Hapag-Lloyd AG

Investor Presentation • Aug 12, 2021

Investor Presentation

H1 2021 Results

Investor Presentation Hamburg, 12 August 2021

H1 2021 Results

Hamburg, 12 August 2021

Opening Remarks

1	Current developments	H1 2021 was driven by continued strong demand, high freight rates and operational bottlenecks To ease the tight market situation and improve service quality we have launched several initiatives In addition, we successfully closed the acquisition of NileDutch and expanded our vessel investments
2	Financials	Earnings increased very strongly on the back of higher freight rates and transport volumes Rising transport expenses as a result of supply-chain disruptions and higher charter rates Balance sheet ratios improved further in spite of higher investments and dividend payments
3	Market Update	Supply-chain disruptions likely to persist at least until Q1 2022 Demand is expected to slightly outgrow supply in 2021e & 2022e Strong order activity in H1 2021 drove orderbook-to-fleet ratio up to currently 17% to 20%
4	Way forward	Unlike previously expected, earnings momentum is likely to remain very strong in H2 2021 We therefore upgraded our earnings outlook for FY 2021 We will focus on improving schedule reliability, service quality and customer satisfaction

1 Current developments

3

Unabated global demand and continued supply-chain disruptions led to a shortage of available transport capacity and rising freight rates

Monthly transport volume growth in H1 2021

• Demand growth has so far exceeded net capacity growth in 2021e
• The strong increase in demand in certain trades lead to major imbalances
• Due to the ongoing supply-chain disruptions, container usage time remains high and global schedule reliability remains low
• Drewry expects that ongoing port and hinterland congestion will lead to an effective capacity loss of 16% in 2021 (following a loss of 11% in 2020)
• Market sources expect port congestions and equipment shortages to last at least until Q1 2022

1 Current developments

To improve service quality, we have among other measures increased our vessel-, container-, personnel-, and IT capacity

• We bought second hand tonnage, chartered in additional vessels and deployed extraloaders where possible
• We have ordered significant additional amount of container boxes and increased repair and maintenance of older containers
• 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 added people and IT capacity to improve customer satisfaction and service quality

We have seen the first results of our initiatives, but overall service quality must improve further.

4

1 Current developments

We successfully closed the acquisition of NileDutch, expanded our vessel investments and made further progress on Strategy 2023…

Successfully closed the acquisition of NileDutch Integration expected to be completed by end of 2021

Opened a new office in Senegal to further strengthen our presence in Africa

Ordered additional six LNG powered 23,500+ TEU vessels

Started vaccination campaigns and launched new hybrid working models

Launched initiatives to provide full transparency on vessel arrivals

6

…and developed the framework of our sustainability strategy, which will set our course for the next 10 years

7

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

Operational KPIs P&L effects

Volume TTEU	6,004 PY: 5,755	Volume increased by 4.3% YoY as a result of overall demand growth	Revenue USD m	10,551 PY: 7,005	Very strong revenue recovery (USD +3,546 m) due to higher freight rates and volumes
Rate USD/TEU	1,612 PY: 1,104	Average freight rate increased by 46% YoY mainly due to continuously high demand and tight availability of vessel and container capacity	EBITDA USD m	4,240 PY: 1,287	EBITDA increased by USD +2,953 m on the back of higher freight rates and lower bunker expenses…
Bunker USD/mt	421 PY: 448	Average bunker consumption price decreased by 27 USD/mt due to lower bunker market prices	EAT USD m	3,284 PY: 314	…which also led to a substantially increased net profit (USD +2,970 m)
	Balance sheet		Financial KPIs
Assets USD m	21,899 PY: 18,640	Total assets increased by USD +3,529 m vs. 31 Dec 2020 mainly due to higher cash and add. RoU for vessels and containers	FCF USD m	3,371 PY: 1,177	Strong Free Cash Flow generation due to improved profitability …
Fin. Debt USD m	6,296 PY: 6,305	Fin. Debt remained unchanged mainly unchanged vs. 31 Dec 2020 as debt repayments were offset by higher IFRS 16 lease liabilities	Net debt / EBITDA	0.6x PY: 2.6x	…with the result that net debt to EBITDA was further reduced substantially
Liquidity USD m	2,977 PY: 1,421	Liquidity increased significantly by USD 1,556 m vs. 31 Dec 2020 driven by a strong cash flow generation	ROIC %	47.0% PY: 7.7%	Return on Invested Capital exceeded WACC of 6.0% clearly

8

After a strong start to the year, Q2 earnings improved even further

9

H1 2021 transport volumes increased mainly on dominant legs, while congestion impeded stronger overall volume growth

Transport volume development by trade [TTEU]

10

Freight rates increased strongly by ~46% YoY due to tight capacity situation

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

11

Operational challenges resulted in clearly higher transport expenses per unit

Transport expenses per unit [USD/TEU]

• Bunker expenses decreased by 11.8% on the back of lower average bunker consumption prices
• Negative effects of port congestions, leading to increased costs in "Handling and Haulage" (+11.7%) as well as in "Equipment and Repositioning" (+5.4%)
• "Depreciation and amortization" almost flat YoY as higher D&A expenses were offset by higher volumes

12

Free cash flow surged to USD 3.4 bn – Capex will accelerate in H2

Cash flow H1 2021 [USD m]

13

Balance sheet ratios significantly improved – Net Debt further reduced by USD 1.5 bn while Net Leverage down to below 1.0x

3 Market Update

On the back of the economic recovery, global container transport volumes are expected to rise significantly in 2021e

GDP vs. global container volume growth [%]

14

3 Market Update

15

Strong order activity in H1 2021 drove the orderbook-to-fleet ratio to roughly 20 % …

3 Market Update

… but only limited capacity will be delivered in 2021e and 2022e, and scrapping is expected go up significantly in the years thereafter

Supply / Demand balance

Demand Supply

16

4 Way forward

17

Earnings momentum likely to remain very strong in H2 – FY 2021 EBITDA and EBIT outlook raised

	FY 2020	Previous Guidance for FY 2021	New Guidance for FY 2021
Transport volume	11,838 TTEU	Increasing slightly	Increasing slightly
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	Increasing clearly*	USD 9.2 – 11.2 bn EUR 7.6 – 9.3 bn
EBIT	USD 1,501 m	Increasing clearly*	USD 7.5 – 9.5 bn EUR 6.2 – 7.9 bn

Global demand for container transport remains at a high level.

• Operational disruptions along the entire supply chain continue to cause significant delays and thereby contribute to the shortage of available transport capacity.
• Given these circumstances, the Executive Board of Hapag-Lloyd raised its earnings outlook for the 2021 financial year on 30 July 2021.
• Unlike previously expected, earnings momentum is likely to remain very strong in the second half-year.

* gradual normalisation of the earnings trend expected for the second half-year 2021

4 Way forward

Our focus for H2 2021 and beyond:

Appendix

19

Hapag-Lloyd with an equity ratio of 49.3% and a gearing of 36.1%

million USD	30.6.2021	31.12.2020
Assets
Non-current assets	16,293.4	15,508.3
of which fixed assets	16,208.2	15,413.3
Current assets	5,605.8	3,131.9
of which cash and cash equivalents	2,391.5	836.4
Total assets	21,899.3	18,640.2
Equity and liabilities
Equity	10,805.9	8,252.8
Borrowed capital	11,093.4	10,387.4
of which non-current liabilities	5,468.4	5,731.3
of which current liabilities	5,624.9	4,656.1
of which financial debt and lease liabilities	6,296.1	6,305.1
of which non-current financial debt and lease liabilities	4,928.4	5,119.6
of which current financial debt and lease liabilities	1,367.8	1,185.5
Total equity and liabilities	21,899.3	18,640.2

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

million USD	30.6.2021	31.12.2020
Financial debt and lease liabilities	6,296.1	6,305.1
Cash and cash equivalents	2,391.5	836.4
Net debt	3,904.6	5,468.8
Unused credit lines	585.0	585.0
Liquidity reserve	2,976.5	1,421.4
Equity	10,805.9	8,252.8
Gearing (net debt / equity) (%)	36.1	66.3
Net debt to EBITDA¹	0.6x	1.8x
Equity ratio (%)	49.3	44.3

A Appendix

Hapag-Lloyd with positive EBIT of USD 3,487.3 m in H1 2021

Income statement [USD m]
				QoQ	YoY
million USD	Q2 2021	Q1 2021	Q2 2020	Change	change	H1 2021	H1 2020	Change
Revenue	5,648.1	4,903.2	3,321.2	15.2%	70.1%	10,551.3	7,005.2	50.6%
Transport expenses	–2,999.4	–2,737.0	–2,295.4	9.6%	30.7%	–5,736.4	–5,209.9	10.1%
Personnel expenses	–232.6	–198.1	–184.3	17.4%	26.2%	–430.7	–374.8	14.9%
Depreciation, amortisation
and impairment	–382.4	–370.0	–382.9	3.3%	–0.1%	–752.4	–724.0	3.9%
Other operating result	–98.6	–60.2	–78.5	–63.8%	–25.6%	–158.7	–150.3	–5.6%
Operating result	1,935.1	1,538.0	380.1	25.8%	409.1%	3,473.1	546.2	535.9%
Share of profit of equity-ac
counted investees	12.8	1.5	7.1	743.9%	78.7%	14.3	17.3	–17.6%
Result from investments	0.0	–0.0	–0.1	n.m.	–104.9%	–0.0	–0.3	n.m.
Earnings before interest and
tax (EBIT)	1,947.9	1,539.5	387.1	26.5%	403.2%	3,487.3	563.2	519.2%
Interest result	–95.0	–77.5	–87.8	22.5%	8.2%	–172.5	–224.7	–23.2%
Other financial items	–4.4	2.1	–1.9	–305.0%	n.m.	–2.2	2.9	n.m.
Income taxes	–15.3	–13.3	–10.4	15.2%	47.7%	–28.6	–27.0	5.8%
Group profit / loss	1,833.2	1,450.7	287.1	26.4%	538.5%	3,284.0	314.4	944.4%

Well balanced maturity structure of financial liabilities

Financial Debt Profile as per 30 June 20211) , [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 June 2021 consists of transaction costs and accrued interest 2) Liabilities from lease and charter contracts consist of USD 40 million liabilities from former finance lease contracts and USD 2,227 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 June 2021 4) Total financial liabilities without Finance Leases at 4.066 USD m Note: Rounding differences may occur

Freight rate development

Shanghai – USA West Coast [USD/FEU]

Shanghai – North Europe [USD/TEU]

Shanghai – Latin America [USD/TEU]

A Appendix

Share price development

Nov/16 Indexed Price Performance since 1 January 2021 0% 100% 200% 300% 400% 500% 600% Jan Feb Mar Apr May Jun Jul Aug HLAG Evergreen OOCL Maersk COSCO

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	104.2
Listing	Open market of the Luxembourg Stock Exchange (Euro MTF)
Volume	EUR 300 m
ISIN / WKN	XS2326548562	100
Maturity Date	April 15, 2028
Redemption Price	as of 15 April 2024: 101.375% as of 15 April 2025: 100.688% as of 15 April 2026: 100%	HL EUR 2.500% 2028
Coupon	2.500%	03-21 04-21 05-21 06-21 07-21 08-21 09-21

Shareholder structure

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

Financial Calendar 2021

27 January 2021 Preliminary Financials FY 2020 18 March 2021 Annual Report FY 2020 12 May 2021 Quarterly Financial Report Q1 2021

28 May 2021 Virtual Annual General Meeting 2021

12 August 2021 Half-year Financial Report 2021

12 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.

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

29