Hapag-Lloyd AG

Earnings Release • Nov 11, 2015

Investor Presentation – 9M Results 2015

1 11 November 2015

Material progress made in Q3

STRATEGIC HIGHLIGHTS 9M 2015

• CUATRO: The integration is completed substantial portion of synergies already realized in 9M 2015
• HL targets net synergies of USD 400 m (run-rate)
• OCTAVE: The additional cost saving program OCTAVE is on track and made noticeable contribution
• Additional improvement potential currently being defined (OCTAVE 2 launched in Q4)
• IPO: In a challenging stock market environment, Hapag-Lloyd completed its IPO

• USD 300 m primary proceeds for investments to increase fleet efficiency and container ownership

• HL significantly increased its EBITDA to USD 770 m (margin: 10.1%) in 9M 2015.

• EBIT reached USD 389 m (margin: 5.1%)
• Substantial cost synergies due to the CCS1) integration, the OCTAVE program and lower bunker costs offset weaker freight rates
• Driven by increased scale, the transport expenses per TEU decreased by 240 USD/TEU to USD 1,111/TEU (-17.8%)
• Our focus remains to further improve profitability in the years to come: target

Agenda

A. Industry – Our Positioning

• B. Strategy Our "Way Forward"
• C. Financials Strong Earnings Growth

Industry highly correlated with global growth Short term outlook on the lower end of mid term 3-5% range

5 Source: IMF October 2015, IHS Global Insight October 2015

Freight rates on an all time low in October 2015 Rates must go up, but volatility will remain in the short-term

Shanghai – Latin America (SCFI)

Comments

• Shanghai Containerized Freight Index (SCFI) only reflects Shanghai outbound rate development
• Freight rates on Asia / Europe trade remain volatile
• Freight rates on Transpacific trade tend to be somehow less volatile

Hapag-Lloyd´s balanced exposure to global trade puts us in a strong position to be successful under tough market conditions

					Vessel fleet structure as of 30 September 2015
		Owned1)	Chartered4)	Current fleet	Current orderbook		Fleet age [% of total capacity]
	Capacity [TEU]	131,674		131,674	52,945		Average age 7.2 years5)
>10,000 TEU	Vessels	10		10	5	MODERN
	Capacity [TEU]	243,614	68,036	311,650		74%	45% 26% 55%	0%
8,000 – 10,000 TEU	Vessels	28	8	36
	Capacity [TEU]	49,743	38,905	88,648		≤10 years	10-20 years	>20 years
6,000 – 8,000 TEU	Vessels	7	6	13			Fleet ownership [%]
	Capacity [TEU]	68,154	209,094	277,248		Owned 55%		Chartered 45%
4,000 – 6,000 TEU	Vessels	15	44	59			Average vessel size [TEU]
	Capacity [TEU]	26,784	76,141	102,925			+450	+2,161
2,300 – 4,000 TEU	Vessels	9	26	35		5,406	4,956
	Capacity [TEU]	3,918	29,952	33,870				3,245
<2,300 TEU	Vessels	2	20	22		HL	Top 20	World Fleet
	Capacity [TEU]	523,8872)	3) 422,128	946,015	52,945		Total container fleet
Total	Vessels	712)	1043)	175	5	1.6m TEU	Owned 40%	Leased 60%

1) Incl. 3 long-term finance leases 2) Incl. 2 chartered -out 3) Incl. 1 chartered-out 4) includes long-term (>3 years), mid-term (1-3 years) and short-term (<1 year) charters 5) Weighted average age by capacity

8 Source: Company Information, MDS Transmodal October 2015

Agenda

• A. Industry Our Positioning
• B. Strategy – Our "Way Forward"
• C. Financials Strong Earnings Growth

We have defined our ´way forward´ – Five key initiatives delivering significant contributions with further upside

Significantly grow the business and increase profitability

Project CUATRO: Integration completed USD400m net synergies will be achieved in 2016

• Canadian container shipping company with global network
• 38 services worldwide

• Targeted net synergies of EUR218m in 2008

• Chilean container shipping company in Valparaíso

• 39 services worldwide
• Targeted net synergies of USD400m in 2017

Transfer of operating business completed

USD400m net synergies targeted

Project OCTAVE: USD200m cost improvements across all operation areas; Project OCTAVE 2 launched

Eight clear workstreams defined

Procurement &	Inland Pricing & Steering
Inland	Bunker Procurement
Fleet & Network	Fleet Renewal
	Fleet Refurbishment
	Service Structure
Sales &	Utilisation
Product	Special Cargo
Portfolio	Spot Market

USD200m cost improvements

OCTAVE 2 program launched in Q4

Improvement potential identified in 8 additional	Transshipment Weight & Utilization Service Portfolio G6 Enhancements Procurement
work streams	Stowage
	Ship Size
	Demurrage & Detention

Retiring of "Old Ladies" successfully completed

Decommission	Jan	Feb	Mar	Apr	May	Jun	Jul
Bonn Express
Paris Express
Hoechst Express
Atlanta Express
Kiel Express
Boston Express
Dresden Express
Portland Express
Livorno Express
Norfolk Express
Stuttgart Express
Sydney Express
Wellington Express
Canberra Express
Heidelberg Express
Fremantle Express

Close the Cost Gap: Investments done throughout the cycle – Further investments to come

Use of IPO proceeds

Compete to Win: Significant potential to further optimize customer profiles and cargo mix

Improve cargo mix (exemplary)

Pilots well underway and implementation starting 2015 Sales Process Sales Organisation Development Development Solution development Pilot in Asia, North America, Europe DD in Europe, Asia, North America Global Roll-out of Sales Process and Sales Organisation Talent Development Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 2015 2016 Incentive Scheme Roll-out Preparation

Development Pilots and Deep Dives (DD) Global Roll-out

Agenda

• A. Industry Our Positioning
• B. Strategy Our "Way Forward"
• C. Financials – Strong Earnings Growth

Hapag-Lloyd significantly increased its EBITDA to USD 770 m (EBITDA margin: 10.1%) in the first nine months of 2015

Operational KPIs1)
	Q3 2015	Q3 2014	∆ / %	9M 2015	9M 2014	∆ / %
Transport volume [TTEU]	1,861	1,474	26.3%	5,579	4,347	28.3%
Freight rate [USD/TEU]	1,189	1,448	(-17.9)%	1,260	1,432	(-12.0)%
Bunker price [USD/t]	306	585	(-47.7)%	333	591	(-43.7)%
Exchange rate [EUR/USD]	1.11	1.32	(-17.6)%	1.12	1.36	(-17.6)%
Revenue [USD m]	2,376	2,229	6.6%	7,589	6,634	14.4%
EBITDA [USD m]	219	150	46.0%	770	242	218.2%
EBIT [USD m]	90	34	164.7%	389	-106	n.a.
EAT [USD m]	3	-66	n.a.	179	-304	n.a.
Investments [USD m]2)	289	41	600.0%	791	343	130.6%

Comments

■ 2015 first fiscal year with full reflection of CSAV transaction

Revenue

■ Transport volume increase and lower freight rate influenced by the CCS integration

Opex

• Substantially lower bunker price contributing to improvement
• Furthermore, substantial decrease in costs on the back of first achievements from strategic initiatives (CUATRO and OCTAVE)
• Advantageous change in EUR / USD exchange rate with positive impact

EBITDA

■ Step-change in 9M 2015 due to significant cost savings

1) Q3/9M 2015 relates to Hapag-Lloyd incl. CCS activities; Q3/9M 2014 relates to Hapag-Lloyd only 2) Balance sheet investments in PPE

1) Europe, Mediterranean, Africa, Oceania

Freight rate1) [USD/TEU] vs. bunker price2) [USD/t]

1) Hapag-Lloyd average freight rate per year 2) Hapag-Lloyd average consumption price per year for MFO fuel

Significant improvement of cost structure already achieved with still more ahead

1) Cost of purchased services 9M 2014: 1,033 USD/TEU

Benefits from a reduced bunker price and consumption – Change in bunker mix due to emission control areas

Bunker price [Rotterdam; USD/mt]

Bunker consumption [mt/slot; mt/TEU; k mt]

Bunker mix [MFO; MDO]

Bunker expenses4) [USD/TEU; USD m]

20 1) Average nominal deployed capacity in TEU 2) Hapag-Lloyd excl. CCS 3) Due to ongoing integration slight categorization differences may occur 4) Expenses for raw materials and supplies 5) FY 2014: USD 1,810 m / 5,907 TTEU = 307 USD/TEU; 9M 2014: USD 1,383 m / 4,347 TTEU = 318 USD/TEU Source: Company information; Bloomberg (21 August 2015)

Note: Hapag-Lloyd reports in EUR. EBIT for peer converted based on the respective average exchange rate for H1 2014, 9m 2014, H1 2015 and 9m 2015 1) Includes terminals and other businesses 2) H1 2014PF and 9m 2014PF including CSAV

Source: Hapag-Lloyd, company reports

21

Optimisation of financial structure with further tangible savings

■ Secured long-term financing: Five 10,500 TEU vessels financed at attractive conditions 3

Reduced interest by USD40m (over remaining life)

Rating upside

• Improved and positive outlook by Moody's (29 Sep 2015)
• 1. Sustainable improvement of financial performance
• 1. Significantly reduced bunker price (c. 50% decline)
• 1. Fundamental improvement in operating performance from ongoing implementation of synergy programs

Positive outlook on the back of the IPO

1) Gearing defined as net debt / equity 2) Revolving credit facility signed on 14 October 2015 3) Includes senior revolving credit facility increased from USD95m (31 August 2015) to USD200m on 1 October 2015 4) As % of total financial debt. Liquidity includes cash and unused credit lines

Hapag-Lloyd executed IPO in Q4 2015

Key terms	First day of trading
Hamburg Stock Exchange (Prime Standard)
foster financial flexibility and support growth
Subject to customary exceptions, no sales for a period of 180 days for the Company, existing shareholders, incl. the Selling Shareholder and Cornerstone Investors, each subject to certain exceptions

23 Source: Company Information

1) FX Rate 1.13 USD/EUR

Cash flow 9M 2015 [USD m]

1) Revolving credit facility signed on 14 October 2015

On the basis of 9M 2015, Hapag-Lloyd expects a significant improvement in profitability for the Full Year 2015

	Guidance for 2015	Comments
Transport volume	Largely unchanged	 Guidance for 2015 based on pro-forma inclusion of CCS for 2014 – therefore, one-off volume and rate effects not taken into account in the guidance
Freight rate	Clearly decreasing	• CCS transport volume in 2014 at 1,924 TTEU • CCS avg. freight rate 2014 at 1,174 USD/TEU  In the 2014 consolidated financial statements CCS only included from 2 Dec 2014 (i.e. one month)
EBITDA	Clearly increasing		Sensitivities for Q4 2015
		Transport volume	+/- 50 TTEU	+/- USD ~0.04 bn
Operating result1)	Clearly positive	Freight rate	+/- 50 USD/TEU	+/- USD ~0.1 bn
Liquidity reserve	Remaining adequate	Bunker price	+/- 50 USD/t	-/+ USD ~0.04 bn
		EUR / USD	+/- 0.05 EUR/USD	-/+ USD <0.01 bn

1) EBIT adjusted

	9M 2015	9M 2014	∆
Transport volume [TTEU]	5,579	4,347	1,232
Freight rate [USD/TEU]	1,260	1,432	-172
Revenue	7,589.4	6,634.3	955.1
Other operating income	162.7	77.6	85.1
Transport expenses	6,199.6	5,873.9	325.7
Personnel expenses	401.6	353.3	48.3
Depreciation, amortisation and impairment of intangible assets and property, plant and equipment	381.4	347.7	33.7
Other operating expenses	401.0	278.3	122.7
Operating result	368.5	-141.3	509.8
Share of profit of equity-accounted investeees	25.1	36.0	-10.9
Other financial result	-4.9	-0.2	-4.7
Earnings before interest and tax (EBIT)	388.7	-105.5	494.2
Interest result	-188.5	-192.6	4.1
Earnings before income taxes	200.2	-298.1	498.3
Income taxes	-21.3	-5.5	-15.8
Group profit/loss	178.9	-303.6	482.5

Income statement Transport expenses

	9M 2015	9M 2014	∆
Transport expenses	6,199.6	5,873.9	325.7
Cost of raw materials, supplies and purchased goods	948.0	1,383.2	-435.2
Cost of purchased services	5,251.6	4,490.7	760.9
Thereof:
Port and terminal costs	2,371.5	1,983.6	387.9
Chartering, leases and container rentals	895.1	587.9	307.2
Container transport costs	1,852.5	1,795.2	57.3
Maintenance / repair / other	132.5	124.0	8.5

EBIT bridge

	9M 2015	9M 2014	∆
Earnings before interest and tax (EBIT)	388.7	-105.5	494.2
Purchase price allocation	-45.1	22.9	-68.0
Transaction and restructuring costs	0.0	27.6	-27.6
Underlying EBIT	343.6	-55.0	398.6

	30.09.2015	30.06.2015	∆		30.09.2015	30.06.2015	∆
Goodwill	1,672.1	1,672.1	0.0	Equity	5,240.6	5,234.3	6.3
Other intangible assets	1,520.9	1,549.4	-28.5
Property, plant and equipment	6,763.7	6,576.1	187.6	Provisions	712.8	774.1	-61.3
Investments in equity-accounted investees	424.3	413.8	10.5	Financial debt	4,362.0	4,420.2	-58.2
Inventories	139.2	174.7	-35.5
Trade acocunts receivables	745.8	787.4	-41.6	Derivative financial instruments	41.3	41.8	-0.5
Other assets	226.2	232.2	-6.0	Trade accounts payable	1,508.7	1,445.3	63.4
Derviative financial instruments	20.8	30.9	-10.1
Cash and cash equivalents	542.8	665.1	-122.3	Other liabilities	190.4	186.0	4.4
Assets	12,055.8	12,101.7	-45.9	Equity and liabilities	12,055.8	12,101.7	-45.9

Assets Equity and liabilities

30.09.2015	30.06.2015	∆		30.09.2015	30.06.2015	∆
			Equity ratio	43.5%	43.3%	+0.2 ppt
			Closing Rate USD/EUR	1.12	1.12	0.00

Solid long-term and diversified financing portfolio

	EUR Bond 2019	EUR Bond 2018	USD Bond 2017
Issuer	Hapag-Lloyd AG	Hapag-Lloyd AG	Hapag-Lloyd AG
Volume	EUR 250 m	EUR 400 m	USD 250 m
Minimum order	100,000 EUR	100,000 EUR	150,000 USD
Issue date	November 20, 2014	September 20, 2013	October 01, 2010
Maturity date	October 15, 2019	October 01, 2018	October 15, 2017
Redemption prices	as of Oct 15, 2016: 103.750% as of Oct 15, 2017: 101.875% as of Oct 15, 2018: 100%	as of Oct 01, 2015: 103.875% as of Oct 01, 2016: 101.938% as of Oct 01, 2017: 100%	as of Oct 15, 2015: 102.4375% as of Oct 15, 2016: 100%
Coupon	7.50%	7.75%	9.75%
Coupon payment	April 15 and October 15	January 15 and July 15	April 15 and October 15
ISIN	XS1144214993	XS0974356262	USD33048AA36
WKN	A13SNX	A1X3QY	A1E8QB
Listing	Open market of the LxSE	Open market of the LxSE	Open market of the LxSE
Trustee	Deutsche Trustee Company Limited	Deutsche Trustee Company Limited	Deutsche Bank AG, London Branch

Hapag-Lloyd bonds continuously trade above par

YTW Hapag-Lloyd bonds
	9.75% 2017	7.75% 2018	7.50% 2019
Current Yield	5.6%	4.3%	5.9%
Current Trading	103.8%	104.1%	104.1%

Imbalances: Hapag-Lloyd outperforms the market

1) This ratio reflects the imbalance in the market (industry average) vs. Hapag-Lloyd imbalance of transport volumes (the higher the ratio, the more balanced in both directions). Ratio has been rounded

32 Source: IHS Global Insight October 2015; Hapag-Lloyd FY 2014; market data adapted to Hapag-Lloyd trade lane definition Long-standing and diversified customer base of blue chip customers and a diversified base of goods transported

Hapag-Lloyd has a highly diversified customer base: No customer has a share greater than 5% of HL's revenue

Balanced portfolio of goods transported2)… … in a diversified customer portfolio3)

Henrik Schilling

34

Senior Director Investor Relations

Tel +49 40 3001-2896

Fax +49 40 3001-72896

Henrik.Schilling@hlag.com

http://www.hapag-lloyd.com/en/investor_relations/overview.html

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