Slide 1: Investor Presentation – Preliminary Financials FY 2015
Investor Presentation – Preliminary Financials FY 2015 2 March 2016 1
Slide 2: Hapag-Lloyd made material progress in 2015
Hapag-Lloyd made material progress in 2015 STRATEGIC HIGHLIGHTS CUATRO: The integration is completed – substantial portion of synergies already realized in FY 2015 • Net synergies of USD 400 m to be achieved in 2016 OCTAVE: The additional cost saving program OCTAVE is on track and made a noticea
Slide 3: EBITDA increased to USD 922 m (margin: 9.4%)
EBITDA increased to USD 922 m (margin: 9.4%) FINANCIAL HIGHLIGHTS Key return figures [USD m] Hapag-Lloyd significantly increased its EBITDA FY 2014 FY 2015 to USD 922 m (margin: 9.4%) in 2015 – the EBIT reached USD 407 m (margin: 4.1%) MARGIN 9.4% 4.1% Transport volume increased to 7.4 TEU m 1.5
Slide 4: Agenda
Agenda A. Industry – Our Positioning B. Strategy – Our “Way Forward” C. Financials – Strong Earnings Growth 4
Slide 5: Since our IPO, some peer results have been under pressure
Since our IPO, some peer results have been under pressure especially due to freight rates and very low volume growth Global transport volume [TEU m] Global freight rate [USD / TEU] +1% -25% 1,326 139.2 140.4 1,350 Total transport volume (CTS) 1,200 1,099 Ø E-W market freight 1,000 1,050 rate (Drewry
Slide 6: Capacity measures offer a flexible response to demand fluctuations
Capacity measures offer a flexible response to demand fluctuations Global capacity management Global order book [TEU m / %] Idle fleet capacity [TTEU] 56% Share of total fleet 6.8% 10 1,500 1,4201,480 1,359 47% 8 35% 6 1,000 838 830 26% 26% 779 Share of 4 21% 20% 19% world fleet 6.8 16% 6.4 500 356
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 in tough market conditions Well-balanced global exposure Attractive market presence Strong niche businesses Transpacific Atlantic Far East Atlantic Reefer 4 Other Services 22% 28% Globally Historical stro
Slide 8: Agenda
Agenda A. Industry – Our Positioning B. Strategy – Our “Way Forward” C. Financials – Strong Earnings Growth 8
Slide 9: 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 10: Project CUATRO: Integration completed – USD 400 m net synergies in 2016
Project CUATRO: Integration completed – USD 400 m 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
Slide 11: Project OCTAVE: USD 200 m cost improvements across all operation areas
Project OCTAVE: USD 200 m 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 Uti
Slide 12: 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 Investments in niche markets where and when needed Hamburg Delivered 2012 – 2014 Express Class Hapag-Lloyd has purchased Cost efficient growth Se
Slide 13: 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 (example) Improve cargo mix (example) Bubble size represents Increase share Decrease share Grow market volume in TEU Lane 5 Lane 3 Contribution Contribution Keep Lane 2 La
Slide 14: Agenda
Agenda A. Industry – Our Positioning B. Strategy – Our “Way Forward” C. Financials – Strong Earnings Growth 14
Slide 15: Strong increase in transport volume (+25.3%) driven by CSAV integration
Strong increase in transport volume (+25.3%) driven by integration of CSAV container shipping activities Transport volume [TTEU] Freight rate [USD/TEU] +25.3% 1,600 2013 2014 2015 +7.5% 1,500 7,401 5,496 5,907 1,400 1,300 -14.1% 1,200 1,100 Ø 1,482 Ø 1,427 Ø 1,225 1,000 2013 2014 2015 Q1 Q2 Q3 Q4 Q1
Slide 16: Significantly increased EBITDA to USD 922 m in full-year 2015
Hapag-Lloyd significantly increased its EBITDA to USD 922 m (EBITDA margin: 9.4%) in the full-year 2015 Operational KPIs Comments FY 2015 FY 2014 ∆/% ■ 2015 first fiscal year with full reflection of CSAV transaction Transport volume [TTEU] 7,401 5,907 +1,494 / +25.3% Revenue Freight rate [USD/TEU] 1
Slide 17: Step-change in Hapag-Lloyd's profitability also versus peers
Step-change in Hapag-Lloyd's profitability also versus peers H1 2014 (USDm) H1 2015 (USDm) (0.4)% (0.8)% (1.0)% (1.1)% (2.5)% (2.9)% (3.1)% (3.2)% (3.6)% (1.3)% 10.1% 11.0% 8.0% 4.8% 4.5% 3.6% 6.6% 1.0% 0.0% 9.0% 5.7% 7.3% 6.0% 3.1% 2.1% 1.9% 1.3% 1.3% NA NA NA NA +8.9pp 1,070 1,266 Best margin impr
Slide 18: Optimization of capital structure and financial position
Optimization of capital structure and financial position with further tangible savings in 2015 Enhanced equity base [USDm] Improved leverage position [USDm] +8.5% EBITDA 517 131 922 +26.3% Net Debt/ 5,068 5,497 6.6x n.m. 3.9x EBITDA 4,013 3,401 3,653 3,631 Net Debt 2013 2014 2015 2013 2014 2015 Stro
Slide 19: 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 Basic data Stock trading (since 6-Nov) Frankfurt Stock Exchange 120 Stock exchange Hamburg Stock Exchange 100 Regulated market 80 Market segment (Prime Standard) 60 ISIN DE000HLAG475 40 6-Nov 6-Dec 6-Jan 6-Feb WKN
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Slide 21: 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 – 2015 2015 – 2017e GDP 1.9x 0.9x 1.2x multiplier 300 +4.2% +3.1% 250 +8.1% +3.5% 200 +3.5% Tra
Slide 22: Volatility of spot rates will remain in the short term
Volatility of spot rates will remain in the short term – Hapag-Lloyd rates are more stable than SCFI Shanghai – Europe (SCFI) Shanghai – USA (SCFI) 2,500 6,000 USWC (USD/FEU) USEC (USD/FEU) HL Transpacific* NEurope (USD/TEU) Mediter. (USD/TEU) HL Far East* 5,000 2,000 4,000 1,500 3,000 1,000 2,000 1
Slide 23: Two M&A deals are further consolidating the industry landscape
Two M&A deals are further consolidating the industry landscape Current M&A deals Changing landscape in a fragmented market… 2M …including alliance dynamics + 2,880 2,677 G6 CKHYE Ocean Three 5,557 2,362 Non-alliance carriers 3,533 3,390 3,042 Announced 7 December 2015 544 All-cash acquisition (0
Slide 24: Our assets are a competitive fleet, and we have the means to 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 25: 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 125 m1) Minimum order 100,000 EUR 100,000 EUR 150,000 USD Issue date November 20, 2014 September 20, 2013 October 01
Slide 26: 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 27: Henrik Schilling, Senior Director Investor Relations
Henrik Schilling Senior Director Investor Relations Tel +49 40 3001-2896 Fax +49 40 3001-72896 Henrik.Schilling@hlag.com http://ir.hapag-lloyd.com/websites/hapaglloyd/English/0/ir-home.html 27
Slide 28: 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