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.