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Bond Investor Presentation – Maersk Oil

Maersk Oil · Feb 27, 2018 · 55 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Bond Investor Presentation – Maersk Oil – slide 1
    A.P. MLLER - MRSK A/S BOND INVESTOR PRESENTATION FEBRUARY 2018
  2. Bond Investor Presentation – Maersk Oil – slide 2
    Agenda 1 Corporate overview 2 Financial highlights 3 Strategy update 4 Market overview 5 Business segments continuing operations 6 Funding
  3. Bond Investor Presentation – Maersk Oil – slide 3
    A.P. Moller - Maersk at a glance Established 1904: 110+ years of financial strength. Headquartered in Copenhagen, Denmark. An integrated transport and logistics business. The worlds largest container shipping company for more than…
  4. Bond Investor Presentation – Maersk Oil – slide 4
    5 The new APMM: An integrated transport & logistics company Focus on growth and synergies 1 Global container liner by Services around 60 shipping One of the leading 4PL The leading company in the Maersk Container Industry TEU…
  5. Bond Investor Presentation – Maersk Oil – slide 5
    Agenda 1 Corporate overview 2 Financial highlights 3 Strategy update 4 Market overview 5 Business segments continuing operations 6 Funding
  6. Bond Investor Presentation – Maersk Oil – slide 6
    7 Highlights for 2017 Transforming the company Operational rebound despite challenges Overcoming the cyber-attack APMM made progress towards becoming an Market fundamentals were strong throughout In June, we experienced a…
  7. Bond Investor Presentation – Maersk Oil – slide 7
    8 Full Year 2017 Financial highlights Cash flow USDm USDm 2016 2017 2016 2017 35,000 7,000 6,187 30,945 30,000 27,266 5,000 25,000 4,151 Hamburg Sd 3,000 2,596 2,073 20,000 1,264 15,000 1,000 2,036 10,000 -1,000 -809 5,000…
  8. Bond Investor Presentation – Maersk Oil – slide 8
    9 Financial guidance for 2018 and long term targets Guidance for 2018 Sensitivity guidance A.P. Moller - Maersk expects an underlying profit above 2017 (USD 356m) and A.P. Moller - Maersks guidance for 2018 is subject to considerable…
  9. Bond Investor Presentation – Maersk Oil – slide 9
    Agenda 1 Corporate overview 2 Financial highlights 3 Strategy update 4 Market overview 5 Business segments continuing operations 6 Funding
  10. Bond Investor Presentation – Maersk Oil – slide 10
    11 Delivering on stated strategy TRANSPORT & LOGISTICS ENERGY In December 2016, we announced our vision: Maersk to become the global APMM has made progress in separating its energy-related businesses: integrator of container…
  11. Bond Investor Presentation – Maersk Oil – slide 11
    12 The global integrator of container logistics Leveraging existing strong positions throughout the value chain Supplier Unique starting point to create a truly integrated transport & logistics company Increased terminal…
  12. Bond Investor Presentation – Maersk Oil – slide 12
    13 Expected synergies Synergies from integration of transport and logistics businesses Synergies from Hamburg Sd USDm 400 350-400 300 USD 0.6bn USD 0.1bn 200 120 100 2019 target 2017 achievement 0 0 2017 2018 2019 59…
  13. Bond Investor Presentation – Maersk Oil – slide 13
    14 Digitisation Our pipeline includes a broad selection of digital initiatives Improve customer Improve cost and Develop new revenue experience asset productivity sources my.maerskline.com Spotlanes Global Trade Digitisation…
  14. Bond Investor Presentation – Maersk Oil – slide 14
    15 Executing on separation strategy Energy proceeds from announced transactions USDbn 10 1.2 8 0.6 3.7 6 5.0 4 5.5 2 2.5 0 Maersk Oil Maersk Oil Total S.A. Maersk Tankers EV from announced transactions (Cash…
  15. Bond Investor Presentation – Maersk Oil – slide 15
    Agenda 1 Corporate overview 2 Financial highlights 3 Strategy update 4 Market overview 5 Business segments continuing operations 6 Funding
  16. Bond Investor Presentation – Maersk Oil – slide 16
    17 Container shipping market Freight rates have increased from historically low levels Nominal supply growth increasing in Q4 2017 Growth y/y, (%) Index China Containerized Freight Index 10% 2.9% 8.7% 8.5% 1400 8% 7.3% 7.9% 7.2%…
  17. Bond Investor Presentation – Maersk Oil – slide 17
    18 The liner industry is consolidating and the top 5 share is growing Consolidation wave is rolling again 8 top 20 players disappeared in the last 2 years 96 98 00 02 04 06 08 10 12 14 16 18 Wave 3 Wave 2 Wave 1 27% 31% 36%…
  18. Bond Investor Presentation – Maersk Oil – slide 18
    19 Container terminal market Development in volumes Regional split of volumes 800 25% 2% 4% 600 15% 6% 8% Asia/Middle East 400 5% Europe N America 200 -5% 15% C+S America 0 -15% 65% Africa 2009 2010 2011 2012 2013 2014 2015 2016…
  19. Bond Investor Presentation – Maersk Oil – slide 19
    Agenda 1 Corporate overview 2 Financial highlights 3 Strategy update 4 Market overview 5 Business segments continuing operations 6 Funding
  20. Bond Investor Presentation – Maersk Oil – slide 20
    21 Maersk Line Highlights Q4 Revenue Underlying profit/loss (USD m) Excluding Hamburg Sd 63 Maersk Line reported a profit of USD 91m with a ROIC of 1.8% in Q4 2017. Q4 2017 Q4 2016 -155 Revenue increased by 14% compared Market…
  21. Bond Investor Presentation – Maersk Oil – slide 21
    22 Maersk Line Highlights Q4 Increased freight rates and volumes Average freight rate (USD/FFE) Q4 2017 Q4 2016 Change, USD Change, % East-West 2,016 1,929 87 4.5 North-South 2,094 1,914 180 9.4 Average freight rates increased…
  22. Bond Investor Presentation – Maersk Oil – slide 22
    23 Maersk Line Highlights Q4 Volumes recovery partly offset by increasing bunker cost USD million Q4 2017 Q4 2016 FY 2017 FY 2016 Revenue 6,070 5,321 23,793 20,715 EBITDA 581 349 2,631 1,525 Bunker cost increased by 35% to USD…
  23. Bond Investor Presentation – Maersk Oil – slide 23
    24 Maersk Line Highlights Q4 Improvements in unit cost led to similar levels as in Q4 2016 USD/FFE Unit cost including VSA income, floating bunker USD/FFE Unit cost including VSA income, fixed bunker1 2,700 3,200 2,871 2,600…
  24. Bond Investor Presentation – Maersk Oil – slide 24
    25 Maersk Line Highlights Q4 Hamburg Sd joins Maersk Hamburg Sd P&L* (excl. tramp business) As of 1st December 2017, Hamburg Sd is a fully owned USD million 2013 2014 2015 2016 2017 subsidiary of Maersk Line A/S. As such, its results…
  25. Bond Investor Presentation – Maersk Oil – slide 25
    26 APM Terminals Highlights Q4 Revenue Underlying profit/loss (USD m) APM Terminals reported a profit of USD 108m, and a 115 ROIC of 5.3%, positively impacted by an increase in volumes of 6.8% compared to Q4 2016. Market recovery…
  26. Bond Investor Presentation – Maersk Oil – slide 26
    27 APM Terminals Highlights Q4 Slightly above market growth Terminal revenue per move increased by 2% in Q4 USD million Q4 2017 Q4 2016 FY 2017 FY 2016 2017 compared to Q4 2016, mainly due to a Revenue 1,117 1,088 4,138 4,176…
  27. Bond Investor Presentation – Maersk Oil – slide 27
    28 APM Terminals Highlights Q4 Container throughput by geographical region Geographical split of terminals Equity weighted crane lifts, % 25 16% 1 18% 20 Africa & Middle 3 Americas 1 East 15 Total throughput 23 10 19 of 39.7m…
  28. Bond Investor Presentation – Maersk Oil – slide 28
    29 APM Terminals Highlights Q4 74 terminals worldwide Terminals under implementation... Project Opening APM Terminals share of total investment Moin, Costa Rica 2019 USD 1.0bn Tema, Ghana 2019 USD 0.3bn TM2, Tangier 2019 USD…
  29. Bond Investor Presentation – Maersk Oil – slide 29
    30 DAMCO Highlights Q4 Revenue Underlying profit/loss (USD m) Damco increased revenue by 12% from Q4 2016 to USD 737m, however reported a loss of USD 21m, which was related to increasing costs from product investments and…
  30. Bond Investor Presentation – Maersk Oil – slide 30
    31 Svitzer Highlights Q4 Revenue Underlying profit/loss (USD m) Svitzer reported a profit of USD 26m, with a ROIC of 7.9%, positively affected by increased volumes in 26 Europe and Americas as well as new terminal projects. Q4 2017…
  31. Bond Investor Presentation – Maersk Oil – slide 31
    32 Maersk Container Highlights Q4 Industry (MCI) Revenue Underlying profit/loss (USD m) 1 Maersk Container Industry reported a profit of USD 1m and a ROIC of 1.4% in Q4, driven by increased prices and higher volumes in dry…
  32. Bond Investor Presentation – Maersk Oil – slide 32
    Agenda 1 Corporate overview 2 Financial highlights 3 Strategy update 4 Market overview 5 Business segments continuing operations 6 Funding
  33. Bond Investor Presentation – Maersk Oil – slide 33
    34 A strong financial framework We are committed to remain investment grade rated Net interest-bearing debt (NIBD) increased by USD 2.4bn in Q4 USDbn USDbn 1.2 4.2 1.0 20 125% 0.7 14.9 16 100% 12.5 0.8 0.1 15.3 14.9 12 14.0 75%…
  34. Bond Investor Presentation – Maersk Oil – slide 34
    35 Deleveraging from Energy separation NIBD and separation of energy-related businesses USDbn 16 14 0.8 12 10 4.4 8 14.9 13.2 6 Total S.A. shares 5.5 (current value) 4 2 2.5 Cash 0 NIBD Q4 17 Maersk Oil proceeds…
  35. Bond Investor Presentation – Maersk Oil – slide 35
    36 Flexible capex process Contractual capex commitments reduced by USD 1.5bn1 Development in gross capital expenditure2 USDbn USDbn 6 4 3.7 3.5 3.7 5 3.1 3.0 3.9 Total 3 4 Other 0.2 3 2 5.4 5.3 5.0 5.4 5.2 2.1 Terminals 4.9 2 4.1…
  36. Bond Investor Presentation – Maersk Oil – slide 36
    37 Measures in place to improve free cash flow Cash flows for continuing operations1 Gross capital expenditures for continuing operations2 Grow slightly below market Hamburg Sd Synergies Lower unite costs USDbn 4 3.7 3.6 3.5 USD…
  37. Bond Investor Presentation – Maersk Oil – slide 37
    38 Financial policy & funding strategy We are committed to remain investment grade rated and will take the required measures to defend our A.P. Moller - Maersks investment grade rating. rating policy BBB (CreditWatch Negative) and…
  38. Bond Investor Presentation – Maersk Oil – slide 38
    39 Diversified debt portfolio Loan maturity profile Public debt capital markets USDbn USDbn 10 3 8 2 6 4 1 2 0 0 2018 2019 2020 2021 2022 2023 2024 2025 2026+ 2018 2019 2020 2021 2022 2023 2024 2025 2026+ Drawn Debt Corporate…
  39. Bond Investor Presentation – Maersk Oil – slide 39
    40 APMMs return to the bond market We expect APMM to continue to access the bond markets in the future Approximately USD 8bn of bonds currently outstanding in the debt capital markets. Upcoming maturities in 2019 in EUR (USD…
  40. Bond Investor Presentation – Maersk Oil – slide 40
    41 Operating lease obligations end-2017 Operating lease payments Adjusted net debt USDbn USDbn 6 25 5 20 8.8 4 2.6 15 3 23.7 10 2 17.5 14,9 14.9 17.5 1 5 0 0 2018 2019 2020 2021 2022 After 2022 Gross debt Total interest- Net…
  41. Bond Investor Presentation – Maersk Oil – slide 41
    42 Ownership & dividend policy Summary The Foundation The Family Foundation The shares are listed on NASDAQ Copenhagen and are divided into two classes: A.P. Mller og Hustru Chastine Mc-Kinney Mllers Fond til almene Formaal, A shares…
  42. Bond Investor Presentation – Maersk Oil – slide 42
    43 Summary SUMMARY Focused on becoming an integrated transport and logistics company. Business portfolio Competitive advantages due to large scale and industry leadership in transportation. World leading in container shipping and…
  43. Bond Investor Presentation – Maersk Oil – slide 43
    APPENDIX
  44. Bond Investor Presentation – Maersk Oil – slide 44
    45 Financial highlights for Q4 2017 Revenue and earnings growth Cash flow impacted by delivery of vessels USDm USDm Q4 2016 Q4 2017 Q4 2016 Q4 2017 9,000 5,000 8,174 4,041 8,000 7,076 4,000 7,000 3,000 6,000 2,000 1,171 5,000…
  45. Bond Investor Presentation – Maersk Oil – slide 45
    46 Energy Entities to continue to operate separately pending divestment Mid sized independent E&P Leading global operator of high One of the largest companies in The leading high-end company in company with an entitlement…
  46. Bond Investor Presentation – Maersk Oil – slide 46
    47 Maersk Line Capacity market share by trade No. 2 Pacific Atlantic Intra Europe Asia-Europe 10% No. 3 14% No. 3 16% 21% No. 1 No. 1 No. 2 Maersk Line is the worlds largest container Intra America Intra Asia No. 1 No. 1 No.…
  47. Bond Investor Presentation – Maersk Oil – slide 47
    48 Maersk Line We continue to optimise the network TEUm 4 450 391 400 389 3 336 347 350 Maersk Line aims to continuously adjust capacity to match demand and 325 326 optimise utilisation. 299 305 300 285 292 287 277 292…
  48. Bond Investor Presentation – Maersk Oil – slide 48
    49 Maersk Line Q4 2017 freight rates up 7.2% from Q4 2016 Freight rates Freight rates USD 000s/FFE Q1 2016 = 100 2.400 140 2.200 130 2.000 120 1.800 110 1.600 100 1.400 90 1.200 80 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017…
  49. Bond Investor Presentation – Maersk Oil – slide 49
    50 Maersk Drilling Highlights Q4 Revenue Underlying profit/loss (USD m) Discontinued operations held for sale Maersk Drilling reported a profit of USD 98m in Q4 98 2017, positively impacted by the reversal of Q4 2017 Q4 2016…
  50. Bond Investor Presentation – Maersk Oil – slide 50
    51 Maersk Drilling Highlights Q4 New contracts and extensions of USD 879m were signed in Q4 2017 Maersk Drilling performed strongly during the quarter, adding 3,871 days and USD 879m to its USD million Q4 2017 Q4 2016 FY 2017 FY 2016…
  51. Bond Investor Presentation – Maersk Oil – slide 51
    52 Maersk Supply Service Highlights Q4 Revenue Underlying profit/loss (USD m) Discontinued operations held for sale -200 Maersk Supply Service reported revenue of USD 60m driven by lower rates due to fewer legacy contracts, a…
  52. Bond Investor Presentation – Maersk Oil – slide 52
    53 Consolidated financial information Income Statement (USD m) Q4 2017 Q4 2016 FY 2017 FY 2016 Revenue 8,174 7,076 30,945 27,266 EBITDA 844 589 3,532 2,475 Depreciation, impairments etc. 709 644 3,015 2,495 Gain on sale of…
  53. Bond Investor Presentation – Maersk Oil – slide 53
    54 One profit and loss statement four segments Disclosure from first quarter 2018 Segments from first quarter 2018 Consolidated financials: One profit and loss statement One balance sheet Segment Definition One cash flow…
  54. Bond Investor Presentation – Maersk Oil – slide 54
    55 The Executive Board Acts as the daily management of the company Sren Skou CEO of A.P. Mller - Mrsk A/S CEO of the Transport & Logistics Division Joined Maersk in 1983 Claus V. Jakob Stausholm Vincent Clerc Morten H. Sren…
  55. Bond Investor Presentation – Maersk Oil – slide 55
    56 Additional notes Slide 25: The presented pro forma figures for Hamburg Sd are adjusted for translation of prior German GAAP accounting figures to IFRS for the most material areas. Due to impracticalities, revenue recognition and…

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