AI Terminal
Hamburger Hafen und Logistik AG
Quarterly Report • May 15, 2023
195_10-q_2023-05-15_02001711-b96e-42ee-9747-da701d6b0aef.pdf
Quarterly Report
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Interim Statement
2023 JANUARY TO MARCH Hamburger Hafen und Logistik Aktiengesellschaft
Key figures
HHLA Group
| in € million | 1–3 2023 | 1–3 2022 | Change |
|---|---|---|---|
| Revenue and earnings | |||
| Revenue | 364.7 | 386.2 | - 5.6 % |
| EBITDA | 67.2 | 96.6 | - 30.4 % |
| EBITDA margin in % | 18.4 | 25.0 | - 6.6 pp |
| EBIT | 22.9 | 53.7 | - 57.3 % |
| EBIT margin in % | 6.3 | 13.9 | - 7.6 pp |
| Profit after tax | 7.6 | 30.9 | - 75.3 % |
| Profit after tax and minority interests | 2.8 | 22.8 | - 87.7 % |
| Cash flow statement and investments | |||
| Cash flow from operating activities | 77.5 | 89.1 | - 13.0 % |
| Investments | 106.0 | 53.3 | 99.0 % |
| Performance data | |||
| Container throughput in thousand TEU | 1,416 | 1,740 | - 18.6 % |
| Container transport in thousand TEU | 408 | 431 | - 5.4 % |
| in € million | 31.03.2023 | 31.12.2022 | Change |
| Balance sheet | |||
| Balance sheet total | 2,890.0 | 2,770.9 | 4.3 % |
| Equity | 882.3 | 873.3 | 1.0 % |
| Equity ratio in % | 30.5 | 31.5 | - 1.0 pp |
| Employees | |||
| Number of employees | 6,695 | 6,641 | 0.8 % |
HHLA subgroups
| Port Logistics subgroup1,2 | Real Estate subgroup1,3 | |||||
|---|---|---|---|---|---|---|
| in € million | 1–3 2023 | 1–3 2022 | Change | 1–3 2023 | 1–3 2022 | Change |
| Revenue | 355.1 | 377.5 | - 5.9 % | 11.6 | 10.7 | 8.7 % |
| EBITDA | 60.6 | 90.2 | - 32.9 % | 6.7 | 6.4 | 4.8 % |
| EBITDA margin in % | 17.1 | 23.9 | - 6.8 pp | 57.4 | 59.5 | - 2.1 pp |
| EBIT | 18.5 | 49.2 | - 62.5 % | 4.3 | 4.4 | - 1.7 % |
| EBIT margin in % | 5.2 | 13.0 | - 7.8 pp | 37.4 | 41.4 | - 4.0 pp |
| Profit after tax and minority interests | 0.4 | 20.3 | - 98.2 % | 2.4 | 2.5 | - 3.2 % |
| 4 Earnings per share in € |
0.00 | 0.28 | - 98.2 % | 0.90 | 0.93 | - 3.2 % |
1 Before consolidation between subgroups
2 Listed class A shares
3 Non-listed class S shares
4 Basic and diluted
Foreword
Dear shareholders,
With its network stretching from the ports of Hamburg, Tallinn, Odessa and Trieste into the European hinterland, Hamburger Hafen und Logistik AG (HHLA) is well positioned to deal with challenging times. The company faced a particularly adverse operating environment in the past year. And although a further difficult year lies ahead in 2023, HHLA can draw on its many years of experience in logistics to master these challenges. As a logistics company, we also constantly reflect the current status of the global economy. The war in Ukraine and the resulting geopolitical tensions have further exacerbated market uncertainty – and this is also impacting HHLA's business. Moreover, increased producer prices are causing consumer demand to weaken.
Against the backdrop of this economic slowdown, container throughput and transport in the first quarter of the year were very weak, as expected. HHLA's container terminals handled around 1.4 million standard containers (TEU). In addition to the shortfall in throughput at Container Terminal Odessa (CTO) as a result of the war, the year-on-year decrease of 18.6 percent was mainly attributable to a strong decline in volumes of the Far East shipping region at the container terminals in Hamburg. We expect to see a market recovery – especially on Far East routes – in the second quarter.
Seaborne container handling is still suspended at CTO. Despite the difficult situation, our employees there continue to work on onshore operations. Since December 2022, the terminal has been involved in grain transshipment, conducting seaborne handling for grain ships whenever the situation there allows.
In the highly competitive market for hinterland container transport, HHLA's Intermodal companies reported a decrease in volumes of 5.4 percent. Rail and road transport were equally affected.
Future logistics must be sustainable. We have been addressing this challenge for many years now and will continue to invest in sustainable logistics.
Angela Titzrath, Chief Executive Officer
HHLA is preparing for the future and continues to invest in innovative and sustainable logistics. For HHLA, one thing is clear: the logistics industry of the future must be sustainable – and we have been addressing this challenge for many years now.
In the Container segment, for example, we continued to drive the implementation of our comprehensive efficiency programme at our terminals in Hamburg, including the related organisational realignment. By boosting efficiency and performance, we aim to secure jobs and sites over the long term. Another forward-looking project is the construction of a hydrogen filling station, which was commissioned in the first quarter and is scheduled to be completed and commence operations as part of the "Clean Port & Logistics" innovation cluster at Container Terminal Tollerort (CTT) by the end of the year. Together with partner companies, we are already working on concepts to quickly bring hydrogen-powered heavy goods vehicles to market.
HHLA continued to invest in the expansion of its network in the first quarter of 2023: with a new location in Kazakhstan, HHLA has been able to offer its customers a route linking Europe, the Caucasus region and central Asia since February 2023. In March, our rail subsidiary Metrans acquired a stake in the Croatian company Adria Rail, thus extending its network in the promising southern European market. This will allow Metrans to expand its European network of inland terminals at important hubs to a total of 21 terminals. These investments are an important element of the continued shift of road transport to more environmentally friendly rail transport. With our HHLA Pure product, Metrans already transports almost half of its cargo volume on a carbon-free basis. This represented almost one million standard containers last year.
The HHLA Next innovation unit has invested in FERNRIDE and launched a pilot project for automated driving at HHLA TK Estonia. Together, new solutions are being developed for the gradual automation of trucks in real-life situations. In addition, HHLA Sky has entered into an innovation partnership with Hamburg's Landesbetrieb Straßen, Brücken und Gewässer (LSBG) (state agency for roads, bridges and waterways). Using data captured from the air, the aim is to facilitate the maintenance, planning and development of bridges, buildings, dykes and roads.
HHLA firmly believes that only a sustainable logistics network can satisfy the growing requirements. We will therefore continue to focus on our strategy based on sustainability and growth as we resolutely pursue our goal of making this vision a reality.
The planned acquisition of a non-controlling interest in Container Terminal Tollerort (CTT) by our long-standing customer COSCO SHIPPING Ports Limited (CSPL) continued to dominate our attention in the first quarter. All parties involved took the German government's concerns very seriously, particularly regarding security matters in the course of the investment review. It was possible to clarify these concerns together during intensive and constructive discussions. We are delighted that we will soon be able to finalise the transaction together with COSCO. We are aware of the sensitivity of this project and will continue our cooperation with COSCO in a responsible manner.
Yours,
Angela Titzrath Chairwoman of the Executive Board
Economic Report
Course of business and economic situation
Key figures
| in € million | 1–3 2023 | 1–3 2022 | Change |
|---|---|---|---|
| Revenue | 364.7 | 386.2 | - 5.6 % |
| EBITDA | 67.2 | 96.6 | - 30.4 % |
| EBITDA margin in % | 18.4 | 25.0 | - 6.6 pp |
| EBIT | 22.9 | 53.7 | - 57.3 % |
| EBIT margin in % | 6.3 | 13.9 | - 7.6 pp |
| Profit after tax and minority interests | 2.8 | 22.8 | - 87.7 % |
| ROCE in % | 4.0 | 9.5 | - 5.5 pp |
Significant events and transactions
As of 31 March 2023, HHLA's group of consolidated companies was expanded to include Survey Compass GmbH, Treben, Germany, which was acquired in January 2023 and has been assigned to the Logistics segment, as well as ADRIA RAIL d.o.o., Rijeka, Croatia, which was acquired in March 2023 and has been assigned to the Intermodal segment.
On 21 March 2023, the Supervisory Board of HHLA approved the option in place for HHLA PLT Italy S.r.l., Trieste, Italy, to expand the existing infrastructure. HHLA therefore has the opportunity to gradually increase its stake in the company by acquiring the shares of former shareholders in conjunction with further capital increases. The contractual terms are currently being negotiated.
Within the Port Logistics and Real Estate subgroups, both the key economic indicators for the first three months of 2023 and HHLA's actual economic performance were largely in line with the performance forecast in the 2022 combined management report. However, as segment performance in the first quarter was uneven, the forecast for the 2023 financial year has been adjusted compared to the most recently stated expectations.
However, EBIT expectations for the Port Logistics subgroup and the Group remain unchanged within the stated ranges. There were no other significant events or transactions in HHLA's operating environment or within the Group during the reporting period which had a significant impact on its results of operations, net assets and financial position.
Earnings position
Container throughput at HHLA's container terminals decreased year-on-year by 18.6 % to 1,416 thousand TEU (previous year: 1,740 thousand TEU). At the container terminals in Hamburg, the decline was mainly due to significantly lower volumes in the Far East shipping region, and in particular China. Volumes to and from Russia also fell strongly as a result of the sanctions imposed by the EU in the previous year.
The strong decrease at the international terminals was primarily attributable to the official suspension of seaborne handling at the terminal in Odessa following the Russian invasion of Ukraine on 24 February 2022. Only grain ships covered by the Black Sea Grain Initiative are being handled at Container Terminal Odessa (CTO).
There was a significant decrease in container transport of 5.4 % to 408 thousand TEU (previous year: 431 thousand TEU). A moderate decline in road transport contrasted with a strong decrease in rail transport, particularly on routes to northern German seaports.
The HHLA Group's revenue fell by 5.6 % to € 364.7 million in the reporting period (previous year: € 386.2 million). The main reasons for this were the sharp decline in volumes and the decrease in storage fees at the Hamburg container terminals as well as the suspension of seaborne handling at the Odessa terminal. With regard to rail transport, the strong rise in energy prices and the resulting related price adjustment led to an increase in revenue.
In its Container, Intermodal and Logistics segments, the listed Port Logistics subgroup generated revenue of € 355.1 million in the reporting period (previous year: € 377.5 million). This decrease almost matched the trend for the Group as a whole. The non-listed Real Estate subgroup posted revenue of € 11.6 million (previous year: € 10.7 million).
Other operating income rose by 42.9 % to € 17.7 million (previous year: € 12.4 million).
Operating expenses increased by 4.6 % to € 362.5 million (previous year: € 346.6 million). Whereas personnel expenses fell slightly, there was a moderate increase in depreciation and amortisation, a significant rise in the cost of materials and a strong increase in other operating expenses. The decrease in personnel expenses was largely related to the downward trend in performance data. The increase in depreciation and amortisation resulted from the expansion of business in rail transport and from capitalisations following the completion of project development in the Speicherstadt historical warehouse district. With regard to the cost of materials, increased costs for the purchase of services, especially energy costs, impacted rail transport. The sharp rise in other operating expenses resulted mainly from increased maintenance expenses at the Hamburg container terminals.
The operating result (EBIT) decreased by € 30.8 million or 57.3 % to € 22.9 million in the reporting period (previous year: € 53.7 million). The EBIT margin amounted to 6.3 % (previous year: 13.9 %). In the Port Logistics subgroup, EBIT fell by 62.5 % to € 18.5 million (previous year: € 49.2 million), and in the Real Estate subgroup by 1.7 % to € 4.3 million (previous year: € 4.4 million).
Net expenses from the financial result increased by € 1.8 million or 23.5 % to € 9.3 million (previous year: € 7.6 million).
At 43.7 %, the Group's effective tax rate was higher than in the previous year (previous year: 33.0 %). This increase in the tax rate in the first quarter of 2023 was mainly due to the negative result of the tax entity in the A division of HHLA and the associated impact on the tax expense.
Profit after tax decreased by 75.3 %, from € 30.9 million to € 7.6 million. Profit after tax and minority interests was significantly down on the previous year at € 2.8 million (previous year: € 22.8 million). Earnings per share amounted to € 0.04 (previous year: € 0.30). Earnings per share of the listed Port Logistics subgroup were € 0.00 (previous year: € 0.28). Earnings per share of the non-listed Real Estate subgroup were slightly down year-on-year at € 0.90 (previous year: € 0.93). The return on capital employed (ROCE) amounted to 4.0 % (previous year: 9.5 %).
Financial position
Balance sheet analysis
Compared to year-end 2022, the HHLA Group's balance sheet total grew by € 119.1 million to € 2,890.0 million as of 31 March 2023 (31 December 2022: € 2,770.9 million).
Balance sheet structure
| in € million | 31.03.2023 | 31.12.2022 |
|---|---|---|
| Assets | ||
| Non-current assets | 2,360.1 | 2,278.4 |
| Current assets | 529.9 | 492.5 |
| 2,890.0 | 2,770.9 | |
| Equity and liabilities | ||
| Equity | 882.3 | 873.3 |
| Non-current liabilities | 1,631.5 | 1,571.9 |
| Current liabilities | 376.2 | 325.7 |
| 2,890.0 | 2,770.9 |
On the assets side of the balance sheet, non-current assets increased by € 81.7 million to € 2,360.1 million (31 December 2022: € 2,278.4 million). The change was mainly due to investments made in property, plant and equipment and intangible assets. Current assets rose by € 37.4 million to € 529.9 million (31 December 2022: € 492.5 million). The change resulted mainly from a rise in cash, cash equivalents and short-term deposits. A decrease in trade receivables had an opposing effect.
On the liabilities side, equity rose by € 9.0 million to € 882.3 million compared to year-end 2022 (31 December 2022: € 873.3 million). This increase was largely due to the positive result for the reporting period of € 7.6 million. The equity ratio decreased to 30.5 % (31 December 2022: 31.5 %).
Non-current liabilities rose by € 59.6 million to € 1,631.5 million (31 December 2022: € 1,571.9 million). The increase is primarily due to the change in non-current financial liabilities. The rise in current liabilities of € 50.5 million to € 376.2 million (31 December 2022: € 325.7 million) was mainly attributable to the increase in current financial liabilities.
Investment analysis
The investment volume in the reporting period totalled € 106.0 million, well above the prioryear figure of € 53.3 million. This was due to the postponement of asset additions from the previous year to the current financial year. Capital expenditure in the first three months of 2023 focused mainly on the procurement of large-scale equipment for horizontal transport and storage cranes at HHLA's container terminals in the Port of Hamburg. Investments were also made in the purchase of locomotives and container wagons as well as in the expansion of the Metrans Group's hinterland terminals. In the Real Estate subgroup, capital expenditure focused on the development of the Speicherstadt historical warehouse district in Hamburg.
Liquidity analysis
Liquidity analysis
| in € million | 1–3 2023 | 1–3 2022 |
|---|---|---|
| Financial funds as of 01.01. | 171.5 | 173.0 |
| Cash flow from operating activities | 77.5 | 89.1 |
| Cash flow from investing activities | - 118.8 | - 30.8 |
| Free cash flow | - 41.3 | 58.3 |
| Cash flow from financing activities | 61.1 | 1.0 |
| Change in financial funds | 19.9 | 59.1 |
| Financial funds as of 31.03. | 191.4 | 232.2 |
| Short-term deposits | 50.0 | 40.0 |
| Available liquidity | 241.4 | 272.2 |
Cash flow from operating activities fell by € 11.6 million to € 77.5 million as of 31 March 2023 (previous year: € 89.1 million). This was mainly due to the year-on-year decrease in EBIT and the smaller increase in trade liabilities and other liabilities compared to the previous year. The change in trade receivables and other assets in particular had an opposing effect.
Investing activities led to a net cash outflow of € 118.8 million (previous year: € 30.8 million). This development was largely due to payments for (previous year: proceeds from) short-term deposits and payments for capital expenditure on property, plant and equipment and investment property.
Cash flow from financing activities amounted to € 61.1 million, representing a year-onyear change of € 60.1 million on the prior-year figure of € 1.0 million. This was primarily due to the increase in new financial loans compared to the same period last year.
Financial funds totalled € 191.4 million as of 31 March 2023 (previous year: € 232.2 million). Including all short-term deposits, the Group's available liquidity at the end of the first quarter of 2023 amounted to € 241.4 million (previous year: € 272.2 million). As of 31 March 2023, available liquidity comprised cash pooling receivables from HGV Hamburger Gesellschaft für Vermögens- und Beteiligungsmanagement of € 61.4 million (previous year: € 102.3 million), as well as cash, cash equivalents and short-term deposits of € 180.0 million (previous year: € 170.0 million).
Segment performance
Container segment
Key figures
| in € million | 1–3 2023 | 1–3 2022 | Change |
|---|---|---|---|
| Revenue | 175.8 | 216.4 | - 18.8 % |
| EBITDA | 30.8 | 62.8 | - 50.9 % |
| EBITDA margin in % | 17.5 | 29.0 | - 11.5 pp |
| EBIT | 5.7 | 37.8 | - 84.9 % |
| EBIT margin in % | 3.2 | 17.4 | - 14.2 pp |
| Container throughput in thousand TEU | 1,416 | 1,740 | - 18.6 % |
In the first three months of 2023, container throughput at HHLA's container terminals decreased year-on-year by 18.6 % to 1,416 thousand standard containers (TEU) (previous year: 1,740 thousand TEU). At 1,360 thousand TEU, throughput volume at the Hamburg container terminals was down 15.9 % on the same period last year (previous year: 1,618 thousand TEU). The main driver of this development was the strong decline in volumes of the Far East shipping region – China in particular. The positive momentum from North American cargo volumes was unable to offset this development. Feeder traffic volumes were also down sharply on the previous year. In addition to Swedish and Polish routes, there was also a sharp fall in Russian volumes – in particular as a result of the EU sanctions. The proportion of seaborne handling by feeders decreased moderately year-onyear to 18.1 % (previous year: 21.2 %).
Throughput volume at the international container terminals fell by 53.9 % year-on-year to 56 thousand TEU (previous year: 122 thousand TEU). This was due to the sharp decline in cargo volumes at the Odessa terminal after seaborne handling there was suspended by the authorities at the end of February 2022 following the Russian invasion. There was also an absence of extra calls at the TK Estonia container terminal as an alternative to Russian ports in the first quarter of 2023. An increase in throughput volumes at the multi-function terminal PLT Italy was unable to fully offset this shortfall.
Segment revenue fell by 18.8 % in the reporting period to € 175.8 million (previous year: € 216.4 million). This was mainly due to decreased volumes and shorter dwell times at the Hamburg container terminals, which had led to increased storage fees in the same period last year due to supply chain disruptions. Revenue was also burdened by the transfer of HHLA-Personal-Service GmbH (HPSG) from the pro-forma Holding/Other segment to the Container segment.
EBIT costs fell moderately by 4.8 % in the reporting period. This was mainly due to the significant volume-related decline in personnel expenses and the CTO closure since March last year, as well as the reversal of provisions for ship delays at the Hamburg container terminals. The decrease in energy costs was proportionately less than the decline in volumes. This figure includes extraordinary income from the sale of gas rights as part of the power barge shutdown. Compared to the first quarter of the previous year, EBIT costs at the Trieste terminal also rose significantly due to additional cargo volumes. There was a negative earnings effect from the integration of HHLA-Personal-Service GmbH into the Container segment.
Against this background, the operating result (EBIT) decreased by 84.9 % to € 5.7 million (previous year: € 37.8 million). The international terminals TK Estonia and PLT Italy both made positive contributions to the operating result. The EBITDA margin fell by 14.2 percentage points to 3.2 % (previous year: 17.4 %).
HHLA has continued to invest in more efficient and climate-friendly container terminals in 2023. At Container Terminal Altenwerder (CTA), the procurement of ten more batterypowered tractor units was approved. In addition, funding applications were submitted for the corresponding energy infrastructure. The electrification of the fleet of automated guided vehicles (AGVs) is due to be completed during the first half of 2023. Where necessary, these AGVs are supplied with green electricity completely automatically at a total of 18 charging stations. Following the completion of field tests, work is underway to implement them in regular operations. In addition, first-stage testing has taken place for automated truck handling. A further eight hybrid transport vehicles – which consume significantly less fuel than diesel-powered vehicles – were ordered for Container Terminal Tollerort (CTT) and received in early April. Container Terminal Burchardkai (CTB) continued to drive the expansion and commissioning of additional blocks in the block storage system, thus contributing to efforts to modernise and enhance the efficiency of the terminals.
Intermodal segment
Key figures
| in € million | 1–3 2023 | 1–3 2022 | Change |
|---|---|---|---|
| Revenue | 157.3 | 138.7 | 13.4 % |
| EBITDA | 33.9 | 33.6 | 0.9 % |
| EBITDA margin in % | 21.6 | 24.2 | - 2.6 pp |
| EBIT | 21.4 | 21.6 | - 1.0 % |
| EBIT margin in % | 13.6 | 15.6 | - 2.0 pp |
| Container transport in thousand TEU | 408 | 431 | - 5.4 % |
In the highly competitive market for container traffic in the hinterland of major seaports, HHLA's transport companies recorded significantly lower volumes in the first quarter of 2023. Container transport decreased by a total of 5.4 % to 408 thousand standard containers (TEU) (previous year: 431 thousand TEU).
Rail transport fell year-on-year by 5.6 % to 340 thousand TEU (previous year: 361 thousand TEU). All the main routes were affected by the decrease, with the northern German seaports hit particularly hard. Only Rotterdam traffic managed a significant increase, albeit at a comparatively low level. There was a moderate decrease in road transport of 4.2 % to 68 thousand TEU (previous year: 71 thousand TEU).
With a year-on-year increase of 13.4 % to € 157.3 million (previous year: € 138.7 million), the development of revenue contrasted sharply with that of transport volumes. This was due to the rise in transport revenue in the previous year, which was adjusted to the increased costs for the purchase of services, in particular energy costs, at a later point in time.
The operating result (EBIT) decreased by 1.0 % to € 21.4 million in the reporting period (previous year: € 21.6 million). The EBIT margin fell by 2.0 percentage points to 13.6 % (previous year: 15.6 %). The main reason for the downward EBIT trend was the decrease in transport volumes. The previous year's result had been adversely affected by storm damage in February and disruptions to international supply chains.
Logistics segment
Key figures
| in € million | 1–3 2023 | 1–3 2022 | Change |
|---|---|---|---|
| Revenue | 21.1 | 19.2 | 9.8 % |
| EBITDA | 2.7 | 1.3 | 111.1 % |
| EBITDA margin in % | 13.0 | 6.7 | 6.3 pp |
| EBIT | 0.4 | - 0.7 | pos. |
| EBIT margin in % | 1.7 | - 3.6 | pos. |
| At-equity earnings | 0.7 | 0.6 | 16.9 % |
At € 21.1 million, revenue of the consolidated companies in the first three months was up 9.8 % on the prior-year figure (previous year: € 19.2 million). This positive development was largely due to vehicle logistics.
The operating result (EBIT) amounted to € 0.4 million in the reporting period (previous year: € - 0.7 million). This improvement in earnings was primarily due to vehicle logistics and consultancy activities.
At-equity earnings of the Logistics segment amounted to € 0.7 million in the reporting period (previous year: € 0.6 million).
Real Estate segment
Key figures
| in € million | 1–3 2023 | 1–3 2022 | Change |
|---|---|---|---|
| Revenue | 11.6 | 10.7 | 8.7 % |
| EBITDA | 6.7 | 6.4 | 4.8 % |
| EBITDA margin in % | 57.4 | 59.5 | - 2.1 pp |
| EBIT | 4.3 | 4.4 | - 1.7 % |
| EBIT margin in % | 37.4 | 41.4 | - 4.0 pp |
According to Grossmann & Berger's latest market report, 105,000 m2 of office space was let in Hamburg during the reporting period. This represents a decrease of 22 % on the previous year's strong figure, when the impact of the war in Ukraine was not yet felt. Despite the rise in the vacancy rate from 3.5 % in the previous year to the current figure of 4.0 %, Grossmann & Berger believes that supply and demand are balanced in the Hamburg market.
HHLA's properties in the Speicherstadt historical warehouse district and the fish market area maintained their stable trend with almost full occupancy in the first quarter of the current financial year.
Revenue rose significantly by 8.7 % in the reporting period to € 11.6 million (previous year: € 10.7 million). In addition to increased income from revenue-based rent agreements, this growth was due in particular to rising rental income from newly developed properties in the Speicherstadt historical warehouse district.
The growth generated in revenue was offset by a planned temporary vacancy of a building in the Speicherstadt historical warehouse district following a change of tenant and an increase in maintenance expenses. In addition, depreciation and amortisation rose as a result of capitalisations following the completion of project developments. As a result, the cumulative operating result (EBIT) decreased slightly by 1.7 % to € 4.3 million in the reporting period (previous year: € 4.4 million).
Events after the balance sheet date
There were no notable events after the balance sheet date of 31 March 2023.
Risks and opportunities
With regard to the HHLA Group's risk and opportunity position, the statements made in the 2022 combined management report continue to apply, unless otherwise indicated in this report. The risks identified still do not threaten the ongoing existence of the Group. As far as the future is concerned, there are also no discernible risks at present that could jeopardise the continued existence of the company.
Business forecast
There were no new events of material importance in the reporting period. The disclosures made in the 2022 combined management report regarding the expected course of business in 2023 therefore continue to apply.
The economic development of HHLA in the first quarter of 2023 was largely in line with expectations. However, as segment performance in the first three months was uneven, the forecast for the current financial year has been adjusted.
In view of the strong decline in throughput volumes caused by adverse macroeconomic conditions in the first three months of the year, only a slight year-on-year increase in container throughput is now predicted for the Port Logistics subgroup (previously: moderate increase). The situation is expected to improve in the second quarter of 2023 with a corresponding upturn in volumes, especially in the Far East shipping region. A moderate year-on-year increase is still forecast for container transport.
A slight increase in revenue is now expected for the Port Logistics subgroup (previously: on a par with the previous year). This forecast is based on a strong increase (previously: significant increase) in revenue in the Intermodal segment. By contrast, a moderate decrease (previously: slight decrease) is anticipated for the Container segment based on expected volumes.
The operating result (EBIT) for the Port Logistics subgroup is still expected to be in the range of € 145 million to € 175 million. This is based on the assumption that the adjusted forecast for the development of volumes can be partly offset by a package of measures implemented to stabilise earnings. Within this range, a strong decrease in segment EBIT continues to be expected in the Container segment and a moderate increase in the Intermodal segment.
For the Real Estate subgroup, revenue is still expected to remain at the prior-year level with a significant decline in the operating result (EBIT).
Overall, a slight increase in revenue is forecast at Group level (previously: on a par with the previous year). An operating result in the range of € 160 million to € 190 million continues to be regarded as possible.
Capital expenditure at Group level is still expected to be in the range of € 250 million to € 300 million. With anticipated investments of € 220 million to € 270 million, the Port Logistics subgroup will account for the majority of this expenditure. In the Container segment, investments will focus on the efficient use of existing terminal space in the Port of Hamburg and the expansion of foreign terminals, and in the Intermodal segment on the expansion of the Group's own transport and handling capacities.
Hamburg, 4 May 2023
Hamburger Hafen und Logistik Aktiengesellschaft
The Executive Board
Angela Titzrath Tanja Dreilich Jens Hansen Torben Seebold
Income statement
| in € thousand | 1–3 2023 Group |
1–3 2023 Port Logistics |
1–3 2023 Real Estate |
1–3 2023 Consolidation |
|---|---|---|---|---|
| Revenue | 364,679 | 355,071 | 11,616 | - 2,008 |
| Changes in inventories | 1,550 | 1,550 | 0 | 0 |
| Own work capitalised | 1,452 | 1,130 | 0 | 322 |
| Other operating income | 17,726 | 16,278 | 1,885 | - 437 |
| Cost of materials | - 128,503 | - 126,074 | - 2,596 | 167 |
| Personnel expenses | - 143,022 | - 142,466 | - 556 | 0 |
| Other operating expenses | - 46,648 | - 44,920 | - 3,684 | 1,956 |
| Earnings before interest, taxes, depreciation and amortisation (EBITDA) |
67,234 | 60,569 | 6,665 | 0 |
| Depreciation and amortisation | - 44,322 | - 42,111 | - 2,318 | 107 |
| Earnings before interest and taxes (EBIT) | 22,912 | 18,458 | 4,347 | 107 |
| Earnings from associates accounted for using the equity method |
741 | 741 | 0 | 0 |
| Interest income | 2,083 | 1,999 | 90 | - 6 |
| Interest expenses | - 12,171 | - 11,352 | - 825 | 6 |
| Financial result | - 9,348 | - 8,612 | - 736 | 0 |
| Earnings before tax (EBT) | 13,564 | 9,846 | 3,611 | 107 |
| Income tax | - 5,931 | - 4,659 | - 1,245 | - 27 |
| Profit after tax | 7,633 | 5,187 | 2,366 | 79 |
| of which attributable to non-controlling interests | 4,831 | 4,831 | 0 | |
| of which attributable to shareholders of the parent company |
2,802 | 356 | 2,445 | |
| Earnings per share, basic and diluted, in € | 0.04 | 0.00 | 0.90 |
Statement of comprehensive income
| in € thousand | 1–3 2023 Group |
1–3 2023 Port Logistics |
1–3 2023 Real Estate |
1–3 2023 Consolidation |
|---|---|---|---|---|
| Profit after tax | 7,633 | 5,187 | 2,366 | 79 |
| Components which cannot be transferred to the income statement |
||||
| Actuarial gains/losses | - 3,474 | - 3,429 | - 45 | |
| Deferred taxes | 1,122 | 1,107 | 15 | |
| Total | - 2,352 | - 2,321 | - 30 | 0 |
| Components which can be transferred to the income statement |
||||
| Cash flow hedges | 61 | 42 | 19 | |
| Foreign currency translation differences | 145 | 145 | 0 | |
| Deferred taxes | - 17 | - 11 | - 6 | |
| Other | 32 | 32 | 0 | |
| Total | 221 | 209 | 13 | 0 |
| Income and expense recognised directly in equity | - 2,131 | - 2,112 | - 18 | 0 |
| Total comprehensive income | 5,502 | 3,075 | 2,348 | 79 |
| of which attributable to non-controlling interests | 4,805 | 4,805 | 0 | |
| of which attributable to shareholders of the parent company |
697 | - 1,731 | 2,427 |
Income statement
| in € thousand | 1–3 2022 Group |
1–3 2022 Port Logistics |
1–3 2022 Real Estate |
1–3 2022 Consolidation |
|---|---|---|---|---|
| Revenue | 386,203 | 377,487 | 10,691 | - 1,975 |
| Changes in inventories | 601 | 601 | 0 | 0 |
| Own work capitalised | 1,094 | 806 | 0 | 288 |
| Other operating income | 12,403 | 11,345 | 1,622 | - 564 |
| Cost of materials | - 117,196 | - 115,128 | - 2,224 | 156 |
| Personnel expenses | - 146,603 | - 146,073 | - 530 | 0 |
| Other operating expenses | - 39,933 | - 38,827 | - 3,201 | 2,095 |
| Earnings before interest, taxes, depreciation and amortisation (EBITDA) |
96,569 | 90,211 | 6,358 | 0 |
| Depreciation and amortisation | - 42,858 | - 41,028 | - 1,937 | 107 |
| Earnings before interest and taxes (EBIT) | 53,711 | 49,183 | 4,421 | 107 |
| Earnings from associates accounted for using the equity method |
640 | 640 | 0 | 0 |
| Interest income | 541 | 557 | 6 | - 22 |
| Interest expenses | - 8,749 | - 7,968 | - 803 | 22 |
| Financial result | - 7,568 | - 6,771 | - 797 | 0 |
| Earnings before tax (EBT) | 46,143 | 42,412 | 3,624 | 107 |
| Income tax | - 15,248 | - 14,044 | - 1,176 | - 29 |
| Profit after tax | 30,895 | 28,369 | 2,448 | 78 |
| of which attributable to non-controlling interests | 8,049 | 8,049 | 0 | |
| of which attributable to shareholders of the parent company |
22,846 | 20,320 | 2,526 | |
| Earnings per share, basic and diluted, in € | 0.30 | 0.28 | 0.93 |
Statement of comprehensive income
| 1–3 2022 | 1–3 2022 | 1–3 2022 | 1–3 2022 | |
|---|---|---|---|---|
| in € thousand | Group | Port Logistics | Real Estate | Consolidation |
| Profit after tax | 30,895 | 28,369 | 2,448 | 78 |
| Components which cannot be transferred to the income statement |
||||
| Actuarial gains/losses | 48,752 | 48,171 | 580 | |
| Deferred taxes | - 15,735 | - 15,547 | - 187 | |
| Total | 33,017 | 32,624 | 393 | 0 |
| Components which can be transferred to the income statement |
||||
| Cash flow hedges | 0 | 0 | 0 | |
| Foreign currency translation differences | - 2,196 | - 2,196 | 0 | |
| Deferred taxes | 5 | 5 | 0 | |
| Other | - 14 | - 14 | 0 | |
| Total | - 2,206 | - 2,206 | 0 | 0 |
| Income and expense recognised directly in equity | 30,811 | 30,418 | 393 | 0 |
| Total comprehensive income | 61,706 | 58,787 | 2,841 | 78 |
| of which attributable to non-controlling interests | 8,928 | 8,928 | 0 | |
| of which attributable to shareholders of the parent company |
52,778 | 49,859 | 2,919 |
Balance sheet
| in € thousand | 31.03.2023 Group |
31.03.2023 Port Logistics |
31.03.2023 Real Estate |
31.03.2023 Consolidation |
|---|---|---|---|---|
| ASSETS | ||||
| Intangible assets | 137,231 | 137,202 | 29 | 0 |
| Property, plant and equipment | 1,871,070 | 1,840,609 | 18,365 | 12,096 |
| Investment property | 229,227 | 17,583 | 233,771 | - 22,127 |
| Associates accounted for using the equity method | 19,403 | 19,403 | 0 | 0 |
| Non-current financial assets | 21,244 | 16,894 | 4,350 | 0 |
| Deferred taxes | 81,947 | 95,885 | 0 | - 13,938 |
| Non-current assets | 2,360,123 | 2,127,576 | 256,516 | - 23,969 |
| Inventories | 36,228 | 36,190 | 38 | 0 |
| Trade receivables | 176,245 | 175,470 | 775 | 0 |
| Receivables from related parties | 74,547 | 62,046 | 13,377 | - 876 |
| Current financial assets | 5,569 | 5,381 | 188 | 0 |
| Other non-financial assets | 48,977 | 47,983 | 994 | 0 |
| Income tax receivables | 8,359 | 10,205 | 0 | - 1,846 |
| Cash, cash equivalents and short-term deposits | 179,999 | 138,687 | 41,313 | 0 |
| Current assets | 529,925 | 475,961 | 56,684 | - 2,721 |
| Balance sheet total | 2,890,048 | 2,603,538 | 313,200 | - 26,690 |
| EQUITY AND LIABILITIES | ||||
| Subscribed capital | 75,220 | 72,515 | 2,705 | 0 |
| Capital reserve | 179,718 | 179,212 | 506 | 0 |
| Retained earnings | 569,690 | 506,537 | 70,689 | - 7,536 |
| Other comprehensive income | - 24,458 | - 24,507 | 50 | 0 |
| Non-controlling interests | 82,170 | 82,170 | 0 | 0 |
| Equity | 882,340 | 815,927 | 73,949 | - 7,536 |
| Pension provisions | 343,368 | 338,844 | 4,524 | 0 |
| Other non-current provisions | 150,292 | 146,567 | 3,724 | 0 |
| Non-current liabilities to related parties | 423,136 | 413,650 | 9,485 | 0 |
| Non-current financial liabilities | 684,153 | 522,881 | 161,272 | 0 |
| Deferred taxes | 30,553 | 22,935 | 24,051 | - 16,434 |
| Non-current liabilities | 1,631,501 | 1,444,877 | 203,057 | - 16,434 |
| Other current provisions | 34,381 | 34,363 | 18 | 0 |
| Trade liabilities | 120,498 | 111,449 | 9,049 | 0 |
| Current liabilities to related parties | 56,669 | 52,067 | 5,479 | - 876 |
| Current financial liabilities | 105,073 | 87,822 | 17,251 | 0 |
| Other non-financial liabilities | 56,719 | 55,021 | 1,697 | 0 |
| Income tax liabilities | 2,867 | 2,012 | 2,701 | - 1,846 |
| Current liabilities | 376,207 | 342,734 | 36,194 | - 2,721 |
| Balance sheet total | 2,890,048 | 2,603,538 | 313,200 | - 26,690 |
Balance sheet
| in € thousand | 31.12.2022 Group |
31.12.2022 Port Logistics |
31.12.2022 Real Estate |
31.12.2022 Consolidation |
|---|---|---|---|---|
| ASSETS | ||||
| Intangible assets | 124,449 | 124,417 | 31 | 0 |
| Property, plant and equipment | 1,814,607 | 1,785,893 | 16,512 | 12,202 |
| Investment property | 226,834 | 18,359 | 230,814 | - 22,339 |
| Associates accounted for using the equity method | 18,672 | 18,672 | 0 | 0 |
| Non-current financial assets | 19,759 | 15,529 | 4,230 | 0 |
| Deferred taxes | 74,065 | 87,804 | 0 | - 13,739 |
| Non-current assets | 2,278,385 | 2,050,674 | 251,588 | - 23,876 |
| Inventories | 34,526 | 34,488 | 38 | 0 |
| Trade receivables | 206,127 | 205,209 | 918 | 0 |
| Receivables from related parties | 86,884 | 75,119 | 12,966 | - 1,201 |
| Current financial assets | 4,360 | 4,203 | 156 | 0 |
| Other non-financial assets | 39,214 | 38,355 | 860 | 0 |
| Income tax receivables | 4,988 | 6,778 | 0 | - 1,790 |
| Cash, cash equivalents and short-term deposits | 116,435 | 115,511 | 924 | 0 |
| Current assets | 492,534 | 479,663 | 15,862 | - 2,991 |
| Balance sheet total | 2,770,919 | 2,530,337 | 267,450 | - 26,868 |
| EQUITY AND LIABILITIES | ||||
| Subscribed capital | 75,220 | 72,515 | 2,705 | 0 |
| Capital reserve | 179,718 | 179,212 | 506 | 0 |
| Retained earnings | 566,462 | 505,754 | 68,322 | - 7,615 |
| Other comprehensive income | - 22,921 | - 22,988 | 67 | 0 |
| Non-controlling interests | 74,835 | 74,835 | 0 | 0 |
| Equity | 873,313 | 809,328 | 71,600 | - 7,615 |
| Pension provisions | 336,735 | 332,254 | 4,481 | 0 |
| Other non-current provisions | 151,756 | 148,107 | 3,650 | 0 |
| Non-current liabilities to related parties | 431,357 | 422,594 | 8,763 | 0 |
| Non-current financial liabilities | 623,332 | 501,923 | 121,409 | 0 |
| Deferred taxes | 28,689 | 21,077 | 23,873 | - 16,261 |
| Non-current liabilities | 1,571,869 | 1,425,955 | 162,175 | - 16,261 |
| Other current provisions | 29,512 | 29,492 | 20 | 0 |
| Trade liabilities | 111,789 | 102,554 | 9,235 | 0 |
| Current liabilities to related parties | 49,988 | 46,567 | 4,621 | - 1,201 |
| Current financial liabilities | 81,434 | 64,690 | 16,745 | 0 |
| Other non-financial liabilities | 51,220 | 50,328 | 891 | 0 |
| Income tax liabilities | 1,794 | 1,423 | 2,161 | - 1,790 |
| Current liabilities | 325,737 | 295,054 | 33,674 | - 2,991 |
| Balance sheet total | 2,770,919 | 2,530,337 | 267,450 | - 26,868 |
Cash flow statement
| in € thousand | 1–3 2023 Group |
1–3 2023 Port Logistics |
1–3 2023 Real Estate |
1–3 2023 Consolidation |
|---|---|---|---|---|
| 1. Cash flow from operating activities | ||||
| Earnings before interest and taxes (EBIT) | 22,912 | 18,458 | 4,347 | 107 |
| Depreciation, amortisation, impairment and reversals on non-financial non-current assets |
44,322 | 42,111 | 2,318 | - 107 |
| Increase (+), decrease (-) in provisions | 1,793 | 1,835 | - 42 | |
| Gains (-), losses (+) from the disposal of non-current assets | - 84 | - 84 | 0 | |
| Increase (-), decrease (+) in inventories, trade receivables and other assets not attributable to investing or financing activities |
17,720 | 18,459 | - 414 | - 325 |
| Increase (+), decrease (-) in trade payables and other liabilities not attributable to investing or financing activities |
10,958 | 10,363 | 270 | 325 |
| Interest received | 741 | 657 | 90 | - 6 |
| Interest paid | - 6,471 | - 6,182 | - 295 | 6 |
| Income tax paid | - 14,613 | - 14,095 | - 518 | |
| Exchange rate and other effects | 243 | 243 | 0 | |
| Cash flow from operating activities | 77,521 | 71,765 | 5,756 | 0 |
| 2. Cash flow from investing activities | ||||
| Proceeds from disposal of intangible assets, property, plant and equipment and investment property |
101 | 101 | 0 | |
| Payments for investments in property, plant and equipment and investment property |
- 79,418 | - 75,060 | - 4,358 | |
| Payments for investments in intangible assets | - 4,791 | - 4,791 | 0 | |
| Payments for investments in non-current financial assets | 0 | 0 | 0 | |
| Payments for the acquisition of interests in consolidated companies and other business units (including funds purchased) |
- 4,701 | - 4,701 | 0 | |
| Proceeds (+), payments (-) for short-term deposits | - 30,000 | 10,000 | - 40,000 | |
| Cash flow from investing activities | - 118,809 | - 74,451 | - 44,358 | 0 |
| 3. Cash flow from financing activities | ||||
| Redemption of lease liabilities | - 12,819 | - 12,056 | - 763 | |
| Proceeds from the issuance of bonds and the raising of (financial) loans |
80,000 | 40,000 | 40,000 | |
| Payments for the redemption of (financial) loans | - 6,036 | - 5,911 | - 125 | |
| Cash flow from financing activities | 61,145 | 22,033 | 39,112 | 0 |
| 4. Financial funds at the end of the period | ||||
| Change in financial funds (subtotals 1.–3.) | 19,857 | 19,347 | 510 | 0 |
| Change in financial funds due to exchange rates | 22 | 22 | 0 | |
| Financial funds at the beginning of the period | 171,516 | 157,779 | 13,737 | |
| Financial funds at the end of the period | 191,395 | 177,148 | 14,247 | 0 |
Cash flow statement
| in € thousand | 1–3 2022 Group |
1–3 2022 Port Logistics |
1–3 2022 Real Estate |
1–3 2022 Consolidation |
|---|---|---|---|---|
| 1. Cash flow from operating activities | ||||
| Earnings before interest and taxes (EBIT) | 53,711 | 49,183 | 4,421 | 107 |
| Depreciation, amortisation, impairment and reversals on non-financial non-current assets |
42,858 | 41,028 | 1,937 | - 107 |
| Increase (+), decrease (-) in provisions | 3,708 | 3,753 | - 45 | |
| Gains (-), losses (+) from the disposal of non-current assets | - 242 | - 241 | - 1 | |
| Increase (-), decrease (+) in inventories, trade receivables and other assets not attributable to investing or financing activities |
- 30,455 | - 30,345 | 42 | - 152 |
| Increase (+), decrease (-) in trade payables and other liabilities not attributable to investing or financing activities |
36,725 | 35,822 | 751 | 152 |
| Interest received | 75 | 91 | 6 | - 22 |
| Interest paid | - 6,400 | - 5,988 | - 434 | 22 |
| Income tax paid | - 10,515 | - 9,924 | - 591 | |
| Exchange rate and other effects | - 324 | - 324 | 0 | |
| Cash flow from operating activities | 89,141 | 83,055 | 6,086 | 0 |
| 2. Cash flow from investing activities | ||||
| Proceeds from disposal of intangible assets, property, plant and equipment and investment property |
453 | 452 | 1 | |
| Payments for investments in property, plant and equipment and investment property |
- 35,231 | - 30,765 | - 4,466 | |
| Payments for investments in intangible assets | - 3,244 | - 3,237 | - 7 | |
| Payments for investments in non-current financial assets | - 497 | - 497 | 0 | |
| Payments for the acquisition of interests in consolidated companies and other business units (including funds purchased) |
- 17,304 | - 17,304 | 0 | |
| Proceeds (+), payments (-) for short-term deposits | 25,000 | 25,000 | 0 | |
| Cash flow from investing activities | - 30,823 | - 26,351 | - 4,472 | 0 |
| 3. Cash flow from financing activities | ||||
| Redemption of lease liabilities | - 12,258 | - 11,552 | - 706 | |
| Proceeds from the issuance of bonds and the raising of (financial) loans |
20,000 | 0 | 20,000 | |
| Payments for the redemption of (financial) loans | - 6,738 | - 5,191 | - 1,547 | |
| Cash flow from financing activities | 1,004 | - 16,743 | 17,747 | 0 |
| 4. Financial funds at the end of the period | ||||
| Change in financial funds (subtotals 1.–3.) | 59,323 | 39,962 | 19,361 | 0 |
| Change in financial funds due to exchange rates | - 188 | - 188 | 0 | |
| Financial funds at the beginning of the period | 173,016 | 164,655 | 8,361 | |
| Financial funds at the end of the period | 232,151 | 204,429 | 27,722 | 0 |
Financial calendar
23 March 2023
Annual Report 2022, Analyst Conference Call
15 May 2023
Interim Statement January–March 2023, Analyst Conference Call
15 June 2023
Virtual Annual General Meeting
15 August 2023
Half-Yearly Financial Report January–June 2023, Analyst Conference Call
14 November 2023
Interim Statement January–September 2023, Analyst Conference Call
Imprint
Published by
Hamburger Hafen und Logistik AG, Bei St. Annen 1 20457, Hamburg Phone +49 40 3088 – 0 [email protected] www.hhla.de
Investor relations
Phone +49 40 3088 – 3100 [email protected]
Corporate communications
Phone +49 40 3088 – 3520 [email protected]
Design and implementation
Photography
Thies Rätzke
Forward-looking statements
Unless otherwise stated, the key figures and information in this report concern the entire Group, including associated companies in which the company has a majority holding. Some sections contain forward-looking statements. These estimates and statements were made to the best of our knowledge and in good faith. Future global economic conditions, legislation, market conditions, competitors' activities and other factors are not within the control of HHLA.
Inclusive language
In many places in the report, we have opted to forego the use of separate masculine and feminine forms in the interest of legibility. The masculine form is substituted for all genders.
Rounding and differences
The key figures in the report are rounded in accordance with standard commercial practice. In individual cases, rounding may result in values in this report not adding up precisely to the amount stated, with corresponding percentages not tallying.
Publication date
This Interim Statement was published on 15 May 2023. It is available in German and English. In the event of any discrepancies between the two versions, the German version shall take precedence.
Hamburger Hafen und Logistik Aktiengesellschaft Bei St. Annen 1, 20457 Hamburg Telephone: +49 40 3088-0, Fax: +49 40 3088-3355, www.hhla.de, [email protected]