Slide 1: Investor Presentation Q1 2019 Results
Investor Presentation Q1 2019 Results Hamburg, 9 May 2019
Slide 2: Opening Remarks
Opening Remarks Positive development of freight rates; Q1 2019 almost 5% above previous year‘s level 1 Highlights Increase in transport volume of +2.4% YoY to TEU 2.9 m in Q1 2019 Despite recent GDP downgrades, trend of container demand growth still intact 2 Market Update Slowing supply gr
Slide 3: Financial Highlights Q1 2019
1 Highlights Financial Highlights Q1 2019 Transport volume Transport expenses per TEU1) Freight rate +2.4% +1.1% +4.9% Q1 2019: TEU 2.9 m Q1 2019: 1,015 USD/TEU Q1 2019: 1,079 USD/TEU EBIT Group profit EBITDA USD 243 m USD 109 m USD 556 m 7.0% EBIT margin 6.4% ROIC annualized 16.0% EBITDA margin Equ
Slide 4: Container trade growth conditions remain broadly healthy, with expected growth of approx. 1.2x GDP
2 Market Update Container trade growth conditions remain broadly healthy, with an expected growth of approx. 1.2x GDP in 2019e Real GDP Growth vs. Global Container Trade Growth [%] GDP multiplier 0.9x 1.5x 1.1x 1.2x 1.1x-1.2x 5.6% As IHS has not yet updated their estimates, 2019e-2020e reflects Clar
Slide 5: Global transport volume stable YoY while freight rates stayed above previous year
2 Market Update In the first 3 months of 2019, global transport volume was stable YoY, while freight rates have stayed above previous year‘s levels Global Transport Volume Development SCFI Comprehensive Index [TEUm] 1.000 +0.5% 40.1 950 39.9 900 850 800 750 700 650 2018 2019 600 Q1 2018 Q1 2019 Jan-
Slide 6: Global orderbook remains historically low while idle fleet fell
2 Market Update Global orderbook remains historically low at only 11%, while idle fleet fell to only 1.3% of the world fleet… Orderbook-to-fleet Newly placed orders [TEUm, %] [TEUm, %] 28% 21% 21% 2.0 2.2 4.3 18% 19% 1.8 16% 1.2 13% 1.1 3.8 12% 11% 0.8 3.6 0.4 0.3 0.2 3.4 3.3 3.2 2011 2012 2013 2014
Slide 7: Scrapping expected to increase and deliveries slow, tightening S/D balance
2 Market Update …and scrapping activity is expected to increase and the pace of deliveries will slow, which leads to further tightening of S/D balance Scheduled vessel deliveries Supply / Demand Balance [TEUm] As IHS has not yet updated 1.7 their estimates, 2019e-2020e 8.0% 1.3 8.0% reflects Clarkso
Slide 8: Clearly increased EBIT and strong improvement in group profit
3 Financials Clearly increased EBIT of USD 243 m and a strong improvement in group profit to USD 109 m in Q1 2019 Operational KPIs Q1 2019 Q1 2018 YoY Transport volume [TTEU] 2,929 2,861 +2% Freight rate [USD/TEU] 1,079 1,029 +5% Bunker [USD/mt] 425 372 +14% Exchange rate1) [USD/EUR] 1.14 1.23 n.m.
Slide 9: Group profit negatively impacted by IFRS 16 effects
3 Financials Group profit of USD 109 m in Q1 2019 was negatively impacted by USD ~13 m due to IFRS 16 effects Overview of IFRS 16 effects on P&L accounts [USD m] Q1 2019 Q1 2018 ∆ Thereof IFRS 16 ∆ ex. IFRS 16 Revenue 3,478 3,221 +257 0 +257 Operating expenses (before D&A) -2,922 -2,955 +33 +113 -80
Slide 10: Transport volume increased by 2.4% YoY to 2,929 TTEU
3 Financials Transport volume increased by 2.4% YoY to 2,929 TTEU in Q1 2019 mainly driven by Atlantic, Far East, Latin America and EMAO Transport volume by trade [TTEU] EMAO Latin America Q1 2018 169 663 254 362 519 455 439 2,861 Intra Asia +2.4% Middle East Far East Q1 2019 204 677 221 351 556 450
Slide 11: Average freight rate increased by 4.9% YoY
3 Financials Average freight rate has increased by 4.9% YoY, driven by a positive development in almost all trades Freight rate [USD/TEU] vs. Bunker price development [USD/mt] +4.9% 1,079 1,029 Average freight rate 425 372 +14.2% Average bunker price Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 11 Note:
Slide 12: Bunker price increased by 14% YoY to 425 USD/mt
3 Financials Bunker price significantly increased by 14% YoY to 425 USD/mt which drove up bunker expenses per unit by 13 USD/TEU Bunker consumption & expenses per TEU Bunker consumption price [mt/TEU; USD] [USD/mt] 0.38 0.38 700 +13 / +9% 664 643 140 153 600 599 600 MDO 553 Q1 2018 Q1 2019 Total bun
Slide 13: Transport expenses (ex. bunker) remained almost flat YoY
3 Financials Transport expenses (ex. bunker) remained almost flat YoY Transport expenses per TEU [USD/TEU] Due to the application of IFRS 16, for analysis purposes and better traceability of unit cost development, transport expenses are now shown together with depreciation. +12 / +1.1% 1,003 13 36 1
Slide 14: Strong free cash flow of USD 455 m
3 Financials Strong free cash flow of USD 455 m positively impacted by the first-time application of IFRS 16 in the amount of USD 119 m Cash flow Q1 2019 [USD m] Operating Investing Financing cash flow cash flow cash flow 609 -154 -563 53 -101 1,297 556 6 274 47 113 -165 1,189 11 -545 545 443 545 -4
Slide 15: Financial debt decreased like for like; IFRS 16 increases assets and debt
3 Financials Like for like, financial debt has been decreased by USD ~300 m but first time application of IFRS 16 lead to an increase in assets and debt Fixed assets [USD m] Equity base [USD m] Financial debt [USD m] Right of Use relating to newly recognized lease contracts / leased assets (IFRS 16)
Slide 16: Earnings outlook for 2019 confirmed
4 Way Forward Earnings outlook for 2019 confirmed 2018 FY 2018 Outlook 2019 Sensitivities for 20191) (incl. IFRS 16) Transport volume 11,874 TTEU Increasing slightly +/- 100 TTEU +/- USD <0.1 bn Average freight rate 1,044 USD/TEU Increasing slightly +/- 50 USD/TEU +/- USD ~0.6 bn Average bunker pric
Slide 17: Major targets for 2019 and beyond
4 Way Forward Major targets for 2019 and beyond: Continue to increase profitability and further deleverage our company Prepare for IMO 2020 Continue to implement our “Strategy 2023” and create more value for our customers and shareholders as we strive to become number one for quality Further develop
Slide 18: Appendix
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Slide 19: Equity ratio of 39.1% and gearing of 99.1%
Appendix Hapag-Lloyd with an equity ratio of 39.1% and a gearing of 99.1% Balance sheet [USD m] Financial position [USD m] 31.03.2019 31.12.2018 31.03.2019 31.12.2018 Assets Financial debt 7,804.4 6,891.1 Non-current assets 15,672.6 14,709.1 Cash and cash equivalents 644.3 752.4 of which fixed asset
Slide 20: Positive EBITDA of USD 555.6 m in Q1 2019
Appendix Hapag-Lloyd with positive EBITDA of USD 555.6 m in Q1 2019 Income statement [USD m] Q1 2019 Q1 2018 % change Revenue 3,477.6 3,220.6 8% Transport expenses -2,660.2 -2,667.7 0% Personnel expenses -189.3 -195.8 -3% Depreciation, amortization & impairment -312.9 -203.7 54% Other operating resu
Slide 21: Unit costs slightly increased by 1% to 1,015 USD/TEU
Appendix Unit costs slightly increased by 1% to 1,015 USD/TEU in Q1 2019 Operating expenses [USD m] Unit costs [USD] Q1 2019 Q1 2018 % change Q1 2019 Q1 2018 % change Transport expenses 2,660 2,668 0% Transport expenses 908 932 -3% Thereof Thereof Bunker 448 401 12% Bunker 153 140 9% Handling and Ha
Slide 22: New P&L structure from Q1 2019 onwards – Transport expenses
Appendix Hapag-Lloyd’s new P&L structure from Q1 2019 onwards – Transport expenses New P&L Structure Revenues Transport expenses (new structure) Transport expenses Handling & Haulage Handling & Equipment and Vessel & voyage Equipment and repositioning Bunker Haulage repositioning (excluding bunker)
Slide 23: Change of presentation in the consolidated income statement
Appendix Change of presentation in the consolidated income statement Transport expenses Reclassification Equipment and Simplified view reclassification Repositioning bunker) repositioning / Handling&/ Equipment of Pending Haulage Vessel / Voyage Bunker expenses Vessel & Handling transport Haulage vo
Slide 24: Overview of IFRS 16 effects on cash flow statement
Appendix Overview of IFRS 16 effects on cash flow statement [USD m] Q1 2019 Q1 2018 ∆ Thereof IFRS 16 ∆ ex. IFRS 16 EBIT 243 62 +181 +5 +176 Depreciation / Amortization 313 204 +109 +108 +1 EBITDA 556 266 +290 +113 +177 Working Capital and other effects 53 46 +7 +6 +1 Cash flow from operating 609 31
Slide 25: Reduced financing costs and improved maturity structure of financial liabilities
Appendix Reduced financing costs as well as improved maturity structure of financial liabilities Financial Debt Profile as per 31 March 20191), [USDm] 2,339 1,472 1,455 1,325 2242) 976 972 970 760 628 540 656 505 625 314 119 377 395 227 119 85 243 59 79 88 50 50 2019 2020 2021 2022 2023 ≥ 2023 Liabi
Slide 26: Share price development
Appendix Share price development Share trading since November 2015 240 Frankfurt Stock Exchange / 220 Stock Exchange Hamburg Stock Exchange 200 Regulated market 180 Market segment / (Prime Standard) / 160 Index SDAX 140 ISIN / WKN DE000HLAG475 / HLAG47 120 100 80 Ticker Symbol HLAG 60 40 Primary lis
Slide 27: Bond trading
Appendix Bond trading Bonds trading 110 105 102.3 100 102.1 95 HL EUR 6.75 % 2022 HL EUR 5.125% 2024 EUR Bond 2024 EUR Bond 2022 Listing Open market of the Luxembourg Stock Exchange (Euro MTF) Volume EUR 450 m EUR 280 m ISIN / WKN XS1645113322 XS1555576641 / A2E4V1 Maturity Date Jul 15, 2024 Feb 1,
Slide 28: Financial Calendar 2019
Financial Calendar 2019 25 February 2019 Preliminary Financials 2018 22 March 2019 Annual Report 2018 09 May 2019 Quarterly Financial Report Q1 2019 12 June 2019 Annual General Meeting 2019 07 August 2019 Half-year Financial Report 2019 14 November 2019 Quarterly Financial Report 9M 2019 28
Slide 29: 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 30: Hapag-Lloyd Investor Relations
Hapag-Lloyd Investor Relations Ballindamm 25 20095 Hamburg Tel: +49 (40) 3001-2896 ir@hlag.com https://www.hapag-lloyd.com/en/ir.html 30