AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

Hamburger Hafen und Logistik AG

Quarterly Report Nov 25, 2016

195_10-q_2016-11-25_758c2372-3bbb-483f-94cf-74eaddf76e4e.pdf

Quarterly Report

Open in Viewer

Opens in native device viewer

INTERIM STATEMENT

HAMBURGER HAFEN UND LOGISTIK AG 2016 JANUARY TO SEPTEMBER

HHLA Key Figures

HHLA Group
in € million 1–9 2016 1–9 2015 Change
Revenue and earnings
Revenue 871.0 868.9 0.2 %
EBITDA 218.4 214.4 1.9 %
EBITDA margin in % 25.1 24.7 0.4 pp
EBIT 126.9 123.9 2.4 %
EBIT margin % 14.6 14.3 0.3 pp
Profit after tax 83.3 77.4 7.6 %
Profit after tax and minority interests 60.9 55.9 9.0 %
Cash flow statement and investments
Cash flow from operating activities 184.7 139.8 32.1 %
Investments 106.3 111.8 - 5.0 %
Performance data
Container throughput in thousand TEU 4,924 5,027 - 2.1 %
Container transport in thousand TEU 1,055 996 5.9 %
in € million 30.09.2016 31.12.2015 Change
Balance sheet
Balance sheet total 1,820.4 1,750.4 4.0 %
Equity 544.8 580.6 - 6.2 %
Equity ratio in % 29.9 33.2 - 3.3 pp
Employees
Number of employees 5,462 5,345 2.2 %
Port Logistics Subgroup1, 2 Real Estate Subgroup1, 3
in € million 1–9 2016 1–9 2015 Change 1–9 2016 1–9 2015 Change
Revenue 847.5 845.6 0.2 % 28.0 27.5 1.8 %
EBITDA 203.1 198.0 2.6 % 15.3 16.4 - 6.6 %
EBITDA margin in % 24.0 23.4 0.6 pp 54.8 59.7 - 4.9 pp
EBIT 115.1 111.0 3.7 % 11.5 12.7 - 8.9 %
EBIT margin in % 13.6 13.1 0.5 pp 41.2 46.0 - 4.8 pp
Profit after tax and minority interests 53.8 49.3 9.2 % 7.1 6.6 7.6 %
Earnings per share in €4 0.77 0.70 9.2 % 2.61 2.43 7.6 %

1 Before consolidation between subgroups

2 Listed Class A shares

3 Non-listed Class S shares

4 Basic and diluted

Ladies and Gentlemen,

Hamburger Hafen und Logistik AG (HHLA) continued its stable performance in the last nine months. The Group's key performance indicators are now on par with the previous year. Revenue was up slightly year-on-year at € 871 million and the operating result (EBIT) was just above the prior-year figure at almost € 127 million. EBIT for the third quarter of 2016 included one-off income from the premature termination of a lease in the project and contract logistics business division. This income offset the one-off expense of almost € 15 million for the restructuring of the division as reported in our 2016 half-yearly financial report. HHLA turned in a satisfactory performance in view of persistently modest global economic growth, weak global trade, a further slowdown in global container throughput and continued infrastructure deficits.

At 4.9 million standard containers (TEU), container throughput was still around 2 percent lower than in the prior-year period. However, we see a positive trend in the Container segment over the year. Whereas volumes in the first half of 2016 were still significantly down on the previous year, the third quarter saw growth of almost 6 percent over the same period last year. This growth was largely driven by an increase in feeder traffic, particularly between Hamburg and Russia. There was also an encouraging increase in throughput of over 13 percent yearon-year at our Container Terminal Odessa in Ukraine. In addition, we succeeded in adapting our costs to volumes in this segment. Due to higher average revenue per container handled at the quayside, revenue declined more slowly than volumes at just over 1 percent to almost € 513 million. Consequently, the segment's operating result rose by around 4 percent to almost € 87 million.

The Intermodal segment once again recorded encouraging volume growth. Container transport at HHLA's Intermodal companies rose by almost 6 percent to around 1.1 million TEU. The segment's revenue grew in line with volumes and reached almost € 290 million. At € 50 million, the operating result was almost 14 percent higher than in the prior-year period and once again outpaced volume and revenue. This performance was mainly driven by our rail companies, which not only benefited from volume growth, but in particular from an improved importexport ratio and high train utilisation.

HHLA turned in a satisfactory performance given the still subdued global economic growth, weak global trade, a further slowdown in global container throughput and continued infrastructure deficits.

Based on the developments described above, the Executive Board has decided to elaborate on its forecast for the 2016 financial year. We continue to expect container throughput and revenue on par with the previous year, but now only anticipate a moderate increase in container transport and forecast Group EBIT in the range of € 150 million to € 160 million due to the offsetting one-off effects in the project and contract logistics business division.

We are confident that we can reach our targets by the end of the financial year and meet the expectations of our shareholders. Our successfully established and expanded Intermodal segment has become a dynamic earnings driver for our Group and will play a key role in this development.

Klaus-Dieter Peters Chairman of the Executive Board

Business Development

Course of Business and Economic Situation

Key Figures

in € million 1–9 I 2016 1–9 I 2015 Change
Revenue 871.0 868.9 0.2 %
EBITDA 218.4 214.4 1.9 %
EBITDA margin in % 25.1 24.7 0.4 pp
EBIT 126.9 123.9 2.4 %
EBIT margin in % 14.6 14.3 0.3 pp
Profit after tax and minority
interests 60.9 55.9 9.0 %
ROCE in % 12.8 12.7 0.1 pp

Significant Events and Transactions

The negative impact of the virtually completed restructuring of the Logistics segment in the previous quarter was largely offset by a one-off effect from the termination of the lease for the Übersee-Zentrum in the third quarter. Above and beyond this, there were no particular events or transactions 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 nine months of 2016 and HHLA's actual economic performance were largely in line with the performance forecast in the 2015 Annual Report. However, a change in the interest rate used to calculate pension obligations led to a significant increase in pension provisions along with a corresponding reduction in equity. In addition, HHLA continues to be affected by exchange rate-related changes. See results of operations, net assets and financial position

Earnings Position

HHLA posted mixed performance data in the first nine months of 2016. At 4,924 thousand TEU, container throughput was down by 2.1 % year-on-year (previous year: 5,027 thousand TEU). However, the decline was significantly less pronounced than in the first half of the year. By contrast, transport volumes rose by 5.9 % to 1,055 thousand TEU (previous year: 996 thousand TEU).

The HHLA Group's revenue increased slightly by 0.2 % in the period under review to € 871.0 million (previous year: € 868.9 million). This was primarily due to the volume-related increase in revenue from rail transportation.

The performance of the listed Port Logistics subgroup largely mirrored that of the HHLA Group. Revenue rose by 0.2 % to € 847.5 million (previous year: € 845.6 million). The non-listed Real Estate subgroup saw revenue rise by 1.8 % to € 28.0 million (previous year: € 27.5 million).

The increase in other operating income to € 44.3 million (previous year: € 27.5 million) is mainly attributable to the oneoff effect from the termination of the lease for the Übersee-Zentrum.

Operating expenses rose by 1.8 % to € 794.8 million (previous year: € 780.4 million). These include the one-off expenses already recognised in the second quarter in connection with the scaling back of project and contract logistics activities.

The operating result (EBIT) increased by 2.4 % to € 126.9 million in the period under review (previous year: € 123.9 million). The EBIT margin was 14.6 % (previous year: 14.3 %). In the Port Logistics subgroup, EBIT rose by 3.7 % to € 115.1 million (previous year: € 111.0 million). In the Real Estate subgroup, EBIT declined by 8.9 % to € 11.5 million (previous year: € 12.7 million) as a result of maintenance work, among other factors.

Net expenses from the financial result fell by 28.7 % or € 6.3 million to € 15.6 million (previous year: € 21.9 million). This was mainly due to a reduction of € 4.2 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 9.0 % year-on-year to € 60.9 million (previous year: € 55.9 million). Earnings per share rose accordingly by 9.0 % to € 0.84 (previous year: € 0.77). The listed Port Logistics subgroup achieved a 9.2 % increase in earnings per share to € 0.77 (previous year: € 0.70). Earnings per share of the nonlisted Real Estate subgroup were also up on the prior-year figure at € 2.61 (previous year: € 2.43). The return on capital employed (ROCE) was 12.8 % and thus on a par with the previous year.

Financial Position

Balance Sheet Analysis

Compared with year-end 2015, the HHLA Group's balance sheet total increased by a total of € 70.0 million to € 1,820.4 million as of 30 September 2016 (31 December 2015: € 1,750.4 million).

Balance Sheet Structure

in € million 30.09.2016 31.12.2015
Assets
Non-current assets 1,357.9 1,305.8
Current assets 462.5 444.6
1,820.4 1,750.4
Equity and liabilities
Equity 544.8 580.6
Non-current liabilities 1,054.5 979.2
Current liabilities 221.1 190.6
1,820.4 1,750.4

On the assets side of the balance sheet, non-current assets rose by € 52.1 million to € 1,357.9 million (31 December 2015: € 1,305.8 million). Current assets increased by € 17.9 million to € 462.5 million (31 December 2015: € 444.6 million).

On the liabilities side, equity declined by € 35.8 million as against the 2015 year-end to € 544.8 million (31 December 2015: € 580.6 million). The decrease was primarily due to the interest rate-related change of € 55.8 million in actuarial gains and losses, netted with deferred taxes, and the dividend distribution of € 46.8 million. The Group's profit after tax for the reporting period increased equity by € 83.3 million. The equity ratio decreased to 29.9 % (31 December 2015: 33.2 %).

Non-current and current liabilities rose by € 105.8 million to € 1,275.6 million (31 December 2015: € 1,169.8 million). This is mainly attributable to the € 84.8 million increase in pension provisions.

Investment Analysis

The investment volume in the period under review totalled € 106.3 million, just short of the previous year's figure of € 111.8 million due to reporting date factors.

Capital expenditure in the first nine months of 2016 focused to a large extent on the expansion of the block storage facility at the Container Terminal Burchardkai, the purchase of container gantry cranes for the Burchardkai and Tollerort container terminals, the construction of the Budapest inland terminal and the purchase of wagons for the intermodal subsidiary Metrans.

Liquidity Analysis

Cash flow from operating activities rose year-on-year from € 139.8 million to € 184.7 million. The net increase is primarily attributable to higher trade liabilities and lower income tax payments as against the previous year.

At € 50.7 million, cash flow from investing activities was lower than in the previous year. The change was mainly due to the decline in capital expenditure.

Cash flow from financing activities was down € 40.7 million on the prior-year figure. In addition to the acquisition of noncontrolling interests, the net result of a decline in new borrowing and lower principal repayments on loans led to an increase in net cash outflow from financing activities.

Financial funds totalled € 190.3 million as of 30 September 2016 (30 September 2015: € 163.0 million). Including all shortterm deposits, the Group's available liquidity at the end of the third quarter of 2016 amounted to € 229.2 million (30 September 2015: € 233.0 million).

Liquidity Analysis

in € million 1–9 I 2016 1–9 I 2015
Financial funds as of 01.01. 165.4 185.6
Cash flow from operating activities 184.7 139.8
Cash flow from investing activities - 50.7 - 88.6
Free cash flow 134.0 51.2
Cash flow from financing activities - 112.5 - 71.8
Change in financial funds 21.6 - 20.6
Change in financial funds due to
exchange rates
- 1.2 - 2.0
Change in financial funds due to
consolidation
4.5 0.0
Financial funds as of 30.09. 190.3 163.0

Container Segment

Key Figures

in € million 1–9 I 2016 1–9 I 2015 Change
Revenue 512.7 518.7 - 1.2 %
EBITDA 148.4 147.3 0.8 %
EBITDA margin in % 28.9 28.4 0.5 pp
EBIT 86.6 83.5 3.7 %
EBIT margin in % 16.9 16.1 0.8 pp
Container throughput
in thousand TEU
4,924 5,027 - 2.1 %

Between January and September 2016, HHLA's container terminals handled a total of 4,924 thousand standard containers (TEU), 2.1 % fewer than in the prior-year period (previous year: 5,027 thousand TEU). Volumes recovered in the third quarter of 2016, growing by 5.6 % year-on-year after lower volumes continued to dominate the first half of 2016. This was due in part to the stabilisation of handling volumes in the Far East shipping region, although these volumes were again down on the prior-year level on a cumulative basis. Feeder traffic to and from Russia, which has gradually recovered over the course of the year following severe slumps in 2015, contributed to volume growth in the third quarter and rose by 10.5 % overall in the reporting period. By contrast, throughput to and from the other Baltic Sea ports, such as in Poland or Sweden, again fell short of the previous year due to mega-ship calls. As a result, handling volumes at the three container terminals in Hamburg were down 2.7 % on the previous year in the first nine months of 2016 at 4,711 thousand TEU (previous year: 4,840 thousand TEU). Container throughput at the Container Terminal Odessa was again very strong, rising by 13.4 % year-on-year to 213 thousand TEU (previous year: 188 thousand TEU) due to cyclical factors.

The fall in volumes led to a corresponding decrease in revenue – albeit at the proportionately slower rate of 1.2 % year-onyear to € 512.7 million (previous year: € 518.7 million). Despite a slightly higher feeder ratio of 23.5 % (previous year: 23.1 %), there was an increase in average revenue per container handled at the quayside.

The segment's EBIT costs were reduced in line with the lower seaborne throughput, despite the high proportion of fixed costs typical of the container business. In particular, personnel expenses per unit remained unchanged as against the previous year. The higher average revenue lifted the operating result (EBIT) by 3.7 % to € 86.6 million (previous year: € 83.5 million). Accordingly, the EBIT margin rose to 16.9 % (previous year: 16.1 %).

Intermodal Segment

Key Figures

in € million 1–9 I 2016 1–9 I 2015 Change
Revenue 289.5 272.8 6.1 %
EBITDA 67.7 61.1 10.7 %
EBITDA margin in % 23.4 22.4 1.0 pp
EBIT 50.0 44.0 13.8 %
EBIT margin in % 17.3 16.1 1.2 pp
Container transport
in thousand TEU
1,055 996 5.9 %

In the first nine months of 2016, HHLA's transport companies achieved significant growth in the highly competitive market for container traffic in the hinterland of major seaports. Transport volumes rose by 5.9 % to 1,055 thousand standard containers (TEU), compared with 996 thousand TEU in the previous year. The trend was driven by growth in rail transportation, which again increased significantly year-on-year by 7.3 % to 818 thousand TEU (previous year: 762 thousand TEU). In a difficult market environment, road transport also made good progress with year-on-year growth of 1.3 % to 237 thousand TEU (previous year: 234 thousand TEU).

With an increase of 6.1 % to € 289.5 million (previous year: € 272.8 million), revenue performed slightly better than transport volumes. This positive trend was partly due to changes in the route mix, as rail's share of HHLA's total intermodal transportation rose from 76.5 % to 77.5 %.

The operating result (EBIT) rose year-on-year to € 50.0 million (previous year: € 44.0 million) and significantly outperformed volume and revenue growth. This was primarily attributable to the higher volumes. Better utilisation of trains and an improved mix of import and export volumes compared to last year also had a positive effect on segment earnings. In a year-on-year comparison, it must be taken into account that the third quarter of 2015 contained positive one-off effects in the amount of € 2.5 million from the sale of a property in Poland.

Logistics Segment

Key Figures

in € million 1–9 I 2016 1–9 I 2015 Change
Revenue 40.5 48.9 - 17.1 %
EBITDA 0.4 2.5 - 83.2 %
EBITDA margin in % 1.0 5.1 - 4.1 pp
EBIT - 2.6 - 0.6 neg.
EBIT margin in % - 6.4 - 1.3 - 5.1 pp
At-equity earnings 3.0 2.7 8.1 %

The key financial figures for the Logistics segment include the vehicle logistics, project and contract logistics, consultancy activities and cruise logistics business divisions. The results from dry bulk and fruit logistics are included in at-equity earnings.

Revenue generated by the consolidated companies of the Logistics segment declined in the first nine months of 2016. At € 40.5 million, segment revenue was down 17.1 % on the prior-year figure (€ 48.9 million). In addition to the successive scaling back of project and contract logistics activities, this was also due to lower revenue from consulting activities for projectrelated reasons. The operating result (EBIT) in the third quarter of 2016 included one-off effects from the termination of the lease for the Übersee-Zentrum. These were offset in the reporting period as a whole by expenses for provisions recognised in the second quarter for the discontinuation of project and contract logistics activities, which is now largely complete. Compared with the previous year, the segment's operating loss grew to € - 2.6 million in the first nine months (previous year: € - 0.6 million). This was partly a result of the year-on-year decline in operating income from consulting activities and vehicle logistics.

The companies included in at-equity earnings turned in a mixed performance. At-equity earnings totalled € 3.0 million in the reporting period, up 8.1 % on the previous year (€ 2.7 million).

Real Estate Segment

Key Figures

in € million 1–9 I 2016 1–9 I 2015 Change
Revenue 28.0 27.5 1.8 %
EBITDA 15.3 16.4 - 6.6 %
EBITDA margin in % 54.8 59.7 - 4.9 pp
EBIT 11.5 12.7 - 8.9 %
EBIT margin in % 41.2 46.0 - 4.8 pp

HHLA's properties in the Speicherstadt historical warehouse district and the fish market area continued their positive revenue trend in the third quarter of 2016 amid virtually full occupancy. This is reflected by the 1.8 % increase in revenue to € 28.0 million (previous year: € 27.5 million).

By contrast, the operating result (EBIT) declined by 8.9 % year-on-year to € 11.5 million (previous year: € 12.7 million), primarily due to higher maintenance expenses for the necessary refurbishment of rental space in the Speicherstadt historical warehouse district. In addition, the prior-year figure included extraordinary income of € 0.9 million from an insurance refund.

Changes in Business Forecast

Based on business developments in the first nine months of 2016 and in light of the unplanned one-off effect in the Logistics segment described above (termination of the lease for the Übersee-Zentrum), the Executive Board of HHLA is elaborating its earnings forecast for the Group in 2016.

While HHLA continues to anticipate container throughput and Group revenue on a par with the previous year, it now expects a moderate increase in container transport (previously: slight increase) compared with the previous year.

An operating result (EBIT) in the range of € 135 million to € 145 million (previously: in the range of € 100 million to € 130 million) is now forecast for the Port Logistics subgroup. 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 between € 150 million and € 160 million (previously: € 115 million to € 145 million). Due to the one-off effect described above, the expected decline in the operating result for the Logistics segment will not be as large as previously forecast.

All other disclosures made in the 2015 Annual Report about the expected course of business in 2016 continue to apply.

Hamburg, 31 October 2016

Hamburger Hafen und Logistik Aktiengesellschaft The Executive Board

Klaus-Dieter Peters

Dr. Stefan Behn

Heinz Brandt Dr. Roland

Lappin

Angela Titzrath

Additional Financial Information

Income Statement

1–9 I 2016 1–9 I 2016 1–9 I 2016 1–9 I 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, in € 0.84 0.77 2.61
Earnings per share, diluted, in € 0.84 0.77 2.61
1–9 I 2016 1–9 I 2016 1–9 I 2016 1–9 I 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
Differences from currency translation - 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

1–9 I 2015 1–9 I 2015 1–9 I 2015 1–9 I 2015
in € thousand Group Port Logistics Real Estate Consolidation
Revenue 868,902 845,634 27,483 - 4,215
Changes in inventories 382 383 - 1 0
Own work capitalised 7,519 7,297 0 222
Other operating income 27,535 23,166 5,019 - 650
Cost of materials - 274,485 - 268,967 - 5,596 78
Personnel expenses - 307,278 - 305,493 - 1,785 0
Other operating expenses - 108,136 - 103,988 - 8,713 4,565
Earnings before interest, taxes, depreciation and amortisation
(EBITDA) 214,439 198,032 16,407 0
Depreciation and amortisation - 90,537 - 87,018 - 3,755 236
Earnings before interest and taxes (EBIT) 123,902 111,014 12,652 236
Earnings from associates accounted for using the equity method 3,250 3,250 0 0
Interest income 14,821 14,878 35 - 92
Interest expenses - 40,914 - 37,436 - 3,570 92
Other financial result 944 944 0 0
Financial result - 21,899 - 18,364 - 3,535 0
Earnings before tax (EBT) 102,003 92,650 9,117 236
Income tax - 24,605 - 21,824 - 2,724 - 57
Profit after tax 77,398 70,826 6,393 179
of which attributable to non-controlling interests 21,508 21,508 0
of which attributable to shareholders of the parent company 55,890 49,318 6,572
Earnings per share, basic, in € 0.77 0.70 2.43
Earnings per share, diluted, in € 0.77 0.70 2.43
1–9 I 2015 1–9 I 2015 1–9 I 2015 1–9 I 2015
in € thousand Group Port Logistics Real Estate Consolidation
Profit after tax 77,398 70,826 6,393 179
Components, which can not be transferred to the Income
Statement
Actuarial gains/losses 13,737 13,669 68
Deferred taxes - 4,435 - 4,413 - 22
Total 9,302 9,256 46
Components, which can be transferred to the Income
Statement
Cash flow hedges 257 257 0
Differences from currency translation - 8,506 - 8,506 0
Deferred taxes - 63 - 63 0
Other - 57 - 57 0
Total - 8,369 - 8,369 0
Income and expense recognised directly in equity 933 887 46 0
Total Comprehensive Income 78,331 71,713 6,439 179
of which attributable to non-controlling interests 21,394 21,394 0
of which attributable to shareholders of the parent company 56,937 50,319 6,618

Income Statement

7–9 I 2016 7–9 I 2016 7–9 I 2016 7–9 I 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, in € 0.49 0.47 0.93
Earnings per share, diluted, in € 0.49 0.47 0.93
7–9 I 2016 7–9 I 2016 7–9 I 2016 7–9 I 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
Differences from currency translation - 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

Income Statement

7–9 I 2015 7–9 I 2015 7–9 I 2015 7–9 I 2015
in € thousand Group Port Logistics Real Estate Consolidation
Revenue 283,761 275,829 9,450 - 1,518
Changes in inventories 1,086 1,088 - 2 0
Own work capitalised 2,292 2,227 0 65
Other operating income 8,938 7,073 2,092 - 227
Cost of materials - 91,264 - 89,251 - 2,041 28
Personnel expenses - 97,077 - 96,462 - 615 0
Other operating expenses - 36,192 - 34,543 - 3,301 1,652
Earnings before interest, taxes, depreciation and amortisation
(EBITDA) 71,544 65,961 5,583 0
Depreciation and amortisation - 30,281 - 29,094 - 1,266 79
Earnings before interest and taxes (EBIT) 41,263 36,867 4,317 79
Earnings from associates accounted for using the equity method 649 649 0 0
Interest income 1,069 1,085 14 - 30
Interest expenses - 7,937 - 6,784 - 1,183 30
Other financial result 0 0 0 0
Financial result - 6,219 - 5,050 - 1,169 0
Earnings before tax (EBT) 35,044 31,817 3,148 79
Income tax - 7,823 - 6,938 - 866 - 19
Profit after tax 27,221 24,879 2,282 60
of which attributable to non-controlling interests 8,809 8,809 0
of which attributable to shareholders of the parent company 18,412 16,070 2,342
Earnings per share, basic, in € 0.25 0.23 0.87
Earnings per share, diluted, in € 0.25 0.23 0.87
7–9 I 2015 7–9 I 2015 7–9 I 2015 7–9 I 2015
in € thousand Group Port Logistics Real Estate Consolidation
Profit after tax 27,221 24,879 2,282 60
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 54 54 0
Differences from currency translation - 970 - 970 0
Deferred taxes 26 26 0
Other - 128 - 128 0
Total - 1,018 - 1,018 0
Income and expense recognised directly in equity - 1,018 - 1,018 0 0
Total Comprehensive Income 26,203 23,861 2,282 60
of which attributable to non-controlling interests 8,782 8,782 0
of which attributable to shareholders of the parent company 17,421 15,079 2,342

Balance Sheet

30.09.2016 30.09.2016 30.09.2016 30.09.2016
in € thousand Group Port Logistics Real Estate Consolidation
ASSETS
Intangible assets 74,737 74,708 29 0
Property, plant and equipment 974,948 955,735 4,525 14,688
Investment property 184,770 35,496 176,245 - 26,971
Associates accounted for using the equity method 15,909 15,909 0 0
Financial assets 20,060 16,092 3,968 0
Deferred taxes 87,522 94,481 0 - 6,959
Non-current assets 1,357,946 1,192,421 184,767 - 19,242
Inventories 23,032 22,980 52 0
Trade receivables 153,948 153,050 898 0
Receivables from related parties 97,881 94,003 5,831 - 1,953
Other financial receivables 2,016 1,913 103 0
Other assets 26,663 25,051 1,612 0
Income tax receivables 3,027 4,093 0 - 1,066
Cash, cash equivalents and short-term deposits 155,878 154,452 1,426 0
Current assets 462,445 455,542 9,922 - 3,019
Balance sheet total 1,820,391 1,647,963 194,689 - 22,261
EQUITY AND LIABILITIES
Subscribed capital 72,753 70,048 2,705 0
Capital reserve 141,584 141,078 506 0
Retained earnings 423,226 386,314 46,144 - 9,232
Other comprehensive income - 135,526 - 134,975 - 551 0
Non-controlling interests 42,764 42,764 0 0
Equity 544,801 505,229 48,804 - 9,232
Pension provisions 500,419 492,877 7,542 0
Other non-current provisions 77,362 75,076 2,286 0
Non-current liabilities to related parties 106,023 106,023 0 0
Non-current financial liabilities 351,802 241,516 110,286 0
Deferred taxes 18,929 15,816 13,123 - 10,010
Non-current liabilities 1,054,535 931,308 133,237 - 10,010
Other current provisions 26,147 26,083 64 0
Trade liabilities 83,499 81,590 1,909 0
Current liabilities to related parties 6,500 6,010 2,443 - 1,953
Current financial liabilities 74,755 68,524 6,231 0
Other liabilities 24,449 23,514 935 0
Income tax liabilities 5,705 5,705 1,066 - 1,066
Current liabilities 221,055 211,426 12,648 - 3,019
Balance sheet total 1,820,391 1,647,963 194,689 - 22,261

Balance Sheet

31.12.2015 31.12.2015 31.12.2015 31.12.2015
in € thousand Group Port Logistics Real Estate Consolidation
ASSETS
Intangible assets 73,851 73,842 9 0
Property, plant and equipment 947,063 927,455 4,535 15,073
Investment property 190,603 39,448 178,754 - 27,599
Associates accounted for using the equity method 12,474 12,474 0 0
Financial assets 20,439 16,856 3,583 0
Deferred taxes 61,396 68,600 0 - 7,204
Non-current assets 1,305,826 1,138,675 186,881 - 19,730
Inventories 22,583 22,544 39 0
Trade receivables 128,130 127,102 1,028 0
Receivables from related parties 58,515 54,834 4,403 - 722
Other financial receivables 3,286 3,060 226 0
Other assets 28,815 27,425 1,390 0
Income tax receivables 8,644 8,584 424 - 364
Cash, cash equivalents and short-term deposits 194,565 194,212 353 0
Current assets 444,538 437,761 7,863 - 1,086
Balance sheet total 1,750,364 1,576,436 194,744 - 20,816
EQUITY AND LIABILITIES
Subscribed capital 72,753 70,048 2,705 0
Capital reserve 141,584 141,078 506 0
Retained earnings 413,097 378,519 43,993 - 9,415
Other comprehensive income - 77,581 - 77,890 309 0
Non-controlling interests 30,707 30,707 0 0
Equity 580,560 542,462 47,513 - 9,415
Pension provisions 415,608 409,209 6,399 0
Other non-current provisions 66,894 64,860 2,034 0
Non-current liabilities to related parties 106,304 106,304 0 0
Non-current financial liabilities 371,417 257,532 113,885 0
Deferred taxes 18,946 16,459 12,802 - 10,315
Non-current liabilities 979,169 854,364 135,120 - 10,315
Other current provisions 11,308 11,188 120 0
Trade liabilities 52,007 49,118 2,889 0
6,792 1,059
Current liabilities to related parties 7,129 - 722
Current financial liabilities 92,045 85,954 6,091 0
Other liabilities 22,843 21,950 893 0
Income tax liabilities 5,303 4,608 1,059 - 364
Current liabilities 190,635 179,610 12,111 - 1,086
Balance sheet total 1,750,364 1,576,436 194,744 - 20,816

Cash Flow Statement

1–9 I 2016 1–9 I 2016 1–9 I 2016 1–9 I 2016
in € thousand Group Port Logistics Real Estate 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
Earnings (-), losses (+) arising 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
Proceeds from disposals of non-current financial assets 0 0 0
Payments for investments in non-current financial assets - 9 - 9 0
Proceeds (+) from/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 acquiring interests in 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 - 36,080 - 32,480 - 3,600
Exchange rate effects - 577 - 577 0
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

Cash Flow Statement

1–9 I 2015 1–9 I 2015 1–9 I 2015 1–9 I 2015
in € thousand Group Port Logistics Real Estate Consolidation
1. Cash flow from operating activities
Earnings before interest and taxes (EBIT) 123,902 111,014 12,652 236
Depreciation, amortisation, impairment and reversals on non
financial non-current assets 89,329 85,810 3,755 - 236
Increase (+), decrease (-) in provisions - 12,964 - 12,692 - 272
Earnings (-), losses (+) arising from the disposal of non-current
assets - 1,485 - 1,475 - 10
Increase (-), decrease (+) in inventories, trade receivables and
other assets not attributable to investing or financing activities
- 16,968 - 14,417 - 2,917 366
Increase (+), decrease (-) in trade payables and other liabilities not
attributable to investing or financing activities 13,032 16,974 - 3,576 - 366
Interest received 2,655 2,712 35 - 92
Interest paid - 15,056 - 11,698 - 3,450 92
Income tax paid - 36,453 - 35,339 - 1,114
Exchange rate and other effects - 6,160 - 6,160 0
Cash flow from operating activities 139,832 134,729 5,103 0
2. Cash flow from investing activities
Proceeds from disposal of intangible assets, property,
plant and equipment and investment property
8,992 4,949 4,043
Payments for investments in property, plant and equipment and
investment property
- 109,173 - 104,430 - 4,743
Payments for investments in intangible assets - 6,877 - 6,875 - 2
Proceeds from disposals of non-current financial assets 100 100 0
Payments for investments in non-current financial assets - 1,686 - 1,686 0
Proceeds (+) from/Payments (-) for short-term deposits 20,000 20,000 0
Cash flow from investing activities - 88,644 - 87,942 - 702 0
3. Cash flow from financing activities
Payments for acquiring interests in consolidated companies 0 0 0
Dividends paid to shareholders of the parent company - 40,482 - 36,425 - 4,057
Dividends/settlement obligation paid to non-controlling interests - 30,339 - 30,339 0
Redemption of lease liabilities - 4,530 - 4,530 0
Proceeds from the issuance of bonds and (financial) loans 120,987 45,987 75,000
Payments for the redemption of (financial) loans - 119,542 - 50,942 - 68,600
Exchange rate effects 2,093 2,093 0
Cash flow from financing activities - 71,813 - 74,156 2,343 0
4. Financial funds at the end of the period
Change in financial funds (subtotals 1.–3.) - 20,625 - 27,369 6,744 0
Change in financial funds due to exchange rates - 1,964 - 1,964 0
Change in financial funds due to consolidation 0 0 0
Financial funds at the beginning of the period 185,617 190,896 - 5,279
Financial funds at the end of the period 163,028 161,563 1,465 0

Financial Calendar

Imprint

30 March 2017

Annual Report 2016 Press Conference, Analyst Conference

15 May 2017

Interim Statement January–March 2017 Analyst Conference Call

21 June 2017

Annual General Meeting

10 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 10 November 2016. http://report.hhla.de/interim-statement-q3-2016

The 2015 Annual Report is available online at: http://report.hhla.de/annual-report-2015

This Interim Statement, including its supplemental financial information, has to be read in conjunction with the 2015 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 2015 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.

HAMBURGER HAFEN UND LOGISTIK AKTIENGESELLSCHAFT Bei St. Annen 1, 20457 Hamburg, Germany Telephone: +49 40 3088-0, fax: +49 40 3088-3355, www.hhla.de, [email protected]

Talk to a Data Expert

Have a question? We'll get back to you promptly.