A.P. Møller - Mærsk A/S. Interim Report Q November 2013 Conference call 9.30am CET webcast available at

Transcription

1 A.P. Møller - Mærsk A/S Interim Report Q November 2013 Conference call 9.30am CET webcast available at

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. Interim Report Q3 2013

3 Executing on Group Strategy page 3 Profit in Q3 was USD 1,195m and ROIC was 9.5%. Profit for the first 9M was USD 2,841m and ROIC was 8.3% Maersk Line reduced unit costs further mainly through improved utilisation. Fourth consecutive quarter with +5%- points EBIT-margin gap to peers Maersk Oil stabilised share of production due to: Gryphon (UK) reverting to full production Continued ramping up of El Merk (Algeria) Development plans for Chissonga (Angola) and Flyndre/ Cawdor (UK) were submitted to respective authorities APM Terminals had a strong quarter with ROIC reaching 14.2%. Operations in Santos (Brazil) have commenced Maersk Drilling continued to deliver high operational uptime. An additional ultra harsh jack-up rig was ordered backed by a long term contract APM Terminals and Maersk Drilling are well on track towards the target of contributing USD 1bn NOPAT by 2016 and 2018 respectively Portfolio optimisation continued with the divestment of the 31.3% stake in DFDS Interim Report Q3 2013

4 Group Financial Highlights page 4 Group Financial Highlights USD million 3,500 3,000 2,500 2,000 1,500 1, ,074 2,841 2,968 1,906 9M M ,068 3,429 Profit Profit ex. one-offs Free cash flow Reported profit of USD 1,195m in Q (USD 934m). Profit excluding one-offs was USD 1,254m (USD 948m), driven by an accounting loss of USD 56m from divestment of the DFDS stake ROIC was 9.5% (8.4%) Operational cash flow improved to USD 2.9bn (USD 2.8bn) and capex increased to USD 1.4bn (USD 0.6bn) Portfolio optimisation continued with the divestment of the stake in DFDS. The overall ownership has given the Group a positive return including dividends received Full year result excluding one-offs upgraded to be around USD 3.7bn from previously around USD 3.5bn Underlying profit by activity* USD million 1,200 1,000 1,200 1,012 9M M Maersk Line Maersk Oil APM Terminals Maersk Drilling All Other * Excluding gains, impairments and other one-offs Interim Report Q3 2013

5 Maersk Line results page 5 (USD million) Q Q M M 2012 Highlights Q Revenue 6,782 6,961 19,746 20,595 EBITDA ,550 1,464 Sales gains Profit (NOPAT) , Operating cash flow 1,259 1,082 2, Volume (FFE million) Rate (USD/FFE) 2,654 3,022 2,678 2,893 Bunker (USD/tonne) ROIC (%) ML volume versus fleet capacity development Indexed Q1 12 = Fleet capacity Volumes Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Maersk Line delivered a profit of USD 554m (USD 498m) and a ROIC of 10.9% (9.7%) Unit cost decreased by 13% or 390 USD/FFE to 2,622 USD/FFE compared to Q Bunker cost decreased by 17% compared to Q3 2012, driven by 8% lower consumption and 11% lower bunker price. Network efficiencies and utilisation improved Freight rate declined by 12% to 2,654 USD/FFE compared to Q3 2012, and increased by 1.4% compared to Q Volumes increased by 11% to 2.3m FFE compared to Q Headhaul volumes increased on all trades except for North America which decreased with 3%. Headhaul volumes were up 17% on Asia to Europe Maersk Line s free cash flow was USD 768m in Q3, an improvement of USD 400m versus Q (USD 368m) The P3 Parties have carefully reviewed the applicable laws and are cooperating closely with competition and maritime authorities worldwide to provide the information required to obtain regulatory approval. Aim is to start operations in Q2 2014, assuming regulatory approval has been obtained by then. P3 is expected to deliver additional cost reductions after initial phase-in costs Interim Report Q3 2013

6 Maersk Line cost reductions Continued unit cost improvements Unit cost (USD/FFE) 3,200 3,100 3,000 2,900 2,800 2,700 2,600 Cost improvement 9M 2013 vs. 9M 2012, cost savings (USDm) 2,000 1,600 1, ,334 Bunker 3, Container lifting at terminals Inland transportation 3,054 2, M 2013 Definition of unit cost: EBIT cost excl. gain/loss, restructuring cost and including VSA income Terminal costs -153 Notes: Other includes reduced time charter cost, VSA cost and income, SG&A cost, equipment and feeder cost and others (e.g. other variable cost, cash flow hedge, other fixed costs) 90 Port berthing costs Port expenses 2,727 Other 1,762 Total saving Unit costs declined by USD 81/FFE to USD 2,622/FFE Q3/Q2 driven by increased volume on flat cost base Total costs reduced by USD 237m compared to Q of which USD 116m was lower bunker consumption and USD 154m was lower bunker price A large part of bunker savings Y/Y was due to not running the AE5 service since October 2012 and AE9 service since February 2013, as well as due to other network optimization (speed equalization, vessel scale upgrades and service rationalization) Terminal expenses increased by 6% (USD 97m) against a volume increase of 11% compared to Q Inland intermodal cost was reduced by 17% (USD 144m) compared to Q Improved vessel utilization, technical retrofit initiatives and efforts to reduce inefficiency from all parts of the operational execution supported the cost savings on a per FFE basis page 6 Interim Report Q3 2013

7 Maersk Oil results (USD million) Q Q M M 2012 Revenue 2,210 2,388 6,650 7,650 Exploration expenses EBITDA 1,393 1,604 4,212 5,493 Profit (NOPAT) ,004 Operating cash flow 989 1,347 2,861 3,526 Prod. (Boepd 000) Brent (USD per barrel) ROIC (%) Maersk Oil s entitlement share of production 000 boepd Q Q Highlights Q page 7 Maersk Oil delivered a profit of USD 189m (USD 243m) and a ROIC of 12.0% (14.3%), impacted by lower entitlement production across the portfolio Production declined by 5% due to reconfiguration at Tyra, (DK), maintenance in Qatar and unplanned shutdowns in the UK, however is on the rise versus Q2 The return of the Gryphon FPSO in the UK to full production and the continued ramp up of El Merk (Algeria) reversed the production decline Longer term development; The development plans for Chissonga (Angola) and Flyndre/Cawdor (UK) have been submitted to respective authorities for approval Exploration costs were USD 256m (USD 268m). Six exploration/appraisal wells drilled in Q3: Cubal discovery well in Angola New successful appraisal well at Johan Sverdrup (Norway) 60 Itaipu (Brazil) appraisal well being assessed Qatar DK Algeria UK Brazil Kazakhstan Three other wells in Brazil, Kurdistan and Norway did not encounter hydrocarbons in commercial volumes Interim Report Q3 2013

8 APM Terminals results page 8 (USD million) Q Q M 2013 Volume growth and margin development 9M 2012 Revenue 1,122 1,051 3,230 3,164 EBITDA Profit (NOPAT) Operating cash flow Throughput (TEU m) ROIC (%) % 20% 15% 10% 5% 0% -5% -10% * 9M 2013 EBITDA-margin Throughput growth * Only EBITDA margin for FY12 has been restated accordingly to IFRS 11 ** APM Terminals holds a 37.5% co-controlling share in Global Ports Highlights Q Profit rose to USD 203m (USD 156m) with a strong underlying profit of USD 195m (USD 156m). ROIC increased to 14.2% (14.0%) 4% volume growth compared to Q3 2012, in line with market and reaching highest quarterly throughput reported EBITDA-margin has improved slightly to 21.5% (21.4%) despite higher construction revenue on behalf of concession grantors grossing up revenue and costs Focus continues to be on improving productivity in existing terminals Portfolio initiatives: Santos (Brazil) commenced operations during Q Operations remain limited in scope while dredging work is under completion by port authorities A 24% share of APM Terminals Zeebrugge (Belgium) was sold awaiting regulatory approval Bridge Terminal Transport Inc. (USA) was divested during Q3 Global Ports** signed an agreement to acquire National Container Co. The transaction is subject to regulatory approvals Interim Report Q3 2013

9 Active Portfolio Management focusing on growth markets page 9 Significant recent developments New project Expansion Acquisition New Projects Lazaro Cardenas, Mexico Santos, Brazil Izmir, Turkey Abidjan, Ivory Coast Moin, Costa Rica Major Acquisitions Global Ports International (Russia) NCC (by GPI pending) Major Expansions Callao, Peru Monrovia, Liberia Apapa, Nigeria Onne, Nigeria Divestments BTT, USA Inland Services in Germany, Vietnam, etc. Interim Report Q3 2013

10 Maersk Drilling results page 10 (USD million) Q Contracted days and coverage Q M M 2012 Revenue ,499 1,243 EBITDA Profit (NOPAT) Operating cash flow Fleet (units)* Contracted days* 1,472 1,380 4,368 4,147 ROIC (%) *Excluding stake in EDC, barges in Venezuela and the managed semi-submersible Nan Hai VI 1,600 1,500 1,400 1,300 1,200 1,100 1,000 Q1'10 Q3'10 Q1'11 Q3'11 Q1'12 Q3'12 Q1'13 Q3'13 Contracted days (LHS) coverage % (RHS) Highlights Q Profit increased by 76% to USD 148m (USD 84m), mainly due to two rigs on yardstay in Q3 2012, higher day rates and operational uptime in Q3 2013, while managing to keep costs unchanged for rigs in operation Operational uptime averaged 98% in Q3 (94%) Contract coverage on available rig days is 100% for the remainder of 2013, 90% for 2014, 61% for 2015 and 45% for Total revenue backlog is now USD 7.7bn One contract extension and one new contract were announced in Q3: A contract for a harsh environment jack-up rig was extended by two years in the UK, worth approximately USD 170m An ultra harsh environment jack-up rig was awarded a one-year contract in Norway with options to extend the contract up to a total of three years. Worth approximately USD 137m Maersk Drilling ordered an ultra harsh environment jack-up rig in Q backed by a five-year contract Maersk Drilling is preparing to take delivery of eight large rigs and will endure significant ramp up costs related to the rig fleet expansion The newbuilding programme is on budget, but the delivery of the first rigs will be slightly delayed Interim Report Q3 2013

11 Services & other shipping page 11 Underlying profit by activity 9 months* Highlights Q USD million Maersk Supply Service 9M M Maersk Supply Service Reported profit increased to USD 76m (USD 48m) mainly due to higher utilisation and lower operating expenses. Contract coverage is 79% for the remainder of 2013 and 51% for 2014, excl. options Maersk Tankers Maersk Tankers Reported profit of USD 18m (loss of USD 278m) was positively impacted by lower operational cost, improved average time charter equivalent earnings in the product and gas segments and impairments taken in Q not recurring 44 Damco 4 95 SVITZER Damco Reported profit of USD 1m is significantly below last year result (USD 15m). Attributable to increased overhead cost, significant projects and restructuring costs SVITZER Reported profit of USD 34m (USD 33m), positively affected by Harbour Towage tariff increases and strong salvage activity *Excluding gains, impairments and other special items Interim Report Q3 2013

12 Focus on performance page page Breakdown of ROIC by business Business Invested capital (USDm) ROIC % Q3 2013* ROIC % ROIC % 9M 2013* 2012 Group 53, Maersk Line 20, Maersk Oil 6, APM Terminals 5, Maersk Drilling 5, Maersk Supply Service 2, Maersk Tankers 2, Damco SVITZER 1, Dansk Supermarked 3, Other 6, Ambition ROIC > 10% * ROIC annualised Maersk Line, Maersk Oil, APM Terminals and Maersk Drilling delivered a ROIC >10% in Q Other was negatively impacted by Maersk Container Industry and Ro/Ro and related activities Interim Report Q3 2013

13 Investments and debt page 13 Cash flow used for capital expenditure net of sales proceeds was USD 1.4bn (USD 0.6bn) in Q3: USD million Maersk Line Maersk Oil APM Terminals 483 Development in net interest bearing debt 9M 2013 (USD billion) NIBD EBITDA WC Paid taxes CAPEX Financial items Maersk Drilling Other Dividend Other* NIBD 2013 Q3 Optimise balance sheets for future growth The Group continues to allocate capital to the most profitable businesses. All business units continue to engage in efforts to clean their balance sheets of underperforming assets. BBB+/Baa1 credit ratings (both stable) assigned by S&P/Moody s on 25 September 2013 Net interest-bearing debt was USD 12.1bn end Q3: A reduction of USD 2.4bn since year end 2012 A reduction of USD 1.6bn since Q The Group s FY 2012 net interest-bearing debt was restated from USD 15.7bn to USD 14.5bn as a result of new IFRS consolidation of Joint Venture rules. * Other include currency adjustments, etc. Interim Report Q3 2013

14 Consolidated Financial Information page 14 Income statement (USD million) Q Q Change 9M M 2012 Change FY 2012 Revenue 14,562 14, % 42,772 44, % 59,089 EBITDA 3,233 3, % 9,094 9, % 12,252 Depreciation, etc. 1,148 1, % 3,596 3, % 5,211 Gain on sale of non-current assets, etc. net % 621 EBIT 2,178 2, % 5,882 6, % 8,014 Financial costs, net % % -714 Profit before tax 2,072 1, % 5,329 5, % 7,300 Tax 877 1, % 2,488 2, % 3,262 Profit for the period 1, % 2,841 3, % 4,038 Key figures (USD million) Q Q Change 9M M 2012 Change FY 2012 Cash Flow from operating activities 2,883 2, % 7,480 5, % 7,506 Cash Flow used for capital expenditure -1, % -4,051-3, % -6,171 Net interest-bearing debt 12,140 13, % 12,140 13, % 14,489 Earnings per share (USD) % % 857 ROIC (%) pp pp 8.9 Dividend per share (DKK) ,200 Interim Report Q3 2013

15 Outlook for 2013 The Group revises its expected result for 2013 to around USD 3.5bn (USD 4.0bn) from previously around USD 3.3bn. Excluding impairment losses and divestment gains, the net result is now expected to be around USD 3.7bn (USD 2.9bn) from previously around USD 3.5bn. Cash flow from operating activities is still expected to be around USD 9bn (USD 7.5bn). Net cash flow used for capital expenditure is now expected to be around USD 7bn (USD 6.2bn) from previously around USD 8bn. Maersk Line specifies their result for 2013 to be significantly above 2012 (USD 461m) based on the strong result for the first nine months of USD 1.2bn. Whereas Q had satisfactory returns, freight rates deteriorated significantly during the quarter and hence the seasonally low Q has started with low freight rates which will result in a significantly lower fourth quarter result than third quarter. Maersk Oil continues to expect a result for 2013 significantly below 2012 (USD 2.4bn) given a result for the first nine months of USD 784m. Maersk Oil now expects the entitlement production for 2013 to be around 235,000 boepd from previously 240, ,000 boepd. This is partly due to expected higher average oil price for the year of USD 108 per barrel versus previous full year assumption of USD 104 per barrel, giving lower entitlement production in Qatar and partly due to delays in El Merk, Algeria and Gryphon FPSO, UK. The expected lower entitlement production for 2013 compared to last year (257,000 boepd) is due to a natural production decline in mature assets and reduced ownership share in Denmark. Sensitivities for the remainder of 2013 Factors Change Effect on the Group s profit rest of year Oil price for Maersk Oil + / - 10 USD/barrel + / - USD 0.1bn Bunker price + / USD/tonne + / - USD 0.0bn Container freight rate + / USD/FFE + / - USD 0.2bn Container freight volume + / - 100,000 FFE + / - USD 0.2bn APM Terminals' expected result for the year is still above last year (USD 701m) with a result for the first nine months of USD 548m supported by volumes from new terminals and improving productivity in existing facilities. Maersk Drilling specifies their result to be above USD 500m given a result of USD 444m for the first nine months and with an expected lower result in Q than in Q Other activities remain above the 2012 result excluding divestment gains and impairment losses. The Group s outlook for 2013 is subject to considerable uncertainty, not least due to developments in the global economy. page 15 Exploration expenses for the full year are expected to be around USD 1.2bn from previously above USD 1.0bn. Interim Report Q3 2013

16 Final remarks page 16 Development in invested capital since Q Maersk Drilling APM Terminals Damco 17% 36% 34% The Group will create value through profitable growth The Group has the ambition to grow invested capital by around 30% by 2017 (baseline Dansk Supermarked 11% 2012) Group 1% The Group seeks to improve the Return on Maersk Supply Service 0% Invested Capital by; Maersk Line Other businesses SVITZER Maersk Oil 0% -7% -10% -14% Focused and disciplined capex allocation Portfolio optimisation Performance management The Group intends to grow dividends in nominal terms. Maersk Tankers -31% -40% -20% 0% 20% 40% Interim Report Q3 2013

17 page 17 Q & A - To ask a question please press * then 01 Interim Report Q3 2013

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19 Maersk Group page 19 Key facts Founded in 1904 Represented in over 130 countries, employing around 121,000 people Market capitalization of around USD 40bn Facilitating global containerised trade Maersk Line carries around 14% of all seaborne containers and, together with APM Terminals and Damco, provides infrastructure for global trade Supporting the global demand for energy The Group is involved with production of oil and gas and other related activities including drilling, offshore, services, towage, and transportation of crude oil and products

20 Group Financial Highlights Q page 20 Group financial highlights USD million Q Q ,500 2,210 2,000 1,495 1,500 1,195 1, , Profit Profit ex. one-offs Free cash flow Reported profit of USD 1,195m (USD 934m in Q3 2012). Profit excluding one-offs was USD 1,254m (USD 948m), driven by an accounting loss of USD 56m from divestment of shares in DFDS ROIC was 9.5% (8.4%) Operational cash flow improved to USD 2.9bn (USD 2.8bn) Portfolio optimisation continued with the divestment of the stake in DFDS. The overall ownership has given the Group a positive return including dividends received Full year result excluding one-offs upgraded to be around USD 3.7bn from previously around USD 3.5bn Underlying profit by activity* USD million Q Q Maersk Line Maersk Oil APM Terminals Maersk Drilling All Other * Excluding gains, impairments and other one-offs

21 Strategy and targets page 21 Maersk Line Maersk Oil APM Terminals Maersk Drilling Services & other shipping* Self-funded EBIT 5%-points > peers Grow with market 400,000 boepd ROIC at least 10% during rebuild USD 1bn NOPAT Global leader USD 1bn NOPAT Significant position in ultra-harsh and ultra-deep seg. USD 0.5bn NOPAT Self-funded Investments: Danske Bank, Dansk Supermarked Group, Höegh Autoliners, Other *Maersk Tankers, Maersk Supply Service, Damco and SVITZER

22 page 22 Priorities for execution Deliver on commitments Maersk Line will keep managing its capacity effectively during the introduction of the Triple-E vessels while maintaining market share. In addition to a safe operation, the most important target for Maersk Oil, is to commercialise successful exploration, hereunder delivering progress as planned on key projects such as Chissonga (Angola), Johan Sverdrup (Norway), Golden Eagle (UK), Jack (US) and to further ramp up the El Merk field (Algeria). APM Terminals top priority is to effectively execute on the Santos terminal project in Brazil and the Maasvlakte II (Netherlands) project, while improving efficiency across the portfolio. In Maersk Drilling, six new drilling rigs are coming into the fleet during The aim is to take delivery and commence operation of the rigs on time and on budget. Focus is also on securing contracts for the third and fourth drillship under construction with expected delivery in mid Golden Eagle, UK Optimise balance sheets for future growth. The Group continues to allocate capital to the most profitable businesses. All business units continue to engage in efforts to clean their balance sheets of underperforming assets.

23 Capital allocation page 23 Businesses Investment guidelines Maersk Line Invest up to own cash flow from operations when required to defend market position and preserve cost leadership Maersk Oil Continued investment program to rebuild pipeline Optimize portfolio when timely APM Terminals Continued investment program to grow position in attractive locations Active optimization of portfolio Maersk Drilling Continued investment program towards scale; based on long-term contracts Services & other shipping Invest where profitable to develop and grow Must have positive free cash flow for overall business Investments Limited investments as required to maximize value

24 Consolidated Financial Information (DKK) page 24 Income statement (DKK million) Q Q Change 9M M 2012 Change FY 2012 Revenue 82,060 87, % 242, , % 342,363 EBITDA 18,228 19, % 51,522 53, % 70,986 Depreciation, etc. 6,470 8, % 20,375 22, % 30,193 Gain on sale of non-current assets, etc. net , , % 3,600 EBIT 12,281 12, % 33,323 35, % 46,433 Financial costs, net , % -3,131-3, % -4,135 Profit before tax 11,691 11, % 30,192 32, % 42,298 Tax 4,944 6, % 14,095 14, % 18,901 Profit for the period 6,747 5, % 16,097 17, % 23,397 Key figures (DKK million) Q Q Change 9M M 2012 Change FY 2012 Cash Flow from operating activities 16,262 16, % 42,375 32, % 43,490 Cash Flow used for capital expenditure -7,823-3, % -22,950-20, % -35,757 Net interest-bearing debt 67,040 79, % 67,040 79, % 81,997 Earnings per share (DKK) 1,456 1, % 3,400 3, % 4,964 ROIC (%) 9.5% 8.6% 0.9% 8.2% 9.3% 1.1pp 9.0% Dividend per share (DKK) 1,200

25 Group Business Drivers page 25 Q3-13 Q2-13 Q3-12 Change vs previous quarter Change vs previous year Transported container volumes, FFE (million) Average container freight rate, USD/FFE % +10.6% 2,654 2,618 3, % -12.2% Maersk Line Fleet Number (TEU, million) 279 owned 297 chartered (2.7) 275 owned, 309 chartered (2.6) 271 owned, 309 chartered (2.6) +4% +4% Share of oil and gas production, 000 boepd % -4.6% Average crude oil price (Brent) Containers handled (weighted with ownership share), TEU (million) % +0.9% % +3.3% Operational uptime 98% 96% 94% +2.1% +4.3%

26 Development in invested capital page 26 Invested capital Q Invested capital Q Maersk Line APM Terminals Other businesses* Maersk Oil Maersk Drilling Shipping & other services Maersk Line APM Terminals Other businesses* Maersk Oil Maersk Drilling Shipping & other services 15.4% 12.8% 17.4% USD 52,699m 38.3% 16.9% USD 53,403m 38.0% 7.4% 8.2% 13.3% 10.0% 10.9% 11.4% Our portfolio strategy towards 2017 (base Q2 2012) At least 75% of the invested capital is within Maersk Line, Maersk Oil, APM Terminals and Maersk Drilling Maersk Line s share of the Group s invested capital is likely to be reduced towards a 25-30% range Maersk Oil, APM Terminals and Maersk Drilling s combined share of the invested capital will increase towards a 45-50% range *Other businesses: DSG, 20% ownership in Danske Bank A/S (associated company), Maersk Container Industry, Maersk FPSOs and Maersk LNG, Ro/Ro and other Maersk Tankers fleet reduction and impairments, the divestment of the LNG fleet and of FPSO Maersk Peregrino mainly explain the decrease in invested capital in the other business operations since Q Growing the business by 30%

27 Investment in growth page 27 Cash flow from operations and Capex Track record for growth USDbn M 2013 Cash flow used for capital expenditure, gross accumulates to USD 52bn since 2008 Cash flow generation from operations has been USD 46bn during the same period Our growth ambitions will result in significant investments funded primarily from own cash flow Cash flow from operating activities Cash flow for capital expenditure, gross

28 page 28 Cash flow supported by active portfolio management Cash flow and gains from divestments USDbn M 2013 Cash flow from divestments Divestment gains (pre-tax) Divestment cash flow Cash flow from divestments has been USD 11.0bn with divestment gains of USD 4.4bn pre-tax since 2007 Transactions with impact post Q2 2013; Divestment of the stake in DFDS with USD 0.3bn in proceeds during Q Maersk Tankers will receive further USD 0.4bn proceeds from the sale of the Very Large Gas Carriers (VLGCs) and Handy gas segments As part of Project Fit a long list of assets and activities have been divested; including real estate, inland logistics, rail services and a barge terminal

29 Investment in growth page 29 Capital commitments Growth commitment USDbn The Group has entered into USD 12.3bn capital commitments per 30 September % of all capital commitments or USD 9.4bn is dedicated to growth in Maersk Oil, APM Terminals and Maersk Drilling beyond Total Maersk Line Maersk Oil APM Terminals Maersk Drilling All other

30 Credit rating of BBB+/Baa1assigned in September 2013 page 30 APMM has received a credit rating in order to: A credit rating is the natural next step in APMM s funding strategy Support the Group s growth Secure lowest funding cost Ensure stable access to funding markets Optimize debt maturity profile Gain direct access to USD bond markets Funding historically based on banks, Export Credit Agencies and ship mortgage institution 2009: Diversification through first bond issues 2013: APMM is largest unrated bond issuer in Europe with USD 5bn bonds outstanding Increased transparency of the Group Rating: Baa1 (stable) Rating : BBB+ (stable)

31 page 31 GPI facility in St. Petersburg The Group s financial guidelines Defined financial ratios in line with strong investment grade rating Key ratio guidelines: Equity / Total Assets 40% Equity / Adj. Total Assets* 30% Adj. FFO / Adj. Net Debt* 30% Adj. Interest Coverage Ratio* 4x We are well within the key ratio guidelines *Adjusted for lease obligations

32 page 32 Funding in place with liquidity buffer of USD 15.2bn Loan maturity profile end Q Funding USD billion >2020 BBB+/Baa1 credit ratings (both stable) assigned by S&P/Moody s on 25 September 2013 Liquidity reserve of USD 15.2bn as of end Q3 2013* Average debt maturity of about five years Diversified funding sources - increased financial flexibility Corporate bond program - 30% of our Gross Debt (USD 5.0bn) Amortization of debt in coming years is on average USD 2.4bn per year Drawn debt Corporate bonds Undrawn revolving facilities * Defined as cash balances and undrawn committed facilities

33 Investments page 33 Profit by activity* USD million Dansk Supermarked Danske Bank** Q Q Dansk Supermarked Group Profit improved to USD 62m (USD 36m) due to; Revenue growth seen across all countries Cost reduction initiatives Profitability improvements in føtex and good sales and profitability growth in Netto across the four countries Closure of non performing stores in *Excluding gains, impairments and other special items (Clean profit) **Contribution from Danske Bank is 20% of the reported net profit

34 Development in dividends page 34 Development in dividends and yield since 2002 DKK 1,400 1,200 1,000 % 3.5% 3.0% 2.5% Pay-out ratio 33% of underlying profit in 2012 The Group s objective is to increase the nominal dividend per share over time; supported by underlying earnings growth % % % % % Dividend per share (LHS) Dividend yield (RHS)

35 Maersk Line page 35 Key facts 596 vessels with a capacity of 2.6m TEU transporting 8.5m FFE generating a total revenue of USD 27bn in 2012 Enabling global growth with a total value of goods transported estimated at USD 650bn in ,000 employees (incl. 6,000 sea farers) in 362 office locations globally, serving 67,000 customers world wide Maersk Line trade routes Note: Based on 2012-data. Total number of vessels as of Q incl. multipurpose vessels. Value of shipping goods estimated as Maersk Line capacity market share (15%) of total value of global container imports by sea Source: Alphaliner, Maersk Line, Seabury

36 Maersk Line break-even level for freight rate reduced page 36 Average freight rate, (USD/FFE) 3,100 3,000 Quarterly Annual 3,014 3,022 2,900 2,908 2,892 2,860 2,846 2,800 2,770 2,700 2,600 2,671 2,646 2,618 2,654 2,500 2,400 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 NOPAT, (USDm)

37 Maersk Line EBIT-margin gap to peers page 37 EBIT-margin, % 25% 20% EBIT-margin gap, %-points 25% 20% 15% 10% 5% 0.7% 12.8% 10.4% 4.8% 4.6% 4.9% 5.6% 4.9% 7.3% 1.1% 5.4% 3.0% 3.6% 1.3% 0.9% 2.9% 3.9% 7.0% 7.0% 9.2% 8.3% 15% 10% 5% 0% -5% -2.5% -0.4% 0% -5% -10% -10% -15% -15% -20% Gap to peers (rha.) Maersk Line -20% -25% 08Q1 08Q3 09Q1 09Q3 10Q1 10Q3 11Q1 11Q3 12Q1 12Q3 13Q1 13Q3-25% Note 1: The peer group includes CMA CGM, Hapag-Lloyd, APL, Hanjin, Hyundai MM, Zim, NYK, MOL, CSCL, COSCO and OOCL. Averages are TEU-weighted. Note 2: CSCL, COSCO and OOCL only provide interim financials, hence quarterly EBIT-margin is based on their interim gap to MLB. Their quarterly gaps are always based on newest information, why latest Q1 and Q3 are re-evaluated when latest H1 and H2 is available. Note 3: CMA CGM, Zim, Hanjin and Hyundai MM have not yet released their 13Q3 financials and hence for the projected 13Q3 peer group average their margins are assumed to be as per their gap to ML in 13Q2. Note 4: 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 depreciations to match with industry standards. Source: Internal reports, competitor financial reports

38 page 38 Improved competitiveness has made us best in class Maersk Line improving gap to peers H industry top performers EBIT margin, (% points) EBIT margin, (%) EBIT, (USD m) 10% 8% 6% 4% 2% 0% 8% 5% 4% 2% 2% H H H H H Maersk Line CMA CGM OOCL Hapag Lloyd MOL NYK Hanjin APL ZIM Hyundai MM. CSCL COSCO Peer avg. 0% -1% -2% -3% -3% -4% -4% -5% -7% -9% -2% 6% 4% -15% -10% -5% 0% 5% 10% Note: The peer group includes CMA CGM, Hapag-Lloyd, APL, Hanjin, Hyundai MM, Zim, NYK, MOL, CSCL, COSCO and OOCL. Peer average is TEU-weighted. EBIT margins are adjusted for gains/losses on sale of assets, restructuring charges, income/loss from associates. Maersk Line s EBIT margin is also adjusted for depreciations to match industry standards (25 years). Source: Company reports, Maersk Line

39 Vessel, bunker and terminal represent the largest components of our cost base page 39 Cost base, FY 2012 USD 26bn FY 2012 cost base Administration 9% and other costs 24% Bunker 25% Terminal costs 3,054 USD/FFE FY 2012 unit cost Vessel costs 26% 4% 12% Inland transportation Containers & other equipment Note: Terminal costs: costs related to terminal operation such as moving the containers (mainly load/discharge of containers), container storage at terminal, stuffing (loading) and stripping (unloading) of container content, power for reefer units, etc. Inland transportation: costs related to transport of containers inland both by rail and truck. Containers and other equipment: repair and maintenance, third party lease cost and depreciation of owned containers. Vessel costs: port costs and canal fees (Suez and Panama), running costs and crewing of owned vessels, depreciation of owned vessels, time charter of leased vessels, cost of slot (capacity) purchases and vessel sharing agreements (VSA) with partners. Bunkers: costs related to fuel consumption of the vessels. Lubricants are included as part of vessel cost. Administration and other costs: own and third party agents in countries, liner operation centres, vessel owning companies, onshore crew and ship management, service centres and headquarters. Administration cost types such as staff, office, travel, training, consultancy, IT, legal and audit, etc. Other costs covering currency cash flow hedge, cargo and commercial claims and bad debt provision. Source: Maersk Line

40 Stability from diversity in contract duration and global footprint page 40 Revenue split, H Volume split, FY 2012 Demurrage, detention and other revenue 10% 3+ month contracts Oceania West & Central Asia 17% 5% 15% North America Spot 26% 23% 41% Intra Asia 7% 24% 15% 14% 3% Latin America Intra Europe 1-3 month contracts Asia-Europe Africa Source: Maersk Line

41 P3 Network In June, Maersk Line, MSC and CMA CGM agreed in principle to establish a long-term operational alliance on East West trades, called the P3 Network (press release). The P3 Parties have carefully reviewed the applicable laws and are cooperating closely with competition and maritime authorities worldwide to provide the information required to obtain regulatory approval. Aim is to start operations in Q2 2014, assuming regulatory approval has been obtained by then. page 41 Proposed Network

42 Maersk Oil page 42 Maersk Oil operates production of about 600,000 barrels of oil equivalent per day from Denmark, the UK, Qatar, Kazakhstan, Brazil and Algeria. Exploration activities are ongoing in Angola, Norway, the US Gulf of Mexico, Greenland and in the producing countries. Chissonga (Angola) Area Maersk Oil has experience in geological environments such as chalk and shelf carbonates, fluvio-deltaic and deepwater clastics, and presalt. It operates in conditions ranging from the harsh Arctic climate and terrain of Greenland to the arid steppe of Kazakhstan. The company is developing expertise in difficult operating conditions such as deepwater and High Pressure, High Temperature.

43 Maersk Oil s Key Projects (as of Q3 2013) page Sanctioned development projects Project (Country) First Production Working Interest Net Capex (USD Billion) Plateau Production (Entitlement, boepd) FDP2012 (Qatar) % ,000 1 Tyra SE (Denmark) % 0.3 4,000 Golden Eagle (UK) % ,000 Jack (USA) % , Major discoveries under evaluation (Pre-Sanctioned Projects 3 ) Project (Country) First Production Working Interest Net Capex Estimate (USD Billion) Plateau Production Estimate (Entitlement, boepd) Chissonga (Angola) % TBD TBD Johan Sverdrup (Norway) % ,000 5 Culzean (UK) % ,000 Buckskin (USA) % TBD TBD 1 FDP aims at optimising recovery and maintaining a stable production plateau around 300,000 boepd. Maersk Oil s approximate production share is 100,000 boepd. 2 Phase 1 Maersk Oil estimate 3 Significant uncertainties about time frames and production forecast 4 Equity 20% of Block PL501 unitisation with PL265 is being prepared 5 Wood Mackenzie data, estimated at a 10% pre-unitisation share

44 Progress on the road to 400,000 barrels per day (Q3 2013) - A maturing project portfolio page 44 EXPLORATION Resources PROJECT MATURATION PROCESS Reserves PRODUCTION Prospects in the pipeline Initiate & Discoveries Assess Select Define Execute Assets Diamante Mangesh Torvastad Griffon Dunga III Farsund Johan Sverdrup Jack II 2 Jack I Golden Eagle Denmark Rothesay Ve (Bo) Xana Blackjack Gara Oceanographer Mulavi Swara Tika East Kopervik Isabella NW Vika Total of 100 exploration prospects and leads in the exploration pipeline Valdemar WI 2 Cubal 2 Caporolo Azul- Celeste- Turquesa Ockley 2 Tyra LE Itaipu Wahoo Quad 9 gas blow-down Buckskin Courageous Swara Tika Jackdaw Zidane Culzean Chissonga AddaTyra L Cret Elly-Luke 1 Flyndre & Cawdor Dunga Phase II Balloch 2 El Merk Tyra SE FDP Kazakhstan UK Algeria Qatar Brazil Uncertainty Total no. of projects per phase Bubble size indicates estimate of net resources: Colour indicates resource type: >100 mmboe mmboe <50 mmboe Primarily oil Primarily gas Discoveries and prospects (Size of bubbles do not reflect volumes) Arrows indicate stage gate passages since Capital Markets Day ) Elly-Luke project offshore Denmark is being reconsidered in light of the technical and economic viability 2) Not included in Capital Markets Day 2012 overview

45 Maersk Oil s share of Production and Exploration Costs page 45 Maersk Oil s share of production ( 000 boepd) DK UK Qatar Algeria Other M 2013 Maersk Oil s exploration costs** (USDm) 1,400 1,200 1, M 2013e 2013 * DUC ownership reduction occurred in Q ** All exploration costs are expensed directly unless the project has been declared commercial , ,200

46 page 46 Maersk Oil: Short-term perspectives Denmark: Field development plan for Tyra SE: drilling activities ramping-up and construction progressing Qatar: Field development plan for FDP 2012: drilling activities ramping-up and construction progressing Algeria: El Merk went on stream in Q and is ramping-up towards full production El Merk, Algeria UK: Gryphon re-started production late May 2013 and now in full production Balloch on stream in May 2013 Kazakhstan: Dunga Phase II on production

47 page 47 Maersk Oil: Long-term perspectives Denmark: Completion of service check on the 2003 North Sea agreement Provides stable and long-term framework for investments and production UK: Golden Eagle on track for production late 2014 Culzean progressing as planned US: Jack on track for production late 2014 Angola: Chissonga FDP submitted to authorities Golden Eagle, UK Norway: Brazil: Cubal exploration well discovered hydrocarbons and evaluation ongoing Several successful appraisal wells on Johan Sverdrup Wahoo and Itaipu appraisal progresses

48 APM Terminals page 48 Commercial selling our services Operations delivering our services Portfolio management developing our services Implementation constructing our services

49 page 49 APM Terminals execution on strategy Strategic aspiration by 2016 (communicated at CMD 2012) Status September 2013 Best port operator in the world ROIC remains >12% despite high investment level 8% crane productivity improvement delivered in 2012 Recognized for operational performance in Journal of Commerce - Port Productivity Report At least 50% revenue from 3 rd party customers Achieved. More attractive terminals in growth markets Commenced operations in Santos, Brazil Completed upgrade of Monrovia, Liberia Commenced expansion in Callao, Peru Commenced construction in Lazaro Cardenas, Mexico Concluded soil investigations in Moin, Costa Rica Awarded preferred bidder for second terminal in Abidjan, Ivory Coast Signed a strategic partnership agreement to create and operate the new Aegean Gateway Terminal near Izmir, Turkey Acquired a co-controlling stake in Global Ports Investments (GPI), Russia Acquisition by GPI of NCC, Russia, subject to approvals

50 APM Terminals financials including pro-rata share of joint ventures and associates page 50 Q Q (USD million) Consolidated Share of JV s & ass. Total Consolidated Share of JV s & ass. Total Revenue 1, ,419 1, ,271 EBITDA EBITDA margin 21.5% 40.7% 25.5% 21.4% 40.4% 24.7% Net result, JV s & ass NOPAT Average Gross Investment 5,739 6,649 4,457 5,130 ROIC 14.2% % 14.0% %

51 Portfolio page 51 APM Terminals has seven new terminal projects: Santos, Brazil, late 2013 Maasvlakte II, end-2014 Izmir, Turkey, 2015 Lazaro Cardenas, Mexico, 2015 Ningbo, China, 2015 Moin, Costa Rica, end-2016 Vado, Italy end-2016 and further 17 expansion projects of existing terminals in the pipeline. This combined with a young portfolio gives prospects of future growth APM Terminals Number of terminals Number of new projects Average remaining concession length in years* Russia & Baltics 6-37 Americas Europe Asia Africa Middle East Total * As of year end 2012

52 Port projects underway page 52 New terminal developments Existing terminal expansion Americas Region Lázaro Cárdenas, Mexico (TEC2) Moin, Costa Rica (Moin Container Terminal) Santos, Brazil (Brasil Terminal Portuário) Asia-Pacific Region Ningbo, China (Meishan Container Terminal Berths 3, 4, and 5) Americas Region Buenos Aires, Argentina (Terminal 4) Callao, Peru (APM Terminals Callao) Itajai, Brazil (APM Terminals Itajai) Pecém, Brazil (Ceará Terminal Operator) Asia-Pacific Region Pipavav, India (APM Terminals Pipavav) Tanjung Pelepas, Malaysia (Port of Tanjung Pelepas) Qingdao, China (Qingdao New Qianwan Container Terminal) Europe Region Izmir, Turkey (Aegean Gateway Terminal) Rotterdam, Netherlands (Maasvlakte 2) Savona-Vado, Italy (Vado-Ligure) Europe Region Algeciras, Spain (APM Terminals Algeciras) Gothenburg, Sweden (APM Terminals Gothenburg) Port Said East, Egypt (Suez Canal Container Terminal) Poti, Georgia (APM Terminals Poti) Africa-Middle East Region Apapa, Nigeria (APM Terminals Apapa) Aqaba, Jordan (Aqaba Container Terminal) Luanda, Angola (Luanda Container Terminal) Monrovia, Liberia (APM Terminals Monrovia) Pointe Noire, Republic of the Congo (Congo Terminal S.A.)

53 Maersk Drilling page 53 Founded 1972 Revenue in 2012 (USDm) 1,683 3,600 employees 638 EBITDA in 2012 (USDm) Rig fleet (existing and newbuilds) 16+7 Net Operating Profit After Tax in 2012 (USDm) 347 Note: Figures stated using 2013 accounting policies

54 Managing the newbuild programme page 54 Expected delivery schedule XL Enhanced I XL Enhanced II XL Enhanced III XL Enhanced IV Deepwater Advanced I Deepwater Advanced II Deepwater Advanced III Deepwater Advanced IV Keppel FELS Keppel FELS Keppel FELS Daewoo Daewoo Samsung HI HI Samsung HI HI Samsung Samsung HI HI Samsung Samsung HI HI XL Enhanced I under construction at Keppel FELS The newbuild programme is on budget, but delivery of the first rigs will be slightly delayed Four jack-up rigs and four drillships under construction Long term contracts secured for six of the eight new builds First delivery in early 2014

55 Full utilisation of Maersk Drilling s rigs in 2013 and continued strong operational uptime page 55 Contracted days (left) and coverage % (right) Operational uptime* 1,500 1, % 94% 100% 80% 94% 96% 96% 92% 96% 96% 98% % 60% % 40% % 20% Q Q Q Q Q Q Q Q Q Q3 70% 0% Q1 2013Q2 2013Q *Operational availability of the rig

56 High forward contract coverage reflecting solid demand for high end assets page page Maersk Drilling forward contract coverage 100% 80% 100% 90% 60% 61% 40% 45% 20% 0% Note: As per end of Q3 2013

57 page 57 Long term EBITDA margin set to improve EBITDA Margin (2009 Q3 2013) Improving long term EBITDA margin 60% 50% 40% Improving operational efficiency Investing in high margin assets Focusing on attractive industry segments and geographies Optimising asset portfolio 30% H Q Maersk Drilling Competitor average Top quartile Note: Maersk Drilling figures stated using 2013 accounting policies Note: Competitors include Atwood Oceanics, Diamond Offshore, Ensco, Noble, Rowan, Seadrill and Transocean Source: Company reports, Maersk Drilling

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