a.p. møller - mærsk...the a.p. moller - maersk group is represented in 130 countries, employing...

A.P. Møller - MærskDDF: Virksomhedsdagen, June 2013

Forward-lookingStatementsThis presentation containsforward-looking statements. Suchstatements are subject to risks anduncertainties as various factors,many of which are beyond A.P.Møller - Mærsk A/S’ control, maycause actual development andresults to differ materially from theexpectations contained in thepresentation.

– DDF Presentation 2013

Executive summeryAgenda

1. Setting the stage

2. Strategy and ambitions Maersk Line Maersk Oil APM Terminals Maersk Drilling

3. Portfolio Management

4. Financing

5. Q&A


Company profileThe A.P. Moller - Maersk Group is represented in 130 countries, employing around 121,000 people and isheadquartered in Copenhagen, Denmark. Our market cap is USD 32bn and the Group reported USD 4bnnet profit in 2012.

Facilitating global containerized tradeMaersk Line carries around 14% of all seaborne containers and, together with APM Terminals andDamco, provides infrastructure for global trade

Supporting the global demand for energyThe Group is involved with production of oil and gas and other oil related activities including drilling,offshore services, towage and transportation of crude oil and products


Strategy and ambitions

Group strategic focus

Invest in profitable growth with the objective to at

least meet the Group’s historical ROIC at 10%

over the cycle;

USD > 1bn profit contribution from each of thefour core growth units;

Continue historical trend of increasing dividends

per share supported by underlying earnings

growth;

Secure liquidity buffer and maintain a

conservative capital structure;

Comply with the financial ratios required of a

strong investment grade rated company – over

the cycle


Executing on Groupstrategy Q1 2013

Profit was USD 790m and ROIC was 8.0%

Maersk Line reduced unit costs mainly throughvessel network efficiencies and increased ratesenabled through active capacity adjustments

Maersk Oil executed on;

Two field development plans approved(Balloch, UK and Tyra SE, DK)

The El Merk field in Algeria went onstream

Entitlement production declined, whileproduction stabilised when adjusted forthe reduced share of DUC

2P reserves increased 4% in 2012

APM Terminals and Maersk Drilling are ontrack

Balance sheet prepared for future investmentsas net interest-bearing debt declined by USD1.1bn during Q1


The group is in a good position to capitalize on growth in emergingcountries - more than half of our profit comes from here ...


... which also entails risks.


Maersk Line

Strategic focus

Top quartile performer

EBIT margin 5% above peers

Growing with market and funded by itsown cash flow

Delivering stable returns above cost ofcapital

Getting value premium from customers


Maersk Line EBIT margin gap to peers

Note1: The peer group includes CMA CGM, Hapag-Lloyd, APL, Hanjin, Hyundai MM, Zim, NYK, MOL, CSCL, COSCO and OOCL. Averages are TEU-weightedNote2: CSCL, COSCO and OOCL only provide interim financials, hence their Q1/Q2 EBIT margin is based on their H1 gap and Q3/Q4 EBIT-margin is based on their H2 gap to ML.13Q1 Chinese carriers’ EBIT margin has been proxied using the average of 08H1 to 12H2 gap to MLBNote3: EBIT margins are adjusted for gains/losses on sale of assets, restructuring charges, income/loss from associates. In addition ML‟s EBIT margin is also adjusted for depreciationsto match with industry standards.Source: Internal reports, competitor financial reports

-02%

01%

05% 05%

10%

13%

05% 06%05%

07%

01%

00%

05%

03%04%

01% 01%

03%04%

07%

05%

-5%

0%

5%

10%

15%

08Q1 08Q3 09Q1 09Q3 10Q1 10Q3 11Q1 11Q3 12Q1 12Q3 13Q1

Gap to peersEBIT-margin, pp


Strategic focus

Producing >400,000 boepd

Double digit returns

Building reserves towards 10 years

production

Strong transparent organisation


Maersk Oil

Project Maturation ProcessExploration ProductionReservesResources

>100 mmboe 50-100 mmboe <50 mmboe

Bubble size indicates estimate of net resources:

Primarily oil Primarily gas Discoveries and prospects(Size of bubbles do not reflect volumes)

Colour indicates resource type:

Maersk Oil’s portfolio

Initiate &Discoveries Assess Select Define Execute Assets

Total no. of projectsper phase

110

Prospects inthe pipeline

11 40 22 13 12

Diamante

Mangesh

Mjosa

Rothesay

Bo

Xana

Blackjack

Oceanographer

Gara

Torvastad

Griffon

Mulavi

SwaraTika East

Kopervik

Rascasso Algeria

Denmark

Kazakhstan

Brazil

Qatar

Total of 110 explorationprospects and leads inthe exploration pipeline

GoldenEagle

Chissonga

Johan Sverdrup

Buckskin

Swara Tika

Courageous

Flyndre &Cawdor

Quad 9gas blow-down

Culzean

Jackdaw

AddaTyraL Cret

Wahoo

ItaipuTyra LE

Farsund

Tyra SE

Jack I

UK

Dunga III

ZidaneOckley

Valdemar WI

Jack II

FDP 2012

Uncertainty

Azul-Celeste-Turquesa

Caporolo


APM Terminals

Strategic focus

Best port operator in the world

Strong brand; at least 50% revenue

from third party customers

More attractive terminals in growth

markets

USD >1bn annual profit (NOPAT) in

2016


APM Terminals: Projects under implementation

Monrovia

Projects underimplementation

SCCT Ph 2

MV2

Aqaba Ph 2

Santos

Vado

CTW

Callao

Moin

Poti

Pipavav

Apapa Ph2

Initiation phase

Planning phase

Execution phase

Completed

Gothenburg

Lazaro Cardenas

Izmir

PTPOnne

Ningbo


Maersk Drilling

Strategic focus

Top quartile performer

Up to 30 high-end rigs mainly for

harsh environment and deep water

USD >1bn profit annual (NOPAT) in

2018


Maersk Drilling: Fleet expansion with goodcontract coverage

98%

79%

51%

41%

0%10%

20%30%

40%50%

60%70%

80%90%

100%

2013 RoY 2014 2015 2016

Contract backlog


0

5

10

15

20

25

30

2005 2006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E

# unitsMaersk Drilling fleet

Standard jack-ups High-end jack-ups Ultra harsh jack-ups

Midwater floaters Ultra deepwater floaters

10 108

11

15 16 16 16 17

22 23

Capital is focused on our core growth business

37%

14%9%7%

33%

Maersk Line Maersk Oil APM TerminalsMaersk Drilling Other

Invested capital Our portfolio strategy towards 2017

At least 75% of the invested capital iswithin the four core growth businesses

Maersk Line’s share of the Group’s investedcapital is likely to be reduced towards a25–30% range

Maersk Oil, APM Terminals and Maersk Drilling’scombined share of the invested capital will increasetowards a 45–50% range

Growing the business by 30–40%

Maersk growth strategy continues with invested capitalgrowing 1.6% compared to Q1 2012

Portfolio optimization with the four core growthbusinesses’ share of the Group’s invested capital growingto 71% from 67% a year ago

Reduction in Maersk Tankers’s fleet, the divestment ofMaersk LNG and the sale of FPSOs mainly explain thelower invested capital in the other business operations

USD 52,243m

39%

12%11%

9%

29%

USD 53,086m

Q1 2012

Q1 2013Recent portfolio development – Q1 2013


Cash flow from divestments ofUSD 10.4bn since 2007 with apre-tax gain of USD 4.4bn since2007

The Group made grossinvestments of USD 9.7bn in long-term growth in 2012, whereof 90%were focused on the four coregrowth businesses

Divestments of assets andactivities for USD 3.4bn in 2012,with Maersk LNG and FPSOMaersk Peregrino as the largesttransactions

Cash flow from divestments Divestment gains (pre-tax)

Active portfolio management

Cash flow and gains from divestments

,0

500,0

1000,0

1500,0

2000,0

2500,0

3000,0

3500,0

2007 2008 2009 2010 2011 2012


Track record for growth – the cash flow usedfor capital expenditure has been USD 39bnaccumulated for the past five years as of endof 2012

The Group has capital commitments of USD13.6bn per 31 March 2013

Capital commitments for growth

Majority of the total capital commitments ofUSD 13.6bn is heading for the four core growthbusinesses

Our growth ambitions will result in significantinvestments

Newbuilding programme 2013 2014 2015 2016> Total

(Number)

Maersk Line 5 8 7 20

Maersk Drilling 1 5 1 7

Anchor handling vessels, tugboats and standby vessels, etc 5 8 13

Total 11 21 8 40

Capital commitments 2013 2014 2015 2016> Total

USD billion

Maersk Line 1.0 1.2 0.8 3.0

Maersk Oil 3.6

APM Terminals 3.1

Maersk Drilling 1.0 1.5 0.3 2.7Anchor handling vessels, tugboats and standby vessels, etc 0.1 0.1 0.2

Other 1.0Total 2.1 2.7 1.1 13.6


Major Capex Commitments

Maersk Drilling currently hasseven rigs under construction.The orderbook includes threeultra harsh jack-up rigs and fourultra deepwater drillships. Thenew building programmerepresenting an investment ofUSD 4.5bn

Twenty Triple E vessels to bedelivered between 2013 and2015. No new orders have beenplaced after the Triple E

Maersk DrillingMaersk Line

Recently entered into anagreement to create andoperate Aegean GatewayTerminal (AGT) in Turkey. Theinitial investment for the terminalis approximately USD 400m.APM Terminals has total capitalcommitments of USD 3.1bn

APM Terminals Maersk Oil

Five major projects areapproved by the authorities andexecution is progressingtowards first production.Exploration expenses areexpected to be above USD1.0bn in 2013


11

13

16

16

37

7

12

14

269

31

8

Export Credit Agencies

Shipfinancing institutions

Bank Financing

Bonds

Committed undrawn facilities

Project Financing

2011 – 2012Percentage

1. Optimising Debt portfolio

Raised more than USD 5bn in new financing

USD 1.9bn from the NOK, EUR and SEK bond markets

Issued Group’s first SEK 2,500m (~USD 380m) 5-year bondOctober 2012

2. Increasing financial flexibility

Continued focus on diversifying funding sources

Liquidity buffer of USD 13.6bn end 2012 up from USD 11.3bn

Average debt maturity about five years

No immediate refinancing needs

3. Strong execution on planned divestments

Continued divestment of non core businesses (USD 3.4bn)

Inner cycle 2011 debt portfolio compositionTotal commitment 2012 USD 30bn

Debt and funding

1.4

1.20.3 0.1

0.4

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

LNG FPSO – MaerskPeregrino

Maersk EquipmentServices (Chassis)

Xiamen China (from50% to 25%ownership)

Other

USD bn


Cash flow and debt The Group reduced its net interest-bearing debt by

USD 1.1bn in Q1 2013 to USD 13.4bn compared toend-2012

The Group’s FY12 net interest-bearing debt has beenrestated from USD 15.7bn to USD 14.5bn as a result ofnew IFRS consolidation of Joint Venture rules

USD bn

* Other includes change in debt held for sale, currency adjustments, etc.

Development in Net Interest-bearing Debt

13.4

14.5 2.9

0.1 0.6

1.4 0.2 0.2

NIBD2012

EBITDA ∆ WC Paidtaxes

CAPEX Financialitems

Other* NIBD2013 Q1


Final remarks


We intend to grow our invested capital by 30-40%

We will increase our ROIC by portfolio optimisation andbeing disciplined on capex

We are financially prepared to fund both growth andincreased dividends

Q&A

| Side 25

Page 24 – DDF Presentation 2013

Consolidated financial information

Income statement (USD million) Q1 2013 Q1 2012 Change FY 2012

Revenue 14,047 14,327 -2.0% 59,089

EBITDA 2,890 2,467 17.2% 12,252

Depreciation, etc. 1,080 1,220 -11.5% 5,211

Gain on sale of non-current assets, etc. net 40 325 -87.7% 621

EBIT 1,941 1,646 17.9% 8,014

Profit before tax 1,690 1,493 13.2% 7,300

Profit for the period 790 1,175 -32.8% 4,038

Key figures (USD million) Q1 2013 Q1 2012 Change FY 2012

Cash Flow from operating activities 2,396 1,138 110.5% 7,506

Cash Flow used for capital expenditure -1,470 -837 75.6% -6,171

Net interest-bearing debt 13,439 14,399 -6.7% 14,489

Earnings per share (USD) 163 248 -34.3% 857

ROIC (%) 8.0 10.2 -2.2 8.9

Dividend per share (DKK) 1,200


Return on invested capital

Breakdown of ROIC by businessGroup ROIC 2005-Q1 2013

Business InvestedcapitalUSDm

ROIC %Q1 2013

ROIC %Q1 2012

A. P. Moller –Maersk Group 53,086 8.0 10.2

Maersk Line 20,570 4.0 -12.7

Maersk Oil 6,515 20.6 76.5

APM Terminals 5,555 12.0 20.1

Maersk Drilling 4,692 13.0 13.0

Maersk SupplyService 2,164 10.1 7.8

Maersk Tankers 3,421 -1.7 -3.1

Damco 518 4.7 8.0

Svitzer 1,501 8.1 8.3

DanskSupermarkedGroup

2,824 7.5 6.9

Other 5,900 5.4 10.5

→ Ambition going forward is >10% ROIC

16%

10% 10% 10%

00%

12%

08%09%

08%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

2005 2006 2007 2008 2009 2010 2011 2012 Q12013


The Group still expects a result for 2013 below the 2012 result (USD 4.0bn).The net result is expected to be in line with 2012 (USD 2.9bn) excludingimpairment losses, divestment gains and gain from the tax settlement inAlgeria. Cash flow used for capital expenditure is expected to be somewhathigher than the USD 6.2bn in 2012, while cash flow from operating activitiesis expected to develop in line with the result

Maersk Line still expects a result above 2012 (USD 461m) based primarilyon further unit cost reductions. Global demand for seaborne containers isexpected to increase by 2-4% in 2013, lower on the Asia–Europe trades butsupported by higher growth for imports to emerging economies

Maersk Oil still expects a result significantly below the result for 2012 (USD2.4bn), which included one-off income of USD 1.0bn from the Algerian taxdispute and divestment gains. The operational result is expected to be belowthe operational result for 2012 (USD 1.5bn) excluding the Algerian taxdispute and divestment gains. Maersk Oil expects its entitlement productionfor 2013 to be 240,000-250,000 boepd, lower in the first half than the secondhalf of 2013 at an average oil price of USD 105 per barrel. The lowerentitlement production is predominantly caused by a natural productiondecline from mature fields and reduced ownership share in Denmark,countered by start-up in El Merk and Gryphon. Exploration costs areexpected to be above USD 1.0bn

APM Terminals still expects a result above 2012 (USD 701m) and to growahead of the market supported by volumes from new terminals, whilstimproving productivity in existing facilities

Maersk Drilling still expects a result above the 2012 result (USD 347m)

The total result from all other activities is still expected to be above the2012 result excluding divestment gains and impairment losses

The outlook for 2013 is subject to considerable uncertainty, not least due todevelopments in the global economy

Sensitivities for the remainder of 2013

Outlook for 2013


a.p. møller - mærsk...the a.p. moller - maersk group is represented in 130 countries, employing...

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