37. Other non-current and current provisions

Demolition obligations

The demolition obligations relate to HHLA’s Container, Logistics and Real Estate segments and are discounted at a rate of 4.0 % and 4.8 % p.a. (previous year: 4.0 % p.a.). Due to the expiration of the original lease for the space at O’Swaldkai rented from HPA at the end of the second quarter, HHLA and the HPA agreed in June 2025 that the conditions precedent agreed with regard to the payment of financial compensation for the early return of partial spaces and the completion of necessary renovation measures are considered to have occurred in good time, see Note 48. As part of this, the lease is extended until 2049 with the application of an interest rate of 4.8 % with an identical maturity. In the reporting year, an anticipated price increase of 2.8 % (previous year: 2.8 %) was used to calculate the provisions shown. This rate is derived from the German construction cost index. The effects of these changes were recognised as a reversal under provisions. The outflow of these resources is expected in the period 2034–2049.

Property transfer tax

The conclusion of the MSC transaction in the 2024 financial year resulted in the application of property transfer tax for specific companies in the HHLA Group that hold property. The contractual parties have committed to indemnifying the HHLA Group against any claims relating to the property transfer tax. Accordingly and as in the previous year, a receivable was activated on the balance sheet date in the same amount as the provisions vis-à-vis HGV, see Note 29. The outflow of these resources is expected in the 2026 financial year.

Bonuses and single payments

Current provisions for bonuses and single payments largely consist of provisions for Executive Board members and other senior staff. The outflow of funds for the current part will become payable in the 2026 financial year.

Non-current provisions for bonuses and single payments include stock appreciation rights granted to the management of a subsidiary. The management participates in the long-term development of the company on a percentage basis, within a range of 0.5 % to 1.0 % where a certain threshold value is exceeded. The threshold value is the enterprise value at the time of the commitment. Stock appreciation rights are granted by means of cash settlement. The payment is non-forfeitable insofar as the contractual provisions are complied with. An option pricing model (binomial model) is used to value the stock appreciation rights. The company's performance and the threshold value are used to determine the fair value of these stock appreciation rights, taking into account expected volatility and a risk-free interest rate corresponding to the remaining term of the stock appreciation rights. Expected dividends were not taken into account when determining the fair value. The provision to be recognised on the basis of the currency of the stock appreciation rights was determined on the basis of the proportionate service rendered. Income reported through profit and loss during the reporting period amounted to € 2,000 thousand (previous year: expenses of € 1,037 thousand). HHLA assumes a term until 2034.

Restructuring

The provisions for restructuring relate to the reorganisation in the Logistics segment and organisational restructuring in the Container segment. The securities holdings acquired in connection with this are classified as plan assets under IAS 19 (revised 2011). They were thus netted out against the obligations contained in the provision amount. The corresponding figure of € 4,919 thousand (previous year: € 5,224 thousand) therefore reduces the provisions reported; see Note 26. A discount rate of 2.5 % p.a. (previous year: 2.7 % p.a.) was used for the calculation. The outflow of funds will take place between 2026 and 2031.

Anniversaries

Provisions for anniversaries relate to Group employees’ contractual entitlement to anniversary gratuities. The amount recognised is determined by an actuarial opinion. A discount rate of 3.9 % p.a. (previous year: 3.3 % p.a.) was used for the calculation. The outflow of these resources is expected to take place in the period 2026–2065.

Insurance excesses

This obligation relates to provisions largely created by the Group’s parent company to allow for potential cases of damage or loss which exceed the existing insurance cover. The funds will become payable in the 2026 financial year.

Legal fees and litigation expenses

Provisions for legal fees and litigation expenses mainly consist of obligations arising from provisions for legal risks associated with pending proceedings. The outflow of these resources is expected in the 2026 financial year.

Phased early retirement

Provisions for phased early retirement consist of HHLA’s obligations from the entitlements accrued during the beneficiaries’ working period, plus a supplementary amount added pro rata temporis. The securities holdings acquired in connection with phased early retirement contracts are classified as plan assets under IAS 19 (revised 2011). They were thus netted out against the phased early retirement obligations contained in the provision amount. The corresponding figure of € 271 thousand (previous year: € 291 thousand) therefore reduces the provisions reported; see Note 26. In addition, pledged bank balances serve to cover the obligations in existence as of the balance sheet date. The amount of the provision was determined using a discount rate of 2.5 % p. a. (previous year: 2.7 % p.a.). The outflow of these resources is expected in the period 2026–2029.

Other

Other provisions primarily include provisions for demographic funds totalling € 10,786 thousand (previous year: € 8,429 thousand), provisions for long-time work accounts totalling € 5,058 thousand (previous year: € 6,683 thousand) and provisions for savings accounts for working hours amounting to € 842 thousand (previous year: € 0 thousand). The majority of these have an indefinite term with regard to cash outflow.

In addition, HHLA has obligations from individual agreements with employees totalling € 204 thousand (previous year: € 293 thousand). The securities holdings acquired in connection with this are classified as plan assets under IAS 19 (revised 2011). They were thus netted out against the obligations included in the amount of the provision. The corresponding figure of € 143 thousand (previous year: € 247 thousand) therefore reduces the provisions reported; see Note 26. The outflow of funds will take place between 2026 and 2028.