© Hamburger Hafen und Logistik AG
Agenda
Agenda
01
At a glance
Angela Titzrath, CEO
02 Financial performance 2020
Dr. Roland Lappin, CFO
03 Guidance 2021
Angela Titzrath, CEO
04 Medium-term outlook 2025
Angela Titzrath, CEO
Questions & answers
Angela Titzrath, CEO
Dr. Roland Lappin, CFO
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.
At a glance
HHLA achieves positive result in a challenging year
EBIT impacted by pandemic-related strains and provision for efficiency programme
Major achievements
FY 2020
HHLA kept stable financial position despite restrictions due to coronavirus pandemic
Health & safety of employees maintained; kept production running
Acquisition of a majority share in a multi-function terminal at the Port of Trieste
Acquisition of 80.0 % stake in automation specialist iSAM AG
Throughput
6,776k TEU
‒ 10.6 %
Transport
1,536k TEU
‒ 1.9 %
Market environment
While H1 was affected by pandemic-related blank sailings and drop in volumes, the sector struggled with imbalances in trade flows in H2, resulting from a lack of empty containers and shipping space due to catch-up effects esp. in Asia
Revenue
€ 1,269.3 m
‒ 6.0 %
EBIT
€ 110.3 m
‒ 46.0 %
Both led to delays in sailing schedules that put high pressure on terminals and hinterland transport systems
Results
Container throughput impacted by pandemic-related downturn and changes in market share while container transport was only slightly down
EBIT margin
8.7 %
‒ 6.4 pp
Profit after tax and minorities
€ 35.3 m
‒ 62.3 %
EBIT impacted by revenue decrease and provision of ~ € 43 million set aside in Q4 for an efficiency programme in the Container segment
Dividend proposal of € 0.45 per class A share in form of a scrip dividend
ROCE
5.8 %
‒ 5.3 pp
Operating cash flow
€ 271.4 m
‒ 10.4 %
Strong volume decline burdens revenue development while EBIT impacted by net provisions for an efficiency programme
Container throughput in thousand TEU
1,847 1,691
7,577 6,776
4Q19
4Q20
2019
2020
OpEx in € million
165.6 192.4
658.5 672.1
Revenue in € million
194.2 189.1
799.7 737.5
4Q19
4Q20
2019
2020
4Q19
4Q20
2019
2020
-3.2
Strong decline in throughput due to pandemic-related downturn and loss of a Far East service
Revenue reduced as a result of lower volumes (Hamburg down 11.1 %; Internationals down 4.7 %)
Average revenue per TEU + 4.3 % y-o-y mainly attributable to
− advantageous modal split with high share of hinterland volumes − temporary increase in storage fees due to longer dwell times as a result of pandemic-related trade flow imbalances and weather-related delays
OpEx up by 2.1 % (down 3.3 % adjusted for net provisions and subsidies of public authorities)
EBIT mainly impacted by net provisions of € 43 million in 4Q20 as result of the implementation of restructuring measures
4Q19
4Q20
2019
2020
Strong recovery of volumes in H2 led to only slight decline in revenues and kept EBIT margin at a sound level
Container transport in thousand TEU
1,565 1,536
381
407
4Q19
4Q20
2019
2020
OpEx in € million
95.9 102.1
387.7 388.5
Revenue in € million
486.9 476.8
4Q19
4Q20
2019
2020
EBIT and EBIT margin in € million
99.2
19.4% | 20.2% | 20.4% | 18.5% | |
4Q20 | 4Q19 | 4Q20 | 2019 | 2020 |
25 March 2021 |
Decrease in transport volumes more pronounced for road transport than for rail transportation (− 5.2% vs. − 1.0%); slight increase in rail share of total transportation volume from 78.8% to 79.6%
Revenues slightly down by 2.1 % due to volume declines mainly in H1 that could not be completely offset by strong recovery in H2
Average revenue per TEU decreased as a result of disadvantageous mix of short and long haul distance cargo loads
EBIT dropped by 11.0 %
EBIT margin still at a favourable level of 18.5 %
4Q19
2019
2020
Revenue in € million
Revenues suffered from pandemic-related downturn while at-equity earnings remained comparatively robust
15.1
59.0
51.4
13.5
4Q19
4Q20
2019
2020
EBIT in € millionneg.
-0.3
2.5
-3.9
4Q19
4Q20
2019
2020
At-equity earnings in € million
3.4
4Q19
Revenue from consolidated companies decreased mainly due to
‒ strong decline in vehicle logistics
‒ significant fall in consulting activities
Expected revenue growth from new activities was held back by the pandemic
EBIT development was adversely impacted by temporary increases in start-up losses of new activities and pandemic-related decline in earnings of existing activities
At-equity earnings remained comparably robust with a positive result
modility GmbH, a booking portal for intermodal traffic, was initially consolidated in the fourth quarter of 2020
4Q20
2019
2020
in € million
Comfortable liquidity position to meet payment obligations at all times
Cash flow development in line with business development
Investments
Financial fund as of 01.01.
EBITDAWorking capital and other effects
DivestmentsChanges in short-term deposits
Financial fund
Dividend paid
Payments to minoritiesRedemption of lease liabilities
Short-term deposits
Redemption of (financial)
loansOthers effectsF/X effects
Financial fund as of 31.12.
Attractive dividend proposal per class A share
HHLA confirms its payout corridor of 50 to 70 %
Dividend development in € / payout ratio in %
65
66
70 %
2017
Dividend development
Scrip dividend of 45 cents per class A share (option to choose cash or scrip dividend)
For determination, result was adjusted by the change in the restructuring provision affecting net income in the amount of € 43 million
Payout ratio at the lower end of the payout corridor of 50 to 70 % of the annual net profit after non-controlling interests
2016
2018
2019
2020
Earnings per share Dividend
Payout ratio Payout corridor
2020: Dividend proposal, EPS adjusted by changes in net provision
Performance
Effective match of technological and sustainable innovation
Various examples of efforts to implement our sustainability strategy
Reduction of specific CO2 emissions
Climate &energy
42.8%
against base year 2008
HHLA wants to have cut its total CO2 emissions at least in half by 2030 against 2018, and be climate-neutral by 2040
Area use
12
block storages have been put intoof 22 operation at CTB
More area efficiency by using the storage crane systems since lanes are no longer needed for van carriers and containers can be stacked up higher
Effective concepts for
Covid-19
Health & Safety
Health and safety of employees was maintained while neither introducing short-time working nor cutting wages
Climate-neutral
by
2040
Whisper brakes
Intermodal
Almost all of approx. 3,000 con-tainer wagons have been fitted with brakes which reduce the driving
and braking noise by half
Supplier
Code of Conduct
launched in 2020 and enshrined in the purchasing guidelines incl. anti-corruption regulations
Guidance 2021
Guidance 2021
Still high unpredictability regarding intensity and timing of economic recovery
Research estimates for 2021
GDP development
World China Russia CEE World trade
Throughput development
+ 5.5 %
+ 8.1 %
+ 3.0 %
+ 4.0 %
+ 8.1 %World China Europe NW Europe Scan. & Baltics
Sources: IMF, January 2021 // Drewry Maritime Research, December 2020
+ 8.9 % + 9.0 % + 7.7 % + 8.1 % + 10.5 %
Constraints of guidance 2021
The forecast for the year is subject to considerable uncertainty. This applies in particular to the intensity and timing of the economic recovery.
Guidance for the Port Logistics subgroup 2021
2020 | Guidance for 2021 | |
Container throughput | 6,776 k TEU | Moderate increase |
Container transport | 1,536 k TEU | Moderate increase |
Revenue | € 1,269.3 m | Moderate increase |
EBIT | € 110.3 m | in the range of € 140 to 165 million |
Capital expenditure | € 178.7 m | in the range of € 220 to 250 million |
Liquidity | € 201.3 m | sufficient to meet payment obligations at all times |
Dividend per A class share | € 0.45 | commitment to pay out 50 to 70 % of net profit after minority interests |
Level of intensity: slight < moderate < significant < strong
Several developments driving HHLA's transformation process
Advanced momentum through implementation of an efficiency programme in the Container segment
Structural sector developments
01 Ship size development
Increasing number of mega carriers demands
more efficiency and operational flexibility as
well as investments
04 Overcapacity in the North Range
Pressure on pricing due to fierce competition
Consolidation of shipping liners 05
02
Formation of alliances leads to increased price and performance pressure
03 Increasing degree of automation 06
Share of highly automated systems such as CTA
is steadily increasing
Cooperation of port authorities
Consolidation of the port authorities in France, Belgium and the Netherlands to enhance efficiency
Dedicated terminals prevailed
Many shipping lines have established stakes in terminals, putting HHLA multi-user approach under pressure
Hamburg-specific topics
07
Nautical restrictions almost solved 08
Elbe dredging already completed; full approval anticipated for H2/2021
Infrastructure maintenance
Ongoing infrastructure maintenance and projects, i.e. replacement of Köhlbrandbrücke, are on track
HHLA's response:targets of the efficiency programme
Lean and sustainable organisational structureImproved productivity in line with customer expectationsExpansion for mega carriers > 24,000 TEU
Laying groundwork for regaining market shareReduction of emissions and energy consumption
Further automation at Hamburg terminals will lead to increased performance
… and support medium-term profitability target of the Port Logistic subgroup
2020
2021
2022
2023
2024
2025
Operational measures
Roll-out of N4 terminal software on all terminals by end of 2022
Stepwise expansion of automatic block storages at CTB from 12 in 2020 to 22 in 2024
Construction of an AGV service centre and testing field at CTB by 2023
Replacement of straddle carriers by Automated Guided Vehicles (AGVs) at CTB from 2024 onwards
Personnel measures
Net provision of € 43 million earmarked for socially responsible personnel measures - Main instrument: early retirement programme will have a positive P&L effect from 2023 onwards - Further instruments: flexi-time, reduction of overtime, education & training and re-qualification
2025 targets of the
Port Logistics subgroup
EBIT 2025
€ 300 m
Capex 2021-2025
€ 1,050 m
Focus on three profit sources to fuel our future success
Rationale for 2025
Container
Intermodal
Logistics
Increase efficiency at Hamburg terminals by further automation
- Further area optimisation by taking up to 22 block storages into operation at CTB
- Automation of horizontal transport from the quayside to yard via AGV
-
Further optimisation of the existing systems by using intelligent system control
Growing EBIT contribution from international terminals
Striving for efficiency
Expansion of rail terminals and hubs, i.e. Zalaegerszeg (Hungary)
Expansion of hinterland rail network in Central and Eastern Europe by increasing frequency on existing connections and adding new connections, particularly in Southern and South-Eastern Europe
Taking advantage of EU green deal
Growing EBIT contribution
Moderate increase expected from at-equity earnings
Strong top-line growth from new ventures anticipated from 2021 onwards
Positive EBIT contribution from new ventures expected for 2023 onwards
Clear commitment to invest in new technologies along future transport streams
Positioned for growth
Q&A
Contact
Financial calendar and contact
Financial calendar 2021
.
25 March 2021
12 August 2021
Annual Report 2020 Analyst conference call
Half-year Financial Report Analyst conference call
12 May 2021
11 November 2021
Interim Statement Analyst conference call
Interim Statement Analyst conference call
10 June 2021
Virtual Annual General MeetingJulia Hartmann // Head of IR Phone: +49 40 3088 3397 E-mail:hartmann-j@hhla.de
Steffen Keim // Manager
Phone: E-mail:
+49 40 3088 3100keim@hhla.de
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Disclaimer
HHLA - Hamburger Hafen und Logistik AG published this content on 23 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 March 2021 09:40:05 UTC.