Hapag-lloyd Ag · XETR:HLAG
Hapag-lloyd — Merger or Acquisition (May 2017)
25 slides from Hapag-lloyd's merger presentation, May 24, 2017
Slide 1: Investor Presentation
Investor Presentation Hamburg, 24 May 2017
Slide 2: Opening Remarks
Opening Remarks DEAL STRUCTURE On 24 May 2017, the merger between Hapag-Lloyd and UASC has been closed UASC business has been contributed in-kind into Hapag-Lloyd against issuance of new shares by Hapag-Lloyd STRATEGIC RATIONALE Combined entity among the Top 5 global carriers with a strengthen
Slide 3: Combined Entity
1 Combined Entity
Slide 4: Hapag-Lloyd / UASC merger creates a top tier pure-play carrier
1 Combined Entity Hapag-Lloyd / UASC merger creates a top tier pure-play carrier At a glance Deal rationale Combined Entity1) Strengthened market position Corporate Well-balanced Hamburg Dubai Hamburg trades HQ Alliance G6 Ocean 3 THE Alliance (until (until membership 31 March 2017) 31 March 2017) (
Slide 5: Hamburg remains the HQ of the combined entity, Dubai becomes our new Regional HQ
1 Combined Entity Hamburg remains the HQ of the combined entity, Dubai becomes our new Regional HQ for Middle East Executive Board CEO CFO COO CCO Rolf Habben Nicolás Burr Anthony J. Firmin Thorsten Haeser Jansen Regional Headquarters RAS REU RLA Set up of a new Region Middle East (Singapore) (Hambu
Slide 6: Strategic Rationale
2 Strategic Rationale
Slide 7: The combination has a compelling strategic rationale
2 Strategic Rationale The combination has a compelling strategic rationale Combined entity among Top 5 global players with a strengthened market position Balanced trade portfolio with additional Middle East presence One of the youngest and most efficient vessel fleets without the need for further sh
Slide 8: We believe that going forward there will be 5-7 significant global liner shipping companies
2 Strategic Rationale We believe that going forward there will be 5-7 significant global liner shipping companies Consolidation wave has led to higher concentration Carrier Revenue vs. EBIT-Margin FY 2016 Carrier capacity [TEU m] and global capacity share [%] EBIT-Margin [%] 14% 13% 8% 0.4 2.5 Hapag
Slide 9: The combined entity has a very balanced trade portfolio with an additional strong presence in the Middle East
2 Strategic Rationale The combined entity has a very balanced trade portfolio with an additional strong presence in the Middle East Transport volume by trade, FY 2016 (indicative) Hapag- Com- UASC Hapag-Lloyd UASC 1) Combined Entity 1) TEU m 1) Lloyd bined Atlantic 1.5 0.1 1.7 11% 18% 15% 17% Transp
Slide 10: We have a very competitive fleet, which is one of the most modern and youngest fleets in the industry
2 Strategic Rationale We have a very competitive fleet, which is one of the most modern and youngest fleets in the industry Young and fuel-efficient fleet Ship deliveries 2015-2017 2015 2016 2017 Average fleet age1) Combined 7.2 Vessel H1 H2 H1 H2 H1 H2 CMA CGM 7.4 -1.3 COSCO 7.6 yrs 19,500 TEU Top
Slide 11: Synergies of USD 435 m expected from 2019 onwards
2 Strategic Rationale Synergies of USD 435 m expected from 2019 onwards – Focus on fast-track integration and realization of synergies Synergy potential, full run-rate [USD m] Strong consolidation USD 435 million track record 2005 Realized net synergies of EUR 218 m in 2008 Network Overhead Other
Slide 12: Partner: New core shareholders with strategic interest in the Combined Entity
2 Strategic Rationale Partner: New core shareholders with strategic interest in the Combined Entity Transaction overview QIA1) PIF2) Other CSAV HGV Kühne TUI Free UASC shares contributed to Hapag-Lloyd in exchange for newly Minorities3) Float issued Hapag-Lloyd shares 51.3% 36.1% 12.6% 31.4% 20.6%
Slide 13: Financials
3 Financials
Slide 14: The FY 2016 revenue of the Combined Entity was at approximately USD 10 billion
3 Financials The FY 2016 revenue of the Combined Entity was at approximately USD 10 billion Volume [TTEU] Freight Rate [USD/TEU] 1,400 1,225 1,200 1,036 1,000 7,599 800 7,401 600 789 400 640 200 0 2015 2016 Revenue [USD m]1) 3,082 9,814 2,600 8,546 2,356 2,439 2015 2016 2015 2016 Hapag-Lloyd UASC 1)
Slide 15: FY 2016 results were impacted by challenging market environment
3 Financials FY 2016 results were impacted by challenging market environment EBITDA1) EBIT1) Net profit1) FY 2016 [USD m] FY 2016 [USD m] FY 2016 [USD m] 671 140 98 Hapag-Lloyd UASC -180 -103 -339 Hapag-Lloyd UASC Hapag-Lloyd UASC 1) EBITDA, EBIT and Net profit is taken from the audited consolidated
Slide 16: Strong equity base and liquidity reserve – Going forward main focus on deleveraging quickly
3 Financials Strong equity base and liquidity reserve – Going forward main focus on deleveraging quickly Liquidity reserve Equity base Net debt 31.12.2016 [USD m] 31.12.2016 [USD m] 31.12.2016 [USD m] Financial 4,415 8,315 +34.3% debt Restricted 1,676 7,576 Cash 20 20 7,176 +59.1% Cash 602 1,076 400
Slide 17: Hapag-Lloyd with clearly defined financial policy
3 Financials Hapag-Lloyd with clearly defined financial policy Profitability going forward supported by improved fleet ownership structure Profitability and synergy realization Investments No planned new vessel investments in next years – Maximize free cash flow Deleveraging Clear target to signific
Slide 18: Next Steps
4 Next Steps
Slide 19: Our commitment: A seamless and quick integration
4 Next Steps Our commitment: A seamless and quick integration Indicative timeline for the transition Hapag-Lloyd Booking channels and UASC open for first joint joined forces sailings Departure of first joint Transfer of services Joint sailings under concluded customer Hapag-Lloyd Bill of visits Ladi
Slide 20: Closing Remarks
Closing Remarks DEAL STRUCTURE On 24 May 2017, the merger between Hapag-Lloyd and UASC has been closed UASC business has been contributed in-kind into Hapag-Lloyd against issuance of new shares by Hapag-Lloyd STRATEGIC RATIONALE Combined entity among the Top 5 global carriers with a strengthen
Slide 21: Hapag-Lloyd Investor Relations
Hapag-Lloyd Investor Relations Tel +49 40 3001-2896 Fax +49 40 3001-72896 ir@hlag.com https://www.hapag-lloyd.com/en/ir.html
Slide 22: Market Update
Market Update CCFI v/s Bunker Highest scrapping level ever … Average age CCFI Comprehensive Index Rotterdam HSFO [USD/mt] [TTEU] 1,500 27 28 28 24 23 23 23 20 19 +34% +239% 1,000 848 +40% 654 500 444 351 332 381 273 131 193 205 75 0 Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May 2009 20
Slide 23: Worldwide network of the Combined Entity
Worldwide network of the Combined Entity As of 31.03.2017 Hapag-Lloyd UASC 1/20/2017 Insert Presentation Title here "Insert > Header and Footer > Apply to All" Nº of Services 118 45 Nº of Ports 559 220 Nº of Inland points 5,385 967 Nº of Countries 120 78 23
Slide 24: Attractive vessel and container fleet
Attractive vessel and container fleet Vessel fleet Owned1) Chartered3) Current fleet Current as of 31 March 2017 orderbook Container fleet structure Capacity [TEU] 254,157 - 254,157 30,0004) 15 - 15 24) Nº of TEU >14,000 TEU Vessels as of 31 March 2017 containers Capacity [TEU] 291,930 40,092 332,02
Slide 25: 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