Slide 1: Investor Presentation Q1 2023 Results
Investor Presentation Q1 2023 Results Hamburg, 11 May 2023
Slide 2: Opening Remarks
Opening Remarks Demand for container transport remained on a low level in Q1 2023 as a result of inventory de-stocking 1 HIGHLIGHTS We have executed further on our strategic agenda to Simplify, Strengthen and Invest We made significant progress in our efforts to build up a robust terminal portfolio
Slide 3: Global demand weakness continued in Q1 2023
1 Highlights Global demand weakness continued in Q1 2023 GLOBAL CONTAINER VOLUMES [TEU m] MARKET DEVELOPMENT Q1 2022 Q1 2023 42.9 TEU m -6.7% 40.0 TEU m Global demand for container transport 16 remained on a low level in Q1 2023 as 15 a result of inventory de-stocking 14 13 12 2021 2022 2023 Spot ra
Slide 4: By meeting our quality goals, we were able to further improve customer satisfaction
1 Highlights By meeting our quality goals, we were able to further improve customer satisfaction QUALITY PROMISES RECOMMENDATION RATE – NPS (Net Promoter Score) Apr 2023 vs. Increase to highest level since survey began in 2018 2019/2021 Timely and correct documentation good 95% Issuance of final bil
Slide 5: We are investing to maintain a competitive fleet and further digitise our business
1 Highlights We are investing to maintain a competitive fleet and further digitise our business Montevideo Express NEWBUILDINGS FLEET UPGRADE PROGRAM 13k TEU High Reefer High Reefer 6 – 7% Fuel savings 10 x 13k TEU delivery 07/22 – 09/24 70 – 100 TTEU Capacity increase Dual-Fuel LNG USD 750 m 12 x 2
Slide 6: SHIP GREEN will make our customers' supply chains more sustainable
1 Highlights SHIP GREEN will make our customers' supply chains more sustainable LAUNCH OF SHIP GREEN PRODUCT Emissions Avoidance ▪ With "Ship Green", customers can opt for up to 100% emission-free sea transport of their cargo in the future ▪ By using biofuel, CO2 emissions can be further reduced in
Slide 7: We continue to make good progress on building our terminal portfolio
1 Highlights We continue to make good progress on building our terminal portfolio INVESTMENTS IN CONTAINER TERMINALS SPINELLI GROUP Acquisition of 49% share strengthening our market position in the Mediterranean by gaining access to major Italian gateway terminals with excellent hinterland capabilit
Slide 8: Financial KPIs were still on an exceptional level in Q1 2023
2 Financial Performance Financial KPIs were still on an exceptional level in Q1 2023 despite challenging market environment Transport volume Revenue EBITDA 2.8 MTEU USD 6.0 bn USD 2.4 bn PY: 3.0 MTEU PY: USD 9.0 bn PY: USD 5.3 bn Free Cash Flow Net Liquidity Equity USD 3.5 bn USD 15.7 bn USD 31.8 bn
Slide 9: Earnings normalisation continued in Q1 2023
2 Financial Performance Earnings normalisation continued in Q1 2023 – While earnings are clearly below prior year, margins and return on capital remained high REVENUE [USD m] EBITDA [USD m] 59% Margin 39% -32.7% 8,956 -55.2% 5,307 6,028 2,379 Q1 2022 Q1 2023 Q1 2022 Q1 2023 EBIT [USD m] GROUP PROFIT
Slide 10: Transport volumes declined by 4.9% due to weaker global demand
2 Financial Performance Transport volumes declined by 4.9% due to weaker global demand for container transport TRANSPORT VOLUME DEVELOPMENT BY TRADE [TTEU] COMMENTS -4.9% The Atlantic trade saw robust demand 2,987 mainly from industrial costumers and 2,842 benefitted from the gradual easing of 489 p
Slide 11: Average freight rate fell further amid lower demand
2 Financial Performance Average freight rate fell further amid lower demand and rapidly declining spot market rates – bunker prices remained elevated FREIGHT RATE [USD/TEU] VS. BUNKER PRICE DEVELOPMENT [USD/MT] -27.9% 3,106 2,935 2,774 2,577 2,625 2,234 1,999 Average freight rate 1,714 1,509 +5.2% 7
Slide 12: Unit costs increased YoY but were clearly below the previous quarter
2 Financial Performance Unit costs increased YoY mainly due to higher bunker and repositioning expenses but were clearly below the previous quarter CHANGE IN TRANSPORT EXPENSES PER UNIT [USD/TEU] COMMENTS Q1 2022 1,282 Bunker” expenses increased by 7.5% because of higher bunker prices. +43 / +3.2% “
Slide 13: Strong cash generation leading to a very high cash balance
2 Financial Performance Strong cash generation leading to a very high cash balance of USD 19.2 bn at the end of Q1 2023 CASH FLOW Q1 2023 [USD m] Operating Investing Financing cash flow cash flow cash flow 2,754 708 -494 221 -392 19,231 -56 -46 976 375 -488 2,379 16,265 Free cash flow = USD 3,463 m
Slide 14: Balance sheet figures on exceptional level
2 Financial Performance Balance sheet figures on exceptional level – Excess funds were used to distribute EUR 11.1 bn dividends in May EQUITY [USD m] NET LIQUIDITY [USD m] 72.1% Equity ratio 74.0% 5,804 Financial Debt 5,572 < 0x Net Leverage < 0x 31,821 29,795 15,683 13,437 31 Dec 2022 31 Mar 2023 3
Slide 15: Orderbook remains on high level
3 Market Update Orderbook remains on high level – Most new vessels to be delivered in 2023 and 2024 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% 28% 21% 20% 16% 19% 16% 22% 13% 11
Slide 16: Global supply will likely outpace demand in the next two years
3 Market Update Global supply will likely outpace demand in the next two years GLOBAL DEVELOPMENTS OF SUPPLY AND DEMAND Demand likely to remain subdued until destocking cycle is Additional risk for fleet growth due to completed Container Volume Growth [%] less slippage and scrapping Fleet Growth [%]
Slide 17: Outlook confirmed: Gradual normalisation of earnings expected
4 Way Forward Outlook confirmed: Gradual normalisation Outlook of earnings expected in the course of 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
Slide 18: 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 Work further on building our terminal portfolio Investments in our teams Strengthen sustainability and de
Slide 19: Appendix
Appendix 20
Slide 20: Equity ratio of 74.0% and net liquidity of USD 15.7 bn
A Appendix Hapag-Lloyd with an equity ratio of 74.0% and a net liquidity of USD 15.7 bn at the end of Q1 2023 BALANCE SHEET [USD M] FINANCIAL POSITION [USD M] million USD 31.3.2023 31.12.2022 million USD 31.3.2023 31.12.2022 Assets Financial debt and lease liabilities 5,571.7 5,803.8 Non-current ass
Slide 21: Group profit came in at USD 2.0 bn in Q1 2023
A Appendix Hapag-Lloyd’s group profit came in at USD 2.0 bn in Q1 2023 INCOME STATEMENT [USD M] QoQ YoY million USD Q1 2023 Q4 2022 Q1 2022 Change change Revenue 6,028.1 7,961.7 8,956.1 –24.3% –32.7% Transport expenses –3,259.4 –3,664.7 –3,313.1 –11.1% –1.6% Personnel expenses –259.0 –343.3 –235.7 –
Slide 22: Well balanced maturity structure of financial liabilities
A Appendix Well balanced maturity structure of financial liabilities FINANCIAL DEBT PROFILE AS PER 31 MARCH 20231), [USD M] Facility 31 March 2023 [USD m] Liabilities to banks Bonds Liabilities from lease and charter contracts2) Other financial liabilities Vessel Financings 1,659 Container Financing
Slide 23: Share price development
A Appendix Share price development PERFORMANCE SINCE 1 JANUARY 2023 Indexed Price Dividend Frankfurt Stock Exchange / 220% payment of Stock Exchange Hamburg Stock Exchange 63 EUR/share 200% Regulated market Market segment (Prime Standard) 180% 160% ISIN / WKN DE000HLAG475 / HLAG47 140% Ticker Symbol
Slide 24: 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 Maturity Date April 15, 2028 92.2 90 as of 15 April 2024: 101.375% Redemption 87 as of 15 April 2025: 100.688% Price as of 15 April 2026
Slide 25: 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 26: 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 27: 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 28: 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 29