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Hapag-Lloyd AG Investor Presentation 2024
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Investor Presentation
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Hapag-Lloyd
Investor Presentation
Q1 2024 Results
Hamburg, 15 May 2024
Q1 2024 - Key Statements
- The first quarter of 2024 was characterised by an upturn in demand and renewed disruptions in global supply chains due to the difficult security situation in the Red Sea
- We recorded a solid start to the year with an EBIT of USD 0.4 bn driven by rising volumes and freight rates compared to Q4 2023
- We have launched our new Strategy 2030 and initiated the first initiatives to make Hapag-Lloyd the “Undisputed Number One for Quality”
- As a result of the continued healthy freight rate environment, we have narrowed our earnings outlook to the upper half of the original range
15 May 2024 Investor Presentation - C1
Hapag-Lloyd
Highlights
Container volumes and freight rates recovered on most trades in Q1
GLOBAL CONTAINER VOLUMES
SHANGHAI CONTAINERIZED FREIGHT INDEX
[USD/TEU]
2,500 — CCFI (Spot & Contract)
2,000 — SCFI (Spot)
1,500 — Pre-Covid Level
500 — Jan-23 | Apr-23 | Jul-23 | Oct-23 | Jan-24 | Apr-24
MARKET DEVELOPMENT Q1
- Global container volumes grew by 9% year-over-year
- The recovery in demand extended to almost all trade lanes, with the strongest gains being recorded on the Transpacific
- The rerouting of vessels around the Cape of Good Hope is leading to additional capacity demand due to longer voyage times
- Spot freight rates increased and continue to remain on a healthy level in Q2
15 May 2024 Investor Presentation - Q1 2024 Source: CTS, SSE (May 2024)
Hapag-Lloyd
Highlights
STRATEGY 2030
We have launched our new Strategy 2030 to become the “Undisputed Number One for Quality”
STRATEGIC DIRECTION
Pure Play Plus
>30
Terminals
>30%
Inland share
WHERE-TO-PLAY
Top 5 Global Container Line
Growth slightly above market
HOW-TO-WIN
| Undisputed
Number One for Quality | | |
| --- | --- | --- |
| >50
NPS | >80%
OTD^{1} on
box-level | #1
Digital CX^{2}
vs. peers |
| Sustainability Driver |
| --- |
| ~1/3
absolute CO_{2} emissions
reduction vs 2022 |
| Top Performing Carrier | | |
| --- | --- | --- |
| Top
profitability | -20%
Unit cost | +30%
FTE
productivity |
4 15 May 2024 Investor Presentation - Q1 2024
1 OTD = On Time Delivery 2 CX = Customer Facilitation
Hapag-Lloyd
Highlights
Customer satisfaction remained on a very good level – New projects agreed to become a driver of sustainability
STRATEGIC MILESTONES
Maintained a very good customer satisfaction with a NPS¹ score of >60
Increased vessel capacity to 2.1 m TEU, thereby secured our global Top 5 position
Launched new container tracking product "Live Position" to improve supply chain visibility
Agreed to retrofit 5 chartered vessels to methanol propulsion in 2026
Won ZEMBA's² first tender for emission reduced ocean transport through certified waste-based biomethane
15 May 2024 Investor Presentation - Q1 2024 1 Net Promoter Score 2 Zero Emission Maritime Buyers Alliance (ZEMBA)
Hapag-Lloyd
1 Highlights
Our first dry container tracking product “Live Position” will improve supply chain visibility through real-time data for our customers
Hapag-Lloyd is the world's first shipping line to use IoT technology in logistics on a large scale
Door-to-Door Visibility
Full transparency on shipment and container data throughout the entire multimodal journey
Data-Driven Decisions
Real-time position updates enables improved decision making and risk mitigation
Better Planning
Full control and more efficient management of the digital supply chain without blind spots
Most of our containers are already equipped
Total container fleet will be fully equipped in the course of 2024
15 May 2024 Investor Presentation - Q1 2024
Hapag-Lloyd
Financial Performance
We returned to profitability in Q1 2024 and maintained a very strong balance sheet
Q1 2024 GROUP KEY FIGURES
| Transport volume
3.0 MTEU
PY: 2.8 MTEU | Revenue
USD 4.6 bn
PY: USD 6.0 bn | EBITDA
USD 0.9 bn
PY: USD 2.4 bn |
| --- | --- | --- |
| Free Cash Flow
USD 0.2 bn
PY: USD 3.5 bn | Net Liquidity
USD 2.6 bn
FY 2023: USD 2.9 bn | Equity
USD 21.1 bn
FY 2023: USD 20.8 bn |
15 May 2024 Investor Presentation - Q1 2024 Note: Figures as stated in the Investor Report Q1 2024. Rounding differences may occur. 1 Liner Shipping Segment
Financial Performance
Q1 2024 earnings improved strongly QoQ – YoY comparison distorted by extraordinary market environment during pandemic
REVENUE [USD m]
EBIT [USD m]
EBITDA [USD m]
GROUP PROFIT [USD m]
15 May 2024 Investor Presentation - Q1 2024 Note: Figures as stated in the Investor Report Q1 2024. Rounding differences may occur.
Hapag-Lloyd
Financial Performance
Both operating segments recorded good profitability levels
Financial Performance
Liner Shipping Segment
Our average freight rate started to improve again in Q1 2024 – Volume increase driven mainly by Transpacific and Far East
FREIGHT RATE DEVELOPMENT [USD/TEU]
TRANSPORT VOLUME DEVELOPMENT BY TRADE [TTEU]
15 May 2024 Investor Presentation - Q1 2024 Note: Figures as stated in the Investor Report Q1 2024. Rounding differences may occur.
10
Hapag-Lloyd
Financial Performance
Liner Shipping Segment
Q1 unit cost were impacted by higher Bunker and Handling & Haulage expenses mainly due to Red Sea re-routings
UNIT COST DEVELOPMENT Q1 2023 – Q1 2024 [in USD/TEU]¹
Volume [TEU m]
2.8
3.0
3.1
3.0
3.0
● – ● – ● Pre-Covid unit cost level
-5%
1,324
Bunker
235
1,207
1,222
1,269
1,256
H&H
566
498
501
485
529
EQ
148
132
142
133
143
V&V
212
222
224
225
200
Deprec. Pend.
178
172
163
179
174
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Q1 2024
15 May 2024 Investor Presentation - Q1 2024 Note: Figures as stated in the Investor Report Q1 2024. Rounding differences may occur. ¹ Liner Shipping Segment
Hapag-Lloyd
Financial Performance
Free cash flow was again positive – investments consisted mainly of instalments for new vessels and the purchase of containers
15 May 2024 Investor Presentation - Q1 2024 Note: Figures as stated in the Investor Report Q1 2024. Rounding differences may occur.
Hapag-Lloyd
Financial Performance
With a net liquidity position of USD 2.6 bn and an equity ratio of 64%, the balance sheet ratios remain very strong
EQUITY [USD m]
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.
NET LIQUIDITY [USD m]
COMMENTS
- Following the AGM approval on 30 April 2024, we distributed a dividend of EUR 9.25 per share or in total EUR 1.6 bn.
- Fixed income investments in the amount of USD 2.0 billion, which are held as a strategic liquidity reserve, are included in other financial assets.
15 May 2024 Investor Presentation - Q1 2024 Note: Figures as stated in the Investor Report Q1 2024. Rounding differences may occur.
Hapag-Lloyd
Market Update
Growing capacity is currently absorbed by higher demand, Cape of Good Hope diversions and slower vessel speeds
DEMAND GROWTH
INACTIVE FLEET [in TEU m]
GLOBAL ORDERBOOK
SCRAPPING [in TEU m]
15 May 2024 Investor Presentation - Q1 2024
Source: Accenture Cargo, Drewry, MDS Tansmodal, Alphaliner (April 2024)
Hapag-Lloyd
Way Forward
FY 2024 earnings outlook narrowed to upper half of previous range
| | | FY 2023 | Previous
FY 2024 Outlook | Updated
FY 2024 Outlook |
| --- | --- | --- | --- | --- |
| | Transport volume | 11,907 TTEU | Increasing slightly | Increasing slightly |
| | Freight rate | 1,500 USD/TEU | Decreasing clearly | Decreasing moderately |
| | Bunker
consumption price | 614 USD/mt | At previous year's
level | At previous year's
level |
| | Group EBITDA | 4,825 USD m | USD 1.1 to 3.3 bn
EUR 1.0 to 3.0 bn | USD 2.2 to 3.3 bn
EUR 2.0 to 3.0 bn |
| | Group EBIT | 2,738 USD m | USD -1.1 to 1.1 bn
EUR -1.0 to 1.0 bn | USD 0.0 to 1.1 bn
EUR 0.0 to 1.0 bn |
15 May 2024 Investor Presentation - Q1 2024 Note: Our earnings perspective is based on the assumption of an average exchange rate of USD 1.10 USD / EUR.
16
Hapag-Lloyd
4 Way Forward
Priorities for 2024
Grow our liner and terminal business in accordance with our Pure Play Plus model
Continue to improve service and operational quality to support our growth ambitions
Execute tangible initiatives to achieve significant emission reductions
Maintain a razor-sharp focus on costs
Prepare for seamless transition from THE Alliance to Gemini
Take care of our people and invest in their capabilities
15 May 2024 Journal Presentation - Q1 2024
Hapag-Lloyd
Appendix
A Appendix
Equity ratio of 64.4%
BALANCE SHEET [USD M]
| million USD | 31.3.2024 | 31.12.2023 |
|---|---|---|
| Assets | ||
| Non-current assets | 21,046.9 | 20,801.1 |
| of which fixed assets | 20,800.3 | 20,503.7 |
| Current assets | 11,669.1 | 11,334.1 |
| of which cash and cash equivalents | 6,289.0 | 6,435.2 |
| Total assets | 32,716.0 | 32,135.2 |
| Equity and liabilities | ||
| Equity | 21,072.5 | 20,787.2 |
| Borrowed capital | 11,643.5 | 11,348.0 |
| of which non-current liabilities | 5,039.2 | 4,810.0 |
| of which current liabilities | 6,604.3 | 6,538.0 |
| of which financial debt and lease liabilities | 5,735.1 | 5,572.1 |
| of which non-current financial debt and lease liabilities | 4,373.4 | 4,179.0 |
| of which current financial debt and lease liabilities | 1,361.6 | 1,393.2 |
| Total equity and liabilities | 32,716.0 | 32,135.2 |
FINANCIAL POSITION [USD M]
| million USD | 31.3.2024 | 31.12.2023 | 31.3.2023 |
|---|---|---|---|
| Financial debt and lease liabilities | 5,735.1 | 5,572.1 | 5,571.7 |
| Cash and cash equivalents | 6,289.0 | 6,435.2 | 19,231.0 |
| Money market transactions & funds / fixed income investments (other financial assets) | 2,030.3 | 2,044.2 | 2,024.0 |
| Net Liquidity | 2,584.2 | 2,907.2 | 15,683.3 |
| Unused credit lines | 725.0 | 725.0 | 725.0 |
| Liquidity reserve¹ | 9,044.3 | 9,204.4 | 21,980.0 |
| Equity | 21,072.5 | 20,787.2 | 31,820.5 |
| Assets | 32,716.0 | 32,135.2 | 42,986.6 |
| Equity ratio (%) | 64.4 | 64.7 | 74.0 |
Note: Figures as stated in the Investor Report Q1 2024. Rounding differences may occur.
Hapag-Lloyd
A Appendix
Net profit of USD 0.3 bn in Q1 2024
INCOME STATEMENT [USD M]
| million USD | Q1 2024 | Q4 2023 | Q1 2023 | QoQ Change | YoY change |
|---|---|---|---|---|---|
| Revenue | 4,623.4 | 4,079.2 | 6,028.1 | 13.3% | –23.3% |
| Transport and terminal expenses | –3,299.6 | –3,268.4 | –3,259.4 | 1.0% | 1.2% |
| Personnel expenses | –260.3 | –306.6 | –259.0 | –15.1% | 0.5% |
| Depreciation, amortisation and impairment | –545.8 | –556.8 | –504.7 | –2.0% | 8.1% |
| Other operating result | –115.7 | –192.4 | –147.6 | –39.9% | –21.7% |
| Operating result | 402.0 | –245.0 | 1,857.3 | n.m. | –78.4% |
| Share of profit of equity-accounted investees | –6.3 | –6.1 | 16.7 | 2.8% | n.m. |
| Earnings before interest and tax (EBIT) | 395.7 | –251.1 | 1,874.0 | n.m. | –78.9% |
| Interest result and other financial result | 40.4 | 53.9 | 162.8 | –25.1% | –75.2% |
| Other financial items | –11.5 | –2.9 | 62.5 | 291.8% | n.m. |
| Income taxes | –100.0 | –34.1 | –68.3 | 193.0% | 46.5% |
| Group profit / loss | 324.6 | –234.3 | 2,031.0 | n.m. | –84.0% |
| Basic/diluted earnings per share (in USD) | 1.82 | -1.36 | 11.54 | n.m. | –84.2% |
| EBITDA | 941.5 | 305.7 | 2,378.7 | 208.0% | –60.4% |
| EBITDA margin (%) | 20.4 | 7.5 | 39.5 | 12.9 ppt | -19.1 ppt |
| EBIT | 395.7 | –251.1 | 1,874.0 | n.m. | –78.9% |
| EBIT margin (%) | 8.6 | -6.2 | 31.1 | 14.7 ppt | -22.5 ppt |
Note: Figures as stated in the Investor Report Q1 2024. Rounding differences may occur.
12
Hapag-Lloyd
A Appendix
Well balanced maturity structure of financial liabilities
FINANCIAL DEBT PROFILE AS PER 31 MARCH 2024¹, [USD M]
| Facility | 31 Mar 2024 [USD m] |
|---|---|
| Vessel Financings | 1,957 |
| Container Financings | 643 |
| Total Vessel & Container | 2,600 |
| EUR Bond 2024 | 324 |
| Total Bonds | 324 |
| Corporate | 76 |
| Terminal Financings | 66 |
| Total Corpor. & Termin. | 142 |
| Pre IFRS 16 Leases | 0 |
| New IFRS 16 Leases | 2,684 |
| Total Finance Leases | 2,684 |
| Total financial liabilities | 5,749 |
Note: Rounding differences may occur
¹ Deviation from the total financial debt as shown in the balance sheet as per 31.03.2024 consists of transaction costs and accrued interest.
Hapag-Lloyd
A Appendix
Financial Calendar 2024
- ☑ January 2024 Preliminary Financials 2023
- ☑ 14 March 2024 Annual Report FY 2023
- ☑ 16 April 2024 Capital Markets Day 2024
- ☑ 30 April 2024 Annual General Meeting 2024
- ☑ 15 May 2024 Quarterly Financial Report Q1 2024
- 14 August 2024 Half-year Financial Report 2024
- 14 November 2024 Quarterly Financial Report 9M 2024
15 May 2024 Investor Presentation - Q1 2024
21
Hapag-Lloyd
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.
15 May 2024 Investor Presentation - Q1 2024
Hapag-Lloyd
Hapag-Lloyd Investor Relations
Ballindamm 25
20095 Hamburg
Tel: +49 (40) 3001-3705
[email protected]
All publication documents can be found here:
https://www.hapag-lloyd.com/en/ir.html