Segment Intermodal 2008 2007 Change

revenue € million 369.7 331.9 11.4 % ebitda € million 53.0 47.8 11.0 % ebitda margin % 14.4 14.4 - ebit € million 39.3 37.3 5.1 % ebit margin % 10.6 11.3 - 0.7 pp

Container transport1 _{thousand teu 1,841 1,651 11.5 %}

the previous year’s figure by 11.5 %. While growth was still 14.7 % above the previous year’s level in the first nine months of the reporting period, the year-on-year increase in the fourth quarter was just 2.1 %. In December 2008, the decrease of 1.6 % was the first decline in transport volumes ever recorded in this area.

While revenue and results growth rates in excess of volume growth had been achieved in the preceding years, the corresponding rates in the reporting year were either in line with the growth in the transport volume (revenue, EBITDA) or significantly below it (EBIT). The outcome was that the segment’s revenue increased by 11.4 % to € 369.7 million (previous year: € 331.9 million). EBITDA increased by 11.0 % to € 53.0 million (previous year: € 47.8 million) and the operating result, or EBIT, rose by 5.1 % to € 39.3 million (previous year: € 37.3 million). The EBITDA (unchanged at 14.4 %) and EBIT (10.6 % compared with 11.3 % in the previous year) margins also developed accordingly.

The slackening of the disproportionately strong earnings trend during the financial year is attributable to a number of highly diverse influencing factors. In addition to the slowdown in the growth rates for freight volume in the fourth quarter, the considerable intensification of competition in a number of market segments, increases in the cost of purchased services, and exchange rate losses as a consequence of the devaluation of eastern European currencies in relation to the euro played an important part. the lengthy lead times in the purchasing of transport capacities, too, had a dampening effect on the dynamism of business results.

the companies in the segment have expanded the HHla hinterland network by broad- ening their service spectrum and further increasing their real net output ratio. the trucking specialist Ctd Container transport dienst, for example, has opened a third branch in berlin, after Bremen and its head office in Hamburg, in order to improve its transport links with eastern Germany. the railway company polzug has modernized and expanded its terminal in Wroclaw through which local consumer electronics and automobile plants are supplied. besides increasing its rolling stock to its current level of over 1,000 units, the HHla rail subsidiary metrans has made further investments which have increased the capacity and efficiency of its extremely successful terminal in Dunajska Streda and created the conditions for more growth. The railway company Transfracht acquired a stake of 25.1 % in the new terminal for intermodal transport which was opened at the end of 2008 at the bavarian port of bamberg, where it now offers regular links to the German seaports.

Segment Logistics

In a market environment where the effects of the financial and economic crisis have been varied, the companies in the logistics segment were again able to increase the revenue and earnings before amortization and depreciation generated by their operating activities in overall terms. The segment’s revenue from non-affiliated third parties contributed 9.1 % of the Group’s revenue.

While the bulk handling area (coal and iron ore), which continued to operate at full capacity utilization throughout 2008, experienced a downturn in ore handling at the end of the year as a consequence of the economic crisis, the dynamic growth of motor vehicle logistics, in particular, and the first-time full consolidation of HHLA Logistics Altenwerder GmbH & Co. KG shaped the growth of the operative key figures in the segment.

group management report Course of business and eConomiC situation

Significant increase in container transport

Container transport

Consequently, an increase of 7.1 % in segment revenue to € 126.9 million (previous year: € 118.6 million) was accompanied by EBITDA growth of 3.6 % to € 17.9 million (previous year: € 17.3 million). Due to an adjustment of the goodwill of HHLA Logistics Altenwerder GmbH and associated amortization expenses of € 2.3 million, the operating result thus decreased by 17.9 % to € 10.4 million. The EBITDA margin consequently stands at 14.1 % (previous year: 14.6 %), and the EBIT margin at 8.2 % (previous year: 10.7 %).

Thanks to the near-completion of the modernization at the 75-hectare multifunctional terminal o’Swaldkai in the port of Hamburg, motor vehicle logistics had considerably greater ground space at their disposal in the reporting period. the aggregate tonnage of 1,261 thousand tonnes in motor vehicle and general cargo handling represented an increase of 51 % over the previous year. over the course of the year, fruit logistics activities at this facility managed to compensate almost entirely for a loss of custom at the beginning of the financial year, reaching a handling volume of 1,004 thousand tonnes (previous year: 1,028 thousand tonnes).

warehousing and contract logistics were restructured in the year ended. with retroactive effect as from 1 January 2008, HHlA acquired its co-shareholder rhenus’s shares in HHlA rhenus logistics and HHlA rhenus logistics Altenwerder. this acquisition lent a clear and ordered structure to the storage, transport and contract logistics activities of HHlA and rhenus at the Hamburg site. HHlA continues to manage the logistics operations of both companies at the Überseezentrum and Altenwerder sites, which now trade under the names of HHlA logistics and HHlA logistics Altenwerder respectively.

with a volume of 14.4 million tonnes, or 10.3 % of the total handling tonnage in the port of Hamburg, bulk cargo handling fell 5.5 % short of its record figures from the previous year (15.2 million tonnes). The automation of grab cranes and the modernization of multifunctional facilities led to further increases in productivity and capacity. A positive development was again shown by the HpC Group (Hamburg port Consulting), which operates globally in the port and transport consulting segment.

segment real estate

Although letting turnover on the Hamburg office real estate market fell by 7 % to 546,300 m² (previous year: 585,800 m²) in 2008, it remains high at 27 % above the average level of the past ten years. this means that, according to Jones lang laSalle, the effects

CourSe oF BuSIneSS AnD eConoMIC SItuAtIon group management report

segment Logistics