Hapag-Lloyd AG

Investor Presentation • Mar 23, 2016

Investor Presentation – Full Year Results 2015

1 23-24 March 2016

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.

Opening remarks

Our deliverables
Our industry
Our position
Our track record
Our objectives

Tough market – Q4 results unsustainable Freight rates expected to recover in 2016

Hanjin -7.7%

Q4 2015

Q3 2015

3.8%

3.9%

-3.6%1)

0.8%

MOL

-5.4%

Q2 2015

CGM

Lloyd

1) Includes financial statements of Hapag-Lloyd, CMA CGM, Maersk, Hanjin, MOL, APL, NYK and K-Line

7 Source: Company information, Alphaliner, SSE

2013 2014 2015

M&A and new alliances create more stability, but it will take some time before things settle down

1) Pro-forma combined fleets assuming successful closing

8 Source: MDS Transmodal January 2016, Hapag-Lloyd data, only vessels >399TEU

Our deliverables
Our industry
Our position
Our track record	Supply demand gap expected to decrease in 2016
Our objectives

Our deliverables
Our industry
Our position
Our track record
Our objectives

Vessel sizes are reaching their economic maximum, which will help reduce the orderbook going forward

Declining benefits of ever larger vessels

Comments

• Economies of scale slow down with increasing vessel size
• 19,000 TEU ships still offer cost advantages compared to the first 15,000 TEU ships because of new vessel designs and operational concepts
• Approximately half of total savings are attributable to slow steaming
• The "true economies of scale" of ULC's are only revealed in a comparison with modern 14,000 TEU units
• The rapid technologic advance came from the increasing bunker price
• Container ship size close to maximum, as potential cost advantages by further increased sizes might be outpaced by increased handling costs

OECD study: Estimated total cost savings per TEU1)

Decreasing cost savings of bigger vessels1)2)

1) Based on bunker price of 350 USD/t aligned from liner assumption of 600 USD/t and on presumed round voyage of 21,000 nautical miles, comparing units of the latest 3 generations at 85% utilization 2) Starting point are 8,500 TEU vessels, build around 2003

10 Source: OECD study on the impact of mega ships, based on Dynamar 2015

	Our deliverables
	Our industry
	Our position
	Our track record
	Our objectives

Capacity measures being taken on multiple trades, as response to supply demand imbalances

Asia – North America [weekly capacity]

Asia – Latin America

Idle fleet soars to new record high

Our deliverables
Our industry
Our position
Our track record
Our objectives

Step-change in results underlines our improved competitiveness

Note: For selected peers including terminals and other business if no liner figure available

Our deliverables
Our industry
Our position
Our track record
Our objectives

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

	Vessel fleet as of 31 December 2015
		Owned1)	Chartered4)	Current fleet	Current orderbook			Fleet age [% of total capacity]
	Capacity [TEU]	131,674		131,674	52,945		Average age 7.1 years5)
>10,000 TEU	Vessels	10		10	5	MODERN
	Capacity [TEU]	243,614	85,416	329,030		66%	34% 45%	0%
8,000 – 10,000 TEU	Vessels	28	10	38			55%
	Capacity [TEU]	49,743	44,983	94,726		≤10 years	10-20 years	>20 years
6,000 – 8,000 TEU	Vessels	7	7	14			Fleet ownership [%]
	Capacity [TEU]	68,154	209,069	277,223		Owned 54%		Chartered 46%
4,000 – 6,000 TEU	Vessels	15	44	59			Average vessel size [TEU]
	Capacity [TEU]	26,784	74,418	101,202	7,0166)	+440		+2,177
2,300 – 4,000 TEU	Vessels	9	26	35	2	5,458	5,018
	Capacity [TEU]	3,918	28,343	32,261				3,281
<2,300 TEU	Vessels	2	19	21		HL	Top 20	World Fleet
	Capacity [TEU]	523,8872)	3) 442,229	966,116	59,961		Total container fleet
Total	Vessels	71	106	177	7	1.6m TEU	Owned 42%	Leased 58%

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

14 Source: MDS Transmodal January 2016

Our deliverables
Our industry
Our position
Our track record
Our objectives

Our Way Forward – Further improvements expected from our existing initiatives

Qualitatively enhanced growth Improved

profitability

Higher returns on capital

OCTAVE 2 as additional optimization project – Further efficiency improvements targeted

OCTAVE 2

G6	TRANS	STOWAGE	WEIGHT /
ENHANCEMENT	SHIPMENT		UTILIZATION
			
Explore potential further	Improvement of	Further improvement of	Improvement of
areas of cooperation	transshipment	stowage and increase of	utilization by increased
with partners	management	process efficiency	focus on lighter cargo
PROCURE	SHIP SIZE	SERVICE	DEMURRAGE &
MENT		PORTFOLIO	DETENTION
 Reduction of expenses in key categories, e.g. inland transport, terminal	 Increase of operational intake of existing vessel fleet	 Reduction of number of (smaller) services to reduce complexity and improve profitability	 Increase collection of Demurrage & Detention by aligning and improving schemes across the organization

Our deliverables Our industry Our position Our track record Our objectives

Hapag-Lloyd significantly increased its EBITDA to USD 922 m (margin: 9.4%) in full year 2015

Operational KPIs
	FY 2015	FY 2014	∆/%
Transport volume [TTEU]	7,401	5,907	+1,494 / +25.3%
Freight rate [USD/TEU]	1,225	1,427	-202 / -14.2%
Bunker price [USD/t]	312	575	-263 / -45.8%
Exchange rate [EUR/USD]	1.11	1.33	-0.22 / -16.5%
Revenue [USD m]	9,814	9,046	+768 / +8.5%
EBITDA [USD m]	922	131	+791 / +602%
EBIT [USD m]	407	-509	+916 / NA
EAT [USD m]	126	-802	+928 / NA
Investments [USD m]1)	836	439	+397 / +91%

Comments

■ 2015 with full reflection of CSAV transaction

Revenue

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

Results

• Step-change in FY 2015 due to significant synergies and cost savings from Project CUATRO & Project OCTAVE
• EBITDA margin at 9.4% for full year 2015
• EBIT margin at 4.1% for full year 2015

1) Balance sheet investments in PPE

Transport volume increase due to CSAV integration – Strong pressure on freight rates esp. in H2 2015 Our deliverables Our industry Our position Our track record Our objectives

Transport volume [TTEU]

Freight rate [USD/TEU]

FX-rate (USD/EUR)

Bunker price [USD/mt]

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

Transport expenses per TEU [USD/TEU]

1) Cost of purchased services 2014: 1,057 USD/TEU

Optimization of capital structure and financial position with further tangible savings in 2015

Enhanced equity base [USDm] Improved leverage position [USDm]

Strong liquidity reserve [USDm] Successful financial measures

¹ Debt repricing Reduced interest by USD 40 m (over remaining life) ² Bond optimization Saving of bond interest of USD 12 m p.a. ³ Rating upside Positive outlook on the back of the IPO

1) Gearing defined as net debt / equity

Cash flow 2015 [USD m]

1) Netted with dividends paid of USD 2.3 m and payments for capital increase of USD 5.6 m

Our deliverables
Our industry
Our position
Our track record	We expect a moderate increase in EBITDA for 2016
Our objectives

Hapag-Lloyd guidance for 2016			Market forecasts for 2016
Transport volume	Increasing slightly	Global economic growth		+3.4%
Bunker consumption price	Clearly decreasing	Increase in global trade Increase in global container transport volume		+3.4% +3.5%
Freight rate	Moderately decreasing		Hapag-Lloyd sensitivities for 2016
		Transport volume	+/- 100 TTEU	+/- USD <0.1 bn
EBITDA	Increasing moderately	Freight rate	+/- 50 USD/TEU	+/- USD ~0.4 bn
EBIT		Bunker price	+/- 100 USD/t	+/- USD ~0.3 bn
	Clearly increasing	EUR / USD	+/- 0.1 EUR/USD	+/- USD <0.1 bn

Our objectives
Our track record
Our position
Our industry
Our deliverables

Our objective is to assure our strong competitive position as one of the top players in the industry

To deliver on our objectives we need to remain focused

2016 PLAN	 Deliver the planned benefits of the existing programs
ALLIANCES	 Secure our position in a strong and integrated alliance
WAY FORWARD	 Shape Hapag-Lloyd for the future to assure Top 5 position
CONSOLIDATION	 Participate in industry consolidation only if right opportunity arises

Summary remarks

Q&A

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

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

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

Bunker price [Rotterdam; USD/mt]

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

Bunker expenses5) [USD/TEU; USD m]

1) Average nominal deployed capacity in TEU 2) HLAG excluding CCS 3) HLAG + CCS as of 2nd December 2014 4) Due to CCS integration slight categorization differences may occur 5) Expenses for raw materials and supplies

Bunker mix [MFO; MDO]

32 Source: Bloomberg (10 March 2016)

Income statement [USD m]			Transport expenses [USD m]
	FY 2015	FY 2014	% change
Revenue	9,814.4	9,045.8	8%	Expenses for raw materials
Other operating income	215.0	155.2	39%	and supplies Cost of purchased services	6,871.6	6,242.5
Transport expenses	-8,056.9	-8,052.6	0%	Thereof Port, canal and terminal costs	3,070.5	2,698.0
Personnel expenses	-537.8	-535.9	0%	Chartering, leases and
Deprecation, amorti zation and impairment	-515.7	-640.1	-19%	container rentals Container transport costs	2,384.7	2,446.9
Other operating expenses	-574.6	-522.7	10%	Maintenance/repair/other Transport expenses	173.7 8,056.9	176.1 8,052.6
Operating result	344.4	-550.3	-163%	Transport expenses per TEU [USD/TEU]
Share of profit of equi ty-acc. investees	31.6	45.4	-30%	Expenses for raw materials
Other financial result	30.7	-3.8	n.m.	and supplies
Earnings before	406.7	-508.7	n.m.	Cost of purchased services Thereof	928.5	1,056.8
interest and tax				Port, canal and terminal costs	414.9	456.7
(EBIT)				Chartering, leases and
Interest result	-252.3	-278.6	-9%	container rentals Container transport costs	322.2	414.2
Income taxes	28.0	14.9	88%	Maintenance/repair/other	23.5
Group profit/loss	126.4	-802.2	n.m.

	FY 2015	FY 2014	% change
Expenses for raw materials and supplies	1,185.3	1,810.2	-35%
Cost of purchased services	6,871.6	6,242.5	10%
Thereof
Port, canal and terminal costs	3,070.5	2,698.0	14%
Chartering, leases and container rentals	1,242.7	921.5	35%
Container transport costs	2,384.7	2,446.9	-3%
Maintenance/repair/other	173.7	176.1	-1%
Transport expenses	8,056.9	8,052.6	0%

Transport expenses per TEU [USD/TEU]

Transport expenses	1,088.6	1,363.2	20%
Maintenance/repair/other	23.5	29.8	-21%
Container transport costs	322.2	414.2	-22%
Chartering, leases and container rentals	167.9	156.0	8%
Port, canal and terminal costs	414.9	456.7	-9%
Thereof
Cost of purchased services	928.5	1,056.8	-12%
Expenses for raw materials and supplies	160.2	306.4	-48%

GROUP NET ASSET POSITION

	31.12.2015	30.09.2015	31.12.2014
Assets
Non-current assets	10,363.7	10,442.8	10,091.3
Of which fixed assets	10,301.7	10,381.0	10,022.3
Current assets	1,704.8	1,613.0	2,179.7
Of which cash and cash equivalents	625.0	542.8	864.7
Total assets	12,068.5	12,055.8	12,271.0
Equity and liabilities
Equity	5,496.8	5,240.6	5,068.1
Borrowed capital	6,571.7	6,815.2	7,202.9
Of which non-current liabilities	3,958.4	4,275.1	4,537.7
Of which current liabilities	2,613.3	2,540.1	2,665.2
Of which financial debt	4,256.3	4,362.0	4,518.1
thereof
Non-current financial debt	3,591.7	3,857.7	4,022.2
Current financial debt	664.6	504.3	495.9
Total equity and liabilities	12,068.5	12,055.8	12,271.0

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

GROUP NET ASSET POSITION
	31.12.2015	30.09.2015	31.12.2014
Cash and cash equivalents	625.0.	542.8.	864.7.
Financial debt	4,256.3	4,362.0	4,518.1
Net debt	3,631.3	3,819.2	3,653.4
Unused credit lines	423.4	486.4	255.8
Liquidity reserve	1,048.4	1,029.2	1,120.5
Equity	5,496.8	5,240.6	5,068.1
Gearing (net debt/equity) (%)	66.1%	72.9%	72.1%
Equity ratio (%)	45.5%	43.5%	41.3%

Hapag-Lloyd executed IPO in Q4 2015
	Basic data	Stock trading (since 6-Nov)
Stock exchange	Frankfurt Stock Exchange Hamburg Stock Exchange	120 100
Market segment	Regulated market (Prime Standard)	80
ISIN	DE000HLAG475	60
WKN	HLAG47	40 6-Nov 6-Dec 6-Jan 6-Feb 6-Mar Hapag-Lloyd Maersk Evergreen
Ticker Symbol	HLAG	NOL OOCL SDAX DAX Global Shipping
Primary listing	6 November 2015	Shareholder structure
Placement price	EUR 20	Free float
Number of shares	118,110,917	CSAV 15.5% 31.4%
Primary component	USD 300 m	TUI 12.3%
Lock-up	4 May 2016	20.2% 20.6% HGV Kühne

	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 125 m1)
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

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

Hapag-Lloyd bonds

YTW Hapag-Lloyd bonds
	9.75% 2017	7.75% 2018	7.50% 2019
Current Yield	7.4%	6.5%	6.7%
Current Trading	101.3%	101.8%	101.9%

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 February 2016; Hapag-Lloyd FY 2015; market data adapted to Hapag-Lloyd trade lane definition

38

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)

40

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