Hamburger Hafen und Logistik AG

Quarterly Report • Nov 17, 2010

hamburger hafen und logistik Aktiengesellschaft Interim Report January to September 2010 Q3

HHLA key figures

		HHLA Group
		1-9 2010	1-9 2009	Change
Revenue and earnings
Revenue	€ million	791.9	746.0	6.2%
EBITDA	€ million	222.6	215.1	3.5%
EBITDA margin	%	28.1	28.8	- 0.7pp
EBIT	€ million	141.5	130.0	8.9%
EBIT margin	%	17.9	17.4	0.5pp
EBIT from continuing activities 1	€ million	139.6	143.6	- 2.8%
EBIT margin from continuing activities	%	17.6	19.3	- 1.7pp
Profit after tax	€ million	82.1	72.1	13.9%
Profit after tax and minority interests	€ million	55.5	45.6	21.7%
Balance sheet and cash flow statement
Total assets at the end of the quarter	€ million	1,659.2	1,547.0	7.3%
Equity at the end of the quarter	€ million	664.4	648.8	2.4%
Equity ratio at the end of the quarter	%	40.0	41.9	- 1.9pp
Cash flow from operating activities	€ million	164.4	146.9	11.9%
Investments	€ million	102.5	128.7	- 20.3%
Employees
Employees at the end of the quarter	#	4,711	4,778	- 1.4%
Performance data
Container throughput	thousand TEU	4,252	3,685	15.4%
Container transport 2	thousand TEU	1,261	1,112	13.4%

		Subgroup Port Logistics3, 4			Subgroup Real Estate3, 5
		1-9 2010	1-9 2009	Change	1-9 2010	1-9 2009	Change
Revenue	million€	770.0	724.8	6.2%	25.3	24.8	1.9%
EBITDA	million€	209.5	201.7	3.9%	13.1	13.4	- 2.0%
EBITDA margin	%	27.2	27.8	- 0.6pp	51.9	54.0	- 2.1pp
EBIT	million€	131.3	119.5	9.9%	10.0	10.3	- 2.8%
EBIT margin	%	17.1	16.5	0.6pp	39.7	41.6	- 1.9pp
EBIT from continuing activities 1	million€	129.3	133.1	- 2.8%
EBIT margin from continuing activities	%	16.8	18.5	- 1.7pp
Profit after tax and minority interests	million€	50.8	40.9	24.2%	4.4	4.4	0.1%
Earnings per share 6	€/share	0.73	0.59	23.7%	1.71	1.71	0.0%

1EBIT without one-off restructuring effects of CTL (previous year: CTL and combisped) 2The transport volume was fully consolidated 3Before consolidation between subgroups 4 Listed A shares 5Non-listed S shares 6Basic and diluted

Contents

The share	4
Foreword	5

Interim management report

Economic environment	6
Group performance	7
Container segment	10
Intermodal segment	11
Logistics segment	12
Real Estate segment	13
Employees	14
Financial position	14
Transactions with respect to related parties	16
Events after the balance sheet date	16
Risk and opportunity report	16
Business forecast	17

Interim financial statements

Income statements and statements of comprehensive income	21
Balance sheets	26
Cash flow statements	29
Segment report	32
Statements of changes in equity	34
Notes to the interim consolidated financial statements	37
Assurance of the legal representatives	42
Financial calendar	43
Imprint	43

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 characterized 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.

the share

Compared with the subdued performance of the first half-year, international stock markets were considerably more upbeat at the beginning of the third quarter. Share prices were buoy‑ ed by positive economic data, rising company profits and diminishing concerns about the level of public debt in the eurozone. Doubts about the stability of the economic recovery only began to resurface when disappointing growth figures were announced for the US, as well as weaker employment and real estate statistics. As a result, share prices came under strong pressure at times in August. Talk of further stimulus measures in the USA coupled

S tock market data

30.06.2010 - 30.09.2010

	HHLA	MDAX	DAX
Change	+ 8.6%	+ 9.5%	+ 4.4%
Closing 30.06.2010	26.30€	8,009	5,966
Closing 30.09.2010	28.55€	8,768	6,229
High	29.50€	8,828	6,352
Low	26.00€	7,811	5,816

Performance

CLOSINGS IN %, INDEX =100

Source: Datastream

with encouraging signals on consumer and business confidence in Europe, however, helped restore investor confidence in September fuelling a further strong upwards trend. The leading German index DAX closed on 30 September at 6,229 points, a good 4 % over its closing level for the second quarter. The MDAX closed 9 % up at 8,768 points.

From July to September, the performance of the HHLA share was generally in line with the overall stock market trend. The share price picked up sharply in the first half of the quarter and consistently outperformed the broad-based market indices. Positive company news, such as the contract acquired for an important Asia–Europe service from the shipping companies CMA CGM and Maersk, gave the share price a further boost. As a result, the HHLA share reached its high for the third quarter at € 29.50 on 10 August. Renewed economic fears meant that it subsequently lost ground, almost in parallel to the relevant indices. In spite of significant volume growth and an upgraded forecast, even the publication of HHLA's half-year report on 13 August did not initially reverse the general downward trend. It was not until September, with lower trading volumes and a more

upbeat capital market, that the HHLA share succeeded in making further substantial gains. Reinforced by the addition of further feeder services and the announcement that short-time working hours would be ended in view of consistent volume gains, the HHLA share closed on 30 September at € 28.55, almost 9 % above the closing price of the previous quarter. This corresponds to a market capitalization for the publicly listed Port Logistics subgroup of € 1.98 billion.

Numerous investor meetings were held in continental Europe and the UK during the third quarter. HHLA also took part in major investor conferences in London, Frankfurt and Munich. The share was once again predominantly traded by investors in Germany, the UK and the USA, where a significant portion of the free float is still held. HHLA's broad coverage by financial analysts was again highly appreciated, with the majority of analysts rating the share a buy or hold.

Forewor d

Ladies and Gentlemen,

The strong economic recovery underway since the spring of 2010 continued in the third quarter. Throughput and transport volumes, revenue and earnings for Hamburger Hafen und Logistik AG (HHLA) again increased strongly in comparison with last year. Overall, after the first nine months of the 2010 financial year, HHLA has returned to strong year-onyear growth in revenue and earnings. This has also further improved our prospects. For the full year 2010, we now expect revenue above € 1 billion and an EBIT in the region of € 180 million.

Though the growth rate for the world economy and global trade is expected to slow down in the fourth quarter, this is not surprising given the usual seasonal trends, the expiry of government stimulus programmes and the diminishing influence of rebound business, for example the replenishment of inventories. Despite the ongoing risk of relapse from dangers such as high national debt or currency imbalances, we still believe that we are currently witnessing a stabilization and normalization of the long-term growth trend. Our strategy and our programme of measures to master the crisis have proven to be effective. To take just a few examples:

• the success of our training programme, which enabled our employees to acquire new skills and additional professional qualifications during the crisis,
• the success of our cost-cutting measures,
• our new mega-ship berth at the Container Terminal Burchardkai, where a new Far East service with the largest container ships currently afloat has been handled since August 2010,
• the successful return of feeder services to Hamburg from our competitors and
• the confirmation of our intermodal strategy with high growth rates for rail transport to southeast Europe.

At the same time, we have launched key projects for the future development of our company. HHLA is currently in the process of successively transferring the successful production model of its south-east European transport routes, with their own high-performance inland terminals and efficient shuttle services, to Poland and Germany. In pursuit of our regional strategy, we secured a long-term contract in the third quarter of 2010 to operate the container terminal in Odessa and adopted a multi-phase, demand-oriented expansion programme for this site.

On this basis, we will continue to pursue our ambitious objectives: sustainable economic success, high quality and high performance for our customers, and responsibility for our employees, society and the environment.

Klaus-Dieter Peters Chairman of the Executive Board

INTERIM MANAGEMENT REPORT

• I Double-digit growth rates in throughput and transport
• I Revenue climbs to € 791.9 million
• I Operating result (EBIT) improves to € 141.5 million
• I Earnings forecast raised

Economic environment

Macroeconomic development

The unexpectedly swift recovery of the global economy has stabilized over the course of 2010. According to estimates of the International Monetary Fund (IMF), global gross do-

Revitalization of the Baltic Sea traffic: feeder ship at CTB.

mestic product (GDP) rose by more than 5 % in the first half of the year. In its outlook from October 2010, the IMF now expects global GDP growth of nearly 5 % for the full year.

This positive trend is being driven above all by dynamic growth in emerging markets, such as China, India and Brazil. Whereas the cyclical upturn has been weakening gradually since spring in the major industrialized nations, such as the USA and Japan, industrial output in Asia is almost back to the growth rates of previous years. Although the rapid economic expansion of China has slowed somewhat during the year, it is estimated that GDP growth still reached almost 10 % in the third quarter of 2010. And despite the slightly slower growth rates reported for Chinese exports, year-on-

year growth in the period January to September 2010 still totalled 38 %.

The upswing in the German economy remains firm. In the second quarter of 2010, GDP rose by 4 % and growth is likely to have been equally strong in the third quarter. Exports were up 19 % on the previous year in the period January to August 2010. The recovery has now gained a much broader footing. Whereas exports and increasing levels of restocking were responsible for the upturn at the beginning of the year, consumer spending and corporate capital expenditure are now on the rise as well.

Sector development

After setting a new record in May 2010, global container throughput has continued to grow. Thanks to this increase in traffic, there was a further fall in the number of idle container ships. At the end of August, some 2 % of global container shipping capacity was idle, compared to over 10 % at the beginning of the year. After a strong recovery, freight rates recently weakened slightly on some important routes.

Between Asia and Europe, maritime container transport volumes climbed by around 22 % year on year between January and July 2010, with a growth rate of 7 % in the opposite direction. According to preliminary estimates, the year-on-year growth rates of Chinese ports fell from around 20 % for the first half of 2010 to around 17 % in the third quarter. The terminals in St Petersburg, Russia, handled some 35 % more containers in the first half of 2010 than a year before, with available figures also indicating a slight decline in the growth rate in the third quarter. The international seaports in northern Europe registered a rise in container throughput of 13 % in the first half of 2010.

In comparison with the northern and western European hinterland of the Benelux ports, the economic recovery in central and eastern Europe was somewhat delayed. This is also clearly visible in the handling figures of HHLA's container terminals in Hamburg and Odessa, where the growth rate for container volumes has continued to accelerate over the course of the year to date. Volumes increased by 8.9 % in the first half of 2010, but for the first nine months the growth rate was as high as 15.4 %. Growth at HHLA's terminals in Hamburg was driven primarily by the shipping regions Far East, up 19.6 %, and South America, up 20.7 %, as well as for the first time the central and eastern European Baltic-coast countries with growth of 18.8 %.

Key figures		1-9 2010	1-9 2009	Change
Revenue	€million	791.9	746.0	6.2 %
EBITDA	€million	222.6	215.1	3.5 %
EBITDA margin	%	28.1	28.8	- 0.7 pp
EBIT	€million	141.5	130.0	8.9 %
EBIT margin	%	17.9	17.4	0.5 pp
EBIT from continuing activities¹	€million	139.6	143.6	- 2.8 %
EBIT margin from cont. activities	%	17.6	19.3	- 1.7 pp
Profit after tax and minority interests	€million	55.5	45.6	21.7 %
ROCE	%	14.3	15.2	- 0.9 pp

Group performance

¹ EBIT without one-off restructuring effects of CTL (previous year: CTL and combisped).

Notes on the reporting

In order to provide a consistent reporting format, the disclosure of EBIT from continuing activities, which has been included since the second quarter of 2009, has been retained again in the financial year 2010. In the previous year, the difference to regular EBIT was due to non-recurring restructuring expenses and operating losses at two companies that have been discontinued see also the interim report for January to June 2009. In the current financial year, the difference stems from proceeds on the sale of property, plant and equipment at one of the discontinued companies.

In order to present a better overview of total staff deployment expenses in the HHLA Group, expenses for port-related external staff are recognized in personnel expenses rather than the cost of materials as of the beginning of financial year 2010. The following information takes a corresponding reclassification between these two expense items into account. The figures in the income statement for the previous year have been adjusted accordingly. This does not affect the operating result.

Earnings position

Over the first nine months of the year, the HHLA Group's business progressed in line with the previously published forecast, with orders improving continuously. In the seasonally stronger third quarter in particular, the company was able to use the sustained economic recovery to improve its market position and increase business volumes substantially. As a result of gaining additional shipping services and an increased freight volume per ship arrival, throughput in the Container segment from January to September rose by 15.4 % to 4.25 million TEU (previous year: 3.69 million TEU). Hinterland traffic in the Intermodal segment also benefited from the more favourable commercial environment. Rail and road business also reported strong double-digit growth of 13.4 %, with transport volumes of 1.26 million TEU (previous year: 1.11 million TEU).

In a highly competitive market, especially for feeder services, the HHLA Group generated revenue of € 791.9 million in total. Compared with the figure for last year (€ 746.0 mil-

Link to the hinterland: container rail terminal at HHLA dock.

lion), Group revenue grew by 6.2 %, despite lower storage charges resulting from a global shortage of containers, shifts in the handling mix between feeder and overseas services, and persistent price pressure. This corresponds to a yearon-year increase of 17.1 % for the third quarter. This positive performance benefited primarily the listed Port Logistics subgroup with its Container, Intermodal and Logistics segments as well as the Holding/Other division. HHLA generated 97 % of its external revenue in this area during the reporting period. The non-listed subgroup Real Estate, with properties in the Speicherstadt historical warehouse district and Fischmarkt Hamburg-Altona GmbH in Hamburg, generated 3 % of revenue. At Group level, there were no currency

effects or effects from changes in the group of consolidated companies that had a material impact on the result for the period.

Operating expenses increased at a much lower rate than throughput and transport volumes in the reporting period. On the basis of continuing activities, the total increased by 8.1 % in the first nine months of 2010, compared with a considerably lowered level in the previous year. The cost of materials, which is closely correlated with volume, went up roughly in line with volume increases by 13.5 % to € 271.3 million (previous year: € 239.0 million) from January to September. The cost of materials ratio in relation to revenue rose to 34.3 % (previous year: 32.0 %). By contrast, the rise in personnel expenses remained well below growth in throughput and transport volumes. The figure grew 2.5 % in the first three quarters of the year to € 234.5 million (previous year: € 228.9 million). Although now curtailed, the use of short-time working hours in line with demand relieved this item, as did the lower number of employees compared with last year. An increase in the deployment of external staff due to operational requirements had an opposite, but much smaller effect. In relation to revenue, the personnel expenses ratio therefore fell to 29.6 % (previous year: 30.7 %).

Other operating expenses, consisting primarily of lease expenses for land and quay walls as well as the cost of maintenance, remained 0.5 % below last year's level at € 90.6 million (previous year: € 91.1 million). The additional expenses for reducing the maintenance back-log and carrying out repairs to surface damage caused by the hard winter were largely made up for by savings in other services. The ratio of other operating expenses to revenue fell to 11.4 % (previous year: 12.2 %).

On the basis of these developments, the HHLA Group achieved an operating result before depreciation and amortization (EBITDA) of € 222.6 million (previous year: € 215.1 million). Although earnings were still down on last year after the first six months, the strong third quarter led to year-on-year growth of 3.5 %. The EBITDA margin therefore amounted to 28.1 % (previous year: 28.8 %). Due to one-off restructuring expenses in the previous year, depreciation and amortization fell year on year by 4.7 % to € 81.0 million (previous year: € 85.1 million). Adjusted for this non-recurring effect, depreciation and amortization rose by 5.0 % due to ongoing investment (previous year adjusted: € 77.2 million). At Group level the operating result (EBIT) from continuing activities of € 139.6 million could not quite match last year's figure (€ 143.6 million), but the shortfall of 2.8 % was much lower than at the end of the half-year. Based on its continuing activities, the Group's EBIT margin continued to improve over the year to 17.6 % (previous year: 19.3 %). The subgroups Port Logistics and Real Estate contributed 93 % and 7 % respectively to EBIT. Though interest income in the financial result decreased to € 3.5 million (previous year: € 4.6 million), mainly due to the low interest on the Group's credit balances, interest expenses at € 30.0 million remained largely unchanged compared with last year (€ 29.0 million), despite slightly increased financial liabilities.

The effective tax rate for the nine-month period was 28.9 % and thus down from last year (32.1 %). This was mainly the result of shifting earnings to Group companies with lower tax rates as well as the one-off effect last year. Against this background, consolidated profit after tax and minority interests rose year on year by 21.7 % to € 55.5 million (previous year: € 45.6 million). In relation to profit after tax, the proportion attributable to shareholders of the parent company also went up markedly compared with the previous year, mainly due to the general recovery in volumes and the absence of the one-off expenses from 2009. Earnings per share improved correspondingly by 20.6 % to € 0.76 (previous year: € 0.63). The publicly listed Port Logistics subgroup achieved a 23.7 % increase in earnings per share to € 0.73 (previous year: € 0.59). Earnings per share for the unlisted Real Estate subgroup remained unchanged at € 1.71.

Primarily as a result of the decrease in the operating result (EBIT) from continuing activities and a further increase in operating assets, including a new quay wall posted under a finance lease, the return on capital employed (ROCE) fell to 14.3 % (previous year: 15.2 %).

Key figures		1-9 2010	1-9 2009	Change
Revenue	€million	445.0	425.4	4.6 %
EBITDA	€million	176.1	172.8	1.9 %
EBITDA margin	%	39.6	40.6	- 1.0 pp
EBIT	€million	117.9	117.2	0.6 %
EBIT margin	%	26.5	27.5	- 1.0 pp
Container throughput	thousand TEU	4,252	3,685	15.4 %

Container segment

The volume recovery in container throughput continued to accelerate over the course of the year, setting a new record in the third quarter of 2010 with an increase of 27.9 % on the same quarter of last year. Thanks to this dynamic performance, throughput volumes at the HHLA container terminals in Hamburg and Odessa climbed by 15.4 % to 4,252 thousand standard containers (TEU) in the first nine months of 2010. Feeder traffic to the Baltic Sea is now also well up on last year, reporting an increase of around 19 %.

More performance: container handling at the new mega-ship berth.

After nine months, revenue and earnings figures exceeded the prior-year levels for the first time since 2008, after having recorded declines in the first two quarters. A direct comparison between Q3/2010 and Q3/2009 reveals a rise in revenue of 18.6 %, in EBITDA of 23.7 % and in EBIT of 30.2 %. The strong improvement in the third quarter resulted in revenue growth of 4.6 % to € 445.0 million in the first nine months (previous year: € 425.4 million). Over the same period, EBITDA rose by 1.9 % to € 176.1 million (previous year: € 172.8 million). With growth of 0.6 % to € 117.9 million, EBIT succeeded in reaching the prior-year level (€ 117.2 million) after posting double-digit, year-on-year declines in the preceding quarters.

There are a number of reasons for this successful performance. The new Asia– Europe service "FAL 5 / AE 8" offered by CMA CGM and Maersk, which has been calling at the new mega-ship berth 2 at Burchardkai since August 2010, is just one example of the scheduled container services that have started or resumed operations. At the same time, feeder traffic to HHLA's terminals in Hamburg has also picked up sharply again. Market share has also been successfully recaptured in this area. The shipping company APL, for example, moved some of its feeder services back to Hamburg from Rotterdam at the end of August. To make better use of the opportunities arising from future container growth on the Black Sea, HHLA plans to expand its container terminal in Odessa (CTO), investing the equivalent of € 70 million in deep-water berths and additional capacity by 2012. The existing management and service agreement for operating the CTO is to be extended by 20 years to the end of 2044.

Key figures		1-9 2010	1-9 2009	Change
Revenue	€million	234.1	206.3	13.5 %
EBITDA	€million	29.6	23.5	25.7 %
EBITDA margin	%	12.6	11.4	1.2 pp
EBIT	€million	18.6	4.2	344.3 %
EBIT margin	%	7.9	2.0	5.9 pp
EBIT from continuing activities ¹	€million	16.6	17.8	- 6.7 %
EBIT margin from cont. activities	%	7.1	8.8	- 1.7 pp
Container transport²	thousand TEU	1,261	1,112	13.4 %

Intermodal segment

¹ EBIT without one-off restructuring effects of CTL (previous year: CTL and combisped) 2 Transport volume was fully consolidated

Transport volumes in the Intermodal segment rose sharply in the first nine months of 2010. On some routes they were already back to their 2008 levels. All in all, the number of containers transported rose by 13.4 % to 1,261 thousand standard containers (previous year: 1,112 thousand). Companies with the greatest degree of vertical integration once again

proved most successful, enabling growth of more than 30 % in traffic with south-eastern Europe. In early October 2010, Metrans, HHLA's subsidiary in Prague, celebrated its 2-millionth container since the opening of a regular container train connection between Hamburg and Prague in 1992.

Yields remained stable in the third quarter of 2010 in a market still under pressure from fierce competition. At the same time, revenue and earnings figures showed further improvement over the preceding quarters. Segment revenue rose over the first nine months of 2010 by 13.5 % to € 234.1 million (previous year: € 206.3 million). Including proceeds from the sale of container gantry cranes in Lübeck (€ 2.3 million), EBITDA climbed by 25.7 % to € 29.6 million

Record in Prague: the 2-millionth container since 1992.

(previous year: € 23.5 million). After six months, growth in EBITDA had reached just 13.2 %. Not including activities in Lübeck which were discontinued last year, EBIT from continuing activities reached € 16.6 million. This was 6.7 % below the figure for last year. At the midpoint of the year, the decline in EBIT was still 23.7 %. The earnings position has therefore stabilized appreciably over the course of the year.

Throughout 2010, HHLA has consistently developed its intermodal activities. In March, HHLA and Eurogate set up the joint venture IPN Inland Port Network, which is preparing to build up a network of inland terminals in Germany. A new inland terminal was inaugurated in Katowice in Poland at the end of July. A terminal in Poznán is to follow next year. In July, the HHLA subsidiary CTD and EKB, a Bremen-based transport company, founded the joint venture CIT Container Inland Trucking to establish a comprehensive delivery network for all inland terminals in Germany.

Logistics segment

Key figures		1-9 2010	1-9 2009	Change
Revenue	€million	90.2	84.6	6.7 %
EBITDA	€million	11.1	10.7	3.7 %
EBITDA margin	%	12.3	12.6	- 0.3 pp
EBIT	€million	5.8	6.6	- 12.6 %
EBIT margin	%	6.4	7.9	- 1.5 pp

In the third quarter of 2010, the positive economic recovery trend continued for precisely those companies in the Logistics segment whose business is particularly dependent on the economic cycle. Bulk goods handling and vehicle logistics reported considerable increases in volumes, revenue and results. The cruise business also picked up significantly. After a subdued first half of the year, the port consulting business also picked up. Fruit logistics fell far short of last year's results, however. Contract logistics made further progress towards stabilizing its business, among other things thanks to new orders in project logistics, but overall still remained at a low level.

These divergent trends added up to an increase in revenue of 6.7 % to € 90.2 million in the reporting period (previous year: € 84.6 million). EBITDA of € 11.1 million exceeded

Cruise boom in Hamburg.

the figure for last year of € 10.7 million by 3.7 %. Mainly as a result of higher depreciation and amortization, EBIT was 12.6 % lower than last year's figure of € 6.6 million at € 5.8 million.

In spite of a general increase in demand, the consultancy business was still down on the result for last year, partly due to the continued decline in orders in the area of terminal management systems. Lower volumes as a result of changes in ship scheduling by one shipping company continue to place a considerable burden on the fruit logistics business. After nine months, throughput volumes of 584 thousand tons are 21.8 % down on last year's figure of 746 thousand tons. Contract logistics was able to acquire

significant new business by sharpening its focus on heavy-goods and project logistics. The result does not yet match last year's level, however.

Vehicle logistics at the multi-function terminal O'Swaldkai benefited substantially from the general economic upswing. Seaborne handling volumes of 959 thousand tons were up 9.8 % on last year. Vehicle handling in particular contributed to the increase, accelerating by 60 % to 127 thousand vehicles. The cruise business also reported a leap in growth compared with last year, with the number of ships handled in Hamburg rising by more than 40 % from 68 to 96. The bulk cargo terminal Hansaport exceeded last year's handling volumes by more than 38 %, registering 10.1 million tons.

Key figures		1-9 2010	1-9 2009	Change
Revenue	€million	25.3	24.8	1.9 %
EBITDA	€million	13.1	13.4	- 2.0 %
EBITDA margin	%	51.9	54.0	- 2.1 pp
EBIT	€million	10.0	10.3	- 2.8 %
EBIT margin	%	39.7	41.6	- 1.9 pp

Real Estate segment

According to a market survey published by Jones Lang LaSalle, new leases of office space in Hamburg rose by around 29 % to 355,000 square metres from July to September 2010, following a figure of 185,000 square metres for the half-year, which represented a standstill compared with the same period last year.

A consistently high level of new office space construction and negative net absorption drove the vacancy rate up by 1.7 percentage points to 9.4 % compared with the first nine months of 2009. By the end of the year the figure is expected to exceed the 10 % mark.

The HHLA properties in the Speicherstadt historical warehouse district and in the Fischmarkt area on the northern bank of the Elbe continued to develop positively in this market environment. Revenue climbed 1.9 % in comparison to last year to € 25.3 million (previous year: € 24.8 million). Earnings and earnings margins are still at an impressive level.

EBITDA and EBIT for the reporting period were only marginally down on last year's strong figures. This is largely due to higher maintenance expenses in the Speicherstadt historical warehouse district.

EBITDA came to € 13.1 million, or 2.0 % less than the € 13.4 million reported last year. EBIT sank by 2.8 % to € 10.0 million (previous year: € 10.3 million). The EBITDA margin after the first nine months of 2010 came to 51.9 % (previous year: 54.0 %) and the EBIT margin to 39.7 % (previous year: 41.6 %).

The cautious redevelopment of the Speicherstadt historical warehouse district continued in the first three quarters of 2010 with new lets and project development. Compa-

Speicherstadt: one of the preferred locations for agencies in Hamburg.

nies from the communications and creative industries occupy more than 80,000 square metres there, making the Speicherstadt district one of the preferred locations for agencies in Hamburg.

Structural redevelopment is also continuing on the northern banks of the river Elbe. Following the conclusion of an architecture competition in late June 2010, preparations are now underway to realize a major new construction project with an architecturally sophisticated blend of residential and commercial space as well as cafés and restaurants.

Employees

The strong recovery in demand over the third quarter of 2010 is also reflected in the number of employees at HHLA. Compared with the crisis-induced low of 4,684 as of 30 June 2010

(against 5,001 at year-end 2008), the number of staff rose again for the first time over the previous year's quarter, by 27 to 4,711. In comparison with the same period last year the workforce decreased by 1.4 % or 67 employees.

This demonstrates that the steps taken to safeguard employment as part of the "Securing the Future" project in Hamburg are also effective as the economy recovers. The flexible and demand-oriented use of short-time working hours, combined with customized qualification programmes,

enabled the volume of work to be adjusted in line with the economic cycle, while retaining employees and allowing them to gain additional qualifications.

Thanks to the stable upwards trend in throughput and transport volumes, HHLA ended the short-time labour scheme introduced in summer 2009 as of 1 November 2010. The only exception is the HHLA Logistics subsidiary. To the extent that they have not already finished, the qualification programmes launched as part of the "Securing the Future" project will still be completed after the short-time labour scheme has expired.

Financial position

Cash flow statement

in € Million

231.2
146.9
- 121.2
25.7
- 106.2
- 80.4
0.9
151.6

As a result of the HHLA Group's positive earnings development, cash inflow from operating activities increased to € 164.4 million in the period from January to September 2010 (previous year: € 146.9 million). Cash outflow for investing activities amounted to € 64.1 million in the reporting period and was therefore well below last year's figure of € 121.2 million, as ongoing payments for property, plant and equipment were reduced. For more details, please see the following section entitled "Investments".

Reduced capital expenditure together with increased earnings led to strong year-on-year growth in free cash flow to € 100.3 million, comprising total cash flow from operating and investing activities. Although no borrowing took place in the period up to September 2010, in contrast to the same period in 2009, net cash outflow for financing activities fell to € 86.4 million (previous year: € 106.2 million), largely as a result of the lower dividend payment.

Financial funds, made up of cash and cash equivalents (€ 135.5 million) and cash pooling (€ 58.5 million), netted with other financial liabilities (€ 1.6 million), amounted to € 192.4 million as of 30 September 2010 and were therefore higher than the opening balance for the year (€ 179.2 million).

Investments

The investment volume in the reporting period totalled € 102.5 million and was thus below the previous year's level of € 128.7 million. As the timeframe for certain projects was extended, investment continued at a reduced rate into the third quarter of 2010 and concentrated primarily on the Container and Intermodal segments. They included the successful completion of the quay wall for a new mega-ship berth at the HHLA Container Terminal Burchardkai, which was leased from the related party Hamburg Port Authority. This new asset cost € 30.4 million, but as the underlying agreement has been classified as a finance lease the amount is not recognized as a direct cash expense. Due to completion dates set for yearend, the investment volume for the first nine months of the year does not correspond with the pro rata amount based on the full year. For more details, see the "Business forecast" section on page 17 et seq.

Balance sheet

in € Million

30.09.2010	31.12.2009	30.09.2009
1,252.2	1,224.9	1,204.4
407.0	365.6	342.6
1,659.2	1,590.5	1,547.0
664.4	637.0	648.8
718.0	710.6	649.5
276.8	242.9	248.7
1,659.2	1,590.5	1,547.0

Compared with the end of 2009, the HHLA Group's balance sheet total increased by a total of € 68.7 million to € 1,659.2 million as of 30 September 2010.

Non-current assets, at € 1,252.2 million, were higher than the comparable figure on 31 December 2009 (€ 1,224.9 million). The change was due to the recognition of a new mega-ship berth in addition to scheduled depreciation of property, plant and equipment.

The increase in current assets of € 41.4 million to € 407.0 million as of 30 September 2010 stemmed largely from higher receivables from related parties, due in turn to a higher cashpool balance with HGV Hamburger Gesellschaft für Vermögens- und Beteiligungsmanagement mbH and an increase of € 21.0 million in trade receivables. By contrast, cash and cash equivalents were € 38.0 million lower as a result of the dividend payment made on 17 June 2010.

Shareholders' equity came to € 664.4 million as of the reporting date, an increase of € 27.4 million on year-end 2009. The dividend distribution was compensated for by profit after tax for the reporting period. The equity ratio as of the reporting date was 40.0 % (as of 31 December 2009: 40.0 %).

Non-current liabilities remained largely unchanged at € 718.0 million compared with the end of 2009 (€ 710.6 million). The slight increase resulted primarily from recognition of the leasing liability in connection with the mega-ship berth at the HHLA Container Terminal Burchardkai and the parallel repayment of non-current financial liabilities. Current liabilities of € 276.8 million (as of 31 December 2009: € 242.9 million) rose largely as a result of higher trade liabilities and other financial liabilities.

Transactions with respect to related parties

There are various contracts between the Free and Hanseatic City of Hamburg and the Hamburg Port Authority, and companies of the HHLA Group for the lease of land and quay walls in the Port of Hamburg and in the Speicherstadt historical warehouse district.

In addition, 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 2009.

Events after the balance sheet date

There were no transactions of special significance after the balance sheet date of 30 September 2010.

Risk and opportunity report

HHLA's business activities remain dependent on the continued recovery in demand for throughput and transportation. Furthermore, HHLA is still exposed to the risk of an underutilization of capacities in the North Range. This may result in a further increase in pricing pressure.

With regard to the HHLA Group's risk position, the statements made in the management report section of the 2009 annual report and the interim reports apply, unless otherwise indicated in this report. These reports describe the risk factors associated with the HHLA Group's business activities in the section "Risk and opportunity report". Any new potential opportunities which arose in the past quarter have been described in the "Business forecast" section of this report.

Business forecast

Macroeconomic environment

The expansion of the global economy is expected to slow down over the remainder of the year, with the strong upswing of the first half-year settling down to a more moderate pace. In principle, the global economy remains on an upward track. The International Monetary Fund (IMF) has at last once again slightly raised its forecast for global GDP growth in 2010 to 5 %. Global trade is likely to grow by more than 11 % this year. Even if another recession is unlikely, there is still a risk of relapse due to the high national debt of many economies and the persistently frail state of the banking sector.

It has become increasingly obvious in recent months that the economic regions with a significant meaning for HHLA's business development will recover at varying speeds. The at last strong expansion in emerging markets is indeed expected to slow somewhat over the year as a whole due to tighter economic policies and declining demand from the industrialized nations. However, the IMF still expects significant economic growth of around 9 % for the Asian region, whereby Chinese GDP could grow by almost 11 %.

The economic recovery in Central and Eastern Europe, however, is expected to be slower with GDP growth of around 4 % in 2010. Decelerating economic expansion is also predicted for the industrialized nations. The slowdown here stems primarily from the expiry of extensive stimulus programmes and from temporary effects of the inventory cycle.

Economic growth in the industrialized nations is expected to reach 3 %, while the IMF forecasts GDP growth in the eurozone of nearly 2 %. Thanks to its robust performance so far, the German economy is now on course for GDP growth of more than 3 %. German exports could increase year on year by 15 % in 2010.

This positive economic development has led market research institutes, such as Drewry and Clarkson, to predict higher growth rates in global container traffic. According to current estimates, around 11 % more containers will be handled in 2010 than in the previous year.

The development of Asian and South American ports will be particularly dynamic. The ports of northern Europe, however, will still not be able to compensate last year's collapse in 2010 and overcapacities are likely to remain. Tough competition is also expected to continue among carriers in combined hinterland traffic. Hence, fierce price competition will in principle continue to dominate the market environment in the remaining months of 2010.

EARNINGS POSITION

In view of developments over the first nine months of the year and despite a seasonally weaker fourth quarter, HHLA now expects to increase throughput volumes by more than 15 % for 2010 as a whole and raise transport volumes by more than 11 %, both compared with last year. Lower storage charges, shifts in the loading mix and continuing intensive price

Outlook

HHLA Group 2010
Container throughput	increase of more than 15 %
Container transport	increase of more than 11 %
Group revenue	above € 1 billion
EBIT	in the region of € 180 million
Investments	not more than € 180 million

competition mean that the marked improvement in orders cannot be transferred to the same extent into an increase in revenue. Particularly, the delayed plan approval process for dredging the Elbe waterway, with a simultaneous increase in the proportion of large ships, represents a burden for Hamburg. Despite these challenges, HHLA aims to raise Group revenue in 2010 above the previous year's level and expects to exceed the one billion euro mark. In line with the expectations adjusted upwards, a full-year EBIT of € 180 million is considered to be obtainable. The Port Logistics and Real Estate subgroups are expected to contribute in

line with their previous result shares of around 93 % and 7 % respectively. With regard to minority interests, their pro rata share of profit after taxes is expected to be lower than in the previous year, leaving a greater proportion for the shareholders of the parent company.

Based on current estimates, a substantial increase in throughput is forecasted for the Container segment. This should lead to higher revenue compared to last year, although the EBIT margin is affected by lower average yields. Increased demand for hinterland transport is also expected in the Intermodal segment. In a highly competitive environment, HHLA therefore anticipates moderate growth in revenue from continuing activities, albeit with somewhat lower margins. In its Logistics segment, HHLA expects modest progress based on varying developments of specific market segments. Overall, HHLA expects this segment to make a higher contribution to total revenue than last year, whereby the result will be burdened by additional depreciation and amortization. In the Real Estate segment, demand for office and commercial space in the prominent locations of the Speicherstadt historical warehouse district and the northern bank of the river Elbe is expected to be somewhat weaker. Thanks to high occupancy rates and existing lease agreements, revenue and earnings in 2010 are likely to be in the same region as last year.

FINANCIAL POSITION

In order to safeguard its long-term prospects, HHLA will continue to make important investments in the remaining months of 2010. On a like for like basis to the previous year, however, adjustments are intended to limit capital expenditure to no more than € 120 million. Together with around € 60 million in new assets to be recognized as part of finance leases for new quay walls, which do not have an immediate cash out effect but are distributed over the assets' useful life, the total should not exceed € 180 million.

In combination with the development of business described above, HHLA expects to generate strongly positive free cash flow in 2010. In consideration of the available liquidity reserves, the Group's financing remains on a sound footing.

DIVIDENDS

HHLA will continue to pursue its yield-oriented dividend policy. As far as financing needs allow and as long as there are no fundamental changes in the situation, the company will continue to distribute at least 50 % of the year's distributable net income in the form of dividends.

BUSINESS ACTIVITY AND ORGANIZATION

No organizational changes which would have a material effect on the structure of the Group are planned for the fourth quarter of 2010.

FURTHER DEVELOPMENT

For the development of HHLA's business in 2011, it is essential that planning approval is granted for dredging the Elbe waterway and that work can begin. Subject to this proviso, HHLA is confident that it can expand its market position in the European North Range and once again benefit more than proportionately from increases in global cargo volumes. If the economic recovery stabilizes over the months ahead and price discipline in container shipping continues, further revenue growth in excess of € 1 billion should be attainable. Although the pressure on yields is expected to persist in 2011, HHLA still aims to achieve a noticeable earnings improvement. An investment project to expand HHLA's activities in the Black Sea region will mean that capital expenditure next year will not fall below the current year's level.

No material changes with regard to other topics have occurred during the reporting period. The following table lists the topics concerned. The relevant disclosures are largely included in the annual report for 2009 and remain valid.

Areas in which no material changes have occurred in the reporting period

(Page numbers refer to the annual report for 2009)
Company organization and structure See front flap, page 48, page 62 et seq.
Company goals/strategies See page 69 et seq.
Main services See page 64 et seq.
Sales markets/competitive position See page 66 et seq.
Research and development See page 78 et seq.
Legal environment See page 72 et seq.
Principles and goals of financial management See page 95
Company disposals and acquisitions See page 98
Planned changes to structure/organization and strategy/goals See page 118
Future services, sales markets/competitive position, R&D activities See page 115
Opportunities See page 112

20 hhla Interim Report 1–9 | 2010

Inter im financial statements

Income statement HHLA Group

IN € THOUSAND

	1-9 2010	1-9 2009	7-9 2010	7-9 2009
Revenue	791,913	745,989	286,815	245,009
Changes in inventories	115	455	579	830
Own work capitalized	4,728	6,609	1,764	1,666
Other operating income	22,356	21,005	9,289	6,238
Cost of materials	- 271,331	- 238,980	- 99,136	- 80,286
Personnel expenses	- 234,549	- 228,886	- 80,770	- 72,965
Other operating expenses	- 90,643	- 91,106	- 30,600	- 29,118
Earnings before interest, taxes, depreciation and amortization (EBITDA)	222,589	215,086	87,941	71,374
Depreciation and amortization	- 81,045	- 85,085	- 27,777	- 22,901
Earnings before interest and taxes (EBIT)	141,544	130,001	60,164	48,473
Earnings from associates accounted for using the equity method	167	51	120	12
Interest income	3,471	4,637	1,844	968
Interest expenses	- 29,971	- 28,990	- 9,493	- 9,418
Other financial result	336	404	162	304
Earnings before tax (EBT)	115,547	106,103	52,797	40,339
Income tax	- 33,448	- 34,030	- 15,575	- 11,974
Profit after tax	82,099	72,073	37,222	28,365
- of which share of profit after tax attributable to minority interests	26,635	26,508	10,301	8,474
- of which share of profit after tax attributable to shareholders of the parent company	55,464	45,565	26,921	19,891
Earnings per share, basic (in €)
- Group	0.76	0.63	0.37	0.27
- Port Logistics	0.73	0.59	0.36	0.26
- Real Estate	1.71	1.71	0.56	0.66
Earnings per share, diluted (in €)
- Group	0.76	0.63	0.37	0.27
- Port Logistics	0.73	0.59	0.36	0.26
- Real Estate	1.71	1.71	0.56	0.66

Statement of comprehensive income HHLA Group IN € THOUSAND

	1-9 2010	1-9 2009	7-9 2010	7-9 2009
Profit after tax	82,099	72,073	37,222	28,365
Actuarial gains/losses	1,163	18,589	772	- 1,615
Cash flow hedges	- 940	- 1,147	- 156	- 281
Translation differences	3,144	- 3,704	- 5,211	- 3,137
Deferred taxes on changes recognized directly in equity	- 120	- 5,637	- 208	612
Other	- 23	53	30	64
Income and expense recognized directly in equity	3,224	8,154	- 4,773	- 4,357
Total comprehensive income	85,323	80,227	32,449	24,008
- of which attributable to other shareholders	26,771	26,349	10,467	8,471
- of which attributable to shareholders of the parent company	58,551	53,878	21,981	15,537

IN € THOUSAND; Port Logistics subgroup and Real Estate subgroup; Annex to the condensed notes

	1-9 2010 Group	1-9 2010 Port Logistics	1-9 2010 Real Estate	1-9 2010 Consolidation
Revenue	791,913	769,981	25,269	- 3,337
Changes in inventories	115	141	- 26	0
Own work capitalized	4,728	4,720	0	8
Other operating income	22,356	22,272	634	- 550
Cost of materials	- 271,331	- 267,279	- 4,060	9
Personnel expenses	- 234,549	- 232,755	- 1,794	0
Other operating expenses	- 90,643	- 87,596	- 6,918	3,870
Earnings before interest, taxes, depreciation and amortization (EBITDA)	222,589	209,484	13,105	0
Depreciation and amortization	- 81,045	- 78,199	- 3,075	230
Earnings before interest and taxes (EBIT)	141,544	131,285	10,030	230
Earnings from associates accounted for using the equity method	167	167	0	0
Interest income	3,471	3,363	209	- 101
Interest expenses	- 29,971	- 26,258	- 3,815	101
Other financial result	336	336	0	0
Earnings before tax (EBT)	115,547	108,893	6,424	230
Income tax	- 33,448	- 31,422	- 1,989	- 36
Profit after tax	82,099	77,471	4,435	194
- of which share of profit after tax attributable to minority interests	26,635	26,635	0	0
- of which share of profit after tax attributable to shareholders of the parent company	55,464	50,836	4,435	194
Earnings per share, basic (in €)	0.76	0.73	1.71
Earnings per share, diluted (in €)	0.76	0.73	1.71

S tatement of comprehensive income HHLA subgroups

IN € THOUSAND; Port Logistics subgroup and Real Estate subgroup; Annex to the condensed notes

	1-9 2010 Group	1-9 2010 Port Logistics	1-9 2010 Real Estate	1-9 2010 Consolidation
Profit after tax	82,099	77,471	4,435	194
Actuarial gains/losses	1,163	1,099	64
Cash flow hedges	- 940	- 940	0
Translation differences	3,144	3,144	0
Deferred taxes on changes recognized directly in equity	- 120	- 100	- 21
Other	- 23	- 23	0
Income and expense recognized directly in equity	3,224	3,180	43	0
Total comprehensive income	85,323	80,651	4,478	194
- of which attributable to other shareholders	26,771	26,771	0
- of which attributable to shareholders of the parent company	58,551	53,880	4,671

iN € THOUSAND; Port Logistics subgroup and Real Estate subgroup; Annex to the condensed notes

	1-9 2009	1-9 2009	1-9 2009	1-9 2009
	Group	Port Logistics	Real Estate	Consolidation
Revenue	745,989	724,758	24,787	- 3,556
Changes in inventories	455	454	1	0
Own work capitalized	6,609	6,568	0	41
Other operating income	21,005	20,419	856	- 271
Cost of materials	- 238,980	- 235,236	- 3,775	31
Personnel expenses	- 228,886	- 227,067	- 1,818	0
Other operating expenses	- 91,106	- 88,185	- 6,675	3,755
Earnings before interest, taxes, depreciation and amortization (EBITDA)	215,086	201,711	13,376	0
Depreciation and amortization	- 85,085	- 82,250	- 3,058	222
Earnings before interest and taxes (EBIT)	130,001	119,461	10,318	222
Earnings from associates accounted for using the equity method	51	51	0	0
Interest income	4,637	4,618	129	- 110
Interest expenses	- 28,990	- 25,141	- 3,959	110
Other financial result	404	404	0	0
Earnings before tax (EBT)	106,103	99,393	6,488	222
Income tax	- 34,030	- 31,939	- 2,056	- 35
Profit after tax	72,073	67,454	4,432	187
- of which share of profit after tax attributable to minority interests	26,508	26,508	0	0
- of which share of profit after tax attributable to shareholders of
the parent company	45,565	40,946	4,432	187
Earnings per share, basic (in €)	0.63	0.59	1.71
Earnings per share, diluted (in €)	0.63	0.59	1.71

Statement of comprehensive income HHLA subgroups

iN € THOUSAND; Port Logistics subgroup and Real Estate subgroup; Annex to the condensed notes

	1-9 2009 Group	1-9 2009 Port Logistics	1-9 2009 Real Estate	1-9 2009 Consolidation
Profit after tax	72,073	67,454	4,432	187
Actuarial gains/losses	18,589	18,070	519
Cash flow hedges	- 1,147	- 1,147	0
Translation differences	- 3,704	- 3,704	0
Deferred taxes on changes recognized directly in equity	- 5,637	- 5,470	- 167
Other	53	53	0
Income and expense recognized directly in equity	8,154	7,802	352	0
Total comprehensive income	80,227	75,256	4,784	187
- of which attributable to other shareholders	26,349	26,349	0
- of which attributable to shareholders of the parent company	53,878	48,907	4,971

IN € THOUSAND; Port Logistics subgroup and Real Estate subgroup; Annex to the condensed notes

	7-9 2010 Group	7-9 2010 Port Logistics	7-9 2010 Real Estate	7-9 2010 Consolidation
Revenue	286,815	279,261	8,663	- 1,109
Changes in inventories	579	580	- 1	0
Own work capitalized	1,764	1,756	0	8
Other operating income	9,289	9,294	121	- 126
Cost of materials	- 99,136	- 97,760	- 1,376	1
Personnel expenses	- 80,770	- 80,185	- 585	0
Other operating expenses	- 30,600	- 29,344	- 2,483	1,226
Earnings before interest, taxes, depreciation and amortization (EBITDA)	87,941	83,602	4,339	0
Depreciation and amortization	- 27,777	- 26,828	- 1,025	77
Earnings before interest and taxes (EBIT)	60,164	56,774	3,314	77
Earnings from associates accounted for using the equity method	120	120	0	0
Interest income	1,844	1,808	69	- 33
Interest expenses	- 9,493	- 8,270	- 1,257	33
Other financial result	162	162	0	0
Earnings before tax (EBT)	52,797	50,594	2,126	77
Income tax	- 15,575	- 14,898	- 664	- 12
Profit after tax	37,222	35,696	1,462	65
- of which share of profit after tax attributable to minority interests	10,301	10,301	0	0
- of which share of profit after tax attributable to shareholders of the parent company	26,921	25,395	1,462	65
Earnings per share, basic (in €)	0.37	0.36	0.56
Earnings per share, diluted (in €)	0.37	0.36	0.56

Statement of comprehensive income HHLA subgroups

IN € THOUSAND; Port Logistics subgroup and Real Estate subgroup; Annex to the condensed notes

	7-9 2010 Group	7-9 2010 Port Logistics	7-9 2010 Real Estate	7-9 2010 Consolidation
Profit after tax	37,222	35,696	1,462	65
Actuarial gains/losses	772	784	- 12
Cash flow hedges	- 156	- 156	0
Translation differences	- 5,211	- 5,211	0
Deferred taxes on changes recognized directly in equity	- 208	- 213	4
Other	30	30	0
Income and expense recognized directly in equity	- 4,773	- 4,766	- 8	0
Total comprehensive income	32,449	30,930	1,454	65
- of which attributable to other shareholders	10,467	10,467	0
- of which attributable to shareholders of the parent company	21,981	20,463	1,518

iN € THOUSAND; Port Logistics subgroup and Real Estate subgroup; Annex to the condensed notes

	7-9 2009	7-9 2009	7-9 2009	7-9 2009
	Group	Port Logistics	Real Estate	Consolidation
Revenue	245,009	237,928	8,196	- 1,115
Changes in inventories	830	830	0	0
Own work capitalized	1,666	1,625	0	41
Other operating income	6,238	5,906	423	- 92
Cost of materials	- 80,286	- 79,079	- 1,215	8
Personnel expenses	- 72,965	- 72,378	- 586	0
Other operating expenses	- 29,118	- 28,324	- 2,026	1,232
Earnings before interest, taxes, depreciation and amortization (EBITDA)	71,374	66,508	4,792	74
Depreciation and amortization	- 22,901	- 21,958	- 1,018	74
Earnings before interest and taxes (EBIT)	48,473	44,550	3,774	148
Earnings from associates accounted for using the equity method	12	12	0	0
Interest income	968	999	79	- 110
Interest expenses	- 9,418	- 8,130	-1,323	36
Other financial result	304	304	0	0
Earnings before tax (EBT)	40,339	37,735	2,530	74
Income tax	- 11,974	- 11,160	- 803	-11
Profit after tax	28,365	26,575	1,727	63
- of which share of profit after tax attributable to minority interests	8,474	8,474	0	0
- of which share of profit after tax attributable to shareholders of the parent company	19,891	18,101	1,727	63
Earnings per share, basic (in €)	0.27	0.26	0.66
Earnings per share, diluted (in €)	0.27	0.26	0.66

Statement of comprehensive income HHLA subgroups

iN € THOUSAND; Port Logistics subgroup and Real Estate subgroup; Annex to the condensed notes

	7-9 2009 Group	7-9 2009 Port Logistics	7-9 2009 Real Estate	7-9 2009 Consolidation
Profit after tax	28,365	26,575	1,727	63
Actuarial gains/losses	- 1,615	- 1,609	- 6
Cash flow hedges	- 281	- 281	0
Translation differences	- 3,137	- 3,137	0
Deferred taxes on changes recognized directly in equity	612	610	2
Other	64	64	0
Income and expense recognized directly in equity	- 4,357	- 4,353	- 4	0
Total comprehensive income	24,008	22,222	1,723	63
- of which attributable to other shareholders	8,471	8,471	0
- of which attributable to shareholders of the parent company	15,537	13,751	1,786

Balance sheet HHLA Group

I N € THOUSAN D

ASSETS	30.09.2010	31.12.2009
Non-current assets
Intangible assets	85,138	82,334
Property, plant and equipment	938,109	916,772
Investment property	184,756	186,471
Associates accounted for using the equity method	1,579	1,487
Financial assets	10,051	8,062
Deferred taxes	32,549	29,812
	1,252,182	1,224,938
Current assets
Inventories	21,782	20,379
Trade receivables	142,720	121,731
Receivables from related parties	64,997	6,660
Other financial receivables	2,018	2,356
Other assets	18,477	12,292
Income tax receivables	21,566	23,412
Cash and cash equivalents	135,482	173,531
Non-current assets held for sale	0	5,200
	407,042	365,561
	1,659,224	1,590,499
EQUI TY AND L I ABI L I T IES
Equity
Subscribed capital	72,680	72,680
Subgroup Port Logistics	69,975	69,975
Subgroup Real Estate	2,705	2,705
Capital reserve	139,728	139,728
Subgroup Port Logistics	139,222	139,222
Subgroup Real Estate	506	506
Retained earnings	316,574	291,805
Subgroup Port Logistics	303,145	280,300
Subgroup Real Estate	13,428	11,505
Other comprehensive income	33,634	30,547
Subgroup Port Logistics	32,398	29,354
Subgroup Real Estate	1,236	1,193
Minority interests in equity	101,830	102,225
Subgroup Port Logistics	101,830	102,225
Subgroup Real Estate	0	0
	664,446	636,985
Non-current liabilities
Pension provisions	326,331	325,141
Other non-current provisions	53,980	56,092
Financial liabilities	325,210	316,363
Deferred taxes	12,487	13,029
	718,008	710,625
Current liabilities
Current provisions	18,863	18,854
Trade liabilities	69,050	54,616
Liabilities to related parties	72,513	66,329
Other financial liabilities	77,047	66,077
Other liabilities	36,320	33,596
Income tax liabilities	2,977	3,417
	276,770	242,889
	1,659,224	1,590,499

Balance sheet HHLA subgroups

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

ASSETS	30.09.2010 Group	30.09.2010 Port Logistics	30.09.2010 Real Estate	30.09.2010 Consolidation
Non-current assets
Intangible assets	85,138	85,117	21	0
Property, plant and equipment	938,109	915,352	5,300	17,457
Investment property	184,756	68,630	147,735	- 31,609
Associates accounted for using the equity method	1,579	1,579	0	0
Financial assets	10,051	8,963	1,088	0
Deferred taxes	32,549	36,652	127	- 4,230
	1,252,182	1,116,293	154,271	- 18,382
Current assets
Inventories	21,782	21,716	66	0
Trade receivables	142,720	141,913	807	0
Receivables from related parties	64,997	71,458	190	- 6,651
Other financial receivables	2,018	2,007	11	0
Other assets	18,477	18,244	233	0
Income tax receivables	21,566	23,735	0	- 2,169
Cash and cash equivalents	135,482	135,367	115	0
	407,042	414,440	1,422	- 8,820
	1,659,224	1,530,733	155,693	- 27,202
EQUITY AND LIABILITIES
Equity
Subscribed capital	72,680	69,975	2,705	0
Capital reserve	139,728	139,222	506	0
Retained earnings	316,574	303,145	25,340	- 11,912
Other comprehensive income	33,634	32,398	1,236	0
Minority interests in equity	101,830	101,830	0	0
	664,446	646,570	29,787	- 11,912
Non-current liabilities
Pension provisions	326,331	320,735	5,596	0
Other non-current provisions	53,980	52,564	1,416	0
Financial liabilities	325,210	300,160	25,050	0
Deferred taxes	12,487	12,700	6,257	- 6,470
	718,008	686,159	38,319	- 6,470
Current liabilities
Current provisions	18,863	17,103	1,761	0
Trade liabilities	69,050	66,376	2,674	0
Liabilities to related parties	72,513	4,961	74,203	- 6,651
Other financial liabilities	77,047	72,862	4,184	0
Other liabilities	36,320	36,032	289	0
Income tax liabilities	2,977	670	4,476	- 2,169
	276,770	198,004	87,587	- 8,820
	1,659,224	1,530,733	155,693	- 27,202

Balance sheet HHLA subgroups

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

ASSETS	31.12.2009 Group	31.12.2009 Port Logistics	31.12.2009 Real Estate	31.12.2009 Consolidation
Non-current assets
Intangible assets	82,334	82,305	30	0
Property, plant and equipment	916,772	893,700	5,284	17,787
Investment property	186,471	71,032	147,609	- 32,169
Associates accounted for using the equity method	1,487	1,487	0	0
Financial assets	8,062	6,780	1,282	0
Deferred taxes	29,812	33,890	152	- 4,230
	1,224,938	1,089,194	154,357	- 18,612
Current assets
Inventories	20,379	20,298	81	0
Trade receivables	121,731	120,878	853	0
Receivables from related parties	6,660	16,867	902	- 11,109
Other financial receivables	2,356	2,333	23	0
Other assets	12,292	12,181	110	0
Income tax receivables	23,412	25,581	0	- 2,169
Cash and cash equivalents	173,531	173,313	218	0
Non-current assets held for sale	5,200	5,200	0	0
	365,561	376,651	2,187	- 13,278
	1,590,499	1,465,845	156,544	- 31,890
EQUITY AND LIABILITIES
Equity
Subscribed capital	72,680	69,975	2,705	0
Capital reserve	139,728	139,222	506	0
Retained earnings	291,805	280,300	23,610	- 12,105
Other comprehensive income	30,547	29,354	1,193	0
Minority interests in equity	102,225	102,225	0	0
	636,985	621,076	28,014	- 12,105
Non-current liabilities
Pension provisions	325,141	319,512	5,629	0
Other non-current provisions	56,092	54,663	1,429	0
Financial liabilities	316,363	288,861	27,502	0
Deferred taxes	13,029	13,228	6,308	- 6,507
	710,625	676,264	40,868	- 6,507
Current liabilities
Current provisions	18,854	17,768	1,086	0
Trade liabilities	54,616	52,733	1,883	0
Liabilities to related parties	66,329	1,723	75,715	- 11,109
Other financial liabilities	66,077	61,203	4,874	0
Other liabilities	33,596	33,273	323	0
Income tax liabilities	3,417	1,805	3,781	- 2,169
	242,889	168,505	87,662	- 13,278
	1,590,499	1,465,845	156,544	- 31,890

Cash flow statement HHLA Group

iN € THOUSAND

	1-9 2010	1-9 2009
1. Cash flow from operating activities
Earnings before interest and taxes (EBIT)	141,544	130,001
Depreciation, amortization, impairment and reversals on non-financial non-current assets	79,202	85,085
Decrease in provisions	- 13,586	- 15,072
Gains/losses arising from the disposal of non-current assets	151	- 731
Change in inventories, trade receivables and other assets not attributable to investing or financing activities	- 31,518	29,085
Change in trade liabilities and other liabilities not attributable to investing or financing activities	37,747	- 11,076
Interest received	3,554	4,606
Interest paid	- 17,642	- 16,359
Income tax paid	- 35,429	- 59,683
Exchange rate and other effects	368	1,073
Cash flow from operating activities	164,391	146,929
2. Cash flow from investing activities
Proceeds from disposal of intangible assets and property, plant and equipment	8,871	2,841
Payments for investments in property, plant and equipment and investment property	- 65,534	- 123,178
Payments for investments in intangible assets	- 5,391	- 5,544
Proceeds from disposal of non-current financial assets	4	192
Payments for investments in non-current financial assets	- 1,802	- 645
Payments for acquiring interests in consolidated companies and other business units	- 259	- 571
Proceeds from the disposal of interests in consolidated companies and other business units	1	5,703
Cash flow from investing activities	- 64,110	- 121,202
3. Cash flow from financing activities
Dividends paid to shareholders of the parent company	- 30,695	- 72,680
Dividends paid to minority shareholders	- 27,166	- 41,496
Redemption of lease liabilities	- 3,010	- 2,333
Proceeds from the issuance of bank loans	0	39,889
Payments for the redemption of bank loans	- 25,523	- 29,537
Cash flow from financing activities	- 86,394	- 106,157
4. Financial funds at the end of the period
Change in financial funds (subtotals 1.-3.)	13,887	- 80,430
Change in financial funds due to exchange rates	- 629	904
Financial funds at the beginning of the period	179,156	231,161
Financial funds at the end of the period	192,414	151,635

Cash flow statement HHLA subgroups

IN € THOUSAND; Port Logistics subgroup and Real Estate subgroup; ANNEX TO THE CONDENSED NOTES

	1-9 2010 Group	1-9 2010 Port Logistics	1-9 2010 Real Estate	1-9 2010 Consolidation
1. Cash flow from operating activities
Earnings before interest and taxes (EBIT)	141,544	131,284	10,030	230
Depreciation, amortization, impairment and reversals on non-financial non-current assets	79,202	76,357	3,075	- 230
Change in provisions	- 13,586	- 14,039	453
Gains/losses arising from the disposal of non-current assets	151	151	0
Change in inventories, trade receivables and other assets not
attributable to investing or financing activities	- 31,518	- 31,317	857	- 1,058
Increase in trade liabilities and other liabilities not attributable to investing or financing activities	37,747	34,300	2,389	1,058
Interest received	3,554	3,591	64	- 101
Interest paid	- 17,642	- 13,781	- 3,962	101
Income tax paid	- 35,429	- 34,088	- 1,341
Exchange rate and other effects	368	368	0
Cash flow from operating activities	164,391	152,826	11,565	0
2. Cash flow from investing activities
Proceeds from disposal of intangible assets and property, plant and equipment	8,871	8,871	0
Payments for investments in property, plant and equipment and investment property	- 65,534	- 62,325	- 3,209
Payments for investments in intangible assets	- 5,391	- 5,391	0
Proceeds from disposal of non-current financial assets	4	4	0
Payments for investments in non-current financial assets	- 1,802	- 1,801	- 1
Payments for acquiring interests in consolidated companies and other business units	- 259	- 259	0
Proceeds from the disposal of interests in consolidated companies and other business units	1	1	0
Cash flow from investing activities	- 64,110	- 60,900	- 3,210	0
3. Cash flow from financing activities
Dividends paid to shareholders of the parent company	- 30,695	- 27,990	- 2,705
Dividends paid to minority shareholders	- 27,166	- 27,166	0
Redemption of lease liabilities	- 3,010	- 3,010	0
Payments for the redemption of bank loans	- 25,523	- 23,170	- 2,353
Cash flow from financing activities	- 86,394	- 81,336	- 5,058	0
4. Financial funds at the end of the period
Change in financial funds (subtotals 1.-3.)	13,887	10,590	3,297	0
Change in financial funds due to exchange rates	- 629	- 629	0
Financial funds at the beginning of the period	179,156	183,538	- 4,382	0
Financial funds at the end of the period	192,414	193,499	- 1,085	0

Cash flow statement HHLA subgroups

iN € THOUSAND; Port Logistics subgroup and Real Estate subgroup; ANNEX TO THE CONDENSED NOTES

1. Cash flow from operating activities Earnings before interest and taxes (EBIT) 130,001 119,461 10,318 222 Depreciation, amortization, impairment and reversals on non-financial non-current assets 85,085 82,249 3,058 - 222 Decrease in provisions -15,072 -13,310 -1,762 Gains/losses arising from the disposal of non-current assets -731 -768 37 Decrease in inventories, trade receivables and other assets not attributable to investing or financing activities 29,085 25,501 233 3,351 Decrease in trade liabilities and other liabilities not attributable to investing or financing activities -11,076 -10,312 -213 - 551 Interest received 4,606 4,587 129 - 110 Interest paid -16,359 -13,149 -3,320 110 Income tax paid - 59,683 - 56,904 -2,779 Exchange rate and other effects 1,073 1,073 0 Cash flow from operating activities 146,929 138,428 5,701 2,800 2. Cash flow from investing activities Proceeds from disposal of intangible assets and property, plant and equipment 2,841 2,835 6 Payments for investments in property, plant and equipment and investment property - 123,178 - 119,367 - 3,811 Payments for investments in intangible assets - 5,544 - 5,544 0 Proceeds from disposal of non-current financial assets 192 192 0 Payments for investments in non-current financial assets - 645 - 645 0 Payments for acquiring interests in consolidated companies and other business units - 571 - 571 0 Proceeds from the disposal of interests in consolidated companies and other business units 5,703 5,703 0 Cash flow from investing activities -121,202 -117,397 -3,805 0 3. Cash flow from financing activities Dividends paid to shareholders of the parent company - 72,680 - 69,975 - 2,705 Dividends paid to minority shareholders - 41,496 - 41,496 0 Redemption of lease liabilities - 2,333 - 2,333 0 Proceeds from the issuance of bank loans 39,889 39,889 0
Payments for the redemption of bank loans - 29,537 - 27,184 - 2,353
Cash flow from financing activities -106,157 -101,099 -5,058 0
4. Financial funds at the end of the period
Change in financial funds (subtotals 1.-3.) - 80,430 - 80,068 -3,162 2,800
Change in financial funds due to exchange rates 904 904 0
Financial funds at the beginning of the period 231,161 236,448 - 2,487 - 2,800
Financial funds at the end of the period 151,635 157,284 -5,649 0

Segment report HHLA Group

iN € THOUSAND; Business Segments; annex to the condensed notes

	Subgroup Port Logistics
1-9 2010	Container	Intermodal	Logistics
Segment revenue
Segment revenue from non-affiliated third parties	437,341	232,848	87,170
Inter-segment revenue	7,708	1,296	3,072
Total segment revenue	445,049	234,144	90,242
Earnings
EBITDA	176,108	29,601	11,093
EBITDA margin	39.6 %	12.6 %	12.3 %
EBIT	117,889	18,584	5,808
EBIT from continuing activities 1	117,889	16,641	5,808
Segment assets	875,439	254,463	106,490
Other segment information
Investments
Property, plant and equipment and investment properties	76,895	13,953	1,923
Intangible assets	3,669	320	35
Depreciation of property, plant and equipment and investment properties	55,579	10,784	5,111
Amortization of intangible assets	2,640	233	174
Non-cash items	5,027	2,156	2,138
Container throughput in thousand TEU	4,252
Container transport 3 in thousand TEU		1,261
1-9 2009 Segment revenue
Segment revenue from non-affiliated third parties	424,030	205,261	81,303
Inter-segment revenue	1,354	1,045	3,301
Total segment revenue	425,384	206,306	84,604
Earnings
EBITDA	172,759	23,548	10,698
EBITDA margin	40.6 %	11.4 %	12.6 %
EBIT	117,156	4,183	6,648
EBIT from continuing activities 2	117,156	17,834	6,648
Segment assets	822,282	245,655	110,003
Other segment information
Investments
Property, plant and equipment and investment
properties	66,237	33,187	17,764
Intangible assets	5,160	221	109
Depreciation of property, plant and equipment and investment properties	52,249	11,187	3,888
Amortization of intangible assets	3,354	233	162
Amortization and depreciation on non-current assets
held for sale		7,945
Non-cash items	8,220	6,955	1,452
Container throughput in thousand TEU	3,685
Container transport 3 in thousand TEU		1,112

¹ EBIT from continuing activities does not contain the result from CTL. 2 In order to faciliate comparison, the previous year's values have been presented without the current result from combisped and from CTL. 3 The transport volume was fully consolidated.

	Consolidation and reconciliation with Group	Total	Subgroup Real Estate
			Real Estate	Holding/Other
791,913	0	791,913	23,350	11,204
	- 110,044	110,044	1,919	96,049
		901,957	25,269	107,253
222,589	468	222,121	13,105	- 7,786
			51.9 %	- 7.3 %
141,544	2,079	139,465	10,030	- 12,846
139,566	2,044	137,522	10,030	- 12,846
1,659,224	183,399	1,475,825	155,429	84,004
97,155	0	97,155	3,209	1,175
	631	4,760	0	736
78,405	- 763	79,168	3,066	4,628
	- 848	3,488	9	432
	182	17,249	740	7,188
745,989	0	745,989	22,880	12,515
	- 92,520	92,520	1,906	84,914
		838,509	24,786	97,429
	- 297	215,383	13,376	- 4,998
			54.0 %	- 5.1 %
	1,811	128,190	10,318	- 10,115
	1,754	141,841	10,318	- 10,115
	126,607	1,420,402	156,602	85,860
215,086 130,001 143,595 1,547,009
123,178 5,544	- 350	123,528	3,811	2,529
	- 390	5,934	0	444
74,200	- 820	75,020	3,048	4,648
	-1,288	4,229	10	470
	0	7,945

¹ EBIT from continuing activities does not contain the result from CTL. 2 In order to faciliate comparison, the previous year's values have been presented without the current result from combisped and from CTL. 3 The transport volume was fully consolidated.

Statement of changes in equity HHLA Group

iN € THOUSAND

	Subscribed capital		Capital reserve		Retained consolidated earnings	Reserve for translation
	A division	S division	A division	S division
Balance as of 31.12.2008	69,975	2,705	139,222	506	311,693	- 15,548
Dividends					- 72,680
Total comprehensive income					45,565	- 3,812
Acquisition/disposal of minority interests in consolidated entities
Other changes					- 257
Balance as of 30.09.2009	69,975	2,705	139,222	506	284,322	- 19,360
Balance as of 31.12.2009	69,975	2,705	139,222	506	291,805	- 18,624
Dividends					- 30,695
Total comprehensive income					55,464	2,787
Balance as of 30.09.2010	69,975	2,705	139,222	506	316,574	- 15,836

Statement of changes in equity HHLA Port Logistics subgroup (A division)

iN € THOUSAND; Annex to the condensed notes

Parent Company Minority

Parent Company Minority

	Subscribed capital	Capital reserve	Retained consolidated earnings	Reserve for translation
Balance as of 31.12.2008	69,975	139,222	303,825	- 15,548
Dividends			- 69,975
Total comprehensive income subgroup			40,946	- 3,812
Acquisition/disposal of minority interests in consolidated entities
Other changes			- 257
Balance as of 30.09.2009	69,975	139,222	274,538	- 19,360
Balance as of 31.12.2009	69,975	139,222	280,300	- 18,624
Dividends			- 27,990
Total comprehensive income subgroup			50,836	2,787
Balance as of 30.09.2010	69,975	139,222	303,146	- 15,836

Consolidated equity	Minority interests
					Other comprehensive income
Total	Total	Total	Other	Deferred taxes on changes recognized directly in equity	Actuarial gains/losses	Cash flow hedges
682,580	108,466	574,114	11,611	- 25,475	79,786	- 361
- 114,176	- 41,496	- 72,680
80,228	26,349	53,879	55	- 5,763	18,568	- 734
245	245	0
- 51	231	- 282	- 25
648,826	93,795	555,031	11,641	- 31,238	98,354	- 1,095
636,985	102,225	534,760	11,687	- 17,808	56,161	- 869
- 57,861	- 27,166	- 30,695
85,322	26,771	58,551	- 19	- 225	1,191	- 647
664,446	101,830	562,616	11,668	- 18,033	57,352	- 1,516

Subgroup con solidated equity	Minority interests
					Other comprehensive income
Total	Total	Total	Other	Deferred taxes on changes recognized directly in equity	Actuarial gains/losses	Cash flow hedges
670,092	108,466	561,626	11,611	- 24,804	77,706	- 361
- 111,471	- 41,496	- 69,975
75,256	26,349	48,907	55	- 5,597	18,049	- 734
	245	0
	231	- 282	- 25
634,071	93,795	540,276	11,641	- 30,401	95,755	- 1,095
621,076	102,225	518,851	11,687	- 17,240	54,400	- 869
- 55,156	- 27,166	- 27,990
80,650	26,771	53,879	- 19	- 205	1,127	- 647
646,570	101,830	544,740	11,668	- 17,445	55,527	- 1,516

Statement of changes in equity HHLA Real Estate subgroup (S division)

iN € THOUSAND; ANNEX TO THE condensed NOTES

					Other comprehensive income	Subgroup consolidated equity
	Subscribed capital	Capital reserve	Retained consolidated earnings	Actuarial gains/losses	Deferred taxes on changes recognized directly in equity	Total
Balance as of 31.12.2008	2,705	506	20,223	2,080	- 671	24,843
Dividends			- 2,705			- 2,705
Total comprehensive income, subgroup			4,432	519	- 167	4,784
Balance as of 30.09.2009	2,705	506	21,951	2,599	- 838	26,922
Plus income statement consolidation effect			187			187
Less balance sheet consolidation effect			- 12,354			- 12,354
Total effects of consolidation			- 12,167			- 12,167
Balance as of 30.09.2009	2,705	506	9,784	2,599	-838	14,755
Balance as of 31.12.2009	2,705	506	23,610	1,761	-568	28,013
Dividends			- 2,705			- 2,705
Total comprehensive income, subgroup			4,435	64	- 21	4,478
Balance as of 30.09.2010	2,705	506	25,340	1,825	-589	29,787
Plus income statement consolidation effect			194			194
Less balance sheet consolidation effect			- 12,105			- 12,105
Total effects of consolidation			- 11,912			- 11,912
Balance as of 30.09.2010	2,705	506	13,429	1,825	- 589	17,875

Due to the use of rounding procedures in this report, minor deviations may occur in the calculation of totals and percentages.

Notes to the 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 (in the following also referred to as 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 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 FINANCIAL YEAR

The sale of the main assets of CTL Container Terminal Lübeck GmbH, Lübeck, in the Intermodal segment took place on 30 March 2010 with effect from 30 April 2010. The remaining assets were written back as of 30 June 2010 to a fair value of € 2,000 thousand and disposed of on 20 July 2010 with the conclusion of the sale agreement. The write-back and the proceeds of € 280 thousand from the disposal of the assets are shown in the consolidated income statement under other operating income.

HHLA Intermodal GmbH, Hamburg, and EUROGATE Intermodal GmbH, Hamburg, jointly established IPN Inland Port Network GmbH & Co. KG in the first quarter of 2010. The general partner is IPN Inland Port Network Verwaltungsgesellschaft mbH, Hamburg, which originated from a jointly acquired shelf company. We refer to the explanatory remarks in Note 4 for more details.

The merger agreement between CTT Besitzgesellschaft mbH, Hamburg, and HHLA Container Terminal Tollerort GmbH, Hamburg, was signed and approved at a shareholders' meeting on 9 June 2010. It became effective when it was entered into the commercial register on 22 June 2010.

A settlement was reached between the Hamburg Port Authority, Hamburg (HPA), UNIKAI Hafenbetrieb GmbH, Hamburg (UNIKAI), and LZU Leercontainer Zentrum Unikai GmbH, Hamburg (LZU), on the early termination of leases for port areas with effect from 30 June 2011. HPA is a related party of HHLA and is to pay total compensation of € 15,000 thousand to UNIKAI and LZU for the loss of income for the leased areas.

In September 2010 the HHLA subsidiary CTD Container-Transport-Dienst GmbH, Hamburg, and EKB Container Logistik GmbH & Co. KG, Bremen, established the joint venture CIT Container Inland Trucking GmbH, Hamburg. We refer to the explanatory remarks in Note 4 for more details.

The merger of UMSP Property a.s., Prague, SDM-DEPO a.s., Prague, and METRANS Plzeň a.s., Pankrác, with METRANS a.s., Prague, was formally adopted on 21 June 2010. The relevant contracts were signed before a notary on 21 July 2010. The merger takes effect on entry in the commercial register, which is still pending but expected for the fourth quarter of 2010.

Since January 2010, company management has been holding talks with employee representatives about continuing the "Securing the Future" project. These talks focus on reorganizing workflow and labour management at the HHLA Container Terminal Burchardkai GmbH, Hamburg (CTB), and optimizing productivity and capacity management between CTB and the HHLA Container Terminal Tollerort GmbH, Hamburg. Results are still pending.

There were no significant events in the reporting period other than those mentioned above.

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 2010 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 2009.

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 2009.

In addition, the company is applying the following rules for the first time as of 1 January 2010:

		I Amendments to IFRS 2 Group Cash-settled Share-based Payment Transactions
I	IFRS 3 (revised)	Business Combinations
I	IAS 24	Related Party Disclosures
	I Amendments to IAS 32	Financial Instruments: Presentation
I	IAS 39	Eligible Hedged Items – Amendments to IAS 39 Financial Instruments:
		Recognition and Measurement
I	IFRIC 15	Agreements for the Construction of Real Estate
I	IFRIC 17	Distributions of Non-cash Assets to Owners
I	IFRIC 18	Transfers of Assets from Customers
I	Various	Annual improvements to IFRS (May 2008)
I	Various	Annual improvements to IFRS (April 2009)

External staff costs, which were previously recognized in the cost of materials, have been reclassified since the first quarter of 2010. These expenses were reclassified as personnel expenses for the first time as of 31 March 2010. This item includes expenses for the deployment of employees of Gesamthafenbetriebs-Gesellschaft m.b.H., Hamburg. Due to the similarity of the employee situations, reclassifying these costs as personnel expenses makes our presentation more consistent. The presentation of the corresponding figures from the previous year's income statement has been adjusted. The following overview can be used for comparison purposes:

	Cost of materials		Personnel expenses
IN € Thous and	1-9 2010	1-9 2009	1-9 2010	1-9 2009
Before reclassification	- 298,960	- 256,659	- 206,920	- 211,207
Reclassification	27,629	17,679	- 27,629	- 17,679
After reclassification	- 271,331	- 238,980	- 234,549	- 228,886

In the second quarter of 2010, METRANS a.s., Prague, altered the useful lives of all the wagons in its balance sheet to a uniform 15 years, with retroactive effect as of 1 January 2010. For the financial year 2010 this reduces depreciation and amortization by € 1,958 thousand.

There were no other significant effects on the condensed interim consolidated financial statements.

4. PURCHASE AND SALE OF SHARES IN SUBSIDIARIES

The general partner IPN Inland Port Network Verwaltungsgesellschaft mbH, Hamburg, jointly established the limited partnership IPN Inland Port Network GmbH & Co. KG, Hamburg (IPN KG), with the limited partners HHLA Intermodal GmbH, Hamburg (HHLA Intermodal), and EUROGATE Intermodal GmbH, Hamburg (EUROGATE Intermodal). The object of the company is to plan, construct and market handling facilities for intermodal transport in the hinterland of German seaports and make equity investments in similar facilities. The capital contribution for both limited partners is € 62,500.

The general partner of IPN KG, IPN Inland Port Network Verwaltungsgesellschaft mbH, Hamburg (IPN Verwaltung), which originated from a jointly acquired shelf company, subsequently renamed, has nominal capital of € 25,000. The two partners, HHLA Intermodal and EUROGATE International, each hold 50 % of the nominal capital.

In July 2010 the competition authority approved an application to establish a joint venture by the HHLA subsidiary CTD Container-Transport-Dienst GmbH, Hamburg, and EKB Container Logistik GmbH & Co. KG, Bremen. The new company known as CIT Container Inland Trucking GmbH is based in Hamburg. The purpose of the company is the sale and brokerage of transport services for carrying out hinterland traffic delivery services in the Federal Republic of Germany. Its nominal capital amounts to € 25,000 and is held equally by both shareholders.

The companies mentioned above have not been included in the group of consolidated companies in these interim consolidated financial statements as they have not yet commenced operations.

5. EARNINGS PER SHARE

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

Net profit attributable to shareholders of the parent company	T€	1-9 2010 55,464	1-9 2009 45,565
Number of common shares in circulation		72,679,826	72,679,826
Basic earnings per share	€	0.76	0.63

Basic earnings per share for the months January to September 2010 were calculated for the subgroups as follows:

		Port Logistics	Real Estate
Net profit attributable to shareholders of the parent company	T€	50,836	4,629
Number of common shares in circulation		69,975,326	2,704,500
Basic earnings per share	€	0.73	1.71

Basic earnings per share for the months January to September 2009 were calculated for the subgroups as follows:

		Port Logistics	Real Estate
Net profit attributable to shareholders of the parent company	T€	40,946	4,619
Number of common shares in circulation		69,975,326	2,704,500
Basic earnings per share	€	0.59	1.71

Diluted earnings per share are identical to 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 16 June 2010, shareholders approved the proposal by the Executive Board and Supervisory Board to distribute a dividend of € 0.40 per share to shareholders of the Port Logistics subgroup and of € 1.00 per share to shareholders of the Real Estate subgroup. The dividend of € 30,695 thousand was paid accordingly on 17 June 2010.

7. SEGMENT REPORT

The segment report is presented as an annex to the Notes see page 32 et seq.

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 success in each segment and therefore aids the internal control function. In the second quarter of 2009, internal reporting was extended to include EBIT from continuing activities. This excludes the result of non-current assets held for sale. In the

third quarter of 2010, this concerns the result of CTL Container Terminal Lübeck GmbH, Lübeck (CTL) (previous year: results of combisped Hanseatische Spedition GmbH, Lübeck [combisped], and CTL). For more information, please refer to the annual report as of 31 December 2009.

The accounting and valuation principles applied for internal reporting comply with the principles described in Note 7 "Accounting and valuation principles" in the annual report as of 31 December 2009.

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

The HHLA Group continues to operate in the following four segments:

Container

This segment encompasses services relating to containers and ship handling. With its high-performance container terminals, HHLA maintains the Port of Hamburg's outstanding importance as a logistics hub for general cargo traffic.

Intermodal

The companies allocated to HHLA's Intermodal segment provide a comprehensive transport network encompassing rail, road and sea which links the German seaports with their hinterland in Europe.

Logistics

This segment combines a wide range of services – including special handling, contract logistics and advisory services – which go to make up Hamburg's diversity as an all-purpose port.

Real Estate

HHLA's Real Estate segment owns properties in and around the Port of Hamburg which are not used specifically for port handling. These include properties in the historical Speicherstadt warehouse district and the fish market area on the northern banks of the river Elbe.

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 subgroup Port Logistics 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, and financial assets which are not to be assigned to segment assets.

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

Reconciliation of the segment variable EBIT to earnings before taxes (EBT)

IN €Thous and	1-9 2010	1-9 2009
Total segment earnings (EBIT)	139,465	128,190
Elimination of intercompany relations between segments and subgroups	2,079	1,811
Group (EBIT)	141,544	130,001
Earnings from associates accounted for using the equity method	167	51
Net interest	- 26,500	- 24,353
Other financial results	336	404
Earnings before tax (EBT)	115,547	106,103

8. EQUITY

The Annual General Meeting passed a resolution on 16 June 2010 to expand the articles of association for conditional capital in Article 3 (6). The nominal capital has been increased conditionally by up to € 6,900 thousand by issuing up to 6,900,000 new registered Class A shares. The increase was entered in the commercial register on 21 July 2010.

The change of € 2,787 thousand in the reserve for translation differences results mainly from exchange rate movements for the Ukrainian hryvnia.

The components and development of HHLA 's equity for the first nine months of 2010 and 2009 are presented in the statement of changes in equity.

9. PENSION PROVISIONS

The calculation of pension provisions as of 30 September 2010 was based on an interest rate of 4.75 % (31 December 2009: 4.75 %; 30 September 2009: 6.00 %). As a result of adjustments to other measurement parameters there were changes in the actuarial gains or losses that are posted to equity without effect on income in the reporting period from 1 January to 30 September 2010.

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

IN €Thous and	2010	2009
Accumulated actuarial gains on 1 January	56,253	79,865
Change in financial year	1,163	18,589
Accumulated actuarial gains on 30 September	57,416	98,454

Calculating pension provisions as of 30 September 2010 with a discount rate of 4.25 % would change the actuarial gains without effect on income by around € 17.5 million. Cumulatively, it would remain a result of around € 40 million.

10. INVESTMENTS

As of 30 September 2010, total investments throughout the HHLA Group amounted to € 102.5 million.

Lease agreements exist between the Free and Hanseatic City of Hamburg, and/or HPA , and the HHLA Group for quay walls in the Port of Hamburg. In the past these agreements have been classified as operating leases. Negotiations are currently taking place with HPA , a related party of HHLA , on the use of a new quay wall in the Port of Hamburg. Based on the state of negotiations for the lease of another berth at CTB, at the time these interim consolidated financial statements were prepared, this lease and in all probability those for all berths to be newly leased in future, are to be classified as finance leases in accordance with IAS 17. A corresponding asset and liability were recognized for the first time amounting to € 30,359 thousand as of 1 June 2010.

The largest investments up to the end of the third quarter of 2010 were made in the Container and Intermodal segments.

The most significant investment commitments as of 30 September 2010 included an amount of € 68.2 million for the Container segment and € 13.6 million for the Intermodal segment.

11. LITIGATION

Companies within the HHLA Group were involved in legal disputes within the scope of their commercial activities as of 30 September 2010. As of the balance sheet date there are no legal disputes which could have a substantial effect on the Group's financial position.

Appropriate provisions for the risks and costs of litigation have been made to cover any financial expense from court proceedings if the event took place before the balance sheet date and the company's legal representatives estimate the probability of an outflow of economic resources at more than 50 %.

12. EVENTS AFTER THE BALANCE SHEET DATE

There were no transactions of special significance after the balance sheet date of 30 September 2010.

Assurance of the legal representatives

We herewith give our assurance that, to the best of our knowledge, the consolidated interim financial statements convey a true and fair view of the net assets, financial position and results of operations of the Group in accordance with the applicable accounting principles, and that in the Group management report for the interim period the course of business, including the business earnings, and the situation of the Group are described such that a true and fair view is conveyed, and that there is a description of the principal opportunities and risks of probable development of the Group in the remainder of the financial year.

Hamburg, 12 November 2010

HAMBURGER HAFEN UND LOGISTIK AKTIENGESELLSCHAFT

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

For specialist terminology and financial terms see the annual report 2009, page 198 et seq.

note

financial calendar

31 March 2011 annual report 2010

13 May 2011 interim report JANUAR y – march 2011

16 June 2011 annual general meeting

12 August 2011 interim report JANUAR y – Juni 2011

11 November 2011 interim report JANUAR y – SEPTEM BER 2011

The financial calendar of HHLA with other events such as investor conferences and road shows can be found on www.hhla.de/financial-calendar

imprint

Hamburger Hafen und Logistik Aktiengesellschaft Bei St. Annen 1, 20457 Hamburg, Germany, tel.: +49-40-3088-0, fax: +49-40-3088-3355, www.hhla.de, info@hhla.de

Investor Relations: Tel.: +49-40-3088-3100, fax: +49-40-3088-55-3100, investor-relations@hhla.de

corporate communication: Tel.: +49-40-3088-3446, fax: +49-40-3088-3355, unternehmenskommunikation@hhla.de

This interim report was published on 12 November 2010.

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Hamburger Hafen und Logistik Aktiengesellschaft Bei St. Annen 1, 20457 Hamburg, Germany, Tel.: +49-40-3088-0, Fax: +49-40-3088-3355, www.hhla.de, info@hhla.de