Annual Report 2007 - hci hammonia shipping ag

ForewordForewordDear shareholders and business associates of HCI HAMMONIA SHIPPING AGHCI HAMMONIA SHIPPING AG provides investors, and institutional investors in particular, with theopportunity to invest in shipping through a listed public limited company. Via an attractive portfolio ofstate-of-the-art container ships, our shareholders can participate in the dynamic growth of world trade.The capital increase and successful placement of HCI HAMMONIA SHIPPING AG shares enabled usto launch our commercial operations in 2007. Our company will position itself on the market as aninternational provider of high-quality container tonnage. By chartering our ships to renowned shippingcompanies, and by concluding pool agreements, we will achieve the optimum deployment of ourvessels combined with good risk diversification. 2007 was a year of transition, from the initial concepton the drawing board through to realisation. With the handover of the first three of a total portfolio ofeight ships in the fourth quarter of 2007, HCI HAMMONIA SHIPPING AG was able to set sail.The result for 2007 was dominated by preliminary costs in relation to the flotation, pre-financing costsassociated with the ships on order, and the expenses in conjunction with establishing the company.These expenses occurred alongside only low levels of revenue income from operational business, withthe result that the consolidated net income for the 2007 financial year according to IFRS was in theregion of EUR 4.5 million. The result recorded by the parent company under HGB, however – thisbeing the result on which the distribution of a dividend would be based – was still negative.In terms of the current financial year, four container ships are due to be delivered on schedule. Thecommissioning of these ships, and the revenues generated from the full-year operation of the containerships acquired in the fourth quarter of 2007, will contribute to a strong improvement in the resultrecorded by HCI HAMMONIA SHIPPING AG. In light of the positive start to the financial year, we areassuming that net income for the 2008 financial year will already be sufficient to enable the first dividenddistribution to our shareholders.HCI HAMMONIA SHIPPING AG will reach full strength by the beginning of 2009, with the delivery ofthe final ship in the portfolio. As of 2010 at the latest, when all of the currently planned ships will be inoperation for the entire year, we will achieve our full revenue and income potential. On this basis, HCIHAMMONIA SHIPPING AG will achieve a return of at least 6.5% p.a. and also looks likely to exceedthis target – provided that the market continues to develop positively.Hamburg, April 2008Dr. Karsten LiebingMember of theManagement BoardJens BurgemeisterMember of theManagement Board3