Hapag-Lloyd Overview Fleet Support Center

November 2018 Vallejo

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01 Hapag-Lloyd Overview

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Hapag-Lloyd in numbers

2,400,000 TEU

Container transport capacity

~12,300

employees worldwide

5 Regions

389 offices in

127 countries

226 container ships are operated by

Hapag-Lloyd

120 Services

7.4 years

is the average age of our fleet

1.6 million TEU total transport capacity of

our container ships

Source: Hapag-Lloyd Company Data H1 2018

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02 Current Market Environment

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Consolidation is still ongoing –

Full effects of the higher concentration not fully visible yet

Industry consolidation

Source: MDS Transmodal (October 2013, July 2018)

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03 Strengths

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Hapag-Lloyd is the first carrier in the shipping industry to provide a 100% automated and instant

online quotation solution.

Digitalisation – Quick Quotes

24/7

Access the Quick

Quotes tool whenever

and wherever

Fast

Receive your rate

immediately and waste

no time waiting for

a response

Easy

Get a quotation with

just a few clicks

Accessible

Regardless of the size or

location of your business,

you can get a quotation

Booking

With a click on the

“Book

Now” button, you will

start your booking

process immediately

Flexible

With Quick Quotes, you

have access to Hapag-

Lloyd’s extensive global

network

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Hapag-Lloyd’s FIS – One file-system

Export Region Import RegionSimultaneous Access

Empty

Container

(Delivery)

Consolidation

Center/

Factory

Inland

transport to

port

Export port Ocean leg Import port

Inland

transport to

consignee

Distribution

Center/

Factory

Empty

Container

(Redelivery)

Depot Shipper Container

terminal

Container

terminal

DepotConsignee

Only One Shipment File

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04 Fleet Support Center

10 07/11/2018 Digitalization at Hapag-Lloyd

From ship…

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Hapag-Lloyds Fleet Support Center – we use digital available data

optimizing three main areas

Voyage Execution & Design

& Vessel Selection

07/11/2018 Welcome on Board - Introduction Fleet Support Center

Network PerformanceCargo Engineering

Hapag-Lloyd

Hapag-Lloyd

2013 - 2015 2017ff2016

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Since 2013 all three main areas are supported by digital

initiatives and projects – both internal and external

07/11/2018 Status Fleet Support Center

ST

RIC

TL

Y C

ON

FID

EN

TIA

L

Hapag-Lloyd Hapag-Lloyd

Network PerformanceVoyage Execution Cargo Engineering

✓ Ongoing voyage monitoring (route,

speed, new dashboard for trim,

consumption, hull performance)

✓ Harmonized reporting

✓ Integration of UASC fleet

✓ Vessel evaluation

✓ Implementation of global stowage

responsibility

✓ Review of operational capacity/

ship size

✓ Consolidation of stowage demands

and tool developments

✓ Launch of terminal performance &

network scorecard

✓ Global, regional and area calls for

improvement

✓ Regular review process of network

Time Budget

Moves Reliability

Digital CRAFT(479 Terminal)

Xvela(Pilot)

OMNI (Seapassage Actuals, Data Integ.)

Specialized start-up or

niche players

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Basic concept of operational in-house initiatives (OMNI & MONET)

to transfer identified deviations into actionable initiatives

07/11/2018 Status Fleet Support Center

Hapag-Lloyd

Actual

FSC

Plan

N&C

Hapag-Lloyd

▪ Infrastructure in OMNI (Operational Monitoring and

Network Insight) and MONET ready to populate actual

and planned data

▪ Visualization only on single voyage legs possible

▪ Rough screens designed as intermediate solution for

consumption and hull monitoring, terminal

performance and network reviews

▪ Next major item planned in OMNI is to visualize round

voyage statistics real time

▪ This would allow ad hoc, tactical and strategic reviews

of our networks

Hapag-Lloyd

Status

moves

Status

productivity

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CNSHA+1%

moves

+25%

Moves/h

-1%

distance

45hrs

waiting costs

+30%

speed

-2%

Deep dive OMNI: Ultimate aims to view the complete

round voyage with focus on disruptions

CNNGB

CNXMNHKHKGCNYTNSGSIN

GBSOUBEANR

DEHAM

SAJED

CNSHA

LKCMB

Status Fleet Support Center07/11/2018

CONCEPT

to shore.

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06 What`s next – opportunities ahead, too.

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We navigate through interesting times!

Customer needs

underserved over

many years due to

focus on cost

cutting

Environmental

Regulation

rapidly increasing

Geo-political

volatility

protectionism,

trade wars,

real wars?

Digitalisation

continues to

accelerate and bring

opportunities

Rise of the e-commerce giants such as amazon, Alphabet,

Alibaba, JD.com, Baidu, Tencent, DiDi…

Horizontal

integration

increasing along the

supply chain

Benefits of scale

nearing their limits

for company and

ship size

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Operational insights + strategy = new opportunities to tackle cost

and widen service portfolio

07/11/2018 Status Fleet Support Center

„Cost Performance Match – Pay What You Get“

“Perfect Pick-up Prediction”

“Prime Product: Transit Times”

Last in First out

Improved Asset Management

“Cargo Hunting List – Sell What You Want”

Nominal Capacity

Operational Capacity

Operational Weight Capacity

Nominal Weight Capacity

TE

UW

eig

ht

t

t

t

t

t

t

t

t

tt

t

t

t

t

t

t

Pick-up

Delivery

RATING

Terminal Performance Remuneration

$$$

$$$$$

$$

$

$$$$

$$$$$$…

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Many opportunities exist along the transport chain

to benefit from digitalization

07/11/2018 Digitalization at Hapag-Lloyd

Arrival

steering &

position

Automated

notification of

pick-up

Real-time

positions &

condition

WeatherMachinery

Operations

Predictive

ETA

Vessel

Monitoring

Predictive

Maintenance

Notification

Machine to

Machine

Traffic

situation &

ETA

Live

discharge

Reporting

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One possible view of the future (source: ABB)

07/11/2018 Digitalization at Hapag-Lloyd

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Vision and Awareness Systems

07/11/2018 Digitalization at Hapag-Lloyd

22 07/11/2018 Digitalization at Hapag-Lloyd

New Technology – Threat or Opportunity?

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Challenges ahead with regard to sustainability will demand interdisciplinary

collaboration and may demand completely new (additional) qualifications

In sum, the industry has dealt with many challenges – and will face

new ones in the years to come – but the overall outlook is today

probably more positive than it has been for a very long time

Vessel operation will see new technologies and likely additional roles

on-board and ashore – standards will support growth of eco-systems

Marine expertise will be required – more autonomy of vessels does

not translate into unmanned operation

24 07/11/2018 Digitalization at Hapag-Lloyd

Seamanship will embrace change –

if we stay quiet, calm and collected

we will shape the future

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Thank you!

Follow our story:

Jörn Springer

Senior Director Fleet Support Center

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Contact

Digitalization at Hapag-Lloyd07/11/2018

JÖRN SPRINGER

Senior Director Fleet Support Center

Hapag-Lloyd AG

Ballindamm 25

20095 Hamburg

Tel: +49(40) 3001 - 2262

joern.springer@hlag.com

www.hapag-lloyd.com

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DISCLAIMER

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 constitutes neither an offer to sell nor a solicitation to buy any securities in the United States, Germany or any other jurisdiction.

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

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