Investor Presentation Goldman Sachs European … European Small & Mid Cap Symposium - London, ......

1GS European Small & Mid Cap Symposium - London, 8 May 2014 © Hamburger Hafen und Logistik AGBerenberg & Goldman Sachs German Corporate Conference © Hamburger Hafen und Logistik AGBerenberg & Goldman Sachs German Corporate Conference © Hamburger Hafen und Logistik AGCommerzbank Sector Conference Week – August 2013 © Hamburger Hafen und Logistik AG

HAMBURGER HAFEN UND LOGISTIK AGInvestor Presentation

Goldman Sachs European Small & Mid Cap Symposium - London, 8 May 2014

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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.

By accepting this presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company’s business.

This presentation is not a prospectus and does not constitute an offer or an invitation or solicitation to subscribe for, or purchase, any shares of the Company and neither this presentation nor anything contained herein shall form the basis of, or be relied on in connection with, any offer or commitment whatsoever.

GS European Small & Mid Cap Symposium - London, 8 May 2014 © Hamburger Hafen und Logistik AG

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Company Profile and Strategy

Business Development

Financial Performance and Outlook

Agenda


4GS European Small & Mid Cap Symposium - London, 8 May 2014 © Hamburger Hafen und Logistik AG

A Leading Port Logistics CompanySegments of the listed Port Logistics subgroup

Container handling

Container transfer and storage

Value-added container services (e.g. repair, maintenance)

Operation of 4 container terminals, thereof 3 in Hamburg Altenwerder (CTA) Burchardkai (CTB) Tollerort (CTT) Odessa (CTO)

Relevant markets positions, i.e. ~ 75 % in the Port of Hamburg ~ 20 % in the North Range*

* Antwerp, Rotterdam, Bremerhaven, Hamburg

Container64 % of revenue FY13

Special seaport handling ofBulk cargo, Fruit, RoRo, ConRo

Consulting & training

Warehousing and contract logistics

Handling of cruise ships

Operation of multi-purpose terminal O’Swaldkai and a logistics centre in Hamburg

Leading market position in special handling in Hamburg

Excellent international consulting references

Logistics8 % of revenue FY13

Rail- and road-bound transport services into the ports’ hinterland

Loading/Unloading of carriers

Operation of inland terminals

Operation of two rail companies

Metrans, covering esp. Central Europe and German speaking markets

Polzug, covering Poland

and one trucking company (CTD)

Leading positions in the majority of markets

Intermodal28 % of revenue FY13



Business ModelGrowth potential and value creation based on vertical integration


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Cost leadership in Intermodal rail services due to high depth of value addedin the seaports’ hinterland network with own production systems

High level of automation, cutting-edge handling technology and innovative IT systems

Strong natural catchment area due to favourable geographic location of Hamburg as most easterly North Sea port which makes it the ideal hub for the entire Baltic region and for hinterland traffic to and from CEE


Critical mass (approx. 40 %) of HHLA’s volumes is O&D cargo bound to the Hamburg area


HHLA has a capacity target of 12 million TEU plus in place, well scalable on existing terminal facilities

Key Strengths

Intermodal

O&D cargo

Capacity reserves

Location

Technology

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Solid financial fundament

Long-term debt profile with low gearing ratio and equity ratio of around 35 %


Stable positive free cash and liquidity reserves of approx. € 200 million

Income-based dividend distribution policy between 50 and 70 % of the net profit

Generating of an above-average double-digit EBIT margin


Continuously earning a premium on long-term capital costs of 10.5 %

Financial Highlights

Cash

Payout ratio

Value

Balance sheet

EBIT margin


Current Challenges IAdjustment to changing sector conditions

Industrialisation of transport chainHigher volumes per call due to growing ship sizes and consolidation processes in shipping industry lead to increased demands on the efficiency of the entire transport chain

Enhancing the quality of handling services by foresighted implementation of state-of-the-art terminal equipment and technology

Automation for more speed, efficiency and reliability in container handling and onward transportation

Expansion of Intermodal network in order to raise the attractiveness of HHLA terminals by excellent hinterland connections


Current Challenges IIAdjustment to changing sector conditions

Overcapacities in industryOngoing excess carrying capacity of the global container ship fleet and further terminal expansion in the North Range despite restrained mid-term growth expectations for container throughput in the North Range

Demand-orientated investment strategy Ship-size related capex almost

completed Capex expected to go down to

maintenance level unless volumes pick up substantially

Investments in terminal expansion scalable / roll-out of new storage blocks in line with growth

Intermodal investments project-based

Expansion of Intermodal network in order to improve location quality as well as to enter into new markets

10

Well-positioned for a successful future development



Objectives and Perspectives

ON CONDITION OF NEAR-TERM DREDGING OF THE RIVER ELBE

Improved earnings power

Financial headroom for future development and attractive dividend policy

Capacity and productivity reserves to be realized with increasing utilisation

Optimising processes and increasing cost efficiency

Potential to outperform North Range container volume growth due to high attractiveness as a “location of choice” for covering CEE

Further gain of market share by Intermodal business

Potential to grow above average

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Agenda



GDP Development 2013

World + 3.0 %China + 7.7 %Eurozone - 0.4 %Central/Eastern Europe + 2.5 %Germany + 0.5 %World trade + 2.7 %

Trends and Challenges 2013Business Development

Economic momentum still restrained, competition remains tough

Container Throughput 2013 in the North Range

North Range - 0.5 %

Rotterdam - 2.1 %Hamburg + 4.4 % Bremen/Bremerhaven - 4.7 %Antwerp - 0.7 %

Source: IMF

Source: Drewry

Economic Environment Global economic growth stabilises at a low level

Modest development in HHLA’s key markets (Asia, Central and Eastern Europe)

Global container throughput only slightly growing faster than world economy (Drewry estimate for 2013: growth of 3.3%)

Sector Development Throughput slightly down in the North Range Growing number of ever-larger vessels Idle capacity at ports in the North Range

Hamburg continues to face infrastructural deficits(especially the delay in dredging the river Elbe,temporary restrictions on use of the Kiel Canal)

Only slight increase in European rail freight traffic


Market Positions Significantly ExpandedBusiness Development

Container Throughput HHLA terminals increase throughput

by 4.4 % to 7.5 million TEU Rise in feeder traffic to the Baltic Sea

(+ 8.3 %) and growth in Far East volumes (+ 6.3 %)

HHLA’s market share in the North Range rises to 20.4 %

Container Transport Volume increase of continued

operations by 18.0 % to 1.2 million TEU

Successful expansion of connections offered in Germany, Austria and Switzerland (D.A.CH. strategy)

Connections established with the Polish seaports

Volume gains in a stagnating market environment

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Agenda



Key FiguresBusiness development distorted by previous year’s realignment effects


* Retrospective restatement of the figures of 2012 resulting from application of IAS 19 R

Adjusted for the one-time effect of the Intermodal realignment in 2012:

- Revenue of continued operations largely in line with volume trend (+ 4.7% y-o-y)

- EBIT decrease considerably lower (- 5.1% y-o-y)

- Net profit after tax and minority interests remains almost flat y-o-y

HHLA Group Subgroup Port Logistics

in € million FY13 FY12* Change FY13 FY12* Change

Revenue 1,155.2 1,128.5 + 2.4 % 1,127.2 1,101.2 + 2.4 %

EBIT 158.0 186.0 - 15.0 % 144.3 172.8 - 16.5 %

Net profit after tax and minority interests 54.3 72.3 - 24.9 % 48.3 66.4 - 27.3 %

ROCE 11.6 13.6 - 2.0 pp – – –

Investments 114.9 196.5 - 41.5 % 101.2 186.5 - 45.7 %

16

117.3 118.8

132.0 139.45.7 %

3.1 %

5.7 %

1.3 %

371.9 393.1

359.9370.9

2012 2013

Operating Expenses


Personnel expenses

Cost of materials Mainly variable expenses Adjusted increase in line with volume trend Rise especially in the material-intensive

Intermodal segment

Personnel expenses Collective pay increases and additional operational

expenditure for peak load conditions Increase of headcount in the Intermodal segment

as a result of expanded operations

Other operating expenses Higher lease expenses for container-carrying

wagons and locomotives due to higher volumes in the Intermodal segment

Depreciation and amortisation Depreciation expenses on previous year’s level

Cost of materials

Other operating expensesDepreciation and amortisation

Throughput / transport growth: + 4.4% / + 18.0% Total operating expenses: + 4.2%

981.11,022.2in € million


Cost trend largely in line with volume development of continued operations

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Financial Position



Resilient financial foundation for a stable pay-out ratio

Equity as of 31.12.2013Free Cash Flow

in € million

2012 2013 2012 2013

Equity ratio in %in € million /

539.8

33.1 %36.3 %

572.9

Free cash flow up € 38.0 million at € 83.6 million

Liquidity reserves of € 199.9 million

45.6

83.6

Equity ratio up by 3.2 pp to 36.3 %

€ 0.65per

ClassA share

€ 0.45*per

ClassA share

68.4 % 65.3 %

Dividend / Payout Ratio

2012 2013

Dividend policy maintained since 2007

70 %

* Dividend proposal

50 %

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Business Forecast for 2014


Volumes Container throughput: slight increase on previous year

(2013: 7.5 million TEU) Container transport: moderate increase on previous

year (2013: 1.2 million TEU)

Revenue Slight increase on the previous year’s adjusted figure

(2013 adjusted: approx. € 1,140 million*)

EBIT EBIT in a range of € 138 million to € 158 million

(2013 adjusted: approx. € 154 million*)

Investments Investments in the region of € 160 million

(2013: € 115 million)

Global economy (GDP) 3.7 % Global trade 4.5 % Container throughput, global 4.3 % Container throughput, 1.0 %

Northern Europe Transport volume, Germany 1.9 %

Market Environment Group Performance

Source: IMF, Drewry, Federal Office for Freight Transport

* Due to the revision of IFRS 10 et seq. pro rata consolidation of joint ventures is no longer permitted from 2014 onwards. This change primarily affects the Logistics segment. The previous year’s figures have been adjusted to facilitate comparability.

Uncertainty surrounding the political situation in Ukraine and Russia

Increasing peak loads in all parts of the transport chain



Conclusion

Summary

Competitive vertical integrated business model

Leading market positions

High-quality service and technology level

Strong financial track record and high payout ratio

Favourable geographic location

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5

4

2

3

20

Appendix



Container Segment

Container throughput growth mainly driven by container traffic with Asia and transshipment volume to the Baltic rim

Further rise of volumes and gain of market share in Odessa

Dilutive effect on average revenue per box by additional growth in lower-margin feeder volumes (feeder ratio: 27.8 %)

Lower storage fees due to generally shorter container dwell times

Increasing number of ever-larger vessels led to ongoing additional operational expenses for the handling of peak loads aggravated by nautical restrictions

Productivity potential not realised due to capacity utilisation levels

January to December 2013

1 In thousand TEU

in € million 2013 2012 Change

Container throughput1 7,500 7,183 4.4 %

Revenue 711.7 697.5 2.0 %

EBITDA 225.3 234.6 - 4.0 %

EBITDA margin 31.7 % 33.6 % - 1.9 pp

EBIT 137.0 145.9 - 6.1 %

EBIT margin 19.2 % 20.9 % - 1.7 pp

Segment assets 922.3 933.1 - 1,2 %

Appendix

22


Container transport2

1,1721,172

1,2139933

- 3.318.03

%%

Revenue 314.5 299.7 4.9 %

EBITDA 43.9 59.5 - 26.2 %

EBITDA margin 13.9 % 19.8 % - 5.9 pp

EBIT 22.8 41.3 - 44.8 %

EBIT margin 7.3 % 13.8 % - 6.5 pp

Segment assets 297.0 284.6 4,4 %

Intermodal Segment

Transport volume based on the new ownership structure increased significantly by 18.0 % from 993 to 1,172 TTEU

Growth of services in the German-speaking areas as well as new rail connections with Polish seaports.

Opening of new hub-terminal in Ceska Trebova

EBIT temporarily burdened by start-up costs for new connections and new hub-terminal

Negative impact on EBIT due to flooding of the rivers Elbe and Danube and obligations from existing traction contracts

Revenue and earnings of continued operations developed positively and were largely in line with volume trend


1 No impact of Intermodal realignment on first quarter results 2012 2 In thousand TEU 3 Applying the new ownership structure

1


Appendix


Logistics Segment

Business activities developed diversely in the different areas

Strong increase in EBIT includes a one-off gain of € 5.4 million for the sale of a logistics facility

Most of this one-off gain was used for restructuring measures in project and contract logistics

Adjusted for these items, EBIT was slightly higher than in the previous year.



Revenue 91.6 91.9 - 0.3 %

EBITDA 10.2 8.0 26.5 %

EBITDA margin 11.1% 8.8% 2.3 pp

EBIT 7.0 4.3 64.1 %

EBIT margin 7.7 % 4.7 % 3.0 pp

Segment assets 43.9 53.8 -18,4 %

Appendix

24

Challenges for the Logistics Chain are Growing

Record Throughput per CallUp to 12,000 TEU are currently discharged from resp. loaded onto a single vessel

Extreme Pressure on Storage SpaceThis volume is equivalent to over 40 % of the total storage capacity (CTA)

High Demands on Intermodal SystemsVolume is distributed to an average of 12 feeder ships, 60 block trains and approx. 3,000 trucks

Delay of VesselsBurdens caused by pile-up of export containers on the terminals due to substantial delays

Peak loads in throughput and transport become commonplace


Appendix

25

Development of Alliances in Container Shipping Concentration in the shipping industry substantially increased


Source: Alphaliner

MaerskMSCCMA CGMGrand Alliance= Hapag-Llyod, OOCL, NYK LineNew World Alliance= APL, MOL, Hyundai“Green Alliance”= Cosco, K Line, Yang Ming, HanjinEvergreenOthers

P3 Network

G6 Alliance

CKYHE

Others

Announced to start in H2/2014*

Formed in 2012

Formed in 2014

2011 2014

Build-up of alliances and cooperationstargeting at- an improvement of load factor and

- a decrease of slot costs

Deployment of largest vessel sizes andfocus on calls at gateway ports (hubs)

Around 90 % of shipping capacity in Far-East – Europe services is

expected to be run by three operators, approx. 47 % by P3.

Capacity breakdown on Far-East – Europe services by shipping line

* Subject to approval by antitrust authorities

For the time being effects for HHLA are not assessable due to pending approvals and limited

visibility on future service structures.

Appendix

26

Storage yard

Illustration of Terminal CapacityThroughput capacity mainly driven by yard utilisation


Pre- and onwardcarriage

Berth

Ship size development boosts peak load conditions

Dwell time(average, in days)

100 %

Utilisation Capacity

Status quo(2013)

0 %

Economic Optimum

Storage capacity is determined by

volume (per call) and dwell time (in days)

Synchronised shuttle train services depend on a high degree of punctuality of all links of the transport chain

Potential to compensate for delays is limited

Appendix


BALTIC SEA / EASTERN EUROPE

Dense feeder connections via the

Kiel canal

CENTRAL ANDEASTERN EUROPE

Extensive rail network with own block trains and inland terminals

FAR EAST / ASIAStrong and

long-standing trade relations

Hamburg: interface with network

Hamburg links two of the most important emerging markets in the world economy: Asia and Eastern Europe

Potential to grow above-average

Cost advantages due to central location deep inland

Highly efficient infrastructure with excellent hinterland connections to Central and Eastern Europe

Favourable geographic location of Hamburg currently burdened by frequent restrictions to operations due to pending infrastructure projects, esp. the dredging of the river Elbe

Container throughput 2013 of HHLA by region

Connecting Emerging MarketsFavourable geographical location as most easterly North Sea port

Appendix


High density of port services along the Northern European coast (“North Range”)

Strongest competition between the major North Range ports, i.e. Hamburg (HHLA’s main hub), Bremen/Bremerhaven (Bremen ports), Rotterdam and Antwerp

Other handling sites are considerably smaller in terms of local freight volume and size of their catchment areas

Container throughput up 4.4 % to 7.5 million TEU outperforming the declining market trend in the North Range (+1.0 %)

HHLA market share in Hamburg approx. 80 % and approx. 20 % in the North Range

Competing Ports of the North RangeContainer throughput and market share in 2013

NORTH SEA

WILHELMSHAVEN<0,1 million TEU (Start: Oct. 2012)

0.2 % market share

ROTTERDAM11.6 million TEU (- 2.1 %)31.0 % market share

ANTWERP8.6 million TEU (- 0.7 %)22.9 % market share

BREMEN/BREMERHAVEN5.8 million TEU (- 4.7 %)

15.6 % market share

HAMBURG9.3 million TEU (+ 4.4 %)

24.7 % market share

KIEL CANAL

DENMARK

GERMANY

NETHERLANDS

BELGIUM

NORTH RANGE PORTS IN TOTAL37.4 million TEU (- 0.9 %)

ZEEBRUGGE2.0 million TEU (3.7 %)5.4 % market share

HHLA (incl. Odessa)7.5 million TEU (+ 4.0 %)

Appendix


Growth in Ship SizesHandling of ultra large container vessels (ULCV) require extra effort

Implications► Nautical restrictions tightened by increasing

number of ULCV because of more width and draught

► Peak load conditions due to narrower time windows require more staff and equipment

► Capex requirements (suitable quay walls, gantry cranes etc.)

Counteraction► Enhancing service quality by continuous

investment in technology and efficiency► Expanding Feeder Logistics Centre (FLZ)

to optimise and accelerate feeder handling► Raising attractiveness of HHLA terminals

by expanding hinterland network

Ship size development at HHLA container terminals

Tripling of ULCV within three years

Source: alphaliner, Dec. 2013

ULCV fleet worldwide and order book until 2015 in service on order

Plus of more than 50 % within three years

Appendix

30

Capacities and Expansion in the North RangeFurther increase of terminal capacities despite overcapacities in the market

NORTH SEA

in million TEU Current capacity

Planned capacity1 in million TEU Current

capacityPlanned

capacity1

Rotterdam 15.5 20.6 Zeebrugge 2.7 3.3

Antwerp 14.5 14.9 Wilhelmshaven 1.0 1.6

Hamburg 14.2 14.5 London Gateway 1.6 1.6

Bremen ports 8.5 8.5 Gdansk 1.0 4.0

NORTH RANGE PORTS

Source: Ocean Shipping Consultants (2012)1 First stage of concrete short-term expansion programmes (2014/2015)

Capacity potential to 2025 in million TEU

56.4

79.0

2013 potential

Capacity development within the North Range in 2014/2015


Appendix


Short Ways – Less CostsHamburgs location offers cost benefits compared to other Nord Range ports

Appendix

Shanghai <> Hamburg (one-way: ~ 20,375 km)

+ 70 % of costs for about 97 % of total distance

No differentiation in freight rates between North Range ports

Hamburg <> Prague (one-way: ~ 690 km)

+ 30 % of costs for about 3 % of total distance

Clear differentiation between North Range ports


HHLA in the Port of HamburgAppendix

HHLA CONTAINER TERMINAL

BURCHARDKAI


ALTENWERDER

HHLA LOGISTICS

HANSAPORT


TOLLERORT

HHLA REAL ESTATE

FISCHMARKT

HHLA REAL ESTATE

SPEICHERSTADT

HHLA LOGISTICS

CRUISE CENTERHHLA LOGISTICS

ÜBERSEE-ZENTRUM

HHLA LOGISTICS

O’SWALDKAI


Container Terminal ActivitiesIllustrative process chain – Container Terminal Altenwerder (CTA)

Appendix

Ship-to-shore crane

Rail-mounted gantries

Truck loading area

Vessel Surface transport by AGV

Container storage area

On-dock rail facility


IT-based control systemEnables an integrated terminal management in 24/7 shifts

State of CTB Modernisation4 new large ship berths, 8 automated storage blocks (aerial view from late 2012)

Tandem gantry cranesCan handle all sizes of ultra large container vessels up to 18,000 TEU

Container rail head8 tracks, each over 700 mlong, allow completeblock trains

Automatedstorage blocksBoosting capacity with high-density storage system

Appendix


Elbe Waterway AdjustmentAdministrative steps by the public authorities in charge

Adjustment of navigation channel

EU statement on council directive“Flora Fauna Habitat”

Finalplan approval

EuropeanCommission

Federal Water and Shipping Authority

Dredging start subject to main proceedings on legal objections

Federal AdministrativeCourt

Enabling a higher load factor, extended time slots and more flexibility for mega carriers

Nov 2011 Apr 2012 Beginning of proceedings 15 July 2014

Initiation ofplan approvalprocess

Sep 2006

Federal Water and Shipping Authority

► Technical planning ► Environmental studies ► Public hearings

City State of Hamburg

&

14.50 m tidal dependent / 13.50 m tidal independent, widening boxes

Appendix

36

14 May 2014Interim Report January-March 2014

19 June 2014Annual General Meeting

14 Aug 2014Interim Report January-June 2014

13 Nov 2014Interim Report January-September 2014

Financial Calendar IR Contact

Phone: +49 40 3088 3100

Fax: +49 40 3088 55 3100

E-mail: [email protected]

Web: www.hhla.de


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