Hapag-Lloyd AG — Investor Presentation 2018

May 14, 2018

Investor Presentation Q1 2018 Results Hamburg, 14 May 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.

Opening Remarks

01 Deliverables	 Synergy ramp-up from the UASC integration on track – up to 90% to be realized in 2018  Solid start into the year with an EBIT of USD 66 m (USD 8 m in Q1 2017) despite difficult rate environment
02 Sector Update	 Sector fundamentals remain favourable in the midterm  Orderbook remains at low level
03 Financials	 Q1 2018 EBITDA of USD 270 m clearly above previous year's level (USD 144 m in Q1 2017)  Strong Operating Cash Flow of USD 312 m in Q1 2018 (USD 158 m in Q1 2017)
04 Way Forward	 Continue to deliver on synergies  Clear target to improve profitability further and to deleverage over time

Total synergies of USD 435 m p.a. from 2019 onwards confirmed – Up to 90% of full run rate expected to be realized in 2018

Synergy ramp-up

• Approximately 60% of expected synergies realized until end of Q1 2018
• Up to 90% of full run rate expected to be realized in 2018
• Visibility of synergies in P&L is limited due to counter effects in other cost items

Financial Highlights: Clearly improved operating result

Transport volume	Transport expenses per TEU	Freight rate
+47.9%	-5.9%	-2.6%
Q1 2018: 2.9 TEU m	Q1 2018: 925 USD/TEU	Q1 2018: 1,029 USD/TEU
EBIT	EBITDA	Group profit / loss
USD 66 m	USD 270 m	USD -42 m
2.1% EBIT margin	8.4% EBITDA margin	1.7% ROIC
Equity	Liquidity reserve	Net debt
USD 7.2 bn	USD 1.2 bn	USD 6.7 bn

6

Bunker price significantly above previous year's level putting pressure on freight rates

CCFI vs. Bunker price development

Global Container Volume [TEUm]

Demand: Container shipping growth remains on a healthy and constant level driven by a solid global economic growth

Source: IHS (March 2018), IMF WEO (April 2018)

7

8

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

Orderbook-to-fleet Orders placed

Share of world fleet Idle Fleet [TTEU] 224 595 Q4 356 Q4 1,480 Q4 1,359 Q4 228 Q4 779 Q4 809 Q4 Q4 1,324 Q4 1.0% April 2018 2.0 2012 0.4 2011 1.8 2010 0.6 2009 0.1 0.8 2016 0.2 2015 2.2 2014 1.1 2013 2018 0.4 2008 2017 1.2 2007 3.2 YTD May 2018

2010

2009

Source: MDS Transmodal (April 2018), Drewry (1Q), Clarksons (Q1), Alphaliner weekly (May 2018)

2016

2017

2015

2014

2013

2012

2011

Even though, short term supply pressure will most likely persists, mid-term supply/demand gap is closing further

Net Capacity Growth

[in % of worldfleet]

9

Supply / Demand Balance

LSF 2020: The whole industry will face major changes – Hapag-Lloyd is exploring and evaluating all possible options

New regulations as of 2020

• Low sulphur regulation to be enforced worldwide beginning January 2020
• IMO announced target to reduce CO2 emissions by 50% by 2050

3 options for the industry

1 LNG	 High upfront CAPEX  Significantly lower exhaust gas emissions than compliant fuels – regulatory certainty  Bunkering logistics not yet sufficiently available in all ports – LNG infrastructure to be expanded	that are LNG ready
2 Install Scrubber	 Lower CAPEX than LNG  Allows continued use of HSFO 3.5%  High regulatory and technical uncertainty  Increased fuel consumption and CO2 emissions	marine fuel strategy
3 Use compliant fuels	 Minor CAPEX to ensure segregation of fuels  Compliant fuels are expected to price at a premium to HSFO – OPEX therefore likely to increase	"Hapag-Lloyd plans 20% reduction in CO2 emissions by 2020"

Hapag-Lloyd's position

• HL's owned fleet comprises 17 vessels that are LNG ready
• We are currently evaluating all of the three possible options for a future marine fuel strategy
• Economics and feasibility will need to be checked on a case-by-case basis

20% reduction in CO2 emissions by 2020"

Clearly improved EBITDA of USD 270 m in Q1 2018

Operational KPIs

	Q1 2018	Q1 2017	YoY	Q4 2017	QoQ
Transport volume [TTEU]	2,861	1,934	+48%	2,774	+3%
rate1) Freight [USD/TEU]	1,029	1,056	-3%	1,038	-1%
Bunker [USD/mt]	372	313	+19%	339	+10%
Exchange rate [USD/EUR]	1.23	1.07	+15%	1.18	+4%
Revenue [USD m]	3,217	2,271	+42%	3,119	+3%
EBITDA2) [USD m]	270	144	+87%	390	-31%
EBITDA margin2)	8.4%	6.3%	+2.1ppt	12.5%	-4.1ppt
EBIT2) [USD m]	66	8	n.a.	167	-60%
EBIT margin2)	2.1%	0.4%	+1.7ppt	5.4%	-3.3ppt
Group profit2) [USD m]	-42	-62	+27%	27	n.a.

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 Q1 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.

Q1 2018 generated one-off costs of USD 3 m related to the merger – Total one-off costs from the merger estimated at USD 115 m

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

13

Solid transport volume growth of ~48% YoY due to UASC merger – Pro-forma transport volume grew by 2.5%YoY

Transport volume [TEU m]

14

Persistent stiff competition and UASC integration led to lower rates – On a Pro-Forma basis rates would have increased by 7.1% YoY

Reported freight rate [USD/TEU] vs. Pro-forma freight [USD/TEU]

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.

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

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

16

Despite higher bunker prices, transport expenses per TEU were down by ~6% YoY as a result of continuous cost management

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 Q1 2018: 776 USD/TEU

17

Substantial free cash flow of USD 240 m in Q1 2018 driven by a solid operating result (EBITDA) and limited investment needs

Cash flow Q1 2018 [USD m]

18

Stable equity base of USD 7.2bn, solid liquidity reserve of USD 1.2 bn and further reduced financial debt in Q1 2018

Equity base [USDm] Net debt [USDm]

725 737 545 495 31.03.2018 1,232 31.12.2017 1,270 Cash Unused credit lines

• Equity ratio almost unchanged at 41.0% and equity of USD 7.3 bn
• Liquidity reserve totals USD 1.2 bn as at 31 March 2018
• Further reduction of USD 141 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. 1) Includes Restricted Cash booked as other assets: USD 58.6 m as of 31.12.2017 & USD 58.7 m as of 31.03.2018

Outlook for 2018 unchanged

	FY 2017	Outlook for 2018	Sensitivities	for 2018
Transport volume	9,803 TTEU	Increasing clearly	+/- 100 TTEU	+/- USD <0.1 bn
Average freight rate	1,051 USD/TEU	On previous year's level	+/- 40 USD/TEU	+/- USD ~0.5 bn
Average bunker price	318 USD/mt	Increasing clearly	+/- 50 USD/mt	+/- USD ~0.2 bn
EBITDA	USD 1,198 m	Increasing clearly
EBIT	USD 466 m	Increasing clearly

4 Way Forward

Hapag-Lloyd with clearly defined financial policy

Profitability	Profitability going forward supported by improved fleet ownership structure and synergy realization
Investments	No planned new vessel investments in next years – Maximize free cash flow
Deleveraging	Clear target to significantly deleverage over time
Liquidity	Maintain an adequate liquidity reserve for the company
Strategy	Develop a midterm strategy to strengthen HL's strategic position going forward

A Appendix

Convincing equity story resulted in higher share price…

Share trading

Stock Exchange	Frankfurt Stock Exchange / Hamburg Stock Exchange
Market segment / Index	Regulated market (Prime Standard) / SDAX
ISIN / WKN	DE000HLAG475 / HLAG47
Ticker Symbol	HLAG
Primary listing	6 November 2015
Number of shares	175,760,293

A Appendix

…and bonds continue to trade above par

A Appendix

Hapag-Lloyd with equity ratio of 41%

	31.03.2018	31.12.2017
Assets
Non-current assets	15,028.2	15,146.1
of which fixed assets	14,936.7	15,071.1
Current assets	2,632.1	2,630.8
of which cash and cash equivalents	736.5	725.2
Total assets	17,660.3	17,776.9
Equity and liabilities
Equity	7,233.0	7,263.3
Borrowed capital	10,427.3	10,513.6
of which non-current liabilities	7,039.7	7,197.8
of which current liabilities	3,387.6	3,315.8
of whih financial debt	7,454.6	7,595.5
thereof Non-current financial debt	6,608.2	6,750.6
Current financial debt	846.4	844.9
Total equity and liabilities	17,660.3	17,776.9

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

	31.03.2018	31.12.2017
Cash and cash equivalents	736.5	725.2
Financial debt	7,454.6	7,595.5
Restricted Cash	58.7	58.6
Net debt	6,659.4	6,811.7
Unused credit lines	495.0	200.0
Liquidity reserve	1,231.5	925.2
Equity	7,230.0	7,263.3
Gearing (net debt / equity) (%)	92.1%	93.8%
Equity ratio (%)	41.0%	40.9%

Hapag-Lloyd with positive EBITDA of USD 269.8 m

	Q1 2018	Q1 2017	% change
Revenue	3,217.2	2,270.9	42%
Other operating income	44.1	28.0	58%
Transport expenses	-2,647.9	-1,901.3	39%
Personnel expenses	-206.0	-157.0	31%
Depreciation, amortization & impairment	-203.7	-136.1	50%
Other operating expenses	-147.5	-104.6	41%
Operating result	56.2	-0.1	n.m.
Share of profit of equity-acc. investees	9.9	8.1	22%
Other financial result	0.0	0.0	n.m.
Earnings before interest & tax (EBIT)	66.1	8.0	n.m.
EBITDA	269.8	144.1	n.m.
Interest result	-101.3	-65.7	54%
Income taxes	-7.0	-4.1	-71%
Group profit / loss	-42.2	-61.8	-32%

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

	Q1 2018	Q1 2017	% change
Expenses for raw materials & supplies	428.3	275.3	56%
Cost of purchased services	2,219.6	1,626.0	37%
Thereof Port, canal & terminal costs	1,181.7	765.1	54%
Chartering leases and container rentals	270.3	258.3	5%
Container transport costs	690.2	539.3	28%
Maintenance/ repair/ other	77.4	63.3	22%
Transport expenses	2,647.9	1,901.3	39%
Transport expenses per TEU [USD m]
	Q1 2018	Q1 2017	% change
Expenses for raw materials & supplies	149.7	142.3	5%
Cost of purchased services	775.8	840.7	-8%
Thereof Port, canal & terminal costs	413.0	359.6	4%
Chartering leases and container rentals
	94.5	133.6	-29%
Container transport costs	241.2	278.9	-13%
Maintenance/ repair/ other	27.1	32.7	-17%

25 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 4.3 million.

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

Hapag-Lloyd Investor Relations

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