Slide 1: Investor Presentation – 9M Results 2015
Investor Presentation – 9M Results 2015 11 November 2015 1
Slide 2: Material progress made in Q3
Material progress made in Q3 STRATEGIC HIGHLIGHTS 9M 2015 CUATRO: The integration is completed – substantial portion of synergies already realized in 9M 2015 • HL targets net synergies of USD 400 m (run-rate) OCTAVE: The additional cost saving program OCTAVE is on track and made noticeable contr
Slide 3: Solid earnings – EBITDA increased to USD 770 m
Solid earnings – EBITDA increased to USD 770 m FINANCIAL HIGHLIGHTS 9M 2015 Key return figures2) [USD m] HL significantly increased its EBITDA to 9M 2014 9M 2015 USD 770 m (margin: 10.1%) in 9M 2015. MARGIN 10.1% 5.1% EBIT reached USD 389 m (margin: 5.1%) 3.6% -1.6% Substantial cost synergies
Slide 4: Agenda
Agenda A. Industry – Our Positioning B. Strategy – Our “Way Forward” C. Financials – Strong Earnings Growth 4
Slide 5: Industry highly correlated with global growth
Industry highly correlated with global growth Short term outlook on the lower end of mid term 3-5% range Attractive container shipping volume and global GDP growth 2000 = Indexed to 100 2000 – 2008 2010 – 2014 2014 – 2016e GDP multiplier 2.2x 1.1x 1.1x 300 +3.4% +3.7% 250 +8.1% +3.3% 200 +3.6% Trans
Slide 6: Freight rates on an all time low in October 2015
Freight rates on an all time low in October 2015 Rates must go up, but volatility will remain in the short-term Shanghai – Europe (SCFI) Shanghai – USA (SCFI) 2,500 6,000 USWC (USD/FEU) USEC (USD/FEU) NEurope (USD/TEU) Mediter. (USD/TEU) 2,000 5,000 4,000 1,500 3,000 1,000 674 2,000 2,015 500 646 1,
Slide 7: Balanced exposure to global trade puts us in a strong position
Hapag-Lloyd´s balanced exposure to global trade puts us in a strong position to be successful under tough market conditions Well-balanced global exposure1 Attractive market presence Strong niche businesses Transpacific Atlantic Far East Atlantic Reefer 4 Other Services 22% 28% Globally Historical
Slide 8: Our assets are a competitive fleet, and we have the means to further invest
Our assets are a competitive fleet, and we have the means to further invest where needed Vessel fleet structure as of 30 September 2015 Owned1) Chartered4) Current Current fleet orderbook Fleet age [% of total capacity] Capacity [TEU] 131,674 131,674 52,945 Average age 7.2 years5) >10,000 TEU Vessel
Slide 9: Agenda
Agenda A. Industry – Our Positioning B. Strategy – Our “Way Forward” C. Financials – Strong Earnings Growth 9
Slide 10: We have defined our 'way forward' – Five key initiatives
We have defined our ´way forward´ – Five key initiatives delivering significant contributions with further upside Tangible results in 2015-2016 Further upside 3 Structural improvements Alignment of board structure 2 and responsibilities Project OCTAVE Strong performance driven Short-term profit impr
Slide 11: Project CUATRO: Integration completed
Project CUATRO: Integration completed USD400m net synergies will be achieved in 2016 Strong consolidation track record Integration: 4 key elements PREPARATION TRAINING (2005) (2014) Canadian container shipping Chilean container shipping company with global network company in Valparaíso 38 serv
Slide 12: Project OCTAVE: USD200m cost improvements across all operation areas
Project OCTAVE: USD200m cost improvements across all operation areas; Project OCTAVE 2 launched Eight clear workstreams defined USD200m cost improvements Procurement & Inland Pricing & Steering ~200m Inland Bunker Procurement Fleet Renewal Fleet & Fleet Refurbishment Network Service Structure Utilis
Slide 13: Close the Cost Gap: Investments done throughout the cycle
Close the Cost Gap: Investments done throughout the cycle – Further investments to come Recent projects… … with more to come 10 x 13,200 TEU Hamburg G6 to introduce ULCV loops Delivered 2012 – 2014 Express Class 12 ships ordered so far by G6 Cost efficient growth Secure partners compet
Slide 14: Compete to Win: optimize customer profiles and cargo mix
Compete to Win: Significant potential to further optimize customer profiles and cargo mix Improve profitability per customer (exemplary) Improve cargo mix (exemplary) Bubble size represents market Increase share Decrease share 550 Lane 5 volume in TEU Grow Contribution / TEU (USD) Contribution (
Slide 15: Agenda
Agenda A. Industry – Our Positioning B. Strategy – Our “Way Forward” C. Financials – Strong Earnings Growth 15
Slide 16: Hapag-Lloyd significantly increased its EBITDA to USD 770 m
Hapag-Lloyd significantly increased its EBITDA to USD 770 m (EBITDA margin: 10.1%) in the first nine months of 2015 Operational KPIs1) Comments Q3 Q3 9M 9M ■ 2015 first fiscal year with full ∆/% ∆/% reflection of CSAV transaction 2015 2014 2015 2014 Revenue ■ Transport volume increase Transport volu
Slide 17: Transport volumes increased 28.3% due to the CCS integration
Transport volumes increased 28.3% due to the CCS integration Transport volume [TTEU] Breakdown by trade [TTEU] Adjusted for pro-forma 2014 9M 2015 CCS transport volume in 9M 2014, the HL 9M 5,907 5,579 +7.5% transport volume was 9M yoy -3.9% down year-on-year 4,347 1,945 Growth 5,907 1,861 1,774 5,4
Slide 18: Average freight rate decreased by -172 USD/TEU
Average freight rate decreased by -172 USD/TEU partly driven by the structurally lower CCS freight rate Freight rate1) [USD/TEU] vs. bunker price2) [USD/t] 2013 2014 9M 2015 Bunker cost / TEU as share 20.9% 19.3% 10.5% Adjusted for pro-forma of freight rate [%] CCS freight rate in 9M -172 USD (-12.0
Slide 19: Hapag-Lloyd remains focused on unit cost reduction
Hapag-Lloyd remains focused on unit cost reduction Significant improvement of cost structure already achieved with still more ahead USD/TEU 5 -240 Compete to (-17.8%) Win 1,351 -148 4 Price Close the Cost Consumption Gap -31 25 -81 3 Structural Improvements -5 1,111 2 OCTAVE (partially) -92 (-8.9%)1
Slide 20: Benefits from a reduced bunker price and consumption
Benefits from a reduced bunker price and consumption – Change in bunker mix due to emission control areas Bunker price [Rotterdam; USD/mt] Bunker consumption [mt/slot; mt/TEU; k mt] 1,029 -9% MFO 4.09 922 Bunker cons. 3.83 822 MDO per slot1) 3.48 0.52 0.50 606 Bunker cons. 0.46 per TEU 644 602 462 5
Slide 21: Peer comparison of EBIT margins
COSCO NA 21 Maersk 8.0% 1.070 CSCL NA CMA CGM 4.8% 379 Maersk 8.9% OOCL 4.5% 1.810 CMA CGM 5.0% CSCL 3.6% 608 Wan Hai 7.7% 145 100 69 Wan Hai 6.6% Source: Hapag-Lloyd, company reports K-Line 2.2% K-Line 31 1.0% 126 102 76 2 Hanjin 1.4% Hanjin 0.0% Evergreen 68 1.9% NYK (0.4)% Yang Ming 49 1.5% Yang
Slide 22: Optimisation of financial structure with further tangible savings
Optimisation of financial structure with further tangible savings Enhanced capital structure Successful debt re-pricing 1■ Improved equity base: Book equity of USD 5.2 bn with Interest rate (BPS) gearing around 70% (net debt / equity) 45% Book Equity Equity 5,241 Gearing (%)1) [USD m] 3,617 98.7% 72
Slide 23: Hapag-Lloyd was successfully listed on 6 Nov 2015
Hapag-Lloyd was successfully listed on 6 Nov 2015 Hapag-Lloyd executed IPO in Q4 2015 Key terms First day of trading Issuer ■ Hapag-Lloyd AG (“Hapag-Lloyd” or the “Company”) Offer Type ■ Initial Public Offering (“IPO”) Deal Size ■ EUR 304 m / USD 345 m1 (15.2m shares incl. greenshoe) Offer Price ■ E
Slide 24: Hapag-Lloyd generated a positive cash flow in 9M 2015
Hapag-Lloyd generated a positive cash flow in 9M 2015 Cash flow 9M 2015 [USD m] Operating Investing Financing cash flow cash flow cash flow 540 -539 -323 Free cash flow = USD 2 m -131 -99 1,121 770 1,029 – 1251) 256 -663 385 -511 124 486 -179 -18 0 865 543 Liquidity EBITDA Working Other Invest- Desi
Slide 25: Expects a significant improvement in profitability for Full Year 2015
On the basis of 9M 2015, Hapag-Lloyd expects a significant improvement in profitability for the Full Year 2015 Guidance for 2015 Comments Guidance for 2015 based on pro-forma inclusion of Transport CCS for 2014 – therefore, one-off volume and rate Largely unchanged volume effects not taken into ac
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Slide 27: Income statement of Hapag-Lloyd [USD m]
Income statement of Hapag-Lloyd [USD m] Income statement Transport expenses 9M 9M 9M 9M ∆ ∆ 2015 2014 2015 2014 Transport expenses 6,199.6 5,873.9 325.7 Transport volume [TTEU] 5,579 4,347 1,232 Cost of raw materials, supplies and purchased goods 948.0 1,383.2 -435.2 Freight rate [USD/TEU] 1,260 1,4
Slide 28: Balance sheet of Hapag-Lloyd [USD m]
Balance sheet of Hapag-Lloyd [USD m] Assets Equity and liabilities 30.09.2015 30.06.2015 ∆ 30.09.2015 30.06.2015 ∆ Goodwill 1,672.1 1,672.1 0.0 Equity 5,240.6 5,234.3 6.3 Other intangible assets 1,520.9 1,549.4 -28.5 Provisions 712.8 774.1 -61.3 Property, plant and equipment 6,763.7 6,576.1 187.6 In
Slide 29: Solid long-term and diversified financing portfolio
Solid long-term and diversified financing portfolio Debt maturity profile [USD m] 1,228 845 297¹) 651 635 1,094 343 100²) 339 292 397 447 149 249 278 103 45 20 7 27 6 35 23 33 90 18 27 29 31 32 Q4 2016 2017 2018 2019 ≥ 2020 2015 Liabilities to banks Bonds Liabilities from finance lease contracts Oth
Slide 30: Hapag-Lloyd has issued three bonds on debt capital markets
Hapag-Lloyd has issued three bonds on debt capital markets EUR Bond 2019 EUR Bond 2018 USD Bond 2017 Issuer Hapag-Lloyd AG Hapag-Lloyd AG Hapag-Lloyd AG Volume EUR 250 m EUR 400 m USD 250 m Minimum order 100,000 EUR 100,000 EUR 150,000 USD Issue date November 20, 2014 September 20, 2013 October 01,
Slide 31: Hapag-Lloyd bonds continuously trade above par
Hapag-Lloyd bonds continuously trade above par Hapag-Lloyd bonds 120 115 110 104.1 105 104.1 103.8 100 95 90 Jan/ 14 Mai/ 14 Sep/ 14 Jan/ 15 Mai/ 15 Sep/ 15 HL USD 9.75% 2017 HL EUR 7.75% 2018 HL EUR 7.50% 2019 YTW Hapag-Lloyd bonds 9.75% 2017 7.75% 2018 7.50% 2019 Current Yield 5.6% 4.3% 5.9% Curre
Slide 32: Imbalances: Hapag-Lloyd outperforms the market
Imbalances: Hapag-Lloyd outperforms the market Number of full non-dominant leg containers Container Steering per 10 full dominant leg containers1) Dominant 10 Special Know-How/ IT leg Trans- 5.5 Advantageous customer pacific 6.2 portfolio Cost-efficient management of Trans- 7.0 equipment flows atlan
Slide 33: Long-standing and diversified customer base of blue chip customers
Long-standing and diversified customer base of blue chip customers and a diversified base of goods transported Highly diversified customer base1) Strong relationship with blue chip customers 100% 31% Top 50 Customers (∑ = 36%) 23% 10% 10% 9% 17% TOP 10 TOP TOP TOP TOP > 500 Total Hapag-Lloyd has a h
Slide 34: Investor Relations contact
Henrik Schilling Senior Director Investor Relations Tel +49 40 3001-2896 Fax +49 40 3001-72896 Henrik.Schilling@hlag.com http://www.hapag-lloyd.com/en/investor_relations/overview.html 34
Slide 35: Disclaimer
Disclaimer STRICTLY CONFIDENTIAL This presentation is provided to you on a confidential basis. Delivery of this information to any other person, the use of any third-party data or any reproduction of this information, in whole or in part, without the prior written consent of Hapag-Lloyd is prohibite