Hapag-Lloyd AG — Investor Presentation 2022

May 12, 2022

Investor Presentation

Q1 2022 Results

Hamburg, 12 May 2022

Opening Remarks

1 CURRENT SITUATION Severe wave of COVID-19 in China impacted port activities and other logistics of container shipping Spot rates ex-China softened as result of seasonality and lower volumes due to lockdowns Q1 2022 earnings increased further above expectations 2 Peak freight rates more than offset significantly increased operational expenses FINANCIALS All financial KPIs remain on an exceptional level Volume growth expected to soften as high inflation and geopolitical risks weigh on consumer
spending
3 MARKET UPDATE Strong order activity continued in Q1, pushing orderbook-to-fleet ratio above 25%
The current market situation is not expected to improve until 2nd half of the year at the earliest
FY 2022 outlook raised as second quarter performance should also exceed previous expectations 4 WAY FORWARD Newly concluded long-term and multi-year contracts will offer some protection from falling spot rates We will focus on our Simplify, Strengthen & Invest measures in line with our Strategy 2023 targets

1 Current Situation

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Port congestions worsened due to Russia/Ukraine war & restrictions in China – Spot rates ex China are down since peak in January

GLOBAL PORT CONGESTION INDEX [TEU m, 7dma]

FREIGHT RATE VS. BUNKER PRICE DEVELOPMENT [USD/TEU] [USD/MT]

1 Current Situation

We made further progress along our strategic goals to Simplify, Strengthen & Invest

FLEET

• Roll-out of Fleet Upgrade Program started with propeller refit to increase fuel efficiency
• Active management of our charter vessel portfolio and purchase of 2nd hand vessels
• Order of real-time tracking devices for 1.4 million dry containers in order to provide full visibility of any container movement worldwide

SERVICES

• Update of THE Alliance network to ensure a comprehensive port coverage
• Launch of new services (CGX, TEX, MSW)

M&A

• Acquisition of Deutsche Afrika-Linien (DAL) signed on 11 March 2022 – deal closing and integration preparation is ongoing
• Regulatory approval for JadeWeserPort participation received
• Signing of "Damietta Alliance" JV to develop and operate a new container terminal in Damietta (Egypt)

HUMANITARIAN INITIATIVES

We are working closely with international organizations and our logistics partners by transporting relief goods and supporting refugees as well as our local employees in Ukraine

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Exceptional profitability level with positive impact on all financial KPIs

OPERATIONAL KPIs			P&L EFFECTS
2,987 Volume TTEU PY: 2,975		Transport volume remained at the previous year's level (0.4% YoY) as a result of the strained supply chains	Revenue USD m	8,956 PY: 4,903		Revenue increased by USD +4.1 bn,…
Rate 2,774 USD/TEU PY: 1,509		Average freight rate increased by 84% YoY due to high demand and tight capacity availability	EBITDA USD m	5,307 PY: 1,909		…EBITDA by USD +3.4 bn and …
Bunker 613 USD/mt PY: 384		Average bunker consumption price increased by 229 USD/mt due to higher bunker market prices	EAT USD m	4,684 PY: 1,451		…net profit by USD +3.2 bn mainly due to higher freight rates
BALANCE SHEET1)				FINANCIAL KPIs
Assets 34,790 USD m PY: 30,236		Total assets increased by USD 4.6 bn vs. 31 Dec 2021 due to higher investments, more cash and higher receivables	FCF USD m	4,628 PY: 1,554		Free Cash Flow generation turned out significantly higher than in the first quarter of 2021
Fin. Debt 5,995 USD m PY: 6,222		Financial debt fell slightly as higher IFRS 16 lease liabilities were more than offset by redemption payments	Leverage	<0x PY: 1.0x		Net liquidity increased further to USD 6.9 bn

2 Financials

Q1 2022 earnings clearly above PY – Peak freight rates more than offset significantly increased operational expenses

REVENUE [USD m] EBITDA [USD m]

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EBIT [USD m] GROUP PROFIT [USD m]

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Despite strong demand, transport volumes were flat as a result of strained supply chains

TRANSPORT VOLUME DEVELOPMENT BY TRADE [TTEU]

• The strong demand for exported goods from Asia led to an increase in transport volumes on the Middle East and Far East trades.
• On the Africa trade, the transport volume increased primarily due to the integration of Nile Dutch.
• The lower transport volume on the Intra-Asia and Latin America trade was essentially due to the optimised repositioning of containers to other trades.
• Despite high demand on the Atlantic and Transpacific trades, the congestion of local port infrastructure led to a decline in transport volumes.

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Freight rates increased strongly by ~84% YoY – bunker costs were also considerably up

FREIGHT RATE [USD/TEU] VS. BUNKER PRICE DEVELOPMENT [USD/MT]

2 Financials

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Transport expenses increased further due to clearly higher bunker prices and ongoing operational challenges

TRANSPORT EXPENSES PER UNIT [USD/TEU]

• "Bunker" expenses (+68%) increased on the back of higher average bunker consumption prices
• "Handling and Haulage" (+14%) and "Equipment and Repositioning" (+14%) expenses were up due to higher storage and hinterland transportation costs
• "Vessels and voyage" expenses (+11%) increased due to higher operating expenses for chartered vessels and rising slot charter costs on 3rd party vessels
• "Depreciation and amortization" expenses (+39%) were up primarily due to the rise in the percentage of vessels chartered in on a mediumterm basis at simultaneously higher charter rates

2 Financials

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Strong cash generation continued in Q1 2022 - Liquidity reserve now at 13.6 USD bn

CASH FLOW Q1 2022 [USD m]

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Net cash position further expanded to USD 6.9 bn

LIQUIDITY RESERVE [USD m]

COMMENTS

• Equity increased substantially due to high profitability level
• Equity ratio now above 66%
• Financial debt was slightly reduced while net cash position increased clearly due to higher cash
• RCF volume partly expand and extend
• S&P upgraded our credit rating the 3rd time in two years now to BB+

3 Market Update

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Order activity picked up pace again in Q1 – Tight vessel availability reflected in low level of idle fleet

NEWLY PLACED ORDERS

3 Market Update

Slower expected demand growth and influx of additional tonnage from 2023 onwards should ease tight capacity situation

SUPPLY/DEMAND BALANCE

[TEU m, %]

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Global Container Volume Growth [%] Global Fleet Supply Growth [%]

Note: Global Container Trade Growth: CTS data until 2021; Seabury for 2022e onwards.

Demand growth is expected to slow down to more sustainable levels

Capacity influx will increase from 2023 onwards to cater for higher demand

Sustainability efforts might accelerate scrapping

Demand/supply fundamentals to become more balanced in the years to come

4 Way Forward

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Based on continuously strong results expected for H1 2022, we have updated our earnings outlook on 28 April 2022

	FY 2021	FY 2022 Outlook	Updated FY 2022 Outlook	RATIONALE
TRANSPORT VOLUME	11,872 TTEU	Increasing slightly	On previous year's level	 Strong operational performance above expectations recorded in first quarter
BUNKER CONSUMPTION PRICE	475 USD/mt	Increasing clearly	Increasing clearly	 Based on current business performance, the second quarter should also exceed previous expectations
FREIGHT RATE	2,003 USD/TEU	Increasing moderately	Increasing clearly	 The newly concluded long term and multi-year contracts should offer some protection from falling spot rates
EBITDA	USD 12,842 m	USD 12 – 14 bn EUR 10.7 – 12.4 bn	USD 14.5 – 16.5 bn EUR 13.6 – 15.5 bn	 In view of the ongoing COVID-19 pandemic and the war in Ukraine, the forecast is subject to considerable
EBIT	USD 11,111 m	USD 10 – 12 bn EUR 8.9 – 10.7 bn	USD 12.5 – 14.5 bn EUR 11.7– 13.6 bn	uncertainty

4 Way Forward

Our focus for 2022 and beyond: Simplify, Strengthen & Invest

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A Appendix

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Hapag-Lloyd with an equity ratio of 66.2% and a gearing of below 0

million USD	31.3.2022	31.12.2021
Assets
Non-current assets	17,206.9	17,298.4
of which fixed assets	17,098.2	17,208.5
Current assets	17,583.1	12,937.1
of which cash and cash equivalents	12,920.4	8,741.4
Total assets	34,789.9	30,235.5
Equity and liabilities
Equity	23,039.5	18,292.2
Borrowed capital	11,750.4	11,943.3
of which non-current liabilities	4,931.2	5,199.7
of which current liabilities	6,819.2	6,743.6
of which financial debt and lease liabilities	5,995.1	6,221.7
of which non-current financial debt and lease liabilities	4,484.0	4,684.0
of which current financial debt and lease liabilities	1,511.1	1,537.7
Total equity and liabilities	34,789.9	30,235.5

BALANCE SHEET [USD M] FINANCIAL POSITION [USD M]

million USD	31.3.2022	31.12.2021	31.3.2021
Financial debt and lease liabilities	5,995.1	6,221.7	6,255.2
Cash and cash equivalents	12,920.4	8,741.4	1,894.1
Net debt	–6,925.2	–2,519.7	4,361.1
Unused credit lines	725.0	585.0	585.0
Liquidity reserve	13,645.4	9,326.4	2,479.1
Equity	23,039.5	18,292.2	9,726.5
Gearing (net debt / equity) (%)	-30.1	-13.8	44.8
EBITDA	5,306.8	12,841.9	1,909.5
Net debt to EBITDA¹	<0	<0	1.0x
Equity ratio (%)	66.2	60.5	47.9

A Appendix

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Hapag-Lloyd with strong net profit of USD 4,683.5 m in Q1 2022

INCOME STATEMENT [USD M]

			QoQ	YoY
Q1 2022	Q4 2021	Q1 2021	Change	change
8,956.1	8,411.0	4,903.2	6.5%	82.7%
–3,313.1	–3,320.6	–2,737.0	–0.2%	21.0%
–235.7	–321.6	–198.1	–26.7%	19.0%
–516.0	–506.1	–370.0	1.9%	39.4%
–113.3	–100.9	–60.2	12.4%	88.4%
4,778.0	4,161.9	1,538.0	14.8%	210.7%
12.9	12.2	1.5	5.8%	749.9%
0.0	–0.9	–0.0	n.m.	n.m.
4,790.9	4,173.1	1,539.5	14.8%	211.2%
–53.9	–54.8	–77.5	–1.6%	–30.5%
–34.8	2.7	2.1	n.m.	n.m.
–18.7	–25.6	–13.3	–27.0%	40.4%
4,683.5	4,095.5	1,450.7	14.4%	222.8%

Well balanced maturity structure of financial liabilities

FINANCIAL DEBT PROFILE AS PER 31 MARCH 20221), [USD M]

Note: Rounding differences may occur

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1) Deviation from the total financial debt as shown in the balance sheet as per 31.03.2021 consists of transaction costs and accrued interest

2) Liabilities from lease and charter contracts consist of USD 29 million liabilities from former finance lease contracts and USD 2,614 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 31 March 2021

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

Bond trading

	EUR Bond 2028
Listing	Open market of the Luxembourg Stock Exchange (Euro MTF)
Volume	EUR 300 m
ISIN / WKN	XS2326548562
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%
Coupon	2.500%

Shareholder structure

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

A Appendix

Financial Calendar 2022

25 May 2022 Virtual Annual General Meeting 2022

11 August 2022 Half-year Financial Report 2022

10 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

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