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Hamburger Hafen und Logistik AG

Quarterly Report May 13, 2015

195_10-q_2015-05-13_822ed677-f9ba-49e9-9028-30dd1f60a7fd.pdf

Quarterly Report

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HAMBURGER HAFEN UND LOGISTIK AKTIENGESELLSCHAFT Interim Report January to March 2015

Key Figures

HHLA Group
in € million 1– 3 2015 1– 3 2014 Change
Revenues and Earnings
Revenues 296.9 293.5 1.2 %
EBITDA 73.1 69.4 5.3 %
EBITDA margin in % 24.6 23.7 0.9 pp
EBIT 43.0 39.3 9.3 %
EBIT margin in % 14.5 13.4 1.1 pp
Profi t after tax 20.0 19.2 4.1 %
Profi t after tax and minority interests 12.6 10.5 19.8 %
Cash fl ow statement and Investments
Cash fl ow from operating activities 38.6 52.5 - 26.5 %
Investments 31.5 39.4 - 20.0 %
Performance trend
Container throughput in thousand TEU 1,747 1,862 - 6.2 %
Container transport in thousand TEU 333 305 9.3 %
in € million 31.03.2015 31.12.2014 Change
Balance sheet
Balance sheet total 1,827.0 1,788.1 2.2 %
Equity 536.0 546.7 - 2.0 %
Equity ratio in % 29.3 30.6 - 1.3 pp
Employees
Number of employees 5,265 5,194 1.4 %
Port Logistics subgroup 1, 2 Real Estate subgroup 1, 3
in € million 1– 3 2015 1– 3 2014 Change 1– 3 2015 1– 3 2014 Change
Revenues 289.6 286.4 1.1 % 8.7 8.4 3.6 %
EBITDA 67.8 64.5 5.0 % 5.3 4.9 9.1 %
EBITDA margin in % 23.4 22.5 0.9 pp 61.4 58.3 3.1 pp
EBIT 38.8 35.5 9.4 % 4.1 3.8 8.4 %
EBIT margin in % 13.4 12.4 1.0 pp 47.1 45.1 2.0 pp
Profi t after tax and minority interests 10.5 8.4 23.9 % 2.1 2.0 2.6 %
Earnings per share in € 4 0.15 0.12 23.9 % 0.77 0.75 2.6 %

Before consolidation between the subgroups

Listed Class A shares.

3 Not-listed Class S shares.

4 Basic and diluted

Contents

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

Interim Management Report

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

Interim Financial Statements

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

Responsibility Statement

Financial Calendar/Imprint

The Share

Stock Market Data

30.12.2014 – 31.03.2015 HHLA SDAX DAX
Change 13.3 % 17.1 % 22.0 %
Closing 31.12.2014 € 17.25 7,186 9,806
Closing 31.03.2015 € 19.55 8,417 11,966
High € 21.37 8,464 12,168
Low € 17.05 7,128 9,470

Developments on the German stock market were dominated by a variety of exogenous factors in the fi rst quarter of 2015: the ongoing Ukraine crisis, the decline in crude oil prices, the current and future policies of the central banks and the fi nancial situation in Greece, as well as the effect this may have on the European currency union. At the beginning of the year, the DAX continued its upward trend from 2014 and received a further boost in mid-January on news that the European Central Bank (ECB) was planning a quantitative easing programme. In early February, market sentiment was dampened by the Greek debt dispute and the situation in eastern Ukraine. The stock markets reacted all the more positively therefore to the negotiated ceasefi re between Ukraine and Russia and the agreement reached between Greece and the other eurozone countries at the end of February. This positive market environment helped the leading indices achieve strong growth in the fi rst half of March. On 16 March, the DAX reached a new all-time high of 12,168 points. In the second half of the month, this momentum was slowed somewhat by fears of an earlier interest rate turnaround in the USA. However, strong economic data from Germany and the USA lifted the index back to 11,966 points at the end of the quarter. As a result, the DAX fi nished 22.0 % up on the end of 2014. At 17.1 %, the SDAX also grew strongly in the fi rst three months and closed at 8,417 points on 31 March 2015.

Despite the uncertainties mentioned above, the HHLA share made a good start to the new year and even outperformed the DAX and SDAX in the fi rst two weeks of January. In the second half of the month, the HHLA share was buoyed by positive market sentiment following the ECB announcement on quantitative easing. A slight dip below € 18.50 at the end of the month was interpreted by some market participants as a technical signal for a trend breakout. This led to an above-average increase in trading volumes on 29 January as large numbers of shares were sold and the share price fell 3.4 % in a single day. However, the share price quickly recovered and was bolstered by the release of preliminary fi gures for the 2014 fi nancial

year that lay slightly above market expectations. The negotiations between Russia and Ukraine, which led to the Minsk II agreement in mid-February, were interpreted as a positive signal for HHLA and the share price stabilised above € 19 in the second half of the month. In a very dynamic market at the beginning of March, the share exceeded the € 20 mark for the fi rst time, and rose to a quarterly high of € 21.37 on 20 March. The change in an analyst recommendation from "hold" to "sell" on 25 March put the share under pressure and the price subsequently fell by around 2.5 %. Upon release of the annual fi gures for 2014 on 30 March, the outlook for the 2015 fi nancial year only partially fulfi lled market expectations. As a result, the share fell slightly and closed the quarter at € 19.55. The HHLA share therefore ended the quarter 13.3 % up on its closing price at the end of 2014.

In addition to numerous discussions with investors and analysts at the company's headquarters in Hamburg, the IR team also attended a conference in the fi nancial centre of Frankfurt. Discussions centred on economic developments in Europe and China, the uncertain political situation in Ukraine, the economic sanctions against Russia and their possible impact on HHLA. The dredging of the river Elbe was also frequently mentioned in discussions.

A total of 22 fi nancial analysts covered HHLA's business development in the fi rst quarter of 2015. HHLA thus continues to receive very broad coverage for an SDAX company. The majority of analysts recommend either buying or holding the share.

Source: Datastream

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

Ladies and Gentlemen,

2015 started well for Hamburger Hafen und Logistik AG. We were able to continue last year's upward trend in both revenues and earnings in the fi rst quarter. Compared to the fi rst quarter of 2014, Group revenues was up slightly by 1.2 % while the operating result (EBIT) rose strongly by 9.3 %. Developments in our various segments, however, were quite varied.

The development of the Intermodal segment refl ects ever more clearly just how far-sighted and successful our strategy of vertical alignment along the transport chain is. Our rail companies in particular are playing an increasingly important role within the Group. Both Metrans and Polzug achieved double-digit growth in transport volumes year on year and succeeded in expanding their market shares. The increases in volume and transport distances are also refl ected in higher revenues. Our investments in greater value added are now having a clear impact on earnings (EBIT): the operating result more than doubled compared to the same period in 2014.

Seaborne container handling volumes are down strongly on the fi rst quarter of 2014 – a trend which was already becoming apparent in the preceding quarters. In addition to a lower degree of capacity utilisation of the liner services, we also registered a further decrease in the volatile feeder traffi c. Feeder traffi c with Russia alone declined by approximately 40 % year on year due to the current crisis. This was contrasted by consistently high growth rates in profi table rail and truck carriers at our Hamburg terminals. Compared to the same period last year, the Container segment's operating result (EBIT) was down. In addition to the decrease in volumes, this decline can also be attributed to lower storage fees; this income was considerably higher in the fi rst quarter of 2014 due to ship delays. Over the course of the year, however, we expect volumes in the Container segment to recover.

Handling at our Container Terminal Odessa now seems to have reached its lowest point. Should the political and economic situation in Ukraine stabilises and we are able to capture further market shares, we expect a return to year-on-year throughput growth in the course of this year.

Klaus-Dieter Peters Chairman of the Executive Board

The improvement in our operating result (EBIT) at Group level is all the more encouraging in view of how challenging conditions remain. Economic developments in two important markets are currently having a negative impact on our business. China's economic growth continues to weaken and reached its lowest rate of the last six years in the fi rst quarter of 2015. The economic situation in Russia is starting to reach crisis-level. According to the latest forecast of the International Monetary Fund, the Russian economy will shrink by almost 4 % this year, due largely to sanctions imposed as a result of the Ukraine crisis, isolation from the global capital markets and falling crude oil prices.

Against the backdrop of ever larger ship sizes, the dredging of the river Elbe is becoming increasingly urgent. We are therefore hoping for a swift decision from the courts and for construction to begin as soon as possible. In the meantime, we are continuing to expand our capacities in line with demand – especially for the handling of very large container ships – and are focusing on optimising the processes between our container terminals in the port and the connecting hinterland traffi c.

We are upholding our forecast for the current year and expect a slight increase in container throughput as well as moderate growth in container transport. At Group level, we anticipate a slight increase in revenues and an operating result (EBIT) on a par with the prioryear fi gure. The prerequisite for this trend is that there are no major changes either in the global economy or on the global fi nancial markets. We are confi dent, however, that we will achieve our targets.

Yours,

Klaus-Dieter Peters Chairman of the Executive Board

Business Development at a Glance

  • I Slight increase in revenues of 1.2 % to € 296.9 million
  • I Operating result (EBIT) clearly outpaces revenues growth with 9.3 % increase to € 43.0 million
  • I Financial result still adversely affected by exchange rate effects (Ukraine)
  • I Profi t after tax and minority interests climbs signifi cantly by 23.9 % to € 10.5 million
  • I Successful continuation of intermodal strategy prompts dynamic growth of 9.3 % in container transport
  • I Container throughput down 6.2 % on previous year in particular due to strong decrease in Russian traffi c and weak domestic demand in Ukraine
  • I Forecast for the full year 2015 unchanged

Interim Management Report

Economic Environment

Macroeconomic Development

In the winter half-year 2014/2015, the global economy was impacted by several signifi cant factors. Firstly, there were considerable shifts in global exchange rate relationships due to di verging monetary policies; the US dollar, for example, revalued signifi cantly against the currencies of other major economies. Secondly, declining oil prices affected certain key factors which play a decisive role in determining economic development.

Although the pace of global economic growth picked up over the course of 2014, there were already signs of a slight slowdown in the fourth quarter. According to sentiment indicators released by the Kiel Institute for the World Economy (IfW), this trend continued in the fi rst quarter of 2015. Nevertheless, the development of the global economy remained stable. World trade mirrored the accelerated pace of economic growth in 2014 and grew by a total of 3.4 %, in line with global gross domestic product. Due to the slight slowdown in global economic activity in the fi rst quarter of 2015, the IfW also expects a corresponding loss of pace in trade growth in the fi rst three months of the year.

According to the International Monetary Fund (IMF), there was virtually no growth momentum emanating from the advanced economies in spring 2015. Economic activity in the emerging and developing countries, on the other hand, grew moderately in the fi rst quarter. The pace of economic growth in the People's Republic of China contains to slow due to restrained capital expenditure. Gross domestic product (GDP) in the world's second-largest economy grew by 7.0 % in the fi rst quarter of 2015 compared to the same period last year. This is the lowest growth rate in six years. The situation in Russia

is gradually reaching crisis-level proportions. The economy is burdened both by persistent structural problems and by the economic sanctions imposed by the West. These sanctions were imposed for Russia's role in the Ukraine confl ict. The situation has been exacerbated by the rapid decline in crude oil prices at the end of the previous year. The Ukrainian economy is also suffering from the effects of the ongoing confl ict with Russia. By contrast, the eurozone's economic recovery continued to gather pace at the beginning of the year. Experts therefore expect GDP to climb by 1.0 % year on year in the fi rst quarter. The German economy remains solid: with growth of 0.7 % over the last quarter of 2014, the latest economic indicators signal robust growth in the fi rst quarter of 2015. Germany's foreign trade benefi ted from the depreciation of the euro and the increased competitiveness of exports. Compared to the same period last year, exports increased by 1.7 % in January and February 2015. German imports fell in total by 0.7 % in the fi rst two months.

Sector Development

Following the solid upswing in global container traffi c with growth rates of 5.1 % last year – measured by container throughput at the ports – the trend slowed slightly at the beginning of this year. According to current estimates by the market research institute Drewry, container throughput volume at global ports increased by 4.3 % in the fi rst three months of 2015 compared to the same period last year.

The rate of expansion in capacities, on the other hand, remained unchanged. Compared to the previous year, the transport capacity – measured by carrying capacity of the global container ship fl eet – increased by 7.1 % to 18.6 million standard containers (TEU) in the period up to March. In view of the increasing imbalances on the container shipping market, freight rates remain

under pressure. Shipping companies are continuing their cost-saving and capacity management measures in order to achieve profi tability. The large 2M ( Maersk and MSC) and Ocean 3 (CMA CGM, UASC and CSCL) alliances began operations in January in order to improve utilisation of their transport capacities via coordinated activities.

All in all, the north-west European ports are enjoying stable growth. Following an increase in traffi c of 3.2 % in 2014, the latest sentiment indicators are again pointing to growth of 3.2 % for the fi rst quarter of 2015. Developments in the large container ports of the North Range – Rotterdam, Antwerp, Zeebrügge, Bremen and Hamburg – have been mixed: while Rotterdam

and Antwerp recorded an increase in container volumes compared with weaker quarters of the previous year, the Bremen ports continued the downward trend seen in previous years. The largest European port, Rotterdam, managed to increase container throughput by 7.6 % in the fi rst quarter of 2015. In Antwerp, 9.5 % more containers were handled at the quay wall. By contrast, Bremen recorded a 1.6 % decrease in throughput in January and February compared to the same period last year.

At the time of this interim report going to press, no reliable data was available for the fi rst quarter regarding the development of cargo transported via road, rail and inland waterways.

Group Performance

Key Figures

in € million 1– 3 2015 1– 3 2014 Change
Revenues 296.9 293.5 1.2 %
EBITDA 73.1 69.4 5.3 %
EBITDA margin in % 24.6 23.7 0.9 pp
EBIT 43.0 39.3 9.3 %
EBIT margin in % 14.5 13.4 1.1 pp
Profi t after tax and minority interests 12.6 10.5 19.8 %
Earnings from associates (using the equity method) 1.1 1.0 14.7 %
ROCE in % 13.2 12.0 1.2 pp

Notes on the Reporting

In the period under review, negative exchange rate effects arose from the devaluation of the local Ukrainian currency. This had a signifi cant impact on the Group's net assets, earnings and fi nancial position. There were no further effects that had a material impact on the HHLA Group's revenues or earnings.

There is normally no long-term order backlog for handling and transport services, and thus no use is made of this particular reporting fi gure.

Earnings Position

Against the backdrop of the economic environment mentioned above, HHLA recorded a yearon-year decrease in throughput volumes in the fi rst three months of 2015. Container throughput declined by 6.2 % to 1,747 thousand TEU (previous year: 1,862 thousand TEU). This was due to lower feeder volumes, weak domestic demand in Ukraine and a strong decrease in traffi c to and from Russia. Transport volumes increased by 9.3 % to 333 thousand TEU (previous year: 305 thousand TEU).

Revenues for the HHLA Group amounted to € 296.9 million in the reporting period and was thus 1.2 % higher than in the previous year (€ 293.5 million). In addition to increased intermodal traffi c volumes, this was also due to a disproportionately smaller decline in Container segment revenues compared to the volume decrease.

In its Container, Intermodal and Logistics segments, the listed Port Logistics subgroup generated revenues of € 289.6 million in the reporting period (previous year: € 286.4 million). This growth in the Port Logistics subgroup almost matched the trend for the Group as a whole. The non-listed Real Estate subgroup raised revenues by 3.6 % to € 8.7 million (previous year: € 8.4 million) and contributed 2.5 % to Group revenues.

Changes in inventories did not have a noticeable effect on consolidated net profi t. Own work capitalised remained on a par with the previous year's level at € 2.1 million (previous year: € 2.0 million).

Other operating income amounted to € 7.7 million (previous year: € 8.6 million).

Expenses

Despite the increase in revenues described above, operating expenses declined by a total of 0.6 % to € 263.7 million.

The cost of materials fell 2.5 % in the reporting period to € 93.6 million (previous year: € 96.0 million). This signifi cant decrease in the cost of mater ials ratio to 31.5 % (previous year: 32.7 %) is the result of cost structure deviations from the extended own traction in intermodal traffi c between the German North Sea ports and the Czech Republic since the beginning of the year and the increased utilasation of trains in the Intermodal segment.

Personnel expenses rose year on year by 2.1 % to € 105.2 million (previous year: € 103.1 million). In addition to higher union wage rates, personnel expenses were affected by the output-related expansion of the Intermodal segment's workforce and increased headcount in the Container segment to handle peak loads. The personnel expenses ratio increased slightly to 35.4 % (previous year: 35.1 %).

Other operating expenses fell by 3.4 % to € 34.8 million (previous year: € 36.0 million) in the reporting period. Their share of revenues decreased from 12.3 % in the previous year to 11.7 %.

As a result of these developments, the HHLA Group saw its operating result before depreciation and amortisation (EBITDA) rise by 5.3 % to € 73.1 million (previous year: € 69.4 million). The EBITDA margin rose to 24.6 % (previous year: 23.7 %) during the reporting period.

At € 30.1 million, depreciation and amortisation was unchanged from the previous year (€ 30.1 million).

At Group level, the operating result (EBIT) increased by 9.3 % to € 43.0 million (previous year: € 39.3 million). The EBIT margin also rose strongly to 14.5 % (previous year: 13.4 %). The Port Logistics and Real Estate subgroups contributed 90.3 % and 9.7 % to EBIT, respectively.

Net expenses from the fi nancial result climbed in total by € 2.4 million to € 13.7 million (previous year: € 11.3 million). These additional expenses were mainly due to negative exchange rate effects in the amount of € 7.7 million (previous year: € 4.8 million), due to the devaluation of the Ukrainian currency.

At 31.6 % the Group's effective tax rate was similar to the prior-year fi gure (31.3 %).

Profi t after tax rose by 4.1 % from € 19.2 million to € 20.0 million. Profi t after tax and minority interests climbed by 19.8 % to € 12.6 million year on year (previous year: € 10.5 million).

Earnings per share of € 0.17 were also 19.8 % above last year's fi gure of € 0.14. The listed Port Logistics subgroup reported a 23.9 % rise in earnings per share to € 0.15 (previous year: € 0.12). Earnings per share in the non-listed Real Estate subgroup were up 2.6 % at € 0.77 (previous year: € 0.75). Largely due to the improved operating result (EBIT), the return on capital employed (ROCE) rose by 1.2 percentage points to 13.2 % (previous year: 12.0 %).

Container Segment

Key Figures

in € million 1– 3 2015 1– 3 2014 Change
Revenues 180.0 186.1 - 3.3 %
EBITDA 54.1 59.2 - 8.6 %
EBITDA margin in % 30.1 31.8 - 1.7 pp
EBIT 32.6 37.3 - 12.6 %
EBIT margin in % 18.1 20.0 - 1.9 pp
Earnings from associates (using the equity method) 0.2 0.1 29.7 %
Container throughput in thousand TEU 1,747 1,862 - 6.2 %

At 1,747 thousand standard containers (TEU), throughput at the HHLA terminals in Hamburg and Odessa in the fi rst three months of 2015 was 6.2 % below the previous year's fi gure. The decrease in volume varied considerably across locations. Although throughput volumes in Odessa fell 13.4 % year on year, they remained on a par with the fi gures of the preceding three quarters. The 5.9 % decrease at the Hamburg terminals compared to the fi rst quarter of 2014 is mainly the result of a drop in feeder traffi c with Baltic ports, which was down 19.3 % year on year. In addition to the re-routing of individual shipping companies, this was primarily due to the decline in traffi c to and from Russia, which fell almost 40 % compared to the previous year. There was a corresponding drop in the feeder ratio to 23.3 % (previous year: 26.9 %). By contrast, container handling for ocean-going vessels was only slightly down on the previous year at 0.9 % due to the strong throughput growth of rail and truck transport at HHLA's Hamburg terminals.

Changes in the cargo mix in favour of more profitable ocean-going and hinterland traffi c led to an overall increase in handling revenues. However, this could not fully compensate for the decrease in storage fees compared to the same period last year. At the beginning of 2014, these fees were higher than average due to the weather-related delay of

many overseas services and the longer dwell times of containers at the terminals that this caused. As a result, revenues fell by a total of 3.3 % in the fi rst quarter of 2015 to € 180.0 mil lion (previous year: € 186.1 million). Nevertheless, average revenues per standard container handled at the quayside increased by 3.1 % as a result of the decreased proportion of lower-margin feeder traffi c.

Lower handling volumes led to a slight decrease in EBIT costs, which were down 1.0 % on the fi rst quarter of 2014. By contrast, unit costs were up 5.6 % year on year, since their effective indicator – seaborne handling volumes – sank while the shift in the cargo mix led to increased deployment of personnel to handle higher hinterland volumes. This resulted in diseconomies of scale that could not be offset by the increase in productivity. At the same time, the training of new employees and use of external staff led to increased personnel costs. These developments resulted in a 12.6 % de crease in the operating result (EBIT), which amounted to € 32.6 million (previous year: € 37.3 million). The EBIT margin fell correspondingly to 18.1 % (previous year: 20.0 %).

In view of the trend in ship sizes, efforts to expand capacity are continuing: further tandem container gantry cranes have been ordered for the Container Terminal Burchardkai (CTB).

Intermodal Segment

Key Figures

in € million 1– 3 2015 1–3 2014 Change
Revenues 91.7 82.9 10.6 %
EBITDA 18.2 11.0 65.9 %
EBITDA margin in % 19.9 13.3 6.6 pp
EBIT 12.7 5.8 117.2 %
EBIT margin in % 13.8 7.0 6.8 pp
Container transport in thousand TEU 333 305 9.3 %

HHLA's rail and road-based transport companies once again achieved strong growth in the highly competitive market for container traffi c in the hinterland of major seaports. With growth of 9.3 %, transport volumes climbed to 333 thousand standard containers (TEU) compared to 305 thousand TEU in the same period last year.

This trend was primarily driven by the growth in railway transportation. Transport connections within Germany, Austria and Switzerland and traffi c between the Adriatic ports and the Central and Eastern European hinterland recorded aboveaverage growth. Transport volumes from the Polish seaports were also increased signifi cantly.

With growth of 10.6 % to € 91.7 million (previous year: € 82.9 million), revenues outpaced volume gains. The main reason for this was the increase in the average transportation distance, partly as a result of the increase in the share of railway traffi c from 73.7 % to 75.8 % of HHLA's total intermodal transportation.

The operating result (EBIT) doubled compared to the same quarter last year to € 12.7 million (previous year: € 5.8 million) and signifi cantly outperformed volume and revenues growth. The extension of own traction by further locomotives from the beginning of the year 2015 had a particularly positive effect on productivity rates and led to improved cost structures. Better utilisation of trains, made possible by a benefi cial mix of import and export volumes, also had a positive effect on segment earnings. The ongoing restructuring of the Polzug Group also contributed to the encouraging earnings trend. In addition, one-off effects for restructuring and increased expenditure to deal with operational disruptions, which had burdened onward-carriage systems due to shipping delays in spring 2014 have not occurred in the fi rst quarter of 2015.

Since the beginning of the year, Metrans has been operating a further inland terminal in the northern Bohemian area of Usti nad Labem, bringing the dynamic growth regions of northern Bohemia and south-east Saxony into the Metrans network. At the beginning of April, Metrans took delivery and put into operation the last of the 20 new multisystem locomotives.

Logistics Segment

Key Figures

in € million 1– 3 2015 1–3 2014 Change
Revenues 15.1 15.0 0.5 %
EBITDA - 0.9 - 0.5 neg.
EBITDA margin in % - 6.3 - 3.4 neg.
EBIT - 1.3 - 0.8 neg.
EBIT margin in % - 8.5 - 5.3 neg.
Earnings from associates (using the equity method) 1.0 0.8 12.1 %

Since 2014, the key fi nancial fi gures for the Logistics segment have only included vehicle logistics, project and contract logistics, consultancy activities and cruise logistics. The results from bulk cargo and fruit logistics have been included in earnings from associates, accounted for using the equity method, since 2014 and 2012 respectively. To ensure that the Logistics segment is presented as fully as possible, earnings from associates are also shown in the table above.

The performance of the segment's individual business fi elds varied strongly in the fi rst few months of the 2015 fi nancial year. The com panies included in earnings from associates all succeeded in raising volumes, revenues and earnings. By contrast, the development of the other companies was more modest in the fi rst quarter of 2015. While segment revenues of € 15.1 million was on a par with the previous year's level, EBIT of € -1.3 million was down on the same period last year (previous year: € - 0.8 million).

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

As in 2014, vehicle logistics got off to a modest start in the new fi nancial year, due to weatherrelated shipping cancellations and changes in rotation. At 368 thousand tonnes, including packing, handling was 1.0 % below the prioryear fi gure. At 49.1 thousand, vehicle handling fell short of the fi gure achieved in the fi rst quarter last year by 4.2 %. Revenues and EBIT failed to match the previous year's level.

Due to customer delays in awarding contracts, consultancy activities got off to a modest start in 2015. Revenues was on a par with the previous year while EBIT was down on the fi rst quarter of 2014.

The market environment for project and contract logistics remained challenging in the reporting period. Revenues exceeded the prioryear fi gure, but earnings fell short of the previous year's level, which included income from other accounting periods.

As in the previous year, cruise logistics processed fi ve ships in the fi rst quarter of 2015. For seasonal reasons, cruise logistics did not provide any meaningful volume, revenues and earnings fi gures in the fi rst quarter.

At 3.7 million tonnes, seaborne handling volumes in bulk cargo logistics exceeded the prior-year volume by a total of 11.2 % in the fi rst quarter due to an increase in coal handling. Revenues and earnings also climbed signifi cantly over the fi rst quarter of 2014.

Fruit logistics was able to continue last year's positive trend in the fi rst quarter of 2015. Volumes increased significantly by 15.6 % to 146 thousand tonnes. Revenues and earnings also exceeded the prior-year fi gures substantially.

Real Estate Segment

Key Figures

in € million 1– 3 2015 1–3 2014 Change
Revenues 8.7 8.4 3.6 %
EBITDA 5.3 4.9 9.1 %
EBITDA margin in % 61.4 58.3 3.1 pp
EBIT 4.1 3.8 8.4 %
EBIT margin in % 47.1 45.1 2.0 pp

Despite fewer large contracts over 5,000 m2 , the Hamburg offi ce market started the year with considerable growth. According to the offi ce market overview by Grossmann & Berger, 123,000 m2 – or approximately 17 % – more space was let in the fi rst quarter of 2015 than in the previous year. This was primarily due to the large number of owneroccupied offi ce properties, which amounted to around 43 % in the fi rst three months of 2015.

Approximately 65 % of the space let in Hamburg in the fi rst quarter of 2015 was in the market sections City, HafenCity and City Süd. At 44 %, City Centre accounted for the largest share, followed by HafenCity with 14 % and City Süd with 7 %. City Centre activities were dominated by contracts for spaces under 1,000 m2 . The rise in let spaces in the higher-priced segments led to an increased monthly average rental cost of € 14.80/m² in the relevant market sections.

According to fi gures released by Jones Lang La-Salle, the vacancy rate stood at 6.9 % at the end of the fi rst quarter of 2015, and was thus once again clearly below the prior-year fi gure (7.5 %).

Against this backdrop, HHLA's properties in the Speicherstadt historical warehouse district and the fi sh market area on the northern bank of the river Elbe continued to make good progress with yearon-year revenues growth of 3.6 %. This result was driven by high occupancy rates, with almost full occupancy in both quarters. The revenues growth expected from newly let properties this year will primarily result from the new hotel in the Speicherstadt historical warehouse district, which opened in autumn 2014.

There was a disproportionate increase in the operating result (EBIT) of 8.4 % year on year to € 4.1 million (previous year: € 3.8 million). This growth was mainly due to lower maintenance costs as a result of weather conditions in the fi rst quarter of 2015. Maintenance plans already in preparation will lead to a normalisation of earnings over the course of the year.

Financial Position

Liquidity Analysis

in € million 1– 3 2015 1– 3 2014
Financial funds as of 01.01 185.6 151.1
Cash fl ow from
operating activities
38.6 52.5
Cash fl ow from
investing activities
- 48.9 -58.6
Free cash fl ow - 10.3 -6.1
Cash fl ow from
fi nancing activities
14.6 13.4
Change in
fi nancial funds
4.3 7.3
Change in
fi nancial funds due to
exchange rates
- 2.6 3.1
Financial funds
as of 31.03
187.3 161.5

The cash infl ow from operating activities (operating cash fl ow) declined by € 13.9 million in the fi rst quarter of 2015 to € 38.6 million (previous year: € 52.5 million). This decrease is primarily the result of an increase in assets, especially receivables from affi liated companies as well as a slight rise in trade liabilities compared to the same quarter last year. The improved operating result had the opposite effect.

Investing activities led to cash outflows of € 48.9 million (previous year: € 58.6 million). This decrease of € 9.7 million was due to an increase in short-term bank deposits. Capital expenditure on property, plant and equipment and investment property was on a par with the previous year.

Free cash fl ow, defi ned as the total of cash fl ow from operating activities plus the cash fl ow from investing activities, amounted to € - 10.3 million at the end of the reporting period (previous year: € - 6.1 million) and was therefore down on the previous year.

The cash infl ow from fi nancing activities of € 14.6 million (previous year: € 13.4 million) resulted from the take-up of loans in the current fi nancial year amounting to € 20.2 million. This was partly offset by the redemption of loans and lease liabilities.

As of the reporting date, the changes described above resulted in fi nancial funds of € 187.3 million (previous year: € 161.5 million) – which were thus higher than at the beginning of the year (as of 31 December 2014: € 185.6 million). Including short-term deposits, the Group's available liquidity totalled € 287.3 million (previous year: € 251.5 million).

Investment Analysis

The investment volume in the reporting period amounted to € 31.5 million and was thus below the prior-year fi gure of € 39.4 million. Property, plant and equipment accounted for € 30.1 million (previous year: € 36.9 million) of capital expenditure, while intangible assets accounted for € 1.4 million (previous year: € 2.5 million). The majority of the investments were for expansion work.

In the fi rst quarter of 2015, the acquisition of new locomotives was the main focus of investment.

For the remainder of the 2015 financial year, capital expenditure will continue to focus on increasing productivity in the existing terminal areas and expanding the high-performance hinterland connections in line with market demands.

Balance Sheet Structure

in € million
Assets 31.03.2015 31.12.2014
Non-current assets 1,307.5 1,308.1
Current assets 519.5 480.0
1,827.0 1,788.1
Equity and liabilities
Equity 536.0 546.7
Non-current liabilities 971.2 918.9
Current liabilities 319.8 322.5
1,827.0 1,788.1

Balance Sheet Analysis

Compared with the end of 2014, the HHLA Group's balance sheet total increased as of the reporting date by a total of € 38.9 million to € 1,827.0 million.

Non-current assets of € 1,307.5 million were € 0.6 million lower than at year-end (as of 31 December 2014: € 1,308.1 million). This was mainly due to scheduled depreciation on property, plant and equipment as well as currency translation adjustments for HHLA's Ukrainian subsidiary. Capital expenditure in this period had the opposite effect. There was also an increase in deferred tax assets. This was due in part to changes in pension provisions due to interest rates.

At € 519.5 million, current assets as of 31 March 2015 exceeded the amount reported on 31 December 2014 (as of 31 December 2014:€ 480.0 million) by € 39.4 million. This growth resulted from a € 44.0 million increase in receivables from affi liated companies within the scope of the cash clearing system, while cash and cash equivalents decreased by € 20.4 million.

Equity fell by € 10.7 million to € 536.0 million as of the reporting date (as of 31 December 2014: € 546.7 million). This decrease is primarily due to the reduction in other comprehensive income: actuarial gains less deferred taxes fell by € 21.2 million while the reserve for translation differences declined by € 9.8 million. Net profi t for the quarter of € 20.0 million had a positive effect. As a result, there was a decline in the equity ratio, which stood at 29.3 % at the end of the fi rst quarter (as of 31 December 2014: 30.6 %).

The increase in non-current liabilities of € 52.4 million to € 971.2 million compared to the end of the year (as of 31 December 2014: € 918.9 million) was largely due to the rise in pension provisions following changes to actuarial parameters amounting to € 34.3 million and the increase in non-current fi nancial liabilities of € 17.4 million caused primarily by borrowing.

The decrease in current liabilities of € 2.7 million to € 319.8 million (as of 31 December 2014: € 322.5 million) is partly due to a decrease in trade liabilities of € 9.5 million. The € 6.6 million increase in current fi nancial liabilities had the opposite effect.

Interim Management Report Employees Transactions with Respect to Related Parties Events after the Balance Sheet Date Business Forecast Risk and Opportunity Report 14

Employees

Number of employees in the HHLA Group as of 31.03.2015

HHLA's workforce totalled 5,265 on the reporting date, 31 March 2015. This fi gure represents a slight increase of 1.4 % or 71 employees since 31 December 2014. In absolute fi gures, headcount growth was strongest in the Intermodal segment: due to the expansion of services, the number of staff increased by 5.8 %, or 76 employees. An increase in the workforce of three in the Real Estate segment led to a rise of 8.3 % compared to the end of 2014. Headcount in the other segments remained largely constant compared to the beginning of the year. The number of staff in the Container segment decreased by 0.2 %, or fi ve employees. Headcount in the Logistics segment rose by 2.2 %, or fi ve employees. The number of staff in the Holding/Other division fell by 1.4 % or eight employees.

Transactions with Respect to Related Parties

There are various contracts between the Free and Hanseatic City of Hamburg and/or the Hamburg Port Authority and companies in the HHLA Group for the lease of land and quay walls in the Port of Hamburg and in the Speicherstadt historical warehouse district. Moreover, the HHLA Group lets offi ce space to other enterprises and public institutions affi liated 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 2014.

Events after the Balance Sheet Date

There were no signifi cant events after the balance sheet date of 31 March 2015.

Business Forecast

Expectations regarding the Group's earnings position in 2015 remain unchanged. HHLA remains confi dent that a slight increase in container throughput can be achieved in 2015. With regards to container transport HHLA expects a moderate increase.

At Group level, this will be accompanied by a slight increase in revenues in 2015 compared to the previous year. The operating result (EBIT) is expected to remain on a par with the previous year.

Developments at the Port Logistics subgroup in 2015 are likely to mirror the relative changes in key performances fi gures for the Group as a whole. Unlike the Port Logistics subgroup, the Container segment will be unable to match the prior-year EBIT result. A slight decrease in the operating result is anticipated for this segment. By contrast, EBIT is expected to grow strongly in the Intermodal segment. Both revenues and EBIT of the Real Estate subgroup are likely to be on a par with the prior-year fi gures in 2015, whereby the proportion of maintenance recognised in profi t and loss will rise in 2015. Earnings in the Port Logistics subgroup and at Group level may also be depressed by exchange rate factors reported below EBIT as part of the fi nancial result.

Capital expenditure at Group level in 2015 is currently still expected to be in the region of € 170 million, almost all of which will go towards the Port Logistics subgroup.

Risk and Opportunity Report

On account of the continuing uncertainty regarding the situation in Ukraine, further exchange rate effects and a decline in handling demand at the container terminal in Odessa may have a negative impact on the HHLA Group's fi nancial position and performance. There remains a possibility that balance sheet fi gures may have to be adjusted in the future.

Moreover, with regard to the HHLA Group's risk and opportunity position, the statements made on pages 76 to 82 of the Management Report section of the 2014 Annual Report continue to apply, unless this report indicates otherwise. This section of the Annual Report describes the risk and opportunity factors associated with the HHLA Group's business activities. The risks identifi ed – taken both singularly and cumulatively – still do not threaten the existence of the Group. As far as the future is concerned, there are also no discernible risks at present which could jeopardise the continued existence of the Group.

Interim Financial Statements

Income Statement HHLA Group

in € thousand 1– 3 2015 1– 3 2014
Revenue 296,932 293,485
Changes in inventories 14 553
Own work capitalised 2,129 1,959
Other operating income 7,661 8,556
Cost of materials - 93,609 - 96,043
Personnel expenses - 105,206 - 103,052
Other operating expenses - 34,792 - 36,018
Earnings before interest, taxes, depreciation and amortisation (EBITDA) 73,129 69,440
Depreciation and amortisation - 30,135 - 30,096
Earnings before interest and taxes (EBIT) 42,994 39,344
Earnings from associates accounted for using the equity method 1,140 994
Interest income 10,135 4,846
Interest expenses - 24,978 - 17,175
Financial result - 13,703 - 11,335
Earnings before tax (EBT) 29,291 28,009
Income tax - 9,267 - 8,772
Profi t after tax 20,024 19,237
of which attributable to non-controlling interests 7,473 8,759
of which attributable to shareholders of the parent company 12,551 10,478
Earnings per share, basic, in €
Group 0.17 0.14
Subgroup Port Logistics 0.15 0.12
Subgroup Real Estate 0.77 0.75
Earnings per share, diluted, in €
Group 0.17 0.14
Subgroup Port Logistics 0.15 0.12
Subgroup Real Estate 0.77 0.75

Statement of Comprehensive Income HHLA Group

in € thousand 1– 3 2015 1– 3 2014
Profi t after tax 20,024 19,237
Components, which can not be transferred to Income Statement
Actuarial gains/losses - 31,258 - 11,305
Deferred taxes 10,085 3,717
Total - 21,173 - 7,588
Components, which can be transferred to Income Statement
Cash fl ow hedges 54 57
Foreign currency translation differences - 9,796 - 19,398
Deferred taxes - 78 8
Other 199 - 2
Total - 9,621 - 19,335
Income and expense recognised directly in equity - 30,794 - 26,924
Total Comprehensive Income - 10,769 - 7,687
of which attributable to non-controlling interests 7,417 8,740
of which attributable to shareholders of the parent company - 18,186 - 16,427

Interim Financial Statements 16

Income Statement HHLA Subgroups Statement of Comprehensive Income HHLA Subgroups

Income Statement HHLA Subgroups

in € thousand; subgroup Port Logistics and subgroup Real Estate;
annex to the condensed notes
1– 3 2015
Group
1– 3 2015
Port Logistics
1– 3 2015
Real Estate
1– 3 2015
Consolidation
Revenue 296,932 289,632 8,711 - 1,411
Changes in inventories 14 15 - 1 0
Own work capitalised 2,129 2,056 0 73
Other operating income 7,661 6,309 1,547 - 195
Cost of materials - 93,609 - 91,753 - 1,881 25
Personnel expenses - 105,206 - 104,639 - 567 0
Other operating expenses - 34,792 - 33,840 - 2,460 1,508
Earnings before interest, taxes, depreciation and amortisation (EBITDA) 73,129 67,780 5,349 0
Depreciation and amortisation - -30,135 - 28,971 - 1,243 79
Earnings before interest and taxes (EBIT) 42,994 38,809 4,106 79
Earnings from associates accounted for using the equity method 1,140 1,140 0 0
Interest income 10,135 10,156 10 - 31
Interest expenses - 24,978 - 23,817 - 1,192 31
Financial result - 13,703 - 12,521 - 1,182 0
Earnings before tax (EBT) 29,291 26,288 2,924 79
Income tax - 9,267 - 8,345 - 903 - 19
Profi t after tax 20,024 17,943 2,021 60
of which attributable to non-controlling interests 7,473 7,473 0
of which attributable to shareholders of the parent company 12,551 10,470 2,081
Earnings per share, basic, in € 0.17 0.15 0.77
Earnings per share, diluted, in € 0.17 0.15 0.77

Statement of Comprehensive Income HHLA Subgroups

in € thousand; subgroup Port Logistics and subgroup Real Estate;
annex to the condensed notes
1– 3 2015
Group
1– 3 2015
Port Logistics
1– 3 2015
Real Estate
1– 3 2015
Consolidation
Profi t after tax 20,024 17,943 2,021 60
Components, which can not be transferred to Income Statement
Actuarial gains/losses - 31,258 - 30,774 - 484
Deferred taxes 10,085 9,929 156
Total - 21,173 - 20,845 - 328
Components, which can be transferred to Income Statement
Cash fl ow hedges 54 54 0
Foreign currency translation differences - 9,796 - 9,796 0
Deferred taxes - 78 - 78 0
Other 199 199 0
Total - 9,621 - 9,621 0
Income and expense recognised directly in equity - 30,794 - 30,466 - 328 0
Total Comprehensive Income - 10,769 -12,523 1,694 60
of which attributable to non-controlling interests 7,417 7,417 0
of which attributable to shareholders of the parent company - 18,186 - 19,940 1,754

Income Statement HHLA Subgroups

in € thousand; subgroup Port Logistics and subgroup Real Estate;
annex to the condensed notes
1– 3 2014
Group
1– 3 2014
Port Logistics
1– 3 2014
Real Estate
1– 3 2014
Consolidation
Revenue 293,485 286,385 8,407 - 1,307
Changes in inventories 553 552 1 0
Own work capitalised 1,959 1,959 0 0
Other operating income 8,556 7,413 1,400 - 257
Cost of materials - 96,043 - 94,479 - 1,564 0
Personnel expenses - 103,052 - 102,494 - 558 0
Other operating expenses - 36,018 - 34,798 - 2,784 1,564
Earnings before interest, taxes, depreciation and amortisation (EBITDA) 69,440 64,538 4,902 0
Depreciation and amortisation - 30,096 - 29,060 - 1,114 78
Earnings before interest and taxes (EBIT) 39,344 35,478 3,788 78
Earnings from associates accounted for using the equity method 994 994 0 0
Interest income 4,846 4,732 149 - 35
Interest expenses - 17,175 - 16,134 - 1,076 35
Financial result - 11,335 - 10,408 - 927 0
Earnings before tax (EBT) 28,009 25,070 2,861 78
Income tax - 8,772 - 7,862 - 891 - 19
Profi t after tax 19,237 17,208 1,970 59
of which attributable to non-controlling interests 8,759 8,759 0
of which attributable to shareholders of the parent company 10,478 8,449 2,029
Earnings per share, basic, in € 0.14 0.12 0.75
Earnings per share, diluted, in € 0.14 0.12 0.75

Statement of Comprehensive Income HHLA Subgroups

in € thousand; subgroup Port Logistics and subgroup Real Estate;
annex to the condensed notes
1– 3 2014
Group
1– 3 2014
Port Logistics
1– 3 2014
Real Estate
1– 3 2014
Consolidation
Profi t after tax 19,237 17,208 1,970 59
Components, which can not be transferred to Income Statement
Actuarial gains/losses - 11,305 - 11,124 - 181
Deferred taxes 3,717 3,658 59
Total - 7,588 - 7,466 - 122
Components, which can be transferred to Income Statement
Cash fl ow hedges 57 57 0
Foreign currency translation differences - 19,398 - 19,398 0
Deferred taxes 8 8 0
Other - 2 - 2 0
Total - 19,335 - 19,335 0
Income and expense recognised directly in equity - 26,924 - 26,801 - 122 0
Total Comprehensive Income - 7,687 - 9,593 1,848 59
of which attributable to non-controlling interests 8,740 8,740 0
of which attributable to shareholders of the parent company - 16,427 - 18,334 1,906

Balance Sheet HHLA Group

in € thousand
Assets 31.03.2015 31.12.2014
Non-current assets
Intangible assets 76,146 77,844
Property, plant and equipment 930,553 938,016
Investment property 197,025 199,196
Associates accounted for using the equity method 12,782 11,717
Financial assets 18,385 17,746
Deferred taxes 72,635 63,558
1,307,526 1,308,077
Current Assets
Inventories 25,438 24,026
Trade receivables 145,061 140,221
Receivables from related parties 80,175 36,202
Other fi nancial receivables 2,728 1,982
Other assets 30,306 23,789
Income tax receivables 3,945 1,568
Cash, cash equivalents and short-term deposits 231,800 252,217
519,453 480,004
1,826,979 1,788,081
Equity and liabilities
Equity
Subscribed capital 72,753 72,753
Subgroup Port Logistics 70,048 70,048
Subgroup Real Estate 2,705 2,705
Capital reserve 141,584 141,584
Subgroup Port Logistics 141,078 141,078
Subgroup Real Estate 506 506
Retained earnings 399,451 386,900
Subgroup Port Logistics 370,979 360,510
Subgroup Real Estate 28,472 26,390
Other comprehensive income - 114,465 - 83,728
Subgroup Port Logistics - 114,233 - 83,823
Subgroup Real Estate - 232 95
Non-controlling interests 36,649 29,232
Subgroup Port Logistics 36,649 29,232
Subgroup Real Estate 0 0
535,972 546,741
Non-current liabilities
Pension provisions 477,842 443,558
Other non-curent provisions 71,514 70,770
Non-current liabilities to related parties 106,571 106,644
Non-current fi nancial liabilities 300,398 282,998
Deferred taxes 14,899 14,904
971,224 918,874
Current liabilities
Other current provisions 10,629 11,540
Trade liabilities 73,888 83,372
Current liabilities to related parties 74,925 73,740
Current fi nancial liabilities 130,028 123,446
Other liabilities 23,852 24,834
Income tax liabilities 6,461 5,534
319,783 322,466
1,826,979 1,788,081

319,783 243,986 90,506 - 14,709 1,826,979 1,672,321 193,732 - 39,074

Balance Sheet HHLA Subgroups

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

Assets 31.03.2015
Group
31.03.2015
Port Logistics
31.03.2015
Real Estate
31.03.2015
Consolidation
Non-current assets
Intangible assets 76,146 76,136 10 0
Property, plant and equipment 930,553 910,368 4,721 15,464
Investment property 197,025 43,418 181,833 - 28,226
Associates accounted for using the equity method 12,782 12,782 0 0
Financial assets 18,385 15,465 2,920 0
Deferred taxes 72,635 84,238 0 - 11,603
1,307,526 1,142,407 189,484 - 24,365
Current Assets
Inventories 25,438 25,354 84 0
Trade receivables 145,061 143,751 1,310 0
Receivables from related parties 80,175 93,989 616 - 14,430
Other fi nancial receivables 2,728 2,705 23 0
Other assets 30,306 28,836 1,470 0
Income tax receivables 3,945 4,224 0 - 279
Cash, cash equivalents and short-term deposits 231,800 231,055 745 0
519,453 529,914 4,248 - 14,709
1,826,979 1,672,321 193,732 - 39,074
Equity and liabilities
Equity
Subscribed capital 72,753 70,048 2,705 0
Capital reserve 141,584 141,078 506 0
Retained earnings 399,451 370,979 38,066 - 9,594
Other comprehensive income - 114,465 - 114,233 - 232 0
Non-controlling interests 36,649 36,649 0 0
535,972 504,521 41,045 - 9,594
Non-current liabilities
Pension provisions 477,842 470,507 7,335 0
Other non-curent provisions 71,514 69,528 1,986 0
Non-current liabilities to related parties 106,571 106,571 0 0
Non-current fi nancial liabilities 300,398 258,951 41,447 0
Deferred taxes 14,899 18,257 11,413 - 14,771
971,224 923,814 62,181 - 14,771
Current liabilities
Other current provisions 10,629 10,339 290 0
Trade liabilities 73,888 70,457 3,431 0
Current liabilities to related parties 74,925 9,252 80,103 - 14,430
Current fi nancial liabilities 130,028 124,395 5,633 0
Other liabilities 23,852 23,102 750 0
Income tax liabilities 6,461 6,441 299 - 279

Balance Sheet HHLA Subgroups

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

Assets 31.12.2014
Group
31.12.2014
Port Logistics
31.12.2014
Real Estate
31.12.2014
Consolidation
Non-current assets
Intangible assets 77,844 77,835 9 0
Property, plant and equipment 938,016 917,673 4,749 15,594
Investment property 199,196 44,785 182,847 - 28,436
Associates accounted for using the equity method 11,717 11,717 0 0
Financial assets 17,746 14,953 2,793 0
Deferred taxes 63,558 74,689 0 - 11,131
1,308,077 1,141,652 190,398 - 23,973
Current Assets
Inventories 24,026 23,972 54 0
Trade receivables 140,221 139,353 868 0
Receivables from related parties 36,202 47,941 35 - 11,774
Other fi nancial receivables 1,982 1,967 15 0
Other assets 23,789 22,635 1,154 0
Income tax receivables 1,568 1,568 155 - 155
Cash, cash equivalents and short-term deposits 252,217 251,496 721 0
480,004 488,932 3,001 - 11,929
1,788,081 1,630,584 193,399 - 35,902
Equity and liabilities
Equity
Subscribed capital 72,753 70,048 2,705 0
Capital reserve 141,584 141,078 506 0
Retained earnings 386,900 360,510 36,044 - 9,654
Other comprehensive income - 83,728 - 83,823 95 0
Non-controlling interests 29,232 29,232 0 0
546,741 517,045 39,350 - 9,654
Non-current liabilities
Pension provisions 443,558 436,656 6,902 0
Other non-curent provisions 70,770 68,800 1,970 0
Non-current liabilities to related parties 106,644 106,644 0 0
Non-current fi nancial liabilities 282,998 240,003 42,995 0
Deferred taxes 14,904 17,869 11,354 - 14,319
918,874 869,972 63,221 - 14,319
Current liabilities
Other current provisions 11,540 11,240 300 0
Trade liabilities 83,372 76,909 6,463 0
Current liabilities to related parties 73,740 8,242 77,272 - 11,774
Current fi nancial liabilities 123,446 117,680 5,767 0
Other liabilities 24,834 23,827 1,007 0
Income tax liabilities 5,534 5,670 19 - 155
322,466 243,567 90,828 - 11,929
1,788,081 1,630,584 193,399 - 35,902

Cash Flow Statement HHLA Group

in € thousand 1– 3 2015 1– 3 2014
1. Cash fl ow from operating activities
Earnings before interest and taxes (EBIT) 42,994 39,344
Depreciation, amortisation, impairment and reversals on non-fi nancial non-current assets 30,140 30,096
Change in provisions 568 - 2,126
Result arising from the disposal of non-current assets - 50 104
Increase in inventories, trade receivables and other assets not attributable to investing or fi nancing activities - 28,122 - 13,030
Increase in trade payables and other liabilities not attributable to investing or fi nancing activities 15,605 19,284
Interest received 205 461
Interest paid - 5,121 - 4,488
Income tax paid - 9,842 - 8,285
Exchange rate and other effects - 7,783 - 8,851
Cash fl ow from operating activities 38,594 52,509
2. Cash fl ow from investing activities
Proceeds from disposal of intangible assets and property, plant and equipment 63 990
Payments for investments in property, plant and equipment and investment property - 37,663 - 37,041
Payments for investments in intangible assets - 1,417 - 2,513
Proceeds from disposals of non-current fi nancial assets 100 0
Proceeds from disposal of interests in consolidated companies and
other business units (including funds sold)
0 0
Payments for acquiring interests in consolidiated companies and
other business units (including funds purchased)
0 0
Payments for short term deposits - 10,000 - 20,000
Cash fl ow from investing activities - 48,917 - 58,564
3. Cash fl ow from fi nancing activities
Redemption of lease liabilities - 1,190 - 2,051
Proceeds from the issuance of (fi nancial) loans 20,244 21,327
Payments for the redemption of (fi nancial) loans - 7,632 - 5,950
Exchange rate effects 3,160 60
Cash fl ow from fi nancing activities 14,582 13,386
4. Financial funds at the end of the period
Change in fi nancial funds (subtotals 1. – 3.) 4,259 7,331
Change in fi nancial funds due to exchange rates - 2,576 3,149
Financial funds at the beginning of the period 185,617 151,069
Financial funds at the end of the period 187,300 161,549

Cash Flow Statement HHLA Subgroup

in € thousand; subgroup Port Logistics and subgroup Real Estate;
annex to the condensed notes
1– 3 2015
Group
1– 3 2015
Port Logistics
1– 3 2015
Real Estate
1– 3 2015
Consolidation
1. Cash fl ow from operating activities
Earnings before interest and taxes (EBIT) 42,994 38,808 4,106 80
Depreciation, amortisation, impairment and reversals
on non-fi nancial non-current assets
30,140 28,977 1,243 - 80
Change in provisions 568 657 - 89
Result arising from the disposal of non-current assets - 50 - 45 - 5
Increase in inventories, trade receivables and other assets
not attributable to investing or fi nancing activities
- 28,122 - 27,074 - 1,504 456
Change in trade payables and other liabilities
not attributable to investing or fi nancing activities
15,605 18,727 - 2,666 - 456
Interest received 205 226 10 - 31
Interest paid - 5,121 - 3,878 - 1,274 31
Income tax paid - 9,842 - 9,589 - 253
Exchange rate and other effects - 7,783 - 7,785 2
Cash fl ow from operating activities 38,594 39,024 - 430 0
2. Cash fl ow from investing activities
Proceeds from disposal of intangible assets and property,
plant and equipment
63 58 5
Payments for investments in property, plant and equipment
and investment property
- 37,663 - 37,462 - 201
Payments for investments in intangible assets - 1,417 - 1,415 - 2
Proceeds from disposals of non-current fi nancial assets 100 100 0
Proceeds from disposal of interests in consolidated companies and
other business units (including funds sold)
0 0 0
Payments for acquiring interests in consolidiated companies
and other business units (including funds purchased)
0 0 0
Payments for short term deposits - 10,000 - 10,000 0
Cash fl ow from investing activities - 48,917 - 48,719 - 198 0
3. Cash fl ow from fi nancing activities
Redemption of lease liabilities - 1,190 - 1,190 0
Proceeds from the issuance of (fi nancial) loans 20,244 20,244 0
Payments for the redemption of (fi nancial) loans - 7,632 - 6,084 - 1,548
Exchange rate effects 3,160 3,160 0
Cash fl ow from fi nancing activities 14,582 16,130 - 1,548 0
4. Financial funds at the end of the period
Change in fi nancial funds (subtotals 1. – 3.) 4,259 6,435 - 2,176 0
Change in fi nancial funds due to exchange rates - 2,576 - 2,576 0
Financial funds at the beginning of the period 185,617 190,896 - 5,279
Financial funds at the end of the period 187,300 194,755 - 7,455 0

Cash Flow Statement HHLA Subgroup

in € thousand; subgroup Port Logistics and subgroup Real Estate;
annex to the condensed notes
1– 3 2014
Group
1– 3 2014
Port Logistics
1– 3 2014
Real Estate
1– 3 2014
Consolidation
1. Cash fl ow from operating activities
Earnings before interest and taxes (EBIT) 39,344 35,478 3,788 78
Depreciation, amortisation, impairment and reversals
on non-fi nancial non-current assets
30,096 29,060 1,114 - 78
Decrease in provisions - 2,126 - 2,044 - 82
Result arising from the disposal of non-current assets 104 108 - 4
Increase in inventories, trade receivables and other assets
not attributable to investing or fi nancing activities
- 13,030 - 13,505 - 561 1,036
Increase in trade payables and other liabilities
not attributable to investing or fi nancing activities
19,284 15,317 5,003 - 1,036
Interest received 461 347 149 - 35
Interest paid - 4,488 - 3,372 - 1,151 35
Income tax paid - 8,285 - 6,931 - 1,354
Exchange rate and other effects - 8,851 - 8,851 0
Cash fl ow from operating activities 52,509 45,607 6,902 0
2. Cash fl ow from investing activities
Proceeds from disposal of intangible assets and property,
plant and equipment
990 766 224
Payments for investments in property, plant and equipment
and investment property
- 37,041 - 30,004 - 7,037
Payments for investments in intangible assets - 2,513 - 2,513 0
Proceeds from disposals of non-current fi nancial assets 0 0 0
Proceeds from disposal of interests in consolidated companies and
other business units (including funds sold)
0 51 0 - 51
Payments for acquiring interests in consolidiated companies
and other business units (including funds purchased)
0 0 - 51 51
Payments for short term deposits - 20,000 - 20,000 0
Cash fl ow from investing activities - 58,564 - 51,700 - 6,864 0
3. Cash fl ow from fi nancing activities
Redemption of lease liabilities - 2,051 - 2,051 0
Proceeds from the issuance of (fi nancial) loans 21,327 21,327 0
Payments for the redemption of (fi nancial) loans - 5,950 - 4,402 - 1,548
Exchange rate effects 60 60 0
Cash fl ow from fi nancing activities 13,386 14,934 - 1,548 0
4. Financial funds at the end of the period
Change in fi nancial funds (subtotals 1. – 3.) 7,331 8,841 - 1,510 0
Change in fi nancial funds due to exchange rates 3,149 3,149 0
Financial funds at the beginning of the period 151,069 139,788 11,281
Financial funds at the end of the period 161,549 151,778 9,771 0

Segment Report HHLA Group

in € thousand; business segments;

annex to the condensed notes Subgroup Port Logistics
Container Intermodal Logistics Holding/Other
1–3 2015 1–3 2014 1 –3 2015 1–3 2014 1–3 2015 1–3 2014 1–3 2015 1–3 2014
Segment revenue
Segment revenue from non-affi liated
third parties
179,444 185,515 91,276 82,439 13,817 13,290 4,281 4,494
Inter-segment revenue 506 544 395 448 1,245 1,701 27,377 26,885
Total segment revenue 179,950 186,060 91,671 82,887 15,062 14,990 31,658 31,379
Earnings
EBITDA 54,081 59,160 18,234 10,992 - 948 - 511 - 3,586 - 5,104
EBITDA margin 30.1 % 31.8 % 19.9 % 13.3 % - 6.3 % - 3.4 % - 11.3 % - 16.3 %
EBIT 32,579 37,268 12,650 5,824 - 1,281 - 792 - 5,207 - 6,922
EBIT margin 18.1 % 20.0 % 13.8 % 7.0 % - 8.5 % - 5.3 % - 16.4 % - 22.1 %
Assets
Segment assets 832,141 900,890 368,545 309,876 23,166 25,075 179,613 162,070
Other segment information
Investments
Property, plant and equipment
and investment property
5,231 15,609 24,024 13,841 85 37 574 373
Intangible assets 1,462 2,320 66 253 0 26 54 82
Depreciation of property, plant and
equipment and investment property
18,826 19,563 5,494 5,086 321 267 1,384 1,565
of which impairment 191
Amortisation of intangible assets 2,676 2,330 89 81 12 15 237 254
of which impairment 32
Earnings from associates accounted
for using the equity method
188 145 0 0 952 849 0 0
Non-cash items 7,462 7,612 1,451 1,034 396 486 2,345 4,634
Container throughput
in thousand TEU
1,747 1,862
Container transport in thousand TEU 333 305
Subgroup Real Estate Total Consolidation and
reconciliation with Group
Group
Real Estate
1–3 2015 1–3 2014 1–3 2015 1–3 2014 1–3 2015 1–3 2014 1–3 2015 1–3 2014
8,114 7,747 296,932 293,485 0 0 296,932 293,485
597 661 30,120 30,238 - 30,120 - 30,238 0 0
8,711 8,407 327,052 323,724
5,349 4,902 73,129 69,440 0 0 73,129 69,440
61.4 % 58.3 %
4,106 3,788 42,847 39,166 147 178 42,994 39,344
47.1 % 45.1 %
192,935 179,747 1,596,400 1,577,658 230,579 172,997 1,826,979 1,750,655
200 7,037 30,114 36,898 0 0 30,114 36,898
2 0 1,584 2,681 - 167 - 167 1,417 2,513
1,242 1,113 27,267 27,594 - 106 - 106 27,161 27,488
191 0 0 0 191
1 1 3,015 2,680 - 41 - 73 2,974 2,607
32 0 0 0 32
0 0 1,140 994 0 0 1,140 994
17 61 11,671 13,828 8 5 11,679 13,833

Statement of Changes in Equity HHLA Group

in € thousand

Parent company
Subscribed capital Capital reserve Retained consolidated
earnings
Reserve for foreign
currency translation
A division S division A division S division
Balance as of 31.12.2013 70,048 2,705 141,078 506 363,000 - 18,828
First consolidation of interests
in related parties
Total comprehensive income 10,478 - 19,397
Balance as of 31.03.2014 70,048 2,705 141,078 506 373,478 - 38,225
Balance as of 31.12.2014 70,048 2,705 141,078 506 386,900 - 50,220
Total comprehensive income 12,551 - 9,787
Balance as of 31.03.2015 70,048 2,705 141,078 506 399,451 - 60,007
Parent
company
interests
Non-controlling
interests
Total
consolidated
equity
Other comprehensive income
Cash fl ow
hedges
Actuarial
gains/losses
Deferred taxes on changes
recognised directly in equity
Other
- 500 12,783 - 3,967 11,576 578,402 21,700 600,103
0 - 38 - 38
57 - 11,280 3,716 - 2 - 16,427 8,740 - 7,687
- 443 1,503 - 250 11,574 561,975 30,402 592,377
- 201 - 66,196 21,203 11,686 517,509 29,232 546,741
54 - 31,170 9,985 180 - 18,186 7,417 - 10,769
- 147 - 97,366 31,189 11,866 499,323 36,649 535,972

Interim Financial Statements 28

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

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

in € thousand; annex to the condensed notes

Parent company
Subscribed
capital
Capital
reserve
Retained
consolidated
earnings
Reserve for
foreign currency
translation
Balance as of 31.12.2013 70,048 141,078 339,888 - 18,828
First consolidation of interests
in related parties
Total comprehensive income subgroup 8,449 - 19,397
Balance as of 31.03.2014 70,048 141,078 348,337 - 38,225
Balance as of 31.12.2014 70,048 141,078 360,510 - 50,220
Total comprehensive income subgroup 10,470 - 9,787
Balance as of 31.03.2015 70,048 141,078 370,979 - 60,007

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

in € thousand; annex to the condensed notes

Balance as of 31.12.2013
Total comprehensive income subgroup
Balance as of 31.03.2014
Plus income statement consolidation effect
Less balance sheet consolidation effect
Total effects of consolidation
Balance as of 31.03.2014
Balance as of 31.12.2014
Total comprehensive income subgroup
Balance as of 31.03.2015
Plus income statement consolidation effect
Less balance sheet consolidation effect
Total effects of consolidation
Balance as of 31.03.2015

Interim Financial Statements 29

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

Total subgroup
consolidated equity
Non-controlling
interests
Parent com
pany interests
Other comprehensive income
Other Deferred taxes
on changes
recognised directly
in equity
Actuarial
gains/losses
Cash fl ow
hedges
572,891 21,700 551,191 11,576 - 3,542 11,471 - 500
- 38 - 38 0
- 9,593 8,740 - 18,333 - 2 3,658 - 11,098 57
563,259 30,402 532,857 11,574 116 373 - 443
517,045 29,232 487,813 11,686 21,250 - 66,338 - 201
- 12,523 7,417 - 19,940 180 9,829 - 30,686 54
504,521 36,649 467,872 11,866 31,078 - 97,023 - 147
Other comprehensive income Total subgroup
consolidated equity
Subscribed
capital
Capital
reserve
Retained consolidated
earnings
Actuarial
gains/losses
Deferred taxes on
changes recognised
directly in equity
2,705 506 33,005 1,312 - 424 37,103
1,970 - 181 59 1,847
2,705 506 34,975 1,131 - 365 38,951
59 59
- 9,892 - 9,892
- 9,832 - 9,832
2,705 506 25,142 1,131 - 365 29,119
2,705 506 36,044 140 - 45 39,350
2,021 - 484 156 1,694
2,705 506 38,066 - 343 111 41,045
60 60
- 9,654 - 9,654
- 9,594 - 9,594
2,705 506 28,472 - 343 111 31,451

Notes to the Condensed Interim Consolidated Financial Statements Basic Information on the Group Signifi cant Events in the Reporting Period Consolidation, Accounting and Valuation Principles Purchase and Sale of Shares in Subsidiaries 30

Notes to the Condensed Interim Consolidated Financial Statements

1. Basic Information on the Group

The Group's parent company is Hamburger Hafen und Logistik Aktiengesellschaft, Bei St. Annen 1, 20457 Hamburg (HHLA), registered in the Hamburg Commercial Register under HRB 1902. The holding company above the HHLA Group is HGV Hamburger Gesellschaft für Vermögens- und Beteiligungsmanagement mbH, Hamburg.

The Condensed Interim Consolidated Financial Statements, and therefore the information in the Notes, are presented in euros (€). For the sake of clarity, the individual items are shown in thousands of euros (€ thousand) unless otherwise indicated. Due to the use of rounding procedures, it is possible that some fi gures do not add up to the stated sums.

2. Signifi cant Events in the Reporting Period

The political crisis in Ukraine continued in the fi rst quarter of 2015. Due to the crisis, the Ukrainian currency – the hryvnya – depreciated by over 24 % against the euro between 31 December 2014 and the end of March 2015. This resulted in exchange rate effects which had a negative impact on the HHLA Group's net assets, earnings and fi nancial position. Equity fell by € 9.7 million, with no effect on net income, and net interest income declined by € 7.7 million.

3. Consolidation, Accounting and Valuation Principles

3.1 Basis for Preparation of the Financial Statements

The Condensed Interim Consolidated Financial Statements for the period from 1 January to 31 March 2015 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 2014.

3.2 Principal Accounting and Valuation Methods

The accounting and valuation methods used for the preparation of the Condensed Interim Consolidated Financial Statements correspond to the methods used in the preparation of the Consolidated Financial Statements as of 31 December 2014.

The company started applying the following new standards on 1 January 2015:

  • I IFRIC 21 Levies
  • I Amendment to IAS 19: Defi ned Benefi t Plans: Employee Contributions
  • I Improvements to IFRS 2010 2012 Cycle
  • I Improvements to IFRS 2011 2013 Cycle

Applying these standards had no significant impact on the Condensed Interim Consolidated Financial Statements.

3.3 Changes in the Group of Consolidated Companies

There were no changes to the HHLA group of consolidated companies in the fi rst quarter of 2015.

4. Purchase and Sale of Shares in Subsidiaries

In the fi rst quarter of 2015, Metrans (Danubia) Kft. Gyor, Hungary, which is not included in the group of consolidated companies, acquired 100 % of the shares in both Univer Trans Kft, Budapest, Hungary, and Loacker Kontener Kft., Budapest, Hungary. As matters stand, the company Loacker Kontener Kft. should be included in the HHLA's group of consolidated companies from the second quarter of 2015.

There were no other acquisitions or disposals of shares in subsidiaries.

5. Earnings per Share

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

1– 3 2015 1– 3 2014
Net profi t attributable to shareholders of
the parent company in € thousand
12,551 10,478
Number of common shares in circulation 72,753,334 72,753,334
Basic earnings per share (Group) in € 0.17 0.14

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

1– 3 2015 1– 3 2014
Net profi t attributable to shareholders of
the parent company in € thousand
10,470 8,449
Number of common shares in circulation 70,048,834 70,048,834
Basic earnings per share
(Subgroup Port Logistics) in €
0.15 0.12

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

1– 3 2015 1– 3 2014
Net profi t attributable to shareholders of
the parent company in € thousand
2,081 2,029
Number of common shares in circulation 2,704,500 2,704,500
Basic earnings per share
(Subgroup Real Estate) in €
0.77 0.75

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

6. Dividends Proposed

HHLA's Executive Board and Supervisory Board have proposed to distribute a dividend of € 0.52 per share to shareholders of the Port Logistics subgroup and of € 1.50 per share to shareholders of the Real Estate subgroup in 2015. On the basis of shares in circulation as of 31 March 2015, this will result in a total payout of € 36,425 thousand for the Port Logistics subgroup and of € 4,057 thousand for the Real Estate subgroup. The Annual General Meeting will make a decision about the dividend payout on 11 June 2015.

7. Segment Reporting

The segment report is presented as an annex to the Notes to the Condensed Interim Consolidated Financial Statements.

The HHLA Group's segment report is prepared in accordance with the provisions of IFRS 8 Operating Segments. IFRS 8 requires reporting on the basis of the internal reports to the Executive Board for the purpose of controlling the company's activities.

The segment performance indicator used is the internationally customary key fi gure EBIT (earnings before interest and taxes), which serves to measure the performance of each segment and therefore aids the internal control function. For further information, please refer to the Consolidated Financial Statements as of 31 December 2014.

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 2014.

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

The HHLA Group still operates in four business units: the Container, Intermodal, Logistics and Real Estate segments.

The Holding/Other division used for segment reporting does not represent an independent business segment as defi ned by the IFRS standards. However, it has been allocated to the segments within the Port Logistics subgroup in order to provide a complete and clear picture.

The reconciliation of segment assets with Group assets incorporates not only items for which consolidation is mandatory, but also claims arising from current and deferred income taxes, cash and cash equivalents, short-term deposits and fi nancial 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 fi nancial result.

Notes to the Condensed Interim Consolidated Financial Statements Segment Reporting Equity Pension Provisions Investments 32

Reconciliation of the Segment Variable EBIT

to Earnings before Tax (EBT)
in € thousand 1– 3 2015 1– 3 2014
Segment earnings (EBIT) 42,847 39,166
Elimination of business relations between
the segments and subgroups
147 178
Group earnings (EBIT) 42,994 39,344
Earnings from associates accounted for
using the equity method
1,140 994
Net interest income - 14,843 - 12,329
Earnings before tax (EBT) 29,291 28,009

8. Equity

The breakdown and development of HHLA's equity for the period from 1 January to 31 March of the years 2015 and 2014 are presented in the statement of changes in equity.

9. Pension Provisions

The calculation of pension provisions as of 31 March 2015 was based on an interest rate of 1.25 % (31 December 2014: 1.75 %; 31 March 2014: 3.25 %). Actuarial gains/losses changed as follows. These are recognised in equity without effect on profi t and loss.

in € thousand 2015 2014
Cumulative actuarial gains (+)/losses (-)
as of 01.01.
- 65,731 12,737
Change during the fi nancial year due to
a change in interest rate
- 31,258 - 11,305
Cumulative actuarial gains (+)/losses (-)
as of 31.03.
- 96,989 1,432

10. Investments

As of 31 March 2015, total capital expenditure throughout the HHLA Group amounted to € 31.5 million.

The largest investments up to the end of the fi rst quarter of 2015 were made in the Intermodal and Container segments. HHLA invested in locomotives and handling equipment at sites in the Czech Republic and Germany.

Of the most signifi cant investment commitments as of 31 March 2015, € 10.6 million were accounted for by the Container segment and € 4.8 million by the Intermodal segment.

11. Financial Instruments

Carrying Amounts and Fair Values

The table below shows the carrying amounts and fair value of fi nancial assets and fi nancial liabilities, as well as their level in the fair value hierarchy.

Financial Assets as of 31.03.2015

in € thousand Carrying amount Fair value
Loans and
receivables
Available for
sale
Balance
sheet
value
Level 1 Level 2 Level 3 Total
Financial assets at fair value
Financial assets (securities) 4,052 4,052 4,052 4,052
0 4,052 4,052
Financial assets not measured at fair value
Financial assets 9,879 4,454 14,333
Trade receivables 145,061 145,061
Receivables from related parties 80,175 80,175
Other fi nancial receivables 2,728 2,728
Cash, cash equivalents and short-term deposits 231,800 231,800
469,643 4,454 474,097

Financial Liabilities as of 31.03.2015

in € thousand Carrying amount Fair value
Held for
trading
Fair value
hedging
instruments
Other
fi nancial
liabilities
Balance
sheet
value
Level 1 Level 2 Level 3 Total
Financial liabilities measured at fair value
Financial liabilities (interest rate swaps used for
hedging transactions)
148 301 449 449 449
148 301 0 449
Financial liabilities not measured at fair value
Financial liabilities (liabilities from bank loans) 300,169 300,169 307,229 307,229
Financial liabilities (fi nance lease liabilities) 42,224 42,224 42,224 42,224
Financial liabilities (other) 87,584 87,584
Trade liabilities 73,888 73,888
Liabilities to related parties (fi nance lease
liabilities)
106,815 106,815 106,815 106,815
Liabilities to related parties (other) 74,681 74,681
0 0 685,361 685,361

Financial Assets as of 31.03.2014

in € thousand Carrying amount Fair value
Loans and
receivables
Available
for sale
Balance
sheet
value
Level 1 Level 2 Level 3 Total
Financial assets at fair value
Financial assets (securities) 3,872 3,872 3,872 3,872
0 3,872 3,872
Financial assets not measured at fair value
Financial assets 3,799 4,460 8,259
Trade receivables 149,420 149,420
Receivables from related parties 64,160 64,160
Other fi nancial receivables 3,476 3,476
Cash, cash equivalents and short-term deposits 199,969 199,969
420,824 4,460 425,284

Financial Liabilities as of 31.03.2014

in € thousand Carrying amount Fair value
Held for
trading
Fair value
hedging
instruments
Other
fi nancial
liabilities
Balance
sheet
value
Level 1 Level 2 Level 3 Total
Financial liabilities measured at fair value
Financial liabilities (interest rate swaps used
for hedging transactions)
354 528 882 882 882
354 528 0 882
Financial liabilities not measured at fair value
Financial liabilities (liabilities from bank loans) 304,397 304,397 307,929 307,929
Financial liabilities (fi nance lease liabilities 1
)
9,322 9,322 9,322 9,322
Financial liabilities (other) 94,524 94,524
Trade liabilities 77,785 77,785
Liabilities to related parties (fi nance lease
liabilities)
105,020 105,020 105,020 105,020
Liabilities to related parties (other) 74,358 74,358
0 0 665,406 665,406

Due to changes in calculation parameters, the reported fair value has changed compared to the previous year interim report.

In the fi rst quarter of 2015, gains of € 45 thousand (previous year: € 66 thousand) were recognised in the income statement on fi nancial assets and/or liabilities held at fair value through profi t and loss. These primarily relate to interest rate hedges with no effective hedging relationship as per IAS 39.

In the reporting year, changes of € 63 thousand (previous year: € 57 thousand) in the fair value of fi nancial instruments designated as hedging instruments (interest rate swaps) were recognised in equity.

The interest rate swaps disclosed covered a total amount of € 11,189 thousand (previous year: € 15,013 thousand). Of these, fi nancial instruments covering an amount of € 6,842 thousand (previous year: € 7,920 thousand) with a market value of € - 301 thousand (previous year: € - 441 thousand) were held as part of cash fl ow hedging relationships to hedge future cash fl ows from interest-bearing liabilities as of the balance sheet date. The hedged cash fl ows are expected to occur within two years. The amount covered by interest rate swaps is restated in line with the anticipated repayment of the loans over the term of the derivative. The fi xed interest rate for the fi nancial liabilities (interest rate swaps) is 3.82 % to 4.33 %. The remaining term of the derivatives is up to two years.

There are no material differences between the carrying amounts and fair values of the fi nancial instruments reported under non-current fi nancial liabilities. The discount rates used for liabilities to related parties (particularly the fi nance lease liabilities included in this item) are between 4.21 % and 5.56 %.

The valuation methods and key unobservable input factors for calculating fair value are described in the Notes to the Consolidated Financial Statements as of 31 December 2014.

12. Events after the Balance Sheet Date

There were no notable events after the balance sheet date 31 March 2015.

Hamburg, 13 May 2015

Hamburger Hafen und Logistik Aktiengesellschaft

The Executive Board

Klaus-Dieter Peters Dr. Stefan Behn

Heinz Brandt Dr. Roland Lappin

Responsibility Statement

To the best of our knowledge, and in accordance with the applicable accounting principles for interim fi nancial reporting, the Interim Consolidated Financial Statements give a true and fair view of the assets, liabilities, fi nancial position and profi t or loss of the Group, and the Interim Management Report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the material opportunities and risks associated with the expected development of the Group for the remainder of the fi nancial year.

Hamburg, 13 May 2015

Hamburger Hafen und Logistik Aktiengesellschaft

The Executive Board

Klaus-Dieter Peters Dr. Stefan Behn

Heinz Brandt Dr. Roland Lappin

Financial Calendar

Imprint

11 June 2015 Annual General Meeting Congress Center Hamburg (CCH)

13 August 2015 Interim Report January–June 2015 Analyst Conference Call

12 November 2015 Interim Report January–September 2015 Analyst Conference Call

Published by

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

Investor Relations

Phone: +49 40 3088-3100 Fax: +49 40 3088-55-3100 [email protected]

Corporate Communications

Phone: +49 40 3088-3520 Fax: +49 40 3088-3355 [email protected]

Design

Kirchhoff Consult AG

Note

For specialist terminology and fi nancial terms see the Annual Report 2014, page 166 et seq.

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

HAMBURGER HAFEN UND LOGISTIK AKTIENGESELLSCHAFT Bei St. Annen 1, 20457 Hamburg, Germany, Phone: +49 40 3088-0, Fax: +49 40 3088-3355, www.hhla.de, [email protected]

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