Hapag-Lloyd AG — Investor Presentation 2018

Feb 28, 2018

Investor Presentation

Preliminary Financials 2017

Hamburg, 28 February 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.

All information on FY 2017 financials is preliminary and unaudited.

Opening Remarks

01	Deliverables	 We continued to deliver on our initiatives (UASC integration, cash capital increase & continuous cost control)  Operating result (EBIT) of USD 466 m in FY 2017 (+234% YoY) in line with market expectation
02	Sector Update	 Sector fundamentals remain favourable  Orderbook remains at low level despite recent new orders
03	Financials	 Significantly improved EBITDA of USD 1,198 m in FY 2017 (USD 390 m in Q4 2017)  Further reduction of unit cost despite higher bunker prices
04	Way Forward	 Main focus going forward is to realise the synergies of the UASC integration and further cost optimisation  Substantial deleveraging from the merger onwards

1 Deliverables

Throughout the year, we have continued to deliver on our initiatives…

1 Deliverables

…and have further strengthened Hapag-Lloyd's position as one of the Top 5 global container carriers

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	1)	1)	Combined Entity4)
Corporate HQ	Hamburg	Dubai	Hamburg
Alliance membership	G6 (until 31 March 2017)	Ocean 3 (until 31 March 2017)	The Alliance (since 1 April 2017)
Services	118	45	120
Vessels [#]	172	58	219
Capacity [TEU m]	1.0	0.6	1.6
Container [TEU m]	1.6	0.7	2.3
Employees	9,413	3,534	12,567

At a glance Deal rationale

1 Deliverables

Total synergies of USD 435 m p.a. to be achieved from 2019 onwards – Significant synergy ramp-up in 2018 expected

Synergy potential, full run-rate [USD m]

Total transaction and integration related one-off costs are expected to amount to USD 130 m1)

s e	Network	Overhead	Other (terminals, equipment and intermodal)
gi r e n y S	 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)	 Lower container handling rates per vendor/location  Imbalance reduction and leasing costs optimization  Optimization of inland haulage network  Best practice sharing

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

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Supply: Orderbook remains at a historically low level, while almost no idle capacity is available

[TEU m, %] 8 7 6 5 4 3 2 1 0 0.5 2010 0.3 2007 6.5 61% 2015 3.8 19% 2.0 2014 3.3 18% 1.4 2013 3.6 3.9 27% 0.2 2009 5.0 38% 0.4 2008 6.0 50% 21% 1.0 2012 3.4 21% 0.5 2011 4.3 28% 2018E 2.7 13% 1.6 2017 2.8 13% 1.7 2016 3.2 16% 1.7 Orderbook-to-fleet Orders placed Orderbook Vessels > 14,000 TEU Share of World Fleet

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

Vessel deliveries by year [TEU m] Supply / demand balance

Note: Vessel deliveries 2018E-2020E based on MDS Transmodal data including slippage; Supply based on Drewry data including slippage and scrapping

Source: Drewry (4Q), MDS Transmodal (February 2018), IHS Global Insight (November 2017))

Contracted freight rates have shown continuous recovery and slightly less volatility

Comprehensive Index (CCFI)

Shanghai – USA (CCFI)

Shanghai – Europe (CCFI)

Shanghai – Latin America (CCFI)

Current consolidation wave leads to higher concentration

Note: Diagram assuming that all currently announced mergers (NYK & MOL & K-Line, COSCO & OOCL) will receive regulatory Source: Drewry (4Q17), MDS Transmodal (January 2018, October 2013) approvals and are executed as announced. Simple sum of stand-alone operating capacity as of January 2018.

3 Financials

On a pro-forma basis: Transport volume was up by 4.8% YoY, while freight rates have exceeded previous year's level by 9.4%

Transport volume [TEU m] Freight rate [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. All information on FY 2017 financials is preliminary and unaudited.

3 Financials

We have achieved a significantly improved EBIT of USD 466 m while EBITDA almost doubled to USD 1,198 m in 2017

Operational KPIs

	Q4 2017	Q4 2016	∆%	FY 2017	FY 2016	∆%
Transport volume [TTEU]	2,774	1,949	+42%	9,803	7,599	+29%
Freight rate [USD/TEU]	1,030	1,033	0%	1,051	1,036	+1%
Revenue [USD m]	3,119	2,182	+43%	11,286	8,546	+32%
EBITDA [USD m]	390	246	+56%	1,198	671	+79%
EBITDA margin	12.5%	11.3%	+1.2 ppt	10.6%	7.9%	+2.7 ppt
EBIT [USD m]	167	111	+51%	466	140	+234%
EBIT margin	5.4%	5.1%	+0.3 ppt	4.1%	1.6%	+2.5 ppt

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. All information on FY 2017 financials is preliminary and unaudited.

3 Financials

Solid equity at USD 7.3 bn and strong liquidity reserve at USD 1.3 bn as well as higher net debt as a result of the merger with UASC

Equity base [USD bn] Net debt [USD bn]

Liquidity position [USD bn]

Comments

• Strong liquidity reserve of USD 1.3 bn
• Capital Increase of USD 413.4 m in October has strengthened equity
• Net debt increased compared to 31.12.2016 as a result of first time consolidation of UASC Group

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. All information on FY 2017 financials is preliminary and unaudited.

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4 Way Forward

Hapag-Lloyd with clearly defined financial policy

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

…and lower bond yields

Bonds trading

HL EUR 7.75% 2018 HL EUR 7.50% 2019 HL EUR 6.75% 2022 HL EUR 5.125% 2024

	EUR Bond 2024	EUR Bond 2022	EUR Bond 2019	EUR Bond 2018
Listing	Open market of the Luxembourg Stock Exchange (Euro MTF)
Volume	EUR 450 m	EUR 450 m	m2) EUR 250	EUR 200 m1)
ISIN / WKN	XS1645113322	XS1555576641 / A2E4V1	XS1144214993 / A13SNX	XS0974356262 / A1X3QY
Maturity Date	Jul 15, 2024	Feb 1, 2022	Oct 15, 2019	Oct 1, 2018
Redemption Price	as of July 15, 2020:102.563%; as of July 15, 2021:101.281%; as of July 15, 2022:100%	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	5.125%	6.75%	7.50%	7.75%

1) Full redemption on 1 October 2017; 2) Full Redemption on 15 October 2017

Supply: Scrapping expected to stay at previous year's level, while net capacity growth slightly exceeds last year's growth

Net Capacity Growth 2018E

Scale: On important trades TOP 5 players now make up more than 64% capacity share

TOP 5 concentration on individual trades (2013 versus 2018)

2013 2018 (incl. announced mergers)

Note: Diagram assuming that all currently announced mergers (COSCO & OOCL; NYK & MOL & K-Line) will receive regulatory approvals and are executed as announced. Simple sum of stand-alone operating capacity as of February 2018. Source: Alphaliner monthly newsletter (June 2013 / February 2018)

Spot rates with continued recovery since historic low in Q2 2016

Comprehensive Index (SCFI)

Shanghai – USA (SCFI)

Shanghai – Europe (SCFI)

Shanghai – Latin America (SCFI)

Capital increase successfully completed – Key terms of the rights issue

Offer size	 11,717,353 new shares (c. 7.1 % of current share capital), resulting in EUR 351.5 m of gross proceeds
Subscription price	 EUR 30 per share (17.8 % discount to XETRA closing price as of 27 September 2017, 16.8 % discount to TERP)
Use of proceeds	 Repayment of existing indebtedness, with any remainder to be used for general corporate purposes
Listing	 Regulated market of Frankfurt Stock Exchange (Prime Standard) and the regulated market of the Hamburg Stock Exchange
Distribution	 Public offer in Germany and Luxembourg  Offering in the US to QIBs under Rule 144A  Private placement to institutional investors outside the US in reliance on Reg S
Take-up ratio	 96%

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