Financial position

Balance sheet analysis

Compared with year-end 2019, the HHLA Group’s balance sheet total grew by a total of € 21.8 million to € 2,631.8 million as of 30 June 2020 (31 December 2019: € 2,610.0 million).

On the assets side of the balance sheet, non-current assets decreased by € 6.4 million to € 2,117.9 million, primarily due to the decrease in property, plant and equipment (31 December 2019: € 2,124.3 million). Current assets increased by € 28.2 million to € 513.9 million (31 December 2019: € 485.7 million). This was largely due to the increase in cash, cash equivalents and short-term deposits of € 45.0 million and the decrease in trade receivables of € 18.9 million.

On the liabilities side, equity rose by € 10.8 million to € 589.7 million compared to the year-end figure for 2019 (31 December 2019: € 578.9 million). This increase stemmed largely from the positive result for the reporting period of € 26.1 million. Interest rate adjustments to pension provisions and the difference from foreign currency translation had an opposing effect. The equity ratio increased slightly to 22.4 % (31 December 2019: 22.2 %).

Non-current liabilities fell by € 30.1 million to € 1,719.7 million (31 December 2019: € 1,749.8 million). This decrease is primarily due to the decline in non-current financial liabilities of € 31.2 million and the decrease in liabilities to related parties. The increase in pension provisions had an opposing effect. Current liabilities increased by € 41.1 million to € 322.4 million, primarily as a result of the increase in other liabilities, trade liabilities and current liabilities to related parties (31 December 2019: € 281.3 million).

Investment analysis

Capital expenditure in the reporting period totalled € 89.0 million and was thus 19.7 % below the prior-year figure (previous year: € 110.9 million). Property, plant and equipment accounted for € 85.5 million (previous year: € 106.1 million) of capital expenditure and intangible assets for € 3.5 million (previous year: € 4.8 million). The majority of capital expenditure was for expansion work.

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 HHLA container terminals in the Port of Hamburg, and the development of the Hamburg Speicherstadt historical warehouse district accounted for a major share of capital expenditure in the first half of 2020.

Liquidity analysis

Cash flow from operating activities declined by € 13.3 million to € 159.8 million as of 30 June 2020 (previous year: € 173.1 million). This was primarily due to the decrease in EBIT. This was offset by a decrease (previous year: increase) in trade receivables and other assets, as well as lower tax payments than in the same period last year.

Investing activities led to a net cash outflow of € 77.2 million (previous year: € 90.2 million). This was largely due to payments for short-term deposits in the prior-year period. 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 € 38.4 million was € 89.2 million below the prior-year figure of € 127.6 million. This was primarily due to payments in the previous year for the dividend to shareholders of the parent company and for the settlement obligation to a minority shareholder.

Financial funds totalled € 251.1 million as of 30 June 2020 (30 June 2019: € 210.1 million). Including all short-term deposits, the Group’s available liquidity at the end of the first half of 2020 amounted to € 296.1 million (30 June 2019: € 260.1 million).