Investor Presentation
Q1 2021 Results
Hamburg, 12 May 2021
Opening Remarks
1
2
3
4
Current developments
Financials
Market Update
Way forward
Q1 2021 was driven by continued strong demand, high freight rates and operational bottlenecks Transport volume development was unsatisfactory
Significant investments in Customer Service quality but more to be done
We improved profitability, strengthened our balance sheet further and earned our cost of capital
Very strong free cash flow generation resulting in a further reduction of net debt
Due to the strong operational performance, rating agencies upgraded our rating once again
Global container transport volumes are expected to rise significantly in 2021e
Order activity has recently picked up and the orderbook is expected to grow slightly further Limited scheduled deliveries will lead to a balanced supply / demand in 2021e & 2022e
On the back of an ongoing positive earnings trend, our outlook for FY 2021 has been confirmed
Operational challenges, such as infrastructure bottlenecks remain a major uncertainty
Focus on improvements on schedule reliability, service quality and customer satisfaction
2
1 Current developments
Q1 2021 was characterized by continued strong demand, resulting in port congestion and equipment scarcity …
OPERATIONAL CHALLENGES | OUR MEASURES |
Port congestions
Record container volumes are resulting in port congestion and long waiting times for vessels to get a berth
Terminal capacity is further reduced by labor shortages due to COVID-19 and a shortage of truck drivers and feeder vessels
We have chartered in additional vessels and deployed |
extra-loaderswhere possible |
We have ordered additional container boxes and increased |
repair and maintenance of older containers |
We double our efforts to maximize allocation and will see the |
first effects in Q2 |
Increasing container usage
[days]
+20% | |
Ø Q1-20 | Ø Q1-21 |
Average voyage delay
[days]
x 3 | |
Ø Q1-20 | Ø Q1-21 |
We moved capacity to high-demand trades and optimized |
our service network further |
We re-routedcargo through alternative gate-waysto bypass |
congested ports |
We added people and IT capacity to improve customer |
satisfaction and service quality |
The blockage of the Suez Canal further exacerbated the already difficult operational situation.
But service quality needs to be improved much more!
3 Source: Company data, Sea-Intelligence (April 2021)
1 Current developments
… which led to increased freight rates, but also to significantly higher operational costs and pressure on our operational performance
Increased Freight Rates | Global Schedule Reliability |
3,000 | SCFI | CCFI | 100 | |||||||
2,500 | Driven by demand | 80 | ||||||||
2,000 | ||||||||||
surge and related | 60 | |||||||||
operational challenges | ||||||||||
1,500 | ||||||||||
1,000 | 40 | |||||||||
500 | 20 | |||||||||
0 | 0 | |||||||||
Q1 20 | Q2 20 | Q3 20 | Q4 20 | Q1 21 | Q1 20 | Q2 20 | Q3 20 | Q4 20 | Q1 21 |
Rise in Charter Rates1)
160 | +219% | |||
120 | ||||
80 | ||||
40 | ||||
0 | ||||
Q1 20 | Q2 20 | Q3 20 | Q4 20 | Q1 21 |
Higher Bunker Prices
600 | ||||
500 | +240% | |||
400 | ||||
300 | ||||
200 | ||||
100 | ||||
MFO 0.5% RTM | ||||
0 | ||||
Q1 20 | Q2 20 | Q3 20 | Q4 20 | Q1 21 |
4 | Source: SSE (2 April 2021), Platts Bunkerwire (1 April 2021), Clarksons (April 2021), SeaIntel (various issues) | 1) Containership Timecharter Index: Indexed charter rates based on USD/TEU for 1993=100 |
2 Financials
We were able to improve profitability, strengthen our balance sheet further and to earn our cost of capital
Operational KPIs
P&L effects
Volume | 2,975 |
TTEU | PY: 3,053 |
Rate | 1,509 |
USD/TEU | PY: 1,094 |
Bunker | 384 |
USD/mt | PY: 523 |
Volume declined by 2.6% YoY as a result of port congestion and a lack of capacity to cope with the situation
Average freight rate increased by 37.9% YoY mainly due to a continuously high demand and operational disruptions
Average bunker consumption price decreased by 139 USD/mt due to lower bunker market prices
Revenue | 4,903 |
USD m | PY: 3,684 |
EBITDA | 1,909 |
USD m | PY: 517 |
EAT | 1,451 |
USD m | PY: 27 |
FY revenue increased strongly (33.1% YoY) mainly due to higher average freight rates
EBITDA increased by USD 1,392 m on the back of higher freight rates and lower bunker expenses…
…which also led to a substantially increased net profit (USD +1,423 m)
Balance sheet
Financial KPIs
Assets | 20,293 |
USD m | |
PY: 18,640 | |
Fin. Debt | 6,255 |
USD m | PY: 6,305 |
Liquidity | 2,479 |
USD m | PY: 1,421 |
Total assets increased by USD 1,653 m vs. 31 Dec 2020 mainly due to higher cash and add. RoU for vessels and container
Fin. Debt almost unchanged vs. 31 December (-0.8%); Repayments of financial debt partly offset by higher lease liabilities
Liquidity increased significantly by USD 1,058 m driven by a strong cash flow generation
FCF | 1,554 |
USD m | |
PY: 302 | |
Net debt / | 1.0x |
EBITDA | PY: 1.8x |
ROIC 43.3%
- PY: 4.5%
Strong Free Cash Flow generation due to improved profitability and low investments…
…with the result that net debt to EBITDA was further reduced substantially
Return on Invested Capital exceeded WACC of 6.0% clearly
5 Note: Figures as stated in the Investor Report Q1 2021. Rounding differences may occur.
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Hapag-Lloyd AG published this content on 12 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2021 15:49:04 UTC.