Hapag-Lloyd AG

Investor Presentation • Nov 12, 2021

Investor Presentation

9M 2021 Results

Hamburg, 12 November 2021

Opening Remarks

1	Current developments	9M 2021 driven by continuing strong demand, infrastructure bottlenecks and high freight rates Acquisition of NileDutch completed, voyage cut-over started in October 2021
		Agreement signed for a participation in the JadeWeserPort in September 2021
2	Financials	Earnings continued to increase strongly on the back of higher freight rates and transport volumes Transport expenses increased as a result of supply-chain disruptions and generally higher costs Balance sheet ratios significantly improved driven by very strong earnings
3	Market Update	Demand is expected to slightly outgrow supply in 2021e & 2022e Supply-chain disruptions likely to persist at least until H1 2022 Vessel order activity slowed down in Q3 2021; orderbook-to-fleet ratio currently at around 22%
4	Way forward	Earnings momentum likely to remain strong for the rest of the year We therefore raised our earnings outlook for FY 2021 on 29 October Priorities for the next years and Sustainability Strategy to be presented at our vCMD on 17 November

… we have therefore implemented many countermeasures to limit the impact on our customers and to improve service quality

We moved capacity to high-demand trades and optimized our service network further

We re-routed cargo through alternative gate-ways to bypass congested ports

We bought second hand tonnage, chartered additional vessels and deployed extra-loaders

We have ordered additional containers and increased repair and maintenance of older ones

We added workforce, IT capacity and introduced new digital solutions to improve customer satisfaction and service quality

1 Current developments

We have closed the transaction with NileDutch and will invest in the JadeWeserPort, which will strengthen our offering in Germany

JadeWeserPort

• 30% stake in Container Terminal Wilhelmshaven (CTW) and 50% stake in Rail Terminal Wilhelmshaven (RTW)
• Strengthens position of German ports and reinforces our competitiveness, especially in the Far East trades
• Increased flexibility and shorter transit times
• Signing in September, closing expected in the following months

NileDutch

• Closing of the transaction in July
• Successful voyage cut-over started in October
• Goal is to fully integrate NileDutch until end of this year
• Q3 contribution of approx. 50 TTEU on the African trade

We have achieved an exceptionally strong result, further strengthened our balance sheet and earned our cost of capital

Operational KPIs P&L effects Balance sheet Financial KPIs Fin. Debt remained mainly unchanged vs. 31 Dec 2020 as debt repayments were offset by higher IFRS 16 lease liabilities Liquidity reserve increased significantly by USD 4.3 bn vs. 31 Dec 2020 driven by a strong cash flow generation Volume increased by 3.3% YoY as a result of overall demand growth as well as NileDutch Volume TTEU 8,980 PY: 8,696 Average freight rate increased by 66% YoY mainly due to continuously high demand and supply chain bottlenecks Rate USD/TEU 1,818 PY: 1,097 Average bunker consumption price increased by 50 USD/mt due to higher bunker market prices Bunker USD/mt 452 PY: 402 Very strong revenue increase (USD +7.4 bn) due to higher freight rates and volumes Revenue USD m 17,945 PY: 10,525 EBITDA increased significantly by USD +6.1 bn on the back of higher freight rates… EBITDA USD m 8,163 PY: 2,044 …which also led to a substantially increased net profit (USD +6.1 bn) EAT USD m 6,655 PY: 605 Strong Free Cash Flow generation due to high profitability … FCF USD m 6,597 PY: 1,866 …with the result that net debt to EBITDA was further reduced substantially Net debt / EBITDA 0.1x PY: 2.3x Return on Invested Capital exceeded WACC of 6.0% clearly ROIC % 59.6% PY: 8.9% Total assets increased by USD 7.2 bn vs. 31 Dec 2020 mainly due to higher cash and add. RoU for vessels and containers Assets USD m 25,841 PY: 18,640 Fin. Debt USD m 6,389 PY: 6,305 Liquidity USD m 5,766 PY: 1,421

7

After a strong H1 2021, Q3 earnings improved even further

8

Transport volumes increased by 3.3% YoY, but were negatively impacted by the ongoing disruption of global supply chains

Transport volume development by trade [TTEU]

• Strong demand for exported goods from Asia led to an increase in global transport volumes
• Intra-Asia volumes affected by network optimization and container repositioning to meet demand of exported goods from Asia to the rest of the world
• Transpacific trade massively impacted by congestion of port infrastructure and resulting delays

9

Freight rates increased strongly by ~66% YoY due strong demand and tight capacity situation but bunker costs are on a steady rise also

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

10

Operational challenges resulted in clearly higher transport expenses per unit

Transport expenses per unit [USD/TEU]

• Bunker expenses increased by 8.2% on the back of higher average bunker consumption prices
• Negative effects of operational disruptions, leading to higher costs in "Handling and Haulage" (+16.4%) as well as in "Equipment and Repositioning" (+8.2%)
• "Depreciation and amortization" increased by 10.0%, primarily due to the rise in the percentage of vessels chartered in at simultaneously higher charter rates

11

Free cash flow surged to USD 6.6 bn

Cash flow 9M 2021 [USD m]

12

Balance sheet ratios significantly improved – Net Debt further reduced by USD 4.3 bn while Net Leverage close to zero

3 Market Update

On the back of the economic recovery, global container transport volumes are expected to rise moderatley in the years to come

GDP vs. global container volume growth [%]

GDP Container volume growth

3 Market Update

14

Strong order activity since Q4 2020 drove orderbook-to-fleet ratio to roughly 22% but slowed down lately – idle fleet close to zero

3 Market Update

Recently ordered capacity will only come into the market in 2023/2024 – Scrapping is expected to rise significantly in the years to come

Supply / Demand balance

Demand Supply

4 Way forward

16

Earnings momentum likely to remain very strong in Q4 – FY 2021 EBITDA and EBIT outlook raised

	FY 2020	Previous outlook for FY 2021	Updated outlook for FY 2021
Transport volume	11,838 TTEU	Increasing slightly	On previous year's level
Bunker consumption price	379 USD/mt	Increasing clearly	Increasing clearly
Freight rate	1,115 USD/TEU	Increasing clearly	Increasing clearly
EBITDA	USD 3,082 m	USD 9.2 – 11.2 bn EUR 7.6 – 9.3 bn	USD 12.0 – 13.0 bn EUR 10.1 – 10.9 bn
EBIT	USD 1,501 m	USD 7.5 – 9.5 bn EUR 6.2 – 7.9 bn	USD 10.3 – 11.3 bn EUR 8.7 – 9.5 bn

How we look ahead:

Operational challenges remain, normalization not expected before H1 2022

Customer proximity and transparency is of utmost importance

Continue to follow a prudent financial policy and work on bringing down unit costs

Digital solutions more important than ever before

We will share with you our priorities until 2023 and beyond and present our Sustainability Strategy at our virtual Capital Markets Day on November 17th

Hapag-Lloyd with an equity ratio of 54.9% and a gearing of 8.5%

million USD	30.9.2021	31.12.2020
Assets
Non-current assets	16,699.1	15,508.3
of which fixed assets	16,612.3	15,413.3
Current assets	9,142.2	3,131.9
of which cash and cash equivalents	5,181.2	836.4
Total assets	25,841.2	18,640.2
Equity and liabilities
Equity	14,178.8	8,252.8
Borrowed capital	11,662.4	10,387.4
of which non-current liabilities	5,506.9	5,731.3
of which current liabilities	6,155.5	4,656.1
of which financial debt and lease liabilities	6,388.8	6,305.1
of which non-current financial debt and lease liabilities	4,975.0	5,119.6
of which current financial debt and lease liabilities	1,413.8	1,185.5
Total equity and liabilities	25,841.2	18,640.2

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

million USD	30.9.2021	31.12.2020
Financial debt and lease liabilities	6,388.8	6,305.1
Cash and cash equivalents	5,181.2	836.4
Net debt	1,207.7	5,468.8
Unused credit lines	585.0	585.0
Liquidity reserve	5,766.2	1,421.4
Equity	14,178.8	8,252.8
Gearing (net debt / equity) (%)	8.5	66.3
Net debt to EBITDA¹	0.1x	1.8x
Equity ratio (%)	54.9	44.3

A Appendix

21

Hapag-Lloyd with strong EBIT of USD 6,937.9 m in 9M 2021

Income statement [USD m]

			QoQ	YoY
Q3 2021	Q2 2021	Q3 2020	Change	change	9M 2021	9M 2020	Change
7,393.9	5,648.1	3,519.4	30.9%	110.1%	17,945.2	10,524.6	70.5%
–3,158.6	–2,999.4	–2,486.1	5.3%	27.1%	–8,895.0	–7,696.0	15.6%
–206.2	–232.6	–201.1	–11.4%	2.5%	–636.9	–576.0	10.6%
–472.4	–382.4	–354.6	23.6%	33.2%	–1,224.8	–1,078.6	13.6%
–113.3	–98.6	–86.5	–14.9%	–30.9%	–272.0	–236.8	–14.9%
3,443.4	1,935.1	391.1	77.9%	780.5%	6,916.5	937.3	637.9%
7.7	12.8	10.6	–40.0%	–27.6%	21.9	27.9	–21.4%
–0.5	–	0.1	n.m.	–667.0%	–0.5	–0.2	n.m.
3,450.5	1,947.9	401.7	77.1%	758.9%	6,937.9	964.9	619.0%
–62.9	–95.0	–93.9	–33.8%	–33.0%	–235.4	–318.6	–26.1%
1.5	–4.4	–4.8	–135.4%	n.m.	–0.7	–1.8	n.m.
–18.3	–15.3	–12.8	19.7%	43.6%	–46.9	–39.8	17.9%
3,370.8	1,833.2	290.3	83.9%	1,061.1%	6,654.8	604.8	1,000.4%

Well balanced maturity structure of financial liabilities

Financial Debt Profile as per 30 September 20211) , [USD m]

1) Deviation from the total financial debt as shown in the balance sheet as per 30.09.2021 consists of transaction costs and accrued interest 2)Liabilities from lease and charter contracts consist of USD 37 million liabilities from former finance lease contracts and USD 2,473 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 September 2021

Note: Rounding differences may occur

Freight rate development

Comprehensive Index [USD/TEU]

Shanghai – USA West Coast [USD/FEU]

Shanghai – North Europe [USD/TEU]

Shanghai – Latin America [USD/TEU]

A Appendix

Share price development

Indexed Price Performance since 1 January 2021

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

Bond trading

	EUR Bond 2028	106
Listing	Open market of the Luxembourg Stock Exchange (Euro MTF)	105 104
Volume	EUR 300 m	103,7 103
ISIN / WKN	XS2326548562	102
Maturity Date	April 15, 2028	101 100
Redemption Price	as of 15 April 2024: 101.375% as of 15 April 2025: 100.688% as of 15 April 2026: 100%	99 HL EUR 2.500% 2028
Coupon	2.500%	Mar-2021 May-21 Jul-21 Sep-21 Nov-21 Jan-22

Shareholder structure

The Public Investment Fund on behalf of the Kingdom of Saudi Arabia Kühne Maritime GmbH / Kühne Holding AG CSAV Germany Container Holding GmbH Qatar Holding Germany GmbH HGV Hamburger Gesellschaft für Vermögens- und Beteiligungsmanagement mbH Free Float

Financial Calendar 2022

January 2022	Preliminary Financials FY 2021
March 2022	Annual Report FY 2021
May 2022	Quarterly Financial Report Q1 2022
May 2022	Virtual Annual General Meeting 2022
August 2022	Half-year Financial Report 2022
November 2022	Quarterly Financial Report 9M 2022

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.

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