Valuation using IAS 39 Valuation using other IAS Balance sheet Held for
trading hedging instrumentsHeld as effective Other financial liabilities
Fair value Fair value Amortized cost Amortized cost
Financial liabilities 137 0 316,881 21,779 338,797
accounts payable 73,704 73,704
liabilities towards related parties 67,455 67,455
137 0 458,040 21,779
Categories of financial liabilities 31.12. 2007
In € thousanDIn the reporting year, gains/losses of € 1,902 thousand (2007: € 280 thousand) were recognized in the income statement on financial assets and/or liabilities held at fair value through profit and loss. These prima- rily relate to interest rate hedges with no effective hedging relationship as per Ias 39. Mark-to-market values are used as fair values.
In the reporting year, changes of € 1,845 thousand (2007: € 92 thousand) in the fair value of financial instruments designated as hedging instruments (interest rate swaps) were recognized directly in equity. Mark-to-market values are used as fair values.
a appreciation in value of € 110 thousand (2007: a loss of € 21 thousand) was recognized in the income statement on available- for-sale financial assets. Market listings are used as fair values on the balance sheet date.
Please refer to the table on the financial result in Note 14 for interest income and interest expense.
Derivative financial instruments
Derivative financial instruments are used in the HHLA Group to reduce interest rate risks and, to a minor extent, to reduce currency and commodity price risks. The financial derivatives held in the consolidated financial statements are carried at fair value. Result- ing gains and losses are recognized through profit and loss in the financial result unless the derivative financial instrument is part of a designated cash flow hedging relationship. The effective portion of unrealized gains and losses on cash flow hedges is recognized in equity without effect on profit and loss.
the following table shows the terms and maturities of the inter- est rate derivatives held on the balance sheet date:
notes
the remaining maturity of the interest rate derivatives is between one month and eight years.
the fair values of derivatives are determined by reference to the market prices posted by counterparties.
the expenses and income from the hedged items included in the financial result and the underlying derivatives are shown sep- arately. expenses and income are not set off against one another. Of the interest rates swaps disclosed, financial instruments cov- ering an amount of € 33,610 thousand (2007: € 38,689 thousand) with a market value of € - 469 thousand (2007: € 1,012 thousand) are held as part of cash flow hedging relationships to hedge future cash flows from interest-bearing liabilities. The hedged cash flows are expected to occur within the next eight years. the amount cov- ered by interest rate swaps is adjusted in line with the anticipated repayment of the loan over the term of the derivative.
In the financial year 2008 losses of € 1,845 thousand (2007: gains of € 92 thousand) on financial instruments used to hedge cash flows were recognized directly in equity.
If the variable interest rate had been 0.5 percentage points higher as at 31 December 2008, the value of the interest rate hedges recorded under other financial receivables would have increased by € 139 thousand and the value of the interest rate hedges listed under other financial liabilities would have decreased by € 973 thousand. as a result of this change in value, € 433 thousand would be recorded directly in equity and € 679 thousand in the income statement (before taxes).
44. Notes on the cash flow statement
the cash flow statement shows changes in cash and cash equivalents at the HHLA Group during the financial year. In ac- cordance with IAS 7, cash flows from operating activities are shown separately from cash flows from investing and finan- cing activities. The cash flow statement was prepared using the indirect method.CASH AND CASH EQUIVALENTS
For the purposes of the consolidated cash flow statement the amount of cash and cash equivalents on 31 December is made up as follows:
receivables from hGV are overnight deposits available on demand.
45. Segment reporting
the segment reporting was carried out in accordance with Ias 14. In the process, the primary reporting format is structured in accord- ance with the hhla Group’s business segments, which are organ- ized and managed autonomously in line with the types of services being offered. the geographical regions in which the hhla Group operates are used for the secondary reporting format.
Due to the structure of the hhla Group, it is necessary to is- sue a large number of invoices for inter-segmental services. these predominantly relate to the use of real estate, the maintenance of handling equipment, It services, administrative services and staff provided by the holding company. Wherever possible, these ser- vices are valued at market prices. If it is impossible to make a direct comparison with market prices, benchmarks are used to ensure market conformity. the charges for staff provided by the holding company are usually based on the actual cost.
the holding/other division used for segment reporting does not represent an independent business segment as defined by the IFrs standards. however, it has been allocated to the segments
Fixed interest rate Floating rate Amount covered Market values 31.12. 2008 Market values 31.12. 2007 positive negative positive negative € thousand € thousand € thousand € thousand € thousand Interest rate swaps 2.96 % to 5.83 % 1M to 6M eurIBor 86,203 8 - 2,091 1,179 - 137
Interest rate caps 4.25 % 6M eurIBor 3,000 9 0 267 0
89,203 17 - 2,091 1,446 - 137
In € thousanD 31.12. 2008 31.12. 2007
short-term deposits 145,248 190,838
Cash in hand and bank balances 80,713 21,986
receivables from hGV 5,200 28,300
Bank overdraft facilities 0 - 282
notes
within the subgroup port logistics in order to provide a complete and clear picture.
the segment assets contain the operationally necessary assets of the individual segments. In addition to items which must be consoli- dated, the reconciliation from the segment assets to the Group assets primarily contains income taxes, deferred taxes, li quid funds and financial assets which cannot be attributed to the segment assets.
the segment liabilities contain the operational debts and pro- visions of the individual segments. liabilities from income taxes and deferred taxes, as well as financial liabilities, are not reported under segment liabilities. these are contained in the reconciliation to Group debt.
For geographical segment reporting, the revenue and the infor- mation on segment assets are segmented in accordance with the Group companies’ respective locations.
Information on the hhla segments subject to reporting require- ments is presented as an annex to the notes. With regard to the composition of the segments, we refer to note 1.
46. Members of the Board
the members of the Board and their mandates are shown on p. 60 f.
47. German Corporate Governance Code
hhla has based its corporate governance on the recommendations and suggestions of the German Corporate Governance Code as published on 6 June 2008 and will continue to observe the Code in future. Information on corporate governance at hhla and a detailed report on the amount and structure of the remuneration paid to the supervisory Board and executive Board can be found in the Group management report and note 42 of this report. the executive Board and supervisory Board discussed matters of corporate governance in 2008 and on 17 December 2008 issued the statement of compli- ance in accordance with section 161 of the German stock Corpora- tion act (aktG), which is permanently available to shareholders on the company’s website (www.hhla.de).48. Auditing fees
the following fees have been recognized as expenses for services provided by the auditors of the consolidated financial statements, KpMG aG Wirtschaftsprüfungsgesellschaft:
Fees for auditing financial statements primarily consist of the fees for the audit of the consolidated financial statements and for the audits of the financial statements of HHLA AG and its domestic subsidiar- ies. In 2007, fees for other certification and valuation services related predominantly to services in connection with HHLA’s flotation and to the qualified review of interim financial statements. In 2008, these fees primarily arose from the qualified review of the interim financial statements. the other services were predominantly connected with advisory services in the course of planned corporate transactions.
In € thousanD 2008 2007
Audit of financial statements 663 927
other services provided for hhla
parent company or subsidiaries 380 0
Other certification and valuation
services 365 1,262
tax advisory services 52 5
notes
49. Events after the balance sheet date
In July 2008, the supervisory Board of hhla appointed Dr. se- bastian Jürgens as a new member of the hhla executive Board effective as of 1 January 2009. as the replacement for Mr. Gerd Drossel, who retired at the end of 2008, Dr. Jürgens is assuming responsibility for the Intermodal and logistics segments.In December 2008, the supervisory Board of hhla appointed Mr. heinz Brandt as a new member of the hhla executive Board effective as of 1 January 2009. as from 1 april 2009, he will take over responsibility for the human resources, employee welfare and purchasing areas from the current executive Board member Mr. rolf Fritsch, who will be stepping down from his post as of 31 March 2009.
With a notarial certification from 6 February 2009, Unikai Haf- enbetrieb Gmbh, hamburg, established hCC hanseatic Cruise Centers Gmbh, hamburg, and acquired 51 % of the company’s shares. the nominal capital amounts to € 500,000. unikai made its contribution to the nominal capital in the form of a payment in kind amounting to € 230,000 and a cash contribution of € 25,000. the purpose of the new company is the operation of cruise ship terminals.
There were no other significant events after the balance sheet date.
hamburg, 6 March 2009
haMBurGer haFen unD loGIstIK aKtIenGesellsChaFt
The annual financial statement and report of Hamburger Hafen und Logistik Aktiengesellschaft, Hamburg, for the financial year 2008 have been prepared according to the provisions of German commercial law and have been endorsed with an unrestricted auditor's certificate by the auditors of KPMG AG Wirtschaftsprüfungsgesellschaft.
The statement of income for the period 1 January to 31 December 2008 and the balance sheet as of 31 December 2008 are presented on this and the following pages.
AnnuAl finAnciAl
stAtement
AnnuAl finAnciAl stAtement