Hapag-Lloyd FY 2015

Investor Presentation –
Full Year Results 2015
23-24 March 2016
1
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.
2
Opening remarks
3
Our deliverables
 We made very good progress and delivered what we promised
Our industry
 The market is tough, but there are some encouraging signs
Our position
 Hapag-Lloyd is well positioned to be successful in the future
Our track record
 Hapag-Lloyd achieved its ambitious earnings targets in 2015
Our objectives
 Hapag-Lloyd will remain a strong Top 5 player in the future
Our deliverables
Our industry
Our position
Our track record
Hapag-Lloyd look back on 2015
Our objectives
$
2015
2016
June 2015
Structural
improvements
announced
March 2015
New CFO
(Nicolás Burr)
4
July 2015
 7 x 9,300 TEU
ships delivered
 New cooperation in Latin
America
 16 „Old Ladies“
retired
August 2015
April 2015
6,000 reefer
5 x 10.500 TEU
containers
ships ordered
acquired
October 2015
 New CCO
(Thorsten
Haeser)
 Debt repricing
(interest
reduced)
September 2015
 Integration
of CSAV
completed
 B2/positive
outlook from
Moody‘s
 B+/stable
outlook from
S&P
December
2015
 OCTAVE 2
launched
 USD 125 m
early bond
redemption
November 2015
Successful IPO
(USD 300 m
primary)
March
2016
Inclusion
in SDAX
February 2016
2 x wide-beam
ships acquired
January 2016
Compete to
Win roll-out
Our deliverables
Our industry
Our position
Our track record
Strategic highlights: We have achieved a lot in 2015…
Our objectives
CUATRO
OCTAVE
CLOSE THE
COST GAP
COMPETE
TO WIN
IPO
1) CSAV container shipping activities (CCS)
5
 Integration of CSAV1) completed in Q3 2015
 USD 400 m net synergies (run-rate)
 OCTAVE with USD 200 m result improvements
 OCTAVE 2 launched in Q4 2015
 Increase in ship fleet efficiency and container ownership –
5 x 10.5k ships ordered and 42% container ownership
 Increase in revenue quality and better utilization of stronger
market presence – rollout started in January 2016
 Successful initial public offering on 6 November 2015 –
USD 300 m primary proceeds to increase fleet efficiency
Our deliverables
Our industry
Our position
Our track record
Financial highlights: …and delivered as promised
Our objectives
6
Transport volume
Freight rate
Revenue
7.4 TEU m
1,225 USD/TEU
USD 9,814 m
2014: 5.9 TEU m
2014: 1,427 USD/TEU
2014: USD 9,046 m
+25.3%
-14.2%
+8.5%
Transport expenses
EBITDA
Group profit
1,089 USD/TEU
USD 922 m
USD 126 m
2014: 1,363 USD/TEU
2014: USD 131 m
2014: USD -802 m
-20.1%
+602%
Earnings turnaround
Equity
Liquidity reserve
Financial debt
USD 5.5 bn
USD 1.0 bn
USD 4.3 bn
2014: USD 5.1 bn
2014: USD 1.1 bn
2014: USD 4.5 bn
Enhanced equity
Adequate liquidity
Reduced debt
Our deliverables
Our industry
Our position
Our track record
Tough market – Q4 results unsustainable
Freight rates expected to recover in 2016
Our objectives
CCFI composite index
Carriers‘ operating margins
Average carrier operating margins
1,300
1,250
1,200
1,150
1,100
1,050
1,000
950
900
850
800
750
700
650
600
Hapag-Lloyd EBIT margin
5%
3.9% 3.8%
0.8%
0%
-3.6%1)
-5%
Q3 Q4
Q1 Q2
Q3 Q4 Q1
Q2 Q3
Q4 Q1 Q2
2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015
0.8%
0.6%
-2.3%
50
0
-4.2%
-5.1%
-5.1%
-5.4%
-7.7%
Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr
2013
2014
2015
HapagLloyd
CMA
CGM
1) Includes financial statements of Hapag-Lloyd, CMA CGM, Maersk, Hanjin, MOL, APL, NYK and K-Line
7
7.6%
Source: Company information, Alphaliner, SSE
Maersk
NYK
APL
K-Line
MOL
Hanjin
Our deliverables
Our industry
Our position
Our track record
M&A and new alliances create more stability, but
it will take some time before things settle down
Our objectives
Recent M&A activities
Changing landscape in a fragmented market…
…including alliance dynamics
2M
+
G6
2,880
CKHYE
2,677
5,557
Ocean Three
2,362
 Contribution in kind vs. new shares
Non-alliance carriers
3,533
3,390
3,042
G6
Alliance
CKYHE
Alliance
Ocean 3
Alliance
544
 Integration completed in H2 2015
1,575
+
715
2M
Alliance
966
958
1,818
 COSCO charter/operate CSCL fleet
1) Pro-forma combined fleets assuming successful closing
8
Source: MDS Transmodal January 2016, Hapag-Lloyd data, only vessels >399TEU
397 357
349
203
Wan Hai
NYK
UASC
402
PIL
493
ZIM
532 509
Yang Ming
OOCL
MOL
Hamburg Süd
Hanjin
Evergreen
Hapag-Lloyd
COSCO / CSCL1)
MSC
Maersk
CMA CGM / APL1)
 Merger of two state conglomerates
558
860
 Closing expected by mid 2016
+
618 575
Hyundai
 All-cash acquisition (0.96x P/B)
K-Line
637
Our deliverables
Our industry
Our position
Our track record
Supply demand gap expected to decrease in 2016
Our objectives
Supply / demand development
18
Net capacity growth
Demand
16.2%
Net capacity growth
Supply
16
Postponements
Scrapping
0.8
2012
14
12
9.3%
10
8
6.1%
8.3%
6.7%
6
4.8%
5.2%
4
5.5%
4.7%
4.3%
2
0.9
2013
8.5%
1.4%
3.5%
4.9%
4.4%
2.3%
0
2015
1.0%
1.0
2014
Q1
Q2
Q3
Q4
0.4
0.5
0.4
0.2
-2
-4
2016e
1.0
2017e
1.0
0.2
0.3
1.4
0.3
1.4
-6
-8
-10.0%
-10
2009
9
2010
2011
2012
2013
2014
2015
2016e 2017e
Source: IHS Global Insight, Transmodal, Drewry , Clarksons
0.2
1.6
Our deliverables
Our industry
Our position
Our track record
Vessel sizes are reaching their economic maximum,
which will help reduce the orderbook going forward
Our objectives
Declining benefits of ever larger vessels
Comments
 Economies of scale slow down with increasing vessel size
Cost
 19,000 TEU ships still offer cost advantages compared to the first 15,000
TEU ships because of new vessel designs and operational concepts
 Approximately half of total savings are attributable to slow steaming
 The “true economies of scale” of ULC’s are only revealed in a
comparison with modern 14,000 TEU units
 The rapid technologic advance came from the increasing bunker price
Vessel size
Total cost for transport chain
Vessel cost per TEU
Handling costs per TEU
 Container ship size close to maximum, as potential cost advantages by
further increased sizes might be outpaced by increased handling costs
OECD study: Estimated total cost savings per TEU1)
80
Decreasing cost savings of bigger vessels1)2)
$ ,450
$ ,400
Old tech units at
22 kn
$ ,350
Modern tech units
at 22 kn
~15,000 TEU vessel
vs. ~8,500 TEU
$ ,300
Old tech units at
16 kn
~19,000 TEU vessel
vs. ~15,000 TEU
$ ,250
Modern tech units
at 16 kn
40
20
0
16 knots
USD / TEU
USD / TEU
60
$ ,200
18 knots
20 knots
22 knots
24 knots
$ ,150
8,000
10,000
12,000
14,000
16,000
Vessel size (TEU)
18,000
20,000
1) Based on bunker price of 350 USD/t aligned from liner assumption of 600 USD/t and on presumed round voyage of 21,000 nautical miles, comparing units of the latest 3 generations at 85% utilization
2) Starting point are 8,500 TEU vessels, build around 2003
10
Source: OECD study on the impact of mega ships, based on Dynamar 2015
Our deliverables
Capacity measures being taken on multiple trades,
as response to supply demand imbalances
Our industry
Our position
Our track record
Our objectives
Asia – Europe [weekly capacity]
420
2014
TTEU
Asia – North America [weekly capacity]
2015
-9.0%
TTEU
460
400
440
380
420
2014
2015
+4.9%
400
360
-4.5%
340
380
320
Jan
360
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Asia – Latin America
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Idle fleet soars to new record high
No. of services
Asia-West Coast South America
(Alphaliner)
Share of world fleet
-18%
11
Removal of about 14,000
TEU weekly or 18% of
total capacity on this
trade
Q4 2015
1,200
1,000
800
600
Source: Alphaliner weekly and monthly newsletter
4Q08
838
830
779
356
4Q09
7.8%
1,570
1,420 1,480
400
200
0
Q3 2015
11
1,600
1,400
9
Dec
4Q10
212
4Q11
4Q12
4Q13
4Q14
4Q15
Our deliverables
Our industry
Our position
Our track record
Step-change in results underlines our improved
competitiveness
Our objectives
Company
H1 2015 EBIT [USD m]
Maersk
1,266
CMA CGM
715
Company
10.1%
CMA CGM
9.0%
Maersk
HapagLloyd
299
5.7%
HapagLloyd
COSCO
262
7.0%
OOCL
OOCL
222
7.3%
NYK
Hanjin
206
6.0%
K-Line
H2 2015 EBIT [USD m]
180
165
108
72
-26
-68
2.4%
Maersk
1.5%
CMA CGM
2.3%
HapagLloyd
2.5%
OOCL
(0.9)%
Hanjin
(2.7)%
NYK
(3.0)%
K-Line
(4.8)%
APL
(4.1)%
MOL
FY 2015 EBIT [USD m]
1,431
894
407
6.0%
5.8%
4.1%
294
5.0%
119
1.9%
38
0.6%
Wan Hai
119
11.0%
Hanjin
ZIM
81
5.2%
APL
Evergreen
70
3.1%
MOL
NYK
64
2.1%
COSCO
NA
COSCO
NA
K-Line
54
1.9%
CSCL
NA
CSCL
NA
APL
37
1.3%
Evergreen
NA
Evergreen
NA
CSCL
35
1.3%
Hyundai
NA
Hyundai
NA
Yang Ming
16
0.8%
Wan Hai
NA
Wan Hai
NA
(1.3)%
Yang Ming
NA
Yang Ming
NA
(2.8)%
ZIM
NA
ZIM
NA
Hyundai
MOL
-27
-92
-86
Company
-120
-131
-15
(0.3)%
-83
(1.5)%
-223
(3.4)%
Note: For selected peers including terminals and other business if no liner figure available
12
Source: Company reports
x%
EBIT margin
Our deliverables
Our industry
Our position
Our track record
Well-balanced exposure to global trade with strong
position in attractive markets and niche businesses
Our objectives
Well-balanced global exposure
Transpacific
Atlantic
Attractive market presence
Atlantic
Far East
Reefer
Services
Other
22%
28%
Latin
America
EMAO 5%
Intra
Asia
8%
Intra
Asia
7%
Maersk
18%
Latin
America
30%

Historical
stronghold

Consolidated
and resilient

Balanced
leg profile
Latin America
LatAM –
NA
Transpacific
19%
Far East
17%
13
MSC
24%
EMAO
5%
Atlantic
21%
North
South
Trades
43%
1
CMA-CGM
8%
East
West
Trades
57%
Other
35%
1
HapagLloyd
19%
MSC
19%
Maersk Hamburg
9%
Süd
18%
Source: Alphaliner September 2015, CTS FY 2014, Dynamar
LatAM –
Far East
Other
48%
Maersk
20%
Strong niche businesses
4
Globally
Special
Cargo
Strong
presence
Dangerous
Cargo
Historical
stronghold
US Flag
1 of 3 certified carriers
Cabotage
Flag-protected
LatAM –
Europe
Other
22%
MSC
25%
Hapag4
Lloyd
13%
Hapag
Maersk
MSC
-Lloyd
Hamburg
19%
10%
16% Hamburg
Süd
Süd
9%
18%
2
niche market
Our deliverables
Our industry
Our position
Our track record
The right assets – We have a competitive fleet and
the means to further invest where needed
Our objectives
Vessel fleet as of 31 December 2015
Owned1)
Capacity [TEU]
>10,000 TEU
8,000 – 10,000 TEU
Current
fleet
Current
orderbook
131,674
131,674
52,945
10
10
5
Vessels
Capacity [TEU]
243,614
38
49,743
44,983
94,726
7
7
14
68,154
209,069
277,223
15
44
59
26,784
74,418
101,202
7,0166)
9
26
35
2
Vessels
Vessels
Capacity [TEU]
2,300 – 4,000 TEU
Vessels
Capacity [TEU]
<2,300 TEU
Average age 7.1 years5)
MODERN
66%
45%
34%
10-20 years
Owned 54%
Average vessel size [TEU]
32,261
2
19
21
523,8872)
442,2293)
966,116
59,961
71
106
177
7
Source: MDS Transmodal January 2016
>20 years
Chartered 46%
+440
+2,177
5,458
5,018
HL
Top 20
3,281
World Fleet
Total container fleet
1.6m TEU
Owned 42%
1) Incl. 3 long-term finance leases 2) Incl. 3 chartered-out 3) Incl. 1 chartered-out 4) Includes long-term (>3 years), mid-term (1-3 years) and short-term (<1 year) charters
5) Weighted average age by capacity 6) 2x 3,508 TEU vessels built 2015 acquired by HLAG from NileDutch in February / April 2016
14
0%
55%
Fleet ownership [%]
28,343
Vessels
Fleet age [% of total capacity]
≤10 years
3,918
Vessels
Capacity [TEU]
Total
329,030
10
Capacity [TEU]
4,000 – 6,000 TEU
85,416
28
Vessels
Capacity [TEU]
6,000 – 8,000 TEU
Chartered4)
Leased 58%
Our deliverables
Our industry
Our position
Our track record
Our Way Forward – Further improvements expected
from our existing initiatives
Our objectives
Strategic projects to enhance profitable growth
Tangible results in 2015 and further upside
Compete
to Win
Successful
implementation
Structural
Improvements
OCTAVE
CUATRO
Value-enhancing
investments
Performance
driven culture
Continuous
efficiency
improvements
Higher returns
on capital
Sustainable
profitable growth
2016
Qualitatively
enhanced
growth
Improved
profitability
Integration
of CSAV
2015
15
Close the
Cost Gap
Improvement of
revenue quality
2017
Our deliverables
Our industry
Our position
Our track record
OCTAVE 2 as additional optimization project –
Further efficiency improvements targeted
Our objectives
OCTAVE 2
G6
ENHANCEMENT
 Explore potential further
areas of cooperation
with partners
PROCUREMENT
 Reduction of expenses
in key categories, e.g.
inland transport, terminal
16
TRANSSHIPMENT
 Improvement of
transshipment
management
SHIP SIZE
 Increase of operational
intake of existing vessel
fleet
STOWAGE
 Further improvement of
stowage and increase of
process efficiency
SERVICE
PORTFOLIO
 Reduction of number of
(smaller) services to
reduce complexity and
improve profitability
WEIGHT /
UTILIZATION
 Improvement of
utilization by increased
focus on lighter cargo
DEMURRAGE &
DETENTION
 Increase collection of
Demurrage & Detention
by aligning and
improving schemes
across the organization
Our deliverables
Our industry
Our position
Our track record
Hapag-Lloyd significantly increased its EBITDA
to USD 922 m (margin: 9.4%) in full year 2015
Our objectives
Operational KPIs
Transport volume [TTEU]
Freight rate [USD/TEU]
Bunker price [USD/t]
Comments
FY 2015
FY 2014
∆/%
7,401
5,907
+1,494 / +25.3%
1,225
1,427
-202 / -14.2%
312
575
-263 / -45.8%
■ 2015 with full reflection of
CSAV transaction
Revenue
■ Transport volume increase
and lower freight rate
influenced by CCS
integration
Results
Exchange rate [EUR/USD]
1.11
1.33
-0.22 / -16.5%
Revenue [USD m]
9,814
9,046
+768 / +8.5%
EBITDA [USD m]
922
131
+791 / +602%
EBIT [USD m]
407
-509
+916 / NA
■ EBITDA margin at 9.4%
for full year 2015
EAT [USD m]
126
-802
+928 / NA
■ EBIT margin at 4.1% for
full year 2015
Investments [USD m]1)
836
439
+397 / +91%
1) Balance sheet investments in PPE
17
■ Step-change in FY 2015
due to significant
synergies and cost
savings from Project
CUATRO & Project
OCTAVE
Our deliverables
Transport volume increase due to CSAV integration –
Strong pressure on freight rates esp. in H2 2015
Our industry
Our position
Our track record
Our objectives
Transport volume [TTEU]
Freight rate [USD/TEU]
+25.3%
+7.5%
2014
2015
1,500
7,401
5,907
5,496
2013
1,600
1,400
1,300
1,200
-14.2%
1,100
Ø 1,482
Ø 1,427
Ø 1,225
1,000
2013
2014
Q1
2015
Q2
FX-rate (USD/EUR)
2013
1.40
2014
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Bunker price [USD/mt]
2015
2013
700
1.35
2014
2015
600
1.30
500
1.25
1.20
400
-16.5%
1.15
-45.8%
300
1.10
Ø 1.33
Ø 1.33
Ø 1.11
Ø 613
1.05
Q1
18
Ø 575
Ø 312
200
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Our deliverables
25.3% increase in transport volume driven by CSAV
integration – Balanced exposure to global trade
Our industry
Our position
Our track record
Our objectives
Transport volume [TTEU]
Transport
volume
[TTEU]
Growth
YoY [%]
0.2%
2013
2014
2015
5,496
+4.6%
5,907
+7.5%
7,401
+25.3%
2.3%
8.6%
7.5%
5.5%
6.0%
5.9%
12.3%
26.8%
32.0%
26.3%
16.8%
1,861
1,822
398
368
363
347
320
307
606
550
549
1,945
1,774
408
1,326
1,390
1,392
1,389
1,399
1,474
375
367
334
332
288
290
367
357
346
345
343
347
313
330
332
334
328
248
254
265
253
278
329
1,474
1,560
365
315
325
323
333
279
542
234
252
252
259
249
259
271
112
89
120
88
116
82
113
86
106
91
125
93
131
83
129
91
130
87
150
93
140
90
153
98
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q41)
Q1
Q2
Q3
Q4
Atlantic
Transpacific
1) HLAG + CCS as of 2 December 2014
19
379
Far East
Latin America
Intra Asia
Adjusted for pro-forma CCS transport volume in 2014,
EMAO
HLAG 2015 volume was -3.6% down year-on-year
Our deliverables
Freight rate dropped -202 USD/TEU to 1,225 USD/TEU –
HLAG average bunker price decreased to 312 USD/t
Our industry
Our position
Our track record
Our objectives
Freight rate1) [USD/TEU] vs. bunker price2) [USD/t]
Bunker cost /
TEU as share
of freight rate [%]
1,600
2013
2014
2015
20.9%
19.3%
10.1%
1,100
1,546
1,499
1,476
1,500
1,409
1,422
1,448
1,426
Adjusted for pro-forma
1,000
CCS freight rate in 2014,
HLAG 2015 Ø freight rate900
was -144 USD (-10.5%)
down year-on-year 800
1,4123)
1,400
1,331
Freight rate
627
1,300
700
1,264
622
603
1,200
Bunker
price
602
595
592
600
1,189
585
525
377
1,116
317
1,100
306
245
1,000
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Q2 2015
Q3 2015
Q4 2015
-202 (-14.2%)
Bunker
price2)
Ø 1,482
Ø 1,4273)
Ø 1,225
Ø 613
Ø 575
Ø 312
1) Hapag-Lloyd average freight rate per year
20
400
300
200
Q1 2013
Freight rate1)
500
2) Hapag-Lloyd average consumption price per year, excl. CCS (1M)
3) HLAG + CCS as of 2 December 2014
Our deliverables
Our industry
Our position
Our track record
Hapag-Lloyd remains focused on unit cost reduction
Our objectives
Transport expenses per TEU [USD/TEU]
1,363
-275
(-20.1%)
-146
5
Compete
to Win
Price
Consumption
4
Close the
Cost Gap
-42
12
-92
3
-6
Structural
Improvements
1,089
2
-128
(-12.1%)1)
OCTAVE
1
CUATRO
FY 2014
Expenses for
raw materials
and supplies
Port, canal and
terminal costs
1) Cost of purchased services 2014: 1,057 USD/TEU
21
Chartering,
leases and
container rentals
Container
transport costs
Maintenance
/repair /other
FY 2015
Our deliverables
Our industry
Our position
Our track record
Optimization of capital structure and financial position
with further tangible savings in 2015
Our objectives
Enhanced equity base [USDm]
+8.5%
+26.3%
5,068
5,497
4,013
Improved leverage position [USDm]
EBITDA
517
131
922
Net Debt/
EBITDA
6.6x
n.m.
3.9x
3,401
3,653
3,631
84.7%
Net Debt
2013
2014
2015
Gearing1)
Strong liquidity reserve [USDm]
735
95
640
2013
Unused credit lines
22
1,121
256
865
2014
Cash and cash equivalents
2014
2015
1
Debt repricing
Reduced interest by USD 40 m (over remaining life)
2
Bond optimization
Saving of bond interest of USD 12 m p.a.
3
Rating upside
Positive outlook on the back of the IPO
625
2015
66.1%
Successful financial measures
1,048
423
2013
72.1%
1) Gearing defined as net debt / equity
Our deliverables
Our industry
Our position
Our track record
Hapag-Lloyd reduced its debt by USD 192 m in 2015
and maintained an adequate liquidity reserve
Our objectives
Cash flow 2015 [USD m]
Operating
cash flow
Investing
cash flow
Financing
cash flow
635
-673
-201
-287
639
922
-831
1,121
131
43
88
865
Liquidity
reserve
31.12.2014
1,048
-804
256
281
-53
Net repayment
= USD -192 m
Free cash flow = USD -38 m
EBITDA
Working
Investments
capital and
other effects
Dividends
received /
Disinvestments
Capital
increase1)
1) Netted with dividends paid of USD 2.3 m and payments for capital increase of USD 5.6 m
23
423
-237
Debt
intake
Debt
repayment
625
Interest
payments
Payment
made from
hedges
Liquidity
reserve
31.12.2015
Our deliverables
Our industry
Our position
Our track record
We expect a moderate increase in EBITDA for 2016
Our objectives
Hapag-Lloyd guidance for 2016
Transport
volume
Clearly decreasing
Freight rate
Moderately decreasing
EBIT
24
Global economic growth
+3.4%
Increase in global trade
+3.4%
Increase in global container
transport volume
+3.5%
Increasing slightly
Bunker
consumption
price
EBITDA
Market forecasts for 2016
Increasing moderately
Hapag-Lloyd sensitivities for 2016
Transport
volume
+/- 100 TTEU
+/- USD <0.1 bn
Freight rate
+/- 50 USD/TEU
+/- USD ~0.4 bn
Bunker price
+/- 100 USD/t
+/- USD ~0.3 bn
EUR / USD
+/- 0.1 EUR/USD
+/- USD <0.1 bn
Clearly increasing
Source: IHS Global Insight February 2016, IMF WEO January 2016
Our deliverables
Our industry
Our position
Our track record
Our objective is to assure our strong competitive
position as one of the top players in the industry
Our objectives
To deliver on our objectives we need to remain focused
2016 PLAN
 Deliver the planned benefits of the existing programs
ALLIANCES
 Secure our position in a strong and integrated alliance
WAY FORWARD
CONSOLIDATION
25
 Shape Hapag-Lloyd for the future to assure Top 5 position
 Participate in industry consolidation only if right opportunity
arises
Summary remarks
26
Our deliverables
 We made very good progress and delivered what we promised
Our industry
 The market is tough, but there are some encouraging signs
Our position
 Hapag-Lloyd is well positioned to be successful in the future
Our track record
 Hapag-Lloyd achieved its ambitious earnings targets in 2015
Our objectives
 Hapag-Lloyd will remain a strong Top 5 player in the future
Q&A
27
The industry stays highly correlated with global growth –
Short term outlook at lower end of mid term 3-5% range
Container shipping volume and global GDP growth
2000 = Indexed to 100
2000 – 2008
2010 – 2014
2015 – 2017e
2x
1x
1x
GDP
multiplier
300
+3.7%
+4.9%
+1.0%
250
+8.1%
+3.1%
200
+3.5%
+3.4%
+3.6%
+3.6%
Transport volume
+4.2%
150
Global GDP
100
2000
2001
2002
2003
2004
2005
Global GDP
28
2006
2007
2008
2009
2010
2011
2012
Global container shipping volume (loaded TEU)
Source: IHS Global Insight February 2016; IMF WEO January 2016/October 2015
2013
2014
2015E
2016E 2017E
Current spot rates need to go up especially on Asia-Europe
Shanghai – Europe (SCFI)
Shanghai – USA (SCFI)
6,000
2,500
NEurope (USD/TEU)
Mediter. (USD/TEU)
USWC (USD/FEU)
USEC (USD/FEU)
HL Transpacific*
HL Far East*
5,000
2,000
4,000
1,500
3,000
1,000
2,000
500
205
195
0
Jan
14
Apr
14
Jul
14
Oct
14
Jan
15
Apr
15
Jul
15
Oct
15
LatAm
1,500
1,200
900
600
332
0
Jan
14
29
Apr
14
Jul
14
Oct
15
Jan
15
Apr
15
Jul
15
Oct
15
Source: Shanghai Shipping Exchange (18 March 2016)
Jan
16
761
0
Jul
14
Oct Jan Apr
14 15 15
Jul
15
Oct Jan
15 16
Comments
HL Latin America*
300
1,000
Jan Apr
14 14
Jan
16
Shanghai – Latin America (SCFI)
1,800
1,659
 Shanghai Containerized Freight Index (SCFI) only
reflects Shanghai outbound rate development
 Freight rates especially on Asia / Europe trade
remain volatile
 Freight rates on Transpacific trade tend to be less
volatile while freight rates on Latin America show a
downward trend
 Hapag-Lloyd freight rates with more stable
development
* Hapag-Lloyd trade definition
Close the Cost Gap: Investments done throughout
the cycle – Further investments to come
Recent projects…
… with more to come

 10 x 13,200 TEU
Hamburg
Express Class

 Delivered 2012 – 2014
 Cost efficient growth
Secure
competiveness
on East West
and other
Trades
 Hapag-Lloyd has purchased
two 3,500 TEU vessels suited
for the Latin America trade
 12 ULCVs will come into
service within G6
 Further investment planning
for the upcoming years being
finalized
 7 x 9,300 TEU
C-Class
 Investments in niche markets
where and when needed
 Delivered 2014 – 2015
 1,400 reefer plugs
 Investment in new containers
Consolidate
leadership in
Latin America
30
 5 x 10,500 TEU (ordered)
 Best ship for the trade
 2,100 reefer plugs
Invest in
container
boxes
 Increase ownership ratio
to 50%+ over time
 Positive earnings impact
expected from purchasing
rather than renting
Compete to Win: Significant potential to further optimize
customer profiles and cargo mix
Improve profitability per customer (example)
Lane 3
Keep
Lane 2
Lane 1
 Decrease share
Contribution
Contribution
 Increase share
Bubble size represents
market volume in TEU
Grow
Lane 5
Improve cargo mix (example)
Reduce
Lane 4
0
25
50
75
Milling
products
100
Hapag Lloyd Share %
Vehicle
Machinery
Beverage
Paper
Pilots successfully completed and implementation ramping up
2015
May
Sales
Organisation
Sales
Process
31
Jun
Deep Dives in
Europe, Asia,
North America
Jul

Aug
Sep
2016
Oct
Nov
Solution development
Pilots in Asia, North America, Europe


Dec
Jan
Rollout
Preparation
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Sales Organisation
Sales Organisation
Rollout
inOrganisation
4 Regions
Sales
Rollout
4 Regions
SalesinOrganisation
Rollout in 4 Regions
Rollout in 4 Regions

Sales Process rollout in 3 waves
Development
Pilots and Deep Dives (DD)
Global Roll-out
Benefits from a reduced bunker price and consumption
Bunker price [Rotterdam; USD/mt]
1,200
MFO
1,029
922
1,000
800
MDO
602
572
200
462
236
408
354
1 Jan 2013
1 Jan 2014
212
185
0
1 Jan 2015
340
162
MFO
97%
3% MDO
∑ = 2,924 k mt
3.39
0.52
0.49
0.45
2,860
2,924
3,351
2,770
90
2,824
100
2,934
MDO
2013
20143)
2015
417
Bunker expenses5) [USD/TEU; USD m]
FY 2015
MFO
-11%
3.812)
MFO
1 Jan 2016
Bunker mix [MFO; MDO]
FY 20143)
Bunker cons.
per slot1)
4.09
Bunker cons.
per TEU
606
822
600
400
Bunker consumption [mt/slot; mt/TEU; k mt]
Bunker
expenses5)
per TEU
88%
347
160
1,908
12%
∑ = 3,351 k mt
306
1,810
1,185
MDO4)
2013
1) Average nominal deployed capacity in TEU 2) HLAG excluding CCS
3) HLAG + CCS as of 2nd December 2014
categorization differences may occur 5) Expenses for raw materials and supplies
32 Source: Bloomberg (10 March 2016)
2014
2015
4) Due to CCS integration slight
Hapag-Lloyd with group profit of USD 126 m
Income statement [USD m]
FY 2015
Revenue
FY 2014
Transport expenses [USD m]
% change
9,814.4
9,045.8
8%
215.0
155.2
39%
Transport expenses
-8,056.9
-8,052.6
0%
Personnel expenses
-537.8
-535.9
0%
Deprecation, amortization and impairment
-515.7
-640.1
-19%
Other operating
expenses
-574.6
-522.7
10%
344.4
-550.3
-163%
Share of profit of equity-acc. investees
31.6
45.4
-30%
Other financial result
30.7
-3.8
n.m.
406.7
-508.7
n.m.
Other operating
income
Operating result
Earnings before
interest and tax
(EBIT)
Interest result
-252.3
-278.6
-9%
Income taxes
28.0
14.9
88%
126.4
-802.2
n.m.
Group profit/loss
33
FY 2015
FY 2014
%
change
Expenses for raw materials
and supplies
Cost of purchased services
Thereof
Port, canal and terminal costs
Chartering, leases and
container rentals
Container transport costs
Maintenance/repair/other
1,185.3
1,810.2
-35%
6,871.6
6,242.5
10%
3,070.5
1,242.7
2,698.0
921.5
14%
35%
2,384.7
173.7
2,446.9
176.1
-3%
-1%
Transport expenses
8,056.9
8,052.6
0%
Transport expenses per TEU [USD/TEU]
Expenses for raw materials
and supplies
Cost of purchased services
Thereof
Port, canal and terminal costs
Chartering, leases and
container rentals
Container transport costs
Maintenance/repair/other
Transport expenses
160.2
306.4
-48%
928.5
1,056.8
-12%
414.9
167.9
456.7
156.0
-9%
8%
322.2
23.5
414.2
29.8
-22%
-21%
1,088.6
1,363.2
20%
Hapag-Lloyd with equity ratio of 45.5%
Balance sheet [USD m]
Financial position [USD m]
GROUP NET ASSET POSITION
GROUP NET ASSET POSITION
31.12.2015
30.09.2015
31.12.2014
Cash and cash equivalents
Assets
Non-current assets
Of which fixed assets
Current assets
Of which cash and
cash equivalents
Total assets
542.8.
864.7.
Financial debt
4,256.3
4,362.0
4,518.1
10,301.7
10,381.0
10,022.3
Net debt
3,631.3
3,819.2
3,653.4
1,704.8
1,613.0
2,179.7
423.4
486.4
255.8
625.0
542.8
864.7
Liquidity reserve
1,048.4
1,029.2
1,120.5
Equity
5,496.8
5,240.6
5,068.1
12,068.5
12,055.8
12,271.0
Gearing (net debt/equity) (%)
66.1%
72.9%
72.1%
Equity ratio (%)
45.5%
43.5%
41.3%
5,240.6
5,068.1
Borrowed capital
6,571.7
6,815.2
7,202.9
Of which non-current liabilities
3,958.4
4,275.1
4,537.7
Of which current liabilities
2,613.3
2,540.1
2,665.2
Of which financial debt
4,256.3
4,362.0
4,518.1
3,591.7
3,857.7
4,022.2
664.6
504.3
495.9
12,068.5
12,055.8
12,271.0
thereof
34
625.0.
10,091.3
5,496.8
Total equity and liabilities
31.12.2014
10,442.8
Equity
Current financial debt
30.09.2015
10,363.7
Equity and liabilities
Non-current financial debt
31.12.2015
Unused credit lines
Hapag-Lloyd was successfully listed on 6 Nov 2015
Hapag-Lloyd executed IPO in Q4 2015
Stock trading (since 6-Nov)
Basic data
Frankfurt Stock Exchange
Hamburg Stock Exchange
120
Market segment
Regulated market
(Prime Standard)
80
ISIN
DE000HLAG475
Stock exchange
100
60
40
WKN
HLAG47
Ticker Symbol
HLAG
Primary listing
6 November 2015
Placement price
EUR 20
Number of shares
118,110,917
6-Nov
6-Dec
Hapag-Lloyd
NOL
DAX Global Shipping
USD 300 m
Lock-up
4 May 2016
Maersk
OOCL
Source: Bloomberg (18 March 2016)
6-Mar
Evergreen
SDAX
Free float
CSAV
15.5%
31.4%
12.3%
20.2%
Kühne
35
6-Feb
Shareholder structure
TUI
Primary component
6-Jan
20.6%
HGV
Hapag-Lloyd has issued three bonds on debt capital markets
EUR Bond 2019
EUR Bond 2018
USD Bond 2017
Issuer
Hapag-Lloyd AG
Hapag-Lloyd AG
Hapag-Lloyd AG
Volume
EUR 250 m
EUR 400 m
USD 125 m1)
Minimum order
100,000 EUR
100,000 EUR
150,000 USD
Issue date
November 20, 2014
September 20, 2013
October 01, 2010
Maturity date
October 15, 2019
October 01, 2018
October 15, 2017
Redemption prices
as of Oct 15, 2016: 103.750%
as of Oct 15, 2017: 101.875%
as of Oct 15, 2018: 100%
as of Oct 15, 2015: 102.4375%
as of Oct 15, 2016: 100%
Coupon
7.50%
7.75%
9.75%
Coupon payment
April 15 and October 15
January 15 and July 15
April 15 and October 15
ISIN
XS1144214993
XS0974356262
USD33048AA36
WKN
A13SNX
A1X3QY
A1E8QB
Listing
Open market of the LxSE
Open market of the LxSE
Open market of the LxSE
Trustee
Deutsche Trustee Company Limited
Deutsche Trustee Company Limited
Deutsche Bank AG, London Branch
1) Partially redeemed by nominal USD 125 m on 30 Dec 2015
36
as of Oct 01, 2015: 103.875%
as of Oct 01, 2016: 101.938%
as of Oct 01, 2017: 100%
Hapag-Lloyd bonds continuously trade above par
Hapag-Lloyd bonds
110
101.9
101.8
101.3
100
90
Jan/14
May/14
Sep/14
HL USD 9.75% 2017
Jan/15
May/15
HL EUR 7.75% 2018
Sep/15
Jan/16
HL EUR 7.50% 2019
YTW Hapag-Lloyd bonds
Current Yield
Current Trading
37
Source: Citi (18 March 2016)
9.75% 2017
7.75% 2018
7.50% 2019
7.4%
6.5%
6.7%
101.3%
101.8%
101.9%
Imbalances: Hapag-Lloyd outperforms the market
Number of full non-dominant leg containers
per 10 full dominant leg containers1)
Container Steering
Special Know-How/ IT
Dominant
leg
Advantageous customer
portfolio
Transpacific
Cost-efficient management of
equipment flows
Transatlantic
More balanced trades, reduction in
empty container moves
EuropeFar East
10
7
5
7
6
7
6
Hapag-Lloyd
1) This ratio reflects the imbalance in the market (industry average) vs. Hapag-Lloyd imbalance of transport volumes
(the higher the ratio, the more balanced in both directions). Ratio has been rounded
38
Source: IHS Global Insight February 2016; Hapag-Lloyd FY 2015; market data adapted to Hapag-Lloyd trade lane definition
Market
Long-standing and diversified customer base of blue chip
customers and a diversified base of goods transported
Highly diversified customer base1)
Strong relationship with blue chip customers
100%
31%
Top 50 Customers
(∑ = 36%)
22%
10%
9%
9%
18%
TOP 10
TOP
11-25
TOP
26-50
TOP
51-100
TOP
101-500
> 500
Total
Hapag-Lloyd has a highly diversified customer base:
No customer has a share greater than 5% of HL’s revenue
Balanced portfolio of goods transported2)…
… in a diversified customer portfolio3)
Automobile
Others 4)
18%
Beverages
6%
3%
Chemical
13%
Others
4%
Textile 7%
45%39%
5% Electronic
Paper & Forest
11%
15%
Foodstuff
4%
10%
Machinery Furniture
8%
Metal
39
Direct
customers 
57%
Diversified exposure
 Freight forwarders –
secure volumes
in both directions,
optimizing trade flows
 Direct customers – better
visibility on future volumes
Freight
forwarders
1) Based on FY 2015 volumes EoV 2) Based on FY 2015 volumes EoV
3) Based on FY 2015 volumes EoV 4) Others: FAK = Freight of all kinds
Henrik Schilling
Senior Director Investor Relations
Tel +49 40 3001-2896
Fax +49 40 3001-72896
[email protected]
http://ir.hapag-lloyd.com/websites/hapaglloyd/English/0/ir-home.html
40