Financial position

Balance sheet analysis

Compared with year-end 2018, the HHLA Group’s balance sheet total grew by a total of € 679.7 million to € 2,652.6 million as of 30 September 2019 (31 December 2018: € 1,972.9 million).

On the assets side of the balance sheet, non-current assets rose by € 666.9 million to € 2,113.8 million (31 December 2018: € 1,446.9 million). This was primarily due to effects from the initial application of IFRS 16 amounting to € 571.2 million (primarily attributable to rights of use of € 542.8 million and deferred taxes of € 28.4 million). Current assets increased by € 12.8 million to € 538.8 million (31 December 2018: € 526.0 million). This was largely attributable to the increase in cash, cash equivalents and short-term deposits of € 18.9 million.

On the liabilities side, equity fell by € 47.7 million to € 567.1 million compared to the year-end figure (31 December 2018: € 614.8 million). The decrease was largely due to the effects of the initial application of IFRS 16 amounting to € 58.5 million, as well as the payout of dividends amounting to € 62.7 million and interest rate adjustments to pension provisions. Profit for the period under review of € 111.5 million had an opposing effect. The equity ratio decreased to 21.4 % (31 December 2018: 31.2 %).

Non-current liabilities rose by € 690.5 million to € 1,805.2 million (31 December 2018: € 1,114.7 million). This increase is largely due to the effects of the initial application of IFRS 16 amounting to € 589.4 million. Primarily as a result of the interest rate adjustments, pension provisions increased by € 76.8 million compared to 31 December 2018. Current liabilities rose by € 36.9 million to € 280.3 million (31 December 2018: € 243.4 million), also primarily due to effects from the initial application of IFRS 16 amounting to € 40.3 million, as well as to an increase in other liabilities. Opposing effects reduced current financial liabilities.

Investment analysis

Capital expenditure in the reporting period totalled € 156.8 million, well above the prior-year figure of € 86.3 million. The expansion of the terminal network and the acquisition by METRANS of container wagons and locomotives, as well as the procurement of storage cranes and large-scale equipment for horizontal transport at the HHLA container terminals in the Port of Hamburg, accounted for a major share of capital expenditure in the first nine months of 2019. Furthermore, 50.1 % of shares in Bionic Production AG (after change in legal status: Bionic Production GmbH) were acquired.

Liquidity analysis

Cash flow from operating activities rose by € 82.3 million to € 260.1 million as of 30 September 2019 (previous year: € 177.8 million). The reasons for this were the lower increases in trade receivables and current financial assets compared to the prior-year period. Increased depreciation and amortisation as a result of the initial application of IFRS 16 and the improvement in EBIT also led to an increase in operating cash flow.

Investing activities led to cash outflows of € 117.5 million (previous year: € 127.2 million). This was largely due to payments for short-term deposits. Furthermore, payments for investments in property, plant and equipment were also higher than in the previous year. Payments for company acquisitions in the previous year had an opposing effect due to the acquisition of all shares in HHLA TK Estonia AS, Tallinn, Estonia.

Cash flow from financing activities was up € 23.6 million on the prior-year figure. In contrast to same period last year, no payments were received from the take-up of loans in the reporting period. As a result of the initial application of IFRS 16, there were higher payments for the redemption of lease liabilities compared with the previous year. Furthermore, the increased dividend payment as compared with 2018 led to higher cash outflows. There was an opposing effect from the payment made to acquire all minority interests in METRANS a.s., Prague, Czech Republic in the previous year.

Financial funds totalled € 252.7 million as of 30 September 2019 (30 September 2018: € 183.8 million). Including all short-term deposits, the Group’s available liquidity at the end of the third quarter of 2019 amounted to € 292.7 million (30 September 2018: € 183.8 million).