-
PROSPECTUS
for the public offering
of
11,503,197 newly issued ordinary registered shares from a
capital increase against cash contributionto be resolved by the
management board with approval of the supervisory board of the
Company,
and of
2,300,639 ordinary registered shares from the holdings of the
Lending Shareholder, subject to the exercise of asecondary shares
placement option upon joint decision of the Company and the Lending
Shareholder in
consultation with the Joint Global Coordinators on the date of
pricing
and of
1,917,199 ordinary registered shares from the holdings of the
Lending Shareholder to cover potential Over-Allotments
and at the same time
for the admission to trading on the regulated market segment
(regulierter Markt) of the Frankfurt StockExchange (Frankfurter
Wertpapierbörse) with simultaneous admission to the sub-segment of
the regulated
market with additional post-admission obligations (Prime
Standard) of the Frankfurt Stock Exchange,and on the regulated
market of the Hamburg Stock Exchange
of
104,882,240 ordinary registered shares (existing share
capital)
and of
up to 11,503,197 newly issued ordinary registered shares from a
capital increase against cash contributionto be resolved by the
management board with approval of the supervisory board of the
Company
– each such share with no par value, a notional value of €1.00
and full dividend rights as fromJanuary 1, 2015 –
of
Hapag-Lloyd AktiengesellschaftHamburg, Germany,
Price Range: €23.00 to €29.00
International Securities Identification Number (ISIN):
DE000HLAG475German Securities Code (Wertpapierkennnummer) (WKN):
HLAG47
Common Code: 129212390Trading Symbol: HLAG
Joint Global Coordinators and Joint Bookrunners
Berenberg Deutsche Bank Goldman SachsInternationalJoint
Bookrunners
Citigroup Credit Suisse HSBC UniCredit Bank AG
Co-Lead Managers
DZ BANK ING M.M.Warburg & CO
The date of this prospectus is October 14, 2015
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1. SUMMARY OF THE PROSPECTUS . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
GERMAN TRANSLATION OF THE SUMMARY OF THE PROSPECTUS
(ZUSAMMENFASSUNG DES PROSPEKTS) . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . 353. RISK FACTORS
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 753.1
Risks Relating to Our Business and Industry . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
753.2 Risks Relating to Our Financial Profile . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 993.3 Risks Relating to the Offering, the Shares and Our
Shareholder Structure . . . . . . . . . . . . . . . . . . . . .
1024. GENERAL INFORMATION . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1054.1 Responsibility Statement . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . 1054.2 Purpose of this Prospectus . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . 1054.3 Forward-looking Statements . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . 1064.4 Appraiser/Valuation
Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 1084.5
Sources of Market Data/Third Party Reports . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1084.6 Documents Available for Inspection . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 1104.7 Currency Presentation . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 1114.8 Presentation of Certain Financial
Information . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 1115. THE OFFERING . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 1145.1 Subject Matter of
the Offering . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1145.2
Existing Shareholders, Lending Shareholder . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1155.3 Price Range, Offer Period, Number of Offered Shares, Offer
Price and Allotment . . . . . . . . . . . . . . 1155.4 Cornerstone
Investors . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1165.5 Currency of the Securities Issue . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . 1175.6 Expected Timetable for the Offering . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 1175.7 Information on the Shares . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 1185.8 Transferability of the
Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . 1185.9
Allotment Criteria . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . 1195.10 Preferential Allocation . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 1195.11 Stabilization Measures,
Over-Allotments and Greenshoe-Option . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 1195.12 Market Protection Agreement,
Limitations on Disposal (Lock-up Agreements) . . . . . . . . . . .
. . . . . 1205.13 Admission to the Frankfurt Stock Exchange and the
Hamburg Stock Exchange and
Commencement of Trading . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 1215.14 Designated Sponsors . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 1215.15 Interests of the Parties
Participating in the Offering . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . 1216. REASONS FOR THE
OFFERING, USE OF PROCEEDS AND COST OF THE
OFFERING . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . 1226.1 Proceeds and Costs of the Offering . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 1226.2 Reasons for the Offering and Use of
Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 1227. DIVIDEND POLICY . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 1247.1 General Provisions
Relating to Profit Allocation and Dividend Payments . . . . . . . .
. . . . . . . . . . . . . 1247.2 Earnings and Dividend Per Share .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . 1258. CAPITALIZATION AND
INDEBTEDNESS; STATEMENT ON WORKING CAPITAL . . . 1268.1
Capitalization and Indebtedness . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . 1268.2 Capitalization . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 1268.3 Net Indebtedness . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . 1278.4 Off-Balance
Sheet Arrangements and Contingent Liabilities . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 1278.5 Statement of Working
Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . 1279. DILUTION .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12810. SELECTED FINANCIAL AND OTHER INFORMATION OF OUR GROUP . . .
. . . . . . . . . . 12911. SELECTED FINANCIAL INFORMATION FROM THE
HISTORICAL COMBINED
FINANCIAL STATEMENTS OF CSAV GERMANY CONTAINER GMBH . . . . . .
. . . . . . . . 13412. PRO FORMA FINANCIAL INFORMATION . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13912.1 Pro Forma Consolidated Income Statement for the Year Ended
December 31, 2014 . . . . . . . . . . . . 14012.2 Notes to the Pro
Forma Financial Information . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . 14012.3 Notes to the
Pro Forma Consolidated Income Statement and additional Information
. . . . . . . . . . . . 14212.4 Auditor’s Report to the Pro Forma
Financial Information . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 144
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13. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS
ANDRESULTS OF OPERATIONS . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
146
13.1 Overview . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 14613.2 Factors Affecting Our Results of
Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 14713.3 Factors Affecting the
Comparability of Financial Information . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 15413.4 Explanation of Profit and
Loss Statement Items . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 15513.5 Results of Operations . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . 15713.6
Comparison of the six months ended June 30, 2015 and 2014 . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . 15713.7 Comparison
of the Financial Years ended December 31, 2014 and 2013 . . . . . .
. . . . . . . . . . . . . . . 16213.8 Comparison of the Financial
Years Ended December 31, 2013 and 2012 . . . . . . . . . . . . . .
. . . . . . 16613.9 Liquidity and Capital Resources . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 17013.10 Capital Expenditures . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . 17313.11 Contractual
Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17513.12 Off-Balance Sheet Arrangements . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . 17513.13 Equity, Pension Obligations and Provisions . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . 17513.14 Quantitative and Qualitative Disclosure about
Market Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 17713.15 Critical Accounting Policies . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . 18113.16 Recently Adopted Accounting Principles .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 18213.17 Information from the CCS Historical
Combined Financial Statements of CSAV Germany
Container GmbH for the years ended December 31, 2014 and 2013 .
. . . . . . . . . . . . . . . . . . . . . . . 18413.18 Information
from the Unconsolidated Financial Statements of Hapag-Lloyd AG
Prepared
According to HGB for the Financial Year Ended December 31, 2014
. . . . . . . . . . . . . . . . . . . . . . . 18414. MARKETS AND
COMPETITIVE ENVIRONMENT . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 18614.1 Globalization as a driver for
containerization . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 18614.2 Container shipping
volumes grew faster than GDP . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . 18714.3 Container Shipping
Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . 18814.4 Steady
growth of supply of transport capacity with increasing focus on
capacity management . . . . 18914.5 Development of the capacity of
the global container ship fleet . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 18914.6 Trend towards larger vessels . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 19014.7 Order book by vessel size
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . 19114.8 Global
fleet by vessel size 2012-2016 . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19114.9
Cost trends and freight rate development . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19114.10 Imbalances of the transported volume on the main trades
differ on dominant and non-dominant
leg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 19314.11 Inter-carrier Cooperation . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 19314.12 Industry
Consolidation . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19514.13 Chartering . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 19714.14 The Panama Canal expansion . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 19715. OUR BUSINESS . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . 19815.1 Overview . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19815.2 Our Strengths . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 19915.3 Our Strategy . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 20315.4 Our History . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20615.5 Our Services . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 20715.6 Operations . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . 20915.7 Alliances and
Cooperation Arrangements . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . 21415.8 Information
Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21515.9 Business Organization . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . 21715.10 Sales and Marketing . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 21815.11 Customers . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . 21815.12
Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . 21915.13 Employees . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 21915.14 Quality, Environmental
Matters and Safety . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 22015.15 Insurance . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22115.16 Intellectual Property . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 22215.17 Real Estate . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . 22215.18 Compliance . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22215.19 Legal and Tax Proceedings . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . 223
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16. MATERIAL CONTRACTS . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22416.1 Overview of our Financing Arrangements . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. 22416.2 Hapag-Lloyd AG’s Financing Arrangements . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24016.3 G6 Alliance’s Operating Agreement . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 29417. REGULATORY ENVIRONMENT . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29517.1 Permits, Licenses and Certificates . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . 29517.2 Maritime Regulations . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . 29517.3 Security and Safety Matters . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 29617.4 United States . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29917.5 European Union . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 30017.6 Environmental Matters . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 30118. PRINCIPAL EXISTING
SHAREHOLDERS AND LENDING SHAREHOLDER . . . . . . . . . . 30818.1
Shareholder Structure . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . 30818.2 Shareholders’ Agreement . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 31019. GENERAL INFORMATION ON THE COMPANY AND
THE GROUP . . . . . . . . . . . . . . . . . 31219.1 Corporate
History, Name, Registered Office, Financial Year and Duration of
the Company . . . . . . 31219.2 Corporate Purpose . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 31219.3 Group Structure .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31319.4 Significant Subsidiaries . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . 31419.5 Statutory Auditor . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . 31419.6 Notices and Paying
Agent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 31420.
DESCRIPTION OF SHARE CAPITAL AND APPLICABLE REGULATIONS . . . . . .
. . . . . 31520.1 Current Share Capital of the Company . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . 31520.2 Share Capital of the Company and
Development of Share Capital since the Company’s
incorporation . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . 31520.3 Authorized Capital . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . 31520.4 General Provisions
Relating to Liquidation of the Company . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 31620.5 General Provisions
Relating to Increases or Decreases in the Share Capital . . . . . .
. . . . . . . . . . . . . 31620.6 General Provisions Relating to
Subscription Rights . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . 31620.7 Exclusion of Minority
Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . 31720.8 Shareholder
Notification Requirements; Mandatory Takeover Bids; Directors’
Dealings . . . . . . . . . 31721. DESCRIPTION OF THE GOVERNING
BODIES OF HAPAG-LLOYD AG . . . . . . . . . . . . . . 32021.1
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . 32021.2 Management Board . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 32121.3 Supervisory Board . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . 32421.4 Certain
Information Regarding the Members of the Management Board and
Supervisory Board . . . 33321.5 General Meeting . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 33321.6 Corporate
Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33522. CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS . . . .
. . . . . . . . . . 33623. UNDERWRITING . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . 33823.1 Commission . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . 33923.2
Greenshoe-Option and Securities Loan . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33923.3 Termination/Indemnification . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . 33923.4 Selling restrictions . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 34024. TAXATION . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . 34224.1 Taxation
in the Federal Republic of Germany . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . 34224.2
Taxation in the Grand Duchy of Luxembourg . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34925.
FINANCIAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-126.
VALUATION REPORT . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
V-127. GLOSSARY OF SELECTED TERMS USED IN THIS PROSPECTUS . . . . .
. . . . . . . . . . . . . G-128. RECENT DEVELOPMENTS AND OUTLOOK .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . O-129. SIGNATURE PAGE . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . S-1
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1. SUMMARY OF THE PROSPECTUS
Summaries are made up of disclosure requirements known as
elements (“Elements”). TheseElements are numbered in Sections A - E
(A.1 - E.7). This summary contains all the Elements requiredto be
included in a summary for this type of securities and issuer.
Because some Elements are notrequired to be addressed, there may be
gaps in the numbering sequence of the Elements. Even thoughan
Element may be required to be inserted in the summary because of
the type of securities and issuer,it is possible that no relevant
information can be given regarding the Element. In this case,
thesummary includes a short description of the Element with the
words “not applicable”.
A – Introduction and Warnings
A.1 Warnings. This summary should be read as an introduction to
thisprospectus. Any decision to invest in the shares of the
Company(as defined below) should be based on consideration of
theprospectus as a whole by the investor.
If any claims are asserted before a court of law based on
theinformation contained in this prospectus, the investor appearing
asplaintiff may have to bear the costs of translating the
prospectusprior to the commencement of the court proceedings
pursuant tothe national legislation of the member states of the
EuropeanEconomic Area.
With regard to the contents of this summary including a
possibletranslation thereof, civil liability attaches to the
persons who haveassumed responsibility for the contents of this
summary or whohave arranged for the issuance (von denen der Erlass
ausgeht),but only if the summary is misleading, inaccurate or
inconsistentwhen read together with the other parts of this
prospectus or if itdoes not provide, when read together with the
other parts of thisprospectus, all necessary key information.
Hapag-Lloyd Aktiengesellschaft, Hamburg, Federal Republic
ofGermany (“Germany”) (the “Company” or “Hapag-Lloyd AG”and,
together with its consolidated subsidiaries, “we”, “us”,“our”, the
“Group”, the “Hapag-Lloyd Group” or “Hapag-Lloyd”), together with
Joh. Berenberg, Gossler & Co. KG,Hamburg, Germany
(“Berenberg”), Deutsche BankAktiengesellschaft, Frankfurt am Main,
Germany (“DeutscheBank”), and Goldman Sachs International, London,
UnitedKingdom (“Goldman Sachs” and, together with Berenberg
undDeutsche Bank, the “Joint Global Coordinators”), CitigroupGlobal
Markets Limited, 33 Canada Square, London E14 5 LB,United Kingdom
(“Citigroup”), Credit Suisse Securities (Europe)Limited, One Cabot
Square, E14 4QJ London, United Kingdom(“Credit Suisse”), HSBC
Trinkaus & Burkhardt AG, Königsallee21/23, 40212 Düsseldorf,
Germany (“HSBC”), UniCredit BankAG, Arabellastraße 14, 81925
Munich, Germany (“UniCreditBank AG”, and, together with Citigroup,
Credit Suisse, HSBCand the Joint Global Coordinators, the “Joint
Bookrunners”) andING Bank N.V., Bijlmerplein 888, 1102 MG
Amsterdam, TheNetherlands (“ING”), DZ BANK AG Deutsche
Zentral-Genossenschaftsbank, Frankfurt am Main, Platz der
Republik,60265 Frankfurt am Main, Germany (“DZ BANK”)
andM.M.Warburg & CO (AG & Co.) KGaA, Ferdinandstraße
75,20095 Hamburg, Germany (“M.M.Warburg”); together, the“Co-Lead
Managers” and, together with the Joint Bookrunners,the
“Underwriters”), assume responsibility for the content of this
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summary, including possible translations thereof, pursuant
toSection 5 (2b) no. 4 of the German Securities Prospectus
Act(Wertpapierprospektgesetz).
A.2 Information regarding thesubsequent use of
theprospectus.
Not applicable. Consent regarding the use of the prospectus for
asubsequent resale or placement of the Company’s shares has notbeen
granted.
B – Issuer
B.1 Legal and commercialname.
The Company’s legal name is Hapag-Lloyd Aktiengesellschaft.
The Company is the parent company of the Hapag-Lloyd Groupand
its business is primarily conducted under the commercialname
“Hapag-Lloyd.”
B.2 Domicile, legal form,legislation under whichthe issuer
operates,country of incorporation.
The Company has its registered office at Ballindamm 25,
20095Hamburg, Germany, and is registered with the
commercialregister maintained by the local court (Amtsgericht) of
Hamburg,Germany, under HRB 97937. The Company is a German
stockcorporation incorporated in Germany and governed by
Germanlaw.
B.3 Current operations andprincipal businessactivities and
principalmarkets in which theissuer competes.
We are a leading global container liner shipping
company.Measured by the capacity of our fleet, we are the largest
containershipping line based in Germany and one of the largest in
theworld (source: MDS Transmodal, September 2015). We offer
ourcustomers a comprehensive range of services through an
extensivenetwork with 128 liner services worldwide, combined with
thesupport of strong local presences with around 349 sales
offices(including agents) in 116 countries as of June 30, 2015. We
offerboth complete worldwide door-to-door container
shipmentservices and port-to-port services, as well as a variety of
possiblecombinations which are tailored to meet our customers’
transportservice requirements.
We maintain a well-balanced portfolio of trades distributed
amongour main markets. We have a strong presence in the
high-volumeFar East trade (Europe-Asia) as well as the Atlantic
(Europe-North America) and Transpacific (Asia-North America)
trades.With the acquisition of the container shipping activities of
theChilean shipping company Compañía Sud Americana de
Vapores(“CSAV”) in December 2014 (including, among others,
therelated container vessel financings and certain
corporatefinancings) (together, the “CCS Activities”) (the
“BusinessCombination”), we have especially strengthened our
marketposition in the Latin America trade and in the Atlantic
trade,where we intend to seize opportunities for further
profitablegrowth. The acquisition not only significantly enhanced
ourglobal reach and the network we are able to offer to
ourcustomers, but also enables us to harness extensive synergies.
Inaddition, the EMAO (Europe-Mediterranean-African-Oceania)trade as
well as the Intra-Asia trade contribute to our overalltransport
volume.
Our extended service network ensures that we are well
positionedto benefit from an increase in trade flows around the
globe. Wehave a strong position both in the high-volume East-West
trades,which accounted for 56% of our total transport volume in the
sixmonths ended June 30, 2015, as well as in the North-South
trades,
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which accounted for 44% of our total transport volume in thesix
months ended June 30, 2015. In the financial year 2014 and inthe
six months ended June 30, 2015, these trades contributed toour
total transport volumes as follows: Latin America (19.6% and30.9%,
respectively), Atlantic (24.5% and 20.8%, respectively),Far East
(19.2% and 17.7%, respectively), Transpacific (22.3%and 18.3%,
respectively), Intra-Asia (8.3% and 7.5%,respectively) and EMAO
(6.1% and 4.8%, respectively).
Our fleet is one of the largest container ship fleets
globally(source: MDS Transmodal, September 2015). As of June
30,2015, we had a fleet of 188 container ships with a total
transportcapacity of 989,177 TEU (TEU is a 20-foot equivalent
unit(referring to a standard container with dimensions of 20-foot,
or6.05 m, x 8 foot or 2.43 m, x 8 foot 6 inches or 2.59 m),
thestandard unit of measurement of volume used in the
containershipping industry), of which we owned 66, chartered 117
andfinance leased five container ships. Of the 188 container
vessels,we have chartered out two ships with a capacity of 8,400
TEU and3,426 TEU, respectively. As of June 30, 2015, we managed a
fleetof 1,000,415 containers with a total transport capacity
of1,607,197 TEU, approximately 35% of which we owned with
theremainder being leased or rented. As of June 30, 2015, our
orderbook comprised five new vessels each with a capacity of
10,500TEU scheduled for delivery between October 2016 and May
2017as well as one vessel ordered by CSAV with a capacity of
9,300TEU, which was delivered in July 2015. We are considering
toorder six ultra-large container vessels following the Offering.
Inaddition, we invested in 27,400 containers as of June 30, 2015.
Asa result of these investments, our ownership ratio in vessels
andcontainers is expected to increase.
Hapag-Lloyd AG is one of the founding members of the G6Alliance
(whose other members are American President Lines Ltd.(APL),
Hyundai Merchant Marine Co., Ltd. (HMM), MitsuiO.S.K. Lines (MOL),
Nippon Yusen Kaisha Lines (NYK) andOrient Overseas Container Line
Limited (OOCL)), one of theworld’s largest operating container
shipping alliances with a totalcombined capacity of approximately
3.6 million TEU,representing a 17.6% share of the global transport
capacity as ofJune 30, 2015 (source: MDS Transmodal, September
2015). Inaddition, we maintain cooperation arrangements with
othercarriers. Furthermore, we are one of the founding members of
theGrand Alliance, which also includes OOCL and NYK, of whichthe
majority of services were merged with those of the NewWorld
Alliance to form the G6 Alliance. Such arrangements allowus to
optimize fleet utilization by sharing capacity and to providea
range and geographic scope of network services that would notbe
possible if we relied solely on our own fleet of vessels.
Ourability to coordinate our route planning with our partners
enablesus to use capacity more efficiently and benefit from cost
savingsand lower capital expenditures. For the six months ended
June 30,2015, approximately 50% of our total transport volume
wascarried on either our owned or chartered vessels contributed to
theG6 Alliance and the Grand Alliance, or vessels made available
tous through the G6 Alliance and Grand Alliance. In addition,
wehave entered into a cooperation arrangement with CMA CGMS.A.
(“CMA CGM”), Hamburg Süd Group (“Hamburg Süd”)
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and other shipping companies, offering new products betweenAsia
and the Western and Eastern coasts of Latin America. Thisreflects
our ongoing efforts to further strengthen our globalcoverage of
trades, expand our product offering (e.g., reeferproducts) between
Asia and the West and the East coast of LatinAmerica and enhance
our cost and operational efficiency.
We have entered into contractual arrangements to use
terminalfacilities in each of the ports called by our fleet and
have strategicshareholdings in a container terminal in Hamburg,
Germany. Wecurrently own a 25.1% interest in HHLA Container
TerminalAltenwerder GmbH (“CTA”) in the Port of Hamburg, one of
themost modern container terminal facilities in the world
(source:HHLA Hamburger Hafen und Logistik AG, June 2015).
The Group is headquartered in Hamburg, Germany. As of June
30,2015, we had 9,958 full-time equivalent employees worldwide.
Inthe financial year 2014 and in the six months ended June 30,2015,
we generated revenue of €6,807.5 million and€4,669.0 million,
respectively, and EBITDA of €98.9 million(including significant
transaction and restructuring costs as wellas one-off costs) and
€493.3 million, respectively.
Our Strengths
We are a leading global container liner shipping company
andbelieve that the combination of the following
strengthsdifferentiates us from our competitors and provides us
with acompetitive advantage:
• One of the market leaders with a strong global footprint
andexposure to attractive niche businesses.
• Well-balanced route mix and exposure to attractive
marketsstrongly supported by our membership in the G6 Alliance
andthrough several cooperation agreements.
• Competitive and modern fleet with a balanced
ownershipstructure providing operational flexibility through the
cycle.
• Highly diversified and solid customer base with long-term
andclose customer relationships based on operational excellenceand
technological know-how that allows for better imbalancemanagement
(i.e., management of different transport volumes ofregions, which
produce and export more goods than they importand consume, on the
one hand, and regions, which import andconsume more goods than they
produce and export, on the otherhand, for example, through network
planning and by chargingdifferent rates for shipping cargo).
• Proven track record on integration and well positioned
toactively participate in consolidation trends in our industry.
• Experienced management team and supportive
anchorshareholders.
Our Strategy
We intend to further enhance profitability over the next
threeyears to significantly improve earnings and achieve an
EBITDAmargin of 11% to 12% by 2016 by harnessing synergies
andstreamlining our cost structure, continued growth in volume
andan improvement in revenue quality. As a result, we focus on
thefollowing key strategic objectives:
• Further encourage growth by capitalizing on dynamic
growthtrends in our industry and through acquisitions.
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• Deliver significant synergies from the Business
Combination.
• Continuously implement efficiency and cost improvementmeasures
to enhance overall profitability.
• Further exploit the benefits from our global alliances
andcooperations.
• Leverage our market position and our strong reputation
forquality, reliability and seamless execution to increase
revenueand improve revenue quality.
B.4a Most significant recenttrends affecting the issuerand the
industries inwhich it operates.
Between 2010 and 2014, the container shipping industry hasgrown
at a compound annual growth rate of 5.3% driven by
theindustrialization of the developing countries in Asia and
LatinAmerica as well as the globalization of industrial
production,while global GDP grew by 3.6% and world trade increased
by3.9% (source: Clarksons Research, Container
IntelligenceQuarterly, 2Q 2015; IMF, World Economic Outlook, July
2015).
As a result of the weaker than expected growth in China and
inother emerging countries, transport volume primarily on the
FarEast trade has not developed as predicted at the beginning of
2015by market experts. Freight rates have decreased due to,
amongothers, additional capacities having entered the market.
Containershipping companies have reacted by reducing the
availablecapacity by void sailings in recent months. As a result,
the idlefleet increased at the beginning of September 2015 to its
highestlevel since April 2014. Bunker prices have decreased further
inSeptember 2015.
The following factors had and still have a significant impact
onthe growth of the container shipping industry:
Globalization. With an increasing share of industrial
andconsumer goods traded internationally due to
globalization,further outsourcing and, in particular, increasing
internationalseparation of labor as manufacturing still continues
to move awayfrom high-labor cost locations in North America, Europe
andJapan to lower-wage countries, predominantly in Asia, thedemand
for maritime cargo shipping continues to grow.
Shift to container shipping. The containerization of
cargoreduces transit times, substantially reduces damage to and
theft ofgoods, reduces handling costs, improves the turnaround time
ofships in ports and facilitates intermodal transport in supply
chainsinvolving sea, rail, barge and road transport. In addition,
transportcosts have declined and operating efficiency has improved
forcarriers as a result of investments in larger ships, port,
intermodaland inland transport infrastructure, containers and
informationsystems, as well as more efficient use of assets.
Additional growthfor containerized transports derives from
specialized transportsolutions for special cargo such as
temperature-sensitive products.
Cost trends and freight rate development. The major costitems
within transport expenses are expenses for raw materialsand
supplies, port, canal and terminal costs container transportcosts
as well as chartering, leases and container rentals.Particularly in
2011 and 2012, container shipping companies werenegatively affected
by rising fuel costs, which they were unable tocompletely pass onto
their customers. Since the second half of
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2014, the cost burden due to high bunker costs has eased. OnJuly
8, 2015, the price for 3.5% marine fuel oil (“MFO”)(Rotterdam) was
quoted at US$285 per metric ton. The decline inthe bunker price had
a significant positive effect on the containerliners overall
operating costs in the first six months of 2015.
Trend towards bigger vessels. Presently, the largest vessels
cancarry up to approximately 20,000 TEU, whereas in 2005, therewere
no vessels that carried above 9,999 TEU. At the end of 2014,vessels
that can carry more than 10,000 TEU accounted for 17.3%of the
existing global fleet capacity. Carriers have increasinglybeen
using larger vessels to benefit from lower operating andvoyage unit
costs, such as fuel, port and canal fees, manning,repairs,
insurance and ship management costs. In particular, ultra-large
container vessels with a capacity of more than 18,000 TEUare
increasingly being used in the Far East trade. These ships havethe
highest fuel efficiency of the various vessel classes of theglobal
fleet. The shift to larger vessels has been particularlyprominent
in the Far East-Europe and Transpacific trades, wheretransport
volume and competitive pressures have been intense(source: MDS
Transmodal, 2015).
Imbalances of the transported volume on the main tradesdiffer on
dominant and non-dominant leg. In general, alltrades can be divided
into a “dominant” and “non-dominant” leg.The dominant leg is the
direction of shipping on the trade with thehigher transport
volumes. For example, on the Transpacific trade,shipments from Asia
to North America form the dominant leg ofthe trade and shipments
from North America to Asia form thenon-dominant leg. The industry
refers to the different volumes asthe “imbalances” on a specific
trade. These imbalances existbecause some regions of the world
produce and export more goodsthan they import and consume, while
others import and consumemore than they produce and export. These
significant globalimbalances on trades have important consequences
for thecontainer shipping industry.
B.5 Description of the groupand the issuer’s positionwithin the
group.
Hapag-Lloyd AG is the parent company of the Hapag-LloydGroup.
The following diagram sets forth a summary of theCompany’s
significant subsidiaries as of the date of thisprospectus:
Hapag-Lloyd AG
Assets
Vessels(1)
Containers(2)
(3)100.0% 94.9%
49.9%
48.0%25.1%
HHLA ContainerTerminal Altenwerder
GmbH („CTA”)(6)
Consorcio NavieroPeruano S.A.(7)
Operational SubsidiariesHapag-Lloyd
GrundstücksholdingGmbH („HLGH”)(4)
CSAV Austral S.A.(5)
(100% economic ownership)
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(1) All vessels are economically owned by the Company and German
subsidiaries except for vessels which are registered inthe United
States. These five vessels are economically and legally owned by a
subsidiary in the United States. Vesselsregistered in Bermuda,
Brazil, Chile, Liberia, the Marshall Islands, the Isle of Man, the
UK are legally owned bysubsidiaries.
(2) All containers are economically owned by the Company, some
containers are legally owned by subsidiaries in the UK.
(3) Nearly all operational subsidiaries are wholly-owned by
Hapag-Lloyd AG.
(4) Owner of the property at Ballindamm, Hamburg (asset
subsidiary).
(5) CSAV Austral S.A. (the “Cabotage Entity”) performs (i)
cabotage services (i.e., services, which are subject to
legalrestrictions that are aimed at protecting transporters of
goods within a country from competition from foreign carriers)
inChile, (ii) container transport between Chile and Brazil under
the Convenio sobre transporte maritimo entre Chile yBrasil 1974
(the “Chile-Brazil Convention”) and (iii) container transport
between the Conosur countries (Brazil,Uruguay, Argentina, Chile,
Peru and Ecuador).
(6) Remaining stake owned by HHLA Container Terminals GmbH, a
subsidiary of Hamburger Hafen und Logistik AG(“HHLA”). CTA is
considered an associated company of the Company.
(7) Consorcio Naviero Peruano S.A. is considered a joint venture
of the Company.
B.6 Persons who, directly orindirectly, have a(notifiable)
interest in theissuer’s capital and votingrights.
As of the date hereof, the following persons, directly or
indirectly,have a notifiable interest in the Company’s capital and
votingrights (together, the “Existing Shareholders”):
CSAV, which holds 34.01% of the Company’s outstanding
sharecapital through a wholly owned subsidiary, CSAV
GermanyContainer Holding GmbH (“CG Hold Co”);
HGV Hamburger Gesellschaft für Vermögens-
undBeteiligungsmanagement mbH (“HGV”), which holds 23.23% ofthe
Company’s outstanding share capital;
Kühne Maritime GmbH (“Kühne”), which holds 20.75% of
theCompany’s outstanding share capital;
TUI Aktiengesellschaft (“TUI”), which holds 13.88% of
theCompany’s outstanding share capital through a wholly
ownedsubsidiary, TUI-Hapag Beteiligungs GmbH (“THB”);
Signal Iduna Gruppe (“Signal Iduna”), which holds 3.32% of
theCompany’s outstanding share capital through its
controllingcompanies IDUNA Vereinigte Lebensversicherung AG
andDeutscher Ring Krankenversicherungsverein a.G.
Voting rights. Each share in the Company carries one vote at the
Company’sshareholders’ meeting. There are no restrictions on voting
rights.Voting rights are the same for all of the Company’s
shareholders.
Direct or indirect controlover the issuer and natureof such
control.
The Company is directly jointly controlled for purposes of
theGerman Securities Trading Act (Wertpapierhandelsgesetz) and
theGerman Stock Corporation Act (Aktiengesetz) by CG Hold Co,HGV
and Kühne.
On April 16, 2014, CG Hold Co, HGV and Kühne entered into
ashareholders’ agreement (as amended and acceded to by CSAVand
Tollo Shipping Co. S.A. (“Tollo”) on November 17, 2014 andfurther
amended from time to time, the “Shareholders’Agreement”), according
to which the parties have agreed to poolvoting rights through a
consortium company, Hamburg ContainerLines Holding GmbH & Co
KG. Therein, among other provisions,each of CG Hold Co, HGV and
Kühne have committed themselvesto hold the respective shares for a
term of ten years (provided thatHGV may request a release of 50% of
its shares that are subject tothe Shareholders’ Agreement after
five years) and pool their
7
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voting rights on all decisions related to Hapag-Lloyd’s
business.Through the coordination of the voting rights, the
shareholderswill be in a position to exert substantial influence on
the generalshareholders’ meeting and, consequently, on matters
decided bythe general shareholders’ meeting, including the
appointment ofour supervisory board (also by including delegation
rights(Entsenderechte) in favor of certain shareholders in
theCompany’s articles of association), the distribution of
dividendsor any proposed capital increase.
B.7 Selected key historicalfinancial information.
The following selected historical financial and
operationalinformation of the Group as of and for the financial
years endedDecember 31, 2014, 2013 and 2012 (the “financial year
2014”,“financial year 2013” and “financial year 2012”,
respectively),including prior-year comparative figures (i) if
presented as“audited”, is taken from the audited consolidated
financialstatements of Hapag-Lloyd AG as of and for the financial
years2014 and 2013, and from the audited consolidated
financialstatements of Hapag-Lloyd Holding AG, the former
soleshareholder of Hapag-Lloyd AG, which was merged into
Hapag-Lloyd AG by way of a downstream merger with
retroactiveeconomic effect as of January 1, 2013, as of and for the
financialyear 2012 (together, the “Audited Consolidated
FinancialStatements”) and, (ii) if presented as “unaudited”, either
derivedfrom our Audited Consolidated Financial Statements, or taken
orderived from our Unaudited Interim Condensed
ConsolidatedFinancial Statements (as defined below) or from our
accountingrecords or management reporting. The Audited
ConsolidatedFinancial Statements were prepared by the Company
inaccordance with the International Financial Reporting
Standards,as adopted by the European Union (“IFRS”), and the
additionalrequirements of German Commercial law pursuant toSection
315a of the German Commercial Code(Handelsgesetzbuch; HGB).
The following selected financial and operational information of
theGroup as of and for the six months ended June 30, 2015 and 2014
istaken or derived from the Company’s Unaudited Interim
CondensedConsolidated Financial Statements as of and for the six
monthsended June 30, 2015 (including comparative figures for the
sixmonths ended June 30, 2014) (the “Unaudited Interim
CondensedConsolidated Financial Statements”), our accounting
records orour management reporting. The Unaudited Interim
CondensedConsolidated Financial Statements were prepared by the
Companyin accordance with the International Accounting Standard
(“IAS”)34: Interim Financial Reporting. Additional financial
informationincluded in this prospectus has been taken from our
auditedunconsolidated financial statements as of and for the
financial yearended December 31, 2014 (the “Audited
UnconsolidatedFinancial Statements”), which were prepared in
accordance withthe German Commercial Code.
The CCS Activities are included in the figures for the
financialyear 2014 from the date of the consolidation, December 2,
2014,onwards and are therefore only included in the figures for
themonth of December.
The Audited Consolidated Financial Statements and the
AuditedUnconsolidated Financial Statements were audited by
KPMGAktiengesellschaft Wirtschaftsprüfungsgesellschaft,
Ludwig-Erhard-Straße 11-17, 20459 Hamburg, Germany (“KPMG”),
whoissued in each case an unqualified auditor’s
report(uneingeschränkter Bestätigungsvermerk) thereon as included
in
8
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this prospectus. The audits of the Audited Consolidated
FinancialStatements for each of the financial years 2014, 2013 and
2012,and the Audited Unconsolidated Financial Statements
wereconducted in accordance with Section 317 of the
GermanCommercial Code and German generally accepted standards
forthe audit of financial statements of the Institute of Public
Auditorsin Germany (Institut der Wirtschaftsprüfer in Deutschland
e.V.).
All of the financial data presented in the text and the tables
beloware shown in millions of Euro (in € million), except as
otherwisestated. Certain financial data (including percentages) in
thefollowing tables have been rounded according to
establishedcommercial standards, whereby aggregate amounts (sum
totals,sub-totals, differences or amounts put in relation) are
calculatedbased on the underlying unrounded amounts. As a result,
theaggregate amounts in the following tables may not correspond
inall cases to the corresponding aggregated amounts of
theunderlying (unrounded) figures appearing elsewhere in
thisprospectus. Furthermore, in those tables, these rounded
figuresmay not add up exactly to the totals. Financial data
presented inparentheses denotes the negative of such number
presented. Inrespect of financial data set out in this prospectus,
a dash (“–”)signifies that the relevant figure is not available,
while a zero(“0.0”) signifies that the relevant figure is available
but has beenrounded to or equals zero.
Following the integration of the CCS Activities, the allocation
oftrades has been restructured in the six months ended June 30,2015
to align it with our main markets post-BusinessCombination. Six
separate trades are now reported: Atlantic(trades between Europe
and North America), Transpacific (tradesbetween North America and
Asia), Far East (trades betweenEurope and Asia), Latin America
(trades related to LatinAmerica), Intra-Asia (formerly part of the
Australasia trade) andEMAO, which comprises the Intra-Europe trades
and tradesrelated to Africa and Oceania previously included in
theAustralasia and Far East trades. In the six months ended June
30,2014, transport volumes and average freight rates
wereretroactively adjusted to this new trade structure.
Selected Financial Information from the Consolidated Income
StatementFor the financial year ended
December 31,For the six months
ended June 30,
2012 2013 2014(*) 2014 2015
(in € million)
(audited) (unaudited)Revenue . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . 6,843.7 6,567.4
6,807.5 3,213.7 4,669.0Other operating income . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 265.4 156.3 116.8 26.3
103.6Transport expenses(1) . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . 6,182.3 5,773.1 6,060.1 2,874.9
3,791.9Personnel expenses . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . 359.7 365.2 403.3 184.5
253.8Depreciation, amortization and impairment of intangible
assets
and property, plant and equipment . . . . . . . . . . . . . . .
. . . . . . 332.0 325.4 481.7 168.7 225.6Other operating expenses .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267.3
251.7 393.3 128.5 243.5Operating result . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . (32.2) 8.3 (414.1)
(116.6) 257.8Share of profit of equity accounted investees . . . .
. . . . . . . . . . . 31.9 36.8 34.2 17.4 13.7Other financial
results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 2.8 18.6 (2.9) (2.3) (3.8)Earnings before interest and income
taxes (EBIT) . . . . . . . . 2.5 63.7 (382.8) (101.5) 267.7Interest
result . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . (126.9) (153.6) (209.7) (68.8) (99.2)Earnings
before income taxes . . . . . . . . . . . . . . . . . . . . . . . .
. . (124.4) (89.9) (592.5) (170.3) 168.5Income taxes . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.9 7.5 11.2 3.0 11.3Profit/loss . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . (128.3) (97.4)
(603.7) (173.3) 157.2
9
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Selected Financial Information from the Consolidated Balance
SheetAs of December 31, As of June 30,
2012 2013 2014 2014 2015
(in € million)(audited) (unaudited)
AssetsGoodwill . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 693.9 664.6 1,375.6 670.3
1,495.6Other intangible assets . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 619.5 529.7 1,309.7 506.9 1,385.9Property,
plant and equipment . . . . . . . . . . . . . . . . . . . . . . . .
3,785.6 4,067.6 5,176.0 4,178.1 5,882.0Investments in
equity-accounted investees . . . . . . . . . . . . . . . 329.9
332.8 384.9 316.3 370.1Other assets . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . 25.7 7.9 13.1 8.1
12.2Derivative financial instruments . . . . . . . . . . . . . . .
. . . . . . . . 32.5 74.5 15.8 85.3 27.2Deferred tax assets . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.1 12.6
27.9 13.1 26.8Non-current assets . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 5,502.2 5,689.7 8,303.0 5,778.1
9,199.8Inventories . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 178.3 168.9 152.1 178.0 156.3Trade
accounts receivable . . . . . . . . . . . . . . . . . . . . . . . .
. . . . 449.5 473.3 716.0 532.4 704.3Other assets . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110.4
106.8 134.3 94.9 129.4Derivative financial instruments . . . . . .
. . . . . . . . . . . . . . . . . 37.0 25.1 3.8 8.5 0.4Income tax
receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 13.1 21.2 28.6 25.2 36.9Cash and cash equivalents . . . . . .
. . . . . . . . . . . . . . . . . . . . . . 560.8 464.8 711.4 427.6
594.9Non-current assets held for sale . . . . . . . . . . . . . . .
. . . . . . . . — — 59.2 3.2 2.4Current assets . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . 1,349.1 1,260.1
1,805.4 1,269.8 1,624.6Total assets . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . 6,851.3 6,949.8
10,108.4 7,047.9 10,824.4Equity and liabilitiesSubscribed capital .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
66.1 66.1 104.9 66.1 104.9Capital reserves . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . 3,269.8 935.3
1,651.9 935.3 1,651.9Retained earnings . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . (190.4) 2,045.8 2,286.1
1,871.9 2,442.1Cumulative other equity . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . (32.3) (134.8) 121.4 (141.1)
478.5Equity attributable to the shareholders of Hapag-Lloyd
AG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 3,113.2 2,912.4 4,164.3 2,732.2
4,677.4Non-controlling interests . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 0.8 2.7 5.3 2.4 4.5Equity . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,114.0 2,915.1 4,169.6 2,734.6 4,681.9Provisions for pensions and
similar obligations . . . . . . . . . . . 151.8 142.4 208.4 168.5
192.7Other provisions . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 87.5 41.7 207.0 34.8 193.2Income tax
liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . — — — — 0.2Financial debt . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 2,048.9 2,460.1 3,309.1
2,625.7 3,478.4Trade accounts payable . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . — — 0.5 — 0.3Other liabilities . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.4 5.2 6.7 3.9 5.6Derivative financial instruments . . . . . . . .
. . . . . . . . . . . . . . . 6.0 6.7 — 5.2 —Deferred tax
liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 1.6 1.0 1.5 1.4 3.6Non-current liabilities . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 2,301.2 2,657.1 3,733.2
2,839.5 3,874.0Provisions for pensions and similar obligations . .
. . . . . . . . . 3.7 4.4 6.5 4.4 5.2Other provisions . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . 119.5 91.3
385.4 91.7 301.3Income tax liabilities . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . 4.4 7.4 18.3 6.8 12.9Financial
debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . 323.0 474.9 408.0 422.1 475.3Trade accounts payable . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . 886.4 700.3
1,232.3 845.7 1,292.5Other liabilities . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . 99.1 99.3 131.3 103.0
143.9Derivative financial instruments . . . . . . . . . . . . . . .
. . . . . . . . — — 23.8 0.1 37.4Current liabilities . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . 1,436.1 1,377.6
2,205.6 1,473.8 2,268.5Total equity and liabilities . . . . . . . .
. . . . . . . . . . . . . . . . . . 6,851.3 6,949.8 10,108.4
7,047.9 10,824.4
10
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Selected Financial Information from the Consolidated Cash Flow
StatementFor the financial year ended
December 31,For the six months
ended June 30,
2012 2013 2014(*) 2014 2015
(in € million)(audited) (unaudited)
Cash and cash equivalents at the beginning of period . . . .
672.5 560.8 464.8 464.8 711.4Cash inflow/(outflow) from operating
activities . . . . . . . . . . . 132.6 66.5 377.2 73.3 324.1Cash
(outflow) from investing activities . . . . . . . . . . . . . . . .
. (272.6) (544.7) (257.6) (104.6) (331.6)Cash inflow/(outflow) from
financing activities . . . . . . . . . . . 39.7 403.2 81.6 (3.7)
(171.0)Net change in cash and cash equivalents . . . . . . . . . .
. . . . . (100.3) (75.0) 201.2 (35.0) (178.5)Cash and cash
equivalents at the end of period(2) . . . . . . . . 560.8 464.8
711.4 427.6 594.9
Selected Other Key Financial and Operational Information
The following tables show selected other key financial and
operational information. Some of thefollowing figures (including
EBITDA) are presented as financial measures and adjustments that
are notpresented in accordance with IFRS, or any other
internationally accepted accounting principles.
Selected Other Key Financial Information
As of and for the financial yearended December 31,
As of and for thesix months
ended June 30,
2012 2013 2014(*) 2014 2015
(in € million)(audited, except as noted) (unaudited)
EBITDA (unaudited)(3) . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . 334.5 389.1 98.9 67.2 493.3EBIT . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. 2.5 63.7 (382.8) (101.5) 267.7Net debt (unaudited)(4) . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . 1,811.1 2,470.2
3,005.7 2,620.2 3,358.8Working capital (unaudited)(5) . . . . . . .
. . . . . . . . . . . . . . . . . (258.6) (58.1) (364.7) (135.3)
(432.2)
Selected Key Operational Information
As of and for the financial yearended December 31,
As of and for thesix months
ended June 30,
2012 2013 2014(*) 2014 2015
(unaudited) (unaudited)
Volumes transported (1,000 TEU)(6) . . . . . . . . . . . . . . .
. . . . . 5,255 5,496 5,907 2,873 3,719Total fleet capacity (1,000
TEU)(7) . . . . . . . . . . . . . . . . . . . . . 670 729 1,009 777
989Number of Vessels(7) . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 144 151 191 154 188Container fleet (1,000 TEU)
. . . . . . . . . . . . . . . . . . . . . . . . . . 1,047 1,072
1,619 1,140 1,607Freight rate (US$/TEU)(8) . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 1,581 1,482 1,434 1,424 1,296
(*) The CCS Activities are included in the figures for the
financial year 2014 from the date of the consolidation,December 2,
2014, onwards and are therefore only included in the figures for
the month of December.
(1) The following table presents a detailed breakdown of our
transport expenses for the periods indicated:
For the financial year endedDecember 31,
For the six monthsended June 30,
2012 2013 2014 2014 2015
(in € million)(audited) (unaudited)
Cost of raw materials, supplies, and purchased goods . . . . . .
. . . . . . . . 1,638.7 1,436.6 1,362.3 675.9 587.6Cost of
purchased services . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 4,543.6 4,336.5 4,697.8 2,199.0
3,204.3Thereof:Port, canal and terminal costs . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . 1,834.9 1,831.1 2,030.4 963.2
1,427.2Container transport costs . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 1,826.0 1,691.4 1,841.4 863.8
1,142.0Chartering, leases and container rentals . . . . . . . . . .
. . . . . . . . . . . . 718.8 653.3 693.5 301.5 551.3Maintenance
and repair and other costs . . . . . . . . . . . . . . . . . . . .
. . 163.9 160.7 132.5 70.5 83.8
Transport expenses . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 6,182.3 5,773.1 6,060.1 2,874.9
3,791.9
11
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(2) Cash and cash equivalents at the end of the period include
exchange rate differences as shown in the detailed cash
flowstatement in “Management’s Discussion and Analysis of Financial
Conditions and Results of Operations-Liquidity andCapital
Resources-Cash Flow.”
(3) We define EBITDA as profit/loss for the period before income
taxes, interest result and amortization, depreciation
andimpairment. EBITDA is not a measurement of performance under
IFRS and should not be considered as an alternative to(a) profit
for the period (as determined in accordance with IFRS) as a measure
of our operating performance, (b) cash flowsfrom operating
investing and financing activities as a measure of our ability to
meet our cash needs or (c) any othermeasures of performance under
IFRS. We believe that EBITDA is a useful indicator of our ability
to incur and service ourindebtedness and can assist analysts,
investors and other parties to evaluate the Hapag-Lloyd Group.
EBITDA and similarmeasures are used by different companies for
differing purposes and are often calculated in ways that reflect
thecircumstances of those companies. Investors should exercise
caution in comparing our EBITDA to EBITDA of othercompanies.
The following table reconciles profit/ (loss) for the period to
EBITDA as defined by Hapag-Lloyd for the periods indicated:
For the financial year endedDecember 31,
For the six monthsended June 30,
2012 2013 2014 2014 2015
(in € million)(audited, except as noted) (unaudited)
Profit/(loss) . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . (128.3) (97.4) (603.7)
(173.3) 157.2Income taxes . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . 3.9 7.5 11.2 3.0
11.3Interest results . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 126.9 153.6 209.7 68.8
99.2Earnings before interest and income taxes (EBIT) . . . . . . .
. . . . . . . 2.5 63.7 (382.8) (101.5) 267.7Amortization,
depreciation and impairment . . . . . . . . . . . . . . . . . . . .
. 332.0 325.4 481.7 168.7 225.6EBITDA (unaudited) . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 334.5
389.1 98.9 67.2 493.3
(4) We define net debt as total financial debt less cash and
cash equivalents. The following table shows the reconciliation of
netdebt:
As of December 31, As of June 30,
2012 2013 2014 2014 2015
(in € million)(audited, except as noted) (unaudited)
Total financial debt . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . 2,371.9 2,935.0 3,717.1 3,047.8
3,953.7Cash and cash equivalents . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . 560.8 464.8 711.4 427.6
594.9Net debt (unaudited) . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 1,811.1 2,470.2 3,005.7 2,620.2
3,358.8
(5) Working capital is unaudited and we calculate it as
inventories plus trade accounts receivable less trade accounts
payable(which are presented as negative values to illustrate the
calculation in the table below). Working capital is not
ameasurement of performance under IFRS. We believe that working
capital is a useful indicator of our ability to incur andservice
our indebtedness and can assist analysts, investors and other
parties to evaluate the Hapag-Lloyd Group. Workingcapital and
similar measures are used by different companies for differing
purposes and are often calculated in ways thatreflect the
circumstances of those companies. Investors should exercise caution
in comparing our working capital to workingcapital of other
companies.
As of December 31, As of June 30,
2012 2013 2014 2014 2015
(in € million)(audited, except as noted) (unaudited)
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 178.3 168.9 152.1 178.0
156.3Trade accounts receivable . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 449.5 473.3 716.0 532.4
704.3Trade accounts payable . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . (886.4) (700.3) (1,232.8) (845.7)
(1,292.8)Working Capital (unaudited) . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . (258.6) (58.1) (364.7) (135.3)
(432.2)
(6) TEU is a 20-foot equivalent unit (referring to a standard
container with dimensions of 20-foot (6.05 m) in length x
8-foot(2.43 m) in width x 8-foot, 6-inches (2.59 m) in height), the
standard unit of measurement of volume used in the
containershipping industry.
(7) As of December 31, 2012, five vessels that we own and had
chartered out to another carrier are included (38,773 TEU),
onevessel as of December 31, 2013 (7,506 TEU), three vessels as of
December 31, 2014 (20,156 TEU), and one vessel as ofJune 30, 2014
(7,506 TEU) and two vessels as of June 30, 2015 (11,826 TEU).
(8) The charged average freight rates per trade lane are
weighted with their respective transport volumes per trade lane
(TEU),the freight rate reflects the charged price to a customer for
a transport of a 20-foot equivalent unit (TEU). The average of
thetwelve–month and six-month periods is derived from the weighted
monthly amounts.
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Significant changes to theissuer’s financial conditionand
operating results.
The following significant changes in our financial condition
andour operating results occurred in the six months ended June
30,2015 and 2014 and in the financial years 2014, 2013 and 2012.The
financial information presented below is audited with theexception
of the financial information taken or derived from theUnaudited
Interim Condensed Consolidated Financial Statements.
Operating Results
Six months ended June 30, 2015 and 2014
Revenue increased by 45.3% to €4,669.0 million in the six
monthsended June 30, 2015 from €3,213.7 million in the six
monthsended June 30, 2014. This increase in revenue was
largelyattributable to the inclusion of the revenue from the
acquiredCCS Activities as well as the considerably stronger
averageUSD exchange rate compared to prior year. Transport
Volumeincreased from 2,873,257 TEU in the six months ended June
30,2014 to 3,718,585 TEU in the six months ended June 30, 2015,
a29.4% rise. During the same period, our average freight
ratedecreased by 9.0% from US$1,424 per TEU in the six monthsended
June 30, 2014 to US$1,296 per TEU in the six monthsended June 30,
2015, mainly due to the initial inclusion ofCCS Activities, which
have a lower freight rate level overall. Theongoing difficulties in
the market environment also had an impacton our freight rates.
The positive effect from the increase in transport volume
waspartially offset by the lower freight rates, in particular on
the FarEast trade. Expressed in U.S. dollars, revenue increased by
18.3%to US$5,213.4 million in the six months ended June 30, 2015
fromUS$4,405.7 million in the six months ended June 30, 2014.
Transport volume in the Atlantic trade increased by 7.4%
to774,956 TEU in the six months ended June 30, 2015 from 721,559TEU
in the six months ended June 30, 2014, due to a rise intransport
volume on the Europe-North America trade arising fromthe current
strength of the US dollar compared to the euro. As aresult of a
freight rate decline on the Europe-North America trade,our average
freight rates dropped by 4.3% to US$1,505 per TEUin the six months
ended June 30, 2015 from US$1,572 per TEU inthe six months ended
June 30, 2014.
Transport volume in the Transpacific trade increased by 2.7%
to680,109 TEU in the six months ended June 30, 2015 from 662,428TEU
in the six months ended June 30, 2014, due to a highertransport
volume on the Asia-North America trade. As a result ofcompetitive
pressure and a decline of the bunker prices, ouraverage freight
rates dropped by 2.6% to US$1,700 per TEU inthe six months ended
June 30, 2015 from US$1,745 per TEU inthe six months ended June 30,
2014.
Transport volume in the Far East trade increased by 15.9%
to656,412 TEU in the six months ended June 30, 2015 from566,420 TEU
in the six months ended June 30, 2014, due to theinclusion of the
CCS Activities. However, mainly attributable to asoftening economic
environment this increase was less thanexpected. As a result of
tremendous rate pressure arising fromintense competition and an all
time low of the Shanghai ContainerFreight Index, our average
freight rates dropped by 13.6% to
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US$1,027 per TEU in the six months ended June 30, 2015
fromUS$1,188 per TEU in the six months ended June 30, 2014.
Transport volume in the Latin America trade increased by
125.9%to 1,147,441 TEU in the six months ended June 30, 2015
from508,047 TEU in the six months ended June 30, 2014, due to
theinclusion of the CCS Activities, partially offset by a
weakeconomic development in the Europe-South America trade,
ouraverage freight rates dropped by 10.0% to US$1,220 per TEU inthe
six months ended June 30, 2015 from US$1,355 per TEU inthe six
months ended June 30, 2014.
Transport volume in the Intra-Asia trade increased by 21.4%
to280,319 TEU in the six months ended June 30, 2015 from 230,894TEU
in the six months ended June 30, 2014, due to the inclusionof the
CCS Activities, partially offset by a weak economic growthin China.
As a result of intense competition, our average freightrates
dropped by 9.2% to US$709 per TEU in the six monthsended June 30,
2015 from US$781 per TEU in the six monthsended June 30, 2014.
Transport volume in the EMAO trade decreased by 2.5% to179,348
TEU in the six months ended June 30, 2015 from 183,909TEU in the
six months ended June 30, 2014, mainly due to a lowertransport
volume on the Intra-Europe trade. As a result of thestrength of the
US dollar compared to the Euro dollar and strongcompetitive
pressure, our average freight rates dropped by 12% toUS$1,244 per
TEU in the six months ended June 30, 2015 fromUS$1,413 per TEU in
the six months ended June 30, 2014.
Financial Years 2014 and 2013
Revenue in the financial year ended December 31, 2014
increasedby €240.1 million or 3.7% to a total of €6,807.5 million
(previousyear: €6,567.4 million). In addition to the inclusion of
the revenuefrom the CCS Activities for the month of December,
thedevelopment of revenue was affected by a 4.8% increase
intransport volume to 5,756,945 TEU (including the CCS Activitiesby
a further 2.7% to a 7.5% increase to 5,906,686 TEU), whichwas
partly offset by a decline in the average freight rates
toUS$1,434/TEU (a decrease of 3.2% compared to US$1,482 perTEU in
2013), due to strong competition in all trades. The averagefreight
rate for the acquired CCS Activities in December 2014was US$1,154
per TEU.
Transport volume in the Atlantic trade increased by 5.6%
to1,272,000 TEU in the financial year ended December 31, 2014from
1,204,541 TEU in the financial year ended December 31,2013 due to
increased volumes of machinery, plastic and beveragecargo. As a
result of competitive pressure and a changed cargomix, our average
freight rate decreased by 2.7% to US$1,634 perTEU in the financial
year ended December 31, 2014 fromUS$1,679 per TEU in the financial
year ended December 31,2013.
Transport volume in the Far East trade increased by 8.6%
to1,353,825 TEU in the financial year ended December 31, 2014from
1,246,466 TEU in the financial year ended December 31,2013, due to
an increase in wood, plastic and furniture transports.As a result
of high pricing pressure, our average freight rate
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decreased by 6.1% to US$1,162 per TEU in the financial yearended
December 31, 2014 from US$1,237 per TEU in thefinancial year ended
December 31, 2013.
Transport volume in the Latin America trade increased by 4.7%
to1,226,477 TEU in the financial year ended December 31, 2014from
1,171,580 TEU in the financial year ended December 31,2013,
especially due to increased raw material, scrap metal andfruit
transports on the Latin America outbound services. Ouraverage
freight rate decreased by 1.8% to US$1,365 per TEU inthe financial
year ended December 31, 2014 from US$1,390 perTEU in the financial
year ended December 31, 2013.
Transport volume in the Transpacific trade increased slightly
by0.3% to 1,248,867 TEU in the financial year ended December
31,2014 from 1,244,579 TEU in the financial year endedDecember 31,
2013, mainly due to higher volumes of machineryand vehicle parts on
the routes from Asia to North America. Ouraverage freight rate
decreased slightly by 0.4% to US$1,740 perTEU in the financial year
ended December 31, 2014 fromUS$1,747 per TEU in the financial year
ended December 31,2013.
Transport volume in the Australasia trade increased by 4.3%
to655,776 TEU in the financial year ended December 31, 2014
from628,612 TEU in the financial year ended December 31, 2013,
dueto increased plastic, vehicle parts and metal goods transports.
Ouraverage freight rate decreased by 6.7% to US$1,153 per TEU inthe
financial year ended December 31, 2014 from US$1,236 perTEU in the
financial year ended December 31, 2013 due to
intensecompetition.
Financial Years 2013 and 2012
Revenue decreased by €276.3 million, or 4.0%, to€6,567.4 million
in the financial year ended December 31, 2013from €6,843.7 million
in the financial year ended December 31,2012. This decrease in
revenue was primarily attributable to anegative impact from
exchange rate effects. Adjusted forexchange rate fluctuations,
revenue was at almost the same levelas in the prior year
period.
Transport volume increased from 5,254,753 TEU in the
financialyear ended December 31, 2012 to 5,495,778 TEU in the
financialyear ended December 31, 2013 which represents a 4.6% rise
intransport volume. This rise is mainly due to an increase
intransport volume in the Far East and Atlantic trades. During
thesame period, our average freight rate decreased by 6.3%
fromUS$1,581 per TEU in the financial year 2012 to US$1,482 perTEU
in the financial year ended December 31, 2013, mainlyreflecting the
continued competitive pressures in all our trades.
The increase in transport volume and the decrease in
averagefreight rates were accompanied by unfavorable exchange
rateeffects. Expressed in U.S. dollars, revenue decreased by 0.9%
toUS$8,724.1 million in the financial year ended December 31,2013
from US$8,802.4 million in the financial year endedDecember 31,
2012.
Transport volume in the Far East trade increased by 9.0%
to1,246,466 TEU in the financial year ended December 31, 2013
15
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from 1,143,386 TEU in the financial year ended December 31,2012.
This increase affected both westbound and eastboundroutes,
especially the cargo volume of furniture, vehicle parts andwood
rose. The average freight rate decreased by 7.9% toUS$1,237 per TEU
in the financial year ended December 31, 2013from US$1,343 per TEU
in the financial year ended December 31,2012.
Transport volume in the Transpacific trade increased by 3.8%
to1,244,579 TEU in the financial year ended December 31, 2013from
1,199,078 TEU in the financial year ended December 31,2012, mainly
due to increased volumes of waste paper, vehicleparts and
machinery. Our average freight rate decreased by 8.7%to US$1,747
per TEU in the financial year ended December 31,2013 from US$1,913
per TEU in the financial year endedDecember 31, 2012.
Transport volume in the Atlantic trade increased by 6.0%
to1,204,541 TEU in the financial year ended December 31, 2013from
1,136,331 TEU in the financial year ended December 31,2012, mainly
due to increased volumes of wood, iron andfoodstuff. Our average
freight rate decreased by 4.0% toUS$1,679 per TEU in the financial
year ended December 31, 2013from US$1,748 per TEU in the financial
year ended December 31,2012.
Transport volume in the Latin America trade remained stable
at1,171,580 TEU in the financial year ended December 31,
2013compared to 1,170,730 TEU in the financial year endedDecember
31, 2012. Our average freight rate decreased by 3.8% toUS$1,390 per
TEU in the financial year ended December 31, 2013from US$1,444 per
TEU in the financial year ended December 31,2012.
Transport volume in the Australasia trade increased by 3.9%
to628,612 TEU in the financial year ended December 31, 2013
from605,228 TEU in the financial year ended December 31,
2012.Particularly transport volumes of plastic, vehicle parts and
wastepaper on the Oceanic outbound and the Intra-Asia routes
grew.Our average freight rate decreased by 6.8% to US$1,236 per
TEUin the financial year ended December 31, 2013 from US$1,326
perTEU in the financial year ended December 31, 2012.
Financial condition
The following financial information is taken or derived from
ourAudited Consolidated Financial Statements for the financial
yearsended December 31, 2014, 2013 and 2012 with exception of
thefigures which are taken from our Unaudited Interim
CondensedConsolidated Financial Statements as of and for the six
monthsended June 30, 2015 and 2014.
Equity increased from €4,169.6 million in the financial year
endedDecember 31, 2014 to €4,681.9 million in the six months
endedJune 30, 2015, mainly due to the balance of unrealized gains
andlosses from currency translation recognized in
othercomprehensive income amounting to €336.4 million, our profit
of€157.2 million, as well as the change in the reserve for
theremeasurement of defined pension plans.
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Equity increased from €2,915.1 million in the financial year
endedDecember 31, 2013 to €4,169.6 million in the financial year
endedDecember 31, 2014, mainly driven by an increase in
capitalreserves, which amounted to €1,651.9 million in the
financial yearended December 31, 2014 compared to €935.3 million in
thefinancial year ended December 31, 2013, primarily generated
bymeans of a contribution-in-kind relating to the acquisition of
theCCS Activities and a subsequent capital increase in the amount
of€370 million on December 19, 2014.
Equity decreased from €3,114.0 million in the financial
yearended December 31, 2012 to €2,915.1 million in the financial
yearended December 31, 2013. This decline is primarily due to
thenegative net result of €97.4 million and the balance of
unrealizedgains and losses from foreign currency translation
recognized inother comprehensive income and amounting to €115.9
million.The reserve for remeasurements from defined benefit plans
had anoffsetting effect amounting to €16.1 million.
Recent developments
Following the merger and subsequent integration of the
CCSActivities, our average transport volume for the two months
endedAugust 31, 2015, increased by 2.6%, to 636 TEU per
monthcompared to the average transport volume of 620 TEU per
monthin the first six months of 2015 due to slightly increased
seasonaldemand. We experienced a decrease in our average freight
rate forthe two months ended August 31, 2015 with a decrease of
7.7% toUS$1,196/TEU compared to the average freight rate of
1,296/TEUfor the first six months of 2015 due to ongoing fierce
competitionin container shipping.
Despite the lower freight rates over the last months (compared
tothe first six months of 2015), we reached an EBITDA margin of8.5%
for the two months ended August 31, 2015. Thisprofitability was
positively supported by the continued realizationof synergies due
to the integration of the CCS Activities as wellas additional cost
savings and efficiency improvements of theoperating fleet. Average
bunker fuel prices for the eight monthsended August 31, 2015
decreased to US$339/t for the eightmonths ended August 31, 2015
compared to US$592/t for theeight months ended August 31, 2014.
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The table below sets forth certain unaudited financial
andoperational information for the first six months ended June
30,2015, the two months ended August 31, 2015 and the eightmonths
ended August 31, 2015.
As of and forthe six
months endedJune 30, 2015
As of and forthe two
months endedAugust 31,
2015
As of and forthe eight
months endedAugust 31,
2015
(in € million, except where otherwise noted)(unaudited)
Volumes transported (1,000TEU)(1) . . . . . . . . . . . . . . .
. . . . . . . 3,719 1,272 4,991
Freight rate (US$/TEU)(2) . . . . . . . . . 1,296 1,196
1,270Revenue . . . . . . . . . . . . . . . . . . . . . . . 4,669.0
1,464.7 6,133.7EBITDA(3) . . . . . . . . . . . . . . . . . . . . .
493.3 125.2 618.5EBITDA margin . . . . . . . . . . . . . . . .
10.6% 8.5% 10.1%EBIT . . . . . . . . . . . . . . . . . . . . . . .
. . 267.7 47.0 314.7EBIT margin . . . . . . . . . . . . . . . . . .
. 5.7% 3.2% 5.1%Group profit/loss . . . . . . . . . . . . . . . .
157.2 2,1 159.3Cash and cash equivalents(4)(6) . . . . . . 594.9
589.2 589.2Equity . . . . . . . . . . . . . . . . . . . . . . . . .
4,681.9 4,666.2 4,666.2Net debt(5)(6) . . . . . . . . . . . . . . .
. . . . . 3,358.8 3,391.3 3,391.3
(1) For the calculation of volumes transported, please refer to
footnote 6 underB.7 “Selected key historical financial
information—Selected Key Financialand Operational
Information—Selected Key Operational Information.”
(2) For the calculation of our average freight rates, please
refer to footnotes 6 and8 under B.7 “Selected key historical
financial information—Selected KeyFinancial and Operational
Information—Selected Key OperationalInformation.”
(3) For the definition and calculation of EBITDA please see
footnote 3 under B.7“Selected key historical financial
information—Selected Key Financial andOperational
Information—Selected Other Key Financial Information”.
(4) Apart from Cash and cash equivalents we have undrawn credit
lines in theamount of €342.8 million as of August 31, 2015, so that
the liquidity reserveamounts to €932.0 million as of this date.
(5) For the definition and calculation of net debt, please refer
to footnote 4 underB.7 “Selected key historical financial
information-Selected Key Financial andOperational
Information-Selected Other Key Financial Information.”
(6) Amounts at the end of the respective period.
The foregoing information is based on the Company’s
unauditedconsolidated monthly accounts as of and for the two months
andeight months ended August 31, 2015, respectively. Based on
ourcurrent operating performance as well as the ongoing
realizationof synergies achieved through the integration of the
CCSActivities and the cost improvements generated through
efficiencyenhancement measures, we expect an improvement of our
EBITand EBITDA for the three months ended September 30, 2015
ascompared to previous year levels. The unaudited interimcondensed
consolidated financial statements for the nine monthsended
September 30, 2015 have not been finalized and the resultsmight be
impacted by closing effects in the preparation of theconsolidation.
In addition, our business is cyclical in nature anddepends on
factors beyond our control. These factors include thebalance
between demand for container shipping services and thesupply of
vessel and container capacity, bunker fuel prices andcurrency
exchange rate movements. The foregoing informationhas not been
audited or reviewed by our independent auditorsKPMG and should not
be regarded as an indication, forecast or
18
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representation by us or any other person regarding our
financialperformance for the nine months ended September 30, 2015
or thefinancial year 2015.
Deutsche Bank Luxembourg S.A., Goldman Sachs Bank USA andJoh.
Berenberg, Gossler & Co. KG amongst others, as lenders,have
agreed with Hapag-Lloyd to make available to Hapag-LloydAG, as
borrower, an unsecured revolving credit facility in thetotal amount
of up to US$125,000,000 for general corporatepurposes, except for
the acquisition of companies or businesses(the “Unsecured Revolving
Credit Facility”). This agreement isintended to be executed mid
October 2015. The UnsecuredRevolving Credit Facility will not be
available for drawdown andautomatically cancelled on July 1, 2016
if the flotation ofHapag-Lloyd has not occurred on or before June
30, 2016.
In accordance with certain sale and lease back
arrangementsrelating to the vessels named Montréal Express and
TorontoExpress providing for a purchase option in relation to the
leasedvessels, Hapag-Lloyd as lessee and HSH N Nordic Finance
OceanNo. 1 AB as lessor, Hapag-Lloyd purchased the relevant
vesselson the respective termination date of the relevant lease
agreementin September 2015 (with retroactive economic effect as
ofJanuary 1, 2012). The purchase prices in connection with
thebuyback of such vessels are financed by an
initialUS$33,468,750.17 and US$33,468,750.17 and
US$16,093,923.59term loan agreement originally dated February 21,
2012 with,amongst others, Hapag-Lloyd as borrower, and HSH
NordbankAG as lender.
B.8 Select