Financial Position

Balance Sheet Analysis

Compared with year-end 2017, the HHLA Group’s balance sheet total grew by a total of € 23.4 million to € 1,858.7 million as of 30 September 2018 (31 December 2017: € 1,835.3 million).

On the assets side of the balance sheet, non-current assets rose by € 74.3 million to € 1,422.3 million (31 December 2017: € 1,348.0 million). The increase is mainly attributable to the first-time consolidation of HHLA TK Estonia AS (formerly: Transiidikeskuse AS) and the associated increase in property, plant and equipment of € 62.3 million, as well as an increase in intangible assets (including goodwill) of € 19.3 million. Capital expenditure was offset by the scheduled depreciation of property, plant and equipment. Current assets decreased by € 50.9 million to € 436.4 million (31 December 2017: € 487.3 million). The decline in cash and short-term deposits of € 96.4 million (largely due to the acquisition of HHLA TK Estonia AS and the takeover of the remaining shares in METRANS a.s.) was offset by an increase in trade receivables of € 23.0 million, as well as an increase in other financial receivables of € 16.1 million.

On the liabilities side, equity rose by € 10.9 million to € 613.3 million compared to the year-end figure (31 December 2017: € 602.4 million). Net profit in the reporting period of € 108.8 million contributed to the increase. There was an opposing effect from payments of € 49.9 million to acquire the remaining shares in METRANS a.s. and the payment of dividends totalling € 52.6 million. The equity ratio increased to 33.0 % (31 December 2017: 32.8 %).

Non-current liabilities rose by € 24.9 million to € 1,018.7 million (31 December 2017: € 993.8 million). The increase is mainly due to a rise in non-current financial liabilities of € 20.5 million to €325.2 million, as well as the development of pension provisions (€ 6.9 million increase). Current liabilities decreased by € 12.4 million to € 226.7 million (31 December 2017: € 239.1 million), due primarily to the decrease in current financial liabilities of € 31.9 million and the reduction in other current provisions of € 10.3 million. There was an opposing effect from the increase in other liabilities of €17.5 million, as well as from an increase in trade liabilities of €15.2  million.

Investment Analysis

Capital expenditure in the first nine months of 2018 totalled € 86.3 million and thus fell below last year’s figure of € 90.2 million, which was characterised by postponed investments from previous years.

The procurement of wagons and locomotives at METRANS a.s. accounted for a major share of capital expenditure. Investments were also made in expanding infrastructure at the HHLA container terminals in the Port of Hamburg and in large-scale equipment for horizontal transport, as well as the migration of a new terminal operating system. In addition, a downpayment was made for new container gantry cranes at the Container Terminal Burchardkai (CTB). The Speicherstadt historical warehouse district was also developed further during the reporting period.

Liquidity Analysis

Cash flow from operating activities declined by € 43.8 million to € 177.8 million as of 30 September 2018 (previous year: € 221.6 million). This was largely due to an increase in trade receivables and other financial receivables.

Investing activities led to cash outflows of € 127.2 million (previous year: € 89.4 million). The increase in payment volumes of € 37.8 million was primarily attributable to the acquisition of all shares in HHLA TK Estonia AS, which totalled € 72.0 million excluding acquired cash and cash equivalents. This was offset by reduced investments in property, plant and equipment, as well as increased proceeds from short-term deposits.

Cash flow from financing activities was dominated by dividend payments, the acquisition of all minority interests in METRANS a.s., Czech Republic, and new loans.

Financial funds totalled € 183.8 million as of 30 September 2018 (30 September 2017: € 255.7 million). Including all short-term deposits, the Group’s available liquidity at the end of the third quarter of 2018 amounted to € 183.8 million (30 September 2017: € 275.7 million).