Hapag-lloyd Ag · XETR:HLAG
Hapag-lloyd — H1 2023 Earnings Presentation
27 slides from Hapag-lloyd's earnings presentation, Aug 10, 2023
Slide 1: Investor Presentation H1 2023 Results
Investor Presentation H1 2023 Results Hamburg, 10 August 2023
Slide 2: Opening Remarks
Opening Remarks Global transport demand remained muted in H1 2023 leading to a challenging market environment 1 HIGHLIGHTS With the completion of the SAAM Ports & Logistics acquisition in August we reached a significant milestone Delivery of our newbuild LNG-powered vessels will substantially contri
Slide 3: Global transport demand remained muted in H1 2023
1 Highlights Global transport demand remained muted in H1 2023 reflecting slow GDP growth and a shift back from goods to services GLOBAL CONTAINER VOLUMES [TEU m] MARKET DEVELOPMENT H1 2022 H1 2023 88.1 TEU m -4.3% 84.3 TEU m 16 Global container volumes in H1 2023 15 were well below 2021/2022 levels
Slide 4: SAAM Ports & Logistics acquisition completed in August
1 Highlights We have completed the SAAM Ports & Logistics acquisition in August, a key milestone to build a robust terminal portfolio SAAM PORTS & LOGISTICS ACQUISITION Chilean terminal operator and logistics company Florida 10 Terminals (70%) operated in Latin America and the USA Mazatlan (100%) Ca
Slide 5: New LNG-powered vessels will contribute to CO2 reduction targets
1 Highlights Our new LNG-powered vessels will substantially contribute to our CO2 reduction targets -60% New vessel Berlin Express 11.68 23.600 TEU 2008 Dual-fuel LNG engine 4.67 2030 OUR CO2 REDUCTION MEASURES OUR CO2 REDUCTION AMBITION [AER]2) 7.5 ▪ Deployment of highly efficient 13k and 24k TEU n
Slide 6: Customer satisfaction increased to the highest level since 2018
1 Highlights Customer satisfaction increased to the highest level since 2018 QUALITY PROMISES RECOMMENDATION RATE – NPS (Net Promoter Score) June 2023 vs. 2019/2021 Timely and correct documentation good 97% Issuance of final bills of lading within great 89% 8 hours improvable 107% Booked and loaded
Slide 7: Strong financial performance in H1 2023 despite challenging market
2 Financial Performance Strong financial performance in H1 2023 despite challenging market environment Transport volume Revenue EBITDA 5.8 MTEU USD 10.8 bn USD 3.8 bn PY: 6.0 MTEU PY: USD 18.6 bn PY: USD 10.9 bn Free Cash Flow Net Liquidity Equity USD 4.0 bn USD 3.9 bn USD 20.7 bn PY: USD 9.5 bn FY
Slide 8: Normalisation of earnings trend in H1 2023 as anticipated
2 Financial Performance Normalisation of earnings trend in H1 2023 as anticipated – Margins and return on invested capital still on a high level REVENUE [USD m] EBITDA [USD m] -42% 59% 29% Margin 59% 35% 18,562 -65% -50% 10,942 10,847 9,606 -75% 5,635 4,819 3,775 1,396 Q2 2022 Q2 2023 H1 2022 H1 202
Slide 9: Transport volumes declined by 3.4% YoY in H1
2 Financial Performance Transport volumes declined by 3.4% YoY in H1 due to weak global demand for container transport TRANSPORT VOLUME DEVELOPMENT BY TRADE [TTEU] -2.0% -3.4% 3,024 2,965 6,012 5,807 563 511 1,052 1,038 430 433 861 853 573 573 1,174 1,055 388 356 802 725 154 188 311 350 751 726 1,48
Slide 10: Average freight rate fell further; bunker price down clearly
2 Financial Performance Average freight rate fell further due to normalisation of supply chains and weaker demand – bunker price down clearly FREIGHT RATE [USD/TEU] VS. BUNKER PRICE DEVELOPMENT [USD/MT] H1 2022 H1 2023 2,855 -38% 1,761 -48% 3,106 2,935 2,774 2,577 2,625 Average freight rate 2,234 1,
Slide 11: Unit costs decreased YoY due to lower bunker prices
2 Financial Performance Unit costs decreased YoY mainly due to lower bunker prices and easing of port congestion CHANGE IN TRANSPORT EXPENSES PER UNIT [USD/TEU] H1 2022 1,331 COMMENTS Bunker” expenses decreased by 15% Bunker -36 because of lower bunker prices. “Handling and Haulage” expenses Handlin
Slide 12: Cash balance of USD 7.4 bn at end of H1 2023
2 Financial Performance Despite high dividend payout in May, cash balance stood at USD 7.4 bn at the end of H1 2023 CASH FLOW H1 2023 [USD m] Operating Investing Financing cash flow cash flow cash flow 4,143 -163 -12,871 368 426 -1,591 1,001 3,775 16,265 -12,229 7,372 -692 -119 169 Free cash flow =
Slide 13: Balance sheet figures remain strong – Net liquidity at USD 3.9 bn
2 Financial Performance Balance sheet figures remain strong – Net liquidity at USD 3.9 bn EQUITY [USD m] NET LIQUIDITY [USD m] 72.1% Equity ratio 65.7% 5,804 Financial Debt 5,493 < 0x Net Leverage < 0x 29,795 13,437 20,673 3,854 31 Dec 2022 30 Jun 2023 31 Dec 2022 30 Jun 2023 LIQUIDITY RESERVE [USD
Slide 14: High inflow of newbuild vessels commenced
3 Market Update High inflow of newbuild vessels commenced – Vessel ordering activity still elevated GLOBAL ORDERBOOK SCHEDULED VESSEL DELIVERIES [TEU m; % of world fleet] Orderbook Share of world fleet [before scrapping and slippage] 56% [TEU m] 47% 35% 26% 26% 27% 27% 21% 20% 16% 19% 16% 22% 13% 11
Slide 15: Global supply will likely outpace demand
3 Market Update Global supply will likely outpace demand in the next quarters GLOBAL DEVELOPMENTS OF SUPPLY AND DEMAND Only slow recovery of demand expected in the next quarters Additional risk for fleet growth due to Container Volume Growth [%] less slippage and scrapping Fleet Growth [%] 9% 8% 7%
Slide 16: Outlook confirmed: Gradual normalisation of earnings
4 Way Forward Outlook confirmed: Gradual normalisation Outlook of earnings set to continue in H2 2023 2023 FY 2022 Outlook 2023 Transport volume 11,843 TTEU Increasing slightly Bunker con- 753 USD/mt Decreasing clearly sumption price Freight rate 2,863 USD/TEU Decreasing clearly USD 4.3 – 6.5 bn EBI
Slide 17: Priorities for 2023
4 Way Forward Priorities for 2023 Focus on service quality and customer satisfaction Adapt to evolving market conditions Continue with a prudent financial policy Maintain a competitive cost base Integrate recent terminal acquisitions Invest in our teams Strengthen sustainability and decarbonisation
Slide 18: Appendix
Appendix 20
Slide 19: Group profit came in at USD 3.1 bn in H1 2023
A Appendix Hapag-Lloyd’s group profit came in at USD 3.1 bn in H1 2023 INCOME STATEMENT [USD M] QoQ YoY million USD Q2 2023 Q1 2023 Q2 2022 Change change H1 2023 H1 2022 Change Revenue 4,819.0 6,028.1 9,605.7 –20.1% –49.8% 10,847.1 18,561.8 –41.6% Transport expenses –3,070.2 –3,259.4 –3,663.3 –5.8%
Slide 20: Equity ratio of 66% and net liquidity of USD 3.9 bn
A Appendix Hapag-Lloyd with an equity ratio of 66% and a net liquidity of USD 3.9 bn at the end of H1 2023 BALANCE SHEET [USD M] FINANCIAL POSITION [USD M] million USD 30.6.2023 31.12.2022 million USD 30.6.2023 31.12.2022 Assets Financial debt and lease liabilities 5,492.6 5,803.8 Non-current assets
Slide 21: Well balanced maturity structure of financial liabilities
A Appendix Well balanced maturity structure of financial liabilities FINANCIAL DEBT PROFILE AS PER 30 JUNE 20231, [USD M] Facility 30 June 2023 [USD m] Liabilities to banks Bonds Liabilities from lease and charter contracts2) Other financial liabilities Vessel Financings 1,702 Container Financings 7
Slide 22: Share price development
A Appendix Share price development PERFORMANCE SINCE 1 JANUARY 2023 Indexed Price Frankfurt Stock Exchange / 220% Stock Exchange Hamburg Stock Exchange Dividend 200% payment of 63 EUR/share Regulated market Market segment (Prime Standard) 180% 160% ISIN / WKN DE000HLAG475 / HLAG47 140% 120% Ticker S
Slide 23: 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 92.4 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
Slide 24: Our shareholder base is long-term oriented
A Appendix Our shareholder base is long-term oriented Shareholders’ agreement/ Controlling shareholders Kühne: majority owner of Kühne + Nagel, 3.6% shareholder since 2009 10.2% CSAV: Chilean stock listed company, majority 30.0% owned by Luksic Group, shareholder since 12.3% merger with CSAV in 2014
Slide 25: Financial Calendar 2023
A Appendix Financial Calendar 2023 31 January Preliminary Financials 2022 2 March Annual Report FY 2022 3 May Annual General Meeting 2023 11 May Quarterly Financial Report Q1 2023 10 August 2023 Half-year Financial Report 2023 9 November 2023 Quarterly Financial Report 9M 2023 27
Slide 26: 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 27: 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 29