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Hamburger Hafen und Logistik AG

Interim / Quarterly Report Nov 13, 2013

195_10-q_2013-11-13_96a010cc-9ea6-4784-9023-8462b4b41d27.pdf

Interim / Quarterly Report

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hamburger hafen und logistik aktiengesellschaft Interim Report January to September 2013

Key Figures

HHLA Group
in € million 1–9 2013 1–9 2012 Change
Revenue and earnings
Revenue 868.0 847.2 2.5 %
EBITDA 212.7 233.8 - 9.0 %
EBITDA margin in % 24.5 27.6 - 3.1 pp
EBIT 121.4 143.8 - 15.6 %
EBIT margin in % 14.0 17.0 - 3.0 pp
Profit after tax 71.1 88.0 - 19.2 %
Profit after tax and minority interests 44.6 64.0 - 30.3 %
Cash flow statement and capital expenditure
Cash flow from operating activities 148.9 168.8 - 11.8 %
Capital expenditure 81.8 152.5 - 46.4 %
Volume data
Container throughput in thousand TEU 5,681 5,405 5.1 %
Container transport1
in thousand TEU
883 949 - 6.9 %
Container transport1
of continued operations in thousand TEU
883 729 21.1 %
in € million 30.09.2013 31.12.2012 Change
Balance sheet
Total assets 1,762.9 1,768.5 - 0.3 %
Equity 595.3 562.0 5.9 %
Equity ratio in % 33.8 31.8 2.0 pp
Employees
Number of employees 5,015 4,915 2.0 %
in € million Port Logistics Subgroup2,3 Real Estate Subgroup2,4
1–9 2013 1–9 2012 Change 1–9 2013 1–9 2012 Change
Revenue 847.1 826.7 2.5 % 24.8 24.2 2.5 %
EBITDA 198.8 221.0 - 10.0 % 13.9 12.8 8.5 %
EBITDA margin in % 23.5 26.7 - 3.2 pp 56.0 52.9 3.1 pp
EBIT 110.7 134.0 - 17.4 % 10.6 9.6 9.9 %
EBIT margin in % 13.1 16.2 - 3.1 pp 42.6 39.7 2.9 pp
Profit after tax and minority interests 39.8 59.6 - 33.3 % 4.8 4.4 9.8 %
Earnings per share in € 5 0.57 0.85 - 33.3 % 1.79 1.63 9.8 %

Transport volume was fully consolidated in the first quarter of 2012.

Before consolidation between the subgroups

Listed Class A shares

4 Non-listed Class S shares

5 Basic and diluted

Contents

  • The Share
  • Foreword from the Chairman of the Executive Board
  • Business Development at a Glance

Interim Management Report

  • Economic Environment
  • Group Performance
  • Container Segment
  • Intermodal Segment
  • Logistics Segment
  • Real Estate Segment
  • Financial Position
  • Employees
  • Transactions with Respect to Related Parties
  • Events after the Balance Sheet Date
  • Risk and Opportunity Report
  • Business Forecast

Interim Financial Statements

  • Income Statement
  • Balance Sheet
  • Cash Flow Statement
  • Segment Report
  • Statement of Changes in Equity
  • Notes to the Condensed Interim Consolidated Financial Statements

Responsibility Statement

Financial Calendar/Imprint

The Share

Stock Market Data

30.06.2013 – 30.09.2013 HHLA SDAX MDAX DAX
Change 10.6% 10.3% 9.7% 8.0%
Closing 30.06.2013 € 16.44 5,795 13,706 7,959
Closing 30.09.2013 € 18.18 6,393 15,034 8,594
High € 18.45 6,401 15,078 8,694
Low € 16.52 5,778 13,608 7,806

The German stock market made good progress in the third quarter of 2013, mirroring the upward tendency of international stock markets. This trend was partly driven by news that central banks in Europe and the USA would keep interest rates low until further notice. Despite the ongoing sovereign debt crisis, there were also increasing signs of recovery in the eurozone by early August. Germany's leading stock index (DAX) was further buoyed by positive economic signals from China. At the end of August, however, share prices dropped temporarily by the threat of escalating conflict in Syria. Afterwards, the DAX climbed to a new record high of 8,694 points on 19 September, shaped by positive Ifo Business Climate indicators and strong economic data from the USA. Although this upward trend was slowed at the end of the quarter by the US budget dispute and ongoing uncertainty as to the course of US monetary policy, stock markets remained generally stable and suffered no fundamental setbacks. On 30 September, the DAX closed 8.0% up on the beginning of the quarter at 8,594 points. The SDAX outperformed Germany's leading index by 2.3 percentage points and finished the quarter up 10.3% at 6,393 points.

Boosted by this general improvement in the economic outlook, the HHLA share picked up on a phase of steady recovery at the beginning of the third quarter, reaching levels of up to € 18.00. As part of publication of the first-half results on 14 August, some analysts downgraded the share to 'underweight' or 'hold'. The recommendations were based on several factors: the anticipated impact on earnings of flooding in May and June, the expansion of the Container Terminal Burchardkai, collective wage increases and a higher proportion of feeder traffic (traditionally associated with lower margins). This prompted the share price to fall below the € 17.00 mark. By mid September, however, market interest focused once again on the dredging of the river Elbe, as the Federal Administrative Court

in Leipzig announced that a hearing would commence in the fourth quarter. The resulting positive mood helped lift the share price to over € 18.00 again. On 20 September, the share reached a quarterly high of € 18.45. Positive economic data from China, the USA and the eurozone had a stabilising effect on the share price, which closed the quarter up 10.6% at € 18.18. The HHLA share thus outperformed the DAX by 2.6 percentage points, and the SDAX benchmark with a plus of 0.3 percentage points.

HHLA continued its active IR work in the third quarter and attended investor conferences in key financial centres. Meetings with numerous investors and analysts focused mainly on current business developments: these included the modernisation of the Container Terminal Burchardkai, the competitive environment, the impact of the planned alliance between the world's three largest container shipping companies (P3 Alliance) and the pending decision on the dredging of the river Elbe.

HHLA's communications activities were once again appreciated by the capital market: in a survey of more than 2,000 capital market participants conducted by the US magazine 'Institutional Investor', HHLA was awarded first place in the category 'Europe's Best Investor Relations Professional' in the transport sector. HHLA's annual report was also voted one of the top ten MDAX publications in a competition held by the University of Münster and 'manager magazin'.

Source: Datastream

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

Ladies and Gentlemen,

Hamburger Hafen und Logistik AG significantly expanded its handling and transport activities in the first nine months of the 2013 financial year. This is illustrated by the year-on-year volume growth of 21.1% achieved by the transport companies of our Intermodal segment, realigned in 2012. This growth in a stagnating market environment arises from our new D.A.CH strategy, the expansion in Germany, Austria and Switzerland. Despite the adverse effects of flooding in Germany and the Czech Republic, volumes increased considerably as our network was steadily expanded throughout the year – also offering our first connections to Switzerland as of October 2013.

There was also remarkable growth in throughput at our container terminals. Whereas competing ports suffered a slight overall decline in volumes, container throughput at our facilities has increased by 5.1% so far this year. Given the Port of Hamburg's infrastructural restrictions, this is no mean achievement. In view of the steady rise in the number of ever-bigger vessels, the delay of the long outstanding dredging of the river Elbe poses a growing challenge for us.

The highly competitive business of feeder traffic contributed to our growth in throughput. This increase in market share strengthens Hamburg's position as the most important hub for the Baltic region. That is all the more notable considering that operations on the Kiel canal are consistently restricted due to lengthy maintenance work.

Our market position was also strengthened by efforts to continuously enhance processes at our terminals, enabling us to handle the growing cargo volumes of mega-ships more quickly. This also involves deploying additional staff and equipment to cope with the increasingly narrow time windows for mega-ship calling and leaving the Port of Hamburg. The expansion of our own, highly productive hinterland systems for rail-based container transport is a cornerstone of our corporate strategy. As well as paving the way for us to gain market share in the transport business, this bundles cargo flows for our terminals. In light of these successes, we now expect growth in container throughput in the medium single-digit range for the full year 2013. We will achieve our ambitious target of strong growth in container transport. We are upholding our existing revenue forecast of between € 1.1 billion and € 1.2 billion.

Given the current macroeconomic environment, however, operating earnings cannot yet keep pace with our growth in volume. In the Intermodal segment, earnings are being held back by high expenditure for entering new markets and the consequences of flooding earlier in the year. At the same time, the Container segment faces rising additional expenses, in particular due to the delayed deepening of the navigation channel of the river Elbe and general cost increases. As a consequence, we now expect our operating result (EBIT) to be at the lower end of the € 155 million to € 175 million range.

Despite these current challenges, we are still in a position to pursue our long-term corporate development strategy – thus paving the way for the realisation of our growth potential.

Yours,

Klaus-Dieter Peters Chairman of the Executive Board

Klaus-Dieter Peters Chairman of the Executive Board

Business Development at a Glance

  • I Container throughput up 5.1% in a declining market
  • I Dynamic growth of 21.1% in container transport following realignment of the Intermodal segment
  • I Revenue development of realigned Group structure largely follows volume trend
  • I Additional expenses due to expansion and modernisation, ongoing delayed dredging of the river Elbe and extra costs due to flooding
  • I Operating result down to € 121.4 million
  • I Profit after tax and minority interests amounts to € 44.6 million
  • I Outlook for the full year 2013: revenue expectation unchanged, EBIT at the lower end of the forecast range

Mega-ships and feeders at the HHLA Container Terminal Altenwerder: more cargo destined for the Baltic region

Interim Management Report

Economic Environment

Macroeconomic Development

Despite a slight upturn from summer 2013 onwards, global economic growth was relatively flat in the first nine months when viewed in the context of a medium-term comparison. Global trade remained very restrained and merely mirrored the increase in global gross domestic product (GDP). In the years preceding the financial crisis, it had always clearly outpaced global growth in GDP.

The disproportionately high rate of growth in the emerging and developing countries weakened. Although the Chinese economy has grown by over 7.5% so far this year, for example, this is well below its earlier rates of up to 10%. Overall, growth rates were down in most of the major emerging markets.

By contrast, the leading industrial nations of the G7 recorded a slight recovery in economic output – albeit from a low baseline. The economic recovery in the USA gained further momentum: with GDP growth of 1.8% in the first quarter and 2.5% in the second, the US economy continued to head the recovery among the Western industrialised nations.

For the first time in 18 months, real GDP growth in the eurozone exceeded the prior-quarter figure, with an increase of 0.3% in the second quarter of 2013. There are early indications that this recovery will continue in the third quarter. By contrast, the economic development in Central and Eastern Europe varied from country to country. Whereas some economies experienced a tangible recovery as the year progressed, growth in other countries was held in check by structural problems and the introduction of fiscal consolidation measures.

According to currently available figures, German economic growth gathered pace over the course of 2013. By contrast, the country's foreign trade declined in the first eight months of the year: exports were down 1.1% while imports fell by 1.4%.

Sector Development

Driven especially by rising traffic within Asia, there was a noticeable increase in the momentum of global container throughput over the first three quarters. After growing by 2.1% in the first quarter and 3.2% in the second quarter, growth in the third quarter looks set to exceed 4%. Nevertheless, this trend in container traffic still falls well short of earlier growth rates. It is now roughly on a par with the expansion of the global economy and world trade, which it previously exceeded by 1.5 to 3 times. Regardless of this trend, the idle carrying capacity of the world's container ship fleet continued to increase. Growth in handling capacity at terminals in Northern Europe will also outstrip demand both this year and in the coming years.

Despite the first green shoots of recovery for the European economy, throughput at Northern Europe's large continental ports fell slightly overall in the first nine months of 2013, according to currently available figures. This is borne out by a 1.7% decrease in container throughput in Antwerp, a 6.5 % drop in Bremen/Bremerhaven and a 1.0% decline in Rotterdam in the period from January to September.

At 213.7 million tonnes for the first seven months of 2013, Germany's rail freight transport market reached the level of the previous year. Developments in the transportation of standard containers were somewhat more encouraging, with an increase of 1.5% to 3.7 million TEU between January and July.

Group Performance

Key Figures

in € million 1–9 2013 1–9 2012 Change
Revenue 868.0 847.2 2.5 %
EBITDA 212.7 233.8 - 9.0 %
EBITDA margin in % 24.5 27.6 - 3.1 pp
EBIT 121.4 143.8 - 15.6 %
EBIT margin in % 14.0 17.0 - 3.0 pp
Profit after tax and minority interests 44.6 64.0 - 30.3 %
ROCE in % 11.9 14.0 - 2.1 pp

Notes on the Reporting

As of the second quarter of 2012, HHLA's Consolidated Financial Statements have included the effects of realigning shareholdings in the rail operating companies of the Intermodal segment. This realignment led to the deconsolidation of TFG Transfracht and to the full consolidation of the Polzug Group. Both of these companies were consolidated pro rata in the first quarter of 2012.

There were no further effects at Group level resulting from changes in exchange rates or consolidation that had a material impact on the development of revenue and earnings in the reporting period.

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

Although economic growth remained modest, HHLA succeeded in largely maintaining its throughput levels from the previous quarter, and even exceeded the level achieved in the third quarter of 2012. Container throughput increased in the first nine months by 5.1% to 5,681 thousand TEU (previous year: 5,405 thousand TEU). This positive trend was primarily attributable to growth in existing liner services as well as to a rise in lower-margin feeder traffic.

The 6.9% fall in transport volume to 883 thousand TEU (previous year: 949 thousand TEU) resulted largely from the deconsolidation of TFG Transfracht in the second quarter of 2012. Taking the new ownership structure in the Intermodal segment into account, however, the volume of containers transported increased considerably, growing by 21.1% to 883 thousand TEU (previous year: 729 thousand TEU). This growth was driven by the newly established connections, especially to Germany, Austria and the Polish sea ports.

Revenue for the HHLA Group came to € 868.0 million in the reporting period, up 2.5% on the previous year (€ 847.2 million) despite the deconsolidation effects described above. Taking the Group's new structure into account, revenue growth was largely in line with volume trends – in spite of the difficult market environment, declining storage fees and a larger proportion of feeder traffic.

In its Container, Intermodal and Logistics segments, the listed Port Logistics subgroup generated revenue of € 847.1 million, up 2.5 % on the previous year (€ 826.7 million). The non-listed Real Estate subgroup posted revenue of € 24.8 million (previous year: € 24.2 million) and therefore accounted for 2.5% of Group revenue.

Changes in inventories at Group level were lower than last year at € 0.7 million (previous year: € 1.9 million). Own work capitalised was roughly on a par with the previous year at € 5.8 million (previous year: € 6.2 million).

Other operating income totalled € 25.1 million in the reporting period (previous year: € 37.1 million). The prior-year figure mainly comprises a one-off gain resulting from the realignment of the Group's Intermodal activities, which totalled € 17.3 million as of 30 September 2012. This year's figures include an accounting gain of € 5.4 million from the sale of a property in the Logistics segment. Excluding the effects mentioned above, other operating income remained unchanged from the previous year.

Expenses

Operating expenses rose by 4.0% compared to the previous year. After taking the realigned ownership structure into account, the increase was largely in line with volume developments, but slightly above the growth in revenue. The new Group structure only had a noticeable impact on the cost of materials, while effects on the other three expenditure categories roughly offset each other.

The cost of materials rose year on year by 1.0% to € 280.1 million (previous year: € 277.3 million). The cost-of-materials ratio came to 32.3% (previous year: 32.7%). Adjusted for the effects of realigning the Intermodal activities, this item developed in line with the volume increase in the material-intensive Intermodal segment.

Personnel expenses climbed by 6.8% to € 299.0 million in the reporting period (previous year: € 280.1 million). The personnel expenses ratio edged up to 34.4% (previous year: 33.1%). This was mainly due to collective wage increases, the ongoing modernisation measures at the Container Terminal Burchardkai and greater use of external staff to cope with peak loads in ship handling.

Other operating expenses rose by 6.6% year on year to € 107.8 million (previous year: € 101.2 million). The rise was partly due to leasing additional waggons for new transport services in the Intermodal segment, as well as conversion and modernisation work in project and contract logistics. The ratio of expenses to revenue was slightly higher than in the previous year at 12.4% (previous year: 11.9%).

As a result of these developments, the operating result before depreciation and amortisation (EBITDA) was 9.0 % down at € 212.7 million (previous year: € 233.8 million). At 24.5 %, the EBITDA margin was therefore below last year's figure (previous year: 27.6%).

Depreciation and amortisation edged up slightly to € 91.3 million (previous year: € 90.0 million) as a result of capital expenditure.

The operating result (EBIT) fell by 15.6 % to € 121.4 million in the first nine months (previous year: € 143.8 million). The EBIT margin was down 3.0 percentage points from 17.0% in the previous year to 14.0%. However, adjusted for the oneoff impact on earnings from the realignment of the Intermodal segment, the decline in EBIT was only marginal. The Port Logistics and Real Estate subgroups contributed 91.1% and 8.9% to EBIT, respectively.

Net financial expenses remained on a par with the previous year at € 23.6 million.

Due to the absence of the one-off gains in the previous year from the realignment of the Intermodal segment – which did not affect taxes – the Group's tax rate rose to 27.3% (previous year: 26.7%).

Following the operating result (EBIT), the profit after tax decreased by 19.2% from € 88.0 million to € 71.1 million. Profit after tax and minority interests fell year on year by 30.3% to € 44.6 million (previous year: € 64.0 million). The abovementioned one-off gains – both in 2012 and the current year – are fully reflected in the earnings attributable to shareholders of the parent company.

Earnings per share of € 0.61 were also 30.3% below last year's figure of € 0.88. The listed Port Logistics subgroup reported a 33.3% decrease in earnings per share to € 0.57 (previous year: € 0.85). Earnings per share of the non-listed Real Estate subgroup increased by 9.8 % to € 1.79 (previous year: € 1.63). Largely due to the lower operating result (EBIT), the return on capital employed (ROCE) fell by 2.1 percentage points to 11.9% (previous year: 14.0%).

Container Segment

Key Figures

in € million 1–9 2013 1–9 2012 Change
Revenue 538.1 523.2 2.8 %
EBITDA 169.7 174.8 - 2.9 %
EBITDA margin in % 31.5 33.4 - 1.9 pp
EBIT 103.4 107.7 - 4.0 %
EBIT margin in % 19.2 20.6 - 1.4 pp
Container throughput in thousand TEU 5,681 5,405 5.1 %

With an increase in throughput of 5.1% to 5,681 thousand standard containers (TEU), the HHLA terminals in Hamburg and Odessa significantly strengthened their position during the reporting period. By contrast, currently available figures indicate a slight year-on-year decline in container volumes at the company's competing ports in Northern Europe. The positive volume trend at HHLA's Hamburg terminals is all the more notable considering that the delay in dredging the river Elbe and frequent restrictions to operations on the Kiel canal represent a substantial burden for Hamburg.

The increase in market share resulted primarily from a substantial increase in feeder traffic to the Baltic states and Russia via the Baltic Sea (+ 10.1%), as well as a recovery in the handling of containers from the Far East (+ 6.5%) in Hamburg. The Container Terminal Odessa also raised its throughput significantly and gained market share in Ukraine. Compared to the previous year, the Hamburg terminals grew their feeder ratio – i.e. the percentage of total throughput accounted for by feeder traffic – from 26.4% to 27.7%.

The increased percentage of feeder traffic was one of the key reasons why revenue growth of 2.8% to € 538.1 million (previous year: € 523.2 million) lagged behind the rise in volumes. Firstly, income per feeder container is significantly lower. Secondly, the standard international method of calculating container throughput only takes seaborne handling into account. This means that an overseas container which is carried onwards by a feeder ship is counted twice, while one which is transported overland by rail or road only counts once. A rise in the feeder ratio therefore exaggerates the commercial impact of this volume trend. Revenue development was also affected by lower storage fees at HHLA's terminals, caused by the global container shortage.

As ships continue to grow in size, the impact of ongoing delays in dredging the river Elbe is becoming increasingly significant. It incurs substantial additional expenses for personnel and equipment to ensure that mega-ships meet the often very narrow time windows for calling or leaving the port. Along with the cost of modernising and expanding the Container Terminal Burchardkai, this was largely responsible for the 4.0% fall in the operating result (EBIT) to € 103.4 million (previous year: € 107.7 million). At the same time, it proved increasingly difficult to pass on higher costs – e.g. for energy and staff – to the shipping companies. In the third quarter of 2013, maintenance work at the terminals which had been postponed at the beginning of the year due to the harsh winter weather was also completed.

New container gantry cranes arrive at Burchardkai: handling equipment for the ultra large vessels

Intermodal Segment

Key Figures

in € million 1–9 2013 1–9 2012 Change
Revenue 232.9 225.5 3.3 %
EBITDA 34.6 48.2 - 28.2 %
EBITDA margin in % 14.9 21.4 - 6.5 pp
EBIT 19.9 35.2 - 43.5 %
EBIT margin in % 8.5 15.6 - 7.1 pp
Container transport 1
in thousand TEU
883 949 - 6.9 %
Container transport 1
of continued operations
in thousand TEU
883 729 21.1 %

Transport volume was fully consolidated in the previous year.

Due to the realignment of the Intermodal segment in the first half of 2012, volume, revenue and earnings reported for 2013 are not directly comparable with the previous year's figures. The prior-year figures still include the volumes transported by TFG Transfracht. Income for 2012 also contains the portion of Transfracht revenue attributable to HHLA based on the 50% stake it held at the time. Furthermore, EBIT for the first nine months of 2012 includes a one-off gain of € 17.3 million, which is largely attributable to the sale of TFG Transfracht stakes.

Operating business at those transport companies still included in the segment – the rail operators Metrans and Polzug and the trucking company CTD – developed positively in comparison with the previous year. With growth of 21.1%, the segment achieved a strong increase in the number of transported containers – despite a temporary fall in volumes due to flooding in May and June of 2013.

The strong growth momentum of the segment's remaining companies was largely attributable to successful new connections with Austria and Germany established as part of the D.A.CH strategy (abbreviation for Germany, Austria and Switzerland) of Metrans. In October 2013, Metrans expanded its network by linking Mannheim/Ludwigshafen and Basel/Weil am Rhein. It has since been able to offer transport services to Switzerland for the first time. The realignment of the rail company Polzug has also helped strengthen the segment's market position, especially with its new connections to Poland's sea ports.

The strategy of enhancing value added and vertical integration by using internal equipment has proved successful. This was illustrated by a marked increase in throughput at the newly opened hub terminals in Ceska Trebova in the Czech Republic (2013) and in the Polish city of Poznan (2011).

Revenue and operating result at the companies still included in the segment were well above the prior-year figures. That's all the more remarkable as a set of factors had a negative impact on the earnings growth. These included the consequences of extensive flooding which affected some of the HHLA transport companies' key routes as well as ramp-up costs for the expansion of the network and the establishment of new connections. Furthermore, earnings at Polzug continued to be burdened by restructuring expenses and old contracts for traction services which expire in 2014.

A container train of HHLA's subsidiary Metrans: the network is being expanded

Logistics Segment

Key Figures

1–9 2013 1–9 2012 Change
68.7 69.3 - 0.8 %
7.5 7.5 0.3 %
10.9 10.8 0.1 pp
5.2 4.7 9.8 %
7.5 6.8 0.7 pp

Business activities of the companies in the Logistics segment picked up appreciably in the third quarter of 2013. Whereas segment revenue was down by 5.6% year-on-year after the first six months, it was just 0.8% below the prior-year figure at € 68.7 million after nine months (previous year: € 69.3 million).

By contrast, the segment's operating result (EBIT) rose strongly by 9.8% to € 5.2 million (previous year: € 4.7 million). This was due to the recognition of hidden reserves from the sale of the Altenwerder logistics centre at the beginning of the year. Most of this one-off gain was needed for restructuring measures in project and contract logistics.

Business developed as follows in the segment's various areas:

Vehicle logistics, which also includes packing containers and handling ConRo vessels, was able to increase its seaborne throughput by 4.5% in the first nine months of the 2013 financial year, taking it to 1,282 thousand tonnes. Vehicle throughput recovered in the third quarter. After falling 4.6% to 98.2 thousand units in the first half of 2013, it was just 1.2% below the prior-year figure after the first nine months at 158.2 thousand units. Revenue and earnings were down on the previous year.

Bulk cargo logistics also recorded an increase in business in the third quarter of 2013. Although ore and coal throughput was down by 1.5% year-onyear at the end of the first six months, it exceeded the 2012 figure by 0.5% at the end of September, when it stood at 10.2 million tonnes. There was year-on-year growth in revenue, while earnings decreased slightly because of higher costs for repairs and energy, as well as for depreciation and amortisation.

Contract logistics activities were pooled at the Übersee-Zentrum storage and distribution centre in 2013. This was made possible by the new port development plan in Hamburg, which guarantees the use of this site for port purposes in the foreseeable future. Land was also leased at the adjacent O'Swaldkai for project logistics in the third quarter. Although revenue was down on the previous year, earnings adjusted for restructuring expenses improved.

Consulting activities recorded rising revenues and a solid earnings trend after the first nine months.

Cruise logistics recorded year-on-year growth with 150 cruise liners (+ 4.2%) and 474 thousand passengers (+ 18.5%). Revenue and earnings also increased.

O'Swaldkai multipurpose terminal: vehicle logistics for exporting new cars

Real Estate Segment

Key Figures

in € million 1–9 2013 1–9 2012 Change
Revenue 24.8 24.2 2.5 %
EBITDA 13.9 12.8 8.5 %
EBITDA margin in % 56.0 52.9 3.1 pp
EBIT 10.6 9.6 9.9 %
EBIT margin in % 42.6 39.7 2.9 pp

Following a weak start to the year, the office lettings market in Germany's seven real estate hotspots continued to recover in the course of the third quarter. According to the market overview by Jones Lang LaSalle, 2.17 million square metres of space was let in the first nine months. This is just 2.3% down on the corresponding prior-year figure. The shortfall in the first half of 2013 had stood at 11%.

Hamburg's office lettings market once again performed slightly better with modest year-on-year growth to 325,000 square metres. The vacancy rate dropped to 8.0% (previous year: 8.1%). However, prime rents in Hamburg stagnated at € 24 per square metre.

Against this market backdrop, the Real Estate segment succeeded in raising revenue and earnings once again. Revenue generated in the Speicherstadt historical warehouse district and in the fish market area on the northern banks of the river Elbe rose by 2.5% to € 24.8 million in the first three quarters of 2013 (previous year: € 24.2 million).

The operating result (EBIT) temporarily experienced disproportionate growth in the first nine months of 2013. At € 10.6 million, EBIT was 9.9% up on the prior-year figure of € 9.6 million. This was primarily due to a short-term fall in maintenance expenses. The segment's successful business performance was mainly attributable to the ongoing placement of new projects. Together with the high occupancy rate of nearly 100% in both districts, this is testimony to the segment's longterm portfolio development strategy.

Following on from the expansion of fashion and showroom space last year, the focus so far in 2013 has been on enhancing office/agency and dining/event units in the landmarked Speicherstadt historical warehouse district.

As part of this strategy, the office block 'Bei St. Annen 2', which used to house the Hamburg Free Port Office, has been completely refurbished. The building, by the well-known post-war architect Werner Kallmorgen, was carefully converted into modern offices in line with regulations for landmarked buildings. It has been let to an advertising agency.

A warehouse dedicated to fashion in the Speicherstadt: a successful combination of tradition and innovation

Financial Position

Liquidity Analysis

in € million 1–9 2013 1–9 2012
Financial funds as of 01.01. 188.9 294.8
Cash flow from
operating activities
148.9 168.8
Cash flow from
investing activities
- 51.6 - 115.3
Free cash flow 97.3 53.5
Cash flow from
financing activities
- 74.4 - 171.6
Change in financial funds 22.9 - 118.1
Change in financial funds
due to exchange rates
0.3 - 0.1
Financial funds as of 30.09. 212.0 176.6

Cash flow from operating activities decreased year on year from € 168.8 million to € 148.9 million. This was largely due to an increase in trade receivables and a rise in receivables from related parties. The same period last year had seen a decline in trade receivables. EBIT fell by € 22.4 million compared with the previous year. This was largely due to a one-off gain of € 17.3 million in the previous year following the realignment of Intermodal activities which is deducted from the cash flow from operating activities.

Investing activities led to cash outflows of € 51.6 million (previous year: € 115.3 million). The € 63.7 million reduction stemmed largely from lower capital expenditure on property, plant and equipment and investment property (€ 39.7 million) and proceeds from the disposal of non-current assets held for sale (€ 17.7 million) relating to the logistics centre in Altenwerder. This was partly offset by payments received in 2012 from the sale of shares in consolidated companies as part of the Intermodal segment's realignment, which almost compensated for short-term bank deposits. Without this transfer of cash to short-term deposits, cash outflow for investing activities would have come to € 61.6 million (previous year: € 105.3 million).

Free cash flow – defined as the total of cash flow from operating activities and cash flow from investing activities – amounted to € 97.3 million at the end of the reporting period (previous year: € 53.5 million) and thus improved strongly on the previous year.

The change in cash outflows from financing activities of € 97.2 million to € 74.4 million (previous year: € 171.6 million) was primarily due to payments of € 91.0 million in the previous year to purchase shares in fully consolidated companies.

As of the reporting date, the changes described above resulted in financial funds of € 212.0 million (previous year: € 176.6 million) – representing an increase over the corresponding figure at the beginning of the year (€ 188.9 million). Including short-term deposits, the Group's available liquidity totalled € 252.0 million (previous year: € 216.6 million). HHLA continues to have sufficient financial reserves to pursue its value-oriented corporate development strategy.

Investment Analysis

At € 81.8 million, investment volume in the reporting period was well below last year's figure of € 152.5 million. Capital expenditure comprised € 74.5 million for property, plant and equipment (previous year: € 145.7 million) and € 7.3 million for intangible assets (previous year: € 6.9 million). The majority of the investments were made for expansion.

A large proportion of capital expenditure in the first nine months of 2013 was for the purchase of new handling equipment and locomotives, the continued modernisation of the Container Terminal Burchardkai and the expansion of the Container Terminal Odessa in Ukraine.

For the remainder of the 2013 financial year, capital expenditure will continue to focus on increasing the productivity of existing terminal areas, expanding the high-performance hinterland connections in line with market demands and expanding the Container Terminal Odessa.

Balance Sheet Structure

in € million
Assets 30.09.2013 31.12.2012
Non-current assets 1,296.7 1,324.6
Current assets 466.2 443.9
1,762.9 1,768.5
Equity and liabilities
Equity 595.3 562.0
Non-current liabilities 859.6 880.0
Current liabilities 308.1 326.5
1,762.9 1,768.5

Balance Sheet Analysis

Compared with the end of 2012, the HHLA Group's balance sheet total decreased as of the reporting date by a total of € 5.6 million to € 1,762.9 million.

Non-current assets of € 1,296.7 million were € 27.9 million lower than at year-end 2012 (€ 1,324.6 million). This change was due to the depreciation of property, plant and equipment and lower deferred taxes.

At € 466.2 million, current assets grew by € 22.3 million compared to 31 December 2012 (€ 443.9 million). Cash and cash equivalents decreased by € 28.1 million to € 201.9 million. At the same time, receivables from affiliated companies increased by € 42.3 million to € 67.2 million and trade receivables rose by € 12.8 million to € 140.8 million. The disposal of non-current assets held for sale had a diminishing effect on the level of current assets (€ 12.4 million).

Equity increased by € 33.3 million to € 595.3 million as of the reporting date (31 December 2012: € 562.0 million). This rise was due to the quarterly result. There was an opposing effect from the distribution of dividends in June. The equity ratio also increased and stood at 33.8% at the end of the quarter (31 December 2012: 31.8%).

Non-current liabilities fell by € 20.4 million compared to year-end 2012 (€ 880.0 million), taking them to € 859.6 million. This was largely due to a € 14.8 million reduction in pension provisions to € 369.5 million because of adjustments to actuarial parameters. Non-current liabilities to affiliated companies decreased by € 7.2 million to € 106.9 million.

The fall in current liabilities to € 308.1 million compared to year-end 2012 (€ 326.5 million) resulted mainly from a € 19.3 million decrease in current financial liabilities and an € 10.1 million reduction in other current provisions. Current financial liabilities decreased because a settlement obligation to a minority shareholder from the profit and loss transfer agreement was paid off as planned. This contrasted with a rise in trade liabilities, which climbed € 8.9 million to € 74.8 million

Interim Report 14

Employees Transactions with Respect to Related Parties Events after the Balance Sheet Date Risk and Opportunity Report Business Forecast

Employees

HHLA's workforce totalled 5,015 on the reporting date, 30 September 2013. This corresponded to an increase of 2.0%, or 100 employees, since 31 December 2012. The biggest change was seen in the Intermodal segment, where headcount increased by 10.2 %, or 103 employees, compared to 31 December 2012. This growth was largely due to the opening of a new inland terminal in the Czech Republic and dynamic expansion in Germany, Austria and Switzerland. Headcount in the Logistics segment fell by 3.9%, or 12 employees. This reduction was mainly attributable to the pooling of project and contract logistics activities at the Übersee-Zentrum storage and distribution centre. Staffing levels at the other segments remained largely unchanged from the beginning of the year: there was a slight increase of 0.5%, or 15 people, in the Container segment, while headcount in the Holding/Other segment fell by 0.8%, or five employees, and the Real Estate segment's workforce decreased by 2.7%, or one person.

In the third quarter of 2013, 29 young adults (seven women and 22 men) started their dual training programmes at HHLA. The new employees will work in various areas throughout the HHLA Group over the next few years while training as specialists. Seven students completing cooperative degree programmes also started courses at HHLA in September.

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 2012.

Events after the Balance Sheet Date

There were no significant events after the balance sheet date of 30 September 2013.

Risk and Opportunity Report

With regard to the HHLA Group's risk and opportunity position, the statements made on pages 113 to 122 of the Management Report section of the 2012 Annual Report continue to apply, unless stated otherwise in this report. The risk factors associated with the HHLA Group's business activities are described there in the chapter 'Risk and Opportunity Report'. The risks identified, taken both singularly and cumulatively, still do not threaten the existence of the Group. As far as the future is concerned, there are also no discernible risks at present which could jeopardise the continued existence of the company.

In HHLA's opinion, the uncertainty surrounding further proceedings relating to the dredging of the river Elbe has increased since publication of the 2012 Annual Report. Likewise, future market developments have become more unpredictable.

Business Forecast

Macroeconomic Environment

Despite a slight upturn in summer, global economic growth remains modest in the current year. While the advanced economies recorded low but robust growth, there was a marked slowdown in the emerging and developing nations. There is also continued uncertainty in connection with the slower rate of economic growth in China, the development of government budgets in Europe and the USA as well as regarding the US Federal Reserve's future monetary policy. In view of these gloomier economic prospects, the International Monetary Fund (IMF) has downgraded its forecast for global economic growth in 2013 by 0.3 percentage points and now expects only a modest year-on-year increase of 2.9%. A similar development is anticipated for world trade: whereas annual growth in world trade

was usually twice as strong as that of global GDP prior to the global financial crisis, the two are now more or less in line with one another. The IMF therefore expects the volume of world trade to grow by 2.9% in 2013.

Efforts by the emerging and developing countries to stimulate their weak economies and return to the rapid pace of expansion seen prior to the crisis are still being held in check by domestic structural problems and low demand from the developed economies. As a consequence, the IMF has downgraded its growth expectations for the emerging and developing economies by 0.5 percentage points to 4.5%. In light of the Chinese government's ongoing policy of regulated growth, the IMF has also reduced its economic forecast for China by 0.2 percentage points. It now expects growth of 7.6% for 2013. For the advanced economies, however, the IMF is upholding its forecast of 1.2% growth for the full year 2013. The impact of the USA's budget crisis in October was included to some extent in the IMF's economic outlook, as it was produced at the same time. Despite robust economic growth in the first nine months, the economists have therefore downgraded their growth forecast for the USA slightly by 0.1 percentage points to 1.6%. The economic recovery in the eurozone countries is expected to continue over the coming months. This is reflected in the IMF's outlook, which has been increased by 0.1 percentage points. The area's structural problems remain unresolved, however, and gross domestic product in the European Monetary Union is therefore expected to fall by 0.4% this year. By contrast, moderate economic growth of 2.3% is forecast for Central and Eastern Europe. In view of faster economic growth prompted by a stable job market, rising incomes and increasing investment activity, the IMF has upgraded its forecast for the German economy by 0.2 percentage points and anticipates robust growth of 0.5% in 2013.

Sector Development

In view of modest cyclical trends, the market research institute Drewry has strongly downgraded its forecast for global container throughput in 2013 by 0.6 percentage points to 3.4%. Throughput growth is expected to vary between regions in line with economic forecasts: whereas container throughput growth is forecast for trade relations to the Far East (+ 5.3%), South-East Asia (+ 3.7%), Eastern Europe (+ 6.1%), Latin America (+ 3.3%) and Africa (+ 3.6%), container throughput at the Northern European ports is expected to decrease by 0.8%.

Due to the imbalance between supply and demand, the situation on the container shipping market is likely to become even tenser in 2013. The total capacity of new container ships going into service will outstrip global demand – even after consideration of shipbreaking rates. Industry attempts to cut costs by using slow steaming to save bunker, as well as operating new, more efficient tonnage, will largely be cancelled out as freight rates remain very low. Drewry nevertheless expects the group of container shipping companies to make a small profit in 2013.

The muted prospects for throughput at the North Range ports will have a major impact on transport volumes within the pre- and onward-carriage systems of the European hinterland. While road freight traffic is expected to increase slightly, the German Federal Office for Freight Transport anticipates a slight fall in rail-based traffic.

Buoyed by plans to increase capital expenditure and create jobs, the German logistics sector is much more optimistic about its prospects for the next twelve months. Germany's automotive industry is compensating for its declining Western European markets by serving growth markets outside Europe. It therefore anticipates a stable development in 2013. However, the German steel industry no longer expects to see a sustainable recovery this year given the challenging international environment.

Group Performance

Expected Earnings Position

As in the first half of the year, HHLA was able to exceed its outlook in both container throughput and container transport. Given the challenging macroeconomic environment, however, this also required greater efforts. Based on the earnings trend in the first nine months and the expected development for the full year, HHLA is therefore upholding the revenue forecast given in summer. Group revenue is likely to be in the range of € 1.1 billion to € 1.2 billion in the full year 2013. Based on developments in the first nine months, the Group's operating result (EBIT) is currently expected at the lower end of the announced range of € 155 million to € 175 million. The same applies to the EBIT for the Port Logistics subgroup that is also expected at the lower end of the announced range of € 142 million to € 162 million. The Real Estate subgroup is anticipated to achieve a revenue and an operating result on a par with the previous year.

In 2013, the following key developments are expected in the earnings position of the operating segments which represent the listed Port Logistics subgroup.

In the Container segment, the assumption that container throughput would be similar to previous year's level in the market relevant to HHLA – i.e. the North Range ports – has been confirmed. Over the course of the year, HHLA was nevertheless able to record a relatively strong increase in container throughput compared with the previous year. With this in mind, HHLA now anticipates medium single-digit growth in container throughput for the full twelve months. A corresponding slight increase in revenue is expected compared to last year. Due to the structure of throughput growth – and especially the disproportionate

increase in feeder traffic – it is unlikely that this revenue growth will be able to follow the trend in volumes. As the cost of modernising and expanding the Container Terminal Burchardkai remains high, segment earnings for the full twelve months of 2013 are expected to be down on the previous year despite the expected increase in volumes.

Due to the development in container transport in the Intermodal segment last year, transport volume is expected to be well above 1.1 million TEU for the full twelve months of 2013. This volume growth should result in a substantial increase in revenue at the remaining transport companies. However, the segment will not be able to build on the previous year's earnings, which included a one-off gain of € 17.6 million from the realignment of the Group's Intermodal activities. Start-up costs for new train services and the temporary impact of the Elbe flooding will also contribute to this development. Furthermore, operating losses from services to and from Poland, as well as within the country, will have a significant negative effect on earnings for the full year 2013. The current restructuring measures will probably lead to one-off expenses before the end of the financial year. Significant cost relief (personnel expenses, traction contracts) is not expected until 2014 onwards.

Despite diverging trends in individual business areas, revenue in the Logistics segment is expected to increase slightly with strong year-onyear growth in operating earnings. The accounting gain from the sale of a property recorded in the course of restructuring contract logistics will not be able to compensate for the associated expense – which was estimated to be even higher at the end of the first half-year – and unsatisfactory operating earnings. It is unlikely that vehicle logistics will be able to build on the prior-year operating result. Business development in the other units is expected to remain stable.

HHLA Group Forecast in half-year report Forecast in nine-month report
Container throughput Slight single-digit year-on-year growth Medium single-digit year-on-year growth
Container transport 1 Above market growth in excess
of 1.1 million TEU
Above market growth in excess
of 1.1 million TEU
Revenue In a range between
€ 1.1 billion and € 1.2 billion
In a range between
€ 1.1 billion and € 1.2 billion
EBIT In a range between
€ 155 million and € 175 million
In a range between
€ 155 million and € 175 million
Capital expenditure In the region of € 160 million In the region of € 130 million

Business Forecast 2013

Based on the new ownership structure in the Intermodal segment

A number of measures to stabilise business operations for the necessary restructuring of fruit activities were agreed with the Belgian co-partner in summer. These measures have been implemented as planned so far. If this trend continues, adjustments to the carrying amount of certain assets are not expected to be necessary at the end of the financial year.

Financial Position

HHLA now expects capital expenditure in the region of € 130 million at Group level in 2013, of which around € 115 million will be attributable to the Port Logistics subgroup. The reduction compared to the € 160 million originally expected is primarily due to the delay in delivering the new container gantry cranes to CTB and putting them into operation. Capital expenditure will rise accordingly in the full year 2014, resulting in a year-on-year increase. HHLA's policy of adjusting capital expenditure to demand, however, may lead to different figures over the course of time.

Expectations for the balance sheet profile also remain largely unchanged. On the basis of anticipated capital expenditure, non-current assets are expected to increase. Meanwhile, equity is set to grow further in consideration of the expected net profit for the year and proposed dividend payment, as well as the ongoing reduction of an equalisation liability. Aside from this, financial liabilities may increase due to the need for projectrelated funding. All in all, HHLA expects very little change in the balance sheet total compared to the previous year. HHLA's balance sheet policy remains focused on safeguarding earnings power and grasping opportunities while retaining stable capital structures.

Further Development

The swift completion of work to dredge the navigation channel of the river Elbe remains of central importance for HHLA's medium-term development. This requires the Federal Administrative Court in Leipzig to open main proceedings quickly and reach a positive verdict. Moreover, in order to achieve revenue and earnings growth in 2014 and the medium term, the global economy needs to return to a solid growth path with an increased focus on the benefits of an international division of labour. Over the coming months, HHLA will support and actively shape the announced restructuring of liner services and port calls. As a core element of HHLA's service portfolio, the successful expansion of hinterland transportation will play a particularly important role. HHLA will provide more detailed information regarding its earnings and financial position in 2014 on publication of its Annual Financial Statements for 2013.

No material changes with regard to other topics occurred during the reporting period. The following table lists the topics concerned. The relevant disclosures are largely included in the Annual Report for 2012 and remain valid.

Areas in which no material changes occurred in the reporting period
(Page numbers refer to the Annual Report 2012)
Company goals/strategies
Page 77 et seq.
Main services
Page 72 et seq.
Sales markets/competitive position
Page 73 et seq.
Research and development
Page 86 et seq.
Legal parameters
Page 79 et seq.
Principles and goals of financial management
Page 103
Future services, sales markets/competitive position, R&D activities
Page 127
Dividend policy
Page 127
Medium-term development
Page 128

Interim Financial Statements

Income Statement HHLA Group

in €thousand 1–9 2013 1– 9 2012 7–9 2013 7– 9 2012
Revenue 868,017 847,160 292,845 280,906
Changes in inventories 712 1,899 - 336 926
Own work capitalised 5,771 6,189 1,486 2,021
Other operating income 25,143 37,137 5,573 5,323
Cost of materials - 280,097 - 277,333 - 96,669 - 87,543
Personnel expenses - 298,993 - 280,050 - 96,014 - 91,233
Other operating expenses - 107,839 - 101,183 - 36,061 - 31,167
Earnings before interest, taxes, depreciation and amortisation (EBITDA) 212,714 233,819 70,823 79,233
Depreciation and amortisation - 91,280 - 89,993 - 30,370 - 29,602
Earnings before interest and taxes (EBIT) 121,434 143,826 40,453 49,631
Earnings from associates accounted for using the equity method - 334 178 89 - 106
Interest income 2,250 4,405 542 1,085
Interest expenses - 25,937 - 28,822 - 8,204 - 9,317
Other financial result 409 607 5 86
Financial result - 23,612 - 23,632 - 7,568 - 8,252
Earnings before tax (EBT) 97,822 120,194 32,885 41,379
Income tax - 26,680 - 32,148 - 8,273 - 11,334
Profit after tax 71,143 88,046 24,612 30,045
of which attributable to non-controlling interests 26,538 24,033 8,997 8,037
of which attributable to shareholders of the parent company 44,605 64,013 15,615 22,008
Earnings per share, basic, in €
Group 0.61 0.88 0.21 0.30
Port Logistics 0.57 0.85 0.20 0.28
Real Estate 1.79 1.63 0.57 0.76
Earnings per share, diluted, in €
Group 0.61 0.88 0.21 0.30
Port Logistics 0.57 0.85 0.20 0.28
Real Estate 1.79 1.63 0.57 0.76
in €thousand 1–9 2013 1– 9 2012 7–9 2013 7– 9 2012
Profit after tax 71,143 88,046 24,612 30,045
Components, which can not be transferred to Income Statement
Actuarial gains/losses 16,750 - 56,910 10,309 - 18,804
Deferred taxes - 5,429 18,399 - 3,339 6,092
Total 11,321 - 38,511 6,970 - 12,712
Components, which can be transferred to Income Statement
Cash flow hedges 267 - 90 58 - 31
Foreign currency translation differences - 2,146 224 - 2,785 - 1,900
Deferred taxes - 5 - 43 - 10 - 49
Other - 48 62 70 89
Total - 1,932 153 - 2,667 - 1,891
Income and expense recognised directly in equity 9,389 - 38,358 4,303 - 14,603
Total Other Comprehensive Income 80,532 49,688 28,915 15,442
of which attributable to non-controlling interests 26,512 23,989 9,017 8,051
of which attributable to shareholders of the parent company 54,020 25,699 19,898 7,391

Interim Financial Statements Income Statement HHLA Subgroups Statement of Other Comprehensive Income HHLA Subgroups 20

Income Statement HHLA Subgroups

in € thousand; subgroup Port Logistics and subgroup Real Estate;
annex to the condensed notes
1–9 2013
Group
1–9 2013
Port Logistics
1–9 2013
Real Estate
1–9 2013
Consolidation
Revenue 868,017 847,107 24,784 - 3,874
Changes in inventories 712 708 4 0
Own work capitalised 5,771 5,705 0 66
Other operating income 25,143 21,823 4,013 - 693
Cost of materials - 280,097 - 275,014 - 5,083 0
Personnel expenses - 298,993 - 297,358 - 1,635 0
Other operating expenses - 107,839 - 104,132 - 8,208 4,501
Earnings before interest, taxes, depreciation and amortisation (EBITDA) 212,714 198,839 13,875 0
Depreciation and amortisation - 91,280 - 88,189 - 3,321 230
Earnings before interest and taxes (EBIT) 121,434 110,650 10,554 230
Earnings from associates accounted for using the equity method - 334 - 334 0 0
Interest income 2,250 2,288 91 - 129
Interest expenses - 25,937 - 22,401 - 3,665 129
Other financial result 409 409 0 0
Financial result - 23,612 - 20,038 - 3,574 0
Earnings before tax (EBT) 97,822 90,612 6,980 230
Income tax - 26,680 - 24,309 - 2,315 - 56
Profit after tax 71,143 66,304 4,665 174
of which attributable to non-controlling interests 26,538 26,538 0
of which attributable to shareholders of the parent company 44,605 39,766 4,839
Earnings per share, basic, in € 0.61 0.57 1.79
Earnings per share, diluted, in € 0.61 0.57 1.79
in € thousand; subgroup Port Logistics and subgroup Real Estate;
annex to the condensed notes
1–9 2013
Group
1–9 2013
Port Logistics
1–9 2013
Real Estate
1–9 2013
Consolidation
Profit after tax 71,143 66,304 4,665 174
Components, which can not be transferred to Income Statement
Actuarial gains/losses 16,750 16,571 179
Deferred taxes - 5,429 - 5,371 - 58
Total 11,321 11,200 121
Components, which can be transferred to Income Statement
Cash flow hedges 267 267 0
Foreign currency translation differences - 2,146 - 2,146 0
Deferred taxes - 5 - 5 0
Other - 48 - 48 0
Total - 1,932 - 1,932 0
Income and expense recognised directly in equity 9,389 9,268 121 0
Total Other Comprehensive Income 80,532 75,572 4,786 174
of which attributable to non-controlling interests 26,512 26,512 0
of which attributable to shareholders of the parent company 54,020 49,060 4,960

Income Statement HHLA Subgroups

in € thousand; subgroup Port Logistics and subgroup Real Estate;
annex to the condensed notes
1–9 2012
Group
1–9 2012
Port Logistics
1–9 2012
Real Estate
1–9 2012
Consolidation
Revenue 847,160 826,730 24,174 - 3,744
Changes in inventories 1,899 1,903 - 4 0
Own work capitalised 6,189 6,145 0 44
Other operating income 37,137 33,575 4,232 - 670
Cost of materials - 277,333 - 272,390 - 4,945 2
Personnel expenses - 280,050 - 278,392 - 1,658 0
Other operating expenses - 101,183 - 96,539 - 9,012 4,368
Earnings before interest, taxes, depreciation and amortisation (EBITDA) 233,819 221,032 12,787 0
Depreciation and amortisation - 89,993 - 87,036 - 3,187 230
Earnings before interest and taxes (EBIT) 143,826 133,996 9,600 230
Earnings from associates accounted for using the equity method 178 178 0 0
Interest income 4,405 4,438 51 - 84
Interest expenses - 28,822 - 25,499 - 3,407 84
Other financial result 607 607 0 0
Financial result - 23,632 - 20,276 - 3,356 0
Earnings before tax (EBT) 120,194 113,720 6,244 230
Income tax - 32,148 - 30,080 - 2,013 - 55
Profit after tax 88,046 83,640 4,231 175
of which attributable to non-controlling interests 24,033 24,033 0
of which attributable to shareholders of the parent company 64,013 59,607 4,406
Earnings per share, basic, in € 0.88 0.85 1.63
Earnings per share, diluted, in € 0.88 0.85 1.63
in € thousand; subgroup Port Logistics and subgroup Real Estate;
annex to the condensed notes
1–9 2012
Group
1–9 2012
Port Logistics
1–9 2012
Real Estate
1–9 2012
Consolidation
Profit after tax 88,046 83,640 4,231 175
Components, which can not be transferred to Income Statement
Actuarial gains/losses - 56,910 - 55,899 - 1,011
Deferred taxes 18,399 18,073 326
Total - 38,511 - 37,826 - 685
Components, which can be transferred to Income Statement
Cash flow hedges - 90 - 90 0
Foreign currency translation differences 224 224 0
Deferred taxes - 43 - 43 0
Other 62 62 0
Total 153 153 0
Income and expense recognised directly in equity - 38,358 - 37,673 - 685 0
Total Other Comprehensive Income 49,688 45,967 3,546 175
of which attributable to non-controlling interests 23,989 23,989 0
of which attributable to shareholders of the parent company 25,699 21,978 3,721

Interim Financial Statements Income Statement HHLA Subgroups Statement of Other Comprehensive Income HHLA Subgroups 22

Income Statement HHLA Subgroups

in € thousand; subgroup Port Logistics and subgroup Real Estate;
annex to the condensed notes
7–9 2013
Group
7–9 2013
Port Logistics
7–9 2013
Real Estate
7–9 2013
Consolidation
Revenue 292,845 285,775 8,368 - 1,298
Changes in inventories - 336 - 340 4 0
Own work capitalised 1,486 1,478 0 8
Other operating income 5,573 4,550 1,231 - 208
Cost of materials - 96,669 - 95,015 - 1,654 0
Personnel expenses - 96,014 - 95,530 - 484 0
Other operating expenses - 36,061 - 34,561 - 2,998 1,498
Earnings before interest, taxes, depreciation and amortisation (EBITDA) 70,823 66,357 4,466 0
Depreciation and amortisation - 30,370 - 29,321 - 1,126 77
Earnings before interest and taxes (EBIT) 40,453 37,036 3,340 77
Earnings from associates accounted for using the equity method 89 89 0 0
Interest income 542 578 25 - 61
Interest expenses - 8,204 - 7,135 - 1,130 61
Other financial result 5 5 0 0
Financial result - 7,568 - 6,463 - 1,105 0
Earnings before tax (EBT) 32,885 30,573 2,235 77
Income tax - 8,273 - 7,510 - 745 - 18
Profit after tax 24,612 23,064 1,490 58
of which attributable to non-controlling interests 8,997 8,997 0
of which attributable to shareholders of the parent company 15,615 14,067 1,548
Earnings per share, basic, in € 0.21 0.20 0.57
Earnings per share, diluted, in € 0.21 0.20 0.57
in € thousand; subgroup Port Logistics and subgroup Real Estate;
annex to the condensed notes
7–9 2013
Group
7–9 2013
Port Logistics
7–9 2013
Real Estate
7–9 2013
Consolidation
Profit after tax 24,612 23,064 1,490 58
Components, which can not be transferred to Income Statement
Actuarial gains/losses 10,309 10,201 108
Deferred taxes - 3,339 - 3,304 - 35
Total 6,970 6,897 73
Components, which can be transferred to Income Statement
Cash flow hedges 58 58 0
Foreign currency translation differences - 2,785 - 2,785 0
Deferred taxes - 10 - 10 0
Other 70 70 0
Total - 2,667 - 2,667 0
Income and expense recognised directly in equity 4,303 4,230 73 0
Total Other Comprehensive Income 28,915 27,294 1,562 58
of which attributable to non-controlling interests 9,017 9,017 0
of which attributable to shareholders of the parent company 19,898 18,277 1,621

Income Statement HHLA Subgroups

in € thousand; subgroup Port Logistics and subgroup Real Estate;
annex to the condensed notes
7–9 2012
Group
7–9 2012
Port Logistics
7–9 2012
Real Estate
7–9 2012
Consolidation
Revenue 280,906 273,894 8,139 - 1,127
Changes in inventories 926 927 - 1 0
Own work capitalised 2,021 1,999 0 22
Other operating income 5,323 3,940 1,606 - 223
Cost of materials - 87,543 - 85,869 - 1,674 0
Personnel expenses - 91,233 - 90,722 - 511 0
Other operating expenses - 31,167 - 30,214 - 2,281 1,328
Earnings before interest, taxes, depreciation and amortisation (EBITDA) 79,233 73,955 5,278 0
Depreciation and amortisation - 29,602 - 28,616 - 1,063 77
Earnings before interest and taxes (EBIT) 49,631 45,339 4,215 77
Earnings from associates accounted for using the equity method - 106 - 106 0 0
Interest income 1,085 1,096 16 - 27
Interest expenses - 9,317 - 8,107 - 1,237 27
Other financial result 86 86 0 0
Financial result - 8,252 - 7,031 - 1,221 0
Earnings before tax (EBT) 41,379 38,308 2,994 77
Income tax - 11,334 - 10,329 - 987 - 18
Profit after tax 30,045 27,979 2,007 59
of which attributable to non-controlling interests 8,037 8,037 0
of which attributable to shareholders of the parent company 22,008 19,942 2,066
Earnings per share, basic, in € 0.30 0.28 0.76
Earnings per share, diluted, in € 0.30 0.28 0.76
in € thousand; subgroup Port Logistics and subgroup Real Estate;
annex to the condensed notes
7–9 2012
Group
7–9 2012
Port Logistics
7–9 2012
Real Estate
7–9 2012
Consolidation
Profit after tax 30,045 27,979 2,007 59
Components, which can not be transferred to Income Statement
Actuarial gains/losses - 18,804 - 18,452 - 352
Deferred taxes 6,092 5,929 114
Total - 12,712 - 12,523 - 238
Components, which can be transferred to Income Statement
Cash flow hedges - 31 - 31 0
Foreign currency translation differences - 1,900 - 1,900 0
Deferred taxes - 49 0 0
Other 89 89 0
Total - 1,891 - 1,842 0
Income and expense recognised directly in equity - 14,603 - 14,365 - 238 0
Total Other Comprehensive Income 15,442 13,614 1,769 59
of which attributable to non-controlling interests 8,051 8,051 0
of which attributable to shareholders of the parent company 7,391 5,563 1,828

Balance Sheet HHLA Group

in € thousand
Assets 30.09.2013 31.12.2012
Non-current assets
Intangible assets 82,576 82,642
Property, plant and equipment 979,955 1,002,307
Investment property 183,301 180,851
Associates accounted for using the equity method 4,053 2,039
Financial assets 13,031 13,935
Deferred taxes 33,825 42,826
1,296,741 1,324,600
Current assets
Inventories 23,715 21,743
Trade receivables 140,821 128,037
Receivables from related parties 67,181 24,928
Other financial receivables 3,942 2,382
Other assets 22,369 14,957
Income tax receivables 6,227 9,345
Cash, cash equivalents and short-term deposits 201,936 230,072
Non-current assets held for sale 0 12,442
466,191 443,906
1,762,932 1,768,506
Equity and liabilities
Equity
Subscribed capital 72,753 72,753
Subgroup Port Logistics 70,048 70,048
Subgroup Real Estate 2,705 2,705
Capital reserve 141,584 141,584
Subgroup Port Logistics 141,078 141,078
Subgroup Real Estate 506 506
Retained earnings 353,317 355,690
Subgroup Port Logistics 331,386 335,366
Subgroup Real Estate 21,931 20,324
Other comprehensive income 2,788 - 6,626
Subgroup Port Logistics 2,210 - 7,083
Subgroup Real Estate 578 457
Non-controlling interests 24,827 - 1,411
Subgroup Port Logistics 24,827 - 1,411
Subgroup Real Estate 0 0
595,269 561,990
Non-current liabilities
Pension provisions 369,475 384,235
Other non-current provisions 52,527 54,221
Non-current liabilities to related parties 106,922 114,089
Non-current financial liabilities 316,181 314,016
Deferred taxes 14,485 13,419
859,590 879,980
Current liabilities
Other current provisions 15,483 25,569
Trade liabilities 74,774 65,850
Current liabilities to related parties 73,903 70,580
Current financial liabilities 119,053 138,314
Other liabilities 23,981 21,765
Income tax liabilities 879 4,458
308,073 326,536
1,762,932 1,768,506

Balance Sheet HHLA Subgroups

in € thousand; subgroup Port Logistics and subgroup Real Estate; annex to the condensed notes

Assets 30.09.2013
Group
30.09.2013
Port Logistics
30.09.2013
Real Estate
30.09.2013
Consolidation
Non-current assets
Intangible assets 82,576 82,565 11 0
Property, plant and equipment 979,955 958,855 4,962 16,138
Investment property 183,301 51,488 161,183 - 29,370
Associates accounted for using the equity method 4,053 4,053 0 0
Financial assets 13,031 10,709 2,322 0
Deferred taxes 33,825 45,928 0 - 12,103
1,296,741 1,153,598 168,478 - 25,335
Current assets
Inventories 23,715 23,634 81 0
Trade receivables 140,821 140,193 628 0
Receivables from related parties 67,181 71,344 1,877 - 6,040
Other financial receivables 3,942 3,931 11 0
Other assets 22,369 22,038 331 0
Income tax receivables 6,227 6,936 4 - 713
Cash, cash equivalents and short-term deposits 201,936 184,172 17,764 0
Non-current assets held for sale 0 0 0 0
466,191 452,248 20,696 - 6,753
1,762,932 1,605,846 189,174 - 32,088
Equity and liabilities
Equity
Subscribed capital 72,753 70,048 2,705 0
Capital reserve 141,584 141,078 506 0
Retained earnings 353,317 331,386 31,881 - 9,950
Other comprehensive income 2,788 2,210 578 0
Non-controlling interests 24,827 24,827 0 0
595,269 569,549 35,670 - 9,950
Non-current liabilities
Pension provisions 369,475 363,041 6,434 0
Other non-current provisions 52,527 50,986 1,541 0
Non-current liabilities to related parties 106,922 106,922 0 0
Non-current financial liabilities 316,181 268,572 47,609 0
Deferred taxes 14,485 19,514 10,356 - 15,385
859,590 809,035 65,940 - 15,385
Current liabilities
Other current provisions 15,483 14,810 673 0
Trade liabilities 74,774 69,581 5,193 0
Current liabilities to related parties 73,903 5,056 74,887 - 6,040
Current financial liabilities 119,053 113,439 5,614 0
Other liabilities 23,981 23,713 268 0
Income tax liabilities 879 663 929 - 713
308,073 227,262 87,564 - 6,753
1,762,932 1,605,846 189,174 - 32,088

Balance Sheet HHLA Subgroups

in € thousand; subgroup Port Logistics and subgroup Real Estate; annex to the condensed notes

Assets 31.12.2012
Group
31.12.2012
Port Logistics
31.12.2012
Real Estate
31.12.2012
Consolidation
Non-current assets
Intangible assets 82,642 82,639 3 0
Property, plant and equipment 1,002,307 980,772 5,068 16,467
Investment property 180,851 55,597 155,183 - 29,929
Associates accounted for using the equity method 2,039 2,039 0 0
Financial assets 13,935 11,937 1,998 0
Deferred taxes 42,826 51,934 0 - 9,108
1,324,600 1,184,918 162,252 - 22,570
Current assets
Inventories 21,743 21,673 70 0
Trade receivables 128,037 127,377 660 0
Receivables from related parties 24,928 28,873 2,472 - 6,417
Other financial receivables 2,382 2,377 5 0
Other assets 14,957 14,777 180 0
Income tax receivables 9,345 9,505 0 - 160
Cash, cash equivalents and short-term deposits 230,072 229,614 458 0
Non-current assets held for sale 12,442 12,442 0 0
443,906 446,638 3,845 - 6,577
1,768,506 1,631,556 166,097 - 29,147
Equity and liabilities
Equity
Subscribed capital 72,753 70,048 2,705 0
Capital reserve 141,584 141,078 506 0
Retained earnings 355,690 335,366 30,449 - 10,125
Other comprehensive income - 6,626 - 7,083 457 0
Non-controlling interests - 1,411 - 1,411 0 0
561,990 537,998 34,116 - 10,125
Non-current liabilities
Pension provisions 384,235 377,591 6,644 0
Other non-current provisions 54,221 52,720 1,501 0
Non-current liabilities to related parties 114,089 114,089 0 0
Non-current financial liabilities 314,016 284,618 29,398 0
Deferred taxes 13,419 16,507 9,357 - 12,445
879,980 845,525 46,900 - 12,445
Current liabilities
Other current provisions 25,569 21,364 4,205 0
Trade liabilities 65,850 61,942 3,908 0
Current liabilities to related parties 70,580 5,239 71,758 - 6,417
Current financial liabilities 138,314 133,567 4,747 0
Other liabilities 21,765 21,463 302 0
Income tax liabilities 4,458 4,458 160 - 160
326,536 248,033 85,080 - 6,577
1,768,506 1,631,556 166,097 - 29,147

Cash Flow Statement HHLA Group

in € thousand 1–9 2013 1–9 2012
1. Cash flow from operating activities
Earnings before interest and taxes (EBIT) 121,434 143,826
Depreciation, amortisation, impairment and reversals on non-financial non-current assets 91,280 89,943
Decrease in provisions - 22,498 - 21,754
Result arising from the disposal of non-current assets - 5,536 - 286
Increase in inventories, trade receivables and other assets not attributable to investing or financing activities - 23,775 - 1,040
Increase in trade payables and other liabilities not attributable to investing or financing activities 21,078 16,372
Interest received 2,408 5,194
Interest paid - 12,544 - 15,420
Income tax paid - 22,497 - 30,519
Net proceeds from the acquisition/disposal of interests in consolidated companies 0 - 17,318
Exchange rate and other effects - 461 - 233
Cash flow from operating activities 148,889 168,765
2. Cash flow from investing activities
Proceeds from disposal of intangible assets and property, plant and equipment 1,420 385
Proceeds from disposal of non-current assets held for sale 17,672 0
Payments for investments in property, plant and equipment and investment property - 70,719 - 110,421
Payments for investments in intangible assets - 7,274 - 6,859
Proceeds from disposal of non-current financial assets 2 175
Payments for investments in non-current financial assets - 2,617 - 1,225
Proceeds from the disposal of interests in consolidated companies
and other business units (including funds sold)
119 14,720
Payments for acquiring interests in consolidated companies
and other business units (including funds purchased)
- 231 - 2,087
Proceeds from and payments for short-term deposits 10,000 - 10,000
Cash flow from investing activities - 51,628 - 115,312
3. Cash flow from financing activities
Proceeds from contributions to equity 0 1,930
Payments for increasing interests in fully consolidated companies 0 - 91,000
Dividends paid to shareholders of the parent company - 48,777 - 48,236
Dividends/settlement obligation paid to non-controlling interests - 28,199 - 14,898
Redemption of lease liabilities - 5,011 - 3,625
Proceeds from the issuance of (financial) loans 39,174 5,000
Payments for the redemption of (financial) loans - 31,558 - 20,755
Cash flow from financing activities - 74,371 - 171,584
4. Financial funds at the end of the period
Change in financial funds (subtotals 1. –  3.) 22,890 - 118,131
Change in financial funds due to exchange rates 277 - 107
Financial funds at the beginning of the period 188,872 294,803
Financial funds at the end of the period 212,039 176,565

Cash Flow Statement HHLA Subgroups

in € thousand; subgroup Port Logistics and subgroup Real Estate;
annex to the condensed notes
1–9 2013
Group
1–9 2013
Port Logistics
1–9 2013
Real Estate
1–9 2013
Consolidation
1. Cash flow from operating activities
Earnings before interest and taxes (EBIT) 121,434 110,650 10,554 230
Depreciation, amortisation, impairment and reversals
on non-financial non-current assets 91,280 88,189 3,321 - 230
Decrease in provisions - 22,498 - 18,785 - 3,713
Result arising from the disposal of non-current assets - 5,536 - 5,338 - 198
Change in inventories, trade receivables and other assets
not attributable to investing or financing activities
- 23,775 - 23,934 136 23
Increase in trade payables and other liabilities not attributable
to investing or financing activities
21,078 16,463 4,638 - 23
Interest received 2,408 2,446 91 - 129
Interest paid - 12,544 - 9,049 - 3,624 129
Income tax paid - 22,497 - 21,888 - 609
Net proceeds from the acquisition/disposal of interests
in consolidated companies
0 0 0
Exchange rate and other effects - 461 - 461 0
Cash flow from operating activities 148,889 138,293 10,596 0
2. Cash flow from investing activities
Proceeds from disposal of intangible assets and property,
plant and equipment
1,420 1,024 396
Proceeds from disposal of non-current assets held for sale 17,672 17,672 0
Payments for investments in property, plant and equipment
and investment property - 70,719 - 61,308 - 9,411
Payments for investments in intangible assets - 7,274 - 7,262 - 12
Proceeds from disposal of non-current financial assets 2 2 0
Payments for investments in non-current financial assets - 2,617 - 2,617 0
Proceeds from the disposal of interests in consolidated companies
and other business units (including funds sold)
119 119 0
Payments for acquiring interests in consolidated companies
and other business units (including funds purchased)
- 231 - 231 0
Proceeds from short-term deposits 10,000 10,000 0
Cash flow from investing activities - 51,628 - 42,601 - 9,027 0
3. Cash flow from financing activities
Proceeds from contributions to equity 0 0 0
Payments for increasing interests in fully consolidated companies 0 0 0
Dividends paid to shareholders of the parent company - 48,777 - 45,532 - 3,245
Dividends/settlement obligation paid to non-controlling interests - 28,199 - 28,199 0
Redemption of lease liabilities - 5,011 - 5,011 0
Proceeds from the issuance of (financial) loans 39,174 16,773 22,401
Payments for the redemption of (financial) loans - 31,558 - 28,539 - 3,019
Cash flow from financing activities - 74,371 - 90,508 16,137 0
4. Financial funds at the end of the period
Change in financial funds (subtotals 1. –  3.) 22,890 5,184 17,706 0
Change in financial funds due to exchange rates 277 277 0
Financial funds at the beginning of the period 188,872 188,914 - 42
Financial funds at the end of the period 212,039 194,375 17,664 0

Cash Flow Statement HHLA Subgroups

in € thousand; subgroup Port Logistics and subgroup Real Estate;
annex to the condensed notes
1–9 2012
Group
1–9 2012
Port Logistics
1–9 2012
Real Estate
1–9 2012
Consolidation
1. Cash flow from operating activities
Earnings before interest and taxes (EBIT) 143,826 133,996 9,600 230
Depreciation, amortisation, impairment and reversals
on non-financial non-current assets
89,943 86,986 3,187 - 230
Change in provisions - 21,754 - 22,343 589
Result arising from the disposal of non-current assets - 286 - 286 0
Increase in inventories, trade receivables and other assets
not attributable to investing or financing activities
- 1,040 - 706 - 132 - 202
Increase in trade payables and other liabilities not attributable
to investing or financing activities
16,372 11,383 4,787 202
Interest received 5,194 5,227 51 - 84
Interest paid - 15,420 - 12,005 - 3,499 84
Income tax paid - 30,519 - 30,057 - 462
Net proceeds from the acquisition/disposal of interests
in consolidated companies
- 17,318 - 17,318 0
Exchange rate and other effects - 233 - 233 0
Cash flow from operating activities 168,765 154,644 14,121 0
2. Cash flow from investing activities
Proceeds from disposal of intangible assets and property,
plant and equipment
385 385 0
Payments for investments in property, plant and equipment
and investment property
- 110,421 - 101,487 - 8,934
Payments for investments in intangible assets - 6,859 - 6,859 0
Proceeds from disposal of non-current financial assets 175 175 0
Payments for investments in non-current financial assets - 1,225 - 1,225 0
Proceeds from the disposal of interests in consolidated companies
and other business units (including funds sold)
14,720 14,720 0
Payments for acquiring interests in consolidated companies
and other business units (including funds purchased)
- 2,087 - 2,087 0
Payments for short-term deposits - 10,000 - 10,000 0
Cash flow from investing activities - 115,312 - 106,378 - 8,934 0
3. Cash flow from financing activities
Proceeds from contributions to equity 1,930 1,930 0
Payments for increasing interests in fully consolidated companies - 91,000 - 91,000 0
Dividends paid to shareholders of the parent company - 48,236 - 45,531 - 2,705
Dividends/settlement obligation paid to non-controlling interests - 14,898 - 14,898 0
Redemption of lease liabilities - 3,625 - 3,625 0
Proceeds from the issuance of (financial) loans 5,000 0 5,000
Payments for the redemption of (financial) loans - 20,755 - 18,402 - 2,353
Cash flow from financing activities - 171,584 - 171,526 - 58 0
4. Financial funds at the end of the period
Change in financial funds (subtotals 1. –  3.) - 118,131 - 123,260 5,129 0
Change in financial funds due to exchange rates - 107 - 107 0
Financial funds at the beginning of the period 294,803 303,575 - 8,772
Financial funds at the end of the period 176,565 180,208 - 3,643 0

Segment Report HHLA Group

in € thousand; business segments;

annex to the condensed notes Subgroup Port Logistics
1–9 2013 Container Intermodal Logistics
Segment revenue
Segment revenue from non-affiliated third parties 536,226 231,827 63,198
Inter-segment revenue 1,851 1,070 5,535
Total segment revenue 538,077 232,898 68,732
Earnings
EBITDA 169,705 34,622 7,479
EBITDA margin 31.5  % 14.9 % 10.9 %
EBIT 103,420 19,872 5,161
EBIT margin 19.2 % 8.5 % 7.5 %
Segment assets 916,013 292,266 37,700
Other segment information
Investments
Property, plant and equipment
and investment property
49,384 9,730 2,797
Intangible assets 5,066 150 41
Depreciation of property, plant
and equipment and investment property
59,717 14,489 2,173
Amortisation of intangible assets 6,567 261 146
Non-cash items 13,061 1,074 2,314
Container throughput in thousand TEU 5,681
Container transport in thousand TEU 883
1–9 2012
Segment revenue
Segment revenue from non-affiliated third parties 521,535 224,177 63,504
Inter-segment revenue 1,697 1,310 5,767
Total segment revenue 523,232 225,487 69,271
Earnings
EBITDA 174,836 48,233 7,458
EBITDA margin 33.4 % 21.4 % 10.8 %
EBIT 107,684 35,186 4,702
EBIT margin 20.6 % 15.6 % 6.8 %
Segment assets 926,730 282,574 52,345
Other segment information
Investments
Property, plant and equipment
and investment property
95,911 35,218 2,795
Intangible assets 5,788 775 57
Depreciation of property, plant
and equipment and investment property
61,183 12,662 2,606
Amortisation of intangible assets 5,968 385 150
Non-cash items 7,541 - 6,432 1,697
Container throughput in thousand TEU 5,405
Container transport1 in thousand TEU
949

The transport volume was fully consolidated.

Consolidation and
reconciliation with Group
Total Subgroup Real Estate
Real Estate Holding/Other
868,017 0 868,017 22,829 13,938
- 94,668 94,668 1,955 84,257
962,686 24,784 98,194
212,713 - 111 212,824 13,875 - 12,856
56.0 % - 13.1 %
121,434 545 120,889 10,553 - 18,117
42.6 % - 18.4 %
1,762,932 264,714 1,498,218 171,406 80,833
74,515 0 74,515 9,411 3,192
- 111 7,385 11 2,117
- 312 84,261 3,318 4,564
- 343 7,673 3 697
3 29,419 931 12,039
847,160 0 847,160 22,245 15,700
- 91,913 91,913 1,929 81,210
939,073 24,174 96,910
9 233,811 12,786 - 9,502
52.9 % - 9.8 %
862 142,964 9,599 - 14,207
39.7 % - 14.7 %
232,814 1,503,989 164,692 77,648
233,819
143,826
1,736,803
145,675
0 145,675 8,933 2,818
- 128 6,987 0 366
- 315
- 539
83,866
6,981
3,182
5
4,233
473

Statement of Changes in Equity HHLA Group

in € thousand

Parent company
Subscribed capital Capital reserve Retained
consolidated
earnings
Reserve for foreign
currency translation
A division S division A division S division
Balance as of 31.12.2011 69,975 2,705 139,222 506 385,124 - 13,547
Dividends - 48,236
Contributions to equity 74 1,856
Change of consolidation method
Acquisition/disposal of interests
in consolidated companies
- 54,324
Total comprehensive income 64,013 150
Other changes
Balance as of 30.09.2012 70,048 2,705 141,078 506 346,577 - 13,397
Balance as of 31.12.2012 70,048 2,705 141,078 506 355,690 - 14,967
Dividends - 48,777
Total comprehensive income 44,605 - 2,119
Other changes 1,799
Balance as of 30.09.2013 70,048 2,705 141,078 506 353,317 - 17,086
Total
Non-controlling
consolidated
interests
equity
Parent
company
interests
Other comprehensive income
Other Deferred taxes on
changes recognised
directly in equity
Actuarial
gains/losses
Cash flow
hedges
4,258
644,662
640,404 11,498 - 21,443 67,682 - 1,318
- 461
- 48,697
- 48,236
0
1,930
1,930
- 4,029
- 3,673
356 - 169 - 18 543
- 36,399
- 90,709
- 54,310 - 85 14 85
23,989
49,688
25,699 54 18,302 - 56,732 - 90
0 4 4
- 12,641
553,203
565,844 11,471 - 3,295 11,017 - 865
- 1,411
561,990
563,401 11,552 1,475 - 3,868 - 818
- 290
- 49,067
- 48,777
26,512
80,532
54,020 - 42 - 5,429 16,738 267
15
1,813
1,798 - 1
24,827
595,269
570,442 11,509 - 3,954 12,870 - 551

Interim Financial Statements 34

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

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

in € thousand; annex to the condensed notes

Parent company
Subscribed capital Capital reserve Retained
consolidated
earnings
Reserve for
foreign currency
translation
Balance as of 31.12.2011 69,975 139,222 367,967 - 13,547
Dividends - 45,532
Contributions to equity 74 1,856
Change of consolidation method
Acquisition/disposal of interests
in consolidated companies
- 54,324
Total comprehensive income
subgroup
59,607 150
Other changes
Balance as of 30.09.2012 70,048 141,078 327,718 - 13,397
Balance as of 31.12.2012 70,048 141,078 335,366 - 14,967
Dividends - 45,532
Total comprehensive income
subgroup
39,766 - 2,119
Other changes 1,786
Balance as of 30.09.2013 70,048 141,078 331,386 - 17,086

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

in € thousand; annex to the condensed notes

Balance as of 31.12.2011
Dividends
Total comprehensive income subgroup
Balance as of 30.09.2012
Plus income statement consolidation effect
Less balance sheet consolidation effect
Total effects of consolidation
Balance as of 30.09.2012
Balance as of 31.12.2012
Dividends
Total comprehensive income subgroup
Other changes
Balance as of 30.09.2013
Plus income statement consolidation effect
Less balance sheet consolidation effect
Total effects of consolidation
Balance as of 30.09.2013

Interim Financial Statements Statement of Changes in Equity HHLA Subgroup Port Logistics (A division) Statement of Changes in Equity HHLA Subgroup Real Estate (S division) 35

Total subgroup
consolidated
equity
Non-controlling
interests
Parent
company
interests
Other comprehensive income
Other Deferred taxes on
changes recognised
directly in equity
Actuarial
gains/losses
Cash flow
hedges
623,037 4,258 618,779 11,498 - 20,845 65,827 - 1,318
- 45,992 - 461 - 45,532
1,930 0 1,930
- 3,673 - 4,029 355 - 169 - 18 543
- 90,709 - 36,399 - 54,310 - 85 14 85
45,967 23,989 21,978 54 17,978 - 55,721 - 90
4 0 4 4
530,562 - 12,641 543,203 11,471 - 3,023 10,173 - 865
537,998 - 1,411 539,409 11,552 1,693 - 4,543 - 818
- 45,822 - 290 - 45,532
75,573 26,512 49,060 - 42 - 5,371 16,560 267
1,800 15 1,786 - 1
569,549 24,826 544,723 11,509 - 3,678 12,017 - 551

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
31,983 - 597 1,854 27,515 506 2,705
- 2,705 - 2,705
3,546 326 - 1,011 4,231
32,824 - 271 843 29,042 506 2,705
175 175
- 10,358 - 10,358
- 10,183 - 10,183
22,641 - 271 843 18,858 506 2,705
34,117 - 217 675 30,449 506 2,705
- 3,245 - 3,245
4,784 - 58 178 4,664
14 14
35,670 - 275 853 31,881 506 2,705
175 175
- 10,125 - 10,125
- 9,950 - 9,950
25,720 - 275 853 21,931 506 2,705

Notes to the Condensed Interim Consolidated Financial Statements Basic Information on the Group Significant Events in the Reporting Period Consolidation, Accounting and Valuation Principles Purchase and Sale of Shares in Subsidiaries 36

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.

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

In January 2013, non-current assets held for sale were sold for a final accounting gain of around € 6 million in the course of restructuring the Logistics segment. Restructuring expenses in project and contract logistics partly offset this positive one-off effect.

There was a change among the employee representatives on HHLA's Supervisory Board. Wolfgang Rose resigned his seat on the Supervisory Board with effect from 14 June 2013. By order of Hamburg Local Court dated 24 July 2013, Wolfgang Abel was appointed to the Supervisory Board as his successor. Wolfgang Abel is a trade union secretary and an executive at ver.di Hamburg.

In August 2013, HHLA Intermodal GmbH, Hamburg, was retroactively merged with Hamburger Hafen und Logistik Aktiengesellschaft, Hamburg, as of 1 January 2013. This had no effect on the present Interim Consolidated Financial statements. The application to enter the merger in the commercial register was made on 28 August 2013.

Apart from this, no other significant events occurred in the reporting period.

3. Consolidation, Accounting and Valuation Principles

3.1 Basis for Preparation of the Financial Statements The Condensed Interim Consolidated Financial Statements for the period from 1 January to 30 September 2013 were prepared in compliance with the rules of IAS 34 Interim Financial Reporting.

The IFRS requirements which 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 2012.

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 2012.

In addition, the company is applying the following rules for the first time as of 1 January 2013:

  • I Amendments to IAS 1: Presentation of Financial Statements Presentation of Items of Other Comprehensive Income
  • I Amendments to IAS 19: Employee Benefits

There were no other effects on the Condensed Interim Consolidated Financial Statements.

4. Purchase and Sale of Shares in Subsidiaries

No significant shares in subsidiaries were purchased or sold in the first three quarters of 2013.

5. Earnings per Share

The capital increase from Authorised Capital I completed in April 2012 led to an increase of 73,508 in the number of common shares in circulation. This change is included in the following tables and had no significant effects.

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

1–9 2013 1– 9   2012
Net profit attributable to shareholders of
the parent company in € thousand
44,605 64,013
Number of common shares in circulation
(weighted average)
72,753,334 72,722,751
Basic earnings per share in € 0.61 0.88

The basic earnings per share were calculated for the Port Logistics subgroup as follows:

1–9 2013 1– 9   2012
39,766 59,607
70,048,834 70,018,251
0.57 0.85

The basic earnings per share were calculated for the Real Estate subgroup as follows:

1–9 2013 1– 9   2012
Net profit attributable to shareholders of
the parent company in € thousand
4,839 4,406
Number of common shares in circulation 2,704,500 2,704,500
Basic earnings per share in € 1.79 1.63

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

6. Dividends Paid

At the Annual General Meeting held on 13 June 2013, shareholders approved the proposal by the Executive Board and Supervisory Board to distribute a dividend of € 0.65 per share to shareholders of the Port Logistics subgroup and of € 1.20 per share to shareholders of the Real Estate subgroup. The dividend of € 48,777 thousand was paid accordingly on 14 June 2013.

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 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 2012.

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 2012.

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 the 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.

Notes to the Condensed Interim Consolidated Financial Statements Segment Reporting Equity Pension Provisions Investments Events after the Balance Sheet Date 38

Reconciliation of the Segment Variable EBIT

to Earnings before tax (EBT)
------------------------------ -- --
in € thousand 1–9 2013 1–9 2012
Total segment earnings (EBIT) 120,889 142,964
Elimination of business relations between
segments and the subgroups
545 862
Group (EBIT) 121,434 143,826
Earnings from associates accounted for
using the equity method
- 334 178
Net interest income - 23,687 - 24,417
Other financial result 409 607
Earnings before tax (EBT) 97,822 120,194

8. Equity

The breakdown and development of HHLA's equity for the period from 1 January to 30 September of the years 2013 and 2012 are presented in the statement of changes in equity.

9. Pension Provisions

The calculation of pension provisions as of 30 September 2013 was based on an interest rate of 3.5 % (31 December 2012: 3.25 %; 30 September 2012: 3.5 %). The change in the reporting period resulted from adjustments to the interest rate as well as changes to other actuarial parameters.

Consequently, the actuarial gains or losses offset in equity developed as follows:

in € thousand 2013 2012
Cumulative actuarial gains (+)/losses (-)
as of 01.01.
- 3,966 67,019
Change as of 01.01. due to a change in
the consolidation method
0 - 35
Change due to the deconsolidation of a
subsidiary
0 85
Change during the financial year due to a
change in interest rate
10,308 - 56,910
Change during the financial year due to
changes in other parameters
6,442 0
Cumulative actuarial gains as of 30.09. 12,784 10,159

10. Investments

As of 30 September 2013, total capital expenditure throughout the HHLA Group amounted to € 81.8 million.

The largest investments made until the end of the third quarter of 2013 were in the Container segment. HHLA invested in terminal expansion, handling equipment and locomotives at its sites in Germany, the Czech Republic and Ukraine.

As of 30 September 2013, the Container segment accounted for the bulk of investment commitments at € 40.1 million.

11. Events after the Balance Sheet Date

There were no notable events after the balance sheet date -30 September 2013.

Hamburg, 13 November 2013

Hamburger Hafen und Logistik Aktiengesellschaft

The Executive Board

Klaus-Dieter Peters Dr. Stefan Behn

Heinz Brandt Dr. Roland Lappin

HHLA interim report 1–9|2013

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 assets, liabilities, financial position and profit or loss 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 remaining months of the financial year.

Hamburg, 13 November 2013

Hamburger Hafen und Logistik Aktiengesellschaft

The Executive Board

Klaus-Dieter Peters Dr. Stefan Behn

Financial Calendar Imprint

27 March 2014 Annual Report 2013

14 May 2014 Interim Report January – March 2014

19 June 2014 Annual General Meeting

14 August 2014 Interim Report January – June 2014

13 November 2014 Interim Report January – September 2014 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 Kirchhoff Consult AG

Note

For specialist terminology and financial terms see the Annual Report 2012, page 218 et seq.

This document contains forward-looking statements which are based on the current estimates and assumptions by the corporate management of Hamburger Hafen und Logistik Aktiengesellschaft (HHLA). Forward-looking statements are characterised by the use of words such as expect, intend, plan, predict, assume, believe, estimate, anticipate and similar formulations. Such statements are not to be understood as in any way guaranteeing that those expectations will turn out to be accurate. Future performance and the results actually achieved by HHLA and its affiliated companies depend on a number of risks and uncertainties and may therefore differ materially from the forward-looking statements. Many of these factors are outside the control of HHLA and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. HHLA neither plans nor undertakes to update any forward-looking statements.

Hamburger Hafen und Logistik Aktiengesellschaft Bei St. Annen 1, 20457 Hamburg, Germany, Phone: +49-40-3088-0, Fax: +49-40-3088-3355, www.hhla.de, [email protected]

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