Hapag-Lloyd AG — Investor Presentation 2018

Aug 10, 2018

Investor Presentation H1 2018 Results Hamburg, 10 August 2018

Opening Remarks

01 Highlights	 Positive EBIT of USD 107 m in tough market environment  UASC synergies on track
02 Sector Update	 Stable demand despite rising geopolitical risks  Sector fundamentals remain favourable in the midterm
03 Financials	 Positive EBITDA of USD 515 m in H1 2018 (USD 397 m in H1 2017)  Good operating cash flow of USD 498 m (USD 332 m in H1 2017)
04 Way Forward	 Continue to deliver on synergies and improve profitability  Finalize our new strategy after 3 years of successful acquisition and integration

1 Highlights

Financial Highlights H1 2018: Half-year results driven by challenging market environment

Transport volume	Transport expenses per TEU	Freight rate
+38.5%	-2.2%	-4.2%
H1 2018: TEU 5.8 m	H1 2018: 934 USD/TEU	H1 2018: 1,020 USD/TEU
EBIT	EBITDA	Group loss
USD 107 m	USD 515 m	USD 122 m
1.6% EBIT margin	7.8% EBITDA margin	1.3% ROIC
Equity	Liquidity reserve	Net debt
USD 7.2 bn	USD 1.2 bn	USD 6.5 bn

1 Highlights

Total synergies of USD 435 m p.a. from 2019 onwards confirmed – Synergy realisation going as planned

Synergy potential

• Up to 90% of full run rate expected to be realized in 2018
• Visibility of synergies in P&L in H1 2018 is limited due to counter effects in other cost items

Container shipping growth on a healthy and normalized level driven by a solid global economic growth…

Global Container Volume Growth & Real GDP Growth [%]

100 150 200 250 300 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018e 2019e 2020e Real GDP Container Volume Growth 1.9x 1.0x GDP multiplier 2000 = Indexed to 100 1.3x 4.9% 5.4% 5.3% 3.9% 3.9% 3.8%

5

…but geopolitical risk rises mainly due to conflicts between major economic players

Volume Development of Main Trade Lanes

[mTEU in 2018e; in brackets: ø growth rate1) 2018e – 2023e]

Atlantic Trade:

6

• US imposed tariffs on steel and aluminum less than 3% of total container trade from EU to US is affected2)
• Retaliatory tariffs from the EU less than 6% of total container trade from US to EU is affected2)
• Ongoing negotiations, first agreements have been made between Trump and Juncker

Transpacific Trade:

• US imposed tariffs on USD 50 bn of Chinese products up to 13% of total container trade from CN to US is affected2)
• Retaliatory tariffs from China worth the same amount up to 48% of total container trade from US to CN is affected2)

Still under review: US import tariffs on Chinese products worth USD 200 bn and possible retaliation of China

Around 2% of total world container trade (TEU 148m in 2018e) currently affected by tariffs – going forward remains to be seen

1) according to 8-digit HTSUS codes 2) Source: PIERS market data with 4-digit HS codes + internal data; Status: 9 August 2018 Note: All numbers are based on estimates. Tangible effetcs cannot exactly be calculated at this point in time.

Supply: Orderbook remains relatively low with new orders on a reasonable level and very low idle fleet

Orderbook-to-fleet Orders placed

[TEU m, %] [TEU m]

7

Share of world fleet Idle Fleet [TTEU] 1.6% YTD 2018 2018 0.5 2017 0.8 2016 0.2 2015 2.2 2014 1.1 2013 2.0 2012 0.4 2011 1.8 2010 0.6 2009 0.1 2008 1.2 2007 3.2 YTD 2018 779 809 356 341 Q4 Q4 1,420 Q4 1,359 Q4 228 Q4 Q4 Q4 595 Q4 Q4 1,480

2016

2015

2014

2013

2012

2011

2010

2009

2017

Even though, short term supply pressure will most likely persist, mid-term supply/demand balance further improving

Net Capacity Growth 2018e

[in % of worldfleet]

• Drewry has revised its forecast for net capacity growth in 2018. Market analysts now expects scrapping at a much lower rate (from 1.8% to 0.5% of the current world fleet). Slippage remained unchanged.
• For 2020E, up to TEU 1 m out of TEU 1.5 m scheduled deliveries are not yet reflected in the current order book of TEU 2.3 m. To be delivered in 2020, vessels will have to be ordered in the beginning of H2 2018.

Supply / Demand Balance

9

Operational costs peaked in Q2, while freight rate development is rather flat

10

Positive EBITDA of USD 515 m in the first six months of 2018

Operational KPIs

	Q2 2018	Q2 2017	YoY	H1 2018	H1 2017	YoY
Transport volume [TTEU]	2,987	2,287	+31%	5,848	4,221	+39%
rate1) Freight [USD/TEU]	1,010	1,072	-6%	1,020	1,065	-4%
Bunker [USD/mt]	399	312	+28%	385	312	+23%
Exchange rate [USD/EUR]	1.19	1.10	n.m.	1.21	1.08	n.m.
Revenue [USD m]	3,352	2,629	+27%	6,569	4,900	+34%
EBITDA2) [USD m]	245	253	-3%	515	397	+30%
EBITDA margin2)	7.3%	9.6%	-2.3ppt	7.8%	8.1%	-0.3ppt
EBIT2) [USD m]	41	92	-55%	107	100	+7%
EBIT margin2)	1.2%	3.5%	-2.3ppt	1.6%	2.0%	-0.4ppt
Group profit2) [USD m]	-80	17	n.m.	-122	-45	n.m.

Note: UASC's Ltd. and its subsidiaries have been included in the figures from the date control was transferred on 24 May 2017. The key figures used are therefore only comparable with the previous year to a limited extent. USD figures as stated in the Investor Report H1 2018 1) For 2018, local revenues were included in the calculation of freight rates. Previous year's figures adjusted accordingly. 2) Due to retrospective application of the provisions for designated options, previous year's figures have been adjusted.

Solid transport volume growth of 38.5% YoY due to UASC merger – Pro-forma transport volume grew by 3.9%YoY

Transport volume [TEU m]

On a Pro-Forma basis rates have increased by 3.0% YoY, Reported rates were down by 4.2% YoY

Freight rate [USD/TEU] vs. Bunker price development [USD/mt]

1) Assuming UASC Group has been included since 1 January 2016 Note: Due to the inclusion of UASC in the Hapag-Lloyd Group from the first-time consolidation date of 24 May 2017, figures provided can only be compared with those of the previous year to a limited extent. The figures for the first quarter of 2017 relate to Hapag-Lloyd only and do not include the UASC Group. For the financial year 2018, local revenues were included in the calculation of freight rates. The previous year's figures have been adjusted accordingly.

13

Higher expenses for raw materials and supplies were offset by costcutting programmes and synergies from the UASC integration

Transport expenses per TEU [USD/TEU]

Note: UASC's Ltd. and its subsidiaries have been included in the figures from the date control was transferred on 24 May 2017. The key figures used are therefore only comparable with the previous year to a limited extent. Rounding differences may occur. 1) Cost of purchased services H1 2018: 777 USD/TEU 2) Mainly explained by currency effects predominantly booked in other

14

Good free cash flow of USD 443 m in H1 2018 driven by a solid operating result (EBITDA) and limited investment needs

Cash flow H1 2018 [USD m]

Note: USD figures as stated in Investor Report H1 2018. Rounding differences may occur.

15

Stable equity base of USD 7.2 bn, solid liquidity reserve of USD 1.2 bn and further reduced financial debt in H1 2018

Equity base [USDm] Net debt [USDm]

Further reduction of USD 414 m in financial debt since year-end 2017

Note: UASC's Ltd. and its subsidiaries have been included in the figures from the date control was transferred on 24 May 2017. The key figures used are therefore only comparable with the previous year to a limited extent.

643 725

Cash

30 June 2018 31 December 2017

Revised Outlook for 2018

	FY 2017	Outlook for 2018	Revised Outlook 2018	Sensitivities	for 2018
Transport volume	9,803 TTEU	Increasing clearly	Increasing clearly	+/- 100 TTEU	+/- USD <0.1 bn
Average freight rate	1,051 USD/TEU	On previous year's level	On previous year's level	+/- 40 USD/TEU	+/- USD ~0.5 bn
Average bunker price	318 USD/mt	Increasing clearly	Increasing clearly	+/- 50 USD/mt	+/- USD ~0.2 bn
EBITDA	EUR 1,055 m	Increasing clearly	EUR 900 m to EUR 1,150 m
EBIT	EUR 411 m	Increasing clearly	EUR 200 m to EUR 450 m

4 Way Forward

Major targets for H2 and beyond:

Continue to deliver on synergies and deleverage the company over time

Develop and offer more digitalized solutions to the customer

Successful overcome regulatory changes, such as the IMO regulations

Finalization of our new strategy, after 3 years of successful acquisition & integration

A Appendix

Hapag-Lloyd with equity ratio of 41%

	30.06.2018	31.12.2017
Assets
Non-current assets	14,818.4	15,146.1
of which fixed assets	14,756.4	15,071.1
Current assets	2,640.6	2,630.8
of which cash and cash equivalents	643.0	725.2
Total assets	17459.0	17,776.9
Equity and liabilities
Equity	7,155.0	7,263.3
Borrowed capital	10,304.0	10,513.6
of which non-current liabilities	6,678.3	7,197.8
of which current liabilities	3,625.7	3,315.8
of whih financial debt	7,182.2	7,595.5
thereof Non-current financial debt	6,260.6	6,750.6
Current financial debt	921.6	844.9
Total equity and liabilities	17,459.0	17,776.9

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

	30.06.2018	31.12.2017
Cash and cash equivalents	643.0	725.2
Financial debt	7,182.2	7,595.5
Restricted Cash	46.9	58.6
Net debt	6,492.3	6,811.7
Unused credit lines	520.0	545.0
Liquidity reserve	1,163.0	1270.2
Equity	7,155.0	7,263.3
Gearing (net debt / equity) (%)	90.7%	93.8%
Equity ratio (%)	41.0%	40.9%

Hapag-Lloyd with positive EBITDA of USD 514.9 m

	H1 2018	H1 2017	% change
Revenue	6,568.7	4,899.7	34%
Other operating income	55.9	114.3	-51%
Transport expenses	-5,463.3	-4,031.6	36%
Personnel expenses	-389.8	-373.3	4%
Depreciation, amortization & impairment	-407.5	-296.6	37%
Other operating expenses	-275.3	-232.2	19%
Operating result	88.7	80.3	10%
Share of profit of equity-acc. investees	18.7	19.9	-6%
Other financial result	0.0	0.2	n.m.
Earnings before interest & tax (EBIT)	107.4	100.4	7%
EBITDA	514.9	397.0	30%
Interest result	-209.1	-132.0	58%
Income taxes	-20.6	-13.0	58%
Group profit / loss	-122.3	-44.6	174%

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

	H1 2018	H1 2017	% change
Expenses for raw materials & supplies	918.0	583.3	57%
Cost of purchased services	4,545.3	3,448.3	32%
Thereof Port, canal & terminal costs	2,397.4	1,662.2	44%
Chartering leases and container rentals	597.0	496.4	20%
Container transport costs	1,453.9	1,155.1	26%
Maintenance/ repair/ other	97.0	134.6	-28%
Transport expenses	5,463.3	4,031.6	36%
Transport expenses per TEU [USD m]
	H1 2018	H1 2017	% change
Expenses for raw materials & supplies	157.0	138.2	14%
Cost of purchased services	777.3	816.9	-5%
Thereof Port, canal & terminal costs	410.0	393.8	4%
Chartering leases and container rentals	102.1	117.6	-13%
Container transport costs	248.6	273.6	-9%
Maintenance/ repair/ other	16.6	31.9	-48%
Transport expenses	934.3	955.1	-2%

20 Note: The previous year's figures have been adjusted due to the retrospective application of the rules for designation of option contracts. This improved the previous year's transport expenses by USD 3.9 million.

H1 2018 generated one-off costs of USD 4 m related to the merger

Transaction & integration related one-off costs [USD m]

A Appendix

Hapag-Lloyd benefits from optimized bunker consumption, but substantial increase in bunker price harms P&L

Bunker consumption price [USD/mt] Bunker consumption & expenses

A Appendix

Solid long-term and diversified financing portfolio

Financial debt profile [USD m]

1) As of January 2018 financial debt profile has been changed to the statement of repayment amounts. Deviation from the total financial debt as shown in the balance sheet as per 30.06.2018 consist of transaction costs and accrued interest in the amount of USD 90.9 million 2) ABS programme prolongated until 2020

Financial Calendar 2018

February 28th, 2018	Preliminary Financials 2017
March 28th, 2018	Annual Report 2017
May 14th, 2018	Quarterly Financial Report Q1 2018
July 10th, 2018	Annual General Meeting 2018
August 10th, 2018	Halfyear Financial Report 2018
November 8th, 2018	Quarterly Financial Report 9M 2018

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.

UASC's Ltd. and its subsidiaries have been included in the figures from the date control was transferred on 24 May 2017.The key figures used are therefore only comparable with the previous year to a limited extent.

Hapag-Lloyd Investor Relations

Ballindamm 25 20095 Hamburg Tel: +49(40) 3001-2896 ir@hlag.com https://www.hapag-lloyd.com/en/ir.html