HHLA closed the 2019 financial year on a successful note: Despite a significant deterioration in the market environment, particularly in the second half of the year, Group revenue increased by 7.1 percent to EUR 1.38 billion (previous year: EUR 1.29 billion). Thanks to the successful integration of the Estonian terminal operator HHLA TK Estonia, which was acquired in 2018, and a slight improvement at the Hamburg terminals, container throughput rose moderately. A significant increase was achieved in container transport. The Group's operating result (EBIT) of EUR 221.2 million (previous year: EUR 204.2 million) grew by 8.3 percent. The positive effect of the first-time application of IFRS 16 on EBIT amounted to around 14.4 million euros. Consolidated net profit after minority interests fell by 8.0%. HHLA expects a sharp decline in revenue and earnings in the current financial year as a result of dramatic changes in the operating environment.

The global coronavirus pandemic has led to measures to contain the spread of the virus on an unprecedented scale in the countries affected. This is affecting economic activity both at national level and in international transportation. The situation affects all economic sectors and therefore also international trade, which is important for HHLA. It is not possible to make a reliable forecast under these circumstances, but it can be assumed that revenue and operating result (EBIT) in the Port Logistics subgroup will be significantly lower than in the previous year. The primary reason for this is a possible sharp decline in container handling and transport, at least temporarily. We also believe that the operating result (EBIT) of the Real Estate subgroup could be significantly down on the previous year. Based on the aforementioned effects, a sharp decline in the operating result (EBIT) is expected at Group level. Due to the uncertainties described above, HHLA is focusing on financial management and securing liquidity. To this end, HHLA will continuously review and adjust its investment plans and cost trends. Based on the liquidity available as of December 31, 2019 and the aforementioned measures on the one hand, and on the basis of possible estimates for 2020 as a whole on the other, HHLA assumes that its liquidity will be sufficient to meet its payment obligations despite the negative impact of the coronavirus pandemic. Another focus of management is on protecting the health of employees and maintaining the operation of systemically important critical infrastructure in the Container and Intermodal segments.

Angela Titzrath, Chairwoman of HHLA's Executive Board, explained: "HHLA has already mastered many crises in its 135-year history. However, the shocks to economic life as a result of the coronavirus pandemic also represent a challenge for us on an unprecedented scale. However, we are aware of our responsibility as a service provider for the industrial nation of Germany. We will therefore consistently implement the measures necessary to steer HHLA through these challenging times with caution and prudence. We remain committed to our long-term goals, regardless of the changed framework conditions."

Port Logistics subgroup: business development in 2019
The listed Port Logistics subgroup achieved a significant increase in revenue of 7.3% to EUR 1.35 billion (previous year: EUR 1.26 billion). The operating result (EBIT) also increased significantly by 8.5 percent to 204.4 million euros (previous year: 188.4 million euros), resulting in a slight rise in the EBIT margin to 15.1 percent. The positive effect from the first-time application of IFRS 16 contributed around 13.4 million euros to this.

Real Estate subgroup: business development in 2019
In 2019, HHLA's properties in the historic Speicherstadt historical warehouse district and on the fish market site once again increased their revenue slightly by 2.5 percent to EUR 40.2 million (previous year: EUR 39.3 million), despite having already largely reached full occupancy. The significant increase in the operating result (EBIT) by 6.5% from EUR 15.5 million in the previous year to EUR 16.5 million was primarily due to the first-time application of IFRS 16 in addition to the increase in revenue from properties in both districts.

Dividend proposal for 2019
The Executive Board and Supervisory Board will propose a dividend of EUR 0.70 per dividend-bearing Class A share at the Annual General Meeting on June 10, 2020 (previous year: EUR 0.80). This would reduce the dividend by 12.5% compared to the previous year. Under the given circumstances, this measure - along with various others - serves to conserve liquidity. The payout ratio of 52% is therefore once again within the target range of 50% to 70%.