Hapag-Lloyd AG — Investor Presentation 2023

Aug 10, 2023

Investor Presentation H1 2023 Results Hamburg, 10 August 2023

Opening Remarks

HIGHLIGHTS 1

• Global transport demand remained muted in H1 2023 leading to a challenging market environment
• With the completion of the SAAM Ports & Logistics acquisition in August we reached a significant milestone
• Delivery of our newbuild LNG-powered vessels will substantially contribute to our CO² reduction targets

FINANCIAL PERFORMANCE 2

• Normalisation of earnings trend set in as anticipated H1 financial performance was still very strong
• Average freight rate fell further due to normalisation of supply chains and weaker demand
• We continue to have a strong balance sheet following the dividend distribution of USD 12.2 bn in May

MARKET UPDATE 3

• Only slow recovery of demand expected in the next quarters
• High inflow of newbuild vessels commenced, partly offset by increasing scrapping and slow steaming
• Supply will likely outpace demand in 2023 & 2024 making active cost management inevitable

WAY FORWARD 4

• Outlook 2023 confirmed: Earnings normalisation expected to continue
• Terminal activities to become second pillar of our business
• Roll-out of remaining Simplify, Strengthen and Invest measures and develop a new mid-term strategy

1 Highlights

Global transport demand remained muted in H1 2023 reflecting slow GDP growth and a shift back from goods to services

GLOBAL CONTAINER VOLUMES

SHANGHAI CONTAINERIZED FREIGHT INDEX

MARKET DEVELOPMENT

Global container volumes in H1 2023 were well below 2021/2022 levels

Spot rates ex-China bottomed out at the end of Q1 2023 while Atlantic and LatAm rates fell further in Q2

Effective capacity is increasing due to normalisation of supply-chains and strong influx of newbuild vessels

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

1 Highlights

We have completed the SAAM Ports & Logistics acquisition in August, a key milestone to build a robust terminal portfolio

SAAM PORTS & LOGISTICS ACQUISITION

operated in Latin America and the USA

Chilean terminal operator and logistics company

>3 TEU m container throughput p.a.

10 Terminals

Full-service portfolio in the area of terminal operations and logistics

STRATEGIC RATIONALE

Strengthen our market position in the Americas

1 Highlights

Our new LNG-powered vessels will substantially contribute to our CO2 reduction targets

23.600 TEU Dual-fuel LNG engine Berlin Express

New vessel

OUR CO² REDUCTION MEASURES

• Deployment of highly efficient 13k and 24k TEU newbuild vessels
• Use of LNG to instantly reduce CO² emission by 15-25% as compared to regular bunker
• Retrofitting of more than 150 vessels will generate CO² savings of 6-7%
• Extended use of biofuels to avoid emissions by 20-30%1)
• Exploring methanol main engine retrofit with MAN

OUR CO² REDUCTION AMBITION [AER]2)

5 1) For B30 blend 2) Goal to reduce CO² intensity of the fleet in ownership measured as Average Efficiency Ratio [g CO² /dwt x NM] by 60% in 2030 as compared to 2008 3) 2023 IMO Greenhouse Gas Strategy ambition to reduce CO² emissions per transport work, as an average across international shipping, by at least 40% by 2030, compared to 2008.

11.68 2008

4.67 2030

-60%

Customer satisfaction increased to the highest level since 2018

Strong financial performance in H1 2023 despite challenging market environment

Transport volume 5.8 MTEU PY: 6.0 MTEU

Revenue EBITDA

USD 10.8 bn PY: USD 18.6 bn

USD 3.8 bn PY: USD 10.9 bn

Free Cash Flow

USD 4.0 bn PY: USD 9.5 bn

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Net Liquidity

USD 3.9 bn FY 2022: USD 13.4 bn

Equity USD 20.7 bn FY 2022: USD 29.8

Normalisation of earnings trend in H1 2023 as anticipated – Margins and return on invested capital still on a high level

REVENUE [USD m] EBITDA [USD m]

3,775 Q2 2022 5,635 Q2 2023 1,396 H1 2022 H1 2023 10,942 -75% -65%

29% 35%

59% Margin 59%

EBIT [USD m] GROUP PROFIT [USD m]

Transport volumes declined by 3.4% YoY in H1 due to weak global demand for container transport

TRANSPORT VOLUME DEVELOPMENT BY TRADE [TTEU]

2 Financial Performance

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Average freight rate fell further due to normalisation of supply chains and weaker demand – bunker price down clearly

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

Unit costs decreased YoY mainly due to lower bunker prices and easing of port congestion

CHANGE IN TRANSPORT EXPENSES PER UNIT [USD/TEU]

COMMENTS

• Bunker" expenses decreased by 15% because of lower bunker prices.
• "Handling and Haulage" expenses decreased by 8% due to easing of port congestion.
• "Equipment and Repositioning" expenses increased by 7% due to higher storage expenses for empty containers.
• "Vessel and voyage" expenses increased by 6% mainly due to higher port and canal costs, and expenses for container slot charter costs on third-party vessels.
• In total, unit cost in H1 2023 were down 5% or 66 USD/TEU as compared to H1 2022.

Despite high dividend payout in May, cash balance stood at USD 7.4 bn at the end of H1 2023

CASH FLOW H1 2023 [USD m]

Balance sheet figures remain strong – Net liquidity at USD 3.9 bn

LIQUIDITY RESERVE [USD m]¹

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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.

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 H1 2023. Rounding differences may occur.

3 Market Update

High inflow of newbuild vessels commenced – Vessel ordering activity still elevated

GLOBAL ORDERBOOK

SCHEDULED VESSEL DELIVERIES

[TEU m]

Source: Clarksons (9 Aug 2023) Source: Alphaliner

INACTIVE FLEET

3 Market Update

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Global supply will likely outpace demand in the next quarters

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 likely outpace demand in 2023 & 2024 making active cost management inevitable

2023

Outlook confirmed: Gradual normalisation Outlook of earnings set to continue in H2 2023

	FY 2022	Outlook 2023
Transport volume	11,843 TTEU	Increasing slightly
Bunker con sumption price	753 USD/mt	Decreasing clearly
Freight rate	2,863 USD/TEU	Decreasing clearly
EBITDA	20,474 USD m	USD 4.3 – 6.5 bn EUR 4.0 – 6.0 bn
EBIT	18,467 USD m	USD 2.1 – 4.3 bn EUR 2.0 – 4.0 bn

Note: Our earnings perspective is based on the assumption of an average exchange rate of USD 1.09 USD / EUR.

Priorities for 2023

Focus on service quality and customer satisfaction

Continue with a prudent financial policy

Integrate recent terminal acquisitions Invest in our teams

Adapt to evolving market conditions

Maintain a competitive cost base

Strengthen sustainability and decarbonisation efforts Develop new medium-term strategy

A Appendix

Hapag-Lloyd's group profit came in at USD 3.1 bn in H1 2023

INCOME STATEMENT [USD M]

Q2 2023	Q1 2023	Q2 2022	Change	change	H1 2023	H1 2022	Change
4,819.0	6,028.1	9,605.7	–20.1%	–49.8%	10,847.1	18,561.8	–41.6%
–3,070.2	–3,259.4	–3,663.3	–5.8%	–16.2%	–6,329.7	–6,976.4	–9.3%
–255.2	–259.0	–231.3	–1.5%	10.3%	–514.2	–467.0	10.1%
–508.8	–504.7	–507.1	0.8%	0.3%	–1,013.5	–1,023.1	–0.9%
–105.4	–147.6	–143.1	–28.6%	–26.3%	–253.0	–256.5	–1.3%
879.3	1,857.3	5,060.9	–52.7%	–82.6%	2,736.7	9,838.9	–72.2%
5.8	16.7	62.6	–64.9%	–90.7%	22.5	75.5	–70.2%
2.4	–0.0	4.1	n.m.	–40.9%	2.4	4.2	–41.5%
887.6	1,874.0	5,127.7	–52.6%	–82.7%	2,761.6	9,918.5	–72.2%
110.5	162.8	–39.1	–32.1%	n.m.	273.2	–92.9	n.m.
102.1	62.5	–284.2	63.4%	n.m.	164.6	–319.0	n.m.
1.4	–68.3	–22.2	n.m.	n.m.	–66.9	–40.9	63.5%
1,101.6	2,031.0	4,782.2	–45.8%	–77.0%	3,132.6	9,465.7	–66.9%
				QoQ	YoY

A Appendix

Hapag-Lloyd with an equity ratio of 66% and a net liquidity of USD 3.9 bn at the end of H1 2023

million USD	30.6.2023	31.12.2022
Assets
Non-current assets	19,066.1	18,034.8
of which fixed assets	18,943.6	17,876.5
Current assets	12,392.8	23,263.7
of which cash and cash equivalents	7,371.6	16,264.5
Total assets	31,458.8	41,298.5
Equity and liabilities
Equity	20,672.6	29,795.1
Borrowed capital	10,786.2	11,503.4
of which non-current liabilities	4,470.1	4,674.6
of which current liabilities	6,316.2	6,828.7
of which financial debt and lease liabilities	5,492.6	5,803.8
of which non-current financial debt and lease liabilities	4,096.1	4,317.9
of which current financial debt and lease liabilities	1,396.5	1,485.9
Total equity and liabilities	31,458.8	41,298.5

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

million USD	30.6.2023	31.12.2022
Financial debt and lease liabilities	5,492.6	5,803.8
Cash and cash equivalents	7,371.6	16,264.5
Money market transactions & funds / fixed income investments
(other financial assets)	1,975.1	2,976.0
Net liquidity	3,854.1	13,436.7
Unused credit lines	725.0	725.0
Liquidity reserve¹	10,071.7	19,965.5
Equity	20,672.6	29,795.1
Assets	31,458.8	41,298.5
Equity ratio (%)	65.7	72.1

Well balanced maturity structure of financial liabilities

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

Note: Rounding differences may occur

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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	92.4 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 HL EUR 2.500% 2028
Coupon	2.500%	84 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23

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

Financial Calendar 2023

31 January	Preliminary Financials 2022
2 March	Annual Report FY 2022
3 May	Annual General Meeting 2023
11 May	Quarterly Financial Report Q1 2023
10 August 2023	Half-year Financial Report 2023
9 November 2023	Quarterly Financial Report 9M 2023

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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