Slide 1: Investor Presentation 9M 2023 Results
Investor Presentation 9M 2023 Results Hamburg, 9 November 2023
Slide 2: Opening Remarks
Opening Remarks Freight rates remain under pressure leading to an increasingly challenging market environment 1 HIGHLIGHTS Growing terminal activities bundled in new business segment Launch of new joint venture company for the growing cabotage business in Brazil Solid financial performance in 9M 202
Slide 3: Container volumes picked up recently, but freight rates remain under pressure
1 Highlights Container volumes picked up recently, but freight rates remain under pressure leading to an increasingly challenging market environment GLOBAL CONTAINER VOLUMES [TEU m] MARKET DEVELOPMENT 9M 2022 9M 2023 131.7 TEU m -1.7% 129.5 TEU m 16 Q3 2023 container volumes picked up 15 but overall
Slide 4: Intensifying efficiency and cost-cutting measures to mitigate lower freight rates
1 Highlights We are intensifying our efficiency and cost-cutting measures to mitigate the impact of lower freight rates COST SAVING INITIATIVES FE5 Westbound Eastbound ▪ Accelerate full removal of EC4 Westbound Hamburg Eastbound Westbound congestion related cost Rotterdam PN3 Eastbound Antwerpen ▪ A
Slide 5: Terminal & Infrastructure serves as a second pillar of our business
1 Highlights Since Q3, Terminal & Infrastructure serves as a second pillar of our business Hapag-Lloyd Group Liner Shipping Terminal & Infrastructure Other TERMINAL HOLDING ▪ Set up of Terminal Holding in Rotterdam to deliver safe, sustainable, reliable & efficient terminal operations supporting Num
Slide 6: Launch of new cabotage joint venture in Brazil
1 Highlights Launch of new cabotage joint venture in Brazil NEW PLAYER NORCOAST Founded by Hapag-Lloyd and Norsul as a 50-50 partnership Manaus Weekly service offering for cabotage Pecém & feeder cargo Suape Integrated container transport and inland services Santos Paranaguá STRATEGIC RATIONALE ▪ Br
Slide 7: Solid financial performance in 9M 23 but quarterly earnings trend declining
2 Financial Performance Solid financial performance in 9M 2023 but quarterly earnings trend clearly declining 9M 2023 GROUP RESULTS Transport volume1 Revenue EBITDA 8.9 MTEU USD 15.3 bn USD 4.5 bn PY: 9.0 MTEU PY: USD 28.4 bn PY: USD 16.6 bn Free Cash Flow Net Liquidity Equity USD 3.4 bn USD 3.0 bn
Slide 8: Earnings normalised in Q3 as last year's freight rate tailwind dissipated
2 Financial Performance Earnings normalised in Q3 as the full tailwind from last year's exceptional freight rate environment dissipated REVENUE [USD m] EBITDA [USD m] -46% 58% 17% Margin 59% 30% 28,439 -73% 15,312 16,649 -55% -87% 9,878 5,708 4,519 4,464 744 Q3 2022 Q3 2023 9M 2022 9M 2023 Q3 2022 Q
Slide 9: Growing terminal activities have contributed USD 29 m to Group EBIT
2 Financial Performance Growing terminal activities have contributed USD 29 m to Group EBIT in 9M 2023 (Spinelli as of 01/23, J M Baxi as of 04/23, SAAM as of 08/23) SEGMENT PERFORMANCE Liner Shipping Terminal & Infrastructure¹ USD m 9M 2023 9M 2022 USD m 9M 2023 Revenue 15,230 28,424 Revenue 92.1 E
Slide 10: 9M 2023 volumes close to previous year's level following Q3 rebound
2 Financial Performance 9M 2023 volumes close to previous year's level following volume rebound in Q3 TRANSPORT VOLUME DEVELOPMENT BY TRADE [TTEU]1 +4.5% -0.8% 3,110 8,987 8,916 2,975 501 1,575 1,538 523 513 1,324 1,366 462 592 1,730 1,647 556 360 1,171 1,085 370 157 212 468 562 714 745 2,199 2,182
Slide 11: Average freight rate continued to fall due to supply pressure
2 Financial Performance Average freight rate continued to fall due to supply pressure FREIGHT RATE [USD/TEU] VS. BUNKER PRICE DEVELOPMENT [USD/MT]1 9M 2022 9M 2023 2,938 -45% 1,604 -58% 3,106 2,935 2,774 2,577 2,625 Average freight rate 2,234 1,999 1,714 1,509 1,533 1,312 -32% Average bunker price 8
Slide 12: Unit cost improved clearly as a result of lower bunker prices
2 Financial Performance Unit cost improved clearly as a result of lower bunker prices, active cost management and easing of port congestion UNIT COST DEVELOPMENT Q3 2022 – Q3 2023 [in USD/TEU]1 9M 2023 vs 9M 2022 [in USD/TEU]1 Volume 3.0 2.9 2.8 3.0 3.1 9.0 8.9 [TEU m] -16% 1,449 -9% 1,458 1,324 1,3
Slide 13: Good cash generation used for fleet investments, terminals and dividends
2 Financial Performance Good cash generation used for fleet investments, expansion of terminal business and dividend distribution CASH FLOW 9M 2023 [USD m] Operating Investing Financing cash flow cash flow cash flow 4,987 -1,554 -12,961 468 -3,093 536 4,519 1,002 16,265 -12,231 -720 6,734 -183 172 F
Slide 14: Net liquidity of USD 3.0 bn, balance sheet ratios remain strong
2 Financial Performance With a net liquidity position of USD 3.0 bn balance sheet ratios remain strong EQUITY [USD m] NET LIQUIDITY [USD m] 72.1% Equity ratio 65.0% 5,804 Financial Debt 5,786 < 0x Net Leverage < 0x 29,795 13,437 20,982 2,962 31 Dec 2022 30 Sep 2023 31 Dec 2022 30 Sep 2023 LIQUIDITY
Slide 15: High orderbook will lead to strong capacity growth
3 Market Update High orderbook will lead to strong capacity growth in the coming quarters GLOBAL ORDERBOOK SCHEDULED VESSEL DELIVERIES [TEU m; % of world fleet] Orderbook Share of world fleet [before scrapping] 56% [TEU m] 47% 35% 26% 26% 22% 27% 26% 21% 20% 16% 19% 16% 13% 11% 10% 10% 6.8 6.4 7.1 7
Slide 16: Global supply will outpace demand in 2023 & 2024
3 Market Update Global supply will outpace demand in 2023 & 2024 GLOBAL DEVELOPMENTS OF SUPPLY AND DEMAND Only slow recovery of demand expected in the next quarters Additional risk for fleet growth due to Container Volume Growth [%] less slippage and scrapping Fleet Growth [%] 9% 8% Strong inflow of
Slide 17: Normalisation of earnings set in as expected – FY 2023 outlook narrowed
4 Way Forward Normalisation of earnings set in as expected – FY 2023 outlook narrowed FY 2022 Original Outlook Updated Outlook Comments Gradual normalisation of the earnings trend set in as expected. 11,843 Transport volume Increasing slightly Increasing slightly The FY 2023 outlook has been TTEU na
Slide 18: Priorities for 2023 and beyond
4 Way Forward Priorities Remain focused on service quality and for 2023 and beyond customer satisfaction Adapt to challenging market environment by improving cost base Expand terminal business further and leverage synergies between both segments Finalise new medium-term strategy to set the course fo
Slide 19: Appendix
Appendix 20
Slide 20: Group profit came in at USD 3.4 bn in 9M 2023
A Appendix Hapag-Lloyd’s group profit came in at USD 3.4 bn in 9M 2023 INCOME STATEMENT [USD M] QoQ YoY million USD Q3 2023 Q2 2023 Q3 2022 Change change 9M 2023 9M 2022 Change Revenue 4,464.5 4,819.0 9,877.7 –7.4% –54.8% 15,311.6 28,439.5 –46.2% Transport and terminal expenses –3,303.0 –3,070.2 –3,
Slide 21: Equity ratio of 65% and net liquidity of USD 3.0 bn
A Appendix Hapag-Lloyd with an equity ratio of 65% and a net liquidity of USD 3.0 bn at the end of 9M 2023 BALANCE SHEET [USD M] FINANCIAL POSITION [USD M] million USD 30.9.2023 31.12.2022 million USD 30.9.2023 31.12.2022 Assets Financial debt and lease liabilities 5,785.5 5,803.8 Non-current assets
Slide 22: Well balanced maturity structure of financial liabilities
A Appendix Well balanced maturity structure of financial liabilities FINANCIAL DEBT PROFILE AS PER 30 SEPTEMBER 20231, [USD M] Facility 30 Sep 2023 [USD m] Liabilities to banks Bonds Liabilities from lease and charter contracts2) Other financial liabilities Vessel Financings 1,969 Container Financin
Slide 23: Share price development
A Appendix Share price development PERFORMANCE SINCE 1 JANUARY 2023 Indexed Price Frankfurt Stock Exchange / 220% Stock Exchange Hamburg Stock Exchange Dividend 200% payment of 63 EUR/share Regulated market Market segment (Prime Standard) 180% 160% ISIN / WKN DE000HLAG475 / HLAG47 140% 120% Ticker S
Slide 24: 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 90 as of 15 April 2024: 101.375% Redemption Price as of 15 April 2025: 100.688% 87 87,4 as of 15 April 2026
Slide 25: 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 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) 3001-3705 ir@hlag.com All publication documents can be found here: https://www.hapag-lloyd.com/en/ir.html 29