Financial Report 2014
Facts,
Figures,
Data.
02
Reports
02
Supervisory Board’s Report
04
Directors’ Report
17
Figures
17
Profit and Loss Account
18
Balance Sheet
20
Fixed-Asset Movement Schedule
22
Miscellaneous
22
Notes to the Annual Financial Statements
30
Auditor’s Opinion
31
Hamburg Corporate Governance Kodex
32
Imprint
33
Facts
REPORTS
Supervisory Board’s Report
During the 2014 financial year, the turnover volume in the Port of Hamburg has increased by 4.8% to 145.7 million tonnes compared to last year. This result shows that the Port of Hamburg has outperformed the direct competitors in the North Range. The number of containers handled increased by 5.1% over the previous year. In total, 9.7 million TEU were handled. The turnover for bulk goods with a plus of 1.7% to 43 million tonnes and for conventional cargo with a plus of 3.8% to 2 million tonnes marked a positive trend during the 2014 financial year.
In addition to the positive development in turnover at the Port of Hamburg, the cruise industry has seen an above-average positive development. A total of 588,000 passengers, an increase of 7%, set a new record. As the upwards trends for the number of passengers and cruise liners visiting the Hanseatic city are expected to continue in the coming years, the Hamburg Port Authority has received the order to build a third cruise terminal in Steinwerder and to take on the central coordination of the cruise business via a subsidiary. The shell of the construction, which is expected to open in mid-2015, was completed in the past financial year and the corre-sponding organisational structures, including the founding of Cruise Gate Hamburg GmbH and additional subsidiaries, were concluded.
The Hamburg Port Authority took on the logistical, economic and ecological challenges of the future with the smartPORT project initiative. The cross-linked digitisation of the logistical pro-cesses, including the infrastructure, and the intelligent reduction of emissions play a decisive role here. A moderate increase in the total turnover by 3% and a throughput of approximately 10 million TEU are expected for 2015. The Hamburg Port Authority anticipates a slight increase in sales, especially through rising rents and fees for the port railway and waterway.
Changes in the composition of the management board and supervisory board
There were no changes made to the management board and the supervisory board in the 2014 financial year.
A dialogue based on trust
Four supervisory meetings were held in the 2014 financial year. The cooperation between the supervisory board and the management board was characterised by a high level of openness and mutual trust. The management board has comprehensively informed the supervisory board about the economic development of the institution including the risk situation and the Hamburg Port Authority AöR’s risk and opportunity management. The supervisory board and the management board have jointly debated important questions on the Hamburg Port Authority AöR’s business policy and strategy.
The supervisory board has continuously and carefully monitored the management and business development of the Hamburg Port Authority based on regular written and verbal reports by the management board.
In its two sessions, the finance and personnel committee has dealt with fiscal und personnel- relevant topics presented by the management board and has presented the results and recom-mendations to the supervisory board.
Adoption of financial statements
The auditors, Deloitte & Touche GmbH, appointed at the supervisory board meeting on 20 July 2014, audited the annual financial statements of the HPA and the directors’ report for the 2014 financial year and issued an auditors’ opinion, expressing their full and complete approval. At the meeting on 2 July 2015, the supervisory board reviewed and verified in detail the annual financial statements for the year ended 31 December 2014, the directors’ report and the proposal on the allocation of the result for the year. The representative of the auditing company, Deloitte & Touche GmbH, participated in the supervisory board meeting on 2 July 2015, explained in detail the main findings of their audit and provided additional information as requested.
Thank you for your strong commitment
On behalf of the supervisory board, I would like to thank the members of the management board as well as all employees of the Hamburg Port Authority for their strong commitment in the past year. Important changes have been decided upon and initiated, and thanks to the high level of commitment shown by each and every one of us, the Hamburg Port Authority is well prepared for the challenges ahead.
Hamburg, 2 July 2015
The Supervisory Board
1. BUSINESS MODEL
The Hamburg Port Authority has been providing future-oriented port management services, presenting a single face to the customer, since 2005. As an Institution under Public Law, the HPA is in charge of paving the way for the efficient, resource-friendly and sustainable prepara-tion and implementaprepara-tion of infrastructure projects in the port. The HPA is the contact point for all questions concerning the waterside and landside infrastructure, the navigational safety of vessel traffic, port railway facilities, port property management and the economic conditions within the port area. The HPA ensures the provision of land as required, carries out all statu-tory duties placed on it and provides port industry services.
2. GOALS AND STRATEGIES
The HPA develops and is responsible for the entire infrastructure of the Port of Hamburg for the benefit of its clients, thus taking care of a continuous increase in the competitiveness of the port. Commercial, public and sovereign tasks are thus taken care of. Clients include shipping companies, shipping agents, producers, carriers and forwarding agents as well as tenants and users of port sites. The HPA and the Port of Hamburg are mutually dependent on each other in terms of success.
In this context, the strategic goals are that the HPA operates based on the principles of sustainability (ecological, economic, social), works as a resource-friendly company and, thus, does justice to its responsibility for the port in the city. This is how it positions the port as a successful competitor.
3. MACROECONOMIC AND INDUSTRY-SPECIFIC OUTLINE CONDITIONS Hamburg underlines its position among the North Range ports as the
second biggest container port in Europe.
In 2014, the Port of Hamburg handled 145.7 million tonnes of cargo. This is equivalent to an increase of 4.8 % on the previous year. Among the competing North Range ports, Hamburg performed best once again. Bremen’s ports saw a drop in cargo handled by 0.6 % to 78.3 million tonnes. Rotterdam recorded an increase of 1.0 % to 444.7 million tonnes and Antwerp achieved a plus of 4.3 % to 199.0 million tonnes.
Container throughput in Hamburg rose by 5.1 %, in Rotterdam by 5.8 % and in Antwerp by 4.7 %, whereas Bremen’s ports experienced a decline of 0.6 %. Standing at about 9.7 million TEU, which translates into an increased market share of over 26 %, container trade solidified Hamburg’s position as the second most important port for containerised cargo in the North Range. The container segment accounted for 69 % of the total trade in the Port of Hamburg. Full-container trade in Hamburg rose by 6.3 % and empty-container trade rose by 12.7 % in 2014. The average dwelling times of empty containers are still high. The empty-container
depots in Hamburg have been operating slightly below storage capacity limits for some time now. The 12.3 % growth in container throughput is predominantly due to the traffic with China. Trade with China, the port’s most important trading partner, rose to 3.0 million TEU, which represents a share of 30.6 % of the total container throughput of the Port of Hamburg. Trade with the Russian Federation – the biggest European trading partner of the Port of Hamburg – exhibited a decline of 7.8 %, which means that Russia’s share of container throughput in Hamburg dropped by 1 percentage point over the previous year to 6.8 %. Overall, traffic with European ports exhibited a moderate growth of 1.4 %. Trade on routes to and from America decreased by 1.9 %. Trade with Africa rose by 24.3 % from a starting level.
The 3 % rise in traffic from and to Asia represents a large share of the port’s total trade growth. Trade with China, the port’s most important trading partner, rose by 2.9 % to 2.7 million TEU. Trade on the routes to and from America decreased by 3.3 %. Trade with Africa rose by 12.4 % in absolute terms.
Bulk cargo volumes moved through the Port of Hamburg increased by 1.7 % over 2013 to 43.0 million tonnes in 2014. Import trade almost stagnated at 0.3 %, while export trade exhibited an increase of 5.4 % to 11.2 million tonnes. The increase in export trade was mostly due to a surge of bulk liquids trade by 12.8 %. In the import segment, a 4.7 % increase in grabbable cargo trade compensated for the decline in suction goods and bulk liquids trade. At 2.0 million tonnes handled, general cargo throughput rose by 3.8 % over the previous year.
4. COURSE OF BUSINESS
The Port of Hamburg – a hub for the European hinterland.
The Port of Hamburg remains the central hub for the Eastern and Southern European hinterland. With a total of 44.4 million tonnes cargo handled by rail, the port railway had a new record year in its 148-year history. More than 2.2 million containers were moved by rail to the hinterland of the Port of Hamburg – an increase by of over 7 % over the previous year. The port railway has once again significantly increased transport efficiency. The average train utilisation rate continued to improve, which in turn increased the profitability of rail operations in the Port of Hamburg.
HPA builds a third cruise ship terminal
The boom in cruise shipping in the Port of Hamburg continued in 2014. 189 cruise liners docked in the Hanseatic city in 2013. At 588,000, the number of cruise ship passengers increased by about 7 % over the previous year. 95 % of passengers started or concluded their journey in Hamburg. With regard to passenger numbers, Hamburg is the third biggest cruise ship port in Northern Europe and among the top 20 worldwide. To support the rapid growth in the cruise sector, additional terminal capacities to accommodate ever-larger vessels are needed. For this reason, a third cruise ship terminal, Cruise Centre Steinwerder, is currently being built. The construction is on schedule. Following the 4 July 2014 groundbreaking cer-emony, the objective of starting the interior work before winter was met. In addition, the organisational restructure of the cruise ship segment in Hamburg was continued. CGH Terminaleigentumsverwaltungsgesellschaft mbH and CGH Terminaleigentumsgesellschaft mbH & Co. KG were established in early 2014. They will function as owners of the Cruise Centre Stein-werder. In September 2014, Terminalbetriebsgesellschaft Cruise Gate Hamburg GmbH was founded. It will coordinate and operate the three cruise centres in the Port of Hamburg as a joint venture between the HPA AöR and Flugfahen Hamburg GmbH.
The port has benefited from the additional expansion of the rail infrastructure as well as the implementation of new IT systems to facilitate freight handling. After the successful intro-duction of subsystems of transPORT rail for users at the HPA and the loading points in 2012 and 2013, the communication with the railway undertakings went live. Thus, the last step of this project was successfully implemented. The new transPORT rail system provides data to facilitate train scheduling and book sidings as well as to load and unload containers and wagons. The new system optimises the increasingly complex rail transport processes.
REPORTS
Directors’ Report
Directors’ Report 2014 of the Hamburg Port Authority,
Anstalt des öffentlichen Rechts (Institution under Public Law),
Hamburg
This autumn, the new workshop hall and the associated railways at Spreehafen for repair and maintenance work on wagons was put into operation and opened for the public. The Spreehafen project, intended to merge the port railway operations, has been successfully completed.
Expansion of information and communications technology
In 2014, the Vessel Traffic Service Centre [Nautische Zentrale] was successfully enhanced. A large video wall running on new software, created using Port Monitor, shows the current situation on the water in real time. 2014 saw the introduction of the product SPL (smartPORT logistics) onto the market. SPL is an IT solution which closely interlinks companies, partners and clients of the port at the level of traffic management. By opening SPL services to all members of the traffic chain, the Port of Hamburg further increases its quality and efficiency as an important part of the supply chain. SPL uses a comprehensive IT platform, which can be combined with mobile applications. This makes current and future information about the trafic around the port available to mobile devices such as tablets and smartphones as well as the telematics units in the driver cabins.
Reaching additional strategic environmental milestones
The concept of suplying external power to cruise ships in the Port of Hamburg, drafted by the HPA, was continued in 2014. The shell construction of the shore power station in Altona was completed as was the shore infrastructure for the use of power barges at the cruise ship terminal in HafenCity. Both will be put into operation in 2015. Power barges also allow the use of liquified natural gas (LNG) in the Port of Hamburg for the first time. The Hamburg Port Authority has therefore promoted the adjustment of the legal provisions regarding the use of LNG in close collaboration with the companies and authorities involved.
After the first-time publication of the HPA sustainability report in 2013, the preparation for the 2013 / 2014 sustainability report was underway in 2014. The new report will be published in accordance with the guidelines on sustainability reporting issued by the Global Reporting Initiative (GRI). With this in mind, a stakeholder analysis and the development of sustainability policies, which will be implemented in 2015, was conducted.
After the new port railway office, the first low-energy building in Hamburg, opened in 2013, the rail depot was finished in 2014 with an energy use 30 % below the legal requirements. Furthermore, the HPA’s car fleet now includes seven electric vehicles manufactured by Renault, which enables a future replacement of all vehicles with low-emission alternatives. Significant progress was made in the tidal Elbe project Spadenlander Busch / Kreetsand, which is intended to improve or stabilise the hydrological and morphological situation of the tidal Elbe. This project gained enormous global recognition in 2014 when it was awarded the PIANC Award (World Association for Waterborne Transport Infrastructure) for the best global project in the category “Working with Nature”.
This is how the HPA contributed to the implementation of smartPORT energy, a joint initiative by the Ministry of Economic Affairs, Transport and Innovation (BWVI), the Ministry of Urban Development and Environment (BSU), and the Hamburg Port Authority.
Increasing in site efficiency remains a key priority
The intelligent use of the limited port sites and the intensive utilisation that comes with it was an important topic for the port strategy in 2014. The communication and information tools set up for this have been further institutionalised. Orders, analysis and agreements with regard to site-related large and small-scale development as well as modifications, purchases, and contract negotiations have been promoted. In 2014, as before, the HPA was involved comprehensively in the processes regarding urban developments regulated by the FHH in the immediate vicinity of the port.
The detailed planning activities of the IBA with regard to the “Leap across the Elbe” Senate project as well as the Senate’s ambitious housing construction programme need the active support of the HPA in order to achieve sustainable results for both sides.
Fit for the Olympic Games
The FHH’s intention to apply to host the 2024 Olympic and Paralympic Games led to the HPA’s extensive participation in the vote for additional urban developments as it is the owner of the sites of interest (Kleiner Grasbrook, Überseezentrum, possibly additional sites) for the Games. A strong commitment by the HPA is necessary since the possible land consumption of central areas of the port could significantly change their function and performance efficiency.
Completion of investment programmes
In 2014, the Hamburg Port Authority continued the investment programme for the port’s infrastructure with a total of EUR 187.3 million. The key construction of the new Rethebridge bascule bridge progressed substantially in the past year. The reinforced concrete construction of the bridge pillars as well as the installation of all four bascules were completed. The con-struction of the foreland bridge for road and rail was also completed. In addition, the new railway bridge project has started. The first construction phase (land access connection east) as well as the second construction phase (land access connection west) have been awarded. The construction of the redesigning of the Entrance to the Vorhafen Harbour Basin project for an improved ship access connection to the central port also began in 2014. The award of the contract for the necessary construction measures to secure the Lotsenhöft has taken place. In the 2014 construction programme for the port railway, rails and switches were primarily renewed at the railway stations Hohe Schaar as well as in the Alte Süderelbe and Mühlen-werder districts including two large crossings. As part of the renewal and renovation of the bridge structures in the port, the railroad bridges across the Georg-Wilhelmstraße as well as the foundation and top structure of the Peutebahnbrücke were completed, among other pro-jects. The reconstruction of the dock gate in Harburg, including the strengthening of the public flood protection line, has been completed except for some minor remaining work. As part of the (“ Verkehrsanbindung Buchardkai”) project, the Rugenberger Damm and the associated road bridge across the Rugenberger dock gate were completed, which established an alternative road connection to the Buchardkai. Main construction for the Rugenberger dock gate itself has been completed except for the lock gates. The building contract for the construction of the eastern Waltershofer Brücke has been awarded and the planning phase for the construction of an additional track has been moved forward. In addition, the HPA has started the implementation of the (“nördliche Straßenanbindung Altenwerder”) project, which is intended to significantly improve the road connection for the Altenwerder freight centre. The comprehensive foundation works for the civil engineering structures (bridges, supporting walls and dam constructions) have been completed. As part of the renovation of the east tunnel of the St.-Pauli-Elbtunnel, the sealing applications and the shell construction of the new interior tunnel shell in the east tunnel were completed. The installation of the new tile shield has already started.
Continuation of strategic expansion projects
The fairway adjustment for the Lower Elbe and Outer Elbe remains a key project in order for the Port of Hamburg to remain competitive. During the current complaint proceedings, brought by two environmental associations, the Federal Administrative Court (BVerwG) has suspended the ongoing legal proceedings following an oral hearing lasting several days in July 2014 until a decision by the European Court of Justice (EuGH) on fundamental issues with regard to the implementation of the water framework directive. At the same time, the Federal Administrative Court has pointed out several defects in the official approval – which, how-ever, can be fixed according to the Court. The authorities responsible for approving the plan of the FHH and the Federation are currently preparing a supplementary planning decision with the support of the sponsors, which is intended to eliminate the deficits. Based on this supple-mentary planning decision, which will be available in mid-2015 at the earliest, and with regard to the decision by the European Court of Justice, which is expected in early 2015, the Federal Administrative Court will hopefully come to a positive verdict regarding the fairway adjustment after another, not yet scheduled, oral hearing. The implementation of the fairway adjustment is subject to timing risks, as delays with regard to the supplementary planning decision cannot be ruled out. In addition, the vote of the European Court of Justice as well as the additional progress of proceedings at the Federal Administrative Court are subject to significant temporal uncertainty.
The reduction of other operating expenses over the previous year is due to the completion of several projects aimed at optimising processes and decreasing costs in the area of public relations.
The higher net loss is due to the positive one-time effects unrelated to the accounting period from the previous year.
The capital reserves amounting to EUR 103.8 million will be withdrawn towards the end of the year. Compared to the previous year, the withdrawal is lower by EUR 8.8 million. This decline in the project area (EUR −13.6 million) can be primarily explained by the modified allocations of funding (12.6 million EUR). In the operating sector (EUR +5.0 million), the 2013 flood led to a decline in sedimentation rates, which caused the associated water depth maintenance expen- diture to decline significantly. For this reason, the subsidies were not used in their entirety in 2013. The low headwater discharge in 2014 caused a higher need for maintenance – especially in the second half of the year – so that the subsidy was used in its entirety, which caused an increase of EUR 5.0 million.
The significantly more positive development for 2014, compared to the previous year, is largely due to the higher overall performance and the lower material costs. An important driver for the lower material costs was the further delay of the fairway adjustment.
6. FINANCIAL POSITION Selected financial figures
The funding of the public port infrastructure is made possible by the current income of the HPA and by capital contributions for the FHH, whose last tranche was collected in the reporting year. Further funds are secured in the form of a current account overdraft with the Hamburg treasury in the amount of EUR 20.0 million. Revenues generated by the HPA and respective borrowings will fund investments in the user-specific area.
The investment account supports the “Alternative Energieversorgung Kreuzfahrt” project. Increased movements in this account are expected in the near future as the funding of projects is once again gaining in importance. The HPA’s financial solvency was ensured in the reporting year.
7. FINANCIAL STATUS
Selected financial assets of the HPA
The project to enhance capacity at the Waltershof port is currently still in the planning approval stage. For legal reasons, it was necessary to supplement the planning documents (taking account of the water framework directive, update of the acoustic studies). The official approval is expected in 2015.
5. EARNINGS SITUATION Selected results
The turnover, adjusted for the one-time effect unrelated to the accounting period in the previous year resulting from the transfer of economic ownership of quay walls to the HHLA, increased by 6.4 % over the previous year. The main positive drivers for this development are increased rents (EUR +3.6 % million), increased port fees (EUR +2.8 million) and an increase in other service revenues (EUR +3.5 million). The positive development of site rental income (EUR +2.9 million) can be attributed to newly concluded rental contracts as well as the general increase in rents. Low dredge revenue (Baggereierlöse) (EUR −2.9 million) as well as maintenance revenue (EUR −1.9 million) had a negative effect compared with the previous year.
The port revenues, which consist of port fees (EUR 51.2 million) and port railway revenues (EUR 21.4 million), amount to EUR 5.0 million and are significantly higher compared to the development of the previous year. This can be attributed to the positive development in freight handling, especially the container throughput. The port railways revenues at EUR 2.2 million as well as the port fees at EUR 2.8 million benefited from these developments.
The significant decrease in turnover unrelated to the accounting period of EUR 110.9 million was a result of extraordinary effects in 2013. The signing of the rental contracts for the new quay walls was a major factor. Within this area, backdated rental payments for quay walls and the revenues for the transfer of economic ownership, respectively, amounted to EUR 104.8 million. In addition, large backdated rental payments, especially for sites (EUR 4.3 million), dredge revenue (EUR 0.6 million) and port fees (EUR 0.4 million) were due in 2013. The HPA also received a reimbursement unrelated to the accounting period for the clean-up operations on the expansion area in the western sector (EUR 0.9 million) for 2012.
The significantly higher expenses for the lower fairway depth maintenance were the driver for the increase in material costs over the previous year. In addition, there were further expenses for the planning services for the third cruise ship terminal as well as increased maintenance of embankments and flood protection systems.
The increase in personnel costs by EUR 3.7 million over the previous year can be attributed to the tariff adjustment of this year’s collective agreement at EUR 2.1 million and to the tariff adjustments from 1 July 2013 at EUR 0.7 million. Staff increases from 2013 also had an impact on the year-on-year comparison because, for the first time, affected the entire reporting year.
in TEUR 2014 2013
Turnover 176,202 280,680 −104,478 of which rental income 89,777 86,133 3,644 of which port operations 72,652 67,688 4,964 of which turnover unrelated to the
accounting period 387 111,286 −110,899 Cost of materials −157,998 −139,299 −18,699 Staff Costs −108,924 −105,250 −3,674 Other operating expenses −42,598 −52,324 9,726 Loss for the year −103,830 −86,584 −17,246 Withdrawals from capital reserves 103,794 112,626 −8,832 Loss brought forward from the previous year 0 −26,042 26,042 Balance sheet deficit −36 0 −36
in M EUR 2014 2013
Loan level 214.0 227.8 −13.8 Operation material account 91.9 14.1 77.8 Investment account 1.3 1.3 0.0 Debt level 43.1 % 44.5 %
in M EUR 2014 2013
Fixed assets 1,582.1 1,513.5 68.6 Capitalisation ratio 81.9 % 82.5 %
Asset coverage ratio 69.4 % 67.2 %
Equity capital 1,098.3 1,017.2 81.1 Equity ratio 56.9 % 55.4 %
Provisions 294.7 269.5 25.2 of which provisions for pensions 165.6 144.2 21.4
9. STAFF
Selected employee figures
The average number of operative employees stood at 1,810, which is two more than in the same period last year. The staff turnover of 3.8 % was compensated for measures imple-mented in recent years aimed at achieving a more professionalised recruiting system. If part-time staff are taken into account, the actual average number of employees equalled 1,751.5 FTEs (full-time-equivalent), previous year 1,752.6 FTEs. This represents a minimal reduction in staff of −1.6 FTEs and demonstrates an increase in the uptake of various part-time working programmes.
Staff strategy
Based on the staff strategy, the HPA has introduced several steps to position itself as an attractive employer. Core elements of this strategy are the development of the leadership culture, the implementation of an internal job market and the optimisation of the technical-industrial training programme.
With regard to the development of leadership, a binding qualification canon has been devel-oped, which will be implemented for the first time in 2015. The executive staff will pass through this programme gradually over a period of years. An additional element is the online-based leadership feedback (360° feedback), which will be implemented across the company following a successful pilot phase in 2014.
Occupational health management is developing in an active and determined way
To highlight the importance of the topic of “health”, an independent organisation unit was implemented and the health services of the HPA were pooled. The employees have access to various fitness programmes such as yoga, back exercises and active breaks. The demand for and participation in all courses on offer is extremely high.
10. SUPPLEMENTARY REPORT
There have been no significant events after the balance sheet date.
11. FORECAST REPORT
Handling volumes in the Port of Hamburg are growing.
With regard to a recently created forecast of the handling volume potential, the handling volume in 2030 – based on neutral assumptions – can be expected to amount to a total volume of 229.3 million tonnes and a container throughput of TEUR 18.1 million. For the purpose of this forecast, it is understood that the average annual growth rate of the total turnover until 2030 is 3 %, while for the container throughput it is 4 %. With the increase of the total turnover in Hamburg by 5 % (compare section 3), the average value assumed for the forecast has been substantially exceeded in 2014. For 2015, it is expected that the assumed average value of 3 % will be reached and the total turnover will amount to about 150 million tonnes at the end of the year. Hamburg’s container throughput in TEUR has increased by 5 % in 2014 (compare section 3). Hence, the average value assumed for the forecast has been significantly exceeded as well. For 2015, it is expected that the assumed average value of 4 % will be reached and that the container throughput will amount to a little over TEUR 10 million at the end of the year. Expectations for 2015 are therefore – in view of the known current risk factors and with the awareness that the figures for January 2015 are cautiously optimistic – focused on the further growth of the turnover in the Port of Hamburg in accordance with the long-term forecast.
The investments in intangible and tangible assets amounted to EUR 107.3 million in the reporting year (previous year: EUR 299.9 million). Against these investments, asset disposals amounted to EUR 4.2 million. Financial assets increased to EUR 13.0 million, which is due to the loans to TEG (EUR 12.9 million).
Due to temporary project postponements, the overall investment of the HPA in the fiscal year 2014 amounted to EUR 187.3 million, EUR 32.7 million (−14.9 %) below the figure for the previous year.
The investment into the expansion of the port railway, including the rail share of the Rethe-brücke bascule bridge and the new Kattwyk railway bridge, amounted to EUR 24.7 million. The alternative investments of the port railway amounted to EUR 13.0 million. For the expansion and renovation of various buildings as well as the purchase of land and land revaluation through soil sanitation, EUR 17.9 million was invested during the observation period. Investments in the public roadway expansion and public flood protection are not accounted for in the fixed assets of the HPA as these assets are not owned by the Free and Hanseatic City of Hamburg. A total of EUR 30.6 million was invested for the expansion of the road and bridge system including the section of road on the Rethebrücke lift bridge and a total of EUR 15.0 million for the expansion of public flood protection.
Investments subsidies are identified as special items for investment subsidies. They amounted to a total of EUR 280.8 million as of 31 December 2014.
This value is offset by the corresponding book values of the general infrastructure assets. After the deposit of the final tranche of the HHLA Billion of EUR 185.0 million in the capital reserve and the scheduled reversal of EUR 103.8 million, the equity capital of the Hamburg Port Authority amounts to EUR 1,098.2 million. This is an increase of EUR 81.1 million over the previous year.
Provisions are separated into the provisions for pensions of EUR 165.6 million and other provisions of EUR 128.1 million. The Hamburg Port Authority evaluates the claims from existing pension obligations based on the “projected unit credit method”. The assignment of future benefits was determined based on the relation between the already covered employment period and the remaining period until the start of the pension. Pension provisions apply to about half of the 262 civil servants and 2,194 employees. The pension provisions are offset by receivables from the Free and Hanseatic City of Hamburg amounting to EUR 78.7 million, resulting from the commitment of the FHH with regard to the Establishing Act (Errichtungsgesetz) to assume the pension obligations of active employees incurred before the establishment of the HPA.
8. FINANCIAL AND NON-FINANCIAL KEY PERFORMANCE INDICATORS
With regard to the financial key performance indicators, reference is made to the explanations above with regard to the turnover, material and personnel costs, other operating expenses and fixed assets and equity. Below, the non-financial key performance indicators are outlined. In 2013, the labour turnover rate of the Hamburg Port Authority of 4 % was once more below the average rate of the Free and Hanseatic City of Hamburg and even below its own rate last year (5 %). The labour turnover rate of the Free and Hanseatic City of Hamburg stood at 9 % in 2013.
In 2013, a sustainability report in line with the guidelines published by the Global Reporting Initiative (GRI) was presented for the first time. The ongoing update and adoption of the report in 2015 increases the comparability with the ecological, economic and social aspects of the activities of ports such as Antwerp and Rotterdam.
The construction of a shore power station for cruise ships has started and will be completed in 2015. The investment is an important milestone in order to secure the ecological power supply of cruise ships in the Port of Hamburg.
2014 2013
Staff as of 31 December 1,810 1,819 −9 Average number of operative employees 1,810 1,808 +2
Fairway adjustment is happening
The positive basic parameters are all the more gratifying in light of the still-outstanding positive decisions for the urgently needed fairway adjustment. At the same time it is becoming clear that the position of the Port of Hamburg as a global port can only be secured if competitiveness is maintained and extended. Only a high-performance port with highly efficient terminals and stable infrastructural conditions is able to master the continuously intensifying competitive situation. Since the start of production at the JadeWeserPort has had no impact on the turn-over in Hamburg so far, the opening of the first construction stage of Maasvlakte II in 2015 is eagerly awaited. It is almost impossible to predict and remains to be seen to what extent shipping companies might change their route planning based on a possibly aggressive pricing policy by the new terminal. The HPA is currently expecting the construction to start at the end of 2015 at the earliest. The investment plan provides for an investment total of EUR 32 million for 2015.
Economic planning for the upcoming year
The positive assessment of traffic development at the Port of Hamburg as well as the regular rental increases will mean that the turnover of 2015 will be slightly above that of 2014. It is currently planned to be EUR 179.4 million. The planning requirements for the operation are very ambitious and include the objective of lowering the ongoing expenses over the previous year. After subtracting the non-taxable expenses for water depth maintenance and the non- recurring effect related to the implementation of the IAPH World Ports Conference, significant cost reductions are planned in the area of material costs/services purchased in particular. Despite a committed programme to increase efficiency, the area of personnel expenses will see a slight increase in personnel costs, which result exclusively from the tariff provisions and the effects of the projected allocations to pension provisions.
The planned turnover is slightly above that of the reporting year due to rental increases and adjustment of user fees for the port railway.
The planned loss for the year amounts to EUR 29.8 million and is significantly below that of the reporting year. Due to the fact that expensed projects are funded differently, a direct comparison of the annual results is not possible.
In 2015, the expansion and development of the Port of Hamburg as well as the fundamental maintenance and renewal of the existing infrastructure facilities will be further promoted with a total investment of about EUR 252.9 million (of which about EUR 85.3 million will be capitalised). The performance volume is divided into the publicly funded general infrastructure (2/3) and the user-specific infrastructure (1/3).
12. RISK AND OPPORTUNITY REPORT
Risk and opportunity management objectives and strategies
Risk and opportunity management (RCM) is a fundamental element of successful corporate management. The management of the Hamburg Port Authority is taking into account all relevant risks and opportunities, which could result from the German Corporate Control and Transparency Act (KonTraG). This is ensured by the establishment of the risk and opportunity management system as a tool for corporate management. The key objectives of the RCM include the guarantee of an efficient performance of duty with regard to HPAG and the compli-ance of economic planning through risk-conscious decisions, which even includes the possible utilisation of opportunity that comes with the acceptance of risk, as well as the limitation of risks to an acceptable level at the lowest possible cost.
The objective is not to avoid all potential risks but to create room for manoeuvre, which allows a conscious approach to risks based on the knowledge of the origin of risks and interdepend-encies. In the end, all potentially substantial or existence-jeopardising threats arising from risks and possibly missed opportunities should be recognised and appropriate countermeas-ures taken in order to improve the company result or avoid losses. The essential information regarding HPA risk and opportunity management is available in the form of a handbook. It
includes the legal framework, the persons responsible, those directly participating in the risk management process and their job description. Employees can access the handbook as well as additional information on the intranet.
The role of internal revision in risk and opportunity management
Internal revision monitors the ability to function, correctness, effectiveness and transparency of the HPA risk and opportunity management. This is determined within the framework of audits.
Risks
The following risks have been identified as substantial within the framework of risk inventories for the HPA. These could have a considerable negative impact on the business operations, finance and profit situation and the reputation of the HPA.
Financing
In 2014, the HPA will have access to financing from proceeds of HHLA shares for investment and expenses for basic maintenance of the public infrastructure for the last time. Current planning anticipates that the overall result achieved will be used up during 2015, except for a remainder of EUR 45 million. This means that, just like in previous years, the HPA will need to secure its financing for public infrastructure investments and the public tasks entrusted to it, such as traffic facilities and water depth maintenance, directly from the budget of the FHH. These developments do not have consequences on the financial or overall results situation for the economic planning year 2015 since the HPA is still provided with sufficient financing from the remaining capital reserves (HHLA Billion). Still, this situation with regard to limited financial resources as of 2016 et seq. ultimately leads to the risk of taking project delays into account provided that the project volume listed in the investment plan cannot be fully financed within the estimated time and with the estimated financing from the public budget.
Sedimentation
The Port of Hamburg is highly dependent on the fact that access waterways are deep enough to accommodate seagoing vessels. Therefore it is important to maintain sufficient water depths and follow through with the planned fairway adjustment to enable the tidal passage of ships with a draught of up to 14.5 metres. Naturally occurring sedimentation causes a constant input of sediments that need to be dredged regularly. Sedimentation rates fluctuate wildly; they are subject to many factors and it is very difficult to influence them. In 2014, a lot of dredging had to be carried out due to the low headwater discharge of the River Elbe. The pollutant concentrations in Elbe sediments are still high and pose a particular challenge for Hamburg. To support restorative measures in the catchment area, the HPA and the State Ministry of Urban Development and Environment (BSU) jointly run ELSA, a River Elbe sediment pollutant remediation project.
Due to critical ecological situations in the water, e. g. low oxygen concentration in the water, the available options for maintaining water depths in the summer months are limited. The state government of Schleswig-Holstein extended the agreement up until the end of 2015 that allows the relocation of sediments from the Hamburg Elbe federal waterway section to the North Sea at Tonne E3.
In order to develop a viable long-term solution, the Federal Waterways and Shipping Adminis-tration and the HPA have initiated the Tidal Elbe River Engineering and Sediment Management Concept (RESMC) which will work out recommendations by early 2015 on how to deal with sediments in the tidal Elbe. For the disposal of more highly contaminated dredge material that cannot be relocated within the water, the Francop and Feldhofe depots on Hamburg state territory are available. The concept of securing the shore disposal is being continued in an appropriate and future-oriented way.
Fairway adjustment
The progress of the fairway adjustment project has been marked so far by continuous opposition by interest groups and pending legal actions. This is causing a delay, which could lead to a loss in sales and handling volume as well as a loss of image for the Port of Hamburg and hence also to a loss in revenue for the HPA. In addition to the depth restrictions, the current
development with regard to ship widths deepens the transit restrictions (Befahrungsrestrik-tionen) on the Elbe and leads to a significant degradation of the access conditions to the Port of Hamburg due to a higher number of wider ships. The outcome of the legal actions can neither be planned nor controlled; possible financial consequences are not predictable.
Development of the terminal capacities in North-Western Europe
Taking the consequences of the financial crisis into account, the known terminal expansion projects on the North-Western European coast indicate that excess terminal capacity will be available for the time being. Tougher competition among the North Range ports might be a direct result of this. This will additionally be influenced by the strategies of the shipping com-panies with regard to the utilisation of their own terminals. If the competitive situation of the Port of Hamburg deteriorates, it could have a negative effect on the HPA’s revenue as these are directly related. This risk can neither be planned nor controlled; possible financial conse-quences are not predictable.
Development of the size of vessels
In recent years, many fleet segments have shown an above-average increase in larger vessels. With increasing vessel sizes, the significance of these restrictions for the competitive situation of the Port of Hamburg and its impact on the HPA is also increasing. These trends cause an increase in the traffic density and complexity of the sovereign tasks for the surveillance of shipping traffic. This leads to a higher risk of accident and the risk of an increased frequency of traffic bottlenecks in the Port of Hamburg. This would cause risks of liability or in the case of permanent traffic bottlenecks the risk of losing regular services, which again would cause a loss in revenue for the HPA. To avoid this risk, the HPA continuously optimises the control of traffic flow. This is achieved by the development of traffic security systems, regular training of employees and the simulation of initial port calls of large vessels, amongst others. The risk is counteracted with a variety of measures such as the continuous operational, technical and personnel optimisation of the vessel traffic service centre.
Infrastructure
The technical risks primarily lie in the timely guarantee of the availability of existing infrastructure facilities and the supply of new infrastructure facilities, which will be necessary for future traffic figures. The HPA can only manage these tasks with optimum maintenance and project management. The increase in traffic volume as well as the traffic peaks caused by large container vessels lead to a special challenge for road and rail. In order to manage the future growth in trafficsmoothly it will be necessary to invest not only in the infrastructure but also in the digitalisation of the traffic process flow (smartPORT logistics).
Financing instruments
In 2007 and 2013, interest rate hedges were entered, which are completely offset by basic transactions. These exclusively serve the optimisation of credit conditions and interest rate hedging and therefore the minimisation of risk. The established interest rate hedge is being controlled. A regular report is issued to risk controlling as well as the management board.
OPPORTUNITIES Increase in revenue
The objective of the HPA is to develop the Port of Hamburg in a needs-oriented way in order to fully take advantage of the potential pointed out in current forecasts. To identify and illustrate trends and development, a permanent task includes analysing and if necessary correcting the created forecasts. By continuously monitoring the market and global trends as well as through constant consultation of port users, these measures for the strategic direction of the port are regularly adjusted and optimised. This opens the opportunity for the Port of Hamburg to improve its competitive position. Additional market shares could be gained which would lead to higher revenues for the HPA.
Construction of a third cruise ship terminal
The construction of the third cruise ship terminal opens the possibility for the HPA to receive dividend payments from the holding and operating company, in which the HPA has a direct holding of 51 %. The equity providers will see positive equity returns based on the increase in annual results during the course of planning and the consequent distribution potential.
Overall picture of the risk situation
The overall assessment of the risk situation did not result in any major changes compared to the previous year. Risks that could either by themself or overall pose a threat to the continued existence of the company or any significant future risks that go beyond the normal operational risk are not evident. The management board is convinced that it can make use of the existing opportunities without taking unacceptably high risks.
Hamburg, 20 March 2015
Jens Meier Wolfgang Hurtienne
FIGURES
Profit and Loss Account
Profit and Loss Account for the Financial Year from 1 January
to 31 December 2014, Hamburg Port Authority, Anstalt des
öffentlichen Rechts (Institution under Public Law), Hamburg
in EUR 2014 2013
1. Turnover 176,202,531.13 280,680,206.55 2. Decrease in work in progress and finished goods 0,00 −94,987,567.19 3. Other own work capitalised 12,059,688.88 14,639,232.88 4. Other operating income 92,807,724.95 78,977,895.81 5. Cost of materials
a) Cost of raw materials and consumables 9,979,780.72 11,226,118.22 b) Cost of purchased services 148,018,149.35 128,072,504.28 6. Staff costs
a) Wages and salaries 89,494,837.25 85,102,194.66 b) Social security, pensions and other benefits
of which relating to pensions
EUR 2,509,234.31 (previous year: EUR 3,564,134.41) 19,429,080.01 20,148,111.72 7. Amortisation and depreciation of fixed intangible and tangible assets 47,525,239.83 46,415,021.46 8. Other operating expenses 42,597,838.43 52,324,007.18 9. Other interest receivables and similar income
of which from the Free and Hanseatic City of Hamburg EUR 25,837.00 (previous year: EUR 2,206.30) of which from affiliated companies
EUR 55,159.55 (previous year: EUR 0.00) 9,444,671.98 7,486,238.22 10. Other interest payable and similar expenses 30,432,234.02 23,317,134.32
11. Loss on ordinary activities −96,962,542.67 −79,809,085.57
12. Extraordinary income 1,587,180.60 1,587,180.60 13. Extraordinary expenses 1,970,415.66 1,970,415.66
14. Loss on extraordinary activities −383,235.06 −383,235.06
15. Other taxes 6,484,043.31 6,392,301.37
16. Loss for the year −103,829,821.04 −86,584,622.00
17. Loss brought forward from the previous year 0.00 −26,041,869.02 18. Withdrawals from capital reserves 103,794,316.54 112,626,491.02
FIGURES
Balance Sheet
Balance Sheet for the Year ended 31 December 2014
Hamburg Port Authority, Anstalt des öffentlichen Rechts
(Institution under Public Law), Hamburg
EQUITY AND LIABILITIES
in EUR 31.12.2014 31.12.2013
A Equity
I Subscribed Capital 150,000,000.00 150,000,000.00
II Capital Reserves 948,360,522.11 867,155,838.65
III Balance Sheet Deficit −35,504.50 0.00
1,098,325,017.61 1,017,155,838.65
B Special Item for Investment Subsidies
Special item for investment subsidies 280,821,143.75 283,323,114.17
C Provisions
1. Provisions for pensions and similar obligations 165,646,233.89 144,231,433.23 2. Tax provisions 900,000.00 450,000.00 3. Other provisions 128,146,883.37 124,826,039.39
294,693,117.26 269,507,472.62
D Liabilities
1. Bank loans and overdrafts 214,044,424.52 227,803,738.85 2. Trade creditors 22,803,846.76 15,168,628.28 3. Amounts owed to the Free and Hanseatic City of Hamburg
and amounts owed to group undertakings 145,646.47 1,003,446.27 4. Other liabilities 16,562,693.87 17,983,736.02 253,556,611.62 261,959,549.42 E Deferred Income Deferred income 3,751,000.74 3,534,760.89 1,931,146,890.98 1,835,480,735.75 ASSETS in EUR 31.12.2014 31.12.2013 A Fixed Assets I Intangible Assets
1. Purchased concessions, industrial property and similar rights
and assets, and licences in such rights and assets 24,664,097.92 21,740,532.95 2. Payments on account 1,927,842.94 7,108,493.79
26,591,940.86 28,849,026.74
II Tangible Assets
1. Land, similar rights and buildings including
buildings on third-party land 1,019,765,705.37 998,503,326.56 2. Technical equipment and machinery 296,528,614.33 293,366,607.74 3. Other equipment, factory and office equipment 20,995,369.57 21,429,289.20 4. Payments on account and assets in the course of construction 205,141,762.18 171,349,897.15
1,542,431,451.45 1,484,649,120.65
III Financial Assets
1. Shares in affiliated companies 127,000.00 0.00 2. Loans to affiliated companies 12,901,729.54 0.00 3. Participating interests 16,453.00 16,453.00
13,045,182.54 16,453.00
1,582,068,574.85 1,513,514,600.39
B Current Assets I Stocks
1. Raw materials and consumables 2,766,128.55 2,929,908.17
II Receivables and Other Assets
1. Trade debtors 7,134,509.57 9,107,626.64 2. Amounts owed by the Free and Hanseatic City of Hamburg
and amounts owed by group undertakings 300,197,450.46 204,400,026.02 3. Other assets 7,517,554.61 5,795,972.43
314,849,514.64 219,303,625.09
III Cash in Hand and Bank Balances
Cash in hand and bank balances 30,794,826.39 99,116,682.63
348,410,469.58 321,350,215.89
C Prepaid expenses
Prepaid expenses 667,846.55 615,919.47
FIGURES
Fixed-Asset Movement Schedule
Fixed-Asset Movement Schedule for the Financial Year from
1 January 2014 to 31 December 2014 – Commercial Law,
Hamburg Port Authority, Anstalt des öffentlichen Rechts
(Institution under Public Law), Hamburg
in EUR
Acquisition or Production Costs Depreciations
As of 01.01.2014 Additions Disposals Repostings As of 31.12.2014 As of 01.01.2013 Current Financial Year Disposals As of 31.12.2014 Book Value 31.12.2014 Book Value 31.12.2013
I Intangible Assets
1. Purchased concessions, industrial property and similar rights and assets, and licences
in such rights and assets 45,121,898.71 4,328,810.72 57,333.81 6,580,249.74 55,973,625.36 23,381,365.76 7,985,495.49 57,333.81 31,309,527.44 24,664,097.92 21,740,532.95 2. Payments on account 7,108,493.79 1,268,580.29 0.00 −6,449,231.14 1,927,842.94 0.00 0.00 0.00 0.00 1,927,842.94 7,108,493.79
Total intangible assets 52,230,392.50 5,597,391.01 57,333.81 131,018.60 57,901,468.30 23,381,365.76 7,985,495.49 57,333.81 31,309,527.44 26,591,940.86 28,849,026.74
II Tangible Assets
1. Land, similar rights and buildings including
buildings on third-party land 1,029,918,611.61 12,603,221.09 1,967,578.12 17,110,802.04 1,057,665,056.62 31,415,285.05 6,723,875.20 239,809.00 37,899,351.25 1,019,765,705.37 998,503,326.56 2. Technical equipment and machinery 489,521,465.28 14,253,652.69 2,731,367.09 17,588,631.51 518,632,382.39 196,154,857.54 27,474,782.23 1,525,871.71 222,103,768.06 296,528,614.33 293,366,607.74 3. Other equipment, factory and
office equipment 50,599,064.77 3,528,137.04 1,744,141.82 1,451,320.15 53,834,380.14 29,169,775.57 5,341,086.91 1,671,851.91 32,839,010.57 20,995,369.57 21,429,289.20 4. Payments on account and assets in the
course of construction 171,349,897.15 71,280,221.10 1,206,583.77 −36,281,772.30 205,141,762.18 0.00 0.00 0.00 0.00 205,141,762.18 171,349,897.15
Total tangible assets 1,741,389,038.81 101,665,231.92 7,649,670.80 −131,018.60 1,835,273,581.33 256,739,918.16 39,539,744.34 3,437,532.62 292,842,129.88 1,542,431,451.45 1,484,649,120.65
III Financial Asssets
1. Shares in affiliated companies 0.00 127,000.00 0.00 0.00 127,000.00 0.00 0.00 0.00 0.00 127,000.00 0.00 2. Loans to affiliated companies 0.00 12,901,729.54 0.00 0.00 12,901,729.54 0.00 0.00 0.00 0.00 12,901,729.54 0.00 3. Participating interests 16,453.00 0.00 0.00 0.00 16,453.00 0.00 0.00 0.00 0.00 16,453.00 16,453.00
Total financial assets 16,453.00 13,028,729.54 0.00 0.00 13,045,182.54 0.00 0.00 0.00 0.00 13,045,182.54 16,453.00
1. GENERAL INFORMATION
The annual financial statements of the Hamburg Port Authority, Anstalt des öffentlichen Rechts (HPA), Hamburg, have been prepared in accordance with section 13(2) of the Act of the Establishment of the Hamburg Port Authority (HPAG). The financial statements have been drawn up in accordance with the provisions set forth in the German Commercial Code applicable to corporations insofar as the further provisions of HPAG do not conflict with the application of German commercial law.
The profit and loss account has been prepared in accordance with the type-of-expenditure format.
The financial year of the HPA corresponds to the calendar year.
2. ACCOUNTING AND VALUATIONS METHODS
The financial statements have been prepared based on the following accounting and valuation methods.
Intangible assets are valued at acquisition cost less planned depreciation calculated on a
straight-line basis to write off their cost over their estimated useful lives, whereby the periods of use range from three to five years. The HPA has not capitalised any internally generated intangible assets.
Tangible assets are principally valued at acquisition and production costs and, insofar as they
are subject to wear and tear, reduced by planned straight-line depreciation. The periods of use range from three years (hardware) to 75 years (railway bridges made of steel). For decreases in value that are most likely to last unplanned depreciations will be made.
Foreign capital costs in accordance with section 255(3) 2nd sentence of the HGB (German Commercial Code) have been included in the production costs created so far for the project “Kaimauer Norderweiterung Altenwerder-Nord”. Upon completion of the lease, the production costs will be transferred to current assets as unfinished and finished products, respectively. Land and similar rights, municipal buildings and other facilities taken over from the Free and Hanseatic City of Hamburg (FHH) for which no historical residual book values could be deter-mined have been valued on the basis of capitalised earnings values and comparative values as of 1 October 2005. It is prohibited by law to use immovable/landed property as collateral or sell it. In particular, the capitalised earnings value method has been applied to land leased
out, with and without connection to quay walls, as well as to land not yet leased out but which can be leased out. All other land has been valued using the comparative value method. Water areas have been estimated at a pro memoria value of EUR 1.00 as both the capitalised earn-ings value and the comparative value method cannot be applied.
Since 1 January 2008, low-value assets up to a purchase value of EUR 150 have been written off immediately in the year of purchase. Assets acquired after 31 December 2007 whose acquisition or production costs range from EUR 150 to EUR 1,000 are entered in a collective item, which is written off annually on a straight-line basis at a rate of 20 %.
Financial assets are valued at acquisition cost.
Raw materials and consumables shown under stocks are assessed at acquisition cost or the lower current value (lower-of-cost value).
Receivables and other assets are valued at their nominal value or cash value, taking all
recognisable risks into account.
Cash in hand is valued at nominal value.
Expenses incurred or income generated prior to the balance sheet closing date are shown
as prepaid expenses/deferred income insofar as they represent expenses or income over a
certain period after this date.
Pension provisions are reflected in the balance sheet in accordance with the projected
unit credit method pursuant to the resolution of 30 November 2010 adopted by the Senate committee of the FHH in charge of public enterprises. The corresponding claim against the FHH has also been valued based on actuarial principles (analogous to determining the pension provisions).
Other provisions are recognised as an expense at the settlement amount necessary in
accordance with the principles of prudent commercial judgement. Semi-retirement and anniversary provisions are valued based on actuarial principles. The step-up amounts of the semi-retirement agreements are treated as severance payments.
For provisions with a residual term of more than one year, future price and cost increases have been taken account of and discounted as of the balance sheet closing date. The discount rates applied are the average market rates of interest of the past seven financial years as determined and published monthly by the Deutsche Bundesbank (German Federal Bank) in accordance with the Rückstellungsabzinsungsverordnung (Regulation on the Discounting of Provisions) that corresponds to the residual terms of the provisions.
Provisions for expenses pursuant to section 249(2) HGB, old version, in a total amount of TEUR(1) 5,000 have been maintained as provided for in section 67(3) 1st sentence EGHGB (Introductory Law of the German Commercial Code).
Liabilities are valued at their settlement amount.
Deferred taxes as defined in section 274 HGB have not been accounted for as the HPA, as an
infrastructure-providing enterprise, only generates tax losses which are offset by equity con-tributions by the FHH. Due to its nature as an infrastructure-providing enterprise as well as due to the way the financing is structured, the existing differences between the valuation of assets, debts and prepaid expenses/deferred income in accordance with German commercial legislation and their valuation for tax purposes will lead to neither tax burdens nor tax reliefs in the foreseeable future as they will be reversed in later financial years.
Due to the different valuation methods used, there are differences between the valuation of the fixed assets and the valuation of the provisions pursuant to German commercial legislation and for tax purposes.
MISCELLANEOUS
Notes to the Annual Financial Statements
Notes to the Annual Financial Statements for the Financial Year
from January 1 to December 31 2014,
Hamburg Port Authority, Anstalt des öffentlichen Rechts
(Institution under Public Law), Hamburg
3. NOTES TO THE BALANCE SHEET Fixed assets
The development of the fixed assets is shown in the fixed-asset movement schedule at the end of the notes to the annual financial statements.
The financial assets contain the participating interest of the following affiliated companies:
CGH Terminaleigentumsverwaltungsgesellschaft mbH, Hamburg (TEVG)
The company’s share capital is TEUR 25 of which 100 % has been taken over by the HPA. The equity is TEUR 26 as of 31 December 2014, the profit for the short financial year from 20 March 2014 to 31 December 2014 amounts to TEUR 1.
CGH Terminaleigentumsgesellschaft mbH & Co. KG, Hamburg (TEG)
The HPA with a limited partnership contribution of TEUR 7,191 of which TEUR 51 has been deposited so far, as well as the FHH with a limited partnership contribution of TEUR 6,909, of which TEUR 49 has been deposited so far, are limited partners. TEVG is a general partner, not involved with the company’s assets. The equity is TEUR −5, the deficit for the short financial year from 20 March to 31 December 2014 amounts to TEUR 127.
CGH Cruise Gate Hamburg GmbH, Hamburg (CGH)
The company’s share capital is TEUR 100 of which 51 % has been taken over by the HPA. An additional share of 49 % has been taken over by Flughafen Hamburg GmbH (FHG). The equity is TEUR 69, the deficit for the short financial year from 12 September to 31 December 2014 amounts to TEUR 31.
The financial assets contain the participating interest in Polder-Seehäfen-Harburg GmbH, Hamburg, recognised as TEUR 9. The HPA’s participation share is roughly 9 % of the equity of TEUR 105; the profit for the 2013/2014 financial year amounts to TEUR 3.
Receivables and other assets
The balance sheet item “amounts owed by the FHH and group undertakings” includes trade debtors amounting to TEUR 105,866 (previous year: TEUR 104,357) as well as other receivables amounting to TEUR 194,331 (previous year: TEUR 100,043). Trade debtors and amounts owed by the FHH and group undertakings includes TEUR 95,592 (previous year: TEUR 95,477) of receivables from the long-term leasing out of four quay walls that have been discounted. Trade debtors owed by affiliated companies amounts to TEUR 20 (previous year: TEUR 0).
Equity
Due to the changes in the financing system of the HPA in 2009, the institution has been receiving annual tranches from the proceeds of the partial initial public offering of Hamburger Hafen und Logistik AG (HHLA), Hamburg, – the so-called “HHLA Billion [HHLA-Milliarde]” – to finance the development and management of the Port of Hamburg. These tranches will be appropriated to capital reserves. In the financial year TEUR 184,999 was appropriated. TEUR 103,794 was withdrawn from capital reserves for ongoing expenses, whereby TEUR 53,794 was allotted for projects and TEUR 50,000 for maintenance measures.
Special item for investment subsidies
The HPA’s financing system underwent fundamental changes in the 2009 financial year. Until 30 April 2009 the HPA received public subsidies for investments and projects to maintain and expand the general infrastructure, which were mostly appropriated to the special item. Since 1 May 2009 these subsidies have been largely replaced by the “HHLA Billion”, which will be granted in annual tranches and allocated to capital reserves, from where they will be withdrawn in favour of the balance sheet result. The special item for investment subsidies
is reversed and allocated to fixed assets on a prorated basis in accordance with the relevant depreciation amounts. The amount of the special item thus corresponds to the subsidised general infrastructure residual book values.
Provisions
The pension provisions have been made on the basis of the actuarial calculation method, whereby the projected unit credit method has been applied. An interest rate of 4.53 % and an assumed increase in wages and salaries of 2.0 % have been used as a basis. The assumed increase in pensions is 1.0 % for blue/white-collar workers and 2.0 % for civil servants. The 2005 G life tables drawn up by Prof. Dr Klaus Heubeck have been used. The flat-rate discount rate applied to the pension provisions is the average market rate of interest as published by the Deutsche Bundesbank, based on an assumed residual term of 15 years.
in TEUR 31.12.2014 31.12.2013
Trade debtors 7,135 9,108 of which amounts falling due after more than a year 0 0 Amounts owed by the FHH and group undertakings 300,197 204,400 of which amounts falling due after more than one year 183,898 178,653
Other assets 7,518 5,796
of which amounts falling due after more than one year 104 133
Receivables and other assets 314,850 219,304
Receivables and other assets 184,002 178,786
in TEUR 31.12.2014 31.12.2013
Subscribed capital 150,000 150,000 Capital reserves 948,361 867,156 of which capital contribution 184,999 419,573 of which capital withdrawal −103,794 −112,836 Balance sheet deficit −36 0 of which from annual result −103,830 −86,584 of which withdrawal from capital reserves 103,794 112,626
Equity 1,098,325 1,017,156
in TEUR 31.12.2014 31.12.2013
Provisions for pensions and similar obligations 165,646 144,231
Tax provisions 900 450
Provisions for staff administration 14,126 14,712 Other provisions 114,021 110,114 of which unpaid suppliers’ invoices 24,172 30,066 of which Stiftung Lebensraum Elbe (Elbe Habitat Foundation) 7,874 9,142 of which compensation & reimbursement/replacement
measures 3,683 3,686
of which obligations regarding the disposal of
dredged material 38,655 36,713 of which maintenance dredging 4,100 500 of which risk provision regarding Hamburg Aluminium Werke 5,000 5,000 of which unexploded ordnance (UXO) clearance 2,860 3,565 of which funding pledges, private flood protection 25,521 18,679
The change in the valuation method for pension provisions and other benefits pursuant to BilMoG (Accounting Law Modernisation Act) and the FHH-wide changeover to the projected unit credit method resulted in an additional one-time provision in 2010 in the amount of TEUR 26,098 for pension provisions and TEUR 3,459 for other benefits. The transitional provision set forth in section 67(1) EGHGB has been applied and of this amount, one fifteenth or TEUR 1,740 is appropriated annually to pension provisions and TEUR 230 to other benefits. The appropriation is reflected in the profit and loss account as an extraordinary expense. The amount from the initial application of TEUR 17,398 for pension provisions and TEUR 2,306 for other benefits, which is not shown in the balance sheet yet, will be consistently appropriated to pension provisions over the remaining transitional period.
Based on the Act on the Establishment of “Stiftung Lebensraum Elbe” of 11 May 2010, the HPA is obligated to pay to the foundation, from 1 March 2009 onwards, 4 % annually of the income generated from port dues (port fees & charges and demurrage charges). The obligation will end after the foundation has been paid a total of EUR 40 million as set forth in the act. According to the HPA’s calculations the last such payment will be due in 2020. Due to interventions in natural environments caused by ongoing projects managed by the HPA, provisions for compensation and replacement measures as defined in the Hamburg Nature Protection Act have been made (TEUR 3,683).
The provisions for obligations regarding the disposal of dredged material include a long-term portion for the obligations of silt disposal sites concerning the disposal of dredged material by the HPA (TEUR 23,655).
The risk provision for Hamburg Aluminium Werke (HAW) has been made due to soil
contamination of the land then leased out to HAW (TEUR 5,000).
Liabilities
The balance sheet item “amounts owed to the FHH and amounts owed to group undertakings” includes other liabilities amounting to TEUR 17 (previous year: TEUR 0) as well as trade creditors amounting to TEUR 129 (previous year: TEUR 1,003).
There are no liabilities secured by lien or similar rights.
Contingent liabilities
The HPA has joined TEG as a limited partner with an investment of TEUR 7,191, of which TEUR 7,140 is still pending. Due to the existing financing concept, a claim is not expected.
Other financial obligations
4. NOTES TO THE PROFIT AND LOSS ACCOUNT Distribution of the turnover
Rental income from quay walls
The item “rental income from quay walls” of TEUR 17,190 (previous year: TEUR 17,026) includes current regular rent payments for quay walls of TEUR 12,380 (previous year: TEUR 12,208) as well as, for the first time, a sub-item “quay wall interest/margin” in the amount of TEUR 4,810 (previous year: TEUR 4,818). The sub-item includes the linear appropriation of the profit margin obtained from leasing out four quay walls including the transfer of economic ownership to the tenant for the terms of the agreements as well as interest payable on the resulting receivables. Showing the interest payable under turnover is optional. For reasons of clarity the HPA has opted to do so.
Reversal of/posting to special item for investment subsidies
In the financial year TEUR 19,935 (previous year: TEUR 26,242) was appropriated to the special item for investment subsidies, whilst TEUR 22,437 (previous year: TEUR 23,413) was reversed and recognised as income.
Income/expenses unrelated to the accounting period
The income unrelated to the accounting period amounts to TEUR 4,463 (previous year:
TEUR 4,957). The income mainly comes from provision reversals.
The expenses unrelated to the accounting period amount to TEUR 12,392 (previous year:
TEUR 15,063), of which TEUR 7,603 concerns the subsequent charges for contributions, which ended in 2009, after completion of a check of the use by the BWVI while TEUR 4,534 concerns the demand for the adjustment of pension equalisation payments owed by the FHH as a result of the actuarial recalculation of the compensation claim.
Interest receivables, interest payable
Interest receivables predominantly include income from the compounding of long-term
accounts receivable in the amount of TEUR 9,152 (previous year: TEUR 7,182).
Interest payable includes expenses from the compounding of long-term provisions in the
amount of TEUR 21,769 (previous year: TEUR 14,386).
in TEUR 31.12.2014 31.12.2013
Bank loans and overdrafts 214,044 227,804 of which the residual term is less than one year 14,343 14,460 of which the residual term is more than five years 142,657 157,006 Trade creditors 22,804 15,169 of which amounts falling due in less than one year 22,804 15,169 of which amounts falling due in more than five years 0 0 Amounts owed to the FHH and amounts owed to
group undertakings 146 1,003 of which amounts falling due in less than one year 146 1,003 of which amounts falling due in more than five years 0 0 Other liabilities 16,563 17,984 of which amounts falling due in less than one year 10,480 11,887 of which amounts falling due in more than five years 28 42
Total liabilities 253,557 261,960
of which amounts falling due in less than one year 47,773 42,519 of which amounts falling due in more than five years 142,685 157,048
in TEUR 31.12.2014 31.12.2013
Multi-year leases, tenancy and maintenance agreements 26,953 27,048 of which with group undertakings 6,239 6,515 Purchase commitments 281,355 203,310 Support programme, private flood protection 67,649 74,591
Total other financial obligations 375,957 304,949
in TEUR 2014 2014
Rental income from land held 65,917 63,059 Rental income from quay walls 17,190 17,026 Other rental income 6,670 6,049
Total rental income 89,777 86,134
Port dues 51,157 48,425
Income generated by the port railway 21,397 19,164 Elbtunnel and bridge fees 98 99 Fees and charges 2,723 3,395 Income from the supply of maintenance and other services 10,663 12,177 Turnover unrelated to the accounting period 387 111,286
