Slide 1: Investor Presentation Preliminary Results 2018
Investor Presentation Preliminary Results 2018 Hamburg, 25 February 2019
Slide 2: 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 3: Opening Remarks
Opening Remarks Stable demand despite recent downgrades and rising geopolitical risks 01 Our Industry Sector fundamentals remain favourable in the mid-term EBITDA of USD 1,345 m in 2018 (USD 1,199 m in 2017) 02 Our Position Solid pro forma volume growth of 6% YoY and pro forma rate up by 2%
Slide 4: Container shipping volume growth expectation remains on a healthy level
1 Our Industry Despite increasing geopolitical risks, container shipping volume growth expectation remains on a healthy level… Global Container Volume Growth & Real GDP Growth [%] 2000 = Indexed to 100 GDP multiplier 1.9x 1.0x 1.3x 300 4.9% 4.7% 4.0% 250 3.6% 3.5% 3.7% Container Volume 200 Growth 15
Slide 5: Historically low orderbook and reasonable new orders
1 Our Industry …which, combined with the historically low orderbook and reasonable new orders… Orderbook-to-fleet Newly placed orders [TEUm, %] [TEUm, %] Orderbook 61% Vessels > 13,999 TEU 2.0 2.2 Share of World Fleet 1.8 6.5 50% 1.1 1.2 6.0 0.8 38% 0.4 0.2 5.0 27% 28% 2011 2012 2013 2014 2015 2016
Slide 6: Further improving supply / demand balance in the years to come
1 Our Industry …will lead to a further improving supply / demand balance in the years to come Scheduled vessel deliveries Scrapping [% of world fleet] [TEUm] 1.7 3.0% 2.0% 2.1% 2.1% 1.1% 1.2 1.2 1.2 0.5% 1.0 2015 2016 2017 2018 2019e 2020e 0.9 Supply / Demand Balance 10 8.0% 8.0% 8 6.1% 6.3% 5.5% 5.
Slide 7: Spot rates show a positive trend towards the end of 2018
1 Our Industry In nearly all trades, spot rates have shown a positive trend towards the end of 2018 Comprehensive Index (CCFI/SCFI) Shanghai – North Europe (SCFI) 1,100 CCFI Comprehensive Index SCFI Comprehensive Index 1,100 SCFI NEurope (USD/TEU) 1,000 1,000 900 879 900 848 831 800 800 700 700 600
Slide 8: Strong positive EBITDA of USD 1,345 m in 2018
2 Our Position We have achieved a strong positive EBITDA of USD 1,345 m in 2018 Q4 2017 vs. Q4 2018 FY 2017 vs. FY 2018 10.6% 9.9% Margin % Q4 2017 Q4 2018 FY 2017 FY 2018 + 12.2% 1,345 1,199 4.1% 3.8% 12.5% 10.5% + 12.1% 5.3% 4.6% - 4.4% 524 467 390 372 - 1.6% 167 164 EBIT EBITDA EBIT EBITDA Note:
Slide 9: Pro forma transport volume growth of 6%, freight rates up 2%
2 Our Position Solid pro forma transport volume growth of 6%, while pro forma freight rates have increased by 2% Transport volume [TEUm] Freight rate [USD/TEU] vs. Bunker price [USD/mt] + 21% + 6% Ø 2017 Ø 2018 11.2 11.9 1.060 - 2% 1.044 9.8 Freight rate, reported Freight rate, 2017 2017, 2018 pro f
Slide 10: Clearly defined policy to create shareholder value
3 Our Objectives Hapag-Lloyd has a clearly defined policy to create shareholder value… Financial Targets to be achieved until 2023 Profitability ROIC (throughout the cycle) > WACC [This implies an EBITDA-margin of ~ 12%] Deleveraging Net Debt / EBITDA ≤ 3.0x Equity Equity ratio > 45% Liquidity Adequ
Slide 11: As well as customer value
3 Our Objectives …as well as customer value Non-Financial Targets to be achieved until 2023 Achieve best in class Net Promoter Score (NPS) Quality Measure and improve On Time Delivery Superior landside Increase share of door-to-door business to over 40% of total by 2023 capabilities Grow volume in s
Slide 12: Hapag-Lloyd Investor Relations
Hapag-Lloyd Investor Relations Ballindamm 25 20095 Hamburg Tel: +49(40) 3001-2896 ir@hlag.com https://www.hapag-lloyd.com/en/ir.html 12