) of 14.0 % to € 31.9 million (previous year: € 27.9 million), grew faster than volume. The EBIT margin rose accordingly to 17.4 % (previous year: 16.5 %).

Intermodal Segment

Key Figures

in € million 1–3 2017 1–3 2016 Change
Revenue 101.7 92.6 9.8 %
EBITDA 22.4 22.0 1.7 %
EBITDA margin in % 22.0 23.8 - 1.8 pp
EBIT 16.5 16.3 1.5 %
EBIT margin in % 16.2 17.6 - 1.4 pp
Container transport in thousand
TEU 370 341 8.4 %

In the first quarter 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 8.4 % to 370 thousand standard containers (TEU), compared with 341 thousand TEU in the same period last year. In the reporting period, this trend was driven by growth in both rail and road transport. After a strong prioryear quarter, rail transportation rose by a further 7.1 % to 283 thousand TEU (previous year: 264 thousand TEU). Road transport also developed very positively with growth of 12.8 % to 87 thousand TEU (previous year: 77 thousand TEU) as a result of strong freight volumes in the greater Hamburg area.

Revenue outperformed transport volumes, rising by 9.8 % to € 101.7 million (previous year: € 92.6 million). The slight decline in rail's share of HHLA's total intermodal transportation from 77.5 % to 76.6 % was slightly more than offset by longer transport distances in rail transport.

The operating result (EBIT) increased year-on-year to € 16.5 million (previous year: € 16.3 million), well short of volume and revenue growth. In addition to the increased cost of materials for cyclical maintenance work, compared with the previous year, this was due in particular to an uneven mix between import and export volumes as well as changes in the route mix.

Logistics Segment

Key Figures

in € million 1–3 2017 1–3 2016 Change
Revenue 11.0 13.4 - 18.1 %
EBITDA 0.7 0.0 pos.
EBITDA margin in % 6.2 0.3 5.9 pp
EBIT - 0.4 - 1.0 58.2 %
EBIT margin in % - 3.7 - 7.2 3.5 pp
At-equity earnings 1.3 1.0 39.1 %

The revenue trend of the consolidated companies comprising the Logistics segment was modest on the whole in the first quarter of 2017. At € 11.0 million, segment revenue was down 18.1 % on the previous year (€ 13.4 million), largely due to the discontinuation of contract and project logistics activities. The operating result (EBIT) improved to € - 0.4 million in the first quarter of 2017 (previous year: € - 1.0 million). The absence of losses from project and contract logistics was offset by lower earnings from vehicle logistics and consulting activities.

The companies included in at-equity earnings recorded a significant year-on-year improvement in the first quarter of 2017, mainly as a result of encouraging growth in bulk cargo handling. At-equity earnings rose by 39.1 % to € 1.3 million (previous year: € 1.0 million).

Real Estate Segment

Key Figures

in € million 1–3 2017 1–3 2016 Change
Revenue 9.3 9.2 0.8 %
EBITDA 4.7 5.0 - 7.1 %
EBITDA margin in % 50.5 54.8 - 4.3 pp
EBIT 3.4 3.8 - 8.8 %
EBIT margin in % 37.0 40.9 - 3.9 pp

HHLA's properties in the Speicherstadt historical warehouse district and the fish market area continued their positive revenue trend at the beginning of 2017. Revenue again increased slightly by 0.8 % year-on-year to € 9.3 million as a result of almost full occupancy in both districts.

By contrast, the operating result (EBIT) fell by 8.8 % to € 3.4 million (previous year: € 3.8 million), mainly due to higher expenses for scheduled maintenance work as part of the necessary refurbishment of rental space, as well as projectrelated expenses in preparation for a new building project.

Changes to the Business Forecast

The positive start into the financial year 2017 and the success of the negotiations with the shipping companies thus far regarding new services led to a better visibility of throughput development in the remainder of the year. The Executive Board of HHLA therefore issued an ad hoc announcement on 5 May 2017 elaborating on its expectations regarding volume and earnings developments in the Container segment and thus also regarding the Group's earnings forecast for the 2017 financial year.

HHLA is now anticipating a significant increase in container throughput (previously: on a par with the previous year). The Container segment's operating result (EBIT) is forecast to be in the upper half of a range between € 75 million to € 105 million (previously: € 65 million to € 95 million) before possible one-off expenses of up to € 15 million. There are no changes to the other segments.

The updated forecast for the throughput volume is likely to result in a moderate increase in Group revenue (previously: on a par with the previous year). Taking into account segment result developments, the Executive Board is forecasting an operating result (EBIT) for the Port Logistics subgroup in the upper half of a range between € 125 million to € 155 million (previously: € 115 million to € 145 million) before possible one-off expenses in the amount of € 15 million for organisational restructuring of the Container segment. As the operating result for the Real Estate subgroup is still expected to be on a par with the previous year, Group EBIT should now be in the upper half of a range between € 140 million to € 170 million (previously: € 130 million to € 160 million) before possible oneoff expenses of up to € 15 million.

All other disclosures made in the 2016 Annual Report about the expected course of business in 2017 remain unchanged.

Hamburg, 8 May 2017

Hamburger Hafen und Logistik Aktiengesellschaft The Executive Board

Angela Titzrath Heinz Brandt

Jens Hansen Dr. Roland Lappin

Additional Financial Information

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, in € 0.34 0.32 0.72
Earnings per share, 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
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

Income Statement

1–3 2016 1–3 2016 1–3 2016 1–3 2016
in € thousand Group Port Logistics Real Estate Consolidation
Revenue 284,781 277,081 9,213 - 1,513
Changes in inventories 686 686 0 0
Own work capitalised 1,662 1,562 0 100
Other operating income 8,096 6,883 1,481 - 268
Cost of materials - 83,542 - 81,706 - 1,864 28
Personnel expenses - 105,336 - 104,759 - 577 0
Other operating expenses - 35,916 - 34,362 - 3,207 1,653
Earnings before interest, taxes, depreciation and amortisation
(EBITDA) 70,431 65,385 5,046 0
Depreciation and amortisation - 29,455 - 28,260 - 1,276 81
Earnings before interest and taxes (EBIT) 40,976 37,125 3,770 81
Earnings from associates accounted for using the equity method 1,110 1,110 0 0
Interest income 2,027 2,067 12 - 52
Interest expenses - 9,629 - 8,903 - 778 52
Other financial result 0 0 0 0
Financial result - 6,492 - 5,726 - 766 0
Earnings before tax (EBT) 34,484 31,399 3,004 81
Income tax - 8,523 - 7,575 - 928 - 20
Profit after tax 25,961 23,824 2,076 61
of which attributable to non-controlling interests 7,815 7,815 0
of which attributable to shareholders of the parent company 18,146 16,009 2,137
Earnings per share, basic, in € 0.25 0.23 0.79
Earnings per share, diluted, in € 0.25 0.23 0.79

Statement of Comprehensive Income

1–3 2016 1–3 2016 1–3 2016 1–3 2016
in € thousand Group Port Logistics Real Estate Consolidation
Profit after tax 25,961 23,824 2,076 61
Components, which can not be transferred to the
Income Statement
Actuarial gains/losses - 41,276 - 40,628 - 648
Deferred taxes 13,321 13,112 209
Total - 27,955 - 27,516 - 439
Components, which can be transferred to the
Income Statement
Cash flow hedges 53 53 0
Foreign currency translation differences - 3,504 - 3,504 0
Deferred taxes - 7 - 7 0
Other - 28 - 28 0
Total - 3,486 - 3,486 0
Income and expense recognised directly in equity - 31,441 - 31,002 - 439 0
Total comprehensive income - 5,480 - 7,178 1,637 61
of which attributable to non-controlling interests 7,718 7,718 0
of which attributable to shareholders of the parent company - 13,198 - 14,896 1,698

Balance Sheet

31.03.2017 31.03.2017 31.03.2017 31.03.2017
in € thousand Group Port Logistics Real Estate Consolidation
ASSETS
Intangible assets 74,344 74,321 23 0
Property, plant and equipment 964,272 945,223 4,415 14,634
Investment property 181,979 34,012 174,718 - 26,751
Associates accounted for using the equity method 15,500 15,500 0 0
Financial assets 20,723 16,823 3,900 0
Deferred taxes 80,593 88,407 0 - 7,814
Non-current assets 1,337,411 1,174,286 183,056 - 19,931
Inventories 22,353 22,224 129 0
Trade receivables 158,542 157,573 969 0
Receivables from related parties 81,221 77,944 6,646 - 3,369
Other financial receivables 3,135 3,088 47 0
Other assets 34,130 32,721 1,409 0
Income tax receivables 766 766 0 0
Cash, cash equivalents and short-term deposits 212,473 205,863 6,610 0
Current assets 512,620 500,179 15,810 - 3,369
Balance sheet total 1,850,031 1,674,465 198,866 - 23,300
EQUITY AND LIABILITIES
Subscribed capital 72,753 70,048 2,705 0
Capital reserve 141,584 141,078 506 0
Retained earnings 459,727 418,621 50,212 - 9,106
Other comprehensive income - 108,098 - 107,923 - 175 0
Non-controlling interests 39,258 39,258 0 0
Equity 605,224 561,082 53,248 - 9,106
Pension provisions 455,450 448,550 6,900 0
Other non-current provisions 102,371 100,055 2,316 0
Non-current liabilities to related parties 105,805 105,805 0 0
Non-current financial liabilities 333,661 225,429 108,232 0
Deferred taxes 19,728 16,327 14,226 - 10,825
Non-current liabilities 1,017,015 896,166 131,674 - 10,825
Other current provisions 17,696 17,662 34 0
Trade liabilities 70,404 68,522 1,882 0
Current liabilities to related parties 6,350 5,942 3,777 - 3,369
Current financial liabilities 78,620 72,644 5,976 0
Other liabilities 40,476 39,006 1,470 0
Income tax liabilities 14,246 13,441 805 0
Current liabilities 227,792 217,217 13,944 - 3,369
Balance sheet total 1,850,031 1,674,465 198,866 - 23,300

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 1–3 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
Earnings (-), losses (+) arising 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 investments in non-current financial assets 0 0 0
Proceeds (+), payments (-) from/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
Redemption of lease liabilities - 1,070 - 1,070 0
Payments for 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 (subtotal 1.– 3.) 4,903 1,653 3,250 0
Change in financial funds due to exchange rates - 150 - 150 0
Change in financial funds due to consolidation effects 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 237,150 224,040 13,110 0

Cash Flow Statement

1–3 2016 1–3 2016 1–3 2016 1–3 2016
in € thousand Group Port Logistics Real Estate Consolidation
1. Cash flow from operating activities
Earnings before interest and taxes (EBIT) 40,976 37,127 3,770 79
Depreciation, amortisation, impairment and reversals on non
financial non-current assets
29,455 28,257 1,277 - 79
Increase (+), decrease (-) in provisions - 295 - 163 - 132
Earnings (-), losses (+) arising from the disposal of non-current
assets
- 224 - 224 0
Increase (-), decrease (+) in inventories, trade receivables and
other assets not attributable to investing or financing activities
- 18,490 - 19,057 - 307 874
Increase (+), decrease (-) in trade payables and other liabilities not
attributable to investing or financing activities
18,093 18,991 - 24 - 874
Interest received 664 704 12 - 52
Interest paid - 4,192 - 3,330 - 914 52
Income tax paid - 1,156 - 945 - 211
Exchange rate and other effects - 2,869 - 2,869 0
Cash flow from operating activities 61,962 58,491 3,471 0
2. Cash flow from investing activities
Proceeds from disposal of intangible assets, property, plant and
equipment and investment property
409 409 0
Payments for investments in property, plant and equipment and
investment property
- 15,842 - 15,471 - 371
Payments for investments in intangible assets - 5,435 - 5,435 0
Payments for investments in non-current financial assets - 34 - 34 0
Proceeds (+), payments (-) from/for short-term deposits - 15,251 - 15,251 0
Cash flow from investing activities - 36,153 - 35,782 - 371 0
3. Cash flow from financing activities
Redemption of lease liabilities - 1,271 - 1,271 0
Payments for redemption of (financial) loans - 9,435 - 7,888 - 1,547
Cash flow from financing activities - 10,706 - 9,159 - 1,547 0
4. Financial funds at the end of the period
Change in financial funds (subtotal 1.– 3.) 15,103 13,550 1,553 0
Change in financial funds due to exchange rates - 1,485 - 1,485 0
Change in financial funds due to consolidation effects 1,512 1,512 0
Financial funds at the beginning of the period 165,415 161,162 4,253
Financial funds at the end of the period 180,545 174,739 5,806 0

Financial Calendar

Imprint

30 March 2017

Annual Report 2016 Press Conference, Analyst Conference Call

12 May 2017

Interim Statement January – March 2017 Analyst Conference Call

21 June 2017

Annual General Meeting

14 August 2017

Half-year Financial Report January – June 2017 Analyst Conference Call

14 November 2017

Interim Statement January – September 2017 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 12 May 2017. http://report.hhla.de/interim-statement-q1-2017

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

This Interim Statement, including its supplemental financial information, has to 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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