Slide 1: Investor Presentation H1 2021 Results
Investor Presentation H1 2021 Results Investor Hamburg, 12 AugustPresentation 2021 H1 2021 Results Hamburg, 12 August 2021
Slide 2: Opening Remarks
Opening Remarks H1 2021 was driven by continued strong demand, high freight rates and operational bottlenecks 1 Current developments To ease the tight market situation and improve service quality we have launched several initiatives In addition, we successfully closed the acquisition of NileDutch an
Slide 3: Unabated global demand and continued supply-chain disruptions led to a shortage of transport capacity
1 Current developments Unabated global demand and continued supply-chain disruptions led to a shortage of available transport capacity and rising freight rates Monthly transport volume growth in H1 2021 Demand growth has so far exceeded net capacity growth in 2021e Global The strong increase in
Slide 4: To improve service quality, we have increased vessel, container, personnel and IT capacity
1 Current developments To improve service quality, we have among other measures increased our vessel-, container-, personnel-, and IT capacity Vessel capacity [TEUm] We bought second hand tonnage, chartered in additional vessels and deployed extra- loaders where possible +2.4% We have ordered si
Slide 5: We closed the NileDutch acquisition, expanded vessel investments and advanced Strategy 2023
1 Current developments We successfully closed the acquisition of NileDutch, expanded our vessel investments and made further progress on Strategy 2023… Successfully closed Ordered additional Launched initiatives the acquisition of six LNG powered to provide full NileDutch 23,500+ TEU transparency on
Slide 6: Framework of our sustainability strategy for the next 10 years
1 Current developments …and developed the framework of our sustainability strategy, which will set our course for the next 10 years CLEAN SHIPPING & DIVERSITY & SOCIETY COMPLIANCE & FUTURE-PROOF RESPONSIBILITY PROPULSION Greenhouse Gases Diversity Resource Conservation Clean Air Corporate Citizenshi
Slide 7: Exceptionally strong result, strengthened balance sheet, cost of capital earned
2 Financials We have achieved an exceptionally strong result, further strengthened our balance sheet and earned our cost of capital Operational KPIs P&L effects Volume 6,004 Volume increased by 4.3% YoY as a result of overall Revenue 10,551 Very strong revenue recovery (USD +3,546 m) TTEU PY: 5,755
Slide 8: After a strong start to the year, Q2 earnings improved even further
2 Financials After a strong start to the year, Q2 earnings improved even further Revenue [USD m] EBITDA [USD m] +50.6% 23.2% 41.3% Margin 18.4% 40.2% +2,953 10,551 +70.1% 4,240 +1,560 7,005 5,648 2,330 3,321 1,287 770 Q2 2020 Q2 2021 H1 2020 H1 2021 Q2 2020 Q2 2021 H1 2020 H1 2021 EBIT [USD m] Group
Slide 9: H1 2021 transport volumes increased mainly on dominant legs
2 Financials H1 2021 transport volumes increased mainly on dominant legs, while congestion impeded stronger overall volume growth Transport volume development by trade [TTEU] Q2 2019 – 2021 H1 2019 – 2021 -0.3% +0.6% +12.1% +4.3% -11.1% -3.5% 3,038 3,029 5,966 6,004 5,755 513 2,701 467 920 982 923 4
Slide 10: Freight rates increased strongly by ~46% YoY due to tight capacity
2 Financials Freight rates increased strongly by ~46% YoY due to tight capacity situation Freight rate [USD/TEU] vs. Bunker price development [USD/mt] H1 2019 H1 2020 H1 2021 1,071 1,104 +46% 1,612 1,714 +51% 1,509 Average freight rate 1,094 1,114 1,163 1,079 1,063 1,084 1,062 1,084 523 425 434 416
Slide 11: Operational challenges resulted in clearly higher transport expenses per unit
2 Financials Operational challenges resulted in clearly higher transport expenses per unit Transport expenses per unit [USD/TEU] Bunker expenses decreased by H1 2020 1,031 11.8% on the back of lower average bunker consumption prices Bunker -20 Negative effects of port congestions, leading to increas
Slide 12: Free cash flow surged to USD 3.4 bn – Capex will accelerate in H2
2 Financials Free cash flow surged to USD 3.4 bn – Capex will accelerate in H2 Cash flow H1 2021 [USD m] Operating Investing Financing cash flow cash flow cash flow 3,915 -544 -1,816 -325 -572 567 28 -1,109 -340 -151 2,977 4,240 -781 585 1,421 585 2,392 Free cash flow = USD 3,371 m 836 (H1 2020: USD
Slide 13: Balance sheet ratios significantly improved – Net Debt further reduced
2 Financials Balance sheet ratios significantly improved – Net Debt further reduced by USD 1.5 bn while Net Leverage down to below 1.0x Equity base [USD m] Net debt [USD m] 44.3% Equity ratio 49.3% 6,305 Financial Debt 6,296 1.8x Net Debt / LTM EBITDA 0.6x 10,806 5,469 8,253 3,905 31 December 2020 3
Slide 14: Global container transport volumes expected to rise significantly in 2021e
3 Market Update On the back of the economic recovery, global container transport volumes are expected to rise significantly in 2021e GDP vs. global container volume growth [%] GDP Container volume growth 6.3% 4.9% 5.1% 6.0% 4.0% 4.9% 3.5% 3.3% 2.8% 3.8% 3.6% 1.9% 1.0% -1.0% -0.4% -3.2% 2015 2016 201
Slide 15: Strong order activity drove orderbook-to-fleet ratio to roughly 20%
3 Market Update Strong order activity in H1 2021 drove the orderbook-to-fleet ratio to roughly 20 % … Global orderbook Newly placed orders [TEU m, %] Orderbook Share of world fleet [TEU m] Q4 Q3 Q2 Q1 3.3 56% Some of recent orders not yet reflected in all databases 47% 1.2 35% 1.0 0.7 26% 26% 21% 20
Slide 16: Only limited capacity delivered in 2021e and 2022e; scrapping to rise
3 Market Update … but only limited capacity will be delivered in 2021e and 2022e, and scrapping is expected go up significantly in the years thereafter [Scheduled] vessel deliveries [Expected] scrapping Scrapping is likely to pick up significantly in the [TEU m] [TEU m; % of world fleet] years to co
Slide 17: Earnings momentum likely to remain very strong in H2 – outlook raised
4 Way forward Earnings momentum likely to remain very strong in H2 – FY 2021 EBITDA and EBIT outlook raised Previous Guidance for New Guidance for FY 2020 FY 2021 FY 2021 Global demand for container transport remains at a high level. Transport volume 11,838 TTEU Increasing slightly Increasing slig
Slide 18: Our focus for H2 2021 and beyond
4 Way forward Our focus for H2 2021 and beyond: Focus on schedule Seamlessly complete Deliver on our reliability, service integration of Strategy 2023 quality and customer NileDutch satisfaction Consider selective Take care of Continue to follow a investment our people and prudent financial opportun
Slide 19: Appendix
Somme s | Shipping for a cleaner suture!
Slide 20: Equity ratio of 49.3% and gearing of 36.1%
A Appendix Hapag-Lloyd with an equity ratio of 49.3% and a gearing of 36.1% Balance sheet [USD m] Financial position [USD m] million USD 30.6.2021 31.12.2020 million USD 30.6.2021 31.12.2020 Assets Financial debt and lease liabilities 6,296.1 6,305.1 Non-current assets 16,293.4 15,508.3 Cash and cas
Slide 21: Positive EBIT of USD 3,487.3 m in H1 2021
A Appendix Hapag-Lloyd with positive EBIT of USD 3,487.3 m in H1 2021 Income statement [USD m] QoQ YoY million USD Q2 2021 Q1 2021 Q2 2020 Change change H1 2021 H1 2020 Change Revenue 5,648.1 4,903.2 3,321.2 15.2% 70.1% 10,551.3 7,005.2 50.6% Transport expenses –2,999.4 –2,737.0 –2,295.4 9.6% 30.7%
Slide 22: Well balanced maturity structure of financial liabilities
A Appendix Well balanced maturity structure of financial liabilities Financial Debt Profile as per 30 June 20211), [USD m] Facility 30 June 2021 [USD m] Liabilities to banks Liabilities from lease and charter contracts Vessel Financings 2,171 Bonds Other financial liabilities 1,882 Container Financi
Slide 23: Freight rate development
A Appendix Freight rate development Comprehensive Index [USD/TEU] Shanghai – North Europe [USD/TEU] 5,000 8,000 CCFI Comprehensive Index SCFI Comprehensive Index CCFI NEurope SCFI NEurope 7,418 4,226 7,000 4,000 6,000 5,000 5,230 3,000 3,007 4,000 2,000 3,000 2,000 1,000 1,000 0 0 Jan-19 Jul-19 Jan-
Slide 24: 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 25: Bond trading
A Appendix Bond trading EUR Bond 2028 104.2 Open market of the Luxembourg Stock Listing Exchange (Euro MTF) Volume EUR 300 m ISIN / WKN XS2326548562 100 Maturity Date April 15, 2028 as of 15 April 2024: 101.375% Redemption as of 15 April 2025: 100.688% Price as of 15 April 2026: 100% HL EUR 2.500% 2
Slide 26: 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 27: Financial Calendar 2021
Financial Calendar 2021 27 January 2021 Preliminary Financials FY 2020 18 March 2021 Annual Report FY 2020 12 May 2021 Quarterly Financial Report Q1 2021 28 May 2021 Virtual Annual General Meeting 2021 12 August 2021 Half-year Financial Report 2021 12 November 2021 Quarterly Financial Report 9M 2021
Slide 28: 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 29: 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