HHLA continues future-oriented investments despite challenging conditions

EQS-News: Hamburger Hafen und Logistik AG / Key word(s): Annual Report
HHLA continues future-oriented investments despite challenging conditions

21.03.2024 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Hamburg, 21 March 2024

Publication of figures for the 2023 financial year
HHLA continues future-oriented investments despite challenging conditions

  * CEO Angela Titzrath: 'In a challenging market environment, HHLA is
    continuing to pursue its forward-looking investments to modernise its
    terminals and expand its European network.'

* Dividend proposal of EUR 0.08 per dividend-entitled class A share

  * Group forecast for 2024: moderate revenue increase and EBIT within a
    range between EUR 85 million and EUR 115 million

Hamburger Hafen und Logistik AG (HHLA) recorded a drop in revenue and
earnings in the 2023 financial year. The ongoing war in Ukraine,
geopolitical tensions, high inflation and interest rate hikes burdened the
economy and continued to dampen the recovery from the pandemic. This
economic weakness is reflected in the company's earnings. Group revenue
decreased by 8.3 percent to EUR 1,446.8 million (previous year: EUR 1,578.4
million). The Group operating result (EBIT) decreased by 50.4 percent to EUR
109.4 million (previous year: EUR 220.4 million). The EBIT margin amounted to
7.6 percent (previous year: 14.0 percent). Profit after tax and minority
interests came to EUR 20.0 million (previous year: EUR 92.7 million).

Angela Titzrath, HHLA's Chief Executive Officer: 'In light of the extremely
difficult conditions for global trade, HHLA has performed well in 2023,
particularly in comparison to its major competitors. This year we are facing
uncertain market conditions again. Regardless of this, we are expanding our
presence as a European logistics group and continuing to invest in
modernisation projects focussing on the Port of Hamburg, the expansion of
our European network and the development of sustainable logistics
solutions.'

Port Logistics subgroup: performance in 2023

The listed Port Logistics subgroup recorded a decrease of 8.6 percent in
revenue to EUR 1,408.9 million in 2023 (previous year: EUR 1,542.3 million). In
addition to the decline in container throughput volumes, this was due to
lower storage fees at the Hamburg container terminals, which had benefitted
from supply chain disruptions in the previous year. The operating result
(EBIT) decreased year-on-year by 53.9 percent to EUR 92.9 million (previous
year: EUR 201.6 million). The EBIT margin amounted to 6.6 percent, down by 6.5
percentage points in a year-on-year comparison. Profit after tax and
non-controlling interests decreased by 89.4 percent to EUR 8.7 million
(previous year: EUR 82.1 million). Earnings per share thus came to EUR 0.12
(previous year: EUR 1.13).

In the Container segment, container throughput at HHLA's container terminals
decreased
year-on-year by 7.5 percent to 5,917 thousand standard containers (TEU)
(previous year: 6,396 thousand TEU). At 5,687 thousand TEU, throughput
volume at the Hamburg container terminals was down 6.3 percent on the same
period last year (previous year: 6,071 thousand TEU). The main driver of
this development was the decline in volumes for the Far East shipping region
- China in particular. The positive momentum from North American cargo
volumes and the throughput volumes of the Middle East were only able to
partially offset this trend. Feeder traffic volumes were also strongly down
on the previous year. In addition to the reduction in Swedish and Polish
traffic, volumes from Russia were also absent due to the sanctions. The
proportion of seaborne handling by feeders amounted to 18.6 percent
(previous year: 19.8 percent).

The international container terminals reported a sharp decline in throughput
volume of 29.1 percent to 231 thousand TEU (previous year: 326 thousand
TEU). This was due in particular to the significant decline in cargo volumes
at Container Terminal Odessa (CTO) after seaborne handling there was
suspended by the authorities at the end of February 2022 following the
Russian invasion. Only grain ships operating under the Black Sea Grain
Initiative were sometimes handled there. There has also been an absence of
extra calls at the TK Estonia container terminal as an alternative to
Russian ports in 2023 compared to the previous year. The notable increase in
throughput volumes at the multi-function terminal HHLA PLT Italy was unable
to offset this shortfall.

Segment revenue fell by 18.0 percent in the reporting period to EUR 708.8
million (previous year: EUR 864.2 million). In addition to the significant
decrease in volumes, this was mainly due to shorter dwell times for
containers being handled at the Hamburg terminals, which had led to
increased storage charges in the same period of the previous year due to
supply chain disruptions. As a result, the operating result (EBIT) decreased
by 70.0 percent to EUR 47.2 million (previous year: EUR 157.3 million). The EBIT
margin decreased by 11.5 percentage points to 6.7 percent (previous year:
18.2 percent).

In the Intermodal segment, container transport decreased by a total of 5.4
percent to 1,602 thousand TEU (previous year: 1,694 thousand TEU). Rail
transport fell year-on-year by 3.1 percent to 1,365 thousand TEU (previous
year: 1,409 thousand TEU). There was a decrease in road transport of 16.9
percent to 226 thousand TEU (previous year: 285 thousand TEU).

With a year-on-year increase of 4.2 percent to EUR 620.5 million (previous
year: EUR 595.4 million), the development of revenue ran positively counter to
that of transport volumes. This was due to the rise in transport revenue
already witnessed in the previous year, which was adjusted to the increased
costs for the purchase of services, in particular energy. The increase in
rail's share of HHLA's total intermodal transportation from 83.2 percent to
85.2 percent also had a positive effect on revenue.

The operating result (EBIT) decreased by 23.6 percent to EUR 72.9 million
(previous year: EUR 95.3 million). The EBIT margin fell by 4.3 percentage
points to 11.7 percent (previous year: 16.0 percent). The main reason for
the downward EBIT trend was the decrease in transport volumes. In addition
to increased union wage rates, the expansion of operations in rail transport
also had an adverse effect.

Real Estate subgroup: performance in 2023

HHLA's properties in the Speicherstadt historical warehouse district and the
fish market area in Hamburg reported a positive trend in 2023 with almost
full occupancy in both districts.

Revenue rose by 5.3 percent in the reporting period to EUR 46.5 million
(previous year: EUR 44.1 million). In addition to increased income from
revenue-based rent agreements, this growth was also due to rising rental
income from newly developed properties in the Speicherstadt historical
warehouse district.

This significant revenue growth was offset by a planned temporary vacancy
for facade renovation to increase the energy efficiency of a property and
increased maintenance expenses in the fourth quarter. Moreover, higher
depreciation and amortisation following a completed project development and
demolition costs as part of preparations for a major construction project in
the fish market area also had a negative impact on earnings. The cumulative
operating result (EBIT) fell accordingly by 12.5 percent to EUR 16.1 million
(previous year: EUR 18.4 million).

Outlook for 2024

Due to the unpredictability regarding the future development of geopolitical
tensions, the ongoing war in Ukraine and the effects of the announced
realignment of syndicate structures of shipping companies, this forecast is
subject to great uncertainty.

In the Port Logistics subgroup, a significant increase is expected for
container throughput and a moderate increase for container transport
compared to the previous year. All in all, a moderate year-on-year increase
in revenue is expected. A significant increase is forecast for the Container
segment and a moderate increase for the Intermodal segment.

The Port Logistics subgroup anticipates EBIT in the range of EUR 70 million to
EUR 100 million between EUR 70 million and EUR 100 million in the 2024 financial
year. A strong decrease is forecast for the Container segment and a strong
increase for the Intermodal segment.

For the Real Estate subgroup, revenue is expected to remain at the
prior-year level. A significant year-on-year increase is regarded as
possible for the operating result (EBIT).

At Group level, HHLA expects a moderate increase in revenue and an operating
result (EBIT) in the range of EUR 85 million and EUR 115 million.

At Group level, capital expenditure is expected to be in the range of EUR 400
million to EUR 450 million in 2024. The Port Logistics subgroup will account
for EUR 360 million to EUR 410 million of this amount.

In the Container segment, investments will focus on expanding capacity at
domestic and foreign terminals, and on expanding the Group's own transport
and handling capacities in the Intermodal segment.

HHLA remains committed to its results-oriented dividend policy, which aims
to pay out between 50 percent and 70 percent of annual net profit after
minority interests in the form of dividends.

Dividend proposal for 2023

At the Annual General Meeting on 13 June 2024, the Executive Board and
Supervisory Board will propose a dividend of EUR 0.08 per dividend-entitled
class A share. HHLA therefore continues to pursue its dividend policy of
distributing between 50 and 70 percent, where possible, of the Port
Logistics subgroup's relevant net profit for the year to its shareholders.

Key Figures 2023

  HHLA Group
  in EUR million                                  2023       2022      Change
  Revenue                                    1,446.8    1,578.4     - 8.3 %
  EBITDA                                       287.8      396.3    - 27.4 %
  EBITDA margin in %                            19.9       25.1    - 5.2 pp
  EBIT                                         109.4      220.4    - 50.4 %
  EBIT margin in %                               7.6       14.0    - 6.4 pp
  Profit after tax and minority interests       20.0       92.7    - 78.5 %
  ROCE in %                                      4.6        9.7    - 5.1 pp
  Port Logistics subgroup 1,2
  in EUR million                                   2023       2022      Change
  Revenue                                     1,408.9    1,542.3     - 8.6 %
  EBITDA                                        262.0      369.6    - 29.1 %
  EBITDA margin in %                             18.6       24.0    - 5.4 pp
  EBIT                                           92.9      201.6    - 53.9 %
  EBIT margin in %                                6.6       13.1    - 6.5 pp
  Profit after tax and minority interests         8.7       82.1    - 89.4 %
  Earnings per share in EUR 3                      0.12       1.13    - 89.4 %
  1 Before consolidation between subgroups
  2 Listed class A shares
  3 Basic and diluted
    Container segment
    in EUR million                             2023     2022       Change
    Revenue                                 708.8    864.2     - 18.0 %
    EBITDA                                  146.6    257.1     - 43.0 %
    EBITDA margin in %                       20.7     29.7     - 9.0 pp
    EBIT                                     47.2    157.3     - 70.0 %
    EBIT margin in %                          6.7     18.2    - 11.5 pp
    Container throughput in thousand TEU    5,917    6,396      - 7.5 %
    Intermodal segment
    in EUR million                            2023     2022      Change
    Revenue                                620.5    595.4       4.2 %
    EBITDA                                 124.8    143.9    - 13.3 %
    EBITDA margin in %                      20.1     24.2    - 4.1 pp
    EBIT                                    72.9     95.3    - 23.6 %
    EBIT margin in %                        11.7     16.0    - 4.3 pp
    Container transport in thousand TEU    1,602    1,694     - 5.4 %

Key Figures 10-12 | 2023

    HHLA Group
    in EUR million                     10-12 |    10-12 |    Change
                                        2023       2022
    Revenue                            356.8      405.6    - 12.1
                                                                %
    EBITDA                              78.5      103.6    - 24.2
                                                                %
    EBITDA margin in %                  22.0       25.5     - 3.5
                                                               pp
    EBIT                                33.8       60.3    - 44.0
                                                                %
    EBIT margin in %                     9.5       14.9     - 5.4
                                                               pp
    Profit after tax and minority        8.1       22.8    - 64.6
    interests                                                   %
    Port Logistics subgroup 1,2
    in EUR million                      10-12 |    10-12 |    Change
                                         2023       2022
    Revenue                             347.5      396.5    - 12.3
                                                                 %
    EBITDA                               73.4       97.4    - 26.6
                                                                 %
    EBITDA margin in %                   21.1       24.6     - 3.5
                                                                pp
    EBIT                                 31.1       56.3    - 44.9
                                                                 %
    EBIT margin in %                      8.9       14.2     - 5.3
                                                                pp
    Profit after tax and minority         5.6       20.8    - 73.2
    interests                                                    %
    Earnings per share in EUR 3            0.08       0.28    - 73.2
                                                                 %
    1 Before consolidation between
    subgroups
    2 Listed class A shares
    3 Basic and diluted
  Container segment
  in EUR million                            10-12 | 2023    10-12 | 2022      Change
  Revenue                                        174.6           211.1    - 17.3 %
  EBITDA                                          44.4            60.4    - 26.5 %
  EBITDA margin in %                              25.4            28.6    - 3.2 pp
  EBIT                                            20.0            35.6    - 43.9 %
  EBIT margin in %                                11.4            16.9    - 5.5 pp
  Container throughput in thousand TEU           1,462           1,527     - 4.2 %
  Intermodal segment
  in EUR million                           10-12 | 2023    10-12 | 2022       Change
  Revenue                                       154.7           164.1      - 5.7 %
  EBITDA                                         24.8            43.7     - 43.4 %
  EBITDA margin in %                             16.0            26.7    - 10.7 pp
  EBIT                                           11.5            31.3     - 63.4 %
  EBIT margin in %                                7.4            19.1    - 11.7 pp
  Container transport in thousand TEU             379             428     - 11.4 %

Contact:
Julia Hartmann
Head of Investor Relations

HAMBURGER HAFEN UND LOGISTIK AG
Bei St. Annen 1, D-20457 Hamburg, www.hhla.de

Tel: +49-40-3088-3397
Fax: +49-40-3088-55-3397
E-mail: investor-relations@hhla.de


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   Language:       English
   Company:        Hamburger Hafen und Logistik AG
                   Bei St. Annen 1
                   20457 Hamburg
                   Germany
   Phone:          +49 (0)40-3088-0
   Fax:            +49 (0)40-3088-3355
   E-mail:         info@hhla.de
   Internet:       www.hhla.de
   ISIN:           DE000A0S8488
   WKN:            A0S848
   Listed:         Regulated Market in Frankfurt (Prime Standard),
                   Hamburg; Regulated Unofficial Market in Berlin,
                   Dusseldorf, Hanover, Munich, Stuttgart, Tradegate
                   Exchange
   EQS News ID:    1863343

End of News EQS News Service
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1863343 21.03.2024 CET/CEST