The HHLA Share

Benchmark Indices Impacted by Chinese Slowdown and Brexit

The German benchmark indices started 2016 with heavy losses on the back of weaker economic growth in China and the freefall in oil prices. After briefly firming in late January, the DAX even fell below the 9,000‑point mark at times in mid-February. The prospect of a further easing of monetary policy by the European Central Bank (ECB) relieved market tension to some extent in the second half of the month. From March onwards, optimistic economic data from the USA and a weaker euro also to contributed to this more stable trend. Nevertheless, the volatile oil price repeatedly led to isolated outliers in both directions. In the second half of May, the DAX established itself above the 10,000-point mark. Growing market uncertainty surrounding the UK’s potential exit from the European Union (“Brexit”) halted the upward trend in mid-June. After a short period of recovery, the DAX fell by over 1,000 points in a single day following the referendum result in favour of Brexit. The DAX closed the second quarter at 9,680 points, down 9.9 % on the year-end 2015 figure. The SDAX was hit less hard and closed at 8,782 points on 30 June, a decrease of just 3.5 % in the reporting period.

HHLA Share Down in Declining Market

After firming at around € 14 in late 2015, the HHLA share fell sharply at the beginning of the year in a declining market environment, dropping below € 13 in mid-January. Following publication of the preliminary figures in early February, the share bucked the downward trend to gain 3 % and pass the € 14 mark again for the first time in the current year. However, the HHLA share was unable to escape the negative market sentiment and fell to a year-low so far of € 11.95 in mid-February. It recovered slightly towards the end of the month and fluctuated strongly between € 13 and € 14 until the annual figures for 2015 were published at the end of March. As the results for 2015 and the forecast for the 2016 financial year were in line with market expectations, there was no noticeable impact on the share price. The share price remained stable at just over € 13.50 in April. The first-quarter results were published on 12 May. The market responded positively to the company’s performance so far and lifted the HHLA share above the € 14 mark once again. Over the course of the month, the share even outperformed the market and recorded a year-high to date of € 15.35 on 30 May. HHLA’s Annual General Meeting was held on 16 June 2016 and attended by around 850 shareholders and guests. 84 % of share capital was represented. The resolutions proposed by the Supervisory Board and Executive Board were adopted with large majorities, including the proposal to pay a dividend in line with earnings of € 0.59 (previous year: € 0.52) per listed Class A share. Once the dividend was paid on the following day, the share traded at a corresponding discount. In the second half of June, the HHLA share also began to feel the effects of the strained market environment. It dropped below the € 14 mark and closed at € 13.45 on 30 June, down 4.4 % compared to year-end 2015.

Dialogue with Capital Market Actively Maintained

The Investor Relations department continued its proactive communication activities in the first half of 2016 and held a large number of discussions with analysts and investors. HHLA was also represented at a number of conferences in Europe and the USA. Discussions focussed on the current status of dredging the river Elbe, as well as the formation of and changes in shipping consortia and their consequences for the Port of Hamburg. Interest in the Intermodal segment was also noticeably higher.

The number of financial analysts covering the HHLA share fell by three to 18, whereby this is still a large number for an SDAX share. Three quarters of these analysts recommended buying or holding the HHLA share.

Share Price Development January to June 2016

Closing prices in %

Source: Datastream

The latest prices and more detailed information on the HHLA share can be found on HHLA’s IR website.at www.hhla.de/en/investor-relations