Hapag-Lloyd AG — Investor Presentation 2016

May 13, 2016

Investor Presentation – 1st Quarter Results 2016

Disclaimer

2

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.

Opening remarks

1) Subject to a mutually satisfactory completion of the negotiations and the mutual due diligence exercise

Our deliverables
Our industry	Financial highlights:
Our position
Our track record		and remained profitable despite record low rates
Our objectives
	Transport volume	Freight rate	Transport expenses
	+2.1%	-19.8%	-17.0%
	Q1 2016: 1.8 TEU m	Q1 2016: 1,067 USD/TEU	Q1 2016: 970 USD/TEU
	EBITDA	EBIT	Group profit / loss
	USD 136 m	USD 5 m	USD -47 m
	6.4% EBITDA margin	Break-even EBIT	In line with Q4 2015
	Equity	Liquidity reserve	Financial debt
	USD 5.4 bn	USD 904 m	USD 4.2 bn
	Solid equity base	Adequate liquidity	Reduced debt

	Our deliverables
	Our industry
	Our position
	Our track record
	Our objectives

Initial signs of an uptick – freight rates increased, volume rose by 2.8% as compared to prior year Difficult market – Freight rates are on record low levels and carrier results remain under pressure

Global volumes pick up slightly in Q1…

…while freight rates remain on record lows

Q4 results were already under pressure…

…and Q1 2016 results continue to be

Note: Company reporting. EBIT margin as stated, otherwise calculated 1) Group EBIT margin

	Our deliverables
	Our industry
	Our position
	Our track record
	Our objectives

Capacity measures are being taken esp. Asia-Europe & Asia-Latin America – Yet, potentially more to come

Asia – ECSA1) [annualized capacity] Europe – ECSA1) [annualized capacity]

7 Source: Alphaliner, Drewry

There are some signs to expect a sequential recovery over the coming months of 2016

Orders for newbuilds normalized… Q1 2016 19% 3.9 2015 19% 4.1 2014 16% 3.2 2013 20% 3.6 2012 21% 3.6 2011 26% 4.3 2010 26% 4.0 2009 35% 5.0 2008 47% 6.4 2007 56% 6.8 …no vessel orders reported in 2016 so far… TEU m Share of world fleet

…and ship deliveries in Q1 slowed down

Idle capacity at record highs…

	Our deliverables
	Our industry
	Our position
	Our track record
	Our objectives

Going forward the industry is changing – Alliances are being reshaped and leading players are consolidating

The industry is changing

9 1) Subject to a successful closure of the transaction between Hapag-Lloyd and UASC, as well as regulatory approvals, the UASC tonnage is anticipated to become part of THE Alliance

Source: MDS Transmodal April 2016, Hapag-Lloyd data, only vessels >399TEU ¹

Our deliverables
Our industry
Our position
Our track record
Our objectives

Hapag-Lloyd will be a leading partner in a strong and integrated alliance to start in April 2017

• THE Alliance covers all East-West trades
• Atlantic, Transpacific and Far East including
• Asia-Middle East / Persian Gulf and Red Sea
• Binding agreement signed by all six partners
• Begin of operation in April 20172)
• The initial period will be 5 years
• Combined capacity of 3.5 m TEU or 18% of world fleet vessel pool taken from a total of 650 ships
• In case of successful merger talks between Hapag-Lloyd and UASC, the overall nominal capacity would increase to approx. 4 m TEU
• Leading product characterized by fast transit times, broad port coverage and the latest vessels

Six leading players create THE Alliance Competitive position on East-West trades1)

¹⁾ Subject to a successful closure of the transaction between Hapag-Lloyd and UASC, as well as regulatory approvals, the UASC tonnage is anticipated to become part of THE Alliance 2) Subject to approval of all relevant authorities

Forms of cooperation being discussed / No binding results yet

• Hapag-Lloyd AG (HL) and United Arab Shipping Company SAG (UASC) are currently discussing forms of cooperation including a potential combination of their mutual container shipping operations
• In case of a business combination, the parties are basing their discussions on a relative valuation of the two businesses at 72% (HL) and 28% (UASC), subject to a mutually satisfactory completion of the negotiations and the mutual due diligence exercise
• To date, the discussions conducted between the two carriers have not resulted in any binding agreement and no assurance can be given that these discussions will lead to a definitive agreement

Should any relevant development occur, more information will be published

Our fleet remains competitive – We will not invest further at this time

	Vessel fleet as of 31 March 2016
Owned1) Chartered4) Current Current Fleet age [% of total capacity] fleet orderbook
	Capacity [TEU]	131,674		131,674	52,945		Average age 8.1 years5)
>10,000 TEU	Vessels	10		10	5	MODERN
	Capacity [TEU]	243,614	76,602	320,216		42% 45%	57%
8,000 – 10,000 TEU	Vessels	28	9	37			55%	1%
	Capacity [TEU]	49,743	44,913	94,656		≤10 years	10-20 years	>20 years
6,000 – 8,000 TEU	Vessels	7	7	14			Fleet ownership [%]
	Capacity [TEU]	68,154	202,440	270,594		Owned 55%		Chartered 45%
4,000 – 6,000 TEU	Vessels	15	43	58			Average vessel size [TEU]
	Capacity [TEU]	30,292	75,314	105,606
2,300 – 4,000 TEU	Vessels	10	25	35		+377		+2,162
						5,460	5,083	3,298
<2,300 TEU	Capacity [TEU] Vessels	3,918 2	28,821 19	32,739 21		HL	Top 20	World Fleet
Total	Capacity [TEU]	527,3952)	3) 428,090	955,485	52,945		Total container fleet

1) Incl. 3 long-term finance leases 2) Incl. 3 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 6) 2x 3,508 TEU vessels built 2015 acquired by HLAG from NileDutch in February / April 2016

12 Source: MDS Transmodal January 2016

Our deliverables
Our industry
Our position
Our track record	OCTAVE 2 project gained further traction in Q1 2016
Our objectives

OCTAVE project

Existing OCTAVE initiatives

		G6 Enhancement – create integrated alliance
s e v ati ti	Procure ment	– reduction of expenses Procurement
		Transshipment – optimize shipment flows	Further cost savings and efficiency
ni i E V A T C	Fleet & Network	Ship Size – increase operational intake	improvements:
		Stowage – optimize stowage process	High double-digit USD million figure by 2017
O w e		– reduce complexity Service Portfolio
N	Sales &	– optimize space usage Weight Utilization
	Product	– increase collection Demurrage / Detention

Our deliverables
Our industry
Our position
Our track record
Our objectives

Improved sales organization and better sales processes with significant potential to improve revenues

COMPETE TO WIN Project

We achieved a break-even EBIT despite record low freight rates

Operational KPIs
Q1 2016 Q4 2015 QoQ ∆/% YoY ∆/% Q1 2015
Transport volume [TTEU]	1,811	1,822	-11 / -0.6%	1,774	+37 / +2.1%
Freight rate [USD/TEU]	1,067	1,116	-49 / -4.4%	1,331	-264 / -19.8%
Bunker price [USD/t]	178	245	-67 / -27.3%	378	-200 / -52.9%
Exchange rate [EUR/USD]	1.10	1.09	+0.01 / +0.7%	1.13	-0.03 / -2.1%
Revenue [USD m]	2,124	2,225	-101 / -4.5%	2,593	-469 / -18.1%
EBITDA [USD m]	136	152	-16 / -10.5%	319	-183 / -57.4%
EBIT [USD m]	5	18	-13 / -70.6%	196	-191 / -97.3%
EAT [USD m]	-47	-52	+5 / +10.1%	144	-191 / n.m.
Investments [USD m]1)	105	46	+59 / +129.9%	319	-214 / -67.2%

1) Balance sheet investments in PPE

Transport volume increased by 2.1% while freight rates decreased 19.8%

Transport volume [TTEU]

Freight rate [USD/TEU]

FX-rate (USD/EUR)

Bunker price [USD/mt]

Due to active yield management, we decreased our volumes on selected trades (FE and LA)

Transport volume [TTEU]

1) HLAG + CCS as of 2 December 2014

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, 2014 excl. CCS (1M) 3) HLAG + CCS as of 2 December 2014

Transport expenses per TEU [USD/TEU]

¹⁾ Cost of purchased services Q1 2015: 992 USD/TEU

Adequate liquidity reserve [USD m] Solid shareholder base

Positive free cash flow of USD 37 m in Q1 2016 – Net repayment in financial debt of USD 93 m

Cash flow Q1 2016 [USD m]

Our deliverables
Our industry	Hapag-Lloyd stock in SDAX since March 2016 –
Our position
Our track record	Next change of redemption prices in October 2016
Our objectives

Share trading Bonds trading 60 80 100 120 6-Nov 6-Dec 6-Jan 6-Feb 6-Mar 6-Apr 6-May Hapag-Lloyd Maersk Evergreen NOL OOCL SDAX DAX Global Shipping

	EUR Bond 2019	EUR Bond 2018	USD Bond 2017
Listing	Open market of the Luxembourg Stock Exchange (Euro MTF)
Volume	EUR 250 m	EUR 400 m	USD 125 m1)
ISIN / WKN	XS1144214993 / A13SNX	XS0974356262 / A1X3QY	USD33048AA36 / A1E8QB
Maturity date	Oct 15, 2019	Oct 1, 2018	Oct 15, 2017
Redemption price	as of Oct 15, 2016:103.750% as of Oct 15, 2017:101.875% as of Oct 15, 2018:100%	as of Oct 1, 2015:103.875% as of Oct 1, 2016:101.938% as of Oct 1, 2017:100%	as of Oct 15,2015:102.4375% as of Oct 15, 2016:100%
Coupon	7.50%	7.75%	9.75%

Stock exchange Market segment / Index ISIN / WKN / Ticker Symbol Primary listing Number of shares Lock-up Frankfurt Stock Exchange / Hamburg Stock Exchange Regulated market (Prime Standard) / SDAX DE000HLAG475 / HLAG47 / HLAG 6 November 2015 118,110,917 4 May 2016

1) Partially redeemed by nominal USD 125 m on 30 Dec 2015

22 Source: Bloomberg (12 May 2016); Citi (11 May 2016)

We expect a moderate increase in EBITDA for 2016 with focus in the second half of this year

	Hapag-Lloyd guidance for FY 2016	Market forecasts for FY 2016
Transport volume	Increasing slightly	Global economic growth	+3.2%
Bunker consumption price	Clearly decreasing	Increase in global trade Increase in global container transport volume		+3.1% +3.0%
Freight rate	Clearly decreasing		Hapag-Lloyd sensitivities for Q2-Q4 2016
EBITDA	Increasing moderately	Transport volume Freight rate	+/- 100 TTEU +/- 50 USD/TEU	+/- USD <0.1 bn +/- USD ~0.3 bn
		Bunker price	+/- 100 USD/t	-/+ USD <0.3 bn
EBIT	Clearly increasing	EUR / USD	+/- 0.1 EUR/USD	-/+ USD <0.1 bn

Closing remarks

Current spot rates reflect recent freight rate increases by various carriers

Shanghai – Latin America (SCFI)

Comments

• Shanghai Containerized Freight Index (SCFI) only reflects Shanghai outbound rate development
• Freight rates especially on Asia / Europe trade remain volatile
• Freight rates on Transpacific trade tend to be less volatile while freight rates on Latin America show a downward trend
• Hapag-Lloyd freight rates with more stable development

* Hapag-Lloyd trade definition

Our Way Forward – Further improvements expected from our existing initiatives

Well-balanced exposure to global trade with strong position in attractive markets and niche businesses

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

Source: IHS Global Insight April 2016; Hapag-Lloyd FY 2015; market data adapted to Hapag-Lloyd trade lane definition

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Bunker price [Rotterdam; USD/mt]

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

Bunker mix [MFO; MDO]

Bunker expenses6) [USD/TEU; USD m]

1) Average nominal deployed capacity in TEU 2) HLAG excluding CCS 3) Including technical effect due to initial addition of CSAV fleet at the beginning of 2015 4) HLAG + CCS as of 2nd December 2014 5) Due to CCS integration slight categorization differences may occur 6) Expenses for raw materials and supplies

32 Source: Bloomberg (12 May 2016) 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)

	Income statement [USD m]		Transport expenses [USD m]
	Q1 2016	Q1 2015	% change
Revenue	2,124.0	2,593.1	-18%	Expenses for raw materials
Other operating income	24.8	112.1	-78%	and supplies Cost of purchased services	1,601.3	1,759.5
Transport expenses	-1,756.0	-2,071.8	-15%	Thereof Port, canal and terminal costs	757.9	767.6
Personnel expenses	-156.3	-134.3	16%	Chartering, leases and
Depreciation, amorti zation and impairment	-130.8	-123.1	6%	container rentals Container transport costs	507.5	648.1
Other operating expenses	-106.8	-184.5	-42%	Maintenance/repair/other Transport expenses	64.1 1,756.0	50.1 2,071.8
Operating result	-1.1	191.5	n.m	Transport expenses per TEU [USD/TEU]
Share of profit of equi ty-acc. investees	6.4	9.2	-31%	Expenses for raw materials and supplies
Other financial result	0.0	-4.4	n.m.	Cost of purchased services	884.2	992.0
Earnings before interest and tax (EBIT)	5.3	196.3	-97%	Thereof Port, canal and terminal costs Chartering, leases and	418.5	432.7
Interest result	-47.5	-43.1	10%	container rentals
Income taxes	-5.0	-8.8	-43%	Container transport costs Maintenance/repair/other	280.2 35.4	365.3 28.2
Group profit/loss	-47.2	144.4	n.m.	Transport expenses	969.6	1,168.1

	Q1 2016	Q1 2015	% change
Expenses for raw materials and supplies	154.7	312.3	-50%
Cost of purchased services	1,601.3	1,759.5	-9%
Thereof
Port, canal and terminal costs	757.9	767.6	-1%
Chartering, leases and container rentals	271.8	293.7	-7%
Container transport costs	507.5	648.1	-22%
Maintenance/repair/other	64.1	50.1	28%
Transport expenses	1,756.0	2,071.8	-15%

Transport expenses per TEU [USD/TEU]

Transport expenses	969.6	1,168.1	-17%
Maintenance/repair/other	35.4	28.2	25%
Container transport costs	280.2	365.3	-23%
Chartering, leases and container rentals	150.1	165.6	-9%
Port, canal and terminal costs	418.5	432.7	-3%
Thereof
Cost of purchased services	884.2	992.0	-11%
Expenses for raw materials and supplies	85.4	176.1	-51%

	31.03.2016	31.12.2015	31.03.2015
Assets
Non-current assets	10,371.2	10,363.7	10,262.2
Of which fixed assets	10,299.4	10,301.7	10,170.3
Current assets	1,605.2	1,704.8	2,014.3
Of which cash and cash equivalents	518.8	625.0	832.4
Total assets	11,976.4	12,068.5	12,276.5
Equity and liabilities
Equity	5,423.9	5,496.8	5,136.0
Borrowed capital	6,552.5	6,571.7	7,140.5
Of which non-current liabilities	3,903.8	3,958.4	4,424.4
Of which current liabilities	2,648.7	2,613.3	2,716.1
Of which financial debt	4,207.0	4,256.3	4,430.1
thereof
Non-current financial debt	3,497.7	3,591.7	3,900.4
Current financial debt	709.3	664.6	529.7
Total equity and liabilities	11,976.4	12,068.5	12,276.5

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

	31.03.2016	31.12.2015	31.03.2015
Cash and cash equivalents	518.8.	625.0.	832.4.
Financial debt	4,207.0	4,256.3	4,430.1
Net debt	3,688.2	3,631.3	3,597.7
Unused credit lines	385.0	423.4	265.1
Liquidity reserve	903.8	1,048.4	1,097.5
Equity	5,423.9	5,496.8	5,136.0
Gearing (net debt/equity) (%)	68.0%	66.1%	70.0%
Equity ratio (%)	45.3%	45.5%	41.8%

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Senior Director Investor Relations

Tel +49 40 3001-2896

Fax +49 40 3001-72896

Henrik.Schilling@hlag.com

http://ir.hapag-lloyd.com/websites/hapaglloyd/English/0/ir-home.html