Hapag-Lloyd AG

Investor Presentation • May 11, 2023

Investor Presentation Q1 2023 Results Hamburg, 11 May 2023

Opening Remarks

HIGHLIGHTS 1

• Demand for container transport remained on a low level in Q1 2023 as a result of inventory de-stocking
• 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

FINANCIAL PERFORMANCE 2

• Financial KPIs remained on an exceptional level in Q1 2023 despite challenging market environment
• Strong cash generation leading to a very healthy net cash position of USD 15.7 bn at the end of Q1 2023
• Balance sheet figures on exceptional level excess funds were used to pay EUR 11.1 bn dividends in May

MARKET UPDATE 3

• Demand likely to remain subdued until destocking cycle is completed
• Strong inflow of new capacity will be partly offset by increasing scrapping activities and slow steaming
• Nevertheless, supply will likely outpace demand in 2023 & 2024 making active cost management inevitable

WAY FORWARD 4

• Outlook 2023 confirmed: Earnings normalisation expected due to fundamentally different market conditions
• We will roll-out the remaining Simplify, Strengthen and Invest measures and ….
• … review and update our strategy to set course until 2030

Global demand weakness continued in Q1 2023

GLOBAL CONTAINER VOLUMES

SHANGHAI CONTAINERIZED FREIGHT INDEX

MARKET DEVELOPMENT

Global demand for container transport remained on a low level in Q1 2023 as a result of inventory de-stocking

Spot rates ex-China bottomed out at the end of Q1 2023 after reaching an unsustainable level

Port congestion has dissipated, and supply-chains are in the process of normalisation

Inflationary pressure keeps transport cost on elevated levels

1 Highlights

By meeting our quality goals, we were able to further improve customer satisfaction

Apr 2023 vs. 2019/2021

92% 63%

55% 74%

Timely and correct documentation Issuance of final bills of lading within 8 hours

100%	Booked and loaded as agreed
100%	Compliance with volume agreements

Swift issue resolution Processing of inquiries within 24 hours 97% 89%

Responsive service Answered calls within 12 seconds

Reliable transport On-time arrival

QUALITY PROMISES RECOMMENDATION RATE – NPS (Net Promoter Score)

Increase to highest level since survey began in 2018

NET PROMOTER SCORE

Preliminary results of the most recent customer survey indicate a further improvement to >40.

We are investing to maintain a competitive fleet and further digitise our business

NEWBUILDINGS

High Reefer 10 x 13k TEU

delivery 07/22 – 09/24

Dual-Fuel LNG

12 x 23,5 + k TEU

delivery 06/23 – 04/25

FLEET UPGRADE PROGRAM

6 – 7% Fuel savings

70 – 100 TTEU Capacity increase

USD 750 m Σ Investments in 2022 - 2027

CONTAINER TRACKING

Equipment of all containers with tracking devices by the end of 2024

DIGITALISATION

More than 20 digital products available online

Renewal and expansion of Hapag-Lloyd IT infrastructure worldwide

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 a targeted manner

Book Online

• Easy activation via the standardised online booking process
• Global availability without restriction on the respective route and region

Full transparency

• Ship Green Tool provides full transparency on emissions avoided
• Level of emissions avoidance is independently certified through Ship Green Declaration

Improving access to key locations and build a robust terminal portfolio

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 capabilities

Closing on Jan 12, 2023

▪ J M BAXI PORTS & LOGISTICS

▪ Acquisition of 40% share offers a better access to the fastgrowing Indian market

▪ Signing on Jan 25, 2023 & Closing on Apr 19, 2023

SAAM PORTS & LOGISTICS

Takeover reinforces our competitiveness within the Latin American market

Closing expected in Q3 2023

Financial KPIs were still on an exceptional level in Q1 2023 despite challenging market environment

Transport volume 2.8 MTEU PY: 3.0 MTEU

Revenue EBITDA

USD 6.0 bn PY: USD 9.0 bn

USD 2.4 bn PY: USD 5.3 bn

Free Cash Flow

USD 3.5 bn PY: USD 4.6 bn

8

Net Liquidity

USD 15.7 bn FY 2022: USD 13.4 bn

Equity USD 31.8 bn FY 2022: USD 29.8

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]

9

EBIT [USD m] GROUP PROFIT [USD m]

Note: Figures as stated in the Investor Report Q1 2023. Rounding differences may occur.

Transport volumes declined by 4.9% due to weaker global demand for container transport

TRANSPORT VOLUME DEVELOPMENT BY TRADE [TTEU]

COMMENTS

• The Atlantic trade saw robust demand mainly from industrial costumers and benefitted from the gradual easing of port congestion
• Transport volumes in the Africa trade were up mainly due to the acquisition of the container liner business of Deutsche Afrika-Linien (DAL) in Q2 2022
• All other trades were affected by destocking and weaker global demand, which overcompensated the volume increase in the Atlantic and Africa trades

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]

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

• Bunker" expenses increased by 7.5% because of higher bunker prices.
• "Equipment and Repositioning" expenses increased by 14.8% due to higher expenses for repositioning of empty containers.
• "Vessel and voyage" expenses increased by 5.4% as lower container slot rentals on third-party vessels were more than compensated by higher port and canal costs.
• In total, unit cost in Q1 2023 were up 3.2% or 43 USD/TEU as compared to Q1 2022.
• In comparison to Q4 2022, unit cost started to decline due to lower congestion related charges, bunker prices and our cost control measures.

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]

Balance sheet figures on exceptional level – Excess funds were used to distribute EUR 11.1 bn dividends in May

14

LIQUIDITY RESERVE [USD m]¹

¹ From the first quarter 2023, the liquidity reserve includes money market transactions and funds which are recognised under other financial assets. Prior year figures adjusted accordingly.

EQUITY [USD m] NET LIQUIDITY [USD m]

COMMENTS

• Equity and liquidity increased further due to high profitability level
• Money market transactions & funds recognised under other financial assets amounted to USD 2.0 bn
• Following the AGM approval on 3 May 2023, we used excess funds for a dividend distribution to our shareholders in the amount of EUR 11.1 bn

3 Market Update

Orderbook remains on high level – Most new vessels to be delivered in 2023 and 2024

GLOBAL ORDERBOOK

SCHEDULED VESSEL DELIVERIES

15

2021 2022 2023

1) As at 24 April 2023, ships in drydock data only available since 2021

3 Market Update

16

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 completed

Strong inflow of new capacity expected

Scrapping, slippage and slow steaming will offset strong newbuild supply partly

Supply will likely outpace demand in 2023 & 2024 making an active cost management inevitable

Outlook confirmed: Gradual normalisation Outlook of earnings expected in the course of 2023

	FY 2022	Outlook 2023
Transport volume	11,843 TTEU	Increasing slightly
Bunker con sumption price	753 USD/mt	Decreasing clearly
Freight rate	2,863 USD/TEU	Decreasing clearly
EBITDA	20,474 USD m	USD 4.3 – 6.5 bn EUR 4.0 – 6.0 bn
EBIT	18,467 USD m	USD 2.1 – 4.3 bn EUR 2.0 – 4.0 bn

Note: Our earnings perspective is based on the assumption of an average exchange rate of USD 1.08 USD / EUR.

Priorities for 2023

Focus on service quality and customer satisfaction

Continue with a prudent financial policy

Adapt to evolving market conditions

Maintain a competitive cost base

Work further on building our terminal portfolio Investments in our teams

Strengthen sustainability and decarbonisation efforts Development of a new medium-term strategy

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

million USD	31.3.2023	31.12.2022
Assets
Non-current assets	18,256.2	18,034.8
of which fixed assets	18,105.2	17,876.5
Current assets	24,730.4	23,263.7
of which cash and cash equivalents	19,231.0	16,264.5
Total assets	42,986.6	41,298.5
Equity and liabilities
Equity	31,820.5	29,795.1
Borrowed capital	11,166.1	11,503.4
of which non-current liabilities	4,427.9	4,674.6
of which current liabilities	6,738.2	6,828.7
of which financial debt and lease liabilities	5,571.7	5,803.8
of which non-current financial debt and lease
liabilities	4,057.6	4,317.9
of which current financial debt and lease liabilities	1,514.1	1,485.9
Total equity and liabilities	42,986.6	41,298.5

BALANCE SHEET [USD M] FINANCIAL POSITION [USD M]

million USD	31.3.2023	31.12.2022
Financial debt and lease liabilities	5,571.7	5,803.8
Cash and cash equivalents	19,231.0	16,264.5
Money market transactions & funds (other assets)	2,024.0	2,976.0
Net liquidity	15,683.3	13,436.7
Unused credit lines	725.0	725.0
Liquidity reserve¹	21,980.0	19,965.5
Equity	31,820.5	29,795.1
Assets	42,986.6	41,298.5
Equity ratio (%)	74.0	72.1

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	–24.6%	9.9%
Depreciation, amortisation and impairment	–504.7	–500.4	–516.0	0.9%	–2.2%
Other operating result	–147.6	–137.5	–113.3	7.4%	30.2%
Operating result	1,857.3	3,315.8	4,778.0	–44.0%	–61.1%
Share of profit of equity-accounted investees	16.7	8.5	12.9	96.0%	29.6%
Result from investments	–0.0	–0.1	0.0	n.m.	n.m.
Earnings before interest and tax (EBIT)	1,874.0	3,324.1	4,790.9	–43.6%	–60.9%
Interest result	162.8	105.3	–53.9	54.5%	–402.2%
Other financial items	62.5	–5.4	–34.8	n.m.	n.m.
Income taxes	–68.3	–129.4	–18.7	–47.2%	265.7%
Group profit / loss	2,031.0	3,294.7	4,683.5	–38.4%	–56.6%

Well balanced maturity structure of financial liabilities

FINANCIAL DEBT PROFILE AS PER 31 MARCH 20231), [USD M]

Note: Rounding differences may occur

23

A Appendix

Share price development

Bond trading

	EUR Bond 2028	108
Listing	Open market of the Luxembourg Stock Exchange (Euro MTF)	105 102
Volume	EUR 300 m	99
ISIN / WKN	XS2326548562	96
Maturity Date	April 15, 2028	93 92.2 90
Redemption Price	as of 15 April 2024: 101.375% as of 15 April 2025: 100.688% as of 15 April 2026: 100%	87 HL EUR 2.500% 2028
Coupon	2.500%	84 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23

Our shareholder base is long-term oriented

• Kühne Maritime GmbH / Kühne Holding AG
• CSAV Germany Container Holding GmbH
• HGV Hamburger Gesellschaft für Vermögens- und Beteiligungsmanagement mbH

Qatar Holding Germany GmbH

Free Float The Public Investment Fund on behalf of the Kingdom of Saudi Arabia

• Kühne: majority owner of Kühne + Nagel, shareholder since 2009
• CSAV: Chilean stock listed company, majority owned by Luksic Group, shareholder since merger with CSAV in 2014
• HGV Hamburg: City of Hamburg, shareholder since 2009
• Kühne, CSAV and HGV agreed to uniformly exercise their voting rights
• Sovereign wealth funds of Qatar and Saudi Arabia became shareholders after the merger with UASC in 2017

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

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.

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