Slide 1: Investor Presentation Q1 2021 Results
Investor Presentation Q1 2021 Results Hamburg, 12 May 2021
Slide 2: Opening Remarks
Opening Remarks Q1 2021 was driven by continued strong demand, high freight rates and operational bottlenecks 1 Current developments Transport volume development was unsatisfactory Significant investments in Customer Service quality but more to be done We improved profitability, strengthened our bal
Slide 3: Q1 2021 characterized by strong demand, port congestion and equipment scarcity
1 Current developments Q1 2021 was characterized by continued strong demand, resulting in port congestion and equipment scarcity … OPERATIONAL CHALLENGES OUR MEASURES Port congestions Record container volumes are resulting in port congestion and We have chartered in additional vessels and deployed
Slide 4: Increased freight rates, but also significantly higher operational costs
1 Current developments … which led to increased freight rates, but also to significantly higher operational costs and pressure on our operational performance Increased Freight Rates Global Schedule Reliability 3,000 SCFI CCFI 100 2,500 80 Driven by demand 2,000 surge and related 60 1,500 operational
Slide 5: Improved profitability, stronger balance sheet and earned cost of capital
2 Financials We were able to improve profitability, strengthen our balance sheet further and to earn our cost of capital Operational KPIs P&L effects Volume 2,975 Volume declined by 2.6% YoY as a result of port Revenue FY revenue increased strongly (33.1% YoY) mainly 4,903 congestion and a lack of c
Slide 6: Results improved strongly on the back of higher freight rates
2 Financials Results improved strongly on the back of higher freight rates … Revenue [USD m] EBITDA [USD m] +33.1% 14.0% Margin 38.9% +1,392 4,903 3,684 1,909 517 Q1 2020 Q1 2021 Q1 2020 Q1 2021 EBIT [USD m] Group profit [USD m] 4.8% Margin 31.4% 4.5% ROIC 43.3% +1,363 +1,424 1,539 1,451 176 27 Q1 2
Slide 7: Transport volumes slightly below previous year, above Q1 2019
2 Financials … while transport volumes were slightly below previous year, but above the level of Q1 2019 Transport volume development by trade [TTEU] +1.6% Q1 2021 volumes were slightly +4.2% weaker than in Q1 2020, but -2.6% increased compared to Q1 2019 and 3,053 were in line with some of our dire
Slide 8: Freight rates increased significantly YoY, bunker prices below Q1 2020
2 Financials Freight rates increased significantly YoY, whereas bunker consumption prices were below the high level of Q1 2020 Freight rate [USD/TEU] vs. Bunker price development [USD/mt] Average freight rate + 37.9% 1,509 1,114 1,163 1,079 1,084 1,094 1,084 1,063 1,062 523 425 434 416 390 384 360 3
Slide 9: Lower bunker costs largely offset by counter effects
2 Financials Lower bunker costs were largely offset by counter effects caused by the current market situation Transport expenses per unit [USD/TEU] Bunker expenses decreased by Q1 2020 1,066 39.2% on the back of lower average bunker consumption prices Bunker -84 Negative effects of port congestions,
Slide 10: Very strong Free Cash Flow of USD 1.6 bn
2 Financials Very strong Free Cash Flow of USD 1.6 bn … Cash flow Q1 2021 [USD m] Operating Investing Financing Very strong Operating cash flow, cash flow cash flow cash flow while capex remained on a low level, 1,647 -93 -496 leading to a Free cash flow of USD 1.6 bn -262 2,479 We intend to use the
Slide 11: Reduced net leverage of 1.0x and liquidity reserve of USD 2.5 bn
2 Financials … leading to a further reduced net leverage of 1.0x and a significantly increased liquidity reserve of USD 2.5 bn Equity base [USD m] Net debt [USD m] 44.3% Equity ratio 47.9% 6,305 Financial Debt 6,255 1.8 Net Debt / LTM EBITDA 1.0x 9,726 5,469 8,253 4,361 31 December 2020 31 March 202
Slide 12: Rating upgrades and Sustainability-Linked Senior Notes
2 Financials We have received rating upgrades from S&P & Moody’s and were the first Shipping Company to issue Sustainability-Linked Senior Notes Sustainability-Linked Bond Rating updates Issuer Rating Issuer Rating Issuer Hapag-Lloyd AG S&P Unsecured Debt Rating Moody’s Unsecured Debt Rating BB+ BB+
Slide 13: Global container transport volumes expected to rise significantly in 2021e
3 Market Update On the back of the economic recovery, global container transport volumes are expected to rise significantly in 2021e GDP vs. global container volume growth [%] Despite the ongoing pandemic, the global economic development was GDP Container volume growth relatively robust in Q1 2021 6
Slide 14: Orderbook expected to still grow slightly further
3 Market Update Order activity has recently picked up and the orderbook is expected to still grow slightly further … Global orderbook Newly placed orders [TEU m, %] Orderbook Share of world fleet [TEU m] Q4 Q3 Q2 Q1 1.8 Some of recent not yet 56% reflected in all databases Some of recent orders not
Slide 15: Limited capacity delivered in 2021e and 2022e, scrapping to rise
3 Market Update … but only limited capacity will be delivered in 2021e and 2022e, and in the years beyond that scrapping will go up significantly [Scheduled] vessel deliveries [Expected] scrapping Scrapping is likely to pick up significantly in the [TEU m] [TEU m; % of world fleet] years to come 1.8
Slide 16: Positive earnings trend; EBITDA and EBIT expected clearly above prior year
4 Way forward On the back of the positive earnings trend, we continue to expect EBITDA and EBIT to be clearly above the prior-year levels Guidance for FY 2020 While the very positive earnings trend is FY 2021 likely to continue in the second quarter of 2021, the Executive Board currently expects a
Slide 17: Our focus for 2021 and beyond
4 Way forward Our focus for 2021 and beyond: Focus on schedule Prepare for a Deliver on our reliability, service seamless integration Strategy 2023 quality and customer of NileDutch satisfaction Consider selective Take care of Continue to follow a investment our people and prudent financial opportun
Slide 18: Appendix
€€ Hapag-Lloyd Appendix
Slide 19: Equity ratio of 47.9% and gearing of 44.8%
A Appendix Hapag-Lloyd with an equity ratio of 47.9% and a gearing of 44.8% Balance sheet [USD m] Financial position [USD m] million USD 31.03.2021 31.12.2020 million USD 31.03.2021 31.12.2020 Assets Financial debt and lease liabilities 6,255.2 6,305.1 Non-current assets 15,557.0 15,508.3 Cash and c
Slide 20: Positive EBIT of USD 1,539 m in Q1 2021
A Appendix Hapag-Lloyd with positive EBIT of USD 1,539 m in Q1 2021 Income statement [USD m] QoQ YoY million USD Q1 2021 Q4 2020 Q1 2020 Change change Revenue 4,903.2 4,052.5 3,684.0 21.0% 33.1% Transport expenses -2,737.0 –2,735.7 –2,914.4 - -6.1% Personnel expenses -198.1 –203.5 –190.5 -2.6% 4.0%
Slide 21: Shareholder structure
A Appendix Shareholder structure Shareholders’ agreement/ Controlling shareholders 3.6% 10.2% Kühne Maritime GmbH / Kühne Holding AG 30.0% CSAV Germany Container Holding GmbH 12.3% HGV Hamburger Gesellschaft für Vermögens- und Beteiligungsmanagement mbH 176 m shares Qatar Holding Germany GmbH The Pu
Slide 22: Share price development
A Appendix Share price development Performance since 1 January 2018 Indexed Price Frankfurt Stock Exchange / 600 Stock Exchange Hamburg Stock Exchange 500 Regulated market Market segment (Prime Standard) 400 ISIN / WKN DE000HLAG475 / HLAG47 300 Ticker Symbol HLAG 200 Nov/16 100 Primary listing 6 Nov
Slide 23: Well balanced maturity structure of financial liabilities
A Appendix Well balanced maturity structure of financial liabilities 2024 Bond prepaid in Financial Debt Profile as per 31 March 20211), [USD m] April and replaced by new bond maturing in 1,609 Facility 31 March 2021 [USD m] Liabilities to banks Liabilities from lease and charter contracts 2028 Bond
Slide 24: Bond trading
A Appendix Bond trading EUR Bond 2028 Open market of the Luxembourg Stock Listing Exchange (Euro MTF) Volume EUR 300 m 100.4 ISIN / WKN XS2326548562 100 Maturity Date April 15, 2028 as of 15 April 2024: 101.375% Redemption as of 15 April 2025: 100.688% Price as of 15 April 2026: 100% HL EUR 2.500% 2
Slide 25: Financial Calendar 2021
Financial Calendar 2021 28 May 2021 Virtual Annual General Meeting 2021 12 August 2021 Half-year Financial Report 2021 12 November 2021 Quarterly Financial Report 9M 2021 25
Slide 26: 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 27: Hapag-Lloyd Investor Relations
Hapag-Lloyd Investor Relations Ballindamm 25 20095 Hamburg Tel: +49 (40) 3001-2896 ir@hlag.com All publication documents can be found here: https://www.hapag-lloyd.com/en/ir.html 27