Quarterly Report • May 13, 2011
Quarterly Report
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hamburger hafen und logistik aktiengesellschaft Interim Report January to March 2011
| HHLA Group | |||
|---|---|---|---|
| in € million | 1– 3 2011 | 1– 3 2010 | Change |
| Revenue and earnings | |||
| Revenue | 289.8 | 236.9 | 22.3 % |
| EBITDA | 75.0 | 61.3 | 22.3 % |
| EBITDA margin in % | 25.9 | 25.9 | 0.0 pp |
| EBIT | 44.0 | 35.4 | 24.2 % |
| EBIT margin in % | 15.2 | 14.9 | 0.3 pp |
| Profit after tax | 25.1 | 18.7 | 34.3 % |
| Profit after tax and minority interests | 16.4 | 11.2 | 46.9 % |
| Cash Flow Statement and Investments | |||
| Cash flow from operating activities | 38.4 | 32.2 | 19.2 % |
| Investments | 13.3 | 7.5 | 76.7 % |
| performance Data | |||
| Container throughput in thousand TEU | 1,654 | 1,253 | 32.0 % |
| Container transport 1 in thousand TEU |
454 | 378 | 20.1 % |
| 31.03.2011 | 31.12.2010 | Change | |
| Balance Sheet | |||
| Total assets | 1,792.1 | 1,715.1 | 4.5 % |
| Equity | 589.4 | 567.0 | 3.9 % |
| Equity ratio in % | 32.9 | 33.1 | - 0.2 pp |
| employees | |||
| Number of employees | 4,707 | 4,679 | 0.6 % |
| port Logistics Subgroup2, 3 | Real estate Subgroup2, 4 | |||||
|---|---|---|---|---|---|---|
| in € million | 1– 3 2011 | 1– 3 2010 | Change | 1– 3 2011 | 1– 3 2010 | Change |
| Revenue | 283.4 | 231.0 | 22.7 % | 7.5 | 7.1 | 4.4 % |
| EBITDA | 70.8 | 56.9 | 24.3 % | 4.3 | 4.4 | - 4.2 % |
| EBITDA margin in % | 25.0 | 24.6 | 0.4 pp | 57.0 | 62.1 | - 5.1 pp |
| EBIT | 40.7 | 31.9 | 27.5 % | 3.2 | 3.4 | - 6.3 % |
| EBIT margin in % | 14.4 | 13.8 | 0.6 pp | 42.9 | 47.7 | - 4.8 pp |
| Profit after tax and minority interests | 15.0 | 9.6 | 57.0 % | 1.4 | 1.5 | - 12.6 % |
| Earnings per share in €/share 5 | 0.21 | 0.14 | 57.0 % | 0.52 | 0.60 | - 12.6 % |
The transport volume was fully consolidated
Before consolidation between subgroups
Listed A shares
4 Non-listed S shares
5 Basic and diluted
Financial Calendar Imprint
| 31.12.2010 – 31.03.2011 | HHLA | MDAX | DAX |
|---|---|---|---|
| Change | - 5.0 % | 1.8 % | 1.8 % |
| Closing 31.12.2010 | 34.55 € | 10,128 | 6,914 |
| Closing 31.03.2011 | 32.83 € | 10,310 | 7,041 |
| High | 35.81 € | 10,611 | 7,427 |
| Low | 31.34 € | 9,566 | 6,514 |
In the first quarter, the mood on the world's stock markets was initially shaped by contrasting factors, including more positive expectations for the economy, high levels of liquidity seeking investment, political unrest in North Africa and the eurozone's debt problems. Overall, investors remained upbeat. As a result, the key indices kept rising well into February: prices reached their highest point for almost three years, taking them to levels last seen before the investment bank Lehman Brothers collapsed in September 2008. However, the Japanese earthquake on 11 March put an end to this trend, prompting great uncertainty on the capital markets and causing share prices to slide sharply. Within just a few days, the blue-chip DAX index lost almost 7 % and the mid-cap MDAX almost 5%. However, these losses had already been recouped by the end of the quarter and the DAX closed at 7,041 points on 31 March, almost 2 % up on year-end 2010. The MDAX was also 1 % up at 10,310 points.
After easily outperforming the indices MDAX (+ 15.5 %) and DAX (+11.0%) in the fourth quarter of 2010 with value growth of 21.0%, the HHLA share did not maintain its lead in the period under review. The share's performance was burdened by a variety of issues in early 2011: political discussions regarding the port development plan in Hamburg and decreasing sea freight rates in container shipping caused uncertainty among capital market participants. With the Danish shipping company Maersk ordering even larger container freighters with a carrying capacity of up to 18,000 TEU, investors and financial analysts were also reminded of the urgent need to deepen the river Elbe's navigation channel. The share price was subsequently buoyed, however, by the prospect of further
economic recovery and the publication of preliminary figures for 2010 in early February. The figures were generally well received as the operating result came in slightly above analysts' estimates. As a result, the share's performance once again largely mirrored the key index trends but lacked the stimuli to catch up further. At the end of the quarter, concerns about the consequences of the earthquake and nuclear disaster in Japan mainly burdened cyclical shares with a clear link to Asia. Logistics stocks in particular struggled to escape this trend. As a result, the HHLA share closed at €32.83 on 31 March, some 5% down on year-end 2010. Market capitalization of the listed Port Logistics subgroup amounted to € 2.3 billion.
As part of its investor relations activities, HHLA conducted a number of roadshows at the beginning of the year, met investors for company visits, and took part at several investor conferences to meet major shareholders and potential new investors in the key trading cities of Frankfurt, London and New York. At the same time, the company succeeded in attracting regular HHLA research from additional financial analysts based in Germany, the UK and the USA. The HHLA share receives broad and – for an MDAX stock – above-average coverage. The majority of these analyst reports recommend buying or holding the HHLA share. Once again, the share was traded mainly in Germany, the UK and the USA, where a significant portion of the free float is still held.
Source: Datastream
The 2011 financial year got off to an extremely successful start for Hamburger Hafen und Logistik AG (HHLA) with year-on-year growth in both revenue and earnings of over 20% in the first three months. This development was driven by a strong increase of 32% in container throughput and 20 % in container transport. Based on the comparative figures for the rival ports Antwerp (container throughput: +7.9%) and Rotterdam (approx. +10%) and the Bremen ports (+24.9%), our company once again succeeded in increasing its market share within the European North Range.
These impressive first-quarter growth figures confirm our positive expectations for the course of 2011. Assuming the current global economic trend remains stable and business continues to make good progress, we anticipate growth rates of well over 10% in container volumes, revenue and earnings for the year as a whole.
The success of the first quarter of 2011 also vindicates our business model of offering integrated services along the transport chain between the seaport and the facilities of our customers in the European hinterland. This enables us to exploit the opportunities presented by Hamburg's outstanding geographical location and extend our leading technological position in container handling while steadily expanding and improving our transport systems, for example by increasing our share of highly productive shuttle and direct rail connections. This not only helps us meet the growing requirements of our customers but also secures additional freight flows for our facilities.
The highly dynamic trend in Asian and Eastern European traffic at our container terminals and the strong growth in container transportation by rail using our intermodal systems confirm the current success of this strategy. We will continue to pursue this path by investing:
Growth in global container traffic between overseas and Europe has now recaptured its former dynamic pace. Current forecasts put the growth rate at around 8%. Our services, strategy and investments in the future will ensure that we continue to benefit more than average from this growth.
Yours,
Klaus-Dieter Peters Chairman of the Executive Board
Klaus-Dieter Peters Chairman of the Executive Board
Port of Hamburg: boom in Far East and Eastern Europe traffic.
The global economy once again grew strongly in early 2011, although the pace varied from region to region. Many emerging and developing economies have already reached or even exceeded their pre-crisis levels. In the industrialized nations as a whole, however, the recovery continues to lag behind. This is especially true for those countries which were particularly hard hit by the banking and real estate crises, such as the USA, the UK and Spain.
China – now one of the main drivers of the global economy – enjoyed further sharp growth in gross domestic product (GDP) of around 10% in early 2011. Exports were up 27% year on year in the first three months, while imports rose by over 30%. The upturn in Russia and the Central and Eastern European economies was more moderate. GDP in the eurozone edged up just 1% year on year in the first quarter of 2011.
In spring 2011, the German economy remains buoyant with GDP growth of approx. 1% in the first quarter of 2011. The upturn is being driven by both domestic and foreign demand. In the first two months of 2011 alone, exports were 20% above the same period last year.
Estimates put the growth in global container throughput at around 8% in the first three months of 2011, compared to the first quarter 2010. The number of container ships laid up around the world fell to its lowest figure since November 2008. In March 2011, just 1% of global container ship capacity was redundant. Charter rates
continued to rise and in March 2011 reached their September 2008 level again – a level not seen since shortly before the Lehman Brothers collapse. However, against the background of rising capacity due to newbuilds – especially new container mega-ships – and fierce competition for market share, freight rates have plummeted since their high in the first quarter of 2010.
HHLA's two largest rival ports – Antwerp and Rotterdam – reported container handling growth rates in line with general market trends for the first quarter of 2011. In Antwerp, container throughput rose by 7.9 % year on year. Meanwhile, Rotterdam grew by some 10 % to 2.9 million standard containers (TEU) thanks to a steady increase in its Far East services but saw a sharp fall in feeder traffic to the Baltic region. Container throughput at the Bremen ports grew by 24.9 % in the first three months of the reporting year.
However, growth of 32.0% in container throughput posted by the HHLA Container segment – largely prompted by developments in Hamburg – indicates that the HHLA container terminals gained further market share in the first quarter of 2011. In the fiscal quarter of that reporting period, the dynamic growth in handling at HHLA's Hamburg terminals was driven by those shipping routes that suffered the greatest setbacks during the crisis. This was illustrated by total growth of 40.7 % in European feeder traffic. Feeder traffic serving the Eastern European Baltic ports enjoyed the sharpest upturn of 64.8 %. Driven by strong European exports (growth of 40.5 % in container throughput destined for Asia), Asian traffic improved by 35.9 %, while the Far East and China shipping region recorded even stronger growth of 38.7 %.
| in € million | 1– 3 2011 | 1– 3 2010 | Change |
|---|---|---|---|
| Revenue | 289.8 | 236.9 | 22.3 % |
| EBITDA | 75.0 | 61.3 | 22.3 % |
| EBITDA margin in % | 25.9 | 25.9 | 0.0 pp |
| EBIT | 44.0 | 35.4 | 24.2 % |
| EBIT margin in % | 15.2 | 14.9 | 0.3 pp |
| Profit after tax and minority interest | 16.4 | 11.2 | 46.9 % |
| ROCE in % | 13.2 | 11.2 | 2.0 pp |
As the company completed the sale and/or suspension of its discontinued activities last year, the additional disclosure of "EBIT from continuing activities" is no longer necessary. This means that the standard EBIT figure is now solely used again to reflect developments in the company's operating result. In order to show net rental income more precisely – a key figure for the Real Estate subgroup – incidental rental expenses charged on to tenants will be reported under other operating income rather than revenue as of the 2011 financial year. To ensure that figures are presented uniformly at Group level, this reclassification has also been implemented for the Port Logistics subgroup. To facilitate comparison, the figures for the previous year have been restated accordingly. This does not affect the operating result. See also page 32 of the Notes.
At Group level, there were no effects resulting from changes in exchange rates or in the group of consolidated companies that had a material impact on the developments in revenue and earnings in the reporting period.
The positive volume trends in HHLA's container operations in Northern Europe, which already prompted strong growth in the second half of 2010, continued throughout the first three months of the 2011 financial year. This volume growth has been driven above all by the ongoing highly dynamic development of Asian and Eastern European traffic. As a result, HHLA achieved significant growth in its handling and transport services compared to a weak first quarter 2010. In the Container segment, throughput rose by 32.0 % in the January to March period. The Intermodal segment, whose volumes were less affected by the crisis, reported growth of 20.1% in transport volume. Thanks to this improved performance, consolidated revenue climbed 22.3 % to € 289.8 million (previous year: €236.9 million). Due to continuous pricing pressure, coupled with incentives to regain feeder traffic and the corresponding shifts in handling ratios, year-on-year revenue growth could not quite match the increase in ship handling volumes. However, higher storage charges and price adjustments in rail services meant revenue quality was considerably more stable than at year-end 2010. Revenue growth was once again driven mainly by the listed Port Logistics subgroup with its Container, Intermodal and Logistics segments. In this subgroup, HHLA generated revenue growth of 22.7% to €283.4 million (previous year: € 231.0 million), accounting for around 98% of external revenue. The non-listed Real Estate subgroup raised revenue by 4.4% to €7.5 million (previous year: € 7.1 million) and thus accounted for around 2 % of external revenue.
At € 0.1 million (previous year: € 0.7 million), changes in inventories were down slightly on the previous year at Group level, while own work capitalized was somewhat higher than the previous year at € 1.8 million (2010: € 1.5 million). Other operating income fell by € 1.3 million on the year to € 5.7 million (previous year: € 7.0 million).
Operating expenses climbed by 20.3 % in the first quarter of 2011. Although they grew more slowly than the overall increase in volumes and revenue, there was an expected impact from pent-up demand – especially at the beginning of the year – as costs had been cut severely in the previous year. As announced, necessary
maintenance work and the termination of the short-time labour scheme drove up expenses. In addition to this, operating requirements rose sharply due to an increase in peak-load conditions caused by larger ships. The disproportionately high increase in volumes at the handling facilities owned solely by HHLA, which are not yet as highly automated as the state-of-the-art Container Terminal Altenwerder, also affected developments in expenses.
The cost of materials, which is to a large extent dependent on volumes, increased roughly in line with volume growth, by 28.4 % to a total of € 103.2 million (previous year: €80.4 million) from January to March. There was a sharp rise in purchased rail services for hinterland transport prompted by higher volumes. In addition to this, soaring fuel prices drove up energy expenses in conjunction with increased throughput figures. As a result, the cost of materials ratio in relation to revenue rose to 35.6% (previous year: 33.9%).
After personnel expenses were cut in the previous year, this item increased by 13.9 % to € 86.3 million in the reporting period (previous year: € 75.7 million). In addition to the suspension of short-time labour scheme which had previously reduced costs, this was mainly due to increased working hours during the transitional phase prior to the introduction of partial automation at the Container Terminal Burchardkai, as well as scheduling requirements which necessitated the use of external staff. In relation to revenue, however, the personnel expense ratio fell by 2.2 percentage points to 29.8 % (previous year: 32.0%).
Other operating expenses increased by 15.2 % to € 32.9 million (previous year: € 28.6 million) in the reporting period. While lease expenses for land and quay walls remained largely unchanged, maintenance costs rose particularly sharply. This resulted from greater use of facilities and machinery along with servicing work previously postponed and repairs to weather-related surface damage. However, the ratio of expenses to revenue fell year on year to 11.4% (previous year: 12.1%).
As a result of these developments, the HHLA Group boosted its operating result before depreciation and amortization (EBITDA) by 22.3 % to € 75.0 million (previous year: € 61.3 million). For the first three months of 2011, the EBITDA margin therefore amounted to 25.9 % – as in the previous year. Depreciation and amortization rose by € 5.1 million or 19.6% to € 31.0 million also due to a one-off item. The revaluation of existing demolition obligations resulted in oneoff expenses of € 2.3 million. Adjusted for this special item, depreciation and amortization resulting from continued investment amounted to around € 2.8 million, or 10.8% higher than in the previous year. At Group level, the operating result (EBIT) rose 24.2% to € 44.0 million (previous year: € 35.4 million). The EBIT margin improved somewhat to 15.2% (previous year: 14.9%). The Port Logistics and Real Estate subgroups contributed 92.6% and 7.4% respectively to EBIT.
Though interest income increased to €1.9 million (previous year: €0.7 million), mainly due to a higher level of liquidity, interest expenses at € 9.8 million were slightly lower than in the previous year (€ 10.3 million) despite increased financial liabilities. Due largely to above-average earnings contributions by affiliates with higher tax rates, the effective tax rate was up on the previous year at 30.3% (27.4%). Buoyed by particularly strong volume growth at facilities owned solely by HHLA, the Group posted a disproportionately high increase of 46.9% in consolidated profit after tax and minority interests, taking the figure to € 16.4 million (previous year: €11.2 million). The percentage of profit after taxes attributable to minority interests fell accordingly to 34.6%, compared with 40.2% in the previous year. Earnings per share improved correspondingly by 46.9% to € 0.23 (previous year: €0.15). The publicly listed Port Logistics subgroup achieved a 57.0 % increase in earnings per share to €0.21 (previous year: €0.14). However, earnings per share of the non-listed Real Estate subgroup fell 12.6 % to € 0.52 (previous year: € 0.60). Thanks to a disproportionately strong improvement in operating result (EBIT) in relation to the increased capital commitment, the return on capital employed (ROCE) rose by two percentage points to 13.2 % (previous year: 11.2%).
| in € million | 1–3 2011 | 1–3 2010 | Change |
|---|---|---|---|
| Revenue | 172.2 | 134.4 | 28.1 % |
| EBITDA | 62.9 | 51.2 | 23.0 % |
| EBITDA margin in % | 36.5 | 38.1 | - 1.6 pp |
| EBIT | 40.5 | 32.4 | 25.0 % |
| EBIT margin in % | 23.5 | 24.1 | - 0.6 pp |
| Container throughput in thousand TEU | 1,654 | 1,253 | 32.0 % |
The HHLA terminals in Hamburg and Odessa started the 2011 financial year with sharp growth of 32.0% in container throughput in the first quarter. Newly acquired container services, the strong recovery in feeder traffic to the Baltic Sea and the general global economic upswing prompted a total container handling volume of 1,654 thousand standard containers (TEU). The statistical basis effect of low handling figures in the first quarter of 2010 should be taken into account here, as the recovery only began in Hamburg in the second quarter of last year.
Strong growth in feeder and Far East traffic played a key role in enabling HHLA to gain additional market share in the North Range. This meant the handling level was just 9.5% below the current record of 1,827 thousand TEU achieved in the first quarter of 2008. Driven by this dynamic increase in volumes, strong growth was also posted in both revenue and earnings figures. Price incentives to regain feeder traffic and the resulting increase of these services in the loading mix, however, meant that the 28.1% growth in revenue to € 172.2 million (previous year: € 134.4 million) still fell slightly short of growth
in volumes. Despite the end of short-time working, a disproportionately high increase in energy costs and rising maintenance expenses, EBITDA improved significantly by 23.0% to €62.9 million (previous year: €51.2 million). EBIT also rose substantially by 25.0% to €40.5 million (previous year: € 32.4 million), in spite of higher depreciation and amortization resulting from capital expenditure and a one-off adjustment to demolition obligations. See also page 7.
The strong upturn in the first quarter of 2011 vindicates HHLA's strategy of consistently enhancing its performance and both regaining market share and securing additional freight flows for the Port of Hamburg by using targeted incentives to attract feeder services back to its terminals. As a result of these efforts, the feeder ratio, i.e. the percentage of total throughput accounted for by feeder traffic, increased to 25% in the first three months of 2011. In March 2010, feeder services accounted for just 22% of throughput. HHLA also continued the modernization and expansion programmes at its facilities in the first quarter of 2011, thereby laying the foundations for further enhancements in performance and quality.
HHLA container terminals: throughput up 32 %.
| in € million | 1–3 2011 | 1–3 2010 | Change |
|---|---|---|---|
| Revenue | 84.8 | 68.8 | 23.1 % |
| EBITDA | 9.1 | 5.9 | 54.5 % |
| EBITDA margin in % | 10.7 | 8.5 | 2.2 pp |
| EBIT | 5.4 | 2.7 | 97.5 % |
| EBIT margin in % | 6.3 | 3.9 | 2.4 pp |
| Container transport 1 in thousand TEU |
454 | 378 | 20.1 % |
The transport volume was fully consolidated
With a transport volume totalling 454 thousand standard containers (TEU) in the first quarter of 2011, the Intermodal segment exceeded the previous, pre-crisis record of 439 thousand TEU set in the first quarter of 2008 by 3.4%. At 20.1%, the growth rate for containers transported by rail and road easily outpaced the general market development. Initial figures suggest that the market grew by 10 to 15%, with the number of containers transported by rail in Germany rising by almost 12% in January 2011. HHLA's inland terminals in the Czech Republic, Poland and Slovakia also enjoyed above-average growth. Container throughput here rose by 19.8% to 305 thousand TEU in the first quarter of 2011.
Driven by this positive trend in volume, revenue grew even faster by 23.1 % to € 84.8 million (previous year: € 68.8 million). The company has been able to push through a number of initial price increases on the market again while costs have remained constant. The EBITDA margin improved by 2.2 percentage points to 10.7% (previous year: € 8.5 %) based on EBITDA growth of 54.5 %. Thanks in part to increased utilization of
the Intermodal system, the EBIT margin recovered strongly in the first three months of 2011, after falling sharply during the crisis (Q1 2009: 4.5 %, Q1 2010: 3.9%). EBIT doubled (+97.5%) to €5.4 million in the first quarter of 2011, pushing the EBIT margin up by 2.4 percentage points to 6.3 %.
This positive development was primarily driven by those companies which offer integrated transport chains with highly productive direct rail and shuttle services, and boast a high real net output ratio, their own inland terminals and their own rolling stock. This successful model is gradually being rolled out in further regions. In Poland, the centrally located new hub terminal in Poznán will open in summer 2011 – a key requirement for building up shuttle services. The existing production systems used for rail transport in Germany, Austria and Switzerland are currently being converted in favour of a significantly higher proportion of direct rail services. Substantial growth was also generated via volume increases of over 50 % in Austrian and Swiss traffic. It must be noted, however, that the comparative figures were on a low level.
Hinterland traffic: transport volume up by 20 %.
| 1–3 2011 | 1–3 2010 | Change |
|---|---|---|
| 33.6 | 27.2 | 23.8 % |
| 2.1 | 3.4 | - 38.1 % |
| 6.2 | 12.5 | - 6.3 pp |
| 0.1 | 1.6 | - 91.4 % |
| 0.4 | 5.9 | - 5.5 pp |
In a highly heterogeneous market environment, which has profited far less on the whole from the global economic upturn than the Container and Intermodal segments, progress made by the Logistics segment's various companies varied widely. Volumes increased in bulk cargo handling and vehicle logistics, while business in the consultancy and cruise divisions suffered from the usual seasonal dip in demand. Fruit logistics struggled again and failed to reach a satisfactory level. Contract logistics stabilized somewhat compared with the previous year. At most of the segment's companies, business developments improved significantly in March 2011 following a rather weak January and February.
The 23.8 % rise in segment revenue to € 33.6 million (previous year: €27.2 million) was attributable to the intra-Group settling of a major IT contract worth some € 7 million in the consultancy division. Adjusted for this item, segment revenue fell slightly in the period under review. On balance, the performance of the segment's companies led to a distinct fall in earnings. EBITDA fell by 38.1% to €2.1 million (previous year: €3.4 million), while EBIT was only just positive at € 0.1 million. This corresponded to a 91.4% decline on the previous year's figure of € 1.6 million. In addition to lower segment revenue excluding the internally charged IT contract, higher maintenance expenses and rising energy costs were partly to blame.
A marked reduction in consumption, weatherrelated crop failures in the respective growing areas and an increase in direct services to the Baltic Sea impacted banana handling at O'Swaldkai. At 179 thousand tons, fruit handling again fell 10 % short of the previous year's weak total. Restructuring measures were introduced to bring about a sustainable improvement in the fruit logistics situation. Despite successful developments in project logistics, the contract logistics business was unable to post a noticeable improvement in the first quarter of 2011. The trend in ore, coal and vehicles was very different, with the current economic upturn helping boost bulk cargo handling of ore and coal by 3.2 % to 3,410 thousand tons – more than 10% of the total goods handled at the Port of Hamburg. Meanwhile, the vehicle logistics unit succeeded in raising vehicle handling by 31 % to 42.5 thousand vehicles.
Bulk cargo: heaps of ore and coal at Hansaport.
| in € million | 1–3 2011 | 1–3 2010 | Change |
|---|---|---|---|
| Revenue | 7.5 | 7.1 | 4.4 % |
| EBITDA | 4.3 | 4.4 | - 4.2 % |
| EBITDA margin in % | 57.0 | 62.1 | - 5.1 pp |
| EBIT | 3.2 | 3.4 | - 6.3 % |
| EBIT margin in % | 42.9 | 47.7 | - 4.8 pp |
According to the latest market survey by Jones Lang LaSalle, the 2011 financial year got off to a good start for Hamburg's office space rental market. This was illustrated by a year-on-year increase of some 3 % in new leases of office space in the first quarter of 2011. However, the vacancy rate remains high. Although the proportion of vacant properties fell from 9.6 % in December 2010 to 9.4 % at present, this still represents an increase of 0.8 percentage points on the first quarter last year. In view of the current high level of new building construction in Hamburg, this trend is not expected to change in the short term.
Given the ongoing difficulties in this market, the HHLA properties in the Speicherstadt historical warehouse district and in the Fischmarkt area on the northern bank of the river Elbe continued to develop positively. Revenue climbed 4.4 % in comparison to last year to € 7.5 million (previous year: €7.1 million). The reclassification of incidental rental expenses charged on to tenants as other operating income resulted in changes to the absolute revenue and gross margin figures. In order to facilitate comparison, the figures for last year have been restated accordingly. See also page 32 of the Notes.
Compared with the previous year, the rise in maintenance costs in the Speicherstadt historical warehouse district marginally outstripped the increase in rental income from properties newly let in 2010. As a consequence, EBITDA fell 4.2 % to € 4.3 million (previous year: € 4.4 million). EBIT decreased by 6.3% in the reporting period to €3.2 million (previous year: € 3.4 million). At 57.0 % (EBITDA margin) and 42.9 % (EBIT margin), gross margins remained encouragingly high.
The ongoing success of this business can be attributed to the steady development of the two tradition-rich districts served by HHLA: the Speicherstadt historical warehouse district and the northern banks of the river Elbe. A good example of this is a new high-profile property in the Speicherstadt historical warehouse district which was completed in the first quarter of 2011. Speicherblock (warehouse block) Q is one of the most attractive buildings in the listed ensemble, offering attractive mixed-use space for fashion, showrooms and offices. The refurbishment concept was developed in close cooperation with the preservation authority with special consideration of tenants' usage requirements. By the time it was completed, the property was already almost fully let.
Speicherstadt historical warehouse district: new units for fashion and showrooms.
| in € million | 1– 3 2011 | 1– 3 2010 |
|---|---|---|
| Financial funds as of 01.01. | 233.7 | 179.2 |
| Cash flow from operating activities |
38.4 | 32.2 |
| Cash flow from investing activities |
- 20.7 | - 8.2 |
| Free cash flow | 17.7 | 24.0 |
| Cash flow from financing activities |
53.4 | - 9.6 |
| Change in financial funds | 71.0 | 14.4 |
| Change in financial funds due to exchange rates |
1.3 | - 0.9 |
| Financial funds as of 31.03. | 306.0 | 192.7 |
Positive earnings development at the HHLA Group meant that cash inflow from operating activities grew to € 38.4 million in the period from January to March 2011 (previous year: € 32.2 million). Cash outflow for investing activities of €20.7 million in the reporting period exceeded last year's figure of € 8.2 million, mainly as a result of higher payments for property, plant and equipment.
At €17.7 million (previous year: €24.0 million), free cash flow – the total cash flow from operating and investing activities – was lower than in the first quarter of 2010 due in particular to higher capital expenditure. Cash inflow from financing activities amounted to € 53.4 million (previous year: cash outflow of € 9.6 million). This was the result of borrowing carried out in the first quarter of 2011 to achieve long-term funding with matching maturities for investment projects.
Balance Sheet Structure
Financial funds, made up of cash and cash equivalents (€ 237.9 million) and cash pooling (€71.3 million), netted with other financial liabilities (€3.2 million), amounted to €306.0 million as of 31 March 2011 and were thus considerably higher than the opening balance for the year (€233.7 million).
The investment volume rose to a total of € 13.3 million (previous year: € 7.5 million) in the reporting period. However, it remains at a reduced level due to capacity utilization. Capital expenditure focused on expansion projects and replacements, primarily in the Container and Intermodal segments.
Compared with the end of 2010, the HHLA Group's balance sheet total increased as of 31 March 2011 by a total of € 77.0 million to € 1,792.1 million.
At € 1,272.8 million, non-current assets were lower than the comparable figure on 31 December 2010 (€ 1,290.7 million). This was due to persistently low capital expenditure in relation to total property, plant and equipment coupled with scheduled depreciation.
The €94.9 million increase in current assets to € 519.3 million as of 31 March 2011 stemmed largely from higher receivables from related parties, in turn due to a higher cash-pool balance with HGV Hamburger Gesellschaft für Vermögens- und Beteiligungsmanagement mbH and an increase in trade receivables of €19.1 million to € 145.6 million.
| in € million | ||
|---|---|---|
| Assets | 31.03.2011 | 31.12.2010 |
| Non-current assets | 1,272.8 | 1,290.7 |
| Current assets | 519.3 | 424.4 |
| 1,792.1 | 1,715.1 | |
| equity and Liabilities | ||
| Equity | 589.4 | 567.0 |
| Non-current liabilities | 899.2 | 849.9 |
| Current liabilities | 303.5 | 298.2 |
| 1,792.1 | 1,715.1 |
interim management report Financial position employees transactions with Respect to Related parties events after the Balance Sheet Date Risk and opportunity Report 13
Equity totalled €589.4 million as of the reporting date, an increase of €22.4 million on yearend 2010 thanks to the profit after taxes posted for the reporting period. The equity ratio was 32.9% on the reporting date (31 December 2010: 33.1%).
At € 899.2 million, non-current liabilities were € 49.3 million higher than at year-end 2010 (€ 849.9 million). This rise resulted primarily from new borrowing twinned with low repayments on non-current financial liabilities. By contrast, current liabilities increased only slightly to €303.5 million (as of 31 December 2010: € 298.2 million).
HHLA employed 4,707 people as of 31 March 2011. Staff numbers at HHLA therefore remained largely unchanged year on year (- 0.1 % from 4,713 as of 31 March 2010). There was a slight increase of 28 employees compared to 31 December 2010. Thanks to the stable upwards trend in throughput and transport volumes since the second quarter of 2010, HHLA was able to end the period of short-time working hours introduced in summer 2009 as of 1 November 2010 at most Group companies. The only exception was the HHLA Logistics subsidiary. Staff participating in the training programme are also continuing to pursue their educational courses, some of which run until summer 2011. A total of 480 employees took part in this programme, with the majority of them working towards a professional qualification.
There are various contracts between the Free and Hanseatic City of Hamburg and/or the Hamburg Port Authority and companies in the HHLA Group for the lease of land and quay walls in the Port of Hamburg and in the Speicherstadt historical warehouse district. 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 2010.
There were no transactions of special significance after the balance sheet date of 31 March 2011.
The tragic earthquake that struck in Japan in mid-March and its consequences could have an impact on HHLA's business model. To avert potential threats for the Port of Hamburg, HHLA has drawn up an extensive package of measures in conjunction with Hamburg's Ministry of the Interior, the Hamburg Port Authority, the Port of Hamburg federation of businesses, the relevant authorities, the Federal Office for Radiation Protection and customs. Although the main Japanese ports of importance for international container traffic are still functional, delays and problems in the transport chain are expected due primarily to the closure of local production lines. It is currently impossible to assess the impact on Japan and the potential further consequences with sufficient certainty. With regard to the HHLA Group's risk position, the statements made in the management report section of the 2010 annual report continue to apply, unless this report indicates otherwise. See also page 90 et seq. of the Annual Report 2010. The risk factors associated with the HHLA Group's business activities are described there in the chapter "Risk and opportunity report". Any new potential opportunities which arose in the past quarter are described in the business forecast section of this report. See also page 14.
38 Real Estate
Following the strong economic recovery of the past year, the global economy generally made further encouraging progress in the first three months of 2011. Although the risks have increased in the light of political unrest in North Africa and the Middle East, soaring commodity prices, and the natural and nuclear disaster in Japan, the macroeconomic forecasts published by leading research institutes have remained largely unchanged so far. In its latest projection for 2011, the International Monetary Fund still anticipates global economic growth of 4 to 5%. The report also forecasts growth of 7% in world trade. However, the pace of growth is expected to slow as the year progresses. The figures for 2010 form a more challenging comparative basis due to the highly dynamic growth of the past year. Moreover, massive government cutbacks and more restrictive monetary policies are likely to have a dampening effect.
Growth rates are still expected to vary widely in the economic regions of prime importance for the business of HHLA. The IMF forecasts strong economic growth of over 8 % for Asia and an increase of as much as 10% in China's gross domestic product (GDP). More moderate expansion of 3 to 4% is predicted, however, for the Central and Eastern European economies. Russia is expected to display slightly stronger growth of just under 5 %. Modest economic growth of just over 2 % is anticipated for the industrialized countries of the eurozone, while Germany's GDP looks set to rise by almost 3%.
Assuming the economic upturn remains robust, market research institutes such as Drewry forecast growth of around 8% in global container throughput for 2011. This will be driven mainly by South-East Asia, the Far East and Eastern Europe. While above-average growth is predicted particularly for container traffic within Asia, the forecasts for Northern European ports suggest more moderate growth of just over 5%. It is ex-
pected that the market environment will continue to be dominated by fierce competition in handling and transport services. At the same time, container shipping companies are exposed to both soaring fuel costs and renewed pressure on earnings. Despite the ongoing recovery in volumes, surplus handling capacity is still expected in Northern Europe.
As pent-up demand subsides, Europe's landbased pre-carriage and on-carriage systems are expected to enjoy moderate growth in transport volumes of around 4%. Depending on the target region served, growth rates are likely to vary. Transport prices should show signs of recovery as the year progresses. However, the strength of this recovery will differ according to carrier type and route.
The market environment remains heterogeneous for the HHLA companies in the Logistics segment. In fruit handling and contract logistics, changes in cargo scheduling and shifts in consignment activities towards sales markets are keeping competitive pressure high. By contrast, German steel production, which is an indicator for bulk cargo handling of iron ore and coal, is already registering high levels of capacity utilization and could grow by 2%. Meanwhile, growth of 5% is still forecasted for car exports.
As the comparative basis from last year will become much more challenging from the second quarter onwards, it will be impossible to maintain the growth rates achieved in the first three months. Nevertheless, HHLA meanwhile believes that revenue growth of 10 to 15% at Group level is feasible for the full year 2011 (previously: in the region of 10%). Despite the additional cost burden from pent-up demand, higher procurement prices and reorganization expenses, the company still aims to improve its operating margin (EBIT). With regard to minority interests, their pro rata share of profit after taxes is expected to decline, leaving a greater proportion for the shareholders of the parent company.
| Growth of over 10 % |
|---|
| Growth in the region of 10 % |
| Increase in the region of 10 to 15 % |
| Margin improvement |
| Ranging from € 180 to € 220 million |
Despite the increasingly challenging environment, HHLA expects business in the non-listed Real Estate subgroup to remain largely stable. Revenue is likely to be slightly higher than in the previous year. However, increased maintenance work is expected to have a greater impact on the EBIT margin than in the previous year.
Revenue and earnings will continue to be driven predominantly by the Port Logistics subgroup, to which the relevant Group targets also apply. Assuming the volume trends persist in the coming months, volume growth in the Container segment is expected to exceed 10% now. However, pressure on earnings is expected to remain high for the foreseeable future. At the same time, the above-mentioned cost factors are expected to have a considerable impact on ship handling in particular. Nevertheless, HHLA aims to improve its operating margin. Other operating income of €15 million for the premature termination of land use by the empty container centre should support this. However, it will be offset in part by expenditure for the relocation. Providing the macroeconomic environment remains stable, the Intermodal segment will probably be able to increase transport volume by around 10 %. Revenue growth is likely to be similarly strong and a number of routes have potential for improved revenue quality. In line with the expansion of inland terminals and the realignment of Transfracht's transport services, the company expects growth in the segment's added value – and thus also its EBIT margin. In the Logistics segment, HHLA now anticipates revenue roughly on a par with the previous year's due to weak indications from fruit handling. Against this background, the company does not expect to be able to build on the previous year's operating margin.
The continued capital expenditure is expected to lead to a further increase in the Group's balance sheet total for the full year. As well as investing in modernization work at the container termin als – including a large-scale project to expand handling operations in Odessa on the Black Sea – the company will focus on ramping up hinterland traffic to further strengthen its vertical integration along the transport chain. Overall, the HHLA Group's planned capital expenditure remains unchanged in a range between € 180 million and €220 million.
A rise in non-current assets, primarily in the area of property, plant and equipment, can therefore be expected on the assets side. On the liabilities side, equity is currently expected to develop in line with the level of net profit generated. Financial liabilities for the realization of investment projects are also expected to increase.
Otherwise, the further development of business will mainly be financed by the available liquidity reserves and the positive cash flows from current business activities. HHLA's good credit standing offers further financing possibilities.
HHLA is therefore confident that sufficient financial funds will remain available for its valueenhancing corporate development.
No material changes with regard to other topics occurred during the reporting period. The following table lists the topics concerned. The relevant disclosures are largely included in the Annual Report for 2010 and remain valid.
| Areas in which no material changes occurred in the reporting period |
|---|
| (Page numbers refer to the Annual Report 2010) |
| Company organization and structure See front flap, page 54 et seq. |
| Company goals/strategies See page 60 et seq. |
| Main services See page 56 et seq. |
| Sales markets/competitive position See page 57 et seq. |
| Research and development See page 68 et seq. |
| Legal parameters See page 62 et seq. |
| Principles and goals of financial management See page 82 |
| Company disposals and acquisitions See page 84 et seq. |
| Planned changes to structure/organization and strategy/goals See page 102 |
| Future services, sales markets/competitive position, R&D activities See page 102 |
| Dividend policy See page 102 |
| Medium-term developments See page 102 et seq. |
| in € thousand | 1– 3 2011 | 1– 3 2010 |
|---|---|---|
| Revenue | 289,755 | 236,918 |
| Changes in inventories | 128 | 681 |
| Own work capitalized | 1,753 | 1,456 |
| Other operating income | 5,697 | 6,966 |
| Cost of materials | - 103,178 | - 80,387 |
| Personnel expenses | - 86,255 | - 75,741 |
| Other operating expenses | - 32,899 | - 28,554 |
| earnings before interest, taxes, depreciation and amortization (eBItDA) | 75,001 | 61,339 |
| Depreciation and amortization | - 31,043 | - 25,946 |
| earnings before interest and taxes (eBIt) | 43,958 | 35,393 |
| Earnings from associates accounted for using the equity method | 64 | - 5 |
| Interest income | 1,916 | 668 |
| Interest expenses | - 9,797 | - 10,312 |
| Other financial result | - 137 | 0 |
| Financial result | - 7,954 | - 9,649 |
| earnings before tax (eBt) | 36,004 | 25,744 |
| Income tax | - 10,910 | - 7,062 |
| profit after tax | 25,094 | 18,682 |
| of which attributable to minority interests | 8,680 | 7,512 |
| of which attributable to shareholders of the parent company | 16,414 | 11,170 |
| earnings per share, basic, in € | ||
| Group | 0.23 | 0.15 |
| Port Logistics | 0.21 | 0.14 |
| Real Estate | 0.52 | 0.60 |
| earnings per share, diluted, in € | ||
| Group | 0.23 | 0.15 |
| Port Logistics | 0.21 | 0.14 |
| Real Estate | 0.52 | 0.60 |
| in € thousand | 1– 3 2011 | 1– 3 2010 |
|---|---|---|
| profit after tax | 25,094 | 18,682 |
| Cash flow hedges | 513 | - 537 |
| Translation differences | - 3,117 | 3,452 |
| Deferred taxes on changes recognized directly in equity | - 121 | 136 |
| Other | 2 | 15 |
| Income and expense recognized directly in equity | - 2,723 | 3,066 |
| total comprehensive income | 22,371 | 21,748 |
| of which attributable to minority interests | 8,784 | 7,588 |
| of which attributable to shareholders of the parent company | 13,587 | 14,160 |
Interim Financial Statements Income Statement HHLA Subgroups Statement of Comprehensive Income HHLA Subgroups 18
| in € thousand; subgroup port Logistics and subgroup real estate; annex to the condensed notes |
1– 3 2011 Group |
1– 3 2011 port Logistics |
1– 3 2011 real estate |
1– 3 2011 Consolidation |
|---|---|---|---|---|
| Revenue | 289,755 | 283,428 | 7,458 | - 1,131 |
| Changes in inventories | 128 | 121 | 7 | 0 |
| Own work capitalized | 1,753 | 1,753 | 0 | 0 |
| Other operating income | 5,697 | 4,527 | 1,432 | - 262 |
| Cost of materials | - 103,178 | - 101,584 | - 1,593 | - 1 |
| Personnel expenses | - 86,255 | - 85,736 | - 519 | 0 |
| Other operating expenses | - 32,899 | - 31,759 | - 2,534 | 1,394 |
| earnings before interest, taxes, depreciation and amortization (eBItDA) | 75,001 | 70,750 | 4,251 | 0 |
| Depreciation and amortization | - 31,043 | - 30,065 | - 1,055 | 77 |
| earnings before interest and taxes (eBIt) | 43,958 | 40,685 | 3,196 | 77 |
| Earnings from associates accounted for using the equity method | 64 | 64 | 0 | 0 |
| Interest income | 1,916 | 1,926 | 22 | - 32 |
| Interest expenses | - 9,797 | - 8,631 | - 1,198 | 32 |
| Other financial result | - 137 | - 137 | 0 | 0 |
| Financial result | - 7,954 | - 6,778 | - 1,176 | 0 |
| earnings before tax (eBt) | 36,004 | 33,907 | 2,020 | 77 |
| Income tax | - 10,910 | - 10,225 | - 666 | - 19 |
| profit after tax | 25,094 | 23,682 | 1,354 | 58 |
| of which attributable to minority interests | 8,680 | 8,680 | 0 | 0 |
| of which attributable to shareholders of the parent company | 16,414 | 15,002 | 1,354 | 58 |
| earnings per share, basic, in € | 0.23 | 0.21 | 0.52 | |
| earnings per share, diluted, in € | 0.23 | 0.21 | 0.52 |
| in € thousand; subgroup port Logistics and subgroup real estate; annex to the condensed notes |
1– 3 2011 Group |
1– 3 2011 port Logistics |
1– 3 2011 real estate |
1– 3 2011 Consolidation |
|---|---|---|---|---|
| profit after tax | 25,094 | 23,682 | 1,354 | 58 |
| Cash flow hedges | 513 | 513 | 0 | |
| Translation differences | - 3,117 | - 3,117 | 0 | |
| Deferred taxes on changes recognized directly in equity | - 121 | - 121 | 0 | |
| Other | 2 | 2 | 0 | |
| Income and expense recognized directly in equity | - 2,723 | - 2,723 | 0 | 0 |
| total comprehensive income | 22,371 | 20,959 | 1,354 | 58 |
| of which attributable to minority interests | 8,784 | 8,784 | 0 | |
| of which attributable to shareholders of the parent company | 13,587 | 12,175 | 1,412 |
| in € thousand; subgroup port Logistics and subgroup real estate; annex to the condensed notes |
1– 3 2010 Group |
1– 3 2010 port Logistics |
1– 3 2010 real estate |
1– 3 2010 Consolidation |
|---|---|---|---|---|
| Revenue | 236,918 | 230,958 | 7,146 | - 1,186 |
| Changes in inventories | 681 | 707 | - 26 | 0 |
| Own work capitalized | 1,456 | 1,452 | 0 | 4 |
| Other operating income | 6,966 | 5,696 | 1,470 | - 200 |
| Cost of materials | - 80,387 | - 79,053 | - 1,349 | 15 |
| Personnel expenses | - 75,741 | - 75,145 | - 596 | 0 |
| Other operating expenses | - 28,554 | - 27,714 | - 2,207 | 1,367 |
| earnings before interest, taxes, depreciation and amortization (eBItDA) | 61,339 | 56,901 | 4,438 | 0 |
| Depreciation and amortization | - 25,946 | - 24,997 | - 1,026 | 77 |
| earnings before interest and taxes (eBIt) | 35,393 | 31,904 | 3,412 | 77 |
| Earnings from associates accounted for using the equity method | - 5 | - 5 | 0 | 0 |
| Interest income | 668 | 613 | 89 | - 34 |
| Interest expenses | - 10,312 | - 9,060 | - 1,286 | 34 |
| Financial result | - 9,649 | - 8,452 | - 1,197 | 0 |
| earnings before tax (eBt) | 25,744 | 23,452 | 2,215 | 77 |
| Income tax | - 7,062 | - 6,384 | - 666 | - 12 |
| profit after tax | 18,682 | 17,068 | 1,549 | 65 |
| of which attributable to minority interests | 7,512 | 7,512 | 0 | 0 |
| of which attributable to shareholders of the parent company | 11,170 | 9,556 | 1,549 | 65 |
| earnings per share, basic, in € | 0.15 | 0.14 | 0.60 | |
| earnings per share, diluted, in € | 0.15 | 0.14 | 0.60 |
| in € thousand; subgroup port Logistics and subgroup real estate; annex to the condensed notes |
1– 3 2010 Group |
1– 3 2010 port Logistics |
1– 3 2010 real estate |
1– 3 2010 Consolidation |
|---|---|---|---|---|
| profit after tax | 18,682 | 17,068 | 1,549 | 65 |
| Cash flow hedges | - 537 | - 537 | 0 | |
| Translation differences | 3,452 | 3,452 | 0 | |
| Deferred taxes on changes recognized directly in equity | 136 | 136 | 0 | |
| Other | 15 | 15 | 0 | |
| Income and expense recognized directly in equity | 3,066 | 3,066 | 0 | 0 |
| total comprehensive income | 21,748 | 20,134 | 1,549 | 65 |
| of which attributable to minority interests | 7,588 | 7,588 | 0 | |
| of which attributable to shareholders of the parent company | 14,160 | 12,546 | 1,614 |
| in € thousand | ||
|---|---|---|
| Assets | 31.03.2011 | 31.12.2010 |
| non-current assets | ||
| Intangible assets | 84,225 | 83,850 |
| Property, plant and equipment | 959,383 | 978,583 |
| Investment property | 184,628 | 185,568 |
| Associates accounted for using the equity method | 1,684 | 1,620 |
| Financial assets | 8,573 | 8,284 |
| Deferred taxes | 34,263 | 32,766 |
| 1,272,756 | 1,290,671 | |
| Current assets | ||
| Inventories | 21,562 | 20,965 |
| Trade receivables | 145,638 | 126,516 |
| Receivables from related parties | 74,966 | 2,704 |
| Other financial receivables | 4,352 | 2,607 |
| Other assets | 14,007 | 15,209 |
| Income tax receivables | 20,897 | 20,972 |
| Cash and cash equivalents | 237,914 | 235,493 |
| 519,336 | 424,466 | |
| 1,792,092 | 1,715,137 | |
| equity and liabilities | ||
| 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 | 353,751 | 337,337 |
| Subgroup Port Logistics | 337,202 | 322,200 |
| Subgroup Real Estate | 16,549 | 15,137 |
| Other comprehensive income | 26,687 | 29,514 |
| Subgroup Port Logistics | 25,585 | 28,412 |
| Subgroup Real Estate | 1,102 | 1,102 |
| Minority interests in equity | - 3,472 | - 12,257 |
| Subgroup Port Logistics | - 3,472 | - 12,257 |
| Subgroup Real Estate | 0 | 0 |
| 589,374 | 567,002 | |
| non-current liabilities | ||
| Pension provisions | 331,883 | 331,134 |
| Other non-current provisions | 51,706 | 52,565 |
| Non-current liabilities to related parties | 65,734 | 65,747 |
| Non-current financial liabilities | 436,430 | 387,612 |
| Deferred taxes | 13,479 | 12,897 |
| 899,232 | 849,955 | |
| Current liabilities | ||
| Other current provisions | 22,190 | 21,896 |
| Trade liabilities | 74,632 | 77,026 |
| Current liabilities to related parties | 69,146 | 67,986 |
| Current financial liabilities | 96,242 | 91,136 |
| Other liabilities | 35,206 | 34,577 |
| Income tax liabilities | 6,070 | 5,559 |
| 303,486 | 298,180 | |
| 1,792,092 | 1,715,137 |
in € thousand; subgroup port Logistics and subgroup real estate; annex to the condensed notes
| Assets | 31.03.2011 Group |
31.03.2011 port Logistics |
31.03.2011 real estate |
31.03.2011 Consolidation |
|---|---|---|---|---|
| non-current assets | ||||
| Intangible assets | 84,225 | 84,208 | 17 | 0 |
| Property, plant and equipment | 959,383 | 936,609 | 5,536 | 17,238 |
| Investment property | 184,628 | 65,291 | 150,573 | - 31,236 |
| Associates accounted for using the equity method | 1,684 | 1,684 | 0 | 0 |
| Financial assets | 8,573 | 7,356 | 1,217 | 0 |
| Deferred taxes | 34,263 | 37,923 | 38 | - 3,698 |
| 1,272,756 | 1,133,071 | 157,381 | - 17,696 | |
| Current assets | ||||
| Inventories | 21,562 | 21,448 | 114 | 0 |
| Trade receivables | 145,638 | 144,950 | 688 | 0 |
| Receivables from related parties | 74,966 | 85,644 | 293 | - 10,971 |
| Other financial receivables | 4,352 | 4,280 | 72 | 0 |
| Other assets | 14,007 | 13,655 | 352 | 0 |
| Income tax receivables | 20,897 | 23,979 | 0 | - 3,082 |
| Cash and cash equivalents | 237,914 | 237,786 | 128 | 0 |
| 519,336 | 531,742 | 1,647 | - 14,053 | |
| 1,792,092 | 1,664,813 | 159,028 | - 31,749 |
| equity | ||||
|---|---|---|---|---|
| Subscribed capital | 72,680 | 69,975 | 2,705 | 0 |
| Capital reserve | 139,728 | 139,222 | 506 | 0 |
| Retained earnings | 353,751 | 337,202 | 27,081 | - 10,532 |
| Other comprehensive income | 26,687 | 25,585 | 1,102 | 0 |
| Minority interests in equity | - 3,472 | - 3,472 | 0 | 0 |
| 589,374 | 568,512 | 31,394 | - 10,532 | |
| non-current liabilities | ||||
| Pension provisions | 331,883 | 326,198 | 5,685 | 0 |
| Other non-current provisions | 51,706 | 50,291 | 1,415 | 0 |
| Non-current liabilities to related parties | 65,734 | 65,734 | 0 | 0 |
| Non-current financial liabilities | 436,430 | 412,608 | 23,822 | 0 |
| Deferred taxes | 13,479 | 13,826 | 6,817 | - 7,164 |
| 899,232 | 868,657 | 37,739 | - 7,164 | |
| Current liabilities | ||||
| Other current provisions | 22,190 | 19,991 | 2,199 | 0 |
| Trade liabilities | 74,632 | 72,295 | 2,337 | 0 |
| Current liabilities to related parties | 69,146 | 3,337 | 76,780 | - 10,971 |
| Current financial liabilities | 96,242 | 92,276 | 3,966 | 0 |
| Other liabilities | 35,206 | 34,916 | 290 | 0 |
| Income tax liabilities | 6,070 | 4,829 | 4,323 | - 3,082 |
| 303,486 | 227,644 | 89,895 | - 14,053 | |
| 1,792,092 | 1,664,813 | 159,028 | - 31,749 |
in € thousand; subgroup port Logistics and subgroup real estate; annex to the condensed notes
| Assets | 31.12.2010 Group |
31.12.2010 port Logistics |
31.12.2010 real estate |
31.12.2010 Consolidation |
|---|---|---|---|---|
| non-current assets | ||||
| Intangible assets | 83,850 | 83,831 | 19 | 0 |
| Property, plant and equipment | 978,583 | 955,772 | 5,464 | 17,347 |
| Investment property | 185,568 | 66,715 | 150,276 | - 31,423 |
| Associates accounted for using the equity method | 1,620 | 1,620 | 0 | 0 |
| Financial assets | 8,284 | 7,082 | 1,202 | 0 |
| Deferred taxes | 32,766 | 36,439 | 25 | - 3,698 |
| 1,290,671 | 1,151,459 | 156,986 | - 17,774 | |
| Current assets | ||||
| Inventories | 20,965 | 20,906 | 59 | 0 |
| Trade receivables | 126,516 | 125,831 | 685 | 0 |
| Receivables from related parties | 2,704 | 11,951 | 39 | - 9,286 |
| Other financial receivables | 2,607 | 2,535 | 72 | 0 |
| Other assets | 15,209 | 15,062 | 147 | 0 |
| Income tax receivables | 20,972 | 24,053 | 240 | - 3,321 |
| Cash and cash equivalents | 235,493 | 235,220 | 273 | 0 |
| 424,466 | 435,558 | 1,515 | - 12,607 | |
| 1,715,137 | 1,587,017 | 158,501 | - 30,381 | |
| equity and liabilities | ||||
| equity | ||||
| Subscribed capital | 72,680 | 69,975 | 2,705 | 0 |
| Capital reserve | 139,728 | 139,222 | 506 | 0 |
| Retained earnings | 337,337 | 322,200 | 25,728 | - 10,591 |
| Other comprehensive income | 29,514 | 28,412 | 1,102 | 0 |
| Minority interests in equity | - 12,257 | - 12,257 | 0 | 0 |
| 567,002 | 547,552 | 30,041 | - 10,591 | |
| non-current liabilities | ||||
| Pension provisions | 331,134 | 325,386 | 5,748 | 0 |
| Other non-current provisions | 52,565 | 51,143 | 1,422 | 0 |
| Non-current liabilities to related parties | 65,747 | 65,747 | 0 | 0 |
| Non-current financial liabilities | 387,612 | 362,657 | 24,955 | 0 |
| Deferred taxes | 12,897 | 13,431 | 6,649 | - 7,183 |
| 849,955 | 818,364 | 38,774 | - 7,183 | |
|---|---|---|---|---|
| Current liabilities | ||||
| Other current provisions | 21,896 | 19,984 | 1,912 | 0 |
| Trade liabilities | 77,026 | 73,748 | 3,278 | 0 |
| Current liabilities to related parties | 67,986 | 2,001 | 75,271 | - 9,286 |
| Current financial liabilities | 91,136 | 86,979 | 4,157 | 0 |
| Other liabilities | 34,577 | 34,252 | 325 | 0 |
| Income tax liabilities | 5,559 | 4,137 | 4,743 | - 3,321 |
| 298,180 | 221,101 | 89,686 | - 12,607 | |
| 1,715,137 | 1,587,017 | 158,501 | - 30,381 |
| in € thousand | 1– 3 2011 | 1– 3 2010 |
|---|---|---|
| 1. Cash flow from operating activities | ||
| Earnings before interest and taxes (EBIT) | 43,958 | 35,392 |
| Depreciation, amortization, impairment and reversals on non-financial non-current assets | 31,043 | 25,927 |
| Decrease in provisions | - 4,632 | - 2,097 |
| Gains/losses arising from the disposal of non-current assets | - 130 | 39 |
| Increase in inventories, trade receivables and other assets not attributable to investing or financing activities | - 21,762 | - 15,744 |
| Increase in trade payables and other liabilities not attributable to investing or financing activities | 6,739 | 890 |
| Interest received | 1,607 | 627 |
| Interest paid | - 4,497 | - 5,273 |
| Income tax paid | - 11,287 | - 9,047 |
| Exchange rate and other effects | - 2,677 | 1,462 |
| Cash flow from operating activities | 38,362 | 32,176 |
| 2. Cash flow from investing activities | ||
| Proceeds from disposal of intangible assets and property, plant and equipment | 407 | 246 |
| Payments for investments in property, plant and equipment and investment property | - 18,750 | - 6,500 |
| Payments for investments in intangible assets | - 1,928 | - 1,003 |
| Proceeds from disposal of non-current financial assets | 5 | 4 |
| Payments for investments in non-current financial assets | - 445 | - 936 |
| Payments for acquiring interests in consolidated companies and other business units | 0 | - 14 |
| Cash flow from investing activities | - 20,711 | - 8,203 |
| 3. Cash flow from financing activities | ||
| Redemption of lease liabilities | - 1,048 | - 879 |
| Proceeds from the issuance of bank loans | 60,000 | 0 |
| Payments for the redemption of bank loans | - 5,576 | - 8,745 |
| Cash flow from financing activities | 53,376 | - 9,624 |
| 4. Financial funds at the end of the period | ||
| Change in financial funds (subtotals 1. – 3.) | 71,027 | 14,349 |
| Change in financial funds due to exchange rates | 1,297 | - 852 |
| Financial funds at the beginning of the period | 233,682 | 179,156 |
| Financial funds at the end of the period | 306,006 | 192,653 |
| in € thousand; subgroup port Logistics and subgroup real estate; annex to the condensed notes |
1– 3 2011 Group |
1– 3 2011 port Logistics |
1– 3 2011 real estate |
1– 3 2011 Consolidation |
|---|---|---|---|---|
| 1. Cash flow from operating activities | ||||
| Earnings before interest and taxes (EBIT) | 43,958 | 40,685 | 3,196 | 77 |
| Depreciation, amortization, impairment and reversals on non-financial non-current assets |
31,043 | 30,065 | 1,055 | - 77 |
| Change in provisions | - 4,632 | - 4,770 | 138 | |
| Gains/losses arising from the disposal of non-current assets | - 130 | - 130 | 0 | |
| Change in inventories, trade receivables and other assets not attributable to investing or financing activities |
- 21,762 | - 21,791 | - 556 | 585 |
| Change in trade payables and other liabilities not attributable to investing or financing activities |
6,739 | 7,134 | 190 | - 585 |
| Interest received | 1,607 | 1,617 | 22 | - 32 |
| Interest paid | - 4,497 | - 3,061 | - 1,468 | 32 |
| Income tax paid | - 11,287 | - 10,596 | - 691 | |
| Exchange rate and other effects | - 2,677 | - 2,677 | 0 | |
| Cash flow from operating activities | 38,362 | 36,476 | 1,886 | 0 |
| 2. Cash flow from investing activities | ||||
| Proceeds from disposal of intangible assets and property, plant and equipment |
407 | 407 | 0 | |
| Payments for investments in property, plant and equipment and investment property |
- 18,750 | - 17,328 | - 1,422 | |
| Payments for investments in intangible assets | - 1,928 | - 1,927 | - 1 | |
| Proceeds from disposal of non-current financial assets | 5 | 5 | 0 | |
| Payments for investments in non-current financial assets | - 445 | - 468 | 23 | |
| Cash flow from investing activities | - 20,711 | - 19,311 | - 1,400 | 0 |
| 3. Cash flow from financing activities | ||||
| Redemption of lease liabilities | - 1,048 | - 1,048 | 0 | |
| Proceeds from the issuance of bank loans | 60,000 | 60,000 | 0 | |
| Payments for the redemption of bank loans | - 5,576 | - 4,444 | - 1,132 | |
| Cash flow from financing activities | 53,376 | 54,508 | - 1,132 | 0 |
| 4. Financial funds at the end of the period | ||||
| Change in financial funds (subtotals 1. – 3.) | 71,027 | 71,673 | - 646 | 0 |
| Change in financial funds due to exchange rates | 1,297 | 1,297 | 0 | |
| Financial funds at the beginning of the period | 233,682 | 238,009 | - 4,327 | |
| Financial funds at the end of the period | 306,006 | 310,979 | - 4,973 | 0 |
| in € thousand; subgroup port Logistics and subgroup real estate; annex to the condensed notes |
1– 3 2010 Group |
1– 3 2010 port Logistics |
1– 3 2010 real estate |
1– 3 2010 Consolidation |
|---|---|---|---|---|
| 1. Cash flow from operating activities | ||||
| Earnings before interest and taxes (EBIT) | 35,392 | 31,904 | 3,411 | 77 |
| Depreciation, amortization, impairment and | ||||
| reversals on non-financial non-current assets | 25,927 | 24,978 | 1,026 | - 77 |
| Change in provisions | - 2,097 | - 2,267 | 170 | |
| Gains/losses arising from the disposal of non-current assets | 39 | 39 | 0 | |
| Change in inventories, trade receivables and other assets not attributable to investing or financing activities |
- 15,744 | - 15,719 | 371 | - 396 |
| Increase in trade payables and other liabilities not attributable to investing or financing activities |
890 | 87 | 407 | 396 |
| Interest received | 627 | 617 | 44 | - 34 |
| Interest paid | - 5,273 | - 3,716 | - 1,591 | 34 |
| Income tax paid | - 9,047 | - 7,945 | - 1,102 | |
| Exchange rate and other effects | 1,462 | 1,462 | 0 | |
| Cash flow from operating activities | 32,176 | 29,440 | 2,736 | 0 |
| 2. Cash flow from investing activities | ||||
| Proceeds from disposal of intangible assets and | ||||
| property, plant and equipment | 246 | 246 | 0 | |
| Payments for investments in property, plant and equipment and investment property |
- 6,500 | - 6,122 | - 378 | |
| Payments for investments in intangible assets | - 1,003 | - 1,003 | 0 | |
| Proceeds from disposal of non-current financial assets | 4 | 4 | 0 | |
| Payments for investments in non-current financial assets | - 936 | - 935 | - 1 | |
| Payments for acquiring interests in consolidated | ||||
| companies and other business units | - 14 | - 14 | 0 | |
| Cash flow from investing activities | - 8,203 | - 7,824 | - 379 | 0 |
| 3. Cash flow from financing activities | ||||
| Redemption of lease liabilities | - 879 | - 879 | 0 | |
| Payments for the redemption of bank loans | - 8,745 | - 7,613 | - 1,132 | |
| Cash flow from financing activities | - 9,624 | - 8,492 | - 1,132 | 0 |
| 4. Financial funds at the end of the period | ||||
| Change in financial funds (subtotals 1. – 3.) | 14,349 | 13,124 | 1,225 | 0 |
| Change in financial funds due to exchange rates | - 852 | - 852 | 0 | |
| Financial funds at the beginning of the period | 179,156 | 183,538 | - 4,382 | 0 |
| Financial funds at the end of the period | 192,653 | 195,810 | - 3,157 | 0 |
| annex to the condensed notes | Subgroup port Logistics |
|---|---|
| 1– 3 2011 | Container | Intermodal | Logistics | Holding/Other | Real Estate |
|---|---|---|---|---|---|
| Segment revenue | |||||
| Segment revenue from non-affiliated third parties | 169,562 | 84,334 | 24,684 | 4,328 | 6,847 |
| Inter-segment revenue | 2,657 | 436 | 8,961 | 33,852 | 610 |
| Total segment revenue | 172,219 | 84,770 | 33,645 | 38,180 | 7,457 |
| earnings | |||||
| EBITDA | 62,937 | 9,064 | 2,102 | - 3,367 | 4,252 |
| EBITDA margin | 36.5 % | 10.7 % | 6.2 % | - 8.8 % | 57.0 % |
| EBIT | 40,495 | 5,362 | 139 | - 5,764 | 3,197 |
| EBIT margin | 23.5 % | 6.3 % | 0.4 % | - 15.1 % | 42.9 % |
| Segment assets | 897,552 | 251,164 | 103,747 | 220,170 | 158,862 |
| other segment information | |||||
| Investments | |||||
| Property, plant and equipment and investment property |
6,627 | 2,315 | 702 | 260 | 1,422 |
| Intangible assets | 1,366 | 115 | 13 | 200 | 0 |
| Depreciation of property, plant and equipment and investment property |
20,912 | 3,615 | 1,909 | 2,272 | 1,052 |
| Amortization of intangible assets | 1,531 | 86 | 53 | 125 | 3 |
| Non-cash items | 5,125 | 944 | 938 | 3,508 | 209 |
| Container throughput in thousand TEU | 1,654 | ||||
| Container transport1 in thousand TEU |
454 | ||||
| 1– 3 2010 | |||||
| Segment revenue2 | |||||
| Segment revenue from non-affiliated third parties | 131,838 | 68,467 | 26,333 | 3,734 | 6,546 |
| Inter-segment revenue | 2,556 | 381 | 841 | 30,561 | 600 |
| Total segment revenue | 134,394 | 68,848 | 27,174 | 34,295 | 7,146 |
| earnings | |||||
| EBITDA | 51,180 | 5,868 | 3,396 | - 3,442 | 4,438 |
| EBITDA margin | 38.1 % | 8.5 % | 12.5 % | - 10.0 % | 62.1 % |
| EBIT | 32,388 | 2,715 | 1,614 | - 5,185 | 3,412 |
| EBIT margin | 24.1 % | 3.9 % | 5.9 % | - 15.1 % | 47.7 % |
| EBIT from continuing activities3 | 32,388 | 2,745 | 1,614 | - 5,185 | 3,412 |
| Segment assets | 823,180 | 260,815 | 114,371 | 185,239 | 155,132 |
| other segment information | |||||
| Investments | |||||
| Property, plant and equipment and investment property |
4,911 | 519 | 239 | 453 | 378 |
| Intangible assets | 805 | 37 | 1 | 134 | 0 |
| Depreciation of property, plant and equipment and investment property |
17,945 | 3,078 | 1,719 | 1,600 | 1,023 |
| Amortization of intangible assets | 848 | 75 | 62 | 143 | 3 |
| Non-cash items | 4,665 | 4,026 | 849 | 2,873 | 344 |
| Container throughput in thousand TEU | 1,253 | ||||
| Container transport1 in thousand TEU |
378 |
The transport volume was fully consolidated.
For the purposes of comparison the revenue figures have been presented without income from incidental rental expenses.
3 EBIT from continuing activities does not contain the result from CTL.
In the figures for the current financial year an individual disclosure was dispensed with for reasons of materiality.
| Group | Consolidation and reconciliation with Group |
total | Subgroup real estate | |
|---|---|---|---|---|
| Real Estate | Holding/Other | |||
| 289,755 | 0 | 289,755 | 6,847 | 4,328 |
| - 46,516 | 46,516 | 610 | 33,852 | |
| 336,271 | 7,457 | 38,180 | ||
| 75,001 | 13 | 74,988 | 4,252 | - 3,367 |
| 57.0 % | - 8.8 % | |||
| 43,958 | 529 | 43,429 | 3,197 | - 5,764 |
| 1,792,092 | 42.9 % | - 15.1 % | ||
| 160,597 | 1,631,495 | 158,862 | 220,170 | |
| 0 | 11,326 | 1,422 | 260 | |
| 235 | 1,694 | 0 | 200 | |
| - 256 | 29,760 | 1,052 | 2,272 | |
| - 259 | 1,798 | 3 | 125 | |
| 17 | 10,724 | 209 | 3,508 | |
| 0 | 236,918 | 6,546 | 3,734 | |
| 236,918 | - 34,939 | 34,939 | 600 | 30,561 |
| 271,857 | 7,146 | 34,295 | ||
| - 101 | 61,440 | 4,438 | - 3,442 | |
| 62.1 % | - 10.0 % | |||
| 449 | 34,944 | 3,412 | - 5,185 | |
| 47.7 % | - 15.1 % | |||
| 435 | 34,974 | 3,412 | - 5,185 | |
| 69,663 | 1,538,737 | 155,132 | 185,239 | |
| 0 | 6,500 | 378 | 453 | |
| 26 | 977 | 0 | 134 | |
| 1,608,400 | - 251 | 25,365 | 1,023 | 1,600 |
| - 298 | 1,131 | 3 | 143 |
in € thousand
| parent company | ||||||
|---|---|---|---|---|---|---|
| Subscribed capital | Capital reserve | Retained consolidated earnings |
Reserve for translation |
|||
| A division | S division | A division | S division | |||
| Balance as of 31.12.2009 | 69,975 | 2,705 | 139,222 | 506 | 291,805 | - 18,624 |
| Dividends | ||||||
| Total comprehensive income | 11,170 | 3,265 | ||||
| Balance as of 31.03.2010 | 69,975 | 2,705 | 139,222 | 506 | 302,975 | - 15,359 |
| Balance as of 31.12.2010 | 69,975 | 2,705 | 139,222 | 506 | 337,337 | - 15,046 |
| Total comprehensive income | 16,414 | - 3,147 | ||||
| Balance as of 31.03.2011 | 69,975 | 2,705 | 139,222 | 506 | 353,751 | - 18,193 |
| total consolidated equity |
minority interests |
parent com pany interests |
||||
|---|---|---|---|---|---|---|
| Other comprehensive income | ||||||
| Other | Deferred taxes on changes recognized directly in equity |
Actuarial gains/losses |
Cash flow hedges |
|||
| 636,985 | 102,225 | 534,760 | 11,687 | - 17,808 | 56,161 | - 869 |
| - 682 | - 682 | 0 | ||||
| 21,748 | 7,588 | 14,160 | 13 | 83 | - 371 | |
| 658,051 | 109,131 | 548,920 | 11,700 | - 17,725 | 56,161 | - 1,240 |
| 567,002 | - 12,257 | 579,260 | 11,585 | - 15,698 | 49,700 | - 1,026 |
| 22,372 | 8,785 | 13,586 | 1 | - 85 | 404 | |
| 589,374 | - 3,472 | 592,846 | 11,586 | - 15,783 | 49,700 | - 622 |
Statement of Changes in equity HHLA Subgroup port Logistics (A division) Statement of Changes in equity HHLA Subgroup real estate (S division)
in € thousand; annex to the condensed notes
| parent company | ||||||||
|---|---|---|---|---|---|---|---|---|
| Subscribed capital | Capital reserve | Retained consolidated earnings |
Reserve for translation |
Cash flow hedges |
Other comprehensive income | Actuarial gains/losses |
Deferred taxes on changes recognized directly in equity |
|
| Balance as of 31.12.2009 | 69,975 | 139,222 | 280,300 | - 18,624 | - 869 | 54,400 | ||
| Dividends | ||||||||
| Total comprehensive income subgroup |
9,556 | 3,265 | - 371 | |||||
| Balance as of 31.03.2010 | 69,975 | 139,222 | 289,856 | - 15,359 | - 1,240 | 54,400 | ||
| Balance as of 31.12.2010 | 69,975 | 139,222 | 322,200 | - 15,046 | - 1,026 | 48,074 | ||
| Total comprehensive income subgroup |
15,002 | - 3,147 | 404 | |||||
| Balance as of 31.03.2011 | 69,975 | 139,222 | 337,202 | - 18,193 | - 622 | 48,074 |
in € thousand; annex to the condensed notes
| Balance as of 31.12.2009 | |
|---|---|
| Total comprehensive income subgroup | |
| Balance as of 31.03.2010 | |
| Plus income statement consolidation effect | |
| Less balance sheet consolidation effect | |
| total effects of consolidation | |
| Balance as of 31.03.2010 | |
| Balance as of 31.12.2010 | |
| Total comprehensive income subgroup | |
| Balance as of 31.03.2011 | |
| Plus income statement consolidation effect | |
| Less balance sheet consolidation effect | |
| total effects of consolidation | |
| Balance as of 31.03.2011 | |
| total subgroup consolidated equity |
minority interests |
parent com pany interests |
||||
|---|---|---|---|---|---|---|
| Other comprehensive income | ||||||
| Other | Deferred taxes on changes recognized directly in equity |
Actuarial gains/losses |
Cash flow hedges |
|||
| 621,076 | 102,225 | 518,851 | 11,687 | - 17,240 | 54,400 | - 869 |
| - 682 | - 682 | 0 | ||||
| 20,134 | 7,588 | 12,546 | 13 | 83 | - 371 | |
| 640,528 | 109,131 | 531,397 | 11,700 | - 17,157 | 54,400 | - 1,240 |
| 547,552 | - 12,257 | 559,810 | 11,585 | - 15,174 | 48,074 | - 1,026 |
| 20,959 | 8,785 | 12,174 | 1 | - 85 | 404 | |
| 568,512 | - 3,472 | 571,984 | 11,586 | - 15,259 | 48,074 | - 622 |
| total subgroup consolidated equity |
other comprehensive income | ||||
|---|---|---|---|---|---|
| Deferred taxes on changes recognized directly in equity |
Actuarial gains/losses |
Retained consolidated earnings |
Capital reserve | Subscribed capital |
|
| 28,013 | - 568 | 1,761 | 23,610 | 506 | 2,705 |
| 1,549 | 1,549 | ||||
| 29,563 | - 568 | 1,761 | 25,159 | 506 | 2,705 |
| 65 | |||||
| - 12,105 | - 12,105 | ||||
| - 12,041 | - 12,041 | ||||
| 17,522 | - 568 | 1,761 | 13,118 | 506 | 2,705 |
| 30,041 | - 524 | 1,626 | 25,728 | 506 | 2,705 |
| 1,354 | 1,354 | ||||
| 31,394 | - 524 | 1,626 | 27,082 | 506 | 2,705 |
| 58 | |||||
| - 10,591 | - 10,591 | ||||
| - 10,532 | - 10,532 | ||||
| 20,862 | - 524 | 1,626 | 16,549 | 506 | 2,705 |
The Group's parent company is Hamburger Hafen und Logistik Aktiengesellschaft, Bei St. Annen 1, 20457 Hamburg (in the following, HHLA), registered in the Hamburg Commercial Register under HRB 1902. The holding company above the HHLA Group is HGV Hamburger Gesellschaft für Vermögens- und Beteiligungsmanagement mbH, Hamburg.
The condensed interim consolidated financial statements, and therefore the information in the Notes, are presented in euros (€). For the sake of clarity, the individual items are shown in thousands of euros (€ thousand) unless otherwise indicated. Due to the use of rounding procedures it is possible that some figures do not add up to the stated sums.
There were no significant events in the reporting period.
The condensed interim consolidated financial statements for the period from 1 January to 31 March 2011 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 2010.
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 2010.
In addition, the company is applying the following rules for the first time as of 1 January 2011:
Income from incidental rental expenses, which was previously recognized in revenue, has been accounted for differently since the first quarter of 2011. This income was reclassified as other operating income for the first time as of 31 March 2011 and relates primarily to the Real Estate subgroup. The item includes income for operating costs that can be charged to tenants. This income does not constitute revenue due to its transitory nature. The corresponding figures in the income statement for last year have been restated accordingly. The following overview can be used for comparison purposes:
| in € thousand | revenues | other operating income |
|||
|---|---|---|---|---|---|
| 1– 3 2011 | 1– 3 2010 | 1– 3 2011 | 1– 3 2010 | ||
| Before reclassification |
291,011 | 238,525 | 4,441 | 5,359 | |
| Reclassification | - 1,256 | - 1,607 | 1,256 | 1,607 | |
| After reclassification | 289,755 | 236,918 | 5,697 | 6,966 |
Notes to the Condensed Interim Consolidated Financial Statements Consolidation, accounting and valuation principles purchase and Sale of Shares in Subsidiaries earnings per Share Dividends paid Segment report 33
For the first time, a financial settlement payable to a minority shareholder calculated using estimated future shares of earnings was included in the non-current financial liabilities as of 31 December 2010. The estimated figure used as a basis for this liability was retained unchanged. It will be updated as and when new information becomes available.
Apart from that, there were no significant effects on the abridged interim consolidated financial statements.
No shares in subsidiaries were purchased or sold in the first quarter of 2011.
The following table illustrates the calculation for basic earnings per share:
| 1– 3 2011 | 1– 3 2010 | |
|---|---|---|
| Net profit attributable to shareholders of the parent company in € thousand |
16,414 | 11,170 |
| Number of shares in circulation | 72,679,826 | 72,679,826 |
| Basic earnings per share in € | 0.23 | 0.15 |
Basic earnings per share were calculated for the Port Logistics subgroup as follows:
| 1– 3 2011 | 1– 3 2010 | |
|---|---|---|
| Net profit attributable to shareholders of the parent company in € thousand |
15,002 | 9,556 |
| Number of shares in circulation | 69,975,326 | 69,975,326 |
| Basic earnings per share in € | 0.21 | 0.14 |
Basic earnings per share were calculated for the Real Estate subgroup as follows:
| 1– 3 2011 | 1– 3 2010 | |
|---|---|---|
| Net profit attributable to shareholders of the parent company in € thousand |
1,412 | 1,614 |
| Number of shares in circulation | 2,704,500 | 2,704,500 |
| Basic earnings per share in € | 0.52 | 0.60 |
Diluted earnings per share are identical to basic EPS as there were no conversion or option rights in circulation during the reporting period.
The Executive Board and Supervisory Board propose to distribute € 38,486 thousand to the shareholders of the Port Logistics subgroup and € 3,245 thousand to the shareholders of the Real Estate subgroup in 2011. This is equivalent to a dividend per share of € 0.55 for the Port Logistics subgroup and € 1.20 for the Real Estate subgroup. The Annual General Meeting will vote on the dividend payout on 16 June 2011.
The segment report is presented as an annex to the Notes to the condensed consolidated financial statements. see also page 26 et seq. segment report.
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 previous year, internal reporting was extended to include EBIT from continuing activities. For further information, please refer to the consolidated financial statements as of 31 December 2010. Since the first quarter of 2011, the EBIT margin has been reported alongside the standard EBIT figure.
The accounting and valuation principles applied for internal reporting comply with the principles used for the HHLA Group as described in Note 6 "Accounting and valuation principles" in the Notes to the consolidated financial statements as of 31 December 2010.
Segment information is reported on the basis of the internal control function, which is consistent with external reporting and con tinues 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.
Notes to the Condensed Interim Consolidated Financial Statements Segment report equity pension provisions 34
The HHLA Group continues to operate in the following four segments:
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.
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.
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.
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.
| in € thousand | 1– 3 2011 | 1– 3 2010 |
|---|---|---|
| total segment earnings (eBIt) | 43,429 | 34,944 |
| Elimination of intercompany relations between segments and subgroups |
529 | 449 |
| Group (eBIt) | 43,958 | 35,393 |
| Earning from associated accounted for using the equity method |
64 | - 5 |
| Net interest | - 7,881 | - 9,644 |
| Other financial result | - 137 | 0 |
| earnngs before tax (eBt) | 36,004 | 25,744 |
The change of € 3,147 thousand in the reserve for translation differences results mainly from exchange rate movements for the Ukrainian hryvnia.
The breakdown and development of HHLA's equity for the first three months of 2011 and 2010 are presented in the statement of changes in equity. see also page 28 et seq. statement of changes in equity.
The calculation of pension provisions as of 31 March 2011 was based on an interest rate of 4.50 % (31 December 2010: 4.50 %; 31 March 2010: 4.75 %). This means that there was no change in the actuarial gains or losses to be posted directly to equity for the reporting period.
Consequently, the actuarial gains or losses offset in equity developed as follows:
| in € thousand | 2011 | 2010 |
|---|---|---|
| Accumulated actuarial gains on 1 January |
49,838 | 56,253 |
| Change in financial year | 0 | 0 |
| Accumulated actuarial gains on 31 march |
49,838 | 56,253 |
As of 31 March 2011, total investments throughout the HHLA Group amounted to € 13.3 million.
The largest investments up to the end of the first quarter of 2011 were made in the Container and Intermodal segments.
Of the most significant investment commitments as of 31 March 2011, the Container segment accounted for an amount of €33.6 million and the Intermodal segment for an amount of € 27.2 million.
Companies within the HHLA Group were involved in legal disputes within the scope of their commercial activities as of 31 March 2011. 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 %.
A settlement was reached in 2010 between the Hamburg Port Authority, Hamburg (HPA), UNIKAI Hafenbetrieb GmbH, Hamburg (UNIKAI), and LZU Leercontainer Zentrum Unikai GmbH, Hamburg (LZU), regarding the premature termination of leases for port areas with effect from 30 June 2011. HPA is a related party of HHLA and must pay total compensation of €15,000 thousand to UNIKAI and LZU at the end of the second quarter for loss of income from the leased areas. No evidence has emerged so far which might alter this right to compensation as of 30 June 2011.
There were no other notable events after the balance sheet date 31 March 2011.
Hamburg, 13 May 2011
The Management Board
Klaus-Dieter Peters Dr. Stefan Behn Heinz Brandt
Dr. Sebastian Jürgens Dr. Roland Lappin
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, 13 May 2011
Hamburger Hafen und Logistik Aktiengesellschaft
The Management Board
Klaus-Dieter Peters Dr. Stefan Behn Heinz Brandt
Dr. Sebastian Jürgens Dr. Roland Lappin
16 June 2011 Annual General Meeting
12 August 2011 Interim Report January – June 2011
11 November 2011 Interim Report January – September 2011
Hamburger Hafen und Logistik AG Bei St. Annen 1 20457 Hamburg Germany Tel.: +49-40-3088-0 Fax: +49-40-3088-3355 [email protected] www.hhla.de
Tel.: +49-40-3088-3100 Fax: +49-40-3088-55-3100 [email protected]
Tel.: +49-40-3088-3446 Fax: +49-40-3088-3355 [email protected]
Kirchhoff Consult AG
For specialist terminology and financial terms see the annual report 2010, page 182 et seq.
This document contains forward-looking statements which are based on the current estimates and assumptions by the corporate management of Hamburger Hafen und Logistik Aktiengesellschaft (HHLA ). Forward-looking statements are 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.
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, [email protected]
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