Hamburger Hafen und Logistik AG: Sustainable Growth Targets for 2018 Following a Successful Year in 2017

HHLA Financial Year 2017
Sustainable Growth Targets for 2018 Following a Successful Year in 2017

- Revenue increases by 6.3 %, operating result (EBIT) by 5.6 %

- Dividend expected to rise by 13.6 % to EUR 0.67 per Class A share,
payout ratio of 66 %

- Marked increase in operating result forecast for 2018

- Chairwoman of the Executive Board, Angela Titzrath: will justify customers'
confidence through high quality and productivity

Hamburger Hafen und Logistik AG (HHLA) was able to strengthen and, in some cases, expand its market position in a challenging environment in the 2017 financial year. There was a clear improvement in key financial indicators. The Group's revenue rose to EUR 1.25 billion as a result of increased container throughput and container transport and successful management of the property portfolio. The operating result (EBIT) increased by 5.6 %, despite one-off expenses for an organisational restructuring and for the harmonisation of existing pension schemes. Once again, the Intermodal segment made a significant contribution to HHLA's performance.

Angela Titzrath, Chairwoman of HHLA's Executive Board: "The success of the 2017 financial year has given us the strength and momentum to continue working to implement our ambitious growth targets. All segments played their part in this. HHLA has solid foundations. This includes both our financial base and our prospects for the future as the driving force behind the digital transformation of the port. We continue to operate in a challenging market environment that requires us to be agile, flexible and innovative. Our growth-based corporate strategy is enabling us to meet these requirements. Our aim is to further increase quality, productivity and competitiveness in order to justify the confidence of our customers in HHLA's performance. With the agreed acquisition of the Estonian port operator Transiidikeskuse AS, we are pursuing our target of also achieving international growth. A target also served by the takeover of the remaining shares in Metrans."

Forecast for 2018
HHLA expects container throughput in 2018 to be on a par with the previous year. The container transport volume is also forecast to remain comparable to the previous year's level as Polish intermodal traffic is being realigned as it is integrated into Metrans. At Group level, this should mean that revenue is similar to that of the previous year.

The operating result (EBIT) at the Port Logistics subgroup is expected to rise markedly year-on-year in 2018. Earnings will be driven largely by the Container and Intermodal segments. The operating result (EBIT) at the Real Estate subgroup is expected to come in at approximately EUR 15 million due to planned, large-scale maintenance work that does not qualify for capitalisation. A substantial increase in the operating result (EBIT) is anticipated at Group level.

Port Logistics subgroup
As a result of increased container throughput and container transport, the listed Port Logistics subgroup generated revenue of EUR 1.22 billion in the 2017 financial year (previous year: EUR 1.15 billion) and an operating result (EBIT) in the amount of EUR 157 million (previous year: EUR 148 million). Lower financing costs led to a rise in net profit allocable to Class A shareholders of 11.7 % to EUR 71.2 million.

Dividend proposal for 2017
At the Annual General Meeting on 12 June 2018, the Executive Board and Supervisory Board
will propose a dividend of EUR 0.67 per dividend-entitled Class A share. This would increase the
dividend by 13.6 % compared to the previous year. The payout ratio of 66 % is once again at the upper end of the target range between 50 and 70 %.

Key Figures HHLA Group

Key Figures Port Logistics Subgroup^1,2

¹ Before consolidation between subgroups.
² Class A shares
³ 2017: Dividend proposal

About HHLA
Hamburger Hafen und Logistik AG (HHLA) is a leading European port and transport logistics company. Its container hubs are the points of intersection within a network that links ports with economic regions in their hinterland. Its business model is based on innovative technologies and is committed to sustainability.