A.P. Møller - Mærsk A/S. March 2012

Transcription

1 A.P. Møller - Mærsk A/S March 2012

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 expectations contained in the presentation. Slide no. 2

3 Agenda History and group overview Business segments Financial review Funding strategy Slide no. 3

4 A.P. Moller - Maersk Group: At a glance Diversified global conglomerate with activities focused in energy, transportation & retail 100+ years of financial strength: Established 1904 Headquartered in Copenhagen, Denmark Listed on NASDAQ OMX Copenhagen Market cap of USD 35bn - 05/03/2012 Approximately 117,000 employees in around 130 countries Stable and consistent ownership structure Market leading positions within shipping, terminal and focused retail activities Strong business portfolio within energy and offshore business Focus on investments in core segments Oil and Gas (E&P), Oil Services and Terminals Committed to conservative capital structure and funding profile, matching that of a strong investment grade company over the cycle Slide no. 4

5 A.P. Moller - Maersk Group milestones 1904: 1928: 1928: 1959: 1962: 1964: 1967: 1972: 1972: Company established with a general cargo ship First liner service between US and Asia The first tanker vessel was added to the Maersk fleet Opening of the new shipyard at Lindø (Denmark) Oil exploration and production activities initiated Dansk Supermarked (retail business) established Maersk Supply Service established Maersk Contractors established Maersk Oil first oil in the North Sea 1975: 1977: 1994: 1999: 2005: 2005: 2008: 2009: 2010: 2012: First container -ised vessels Mercantile now Maersk Logistics established Maersk Oil commenced oil production in Qatar Acquisition of Safmarine and Sea- Land P&O Nedlloyd acquired Oil and gas interests of Kerr-McGee UK acquired Broström acquired Norfolkline sale to DFDS (APMM retains 31% of combined company) Acquisition of SK do Brasil Ltda. Sale of Maersk LNG Slide no. 5

6 A.P. Moller - Maersk at a glance - Business based on invested capital (end 2011) Strategic investments Dansk Supermarked Danske Bank Other 14% Split of invested capital 35% Maersk Line Maersk Line Safmarine MCC Revenue CFFO USD 12.1bn USD 0.5bn Revenue CFFO USD 25.1bn USD 0.9bn Assets managed for value Maersk FPSOs & LNG RO/RO and related activities Revenue CFFO USD 0.8bn USD 0.3bn 6% $51.8bn 12% 10% Maersk Oil Revenue USD 12.6bn CFFO USD 4.4bn APM Terminals Revenue USD 4.7bn CFFO USD 0.9bn Opportunistic inv. Damco Svitzer Maersk Tankers Revenue CFFO USD 5.0bn USD 0.4bn 12% 11% APMM Group Revenue USD 60.2bn CFFO USD 7.3bn Oil Services Maersk Drilling Maersk Supply Service Revenue CFFO USD 2.7bn USD 1.2bn Slide no. 6

7 Historical return on invested capital Group ROIC annually Breakdown of ROIC by business 18% 16% 15,9% Business Invested capital USDm ROIC % 2011 ROIC % % A.P. Moller Maersk Group 51, % 10% 9,7% 10,1% 10,1% 12,2% Maersk Line 18, Maersk Oil 6, APM Terminals 5, % 8,3% Maersk Drilling 4, Maersk Supply Service 1, % 4% 2% 0% -2% -0,3% Maersk Tankers 3, Damco Svitzer 1, Maersk FPSOs and Maersk LNG 2, Dansk Supermarked Group 2, Other 5, Slide no. 7

8 Key credit strengths Key credit strengths Size and diversity Market position Oil & Gas business Business diversity World s leading player in container shipping, tankers, terminals, tugs and niche off-shore supply services with a strong global network and brand recognition Among the world s top E&P companies, revenues of USD 12.6bn in 2011 (USD 10.3bn 2010) Operated production of 626,000 barrels of oil equivalent per day (boepd) in 2011 from fields in the North Sea, offshore Qatar, Algeria, Brazil & Kazakhstan. Entitlement share of 333,000 boepd in 2011 Well diversified and balanced businesses across shipping, oil & gas, tankers, offshore, terminals, retail and others, providing resilience against downturns Operating efficiency Ownership structure Financial profile Geographic diversity Fleet operations Consistency and conservatism Cash-flow generation Financial flexibility Present in around 130 countries providing a full global network, accessing emerging and developed markets and tapping into the long-term growth in world trade Modern fuel-efficient fleet helping support competitive and environmentally friendly operations Good balance between owned and chartered vessels to optimise flexibility Majority of shares are owned by the A.P. Møller foundations, making it possible for management to focus on long term stability Investment philosophy is based on the principles of long-term shareholder value, active risk management and core competencies Proven ability to generate cash flow from operations throughout the cycle, supported by full control of the value chain Average debt maturity around 5 years Financial flexibility provided by an appropriate level of undrawn committed facilities Proven access to various funding sources incl. bond markets Slide no. 8

9 Financial Highlights 2011 Group result Financial highlights USD million ,369 5,018 5, Improved profits in all major businesses except Maersk Line due to declining rates Revenue increased 7% Profit declined 33% to USD 3.4bn Profit Q Free cash flow Q4 Profit FY Free cash flow FY ROIC was 8.3% (12.2% in 2010) Cash flow from operating activities USD 7.3bn (USD 10.1bn in 2010) Result by activity* USD million , Maersk Line Maersk Oil APM Terminals Maersk Drilling/Supply Other excl. unallocted Cash flow used for capital expenditure was USD 9.8bn (USD 4.6bn in 2010) Net interest bearing debt increased to USD 15.3bn from USD 12.4bn end 2010 Sale of Maersk LNG (USD 1.4bn) completed February 2012 Continued strong liquidity buffer of USD 11.3bn end 2011 *Excluding gains, impairments and other special items Slide no. 9

10 Agenda History and group overview Business segments Financial review Funding strategy Slide no. 10

11 Mill. TEU Business description: Maersk Liner Business Maersk Liner Business- highlights Our brands World s largest container line with a global market share of 15% Total Maersk Line, Safmarine, MCC and Seago Line fleet 254 own container vessels (end 2011) 391 chartered container vessels (end 2011) Operated capacity: 2.5 million TEU New fleet efficient on fuel and environmentally friendly Daily Maersk service concept introduced in Q4 2011, the on time delivery was 98% Most reliable carrier 2011 Drewry (4 years running). Maersk Line market-leading with on-time delivery of 87.5% in Q Operated fleet Deliveries after end ,5 3,0 2,5 2,0 1,5 1,0 0,5 - SAMMAX 7,500 TEU (9 vessels) WAFMAX 4,500 TEU (13 vessels) Triple-E 18,000 TEU (20 vessels) Multipurpose vessels 18,000 DWT (2 vessels) 2012 outlook: Maersk Liner Business expect a negative result for 2012 as a consequence of excess capacity. Global demand for seaborne containers is expected to increase by 4-6% in 2012, lower on the Asia- Europe trades, but supported by high growth in the North-South trades Current fleet Orderbook Source: AXS Alphaliner, 1 March 2012 Slide no. 11

12 Maersk Liner Business (USD million) Q Q FY 2011 FY 2010 Revenue 4,634 4,525 25,108 24,022 EBITDA ,009 4,507 Sales gains Profit (NOPAT) ,598 Operating cash flow -26 1, ,116 Volume (FFE million) Rate (USD pr. FFE) 2,671 3,031 2,828 3,064 Highlights 2011 Volume increased by 11% Y/Y and by 18% Q4/Q4 Rates declined by 8% Y/Y and by 12% Q4/Q4. Average bunker price was 35% higher than 2010 Unit cost declined by 6% Q4/Q4, but increased by 2% Y/Y excluding bunker costs EBIT per FFE of USD -75 (USD 384 per FFE) Safmarine integrated The Q4 result was negatively impacted by one-off costs of USD 105m related to restructuring in Safmarine and other impairments of USD 21m ROIC (%) Development in rate incl. BAF income Development in volume USD/FFE FFE Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Slide no. 12

13 boepd Business description: Maersk Oil Maersk Oil - highlights Maersk Oil is a midsize international oil and gas company and ranks among the world s top independent oil and gas companies with an operating production of 626,000 boepd (333,000 boepd entitlement share) in 2011 Production in 6 countries, exploration portfolio in 11 countries Successful exploration programme in 2011, including significant discovery at Avaldsnes, Norway Acquisition of SK do Brasil Ltda completed in July 2011 Production expected to decline until 2014, following which it will stabilize and gradually increase to a target of 400,000 boepd Entitlement production of oil Denmark Qatar Algeria UK Kazakhstan Brazil Planned new fields (first oil) Algeria: El Merk (2012) US Gulf of Mexico: Jack (2014) Kazakhstan: Dunga (2012) UK: Golden Eagle (2014) Commercial evaluation of discoveries Angola (Chissonga, Azul) Brazil (Carambola, Itaipu, Wahoo) Denmark (Luke/Elly) Norway (Avaldsnes, Flyndre, Zidane) UK (Cawdor, Courageous, Culzean, Jackdaw) US (Buckskin) 2012 outlook: Maersk Oil expects a result significantly below the result for 2011 based on expected 20% decline in the share of oil and gas production to a level of around 265,000 boepd at an average oil price of USD 105 per barrel. Exploration costs are expected to be above USD 1bn Slide no. 13

14 Maersk Oil (USD million) Q APMM share of production Q FY 2011 FY 2010 Revenue 3,021 2,894 12,616 10,250 Exploration costs EBITDA 2,319 2,168 10,015 8,268 Profit (NOPAT) ,061 1,659 Operating cash flow ,365 3,954 Share of prod. (boepd) 319, , , ,000 ROIC (%) '000 boepd Qatar DK UK Algeria Brazil Kazakhstan Highlights 2011 Share of production declined 12% Y/Y and 16% Q4/Q4 due to a lower share of production in Qatar and a lower production in Denmark and the UK, partly offset by a new production from Brazil 39% higher oil price at USD 111 per barrel Exploration costs increased 64% to USD 990m; however, was reduced by weather related delays Chissonga (Angola, 65%) declared commercial Avaldsnes (Norway, 20%), part of Johan Sverdrup, classified a significant discovery Golden Eagle (UK, 32%) development plan approved Encouraging results from the Azul (Angola, 50%) discovery well in the pre-salt reservoirs of the Kwanza Basin The result of the first of the Algerian arbitrations is expected shortly Slide no. 14

15 Mill. TEU Business description: APM Terminals APM Terminals highlights APMT equity weighted throughput World s 4th largest global terminal operator 55 terminals and 154 inland facilities in 64 countries, spanning 5 continents 8 new terminals under development Serves more than 60 shipping companies Truly global container terminal operator New Terminal Development Americas Region - Lazaro Cardenas, Mexico - Moin, Costa Rica - Santos, Brazil Europe Region - Izmir, Turkey - Gothenburg, Sweden - Rotterdam, Netherlands - Vado, Italy - Wilhelmshaven, Germany Existing Terminal Expansion Asia Pacific Region - Tanjung Pelepas, Malaysia - Qingdao, China Americas Region -Callao, Peru Africa, Middle East and India Region - Apapa, Nigeria - Aqaba, Jordan - Luanda, Angola - Monrovia, Liberia Europe Region - Port Said East, Egypt - Rotterdam, Netherlands Slide no. 15

16 APM Terminals (USD million) Q Q FY 2011 FY 2010 Highlights 2011 Revenue 1,265 1,109 4,682 4,251 EBITDA , Profit (NOPAT) Operating cash flow Volume (TEU million) ROIC (%) Volume growth and margin development 25% 20% 15% 10% 5% 0% -5% -10% % volume growth both Y/Y and Q4/Q4 versus market growth of 7% and 5%, respectively ROIC reached 13.1%; improved by enhanced efficiency, portfolio optimisation, addition of profitable terminals, and restructuring of the inland services The profit excluding sales gains, restructuring and impairment losses at USD 611m is 24% higher than the comparable result of USD 492m from 2010 Portfolio expansion 2011: Callao, Peru Poti, Georgia Moin, Costa Rica Lazaro Cardenas, Mexico Gothenburg, Sweden Izmir, Turkey added in 2012 EBITDA-margin Throughput growth Slide no. 16

17 Business description: Oil Services Maersk Drilling highlights Maersk Drilling s fleet consists of premium, harsh and ultra-harsh environment assets Growing in ultra-deepwater segment with newbuilding orders for four drillships Top player in 350ft+ jack-up market with 14 units Market leader in the Norwegian jack-up market with 6 out of 9 rigs 50% stake in Egyptian Drilling Company, the largest land rig operator in the Middle East Maersk Supply Service highlights Maersk Supply Service is a leading operator of high-end offshore support vessels True global player with focus on attractive deepwater markets Operating fleet of 68 vessels Strong market position in deepwater segment Leading player in high-end AHTS segment Maersk Drilling fleet Maersk Supply Service global activities Fleet Jack-up rigs 12 Semi-submersible rigs 4 Drilling barges 10 Total 26 Newbuilding programme Jack-up rigs 2 Drillships 4 Total 6 Canadian Market 7 vessels Brazilian Deepwater market 20 vessels North Sea (+ Europe) Market 23 vessels Far East and Aus. 7 vessels West African Deepwater market 11 vessels Slide no. 17

18 Oil Services Maersk Drilling (USD million) Q Q FY 2011 FY 2010 Revenue ,878 1,627 EBITDA Profit (NOPAT) Operating cash flow Fleet (units) ROIC (%) Revenue increased by 15% and profit increased by 24% Y/Y Contract coverage was 93% for 2012 at the end of 2011 Contracts secured for the two ultra harsh environment jack-up rigs with delivery in 2014 All of Maersk Drilling s units were employed throughout 2011 with high uptime, except for a few rigs entering yards for planned inspections and upgrades. More yard stays are scheduled for 2012 (USD million) Maersk Supply Service Q Q FY 2011 FY 2010 Revenue EBITDA Profit (NOPAT) Operating cash flow Fleet (units) ROIC (%) Maersk Supply Service increased revenue by 7% and profits by 4% Reasonable contract coverage going into 2012, but also a suitable exposure to the spot market to cover project work and to be able to take advantage of the seasonal peaks Two anchor handling vessels were ordered for the Canadian market Slide no. 18

19 Business description: Tankers & other shipping Slide no. 19

20 Tankers & other shipping Highlights 2011 Maersk Tankers loss-making due to challenging markets and fleet expansion Damco continued margin improvement and portfolio optimisation. Acquisition of China based air freight forwarder Profit/loss break down USD million Maersk Tankers Damco Maersk FPSOs, Maersk LNG Svitzer Svitzer revenue growth of 11% and 20% EBITDA improvement Sale of Maersk LNG for USD 1.4bn completed in February 2012 Slide no. 20

21 Business description: Other segments Dansk Supermarked Danske Bank Maersk Container Industry Dansk Supermarked is a leading retailer of convenience goods and is one of the fastest growing companies in Danish retailing A.P. Moller - Maersk owns 68% of the shares in Dansk Supermarked 1,303 stores throughout Europe ~43,000 employees in five countries Sale of UK activities (Netto Foodstores Ltd) completed in April 2011 The A.P. Moller - Maersk Group owns 20% of the shares in Danske Bank A/S, Denmark s largest bank, which has operations in a number of countries including Denmark, Sweden, Finland, Norway, Ireland and Northern Ireland ~21,000 employees Market Cap of DKK 92bn (USD 16.3bn) as at 5 March 2012 A.P. Møller - Mærsk A/S participated in Danske Bank s rights issue in 2011 on a pro-rata basis to current ownership share (DKK 4 bn) Maersk Container Industry produces dry and reefer containers and machines at factories in Dongguan and Qingdao, China ~5,300 employees First reefer factory outside China being established in Chile Slide no. 21

22 Other segments Retail activities (USD million) Q Q FY 2011 FY 2010 Revenue 2,615 2,908 9,605 10,537 EBITDA Profit (NOPAT) Number of stores 1,303 1,416 1,303 1,416 ROIC (%) 14.1% 22.5% 36.8% 14.8% Retail highlights 2011 Revenue increased by 1%, adjusted for divestment of Netto, UK 84 new stores were opened, of which 67 outside Denmark Divestment gain from Netto, UK of DKK 3.8bn contributed to positive result. Sale completed in April 2011 Other businesses highlights 2011 Result for Odense Steel Shipyard DKK 0.2bn (DKK -0.3bn). Final vessels delivered in January 2012 Result for Maersk Container Industry USD 69m (USD 41m) Share of result from Danske Bank DKK 343m (DKK 734m) Slide no. 22

23 2012 Priorities Create winning businesses Maersk Line is to continue the momentum obtained during the financial crisis. Particular focus will be on pricing and competitiveness and Maersk Line will seek to benefit from its strengthened positions on reliability and customer satisfaction. Cost reductions will continue to be pursued. Maersk Oil will continue to invest in and review exploration activities to secure that it delivers on developments and prospects. It has high priority for the Group to reverse the declining production profile and to ensure steady growth towards a sustainable production share of 400,000 barrels per day. The drive for increased customer focus will continue in all businesses. Growth markets The Group will prioritize further investing in selected growth markets and strengthen relationships with officials, key partners and clients. Recruitment and other HR activities will also be accelerated in these countries, all to establish a solid foundation for long-term expansion. Slide no. 23

24 The Group continuously strives to optimise the portfolio through portfolio management and capital allocation processes APMM Group will focus on seven core businesses within two industries Shipping Oil & Gas Container shipping Maersk Oil Strategic growth through the cycle Terminal activities Maersk Drilling / Maersk Supply Service Opportunistic investments when timing is right Damco Svitzer Maersk Tankers Slide no. 24

25 The Group continuously strives to optimise the portfolio through portfolio management and capital allocation processes Other Shipping and energy related business being managed to optimise financial return Banking and retail Maersk FPSOs DFDS Danske Bank Höegh Autoliners Dansk Supermarked Slide no. 25

26 Agenda History and group overview Business segments Financial review Funding strategy Slide no. 26

27 USD bn. Net Debt / EBITDA (x) USD bn. USD bn. Proven track record of strong financials through the cycle Revenue Steady growth in revenue due to combination of organic growth and M&A activity Cash Flow from Operating Activities Positive cash flow from operations throughout the cycle - strong rebound from 2009 Balanced portfolio supports continued operational cash flow EBITDA & EBITDA margin Unadjusted Net Debt / EBITDA % 25% 20% 15% 10% 5% 0% 2,5 2 1,5 1 0, EBITDA EBITDA Margin (RHS) Relatively stable EBITDA margins proving effect of diversification Moderate levels of leverage illustrative of conservative capital structure Net debt not adjusted for operating lease obligations Slide no. 27

28 Consolidated Financial Information Income statement (USD million) Q Q Revenue 14,973 14,675 60,230 56,090 EBITDA 3,067 3,845 14,661 15,867 Depreciation, etc. 1,449 1,649 5,396 6,015 Gain on sale of non-current assets, etc. net EBIT 1,675 2,232 10,274 10,608 Profit before tax 1,516 2,106 9,422 9,672 Profit for the period ,377 5,018 Key figures (USD million) Q Q Cash Flow from operating activities 1,098 2,768 7,262 10,132 Cash Flow used for capital expenditure -2,107-1,399-9,759-4,638 Net interest-bearing debt 15,317 12,415 15,317 12,415 Earnings per share (USD) ,078 ROIC (%) Dividend per share (DKK) 1,000* 1,000 *The Board of Directors proposes a dividend of DKK 1,000 per share Slide no. 28

29 Outlook for 2012 The A.P. Moller - Maersk Group expects a positive result lower than the 2011 result. 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 the result. Sensitivities Maersk Oil expects a result significantly below the result for 2011 based on expected 20% decline in the share of oil and gas production to a level of around 265,000 boepd at an average oil price of USD 105 per barrel. The production decline is predominantly caused by a reduced share of production in Qatar, and the natural maturation of the North Sea fields. The transfer of 20% ownership of DUC to the Danish North Sea Fund by mid-2012 will reduce the Group s production share in Denmark, but will have no impact on net earnings. Exploration costs are expected to be above USD 1bn. Maersk Line expects a negative result in 2012 as a consequence of excess capacity. Global demand for seaborne containers is expected to increase by 4-6% in 2012, lower on the Asia-Europe trades, but supported by high growth in the North-South trades APM Terminals expects a result above 2011 and to grow more than the market supported by volumes from new terminals Maersk Drilling has almost full contract coverage at attractive rates in 2012 and expects a result in line with the 2011 result Maersk Supply Service expects a result at the same level as in 2011, with one third of the available vessel days in 2012 not yet contracted The total result from all other activities is expected to be at the same level as in 2011 excluding divestment gains and impairments Slide no. 29

30 Agenda History and group overview Business segments Financial review Funding strategy Slide no. 30

31 Conservative long term funding position (end 2011) Loan profile for APMM Group Funding USD bn APMM is committed to maintain conservative capital structure and funding profile matching that of a strong investment-grade company over the cycle Diversified funding sources - increased financial flexibility Level of leverage inside historic levels (Net debt / EBITDA at historic range: x) Liquidity buffer of USD 11.3bn end 2011 Average debt maturity about 5 years > Drawn debt Corporate bonds Undrawn revolving facilities Pledges: ships, containers etc. with a carrying amount of DKK 54.8 bn (USD 9.5 bn) at end 2011, corresponding to 13,5% of total assets No immediate refinancing needs Funding commitments Interest-bearing debt 31% 8% 9% 12% 26% 14% Export Credit Agencies Shipfinancing institutions Bank financing Bonds Committed undrawn facilities Project financing in JV's USD bn ,4 14,6 0,1 NIBD 2010 EBITDA Δ Working Capital 6,0 9,8 0,9 Paid taxes CAPEX Financial items 0,8 15,3 Dividends and others NIBD 2011 Slide no. 31

32 Operating lease obligations (end 2011) Operating lease tenor split Adjusted net debt USD million 44% 7% 9% 17% 10% 13% Container activities < 1 year 1-2 years 2-3 years 3-4 years 4-5 years > 5 years Oil and gas activities USD bn 30 Terminal activities Tankers, offshore and other shipping activities Retail activity 2011 Within one year Between one and two years Between two and three years Between three and four years Between four and five years After five years Total Net present value ,1 Gross debt 3,8 Total interest bearing assets 15,3 Net debt 11,6 Lease commitments Other 26,9 Adjusted net debt Total Slide no. 32

33 Major capex commitments during 2011 New innovative container vessels 20 Triple-E Vessels (Economy of scale, Efficiency, Environment) Capacity: 18,000 TEU Investment: USD 3.8bn total Option for additional 10 vessels Delivered from Daewoo (Korea) 2 ultra harsh-environment Jack-ups Strengthen our position in high-end offshore market according to strategy Investment: USD 1.2bn total Option for 1 additional Jack-up Drilling rigs Delivered end-2013 and mid-2014 from Keppel (Singapore) 3 new projects in Peru, Costa Rica and Georgia, further strengthening focus on emerging markets Acquired Scandinavian gateway terminal in Gothenburg Investment: +USD 1 bn Terminals Four ultra deepwater drillships Important aspect in our offering to our customers in the ultra deepwater market Investment: USD 2.7bn total Delivered 2013 and 2014 from Samsung (Korea) Drillships Oil Exploration costs of USD 990m in 2011 Four projects under development Acquired SK Energy s assets in Brazil for USD 2.4bn Participation pro-rata in Danske Bank s share issue Investment: USD 0.7bn Purchase of three contracts for VLCCs with delivery from 2012 Purchase of two LR2 tankers Others Slide no. 33

34 Capex commitments (end 2011) Newbuilding deliveries (no. of vessels) > Total Containers Tankers 6 6 Drilling Supply FPSOs Svitzer Total Newbuilding - investment cash flow > Total Containers 1,6 1,4 1,3 0,6 4,9 Tankers 0,4 0,4 Drilling 0,4 1,7 0,8 2,9 Supply 0,1 0,0 0,0 0,0 0,2 FPSOs Svitzer 0,1 0,0 0,1 Total 2,6 3,2 2,1 0,6 8,5 Other Capital Commitments Total Maersk Oil 2,9 APM Terminals 2,8 Other 0,6 Total Capital Commitments per 31 December ,8 12,0 10,0 8,0 6,0 4,0 2,0 0,0 2.3 Paid instalments 2,6 3,2 2, > Total Contract Values 0,6 8,5 2,3 Outstanding installments, newbuildings Already paid Slide no. 34

35 Overview of funding strategy Solid, conservative capital base and proven access to diverse funding sources Financing and banking philosophy Leverage Conservative capital structure and funding profile, matching that of a strong investment-grade company over the cycle At end 2011, the Group s unadjusted Net Debt / EBITDA was 1.04x ( x range historically) Current debt financing arrangements No financial covenants or MAC clauses exist within any financing arrangements There is no significant debt due before mid-2015 Yearly amortisation of debt in coming two years is less than USD 2bn Ongoing funding strategy Focus on securing long term unsecured commitment to support business strategy Funding obtained from diversified sources ensuring access to market in volatile times Proven access to successfully tapping bond markets Continued diversification through strategic and opportunistic issuance under EMTN programme Intend to be a regular but not frequent issuer in the capital markets Ample capital resources available at all times Centralised funding and risk management at Group level Slide no. 35

36 A.P. Moller - Maersk: summary Key investor considerations Well diversified and balanced portfolio World-class operator and market leader Balanced operating cash flow Conservative financial profile History of performance Stable ownership Diversification across a broad range of businesses including world-leading positions in container shipping, tankers, terminals, tugs and niche offshore supply services Amongst the world s top independent oil and gas companies geographically well-diversified The world s largest container operator with a modern and efficient container fleet World s 4th largest, truly global container terminal operator serving 60+ shipping companies Operating the world s largest product tanker fleet following the acquisition of Broström Market leading in high end offshore supply service World s largest tug operation through Svitzer Generations of experience has created best-in-class efficiency and expertise Strong historic cash flow Natural hedge oil production vs. bunkers Balanced composition of business and geographical risks Strong financial profile with low leverage and proven cash generation ability Conservative dividend policy More than 100 year history of strong performance and growth throughout the cycle Family trusts controlling the group have a long term view on the business Slide no. 36

37 APPENDIX

38 The Executive Board acts as the daily management of the A.P. Moller - Maersk Group Dansk Supermarked Others Nils S. Andersen CEO of APMM Years with APMM: 5 ( APMM Board member) Education: M.Sc. Economics Maersk Oil Maersk Line Maersk Drilling/ Supply Finance APM Terminals Jacob Tomasen CEO of Maersk Oil Years with APMM: 24 Education: M. Sc. Geology Soren Skou CEO of Maersk Line Years with APMM: 29 Education: APM Shipping, MBA (IMD), HD-A (CBS) Claus V. Hemmingsen CEO of Maersk Drilling Maersk Tankers Maersk Supply Service Svitzer Trond Westlie CFO of APMM Years with APMM: 3 Education: Chartered accountant, ICAEW Kim Fejfer CEO of APM Terminals Years with APMM: 20 Education: M.Sc. Finance and Economics Years with APMM : 31 Slide no. 38 Education: APM shipping, MBA (IMD)

39 Group fleet overview per 31 December 2011 Own T/C Pool N/B Container 0-2,999 TEU ,000-4,699 TEU ,700-7,999 TEU ,000- TEU Multi-purpose Total containerships Tankers VLCC Product Gas Total tankers Supply Own T/C N/B Anchor Handling 50 2 Supply 13 Other 3 Total Supply 66 2 Svitzer & Esvagt Tugboats Standby vessels 32 4 Other vessels Total Svitzer & Esvagt Drilling, FPSOs & LNG FPSO 6 LNG* 8 Drilling Rigs Total FPSOs & LNG *Sold in 2012 Own T/C Pool N/B APMM Total Slide no. 39

40 A.P. Moller - Maersk Group enjoys a strong business portfolio within the energy and offshore businesses Business description Market position Maersk Oil Maersk Oil is a midsize international oil and gas company operating an oil production of 626,000 (2011) boepd from fields in the Danish and British part of the North Sea, offshore Qatar, in Algeria, Brazil and in Kazakhstan and exploring for oil and gas in a number of areas internationally. Maersk Oil s expertise to operate within tight and difficult reservoirs as well as the ability to extract more oil from already producing wells, gives Maersk Oil a strong competitive edge for future oil production Amongst world s largest independents Maersk Drilling Maersk Drilling is one of the leaders in the industry. The fleet consists of deepwater semisubmersibles, drilling barges and jack-up rigs including the world s largest and most advanced harsh environment jack-ups. With an average age of nine years, we operate one of the most modern and advanced fleets in the industry. Top 5 Maersk Supply Service Maersk Supply Service serves the offshore industry with over 60 vessels. The worldwide services include sub sea support, transport of equipment to drilling rigs and production units, anchor handling in ultra deep water, mooring installations and towage of offshore structures, drilling rigs and barges Top 1-2 Slide no. 40

41 and market leading positions within shipping, terminal and focused retail activities Business description Market position Maersk Line Maersk Line is the leading container shipping company in the world. The fleet consists of more than 600 container vessels and 2.5 mill containers, which ensures a comprehensive global coverage. As the most reliable carrier in the industry, Maersk Line has proven to be the preferred shipping provider and consequently has increased market share on all trading routes during the financial crisis Top 1 Maersk Tankers Maersk Tankers own and operate one of the largest, most modern and most diversified independent fleets of crude oil carriers, product tankers and gas carriers, all built and operated to A.P. Moller - Maersk Group's high standards of quality and reliability Top 1 Svitzer Svitzer provide services within harbour, terminal, and ocean towage, salvage and emergency response at sea. With a diverse fleet of more than 550 vessels operating in more than 35 countries, Svitzer is a leading provider of marine services and can be counted upon to provide tailored solutions to clients all over the World Top 1-2 APM Terminals APM Terminals operates a Global Port, Terminal and Inland Services Network of around 56 terminals with around 24,000 employees in 64 countries. The company provides port management and operations to over 60 liner shipping customers who serve the world s leading importers and exporters of containerized cargo Top 4 Dansk Supermarked Dansk Supermarked is a leading retailer of convenience goods and is one of the fastest growing companies in Danish retailing. The company consists of three major retail chains, each with its own profile, but they all share a solid base with functions such as purchasing, IT, finance, warehousing, etc. Top 1-2 in Denmark Slide no. 41