Hamburger Hafen und Logistik AG

Earnings Release • Aug 12, 2011

News Details

Corporate | 12 August 2011 08:00

Hamburger Hafen und Logistik AG: HHLA builds on market position with strong growth

Hamburger Hafen und Logistik AG / Key word(s): Half Year Results

12.08.2011 / 08:00

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Hamburg, 12 August 2011

Interim report for the first half-year of 2011

HHLA builds on market position

with strong growth

– Container throughput up by 29.6 %, container transport by 15.9 %

– HHLA gains market share in the North Range

– Operating result (EBIT) improves by 14.4 %

After strong growth in container throughput and container transport in the first half of 2011, Hamburger Hafen und Logistik AG (HHLA) is now expecting revenue and earnings for the full year to increase in the region of 15 %. Revenue climbed by 18.6 % to EUR 596.0 million in the first half-year. The operating result EBIT improved by 14.4 % to EUR 93.1 million. Profit after tax and minority interests showed the fastest growth, rising by 21.7 % to EUR 34.7 million.

Commenting on the publication of the interim report for January to June 2011, Klaus-Dieter Peters, Chairman of the Executive Board at HHLA, said, 'Performance in the first six months exceeded our expectations to date. If the latest turbulence on the financial markets does not permanently curb the previous trends in the global economy, we would expect increases in the region of 15 % in container transport, revenue and earnings for the full year. In terms of container throughput we believe that growth of as much as 20 % is within reach.'

Far East and Eastern Europe report rapid growth rates

The Far East shipping region and feeder traffic for Central and Eastern Europe across the Baltic contributed to successful growth at the HHLA Container Terminals in Hamburg in the first half

of 2011. HHLA's Far Eastern throughput in Hamburg increased by 32 % to 1.57 million standard containers (TEU). Baltic Sea traffic with Poland, the Baltic States and the Russian Federation

even improved by 72 % to 0.44 million TEU. This is a sign that both regions have returned to their former growth rates after a severe slump during the economic crisis.

Market share gained under difficult conditions

According to the figures currently available from the four large North Range ports Rotterdam, Hamburg, Antwerp and Bremen 1 , it appears that HHLA was able to extend its market share in container handling substantially in the first half of 2011. The new mega-ship berths at the HHLA terminals Burchardkai and Tollerort, as well as Container Terminal Altenwerder, which was again voted the most high-performance facility in Europe recently contributed to this gain. The rapid pace of growth together with ever higher peak loads resulting from expanding vessel sizes nevertheless lead to great demands on the flexibility and productivity of the terminals. The situation was also exacerbated by the delay in the dredging of the river Elbe, which leads to ever tighter restrictions in the time available to handle mega-ships.

1 H1 2011: Antwerp + 4.4 %, Bremen ports + 25 %; Q1 2011: + 13.7 % on average for all four ports

At the same time, further progress was made on the modernization and expansion work underway at all terminals during running operations. This includes the extension of the new block storage system at Burchardkai and the introduction of self-service terminals allowing truckers to check in containers easily.

Hinterland transport increase strongly

With an increase of 15.9 % in hinterland transport by road and rail to a total of 925 thousand

standard containers (TEU), the intermodal companies in the HHLA Group also registered strong growth in the first half of 2011. This performance stemmed primarily from those companies that have a high degree of vertical integration and their own inland terminals and can offer integrated transport chains with highly productive direct rail and shuttle services. This successful model is now being rolled out systematically in other regions. In June 2011, HHLA opened another inland terminal in Ostrava, Czech Republic, with an annual capacity of up to 200,000 TEU. In Poland, the centrally located new hub terminal in Poznán will open shortly – a key requirement for building up shuttle services to Poland.

Pioneer in terms of sustainability

HHLA was given top marks in the first half of 2011 for its commitment to sustainability. The well-known Fraunhofer working group Supply Chain Services SCS puts HHLA in the leading group of its redeveloped sustainability index for the logistics sector. This means HHLA is one of six leading German logistics providers in terms of its commitment to sustainability and a pioneer of sus­tainable logistics. Its sustainability concept is 'firmly anchored in its strategic orientation and an important element of its company values'. HHLA's activities in this area 'are leading to a systematic improvement in the sustainability situation' and are indicative of 'a high level of innovation'.

Changes in key Group figures at a glance (January to June 2011)

– Revenue increased by 18.6 % to EUR 596.0 million compared with the same period last year.

– The operating result before depreciation and amortization (EBITDA) was at EUR 153.2 million,

up 13.8 % on the previous year.

– The operating result (EBIT) came in at EUR 93.1 million – a 14.4 % increase on the previous

year's figure.

– Profit after tax and minority interests climbed 21.7 % to EUR 34.7 million.

At EUR 583.0 million for the period from January to June 2011, the revenue generated by HHLA's core business – operated by the publicly listed Port Logistics Subgroup – grew by 18.9 % compared to the first half of 2010. The subgroup's operating result (EBIT) rose 16.4 % to EUR 86.8 million. This meant that the Port Logistics Subgroup generated 98 % of Group revenue and

93 % of Group EBIT.

Key figures for the HHLA Group

in EUR million		1-6 | 2011	1-6 | 2010	Change
Revenue		596,0	502,6	18,6 %
EBITDA		153,2	134,6	13,8 %
EBIT		93,1	81,4	14,4 %
EBIT margin in %		15,6	16,2	– 0,6 pp
Profit after tax		53,0	44,9	18,2 %
Profit after tax and minority interests		34,7	28,5	21,7 %
Container throughput in thousand TEU		3.413	2.633	29,6 %
Container transport in thousand TEU		925	798	15,9 %

		30.06.2011	31.12.2010	Change
Equity ratio in %		32,9	33,1	– 0,2 pp
Employees		4.720	4.679	0,9 %

Key figures for the Port Logistics Subgroup (publicly listed)

in EUR million		1-6 | 2011	1-6 | 2010	Change
Revenue		583,0	490,3	18,9 %
EBITDA		144,9	125,9	15,1 %
EBIT		86,8	74,5	16,4 %
EBIT margin in %		14,9	15,2	– 0,3 pp
Profit after tax and minority interests		32,1	25,4	26,2 %

About HHLA

Hamburger Hafen und Logistik AG (HHLA) is a leading port logistics group in Europe. With its Container, Intermodal and Logis­tics segments, HHLA is positioned vertically along the transport chain. Efficient container terminals, high-capacity transport systems and a full range of logistics services form a complete network between the overseas port and its European hinterland.

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Language:	English
Company:	Hamburger Hafen und Logistik AG
	Bei St. Annen 1
	20457 Hamburg
	Germany
Phone:	+49 (0)40-3088-1
Fax:	+49 (0)40-3088-3355
E-mail:	info@hhla.de
Internet:	www.hhla.de
ISIN:	DE000A0S8488
WKN:	A0S848
Listed:	Regulierter Markt in Frankfurt, Hamburg; Freiverkehr in Berlin, Düsseldorf, Hannover, München, Stuttgart

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