HAMBURGER HAFEN UND LOGISTIK AKTIENGESELLSCHAFT ANNUAL REPORT 2008 SEGMENTS HHLA CONTAINER HHLA INTERMODAL HHLA’s comprehensive container handling activities are HHLA’s intermodal companies offer a comprehensive pooled in the container segment. With its terminals in Ham- transport network by rail, road and waterway, connecting burg and Odessa, this handled more than 7 million standard the German seaports with their hinterland in Europe. The containers in 2008. Technical innovations and automated main transport focus lies in Central and Eastern Europe. The work processes make for high productivity and shorter ships’ HHLA network handled over 1.8 million standard contain- lay times. The three Hamburg HHLA Container Terminals ers in 2008. The rail companies TFG Transfracht (Germany, Altenwerder, Burchardkai and Tollerort thus secure the out- Austria, Switzerland), Metrans (Czech Republic, Slovakia, standing importance of the Port of Hamburg as a logistics Hungary) and Polzug (Poland, CIS states) have specialized hub between overseas and the economies of Central and very successfully in their regional markets, in each of which Eastern Europe. Moreover, specialized service providers offer they are the market leaders for container traffic by rail. CTD comprehensive services, from repairs or warehousing empty distributes containers by truck in the Hamburg metropolitan containers, to handling project cargo and heavy loads. With region and North Germany as well as over long distances. its container terminal in Odessa Commercial Seaport, HHLA The Baltic Region is served by HHLA subsidiary combisped operates one of the leading transhipment facilities on the via the landbridge from Hamburg to Lübeck and Container Black Sea. In the coming years a highly flexible modernization Terminal Lübeck (CTL). From Lübeck CTL organizes feeder- and expansion programme will increase performance and ship transport with Finland and Russia. HHLA will systemat- capacity of HHLA’s terminals based on the actual needs. ically extend its network in the coming years. HHLA LOGISTICS HHLA REAL ESTATE Consulting, special handling and contract logistics: the Project and portfolio development, city district manage- HHLA companies in the logistics segment pool a wide range ment and active shaping of urban structural change: the Real of services that typify the universal Port of Hamburg. Unikai Estate segment carries out projects and lets office, com- Lagerei & Spedition is the competence centre for vehicle mercial and industrial property in highly desirable Hamburg logistics in the Port of Hamburg and additionally handles business locations. At the focus of attention is the unique cruise ships at Hamburg Cruise Center. The Frucht- und backdrop of Hamburg’s Speicherstadt or historic warehouse Kühlzentrum is the German market leader for fruit handling, district that HHLA is carefully developing into a modern as Ulrich Stein GmbH is for fruit forwarding. With Hansaport, quarter. In the exemplary modernized area, media, catering HHLA is involved in the biggest, highly automated German and fashion firms find inspiration. Cultural attractions like terminal for ore and coal. HHLA Logistics stands for high- the “Dungeon”, “Miniature Wonderland” or “Dialogue in the value contract and warehousing logistics and runs Logis- Dark” attract millions of visitors. The traditional business, tikzentrum Altenwerder in close proximity to HHLA Container like coffee roasting, quartermasters and carpet wholesalers Terminal Altenwerder. HHLA’s competence in the developing give the warehousing complex, standing under preservation port technology and concepts, and planning efficient trans- order a unique flair. On the northern banks of the Elbe, HHLA port chains, enjoys worldwide success. HPC Hamburg Port preserves the Hamburg-Altona Fischmarkt, a part of the tra- Consulting and its subsidiaries Uniconsult and HPTI impart ditional fisheries business, now embedded in a local devel- and market this know-how. opment with restaurants and modern office buildings. HHLA key figures HHLA Group 2008 2007 Change Revenue and earnings Revenue € million 1,326.8 1,180.0 12.4 % EBITDA € million 456.8 378.7 20.6 % EBITDA margin % 34.4 32.1 2.3 PP EBIT € million 355.1 287.6 23.4 % EBIT margin % 26.8 24.4 2.4 PP Profit after tax € million 217.5 152.0 43.1 % Profit after tax and minority interests € million 160.4 111.3 44.1 % Balance sheet and cash flow statement Total assets € million 1,612.5 1,483.8 8.7 % Equity € million 682.6 569.5 19.9 % Equity ratio % 42.3 38.4 3.9 PP Cash flow from operating activities € million 341.9 246.7 38.6 % Investments € million 259.4 194.8 33.1 % Employees Employees at year-end # 5,001 4,565 9.6 % Performance data Container throughput thousand TEU 7,317 7,229 1.2 % Container transport1 thousand TEU 1,841 1,651 11.5 % Subgroup Port Logistics 2, 3 Subgroup Real Estate 2, 4 2008 2007 Change 2008 2007 Change Revenue € million 1,299.2 1,152.4 12.7 % 32.6 30.8 5.8 % EBITDA € million 439.4 364.6 20.5 % 17.6 14.1 25.0 % EBITDA margin % 33.8 31.6 2.2 PP 54.0 45.7 8.3 PP EBIT € million 341.3 277.0 23.2 % 13.7 10.3 32.2 % EBIT margin % 26.3 24.0 2.3 PP 41.9 33.6 8.3 PP Profit after tax € million 211.7 149.1 41.9 % 5.6 4.1 34.9 % Profit after tax and minority interests € million 154.5 108.4 42.5 % 5.6 4.1 34.9 % Earnings per share, basic €/share 2.21 1.60 38.1 % 2.15 1.04 106.7 % Earnings per share, diluted €/share 2.21 1.60 38.1 % 2.15 1.04 106.7 % Dividend 5 €/share 1.00 0.85 17.6 % 1.00 1.00 – 1 The transport volume was fully consolidated. 2 Before consolidation between subgroups. 3 Listed A shares. 4 Non-listed S shares. 5 2008: Dividend proposal. MISSION THE WORLD IS GR OWING TOGETHER. Goods flows and their accompanying data are interlinking our world to an increasing extent. Hamburger Hafen und Logistik AG (HHLA) is actively and far-sightedly shaping this process at one of the interfaces of the world economy. With its efficient container ter- minals, high-performance transport systems and comprehensive logistics services, HHLA constitutes a complete network between the overseas port and the European hinterland. Logistics chains are therefore created that conserve the climate and promote development in the world economy. HHLA ANNUAL REPORT 2008 3 CONTENTS CONTENTS INTRODU CTION CORPORATE GOVERNANCE Foreword 6 Report of the Supervisory Board 48 Chronology 8 Corporate Governance at HHLA 52 The share 10 Remuneration report 57 Board members and mandates 60 STRATEGY AND PERFORMANCE FINANCIAL INFORMATION Strategy All set for the future 14 Container The mega-ships are coming 20 Contents 65 Intermodal The network is growing 26 Group management report 67 Logistics Precision work for exports 30 Consolidated financial statements 113 Notes to the Group financial statements 131 Annual financial statement 179 RESPONSIBILITY Auditors’ report 182 Sustainability On course 34 Staff Thinking about tomorrow 36 MISCELLANEOUS Environment Climate protection on eight wheels 38 Business New life within old walls 40 Terminology 184 Society At close quarters with globalization 44 Financial calender 186 HHLA ANNUAL REPORT 2008 5 FOREWORD The HHLA Executive Board (from l. to r.): Gerd Drossel, Dr. Stefan Behn, Klaus-Dieter Peters, Dr. Roland Lappin, Rolf Fritsch. FOREWORD HHLA Group attained its ambitious goals in 2008, setting new records for rev- enue and result. This is all the more remarkable since the economic environment became increasingly overcast in the course of the year. In the fourth quarter of 2008 the repercussions of the financial crisis on the real economy also hit global transport and logistics chains with full force. That became apparent in the distinctly downward trend in volumes at the end of the year. The never- theless fine result for the year as a whole was primarily achieved through the optimization of workflows and processes, increasing the depth and volume of services we provide, as well by once again boosting efficiency and productivity. Our investments in modernization in recent years substantially contributed to this favourable trend. Crucial for these successes were once again the continued motivation and dedication of our staff. Their willingness to perform and their flexibility are a decisive prerequisite if we are to discharge the ever more demanding tasks in transport and logistics chains. With increasing utilization of IT and automa- tion, experience and the ability to judge are factors central to success. One indicator of the staff’s strong identification with the company was the high take-up rate of 55 percent for the scheme allowing them to purchase HHLA shares at a concessionary price in an already difficult stock exchange market at the end of 2008. 6 HHLA ANNUAL REPORT 2008 FOREWORD Whereas in recent years foresight in catering for high growth rates represented the greatest challenge for the development of the company, today the situation is considerably more complex: the world economy and our direct market en- vironment are in a serious recession, the extent of which nobody is currently able to estimate. At the same time, much suggests that the long-term trend towards globalization will remain uninterrupted, with constantly stronger intermeshing of production and consumption in the world economy, as well as the related growth in world goods flows. For us, this means that we must adjust to distinct falls in demand in the short term, without however losing sight of the prospects for growth in the medium and long term. Today HHLA is well prepared in several respects to meet this double challenge. For a start, our solid balance sheet structure with its high equity ratio forms a fine foundation.