Hapag-Lloyd AG

Investor Presentation • Mar 14, 2024

Investor Presentation

FY 2023 Results

Investor Presentation

Hamburg, 14 March 2024

FY 2023 Results Hamburg, 14 March 2024

Key Statements

Our long-term contracts and diversified geographic exposure have helped us to achieve a strong financial result in a weak market environment

We made important strategical progress with the establishment of our Terminal & Infrastructure business

Furthermore, we significantly boosted customer satisfaction and gained further momentum on our sustainability efforts

For 2024, we expect a solid start to the year, but challenging market fundamentals and geopolitical risks weigh on earnings outlook

2

With our new Strategy 2030 we will build on our previous achievements and adapt where necessary to new market realities

In 2023, we achieved the third best result in the Group's history

EBIT [USD bn ]

RETURN ON INVESTED CAPITAL [%]

1 Highlights

0

After a weak start, container volumes gradually recovered while rates reached unsustainably low levels on many trades in 2023

GLOBAL CONTAINER VOLUMES

MARKET DEVELOPMENT 2023

• Container volumes were on par with the previous year
• Effective capacity increased strongly due to delivery of newbuildings and unwinding of congestion
• Spot freight rates reached unsustainably low levels on many trades in the second half of the year
• Inflationary pressures kept transport costs at high levels
• Attacks on vessels in the Red Sea led to a surge in spot rates again in December

Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 Jan-23 Jul-23 Jan-24

1 Highlights

We made significant progress along our strategic agenda in 2023

• Reached 2m TEU in standing vessels capacity, thereby securing our global Top 5 position
• 82 vessels modernized under Fleet Upgrade Program to increase fuel efficiency and reduce CO²
• Successful equipment of >1 million dry containers with real-time tracking devices

FLEET & DIGITALISATION TERMINAL & INFRASTRUCTURE

• Completed 3 transactions, thereby gaining access to 17 terminals in Europe, India and Latin America
• Establishment of Terminal Holding in Rotterdam to capture value and realize synergies

4

• Improved our customer satisfaction with Net Promotor Score (NPS) to 58 in 2023 (highest level since survey began in 2018)
• Optimized our network to current market environment (Red Sea/Panama Canal) and established dedicated teams for hinterland business

QUALITY SUSTAINABILITY & PEOPLE

• Clearly reduced our CO² footprint by more than 800,000 tonnes as compared to 2022
• Launch of "Ship Green" to offer our customers up to 100% emission-free sea transport
• Set up of Hapag-Lloyd Academy to invest in our people's skills and capabilities

Gemini Cooperation

Ambition:

Industry leading schedule reliability of >90% Accelerate decarbonization Maintain cost competitiveness

Gemini Cooperation will be an important cornerstone for our quality ambitions

Hapag-Lloyd and Maersk agreed on a long-term operational partnership starting February 2025

A strong partnership on key East-West trades: Far East/Europe & Mediterranean, Transpacific (excl. India), Atlantic (excl. Canada) and Middle East

An innovative hub & spoke concept with an efficient mainliner network, complemented by a dedicated shuttle network and efficient large tonnage

Strong terminal operations in key hubs that are (mostly) operated by the partners allowing for "side-by-side transshipment operations"

Sustainability commitments with annually increasing sustainability targets

2023 was once again a very successful year for Hapag-Lloyd

FY 2023 GROUP KEY FIGURES

Transport volume¹ 11.9 MTEU PY: 11.8 MTEU

Revenue USD 19.4 bn PY: USD 36.4 bn

EBITDA USD 4.8 bn

PY: USD 20.5 bn

Free Cash Flow USD 3.6 bn PY: USD 16.3 bn

Net Cash USD 2.9 bn PY: USD 13.4 bn

Dividend EUR 9.25/ share

PY: EUR 63.00/ share

7

Q4 EBIT was negative for the first time since 2016, owing to unsustainable freight rate environment

14.03.2024 Investor Presentation - FY 2023 Note: Figures as stated in the Investor Report FY 2023. Rounding differences may occur.

Liner Shipping recorded a strong start to the year, but results declined sequentially

Liner Shipping

USD m	FY 2023	FY 2022
Revenue	19,210	36,380
EBITDA	4,775	20,371
EBITDA margin	24.9%	56.0%
EBIT	2,717	18,365
EBIT margin	14.1%	50.5%

• Revenue declined mainly due to 48% lower freight rates
• Transport costs improved significantly, but not enough to offset deterioration in freight rates
• In a softer market environment, we still managed to achieve a very good Liner Shipping result

8

2 Financial Performance Liner Shipping Segment

FREIGHT RATE DEVELOPMENT [USD/TEU]

9

The average freight rate dropped by 48% while volumes were up 0.5% in 2023

Africa

TRANSPORT VOLUME DEVELOPMENT BY TRADE [TTEU]

2 Financial Performance Liner Shipping Segment

10

Unit cost decreased in 2023 due to dissipation of congestion and cost reduction measures - Q4 impacted by Red Sea diversions

Terminal activities were impacted by one-off effects related to the acquisitions in 2023

11

Terminal & Infrastructure

USD m	FY 2023	FY 2022
Revenue	202.3	24.3
EBITDA	49.7	103.2
EBITDA margin	24.6%	n/m
EBIT	20.5	101.9
EBIT margin	10.1%	n/m

Note: Since the new segment is still in the process of being formed, it does not reflect the results of a full twelve-month period. The following companies have been added in 2023: Spinelli as of 01/23, J M Baxi as of 04/23, SAAM as of 08/23

• Revenue increase driven by first time consolidation of SAAM Ports & Logistics since Aug 2023
• Operating result in 2023 was negatively impacted by transaction cost of USD 15.4 m and additional ramp-up cost for the newly acquired businesses
• 2022 result included a net positive effect of USD 52.2 m in connection with the acquisition of Container Terminal Wilhelmshaven (CTW)

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

CASH FLOW FY 2023 [USD m]

2 Financial Performance

With a net liquidity position of USD 2.9 bn, the balance sheet ratios remain very strong

29,795 20,787 EQUITY [USD m] NET LIQUIDITY [USD m] 72.1% Equity ratio 64.7%

LIQUIDITY RESERVE [USD m]¹

13

¹From 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 paid a dividend to our shareholders in the amount of USD 12.2 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.

Virtual AGM scheduled for 30 April 2024

We propose a dividend of EUR 9.25 per share to the AGM

TOTAL DIVIDEND DISTRIBUTION [EUR m]

DPS AND PAYOUT RATIO¹ [EUR]

14

3 Market Update

Red Sea security issues and Panama Canal draft restrictions continue to cause disruptions, resulting in short-term capacity shortage

RED SEA

• Due to attacks on vessels, major carriers continue to avoid the Red Sea and instead use the longer route via the Cape of Good Hope.
• Diversions absorb around 5-9% of global container vessel capacity.
• While a quick solution is unlikely, the influx of new tonnage in the next months will ease the capacity shortage.

PANAMA CANAL

• Situation improved slightly due to better than expected water levels in the Gatun lake.
• However, with draft restrictions and daily transit limits in place, the canal's capacity is still well below normal.

Market fundamentals remain challenging despite capacity absorption from Cape of Good Hope diversion

GLOBAL DEVELOPMENTS OF SUPPLY AND DEMAND

Container Volume Growth [%] Fleet Growth [%]

Sources: Container Volume Growth: CTS data until 2023; Accenture Cargo for 2024 and 2025; Supply: Drewry Container Forecaster Q4 2023, Clarksons Container Intelligence Monthly February 2024

GLOBAL ORDERBOOK

INACTIVE FLEET

16 14.03.2024 Investor Presentation - FY 2023

4 Way Forward

Solid start to the year expected but a volatile freight rate environment and geopolitical risks weigh on FY 2024 earnings outlook

	FY 2023	FY 2024 Outlook
Transport volume	11,907 TTEU	Increasing slightly
Bunker consumption price	614 USD/mt	At previous year's level
Freight rate	1,500 USD/TEU	Decreasing clearly
Group EBITDA	4,825 USD m	USD 1.1 to 3.3 bn EUR 1.0 to 3.0 bn
Group EBIT	2,738 USD m	USD -1.1 to 1.1 bn EUR -1.0 to 1.0 bn

• It remains unclear when the Red Seas passage will be safe again
• The high number of ship deliveries will lead to a gradual increase in transport capacity, which is likely to have a negative impact on the freight rate development
• Longer voyage times and the inclusion of shipping in the EU ETS are expected to more than offset the planned cost-cutting measures
• Against this background, the Executive Board of Hapag-Lloyd AG expects that a large part of the projected result will be generated in the first half of the 2024 financial year
• In view of the highly volatile development of freight rates and major geopolitical challenges, the outlook is subject to a high degree of uncertainty

With Strategy 2030 we have further refined our strategic targets and adapted them to the changed market conditions

Pillars of our new strategy

Save the Date

virtual Capital Markets Day 2024 16 April 2024 2pm – 4pm CEST

19

21

Equity ratio of 64.7%

million USD	31.12.2023	31.12.2022
Assets
Non-current assets	20,801.1	18,034.8
of which fixed assets	20,503.7	17,876.5
Current assets	11,334.1	23,263.7
of which cash and cash equivalents	6,435.2	16,264.5
Total assets	32,135.2	41,298.5
Equity and liabilities
Equity	20,787.2	29,795.1
Borrowed capital	11,348.0	11,503.4
of which non-current liabilities	4,810.0	4,674.6
of which current liabilities	6,538.0	6,828.7
of which financial debt and lease liabilities	5,572.1	5,803.8
of which non-current financial debt and lease liabilities	4,179.0	4,317.9
of which current financial debt and lease liabilities	1,393.2	1,485.9
Total equity and liabilities	32,135.2	41,298.5

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

million USD	31.12.2023	31.12.2022
Financial debt and lease liabilities	5,572.1	5,803.8
Cash and cash equivalents	6,435.2	16,264.5
Money market transactions & funds / fixed income investments
(other financial assets)	2,044.2	2,976.0
Net Liquidity	2,907.2	13,436.7
Unused credit lines	725.0	725.0
Liquidity reserve	9,204.4	19,965.5
Equity	20,787.2	29,795.1
Assets	32,135.2	41,298.5
Equity ratio (%)	64.7	72.1

Net profit of USD 3.2 bn in FY 2023

INCOME STATEMENT [USD M]

				QoQ	YoY
million USD	Q4 2023	Q3 2023	Q4 2022	Change	change	FY 2023	FY 2022	Change
Revenue	4,079.2	4,464.5	7,961.7	–8.6%	–48.8%	19,390.8	36,401.1	–46.7%
Transport and terminal
expenses	–3,268.4	–3,303.0	–3,664.7	–1.0%	–10.8%	–12,901.1	–14,469.4	–10.8%
Personnel expenses	–306.6	–292.8	–343.3	4.7%	–10.7%	–1,113.6	–1,034.8	7.6%
Depreciation, amortisation
and impairment	–556.8	–516.2	–500.4	7.9%	11.3%	–2,086.5	–2,006.6	4.0%
Other operating result	–192.4	–123.6	–137.5	55.6%	40.0%	–569.0	–517.8	9.9%
Operating result	–245.0	228.9	3,315.8	–207.0%	–107.4%	2,720.5	18,372.6	–85.2%
Share of profit of equity
accounted investees	–6.1	–1.3	8.5	371.5%	–172.1%	15.1	94.8	–84.1%
Result from investments	0.0	–0.1	–0.1	n.m.	–120.5%	2.4	–0.1	n.m.
Earnings before interest
and tax (EBIT)	–251.1	227.5	3,324.1	n.m.	n.m.	2,738.0	18,467.3	–85.2%
Interest result and other
financial result	53.9	53.1	105.3	1.6%	–48.8%	380.2	23.8	n.m.
Other financial items	–2.9	2.2	–5.4	n.m.	–46.1%	163.9	–320.3	n.m.
Income taxes	–34.1	9.9	–129.4	n.m.	–73.6%	–91.1	–211.4	–56.9%
Group profit / loss	–234.3	292.7	3,294.7	–180.0%	–107.1%	3,191.1	17,959.4	–82.2%

Well balanced maturity structure of financial liabilities

FINANCIAL DEBT PROFILE AS PER 31 DECEMBER 2023¹ , [USD M]

Facility	31 December 2023 [USD m]
Vessel Financings	1,930
Container Financings	670
Total Vessel & Container	2,600
EUR Bond 2024	332
Total Bonds	332
Corporate	80
Terminal Financings	74
Total Corpor. & Termin.	154
Pre IFRS 16 Leases	1
New IFRS 16 Leases	2,503
Total Finance Leases	2,504
Total financial liabilities	5,5901

Liabilities to banks Bonds Liabilities from lease and charter contracts Other financial Liabilities 2

Note: Rounding differences may occur

24

¹Deviation from the total financial debt as shown in the balance sheet as per 31.12.2023 consists of transaction costs and accrued interest.

²Liabilities from lease and charter contracts consist of USD 1 million liabilities from former finance lease contracts and USD 2,503 USD million from lease contracts presented as on-balance financial liability due to first-time application of IFRS 16

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

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

27