3. Accounting and valuation principles and new accounting standards

3.1 Principal accounting and valuation methods

The accounting and valuation methods used for the preparation of the Condensed Interim Consolidated Financial Statements correspond to the methods used in the preparation of the Consolidated Financial Statements as of 31 December 2024. When calculating the income tax expense during the year, the currently applicable tax rate is generally used for the domestic companies. The effective tax rate of the entire Group for the interim reporting period to 30 June 2025 was 36.8 % (30 June 2024: 35.7 %).

Based on the latest figures for the constituent entities, an indicative assessment of the potential minimum tax rate, taking into account the Safe Harbour guidelines, was conducted for the 30 June 2025 balance sheet date in accordance with Section 84 et seq. of the German Minimum Taxation Act (MinStG). All the countries in the assessment meet at least one of the preconditions for the Safe Harbour guidelines as per Section 84 MinStG. As a result, no minimum tax expense was recognised at Group level as of 30 June 2025.

For property, plant and equipment, the economic useful lives of certain assets in the asset class “Other plant, operating and office equipment” were remeasured during the reporting period based on an analysis of the historic useful lives of such items, as well as past and anticipated replacement investments. The range of the useful lives of this asset class changed from 3–20 years as of 31 December 2024 to 3–25 years in the reporting period. The positive effect arising from the restatement of useful lives amounts to around € 2.1 million as of 30 June 2025. The positive restatement effect will amount to around € 4.1 million for the 2025 reporting year as a whole. The restatement has a material impact on the Group’s results of operations, net assets and financial position.

Impairment of assets

On the measurement date of 31 December 2024, the goodwill for the cash-generating unit Roland Spedition GmbH, Schwechat, Austria (Roland CGU), underwent mandatory impairment testing. As of 31 December 2024, the discount rate after taxes was 8.7 %. Based on the estimate used for cash flow in the detailed planning period and the growth factor of 1.0 %, the recoverable amount was € 1.1 million higher than the carrying amount for valuation purposes. Due to the proximity of the acquisition date (6 June 2024), the carrying amount for valuation purposes, taking into account HHLA’s share of 51.0 %, also approximated the transferred consideration.

The management considered it possible that there could be a change in material assumptions which would lead to the carrying amount exceeding the recoverable amount.

The overview below shows the necessary change in the various material valuation parameters as of 31 December 2024 which would have led to the recoverable amount being the same as the carrying amount:

The management regarded the fact that the recoverable amount was close to the carrying amount, combined with an increase in the discount rate, as indicative of the need to conduct another impairment test for the Roland CGU as of the measurement date of 31 March 2025. The estimate of cash flows in the detailed planning period was updated on the basis of the development of earnings. With a discount rate of 9.4 % and an unchanged growth factor of 1.0 %, the recoverable amount as of 31 March 2025 was close to the carrying amount for valuation purposes. A marginal change in material assumptions would lead to the carrying amount exceeding the recoverable amount.

The management regarded the fact that the recoverable amount was close to the carrying amount, combined with a further slight increase in the discount rate, as indicative of the need to conduct another impairment test for the Roland CGU as of the measurement date of 30 June 2025. The estimate of cash flows in the detailed planning period was updated once again on the basis of the development of earnings. With a discount rate of 9.5 % and an unchanged growth factor of 1.0 %, the recoverable amount as of 30 June 2025 was still close to the carrying amount for valuation purposes. A marginal change in material assumptions would lead to the carrying amount exceeding the recoverable amount.

As a result of the ongoing war between Russia and Ukraine, management updated its estimates as of 31 December 2024 with regard to the future performance of the CTO CGU. The assumption in the impairment test is that the container terminal will continue to exist. In the baseline scenario, which is considered likely, we envisage a medium-term recovery and a return to the original volumes planned before the Russia-Ukraine war. With a likelihood of 20 %, we assume a deviating positive development, particularly in terms of the time required to return to original volumes. A less favourable development than the baseline scenario, in which a delayed recovery in the volumes planned before the Russia-Ukraine war is expected, is also estimated with a likelihood of 20 %. Weighted accordingly, the cash flows were discounted at a rate of 16.2 % after taxes as of 31 December 2024, while a growth factor of 1.0 % was applied. Based on the assumptions described, there was no need to recognise an impairment loss as of 31 December 2024; the recoverable amount was sufficiently higher than the carrying amount for valuation purposes.

Management updated its estimates as of 30 June 2025 with regard to the future performance of the CTO CGU. The scenarios presented for the impairment test as of 31 December 2024 were updated, taking into account events over time. Weighted accordingly, the cash flows were discounted at a rate of 15.4 % after taxes as of 30 June 2025, while a growth factor of 1.0 % was applied. There was no need to recognise an impairment loss as of 30 June 2025; the recoverable amount was sufficiently higher than the carrying amount for valuation purposes.

Material risks (expropriation, destruction, breach of contract) continue to be largely hedged by German government guarantees. It has been possible to expand hedging to include shareholder loans additionally granted.

In the case of other cash-generating units, there are no indications of an impairment of assets as of 30 June 2025 due to the development of earnings and interest rates, with the result that the Executive Board did not update the respective impairment calculations.

3.2 New accounting standards

HHLA started applying the following new standard on 1 January 2025:

• Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability

No material effects on the Interim Consolidated Financial Statements arose from the application of this new standard.

The following amendments to standards can be applied on a voluntary basis for the financial year under review. They have not been applied by HHLA:

• Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7)
• Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7)
• Annual Improvements – Volume 11