Financial Position

Balance Sheet Analysis

Compared with year-end 2015, the HHLA Group’s balance sheet total increased by € 49.1 million to € 1,799.5 million as of 31 March 2016 (previous year: € 1,750.4 million).

On the assets side of the balance sheet, non-current assets rose by € 6.1 million to € 1,311.9 million (previous year: € 1,305.8 million). Current assets increased by € 43.0 million to € 487.6 million (previous year: € 444.6 million).

On the liabilities side, equity was down € 5.7 million at € 574.9 million (previous year: € 580.6 million) compared to year-end 2015. The reduction was primarily due to the interest rate-related change of € 28.0 million in actuarial gains and losses, netted with deferred taxes, and the foreign currency effects of € 3.5 million recognised directly in equity. The Group’s profit after tax for the reporting period led to an increase in equity of € 26.0 million. The equity ratio decreased to 31.9 % (previous year: 33.2 %).

Non-current and current liabilities rose by € 54.8 million to € 1,224.6 million (previous year: € 1,169.8 million). This was mainly due to the increase in pension provisions of € 43.8 million.

Investment Analysis

The investment volume in the period under review totalled € 27.0 million and thus fell short of the previous year’s figure of € 31.5 million. Property, plant and equipment accounted for € 21.5 million (previous year: € 30.1 million) of capital expenditure, while intangible assets accounted for € 5.5 million (previous year: € 1.4 million). The majority of the investments were for expansion work.

A large proportion of the capital expenditure in the first quarter of 2016 was for the expansion of the block storage facility at the Container Terminal Burchardkai and the construction of the terminal in Budapest by Metrans Danubia.

Liquidity Analysis

Cash flow from operating activities rose year on year from € 38.6 million to € 62.0 million. This increase was primarily caused by the year-on-year fall in receivables from related parties, as well as lower advance tax payments and reduced exchange rate effects.

Cash flow from investing activities of € 36.2 million was down on the previous year. This decline was mainly due to the fall in capital expenditure in the Intermodal segment.

Cash flow from financing activities decreased by € 25.3 million in the reporting period. Cash inflows from borrowing were lower than in the previous year.

Financial funds totalled € 180.5 million as of 31 March 2016 (31 March 2015: € 187.3 million). Including all short-term deposits, the Group’s available liquidity at the end of the first quarter of 2016 amounted to € 268.8 million (31 March 2015: € 287.3 million).