Slide 1: Investor Presentation FY 2023 Results
Investor Presentation FY 2023 Results Hamburg, 14 March 2024 Investor Presentation FY 2023 Results Hamburg, 14 March 2024
Slide 2: Key Statements
Key Statements In 2023, we achieved the third best result in the Group's history Our long-term contracts and diversified EBIT [USD bn ] geographic exposure have helped us to achieve a strong financial result in a weak market 3.8% 6.4% 10.3% 42.2% 50.7% 14.1% Margin environment 18.5 We made important
Slide 3: Container volumes recovered while rates reached unsustainably low levels
1 Highlights After a weak start, container volumes gradually recovered while rates reached unsustainably low levels on many trades in 2023 GLOBAL CONTAINER VOLUMES [TEU m] FY 2022 2021 2022 2023 2024 FY 2023 17 172.8 TEU m +0.4% 173.5 TEU m MARKET DEVELOPMENT 2023 16 ▪ Container volumes were on par
Slide 4: We made significant progress along our strategic agenda in 2023
1 Highlights We made significant progress along our strategic agenda in 2023 FLEET & DIGITALISATION TERMINAL & INFRASTRUCTURE ▪ Reached 2m TEU in standing vessels ▪ Completed 3 transactions, thereby gaining capacity, thereby securing our global Top 5 access to 17 terminals in Europe, India and posit
Slide 5: Gemini Cooperation
1 Highlights Gemini Cooperation will be an important Gemini Cooperation cornerstone for our quality ambitions Hapag-Lloyd and Maersk agreed on a long-term operational partnership starting February 2025 A strong partnership on key East-West trades: Far East/Europe & Mediterranean, Transpacific (excl.
Slide 6: 2023 was once again a very successful year for Hapag-Lloyd
2 Financial Performance 2023 was once again a very successful year for Hapag-Lloyd FY 2023 GROUP KEY FIGURES Transport volume1 Revenue EBITDA 11.9 MTEU USD 19.4 bn USD 4.8 bn PY: 11.8 MTEU PY: USD 36.4 bn PY: USD 20.5 bn Free Cash Flow Net Cash Dividend USD 3.6 bn USD 2.9 bn EUR 9.25/ share PY: USD
Slide 7: Q4 EBIT was negative for the first time since 2016
2 Financial Performance Q4 EBIT was negative for the first time since 2016, owing to unsustainable freight rate environment REVENUE [USD m] EBITDA [USD m] -49% -47% 48.0% 7.5% Margin 56.2% 24.9% -92% -76% 7,962 36,401 20,474 4,079 19,391 3,825 4,825 306 Q4 2022 Q4 2023 FY 2022 FY 2023 Q4 2022 Q4 202
Slide 8: Liner Shipping Segment results
2 Financial Performance Liner Shipping Segment Liner Shipping recorded a strong start to the year, but results declined sequentially Liner Shipping ▪ Revenue declined mainly due to USD m FY 2023 FY 2022 48% lower freight rates Revenue 19,210 36,380 ▪ Transport costs improved significantly, but not e
Slide 9: Average freight rate dropped 48% while volumes were up 0.5%
2 Financial Performance Liner Shipping Segment The average freight rate dropped by 48% while volumes were up 0.5% in 2023 FREIGHT RATE DEVELOPMENT [USD/TEU] TRANSPORT VOLUME DEVELOPMENT BY TRADE [TTEU] FY 2022 FY 2023 2,863 -48% 1,500 +0.5% 3,500 3,106 2,935 -55% 11,843 11,907 3,000 2,774 2,577 2,62
Slide 10: Unit cost decreased in 2023
2 Financial Performance Liner Shipping Segment Unit cost decreased in 2023 due to dissipation of congestion and cost reduction measures - Q4 impacted by Red Sea diversions UNIT COST DEVELOPMENT Q4 2022 – Q4 2023 [in USD/TEU]1 2023 vs 2022 [in USD/TEU]1 Volume 2.9 2.8 3.0 3.1 3.0 11.8 11.9 [TEU m] -1
Slide 11: Terminal activities impacted by one-off effects from acquisitions
2 Financial Performance Terminal & Infrastructure Terminal activities were impacted by one-off effects related to the acquisitions in 2023 Terminal & Infrastructure ▪ Revenue increase driven by first USD m FY 2023 FY 2022 time consolidation of SAAM Ports & Logistics since Aug 2023 Revenue 202.3 24.3
Slide 12: Good cash generation used for investments and dividends
2 Financial Performance Good cash generation used for fleet investments, expansion of terminal business and dividend distribution CASH FLOW FY 2023 [USD m] Operating Investing Financing cash flow cash flow cash flow 5,387 -1,805 -13,411 1,000 830 -3,635 562 16,265 4,825 -12,235 6,435 -1,099 -250 172
Slide 13: Net liquidity position of USD 2.9 bn
2 Financial Performance With a net liquidity position of USD 2.9 bn, the balance sheet ratios remain very strong EQUITY [USD m] NET LIQUIDITY [USD m] 72.1% Equity ratio 64.7% 5,804 Financial Debt 5,572 < 0x Net Leverage < 0x 29,795 20,787 13,437 2,907 31 Dec 2022 31 Dec 2023 31 Dec 2022 31 Dec 2023
Slide 14: We propose a dividend of EUR 9.25 per share
2 Financial Performance We propose a dividend of EUR 9.25 per share to the AGM TOTAL DIVIDEND DISTRIBUTION [EUR m] 11,073 6,152 1,626 193 615 26 2018 2019 2020 2021 2022 2023e DPS AND PAYOUT RATIO1 [EUR] 71% 53% 66% 68% 65% 55% 63.00 35.00 9.25 0.15 1.10 3.50 Virtual AGM scheduled for 30 April 2024
Slide 15: Red Sea and Panama Canal disruptions
3 Market Update Red Sea security issues and Panama Canal draft restrictions continue to cause disruptions, resulting in short-term capacity shortage RED SEA Hamburg ▪ Due to attacks on vessels, major Rotterdam +10 days carriers continue to avoid the Red Sea Norfolk, VA EC Piräus and instead use the
Slide 16: Market fundamentals remain challenging
3 Market Update Market fundamentals remain challenging despite capacity absorption from Cape of Good Hope diversion GLOBAL DEVELOPMENTS OF SUPPLY AND DEMAND GLOBAL ORDERBOOK [TEU m; % of world fleet] 27% 26% 24% 22% Container Volume Growth [%] Fleet Growth [%] 19% 16% 16% 13% 11% 10% 10% 7.1 7.1 6.7
Slide 17: FY 2024 outlook
4 Way Forward Solid start to the year expected but a volatile freight rate environment and geopolitical risks weigh on FY 2024 earnings outlook FY 2024 It remains unclear when the Red Seas FY 2023 Outlook passage will be safe again The high number of ship deliveries will lead to a gradual increase i
Slide 18: Strategy 2030 targets
4 Way Forward With Strategy 2030 we have further refined our strategic targets and adapted them to the changed market conditions Pillars of our new strategy STRATEGIC DIRECTION Pureplay-Plus WHERE- TO-PLAY Top 5 Global Container Line HOW- Undisputed Sustainability Top 3rd TO-WIN Number 1 for Quality
Slide 19: Save the Date: Capital Markets Day 2024
Save the Date virtual Capital Markets Day 2024 16 April 2024 2pm – 4pm CEST 19
Slide 20: Appendix
Appendix 21
Slide 21: Equity ratio of 64.7%
A Appendix Equity ratio of 64.7% BALANCE SHEET [USD M] FINANCIAL POSITION [USD M] million USD 31.12.2023 31.12.2022 million USD 31.12.2023 31.12.2022 Assets Financial debt and lease liabilities 5,572.1 5,803.8 Non-current assets 20,801.1 18,034.8 Cash and cash equivalents 6,435.2 16,264.5 of which f
Slide 22: Net profit of USD 3.2 bn in FY 2023
A Appendix Net profit of USD 3.2 bn in FY 2023 INCOME STATEMENT [USD M] QoQ YoY million USD Q4 2023 Q3 2023 Q4 2022 Change change FY 2023 FY 2022 Change Revenue 4,079.2 4,464.5 7,961.7 –8.6% –48.8% 19,390.8 36,401.1 –46.7% Transport and terminal expenses –3,268.4 –3,303.0 –3,664.7 –1.0% –10.8% –12,9
Slide 23: Well balanced maturity structure of financial liabilities
A Appendix Well balanced maturity structure of financial liabilities FINANCIAL DEBT PROFILE AS PER 31 DECEMBER 20231, [USD M] Facility 31 December 2023 [USD m] Vessel Financings 1,930 1.530 Container Financings 670 367 Total Vessel & Container 2,600 1.087 EUR Bond 2024 332 Total Bonds 332 884 877 38
Slide 24: Financial Calendar 2024
A Appendix Financial Calendar 2024 January 2024 Preliminary Financials 2023 14 March 2024 Annual Report FY 2023 16 April 2024 Capital Markets Day 2024 30 April 2024 Annual General Meeting 2024 15 May 2024 Quarterly Financial Report Q1 2024 14 August 2024 Half-year Financial Report 2024 14 November 2
Slide 25: 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 26: 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 27