A.P. Moller - Maersk A/S Class A · OMXCOP:MAERSK_A
A.P. Moller - Maersk A/S Class A — A.P. Møller - Mærsk — Den Danske Finansanalytikerforening's virksomhedsdag 2012
23 slides from A.P. Moller - Maersk A/S Class A's conference presentation, Jun 7, 2012
Slide 1: A.P. Møller - Mærsk A/S
A.P. Møller - Mærsk A/S Den Danske Finansanalytikerforening’s virksomhedsdag 2012 7 June 2012
Slide 2: Forward-looking statements
| page 2 Forward-looking statements This presentation contains forward-looking statements. Such statements are subject to risks and uncertainties as various factors, many of which are beyond A.P. Møller - Mærsk A/S’ control, may cause actual development and results to differ materially from the expe
Slide 3: Today's agenda
| page 3 Today’s agenda: Setting the stage Group strategy, ambitions and financial performance Challenges for and responses from Maersk Line Maersk Oil APM Terminals Maersk Drilling
Slide 4: Maersk Oil's share of production is guided around 265,000 boepd
| page 4 The A.P. Moller - Maersk Group offers investors exposure to the global logistics chain and the oil cycle. Maersk Line carries 15% of all seaborne containers and, together with APM Terminals and Damco, provides infrastructure for globalisation. Maersk Oil’s share of production is guided arou
Slide 5: Five year Group aspiration
| page 5 Five year Group aspiration We will … uphold and strengthen our name by delivering excellent performance towards our customers and partners; comply with the financial ratios required of a strong investment grade rated company – over the cycle; invest in profitable growth with the objec
Slide 6: Business unit ambitions
| page 6 Business unit ambitions Maersk Line’s financial target is to build a 5% margin advantage relative to the industry through customer focus and economies of scale Maersk Oil is building and developing the portfolio of discoveries with the aim of meeting a 400,000 boepd aspiration APM Ter
Slide 7: Strategic decision to focus capex on four business units
| page 7 Strategic decision to focus capex on four business units Strategic investments Maersk Line Dansk Supermarked Maersk Line Danske Bank Safmarine Other 14% Split of invested capital 35% MCC Revenue USD 12.1bn Revenue USD 25.1bn CFFO USD 0.5bn CFFO USD 0.9bn Assets managed for value Maersk Oil
Slide 8: The Group's capex commitments to ensure growth
| page 8 The Group’s capex commitments to ensure growth End Q1 2012, the Group’s order book is approximately 60 new ships, rigs, and tugboats etc. for delivery over the next 3-4 years for a contract price of approximately USD 7.6bn Committed investments for Terminals of USD 2.6bn and USD 3.3bn f
Slide 9: Financial performance – historical return on invested capital
Financial performance – | page 9 historical return on invested capital Group ROIC annually 2005-2011 Breakdown of ROIC by business 18% Business Invested ROIC % ROIC % 15.9% capital 2011 2010 16% USDm 14% A.P. Moller – Maersk Group 51,753 8.3 12.2 12.2% 12% Maersk Line 18,502 -3.4 15.3 10.1% 10.1% 9.
Slide 10: Maersk Line: the world's largest liner
| page 10 Maersk Line: the world’s largest liner Highlights 15% global market share Strongholds: Asia-Europe Africa and other developing markets Reefer trades Maersk Line has built a track record for being innovative with regards to ship designs, service concepts, and fuel efficiency (sl
Slide 11: Maersk Line's challenge and response
| page 11 Maersk Line’s challenge and response Maersk Line announced a general rate increase Spot market container freight rate China - Europe on Asia-Europe effective from March – almost fully accepted USD/TEU 2,000 9% reduction in capacity was implemented by Q2 to date average =1,801 reduction
Slide 12: Maersk Oil's challenge and response
| page 12 Maersk Oil’s challenge and response Production decline Maersk Oil’s share of production will decline in 2012 and 2013, stabilise in 2014, and thereafter grow towards a 400,000 boepd ambition Maersk Oil’s share of production 000’ boed 500 450 400 350 300 250 200 150 100 50 0 2001 2002 2
Slide 13: Exploration efforts have increased significantly
| page 13 Exploration efforts have increased significantly Maersk Oil’s exploration costs USDm >USD 1bn 990 831 676 605 404 229 2006 2007 2008 2009 2010 2011 2012e All exploration costs are expensed until the field development plan has been sanctioned by the Board
Slide 14: Maersk Oil's portfolio of sanctioned fields and discoveries
| page 14 The road towards 400,000 boepd; Maersk Oil’s portfolio of sanctioned fields and discoveries Maersk Oil’s pipeline of major field developments Field (Country) Planned Equity Share of production share production start Dunga (Kazakhstan) 2012 60% 15,000 boepd El Merk (Algeria) 2012 ~11% 15,00
Slide 15: APM Terminals has underlying ROIC of 13%
| page 15 APM Terminals has underlying ROIC of 13% Highlights Third largest port operator with 6% global market share Global port, terminal, and inland services network in 63 countries including interest in more than 55 container terminals New or expansion projects in the pipeline including:
Slide 16: APM Terminals' profitable growth path
| page 16 APM Terminals’ profitable growth path Volume growth and margin development 25% 20% 15% 10% 5% 0% -5% -10% 2005 2006 2007 2008 2009 2010 2011 Q1 2012 EBITDA-margin Throughput growth Higher margins through transfer of best practice, portfolio optimisation and maturing of young terminals
Slide 17: Maersk Drilling
| page 17 Maersk Drilling Bet on oil exploration moving towards more hostile environments Focus on top-end of the market with high specification and safety standards Maersk Drilling contracted a new ultra harsh jack-up backed by a four-year contract late May Contract coverage 100% for 2012 a
Slide 18: Final remarks
| page 18 Final remarks We have set some ambitious targets which will ensure value creation for our shareholders The Group’s capex allocation focuses on four business units and the portfolio optimisation continues Maersk Line has taken initiatives to improve profitability, and further increase
Slide 19: Appendix
| page 19 #,| Appendix 2 | oo — Beg ass : / yal e ( iii | Men ALT ay p ( - — ; 4 Z Phe. x 2 MAERSK
Slide 20: Group guidance 2012
| page 20 Group guidance 2012 The A.P. Moller - Maersk Group expects a result for 2012 slightly below the level reported in 2011. Cash flow used for capital expenditure is expected to be around the same level as in 2011 while cash flow from operating activities is expected to develop in line with
Slide 21: Group Financial Highlights Q1 2012
| page 21 Group Financial Highlights Q1 2012 Group Financial Highlights Group Financial Highlights USD million Q1-11 Q1-12 2,000 Profit was USD 1,175m (USD 1,163m) 1,500 1,175 1,163 1,022 Profit excluding divestment gains and one-off 1,000 tax income was zero 500 284 - Maersk Line’s result dec
Slide 22: Consolidated financial information
| page 22 Consolidated financial information Income statement (USD million) Q1 2012 Q1 2011 Change FY 2011 Revenue 14,316 14,488 -1% 60,230 EBITDA 2,541 4,122 -38% 14,661 Depreciation, etc. 1,255 1,226 2% 5,396 Gain on sale of non-current assets, etc. net 324 60 440% 887 EBIT 1,644 2,995 -45% 10,274
Slide 23: A.P. Møller - Mærsk A and B shares
| page 23 A.P. Møller - Mærsk A and B shares A. P. Møller - Mærsk Share development Index (Jan 2012=100) Listed on Nasdaq OMXC, MAERSK-A (voting right) large cap MAERSK-B (no voting right) 150 140 Market value USD 33bn end of Q1 2012 130 120 No of shares, 4,395,600 (even split between A & B) 110 100
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