Hapag-Lloyd AG — Investor Presentation 2022

Nov 10, 2022

Investor Presentation

9M 2022 Results

Hamburg, 10 November 2022

Opening Remarks

STRATEGIC HIGHLIGHTS 1

• Expansion of terminal portfolio in line with our strategic agenda to Simplify, Strengthen & Invest
• Participation in Spinelli Group, a leading Italian ports operator with significant hinterland capabilities
• Acquisition of the Ports & Logistics division of SM SAAM S.A. with 10 terminals in the Americas

MARKET UPDATE Spot freight rates dropped clearly since August reflecting weakening demand

Congestion is easing due to lower container throughput, but situation is far from being normal

FINANCIAL HIGHLIGHTS 3

• Volumes remained flat while freight rates increased strongly due to the shortage of transport capacity
• 9M 2022 EBITDA improved to USD 16.6bn and net liquidity to USD 9.5bn
• Slowdown of demand in Q3 had no meaningful impact on results yet

• 2022 earnings outlook confirmed
• As expected, Q4 profitability will be impacted by softer spot rate environment
• Strong cash flow generation allows us to further execute on our Simplify, Strengthen & Invest measures

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Investing into terminal infrastructure has strong ties to many of the priorities in our Prepare For Tomorrow programme

SIMPLIFY

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3

Improve customer experience and reduce complexity

Segments & Experience

Network & Fleet

Hub & Transshipment Imbalance & Depots

STRENGTHEN

Double efforts to become "Number One for Quality"

Revenue Management Delivering Operational Quality

Digitalization and Innovation Growth in Attractive Markets

Inland & Superior Landside Sustainability & Decarbonization

INVEST

Investment in staff, sustainable assets and long-term competitiveness

People & Capabilities Larger & eco-friendly Vessels

Equipment & Container

IT and digital innovation

Build up infrastructure and adjacent services

1 Strategic Highlights

We have started to extend our terminal portfolio in line with our strategic agenda

RECENT TERMINAL PARTICIPATIONS OF HAPAG-LLOYD

1 Strategic Highlights

The participation in Spinelli with its Genoa gateway and hinterland access will help us strengthening our position in the Mediterranean

SPINELLI DEAL RATIONALE

• Container terminal and logistic player with terminals in Genoa and associated network of depots, warehousing and logistic facilities across Northern Italy
• Holds intermodal centers in Northern and Central Italy and offers departures of trains to most important hinterland locations in Northern Europe
• Strengthen our market position in the Mediterranean
• Improve our inland services and safeguard inland capacity in Italy and its hinterland together with a local partner

1 Strategic Highlights

In addition, the investment into SAAM Ports & Logistics is a perfect match to reinforce competitiveness within the Latin American market

SAAM DEAL RATIONALE

• Chilean terminal operator and logistics company
• Operates 8 terminals as majority/JV shareholder and is invested in 2 terminals as minority shareholder in 6 countries
• Offers full-service portfolio of an operator from dockage, wharfage to stevedoring, terminal logistics and VAS
• Strengthen our market position in the Americas
• Nucleus to build up a robust and attractive terminal portfolio

Cont. Throughput¹ ~3,500 k TEU

EBITDA² USD ~115 m

Employees³

>4,000

2 Market Update

Spot freight rates from China dropped clearly since August reflecting weakening demand and easing of port congestion

GLOBAL CONTAINER VOLUMES

[TEU m]

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TRANSPACIFIC CONTAINER VOLUMES [TEU m]

SHANGHAI CONTAINERIZED FREIGHT INDEX

[USD/TEU]1)

2 Market Update

Lower throughput volumes have eased port congestion but waiting times at USEC, Canada and in Northern Europe remain elevated

GLOBAL PORT CONGESTION INDEX

[TEU m, 7dma]

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9

Exceptional freight rate environment led to a strong earnings performance in the first nine months of 2022

OPERATIONAL KPIs			P&L EFFECTS
8,987 Volume TTEU PY: 8,980	Transport volume remained at the previous year's level (0.1% YoY); higher volumes in Africa were offset by recent slowdown in demand especially on East-West trades	Revenue USD m	28,439 PY: 17,945	Revenue increased by USD +10.5 bn,…
Rate 2,938 USD/TEU PY: 1,818	Average freight rate increased by 62% YoY as recently declining spot rates were compensated by long-term contract rates	EBITDA USD m	16,649 PY: 8,163	…EBITDA by USD +8.5 bn and …
Bunker 755 USD/mt PY: 452	Average bunker consumption price increased by 303 USD/mt due to higher bunker market prices	EAT USD m	14,665 PY: 6,655	…net profit by USD +8.0 bn mainly due to higher freight rates
BALANCE SHEET1)			FINANCIAL KPIs
Assets 38,314 USD m PY: 30,236	Total assets increased by USD 8.1 bn vs. 31 Dec 2021 due to higher investments (incl. RoU additions), more cash and higher receivables	FCF USD m	14,283 PY: 6,597	Free Cash Flow generation turned out significantly higher than in the first nine months of 2021
Fin. Debt 6,045 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: <0x	Net leverage remained unchanged due to strong result performance

On the back of a sharp rise in revenues, group profit increased significantly YoY

REVENUE [USD m] EBITDA [USD m]

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EBIT [USD m] GROUP PROFIT [USD m]

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Volumes remained flat YoY mainly due to congestion – Slowdown of demand in Q3 had no meaningful impact yet

TRANSPORT VOLUME DEVELOPMENT BY TRADE [TTEU]

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Average freight rate increase mainly driven by stronger long-term rates while spot rates declined – Bunker price is up considerably

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

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Unit costs continued to increase due to significantly higher bunker prices, congestion and higher vessel charter rates

TRANSPORT EXPENSES PER UNIT [USD/TEU]

• "Bunker" expenses (+71%) increased on the back of higher average bunker consumption prices
• "Handling and Haulage" (+12%) and "Equipment and Repositioning" (+17%) expenses were up due to higher storage and hinterland transportation costs
• "Vessels and voyage" expenses (+14%) increased due to rise in percentage of ships chartered in on a medium-term basis and the resulting operating expenses
• "Depreciation and amortization" expenses (+23%) were up primarily due to the rise in the percentage of vessels chartered in on a mediumterm basis at simultaneously higher charter rates and the resulting increase in right of use

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Strong cash generation in 9M 2022, leading to a free cash flow of USD 14.3 bn – Liquidity reserve now at 15.5 USD bn

CASH FLOW 9M 2022 [USD m]

Unused credit lines Cash and cash equivalents

Despite the payment of a dividend of USD 6.6 bn in May 2022, net liquidity increased to USD 9.5 billion

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LIQUIDITY RESERVE [USD m]

EQUITY [USD m] NET CASH [USD m]1)

COMMENTS

• Equity increased substantially due to high profitability level
• Equity ratio now at ~69%
• Financial debt was slightly reduced while net cash position increased clearly
• Time deposits of USD 785m with a duration above 3 months are recognized under "other current assets" and hence not included in liquidity reserve

4 Way Forward

Orderbook activity slowed down – New capacity inflow will likely exceed demand in the next quarters

GLOBAL ORDERBOOK

SCHEDULED VESSEL DELIVERIES

16 Source: MDS Transmodal (various years), Clarksons (October 2022), Alphaliner (various issues), Drewry (3Q22 Forecaster) Note: Global Container Trade Growth: CTS data until 2021; average calculation based on Alphaliner, Clarksons, Seabury & Drewry for 2022e onwards

4 Way Forward

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FY 2022 earnings outlook confirmed – Softening freight rate environment will impact profitability in fourth quarter as expected

	FY 2021	FY 2022 Outlook
Transport volume	11,872 TTEU	On previous year's level1
Bunker con sumption price	475 USD/mt	Increasing clearly
Freight rate	2,003 USD/TEU	Increasing clearly
EBITDA	12,842 USD m	USD 19.5 – 21.5 bn EUR 18.2 – 20.1 bn
EBIT	11,111 USD m	USD 17.5 – 19.5 bn EUR 16.3 – 18.2 bn

• Strong operational performance in 9M 2022 was in-line with updated expectations on 28 July 2022
• Based on current business performance, the fourth quarter results should also meet expectations
• The Executive Board of Hapag-Lloyd AG therefore confirms its earnings outlook for the current financial year
• However, transport volume is now expected to be on previous year's level (Previously: slightly increasing)

4 Way Forward

Our focus going forward:

Focus on service quality and customer satisfaction

Continuously adapt to evolving market conditions

Focus on cost control and maintain a prudent financial policy

Invest in fleet to further increase efficiency and strengthen efforts on sustainability and decarbonization

Consider further selective investment opportunities and focus on terminal development strategy

Take care of our people and invest in their capabilities

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A Appendix

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Hapag-Lloyd with an equity ratio of 69.3% and a gearing of below zero

USD million	30.9.2022	31.12.2021
Assets
Non-current assets	17,762.3	17,298.4
of which fixed assets	17,642.4	17,208.5
Current assets	20,551.8	12,937.1
of which cash and cash equivalents	14,762.0	8,741.4
Total assets	38,314.1	30,235.5
Equity and liabilities
Equity	26,564.3	18,292.2
Borrowed capital	11,749.8	11,943.3
of which non-current liabilities	4,748.2	5,199.7
of which current liabilities	7,001.6	6,743.6
of which financial debt and lease liabilities	6,044.6	6,221.7
of which financial debt and lease liabilities non-current	4,482.1	4,684.0
of which financial debt and lease liabilities current	1,562.5	1,537.7
Total equity and liabilities	38,314.1	30,235.5

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

million USD	30.9.2022	31.12.2021	30.9.2021
Financial debt and lease liabilities	6,044.6	6,221.7	6,388.8
Cash and cash equivalents	14,762.0	8,741.4	5,181.2
Time deposit investments	785.0	–	–
Net debt	–9,502.4	–2,519.7	1,207.7
Unused credit lines	725.0	585.0	585.0
Liquidity reserve	15,487.0	9,326.4	5,766.2
Equity	26,564.3	18,292.2	14,178.8
Gearing (net debt / equity) (%)	-35.8	-13.8	8.5
EBITDA	16,649.3	12,841.9	8,162.7
Net debt EBITDA¹ to	<0	<0	0.1x
Equity ratio (%)	69.3	60.5	54.9

Hapag-Lloyd with strong net profit of USD 14,664.7 m in 9M 2022

INCOME STATEMENT [USD M]

				QoQ	YoY
million USD	Q3 2022	Q2 2022	Q3 2021	Change	change	9M 2022	9M 2021	Change
Revenue	9,877.7	9,605 .7	7,393.9	2.8%	33.6%	28,439.5	17,945 .2	58 5%
Transport expenses –3	828 3 ,	–3 663 3 ,	–3 158 6 ,	4 5%	21 2%	– 10 804 7 ,	–8 895 0 ,	21 5%
Personnel expenses	–224 5	–231 3	–206 2	–3 0%	8 9%	–691 5	–636 9	8 6%
Depreciation , amortisation and impairment	–483 1	–507 1	–472 4	–4 7%	2 3%	–1 506 2 ,	–1 224 8 ,	23 0%
Other operating result	–123 9	–143 1	–113 3	–13 5%	9 3%	–380 3	–272 0	39 8%
Operating result	5 ,217.9	5 ,060.9	3,443.4	3.1%	51 5%	15 ,056 .8	6,916.5	117.7%
Share of profit of equity-accounted investees	10 8	62 6	7 7	–82 7%	41 7%	86 3	21 9	n.m.
Result from investments	–4 1	4 1	–0 5	n.m.	n.m.	0 0	–0 5	n.m.
Earnings before interest and tax (EBIT)	5 ,224.6	5 ,127.7	3,450 5	1.9%	51 .4%	15 ,143.2	6,937.9	118.3%
Interest result	11 4	–39 1	–62 9	n.m.	n.m.	–81 6	–235 4	n.m.
Other financial items	4 1	–284 2	1 5	n.m.	n.m.	–314 9	–0 7	n.m.
Income taxes	–41 1	–22 2	–18 3	84 7%	124 1%	–82 0	–46 9	74 7%
Group profit / loss	5 ,199.0	4,782.2	3,370.8	8.7%	54 .2%	14,664.7	6,654 .8	120.4%

Well balanced maturity structure of financial liabilities

FINANCIAL DEBT PROFILE AS PER 30 SEPTEMBER 20221), [USD M]

Note: Rounding differences may occur

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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	108
Listing	Open market of the Luxembourg Stock Exchange (Euro MTF)	105 102
Volume	EUR 300 m	99
ISIN / WKN	XS2326548562	96
Maturity Date	April 15, 2028	93 90
Redemption Price	as of 15 April 2024: 101.375% as of 15 April 2025: 100.688% as of 15 April 2026: 100%	87 85.9 HL EUR 2.500% 2028
Coupon	2.500%	84 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23

Shareholder structure

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

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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