Slide 1: Investor Presentation 9M 2022 Results
Investor Presentation 9M 2022 Results Hamburg, 10 November 2022
Slide 2: Opening Remarks
Opening Remarks Expansion of terminal portfolio in line with our strategic agenda to Simplify, Strengthen & Invest STRATEGIC 1 HIGHLIGHTS Participation in Spinelli Group, a leading Italian ports operator with significant hinterland capabilities Acquisition of the Ports & Logistics division of SM SAA
Slide 3: Strategic Highlights: Simplify, Strengthen & Invest
1 Strategic Highlights 1 SIMPLIFY Improve customer experience and reduce complexity Investing into Segments & Experience Network & Fleet terminal Hub & Transshipment Imbalance & Depots infrastructure has 2 STRENGTHEN strong ties to Double efforts to become “Number One for Quality” many of the Revenu
Slide 4: We have started to extend our terminal portfolio in line with our strategic agenda
1 Strategic Highlights We have started to extend our terminal portfolio in line with our strategic agenda RECENT TERMINAL PARTICIPATIONS OF HAPAG-LLOYD Start of operations Q1 2021 Tanger Med Port 2 (Marocco) Signing JadeWeserPort Q3 2021 Wilhelmshaven (Germany) Strategy 2023 Q3 2021 Publication of S
Slide 5: The participation in Spinelli with its Genoa gateway and hinterland access
1 Strategic Highlights The participation in Spinelli with its Genoa gateway and hinterland access will help us strengthening our position in the Mediterranean SPINELLI DEAL RATIONALE Padua ▪ Container terminal and logistic player with terminals in Genoa and associated network Reggio Emilia of depots
Slide 6: Investment into SAAM Ports & Logistics reinforces competitiveness in Latin America
1 Strategic Highlights In addition, the investment into SAAM Ports & Logistics is a perfect match to reinforce competitiveness within the Latin American market SAAM DEAL RATIONALE ▪ Chilean terminal operator and logistics Mazatlan Florida company (100%) (70%) ▪ Operates 8 terminals as majority/JV Co
Slide 7: Spot freight rates from China dropped clearly since August
2 Market Update Spot freight rates from China dropped clearly since August reflecting weakening demand and easing of port congestion GLOBAL CONTAINER VOLUMES SHANGHAI CONTAINERIZED FREIGHT INDEX [TEU m] [USD/TEU]1) 16.0 2021 2022 6,000 SCFI (Spot) Pre-Covid Level Ø SCFI Ø SCFI Ø SCFI Ø SCFI 15.5 Q4
Slide 8: Lower throughput volumes have eased port congestion
2 Market Update Lower throughput volumes have eased port congestion but waiting times at USEC, Canada and in Northern Europe remain elevated GLOBAL PORT CONGESTION INDEX [TEU m, 7dma] Continental 9.4 Europe / UK 9.2 -10.1% 9.0 -9.2% North America 8.8 East Coast Q1 Q2 Q3 8.6 +15.0% China 8.4 North Am
Slide 9: Exceptional freight rate environment led to strong earnings in first nine months
3 Financial Highlights Exceptional freight rate environment led to a strong earnings performance in the first nine months of 2022 OPERATIONAL KPIs P&L EFFECTS 8,987 Transport volume remained at the previous year’s level Volume Revenue 28,439 Revenue increased by USD +10.5 bn,… (0.1% YoY); higher vol
Slide 10: Sharp rise in revenues, group profit increased significantly YoY
3 Financial Highlights On the back of a sharp rise in revenues, group profit increased significantly YoY REVENUE [USD m] EBITDA [USD m] +58.5% 53.1% 57.8% Margin 45.5% 58.5% 28,439 +104.0% 16,649 +33.6% 17,945 +45.5% 9,878 8,163 7,394 5,708 3,923 Q3 2021 Q3 2022 9M 2021 9M 2022 Q3 2021 Q3 2022 9M 20
Slide 11: Volumes remained flat YoY mainly due to congestion
3 Financial Highlights Volumes remained flat YoY mainly due to congestion – Slowdown of demand in Q3 had no meaningful impact yet TRANSPORT VOLUME DEVELOPMENT BY TRADE [TTEU] +0.1% 0.0% 8,980 8,987 2,976 2,975 523 1,584 1,575 536 462 1,355 1,324 456 558 556 1,739 1,730 378 370 1,162 1,171 130 157 46
Slide 12: Average freight rate increase driven by stronger long-term rates
3 Financial Highlights Average freight rate increase mainly driven by stronger long-term rates while spot rates declined – Bunker price is up considerably FREIGHT RATE [USD/TEU] VS. BUNKER PRICE DEVELOPMENT [USD/MT] 9M 2021 9M 2022 1,818 +61.6% 2,938 +39.0% 3,106 2,935 2,774 2,577 2,234 Average frei
Slide 13: Unit costs continued to increase due to higher bunker prices
3 Financial Highlights Unit costs continued to increase due to significantly higher bunker prices, congestion and higher vessel charter rates TRANSPORT EXPENSES PER UNIT [USD/TEU] “Bunker” expenses (+71%) increased 9M 2021 1,127 on the back of higher average bunker consumption prices +243 / +22% Bun
Slide 14: Strong cash generation in 9M 2022, free cash flow USD 14.3 bn
3 Financial Highlights Strong cash generation in 9M 2022, leading to a free cash flow of USD 14.3 bn – Liquidity reserve now at 15.5 USD bn CASH FLOW 9M 2022 [USD m] Operating Investing Financing cash flow cash flow cash flow 15,979 -1,696 -8,262 -670 -894 -802 -6,601 16,649 15,487 17 -1,220 -159 -2
Slide 15: Net liquidity increased to USD 9.5 billion despite dividend
3 Financial Highlights Despite the payment of a dividend of USD 6.6 bn in May 2022, net liquidity increased to USD 9.5 billion EQUITY [USD m] NET CASH [USD m]1) 60.5% Equity ratio 69.3% 6,222 Financial Debt 6,045 < 0x Net Leverage < 0x 26,564 9,502 18,292 2,520 31 Dec 2021 30 Sep 2022 31 Dec 2021 30
Slide 16: Orderbook activity slowed down; new capacity will likely exceed demand
4 Way Forward Orderbook activity slowed down – New 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% 2.6 35% 26% 26% 2
Slide 17: FY 2022 earnings outlook confirmed
4 Way Forward FY 2022 earnings outlook confirmed – Softening freight rate environment will impact profitability in fourth quarter as expected FY 2022 FY 2021 Outlook Strong operational performance in 9M On previous Transport volume 11,872 TTEU 2022 was in-line with updated year’s level1 expectations
Slide 18: Our focus going forward
4 Way Forward Our focus going forward: Focus on service quality and customer satisfaction Continuously adapt to evolving market conditions Focus on cost control and maintain a prudent financial policy Invest in fleet to further increase efficiency and strengthen efforts on sustainability and decarbo
Slide 19: Appendix
Appendix 19
Slide 20: Equity ratio of 69.3% and gearing below zero
A Appendix Hapag-Lloyd with an equity ratio of 69.3% and a gearing of below zero BALANCE SHEET [USD M] FINANCIAL POSITION [USD M] million USD 30.9.2022 31.12.2021 million USD 30.9.2022 31.12.2021 30.9.2021 Assets Financial debt and lease liabilities 6,044.6 6,221.7 6,388.8 Non-current assets 17,762.
Slide 21: Strong net profit of USD 14,664.7 m in 9M 2022
A Appendix Hapag-Lloyd with strong net profit of USD 14,664.7 m in 9M 2022 INCOME STATEMENT [USD M] QoQ YoY million USD Q3 2022 Q2 2022 Q3 2021 Change change 9M 2022 9M 2021 Change Revenue 9,877.7 9,605.7 7,393.9 2.8% 33.6% 28,439.5 17,945.2 58.5% – Transport expenses –3,828.3 –3,663.3 –3,158.6 4.5%
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 20221), [USD M] Facility 30 September 2022 [USD m] Liabilities to banks Bonds Liabilities from lease and charter contracts2) Other financial liabilities Vessel Financings 1,761 Container F
Slide 23: Freight rate development
A Appendix Freight rate development COMPREHENSIVE INDEX [USD/TEU] SHANGHAI – NORTH EUROPE [USD/TEU] 6.000 8.000 CCFI Comprehensive Index SCFI Comprehensive Index CCFI NEurope SCFI NEurope 7.000 5.000 6.000 4.000 5.000 3.000 4.000 3.000 2.895 2.000 1.791 2.000 1.763 1.000 1.698 1.000 0 0 Jan-19 Jul-1
Slide 24: Share price development
A Appendix Share price development PERFORMANCE SINCE 1 JANUARY 2021 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 Primary listing 6 No
Slide 25: 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 87 as of 15 April 2025: 100.688% Price as of 15 April 2026: 100
Slide 26: 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 27: 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 28: 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 28