Facts, Figures, Data.

Transcription

1 Facts, Figures, Data. Financial Report 2014

2 Financial Report Table of Contents 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

3 2 Financial Report 2014 / Supervisory Board s Report 3 REPORTS Supervisory Board s Report During the 2014 financial year, the turnover volume in the Port of Hamburg has increased by 4.8% to 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 corresponding 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 processes, 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 The Hamburg Port Authority anticipates a slight increase in sales, especially through rising rents and fees for the port railway and waterway. 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 The Chairman of the Supervisory Board 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 personnelrelevant topics presented by the management board and has presented the results and recommendations to the supervisory board.

4 4 Financial Report 2014 / Directors Report 5 REPORTS Directors Report Directors Report 2014 of the Hamburg Port Authority, Anstalt des öffentlichen Rechts (Institution under Public Law), Hamburg 1. BUSINESS MODEL The Hamburg Port Authority has been providing future-oriented port management services, presenting a single face to the customer, since As an Institution under Public Law, the HPA is in charge of paving the way for the efficient, resource-friendly and sustainable preparation and implementation 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 statutory 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 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 million tonnes and Antwerp achieved a plus of 4.3 % to 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 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 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 cruise liners docked in the Hanseatic city in 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 ceremony, 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 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 introduction 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.

5 6 Financial Report 2014 / Directors Report 7 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 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 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 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 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 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 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 construction 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 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 Mühlenwerder 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 projects. 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, however, 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 supplementary 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.

6 8 Financial Report 2014 / Directors Report 9 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 EARNINGS SITUATION Selected results in TEUR Turnover 176, , ,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 , ,899 Cost of materials 157, ,299 18,699 Staff Costs 108, ,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, ,626 8,832 Loss brought forward from the previous year 0 26,042 26,042 Balance sheet deficit 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 million was a result of extraordinary effects in 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 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 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 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. 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 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 expenditure to decline significantly. For this reason, the subsidies were not used in their entirety in 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 in M EUR Loan level Operation material account Investment account Debt level 43.1 % 44.5 % 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 in M EUR Fixed assets 1, , Capitalisation ratio 81.9 % 82.5 % Asset coverage ratio 69.4 % 67.2 % Equity capital 1, , Equity ratio 56.9 % 55.4 % Provisions of which provisions for pensions

7 10 Financial Report 2014 / Directors Report 11 The investments in intangible and tangible assets amounted to EUR million in the reporting year (previous year: EUR 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 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 Rethebrücke 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 million as of 31 December 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 million in the capital reserve and the scheduled reversal of EUR 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 million and other provisions of EUR 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 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 The investment is an important milestone in order to secure the ecological power supply of cruise ships in the Port of Hamburg. 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 implemented 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 developed, which will be implemented for the first time in The executive staff will pass through this programme gradually over a period of years. An additional element is the onlinebased leadership feedback (360 feedback), which will be implemented across the company following a successful pilot phase in 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 Staff as of 31 December 1,810 1,819 9 Average number of operative employees 1,810 1, 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 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 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.

8 12 Financial Report 2014 / Directors Report 13 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 turnover 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 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 It is currently planned to be EUR 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 nonrecurring 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 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 compliance 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 interdependencies. In the end, all potentially substantial or existence-jeopardising threats arising from risks and possibly missed opportunities should be recognised and appropriate countermeasures 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 Administration 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

9 14 Financial Report 2014 / Directors Report 15 development with regard to ship widths deepens the transit restrictions (Befahrungsrestriktionen) 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 companies 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 consequences 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. 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 Chairman of the Management Board Wolfgang Hurtienne Managing Director 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 traffic smoothly 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.

10 16 Financial Report 2014 / Profit and Loss Account 17 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 Turnover 176,202, ,680, Decrease in work in progress and finished goods 0,00 94,987, Other own work capitalised 12,059, ,639, Other operating income 92,807, ,977, Cost of materials a) Cost of raw materials and consumables 9,979, ,226, b) Cost of purchased services 148,018, ,072, Staff costs a) Wages and salaries 89,494, ,102, b) Social security, pensions and other benefits of which relating to pensions EUR 2,509, (previous year: EUR 3,564,134.41) 19,429, ,148, Amortisation and depreciation of fixed intangible and tangible assets 47,525, ,415, Other operating expenses 42,597, ,324, Other interest receivables and similar income of which from the Free and Hanseatic City of Hamburg EUR 25, (previous year: EUR 2,206.30) of which from affiliated companies EUR 55, (previous year: EUR 0.00) 9,444, ,486, Other interest payable and similar expenses 30,432, ,317, Loss on ordinary activities 96,962, ,809, Extraordinary income 1,587, ,587, Extraordinary expenses 1,970, ,970, Loss on extraordinary activities 383, , Other taxes 6,484, ,392, Loss for the year 103,829, ,584, Loss brought forward from the previous year ,041, Withdrawals from capital reserves 103,794, ,626, Balance sheet deficit 35,