Hapag-Lloyd AG — Investor Presentation 2023

Nov 9, 2023

Investor Presentation 9M 2023 Results Hamburg, 9 November 2023

Opening Remarks

1	HIGHLIGHTS	Growing terminal activities bundled in new business segment Launch of new joint venture company for the growing cabotage business in Brazil
2	FINANCIAL PERFORMANCE	Solid financial performance in 9M 2023 but quarterly earnings trend clearly declining While volumes picked up in Q3, the average freight rate continued to fall With a net liquidity position of USD 3.0 bn balance sheet ratios remain strong
3	MARKET UPDATE	High orderbook will lead to strong capacity growth in the coming quarters Demand is expected to recover only slowly Supply will outpace demand in 2023 & 2024 making active cost management inevitable
4	WAY FORWARD	Gradual normalisation of the earnings trend set in as expected – FY 2023 outlook narrowed EBITDA is now expected between USD 4.5 to 5.5 bn and EBIT between USD 2.4 to 3.4 bn Focus on quality, competitive cost base and expansion of terminal business

Freight rates remain under pressure leading to an increasingly challenging market environment

1 Highlights

Container volumes picked up recently, but freight rates remain under pressure leading to an increasingly challenging market environment

GLOBAL CONTAINER VOLUMES

SHANGHAI CONTAINERIZED FREIGHT INDEX

MARKET DEVELOPMENT

Q3 2023 container volumes picked up but overall demand situation remains muted

Effective capacity increased strongly due to normalisation of supply-chains and continuing influx of newbuild vessels

Spot rates have reached unsustainable territory on many trade lanes

Inflationary pressure keeps transport costs on elevated levels despite easing of congestion

1 Highlights

We are intensifying our efficiency and cost-cutting measures to mitigate the impact of lower freight rates

COST SAVING INITIATIVES

• Accelerate full removal of congestion related cost
• Adjust service network swiftly to market demand
• Bring down non-essential spend and improve efficiency
• Improve the procurement process and actively renegotiate contracts
• Deliver benefits from investments (e.g., newbuilds, terminals, Fleet Upgrade

Since Q3, Terminal & Infrastructure serves as a second pillar of our business

TERMINAL HOLDING

• Set up of Terminal Holding in Rotterdam to deliver safe, sustainable, reliable & efficient terminal operations supporting Number One For Quality
• Dheeraj Bhatia has been appointed the CEO of the Terminal Holding and Chief Terminal Officer (CTO) of the Group as of January 2024

Launch of new cabotage joint venture in Brazil

NEW PLAYER NORCOAST

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Founded by Hapag-Lloyd and Norsul as a 50-50 partnership

Weekly service offering for cabotage & feeder cargo

Integrated container transport and inland services

STRATEGIC RATIONALE

• Brazil is the largest economy in South America with a constantly growing coastal transport sector
• Improved connectivity for deep-sea cargo to and from secondary ports in Brazil
• High synergy potential, such as added volumes and terminal cost savings

Solid financial performance in 9M 2023 but quarterly earnings trend clearly declining

9M 2023 GROUP RESULTS

Transport volume¹ 8.9 MTEU PY: 9.0 MTEU

USD 15.3 bn PY: USD 28.4 bn Revenue EBITDA

USD 4.5 bn PY: USD 16.6 bn

Free Cash Flow USD 3.4 bn PY: USD 14.3 bn

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Net Liquidity USD 3.0 bn FY 2022: USD 13.4 bn

Equity USD 21.0 bn FY 2022: USD 29.8

Earnings normalised in Q3 as the full tailwind from last year's exceptional freight rate environment dissipated

Q3 2022 Q3 2023 9M 2022 9M 2023 5,708 744 16,649 4,519 -87% -73% 58% Margin 59% 17% 30%

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EBIT [USD m] GROUP PROFIT [USD m]

Note: Figures as stated in the Investor Report 9M 2023. Rounding differences may occur.

Growing terminal activities have contributed USD 29 m to Group EBIT in 9M 2023 (Spinelli as of 01/23, J M Baxi as of 04/23, SAAM as of 08/23)

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SEGMENT PERFORMANCE

USD m	9M 2023
Revenue	92.1
EBITDA	38.4
EBITDA margin	41.7%
EBIT	29.4
EBIT margin	31.9%

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9M 2023 volumes close to previous year's level following volume rebound in Q3

TRANSPORT VOLUME DEVELOPMENT BY TRADE [TTEU]¹

2 Financial Performance

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Average freight rate continued to fall due to supply pressure

FREIGHT RATE [USD/TEU] VS. BUNKER PRICE DEVELOPMENT [USD/MT] 1

2 Financial Performance

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Unit cost improved clearly as a result of lower bunker prices, active cost management and easing of port congestion

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Good cash generation used for fleet investments, expansion of terminal business and dividend distribution

CASH FLOW 9M 2023 [USD m]

2 Financial Performance

With a net liquidity position of USD 3.0 bn balance sheet ratios remain strong

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LIQUIDITY RESERVE [USD m]¹

1) From the first quarter 2023, the liquidity reserve includes money market transactions and fixed income investments which are recognised under other financial assets. Prior year figures adjusted accordingly.

EQUITY [USD m] NET LIQUIDITY [USD m]

COMMENTS

• Following the AGM approval on 3 May 2023, we used excess funds for a dividend distribution to our shareholders in the amount of USD 12.2 bn.
• Fixed-income investments recognised under other financial assets amounted to USD 2.0 bn.

Note: Figures as stated in the Investor Report 9M 2023. Rounding differences may occur.

3 Market Update

High orderbook will lead to strong capacity growth in the coming quarters

GLOBAL ORDERBOOK

SCHEDULED VESSEL DELIVERIES

[before scrapping]

INACTIVE FLEET

3 Market Update

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Global supply will outpace demand in 2023 & 2024

GLOBAL DEVELOPMENTS OF SUPPLY AND DEMAND

Only slow recovery of demand expected in the next quarters

Strong inflow of new capacity

Scrapping, slippage and slow steaming will offset high newbuild supply partly

Supply will outpace demand in 2023 & 2024 making active cost management inevitable

4 Way Forward

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Normalisation of earnings set in as expected – FY 2023 outlook narrowed

	FY 2022	Original Outlook	Updated Outlook
Transport volume	11,843 TTEU	Increasing slightly	Increasing slightly
Bunker consumption price	753 USD/mt	Decreasing clearly	Decreasing clearly
Freight rate	2,863 USD/TEU	Decreasing clearly	Decreasing clearly
EBITDA	20,474 USD m	USD 4.3 – 6.5 bn EUR 4.0 – 6.0 bn	USD 4.5 – 5.5 bn EUR 4.1 – 5.0 bn
EBIT	18,467 USD m	USD 2.1 – 4.3 bn EUR 2.0 – 4.0 bn	USD 2.4 – 3.4 bn EUR 2.2 – 3.1 bn

Comments

• Gradual normalisation of the earnings trend set in as expected.
• The FY 2023 outlook has been narrowed to reflect a solid 9M 2023 performance and an increasingly challenging market environment.
• The outlook is subject to uncertainty given the many geopolitical conflicts, persistent inflationary pressures, and the high inventory levels of customers.
• While freight rates are likely to stabilise above the cost level in the medium term, rising overcapacity could have a significant negative impact on industry profitability in 2024.

Priorities for 2023 and beyond Remain focused on service quality and

customer satisfaction

Adapt to challenging market environment by improving cost base

Expand terminal business further and leverage synergies between both segments

Finalise new medium-term strategy to set the course for 2030

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A Appendix

Hapag-Lloyd's group profit came in at USD 3.4 bn in 9M 2023

INCOME STATEMENT [USD M]

			QoQ	YoY
Q3 2023	Q2 2023	Q3 2022	Change	change	9M 2023	9M 2022	Change
4,464.5	4,819.0	9,877.7	–7.4%	–54.8%	15,311.6	28,439.5	–46.2%
–3,303.0	–3,070.2	–3,828.3	7.6%	–13.7%	–9,632.7	–10,804.7	–10.8%
–292.8	–255.2	–224.5	14.7%	30.5%	–807.0	–691.5	16.7%
–516.2	–508.8	–483.1	1.4%	6.8%	–1,529.7	–1,506.2	1.6%
–123.6	–105.4	–123.9	17.3%	–0.2%	–376.7	–380.3	–1.0%
228.9	879.3	5,217.9	–74.0%	–95.6%	2,965.6	15,056.8	–80.3%
–1.3	5.8	10.8	–122.2%	–112.0%	21.2	86.3	–75.4%
–0.1	2.4	–4.1	n.m.	–98.3%	2.4	0.0	n.m.
227.5	887.6	5,224.6	–74.4%	–95.6%	2,989.1	15,143.2	–80.3%
53.1	110.5	11.4	–52.0%	366.2%	326.3	–81.6	n.m.
2.2	102.1	4.1	–97.8%	–46.3%	166.8	–314.9	n.m.
9.9	1.4	–41.1	n.m.	n.m.	–57.0	–82.0	–30.6%
292.7	1,101.6	5,199.0	–73.4%	–94.4%	3,425.3	14,664.7	–76.6%
1.63	6.25	29.56	–73.9%	–94.5%	19.42	83.36	–76.7%
743.7	1,396.5	5,707.7	–46.7%	–87.0%	4,518.8	16,649.3	–72.9%
16.7	29.0	57.8	-12.3 ppt	-41.1 ppt	29.51	58.54	-29.0 ppt
227.5	887.6	5,224.6	–74.4%	–95.6%	2,989.1	15,143.2	–80.3%
5.1	18.4	52.9	-13.3 ppt	-47.8 ppt	19.52	53.25	-33.7 ppt

A Appendix

Hapag-Lloyd with an equity ratio of 65% and a net liquidity of USD 3.0 bn at the end of 9M 2023

million USD	30.9.2023	31.12.2022
Assets
Non-current assets	20,563.0	18,034.8
of which fixed assets	20,315.7	17,876.5
Current assets	11,710.5	23,263.7
of which cash and cash equivalents	6,734.0	16,264.5
Total assets	32,273.5	41,298.5
Equity and liabilities
Equity	20,981.8	29,795.1
Borrowed capital	11,291.6	11,503.4
of which non-current liabilities	4,871.2	4,674.6
of which current liabilities	6,420.4	6,828.7
of which financial debt and lease liabilities	5,785.5	5,803.8
of which non-current financial debt and lease liabilities	4,344.2	4,317.9
of which current financial debt and lease liabilities	1,441.4	1,485.9
Total equity and liabilities	32,273.5	41,298.5

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

million USD	30.9.2023	31.12.2022
Financial debt and lease liabilities	5,785.5	5,803.8
Cash and cash equivalents	6,734.0	16,264.5
Money market transactions & funds / fixed income investments
(other financial assets)	2,013.3	2,976.0
Net Liquidity	2,961.8	13,436.7
Unused credit lines	725.0	725.0
Liquidity reserve¹	9,472.3	19,965.5
Equity	20,981.8	29,795.1
Assets	32,273.5	41,298.5
Equity ratio (%)	65.0	72.1

Well balanced maturity structure of financial liabilities

FINANCIAL DEBT PROFILE AS PER 30 SEPTEMBER 2023¹ , [USD M]

Note: Rounding differences may occur

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A Appendix

Share price development

HLAG Evergreen OOCL Maersk COSCO

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
Redemption Price	as of 15 April 2024: 101.375% as of 15 April 2025: 100.688% as of 15 April 2026: 100%	90 87,4 87 HL EUR 2.500% 2028
Coupon	2.500%	84 Jul-21 Jan-22 Jul-22 Jan-23 Jul-23 Jan-24

Our shareholder base is long-term oriented

• 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

• Kühne: majority owner of Kühne + Nagel, shareholder since 2009
• CSAV: Chilean stock listed company, majority owned by Luksic Group, shareholder since merger with CSAV in 2014
• HGV Hamburg: City of Hamburg, shareholder since 2009
• Kühne, CSAV and HGV agreed to uniformly exercise their voting rights
• Sovereign wealth funds of Qatar and Saudi Arabia became shareholders after the merger with UASC in 2017

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) 3001-3705 ir@hlag.com All publication documents can be found here: https://www.hapag-lloyd.com/en/ir.html

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