Hapag-lloyd Ag · XETR:HLAG
Hapag-lloyd — Investor Day (April 2024)
53 slides from Hapag-lloyd's investor day presentation, Apr 16, 2024
Slide 1: Capital Markets Day
Capital Markets Day 16 April 2024
Slide 2: Agenda
Agenda Review & Achievements of Strategy 2023 Strategy 2030 at a Glance Pure Play Plus Top 5 Global Container Line Undisputed Number One for Quality Sustainability Driver Top Performing Carrier Wrap up 3 16 April 2024 CMD Presentation
Slide 3: With Strategy 2030, we are continuing our successful strategic course
With Strategy 2030, we are continuing our successful strategic course while adapting to new market challenges and opportunities Strategy 2023 MARKET Strategy 2030 PERIOD HAS IS CHANGING IS HERE ENDED We have concluded New market trends Our new strategy the period of Strategy affect our industry that
Slide 4: Good progress along all four pillars of Strategy 2023
Over the past 5 years we have made very good progress along all four pillars of our previous Strategy 2023 Sustainability Profitability Global Player #1 for Quality Accelerator Record results, excellent > 10%1 market share in dry Brand associated with Comprehensive strategy Balance Sheet and room re
Slide 5: Agenda
Agenda Review & Achievements of Strategy 2023 Strategy 2030 at a Glance Pure Play Plus Top 5 Global Container Line Undisputed Number One for Quality Sustainability Driver Top Performing Carrier Wrap up 6 16 April 2024 CMD Presentation
Slide 6: The market and business environment has changed
The market and Volatile supply / demand balance business Supply growth will outpace demand growth in the short term, but more capacity is needed for the energy transition environment and to cope with supply chain disruptions has changed… Dynamic competition Competitors are rapidly expanding their fl
Slide 7: Undisputed Number One for Quality in the market
With our new strategy we strive to make Hapag-Lloyd the “Undisputed Number One for Quality“ in the market SHIFT FROM STRATEGY 2023 ... ... TO STRATEGY 2030... … WITH VERY AMBITIOUS TARGETS Remain a container shipping line at the core Pure Play Pure Play Plus supplemented by terminals and inland Slig
Slide 8: The Hapag-Lloyd Strategy 2030: main building blocks
The Hapag-Lloyd Strategy 2030: 5 main building blocks PILLARS OF OUR NEW STRATEGY STRATEGIC DIRECTION Pure Play Plus WHERE- TO-PLAY Top 5 Global Container Line Undisputed HOW- Sustainability Top TO-WIN Number One for Driver Performing Carrier Quality 9 16 April 2024 CMD Presentation
Slide 9: Agenda
Agenda Review & Achievements of Strategy 2023 Strategy 2030 at a Glance Pure Play Plus Top 5 Global Container Line Undisputed Number One for Quality Sustainability Driver Top Performing Carrier Wrap up 10 16 April 2024 CMD Presentation
Slide 10: The "Plus" in Pure Play Plus will help us build a superior quality liner product
PURE PLAY PLUS The “Plus” in Pure Play Plus will help us build a superior quality liner product Strategy 2030 Strategy 2023 Core beliefs moving forward Hapag-Lloyd goes The segment for integrated end-to-end logistics is small, crowded and competitive Pure Play Plus Hapag-Lloyd is a We will focus on
Slide 11: We will continue to invest in growing our terminal portfolio
PURE PLAY PLUS We will continue to invest in growing our terminal portfolio where it makes sense for the group WE TARGET TO GROW OUR TERMINAL PORTFOLIO BY UP TO 10-15 TERMINALS UNTIL 2030… … AND FULLY ESTABLISH OUR NEW TERMINAL & INFRASTRUCTURE DIVISION West coast East coast Wilhelmshaven Hamburg Am
Slide 12: The new Terminal segment bundles our terminal & infrastructure investments
PURE PLAY PLUS The new Terminal segment has been set up to bundle our terminal & infrastructure investments as a stand-alone business The Terminal segment strengthens our core liner business by… ▪ Delivering safe, sustainable, reliable and efficient terminal operations to support “Undisputed Number
Slide 13: In the future we will significantly grow our inland business
PURE PLAY PLUS In the future we will significantly grow our inland business Expected growth trajectory STRATEGIC RATIONALE FOR INLAND 2022 2030 Inland share Inland makes us a more complete shipping company (%) 18% 30% How we drive growth of our inland business Inland creates lock-in effect and foste
Slide 14: Agenda
Agenda Review & Achievements of Strategy 2023 Strategy 2030 at a Glance Pure Play Plus Top 5 Global Container Line Undisputed Number One for Quality Sustainability Driver Top Performing Carrier Wrap up 15 16 April 2024 CMD Presentation
Slide 15: Top 5 Global Container Line
TOP 5 GLOBAL CONTAINER LINE Hapag-Lloyd to slightly outgrow the market and rebalance the trade and customer portfolio Strategy 2030 Strategy 2023 Core beliefs moving forward Hapag-Lloyd will strengthen its Potential to grow above market by serving new position as a growth markets, while defending ou
Slide 16: Commercial Strategy from three main angles
TOP 5 GLOBAL CONTAINER LINE Based on the Strategy 2030 cornerstones we developed our Commercial Strategy from three main angles NICHES AND ATTRACTIVE MARKETS TARGET CUSTOMERS POCKETS OF GROWTH Expand coverage of growth Drive desired customer mix Grow reefer market share markets and defend slightly a
Slide 17: We will remain a Global Player and double down on selected attractive markets
TOP 5 GLOBAL CONTAINER LINE We will remain a Global Player and double down on selected attractive markets as we defend our strongholds ATTRACTIVE MARKETS CONCEPT STRONGHOLDS Germany Intra-Europe China Transatlantic Italy Transpacific ▪ Deliberately focus on selected Attractive Markets India to reali
Slide 18: New cabotage joint venture in Brazil
TOP 5 GLOBAL CONTAINER LINE In January we already started a new cabotage joint venture in Brazil to combine integrated container transport with inland services NEW PLAYER NORCOAST Founded by Hapag-Lloyd and Norsul as a 50-50 partnership Manaus Weekly service offering for cabotage Pecém & feeder carg
Slide 19: Agenda
Agenda Review & Achievements of Strategy 2023 Strategy 2030 at a Glance Pure Play Plus Top 5 Global Container Line Undisputed Number One for Quality Sustainability Driver Top Performing Carrier Wrap up 20 16 April 2024 CMD Presentation
Slide 20: We have significantly improved our service quality and customer satisfaction
UNDISPUTED NUMBER ONE FOR QUALITY We have significantly improved our service quality and customer satisfaction OUR 10 QUALITY PROMISES CUSTOMER SATISFACTION FY 2023 vs. Target Net Promoter Score (NPS) 99% Fast booking response 90% Booked and loaded as agreed 98% Booking response provided within 8 ho
Slide 21: Hapag-Lloyd to drive quality to best-in-class performance
UNDISPUTED NUMBER ONE FOR QUALITY Hapag-Lloyd to drive quality to best-in-class performance Strategy 2023 Core beliefs moving forward Strategy 2030 Delivering high quality & best customer experience is valued by customers and allows us Hapag-Lloyd will further intensify to increase loyalty and yield
Slide 22: We aspire to become Undisputed Number One for Quality
UNDISPUTED NUMBER ONE FOR QUALITY We aspire to become "Undisputed Number One for Quality" and will make a step change in operational performance WE WILL ADAPT OUR QUALITY PROMISES IN 4 CLUSTERS TO CATER FOR OUR CUSTOMERS NEEDS BASED ON... Ease of doing business >6,000 Customers surveyed ...QUALITY I
Slide 23: A substantial increase in on-time delivery is needed
UNDISPUTED NUMBER ONE FOR QUALITY This means that a substantial increase in on-time delivery (OTD) at box level is needed to improve customer experience SELECTED KEY MEASURES > 80% OTD currently at around 50%, significantly below 80%+ target Further standardise our global operating model ~ 50% Sched
Slide 24: Gemini Cooperation
UNDISPUTED NUMBER ONE FOR QUALITY Gemini Cooperation will be an important Gemini Cooperation cornerstone for our quality ambitions Hapag-Lloyd and Maersk agreed on a long-term operational partnership starting February 2025 A strong partnership on key East-West trades: Far East/Europe & Mediterranean
Slide 25: Partnership strengthens key East-West trades
UNDISPUTED NUMBER ONE FOR QUALITY This partnership will strengthen our key East-West trades while major North-South trades will be served with multiple partners 4 4 SERVICES 5 4 SERVICES SERVICES Asia – North Europe Asia – US West Coast SERVICES Transatlantic India / Middle East – Europe 5 3 SERVICE
Slide 26: Gemini network centered around terminal hubs
UNDISPUTED NUMBER ONE FOR QUALITY The Gemini network will be centered around owned and / or controlled terminal hubs significantly increasing the reliability of our services HUBS PLAY A CRUCIAL PART IN THE ON-TIME DELIVERY ▪ All hub terminals are owned and / or Germany controlled by Hapag-Lloyd or M
Slide 27: Hub & spoke model makes the network more reliable
UNDISPUTED NUMBER ONE FOR QUALITY The joint network uses a hub & spoke model to make it much more reliable and resilient, with fast connectivity NETWORK PRINCIPLES ▪ Setup with 2-3 main port calls per region Antwerp Example including strategic hubs will enable shorter round voyage times and better r
Slide 28: Digitalization and personal interaction
UNDISPUTED NUMBER ONE FOR QUALITY We also aim to deliver our service through digitalization and personal interaction – both will contribute to our quality ambitions DIGITAL PERSONAL One stop digital experience, Customized, proactive solutions real-time responsive and consultative support through via
Slide 29: Investments in IT and people for digital customer experience
UNDISPUTED NUMBER ONE FOR QUALITY Our investments in IT and people enable us to deliver a state-of-the-art digital customer experience INVESTMENTS IN DIGITALIZATION New IT locations ▪ Opening of the Hapag-Lloyd Technology Website Center in Chennai (India) in cooperation with API Suite our partner So
Slide 30: Real-time container tracking for standard and reefer containers
UNDISPUTED NUMBER ONE FOR QUALITY Real-time container tracking for all standard and reefer containers improves transparency along the supply chain DRY CONTAINERS Tracking of dry containers through permanently installed devices More than 1 million boxes already equipped REEFER CONTAINERS Commercial p
Slide 31: Towards 2030 we will build a tech and data platform
UNDISPUTED NUMBER ONE FOR QUALITY Towards 2030 we will build a state-of-the-art tech and data platform OUR CUSTOMER FACING AMBITION MAIN BACKEND INITIATIVES >55% OF CUSTOMERS VIEW World-class web DIGITAL OFFERING AS DECISIVE Cloud based main / mobile offering operating system Decisive Not decisive 1
Slide 32: Personal interaction with customers remains imperative
UNDISPUTED NUMBER ONE FOR QUALITY While we are growing our digital offerings, personal interaction with our customers will remain imperative SERVING OUR CUSTOMERS HAPAG-LLOYD QUALITY SERVICE CENTER IN SUZHOU >400 offices in 140 countries Our global presence enables us to provide local expertise and
Slide 33: We will continue to invest in our people and work environment
UNDISPUTED NUMBER ONE FOR QUALITY We will continue to invest in our people and work environment – as our people will deliver our strategy WE HAVE MADE A LOT OF …AND HAVE DEFINED OUR FOCUS TOPICS FOR THE COMING YEARS PROGRESS ON OUR JOURNEY… Develop our team and provide the right work EMPLOYEE enviro
Slide 34: Agenda
Agenda Review & Achievements of Strategy 2023 Strategy 2030 at a Glance Pure Play Plus Top 5 Global Container Line Undisputed Number One for Quality Sustainability Driver Top Performing Carrier Wrap up 35 16 April 2024 CMD Presentation
Slide 35: Strong push for decarbonization from different angles
SUSTAINABILITY DRIVER Strong push for decarbonization from different angles RESPONSIBILITY COMMERCIAL REGULATION 3% of global emissions 45% of customers with CO 2 1.5°Paris agreement as Motivation stem from shipping reduction targets guardrail for rule makers Responsibility of industry to 11 of top
Slide 36: We will deliver on a 1.5°C Sustainability target
SUSTAINABILITY DRIVER We will deliver on a 1.5°C Sustainability target Strategy 2023 Core beliefs moving forward Strategy 2030 The time to act is now: With green technologies maturing, new regulations upcoming and demand for Hapag-Lloyd will intensify its green fuels rising, we want to play a leadin
Slide 37: Reducing carbon intensity of our fleet by ~50% by 2030
SUSTAINABILITY DRIVER We are committed to reducing the carbon intensity of our entire fleet by ~50% by 2030, resulting in a ⅓ reduction in absolute emissions Actual/allowed average WtW AER [gCO2e/dwt NM]2 Absolute CO2e KEY FACTS emissions by 2030 10.0 9.2 9.2 ▪ To underline our increased 10.0 mt 9.0
Slide 38: We identified 4 levers to decarbonize our fleet
SUSTAINABILITY DRIVER We identified 4 levers to decarbonize our fleet 1 Fleet 2 growth 3 & renewal Slow 4 steaming Efficiency New, larger levers Alternative Still to be and more Reducing fuels defined efficient dual- service speed Technical fuel vessels levers to Optimal mix We will reduce fuel of a
Slide 39: Fleet growth & renewal; Slow steaming
SUSTAINABILITY DRIVER 1 Fleet growth & renewal 2 Slow steaming Between 2023 and 2025 we will receive Lowering the speed of our network by more than 400 TTEU in new and 3 knot would save up to efficient tonnage 5 million tons of CO2e p.a. Global average container vessel speed [knots] In addition, we
Slide 40: Fleet upgrade program to renew more than 150 vessels
SUSTAINABILITY DRIVER 3 Efficiency levers: with our fleet upgrade program we will renew more than 150 vessels „LOADABILITY PUSH“ Increase of slot capacity by means of … 70 – 100 TTEU Capacity increase ▪ Extension of the lashing bridge systems ▪ Increase in draught USD 360 m Σ Investments ▪ Raising t
Slide 41: Alternative Fuels: Bio- and e-Methane and green Methanol
SUSTAINABILITY DRIVER 4 Alternative Fuels: Bio- and e-Methane as well as green Methanol to play vital role in our fuel mix >2022 >2024 >2026 >2030 Biofuels Bio- and e-Methane Green Methanol E-Ammonia Scalability Good availability but Availability and scalability Attractive (subsidized) E-ammonia has
Slide 42: Retrofit vessels to methanol propulsion with MAN and Seaspan
SUSTAINABILITY DRIVER Hapag-Lloyd will retrofit 5 vessels to methanol propulsion together with MAN and Seaspan COOPERATION DETAILS Hapag-Lloyd has negotiated a methanol 5 x 10 TTEU Seaspan vessels retrofit package with Seaspan and MAN Energy Solutions Time charter until 2040 to secure long-term asse
Slide 43: Largest ever ship-to-ship bunkering of liquefied biomethane
SUSTAINABILITY DRIVER In April, we have concluded the largest ever ship-to-ship bunkering of liquefied biomethane KEY FACTS ▪ Together with STX Group and Titan Clean Fuels, we have concluded a ship-to-ship bunkering of 2,200 tonnes of ISCC EU certified Liquefied biomethane (LBM), for our Brussels Ex
Slide 44: Agenda
Agenda Review & Achievements of Strategy 2023 Strategy 2030 at a Glance Pure Play Plus Top 5 Global Container Line Undisputed Number One for Quality Sustainability Driver Top Performing Carrier Wrap up 45 16 April 2024 CMD Presentation
Slide 45: Very strong financial performance since 2018
TOP PERFORMING CARRIER We have delivered a very strong financial performance since 2018, also thanks to the extraordinary market environment Equity ratio ROIC 45% 114 % IFRS 16 72 % 65 % IFRS 16 70 % 61 % 16 % 44 % 11 % 41 % 41 % 4% 6% 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 19,9
Slide 46: Top Performing Carrier
TOP PERFORMING CARRIER To remain a top performer, we will focus on competitive cost, best talent and key technology Strategy 2023 Core beliefs moving forward Strategy 2030 Razor-sharp cost focus is required to retain the Hapag-Lloyd will sharpen focus right-to-play in a difficult market environment
Slide 47: Significant unit cost savings to stay competitive
TOP PERFORMING CARRIER We must achieve significant unit cost savings to keep us competitive in a challenging market environment SELECTED COST LEVERS UNIT COST IMPROVEMENT 2022 VS. 2030 ILLUSTRATIVE Increase scale >20% Need to address counter- effects from deliberate choices and external factors, Dri
Slide 48: Strategy 2030 investments of USD 20-25 bn and incremental EBIT >USD 2 bn
TOP PERFORMING CARRIER Executing Strategy 2030 will allow investments of about USD 20-25 bn and deliver an incremental EBIT of USD >2 bn KEY RESULTS UNDERLYING INVEST AND P&L IMPACT [USD bn] >2 Incremental EBIT effect of 2.7 USD >2 bn until 2030 as a direct result of strategy EBIT Attractive Improve
Slide 49: Prudent financial policy and long-term financial targets
TOP PERFORMING CARRIER With Strategy 2030 we will continue to pursue a prudent financial policy LONG-TERM FINANCIAL TARGETS Profitability Net Leverage Liquidity Top performing ≤ 3.0x >USD 1.1 bn Net Debt/EBITDA liquidity reserve carrier We want to earn our cost We strengthen resilience We will alway
Slide 50: Agenda
Agenda Review & Achievements of Strategy 2023 Strategy 2030 at a Glance Pure Play Plus Top 5 Global Container Line Undisputed Number One for Quality Sustainability Driver Top Performing Carrier Wrap up 51 16 April 2024 CMD Presentation
Slide 51: Wrap up: Targets integrated in the building blocks of Strategy 2030
Wrap up: Our targets are integrated in the 5 building blocks of Strategy 2030 Pure Play Plus STRATEGIC DIRECTION >30 >30% Terminals Inland share Top 5 Global Container Line WHERE- TO-PLAY Growth slightly above market Undisputed Undisputed #1 for Quality Sustainability Driver Top Top3rd Performing Pe
Slide 52: Questions & Answers
Q UESTIONS & &e jee ANSWERS . ,
Slide 53: Thank you!
Thank you! 54