Investor Presentation 7th Annual Invest in International Shipping Forum

Transcription

1 Investor Presentation 7th Annual Invest in International Shipping Forum New York, 21 March

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 customers around the world Employing c. 6,950 staff worldwide 2

3 Agenda A. Full-year Financials 2012 B. Operational Excellence C. Alliances / Market Trends D. Conclusion and Outlook 3

4 Hapag-Lloyd increased the transport volume by +1.1% and the revenue by +12.1% in 2012 compared to previous year Transport volume [TTEU] Freight rate [USD/TEU] yoy 5, % +6.7% +5.1% +1.1% 4, , ,198 5, ,700 1,600 1,500 1,400 1,300 1,200 1,100 1, ,639 1,619 1,604 1,368 1,507 Ø 1,590 Ø 1,257 Ø 1,569 Ø 1,532 Q1 Q2 Q3 Q4 Q % Ø 1,581 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenue [EUR m] Comments yoy +38.7% +12.1% -28.1% -1.6% 6,844 6,218 6,204 6,103 4, 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 Q was +6.4% higher than in the respective quarter of the last year (+97 USD/TEU) 4

5 In a persistently challenging market environment, HL recorded a positive EBITDA of EUR 335 m in 2012 Hapag-Lloyd financials 2012 Q Q Q Q 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) RoE [EUR/USD] 2) Revenue [EUR m] 1,602 1,794 1,765 1,683 6,844 6,103 EBITDA [EUR m] EBIT underlying [EUR m] Investments [EUR m] 2) 3) ) Hapag-Lloyd average consumption price 2) RoE = Rate of Exchange 3) Investments in fixed assets 5

6 The average freight rate in Q was +97 USD/TEU higher than in Q Average bunker price at 646 USD/mt in Q4 Freight rate 1) [USD/TEU] vs. bunker price 2) [USD/mt] ,800 1,750 1,700 1,650 1,600 Bunker price Freight rate 1,672 1,639 1, ,594 Bunker price 1, , ,550 1,500 1,450 1,422 1, ,531 1,529 1,507 1,484 Freight rate ,400 1, ,300 Q Q Q Q Q Q Q Q Q Q Q Ø 1,569 Ø 1,532 Ø 1,581 Q Ø 453 Ø 605 Ø 660 1) Hapag-Lloyd average freight rate per quarter 2) Hapag-Lloyd average consumption price per quarter 6

7 Hapag-Lloyd maintains a solid financial profile Net debt at EUR 1.8 bn and equity ratio at 45.5% Net debt [EUR m] Financial 1,561 1,682 1,878 1,897 debt Cash 1) Equity ratio 2) 2,372 Equity [EUR m] 1,432 2,766 3,443 3,424 3, Balance sheet 4,195 5,618 6,570 6,614 6,851 1,050 Redemption of Hybrid II (EUR 100 m) Finance Lease contracts 3) (EUR 224 m) Ship portfolio financing 4) (EUR 93 m) 1,126 1,126 1,224 1, Hybrid capital repaid or converted in the meantime 34.1% 49.2% 18.0% 52.4% 5.4% 51.8% 5.3% 45.5% 1, % 47.0% 46.5% Comments 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 Q 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 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 7 4) Two new loans to fund the purchase of two (former operating lease) vessels increased liabilities to banks

8 Agenda A. Full-year Financials 2012 B. Operational Excellence C. Alliances / Market Trends D. Conclusion and Outlook 8

9 Hapag-Lloyd benefits from worldwide evolution of global trade patterns, due to its balanced service portfolio Hapag-Lloyd core trades by transport volume 1) TRANS- ATLANTIC (23%) 22% FAR EAST (23%) 22% TRANS- PACIFIC (21%) 23% LATIN AMERICA (20%) 22% AUSTRALASIA (14%) 11% Total number of services: 89 2) 1) For FY ) As of December 31, 2012 (%) Trade share of total Hapag-Lloyd transport volume in TEU (= 100%) 9

10 Hapag-Lloyd has a competitive and flexible fleet Fleet structure allows efficient operations Vessel fleet structure Owned 1) Chartered Current fleet Order book 2) Fleet ownership [%] Capacity [TEU] 39,507 92,400 39,507 7 >10,000 TEU Vessels 3 3 Capacity [TEU] 8,000 10,000 TEU Vessels 122, , , Chartered 47% 53% Owned 1) Capacity [TEU] 27,000 57,024 6,000 8,000 TEU Vessels 30, Capacity [TEU] 91, , ,712 Average vessel size [TEU] 3) 4,000 6,000 TEU Vessels Capacity [TEU] 2,300 4,000 TEU Vessels 20 61, , ,040 Capacity [TEU] 10,606 17,456 28,062 <2,300 TEU Vessels , ,929 4,318 2,723 Total Capacity [TEU] Vessels 355, , ,827 2) 144 2) 7 92,400 Hapag- Lloyd TOP 20 World Fleet 10 1) Incl. 7 financial leases 2) Incl. 5 chartered out to Grand Alliance partners 2) 7 deliveries until Apr ) Transmodal, Jan 2013 / HL as of 31 Dec 2012

11 Since July 2012 Hapag-Lloyd has received four VLCS 1) 6 more vessels of this class will follow until April 2014 Current order book Current order book 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 Hamburg Express at a glance Capacity 13,200 TEU Length (over all) 366 m Deadweight 142,092 mt Breadth (over all) 48 m Flag Germany Height 66 m Operation Loop 4 2) Draft 15.5 m 1) Very large container ship 2) Europe-Far East 11

12 Container fleet structure of 1,047 TTEU aligned with customer requirements New investments and SLB 1) optimization 2012 Container fleet structure Container fleet development 2) [TTEU] General Purpose 20, 40, 40 HC, 45 Containers [# boxes k] Reefer 20, 40, 40 HC Open Top 20, 40 Flat 20, 40, 40 HC Container fleet [TTEU] 1,118 1,009 1,027 1,042 1,047 Hardtop 20, 40, 40 HC General comments 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 Highlights 2012 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 1) SLB = Sale and leaseback 2) As of December 31,

13 Long-standing and diversified customer base of blue chip customers and a diversified base of goods transported Highly diversified customer base 1) Strong relationship with blue chip customers 100% Top 50 Customers ( = 40%) 22% 27% 21% 10% 9% 11% TOP 10 TOP TOP TOP TOP > 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 transported in a diversified customer portfolio 1) Others 2) Electronic 5% Furniture 4% Paper & Forest 10% 19% Machinery 11% Chemical 13% Foodstuff 12% 4% Beverages 8% Automobile 8% 6% Metal Textile 55% Freight forwarders Direct customers 45% Diversified exposure Freight forwarders secure volumes in both directions, optimizing trade flows Direct customers better visibility on future volumes 1) Based on 2012 volumes 2) Others: FAK = Freight of all kinds 13

14 Agenda A. Full-year Financials 2012 B. Operational Excellence C. Alliances / Market Trends D. Conclusion and Outlook 14

15 Being a strong partner of the Grand Alliance results in comparable ship system costs as larger competitors Operated capacities of stand-alone shipping lines and alliances [TTEU] Stand-alone capacity of the top 10 carriers Hapag-Lloyd as strong partner of Grand Alliance Maersk 2,497 Maersk 2,497 MSC 2,161 CMA CGM 1,376 Evergreen 723 x 3.7 MSC 2,161 CKYH 1) 2,011 HLAG OOCL and NYK Grand Alliance ,499 x 1.7 COSCO Hapag-Lloyd New World Alliance 2) 1,417 CMA CGM 1,376 Hanjin 563 Evergreen 723 CSCL 558 CSCL 558 APL 554 Hamburg Süd 426 MOL 510 ZIM 329 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 15 Source: Transmodal, January 2013

16 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) 16 Grand Alliances The New World Alliance Source: AXS-Alphaliner and internal data

17 The order book is currently at historically low level Capacity measures offer flexible responds to demand fluctuations Global capacity management Global order book [TEU m / %] Idle fleet capacity [TTEU] % % % % % % % 50% 40% 30% 20% 10% 1,500 1, ,420 1, Q407 8, Q408 8, Q409 9, % Q410 9, Q411 10, Q412 10, % Global capacity measures 0 Q Q Q Q Q Slow Steaming (Avg. duration FE-Europe loops) [Weeks] Scrapping [TTEU] 17 Source: AXS-Alphaliner weekly newsletter; MDS Transmodal, various months; Clarksons

18 SCFI clearly above year-end 2011 despite seasonal spot rate downturns in Far East Europe and Transpacific trade Shanghai Containerized Freight Index (SCFI) Shanghai Europe Shanghai USA Shanghai - North Europe (USD/TEU) Shanghai - USWC (USD/FEU) 1) 2,200 Shanghai - Mediterranean (USD/TEU) 5,000 Shanghai - USEC (USD/FEU) 2) 2,000 4,500 1, % 4,000 1,600 1,400 1,200 1, % 1,423 1,366 3,500 3,000 2,500 2,000 1, % +50% 3,279 2, , Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec ) USWC = United States West Coast 2) USEC = United States East Coast Source: Shanghai Shipping Exchange

19 Freight rate increases / announcements in the FE-Europe and TP trade Effective dates 15 March 2013 and 1 April 2013 Freight rate increases in the FE-Europe and TP trade Far East Europe westbound [USD/TEU] Effective date Transpacific eastbound [USD/TEU / USD/FEU] Effective date Mar 15st Apr 1st 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 19 Source: Various press articles

20 Following a slight easing in bunker prices in mid 2012, currently the bunker price is trading at c. 606 USD/mt Bunker price development 1), Jan 2011 Mar 2013 [USD/mt] Rotterdam bunker price development (Bloomberg) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q COMMENTS Following a steep rise in Q the bunker price (Rotterdam) reached its peak in March at 721 USD/mt In Q the price fell rapidly to 532 USD/mt on 25 June 2012 After an increase again in Q 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) 20 Source: Bloomberg, March 2013

21 Agenda A. Full-year Financials 2012 B. Operational Excellence C. Alliances / Market Trends D. Conclusion and Outlook 21

22 Conclusion: Key highlights of Hapag-Lloyd 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 22

23 Outlook: Volume and rates expected to improve Uncertainty continues to surround anticipated developments Outlook 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 Liquidity Liquidity situation expected to remain adequate for 2013 Vessel order book fully financed long-term 23

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25 Hapag-Lloyd s strategy: Long-term profitable growth on the basis of a solid financial profile Long-term profitable growth Capitalizing on industry growth Sustainable and competitive business model Clear profile and customer orientation Cost discipline and operational excellence Target growth in line with market dynamics Above-average vessel size relative to industry Strong brand Careful cost management and resource allocation Increasing fleet capacity with focus on larger vessels Attractive fleet mix in terms of size and ownership Reputation for quality and reliability Focus on imbalance management Flexible network management Balanced customer mix of global Freight Forwarders and Direct Customers Customer segmentation and tender management Strong global service offering Enhancement of proprietary industry leading IT systems and EDI solutions Supported by solid financial profile 25

26 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) 44% 9% 47% 41% 9% 50% 40% 9% 51% 46% 7% 47% 52% 6% 42% 47% 4% 49% Total fleet (TTEU) Owned Leased Chartered Jan 31, 2008 Dec 31, 2008 Dec 31, 2009 Dec 31, ) 1) 1) Dec 31, 2011 Dec 31, ) Incl. chartered out vessels 26

27 Hapag-Lloyd is a leader in managing fuel costs Reduction of total bunker consumption by slow-steaming Mitigation of bunker cost increases Effect of slow steaming on bunker consumption 1) 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 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 1) Illustrative purposes only 27 Source: Germanischer Lloyd

28 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 containers 1) Fully integrated in the global Hapag-Lloyd organization Dominant leg 10 Provides and combines operational and financial data Transpacific 6 7 Mainly self-developed system as a result of significant investment Transatlantic 7 8 Real-time availability of information worldwide Europe- Far East 5 7 Market 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 28 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 Global Ocean Freight Carrier of the Year 2012 Global Carrier of the Year 2012 Ocean Carrier of the Year Deep Sea Shipping Company of the Year Dec 2012 Dec 2012 Nov 2012 Nov 2012 Fair Company Nr. 1 Best Carrier Award 2012 Data Quality Award Ocean Carrier Award 2011 Sep 2012 Jul 2012 Jun 2012 May 2012 Excellence Award 2011 PPG Excellent Supplier Award 2011 Gold-Award Green Gateway Programms Mar 2012 Feb 2012 Feb

30 Transport volumes rose by 1.1% compared to previous year Development of transport volume FY 2012 vs. FY 2011 [TTEU] Atlantic Latin America Far East Transpacific Australasia 5, % 5, ,177 1,133 1,171 1, FY 2011 Actual -2.2% -0.5% +0.9% +4.9% +3.7% 605 FY 2012 Actual 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% 30

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 [%] +11.3% +6.1% -1.5% -2.0% -0.7% Atlantic Latin America Far East Transpacific Australasia Overall the average freight rate level in 2012 is +3.2% above previous year 31

32 Hapag-Lloyd continues to have a strong asset base mainly driven by vessel book values Assets as of December 31, 2012 [EUR m] Comments Intangibles Financial Assets 6,851 1, ,786 Tangible assets make up over half of total assets Prepayments relate to vessel orders Tangible Assets 3,786 Vessels 2,944 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) Receivables Inventory Other Assets Cash Property Container Other Prepayments Financial assets primarily refer to CTA shareholding Assets as of 31-Dec-2012 Tangible Assets as of 31-Dec

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 6,851 2,372 Well balanced mix of financing instruments Equity Financial Debt Payables Other Liabilities 3,114 2, HY Bond Finance Lease Fleet Refin. ABS Container Fin. K-sure I Fin. K-sure II Fin. Bilateral Fin. New Fleet Fin. Ballindamm Premium Fin. Other 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 H existing long-term operating lease contracts for seven ships and a container portfolio were transferred to finance lease contracts In H K-Sure II financing for three new vessels and new financings for containers have been drawn with delivery of assets In Q partial replacement of bilateral ship financing agreements by new fleet financing agreements Liabilities as of 31-Dec-2012 Financial debt as of 31-Dec

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 Q Q [EUR m] Debt schedule Interim Report Annual Report Interim Report Interim Report Interim Report Annual Report EUR m EUR m EUR m EUR m EUR m EUR m Fleet Financing Fleet Financing K-sure I Financing K-sure II Financing Bilateral Vessel Financing Container Finance Container Finance Container Finance Container Finance JOL Shipportfolio Financing Fleet Refinancing ABS Program Ballindamm Premium Financing Other Liabilities to Banks Liabilities to Banks 1,110 1,239 1,292 1,329 1,460 1,499 Bond / USD Tranche Bond / EUR Tranche Vessel Finance Lease Container Finance Lease Other Financial Liabilities Total Debt Obligations 1,759 1,897 2,169 2,227 2,344 2,372 34

35 Hapag-Lloyd bonds trade well above par Hapag-Lloyd trading evolution 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 itraxx Xover development Jan/ 11 Apr/ 11 Jul/ 11 Okt/ 11 Jan/ 12 Apr/ 12 Jul/ 12 Okt/ 12 Jan/ COMMENTS 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 H 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 USDtranche is trading at 105.1% 35 Source: Citi, March 2013

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 HGV Kühne M.M.W HM Albert Ballin Consortium Iduna HSH TUI AG 36.9% 7) 28.2% 7) 5.3% 7) 2.9% 7) 2.9% 7) 1.8% 7) Albert Ballin KG ( ABKG ) 78.0% 22.0% TUI-Hapag GmbH RCF (undrawn) (USD 95 m) Hapag-Lloyd Holding AG ( HLHAG ) 1) ABS (USD 125 m) Asset Financings and Other Financial Debt 3) (c. EUR 1.6 bn) Subsidiaries 2) 100% Hapag-Lloyd AG ( HLAG ) 2) 100% 25.1% 20% Container Terminal Alternwerder ( CTA ) 4)5) Montreal Gateway Terminals Limited Partnership 100% Hapag-Lloyd Grundstücksholding GmbH ( HLGH ) 6) Senior Notes (EUR 480 m and USD 250 m) Ballindamm (EUR 60 m) 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 36

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38 Disclaimer 38 STRICTLY CONFIDENTIAL This presentation is provided to you on a confidential basis. Delivery of this information to any other person, the use of any thirdparty 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.