Slide 1: Investor Presentation FY 2022 Results
Investor Presentation FY 2022 Results Hamburg, 2 March 2023
Slide 2: Opening Remarks
Opening Remarks Initially high transport demand and historically high freight rates were followed by a swift normalisation 1 HIGHLIGHTS We have executed further on our strategic agenda to Simplify, Strengthen and Invest We made significant progress in our efforts to build up a robust terminal portfo
Slide 3: 2022 was initially characterised by high transport demand and historically high freight rates
1 Highlights 2022 was initially characterised by high transport demand and historically high freight rates followed by a swift normalisation GLOBAL CONTAINER VOLUMES MARKET DEVELOPMENT [TEU m] 2021 2022 16.0 15.5 15.0 Transport volumes remained initially on a good 14.5 level followed by a rapid decl
Slide 4: Exceptional market environment boosted our financial performance
1 Highlights FINANCIAL PERFORMANCE EBIT [USD m ] Exceptional 3.8% 6.4% 10.3% 42.2% 50.7% Margin market 18.5 environment 1.5 11.1 0.5 0.9 boosted our 2018 2019 2020 2021 2022 financial RETURN ON INVESTED CAPITAL [%] 111.6% performance 70.0% 6.1% 10.6% 3.7% 2018 2019 2020 2021 2022 4
Slide 5: Strategy 2023
1 Highlights We used the favorable financial position to STRATEGY 2023 execute further on our strategic agenda Delivering Operational Quality Network, Fleet & Equipment SIMPLIFY We have significantly improved customer satisfaction due to our We have started to simplify our network to reduce complexi
Slide 6: We have strengthened our core business with recent terminal investments in Europe and the Mediterranean
1 Highlights We have strengthened our core business with the recent terminal investments in Europe and the Mediterranean Container terminal investments of Hapag-Lloyd EUROPE & MEDITERRANEAN Hamburg CTA Wilhelmshaven Hamburg CTA and Wilhelmshaven (2022) Spinelli Group Main North European gateways (20
Slide 7: The takeover of SAAM Ports & Logistics reinforces our competitiveness in Latin America
1 Highlights The takeover of SAAM Ports & Logistics reinforces our competitiveness within the Latin American market Container terminal portfolio of SAAM Terminal & Logistics LATIN AMERICA SAAM Terminal & Logistics is a Chilean terminal operator and logistics company Mazatlan Florida (70%) (100%) Ope
Slide 8: The acquisition of 40% share in J M Baxi offers better access to the Indian market
1 Highlights The acquisition of 40% share in J M Baxi offers a better access to the fast-growing Indian market J M Baxi Ports & Logistics container terminals INDIA J M Baxi is a leading private terminal and inland transport service provider in India Operates 5 container terminals and has recently wo
Slide 9: We are making good progress in building our terminal portfolio
1 Highlights We are making good progress in building our terminal portfolio to enable quality and cost improvements Global container terminal investments of Hapag-Lloyd INVESTMENT RATIONALE Hamburg We want to increase our access to CTA Wilhelmshaven key locations and build an Spinelli (2022) infrast
Slide 10: Exceptional financial result in 2022 further strengthened our financial KPIs
2 Financial Performance Exceptional financial result in 2022 further strengthened our financial KPIs Transport volume Revenue EBITDA 11.8 MTEU USD 36.4 bn USD 20.5 bn PY: 11.9 MTEU PY: USD 26.4 bn PY: USD 12.8 bn Transport volume on prior-year level Revenue increased significantly in an EBITDA incre
Slide 11: Group profit increased significantly YoY, beginning earnings normalisation visible in Q4 2022
2 Financial Performance Group profit increased significantly YoY ─ beginning earnings normalisation visible in Q4 2022 REVENUE [USD m] EBITDA [USD m] +38.1% 55.6% 48.0% Margin 48.7% 56.2% 36,401 +59.4% 26,356 20,474 -5.3% 12,842 -18.3% 8,411 7,962 4,679 3,825 Q4 2021 Q4 2022 FY 2021 FY 2022 Q4 2021
Slide 12: Volumes remained flat YoY mainly due to congestion and slowdown of demand in H2 2022
2 Financial Performance Volumes remained flat YoY mainly due to congestion and slowdown of demand in H2 2022 TRANSPORT VOLUME DEVELOPMENT BY TRADE [TTEU] -0.2% -1.2% 11,872 11,843 2,892 2,857 2,105 2,116 521 541 1,768 1,735 414 412 534 2,274 2,230 500 395 342 1,557 1,514 148 166 608 634 748 734 3,03
Slide 13: Average freight rate increased strongly, gradual normalisation started in Q4 2022
2 Financial Performance Average freight rate increased strongly, but gradual normalisation started in Q4 2022 – bunker price is up considerably FREIGHT RATE [USD/TEU] VS. BUNKER PRICE DEVELOPMENT [USD/MT] FY 2021 FY 2022 2,003 +42.9% 2,863 +1.9% 3,106 2,935 2,774 2,577 2,625 2,234 Average freight ra
Slide 14: Unit costs increased due to higher bunker prices, congestion and vessel charter rates
2 Financial Performance Unit costs increased due to significantly higher bunker prices, congestion and higher vessel charter rates CHANGE IN TRANSPORT EXPENSES PER UNIT [USD/TEU] “Bunker” expenses (+59%) increased on FY 2021 1,175 the back of higher average bunker consumption prices Bunker 98 +216 /
Slide 15: Strong cash generation in FY 2022, free cash flow of USD 16.3 bn
2 Financial Performance Strong cash generation in FY 2022, leading to a free cash flow of USD 16.3 bn – Liquidity reserve now at USD 17.0 bn CASH FLOW FY 2022 [USD m] Operating Investing Financing cash flow cash flow cash flow 20,591 -4,288 -8,780 117 -1,518 -2,769 -6,604 20,474 49 16,990 -1,671 -22
Slide 16: Equity ratio increased to 72% - Net Liquidity stands at USD 13.4 billion
2 Financial Performance Equity ratio increased to 72% ─ Net Liquidity stands at USD 13.4 billion EQUITY [USD m] NET LIQUIDITY [USD m] 60.5% Equity ratio 72.1% 6,222 Financial Debt 5,804 < 0x Net Leverage < 0x 29,795 13,437 18,292 2,976 Time Deposits 2,520 31 Dec 2021 31 Dec 2022 31 Dec 2021 31 Dec 2
Slide 17: We propose a dividend of EUR 63 per share to the AGM
2 Financial Performance Based on the strong result in 2022, we propose a dividend of EUR 63 per share to the AGM EPS [EUR] TOTAL DIVIDEND DISTRIBUTION [EUR m] 96.89 11,073 6,152 51.63 615 5.27 193 0.21 2.06 26 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022e DPS AND PAYOUT RATIO [EUR] 71% 53% 66%
Slide 18: Financial priorities going forward
2 Financial Performance Financial priorities going forward Prudent financial policy ▪ We have significantly improved our financial resilience in recent years ▪ Going forward, we will maintain a prudent financial policy that balances the interest of all stakeholders ▪ As part of our efforts to become
Slide 19: Nominal capacity inflow will likely exceed demand in the next quarters
3 Market Update Nominal capacity inflow will likely exceed demand in the next quarters GLOBAL ORDERBOOK SCHEDULED VESSEL DELIVERIES [TEU m; % of world fleet] Orderbook Share of world fleet [TEU m] Net additions Slippage Scrapping of existing fleet 56% 47% Gross additions 35% 1.1 1.2 1.2 1.0 2.5 4.0
Slide 20: Market fundamentals have changed quickly as demand remains subdued while capacity increases
3 Market Update Market fundamentals have changed quickly as demand remains subdued while capacity increases strongly GLOBAL SUPPLY/DEMAND BALANCE Additional risk for fleet [TEU m, %] growth due to less slippage and scrapping Demand likely to remain subdued until destocking cycle is Container Volume
Slide 21: Outlook 2023
4 Way Forward Gradual normalisation of earnings expected in the course of 2023 FY 2023 FY 2022 Outlook Transport volume 11,843 TTEU Increasing slightly Bunker con- 753 USD/mt Decreasing clearly sumption price Freight rate 2,863 USD/TEU Decreasing clearly USD 4.3 – 6.5 bn EBITDA 20,474 USD m EUR 4.0
Slide 22: Priorities for 2023
4 Way Forward Our focus going forward Continuously adapt to evolving market conditions Roll-out of remaining Simplify, Strengthen and Invest initiatives Focus on service quality and customer satisfaction Priorities Strengthen sustainability and decarbonisation efforts for 2023 Work further on buildi
Slide 23: Appendix
Appendix 23
Slide 24: Equity ratio of 72.1% and a gearing of below zero
A Appendix Hapag-Lloyd with an equity ratio of 72.1% and a gearing of below zero BALANCE SHEET [USD M] FINANCIAL POSITION [USD M] million USD 31.12.2022 31.12.2021 million USD 31.12.2022 31.12.2021 Assets Financial debt and lease liabilities 5,803.8 6,221.7 Non-current assets 18,034.8 17,298.4 Cash
Slide 25: Strong net profit of USD 18.0 bn in FY 2022
A Appendix Hapag-Lloyd with strong net profit of USD 18.0 bn in FY 2022 INCOME STATEMENT [USD M] QoQ YoY million USD Q4 2022 Q3 2022 Q4 2021 Change change FY 2022 FY 2021 Change Revenue 7,961.7 9,877.7 8,411.0 –19.4% –5.3% 36,401.1 26,356.2 38.1% Transport expenses –3,664.7 –3,828.3 –3,320.6 –4.3% 1
Slide 26: Profitability increased strongly in 2021 & 2022, normalisation expected
A Appendix On the back of a sharp rise in revenues, profitability increased strongly in 2021 & 2022, normalisation expected in the years to come REVENUE [USD m] EBITDA [USD m] Margin 9.8% 15.8% 21.1% 48.7% 56.2% 36,401 20,474 26,356 12,842 13,726 14,115 14,577 2,223 3,082 1,345 2018 2019 2020 2021 2
Slide 27: Since 2017 we have significantly strengthened our balance sheet ratios
A Appendix Since 2017 we have significantly strengthened our balance sheet ratios EQUITY [USD m] FREE CASH FLOW [USD m] 72.1% 16,303 IFRS 16 60.5% 40.9% 40.9% 44.3% 29,795 10,858 18,292 2,762 7,168 7,430 8,253 1,857 1,145 2018 2019 2020 2021 2022 2018 2019 2020 2021 FY 2022 LIQUIDITY [USD m ] LEVERA
Slide 28: Well balanced maturity structure of financial liabilities
A Appendix Well balanced maturity structure of financial liabilities FINANCIAL DEBT PROFILE AS PER 31 DECEMBER 20221), [USD M] Facility 31 December 2022 [USD m] Liabilities to banks Bonds Liabilities from lease and charter contracts2) Other financial liabilities Vessel Financings 1,724 Container Fin
Slide 29: Share price development
A Appendix Share price development PERFORMANCE SINCE 1 JANUARY 2023 Indexed Price Frankfurt Stock Exchange / 180% Stock Exchange Hamburg Stock Exchange 160% Regulated market Market segment (Prime Standard) 140% ISIN / WKN DE000HLAG475 / HLAG47 120% Ticker Symbol HLAG 100% Nov/16 Primary listing 6 No
Slide 30: Bond trading
A Appendix Bond trading 108 EUR Bond 2028 105 Open market of the Luxembourg Stock Listing Exchange (Euro MTF) 102 Volume EUR 300 m 99 ISIN / WKN XS2326548562 96 93 Maturity Date April 15, 2028 92.1 90 as of 15 April 2024: 101.375% Redemption 87 as of 15 April 2025: 100.688% Price as of 15 April 2026
Slide 31: Our shareholder base is long-term oriented
A Appendix Our shareholder base is long-term oriented Shareholders’ agreement/ Controlling shareholders Kühne: majority owner of Kühne + Nagel, 3.6% shareholder since 2009 10.2% CSAV: Chilean stock listed company, majority 30.0% owned by Luksic Group, shareholder since 12.3% merger with CSAV in 2014
Slide 32: Financial Calendar 2023
A Appendix Financial Calendar 2023 2 March 2023 Annual Report FY 2022 3 May 2023 Annual General Meeting 2023 11 May 2023 Quarterly Financial Report Q1 2023 10 August 2023 Half-year Financial Report 2023 9 November 2023 Quarterly Financial Report 9M 2023 32
Slide 33: 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 34: 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 34