Hapag-Lloyd AG

Investor Presentation • Aug 7, 2019

Investor Presentation – Half Year Results 2019

Hamburg, 7 August 2019

Opening Remarks

1	Our deliverables	Further progress on implemention of Strategy 2023 and significantly improved results Positive freight rate development of +5%, while transport volume increased by +2% YoY in H1 2019 Slight YoY increase of unit cost driven by bunker; unit cost (ex. bunker) remained almost flat
2	Our market	Despite weakening GDP expectations, trend of container volume growth still intact Orderbook remains on a reasonably low level with only limited amount of orders placed YTD Preparations for IMO 2020 could positively impact net capacity growth
3	Our financials	Clearly improved group profit of USD 165 m in H1 2019 (USD -122 m in H1 2018) Strong free cash flow of USD 867 m in H1 2019 (USD 443 m in H1 2018) Leverage target of 3.5x Net debt / EBITDA (excl. IFRS 16) achieved

1 Our deliverables

Tangible steps made on Strategy 2023

• First savings accomplished
• Full run-rate of USD 350- 400 m p.a. to be achieved by 2021

3

Implementation of new services

• Implementation of 2 new services
  • strengthening our position in South-East India and expanding service offerings in Africa

Investment in reefer containers

• Investment in 13,420 new reefer containers
• expanding our reefer container capacity to over 210,000 TEU

Bond redemption

Full redemption1) of EUR 450 m senior note due 2022 at fixed redemption price of 103.375%

1 Our deliverables

4

Cost management program well on track

Cost savings potential

5

Financial Highlights H1 2019

Transport volume +2.0% H1 2019: TEU 6.0 m	TEU1) Transport expenses per +0.8% H1 2019: 1,021 USD/TEU	Freight rate +5.0% H1 2019: 1,071 USD/TEU
EBIT USD 440 m 6.2% EBIT margin	Group profit USD 165 m 5.9% ROIC annualized	EBITDA USD 1,080 m 15.3% EBITDA margin
Equity USD 7.2 bn Equity ratio: 39.4%	Liquidity reserve USD 1.1 bn	Net debt USD 7.1 bn Gearing: 98.4%

2 Our market

Despite slowing market growth…

Real GDP Growth vs. Global Container Volume Growth [%]

2 Our market

…the historically low orderbook of only 10%…

[TEU m, %]

7

Orderbook-to-fleet Newly placed orders

[TEU m, %]

Source: MDS Transmodal (July 2019), Drewry Forecaster (various issues), Clarksons (July 2019), Alphaliner weekly (various sources)

2 Our market

8

…combined with an increase in scrapping, will lead to a further improved market environment

Source: Drewry (Forecaster 2Q19), MDS Transmodal (July 2019), IHS Markit (May 2019), Clarksons (June 2019) Note: IHS Markit has changed their forecast methodology. Figures have limited comparability to previous publications.

9

Results are substantially higher YoY…

Operational KPIs	Q2 2019	Q2 2018	YoY	H1 2019	H1 2018	YoY
Transport volume [TTEU]	3,038	2,987	+2%	5,966	5,848	+2%
Freight rate [USD/TEU]	1,063	1,010	+5%	1,071	1,020	+5%
Bunker [USD/mt]	434	399	+9%	429	385	+11%
Exchange rate1) [USD/EUR]	1.12	1.19	n.m.	1.13	1.21	n.m.
Revenue [USD m]	3,569	3,356	+6%	7,047	6,577	+7%
EBITDA [USD m]	524	251	+109%	1,080	517	+109%
EBITDA margin	14.7%	7.5%	+7.2ppt	15.3%	7.9%	+7.4ppt
EBIT [USD m]	197	47	+319%	440	110	+301%
EBIT margin	5.5%	1.4%	+4.1ppt	6.2%	1.7%	+4.5ppt
Group profit [USD m]	56	-80	n.m.	165	-122	n.m.
ROIC [annualized]	5.3%	1.0%	+4.3ppt	5.9%	1.3%	+4.6ppt

1) Average rate for the period. Note: Figures as stated in the Investor Report Q2/H1 2019. Rounding differences may occur. Due to the first-time application of IFRS 16 "Leases" as at 1 January 2019, the presentation of the group earnings, financial and net asset positions is only comparable with that of the corresponding prior year period to a limited degree. Unless stated otherwise, the figures for Q2/H1 2018 refer to the provisions for leases pursuant to IAS 17.1

…even correcting for IFRS 16 effects

Overview of IFRS 16 effects on P&L accounts

[USD m]	H1 2019	H1 2018	∆	Thereof IFRS 16	∆ ex. IFRS 16
Revenue	7,047	6,577	+470	0	+470
Operating expenses (before D&A)	-5,967	-6,060	+93	+245	-152
EBITDA	1,080	517	+563	+245	+318
Depreciation & Amortization	-640	-407	-233	-230	-3
EBIT	440	110	+330	+15	+315
Interest result	-254	-209	-45	-36	-9
Income tax / other financial items	-21	-23	+2	0	+2
Group profit	165	-122	+287	-21	+308

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11

Transport volume increased by 2.0% YoY to 5,966 TTEU in H1 2019 mainly driven by Atlantic, Far East, Latin America and EMAO

Transport volume by trade [TTEU]

Transport volume development by trade [TTEU]

12

Average freight rate has increased by 5.0% YoY in H1 2019, driven by a positive development in almost all trades

Freight rate [USD/TEU] vs. Bunker price development [USD/mt]

Transport expenses per unit (ex. bunker) remained almost flat YoY

Transport expenses per unit [USD/TEU]

• Slight YoY increase driven by higher "Bunker" costs.
• Decrease in "Handling and haulage" as less profitable inland business was actively reduced in light of Strategy 2023.
• Substantial decrease in "Equipment and repositioning" due to IFRS 16. However, depreciation for rented container more than offset this decrease. Higher empty container repositioning cost drove the net increase.
• Decrease in "Vessel and voyage" due to IFRS 16 – increase in depreciation more than offset this decrease. Net increase driven by a capacity expansion and an increase in charter prices has been partly offset by higher slotcharter revenues.

14

Free cash flow generation significantly stronger than last year, notwithstanding IFRS 16 effects

Cash flow H1 2019 [USD m]

15

We have continued to deleverage the company…

16

…and have achieved our 2019 net debt / EBITDA target (excl. IFRS 16) of 3.5x ahead of plan

4 Our way forward

Earnings outlook for 2019

	FY 2018	Outlook 2019 (incl. IFRS 16)	Sensitivities for 20191)
Transport volume	11,874 TTEU	Increasing slightly	+/- 300 TTEU	+/- USD ~0.2 bn
Average freight rate	1,044 USD/TEU	Increasing slightly	+/- 50 USD/TEU	+/- USD ~0.6 bn
Average bunker price	421 USD/mt	Increasing slightly	+/- 50 USD/mt	+/- USD ~0.2 bn
EBITDA	EUR 1,138 m	EUR 1.6 – 2.0 bn	Thereof	EUR 370 – 470 m
EBIT	EUR 443 m	EUR 0.5 – 0.9 bn	IFRS 16 Impact	EUR 10 – 50 m

2018

4 Our way forward

HMM will join THE Alliance as a full member as of 1 April 2020, strengthening the alliance's competitiveness especially on FE & TP

• New cooperation with four members with a term until 2030
• HMM's orderbook (12x 23,000 TEU and 8x 15,000 TEU) will be delivered between 2020 and 2021
• The 23,000 TEU newbuildings will be deployed in the Far East – North Europe trade and will further strengthen THE Alliance's service portfolio

Alliance capacity shares on major trades (incl. HMM)

THE Alliance members as from 1 April 2020

4 Our way forward

Major targets for 2019 and beyond:

Continue to increase profitability and further deleverage our company

Prepare for IMO 2020

Continue to implement our "Strategy 2023" and create more value for our customers and shareholders as we strive to become number one for quality

Further develop and offer more digitalized solutions to our customers

Hapag-Lloyd with an equity ratio of 39.4% and a gearing of 98.4%

million USD	30.6.2019	31.12.2018
Assets
Non-current assets	15,585.3	14,709.1
of which fixed assets	15,526.1	14,645.7
Current assets	2,695.1	2,812.6
of which cash and cash equivalents	515.4	752.4
Total assets	18,280.4	17,521.7
Equity and liabilities
Equity	7,208.3	7,167.5
Borrowed capital	11,072.1	10,354.2
of which non-current liabilities	6,660.6	6,487.4
of which current liabilities	4,411.5	3,866.8
of which financial debt and lease liabilities	7,605.0	6,891.1
of which non-current financial debt and lease liabilities	6,206.1	6,070.8
of which current financial debt and lease liabilities	1,398.9	820.3
Total equity and liabilities	18,280.4	17,521.7

Balance sheet [USD m] Financial position [USD m]

30.6.2019	31.12.2018
7,605.0	6,891.1
515.4	752.4
–	7.4
7,089.7	6,131.3
545.0	545.0
1,060.4	1,297.4
7,208.3	7,167.5
98.4	85.5
39.4	40.9

Hapag-Lloyd with positive EBIT of USD 439.8 m in H1 2019

Income statement [USD m]

million USD	Q2 2019	Q1 2019	Q2 2018	QoQ	YoY	H1 2019	H1 2018	YoY
Revenue	3,569.0	3,477.6	3,356.0	3%	6%	7,046.6	6,576.7	7%
Transport expenses1	–2,790.5	–2,660.2	–2,849.6	5%	–2%	–5,450.7	–5,517.3	–1%
Personnel expenses	–185.5	–189.3	–187.9	–2%	–1%	–374.8	–383.7	–2%
Depreciation, amortiza tion and impairment	–327.3	–312.9	–203.8	5%	61%	–640.2	–407.5	57%
Other operating result	–78.7	–82.4	–76.0	–5%	3%	–161.0	–177.1	–9%
Operating result1	187.0	232.8	38.6	–20%	384%	419.8	91.0	361%
Share of profit of equity-accounted investees	10.1	9.7	8.8	4%	14%	19.8	18.7	6%
Result from investments	0.0	0.2	–0.0	–87%	–	0.2	–0.0	–
Earnings before in terestand tax (EBIT)1	197.1	242.7	47.4	–19%	316%	439.8	109.7	301%
Interest result	–133.5	–120.6	–107.8	11%	24%	–254.1	–209.1	22%
Income taxes	–6.6	–13.0	–13.5	–50%	–52%	–19.5	–20.6	–5%
Other financial items	–1.2	0.2	–6.1	–	–80%	–1.0	–2.3	–58%
Group profit / loss1	55.9	109.3	–80.1	–49%	–170%	165.2	–122.3	n/m

22 1) Due to the change in presentation of the consolidated income statement, the previous year's values have been adjusted. AS a result, EBIT for the first half of 2018 rose by USD 2.3 million, from USD 107.4 million to USD 109.7 million Note: Figures as stated in the Investor Report H1 2019. Rounding differences may occur

Appendix

Overview of IFRS 16 effects on cash flow statement

[USD m]	H1 2019	H1 2018	∆	Thereof IFRS 16	∆ ex. IFRS 16
EBIT	440	110	+330	+15	+315
Depreciation / Amortization	640	407	+233	+230	+3
EBITDA	1,080	517	+563	+245	+318
Working Capital and other effects	-80	-19	-61	+12	-73
Cash flow from operating activities	1,000	498	+502	+257	+245
Investing cash flow	-133	-55	-78	0	-78
Free cash flow	867	443	424	+257	+167
Additional repayments for liabilities from leases	-220	n.a.	-220	-220	0
Additional interest payments for liabilities from leases	-37	n.a.	-37	-37	0
Free cash flow adjusted by IFRS 16 effect	610	443	+167	0	+167

Appendix

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Reduced financing costs as well as improved maturity structure of financial liabilities

Financial Debt Profile as per 30 June 20191) , [USD m]

1) As of January 2018 financial debt profile has been changed to the statement of repayment amounts. Deviation from the total financial debt as shown in the balance sheet as per 30.06.2019 consists of transaction costs and accrued interest 2) ABS program prolonged until 2020 3) Liabilities from lease and charter contracts consist of USD 96 million liabilities from former finance lease contracts and USD 1,287 USD million from charter contracts presented as on-balance financial liability due to first-time application of IFRS 16 4) Repayment amounts based on contractual debt as per 30.06.2019 Note: Rounding differences may occur.

Bunker price increased by 11.4% YoY to 429 USD/mt in H1 2019, which drove up bunker expenses per unit to 156 USD/TEU

Hapag-Lloyd`s shareholder structure

The Public Investment Fund on behalf of the Kingdom of Saudi Arabia CSAV Germany Container Holding GmbH Qatar Holding Germany GmbH HGV Hamburger Gesellschaft für Vermögens- und Beteiligungsmanagement mbH Klaus Michael Kühne (incl. Kühne Holding AG and Kühne Maritime GmbH)

Free Float

Appendix

Share price development

Share trading since November 2015

Stock Exchange	Frankfurt Stock Exchange / Hamburg Stock Exchange
Market segment	Regulated market (Prime Standard)
ISIN / WKN	DE000HLAG475 / HLAG47
Ticker Symbol	HLAG
Primary listing	6 November 2015
Number of shares	175,760,293

Bond trading

HL EUR 6.75 % 2022 HL EUR 5.125% 2024

	EUR Bond 2024	EUR Bond 2022
Listing	Open market of the Luxembourg Stock Exchange (Euro MTF)
Volume	EUR 450 m	EUR 450 m
ISIN / WKN	XS1645113322	XS1555576641 / A2E4V1
Maturity Date	Jul 15, 2024	Feb 1, 2022
Redemption Price	as of July 15, 2020:102.563%; as of July 15, 2021:101.281%; as of July 15, 2022:100%	as of Feb 1, 2019: 103.375%; as of Feb 1, 2020: 101.688%; as of Feb 1, 2021: 100%
Coupon	5.125%	6.75%

Financial Calendar 2019

25 February 2019 Preliminary Financials 2018

22 March 2019 Annual Report 2018

09 May 2019 Quarterly Financial Report Q1 2019

12 June 2019 Annual General Meeting 2019

07 August 2019 Half-year Financial Report 2019

14 November 2019 Quarterly Financial Report 9M 2019

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 uncertainties and contingencies that are subject to change. Actual results can differ materially from those anticipated in the Company's forward-looking statements as a result of a variety of factors, many of which are beyond the control of the Company, including those set forth from time to time in the Company's press releases and reports and those set forth from time to time in the Company's analyst calls and discussions. We do not assume any obligation to update the forward-looking statements contained in this presentation.

This presentation does not constitute an offer to sell or a solicitation or offer to buy any securities of the Company, and no part of this presentation shall form the basis of or may be relied upon in connection with any offer or commitment whatsoever. This presentation is being presented solely for your information and is subject to change without notice.

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Hapag-Lloyd Investor Relations Ballindamm 25 20095 Hamburg Tel: +49 (40) 3001-2896 ir@hlag.com https://www.hapag-lloyd.com/en/ir.html