1
Investor Presentation – 7th Annual Invest in International Shipping Forum
New York, 21 March 2013
2
Hapag-Lloyd is one of the world’s leading container shipping companies
Hapag-Lloyd at a glance
Pure play container shipping company
Headquartered in Hamburg, Germany
Founding member of Grand and G6 Alliance
144 container ships with 670 TTEU
Transport volume of 5.3 million TEU in 2012
Linking around 500 ports in over 120 countries
Approx. 22.100 customers around the world
Employing c. 6,950 staff worldwide
3
Agenda
B. Operational Excellence
D. Conclusion and Outlook
A. Full-year Financials 2012
C. Alliances / Market Trends
4
1,507
1,6391,368
1,619 1,604
9001,0001,1001,2001,3001,4001,5001,6001,700
Q4 Q3 Q2 Q1 Q4 Q1 Q4 Q3 Q2 Q1 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2
2011
6,103
2010
6,204
2009
4,473
2008
6,218
+12.1% +38.7% -1.6% -28.1%
2012
6,844
Hapag-Lloyd increased the transport volume by +1.1% and the revenue by +12.1% in 2012 compared to previous year
Transport volume [TTEU]
Revenue [EUR m]
Freight rate [USD/TEU]
Comments
yoy
Ø 1,590 Ø 1,257 Ø 1,569 Ø 1,532
2008 +6.7% +5.1% -16.4% +1.1%
2012 2011
5,198 5,255
2010
4,947
2009
4,637
2008
5,546
yoy
Ø 1,581
2009 2010 2012 2011
The 2012 revenue increased by +12.1% compared to previous year
This positive development was related to freight rate improvements (+3.2%), a growth in transport volume (+1.1%) and exchange rate effects
The average freight rate level in Q4 2012 was +6.4% higher than in the respective quarter of the last year (+97 USD/TEU)
+3.2%
5
Q1 2012 Q2 2012 Q3 2012 Q4 2012 FY 2012 FY 2011
Transport volume [TTEU] 1,323 1,359 1,281 1,292 5,255 5,198
Freight rate [USD/TEU] 1,484 1,594 1,647 1,604 1,581 1,532
Bunker price [USD/t]1) 667 694 634 646 660 605
RoE [EUR/USD] 1.31 1.28 1.25 1.30 1.29 1.39
Revenue [EUR m] 1,602 1,794 1,765 1,683 6,844 6,103
EBITDA [EUR m] -21 102 164 90 335 367
EBIT underlying [EUR m] -100 31 87 8 26 101
Investments [EUR m]2) 366 129 198 98 791 262
In a persistently challenging market environment, HL recorded a positive EBITDA of EUR 335 m in 2012
Hapag-Lloyd financials 2012
1) Hapag-Lloyd average consumption price 2) RoE = Rate of Exchange 3) Investments in fixed assets
1)
2)
3)
6
646
634
694
667649644
609
509
455445
458454
400
450
500
550
600
650
700
7501,800
1,750
1,700
1,650
1,600
1,550
1,500
1,450
1,400
1,350
1,300 Q4 2012
1,604
Q3 2012
1,647
Q2 2012
1,594
Q1 2012
1,484
Q4 2011
1,507
Q3 2011
1,529
Q2 2011
1,531
Q1 2011
1,563
Q4 2010
1,639
Q3 2010
1,672
Q2 2010
1,536
Q1 2010
1,422
The average freight rate in Q4 2012 was +97 USD/TEU higher than in Q4 2011 – Average bunker price at 646 USD/mt in Q4
Freight rate1) [USD/TEU] vs. bunker price2) [USD/mt]
2010
Freight rate Bunker price
1) Hapag-Lloyd average freight rate per quarter 2) Hapag-Lloyd average consumption price per quarter
2011 2012
Ø 1,569 Ø 1,532 Ø 1,581
Ø 453 Ø 605 Ø 660
Freight rate
Bunker price
2012
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Hapag-Lloyd maintains a solid financial profile – Net debt at EUR 1.8 bn and equity ratio at 45.5%
Equity ratio2)
1) Cash and cash equivalents (financial assets of EUR 276 m in 2008 and EUR 143 m in 2009 to be adjusted) 2) Equity ratio defined as total equity (including hybrid capital from 2009 to 2011) over balance sheet total; at end of period 3) In Q1 2012, existing long-term operating lease contracts for seven ships and a container portfolio were swapped into finance lease contracts 4) Two new loans to fund the purchase of two (former operating lease) vessels increased liabilities to banks
1,050
2012
1,811
1,394
417
2011
1,224
2010
1,126
2009
1,126
2008
Financial debt 1,561 1,878 1,682 1,897
47.0% 31.2%
5.4%
18.0%
5.3%
46.5%
2012 2011
51.8% 45.5%
49.2%
2009 2010
52.4%
2008
34.1%
Equity [EUR m] 1,432 3,443 2,766 3,424
• Redemption of Hybrid II (EUR 100 m) • Finance Lease contracts3) (EUR 224 m) • Ship portfolio financing4) (EUR 93 m)
Net debt [EUR m] 2,372 3,114
Cash1) 235 752 413 673 Balance sheet 4,195 6,570 5,618 6,614 561 6,851
Net debt rose to EUR 1.8 bn primarily driven by the conversion of existing long-term operating lease contracts (seven vessels and a container portfolio) into finance lease contracts in Q1 2012
Additionally, EUR 100 m hybrid capital (classified as equity) have been repaid, thereby reducing total equity. Beginning of April the full remaining hybrid capital of EUR 250 m was converted to straight equity by TUI and ABKG
Comments
Hybrid capital repaid or converted in the meantime
8
Agenda
B. Operational Excellence
D. Conclusion and Outlook
A. Full-year Financials 2012
C. Alliances / Market Trends
9
Hapag-Lloyd benefits from worldwide evolution of global trade patterns, due to its balanced service portfolio
Hapag-Lloyd core trades by transport volume1)
1) For FY 2012 2) As of December 31, 2012 (%) Trade share of total Hapag-Lloyd transport volume in TEU (= 100%)
Total number of services: 892)
LATIN AMERICA
(20%)
TRANS-PACIFIC
(21%)
FAR EAST (23%)
AUSTRALASIA (14%)
TRANS-ATLANTIC
(23%)
23%
22%
22%
11% 22%
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Owned1) Chartered Current fleet
Order book2)
Hapag-Lloyd has a competitive and flexible fleet – Fleet structure allows efficient operations
Vessel fleet structure
6,000 – 8,000 TEU Vessels
Capacity [TEU]
8
57,024
4
30,024
4
27,000
4,000 – 6,000 TEU Vessels
Capacity [TEU]
52
250,712
20
91,623
32
159,089
2,300 – 4,000 TEU Vessels
Capacity [TEU]
47
138,040 20
61,471
27
76,569
<2,300 TEU Vessels
Capacity [TEU] 28,062
16
10,606
5
17,456
11
Total Vessels
Capacity [TEU]
1442)
669,8272)
7
92,400
66
355,717
78
314,110
8,000 – 10,000 TEU Vessels
Capacity [TEU]
18
156,482
14
122,486
4
33,996
>10,000 TEU Vessels
Capacity [TEU]
3
39,507
7
92,400
3
39,507
Fleet ownership [%]
Average vessel size [TEU]3)
+334 +1,929
World Fleet
2,723
TOP 20
4,318
Hapag-Lloyd
4,652
1) Incl. 7 financial leases 2) Incl. 5 chartered out to Grand Alliance partners 2) 7 deliveries until Apr 2014 3) Transmodal, Jan 2013 / HL as of 31 Dec 2012
47% 53% Chartered
Owned1)
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Current order book
Capacity
13,200 TEU Length (over all) 366 m
Deadweight 142,092 mt Breadth (over all) 48 m
Height 66 m Flag Germany
Draft 15.5 m Operation Loop 42)
Current order book
Since July 2012 Hapag-Lloyd has received four VLCS1) – 6 more vessels of this class will follow until April 2014
„Hamburg Express“ at a glance
Vessel Delivery
#1 Jul 2012
#2 Sep 2012
#3 Nov 2012
#4 Feb 2013
#5 Mar 2013
#6 May 2013
#7 Jun 2013
#8 Aug 2013 Mar 2014
#9 Oct 2013 Apr 2014
#10 Nov 2013 Apr 2014
1) Very large container ship 2) Europe-Far East
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CONTAINER INVEST / FINANCING On 22 June 2012 HL signed an agreement for a total
of up to USD 165 m to finance new container boxes and those already in use
CONTAINER SALE AND LEASEBACK Secondary markets for containers at historical peaks
– in June, July and November 2012 HL established SLB transactions with a total volume of USD 194 m
Mainly general purpose containers Broad variety of containers for the transport of
virtually any type of goods Hapag-Lloyd is one of the leading reefer carriers
worldwide • Strong cargo care expertise • Special processes ensure continuous cooling chain
Container fleet structure of 1,047 TTEU aligned with customer requirements – New investments and SLB1) optimization 2012
Container fleet structure
General comments
Container fleet development2) [TTEU]
Highlights 2012
1) SLB = Sale and leaseback 2) As of December 31, 2012
General Purpose 20’, 40’, 40’ HC, 45’
Hardtop 20’, 40’, 40’ HC
Flat 20’, 40’, 40’ HC
Reefer 20’, 40’, 40’ HC
Open Top 20’, 40’
2012 2011 2010 2009 2008
1,047 1,042
1,027
1,009
1,118
648 644 635 624 694 Containers [# boxes k]
Container fleet [TTEU]
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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
Balanced portfolio of goods transported … … in a diversified customer portfolio1)
Top 50 Customers (∑ = 40%)
Diversified exposure Freight forwarders –
secure volumes in both directions, optimizing trade flows
Direct customers – better visibility on future volumes
2)
Freight forwarders
55%
Direct customers
45%
8%
Others
19%
Electronic 5% Furniture 4%
Paper & Forest 10%
Machinery
11%
Textile
6% Metal
Automobile 8%
Beverages 4%
Foodstuff 12%
Chemical
13%
1) Based on 2012 volumes 2) Others: FAK = Freight of all kinds
Total
100%
> 500
27%
TOP 101-500
9%
22%
TOP 51-100
11%
TOP 26-50
TOP 11-25
10%
TOP 10
21%
Hapag-Lloyd has a highly diversified customer base: No customer has a share greater than 5% of HL’s revenue
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Agenda
B. Operational Excellence
D. Conclusion and Outlook
A. Full-year Financials 2012
C. Alliances / Market Trends
15
Operated capacities of stand-alone shipping lines and alliances [TTEU]
Being a strong partner of the Grand Alliance results in comparable ship system costs as larger competitors
Stand-alone capacity of the top 10 carriers Hapag-Lloyd as strong partner of Grand Alliance
Membership in the Grand Alliance offers significant advantages, including access to a global network and an improved service offering In addition, the membership ensures significant cost efficiencies to its members
1) CKYH = COSCO, K-Line, Yang Ming, Hanjin 2) NOL, Hyundai, MOL
510
554
558
563
670
719
723
MOL
APL
CSCL
Hanjin
Hapag-Lloyd
COSCO
Evergreen
CMA CGM 1,376
MSC 2,161
Maersk 2,497
329
426
558
723
ZIM
Hamburg Süd
CSCL
Evergreen
CMA CGM 1,376
New World Alliance2) 1,417
Grand Alliance 1,499 670 829
2,011
MSC 2,161
Maersk 2,497
HLAG OOCL and NYK
CKYH1)
Source: Transmodal, January 2013
x 3.7
x 1.7
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The G6 Alliance provides significant benefits regarding product portfolio and cost position
Key facts G6 Alliance
Alliance announced Dec 2011 / expansion announced Feb 2013
Largest integrated alliance in the Far East-Europe trade, i.e. joint planning of fleet deployment but separate marketing activities
best ship for the loop principle
Customer has access to seven individual and customized services – independent from vessel operator
More direct port calls and hence reduced transhipment costs
Efficient vessel deployment and optimized phase-in of new vessels (e.g. four Hapag-Lloyd vessels of 13,200 TEU each until Feb 2013)
minimize saw tooth effect
G6 Alliance currently offers 5 loops for Far East – North Europe service and 2 to Mediterranean
Expansion to the Asia-to-North America East Coast trade in May 2013 with 6 dedicated services (3 via Suez, 3 via Panama)
Source: AXS-Alphaliner and internal data
Grand Alliances The New World Alliance
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The order book is currently at historically low level – Capacity measures offer flexible responds to demand fluctuations
Global capacity management
Global capacity
measures
60% 50% 40% 30% 20% 10% 0%
10
8
6
4
2
0
4.0
Q409
35%
5.0
Q408
47%
6.4
Q407
56%
6.8
Q412
21%
3.6
Q411
26%
4.3
Q410
26%
333
77131
377
101
210
100
200
300
400
2012 2011 2010 2009 2008 2007
Global order book [TEU m / %] Idle fleet capacity [TTEU]
Slow Steaming (Avg. duration FE-Europe loops) [Weeks] Scrapping [TTEU]
862838
356
1,4801,420
0
500
1,000
1,500
Q412 Q411 Q410 Q409 Q408
Source: AXS-Alphaliner weekly newsletter; MDS Transmodal, various months; Clarksons
10
8
11
9
0
10,5
2011
10,0
+28%
2012
8,2
2010
9,8
2009
9,1
2008
8,7
2007
18
Shanghai Containerized Freight Index (SCFI)
SCFI clearly above year-end 2011 despite seasonal spot rate downturns in Far East Europe and Transpacific trade
1) USWC = United States West Coast 2) USEC = United States East Coast Source: Shanghai Shipping Exchange
2,122
3,279
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
+30%
+50%
Dec 12
Jun 12
Dec 11
Jun 11
Dec 10
Jun 10
1,4231,366
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
+118%
+190%
Dec 12
Jun 12
Dec 11
Jun 11
Dec 10
Jun 10
Shanghai - USEC (USD/FEU)2)
Shanghai - USWC (USD/FEU)1)
Shanghai - Mediterranean (USD/TEU) Shanghai - North Europe (USD/TEU)
Shanghai – Europe Shanghai – USA
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On 25 Jan 2013, Hapag-Lloyd announced a General Rate Increase on Far East Westbound by
• USD 750 per TEU
Following Hapag-Lloyd, many other liners individually announced rate increases for March 15, 2013
The Transpacific Stabilization Agreement (TSA) has recommended freight rate increases for the trades’ dominant (eastbound) leg to its members
• USD 400 per 40‘ Container to US Westcoast
• USD 600 per 40‘Container to US Eastcoast
Freight rate increases in the FE-Europe and TP trade
Freight rate increases / announcements in the FE-Europe and TP trade – Effective dates 15 March 2013 and 1 April 2013
Far East – Europe westbound [USD/TEU] Transpacific eastbound [USD/TEU / USD/FEU]
300 400 500 600 700 800
Effective date
Mar 15st 600-775
700 800 600 500 400 300
Effective date
Apr 1st 400-600
Source: Various press articles
20
606
644
567
665
532
721
450
500
550
600
650
700
750 -115
Following a slight easing in bunker prices in mid 2012, currently the bunker price is trading at c. 606 USD/mt
Bunker price development1), Jan 2011 – Mar 2013 [USD/mt]
Rotterdam bunker price development (Bloomberg)
2011 2012
Source: Bloomberg, March 2013
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2013
COMMENTS Following a steep rise
in Q1 2012 the bunker price (Rotterdam) reached its peak in March at 721 USD/mt
In Q2 2012 the price fell rapidly to 532 USD/mt on 25 June 2012
After an increase again in Q3 2012 the bunker price had a local peak on 14 September 2012 at 665 USD/mt
Currently, the bunker price trades at 606 USD/mt (15 March 2013)
Hapag-Lloyd lifts bunker at around 90 ports worldwide – more than one third is lifted at the port of Rotterdam
1) Rotterdam bunker price development (Bloomberg)
21
Agenda
B. Operational Excellence
D. Conclusion and Outlook
A. Full-year Financials 2012
C. Alliances / Market Trends
22
Attractive global sector with favorable underlying growth trend
Well-balanced route mix and established customer base
Operational excellence with leading network and yield management systems
A market leader with a competitive and flexible fleet (capacity management)
Prudent investment strategy with consequent financing
Solid operating performance and sound financial profile
Strong and reliable shareholder support
Conclusion: Key highlights of Hapag-Lloyd
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Outlook: Volume and rates expected to improve – Uncertainty continues to surround anticipated developments
Outlook
Liquidity Liquidity situation expected to remain adequate for 2013 – Vessel order book fully financed long-term
Transport volume Hapag-Lloyd is striving to increase its transport volume in 2013 – Positive effect on revenue
Freight rates Moderate improvement in freight rates over the course of the year,
with uncertainty remaining high due to ongoing competitive pressure – Positive effect on revenue and earnings
Transport costs Tending higher – Increase in transport expenses
Earnings Hapag-Lloyd targets again a positive operating result in 2013
24
25
Hapag-Lloyd’s strategy: Long-term profitable growth on the basis of a solid financial profile
Sustainable and competitive business
model
Above-average vessel size relative to industry
Attractive fleet mix in terms of size and ownership
Balanced customer mix of global Freight Forwarders and Direct Customers
Cost discipline and operational excellence
Careful cost management and resource allocation
Focus on imbalance management
Enhancement of proprietary industry leading IT systems and EDI solutions
Capitalizing on industry growth
Target growth in line with market dynamics
Increasing fleet capacity with focus on larger vessels
Flexible network management
Clear profile and customer orientation
Strong brand
Reputation for quality and reliability
Customer segmentation and tender management
Strong global service offering
Long-term profitable growth
Supported by solid financial profile
26
46%
7%
47% 52%
6%
42% 41%
9%
50%
As proven in the past, active capacity management ensures flexibility to adapt the fleet structure to market trends
Active capacity management – fleet structure by ownership
Percentage share of total fleet (capacity based)
Owned
Leased
Chartered
492 478 605 679 Total fleet (TTEU)
40%
9%
51%
Dec 31, 2012
144
78
7
59
Dec 31, 2011
149
82
9
58
Dec 31, 2010
137
69
9
59
Dec 31, 2009
114
49
9
56
Dec 31, 2008
128
59
9
60
Jan 31, 2008
143
75
9
59
44%
9%
47%
505
47%
4%
49%
670
1) 1) 1)
1) Incl. chartered out vessels
27
Hapag-Lloyd is a leader in managing fuel costs – Reduction of total bunker consumption by slow-steaming
Optimization of vessel speeds
Use of silicone paint to minimize friction
Polishing of propellers
Efficient vessel fleet and high level maintenance
Modern engine design allows for easy derating
Training of crew to use fuel efficiently
Streamlining and optimization of vessel operation
Mitigation of bunker cost increases Effect of slow steaming on bunker consumption1)
1) Illustrative purposes only
Schedule reliability generally improved at reduced speed
Bad weather effects are decreased
Necessary speed ups in eco-speed area to meet master schedule at slower level
Source: Germanischer Lloyd
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Leading network management systems – Proven ability to manage imbalances better than the market
IT and network management systems
Number of full non-dominant leg containers per 10 full dominant leg containers1)
Trans-atlantic
Trans-pacific
Europe- Far East
Fully integrated in the global Hapag-Lloyd organization
Dominant leg
Real-time availability of information worldwide
Provides and combines operational and financial data
Mainly self-developed system as a result of significant investment
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
7
5
7
6
8
7
10
Hapag-Lloyd Market
Source: IHS Global Insight, December 2012; Hapag-Lloyd FY 2012; market data adapted to Hapag-Lloyd trade lane definition
29
In 2012, Hapag-Lloyd again received various awards as best liner shipping company by leading international forwarders
Awards 2012
Dec 2012
2012 Global Ocean Freight Carrier of the Year
Nov 2012
Deep Sea Shipping Company of the Year
Dec 2012
2012 Global Carrier of the Year
Nov 2012
2012 Ocean Carrier of the Year
Sep 2012
Fair Company
May 2012
Ocean Carrier Award 2011
Jul 2012
Nr. 1 Best Carrier Award 2012
Jun 2012
Data Quality Award
Mar 2012
Excellence Award 2011
Feb 2012
PPG Excellent Supplier Award 2011
Feb 2012
Gold-Award Green Gateway Programms
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1.143 1.199
1.162 1.136
Australasia
+1.1%
Transpacific
Far East
Latin America
Atlantic
FY 2012 Actual
5,255
605
1,144
1,171
FY 2011 Actual
5,198
584
1,133
1,177
Transport volumes rose by 1.1% compared to previous year
Development of transport volume FY 2012 vs. FY 2011 [TTEU]
-2.2%
COMMENTS Total transport volume increased by
+1.1% compared to previous year With the exceptions of the trade Atlantic
and Latin America all trades contributed to this development: • Atlantic:
Due to a generally weak market situation as a result of the recession in Europe, volume is -2.2% below previous year
• Latin America: Decreasing imports resulted in a reduction in volume of -0.5%
• Far East: Volume growth above previous year with +0.9%
• Transpacific: Highest absolute volume growth led to an increase of +4.9%
• Australasia: HL managed to increase the previous year´s level by +3.7%
-0.5%
+0.9%
+4.9%
+3.7%
31
The avg. freight rate level in 2012 is +3.2% above previous year
Variations of freight rate per trade FY 2012 vs. FY 2011 [%]
Overall the average freight rate level in 2012 is +3.2% above previous year
Australasia
-0.7%
Transpacific
+11.3%
Far East
-2.0%
Latin America
+6.1%
Atlantic
-1.5%
32
Tangible assets make up over half of total assets
─ Prepayments relate to vessel orders
Intangibles mainly result from the 2009 acquisition of Hapag-Lloyd when assets und liabilities were recognized at their fair market value in the purchase price allocation (PPA)
Financial assets primarily refer to CTA shareholding
Hapag-Lloyd continues to have a strong asset base mainly driven by vessel book values
Assets as of December 31, 2012 [EUR m] Comments
Cash Other Assets
Inventory Receivables
Tangible Assets
Financial Assets
Intangibles
Assets as of 31-Dec-2012
6,851
561 234
178 449
3,786
330
1,313
467 345Prepayments Other
Container Property
Vessels
Tangible Assets as of 31-Dec-2012
378
3,786
12
107
2,944
33
Solid long-term financing diversified between senior notes on the one hand and asset secured bank debt on the other hand
Equity and liabilities as of December 31, 2012 [EUR m] Comments
Well balanced mix of financing instruments
─ EUR 656 m HY bond (issuance in Q4 2010)
─ Bank debts of c. EUR 1.5 bn
Other liabilities contain provisions of EUR 362 m which include pension provisions of EUR 156 m
In H1 2012 existing long-term operating lease contracts for seven ships and a container portfolio were transferred to finance lease contracts
In H2 2012 K-Sure II financing for three new vessels and new financings for containers have been drawn with delivery of assets
In Q4 2012 partial replacement of bilateral ship financing agreements by new fleet financing agreements 501 Other Liabilities
Payables
Financial Debt
Equity
Liabilities as of 31-Dec-2012
6,851
479
886
2,372
3,114
31
227
Other
Bilateral Fin.
Premium Fin.
K-sure II Fin.
Ballindamm
K-sure I Fin.
New Fleet Fin.
Container Fin. ABS
Fleet Refin.
Finance Lease
HY Bond
Financial debt as of 31-Dec-2012
2,372
56 59
269
88 199
266
95
210
216
656
34
Solid long-term financing diversified between senior notes on the one hand and asset secured bank debt on the other hand
Financial debt schedule Q3 2011-Q4 2012 [EUR m]
Debt schedule Interim Report Annual Report Interim Report Interim Report Interim Report Annual Report 30.09.2011 31.12.2011 31.03.2012 30.06.2012 30.09.2012 31.12.2012 EUR m EUR m EUR m EUR m EUR m EUR m Fleet Financing 187 - - - - - Fleet Financing 2011 - 349 339 321 293 269 K-sure I Financing 291 299 281 293 276 266 K-sure II Financing - - - - 135 199 Bilateral Vessel Financing 295 274 259 258 243 88 Container Finance 2008 52 41 35 31 26 20 Container Finance 2011 110 111 104 107 100 95 Container Finance 2012 - - - - 28 79 Container Finance JOL - - - - 35 33 Shipportfolio Financing - - 93 97 93 - Fleet Refinancing 2012 - - - - - 210 ABS Program 74 77 75 99 97 95 Ballindamm 61 61 61 60 60 59 Premium Financing 7 7 8 44 42 56 Other Liabilities to Banks 33 20 38 18 33 30 Liabilities to Banks 1,110 1,239 1,292 1,329 1,460 1,499 Bond / USD Tranche 179 187 181 193 188 184 Bond / EUR Tranche 469 469 470 470 471 472 Vessel Finance Lease - - 211 221 212 204 Container Finance Lease - - 13 14 13 12 Other Financial Liabilities 2 2 1 2 1 1 Total Debt Obligations 1,759 1,897 2,169 2,227 2,344 2,372
35
Hapag-Lloyd bonds trade well above par
Hapag-Lloyd trading evolution
iTraxx Xover development
COMMENTS
105.3 105.1
400.5
300
400
500
600
700
800
900
1000
Jan/ 11 Apr/ 11 Jul/ 11 Okt/ 11 Jan/ 12 Apr/ 12 Jul/ 12 Okt/ 12 Jan/ 13
60
70
80
90
100
110
120
Jan/ 11 Apr/ 11 Jul/ 11 Okt/ 11 Jan/ 12 Apr/ 12 Jul/ 12 Okt/ 12 Jan/ 13
HL EUR 9.00% 2015 HL USD 9.75% 2017
Source: Citi, March 2013
Hapag-Lloyd bonds traded at above par until mid July 2011
Due to the European sovereign debt crisis and the uncertainty on capital markets, trading came under pressure in H2 2011
Since the beginning of 2012, the Hapag-Lloyd tranches have shown an impressive rebound
On 15 March 2013, the EUR-tranche was trading at 105.3% and the USD-tranche is trading at 105.1%
36
“Albert Ballin” Consortium holds 78% and TUI 22% of shares in Hapag-Lloyd Holding AG
Shareholder and organizational structure as of 31 December 2012
1) Guarantor of Senior Notes and Revolving Credit Facility 2) All vessels owned by HLAG except vessels registers in UK, Bermuda, Singapore and USA, which are legally owned by subsidiaries (beneficial owner HLAG) 3) Total financial debt as of Dec 31, 2012 less Senior Notes, Ballindamm and ABS 4) Remaining stake owned by Hamburger Hafen und Logistik AG (HHLA) 5) CTA consists of two companies: HHLA Container - Terminal Altenwerder GmbH (CTA Betrieb) and HHLA CTA Besitzgesellschaft mbH (CTA Besitz) 6) Owner of the property at Ballindamm, Hamburg 7) Indirect / “calculated through” shareholdings in Hapag-Lloyd Holding AG
“Albert Ballin” Consortium
HGV Kühne Iduna HSH M.M.W HM TUI AG
TUI-Hapag GmbH “Albert Ballin” KG (“ABKG”)
22.0% 78.0%
RCF (undrawn) (USD 95 m)
Asset Financings and Other Financial Debt3)
(c. EUR 1.6 bn)
ABS (USD 125 m)
Senior Notes (EUR 480 m and
USD 250 m)
Subsidiaries2)
Hapag-Lloyd AG (“HLAG”)2)
Container Terminal
Alternwerder (“CTA”)4)5)
Hapag-Lloyd Holding AG (“HLHAG”)1)
Montreal Gateway Terminals Limited
Partnership
Hapag-Lloyd Grundstücks-holding GmbH
(“HLGH”)6)
100%
25.1% 100% 20%
100%
Ballindamm (EUR 60 m)
36.9%7) 28.2%7) 5.3%7) 2.9%7) 2.9%7) 1.8%7)
37
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Disclaimer
STRICTLY CONFIDENTIAL
This presentation is provided to you on a confidential basis. Delivery of this information to any other person, the use of any third-party data or any reproduction of this information, in whole or in part, without the prior written consent of Hapag-Lloyd is prohibited. This presentation contains forward looking statements within the meaning of the 'safe harbor' provision of the US securities laws. These statements are based on management's current expectations or beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Actual results may differ from those set forth in the forward-looking statements as a result of various factors (including, but not limited to, future global economic conditions, market conditions affecting the container shipping industry, intense competition in the markets in which we operate, potential environmental liability and capital costs of compliance with applicable laws, regulations and standards in the markets in which we operate, diverse political, legal, economic and other conditions affecting the markets in which we operate, our ability to successfully integrate business acquisitions and our ability to service our debt requirements). Many of these factors are beyond our control. This presentation is intended to provide a general overview of Hapag-Lloyd’s business and does not purport to deal with all aspects and details regarding Hapag-Lloyd. Accordingly, neither Hapag-Lloyd nor any of its directors, officers, employees or advisers nor any other person makes any representation or warranty, express or implied, as to, and accordingly no reliance should be placed on, the fairness, accuracy or completeness of the information contained in the presentation or of the views given or implied. Neither Hapag-Lloyd nor any of its directors, officers, employees or advisors nor any other person shall have any liability whatsoever for any errors or omissions or any loss howsoever arising, directly or indirectly, from any use of this information or its contents or otherwise arising in connection therewith. The material contained in this presentation reflects current legislation and the business and financial affairs of Hapag-Lloyd which are subject to change and audit, and is subject to the provisions contained within legislation. At present Hapag-Lloyd is in discussions with Hamburg Süd regarding a possible merger of both companies. The talks are in an early stage and the outcome is still open.