HAMBURGER HAFEN UND LOGISTIK AG Analyst conference on the 2023 financial year results
Hamburg, 21 March 2024
© Hamburger Hafen und Logistik AG
Agenda
01 At a glance
Angela Titzrath, CEO
02 Financial performance 2023
Annette Walter, CFO
03 Guidance 2024
Angela Titzrath, CEO
04 Questions & answers
Angela Titzrath, CEO
Annette Walter, CFO
21.03.2024 Analyst conference on the 2023 financial results
© Hamburger Hafen und Logistik AG
Disclaimer
The facts and information contained herein are as up to date as is reasonably possible and are subject to revision in the future. Neither the Company nor any of its parent or subsidiary undertakings nor any of such person's directors, officers, employees or advisors nor any other person makes any representation or warranty, express or implied as to, and no reliance should be placed on, the accuracy or completeness of the information contained in this presentation. Neither the Company, nor any of its parents or subsidiary undertakings nor any of their directors, employees and advisors nor any other person shall have any liability whatsoever for loss howsoever arising, directly or indirectly, from any use of this presentation. The same applies to information contained in other material made available at the presentation.
While all reasonable care has been taken to ensure that the facts stated herein are accurate and that the opinions contained herein are fair and reasonable, this document is selective in nature. Where any information and statistics are quoted from any external source, such information or statistics should not be interpreted as having been adopted or endorsed by the Company as being accurate.
This presentation contains forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which the Company operates. These statements generally are identified by words such as "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets" and similar expressions. The forward-looking statements, including but not limited to assumptions, opinions and views of the Company for information from third party sources, contained in this presentation are based on current plans, estimates, assumptions and projections and involve uncertainties and risks. Various factors could cause actual future results, performance or events to differ materially from those described in these statements. The Company does not represent or guarantee that the assumptions underlying such forward-looking statements are free from errors and the Company does not accept any responsibility for the future accuracy of the opinions expressed in this presentation. No obligation is assumed to update any forward-looking statements.
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2
HHLA's results burdened by economic weakness in 2023
Dividend policy confirmed; EBIT outlook 2024 of € 70 to 100 million
Market environment
At a glance
Port Logistics subgroup
FY 2023
- Continuing war in Ukraine, geopolitical tensions, stubborn inflation and rising interest rates continued to dampen purchasing patterns of consumers and industry and led to reduced trade volumes
- Container dwell times in the ports normalized
Major events
- MSC Group submitted voluntary public takeover offer for class A shares; tendered shares amounted of 10.1 % of class A share capital
- Closing of CSPL's minority shareholding in CTT
- Hamburg terminals: automation of block storage and development of AGV area on track
- Metrans expands its HHLA Pure network in Europe
Financial performance
- Container throughput down 7.5 %; container transport decreased by 5.4 %
- Revenue and EBIT impacted by drop in volumes and decline in storage fees
- Capex in line with planning to implement further automation of Container terminals
- Dividend proposal of € 0.08 per class A share
Throughput
5,917 k TEU
- 7.5 %
Revenue
- 1,408.9 m
- 8.6 %
EBIT margin
6.6 %
- 6.5 pp
ROCE
4.4 %
- 5.4 pp
Transport
1,602 k TEU
- 5.4 %
EBIT
- 92.9 m
- 53.9 %
Profit after tax and minorities
- 8.7 m
- 89.4 %
Operating cash flow
- 199.4 m
- 22.4 %
21.03.2024 Analyst conference on the 2023 financial results
© Hamburger Hafen und Logistik AG
3
Performance
Investing in future readiness and sustainable container business in Hamburg
Meeting the challenges and ensuring the future viability of HHLA's terminals in Hamburg
Capex 2018 - 2024 | |||||||
in € million | 360 - 410 | ||||||
214.9 | 207.4 | 292.8 | |||||
180.4 | |||||||
178.7 | |||||||
132.9 | |||||||
2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
WORKSHOP
CURRENT
TESTING AREA
21.03.2024 Analyst conference on the 2023 financial results
© Hamburger Hafen und Logistik AG
- Over the last 5 years, we invested more than € 1 billion in the Port Logistics subgroup and will keep investing according to plan
- Our capital expenditure focused on
- further automation of HHLA Container terminals in the Port of Hamburg
- the expansion of foreign terminals, especially PLT Italy (Trieste), and
- in the Intermodal segment on the expansion of the Group's own transport and handling capacities; i.e. hub terminals in Zalaegerszeg and Szeged (Hungary), takeover of Adria Rail
- Efficiency programme for the Container segment started in 2020 with clear focus on automation of block storages and horizontal transport from the quayside to yard at CTB:
- Up to date 19 storage blocks have been installed and put into operations, three more under construction
- workshop under construction
- AGV testing area has been set: first AGV has been delivered and is used for testing area
- two berths of ultra large vessel in place; one more to come
4
Revenue & EBIT impacted by falling volumes and decline in storage fees
Container throughput development in line with other European North range ports
Performance
Container
Container throughput | Revenue | ||
in thousand TEU | -7.5% | in € million | -18.0% |
6,396 5,917 | 864.2 | 708.8 | |||||
-4.2% | -17.3% | ||||||
1,527 1,462 | 211.1 | 174.6 | |||||
4Q22 | 4Q23 | 2022 | 2023 | 4Q22 | 4Q23 | 2022 | 2023 |
OpEx | EBIT and EBIT margin | -70.0% | |||||
in € million | in € million | ||||||
-6.4% | |||||||
157.3 | |||||||
706.9 661.6 | |||||||
-11.9% | -43.9% | ||||||
175.5 154.6 | 35.6 | 47.2 | |||||
20.0 | |||||||
16.9% | 11.4% | 18.2% | 6.7% | ||||
4Q22 | 4Q23 | 2022 | 2023 | 4Q22 | 4Q23 | 2022 | 2023 |
21.03.2024 Analyst conference on the 2023 financial results | |||||||
© Hamburger Hafen und Logistik AG |
- Overall container throughput down by 7.5 %
- Hamburg volumes declined by 6.3 % mainly due to volume decrease in the Far East shipping region, esp. China
- feeder ratio declined by 1.2 pp to 18.6 % due to lower Swedish and Polish traffic as well as sanctions-related absence of Russian volumes
- internationals down by 29.1 %, driven by closure of container terminal in Odessa (Ukraine)
- Total revenue declined due to lower volumes and reduced average storage fees, average revenue per TEU down by 11.3 %
- OpEx decreased by 6.4 % mainly driven by
- decline in personnel expenses due to drop in volumes and CTO closure
- reversal of other liabilities for ship delays and other reimbursements
- reduction of expenses for external maintenance services, consulting and insurance
- partially offset by increased operational costs for HHLA PLT Italy as well as integration of HHLA Personal Service unit into Container segment
- EBIT down accordingly to € 47.2 m
5
Economic slowdown led to moderate decline in transport volumes
Operational performance mainly burdened by lower volumes whilst rise in opex could be partly offset
Performance
Intermodal
Container transport | Revenue | ||||||
in thousand TEU | -5.4% | in € million | +4.2% | ||||
1,694 1,602 | 595.4 620.5 | ||||||
-11.4% | -5.7% | ||||||
428 | 379 | 164.1 154.7 | |||||
4Q22 | 4Q23 | 2022 | 2023 | 4Q22 | 4Q23 | 2022 | 2023 |
OpEx | EBIT and EBIT margin | -23.6% | |||||
in € million | +9.5% | in € million | 95.3 | ||||
500.1 547.6 | 72.9 | ||||||
+7.9% | -63.4% | ||||||
132.7 143.2 | 31.3 | ||||||
11.5 | |||||||
19.1% | 7.4% | 16.0% | 11.7% | ||||
4Q22 | 4Q23 | 2022 | 2023 | 4Q22 | 4Q23 | 2022 | 2023 |
- Transport volumes declined by 5.4 %
- rail transport fell by 3.1 % to 1,365 k TEU; all major routes were affected by the decline, particularly Polish traffic
- road transport down 16.9 % to 226 k TEU
- Revenue increased by 4.2 % due to
- price adjustments owing to increased energy costs
- higher share of rail transport
-
EBIT decreased against the background of lower transport volumes and increased operating expenses, e.g.
higher wages and the expansion of rail operations business
21.03.2024 | Analyst conference on the 2023 financial results | 6 |
© Hamburger Hafen und Logistik AG
Revenue development supported by new leasing company for intermodal sector
EBIT driven by favorable development of vehicle logistics and leasing activities
Performance
Logistics
Revenue | EBIT | ||||||
in € million | +0.8% | in € million | |||||
pos. | pos. | ||||||
77.6 | 78.2 | ||||||
0.7 | 1.4 | 0.6 | |||||
-7.8% | |||||||
20.8 | 19.2 | ||||||
-6.9 | |||||||
4Q22 | 4Q23 | 2022 | 2023 | 4Q22 | 4Q23 | 2022 | 2023 |
At-equity earnings | -2.2% |
in € million |
4.2 | 4.1 | ||
+27.4% | |||
1.6 | 2.0 | ||
4Q22 | 4Q23 | 2022 | 2023 |
- Increase in revenue from consolidated companies driven by new consolidated leasing company for the intermodal sector, which was able to more than offset lower revenue in the vehicle logistics, consultancy and digital services divisions.
- EBIT improved significantly year-on-year
- vehicle logistics and leasing activities for the intermodal sector contributed to the positive development
- previous year was burdened by an impairment of around € 4 m for activities related to the development of new growth areas
- At-equityearnings slightly under previous year
21.03.2024 | Analyst conference on the 2023 financial results | 7 |
© Hamburger Hafen und Logistik AG
Performance
Capex in line with planning to support further automation of container terminals
in € million | ||||||
Free cash: - 36.0 | ||||||
Increased financial indebtedness | ||||||
262.0 | of € 178.5 m and payments | |||||
62.6 | received in connection with | |||||
minority shareholding of Cosco | ||||||
D&A | ||||||
at CTT of € 47.1 m | ||||||
169.1 | ||||||
Financing cash flow | ||||||
177.8 | EBIT | 277.1 | 52.6 | 174.6 | ||
92.9 | ||||||
20.0 | 0.2 | 0.0 | ||||
21.7 | 20.0 | 54.4 | 174.6 | |||
157.8 | 217.3 | |||||
199.4 | -235.4 | 43.9 | ||||
47.8 |
Operating cash flow | Investing cash flow | ||||||||||||||
18.7 | |||||||||||||||
Financial | EBITDA | Working | Investments Divestments Changes in | Dividend | Payments | Redemption of | Redemption | Others | F/X | Financial | |||||
fund as | capital and | short-term | paid | to minorities | lease liabilities | of (financial) | effects | effects | fund as | ||||||
of 01.01. | other effects | deposits | loans | of 31.12. | |||||||||||
Financial fund | Short-term deposits | ||||||||||||||
21.03.2024 | Analyst conference on the 2023 financial results | 8 | |||||||||||||
© Hamburger Hafen und Logistik AG |
Performance
Net financial debt driven by capital structure to support investments
Sound equity ratio of 27 % while increasing financial indebtedness to fund capex programme
Changes in equity | Equity development | ||||||||||
in € million | in € million | 809 | |||||||||
809 | Equity ratio in % | Net debt / EBITDA | 738 | ||||||||
738 | |||||||||||
9 | 647 | ||||||||||
54 | 13 | 4 | 3 | 19 | |||||||
526 | 512 | 32.0 | |||||||||
27.3 | |||||||||||
25.1 | |||||||||||
21.9 | |||||||||||
21.5 | |||||||||||
3.9 | 5.0 | 3.5 | 3.2 | 5.5 | |||||||
Equity at | Net | Dividends Actuarial | Deferred | Others | Minorities Equity at | 2019 | 2020 | 2021 | 2022 | 2023 | |
1.1.2023 | profit | paid | gains | taxes | 31.12.23 | ||||||
Net debt | Pension provisions | ||||||||||
Lease obligations | |||||||||||
in € million | |||||||||||
Net financial debt | |||||||||||
1,395 | 1,356 | 1,339 | 1,441 | ||||||||
1,190 | |||||||||||
496 | 353 | ||||||||||
524 | 483 | 332 | |||||||||
721 | |||||||||||
773 | 737 | 764 | 733 | ||||||||
126 | 95 | 92 | 125 | 367 | |||||||
2019 | 2020 | 2021 | 2022 | 2023 | |||||||
21.03.2024 Analyst conference on the 2023 financial results | |||||||||||
© Hamburger Hafen und Logistik AG |
- Equity decreased mainly due to the distribution of dividends and adjustment item for put option
- Pension provisions increased moderately due to lower interest rates compared to previous year
- Net financial debt increased in view of borrowing of new loans amounting to € 178.5 m
- Dynamic gearing ratio of 5.5 reflects higher borrowing
9
Performance
HLHA confirms dividend policy and proposes 8 cents per class A share
70% | 65 | 66 | 66 | ||
54 | 52 | 50 | 52 | ||
50% | |||||
1.47 | 1.43 | ||||
1.34 | |||||
1.13 | |||||
1.02 | |||||
0.91 | 0.91 |
0.67 | 0.80 | 0.70 | 0.75 | 0.75 | ||
0.59 | ||||||
0.45 | ||||||
2016 | 2017 | 2018 | 2019 | 2020* | 2021 | 2022 |
- 2020: For calculation, result was adjusted for change in restructuring provision of € 43 million with impact on net income
- 2023: Dividend proposal
21.03.2024 Analyst conference on the 2023 financial results
© Hamburger Hafen und Logistik AG
67
0.12
0.08
2023**
Dividend development
- Cash dividend of 8 cents per dividend-entitled class A share
- Strategic payout ratio of 50 to 70 % of net profit after minorities confirmed
- Dividend yield of 0.5 % as of 31.12.2023
Earnings per share in €
Dividend in €
Payout ratio in %
Payout corridor
10
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HHLA - Hamburger Hafen und Logistik AG published this content on 20 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 March 2024 07:00:03 UTC.
