Slide 1: Investor Presentation FY 2021 Results
Investor Presentation FY 2021 Results Hamburg, 10 March 2022
Slide 2: Opening Remarks
Opening Remarks High global demand for consumer goods led to a sustained disruption of global supply chains 1 HIGHLIGHTS To alleviate the operational challenges and support our customers we invested in people and assets We have refined our Strategy 2023 and strengthened our footprint in attractive g
Slide 3: The shift in demand has outlined the vulnerability of global supply chains
1 Highlights The shift in demand has outlined the vulnerability of global supply chains US CONSUMPTION EXPENDITURES PRESSURE ON SUPPLY CHAINS 120% Goods Services 110% COVID-19 pandemic has shifted 100% consumer behavior from services to more consumer goods mainly produced in Asia 90% 80% High demand
Slide 4: We have done our utmost to alleviate operational challenges by investing in people & assets
1 Highlights We have done our utmost to alleviate operational challenges by investing in people & assets, but also by refining our strategy SUSTAINABILITY, STRATEGY & QUALITY ASSETS & PEOPLE REFINANCING & RATING ~300,000 TEU Containers Sustainability-linked bond Reviewed Strategy 2023 ordered issued
Slide 5: We have strengthened our position in attractive markets by acquiring NileDutch
1 Highlights We have strengthened our position in attractive markets by acquiring NileDutch and expanding our liner services SERVICES NILEDUTCH Established new services to and from Africa, Acquisition of Africa specialist NileDutch Middle East, India and Asia OFFICES Opened new offices in growth mar
Slide 6: The acquisition of Europe-South Africa specialist DAL
1 Highlights The acquisition of Europe-South Africa specialist DAL will complement our service offering in the African market DEUTSCHE AFRIKA-LINIEN (DAL) Founded in 1890 and headquartered in Hamburg, Germany, with agencies in Germany and South Africa Transport volume of ~85 TTEU p.a. and additi
Slide 7: Since 2021 we offer our customers multi-year contracts at fixed rates
1 Highlights Since 2021 we offer our customers multi-year contracts at fixed rates to secure allocation and improve efficiency QFP (QUALITY FREIGHT PRODUCT) QFP AMBITION FOR 2022 QFP Fixed Shipment & 10% Price EQ Guarantee The freight rate is fixed The shipment is QFP during the contract protected f
Slide 8: Our exceptional profitability has helped us to strengthen our financial resilience
2 Financials Our exceptional profitability has helped us to strengthen our financial resilience OPERATIONAL KPIs P&L effects Volume 11,872 Transport volume is only slightly above prior year’s level Revenue 26,356 Revenue increase by USD +11.8 bn mainly due to TTEU PY: 11,838 (0.3% YoY) as a result o
Slide 9: On the back of a sharp rise in revenues, group profit increased tenfold
2 Financials On the back of a sharp rise in revenues, group profit increased tenfold REVENUE [USD m] EBITDA [USD m] +80.8% 25.6% 55.6% Margin 21.1% 48.7% 26,356 +9,760 12,842 +107.6% 14,577 +3,641 8,411 4,679 4,052 3,082 1,038 Q4 2020 Q4 2021 FY 2020 FY 2021 Q4 2020 Q4 2021 FY 2020 FY 2021 EBIT [USD
Slide 10: In spite of strong demand, transport volumes were only slightly up
2 Financials In spite of strong demand, transport volumes were only slightly up as a result of port congestion TRANSPORT VOLUME DEVELOPMENT BY TRADE [TTEU] +0.3% -8.0% 11,838 11,872 3,142 2,065 2,105 2,892 531 521 1,851 1,768 483 414 2,286 2,274 643 534 1,476 1,557 395 395 831 608 192 148 2,889 3,03
Slide 11: Freight rates increased strongly by ~80% YoY
2 Financials Freight rates increased strongly by ~80% YoY – bunker costs are on a steady rise as well FREIGHT RATE [USD/TEU] VS. BUNKER PRICE DEVELOPMENT [USD/MT] FY 2020 FY 2021 1,115 +80% 2,003 +122% 2,577 2,234 1,714 1,509 Average freight rate 1,114 1,163 1,094 1,084 +73% Average bunker price 523
Slide 12: Operational challenges resulted in clearly higher transport expenses
2 Financials Operational challenges resulted in clearly higher transport expenses TRANSPORT EXPENSES PER UNIT [USD/TEU] Bunker expenses increased by 23% FY 2020 1,015 on the back of higher average bunker +160 / +16% consumption prices Bunker 32 Negative effects of operational disruptions, leading to
Slide 13: Due to high profitability, free cash flow surged to USD 10.9 bn
2 Financials Due to high profitability, free cash flow surged to USD 10.9 bn CASH FLOW FY 2021 [USD m] Operating Investing Financing cash flow cash flow cash flow 12,314 -1,456 -2,953 -528 -1,482 26 596 -1,674 -803 9,326 -266 -804 585 12,842 8,741 1,421 585 Free cash flow = USD 10,858 m 836 (FY 2020
Slide 14: Since 2017 we have significantly strengthened our balance sheet ratios
2 Financials Since 2017 we have significantly strengthened our balance sheet ratios EQUITY [USD m] ROIC [%] 60.5% 70.0% IFRS 16 WACC IFRS 16 40.9% 40.9% 40.9% 44.3% 18,292 10.6% 7.9% 8.2% 8,253 6.8% 7.0% 7,263 7,168 7,430 6.0% 3.1% 3.7% 6.1% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 LIQUIDIT
Slide 15: We propose to the AGM a dividend distribution of EUR 35 per share
2 Financials Based on the strong result in 2021, we propose to the AGM a dividend distribution of EUR 35 per share EPS [EUR/share] DPS [EUR/share] Dividend ratio based on EAT1) 307% 57% 52% 66% 68% EUR 100 m EUR 26 m EUR 193 m EUR 615 m EUR 6.2 bn 51.63 35.00 5.27 3.50 2.06 1.10 0.57 0.19 0.21 0.15
Slide 16: Strong demand led to increased order activity…
3 Market Update Strong demand led to increased order activity… GLOBAL ORDERBOOK NEWLY PLACED ORDERS [TEU m; % of world fleet] Orderbook Share of world fleet [TEU m] Q4 Q3 Q2 Q1 4.2 56% 47% 1.2 35% 1.0 0.7 26% 26% 21% 20% 22% 22% 19% 2018 2019 2020 2021 16% 16% 13% 11% 10% 10% IDLE FLEET 6.8 Share of
Slide 17: …while the majority of newly ordered capacity will only be delivered from 2023 onwards
3 Market Update …while the majority of newly ordered capacity will only be delivered from 2023 onwards [SCHEDULED] VESSEL DELIVERIES [EXPECTED] SCRAPPING [TEU m] [TEU m; % of world fleet] 3.3% Scrapping is likely to pick up further 2.3 2.2 2.0% 0.7 1.6% 1.2% 1.7 1.1% 0.8% 0.8% 0.6% 0.4% 0.5 1.3 0.4
Slide 18: Demand has rebounded strongly since the end of 2020 and supply is expected to converge
3 Market Update Demand has rebounded strongly since the end of 2020 and supply is expected to converge in the coming years SUPPLY/DEMAND BALANCE [TEU m, %] Demand is expected 350 to remain robust 280 Capacity influx will increase from 7% 2023 onwards to cater for high 6% 7% 210 6% demand 5% 4% 4% 4%
Slide 19: Earnings momentum to remain on a very high level in the first half of 2022
4 Way forward Earnings momentum to remain on a very high level in the first half of 2022, followed by a beginning normalization of earnings thereafter FY 2021 Outlook for 2022 Rationale TRANSPORT At the beginning of the year 11,872 TTEU Increasing slightly 2022, the underlying market VOLUME conditio
Slide 20: While our Strategy 2023 remains valid, we will focus even more on Quality and Sustainability
4 Way forward While our Strategy 2023 remains valid, we will focus even more on Quality and Sustainability BE PROFITABLE GLOBAL PLAYER #1 FOR QUALITY SUSTAINABILITY We reached our financial and We are a global player, but high We made good progress to We have met our environmental profitability targ
Slide 21: We have refined our priorities for the coming 2 years along 3 pillars
4 Way forward We have refined our priorities for the coming 2 years along 3 pillars 1 2 3 SIMPLIFY STRENGTHEN INVEST Simplify customer segmentation & Double-down on our ambition Invest in our people, sustainable experience and reduce internal to become #1 in quality assets and long-term competitiven
Slide 22: Appendix
Appendix 22
Slide 23: Equity ratio of 60.5% and a gearing of below 0
A Appendix Hapag-Lloyd with an equity ratio of 60.5% and a gearing of below 0 BALANCE SHEET [USD M] FINANCIAL POSITION [USD M] million USD 31.12.2021 31.12.2020 million USD 31.12.2021 31.12.2020 Assets Financial debt and lease liabilities 6,221.7 6,305.1 Non-current assets 17,298.4 15,508.3 Cash and
Slide 24: Strong net profit of USD 10,750.3 m in FY 2021
A Appendix Hapag-Lloyd with strong net profit of USD 10,750.3 m in FY 2021 INCOME STATEMENT [USD M] QoQ YoY million USD Q4 2021 Q3 2021 Q4 2020 Change change FY 2021 FY 2020 Change Revenue 8,411.0 7,393.9 4,052.5 13.8% 107.6% 26,356.2 14,577.1 80.8% Transport expenses –3,320.6 –3,158.6 –2,735.7 5.1%
Slide 25: Well balanced maturity structure of financial liabilities
A Appendix Well balanced maturity structure of financial liabilities FINANCIAL DEBT PROFILE AS PER 31 DECEMBER 20211), [USD M] Facility 31 December 2021 [USD m] Liabilities to banks Liabilities from lease and charter contracts Vessel Financings 1,942 Bonds Other financial liabilities Container Finan
Slide 26: Global container volume growth expected to remain robust
A Appendix Global container volume growth expected to remain robust GDP VS. GLOBAL CONTAINER VOLUME GROWTH [%] GDP Global Container Volume Growth 6.5% 4.9% 5.9% 4.4% 3.9% 3.7% 4.0% 3.9% 2.8% 3.8% 3.6% 3.8% 3.3% 3.4% 3.0% 1.3% -1.1% -3.1% 2016 2017 2018 2019 2020 2021 2022e 2023e 2024e Note: CTS data
Slide 27: Freight rate development
A Appendix Freight rate development COMPREHENSIVE INDEX [USD/TEU] SHANGHAI – NORTH EUROPE [USD/TEU] 6,000 8,000 CCFI Comprehensive Index SCFI Comprehensive Index CCFI NEurope SCFI NEurope 7,519 7,000 5,000 4,818 6,000 4,000 5,589 5,000 3,426 3,000 4,000 3,000 2,000 2,000 1,000 1,000 0 0 Jan-19 Jul-1
Slide 28: Share price development
A Appendix Share price development PERFORMANCE SINCE 1 JANUARY 2021 Indexed Price Frankfurt Stock Exchange / 600% Stock Exchange Hamburg Stock Exchange 500% Regulated market Market segment (Prime Standard) 400% ISIN / WKN DE000HLAG475 / HLAG47 300% Ticker Symbol HLAG 200% Nov/16 Primary listing 6 No
Slide 29: Bond trading
A Appendix Bond trading 106 EUR Bond 2028 105 Open market of the Luxembourg Stock Listing 104 Exchange (Euro MTF) 103 Volume EUR 300 m 102 ISIN / WKN XS2326548562 101 100 Maturity Date April 15, 2028 99 98 as of 15 April 2024: 101.375% Redemption as of 15 April 2025: 100.688% Price as of 15 April 20
Slide 30: Shareholder structure
A Appendix Shareholder structure Shareholders’ agreement/ Controlling shareholders 3.6% 10.2% Kühne Maritime GmbH / Kühne Holding AG 30.0% CSAV Germany Container Holding GmbH 12.3% HGV Hamburger Gesellschaft für Vermögens- und Beteiligungsmanagement mbH 176 m shares Qatar Holding Germany GmbH The Pu
Slide 31: Financial Calendar 2022
A Appendix Financial Calendar 2022 10 March 2022 Annual Report FY 2021 12 May 2022 Quarterly Financial Report Q1 2022 25 May 2022 Virtual Annual General Meeting 2022 11 August 2022 Half-year Financial Report 2022 10 November 2022 Quarterly Financial Report 9M 2022 31
Slide 32: 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 33: Hapag-Lloyd Investor Relations
Hapag-Lloyd Investor Relations Ballindamm 25 20095 Hamburg Tel: +49 (40) 3001-2896 ir@hlag.com All publication documents can be found here: https://www.hapag-lloyd.com/en/ir.html 33