Hapag-lloyd Ag · XETR:HLAG
Hapag-lloyd — Shareholder Meeting (April 2024)
25 slides from Hapag-lloyd's shareholder meeting presentation, Apr 30, 2024
Slide 1: Annual General Meeting 2024
Annual General Meeting 2024 Rolf Habben Jansen, CEO Hamburg, 30 April 2024
Slide 2: Review of the Financial Year 2023
Review of the Financial Year 2023 Our long-term contracts and diversified geographic exposure have helped us to achieve the third best financial result in our history We made good progress with the establishment of our Terminal & Infrastructure division Furthermore, we significantly boosted customer
Slide 3: Container volumes recovered while freight rates were too low in 2023
1 Review After a weak start, container volumes gradually recovered while freight rates were too low on many trades in 2023 GLOBAL CONTAINER VOLUMES SHANGHAI CONTAINERIZED FREIGHT INDEX SCFI (Spot) [TEU m] FY 2022 FY 2023 [USD/TEU] Pre-Covid Level 172.6 TEU m +0.5% 173.5 TEU m 6,000 17 5,000 16 4,000
Slide 4: Despite challenging market conditions, third best result in our history
1 Review Despite the challenging market conditions, we achieved the third best result in our history FY 2023 GROUP KEY FIGURES Transport volume1 Freight Rate1 Revenue 11.9 MTEU 1,500 USD/TEU EUR 17.9 bn PY: 11.8 MTEU PY: 2,863 USD/TEU PY: EUR 34.5 bn EBITDA EBIT Group Profit EUR 4.5 bn EUR 2.5 bn EU
Slide 5: Growing Terminal & Infrastructure business contributed for the first time
1 Review The growing Terminal & Infrastructure business contributed for the first time to our result LINER SHIPPING TERMINAL & INFRASTRUCTURE EUR m FY 2023 FY 2022 EUR m FY 2023 FY 2022 Revenue 17,762 34,523 Revenue 187 23 EBITDA 4,415 19,331 EBITDA 46 98 EBITDA margin 24.9% 56.0% EBITDA margin 24.6
Slide 6: Our balance sheet ratios remain very strong and well above target
1 Review Our balance sheet ratios remain very strong and well above target GROUP EQUITY RATIO 72% 61% 65% 41% 44% 45% 2019 2020 2021 2022 2023 GROUP LEVERAGE 5,886 4,455 -2,226 -12,587 -2,625 Net Debt [EUR m] 3.0 x 3.0 1.8 x 0.0 x 0.0 x 0.0 x Net Debt/EBITDA 2019 2020 2021 2022 2023 6 30 April 2024
Slide 7: We propose a dividend of EUR 9.25 per share
1 Review We propose a dividend of EUR 9.25 per share TOTAL DIVIDEND DISTRIBUTION [EUR m] 11,073 6,152 1,626 193 615 2019 2020 2021 2022 2023e DPS AND PAYOUT RATIO1 [EUR] 53% 66% 68% 65% 55% 63.00 35.00 3.50 9.25 1.10 2019 2020 2021 2022 2023e 7 30 April 2024 AGM 2024 1 Payout ratio in relation to Gr
Slide 8: Improved customer satisfaction, grown fleet and terminal portfolio, new cooperation
1 Review We have improved customer satisfaction, grown our fleet and terminal portfolio, and agreed a new global network cooperation in 2023 TERMINALS FLEET QUALITY ▪ Completed 3 transactions, thereby gaining ▪ Reached 2m TEU in standing vessel ▪ Improved customer satisfaction to the access to 17 te
Slide 9: New terminal holding company established for terminal investments
1 Review To operate our terminal and infrastructure investments as a standalone business, a new terminal holding company has been established HAPAG-LLOYD TERMINAL INVESTMENTS IN 2023 NEW TERMINAL HOLDING Spinelli Own legal entity headquartered in Rotterdam Independent business unit with JMBAXI own b
Slide 10: Significant progress to renew our fleet and reduce emissions
1 Review We made significant progress to renew our fleet and reduce emissions NEW VESSEL DELIVERIES In June 2023, we placed the “Berlin Express” into service, the first of 12 new dual fuel powered vessels. The Hapag-Lloyd fleet grew to more than 260 container vessels with a capacity of 2.0 million T
Slide 11: Real-time tracking for all standard and reefer containers
1 Review Real-time tracking for all standard and reefer containers will improve transparency along the supply chain for us and our customers DRY CONTAINERS REEFER CONTAINERS Tracking of dry containers through permanently Almost entire reefer installed devices fleet equipped with Track & Trace device
Slide 12: Service quality and customer satisfaction improved strongly
1 Review Service quality and customer satisfaction improved strongly More than CUSTOMER SATISFACTION Net Promoter Score (NPS) 20 digital products available 50 online 58 49 DIGITAL CAPABILITIES PERSONAL GLOBAL PRESENCE 29 IT HQ in Hamburg >400 offices in 140 countries Technology Center in Chennai 11
Slide 13: Gemini Cooperation an important cornerstone for quality ambitions
1 Review 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
Slide 14: Strategy 2030: Undisputed Number One for Quality
2 Strategy 2030 With our new strategy we strive to make Hapag- Lloyd the “Undisputed Number One for Quality“ Pure Play Plus STRATEGIC DIRECTION >30 >30% Terminals Inland share Top 5 Global Container Line WHERE- TO-PLAY Growth slightly above market Undisputed Undisputed #1 for Quality Sustainability
Slide 15: Invest in terminal business and grow liner business slightly above market
2 Strategy 2030 We will continue to invest in our terminal business and aim to grow our liner business slightly above market PURE PLAY PLUS TOP 5 GLOBAL CONTAINER LINE We target to grow our terminal portfolio by up to 10-15 terminals until 2030 Grow slightly above market by targeting ▪ attractive gr
Slide 16: Step change in operational performance and value-added services
2 Strategy 2030 To further improve the customer experience, we will deliver a step change in operational performance and offer value-added services Undisputed Number One for Quality Substantial increase in on-time delivery (OTD) at box level Live Position planned to improve customer experience Launc
Slide 17: The Gemini network will be more reliable and interconnected
2 Strategy 2030 The Gemini network will be much more reliable and interconnected than traditional setups THE NEW GEMINI NETWORK North Europe Wilhelmshaven, Bremerhaven, Rotterdam East Mediterranean West Damietta, Port Said ▪ Setup with 2-3 main port calls per Mexico Mediterranean region including st
Slide 18: Levers to reduce fleet emissions by 1/3 until 2030
2 Strategy 2030 We identified 4 levers to reduce our fleet emissions by 1/3 until 2030 Fleet growth Absolute CO2e & renewal emissions by 2030 Slow New, larger steaming 10.0 mt and more efficient dual- - 1/3 vs. 2022 Reducing Efficiency fuel vessels service speed levers Technical Alternative levers t
Slide 19: Alternative fuels in our decarbonization strategy
2 Strategy 2030 Alternative fuels are playing an increasingly important role in our decarbonization strategy LIQUEFIED BIOMETHANE In April, our Brussels Express container vessel in the Port 1 2 of Rotterdam concluded the largest ever ship-to-ship bunkering of liquefied biomethane. GREEN TRANSPORT SO
Slide 20: Investing in our people's capabilities
2 Strategy 2030 As our people will deliver our strategy we will invest in their capabilities Hapag-Lloyd Academy is a newly founded globally synchronized in-house training facility. Our employees will benefit from an integrated online and offline learning ecosystem which will boost their personal sk
Slide 21: Prudent financial policy with long-term financial targets
2 Strategy 2030 With Strategy 2030 we will continue to pursue a prudent financial policy LONG-TERM FINANCIAL TARGETS Profitability Net Leverage Liquidity Top performing ≤ 3.0x >USD 1.1 bn Net Debt/EBITDA liquidity reserve carrier We want to earn our cost We strengthen resilience We will always retai
Slide 22: Red Sea and Panama Canal disruptions cause short-term capacity shortage
3 Outlook 2024 Red Sea security issues and Panama Canal draft restrictions continue to cause disruptions, resulting in short-term capacity shortage RED SEA Hamburg ▪ Due to attacks on vessels, major Rotterdam +10 days carriers continue to avoid the Red Norfolk, VA EC Piräus Sea and instead use the l
Slide 23: Growing capacity mostly absorbed by demand, diversions and slower speeds
3 Outlook 2024 Growing capacity will mostly be absorbed by higher demand, Cape of Good Hope diversions and slower vessel speeds DEMAND GROWTH GLOBAL ORDERBOOK [TEU m; % of world fleet] 7% 27% 26% 24% 4% 3% 22% 2% -1% -4% 0% 10% 10% 7.1 7.1 6.7 5.4 2.4 2.4 2019 2020 2021 2022 2023 2024e 2025e 2019 20
Slide 24: Solid start expected but market environment remains volatile
3 Outlook 2024 Solid start to the year expected but market environment remains volatile FY 2024 FY 2023 Outlook Transport volume 11,907 TTEU Increasing slightly Bunker At previous year’s 614 USD/mt consumption price level Freight rate 1,500 USD/TEU Decreasing clearly Group EBITDA EUR 4,461 m EUR 1.0
Slide 25: Priorities for 2024
3 Outlook 2024 Grow our liner and terminal business in accordance with our Priorities Pure Play Plus model for 2024 Continue to improve service and operational quality to support our growth ambitions Execute tangible initiatives to achieve significant emission reductions Maintain a razor-sharp focus