FRANKFURT / MAIN POLAND CZECH REPUBLIC SWEDEN DENMARK HUNGARY SLOVAKIA AUSTRIA RUSSIA SWITZERLAND GERMANY NORTH SEA BALTIC SEA UKRAINE MOLDOVA B C C C C REP NY FU M KIEV PRUSZKÓW / WARSAW GDAŃSK GĄDKI GLIWICE WROCŁAW ŁÓDŹ SŁAWKÓW DUNAJSKÁ STREDA GYÖR VIENNA LINZ ZLÍN/LIPA PRAGUE SALZBURG KOPER MUNICH AUGSBURGREGENSBURG NUREMBERG BAMBERGDRESDEN LEIPZIG BERLIN DORTMUND COLOGNE MANNHEIM BREMERHAVEN KORNWESTHEIM STUTTGART ULM BASEL ZURICH / REKINGEN MŁAWA MAŁASZEWICZE PU EPU NY UE N N N R NKF N RM U UND HAMBURGLÜBECK CTD TRANSFRACHT POLZUG METRANS
TERMINAL / DEPOT / OFFICE FEEDER SERVICES
POTI (GEORGIA), BAKU (AZERBAIJAN)
FEEDER
GEOGRAPHICAL COVERAGE OF HHLA’S INTERMODAL COMPANIES
constant enhancement of productivity at the container terminals
Efficient modal split in the hinterland
Group overvIew group management report
In its Logistics segment, HHLA intends to benefit further from growth in specialist areas, where it wants to exploit its outstanding port transhipment expertise. As well as continuing systematically with its specialist activities, it plans to take selective advantage of opportu- nities to develop its operations on lucrative submarkets. the focus of these activities will be on specialist handling (e.g. roro, fruit or bulk goods handling). Alongside this, HHlA intends to expand complementary logistics services such as fruit forwarding, contract logistics and consulting.
HHlA is also aiming for the value-oriented further development of the activities pooled in the real estate segment, in particular the cautious, sustainable development of properties, the marketing of real estate in the Speicherstadt historical warehouse district, commercial property management and facility management.
How HHLA is dealing with the current challenges posed by the international financial and economic crisis is described in detail in the sections on the Group’s development and the forecast.
LegaL frameworK
In its business operations, HHlA is subject to numerous German and foreign statutory provisions and regulations such as public law, trade, customs, labour, capital market and competition regulations.
As the bulk of HHlA’s commercial activities are concentrated in and around the port of Hamburg, its regulatory environment is largely determined by the Hamburg port Develop- ment Act (Hamburgisches Hafenentwicklungsgesetz – HafenEG). The HafenEG formulates the structural framework for the sound development of commercial activity in the Hamburg port area. the HafeneG’s objectives are to maintain the port of Hamburg’s competitiveness as an international all-purpose port, to safeguard freight volumes and to use the public infrastructure as effectively as possible. In the process, the port of Hamburg is managed in accordance with the “landlord model”, in which the public sector remains owner of the port area and takes care of building and maintaining the infrastructure. the privately owned port operators, on the other hand, are responsible for the development and maintenance of the superstructure (buildings and facilities).
In setting up, altering and operating the handling facilities, HHlA is reliant especially on the issuance and continued existence of authorizations under public law, especially official authorizations in accordance with the German Federal Emissions Control Act (Bundes- Immissionsschutzgesetz – BImSchG), the applicable local building regulations and water and waterways laws.
All construction and extension measures require separate authorizations by the respec- tive competent authorities, irrespective of the planning approval procedure for the expansion of the throughput areas.
HHlA’s Group companies are subject to a number of strict regulatory requirements, espe- cially if they are involved in the handling of materials which can have damaging effects on people or the environment, e.g. the handling, storage and transportation of environmentally dangerous materials and hazardous goods. These regulatory requirements include, in particular, regula- tions on technical safety, health and safety in the work place and environmental protection.
special expertise in Logistics and real estate
public ownership of port areas
Legal foundation for fair competition
HHlA’s commercial activities are governed predominantly by the provisions of German and european competition law. this means that its pricing is determined by the market and is, as a matter of principle, not regulated.
the security precautions in ports are stringent because of the dangers posed by inter- national terrorism. An essential component of this is the International Ship and port Facility Security Code (ISPS Code). The ISPS Code demands the internationally standardized installation of preventive measures to prevent terrorist attacks on ocean-going vessels and port facilities. For the operators of port facilities, implementation of the Code means that in addition to strict access control, numerous other measures for averting danger have to be complied with.
In the Port of Hamburg’s area, the German Port Security Act (Hafensicherheitsgesetz – HafenSG) gives the aforementioned international provisions a more concrete, specific form and implements them locally. the Act contains far-reaching regulations so that the more stringent demands on security in the Port of Hamburg are satisfied.
HHlA’s legal framework undergoes continuous change and is adjusted constantly at national and international level, particularly by the european Community, to take account of technical progress and the increased safety needs and environmental awareness of the general public. In the reporting period, no alterations to the legal framework with a substantial impact on operating activities occurred.
corporate anD VaLue management
HHlA’s primary objective is to increase its company value sustainably. For this reason, a Group-wide value management system is used for the planning, management and monitor- ing of its commercial activities. The central value-oriented control figure is the key perform- ance indicator roCe (return on capital employed). this benchmark takes account of all the Group’s relevant earnings and assets parameters, thereby encouraging value-generating corporate decisions in the interests of the closely coordinated steering of profitability and capital employment.
roCe is calculated as follows at the HHlA Group:
roCe =
the numerator – eBIt – corresponds to the operating result before interest and taxes. the Group uses eBIt to measure its operating performance potential and the earnings generated by its commercial activities in the respective period. the operating result is the aggregate performance in a period which is essentially determined by revenue less operating expenses, such as cost of materials and personnel expenses, as well as depreciation, amortization and other operating expenses. the denominator – average operating assets – is determined on the assets side of the balance sheet. It is calculated using the average non-current net assets (intangible assets and property, plant and equipment, investment property, assets held under the equity method and financial assets) and the average current net assets (inventories plus trade receivables less trade payables). the average operating assets are used to denote the Group’s assets which go towards generating the operating result. In group management report Group overvIew
strict international security requirements
eBIt Average operating assets
this way, the roCe represents the average interest on the capital used to generate operating performance.
the return on capital employed is not just a central cri-te- rion for assessing investments; it is simultaneously a signifi- cant parameter for determining the variable components of the management’s remuneration. In this way, value-oriented management serves to gear all the operating activities to- wards increasing the aggregate value. Commercial activities are basically regarded as value-generating if the return on capital employed exceeds the cost of capital. these capital costs correspond to the weighted average of equity costs and the cost of borrowed capital. In the financial year 2008, HHlA used a weighted average cost of capital of 10.5 % before tax to calculate its value appreciation.
HHLA’s objective is to earn an attractive premium on its capital costs. In order to fulfil this aspiration, a great deal of value is placed on expanding capacities in line with demand in dia- logue with customers. potential acquisition and investment possibilities that might constitute strategically useful additions are also assessed above all on the strength of their expected value contributions. the Group refrains from engaging in commercial activities with negative value contributions if there are no prospects of achieving the internal returns targets in the future.
In the financial year 2008, the return on capital employed again increased. This was attributable above all to the significant increase in the operating result (EBIT). Although the capital commitment, too, increased as a result of continued investments, its comparative rise was disproportionately low. roCe thereby attained a level of 30.2 % (previous year: 27.4 %), significantly above capital costs.
Due to the long-term nature of many investments in the field of throughput and transport systems, ROCE may fluctuate over time depending on the length of the period under review.
this applies in particular where there are reciprocal dependencies between individual mod- ernization and/or expansion projects if the full results potential of asset additions cannot be realized until after a start-up phase or after the completion of individual subprojects.
Group overvIew group management report