Hamburger Hafen und Logistik AG

Interim / Quarterly Report • Aug 11, 2016

HALF-YEAR FINANCIAL REPORT

HAMBURGER HAFEN UND LOGISTIK AG 2016 JANUARY TO JUNE

HHLA Key Figures

	HHLA Group
in € million	1–6 2016	1–6 2015	Change
Revenue and earnings
Revenue	573.5	585.1	- 2.0 %
EBITDA	125.8	142.9	- 12.0 %
EBITDA margin in %	21.9	24.4	- 2.5 pp
EBIT	66.9	82.6	- 19.1 %
EBIT margin %	11.7	14.1	- 2.4 pp
Profit after tax	40.8	50.2	- 18.8 %
Profit after tax and minority interests	25.8	37.5	- 31.1 %
Cash flow statement and investments
Cash flow from operating activities	112.5	97.8	15.1 %
Investments	67.2	64.0	5.0 %
Performance data
Container throughput in thousand TEU	3,209	3,404	- 5.7 %
Container transport in thousand TEU	694	654	6.2 %
in € million	30.06.2016	31.12.2015	Change
Balance sheet
Balance sheet total	1,761.6	1,750.4	0.6 %
Equity	510.0	580.6	- 12.1 %
Equity ratio in %	29.0	33.2	- 4.2 pp
Employees
Number of employees	5,421	5,345	1.4 %

		Port Logistics Subgroup1, 2			Real Estate Subgroup1, 3
in € million	1–6 2016	1–6 2015	Change	1–6 2016	1–6 2015	Change
Revenue	557.8	569.8	- 2.1 %	18.7	18.0	3.8 %
EBITDA	115.3	132.1	- 12.7 %	10.5	10.8	- 3.1 %
EBITDA margin in %	20.7	23.2	- 2.5 pp	56.0	60.0	- 4.0 pp
EBIT	58.8	74.1	- 20.7 %	7.9	8.3	- 4.8 %
EBIT margin in %	10.5	13.0	- 2.5 pp	42.4	46.2	- 3.8 pp
Profit after tax and minority interests	21.3	33.2	- 36.0 %	4.5	4.2	7.2 %
Earnings per share in €4	0.30	0.47	- 36.0 %	1.68	1.56	7.2 %

¹ Before consolidation between subgroups

2 Listed Class A shares

3 Non-listed Class S shares

4 Basic and diluted

Contents

To our Shareholdes

HHLA Share Letter to the Shareholders

Interim Management Report

4	Economic Environment
5	Course of Business and Economic Situation
5	Notes on the Reporting
5	Earnings Position
6	Financial Position
8	Segment Performance
8	Container
8	Intermodal
9	Logistics
9	Real Estate
10	Employees
10	Events after the Balance Sheet Date
10	Business Forecast
10	Risk and Opportunity Report

Interim Financial Statement

• Income Statement / Statement of Comprehensive Income
• Balance Sheet
• Cash Flow Statement
• Segment Report
• Statement of Changes in Equity
• Notes
• Responsibility Statement
• Review Report
• Financial Calendar / Imprint

To our Shareholders

The HHLA Share

Stock Market Data

30.12.2015 – 30.06.2016	HHLA	SDAX	DAX
Change	- 4.4 %	- 3.5 %	- 9.9 %
Closing 30.12.2015	14.06	9,099	10,743
Closing 30.06.2016	13.45	8,782	9,680
High	15.35	9,483	10,743
Low	11.95	7,579	8,753

Benchmark Indices Impacted by Chinese Slowdown and Brexit

The German benchmark indices started 2016 with heavy losses on the back of weaker economic growth in China and the freefall in oil prices. After briefly firming in late January, the DAX even fell below the 9,000‑point mark at times in mid-February. The prospect of a further easing of monetary policy by the European Central Bank (ECB) relieved market tension to some extent in the second half of the month. From March onwards, optimistic economic data from the USA and a weaker euro also to contributed to this more stable trend. Nevertheless, the volatile oil price repeatedly led to isolated outliers in both directions. In the second half of May, the DAX established itself above the 10,000-point mark. Growing market uncertainty surrounding the UK's potential exit from the European Union ("Brexit") halted the upward trend in mid-June. After a short period of recovery, the DAX fell by over 1,000 points in a single day following the referendum result in favour of Brexit. The DAX closed the second quarter at 9,680 points, down 9.9 % on the year-end 2015 figure. The SDAX was hit less hard and closed at 8,782 points on 30 June, a decrease of just 3.5 % in the reporting period.

HHLA Share Down in Declining Market

After firming at around € 14 in late 2015, the HHLA share fell sharply at the beginning of the year in a declining market environment, dropping below € 13 in mid-January. Following publication of the preliminary figures in early February, the share bucked the downward trend to gain 3 % and pass the € 14 mark again for the first time in the current year. However, the HHLA share was unable to escape the negative market sentiment and fell to a year-low so far of € 11.95 in mid-February. It recovered slightly towards the end of the month and fluctuated strongly between € 13 and € 14 until the annual figures for 2015 were published at the end of March. As the results for 2015 and the forecast for the 2016 financial year were in line with market expectations, there was no noticeable impact on the share price. The share price remained stable at just over € 13.50 in April. The first-quarter results were published on 12 May. The market responded positively to the company's performance so far and lifted the HHLA share above the € 14 mark once again. Over the course of the month, the share even outperformed the market and recorded a year-high to date of € 15.35 on 30 May. HHLA's Annual General Meeting was held on 16 June 2016 and attended by around 850 shareholders and guests. 84 % of share capital was represented. The resolutions proposed by the Supervisory Board and Executive Board were adopted with large majorities, including the proposal to pay a dividend in line with earnings of € 0.59 (previous year: € 0.52) per listed Class A share. Once the dividend was paid on the following day, the share traded at a corresponding discount. In the second half of June, the HHLA share also began to feel the effects of the strained market environment. It dropped below the € 14 mark and closed at € 13.45 on 30 June, down 4.4 % compared to year-end 2015.

Dialogue with Capital Market Actively Maintained

The Investor Relations department continued its proactive communication activities in the first half of 2016 and held a large number of discussions with analysts and investors. HHLA was also represented at a number of conferences in Europe and the USA. Discussions focussed on the current status of dredging the river Elbe, as well as the formation of and changes in shipping consortia and their consequences for the Port of Hamburg. Interest in the Intermodal segment was also noticeably higher.

The number of financial analysts covering the HHLA share fell by three to 18, whereby this is still a large number for an SDAX share. Three quarters of these analysts recommended buying or holding the HHLA share.

Share Price Development January to June 2016 Closing prices in %

Source: Datastream

The latest prices and more detailed information on the HHLA share can be found on at www.hhla.de/en/investor-relations

Ladies and Gentlemen,

Hamburger Hafen und Logistik AG (HHLA) continued its stable development in line with expectations in the first half of 2016. Despite persistently challenging conditions with surplus capacity and increasingly fierce competition in our market environment, our key figures at Group level are thoroughly sound and demonstrate that we are able to successfully compete even in difficult times due to our diversification strategy.

Our revenue in the first half of 2016 was only slightly below the prior-year figure. Excluding the one-off restructuring expense already announced in our 2015 Annual Report, the operating result (EBIT) was almost on a par with the previous year at just under € 82 million. The one-off expense of € 14.9 million for the planned restructuring of project and contract logistics has already been recognised in full in the half-yearly figures. As a result, we closed the reporting period with an operating result of just under € 67 million.

Developments at Group level demonstrate that we have halted the downward trend from the previous year and that our key figures are moving towards the 2015 level. We are therefore upholding our forecast for the 2016 financial year announced on 30 March and expect revenue on a par with the previous year and an operating result in the range of € 115 million and € 145 million. These figures take into account the one-off restructuring expense as well as risks that may arise as a result of the current challenging market environment.

Our Intermodal segment continued its success story. Despite divergent trends at individual companies, we once again raised transport volumes in a highly competitive market by a good 6 percent to 694 thousand standard containers (TEU). Volumes slightly outpaced revenue growth. However, there was further strong growth in segment earnings (EBIT) of more than 25 percent on the prior-year period. Of particular importance here is the increasing use of our own locomotives and wagons, some of which were only delivered in the previous year and gradually put into operation. This encouraging trend was largely driven by HHLA's rail subsidiary Metrans, which gained market share and continued to generate dynamic growth due to its outstanding product quality and high level of flexibility. Routes to the Adriatic ports in particular and the north German seaports recorded above-average growth over the past six months.

In view of persistently weak growth momentum in global trade and international container throughput, and given the unchanged infrastructure deficiencies of the Port of Hamburg, container handling volumes at our terminals remained modest. In particular, slower economic growth in China and lower feeder volumes for the Baltic Sea ports continued to have a negative impact on our business. Container throughput fell by almost 6 percent year on year to 3.2 million TEU. In the first quarter of 2016, volumes were down almost 8 percent on the figure for the first quarter of 2015. In other words, container throughput volumes are now heading towards the level seen in the 2015 financial year.

Our key figures at Group level demonstrate that we are able to successfully compete even in difficult times thanks to our diversification strategy.

Revenue in the Container segment declined by just over 4 percent, while the operating result developed roughly in line with volumes. Nevertheless, we must make further adjustments to our fixed costs in order to bring them in line with current subdued volume levels.

The Ukrainian economy appears to be slowly finding its way out of the crisis. This trend prompted encouraging growth for our Container Terminal Odessa. In the past six months, container throughput in Odessa rose by almost 6 percent year on year.

The modest trend in the Container segment was again cushioned by dynamic growth in the Intermodal segment, with the latter making an increasingly important contribution to Group earnings. This success of our diversification strategy is proving to be a stabilising factor for the Group, especially in light of persistently weak growth momentum in global container throughput. As a result, we believe that we are well positioned to meet our targets over the rest of the year as a leading European port and transport logistics company.

Yours,

Klaus-Dieter Peters Chairman of the Executive Board

Interim Management Report

Economic Environment

Macroeconomic Development

After a weak winter half-year, the global economy gathered slight momentum in the spring. Although the economic recovery in the first quarter was slightly slower than in late 2015 with growth of 0.6 %, favourable economic data (e.g. slightly higher prices for certain commodities) signalled an upturn in the global economy for the second quarter. Global trade slowed considerably at the beginning of the year on the back of weak global economic growth.

The recovery in the advanced economies continued at a moderate pace, albeit with varying trends in individual countries. The US economy, for example, grew more slowly than expected in the first quarter. However, positive retail indicators heralded stronger GDP growth in the second quarter. Firstquarter economic growth in the emerging markets was still at a low level and fragile, but exceeded expectations in some countries. The signs for the second quarter also pointed to an easing of the downwards trend.

Although the Chinese economy is still transitioning into a more service-driven economy with stronger domestic demand, it achieved growth of 6.7 % in both the first and second quarter of 2016. Improved consumer and business confidence, as well as the higher oil price, helped to stabilise the situation in Russia (Q4 2015: - 3.8 %; Q1 2016: - 1.2 %). The Ukrainian economy also appears to be slowly finding its way out of the crisis: according to government statistics, it grew by 0.1 % in the first quarter of 2016 compared with the previous year. The upswing in the eurozone continued in the first half of 2016. Despite increased uncertainty in the run-up to the UK referendum on whether to leave the EU ("Brexit"), the economy expanded by 1.6 % in the second quarter of 2016. Outside the eurozone, Central and Eastern European countries in particular recorded sound economic growth, although some saw growth rates slow. Irrespective of the fragile international environment, the German economy remains in good shape and is on a stable growth trajectory. The economic barometer issued by the German Institute for Economic Research (DIW) indicates quarter-on-quarter GDP growth of 0.3 % for the second quarter of 2016. In the first five months of the year, exports rose by 1.5 % year on year and imports by 0.2 %.

Sector Development

After a difficult year in 2015, global container traffic made an extremely weak start to 2016. Container throughput at global ports grew by 0.5 % year on year in the first quarter – significantly below the already modest 1.4 % forecast made by market research institute Drewry at the beginning of the year. Given the current figures, experts estimate an increase in traffic of 2.3 % in the second quarter.

Following flat throughput in the first quarter, the Chinese ports gathered momentum in the second quarter with total growth of 3.2 %. The trend at Southeast Asian ports, however, was much more modest. The container port of Singapore in particular suffered a decline of around 5 % in the first half of 2016. The expected upturn for the north-western European ports failed to materialise in the first three months (Q1 2016: - 0.2 %). Nevertheless, Drewry forecasts an increase of 2.0 % for the second quarter. Following a period of recovery in the first quarter, container throughput in Scandinavia and the Baltic Sea fell again in the second quarter (Q1 2016: 0.3 %; Q2 2016: - 1.8 %). Container throughput at Russia's Baltic Sea ports began to recover slightly. After a collapse in volumes in the previous year, container volumes here rose by 2.8 % year on year in the first five months of 2016.

Developments at the large container ports of the North Range and the port of Gdansk were again mixed. Rotterdam posted a 2.3 % decline in containers handled to 6.1 million TEU. Antwerp reported approximately 5.0 million TEU in the first half of 2016 (+ 4.4 %). The Bremen ports recorded 2.8 million TEU in the first six months of 2016, up 3.9 % on the previous year. Growth at the JadeWeserPort was driven by increased integration into the route network of the 2M alliance, which helped double throughput to 131 thousand TEU in the first quarter of 2016. In the first six months of the year, the Polish Baltic Sea port of Gdansk was able to compensate for the reduction in cargo caused by the Russian crisis in 2015. Container throughput increased by 27.3 % compared with the prior-year period and even exceeded the record half-yearly figure from 2014 by 3.8 %.

Against the backdrop of a challenging market environment, the end of 2015 saw a new wave of consolidation among container shipping companies, which has continued in 2016. All existing container shipping alliances are in a state of upheaval following the merger of the two Chinese stateowned shipping companies Cosco and CSCL, as well as the acquisition of NOL by CMA CGM. Hapag-Lloyd and UASC also recently announced their plans to merge.

Rail freight traffic in Germany recorded robust growth in the year to date. Compared with the previous year, transport volumes rose by 1.9 % in the period from January to April.

At the same time, traffic performance – transport volume multiplied by the distance travelled – increased by 4.6 %. At a European level, rail freight traffic decreased in the first quarter of 2016. While transport volumes declined by a total of 3.6 % across Europe as a whole, Central and Eastern Europe recorded a much stronger decrease of 5.3 %. However, trends in the individual markets were very mixed. Transport volumes in Poland and Hungary fell by 2.4 % and 1.4 %, respectively, compared with the first quarter of 2015, while rail cargo in the Czech Republic rose by 1.4 %. The decrease in traffic performance across Europe was less pronounced than the decline in transport volumes. The situation in Central and Eastern Europe was similar.

Course of Business and Economic Situation

Key Figures

in € million	1–6 2016	1–6 2015 Change
Revenue	573.5	585.1	- 2.0 %
EBITDA	125.8		142.9 - 12.0 %
EBITDA margin in %	21.9		24.4 - 2.5 pp
EBIT	66.9		82.6 - 19.1 %
EBIT margin in %	11.7		14.1 - 2.4 pp
Profit after tax and minority
interests	25.8		37.5 - 31.1 %
ROCE in %	10.1		12.8 - 2.7 pp

Notes on the Reporting

The Group's financial position and performance in the reporting period was negatively impacted by one-off expenses incurred in connection with the planned restructuring of the Logistics segment. A reduction in the interest rate used to calculate pension obligations led to a significant increase in pension provisions and a corresponding decline in equity. In addition, HHLA continues to be affected by exchange rate-related changes.

There were no further effects that had a material impact on the HHLA Group's revenue or earnings.

There is normally no long-term order backlog for handling and transport services, and thus no use is made of this particular reporting figure.

Earnings Position

The economic development of HHLA in the first half of 2016 was in line with expectations. HHLA saw a decline in container throughput of 5.7 % to 3,209 thousand TEU in the first half of the year (previous year: 3,404 thousand TEU). This was due to a further drop in traffic to and from Asia and feeder volumes for the Baltic Sea ports.

Transport volumes increased significantly by 6.2 % to 694 thousand TEU (previous year: 654 thousand TEU). Routes to the north German seaports and the Adriatic ports recorded particularly strong growth.

Revenue for the HHLA Group amounted to € 573.5 million in the reporting period and was thus down 2.0 % on the prior-year figure (€ 585.1 million). The volume-related decrease in revenue in the Container segment, as well as lower revenue in the Logistics segment, was only partially offset by revenue growth in the Intermodal segment.

In its Container, Intermodal and Logistics segments, the listed Port Logistics subgroup generated revenue of € 557.8 million in the reporting period (previous year: € 569.8 million). This decrease almost matched the trend for the Group as a whole. The non-listed Real Estate subgroup increased revenue by 3.8 % to € 18.7 million (previous year: € 18.0 million) and contributed 2.7 % to Group revenue.

As in the previous year, changes in inventories of € 0.9 million did not have any noticeable influence on consolidated profit (previous year: € - 0.7 million). Own work capitalised amounted to € 3.5 million (previous year: € 5.2 million).

The decrease in other operating income to € 16.1 million (previous year: € 18.6 million) was mainly due to a provision for legal risks, which was partially reversed through profit or loss in the previous year.

Despite the divergent development of individual items, operating expenses as a whole increased slightly by 0.3 % to € 527.1 million. Without one-off expenses in the Logistics segment, operating expenses would have fallen by 2.5 %.

The cost of materials declined by 8.0 % in the reporting period to € 168.6 million (previous year: € 183.2 million). In absolute terms, the decrease was largely due to lower revenue in the Container and Logistics segments. By contrast, the decline in the cost of materials ratio to 29.4 % (previous year: 31.3 %) was primarily attributable to cost structure changes from the expansion of the company's own traction in the Intermodal segment.

Personnel expenses increased significantly year on year by 6.6 % to € 224.0 million (previous year: € 210.2 million). The increase mainly relates to one-off expenses for project and contract logistics. Adjusted for this item, personnel expenses were virtually unchanged compared to the previous year. The personnel expense ratio rose to 39.1 % (previous year: 35.9 %) This rise was mainly the result of one-off expenses.

Other operating expenses rose by 5.1 % in the reporting period to € 75.6 million (previous year: € 71.9 million). The increase was again attributable to greater use of the company's own traction fleet for intermodal services. At 13.2 %, the ratio of expenses to revenue was up on the previous year (12.3 %).

The strong decline in the operating result before depreciation and amortisation (EBITDA) of 12.0 % to € 125.8 million (previous year: € 142.9 million), largely due to one-off expenses for project and contract logistics. The EBITDA margin declined to 21.9 % in the reporting period (previous year: 24.4 %). Without the one-off expenses of € 14.9 million, the EBITDA margin would be on a par with the previous year at 24.5 %.

Depreciation and amortisation was down slightly by 2.2 % to € 58.9 million (previous year: € 60.3 million). Its ratio to revenue was unchanged at 10.3 %.

At Group level, the operating result (EBIT) declined by 19.1 % to € 66.9 million (previous year: € 82.6 million). The EBIT margin decreased to 11.7 % (previous year: 14.1 %). Without the one-off expenses, the EBIT margin would have increased slightly to 14.3 %. The Port Logistics and Real Estate subgroups contributed 87.9 % and 12.1 % to EBIT, respectively.

Net expenses from the financial result fell by € 5.3 million to € 10.4 million (previous year: € 15.7 million), mainly due to an improved interest result. The financial result includes negative exchange rate effects of € 1.2 million (previous year: € 5.3 million) due mainly to the devaluation of the Ukrainian currency.

At 27.9 %, the Group's effective tax rate was higher than in the previous year (25.1 %). This is primarily due to a one-off tax expense for prior years in the Port Logistics subgroup.

Profit after tax decreased by 18.8 %, from € 50.2 million to € 40.8 million. There was a disproportionately strong year-onyear decline in profit after tax and minority interests of 31.1 % to € 25.8 million (€ 37.5 million) due to one-off expenses in the Logistics segment, which were charged to subsidiaries fully owned by HHLA. At € 0.35, earnings per share were also down 31.1 % on the prior-year figure of € 0.52. The listed Port Logistics subgroup reported a 36.0 % decrease in earnings per share to € 0.30 (previous year: € 0.47). Earnings per share of the nonlisted Real Estate subgroup improved by 7.2 % to € 1.68 (previous year: €1.56). The return on capital employed (ROCE) declined by 2.7 percentage points to 10.1 % (previous year: 12.8 %). Without the one-off expenses, ROCE would have been 0.5 percentage points lower than in the previous year at 12.3 %.

Financial Position

Balance Sheet Analysis

Compared with year-end 2015, the HHLA Group's balance sheet total increased slightly as of the reporting date to € 1,761.6 million.

Balance Sheet Structure

in € million	30.06.2016	31.12.2015
Assets
Non-current assets	1,349.7	1,305.8
Current assets	411.9	444.6
	1,761.6	1,750.4
Equity and liabilities
Equity	510.0	580.6
Non-current liabilities	1,056.0	979.2
Current liabilities	195.6	190.6
	1,761.6	1,750.4

At € 1,349.7 million, non-current assets were up € 43.9 million on the prior-year figure (31 December 2015: € 1,305.8 million). This was largely attributable to the higher balance sheet entry for deferred tax assets due to interest raterelated changes in pension provisions and investments in property, plant and equipment during the reporting period. Depreciation of property, plant and equipment and investment properties in particular had an opposing effect.

At € 411.9 million as of 30 June 2016, current assets were € 32.7 million below the corresponding figure on 31 December 2015 (€ 444.6 million). This decrease was mainly due to a € 97.3 million reduction in cash and cash equivalents. By contrast, receivables from related parties rose by € 44.5 million in connection with cash clearing, while trade receivables increased by € 21.5 million.

Equity declined by € 70.6 million to € 510.0 million as of the reporting date (31 December 2015: € 580.6 million). The decrease was primarily due to the € 49.8 million change in actuarial gains and losses, netted with deferred taxes, and the dividend distribution of € 46.8 million. Equity was also reduced by the purchase of further shares in METRANS a.s. The result for the period under review of € 40.8 million had an opposing effect. The equity ratio decreased to 29.0 % (31 December 2015: 33.2 %).

The € 76.8 million increase in non-current liabilities to € 1,056.0 million compared to the year-end figure (31 December 2015: € 979.2 million) is attributable to the € 75.5 million rise in pension provisions, mainly as a result of changes to actuarial parameters, and to an increase in other non-current provisions. The € 12.6 million decrease in non-current financial liabilities had an offsetting effect.

Current liabilities rose by € 5.0 million to € 195.6 million (31 December 2015: € 190.6 million), as a result of the € 10.6 million increase in trade liabilities and the € 10.1 million rise in other current provisions. The figure was reduced by the decline in current financial liabilities of € 14.7 million.

Investment Analysis

Capital expenditure in the reporting period amounted to € 67.2 million, up on the prior-year figure of € 64.0 million. Property, plant and equipment and investment property accounted for € 59.2 million (previous year: € 60.0 million) of capital expenditure, while intangible assets accounted for € 8.0 million (previous year: € 4.0 million). The majority of investments were for expansion work.

A large proportion of the capital expenditure in the first half of 2016 was for the expansion of the block storage facility at the HHLA Container Terminal Burchardkai and the construction of the hinterland terminal in Budapest. Capital expenditure continues to focus on increasing productivity in the existing terminal areas and expanding the high-performance hinterland connections in line with market demands.

Liquidity Analysis

The cash inflow from operating activities (operating cash flow) rose by € 14.7 million to € 112.5 million as of 30 June 2016 (previous year: € 97.8 million). This was mainly due to a net reduction in income tax payments.

Liquidity Analysis

in € million	1–6 2016	1–6 2015
Financial funds as of 01.01.	165.4	185.6
Cash flow from operating activities	112.5	97.8
Cash flow from investing activities	- 45.6	- 17.4
Free cash flow	66.9	80.4
Cash flow from financing activities	- 101.2	- 79.8
Change in financial funds	- 34.2	0.6
Change in financial funds due to exchange rates	- 0.4	- 1.7
Change in financial funds due to consolidation	4.5	0
Financial funds as of 30.06.	135.4	184.5

Investing activities led to cash outflows of € 45.6 million (previous year: € 17.4 million). The € 28.2 million increase was due to a smaller change in short-term deposits. Reduced outflows for investments in property, plant and equipment had an opposing effect.

Free cash flow, which is the total cash flow from operating and investing activities – amounted to € 66.9 million at the end of the reporting period (previous year: € 80.4 million), down € 13.5 million year on year.

The cash outflow from financing activities amounted to € 101.2 million as of 30 June 2016 (previous year: € 79.8 million), an increase of € 21.4 million. In addition to the acquisition of non-controlling 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.

As of the reporting date, the changes described above resulted in financial funds of € 135.4 million (30 June 2015: € 184.5 million), which were thus down on the beginning of the year (31 December 2015: € 165.4 million). Including short-term deposits, the Group's available liquidity as of 30 June 2016 totalled € 192.0 million (30 June 2015: € 224.5 million).

Segment Performance

Container Segment

Key Figures

in € million	1–6 2016	1–6 2015 Change
Revenue	336.6	351.9	- 4.4 %
EBITDA	95.4	100.3	- 4.9 %
EBITDA margin in %	28.4		28.5 - 0.1 pp
EBIT	54.2	57.5	- 5.9 %
EBIT margin in %	16.1		16.3 - 0.2 pp
Container throughput in thousand TEU	3,209	3,404	- 5.7 %

In the first half of 2016, HHLA's container terminals handled a total of 3,209 thousand standard containers (TEU), 5.7 % fewer than in the prior-year period (previous year: 3,404 thousand TEU). The 6.2 % decrease in container throughput at the Hamburg terminals to 3,077 thousand TEU (previous year: 3,279 thousand TEU) was mainly attributable to the ongoing weakness of Asian routes (Far East–Northern Europe). Overall, these were down 9.0 % on the prior-year period. Feeder traffic with the Baltic Sea ports in particular also declined in the reporting period, falling by 8.5 % due to an increase in shipping companies calling directly at ports in the Baltic region. By contrast, feeder traffic to and from Russia saw a slight increase in overall volumes in the first half of 2016, following a significant drop in volumes in the previous year. Container throughput at the Container Terminal Odessa continued to make good progress, rising by 5.9 % from 125 thousand TEU in the previous year to 132 thousand TEU.

Revenue declined in line with volumes, falling by 4.4 % to € 336.6 million (previous year: € 351.9 million). However, the decrease was less pronounced than in the first half of 2015. Average revenue per container handled at the quayside increased, mainly as a result of individual rate adjustments and a slight decrease in the feeder ratio to 22.9 % (previous year: 23.4 %) in Hamburg.

The segment's EBIT costs could not be reduced in proportion to lower seaborne throughput. They declined by just 4.1 % due to the high proportion of fixed costs associated with container throughput. While the cost of materials decreased disproportionately, there was a slight increase in personnel expenses per unit despite the significant reduction in the number of external staff. Due to the current utilisation of facilities and in particular the peak loads associated with mega-ships, personnel expenses could only be adjusted to falling volumes to a limited extent. The operating result (EBIT) declined by 5.9 % to € 54.2 million as a consequence of the volume trend (previous year: € 57.5 million), while EBIT per container handled remained constant at € 16.9. The EBIT margin was also virtually unchanged at 16.1 % (previous year: 16.3 %).

Intermodal Segment

Key Figures

in € million	1–6 2016	1–6 2015 Change
Revenue	190.8	180.8	5.5 %
EBITDA	45.3	38.2	18.6 %
EBITDA margin in %	23.8	21.1	2.7 pp
EBIT	33.7	26.8	25.5 %
EBIT margin in %	17.6	14.8	2.8 pp
Container transport
in thousand TEU	694	654	6.2 %

In the first half of 2016, HHLA's transport companies again generated significant growth in the highly competitive market for container traffic in the hinterland of major seaports. Transport volumes rose by 6.2 % to 694 thousand standard containers (TEU) compared with 654 thousand TEU in the previous year. The trend was driven by growth in rail transportation, which again increased significantly year on year by 8.6 % to 537 thousand TEU (previous year: 494 thousand TEU). In particular, the connections from and to the north German seaports and between the Adriatic ports and Central and Eastern Europe achieved above-average growth. The decline in road transport volumes during the first quarter was recently recovered almost in full to reach 157 thousand TEU for the first six months of 2016 – just short of the prior-year figure (previous year: 160 thousand TEU).

Revenue growth of 5.5 % to € 190.8 million (previous year: € 180.8 million), slightly weaker than that of transport volumes. This was mainly due to changes to the route mix, which resulted in lower average transportation distances.

The operating result (EBIT) rose year on year to € 33.7 million (previous year: € 26.8 million) and significantly outperformed volume and revenue growth. The expansion of the company's own traction fleet since the beginning of 2015 with the acquisition of additional locomotives had a positive effect on productivity rates and led to improved cost structures. Due to the transition period in the first few months of the previous year, this had not yet taken full effect. 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. The performance of individual companies within the segment varied greatly in some cases. Activities in Poland in particular continue to face a very challenging competitive environment.

Logistics Segment

Key Figures

in € million	1–6 2016	1–6 2015	Change
Revenue	27.4		33.1 - 17.4 %
EBITDA	- 14.7	- 0.4	neg.
EBITDA margin in %	- 53.6		- 1.3 - 52.3 pp
EBIT	- 16.7	- 1.1	neg.
EBIT margin in %	- 60.9		- 3.2 - 57.7 pp
At-equity earnings	2.2	2.2	- 1.3 %

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.

The fully consolidated companies of the Logistics segment suffered a decline in revenue during the first half of 2016. At € 27.4 million, segment revenue was down 17.4 % on the prior-year figure (€ 33.1 million) due among other things to the successive scaling back of project and contract logistics activities, this was also due to lower revenue from consulting activities for project-related reasons. The operating result (EBIT) in the second quarter was heavily impacted by one-off expenses of € 14.9 million in connection with the planned restructuring of project and contract logistics, which were thus in line with the amount announced in the 2015 Annual Report. As a result, the Logistics segment reported an operating loss of € 16.7 million in the first half of the year (previous year: operating loss of € 1.1 million). Adjusted for the one-off expenses, EBIT for the Logistics segment was still down on the previous year at € - 1.8 million. This was also attributable to delays in the awarding of consulting contracts.

The performance of those companies included in at-equity earnings varied in the first half of 2016. At € 2.2 million, on a par with the previous year.

Real Estate Segment

Key Figures

in € million	1–6 2016	1–6 2015 Change
Revenue	18.7	18.0	3.8 %
EBITDA	10.5	10.8	- 3.1 %
EBITDA margin in %	56.0		60.0 - 4.0 pp
EBIT	7.9	8.3	- 4.8 %
EBIT margin in %	42.4		46.2 - 3.8 pp

Hamburg's office rental market stabilised in the second quarter of 2016 but once again fell short of the previous year. According to the market overview by Jones Lang LaSalle, 240,000 m² of space was let – some 6 % below the prior-year figure. One of the main reasons for this strong decline was the high proportion of owner-occupied properties in the previous year. According to the current forecast, this negative trend is expected to continue for the rest of the year.

By contrast, Hamburg's vacancy rate at the end of the first six months of 5.9 % was still below the prior-year figure of 6.7 %. The trend forecast of Jones Lang LaSalle expects this development to remain stable over the next few months.

HHLA's properties in the Speicherstadt historical warehouse district and the fish market area maintained their growth trajectory in the second quarter. With virtually full occupancy in both quarters, revenue rose by a further 3.8 % year on year to € 18.7 million in the first six months (previous year: € 18.0 million).

The operating result (EBIT) fell by 4.8 % to € 7.9 million (previous year: € 8.3 million). This was primarily due to higher maintenance expenses for the necessary refurbishment of rental space in the Speicherstadt historical warehouse district. Assuming the occupancy rate remains high, EBIT for the year as a whole is still expected to be on a par with the previous year.

Employees

Employees

by segment	30.06.2016	31.12.2015 Change
Container	2,952	2,957	- 0.2 %
Intermodal	1,554	1,449	7.2 %
Holding/Other	651	668	- 2.5 %
Logistics	228	232	- 1.7 %
Real Estate	36	39	- 7.7 %
HHLA Group	5,421	5,345	1.4 %

At the end of the first half of 2016, HHLA employed a total of 5,421 people. Compared with the figure as of 31 December 2015, the number of employees rose by 76 or 1.4 %. In geographical terms, the workforce was concentrated mainly in Germany, with 3,642 staff members (31 December 2015: 3,656), most of whom are based in Hamburg. This corresponds to a share of 67.2 % (31 December 2015: 68.4 %). The number of staff employed abroad rose by 5.3 % to 1,779 in the first half of 2016 (31 December 2015: 1,689). This is mainly due to the further expansion of the Intermodal companies in the Czech Republic, Slovakia and other Central and Eastern European countries. The Intermodal segment hired a total of 105 new employees and now has a headcount of 1,554. By contrast, headcount in the holding company and the Container, Logistics and Real Estate segments fell slightly by a total of 29 in the first half of 2016.

Events after the Balance Sheet Date

There were no significant events after the balance sheet date of 30 June 2016.

Business Forecast

The economic development of HHLA in the first half of 2016 was in line with expectations. The disclosures made in the 2015 Annual Report regarding the expected course of business in 2016 therefore continue to apply.

The final decision of the Federal Administrative Court on the dredging of the lower and outer stretches of the river Elbe continues to be of key importance to the long-term development of the Port of Hamburg and HHLA. The necessary planning supplement decisions were submitted to the court at the end of the first quarter of 2016. The Federal Administrative Court has scheduled the next hearing for late 2016. It is still not yet known when the decision will be made.

Risk and Opportunity Report

With regard to the HHLA Group's risk and opportunity position, the statements made in the Management Report section of the 2015 Annual Report continue to apply, unless otherwise indicated in this report. This section of the Annual Report describes the risk and opportunity factors associated with the HHLA Group's business activities. The risks identified still do not threaten the ongoing existence of the Group. As far as the future is concerned, there are also no discernible risks at present that could jeopardise the continued existence of the company.

Interim Financial Statements

Income Statement HHLA Group

in € thousand	1–6 2016	1–6 2015	4–6 2016	4–6 2015
Revenue	573,479	585,141	288,698	288,209
Changes in inventories	851	- 704	165	- 718
Own work capitalised	3,517	5,227	1,855	3,098
Other operating income	16,141	18,597	8,045	10,936
Cost of materials	- 168,613	- 183,221	- 85,071	- 89,612
Personnel expenses	- 223,977	- 210,201	- 118,641	- 104,995
Other operating expenses	- 75,605	- 71,944	- 39,689	- 37,152
Earnings before interest, taxes, depreciation and amortisation (EBITDA)	125,793	142,895	55,362	69,766
Depreciation and amortisation	- 58,938	- 60,256	- 29,483	- 30,121
Earnings before interest and taxes (EBIT)	66,855	82,639	25,879	39,645
Earnings from associates accounted for using the equity method	2,583	2,601	1,473	1,461
Interest income	4,183	13,752	2,156	3,617
Interest expenses	- 17,129	- 32,977	- 7,500	- 7,999
Other financial result	- 10	944	- 10	944
Financial result	- 10,373	- 15,680	- 3,881	- 1,977
Earnings before tax (EBT)	56,482	66,959	21,998	37,668
Income tax	- 15,732	- 16,782	- 7,209	- 7,515
Profit after tax	40,750	50,177	14,789	30,153
of which attributable to non-controlling interests	14,944	12,699	7,129	5,226
of which attributable to shareholders of the parent company	25,806	37,478	7,660	24,927
Earnings per share, basic, in €
Group	0.35	0.52	0.10	0.35
Port Logistics Subgroup	0.30	0.47	0.07	0.32
Real Estate Subgroup	1.68	1.56	0.89	0.79
Earnings per share, diluted, in €
Group	0.35	0.52	0.10	0.35
Port Logistics Subgroup	0.30	0.47	0.07	0.32
Real Estate Subgroup	1.68	1.56	0.89	0.79

in € thousand	1–6 2016	1–6 2015	4–6 2016	4–6 2015
Profit after tax	40,750	50,177	14,789	30,153
Components, which can not be transferred to the Income Statement
Actuarial gains/losses	- 73,485	13,737	- 32,209	44,995
Deferred taxes	23,717	- 4,435	10,396	- 14,520
Total	- 49,768	9,302	- 21,813	30,475
Components, which can be transferred to the Income Statement
Cash flow hedges	173	203	120	149
Differences from currency translation	- 1,085	- 7,536	2,419	2,260
Deferred taxes	- 53	- 89	- 46	- 11
Other	- 7	71	21	- 128
Total	- 972	- 7,351	2,514	2,270
Income and expense recognised directly in equity	- 50,740	1,951	- 19,299	32,745
Total Comprehensive Income	- 9,990	52,128	- 4,510	62,897
of which attributable to non-controlling interests	14,394	12,612	6,676	5,195
of which attributable to shareholders of the parent company	- 24,384	39,516	- 11,186	57,702

in € thousand; Port Logistics Subgroup and Real Estate Subgroup; annex to the condensed notes	1–6 2016 Group	1–6 2016 Port Logistics	1–6 2016 Real Estate	1–6 2016 Consolidation
Revenue	573,479	557,795	18,725	- 3,041
Changes in inventories	851	851	0	0
Own work capitalised	3,517	3,322	0	195
Other operating income	16,141	13,793	2,882	- 534
Cost of materials	- 168,613	- 164,968	- 3,711	66
Personnel expenses	- 223,977	- 222,825	- 1,152	0
Other operating expenses	- 75,605	- 72,665	- 6,254	3,314
Earnings before interest, taxes, depreciation and amortisation (EBITDA)	125,793	115,303	10,490	0
Depreciation and amortisation	- 58,938	- 56,541	- 2,559	162
Earnings before interest and taxes (EBIT)	66,855	58,762	7,931	162
Earnings from associates accounted for using the equity method	2,583	2,583	0	0
Interest income	4,183	4,262	25	- 104
Interest expenses	- 17,129	- 15,684	- 1,549	104
Other financial result	- 10	- 10	0	0
Financial result	- 10,373	- 8,849	- 1,524	0
Earnings before tax (EBT)	56,482	49,913	6,407	162
Income tax	- 15,732	- 13,698	- 1,994	- 40
Profit after tax	40,750	36,214	4,414	122
of which attributable to non-controlling interests	14,944	14,944	0
of which attributable to shareholders of the parent company	25,806	21,270	4,536
Earnings per share, basic, in €	0.35	0.30	1.68
Earnings per share, diluted, in €	0.35	0.30	1.68

in € thousand; Port Logistics Subgroup and Real Estate	1–6 2016	1–6 2016	1–6 2016	1–6 2016
Subgroup; annex to the condensed notes	Group	Port Logistics	Real Estate	Consolidation
Profit after tax	40,750	36,214	4,414	122
Components, which can not be transferred to the Income Statement
Actuarial gains/losses	- 73,485	- 72,343	- 1,142
Deferred taxes	23,717	23,348	369
Total	- 49,768	- 48,995	- 773
Components, which can be transferred to the Income Statement
Cash flow hedges	173	173	0
Differences from currency translation	- 1,085	- 1,085	0
Deferred taxes	- 53	- 53	0
Other	- 7	- 7	0
Total	- 972	- 972	0
Income and expense recognised directly in equity	- 50,740	- 49,967	- 773	0
Total Comprehensive Income	- 9,990	- 13,753	3,641	122
of which attributable to non-controlling interests	14,394	14,394	0
of which attributable to shareholders of the parent company	- 24,384	- 28,147	3,763

in € thousand; Port Logistics Subgroup and Real Estate	1–6 2015	1–6 2015	1–6 2015	1–6 2015
Subgroup; annex to the condensed notes	Group	Port Logistics	Real Estate	Consolidation
Revenue	585,141	569,805	18,033	- 2,697
Changes in inventories	- 704	- 705	1	0
Own work capitalised	5,227	5,070	0	157
Other operating income	18,597	16,093	2,927	- 423
Cost of materials	- 183,221	- 179,716	- 3,555	50
Personnel expenses	- 210,201	- 209,031	- 1,170	0
Other operating expenses	- 71,944	- 69,445	- 5,412	2,913
Earnings before interest, taxes, depreciation and amortisation
(EBITDA)	142,895	132,071	10,824	0
Depreciation and amortisation	- 60,256	- 57,924	- 2,489	157
Earnings before interest and taxes (EBIT)	82,639	74,147	8,335	157
Earnings from associates accounted for using the equity method	2,601	2,601	0	0
Interest income	13,752	13,793	21	- 62
Interest expenses	- 32,977	- 30,652	- 2,387	62
Other financial result	944	944	0	0
Financial result	- 15,680	- 13,314	- 2,366	0
Earnings before tax (EBT)	66,959	60,833	5,969	157
Income tax	- 16,782	- 14,886	- 1,858	- 38
Profit after tax	50,177	45,947	4,111	119
of which attributable to non-controlling interests	12,699	12,699	0
of which attributable to shareholders of the parent company	37,478	33,248	4,230
Earnings per share, basic, in €	0.52	0.47	1.56
Earnings per share, diluted, in €	0.52	0.47	1.56

in € thousand; Port Logistics Subgroup and Real Estate	1–6 2015	1–6 2015	1–6 2015	1–6 2015
Subgroup; annex to the condensed notes	Group	Port Logistics	Real Estate	Consolidation
Profit after tax	50,177	45,947	4,111	119
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	203	203	0
Differences from currency translation	- 7,536	- 7,536	0
Deferred taxes	- 89	- 89	0
Other	71	71	0
Total	- 7,351	- 7,351	0
Income and expense recognised directly in equity	1,951	1,905	46	0
Total Comprehensive Income	52,128	47,852	4,157	119
of which attributable to non-controlling interests	12,612	12,612	0
of which attributable to shareholders of the parent company	39,516	35,240	4,276

in € thousand; Port Logistics Subgroup and Real Estate Subgroup; annex to the condensed notes	4–6 2016 Group	4–6 2016 Port Logistics	4–6 2016 Real Estate	4–6 2016 Consolidation
Revenue	288,698	280,714	9,512	- 1,528
Changes in inventories	165	165	0	0
Own work capitalised	1,855	1,760	0	95
Other operating income	8,045	6,910	1,401	- 266
Cost of materials	- 85,071	- 83,262	- 1,847	38
Personnel expenses	- 118,641	- 118,066	- 575	0
Other operating expenses	- 39,689	- 38,303	- 3,047	1,661
Earnings before interest, taxes, depreciation and amortisation (EBITDA)	55,362	49,918	5,444	0
Depreciation and amortisation	- 29,483	- 28,281	- 1,283	81
Earnings before interest and taxes (EBIT)	25,879	21,637	4,161	81
Earnings from associates accounted for using the equity method	1,473	1,473	0	0
Interest income	2,156	2,195	13	- 52
Interest expenses	- 7,500	- 6,781	- 771	52
Other financial result	- 10	- 10	0	0
Financial result	- 3,881	- 3,123	- 758	0
Earnings before tax (EBT)	21,998	18,514	3,403	81
Income tax	- 7,209	- 6,123	- 1,066	- 20
Profit after tax	14,789	12,390	2,338	61
of which attributable to non-controlling interests	7,129	7,129	0
of which attributable to shareholders of the parent company	7,660	5,261	2,399
Earnings per share, basic, in €	0.10	0.07	0.89
Earnings per share, diluted, in €	0.10	0.07	0.89

in € thousand; Port Logistics Subgroup and Real Estate	4–6 2016	4–6 2016	4–6 2016	4–6 2016
Subgroup; annex to the condensed notes	Group	Port Logistics	Real Estate	Consolidation
Profit after tax	14,789	12,390	2,338	61
Components, which can not be transferred to the Income Statement
Actuarial gains/losses	- 32,209	- 31,715	- 494
Deferred taxes	10,396	10,236	160
Total	- 21,813	- 21,479	- 334
Components, which can be transferred to the Income Statement
Cash flow hedges	120	120	0
Differences from currency translation	2,419	2,419	0
Deferred taxes	- 46	- 46	0
Other	21	21	0
Total	2,514	2,514	0
Income and expense recognised directly in equity	- 19,299	- 18,965	- 334	0
Total Comprehensive Income	- 4,510	- 6,575	2,004	61
of which attributable to non-controlling interests	6,676	6,676	0
of which attributable to shareholders of the parent company	- 11,186	- 13,250	2,064

in € thousand; Port Logistics Subgroup and Real Estate	4–6 2015	4–6 2015	4–6 2015	4–6 2015
Subgroup; annex to the condensed notes	Group	Port Logistics	Real Estate	Consolidation
Revenue	288,209	280,173	9,322	- 1,286
Changes in inventories	- 718	- 720	2	0
Own work capitalised	3,098	3,014	0	84
Other operating income	10,936	9,784	1,380	- 228
Cost of materials	- 89,612	- 87,963	- 1,674	25
Personnel expenses	- 104,995	- 104,392	- 603	0
Other operating expenses	- 37,152	- 35,605	- 2,952	1,405
Earnings before interest, taxes, depreciation and amortisation
(EBITDA)	69,766	64,291	5,475	0
Depreciation and amortisation	- 30,121	- 28,953	- 1,246	78
Earnings before interest and taxes (EBIT)	39,645	35,338	4,229	78
Earnings from associates accounted for using the equity method	1,461	1,461	0	0
Interest income	3,617	3,637	11	- 31
Interest expenses	- 7,999	- 6,835	- 1,195	31
Other financial result	944	944	0	0
Financial result	- 1,977	- 793	- 1,184	0
Earnings before tax (EBT)	37,668	34,545	3,045	78
Income tax	- 7,515	- 6,541	- 955	- 19
Profit after tax	30,153	28,004	2,090	59
of which attributable to non-controlling interests	5,226	5,226	0
of which attributable to shareholders of the parent company	24,927	22,778	2,149
Earnings per share, basic, in €	0.35	0.32	0.79
Earnings per share, diluted, in €	0.35	0.32	0.79

in € thousand; Port Logistics Subgroup and Real Estate	4–6 2015	4–6 2015	4–6 2015	4–6 2015
Subgroup; annex to the condensed notes	Group	Port Logistics	Real Estate	Consolidation
Profit after tax	30,153	28,004	2,090	59
Components, which can not be transferred to the Income Statement
Actuarial gains/losses	44,995	44,443	552
Deferred taxes	- 14,520	- 14,342	- 178
Total	30,475	30,101	374
Components, which can be transferred to the Income Statement
Cash flow hedges	149	149	0
Differences from currency translation	2,260	2,260	0
Deferred taxes	- 11	- 11	0
Other	- 128	- 128	0
Total	2,270	2,270	0
Income and expense recognised directly in equity	32,745	32,371	374	0
Total Comprehensive Income	62,897	60,375	2,463	59
of which attributable to non-controlling interests	5,195	5,195	0
of which attributable to shareholders of the parent company	57,702	55,180	2,522

Balance Sheet HHLA Group

in € thousand	30.06.2016	31.12.2015
ASSETS
Intangible assets	76,437	73,851
Property, plant and equipment	967,374	947,063
Investment property	186,905	190,603
Associates accounted for using the equity method	15,332	12,474
Financial assets	19,785	20,439
Deferred taxes	83,903	61,396
Non-current assets	1,349,736	1,305,826
Inventories	22,230	22,583
Trade receivables	149,628	128,130
Receivables from related parties	103,045	58,515
Other financial receivables	1,971	3,286
Other assets	30,514	28,815
Income tax receivables	7,256	8,644
Cash, cash equivalents and short-term deposits	97,237	194,565
Current assets	411,881	444,538
Balance sheet total	1,761,617	1,750,364
EQUITY AND LIABILITIES	72,753
Subscribed capital	70,048	72,753
Port Logistics Subgroup	2,705	70,048
Real Estate Subgroup	141,584	2,705
Capital reserve Port Logistics Subgroup	141,078	141,584 141,078
Real Estate Subgroup	506	506
Retained earnings	388,122	413,097
Port Logistics Subgroup	353,741	378,519
Real Estate Subgroup	34,381	34,578
Other comprehensive income	- 127,771	- 77,581
Port Logistics Subgroup	- 127,307	- 77,890
Real Estate Subgroup	- 464	309
Non-controlling interests	35,342	30,707
Port Logistics Subgroup	35,342	30,707
Real Estate Subgroup	0	0
Equity	510,030	580,560
Pension provisions	491,147	415,608
Other non-current provisions	80,769	66,894
Non-current liabilities to related parties	106,120	106,304
Non-current financial liabilities	358,857	371,417
Deferred taxes	19,117	18,946
Non-current liabilities	1,056,010	979,169
Other current provisions	21,427	11,308
Trade liabilities	62,598	52,007
Current liabilities to related parties	8,228	7,129
Current financial liabilities	77,346	92,045
Other liabilities	21,085	22,843
Income tax liabilities	4,893	5,303
Current liabilities	195,577	190,635
Balance sheet total	1,761,617	1,750,364

Balance Sheet HHLA Subgroups

in € thousand; Port Logistics Subgroup and Real Estate	30.06.2016	30.06.2016	30.06.2016	30.06.2016
Subgroup; annex to the condensed notes	Group	Port Logistics	Real Estate	Consolidation
ASSETS
Intangible assets	76,437	76,406	31	0
Property, plant and equipment	967,374	948,050	4,508	14,816
Investment property	186,905	36,805	177,281	- 27,181
Associates accounted for using the equity method	15,332	15,332	0	0
Financial assets	19,785	15,969	3,816	0
Deferred taxes	83,903	91,828	0	- 7,925
Non-current assets	1,349,736	1,184,390	185,636	- 20,290
Inventories	22,230	22,162	68	0
Trade receivables	149,628	148,475	1,153	0
Receivables from related parties	103,045	100,229	4,837	- 2,021
Other financial receivables	1,971	1,912	59	0
Other assets	30,514	28,972	1,542	0
Income tax receivables	7,256	8,062	0	- 806
Cash, cash equivalents and short-term deposits	97,237	96,857	380	0
Current assets	411,881	406,669	8,039	- 2,827
Balance sheet total	1,761,617	1,591,059	193,675	- 23,117
EQUITY AND LIABILITIES
Subscribed capital	72,753	70,048	2,705	0
Capital reserve	141,584	141,078	506	0
Retained earnings	388,122	353,741	43,674	- 9,293
Other comprehensive income	- 127,771	- 127,307	- 464	0
Non-controlling interests	35,342	35,342	0	0
Equity	510,030	472,902	46,421	- 9,293
Pension provisions	491,147	483,692	7,455	0
Other non-current provisions	80,769	78,475	2,294	0
Non-current liabilities to related parties	106,120	106,120	0	0
Non-current financial liabilities	358,857	247,026	111,831	0
Deferred taxes	19,117	17,156	12,958	- 10,997
Non-current liabilities	1,056,010	932,469	134,538	- 10,997
Other current provisions	21,427	21,363	64	0
Trade liabilities	62,598	60,633	1,965	0
Current liabilities to related parties	8,228	7,816	2,433	- 2,021
Current financial liabilities	77,346	70,676	6,670	0
Other liabilities	21,085	20,307	778	0
Income tax liabilities	4,893	4,893	806	- 806
Current liabilities	195,577	185,688	12,716	- 2,827
Balance sheet total	1,761,617	1,591,059	193,675	- 23,117

Balance Sheet HHLA Subgroups

in € thousand; Port Logistics Subgroup and Real Estate Subgroup; annex to the condensed notes	31.12.2015 Group	31.12.2015 Port Logistics	31.12.2015 Real Estate	31.12.2015 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
Current liabilities to related parties	7,129	6,792	1,059	- 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 1,576,436	12,111	- 1,086 - 20,816
Balance sheet total	1,750,364		194,744

Cash Flow Statement HHLA Group

in € thousand	1–6 2016	1–6 2015
1. Cash flow from operating activities
Earnings before interest and taxes (EBIT)	66,855	82,639
Depreciation, amortisation, impairment and reversals on non-financial non-current assets	58,938	60,522
Increase (+), decrease (-) in provisions	6,910	- 8,053
Earnings (-), losses (+) arising from the disposal of non-current assets	- 315	- 478
Increase (-), decrease (+) in inventories, trade receivables and other assets not attributable to investing or financing activities	- 12,187	- 9,816
Increase (+), decrease (-) in trade payables and other liabilities not attributable to investing or financing activities	15,414	12,724
Interest received	1,065	1,732
Interest paid	- 7,514	- 10,128
Income tax paid	- 13,448	- 25,884
Exchange rate and other effects	- 3,186	- 5,466
Cash flow from operating activities	112,532	97,792
2. Cash flow from investing activities
Proceeds from disposal of intangible assets, property, plant and equipment and investment property	695	497
Payments for investments in property, plant and equipment and investment property	- 54,549	- 62,252
Payments for investments in intangible assets	- 8,041	- 4,016
Proceeds from disposals of non-current financial assets	0	100
Payments for investments in non-current financial assets	- 34	- 1,686
Proceeds (+) from/Payments (-) for short-term deposits	16,369	50,000
Cash flow from investing activities	- 45,560	- 17,357
3. Cash flow from financing activities
Payments for acquiring interests in consolidated companies	- 13,556	0
Dividends paid to shareholders of the parent company	- 46,062	- 40,482
Dividends/settlement obligation paid to non-controlling interests	- 22,371	- 30,307
Redemption of lease liabilities	- 2,393	- 2,329
Proceeds from the issuance of bonds and (financial) loans	8,321	33,138
Payments for the redemption of (financial) loans	- 24,785	- 39,995
Exchange rate effects	- 325	130
Cash flow from financing activities	- 101,171	- 79,845
4. Financial funds at the end of the period
Change in financial funds (subtotals 1.–3.)	- 34,199	590
Change in financial funds due to exchange rates	- 403	- 1,704
Change in financial funds due to consolidation	4,543	0
Financial funds at the beginning of the period	165,415	185,617
Financial funds at the end of the period	135,356	184,503

Cash Flow Statement HHLA Subgroups

in € thousand; Port Logistics Subgroup and Real Estate Subgroup; annex to the condensed notes	1–6 2016 Group	1–6 2016 Port Logistics	1–6 2016 Real Estate	1–6 2016 Consolidation
1. Cash flow from operating activities
Earnings before interest and taxes (EBIT)	66,855	58,762	7,931	162
Depreciation, amortisation, impairment and reversals on non
financial non-current assets	58,938	56,541	2,559	- 162
Increase (+), decrease (-) in provisions	6,910	7,118	- 208
Earnings (-), losses (+) arising from the disposal of non-current
assets	- 315	- 315	0
Increase (-), decrease (+) in inventories, trade receivables and		- 13,581	95
other assets not attributable to investing or financing activities	- 12,187			1,299
Increase (+), decrease (-) in trade payables and other liabilities not attributable to investing or financing activities	15,414	15,222	1,491	- 1,299
Interest received	1,065	1,144	25	- 104
Interest paid	- 7,514	- 5,590	- 2,028	104
Income tax paid	- 13,448	- 12,150	- 1,298
Exchange rate and other effects	- 3,186	- 3,186	0
Cash flow from operating activities	112,532	103,965	8,567	0
2. Cash flow from investing activities
Proceeds from disposal of intangible assets, property,
plant and equipment and investment property	695	695	0
Payments for investments in property, plant and equipment and
investment property	- 54,549	- 53,721	- 828
Payments for investments in intangible assets	- 8,041	- 8,015	- 26
Proceeds from disposals of non-current financial assets	0	0	0
Payments for investments in non-current financial assets	- 34	- 34	0
Proceeds (+) from/Payments (-) for short-term deposits	16,369	16,369	0
Cash flow from investing activities	- 45,560	- 44,706	- 854	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	- 2,393	- 2,393	0
Proceeds from the issuance of bonds and (financial) loans	8,321	8,321	0
Payments for the redemption of (financial) loans	- 24,785	- 22,732	- 2,053
Exchange rate effects	- 325	- 325	0
Cash flow from financing activities	- 101,171	- 94,385	- 6,786	0
4. Financial funds at the end of the period
Change in financial funds (subtotals 1.–3.)	- 34,199	- 35,126	927	0
Change in financial funds due to exchange rates	- 403	- 403	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	135,356	130,176	5,180	0

Cash Flow Statement HHLA Subgroups

in € thousand; Port Logistics Subgroup and Real Estate	1–6 2015	1–6 2015	1–6 2015	1–6 2015
Subgroup; annex to the condensed notes	Group	Port Logistics	Real Estate	Consolidation
1. Cash flow from operating activities
Earnings before interest and taxes (EBIT)	82,639	74,145	8,335	159
Depreciation, amortisation, impairment and reversals on non
financial non-current assets	60,522	58,192	2,489	- 159
Increase (+), decrease (-) in provisions	- 8,053	- 7,856	- 197
Earnings (-), losses (+) arising from the disposal of non-current assets	- 478	- 473	- 5
Increase (-), decrease (+) in inventories, trade receivables and other assets not attributable to investing or financing activities	- 9,816	- 8,209	- 1,200	- 407
Increase (+), decrease (-) in trade payables and other liabilities not attributable to investing or financing activities	12,724	14,145	- 1,828	407
Interest received	1,732	1,773	21	- 62
Interest paid	- 10,128	- 7,879	- 2,311	62
Income tax paid	- 25,884	- 25,152	- 732
Exchange rate and other effects	- 5,466	- 5,466	0
Cash flow from operating activities	97,792	93,220	4,572	0
2. Cash flow from investing activities
Proceeds from disposal of intangible assets, property,
plant and equipment and investment property	497	492	5
Payments for investments in property, plant and equipment and investment property	- 62,252	- 61,696	- 556
Payments for investments in intangible assets	- 4,016	- 4,014	- 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	50,000	50,000	0
Cash flow from investing activities	- 17,357	- 16,804	- 553	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	- 30,307	- 30,307	0
Redemption of lease liabilities	- 2,329	- 2,329	0
Proceeds from the issuance of bonds and (financial) loans	33,138	33,138	0
Payments for the redemption of (financial) loans	- 39,995	- 37,942	- 2,053
Exchange rate effects	130	130	0
Cash flow from financing activities	- 79,845	- 73,735	- 6,110	0
4. Financial funds at the end of the period
Change in financial funds (subtotals 1.–3.)	590	2,681	- 2,091	0
Change in financial funds due to exchange rates	- 1,704	- 1,704	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	184,503	191,873	- 7,370	0

Segment Report HHLA Group

in € thousand; business segments; annex to the condensed notes Port Logistics Subgroup Real Estate Subgroup Total

	Container		Intermodal		Logistics
	1–6	1–6	1–6	1–6	1–6	1–6
	2016	2015	2016	2015	2016	2015
Segment revenue
Segment revenue from non-affiliated third parties	333,411	349,992	189,845	179,962	24,475	29,704
Inter-segment revenue	3,143	1,909	940	817	2,892	3,439
Total segment revenue	336,554	351,901	190,785	180,779	27,367	33,143
Earnings
EBITDA	95,419	100,328	45,319	38,199	- 14,668	- 433
EBITDA margin	28.4 %	28.5 %	23.8 %	21.1 %	- 53.6 %	- 1.3 %
EBIT	54,157	57,530	33,668	26,819	- 16,674	- 1,077
EBIT margin	16.1 %	16.3 %	17.6 %	14.8 %	- 60.9 %	- 3.2 %
Assets
Segment assets	818,375	821,263	391,272	364,114	42,369	24,367
Other segment information
Investments in property, plant and equipment and investment
property	36,333	14,569	20,461	43,867	257	136
Investments in intangible assets	2,758	3,774	3	73	3	5
Total investments	39,091	18,343	20,464	43,940	260	141
Depreciation of property, plant and equipment and investment property	36,512	37,395	11,382	11,201	1,977	621
Amortisation of intangible assets	4,750	5,403	269	179	29	24
Total amortisation and depreciation	41,262	42,798	11,651	11,380	2,006	645
Earnings from associates accounted for using the equity
method	365	354	0	0	2,219	2,247
Non-cash items	16,225	12,190	753	1,270	16,171	880
Container throughput in thousand TEU	3,209	3,404	–	–
Container transport in thousand TEU	–	–	694	654

			Real Estate Subgroup		Total	Consolidation and reconciliation with Group		Group
	Holding/Other		Real Estate
1–6	1–6	1–6	1–6	1–6	1–6	1–6	1–6	1–6	1–6
2016	2015	2016	2015	2016	2015	2016	2015	2016	2015
8,220	8,644	17,529	16,839	573,479	585,141	0	0	573,479	585,141
64,447	59,364	1,196	1,194	72,619	66,723	- 72,619	- 66,723	0
72,667	68,008	18,725	18,033	646,098	651,864
- 10,768	- 6,024	10,491	10,824	125,793	142,895	0	0	125,793	142,895
- 14.8 %	- 8.9 %	56.0 %	60.0 %
- 13,281	- 9,263	7,932	8,335	65,802	82,344	1,053	295	66,855	82,639
- 18.3 %	- 13.6 %	42.4 %	46.2 %
78,541	155,413	188,443	191,742	1,519,000	1,556,899	242,617	188,380	1,761,617	1,745,279
1,320	877	829	556	59,200	60,005	0	0	59,200
5,252	190	26	2	8,042	4,044	0	- 28	8,042
6,572	1,067	855	558	67,242	64,049	0	- 28	67,242
2,063	2,765	2,555	2,487	54,489	54,469	- 946	- 212	53,544
450	474	4	2	5,502	6,082	- 107	- 83	5,394
2,513	3,239	2,559	2,489	59,991	60,551	- 1,053	- 295	58,938
0		0 0	0	2,583	2,601	0	0	2,583
9,057	6,256	89	50	42,295	20,646	- 7	8	42,288

Statement of Changes in Equity HHLA Group

in € thousand

		Parent company
	Subscribed capital		Capital reserve		Retained consoli dated earnings	Reserve for foreign currency translation
	A division	S division	A division	S division
Balance as of 31 December 2014	70,048	2,705	141,078	506	386,900	- 50,220
Dividends					- 40,482
Total Comprehensive Income					37,478	- 7,527
Balance as of 30 June 2015	70,048	2,705	141,078	506	383,896	- 57,747
Balance as of 31 December 2015	70,048	2,705	141,078	506	413,097	- 61,694
Dividends					- 46,062
Acquisition of non-controlling interests in consolidated companies					- 6,220
Initial consolidation of shares in affiliated companies/associates accounted for
using the equity method					1,501
Total Comprehensive Income					25,806	- 1,084
Balance as of 30 June 2016	70,048	2,705	141,078	506	388,122	- 62,778

Total consolidated equity	Non-controlling interests	Parent company interests
						Other comprehensive income
				Deferred taxes on
				changes recognised	Actuarial gains/	Cash flow
			Other	directly in equity	losses	hedges
	29,232	517,509	11,686	21,203	- 66,196	- 201
		- 40,482
	12,612	39,517	65	- 4,561	13,858	203
	41,844	516,544	11,751	16,642	- 52,338	2
	30,707	549,853	11,679	13,228	- 40,974	180
	- 744	- 46,062
	- 9,273	- 6,220
	258	1,501
	14,394	- 24,384	- 3	23,401	- 72,677	173
	35,342	474,688	11,676	36,629	- 113,651	353

Statement of Changes in Equity HHLA Subgroup Port Logistics (A division)

in € thousand; annex to the condensed notes

			Retained consoli	Reserve for foreign
	Subscribed capital	Capital reserve	dated earnings	currency translation
Balance as of 31 December 2014	70,048	141,078	360,510	- 50,220
Dividends			- 36,425
Total Comprehensive Income Subgroup			33,248	- 7,527
Balance as of 30 June 2015	70,048	141,078	357,333	- 57,747
Balance as of 31 December 2015	70,048	141,078	378,519	- 61,693
Dividends			- 41,329
Acquisition of non-controlling interests in consolidated companies			- 6,220
Initial consolidation of shares in affiliated companies/associates
accounted for using the equity method			1,501
Total Comprehensive Income Subgroup			21,270	- 1,084
Balance as of 30 June 2016	70,048	141,078	353,741	- 62,777

Parent company

Statement of Changes in Equity HHLA Subgroup Real Estate (S division)

in € thousand; annex to the condensed notes

Balance as of 31 December 2014
Dividends
Total Comprehensive Income Subgroup
Balance as of 30 June 2015
Plus income statement consolidation effect
Less balance sheet consolidation effect
Total effects of consolidation
Balance as of 30 June 2015
Balance as of 31 December 2015
Dividends
Total Comprehensive Income Subgroup
Balance as of 30 June 2016
Plus income statement consolidation effect
Less balance sheet consolidation effect
Total effects of consolidation
Balance as of 30 June 2016

Total subgroup consolidated equity	Non-controlling interests	Parent company interests
						Other comprehensive income
			Other	Deferred taxes on changes recognised directly in equity		Cash flow hedges Actuarial gains/losses
517,045	29,232	487,813	11,686	21,250	- 66,338	- 201
- 36,425		- 36,425
47,852	12,612	35,240	65	- 4,539	13,790	203
528,473	41,844	486,629	11,751	16,711	- 52,547	2
542,462	30,707	511,755	11,680	13,377	- 41,434	180
- 42,073	- 744	- 41,329
- 15,493	- 9,273	- 6,220
1,759	258	1,501
- 13,753	14,394	- 28,147	- 5	23,033	- 71,535	174
472,902	35,342	437,560	11,675	36,410	- 112,969	354

Total subgroup consolidated equity		Other comprehensive income
	Deferred taxes on changes recognised directly in equity	Actuarial gains/losses	Retained consolidated earnings	Capital reserve	Subscribed capital
39,350	- 45	140	36,044	506	2,705
- 4,057			- 4,057
4,157	- 22	68	4,111
39,450	- 67	209	36,098	506	2,705
119			119
- 9,654			- 9,654
- 9,535			- 9,535
29,915	- 67	209	26,563	506	2,705
47,513	- 148	457	43,993	506	2,705
- 4,733			- 4,733
3,640	369	- 1,142	4,414
46,421	221	- 684	43,674	506	2,705
122			122
- 9,415			- 9,415
- 9,293			- 9,293
37,128	221	- 684	34,381	506	2,705

Notes to the Condensed Interim Consolidated Financial Statements

1. Basic Information on the Group

The Group's parent company is Hamburger Hafen und Logistik Aktiengesellschaft, Bei St. Annen 1, 20457 Hamburg (HHLA), registered in the Hamburg Commercial Register under HRB 1902. The holding company above the HHLA Group is HGV Hamburger Gesellschaft für Vermögens- und Beteiligungsmanagement mbH, Hamburg (HGV).

The Condensed Interim Consolidated Financial Statements, and therefore the information in the Notes, are presented in euros (€). For the sake of clarity, the individual items are shown in thousands of euros (€ thousand) unless otherwise indicated. Due to the use of rounding procedures, it is possible that some figures do not add up to the stated sums.

2. Significant Events in the Reporting Period

The Group's earnings, net assets and financial position in the period under review were negatively impacted by one-off expenses incurred in connection with the planned restructuring of the Logistics segment.

3. Consolidation, Accounting and Valuation Principles

3.1 Basis for Preparation of the Condensed Interim Consolidated Financial Statements

The Condensed Interim Consolidated Financial Statements for the period from 1 January to 30 June 2016 were prepared in compliance with the rules of IAS 34 Interim Financial Reporting.

The IFRS requirements that apply in the European Union have been met in full.

The Condensed Interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements as of 31 December 2015.

3.2 Principal Accounting and Valuation Methods

The accounting and valuation methods used for the preparation of the Condensed Interim Consolidated Financial Statements correspond to the methods used in the preparation of the Consolidated Financial Statements as of 31 December 2015. The company started applying the following new standards on 1 January 2016:

• Amendments to IFRS 11 Accounting for Acquisitions of Interests in Joint Operations
• Amendments to IAS 1 Disclosure Initiative
• Amendments to IAS 16 and IAS 38 Clarification of Acceptable Methods of Depreciation and Amortisation
• Amendments to IAS 19 Defined Benefit Plans: Employee Contributions
• Improvements to IFRS 2010–2012 Cycle
• Improvements to IFRS 2012–2014 Cycle

Applying these standards had no significant impact on the Condensed Interim Consolidated Financial Statements.

3.3 Changes in the Group of Consolidated Companies

METRANS Danubia Krems GmbH, Krems an der Donau, Austria, and METRANS Railprofi Austria GmbH, Krems an der Donau, Austria, were consolidated and included in HHLA's Consolidated Financial Statements for the first time as of 31 March 2016.

As of 30 June 2016, METRANS Adria D.O.O., Koper, Slovenia, METRANS Danubia Kft., Gyor, Hungary, and METRANS ISTANBUL STI, Istanbul, Turkey, were consolidated for the first time and DHU Gesellschaft Datenverarbeitung Hamburger Umschlagsbetriebe mbH, Hamburg, was included in HHLA's Consolidated Financial Statements for the first time using the equity method.

The effects of initial consolidation on HHLA's Consolidated Financial Statements were recognised directly in equity and were immaterial.

HHLA Intermodal Polska Sp. z o.o., Warsaw, Poland, was merged with POLZUG Intermodal Polska Sp. z o.o., Warsaw, Poland, in June 2016. The merger had no effect on HHLA's Consolidated Financial Statements.

4. Purchase and Sale of Shares in Subsidiaries

HHLA increased its interest in METRANS a.s., Prague, Czech Republic, from 86.5 % to 90.0 % with the share purchase and transfer contracts dated 28 June 2016 after METRANS a.s. acquired treasury shares from its non-controlling interests. The purchase price for these shares was taken directly to equity in accordance with the entity concept with a corresponding reduction in non-controlling interests.

There were no other material acquisitions or disposals of shares in subsidiaries in the first half of 2016.

5. Earnings per Share

The following table illustrates the calculation for basic earnings per share for the Group and the subgroups:

Basic Earnings per Share in €

		Group		Port Logistics Subgroup	Real Estate Subgroup
	1–6 2016	1–6 2015	1–6 2016	1–6 2015	1–6 2016	1–6 2015
Net profit attributable to shareholders of
the parent company in € thousand	25,806	37,478	21,270	33,248	4,536	4,230
Number of common shares in circulation	72,753,334	72,753,334	70,048,834	70,048,834	2,704,500	2,704,500
	0.35	0.52	0.30	0.47	1.68	1.56

The diluted earnings per share are identical to basic earnings per share as there were no conversion or option rights in circulation during the reporting period.

6. Dividends Paid

At the Annual General Meeting held on 16 June 2016, shareholders approved the proposal by the Executive Board and Supervisory Board to distribute a dividend of € 0.59 per share to the shareholders of the Port Logistics subgroup and of € 1.75 per share to the shareholders of the Real Estate subgroup. The total dividend of € 46,062 thousand was paid accordingly on 17 June 2016.

7. Segment Reporting

The Segment Report is presented as an annex to the Notes to the Condensed Interim Consolidated Financial Statements.

The HHLA Group's segment report is prepared in accordance with the provisions of IFRS 8 Operating Segments. IFRS 8 requires reporting on the basis of the internal reports made to the Executive Board for the purpose of controlling the company's activities.

The segment performance indicator used is the internationally customary key figure EBIT (earnings before interest and taxes), which serves to measure the performance of each segment and therefore aids the internal control function. For further information, please refer to the Consolidated Financial Statements as of 31 December 2015.

The accounting and valuation principles applied for internal reporting comply with the principles used for the HHLA Group as described in Note 6 "Accounting and Valuation Principles" in the Notes to the Consolidated Financial Statements as of 31 December 2015.

Segment information is reported on the basis of the internal control function, which is consistent with external reporting and is classified in accordance with the activities of the HHLA Group's business segments. These are organised and managed autonomously in accordance with the type of services being offered.

The HHLA Group still operates in four segments: Container, Intermodal, Logistics and Real Estate.

The Holding/Other division used for segment reporting does not represent an independent business segment as defined by the IFRS standards. However, it has been allocated to the segments within the Port Logistics subgroup in order to provide a complete and clear picture.

The reconciliation of segment assets with Group assets incorporates not only items for which consolidation is mandatory, but also claims arising from current and deferred income taxes, cash and cash equivalents, short-term deposits and financial assets which are not to be assigned to segment assets.

The reconciliation of the segment variable EBIT with consolidated earnings before taxes (EBT) incorporates not only transactions between the segments and the subgroups for which consolidation is mandatory, but also the proportion of companies accounted for using the equity method, net interest income and other financial result.

Reconciliation of the Segment Variable EBIT to Earnings before Tax (EBT)

in € thousand	1–6 2016	1–6 2015
Segment earnings (EBIT)	65,802	82,344
Elimination of business relations between the segments and subgroups	1,053	295
Group earnings (EBIT)	66,855	82,639
Earnings from associates accounted for using the equity method	2,583	2,601
Net interest income	- 12,946	- 19,225
Other financial result	- 10	944
Earnings before tax (EBT)	56,482	66,959

8. Equity

The breakdown and development of HHLA's equity for the period from 1 January to 30 June of the years 2016 and 2015 are presented in the statement of changes in equity.

9. Pension Provisions

The calculation of pension provisions as of 30 June 2016 was based on an interest rate of 1.00 % (31 December 2015: 2.25 %; 30 June 2015: 2.00 %). Actuarial gains/losses changed as follows. These are recognised in equity without effect on profit and loss.

Development of Actuarial Gains/Losses
in € thousand	2016	2015
Cumulative actuarial gains (+)/losses (-) as of 01. January	- 40,637	- 65,731
Change during the financial year due to a change in interest rate	- 73,471	13,737
Cumulative actuarial gains (+)/losses (-) as of 30. June	- 114,108	- 51,994

10. Investments

As of 30 June 2016, total capital expenditure throughout the HHLA Group amounted to € 67.2 million (previous year: € 64.0 million).

The largest investments up to the end of the first half of 2016 were made in the Container and Intermodal segments. HHLA invested in the expansion of the block storage facility at the Container Terminal Burchardkai and the construction of the hinterland terminal in Budapest.

As of 30 June 2016, the Container segment accounted for the bulk of investment commitments at € 53.1 million.

11. Financial Instruments

In the first half of 2016, gains of € 36 thousand (previous year: € 87 thousand) were recognised in the income statement on financial assets and/or liabilities held at fair value through profit and loss. These primarily relate to interest rate hedges with no effective hedging relationship as per IAS 39.

In the reporting period, changes of € 118 thousand (previous year: € 127 thousand) in the fair value of financial instruments designated as hedging instruments (interest rate swaps) were recognised directly in equity.

The interest rate swaps disclosed covered a total amount of € 979 thousand (previous year: € 10,265 thousand). Of these, financial instruments covering an amount of € 64 thousand (previous year: € 6,604 thousand) with a market value of € - 1 thousand (previous year: € - 237 thousand) were held as part of cash flow hedging relationships to hedge future cash flows from interest-bearing liabilities as of the balance sheet date. The hedged cash flows are expected to occur within four months. The amount covered by interest rate swaps is restated in line with the anticipated repayment of the loans over the term of the derivative. The fixed interest rate for the financial liabilities (interest rate swaps) is 3.95 % to 4.33 %. The remaining term of the derivatives is up to four months.

There are no material differences between the carrying amounts and fair values of the financial instruments reported under noncurrent financial liabilities. The discount rates used for liabilities to related parties (particularly the finance lease liabilities included in this item) are 4.21 % and 4.22 %.

The valuation methods and key unobservable input factors for calculating fair value are described in the Notes to the Consolidated Financial Statements as of 31 December 2015.

The tables below show the carrying amounts and fair values of financial assets and financial liabilities, as well as their classification in the fair value hierarchy.

Financial Assets as of 30. June 2016

		Carrying amount		Fair value
			Balance
	Loans and	Available	sheet
in € thousand	receivables	for sale	value	Level 1	Level 2	Level 3	Total
Financial assets at fair value
Financial assets (securities)		3,849	3,849	3,849			3,849
	0	3,849	3,849
Financial assets not measured at fair value
Financial assets	11,541	4,395	15,936
Trade receivables	149,628		149,628
Receivables from related parties	103,045		103,045
Other financial receivables	1,971		1,971
Cash, cash equivalents and short-term deposits	97,237		97,237
	363,422	4,395	367,817

Financial Liabilities as of 30. June 2016

		Carrying amount			Fair value
		Fair value	Other	Balance
	Held for	hedging	financial	sheet
in € thousand	trading	instruments	liabilities	value	Level 1	Level 2	Level 3	Total
Financial liabilities measured at
fair value
Financial liabilities (interest rate swaps
used for hedging transactions)	9	1		10		10		10
	9	1	0	10
Financial liabilities not measured at
fair value
Financial liabilities
(liabilities from bank loans)			313,577	313,577		323,038		323,038
Financial liabilities (finance lease liabilities)			39,561	39,561		39,561		39,561
Financial liabilities (settlement obligation)			25,534	25,534		25,534		25,534
Financial liabilities (other)			57,521	57,521
Trade liabilities			62,598	62,598
Liabilities to related parties
(finance lease liabilities)			106,485	106,485		106,485		106,485
Liabilities to related parties (other)			7,863	7,863
	0	0	613,139	613,139

Financial Assets as of 30. June 2015

	Carrying amount Fair value
			Balance
	Loans and	Available	sheet
in € thousand	receivables	for sale	value	Level 1	Level 2	Level 3	Total
Financial assets at fair value
Financial assets (securities)		3,950	3,950	3,950			3,950
	0	3,950	3,950
Financial assets not measured at fair value
Financial assets	13,350	6,089	19,439
Trade receivables	140,994		140,994
Receivables from related parties	70,977		70,977
Other financial receivables	2,586		2,586
Cash, cash equivalents and short-term deposits	168,103		168,103
	396,010	6,089	402,099

Financial Liabilities as of 30. June 2015

	Carrying amount				Fair value
		Fair value	Other	Balance
	Held for	hedging	financial	sheet
in € thousand	trading	instruments	liabilities	value	Level 1	Level 2	Level 3	Total
Financial liabilities measured at fair value
Financial liabilities (interest rate swaps used for hedging transactions)	106	237		343		343		343
	106	237	0	343
Financial liabilities not measured at fair value
Financial liabilities
(liabilities from bank loans)			276,861	276,861		281,582		281,582
Financial liabilities (finance lease liabilities)			41,062	41,062		41,062		41,062
Financial liabilities (settlement obligation)			22,432	22,432		22,432		22,432
Financial liabilities (other)			37,330	37,330
Trade liabilities			79,718	79,718
Liabilities to related parties
(finance lease liabilities)			106,760	106,760		106,760		106,760
Liabilities to related parties (other)			74,554	74,554
	0	0	638,717	638,717

12. Transactions with Respect to Related Parties

There are various contracts between the Free and Hanseatic City of Hamburg and/or the Hamburg Port Authority and companies in the HHLA Group for the lease of land and quay walls in the Port of Hamburg and in the Speicherstadt historical warehouse district. Moreover, the HHLA Group lets office space to other enterprises and public institutions affiliated with the Free and Hanseatic City of Hamburg. Further information about these business relationships can be found in the Consolidated Financial Statements as of 31 December 2015.

Receivables from related parties increased as a result of cash clearing with HGV.

13. Events after the Balance Sheet Date

There were no significant events after the balance sheet date of 30 June 2016.

Hamburg, 1 August 2016

Hamburger Hafen und Logistik Aktiengesellschaft The Executive Board

Klaus-Dieter Peters Dr. Stefan Behn Heinz Brandt Dr. Roland Lappin

Responsibility Statement

To the best of our knowledge, and in accordance with the applicable accounting principles for interim financial reporting, the Interim Consolidated Financial Statements give a true and fair view of the earnings, net assets and financial position of the Group, and the Interim Management Report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the material opportunities and risks associated with the expected development of the Group for the remainder of the financial year.

Hamburg, 1 August 2016

Hamburger Hafen und Logistik Aktiengesellschaft The Executive Board

Klaus-Dieter Peters Dr. Stefan Behn Heinz Brandt Dr. Roland Lappin

Review Report

To Hamburger Hafen und Logistik Aktiengesellschaft, Hamburg

We have reviewed the condensed interim consolidated financial statements, comprising the balance sheet, the income statement, the statement of comprehensive income, the cash flow statement, the statement of changes in equity and selected explanatory notes – and the interim group management report of Hamburger Hafen und Logistik Aktiengesellschaft, Hamburg, for the period from 1 January to 30 June 2016, which are part of the six-monthly financial report pursuant to Section 37w of the German Securities Trading Act (WpHG). The company's Executive Board is responsible for preparation of the condensed interim consolidated financial statements in accordance with IFRSs on interim financial reporting as adopted by the EU and of the interim group management report in accordance with the provisions of the WpHG applicable to interim group management reports. Our responsibility is to issue a report on the condensed interim consolidated financial statements and the interim group management report based on our review.

We conducted our review of the condensed interim consolidated financial statements and the interim group management report in accordance with the German generally accepted standards for the review of financial statements promulgated by the Institute of Public Auditors in Germany (Institut der Wirtschaftsprüfer, IDW). Those standards require that we plan and perform the review to obtain a certain level of assurance in our critical appraisal to preclude that the condensed interim consolidated financial statements are not prepared, in all material respects, in accordance with IFRSs on interim financial reporting as adopted by the EU and that the interim group management report is not prepared, in all material respects, in accordance with the provisions of the WpHG applicable to interim group management reports. A review is limited primarily to making enquiries of company personnel and applying analytical procedures and thus does not provide the assurance that we would obtain from an audit of financial statements. In accordance with our engagement, we have not performed an audit and, accordingly, we do not express an audit opinion.

Based on our review, nothing has come to our attention that causes us to believe that the condensed interim consolidated financial statements are not prepared, in all material respects, in accordance with IFRSs on interim financial reporting as adopted by the EU or that the interim group management report is not prepared, in all material respects, in accordance with the provisions of the WpHG applicable to interim group management reports.

Hamburg, 3 August 2016

PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft

Claus Brandt Wirtschaftsprüfer [German Public Auditor] Christoph Fehling Wirtschaftsprüfer [German Public Auditor]

Financial Calendar

Imprint

30 March 2016

Annual Report 2015 Financial Press Conference, Analyst Conference

12 May 2016

Interim Statement January–March 2016 Analyst Conference Call

16 June 2016

Annual General Meeting

11 August 2016

Half-Year Financial Report January–June 2016 Analyst Conference Call

10 November 2016

Interim Statement January–September 2016 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 info@hhla.de www.hhla.de

Investor Relations

Phone +49 40 3088 – 3100 Fax +49 40 3088 – 55 3100 investor-relations@hhla.de

Corporate Communications

Phone +49 40 3088 – 3520 Fax +49 40 3088 – 3355 unternehmenskommunikation@hhla.de

Design and Implementation

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

Disclaimer

The specialist terminology and financial terms are described in the 2015 Annual Report.

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

This document contains forward-looking statements that are based on the current assumptions and expectations of the Hamburger Hafen und Logistik Aktiengesellschaft (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, info@hhla.de