Hapag-lloyd Ag · XETR:HLAG
Hapag-lloyd — Q1 2024 Earnings Presentation
23 slides from Hapag-lloyd's earnings presentation, May 15, 2024
Slide 1: Investor Presentation Q1 2024 Results
Investor Presentation Q1 2024 Results Hamburg, 15 May 2024 Investor Presentation FY 2023 Results Hamburg, 14 March 2024
Slide 2: Q1 2024 - Key Statements
Q1 2024 - Key Statements The first quarter of 2024 was characterised by an upturn in demand and renewed disruptions in global supply chains due to the difficult security situation in the Red Sea We recorded a solid start to the year with an EBIT of USD 0.4 bn driven by rising volumes and freight rat
Slide 3: Container volumes and freight rates recovered on most trades in Q1
1 Highlights Container volumes and freight rates recovered on most trades in Q1 GLOBAL CONTAINER VOLUMES [TEU m] MARKET DEVELOPMENT Q1 Q1 2023 2023 2024 Q1 2024 17 39.2 TEU m +9.2% 43.6 TEU m 16 ▪ Global container volumes grew by 15 9% year-over-year 14 ▪ The recovery in demand extended 13 to almost
Slide 4: We have launched our new Strategy 2030 to become the Undisputed Number One for Quality
1 Highlights We have launched our new Strategy 2030 to become the “Undisputed Number One for Quality“ 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
Slide 5: Customer satisfaction remained on a very good level – New projects
1 Highlights Customer satisfaction remained on a very good level – New projects agreed to become a driver of sustainability STRATEGIC MILESTONES Maintained a very good customer satisfaction with a NPS1 score of >60 Increased vessel capacity to 2.1 m TEU, thereby secured our global Top 5 position Lau
Slide 6: Our first dry container tracking product Live Position will improve supply chain visibility
1 Highlights Our first dry container tracking product “Live Position” will improve supply chain visibility through real-time data for our customers Hapag-Lloyd is the world’s first shipping line to use IoT technology in logistics on a large scale More than 1 million dry container Door-to-Door Visibi
Slide 7: We returned to profitability in Q1 2024 and maintained a very strong balance sheet
2 Financial Performance We returned to profitability in Q1 2024 and maintained a very strong balance sheet Q1 2024 GROUP KEY FIGURES Transport volume1 Revenue EBITDA 3.0 MTEU USD 4.6 bn USD 0.9 bn PY: 2.8 MTEU PY: USD 6.0 bn PY: USD 2.4 bn Free Cash Flow Net Liquidity Equity USD 0.2 bn USD 2.6 bn US
Slide 8: Q1 2024 earnings improved strongly QoQ – YoY comparison distorted
2 Financial Performance Q1 2024 earnings improved strongly QoQ – YoY comparison distorted by extraordinary market environment during pandemic REVENUE [USD m] EBITDA [USD m] 39.5% 7.5% 20.4% Margin +13% 2,379 +208% 6,028 4,623 4,079 942 306 Q1 2023 Q4 2023 Q1 2024 Q1 2023 Q4 2023 Q1 2024 EBIT [USD m]
Slide 9: Both operating segments recorded good profitability levels
2 Financial Performance Both operating segments recorded good profitability levels LINER SHIPPING TERMINAL & INFRASTRUCTURE USD m Q1 2023 Q1 2024 USD m Q1 2023 Q1 2024 Revenue 6,023 4,527 Revenue 6 107 EBITDA 2,359 906 EBITDA 19 35 EBITDA margin 39.2% 20.0% EBITDA margin n/m 33.0% EBIT 1,855 378 EBI
Slide 10: Our average freight rate started to improve again in Q1 2024
2 Financial Performance Liner Shipping Segment Our average freight rate started to improve again in Q1 2024 – Volume increase driven mainly by Transpacific and Far East FREIGHT RATE DEVELOPMENT [USD/TEU] TRANSPORT VOLUME DEVELOPMENT BY TRADE [TTEU] Q1 2023 Q1 2024 1,999 -32% 1,359 +6.9% 3,037 2,842
Slide 11: Q1 unit cost were impacted by higher Bunker and Handling & Haulage expenses
2 Financial Performance Liner Shipping Segment Q1 unit cost were impacted by higher Bunker and Handling & Haulage expenses mainly due to Red Sea re-routings UNIT COST DEVELOPMENT Q1 2023 – Q1 2024 [in USD/TEU]1 Volume 2.8 3.0 3.1 3.0 3.0 [TEU m] Pre-Covid unit cost level -5% 1,324 1,269 1,256 1,207
Slide 12: Free cash flow was again positive
2 Financial Performance Free cash flow was again positive – investments consisted mainly of instalments for new vessels and the purchase of containers CASH FLOW Q1 2024 [USD m] Operating Investing Financing cash flow cash flow cash flow 609 -386 -370 -333 148 942 -534 6,435 -282 -19 6,289 -68 Free c
Slide 13: Net liquidity of USD 2.6 bn and equity ratio of 64%
2 Financial Performance With a net liquidity position of USD 2.6 bn and an equity ratio of 64%, the balance sheet ratios remain very strong EQUITY [USD m] NET LIQUIDITY [USD m] 64.7% Equity ratio 64.4% 5,572 Financial Debt 5,735 < 0x Net Leverage < 0x 20,787 21,073 2,907 2,584 31 Dec 2023 31 Mar 202
Slide 14: Growing capacity is currently absorbed by higher demand and diversions
3 Market Update Growing capacity is currently absorbed by higher demand, Cape of Good Hope diversions and slower vessel speeds DEMAND GROWTH GLOBAL ORDERBOOK [TEU m; % of world fleet] 7% 27% 26% 4% 3% 22% 21% 2% -1% -4% 0% 10% 10% 7.1 7.1 5.4 6.1 2.4 2.4 2019 2020 2021 2022 2023 2024e 2025e 2019 202
Slide 15: FY 2024 earnings outlook narrowed to upper half of previous range
4 Way Forward FY 2024 earnings outlook narrowed to upper half of previous range Previous Updated FY 2023 FY 2024 Outlook FY 2024 Outlook Transport volume 11,907 TTEU Increasing slightly Increasing slightly Freight rate 1,500 USD/TEU Decreasing clearly Decreasing moderately Bunker At previous year’s
Slide 16: Priorities for 2024
4 Way Forward Grow our liner and terminal business in accordance with our Priorities Pure Play Plus model for 2024 Continue to improve service and operational quality to support our growth ambitions Execute tangible initiatives to achieve significant emission reductions Maintain a razor-sharp focus
Slide 17: Appendix
Appendix 17
Slide 18: Equity ratio of 64.4%
A Appendix Equity ratio of 64.4% BALANCE SHEET [USD M] FINANCIAL POSITION [USD M] million USD 31.3.2024 31.12.2023 million USD 31.3.2024 31.12.2023 31.3.2023 Assets Financial debt and lease liabilities 5,735.1 5,572.1 5,571.7 Non-current assets 21,046.9 20,801.1 Cash and cash equivalents 6,289.0 6,4
Slide 19: Net profit of USD 0.3 bn in Q1 2024
A Appendix Net profit of USD 0.3 bn in Q1 2024 INCOME STATEMENT [USD M] QoQ YoY million USD Q1 2024 Q4 2023 Q1 2023 Change change Revenue 4,623.4 4,079.2 6,028.1 13.3% –23.3% Transport and terminal expenses –3,299.6 –3,268.4 –3,259.4 1.0% 1.2% Personnel expenses –260.3 –306.6 –259.0 –15.1% 0.5% Depr
Slide 20: Well balanced maturity structure of financial liabilities
A Appendix Well balanced maturity structure of financial liabilities FINANCIAL DEBT PROFILE AS PER 31 MARCH 20241, [USD M] Facility 31 Mar 2024 [USD m] Vessel Financings 1,957 1.293 Container Financings 643 1.139 1.158 245 Total Vessel & Container 2,600 278 900 EUR Bond 2024 324 388 Total Bonds 324
Slide 21: Financial Calendar 2024
A Appendix Financial Calendar 2024 January 2024 Preliminary Financials 2023 14 March 2024 Annual Report FY 2023 16 April 2024 Capital Markets Day 2024 30 April 2024 Annual General Meeting 2024 15 May 2024 Quarterly Financial Report Q1 2024 14 August 2024 Half-year Financial Report 2024 14 November 2
Slide 22: Disclaimer
Disclaimer Forward-looking statements This presentation contains forward-looking statements that involve a number of risks and uncertainties. Such statements are based on a number of assumptions, estimates, projections or plans that are inherently subject to significant risks, as well as uncertainti
Slide 23: Hapag-Lloyd Investor Relations
Hapag-Lloyd Investor Relations Ballindamm 25 20095 Hamburg Tel: +49 (40) 3001-3705 ir@hlag.com All publication documents can be found here: https://www.hapag-lloyd.com/en/ir.html 23