Hamburger Hafen und Logistik AG

Hamburg

Quartalsmitteilung Januar bis September 2020

INTERIM STATEMENT 2020
JANUARY TO SEPTEMBER

Key figures

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HHLA Group
in € million 1-9 | 2020 1-9 | 2019 Change
Revenue and earnings
Revenue 959.9 1,044.6 - 8.1 %
EBITDA 231.5 295.1 - 21.6 %
EBITDA margin in % 24.1 28.3 - 4.2 pp
EBIT 107.1 175.4 - 38.9 %
EBIT margin in % 11.2 16.8 - 5.6 pp
Profit after tax 57.2 111.5 - 48.7 %
Profit after tax and minority interests 37.2 83.8 - 55.7 %
Cash flow statement and investments
Cash flow from operating activities 203.5 260.1 - 21.8 %
Investments 136.0 156.8 - 13.3 %
Performance data
Container throughput in thousand TEU 5,086 5,730 - 11.2 %
Container transport in thousand TEU 1,129 1,184 - 4.6 %
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in € million 30.09.2020 31.12.2019 Change
Balance sheet
Balance sheet total 2,572.7 2,610.0 - 1.4 %
Equity 579.1 578.9 0.0 %
Equity ratio in % 22.5 22.2 0.3 pp
Employees
Number of employees 6,283 6,296 - 0.2 %
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Port Logistics subgroup 1,2 Real Estate subgroup 1,3
in € million 1-9 | 2020 1-9 | 2019 Change 1-9 | 2020 1-9 | 2019 Change
Revenue 937.4 1,020.2 - 8.1 % 28.2 29.9 - 5.7 %
EBITDA 215.9 277.1 - 22.1 % 15.6 18.0 - 13.3 %
EBITDA margin in % 23.0 27.2 - 4.2 pp 55.2 60.1 - 4.9 pp
EBIT 96.6 162.7 - 40.7 % 10.3 12.5 - 17.3 %
EBIT margin in % 10.3 15.9 - 5.6 pp 36.5 41.6 - 5.1 pp
Profit after tax and minority interests 31.3 76.6 - 59.2 % 5.9 7.3 - 18.5 %
Earnings per share in € 4 0.45 1.09 - 59.2 % 2.19 2.69 - 18.5 %

1 Before consolidation between subgroups
2 Listed class A shares
3 Non-listed class S shares
4 Basic and diluted

Letter to the shareholders

Ladies and gentlemen,

What most of us probably want more than anything right now is clarity. Clarity about how long the coronavirus pandemic will continue to restrict our daily lives. However, the virus is not the only uncertainty we have to deal with at the moment. Which direction will the US take after the presidential elections? On which basis will the EU and the UK continue their cooperation in future? And who will govern Germany when the Merkel era comes to an end next year? The macroeconomic environment for our business remains highly volatile, even beyond the pandemic. But this does not change our special responsibility in any way: HHLA moves what Germany needs. We consistently and single-mindedly fulfil this mission - 24 hours a day, seven days a week. This is something that consumers and companies can rely on, even in challenging times like these. We supply Germany and Europe!

HHLA moves what Germany needs. We consistently and single-mindedly fulfil this mission - 24 hours a day, seven days a week. This is something that consumers and companies can rely on, even in challenging times like these.

The strong decline in container throughput and transport in the first half-year was slightly less pronounced in the third quarter. Nevertheless, the key performance indicators (KPIs) revenue, EBITDA and EBIT for the first nine months were all significantly down on the previous year. We continue to assume that 2020 will fail to match last year's exceptional result. The shortfall resulting from the lockdown in early summer can no longer be fully offset, even though a key driver of our business - the Chinese economy - is growing again.

Dear shareholders, we informed you in detail about HHLA's progress at our virtual Annual General Meeting in August. Despite the unusual circumstances, we welcomed this opportunity to share insights with you. I would like to take this opportunity to thank all those who asked questions. We regard this as a strong indicator of your interest in our work. The fact that the majority of shareholders accepted our offer of a scrip dividend is a further sign of the trust you place in us.

Even though much remains uncertain, this does not prevent us from continuing to breathe life into our strategic areas of activity. This means strengthening our core business fields while searching for new, profitable growth initiatives and digital solutions.

For example, HHLA is set to become a majority shareholder of "Piattaforma Logistica Trieste" (PLT), a multi-function terminal in the Italian seaport of Trieste. The terminal gives us the opportunity to actively participate in and help shape new and changing cargo flows. Our rail subsidiary Metrans is also responding to the growing significance of the Adriatic region for logistics supply chains with its construction of two rail terminals in Hungary. Metrans has already invested in two facilities in Germany this year - bringing the number of terminals in its inter-modal network to 17. We continue to invest while keeping a close eye on our cost structures at all times. This is a particular challenge for our container terminals in the Port of Hamburg. Adverse market conditions and fierce competition over the past few years have led our customers to make far-reaching changes. Expansion measures at competing European ports have also resulted in considerable free capacity, which in some cases is being offered to customers at significantly lower rates. With our ambitious efficiency programme, we aim to drastically reduce costs over the next five years in order to maintain the competitiveness of our services.

I can therefore assure you that our course remains clear and we will continue to be guided by efficiency, growth and sustainability.

Yours,

Angela Titzrath
Chairwoman of the Executive Board

Business development

Course of business and economic situation

Key figures

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in € million 1-9 | 2020 1-9 | 2019 Change
Revenue 959.9 1,044.6 - 8.1 %
EBITDA 231.5 295.1 - 21.6 %
EBITDA margin in % 24.1 28.3 - 4.2 pp
EBIT 107.1 175.4 - 38.9 %
EBIT margin in % 11.2 16.8 - 5.6 pp
Profit after tax and minority
interests 37.2 83.8 - 55.7 %
ROCE in % 6.9 11.5 - 4.6 pp

Significant events and transactions

The coronavirus pandemic had a significant impact on HHLA's earnings position in the first nine months of the financial year. Having said this, it has not yet resulted in any material effects on the recognition or measurement of the Group's assets and liabilities as of 30 September 2020.

Within the Port Logistics and Real Estate subgroups, both the key economic indicators for the first nine months of 2020 and HHLA's actual economic performance were largely in line with the performance forecast in the 2019 Combined Management Report. There were no other particular events or transactions during the reporting period, either in HHLA's operating environment or within the Group, that had a significant impact on its results of operations, net assets and financial position. Results of operations, net assets and financial position

Earnings position

The development of HHLA's performance data in the first nine months of 2020 was significantly affected by the global coronavirus pandemic. Container throughput decreased strongly by 11.2 % year-on-year to 5,086 thousand TEU (previous year: 5,730 thousand TEU). This decline, which primarily affected the Hamburg container terminals, began in the middle of the first quarter and gathered considerable pace during the second quarter before dropping off slightly in the third quarter. All in all, throughput at the international terminals in the first nine months was moderately below the prior-year level. In the reporting period, container transport decreased moderately by 4.6 % to 1,129 thousand TEU (previous year: 1,184 thousand TEU). The drop in road transport was significant, whereas for rail transport it was more moderate.

Revenue for the HHLA Group decreased by 8.1 % to € 959.9 million during the reporting period (previous year: € 1,044.6 million). This drop was primarily due to changes in volume. Other factors which negatively impacted revenue included the lower proportion of longer transport distances in the Intermodal segment. Factors increasing revenue included the advantageous modal split and a temporary increase in storage fees in the Container segment.

Other operating income amounted to € 30.6 million (previous year: € 27.9 million). One liability from a contingent consideration agreed as part of the acquisition of Bionic Production GmbH was derecognised in profit and loss as a result of a new agreement with the seller. The amount had a significant effect on the increase in other operating income.

Despite an impairment charge on the goodwill of Bionic Production GmbH and increased service and maintenance costs in the Container segment, operating expenses were reduced by 1.8 % to € 886.8 million (previous year: € 903.3 million). In addition to the cost of materials declining in line with revenue, this was mainly due to much lower staffing requirements.

There was a strong decrease in the operating result (EBIT) of 38.9 % to € 107.1 million during the reporting period (previous year: € 175.4 million). The EBIT margin amounted to 11.2 % (previous year: 16.8 %). In the Port Logistics subgroup, EBIT fell by 40.7 % to € 96.6 million (previous year: € 162.7 million). In the Real Estate subgroup, EBIT decreased by 17.3 % to € 10.3 million (previous year: € 12.5 million).

Net expenses from the financial result increased by € 0.5 million, or 1.9 %, to € 25.6 million (previous year: € 25.1 million).

Profit after tax and minority interests was significantly lower than in the previous year at € 37.2 million (previous year: € 83.8 million). Earnings per share amounted to € 0.51 (previous year: € 1.15). The listed Port Logistics subgroup achieved earnings per share of € 0.45 (previous year: € 1.09). Earnings per share of the non-listed Real Estate subgroup were down on the prior-year figure at € 2.19 (previous year: € 2.69). Return on capital employed (ROCE) amounted to 6.9 % (previous year: 11.5 %).

Financial position

Balance sheet analysis

Compared with year-end 2019, the HHLA Group's balance sheet total declined by a total of € 37.3 million to € 2,572.7 million as of 30 September 2020 (31 December 2019: € 2,610.0 million).

Balance sheet structure

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in € million 30.09.2020 31.12.2019
Assets
Non-current assets 2,117.0 2,124.3
Current assets 455.7 485.7
2,572.7 2,610.0
Equity and liabilities
Equity 579.1 578.9
Non-current liabilities 1,712.9 1,749.8
Current liabilities 280.7 281.3
2,572.7 2,610.0

On the assets side of the balance sheet, non-current assets decreased by € 7.3 million to € 2,117.0 million, primarily due to the decrease in property, plant and equipment (31 December 2019: € 2,124.3 million). Current assets decreased by € 30.0 million to € 455.7 million (31 December 2019: € 485.7 million). This was largely due to the decline in cash, cash equivalents and short-term deposits of€ 30.6 million.

On the liabilities side, equity rose slightly by € 0.2 million to € 579.1 million compared to the year-end figure for 2019 (31 December 2019: € 578.9 million). Major factors with an increasing effect were the contribution in kind as part of a capital increase from scrip dividend rights in subscribed capital and capital reserves amounting to € 25.2 million and the positive result for the reporting period of € 57.2 million. Meanwhile, the distribution of dividends, the rise in pension provisions brought about by interest rates and the difference from foreign currency translation all had an opposing effect. The equity ratio increased slightly to 22.5 % (31 December 2019: 22.2 %).

Non-current liabilities fell by € 36.9 million to € 1,712.9 million (31 December 2019: € 1,749.8 million). This decrease is primarily due to the decline in non-current financial liabilities of € 43.6 million and the decrease in liabilities to related parties. The increase in pension provisions had an opposing effect. Current liabilities decreased slightly by € 0.6 million to € 280.7 million (31 December 2019: € 281.3 million), primarily due to the decrease in current financial liabilities. The increase in trade liabilities and other liabilities had an opposing effect.

Investment analysis

Capital expenditure in the reporting period totalled € 136.0 million and was thus below the prior-year figure of € 156.8 million. The acquisition by the METRANS Group of locomotives, container wagons and maintenance equipment, as well as the procurement of container gantry cranes, storage cranes and large-scale equipment for horizontal transport at the Hamburg HHLA container terminals, and the development of the Hamburg Speicherstadt historical warehouse district accounted for a major share of capital expenditure in the first nine months of 2020.

Liquidity analysis

Cash flow from operating activities declined by € 56.6 million to € 203.5 million as of 30 September 2020 (previous year: € 260.1 million). This was mainly due to the decrease in EBIT, a rise in trade receivables and other assets, as well as a smaller increase in trade liabilities and other liabilities than in the previous year. Lower tax payments as compared to the same period last year had an opposing effect.

Investing activities led to a net cash outflow of € 92.0 million (previous year: € 117.5 million). This was largely due to proceeds from short-term deposits (previous year: payments). There was an opposing effect from the year-on-year increase in payments for investments in property, plant and equipment.

Cash flow from financing activities of € 123.7 million was € 22.2 million below the prior-year figure of€ 145.9 million. This was primarily due to lower payments for cash dividends than in the previous year.

Financial funds totalled € 193.5 million as of 30 September 2020 (30 September 2019: € 252.7 million). Including all shortterm deposits, the Group's available liquidity at the end of the third quarter of 2020 amounted to € 213.5 million (30 September 2019: € 292.7 million).

Liquidity analysis

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in € million 1-9 | 2020 1-9 | 2019
Financial funds as of 01.01. 208.0 254.0
Cash flow from operating activities 203.5 260.1
Cash flow from investing activities - 92.0 - 117.5
Free cash flow 111.5 142.6
Cash flow from financing activities - 123.7 - 145.9
Change in financial funds - 14.5 - 1.4
Financial funds as of 30.09. 193.5 252.7
Short-term deposits 20.0 40.0
Available liquidity 213.5 292.7

Segment performance

Container segment

Key figures

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in € million 1-9 | 2020 1-9 | 2019 Change
Revenue 548.4 605.5 - 9.4 %
EBITDA 139.1 186.1 - 25.3 %
EBITDA margin in % 25.4 30.7 - 5.3 pp
EBIT 68.7 112.6 - 39.0 %
EBIT margin in % 12.5 18.6 - 6.1 pp
Container throughput in thousand TEU 5,086 5,730 - 11.2 %

During the first nine months of 2020, the throughput volume at HHLA's container terminals decreased by 11.2 % to 5,086 thousand standard containers (TEU) (previous year: 5,730 thousand TEU).

At 4,654 thousand TEU, throughput volume at the three Hamburg container terminals, was down 11.8 % on the same period last year (previous year: 5,275 thousand TEU). This was mainly due to the loss of a Far East service and blank sailings as a result of the coronavirus pandemic. Feeder traffic with the Baltic region also decreased and could not be offset by growth in the German and British shipping regions. There was a corresponding decline in the proportion of seaborne handling by feeders of 2.6 percentage points to 20.1 % (previous year: 22.7 %).

The international container terminals in Odessa and Tallinn recorded a moderate decrease in throughput volume of 5.0 % to 432 thousand TEU (previous year: 454 thousand TEU). The decreases in volume due to the coronavirus pandemic could not be offset by the additional traffic in the first quarter.

Revenue decreased year-on-year by 9.4 % to € 548.4 million in the first three quarters of 2020 (previous year: € 605.5 million). This was primarily due to the decreases in volume caused by the coronavirus pandemic. Average revenue per container handled at the quayside rose by 2.0 % year-on-year. This resulted from an advantageous modal split with a high proportion of hinterland volumes and a temporary increase in storage fees due to longer dwell times brought about by weather-related delays and blank sailings caused by the pandemic.

EBIT costs decreased by 2.7 % year-on-year during the reporting period. Lower material and personnel expenses, partly caused by the reductions in volume, were offset by increased service and maintenance costs. The personnel savings resulted from reduced staffing requirements due to lower volumes.

As a result of falling volumes, the operating result (EBIT) declined by € 43.9 million, or 39.0 %, year-on-year to € 68.7 million (previous year: € 112.6 million). The EBIT margin decreased by 6.1 percentage points to 12.5 %.

HHLA continued to pursue its long-term modernisation and expansion programme in the first three quarters of 2020 in order to further boost capacity and productivity at its terminals. In the first nine months of 2020, HHLA Container Terminal Burchardkai (CTB) put three new large container gantry cranes into operation. The expansion of the block storage system also progressed in line with schedule. The other HHLA terminals in Germany and abroad made similar investments in site expansion and new equipment in order to push ahead with the automation of their handling processes. Moreover, HHLA made further progress with the implementation of its sustainability strategy. For example, the Container Terminal Altenwerder (CTA) stepped up its switch to battery-powered vehicles for operations at the terminal.

Intermodal segment

Key figures

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in € million 1-9 | 2020 1-9 | 2019 Change
Revenue 348.7 367.9 - 5.2 %
EBITDA 94.8 105.8 - 10.4 %
EBITDA margin in % 27.2 28.8 - 1.6 pp
EBIT 62.4 76.1 - 18.0 %
EBIT margin in % 17.9 20.7 - 2.8 pp
Container transport
in thousand TEU 1,129 1,184 - 4.6 %

In the highly competitive market for container traffic in the hinterland of major seaports, HHLA's transport companies recorded a moderate decrease in volumes during the first nine months of 2020. Container transport decreased by 4.6 % to 1,129 thousand standard containers (TEU) (previous year: 1,184 thousand TEU). The decrease in road transport was much more marked than that of rail transport. Rail transport declined year-on-year by 3.7 % to 895 thousand TEU (previous year: 930 thousand TEU). The significant - and for certain routes dramatic - fall in maritime traffic from the North German seaports was partially offset by strong growth in continental traffic. The strong recovery in transport volumes in the third quarter helped minimise the impact of decreases across all routes in the first half of the year. In the third quarter, road transport also showed signs of a strong recovery as compared with the previous quarter. However, due to further weak growth in the Hamburg region and a persistently challenging market environment, road transport volumes in the first nine months decreased by 8.0 % year-on-year to 234 thousand TEU (previous year: 254 thousand TEU).

With a significant 5.2 % year-on-year decline to € 348.7 million (previous year: € 367.9 million), revenue performed somewhat worse than transport volume. Despite a slight increase in the rail share of HHLA's total intermodal transportation from 78.5 % to 79.3 %, average revenue per TEU decreased as a result of the disproportionately strong decrease in freight flows with longer transport distances.

The operating result (EBIT) fell by 18.0 % to € 62.4 million in the reporting period (previous year: € 76.1 million). In addition to falling volumes and revenue, this marked decrease was mainly due to increased fluctuations in import and export cargo with a resulting fall in capacity utilisation of rail systems.

Logistics segment

Key figures

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in € million 1-9 | 2020 1-9 | 2019 Change
Revenue 37.9 43.9 - 13.5 %
EBITDA 5.4 6.0 - 9.2 %
EBITDA margin in % 14.4 13.7 0.7 pp
EBIT - 3.6 1.7 neg.
EBIT margin in % - 9.5 3.9 neg.
At-equity earnings 1.7 3.1 - 45.8 %

The consolidated companies reported revenue of € 37.9 million in the reporting period, down 13.5 % on the prioryear figure (previous year: € 43.9 million). The vehicle logistics division recorded a strong decline in revenue as a result of falling volumes, while consultancy revenue was also down considerably on the previous year. Additive manufacturing technologies were first included in the group of consolidated companies in the same quarter last year.

The operating result (EBIT) for the first nine months of the year includes the expected start-up losses in new growth areas. Vehicle logistics and consultancy were also well below the corresponding prior-year figures. Following a positive result of € 1.7 million in the previous year, the Logistics segment posted a loss of€ 3.6 million in the reporting period.

Revenues of those companies included in at-equity earnings decreased sharply in the reporting period. At-equity earnings of € 1.7 million were still positive in the first nine months of the year but well below the prior-year level (previous year: € 3.1 million).

Real Estate segment

Key figures

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in € million 1-9 | 2020 1-9 | 2019 Change
Revenue 28.2 29.9 - 5.7 %
EBITDA 15.6 18.0 - 13.3 %
EBITDA margin in % 55.2 60.1 - 4.9 pp
EBIT 10.3 12.5 - 17.3 %
EBIT margin in % 36.5 41.6 - 5.1 pp

Despite a slight upswing in the market during the third quarter, Hamburg's office rental market recorded a decline in revenue as compared with the same period last year. The main reason is the prevailing uncertainty with regard to the future course of the Covid-19 crisis. According to Grossmann & Berger's latest market report, 250,000 m² of office space was let - approximately 43 % less than the prior-year figure of 435,000 m². The market trend is expected to remain negative for the rest of the year.

Contrary to market expectations, the vacancy rate in Hamburg remained largely unchanged from the previous quarter at 3.3 %. The prior-year figure of 2.9 % was thus exceeded by 0.4 percentage points. A further increase in vacancies is anticipated in the months ahead as a result of the rising amount of space available.

By contrast, HHLA's properties in the Speicherstadt historical warehouse district and the fish market area remained largely unaffected by this negative market trend with almost full occupancy in the third quarter.

Despite the high occupancy rate, however, revenue of € 28.2 million at 30 September 2020 was significantly below the prior-year level (previous year: € 29.9 million). The decline was primarily the result of a revenue correction for expected rent losses as a consequence of the coronavirus pandemic.

While maintenance volumes remained constant, the significant year-on-year decline in the cumulative operating result (EBIT) of 17.3 % to € 10.3 million (previous year: € 12.5 million) was therefore largely due to these expected rent losses.

Changes in business forecast

There were no new events of material importance in the reporting period.

Based on performance in the first nine months of the year, the Executive Board now expects to see a significant decrease in container transport and revenue (previously: strong decrease) in the Intermodal segment.

All other disclosures made in the 2019 Annual Report regarding the expected course of business in 2020 continue to apply.

Hamburg, 3 November 2020

Hamburger Hafen und Logistik Aktiengesellschaft
The Executive Board

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Angela Titzrath Jens Hansen
Dr. Roland Lappin Torben Seebold

Additional financial information

Income statement

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1-9 | 2020 1-9 | 2020 1-9 | 2020 1-9 | 2020
in € thousand Group Port Logistics Real Estate Consolidation
Revenue 959,888 937,406 28,233 - 5,751
Changes in inventories 329 329 0 0
Own work capitalised 3,058 2,349 0 709
Other operating income 30,645 27,120 4,634 - 1,109
Cost of materials - 280,066 - 274,795 - 5,733 462
Personnel expenses - 381,586 - 379,837 - 1,749 0
Other operating expenses - 100,774 - 96,665 - 9,798 5,689
Earnings before interest, taxes, depreciation and amortisation (EBITDA) 231,494 215,907 15,587 0
Depreciation and amortisation - 124,353 - 119,341 - 5,281 269
Earnings before interest and taxes (EBIT) 107,141 96,566 10,306 269
Earnings from associates accounted for using the equity method 1,658 1,658 0 0
Interest income 1,237 1,307 24 - 94
Interest expenses - 28,461 - 26,472 - 2,083 94
Other financial result 0 0 0 0
Financial result - 25,566 - 23,507 - 2,059 0
Earnings before tax (EBT) 81,575 73,059 8,247 269
Income tax - 24,372 - 21,774 - 2,531 - 67
Profit after tax 57,203 51,285 5,716 202
of which attributable to non-controlling interests 20,031 20,031 0
of which attributable to shareholders of the parent company 37,172 31,254 5,918
Earnings per share, basic and diluted, in € 0.51 0.45 2.19

Statement of comprehensive income

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1-9 | 2020 1-9 | 2020 1-9 | 2020 1-9 | 2020
in € thousand Group Port Logistics Real Estate Consolidation
Profit after tax 57,203 51,285 5,716 202
Components which cannot be transferred to the income statement
Actuarial gains/​losses - 17,674 - 17,286 - 388
Deferred taxes 5,704 5,579 125
Total - 11,970 - 11,707 - 263 0
Components which can be transferred to the income statement
Foreign currency translation differences - 14,270 - 14,270 0
Deferred taxes 0 0 0
Other - 166 - 166 0
Total - 14,436 - 14,436 0 0
Income and expense recognised directly in equity - 26,406 - 26,143 - 263 0
Total comprehensive income 30,797 25,142 5,453 202
of which attributable to non-controlling interests 19,615 19,615 0
of which attributable to shareholders of the parent company 11,182 5,527 5,655

Income statement

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1-9 | 2019 1-9 | 2019 1-9 | 2019 1-9 | 2019
in € thousand Group Port Logistics Real Estate Consolidation
Revenue 1,044,619 1,020,230 29,926 - 5,537
Changes in inventories 1,136 1,136 0 0
Own work capitalised 5,085 4,456 0 629
Other operating income 27,927 24,707 4,250 - 1,030
Cost of materials - 304,608 - 299,250 - 5,841 483
Personnel expenses - 383,719 - 382,016 - 1,703 0
Other operating expenses - 95,313 - 92,124 - 8,644 5,455
Earnings before interest, taxes, depreciation and amortisation (EBITDA) 295,127 277,139 17,988 0
Depreciation and amortisation - 119,692 - 114,427 - 5,530 265
Earnings before interest and taxes (EBIT) 175,435 162,712 12,458 265
Earnings from associates accounted for using the equity method 3,626 3,626 0 0
Interest income 1,487 1,570 27 - 110
Interest expenses - 30,200 - 27,887 - 2,423 110
Other financial result 0 0 0 0
Financial result - 25,087 - 22,691 - 2,396 0
Earnings before tax (EBT) 150,348 140,021 10,062 265
Income tax - 38,865 - 35,800 - 2,999 - 66
Profit after tax 111,483 104,221 7,063 199
of which attributable to non-controlling interests 27,668 27,668 0
of which attributable to shareholders of the parent company 83,816 76,553 7,262
Earnings per share, basic and diluted, in € 1.15 1.09 2.69

Statement of comprehensive income

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1-9 | 2019 1-9 | 2019 1-9 | 2019 1-9 | 2019
in € thousand Group Port Logistics Real Estate Consolidation
Profit after tax 111,483 104,221 7,063 199
Components which cannot be transferred to the income statement
Actuarial gains/​losses - 69,716 - 68,577 - 1,139
Deferred taxes 22,502 22,134 368
Total - 47,214 - 46,443 - 771 0
Components which can be transferred to the income statement
Foreign currency translation differences 8,210 8,210 0
Deferred taxes 0 0 0
Other - 1 - 1 0
Total 8,209 8,209 0 0
Income and expense recognised directly in equity - 39,005 - 38,234 - 771 0
Total comprehensive income 72,478 65,987 6,292 199
of which attributable to non-controlling interests 26,675 26,675 0
of which attributable to shareholders of the parent company 45,803 39,312 6,491

Income statement

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7-9 | 2020 7-9 | 2020 7-9 | 2020 7-9 | 2020
in € thousand Group Port Logistics Real Estate Consolidation
Revenue 331,469 323,203 10,188 - 1,922
Changes in inventories - 236 - 236 0 0
Own work capitalised 847 599 0 248
Other operating income 8,334 7,024 1,729 - 419
Cost of materials - 94,004 - 92,237 - 1,923 156
Personnel expenses - 121,581 - 120,993 - 588 0
Other operating expenses - 33,429 - 31,887 - 3,479 1,937
Earnings before interest, taxes, depreciation and amortisation (EBITDA) 91,400 85,473 5,927 0
Depreciation and amortisation - 39,723 - 38,044 - 1,760 81
Earnings before interest and taxes (EBIT) 51,677 47,429 4,167 81
Earnings from associates accounted for using the equity method 966 966 0 0
Interest income 127 149 8 - 30
Interest expenses - 9,048 - 8,398 - 680 30
Other financial result 100 100 0 0
Financial result - 7,855 - 7,183 - 672 0
Earnings before tax (EBT) 43,822 40,246 3,495 81
Income tax - 12,725 - 11,632 - 1,073 - 20
Profit after tax 31,097 28,614 2,423 61
of which attributable to non-controlling interests 8,034 8,034 0
of which attributable to shareholders of the parent company 23,063 20,579 2,484
Earnings per share, basic and diluted, in € 0.32 0.30 0.92

Statement of comprehensive income

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7-9 | 2020 7-9 | 2020 7-9 | 2020 7-9 | 2020
in € thousand Group Port Logistics Real Estate Consolidation
Profit after tax 31,097 28,614 2,423 61
Components which cannot be transferred to the income statement
Actuarial gains/​losses - 9,104 - 8,965 - 140
Deferred taxes 2,938 2,893 45
Total - 6,166 - 6,071 - 95 0
Components which can be transferred to the income statement
Foreign currency translation differences - 5,787 - 5,787 0
Deferred taxes 0 0 0
Other - 166 - 166 0
Total - 5,953 - 5,953 0 0
Income and expense recognised directly in equity - 12,119 - 12,024 - 95 0
Total comprehensive income 18,978 16,590 2,328 61
of which attributable to non-controlling interests 7,755 7,755 0
of which attributable to shareholders of the parent company 11,223 8,835 2,389

Income statement

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7-9 | 2019 7-9 | 2019 7-9 | 2019 7-9 | 2019
in € thousand Group Port Logistics Real Estate Consolidation
Revenue 350,964 342,763 9,991 - 1,790
Changes in inventories 1,102 1,102 0 0
Own work capitalised 1,824 1,595 0 229
Other operating income 8,941 7,915 1,422 - 396
Cost of materials - 102,865 - 101,059 - 1,973 167
Personnel expenses - 123,867 - 123,280 - 587 0
Other operating expenses - 33,911 - 32,640 - 3,061 1,790
Earnings before interest, taxes, depreciation and amortisation (EBITDA) 102,188 96,396 5,792 0
Depreciation and amortisation - 41,088 - 39,328 - 1,840 80
Earnings before interest and taxes (EBIT) 61,100 57,068 3,952 80
Earnings from associates accounted for using the equity method 1,200 1,200 0 0
Interest income - 365 - 339 9 - 35
Interest expenses - 10,377 - 9,806 - 606 35
Other financial result 0 0 0 0
Financial result - 9,542 - 8,945 - 597 0
Earnings before tax (EBT) 51,558 48,123 3,355 80
Income tax - 12,930 - 11,898 - 1,013 - 19
Profit after tax 38,628 36,225 2,342 61
of which attributable to non-controlling interests 9,502 9,502 0
of which attributable to shareholders of the parent company 29,127 26,724 2,403
Earnings per share, basic and diluted, in € 0.40 0.38 0.89

Statement of comprehensive income

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7-9 | 2019 7-9 | 2019 7-9 | 2019 7-9 | 2019
in € thousand Group Port Logistics Real Estate Consolidation
Profit after tax 38,628 36,225 2,342 61
Components which cannot be transferred to the income statement
Actuarial gains/​losses - 18,545 - 18,234 - 311
Deferred taxes 5,986 5,885 101
Total - 12,559 - 12,349 - 210 0
Components which can be transferred to the income statement
Foreign currency translation differences 5,628 5,628 0
Deferred taxes 1 1 0
Other - 2 - 2 0
Total 5,627 5,627 0 0
Income and expense recognised directly in equity - 6,932 - 6,722 - 210 0
Total comprehensive income 31,696 29,503 2,132 61
of which attributable to non-controlling interests 9,275 9,275 0
of which attributable to shareholders of the parent company 22,421 20,228 2,193

Balance sheet

ASSETS

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30.09.2020 30.09.2020 30.09.2020 30.09.2020
in € thousand Group Port Logistics Real Estate Consolidation
Intangible assets 100,141 100,111 30 0
Property, plant and equipment 1,665,958 1,634,228 18,576 13,154
Investment property 192,338 24,433 191,980 - 24,075
Associates accounted for using the equity method 18,364 18,364 0 0
Non-current financial assets 15,656 11,911 3,745 0
Deferred taxes 124,588 135,658 0 - 11,070
Non-current assets 2,117,045 1,924,705 214,331 - 21,991
Inventories 27,099 27,036 63 0
Trade receivables 178,573 176,159 2,414 0
Receivables from related parties 90,236 80,218 11,433 - 1,415
Current financial assets 2,765 2,517 248 0
Other assets 28,953 27,844 1,109 0
Income tax receivables 601 1,758 0 - 1,157
Cash, cash equivalents and short-term deposits 127,471 126,799 672 0
Current assets 455,698 442,331 15,939 - 2,572
Balance sheet total 2,572,743 2,367,036 230,270 - 24,563

EQUITY AND LIABILITIES

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30.09.2020 30.09.2020 30.09.2020 30.09.2020
in € thousand Group Port Logistics Real Estate Consolidation
Subscribed capital 74,405 71,700 2,705 0
Capital reserve 165,098 164,592 506 0
Retained earnings 482,142 431,296 59,053 - 8,206
Other comprehensive income - 150,268 - 149,429 - 839 0
Non-controlling interests 7,708 7,708 0 0
Equity 579,085 525,867 61,424 - 8,206
Pension provisions 530,115 522,916 7,199 0
Other non-current provisions 115,103 112,103 3,000 0
Non-current liabilities to related parties 463,407 451,363 12,044 0
Non-current financial liabilities 582,720 478,250 104,470 0
Deferred taxes 21,611 14,739 20,657 - 13,785
Non-current liabilities 1,712,956 1,579,371 147,370 - 13,785
Other current provisions 22,085 21,843 242 0
Trade liabilities 93,558 85,157 8,401 0
Current liabilities to related parties 37,179 34,085 4,509 - 1,415
Current financial liabilities 67,041 61,922 5,119 0
Other liabilities 53,398 52,007 1,391 0
Income tax liabilities 7,441 6,784 1,814 - 1,157
Current liabilities 280,702 261,798 21,476 - 2,572
Balance sheet total 2,572,743 2,367,036 230,270 - 24,563

ASSETS

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31.12.2019 31.12.2019 31.12.2019 31.12.2019
in € thousand Group Port Logistics Real Estate Consolidation
Intangible assets 104,506 104,465 41 0
Property, plant and equipment 1,677,256 1,640,617 23,169 13,470
Investment property 185,149 27,645 182,165 - 24,661
Associates accounted for using the equity method 17,193 17,193 0 0
Non-current financial assets 16,177 12,254 3,923 0
Deferred taxes 124,071 134,467 0 - 10,397
Non-current assets 2,124,352 1,936,641 209,298 - 21,588
Inventories 25,242 25,184 58 0
Trade receivables 168,127 167,174 953 0
Receivables from related parties 98,805 79,871 20,154 - 1,220
Current financial assets 3,579 3,455 124 0
Other assets 29,672 28,650 1,022 0
Income tax receivables 2,201 3,165 614 - 1,578
Cash, cash equivalents and short-term deposits 158,041 157,259 782 0
Current assets 485,667 464,758 23,707 - 2,798
Balance sheet total 2,610,019 2,401,399 233,005 - 24,386

EQUITY AND LIABILITIES

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31.12.2019 31.12.2019 31.12.2019 31.12.2019
in € thousand Group Port Logistics Real Estate Consolidation
Subscribed capital 72,753 70,048 2,705 0
Capital reserve 141,584 141,078 506 0
Retained earnings 499,683 449,076 59,016 - 8,409
Other comprehensive income - 124,278 - 123,702 - 577 0
Non-controlling interests - 10,880 - 10,880 0 0
Equity 578,862 525,620 61,650 - 8,409
Pension provisions 503,239 496,296 6,943 0
Other non-current provisions 114,093 111,127 2,966 0
Non-current liabilities to related parties 485,442 468,408 17,034 0
Non-current financial liabilities 626,335 518,318 108,017 0
Deferred taxes 20,704 13,940 19,943 - 13,179
Non-current liabilities 1,749,813 1,608,089 154,903 - 13,179
Other current provisions 24,005 23,996 9 0
Trade liabilities 74,879 70,560 4,318 0
Current liabilities to related parties 37,152 33,337 5,035 - 1,220
Current financial liabilities 102,351 97,254 5,097 0
Other liabilities 36,767 35,936 831 0
Income tax liabilities 6,190 6,607 1,162 - 1,578
Current liabilities 281,344 267,690 16,452 - 2,798
Balance sheet total 2,610,019 2,401,399 233,005 - 24,386

Cash flow statement

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1-9 | 2020 1-9 | 2020 1-9 | 2020 1-9 | 2020
in € thousand Group Port Logistics Real Estate Consolidation
1. Cash flow from operating activities
Earnings before interest and taxes (EBIT) 107,141 96,566 10,306 269
Depreciation, amortisation, impairment and reversals on
non-financial noncurrent assets		 124,353 119,341 5,281 - 269
Increase (+), decrease (-) in provisions 4,888 4,821 67
Gains (-), losses (+) from the disposal of non-current assets - 319 - 319 0
Increase (-), decrease (+) in inventories, trade receivables
and other assets not attributable to investing or financing activities		 - 15,822 - 14,236 - 1,781 195
Increase (+), decrease (-) in trade payables and
other liabilities not attributable to investing or financing activities		 15,733 11,171 4,757 - 195
Interest received 5,220 5,290 24 - 94
Interest paid - 21,924 - 19,658 - 2,360 94
Income tax paid - 15,450 - 15,027 - 423
Exchange rate and other effects - 331 - 331 0
Cash flow from operating activities 203,489 187,618 15,871 0
2. Cash flow from investing activities
Proceeds from disposal of intangible assets, property, plant
and equipment and investment property		 5,324 5,290 34
Payments for investments in property, plant and equipment
and investment property		 - 116,500 - 105,975 - 10,525
Payments for investments in intangible assets - 5,442 - 5,441 - 1
Payments for investments in associates accounted
for using the equity method		 - 400 - 400 0
Proceeds from disposal of non-current financial assets 45 45 0
Payments for the acquisition of interests in consolidated
companies and other business units (including funds purchased)		 - 50 - 50 0
Proceeds (+), payments (-) for short-term deposits 25,000 25,000 0
Cash flow from investing activities - 92,022 - 81,530 - 10,492 0
3. Cash flow from financing activities
Dividends paid to shareholders of the parent company - 29,549 - 23,870 - 5,679
Dividends/​settlement obligation paid to non-controlling interests - 36,197 - 36,197 0
Redemption of lease liabilities - 39,222 - 33,923 - 5,299
Payments for the redemption of (financial) loans - 18,714 - 15,203 - 3,511
Cash flow from financing activities - 123,682 - 109,193 - 14,489 0
4. Financial funds at the end of the period
Change in financial funds (subtotals 1.-3.) - 12,215 - 3,105 - 9,110 0
Change in financial funds due to exchange rates - 2,339 - 2,339 0
Financial funds at the beginning of the period 208,022 187,240 20,782
Financial funds at the end of the period 193,468 181,796 11,672 0
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1-9 | 2019 1-9 | 2019 1-9 | 2019 1-9 | 2019
in € thousand Group Port Logistics Real Estate Consolidation
1. Cash flow from operating activities
Earnings before interest and taxes (EBIT) 175,435 162,712 12,458 265
Depreciation, amortisation, impairment
and reversals
on non-financial noncurrent assets		 119,692 114,427 5,530 - 265
Increase (+), decrease (-) in provisions - 2,031 - 1,981 - 50
Gains (-), losses (+) from the disposal of
non-current assets		 - 4,589 - 4,589 0
Increase (-), decrease (+) in inventories, trade
receivables and other assets not attributable
to investing or financing activities		 - 2,531 - 3,278 454 293
Increase (+), decrease (-) in trade payables and
other liabilities not attributable to investing or financing activities		 26,107 26,314 86 - 293
Interest received 2,100 2,183 27 - 110
Interest paid - 22,987 - 20,553 - 2,544 110
Income tax paid - 30,722 - 28,463 - 2,259
Exchange rate and other effects - 381 - 381 0
Cash flow from operating activities 260,093 246,391 13,702 0
2. Cash flow from investing activities
Proceeds from disposal of intangible assets,
property, plant and equipment and investment property		 6,114 6,114 0
Payments for investments in property, plant and
equipment and investment property		 - 96,510 - 91,369 - 5,141
Payments for investments in intangible assets - 7,584 - 7,583 - 1
Payments for investments in associates accounted
for using the equity method		 0 0 0
Proceeds from disposal of non-current financial assets 0 0 0
Payments for the acquisition of interests in consolidated
companies and other business units
(including funds purchased)		 - 2,007 - 2,007 0
Proceeds (+), payments (-) for short-term deposits - 17,550 - 17,550 0
Cash flow from investing activities - 117,538 - 112,396 - 5,142 0
3. Cash flow from financing activities
Dividends paid to shareholders of the parent company - 61,719 - 56,040 - 5,679
Dividends/​settlement obligation paid to
non-controlling interests		 - 29,661 - 29,661 0
Redemption of lease liabilities - 32,840 - 30,639 - 2,201
Payments for the redemption of (financial) loans - 21,692 - 18,181 - 3,511
Cash flow from financing activities - 145,912 - 134,521 - 11,391 0
4. Financial funds at the end of the period
Change in financial funds (subtotals 1.-3.) - 3,357 - 526 - 2,831 0
Change in financial funds due to exchange rates 2,030 2,030 0
Financial funds at the beginning of the period 253,989 232,862 21,127
Financial funds at the end of the period 252,662 234,366 18,296 0

Financial calendar

25 March 2021

2020 Annual Report
Analyst Conference Call

12 May 2021

Interim Statement January-March 2021
Analyst Conference Call

10 June 2021

Annual General Meeting

12 August 2021

Half-Yearly Financial Report January-June 2021
Analyst Conference Call

11 November 2021

Interim Statement January-September 2021
Analyst Conference Call

Imprint

Published by

Hamburger Hafen und Logistik AG
Bei St. Annen 1
20457 Hamburg
Phone +49 40 3088 - 0
Fax +49 40 3088 - 3355
info@hhla.de
www.hhla.de

Investor relations

Phone +49 40 3088 - 3100
Fax +49 40 3088 - 55 3100
investor-relations@hhla.de

Corporate communications

Phone +49 40 3088 - 3520
Fax +49 40 3088 - 3355
unternehmenskommunikation@hhla.de

Photography

Thies Rätzke

Design and implementation

nexxar GmbH, Vienna
www.nexxar.com

This Interim Statement was published on 12 November 2020.

http:/​/​bericht.hhla.de/​quartalsmitteilung-q3-2020

The 2019 Annual Report is available online at:

http:/​/​bericht.hhla.de/​geschaeftsbericht-2019

This Interim Statement, including its supplemental financial information, should be read in conjunction with the 2019 Annual Report of Hamburger Hafen und Logistik Aktiengesellschaft (HHLA). Basic information about the Group and its consolidation, accounting and valuation principles can be found in the HHLA 2019 Annual Report. This document also contains forward-looking statements that are based on the current assumptions and expectations of the HHLA management team. Forward-looking statements are indicated through the use of words such as expect, intend, plan, anticipate, assume, believe, estimate and other similar formulations. These statements are not guarantees that these predictions will prove to be correct. The future development and the actual results achieved by HHLA and its affiliated companies are dependent on a wide range of risks and uncertainties and may therefore deviate greatly from the forward-looking statements. Many of these factors are outside of HHLA's control and therefore cannot be accurately estimated, such as the future economic environment and the actions of competitors and others involved in the marketplace. HHLA neither plans nor undertakes any special obligation to update the forward-looking statements.

HAMBURGER HAFEN UND LOGISTIK AKTIENGESELLSCHAFT
Bei St. Annen 1, 20457 Hamburg
Telephone: +49 40 3088-0, Fax: +49 40 3088-3355, www.hhla.de, info@hhla.de