Investor Presentation

Q1 2017 Results

Hamburg, 12 May 2017

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 forwardlooking 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

01	Introduction	 We continued to progress on our strategic initiatives (THE Alliance, UASC Merger) and delivered a positive operating result in the first quarter of 2017
02	Market Update	 Improving industry fundamentals – 2017 dependent on continuous market discipline  Sector consolidation & alliance re-shaping with Hapag-Lloyd proactively taking part
03	Hapag-Lloyd Financials	 Despite challenging market conditions, Hapag-Lloyd achieved a positive EBIT of USD 3.7 m in the first quarter of 2017 – we are delivering on our savings with top-tier unit costs
04	UASC Merger	 Closing of our merger with UASC is expected to take place until the end of May 2017  Significant CAPEX savings and USD 435 m p.a. anticipated cost synergies from 2019 onwards
05	Way Forward	 Main focus going forward with THE Alliance, completing the transaction with UASC and quickly integrating the UASC business to further reduce costs

Strategic highlights: We continued to progress on our initiatives …

On 18 Jan 2017 Hapag-Lloyd successfully priced a new bond of EUR 250 m due 2022 – on 7 Feb 2017 the company tapped the new bond by additional EUR 200 m at emission price of 102.375%.

The proceeds were used to proactively refinance by redeeming the outstanding 9.75% USD bond due 2017, partially redeem the 7.75% EUR bond due 2018 and for general corporate purposes (including further repayment of existing indebtedness).

Hapag-Lloyd received the last of the five vessels of the newbuilding series with 10,500 TEU capacity end of April. All five of the new vessels are now sailing and are designed to fit through the new locks of the Panama Canal.

Due to their wide-beam design and high reefer capacity, they are ideally suited for the Latin America trade. In addition, they are highly efficient which will need to additional savings in bunker consumption.

THE Alliance as the most integrated liner shipping consortia has become operational in April 2017 (subject to completion of all regulatory requirements).

THE Alliance deploys a fleet of more than 240 modern ships in the Asia / Europe, North Atlantic and Trans-Pacific trade lanes including the Middle East and the Arabian Gulf / Red Sea.

Financial highlights: … and delivered a positive operating result in Q1 2017

Transport volume	Freight rate	Transport expenses per TEU
+6.8%	-1.9%	+1.6%
Q1 2017: 1.9 TEU m	Q1 2017: 1,047 USD/TEU	Q1 2017: 985 USD/TEU
EBITDA	EBIT	Group profit / loss
USD 140 m	USD 4 m	USD -66 m
6.2% EBITDA margin	Positive operating result	0.0% ROIC annualized
Equity	Liquidity reserve	Net debt
USD 5.3 bn	USD 0.9 bn	USD 3.8 bn
44.1% equity ratio	Solid liquidity	72.6% gearing

Q1 2017 showed solid volume growth with gradually increasing freight rates but a substantially higher bunker price

CCFI vs. Bunker

Global Container Volume [TEUm]

Demand: Container shipping remains an industry with healthy growth and balanced trade dynamics

Container shipping volume and global GDP growth

Freight rates have clearly recovered from Q2 2016 lows – But continuous market discipline needed during 2017

Comprehensive Index (SCFI)

Shanghai – USA (SCFI)

Shanghai – Europe (SCFI)

Supply: Capacity growth is slowing – very few deliveries post 2017 expected

Vessel deliveries by year [TEU m]

Supply: Scrapping and postponements help to keep net capacity growth low

… keeping net capacity growth low …

Net capacity growth 2017E

… reducing supply / demand gap

On the back of consolidation, alliances have been re-shaped

Hapag-Lloyd – a strong partner in THE Alliance

THE Alliance covers all East-West trades
Comprehensive network of 32 services will connect more than 78 major ports
Combined capacity of ~3.6m TEU or around 17%2) of world fleet vessel pool of more than 241 ships
Leading product characterized by fast transit times, broad port coverage & latest vessels
Unique contingency plan Independent trust fund to safeguard customers' cargo on board

After Japanese JV1) we are three partners in THE Alliance:2)

1) Subject to regulatory approvals and closing; 2) Total operating capacity of THE alliance partners, not all to be deployed in alliance (Hapag-Lloyd including UASC)

THE Alliance offers fast, competitive services on the three major East-West trades

Competitive on all trades

1) 2M including Hamburg Süd

We achieved a clearly positive EBITDA in Q1 2017

Operational KPIs

	Q1 2017	Q1 2016	YoY ∆%	Q4 2016	QoQ ∆%
Transport volume [TTEU]	1,934	1,811	+7%	1,949	-1%
Freight rate [USD/TEU]	1,047	1,067	-2%	1,033	+1%
Bunker price (MFO) [USD/t]	300	178	+69%	257	+17%
Exchange rate [EUR/USD]	1,07	1.10	n/a	1.10	n/a
Revenue [USD m]	2,271	2,124	+7%	2,182	+4%
EBITDA [USD m]	140	136	+3%	246	-43%
EBITDA-margin	6.2%	6.4%	-0.2 ppt	11.3%	-5.1 ppt
EBIT [USD m]	4	5	-30%	111	-96%
EBIT-margin	0.2%	0.2%	0.0 ppt	5.1%	-4.9 ppt
Group profit / loss [USD m]	-66	-47	-40%	46	-243%

The effects of our cost savings are clearly visible when looking at our relative performance

Carrier Revenue vs. EBIT-Margin FY 2016 Q1 2017 EBIT [USDm]

Transport volume increased by solid 6.8% to 1,934 TTEU in Q1 2017

The 6.8% volume increase was mainly driven by a strong growth on Intra-Asia and Transpacific trades
In preparation of the integration of UASC, the trades have been restructured and a new trade Middle East has been added. The assignment of individual services and historic figures have been amended accordingly

Bunker price increased by 69%, whereas average freight rate showed a slower recovery

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

Bunker prices have increased significantly – However, Hapag-Lloyd benefits from a reduced consumption

1) Average nominal deployed capacity in TEU 2) Expenses for raw materials and supplies

Transport expenses ex bunker decreased as compared to the prior year's level due to further cost savings

Transport expenses per TEU [USD/TEU]

Equity at USD 5.3 bn and liquidity reserve at USD 0.9 bn – Capital increase of USD 400 m post Closing

31.03.2017 5,277 31.12.2016 5,342

Solid liquidity position [USD m]

Strong equity base [USD m]

1) incl. Restricted Cash (USD 19.7 million at 31/12/2016 and USD 45.3 million at 31/03/2017 booked as other assets)

Stable net debt [USD m]

UASC merger implications

Cash capital increase of USD 400 m (equivalent) to be executed within six months after closing (backstopped by certain core shareholders)
Strengthening of shareholder base with the new key shareholders Qatar Holding LLC and the Public Investment Fund of the Kingdom of Saudi Arabia
Value protection via guaranteed equity, cash and debt covenants (as of certain Relevant Dates)

We expect a clearly increasing EBITDA for 2017 with the majority of revenue and operating profits in H2 2017

Hapag-Lloyd guidance for 2017 Hapag-Lloyd sensitivities (EBIT) for 2017

	FY 2016	Guidance for 2017	Transport volume	+/- 100 TTEU	+/- USD <0.1 bn
Transport volume	7.6 TEU m	Increasing moderately	Freight rate	+/- 50 USD/TEU	+/- USD ~0.3 bn
Bunker consumption price (MFO)	210 USD/mt	Increasing clearly	Bunker price	+/- 100 USD/mt	+/- USD ~0.2 bn
Freight rate	1,036 USD/TEU	Increasing moderately	EUR / USD	+/- 0.1 EUR/USD	+/- USD <0.1 bn
EBITDA	USD 671 m	Increasing clearly
EBIT	USD 140 m	Increasing clearly

Hapag-Lloyd / UASC merger creates a top tier pure-play carrier – Final preparations on track for closing end of May

At a glance Deal rationale

1) Sum of stand-alone figures as of 31 March 2017 (rounding differences may occur)

Well-balanced

trades

Strong partnerships

Large, young fleet

Network: The Combined Entity will have a very balanced trade portfolio – more than any TOP 5 carrier

Breakdown of capacity by trade1)

1) As of March 2017. Breakdown based on capacity deployed by individual carriers on direct services only. Excl. wayport capacity, transshipment services, slot exchange arrangements and cross-trade intra-alliance arrangements; numbers for Hapag-Lloyd based on exposure to global trades; 2) Includes idle fleet

22 Source: Alphaliner monthly newsletter (April 2017), plus HL/UASC internal data (as of 31.03.2017)

Fleet: Access to young and fuel-efficient fleet with large share of ULCVs with no planned need to invest in next years

Young and fuel-efficient fleet

Combined e1) g CMA CGM a				7.2 7.4	-1.3	Vessel
et e	COSCO 2)			7.6	yrs	19,500 TEU
e fl g a er v	Top 15 Hapag-Lloyd Maersk			8.3 8.5 8.5			TEU Vessels
A	MSC			8.7		15,000 TEU
%]1) p [	Combined COSCO	66% 60%	34% 40%				TEU Vessels
hi	Hapag-Lloyd	57%	43%			10,500 TEU
s er	Maersk	53%	47%				TEU
n w o	2) Top 15	49%	51%				Vessels
et e	CMA CGM	46%	54%			9,300 TEU
Fl	MSC	36%	64%				TEU
e z	Combined	current owned fleet	current chartered fleet	6,839			Vessels
si	CMA CGM			6,181		3,500 TEU
el s U]1) s	COSCO			5,970	+982		TEU
e v E	Hapag-Lloyd			5,858			Vessels
e T [ g	Top 15		5,281
a er	Maersk		5,163				Capacity [TEU]
v A	CMA CGM		5,038				Vessels

Ship deliveries 2015-2017

Vessel	H1	2015 H2	H1	2016 H2	2017 H1	H2
19,500 TEU
TEU Vessels	19,000 1	57,000 3	38,000 2
15,000 TEU
TEU Vessels	45,000 3	15,000 1	60,000 4			30,000 2
10,500 TEU
TEU Vessels				21,000 2	31,5003) 3) 3
9,300 TEU
TEU Vessels	37,200 4	9,300 1
3,500 TEU
TEU Vessels			7,000 2
Capacity [TEU] Vessels	101,200 8	81,300 5	105,000 8	21,000 2	31,5003) 3) 3	30,000 2

1) Diagram assuming that all currently announced mergers (Hapag-Lloyd & UASC; NYK & MOL & K-Line; Maersk & Hamburg Süd) will receive regulatory approvals and are executed as announced.

Simple sum of stand-alone operating capacity 2) Weighted by carrier capacities 3) All three vessels have been delivered within the first four months of 2017

Source: MDS Transmodal (April 2017) plus HL internal data (HL Fleet as of 31.03.2017, Combined as of 31.03.2017), only vessels >399 TEU

Synergies: Synergies of USD 435 m expected from 2019 onwards – Focus on fast-track integration and realization of synergies

Synergy potential, full run-rate [USD m]

Optimized new vessel deployment/network
Slot cost advantages
Efficient use of new fleet
Consolidation of Corp. and Regional HQs
Consolidation of country organizations
Other overhead reductions (e.g. marketing, consultancy, audit)

Network Overhead Other (terminals, equipment and intermodal)

Lower container handling rates per vendor/location
Imbalance reduction and leasing costs optimization
Optimization of inland haulage network
Best practice sharing

Partner: New core shareholders with strategic interest in the Combined Entity

Transaction overview

UASC shares contributed to Hapag-Lloyd in exchange for newly issued Hapag-Lloyd shares
Continued investment of sovereign wealth funds QIA and PIF highlight continued strategic importance of HL for the region
C. 39% of shareholders representing governmental bodies and interests
C. 37% of shareholders backed by wealthy entrepreneurs with focus on and long experience in logistics
Planned cash capital increase of USD 400 m 50/50 backstopped by incumbent and new key shareholders within six months post closing

Closing remarks

01	Introduction	 We continued to progress on our strategic initiatives (THE Alliance, UASC Merger) and delivered a positive operating result in the first quarter of 2017
02	Market Update	 Improving industry fundamentals – 2017 dependent on continuous market discipline  Sector consolidation & alliance re-shaping with Hapag-Lloyd proactively taking part
03	Hapag-Lloyd Financials	 Despite challenging market conditions, Hapag-Lloyd achieved a positive EBIT of USD 3.7 m in the first quarter of 2017 – we are delivering on our savings with top-tier unit costs
04	UASC Merger	 Closing of our merger with UASC is expected to take place until the end of May 2017  Significant CAPEX savings and USD 435 m p.a. anticipated cost synergies from 2019 onwards
05	Way Forward	 Main focus going forward with THE Alliance, completing the transaction with UASC and quickly integrating the UASC business to further reduce costs

We delivered on our defined initiatives

Tangible results and further upside

Hapag-Lloyd with clearly defined financial policy

1) 50% backstopped by QH and PIF, 50% backstopped by CSAV and Kühne

Positive free cash flow of USD 38 m in Q1 2017

Cash flow Q1 2017 [USD m]

Unused credit lines Cash and cash equivalents

Hapag-Lloyd shares with supportive tradings in recent months

Share trading

Hapag-Lloyd bonds continuously trade above par

Bonds trading

HL EUR 7.75% 2018 HL EUR 7.50% 2019 HL EUR 6.75% 2022

	EUR Bond 2022	EUR Bond 2019	EUR Bond 2018
Listing	Open market of the Luxembourg Stock Exchange (Euro MTF)
Volume	EUR 450 m	EUR 250 m	EUR 200 m1)
ISIN / WKN	XS1555576641 / A2E4V1	XS1144214993 / A13SNX	XS0974356262 / A1X3QY
Maturity Date	Feb 1, 2022	Oct 15, 2019	Oct 1, 2018
Redemption Price	as of Feb 1, 2019:103.375%; as of Feb 1, 2020:101.688%; as of Feb 1, 2021:100%	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%
Coupon	6.75%	7.50%	7.75%

1) Partial redemption by nominal EUR 200 m on 9 March 2017

Hapag-Lloyd optimized its maturity profile via debt capital markets at more attractive pricing levels

Bond coupon and maturity profile

On 18 Jan 2017 Hapag-Lloyd successfully priced a new bond of EUR 250 m due 2022 – on 7 Feb 2017 the company tapped the new bond by additional EUR 200 m at emission price of 102.375%
The proceeds were used to proactively refinance by redeeming the outstanding 9.75% USD bond due 2017, partially redeem the 7.75% EUR bond due 2018 and for general corporate purposes (including further repayment of existing indebtedness)
The yield to maturity at issuance was 6.50%1) and thereby clearly below the existing bond pricings
Hapag-Lloyd was able to engage a high quality and diversified investor base in this new bond issuance

Hapag-Lloyd with positive EBITDA of USD 139.8 m

	Q1 2017	Q1 2016	% change
Revenue	2,270.9	2,124.0	7%
Other operating income	28.0	24.8	13%
Transport expenses	-1,905.6	-1,756.0	9%
Personnel expenses	-157.0	-156.3	0%
Depreciation, amortization & impairment	-136.1	-130.8	4%
Other operating expenses	-104.6	-106.8	-2%
Operating result	-4.4	-1.1	-300%
Share of profit of equity-acc. investees	8.1	6.4	27%
Other financial result	0.0	0.0	n.m.
Earnings before interest & tax (EBIT)	3.7	5.3	-30%
EBITDA	139.8	136.1	3%
Interest result	-65.7	-47.5	38%
Income taxes	4.1	-5.0	n.m.
Group profit / loss	-66.1	-47.2	-40%

Income statement [USD m] Transport expenses [USD m]

	Q1 2017	Q1 2016	% change
Expenses for raw materials & supplies	279.6	154.7	81%
Cost of purchased services	1,626.0	1,601.3	2%
Thereof Port, canal & terminal costs	765.1	718.4	6%
Chartering leases and container rentals	258.3	311.3	-17%
Container transport costs	539.3	507.5	6%
Maintenance/ repair/ other	63.3	64.1	-1%
Transport expenses	1,905.6	1,756.0	9%
Transport expenses per TEU [USD m]
	Q1 2017	Q1 2016	% change
Expenses for raw materials & supplies	144.6	85.4	69%
Cost of purchased services	840.6	884.2	-5%
Thereof Port, canal & terminal costs	395.6	396.7	0%
Chartering leases and container rentals	133.5	171.9	-22%
Container transport costs	278.8	280.2	-1%
Maintenance/ repair/ other	32.7	35.4	-8%

Transport expenses	985.2	969.6	2%

Hapag-Lloyd with equity ratio of 44.1%

	31.03.2017	31.12.2016	31.03.2016
Assets
Non-current assets	10,289.2	10,267.4	10,371.2
of which fixed assets	10,180.7	10,183.3	10,299.4
Current assets	1,679.9	1,698.0	1,605.2
of which cash and cash equivalents	555.2	602.1	518.8
Total assets	11,969.1	11,965.4	11,976.4
Equity and liabilities
Equity	5,276.5	5,341.7	5,423.9
Borrowed capital	6,692.6	6,623.7	6,552.5
of which non-current liabilities	4,144.1	3,836.7	3,903.8
of which current liabilities	2,548.5	2,787.0	2,648.7
of which financial debt	4,433.6	4,414.9	4,207.0
thereof Non-current financial debt	3,759.4	3,448.4	3,497.7
Current financial debt	674.2	966.5	709.3
Total equity and liabilities	11,969.1	11,965.4	11,976.4

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

	31.03.2017	31.12.2016	31.03.2016
Cash and cash equivalents	555.2	602.1	518.8
Financial debt	4,433.6	4,414.9	4,207.0
Net debt	1) 3,833.1	1) 3,793.1	3,688.2
Unused credit lines	350.0	200.0	385.0
Liquidity reserve	905.2	802.2	903.8
Equity	5,276.5	5,341.7	5,423.9
Gearing (net debt / equity) (%)	72.6%	71.0%	68.0%
Equity ratio (%)	44.1%	44.6%	45.3%

35 1) incl. Restricted Cash (USD 19.7 million at 31/12/2016 and USD 45.3 million at 31/03/2017 booked as other assets)

Hapag-Lloyd Investor Relations Tel +49 40 3001-2896 Fax +49 40 3001-72896 [email protected] https://www.hapag-lloyd.com/en/ir.html