Financial Position

Balance Sheet Analysis

Compared with year-end 2015, the HHLA Group’s balance sheet total increased slightly as of the reporting date to € 1,761.6 million.

At € 1,349.7 million, non-current assets were up € 43.9 million on the prior-year figure (31 December 2015: € 1,305.8 million). This was largely attributable to the higher balance sheet entry for deferred tax assets due to interest rate-related changes in pension provisions and investments in property, plant and equipment during the reporting period. Depreciation of property, plant and equipment and investment properties in particular had an opposing effect.

At € 411.9 million as of 30 June 2016, current assets were € 32.7 million below the corresponding figure on 31 December 2015 (€ 444.6 million). This decrease was mainly due to a € 97.3 million reduction in cash and cash equivalents. By contrast, receivables from related parties rose by € 44.5 million in connection with cash clearing, while trade receivables increased by € 21.5 million.

Equity declined by € 70.6 million to € 510.0 million as of the reporting date (31 December 2015: € 580.6 million). The decrease was primarily due to the € 49.8 million change in actuarial gains and losses, netted with deferred taxes, and the dividend distribution of € 46.8 million. Equity was also reduced by the purchase of further shares in METRANS a.s. The result for the period under review of € 40.8 million had an opposing effect. The equity ratio decreased to 29.0 % (31 December 2015: 33.2 %).

The € 76.8 million increase in non-current liabilities to € 1,056.0 million compared to the year-end figure (31 December 2015: € 979.2 million) is attributable to the € 75.5 million rise in pension provisions, mainly as a result of changes to actuarial parameters, and to an increase in other non-current provisions. The € 12.6 million decrease in non-current financial liabilities had an offsetting effect.

Current liabilities rose by € 5.0 million to € 195.6 million (31 December 2015: € 190.6 million), as a result of the € 10.6 million increase in trade liabilities and the € 10.1 million rise in other current provisions. The figure was reduced by the decline in current financial liabilities of € 14.7 million.

Investment Analysis

Capital expenditure in the reporting period amounted to € 67.2 million, up on the prior-year figure of € 64.0 million. Property, plant and equipment and investment property accounted for € 59.2 million (previous year: € 60.0 million) of capital expenditure, while intangible assets accounted for € 8.0 million (previous year: € 4.0 million). The majority of investments were for expansion work.

A large proportion of the capital expenditure in the first half of 2016 was for the expansion of the block storage facility at the HHLA Container Terminal Burchardkai and the construction of the hinterland terminal in Budapest. Capital expenditure continues to focus on increasing productivity in the existing terminal areas and expanding the high-performance hinterland connections in line with market demands.

Liquidity Analysis

The cash inflow from operating activities (operating cash flow) rose by € 14.7 million to € 112.5 million as of 30 June 2016 (previous year: € 97.8 million). This was mainly due to a net reduction in income tax payments.

Investing activities led to cash outflows of € 45.6 million (previous year: € 17.4 million). The € 28.2 million increase was due to a smaller change in short-term deposits. Reduced outflows for investments in property, plant and equipment had an opposing effect.

Free cash flow, which is the total cash flow from operating and investing activities – amounted to € 66.9 million at the end of the reporting period (previous year: € 80.4 million), down € 13.5 million year on year.

The cash outflow from financing activities amounted to € 101.2 million as of 30 June 2016 (previous year: € 79.8 million), an increase of € 21.4 million. In addition to the acquisition of non-controlling interests, the net result of a decline in new borrowing and lower principal repayments on loans led to an increase in net cash outflow from financing activities.

As of the reporting date, the changes described above resulted in financial funds of € 135.4 million (30 June 2015: € 184.5 million), which were thus down on the beginning of the year (31 December 2015: € 165.4 million). Including short-term deposits, the Group’s available liquidity as of 30 June 2016 totalled € 192.0 million (30 June 2015: € 224.5 million).