HAMBURGER HAFEN UND LOGISTIK AG

Transcription

1 HAMBURGER HAFEN UND LOGISTIK AG Investor Presentation 17th German Corporate Conference Frankfurt, 15 January 2018

2 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. 2

3 Agenda Company Profile and Strategy Business Update and Financial Performance Outlook 2017 Appendix 3

4 A Leading Port and Transport Logistics Group Segments of the listed Port Logistics subgroup Company Profile and Strategy Vertically integrated all-purpose port operator with approx. 18 % market share in the North Range (German + Benelux North Sea ports) Container segment 4 Container terminals: 3 x Hamburg (CTA, CTB, CTT) & 1 x Odessa (CTO) Container handling & transfer and storage Value-added container services (e.g. repair, maintenance) Revenue 2016 Share 695 million 61 % Intermodal segment Rail- and road-bound transport services into the ports hinterland Loading / Unloading of carriers Operation of 13 inland terminals Revenue 2016 Share 390 million 34 % Logistics segment Auxiliary port services within the strategy to be an all-purpose port operator Bulk cargo, fruit, RoRo / ConRo Port consulting & training Revenue 2016 Share 55 million 5 % 4

5 Favourable Geographical Location of Hamburg Still a hub for the major economies of Asia and CEE Company Profile and Strategy BALTIC SEA / SCANDINAVIA Sea-bound container throughput in Hamburg 2016 by region 52% Asia 12% Baltic Sea 11% Scandinavia 8% North America 7% Latin America 6% Rest of Europe 3% Africa 1% Other countries Facts about the Port of Hamburg Germany s largest logistics hub Europe s largest railway port with dense rail network to CEE and dense feeder network to the Baltic Sea Cost advantages for shipping lines due to central location deep inland Well balanced import/export flows Attractive cargo mix Challenges Potential ASIA / FAR EAST CENTRAL AND EASTERN EUROPE Start of the highly needed Elbe waterway adjustment Underutilized capacities in most North Range ports Planning approval for the Elbe dredging was confirmed by the Federal Administrative Court but needs to be revised Adjustment of the waterway enabling a higher load factor, extended time slots and more flexibility for handling of ULCV s Recovery of the Russian economy 5

6 Advanced Terminal Technology High automation level with mega-carrier berths in operation Company Profile and Strategy HHLA in the Port of Hamburg Market share of 79 % in Hamburg and 18 % in the North Range (9M17) State-of-the-art handling technology, innovative IT systems and a high level of automation Three fully equipped berths for the latest generation of ULCV s already in operation at the Container terminals Burchardkai (CTB) and Tollerort (CTT) Further rollout of additional automated block storage capacities at CTB On-dock railway stations at all facilities to handle block trains to up 700 metres Optimised traffic coordination for an improved cargo flow and terminal access 6

7 Focus on Client Needs: Mega Carrier Ready Investments in terminal expansion and process optimisation continued Company Profile and Strategy HHLA Container Terminal Burchardkai (CTB) Roll-out of 4 automated storage blocks almost completed HHLA Container Terminal Tollerort (CTT) 5 Container gantry cranes for ULCV s Process optimisation Introduction of a trucking appointment system as part of the Fuhre 4.0 measure HVCC coordinates feeder vessels (FLZ), ocean-going vessels (NTK) and barges RaMoNa Coordination and cooperation in shunting operations within the port of Hamburg HHLA Container Terminal Altenwerder (CTA) Extension of the on-dock railway station from 7 to 9 tracks 7

8 Focussed Capex for Higher Value Added Approx. 253 million investment in own assets since 2012 Company Profile and Strategy Hub and inland terminals in the hinterland Multi-system locomotives and shunting engines ,500 Own designed light-weighted wagons Investments in million 46,9 12,0 52,3 77,1 44,1 20,5 Focus of investments in 2017 on commissioning the inland terminal in Budapest as well as the purchase of locomotives and wagons in line with transport volume development M17 8

9 Intermodal Network Company Profile and Strategy Coverage and high capacity utilisation matter as important prerequisite for growth going forward Four hub terminals in the Czech Republic, Slovakia and Hungary Six inland terminals in the Czech Republic, Slovakia and Austria Around 450 regular train connections per week Independent services in the D-A-CH region since : Integration of METRANS Polonia (former POLZUG) Further targets: Increasing the frequency of existing connections / providing new profitable connections on demand 9

10 Successfully Implemented Diversification Strategy Intermodal segment contributes significantly to earnings and stability of the subgroup Company Profile and Strategy Transport volume in TTEU 1,172 CAGR 6.3 % 1,283 1,318 1,408 Revenue in million 314,5 CAGR 7.4 % 351,5 364,0 390,1 Above-average transport volume growth since 2013 in a highly competitive market Revenue increased even above transport volume growth as a result of longer transportation distances and an increased rail share EBIT / EBIT margin in million / in % 22,8 27,3 7,3 7,8 55,2 55,9 15,2 14, Segment assets / ROCE in million / in % 297,0 329, ,2 405, Since 2015 the operating result (EBIT) and ROCE almost doubled compared to prior years and significantly outperformed volume and revenue growth Strategy decision to invest in own locomotives (2015) and to enlarge the fleet of light-weight wagons is a prerequisite to boost utilization and efficiency 2016 EBIT negatively affected by oneoff expenses of 7.2 million; without these one-off expenses EBIT growth in 2016 was again clearly above transport volume and revenue growth 10

11 Financial Stability Solid financial foundation Company Profile and Strategy Equity development / Equity ratio in million Ø Capital employed / ROCE in million Profit after tax and minorities / EPS in million 572,9 517,0 542,5 528, , , , ,4 48,3 52,3 58,9 63,7 37% 32% 34% 32% Equity ratio 11,8% 13,6% 12,4% 12,8% ROCE 0,69 0,75 0,84 0,91 Earnings per share Net financial debt (excl. pensions) in million 243,2 0,9x 191,7 0,7x 222,4 0,9x 173,8 0,7x Net debt / EBITDA Self-funded investments in million 177,3 218,4 74,4 70,5 Operating cash flow Investing cash flow (without proceeds from short-term deposits) 186,8 146,3 218,7 101,8 Dividend development 0,45 0,52 0,59 0,59 65% 70% 70% 65% 2,5% 3,0% 4,2% 3,3% Pay-out ratio Dividend yield per

12 Agenda Company Profile and Strategy Business Update and Financial Performance Outlook 2017 Appendix 12

13 Business Environment Positive container throughput development Business Update and Financials Macroeconomic development Global economy: Positive expectations for 3Q17 with positive momentum from advanced and developing economies 1 China: Continued stable GDP growth of 6.8 % expected in 3Q17 2 Russia: Economic recovery continues on a moderate level 3 Ukraine: Dynamics still burdened by political conflicts (1H17: +2.4%) 3 World trade is supposed to gain further momentum in Q3 1 Sources: 1 IMF World Economic Outlook Update October 2017; 2 Chinadaily Press release ( ); 3 World Bank Ukraine Monthly Economic Developments October 2017 Sector development Global container throughput: Drewry expects an upturn of 5.7% in 3Q17 China: Container volumes stabilizes on a high level of 6.9% in 3Q17 North-West Europe: After a comparably weak Q217 with a growth of +2.0% y-o-y, a recovery of dynamics at 3.4% in 3Q17 is anticipated Scandinavia/Baltic region: With 11.1 % in 3Q17 again much stronger than initial estimates Source: Drewry Maritime Research Container Forecaster Q3/2017, October

14 Significant Growth in Revenue and Strong Results Financial Highlights 9M 2017 of Port Logistics subgroup Business Update and Financials Revenue million % EBIT million % EBIT margin 15.5 % pp Profit after tax and minorities 72.1 million % ROCE 16.5 % pp Operating Cash Flow million % 14

15 Throughput and Transport Development Container throughput as well as container transport continue strong volume development Business Update and Financials Container throughput in thousand TEU % Throughput growth was mainly driven by positive effects from the newly aligned service structures of the shipping lines Particularly far east volumes (+ 17.3% y-o-y) and feeder volumes ( % y-o-y) contributed to strong rise in throughput Hamburg recorded a rise of 11.3 % 3Q16 4Q16 1Q17 2Q17 3Q17 Odessa on previous year s level Container transport in thousand TEU % Substantial growth of transport volume continued Growth was driven by rail transportation (+ 5.4 % y-o-y) as well as by road transportation ( % y-o-y) due to stronger container volume in the Hamburg area 3Q16 4Q16 1Q17 2Q17 3Q17 15

16 Container Segment EBIT and revenue up due to substantially higher throughput volume Business Update and Financials Container throughput 9M16 9M % TEU '000 TEU '000 Revenue 9M16 9M % 512,7 563,6 104,1 103,4 m /TEU /TEU m Revenue almost in line with volume development Average Revenue per TEU driven by temporarily higher storage fees, but an increased feeder ratio of 24.9 % (9M16: 23.5 %) diluted the metric slightly Development of operational expenditure (incl. D&A) well below volume and revenue growth OpEx 9M16 9M17 EBIT 9M16 9M % % 458,4 426,1 105,2 86,6 Peak load conditions limited P&L-effective economies of scale The operating result (EBIT) clearly outperformed volume and revenue growth and increased substantially against previous year 86,5 84,1 17,6 19,3 EBIT margin increased to 18.7 % accordingly (9M16: 16.9 %) m /TEU /TEU m m /TEU /TEU m 16

17 Intermodal Segment Business Update and Financials Superior EBIT-level sustained, although impacted by cyclical maintenance and changed transport mix Container transport 9M16 9M % TEU '000 TEU '000 Revenue 9M16 9M % 311,8 289,5 m m Revenue increased slightly above transport growth mainly due to longer transport distances Opex (incl. D&A) impacted by cyclical maintenance works, an uneven mix of import and export volumes and changes in the transport mix as well as ramp-up costs for the new hub in Budapest Superior EBIT-level sustained OpEx 9M16 9M17 EBIT 9M16 9M % % 55,4 256,4 239,5 50,0 EBIT margin progression: outstanding level of 17.8 % (9M16: 17.3 %) m m m m 17

18 Logistics Segment EBIT improved after termination of project and contract logistics activities Business Update and Financials Revenue 9M16 9M17-7.8% 40,5 37,4 m m EBIT 9M16 9M17 1,3 m m -2,6 pos. At-equity earnings 9M16 9M % Subdued business development in the first three months was followed by an upturn in the second and third quarter Revenue declined mainly due to the termination of project and contract logistics But discontinuation led to an improved EBIT of the Logistics segment due to the elimination of losses resulting from project and contract logistics Prior-year s EBIT include one-off restructuring expenses of 14.9 million in Q2 and approx. 15 million one-off gain in Q3 3,0 3,3 At-equity earnings increased substantially mainly due to a positive development of bulk cargo handling m m 18

19 Earnings Bridge Net profit increased substantially mainly due to improved operating result Business Update and Financials in million, figures of Port Logistics subgroup (change vs. 9M16) (+ 0.3) (- 6.2) EPS % (8.8) 72.1 At-equity earnings clearly above previous year Positive development of F/X effect (+ 3.2 m y-o-y) led to improved reduced financial expenses Effective tax rate (excluding atequity earnings) at 26.1 % Minorities % % y-o-y % EBIT At-equity earnings Net financial expenses Tax Minorities Net profit (6.8) 19

20 Agenda Company Profile and Strategy Business Update and Financial Performance Outlook 2017 Appendix 20

21 Macroeconomic and Sector Outlook Business Update and Financials Macroeconomic forecast remains stable throughput expectation for 2017 with positive dynamics GDP World % GDP China % World trade % GDP Russia % Macroeconomic outlook Global growth dynamics stabilized on a sound level; based on a surprisingly strong 1H17; IMF adjusted global GDP outlook by 0.1 pp World trade prospects remain above GDP growth IMF expects an unchanged stable rise of Chinese GDP by 6.8% Russian economy is expected to establish positive GDP development in 2017 (+ 0.4 pp vs. July 2017) Source: IMF World Economic Outlook Update October 2017 World throughput % NW Europe % Asia throughput % Scan. & Baltics % Sector outlook After a significant revision of outlook expectations in July 2017, Drewry again adapts expectation for 2017 positively World throughput on a high growth level at 5.5 % (+ 1.4 pp) Asia throughput shows further dynamics; estimates up 1.3 pp North West Europe expectations slightly down by 0.2 pp After a strong 1H17 Scandinavia & Baltics are expected to grow at a high level Source: Drewry Maritime Research Container Forecaster Q3/2017, October

22 Outlook 2017 Guidance for financial year 2017 confirmed Outlook 2017 Container throughput ,658 thousand TEU Guidance for 2017 significant increase Container transport 1,408 thousand TEU moderate increase Revenues 1,146.0 million moderate increase EBIT thereof Container thereof Intermodal thereof Logistik million million 55.9 million -1.7 million in a range between 135m and 155m * in a range between 85m and 105m * strong increase positive Capital expenditure million in the region of 160m ** * incl. possible one-off expenses of up to 15m in the Container segment and up to 10m in Holding/Others ** mainly attributable to the Port Logistics subgroup incl. approx. 25m postponed capex from FY16 22

23 Agenda Company Profile and Strategy Business Update and Financial Performance Outlook 2017 Appendix 23

24 Business Model Value creation based on vertical integration Appendix 24

25 Key Figures Financial statement of the Port Logistics subgroup Appendix in million Revenue 1, , , ,146.0 EBIT Profit after tax and minorities Earnings per share ROCE in % Free cash flow (excl. proceeds from short term deposits) Capex (without Group internal transaction)

26 Key Figures Balance sheet, assets and liabilities of the Port Logistics subgroup Appendix in million Balance sheet total 1, , , ,638.1 Non-current assets 1, , , ,165.1 Current assets Equity Pension provisions Other non-current liabilities Current liabilities

27 Key Figures Container segment Appendix in million Container throughput in thousand TEU 7,500 7,480 6,561 6,658 Revenues EBITDA EBITDA margin in % EBIT EBIT margin in % Segment assets

28 Key Figures Intermodal segment Appendix in million Container transport in thousand TEU 1,172 1,283 1,318 1,408 Revenues EBITDA EBITDA margin in % EBIT EBIT margin in % Segment assets

29 Key Figures Logistics segment Appendix in million Revenues EBITDA EBITDA margin in % EBIT EBIT margin in % At-equity earnings Segment assets

30 Growth of Global Container Throughput and GDP Growth multiplier on GDP slowed down substantially since 2012 Appendix Upswing Dip Recovery New Normal Expectation 20% Ø multiple 2.8x 7.3x 2.5x 1.0x ~ 0.8x 15% 10% 5% 0% [F'cast] 2018 [F'cast] 2019 [F'cast] -5% -10% Global container throughput Global GDP Source: Drewry / IMF 30

31 Ports Remain an Attractive Industry on a New Normal Level After above average growth dynamics a new momentum has established Appendix in TEU million Global thereof Asia thereof Northwest Europe 800 Upswing Dip Recovery New Normal Expectation [F'cast] 2018 [F'cast] 2019 [F'cast] 2020 [F'cast] CAGR Global Asia NW Europe 12.3% -9.3% 11.8% 3.3% ~ 3 % 14.1% -7.9% 13.4% 3.8% ~ 3 % 9.7% -17.1% 6.4% 1.5% ~ 2 % Source: Drewry / HHLA 31

32 Competing Ports of the North Range Container throughput and market share development Appendix Container throughput in the North Range million TEU (+ 1.7 % y-o-y) Throughput and market share of HHLA in 2016 in TEU million 37,3 WILHELMSHAVEN 0.5 million TEU ( y-o-y) KIEL CANAL 14,9 8,9 6, % 43.7 % 73.0 % ROTTERDAM 12.4 million TEU (+ 1.2 % y-o-y) BREMEN PORTS 5.5 million TEU (- 1.0 % y-o-y) HAMBURG 8.9 million TEU (+ 1.0 % y-o-y) HHLA in Hamburg 6.5 million TEU (+ 1.4 % y-o-y) North Range German Bay Hamburg HHLA CAGR* 0.9% CAGR* -0.3% CAGR* -1.1% CAGR* -0.7% Throughput and market share of HHLA in 2008 in TEU million ANTWERP 10.0 million TEU (+ 4.0 % y-o-y) Current terminal capacity of North Range ports of ~ 59 million TEU p.a. 1 utilisation stands at ~ 63 % 2 Source: Port Authorities / HHLA 1 Drewry estimates 2 Dynamar estimates 34,6 15,2 9,7 6, % 45.2 % 70.4 % North Range German Bay Hamburg HHLA * CAGR: ** North Range Ports (Antwerp, Rotterdam, Hamburg, Bremen Ports incl. Wilhelmshaven) 32

33 Growth in Ship Sizes Handling of Ultra Large Vessels (ULCV s) require extra effort Appendix Ship size development at HHLA container terminals 45% 39% 39% 36% 35% 26% 29% 21% 16% < 6,000 TEU 6,000 to 10,000 TEU 10,000 to 14,000 TEU Plus of 50 % ULCV calls within three years 1% 4% 10% > 14,000 TEU Implications Nautical restrictions tightened by increasing number of ULCV s 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.) ULCV fleet worldwide and order book until 2019 Counteraction in service in order Enhancing service quality by continuous investment in technology and efficiency Launching Feeder Logistics Centre (FLZ) and Nautical Terminal Coordination (NTK) to optimise ULCV and feeder vessel calls Raising attractiveness of HHLA terminals by expanding hinterland network 33

34 Deviations in Ship Calls per Week Peak loads due to bigger ship sizes in a new normal environment Appendix Development of carrying container ship capacity Ship-size development at HHLA terminals 2007/ max. ~ 9,000 TEU Carrying capacity of container ships roughly doubled since 2007/08 max. 18,000-20,000 TEU 39% 59% 16% 7% 34% 10% 35% < 14,000 TEU 10,000 TEU 6,000 10,000 < 6,000 TEU Inside: 2010 Outside: 2016 Weekly path of HHLA throughput volumes Index (100 = Ø weekly) 130% 120% 110% 100% 90% 80% 70% Standard deviation 2007/08: 8.1% 2016 : 15.9% (+ 96.7% vs. 2007/08) 48 % 26 % 2007/ Mo Tu Wed Thu Fr Sa Su High High weekly average Low Low In 2007/08 load conditions with homogeneous distribution of weekly throughput volumes Nowadays weekly peak load conditions as well as underutilisation has almost doubled Spread between highest and lowest utilization is nearly 85 % higher compared to 2007/08 34

35 Development of Alliances in Container Shipping Concentration in the shipping industry substantially increased Appendix 2015 Shipping Lines as of 2Q 2017 Maersk 2M MSC 2M Slot charter agreement Hamburg Süd Network O3 G6 C K Y H E Consolidation processes CSCL CMA CGM UASC APL OOCL Hapag Lloyd MOL Hyundai M. M. NYK Cosco Evergreen K Line Yang Ming (Hanjin*) Slot charter agreement OCEAN Alliance THE Alliance Share FE Europe 38% 36% 25% Source: AXS Alphaliner Monthly Monitor, August 2017, HHLA Implications Consolidation process in the shipping industry is supposed to be continued Acquisition of OOCL by CSCL announced in June 2017 Re-shaping of alliances and cooperation to improve load factor and slot costs Perspectives Deployment of largest vessel sizes and focus on calls at gateway ports (hubs) 45.2 % 70.4 % * Insolvency proceedings were opened in spring

36 State-of-the-Art Container Handling at CTA Maximum efficiency by high degree of automation and compact layout Appendix 36

37 Strengthening Hinterland Network With Own Assets Well located inland hub terminals offer high level of value added services Appendix 37

38 HHLA in the Port of Hamburg Appendix HHLA REAL ESTATE FISCHMARKT HHLA REAL ESTATE SPEICHERSTADT HHLA CONTAINER TERMINAL BURCHARDKAI HHLA CONTAINER TERMINAL TOLLERORT HHLA LOGISTICS O SWALDKAI HHLA REAL ESTATE DRADENAU HHLA REAL ESTATE Tollerort HHLA REAL ESTATE SCHUPPEN 59 HHLA LOGISTICS HANSAPORT HHLA REAL ESTATE VOLLHÖFENER WEIDEN 2. GHL HHLA CONTAINER TERMINAL ALTENWERDER 38

39 Elbe Waterway Adjustment Administrative steps by the public authorities in charge Appendix Initiation and final plan approval Main hearings on legal objections Sep 2006 Apr 2012 July 2014 Federal Water and Shipping Authority Federal Administrative Court (FAC) ECJ judgement on the EU Water Framework Directive 1 July 2015 European Court of Justice (ECJ) Decision on the planning supplement 9 Feb 2017 Federal Administrative Court (FAC) Fulfilment of judicial obligations in progress Federal Water and Shipping Authority / Hamburg Port Authority There is legal certainty. This means irrevocable: the adjustment of the navigation channel comes. Olaf Scholz, Mayor of Hamburg Today's decision unfortunately takes time again. Now we will plan and implement the next steps as soon as possible. Frank Horch, Senator for Economics in Hamburg Adjustment of navigation channel Today's verdict has confirmed: The Elbe dredging will come. We will now carefully analyse the reasoning behind the decision and adapt the plans as quickly as possible. Alexander Dobrindt, Federal Transport Minister Present depth Planned depth m tidal dependent / m tidal independent, widening boxes m tidal dependent / m tidal independent, widening boxes Enabling a higher load factor, extended time slots and more flexibility for mega carriers The accessibility of the port and its hinterland connections will improve significantly. [...] Infrastructure projects are secured and financed. This includes the dredging of the river Elbe. Enak Ferlemann, Parliamentary State Secretary of transport and digital infrastructure 39

40 Elbe Waterway Adjustment Passing Box Appendix 40

41 Financial Calendar / IR Contact Financial Calendar March May 2018 Annual Report 2017 Press Conference / Analyst Conference Call Interim Statement January - March 2018 Analyst Conference Call IR Contact Phone: Fax: investor-relations@hhla.de Web: 12 June 2018 Annual General Meeting (AGM) Online Interim Statement Jan Sept 2017 HALF-YEAR FINANCIAL REPORT JANUARY TO JUNE August 2018 Half-Year Financial Report January - June 2018 Analyst Conference Call 13 November 2018 Interim Statement January - September 2018 Analyst Conference Call 41

42 Interim Statement January to September