Financial Position

Balance Sheet Analysis

Compared with year-end 2017, the HHLA Group’s balance sheet total grew by a total of € 4.1 million to € 1,839.5 million as of 31 March 2018 (31 December 2017: € 1,835.4 million).

On the assets side of the balance sheet, non-current assets decreased slightly by € 12.7 million to € 1,335.7 million (31 December 2017: € 1,348.4 million). Scheduled depreciation of property, plant and equipment as well as investment properties was opposed by capital expenditure in the reporting period. Current assets increased by € 16.8 million to € 503.8 million (31 December 2017: € 487.0 million). The increase in trade receivables of € 21.2 million and in other assets of € 19.1 million was offset by a decrease in cash and short-term deposits of € 24.1 million.

On the liabilities side, equity fell by € 12.6 million to € 589.9 million compared to the year-end figure (31 December 2017: € 602.5 million). This decrease resulted mainly from the acquisition of further shares in METRANS a.s. amounting to € 49.9 million. Profit for the period under review of € 32.8 million had an opposing effect. The equity ratio decreased to 32.1 % (31 December 2017: 32.8 %).

Non-current liabilities rose by € 5.3 million to € 999.1 million (31 December 2017: € 993.8 million). The increase was mainly due to the development in pension provisions (€ 13.3 million increase). The € 7.0 million decrease in non-current financial liabilities had the opposite effect. Current liabilities rose by € 11.4 million to € 250.5 million (31 December 2017: € 239.1 million), primarily due to the increase in other liabilities of € 9.3 million.

Investment Analysis

The investment volume in the period under review totalled € 21.4 million and thus fell short of the previous year’s figure of € 39.8 million, which was characterised by postponed investments from previous years.

The acquisition of wagons by METRANS made up the majority of capital expenditure in the first quarter of 2018. Investments were also made in expanding the infrastructure at the HHLA container terminals in the Port of Hamburg and in large-scale equipment for horizontal transport and storage cranes. The Speicherstadt historical warehouse district was also developed further in the period under review.

Liquidity Analysis

Cash flow from operating activities declined by € 32.2 million to € 54.6 million as of 31 March 2018 (previous year: € 86.8 million). This was largely due to an increase in trade receivables and other assets. Higher provisions had the opposite effect.

Investing activities led to cash outflows of € 20.5 million (previous year: € 73.3 million). This trend was primarily due to the absence of payments for short-term deposits and a year-on-year decrease in investments in property, plant and equipment.

Cash flow from financing activities was € 50.0 million higher than in the previous year. This was due to the acquisition of the remaining shares in METRANS a.s. in the Czech Republic.

Financial funds totalled € 231.4 million as of 31 March 2018 (31 March 2017: € 237.2 million). Including all short-term deposits, the Group’s available liquidity at the end of the first quarter of 2018 amounted to € 251.4 million (31 March 2017: € 286.5 million).