Hapag-Lloyd AG — Investor Presentation 2023

Mar 2, 2023

Investor Presentation FY 2022 Results Hamburg, 2 March 2023

Opening Remarks

Initially high transport demand and historically high freight rates were followed by a swift normalisation

• We have executed further on our strategic agenda to Simplify, Strengthen and Invest
• We made significant progress in our efforts to build up a robust terminal portfolio

FINANCIAL PERFORMANCE 2

HIGHLIGHTS

• Historically high freight rates boosted our financial performance
• EBITDA increased to USD 20.5 bn and our net cash position improved to USD 13.4 bn
• Based on the strong result in 2022, we propose a dividend of EUR 63 per share to the AGM

MARKET UPDATE 3

• Demand likely to remain subdued until destocking cycle is completed
• Strong inflow of new capacity will be partly offset by increasing scrapping activities and slow steaming
• Nevertheless, supply will likely outpace demand in 2023 & 2024 making capacity management inevitable

WAY FORWARD 4

• Due to fundamentally different market conditions, we expect a gradual normalisation of earnings in 2023
• We will roll-out the remaining Simplify, Strengthen and Invest measures and ….
• … review and update our strategy to set course until 2030

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1 Highlights

3

2022 was initially characterised by high transport demand and historically high freight rates followed by a swift normalisation

GLOBAL CONTAINER VOLUMES

[TEU m] 2021 2022

SHANGHAI CONTAINERIZED FREIGHT INDEX

MARKET DEVELOPMENT

Transport volumes remained initially on a good level followed by a rapid decline in second half of 2022

With lower volumes, port congestion mostly dissipated towards the year end

Freight rates remained on an exceptionally high level until Q4

Exceptional market environment boosted our financial performance

FINANCIAL PERFORMANCE

RETURN ON INVESTED CAPITAL [%]

STRATEGY 2023

SIMPLIFY

Improve customer experience and reduce complexity

STRENGTHEN

Double efforts to become "Number One for Quality" We used the favorable financial position to execute further on our strategic agenda

Delivering Operational Quality We have significantly improved customer satisfaction due to our relentless efforts to become "Number One for Quality"

Network, Fleet & Equipment

We have started to simplify our network to reduce complexity, while our newly installed container tracking devices will enhance supply-chain transparency

Growth in Attractive Markets We have expanded into attractive markets with new services, offices and the acquisition of regional players NileDutch and DAL

Digitalization and Innovation We have launched Quick Quotes

Spot and more than 20 digital products to improve customer experience and the ease of doing business with us

Sustainability & Decarbonization We have initiated the Fleet Upgrade Program to improve fleet efficiency and increased our biofuel procurement as part of our efforts to become climate neutral by 2045

Build up infrastructure and adjacent services

Focus topic on next slides ►

INVEST

Investment in staff, sustainable assets and long-term competitiveness

1 Highlights

We have strengthened our core business with the recent terminal investments in Europe and the Mediterranean

EUROPE & MEDITERRANEAN

Spinelli

Strengthening our market position in the Mediterranean by gaining access to mayor Italian gateway terminals with excellent hinterland capabilities

Tangier and Damietta

Dedicated strategic transshipment hubs in West and East Mediterranean to support our hub & transshipment strategy

Container terminal investments of Hapag-Lloyd

The takeover of SAAM Ports & Logistics reinforces our competitiveness within the Latin American market

Container terminal portfolio of SAAM Terminal & Logistics

LATIN AMERICA

SAAM Terminal & Logistics is a Chilean terminal operator and logistics company

Operates portfolio of 10 terminals across the Americas

3.5 MTEU container throughput p.a.

Offers full-service portfolio of an operator from dockage, wharfage to stevedoring, terminal logistics and VAS

Acts as a nucleus to build up a robust and attractive terminal portfolio

1 Highlights

The acquisition of 40% share in J M Baxi offers a better access to the fast-growing Indian market

INDIA

J M Baxi is a leading private terminal and inland transport service provider in India

Operates 5 container terminals and has recently won concessions for terminals in Nhava Sheva and Tuticorin.

1.4 MTEU container throughput p.a.

Significant hinterland capabilities such as train connections, warehousing, cold storage, container depots, etc.

India offers attractive growth opportunities due to its fast-growing economy and still low degree of containerization

J M Baxi Ports & Logistics container terminals

1 Highlights

We are making good progress in building our terminal portfolio to enable quality and cost improvements

Global container terminal investments of Hapag-Lloyd

INVESTMENT RATIONALE

We want to increase our access to key locations and build an infrastructure portfolio following our hub & transshipment strategy to…

Reduce complexity

Increase relevance

Reduce & improve T/S

Exceptional financial result in 2022 further strengthened our financial KPIs

Transport volume

11.8 MTEU PY: 11.9 MTEU

Transport volume on prior-year level

Revenue

USD 36.4 bn PY: USD 26.4 bn

Revenue increased significantly in an extraordinary market environment

EBITDA

USD 20.5 bn

PY: USD 12.8 bn EBITDA increased by USD 7.6 bn

Free Cash Flow

USD 16.3 bn

PY: USD 10.9 bn

FCF generation turned out significantly higher than in 2021

Net Cash

USD 13.4 bn PY: USD 2.5 bn

Net Cash position further increased due to strong operating cash flow

Dividend

EUR 63/ share

PY: EUR 35/ share

We are committed to shareholder participation

Group profit increased significantly YoY ─ beginning earnings normalisation visible in Q4 2022

REVENUE [USD m] EBITDA [USD m]

EBIT [USD m] GROUP PROFIT [USD m]

Volumes remained flat YoY mainly due to congestion and slowdown of demand in H2 2022

TRANSPORT VOLUME DEVELOPMENT BY TRADE [TTEU]

Average freight rate increased strongly, but gradual normalisation started in Q4 2022 – bunker price is up considerably

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

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

CHANGE IN TRANSPORT EXPENSES PER UNIT [USD/TEU]

• "Bunker" expenses (+59%) increased on the back of higher average bunker consumption prices
• "Handling and Haulage" (+10%) and "Equipment and Repositioning" (+16%) expenses were up due to higher storage and hinterland transportation costs
• "Vessels and voyage" expenses (+17%) increased due to rise in percentage of ships chartered in on a medium-term basis and the resulting operating expenses
• "Depreciation and amortization" expenses (+16%) were up primarily due to the rise in the percentage of vessels chartered in on a medium-term basis at simultaneously higher charter rates and the resulting increase in right of use

Strong cash generation in FY 2022, leading to a free cash flow of USD 16.3 bn – Liquidity reserve now at USD 17.0 bn

CASH FLOW FY 2022 [USD m]

Unused credit lines Cash and cash equivalents

Equity ratio increased to 72% ─ Net Liquidity stands at USD 13.4 billion

LIQUIDITY RESERVE [USD m]

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COMMENTS

• Equity increased substantially due to high profitability level
• Equity ratio now at ~72%
• Financial debt was slightly reduced while net cash position increased clearly
• Time deposits of USD 2,976 m with a duration above 3 months are recognized under "other financial assets" and hence not included in liquidity reserve

Based on the strong result in 2022, we propose a dividend of EUR 63 per share to the AGM

DPS AND PAYOUT RATIO [EUR]

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35.00 Dividend yield: 35.5% 2

Financial priorities going forward

Prudent financial policy

• We have significantly improved our financial resilience in recent years
• Going forward, we will maintain a prudent financial policy that balances the interest of all stakeholders
• As part of our efforts to become climate neutral by 2045 all our future financings will have a green component

Competitive cost base

• In a normalized freight rate environment, cost control will once again become a key success driver
• We will therefore step up our efforts to maintain a competitive cost base

Invest in our future

▪ We will continue to strengthen our ocean product by investing in core liner and infrastructure business

Nominal capacity inflow will likely exceed demand in the next quarters

SCHEDULED VESSEL DELIVERIES

IDLE FLEET 2,000 0 500 2,500 1,000 3,000 1,500 Share of world fleet 3.3%1) [TTEU] 2018 2019 2020 2021 2022 2023

3 Market Update

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Market fundamentals have changed quickly as demand remains subdued while capacity increases strongly

Demand likely to remain subdued until destocking cycle is completed

Strong inflow of new capacity expected

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

Supply will likely outpace demand in 2023 & 2024 making capacity management inevitable

Gradual normalisation of earnings expected in the course of 2023

		FY 2022	FY 2023 Outlook
	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

Our focus going forward

Continuously adapt to evolving market conditions

Roll-out of remaining Simplify, Strengthen and Invest initiatives

Focus on service quality and customer satisfaction

Strengthen sustainability and decarbonisation efforts

Work further on building our terminal portfolio

Take care of our people and invest in their capabilities

Update existing strategy to set course until 2030

Priorities for 2023

Hapag-Lloyd with an equity ratio of 72.1% and a gearing of below zero

million USD	31.12.2022	31.12.2021
Assets
Non-current assets	18,034.8	17,298.4
of which fixed assets	17,876.5	17,208.5
Current assets	23,263.7	12,937.1
of which cash and cash equivalents	16,264.5	8,741.4
Total assets	41,298.5	30,235.5
Equity and liabilities
Equity	29,795.1	18,292.2
Borrowed capital	11,503.4	11,943.3
of which non-current liabilities	4,674.6	5,199.7
of which current liabilities	6,828.7	6,743.6
of which financial debt and lease liabilities	5,803.8	6,221.7
of which non-current financial debt and lease
liabilities	4,317.9	4,684.0
of which current financial debt and lease liabilities	1,485.9	1,537.7
Total equity and liabilities	41,298.5	30,235.5

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

31.12.2022	31.12.2021
5,803.8	6,221.7
16,264.5	8,741.4
2,976.0	–
13,436.7	2,519.7
725.0	585.0
16,989.5	9,326.4
29,795.1	18,292.2
-45.1	-13.8
	12,841.9
<0	<0
72.1%	60.5%
	20,473.9

Hapag-Lloyd with strong net profit of USD 18.0 bn in FY 2022

INCOME STATEMENT [USD M]

				QoQ	YoY
million USD	Q4 2022	Q3 2022	Q4 2021	Change	change	FY 2022	FY 2021	Change
Revenue	7,961.7	9,877.7	8,411.0	–19.4%	–5.3%	36,401.1	26,356.2	38.1%
Transport expenses	–3,664.7	–3,828.3	–3,320.6	–4.3%	10.4%	–14,469.4	–12,215.6	18.5%
Personnel expenses	–343.3	–224.5	–321.6	53.0%	6.8%	–1,034.8	–958.5	8.0%
Depreciation, amortisation and impairment	–500.4	–483.1	–506.1	3.6%	–1.1%	–2,006.6	–1,730.9	15.9%
Other operating result	–137.5	–123.9	–100.9	–11.0%	–36.3%	–517.8	–372.9	38.9%
Operating result	3,315.8	5,217.9	4,161.9	–36.5%	–20.3%	18,372.6	11,078.3	65.8%
Share of profit of equity accounted investees	8.5	10.8	12.2	–21.6%	–30.0%	94.8	34.1	178.2%
Result from investments	–0.1	–4.1	–0.9	–96.4%	–84.3%	–0.1	–1.4	–92.3%
Earnings before interest and tax (EBIT)	3,324.1	5,224.6	4,173.1	–36.4%	–20.3%	18,467.3	11,111.0	66.2%
Interest result	105.3	11.4	–54.8	825.4%	n.m.	23.8	–290.2	n.m.
Other financial items	–5.4	4.1	2.7	n.m.	n.m.	–320.3	2.0	n.m.
Income taxes	–129.4	–41.1	–25.6	214.8%	405.6%	–211.4	–72.5	191.4%
Group profit / loss	3,294.7	5,199.0	4,095.5	–36.6%	–19.6%	17,959.4	10,750.3	67.1%

A Appendix

On the back of a sharp rise in revenues, profitability increased strongly in 2021 & 2022, normalisation expected in the years to come

REVENUE [USD m] EBITDA [USD m]

Margin

EBIT [USD m ] Margin

A Appendix

Since 2017 we have significantly strengthened our balance sheet ratios

LIQUIDITY [USD m ] LEVERAGE [USD m]

Well balanced maturity structure of financial liabilities

FINANCIAL DEBT PROFILE AS PER 31 DECEMBER 20221), [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	93 92.1 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

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

2 March 2023	Annual Report FY 2022
3 May 2023	Annual General Meeting 2023
11 May 2023	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) 3001-2896 ir@hlag.com All publication documents can be found here: https://www.hapag-lloyd.com/en/ir.html

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