Hapag-Lloyd AG

Investor Presentation • Nov 13, 2020

Investor Presentation 9M 2020 Results Hamburg, 13 November 2020

Opening Remarks

1	Current situation	Performance of container shipping market and Hapag-Lloyd in Q3 better than anticipated Idle fleet continues to decline from record high in May as capacity is coming back into the market Performance Safeguarding Program running successfully
2	Financials	In spite of COVID-19, we were able to improve profitability and to strengthen our balance sheet While transport volumes recovered gradually in Q3, we experienced stable freight rates, lower bunker prices and benefited from active cost management S&P and Moody's acknowledged our long-term performance by upgrading our credit rating to BB-/Ba3
3	Market update	Container transport volumes are gradually recovering, but market conditions remain volatile and mixed Flexible capacity management remains necessary in order to adequately adjust supply to volatile demand Container shortage in Asia is currently the limiting factor to volume growth in Q4
4	Way forward	Earnings guidance has been updated to reflect better than expected business development in Q3 and strong Q4 volume outlook Focus on execution of the Performance Safeguarding Program and risk adequate liquidity steering Continue to roll-out and execute our Strategy 2023 to mitigate delays in implementation

1 Current situation

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Global volumes have gradually recovered in Q3 2020, mainly driven by exports from Asia – available capacity have adjusted accordingly

Development of weekly capacity in 2020 Development of global transport volume [TEUm 1) ] Q1 Q2 40.2 Q3 43.2 38.8 43.4 39.3 44.3 -3.5% -9.6% +2.8% Idle fleet [TTEU] - 3.5% TEU 122.5 m 9M 2020 TEU 126.8 m 9M 2019 0 500 1,000 1,500 2,000 2,500 3,000 Share of world fleet 1.8%2) Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 70% 80% 90% 100% 110% 120% Jan Feb Mar Apr May Jun Jul Aug Sep Transpacific Far East 2019 2020

Current situation

In light of rising demand, spot freight rates have increased in Q3 2020 while bunker rates remained fairly stable

Bunker price development

1 Current situation

While we are currently seeing a gradual market recovery, COVID-19 uncertainties remain – but we stay focused

OUR TEAM

• We continue to actively track worldwide business continuity risk levels.
• In the light of increasing COVID-19 numbers worldwide, employees are further encouraged to work from home where possible.
• Due to our continuous efforts, we have kept crew changes at a good level, but the situation remains challenging.

OUR BUSINESS OUR FOCUS

• Volumes recovered somewhat in Q3 but remain well below previous year's level.
• Stable freight rates and implemented savings measures have helped us to offset weak demand situation.
• S&P and Moody's acknowledged our long-term efforts to improve our balance sheet structure through continuous operational improvements and debt repayment by upgrading our credit rating to BB-/Ba3.

• Performance Safeguarding Program (PSP) on track, cost saving measures with positive impact across all categories, almost 80% of our FY target has been achieved already.
• We actively keep track on the execution of our Strategy 2023, and offer total visibility of our quality to customers worldwide – individual quality performance can now be reviewed in the new "Customer Dashboard" on our website.

USD m

We were able to improve profitability and to strengthen our balance sheet in the first 9 months of 2020

ROIC %

8.9%

(6.5%)

Operational KPIs P&L effects

Volume TTEU	8,696 (9,011)	Volume declined by 3.5% YoY due to COVID-19 impact on almost all trades, but mainly on main East-West trades	Revenue USD m	10,525 (10,654)	9M revenue decreased slightly (-1.2% YoY) due to lower transport volumes
Rate USD/TEU	1,097 (1,075)	Average freight rate increased by 2.0% YoY	EBITDA USD m	2,044 (1,697)	EBITDA increased by USD 347 m on the back of a strict cost management and lower bunker expenses
Bunker USD/mt	402 (425)	Average bunker consumption price decreased slightly by 23 USD/mt due to a drop of bunker market prices	EAT USD m	605 (333)	Net profit nearly doubled YoY, interest result improved due to bond repayments in 2019
Balance sheet			Financial KPIs
Assets USD m	18,545 (18,182)	Total assets increased by USD 363 m vs. 31.12 mainly due to higher cash	FCF USD m	1,866 (1,483)	Strong Free Cash Flow generation due to improved profitability and low investments

Liquidity 1,546 … and to increase liquidity as a precautionary measure (1,159)

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Earnings increased on the back of strict cost management driven by our PSP program and lower bunker expenses

Volumes bottomed out in Q2 and gained momentum in Q3, 9M 2020 volumes declined in-line with market trend by 3.5% YoY

Transport volume development by trade Q1 2019 – Q3 2020 [TTEU]

9

Freight rates were fairly stable throughout the first 9 months despite very volatile bunker price trend

10

Unit cost were flat, PSP savings and lower bunker cost were offset by higher D&A expenses

Transport expenses per unit [USD/TEU]

• PSP measures have helped to reduce ex bunker unit cost in spite of lower volumes
• In addition, costs for "Vessel and voyage" decreased due to a higher share of charter vessels considered as Right of Use (RoU) with a respective negative impact on depreciation.
• Besides the Rights of Use related increase, depreciation & amortization increased also due to investments in scrubbers

11

Good earnings development and prudent investment strategy boosted free cash flow to USD 1,866 m in 9M 2020

Cash flow 9M 2020 [USD m]

12

Net debt substantially reduced, leverage ratio down to 2.3x

S&P and Moody's upgraded our rating to highest level ever based on Hapag-Lloyd's performance over the last couple of years

Historical Ratings and Outlook

3 Market update

14

Container transport volumes are significantly affected by COVID-19, but the impact has been less severe – recovery faster than expected

GDP vs. global container volume growth [%]

3 Market update

15

As demand picks up gradually, idle fleet has decreased to an absolute minimum – Orderbook down to below TEU 2 m and 8% of global fleet

Orderbook-to-fleet Newly placed orders

[TEU m]

3 Market update

16

Flexible operational measures continue to be necessary to ensure adequate supply in a volatile and difficult to predict demand situation

Net capacity growth in 2020e

Supply / Demand balance

4 Way forward

Earnings guidance updated to reflect better than expected business development and strong Q4 volume outlook

	2018 FY 2019	Initial Guidance 2020	Updated Guidance 2020
Transport volume	12,037 TTEU	Increasing slightly	Decreasing slightly
Average freight rate	1,072 USD/TEU	Increasing slightly	Increasing slightly
Average bunker price	416 USD/mt	Increasing clearly	Decreasing moderately
EBITDA	EUR 1,986 m	EUR 1.7 – 2.2 bn	EUR 2.4 – 2.6 bn
EBIT	EUR 811 m	EUR 0.5 – 1.0 bn	EUR 1.1 – 1.3 bn

4 Way forward

Our priorities for the coming months

Ensure the safety and health of our employees

Continue to follow a prudent financial policy with focus on cost and risk adequate liquidity steering

Keep track on execution of our Strategy 2023

Continuously monitor the global economic impact of the COVID-19 pandemic and adapt to evolving market conditions

Hapag-Lloyd with an equity ratio of 42.0% and a gearing of 77.3%

million USD	30.9.2020	31.12.2019
Assets
Non-current assets	15,517.2	15,501.0
of which fixed assets	15,440.1	15,393.6
Current assets	3,027.5	2,680.7
of which cash and cash equivalents	961.1	574.1
Total assets	18,544.7	18,181.7
Equity and liabilities
Equity	7,783.8	7,430.3
Borrowed capital	10,760.9	10,751.4
of which non-current liabilities	6,146.5	6,269.4
of which current liabilities	4,614.4	4,482.0
of which financial debt and lease liabilities	6,980.4	7,179.6
of which non-current financial debt and lease liabilities	5,588.1	5,786.6
of which current financial debt and lease liabilities	1,392.3	1,393.0
Total equity and liabilities	18,544.7	18,181.7

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

million USD	30.9.2020	31.12.2019
Financial debt and lease liabilities	6,980.4	7,179.6
Cash and cash equivalents	961.1	574.1
Restricted Cash	–	–
Net debt	6,019.3	6,605.4
Unused credit lines	585.0	585.0
Liquidity reserve	1,546.1	1,159.1
Equity	7,783.8	7,430.3
Gearing (net debt / equity) (%)	77.3	88.9
Net debt to EBITDA1	2.3x	3.0x
Equity ratio (%)	42.0	40.9

Hapag-Lloyd with positive EBIT of USD 937.3 m in 9M 2020

Income statement [USD m]

				QoQ	YoY
million USD	Q3 2020	Q2 2020	Q3 2019	Change	change	9M 2020	9M 2019	Change
Revenue	3,519.4	3,321.2	3,607.5	6.0%	–2.4%	10,524.6	10,654.1	–1.2%
Transport expenses	–2,486.1	–2,295.4	–2,736.7	8.3%	–9.2%	–7,696.0	–8,187.4	–6.0%
Personnel expenses	–201.1	–184.3	–191.8	9.1%	4.9%	–576.0	–566.6	1.7%
Depreciation, amortisation and impairment	–354.6	–382.9	–334.7	–7.4%	5.9%	–1,078.6	–975.0	10.6%
Other operating result	–86.5	–78.5	–74.4	–10.2%	–16.3%	–236.8	–235.5	–0.6%
Operating result	391.1	380.1	269.9	2.9%	44.9%	937.3	689.7	35.9%
Share of profit of equity-accounted investees	10.6	7.1	11.3	48.0%	–6.8%	27.9	31.1	–10.4%
Result from investments	0.1	–0.1	1.2	n.m.	–92.7%	–0.2	1.4	n.m.
Earnings before interest and tax (EBIT)	401.7	387.1	282.4	3.8%	42.2%	964.9	722.2	33.6%
Interest result	–93.9	–87.8	–103.1	7.0%	–9.0%	–318.6	–357.2	–10.8%
Other financial items	–4.8	–1.9	3.3	156.0%	n.m.	–1.8	2.3	n.m.
Income taxes	–12.8	–10.4	–14.5	23.1%	–12.0%	–39.8	–34.0	16.9%
Group profit / loss	290.3	287.1	168.1	1.1%	72.7%	604.8	333.3	81.4%

Interest burden clearly reduced – extraordinary valuation effects weigh on financial result

Extraordinary interest result items [USD m] HLAG Bond trading

Comments

• On the back of successful deleveraging and the early repayment of our 6.75% bond initially due 2022, interest result has substantially improved
• Market turbulences led to a devaluation of interest swaps and the early bond repurchase option in total of USD -32 million in 9M 2020

Bunker expenses per unit decreased by 5% YoY mainly due lower average bunker prices in 9M 2020

Bunker price development

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Well balanced maturity structure of financial liabilities

Financial Debt Profile as per 30 September 20201) , [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 30.09.2020 consists of transaction costs and accrued interest 2) Liabilities from lease and charter contracts consist of USD 54 million liabilities from former finance lease contracts and USD 1,561 USD million from lease contracts presented as on-balance financial liability due to first-time application of IFRS 16 3) Repayment amounts based on contractual debt as per 30.09.2020 Note: Rounding differences may occur

Hapag-Lloyd`s shareholder structure

Kühne Maritime GmbH / Kühne Holding AG

CSAV Germany Container Holding GmbH

Qatar Holding Germany GmbH HGV Hamburger Gesellschaft für Vermögens- und Beteiligungsmanagement mbH

The Public Investment Fund on behalf of the Kingdom of Saudi Arabia

Free Float

Share price development

Bond trading

HL EUR 6.75 % 2022 HL EUR 5.125% 2024

	EUR Bond 2024	EUR Bond 2022
Listing	Open market of the Luxembourg Stock Exchange (Euro MTF)
Volume	EUR 450 m	EUR 450 m
ISIN / WKN	XS1645113322	XS1555576641 / A2E4V1
Maturity Date	Jul 15, 2024	Feb 1, 2022
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%
Coupon	5.125%	6.75%

Financial Calendar 2021

January 2021	Preliminary Financials 2020
March 2021	Annual Report 2020
May 2021	Quarterly Financial Report Q1 2021
May 2021	Annual General Meeting 2021
August 2021	Half-year Financial Report 2021
November 2021	Quarterly Financial Report 9M 2021

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.

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Hapag-Lloyd Investor Relations Ballindamm 25 20095 Hamburg Tel: +49 (40) 3001-2896 ir@hlag.com All publication documents can be found here: https://www.hapag-lloyd.com/en/ir.html