Title of presentation page 1 A.P. Mller Mrsk A/S Bankers and Insurers Day 2014 9 April 2014, Copenhagen
Agenda 14.00 Welcome - by Jan B. Kjaervik 14.10 The A.P. Moller - Maersk Group 2013 financials & strategic direction - by Trond Westlie 14.50 Group Finance & Risk Management direction for 2014 - by Jan B. Kjaervik 15.25 APM…
Welcome page 4 Purpose of the day General update on State of the Nation in APMM and our strategic direction Guiding on what we are focusing on in GFRM to enable relevant discussions with you as our financial stakeholders Deep…
Welcome page 5 APMM representatives today A.P. Moller - Maersk Group Trond Westlie, Group CFO Kim Fejfer, CEO APM Terminals Francois Delenclos, Vice President APM Terminals Carsten Plougmann Andersen, CEO Maersk Supply Service…
Practicalities Emergency exit There are no planned fire drills today. If the alarm goes off please follow the APMM staff to the escape exits. Muster point is at the water fountain at the front of Esplanaden. Name tag This will be your…
2013 financials & strategic direction Trond Westlie, Group CFO A.P. Mller - Mrsk A/S Bankers and Insurers Day 9 April 2014, Copenhagen
Financials and strategic direction page 8 Becoming a premium conglomerate The Group will create value through profitable growth The Group has the ambition to grow invested capital by around 30% by 2017 (baseline 2012) The Group…
Financials and strategic direction page 9 We have taken important steps in our journey Where we came from Where we are now Where we want to be Maersk Line dominated Business units are stand Premium conglomerate the group alone…
Financials and strategic direction page 10 We want to be a premium conglomerate - By building five world-class business units Core businesses Maersk Supply Maersk Tankers Service DAMCO Svitzer Services & Other Maersk…
Financials and strategic direction page 11 Understanding the business portfolio - Business risk and cash flow generation Historical volatility and correlation (NOPAT) Steady cash flow generation USD bn Maersk Line and Maersk…
Financials and strategic direction page 12 Group financial highlights 2013 - A good year in challenging markets Group financial highlights for 2013 Underlying profit by activity* for 2013 USD million USD million 2012 2013 2012 2013…
Financials and strategic direction page 13 Maersk Line results Continued network optimization Q4 Q4 FY FY Weekly long haul carrying capacity (000 FFE / week) (USD million) Indexed 2013 2012 2013 2012 Revenue 6,450 6,522 26,196 27,117…
Financials and strategic direction page 15 APM Terminals results Volume growth and underlying ROIC development Q4 Q4 FY FY (USD million) 2013 2012 2013 2012 15% Revenue 1,102 1,042 4,332 4,206 EBITDA 231 181 892 871 10% Associated…
Financials and strategic direction page 16 Maersk Drilling results Contracted days (left) and coverage % (right) Q4 Q4 FY FY (USD million) 1,500 Coverage 100% 2013 2012 2013 2012 Revenue 473 440 1,972 1,683 1,200 94% EBITDA 165…
Financials and strategic direction page 17 Services & Other Shipping results Underlying profit by activity FY 2013* 2012 2013 230 Services & Other Shipping 342 143 Maersk Supply Service 230 -80 Maersk Tankers 8 50…
Financials and strategic direction page 18 Outlook for 2014 The Group expects a result significantly above the 2013 result (USD 3.8bn) impacted by the sale of Dansk Supermarked Group. The underlying result is expected to be in line…
Financials and strategic direction page 19 Cash flow supported by active portfolio management Cash flow from divestments has been USD 6.9bn with divestment gains of USD 1.8bn pre-tax from since 2009 USDbn 3.3 3.5 3.0 2.5 2.0…
Financials and strategic direction page 20 Focus on performance Breakdown of ROIC by business Business Invested ROIC % ROIC % capital FY 2013 FY 2012 (USDm) Group 54,630 8.2% 8.9% Maersk Line 20,046 7.4% 2.3% Maersk Oil 6,478…
Financials and strategic direction page 21 Investment process of the Group Communicated externally, secured internally APMMs Operating System STRATEGIC COMMERCIAL REVIEW REVIEW Strategy and Strategic review and capital…
Financials and strategic direction page 22 Capital allocation in line with strategy Development in invested capital since Q2 2012 Invested capital 2013 APM Terminals 41% Maersk Line Maersk Drilling 35% 12% Maersk Oil Group 4% 12%…
Financials and strategic direction page 23 Priorities for execution in 2014 Maersk Line Keep EBIT-margin advantage to industry of above 5% Manage capacity and maintain market share Maersk Oil Deliver progress on key projects…
Q&A
Group Finance & Risk Management direction 2014 Jan B. Kjaervik, Head of Group Finance and Risk Management A.P. Mller - Mrsk A/S Bankers and Insurers Day 9 April 2014, Copenhagen
Title of presentation page 26 Agenda 1 GFRM introduction 2 Debt and liquidity management 3 Risk Management 4 GFRM focus areas 2014 5 Expectations to financial stakeholders
GFRM Introduction page 27 APMM How is the GFRM team organized Role of Group Finance and Risk management with 60 employees in Copenhagen and Singapore: Optimise liquidity/debt position and risk management of the Group Funding and…
Debt and liquidity management page 28 A strong financial framework Well capitalised position Conservative leverage Net debt reduction of USD 2.9bn since 2012** Net debt to EBITDA ratio at historical range of 0.5x-1.5x Net…
Debt and liquidity management page 29 Diversification of funding sources Maersk credit spreads Credit rating Maersk 10/30/14 Maersk 11/24/17 Maersk 8/28/19 In September 2013, Moodys Investors Service and Standard & 200 Poors…
Risk management page 30 Our ERM initiative has now become an integrated part of the Groups strategy Enterprise Risk Management (ERM) developed from internal control focused to create shareholder value by: Integrating ERM in strategy…
Risk management page 31 Our risk financing strategy in action The strategy is supported by measurable and tangible targets TOTAL COST OF RISK reduced by 35% (USD 130m) over the last 3 years Year/MM USD BU retained losses MIAS…
Risk management page 32 Maersk Insurance A/S (MIAS) MIAS is our risk retention vehicle as key driver in TCOR Main program structure Performance Solvency Ratio Energy / Marine / Terminal USD 000 2013 2012 200% Net Premium 50.797…
GFRM focus areas 2014 page 33 GFRM focus areas 2014 Where can you provide service for A.P. Mller - Mrsk A/S Optimise liquidity/debt position and risk management of the Group Funding Risk Management Market intelligence Further develop…
Expectations to financial stakeholders page 34 What do we want from our financial stakeholders We value fast and efficient processes and proactive advice based on our needs We are much more simple than you think; we want it easy and…
Q&A
APM Terminals A leading port operator and investor Kim Fejfer, CEO Francois Delenclos, Vice President A.P. Moller - Maersk A/S Bankers and Insurers Day A.P. Mller2014, 9 April - Mrsk A/S Bankers and Insurers Day Copenhagen 9 April…
APM Terminals A leading port operator and investor page 37 APM Terminals today a true global company 20,300 employees in 68 countries 65 operating ports 7 new port projects 166 inland locations 2013 Performance 36.3 mill…
APM Terminals A leading port operator and investor page 38 The financial crisis in 2008/09 has fundamentally changed our industry Global container throughput (mTEU) 800 High growth 700 Mature 600 500 400 300 200 100…
APM Terminals A leading port operator and investor page 39 Our customers are now more focused on scale and efficiencies 39
APM Terminals A leading port operator and investor page 40 We responded with our WINN strategy and an ambition to reach USD 1 billion by 2016 Execute strategic plan to become the best in the industry ... ... and achieve our…
APM Terminals A leading port operator and investor page 41 We will pursue future value creation relying on our global network of terminals, our relations and our core capabilities Improve Safety Lift Commercial and Operational…
Pursuing Profitable Growth
APM Terminals A leading port operator and investor page 43 We have had good success recently capturing growth opportunities in our industry Buenos Aires APMT DPW Kolkata Busan HPH Buenos Aires Vung Tau Rijeka PSA ICTSI…
APM Terminals A leading port operator and investor page 44 Asset prices can vary quite considerably. Caution required Port sector M&A transaction multiples (EV/EBITDA, 2005-2014) 35 x Maher (32x) 30 x Port of Brisbane 25 x Port…
APM Terminals A leading port operator and investor page 45 Caution also required for the terms that we are committing to. A key though fairly unspoken characteristic of how we do business West Africa Forward looking transshipment…
APM Terminals A leading port operator and investor page 46 Our value proposition is to bring to bear capital, key relationships, a track record of building container ports and qualified people able to work in tough locations Why us…
APM Terminals A leading port operator and investor page 47 We bring solid value to high growth regions through infrastructure investments 2010 Monrovia 2008 Santos 2013 2014 47
APM Terminals A leading port operator and investor page 48 In more mature markets new automation standards can make a difference 2009 2010 2011 2012 2013 2014 48
APM Terminals A leading port operator and investor page 49 Our pipeline of expansions and new constructions is well diversified Gothenburg GPI integration Poti Maasvlakte II Expansion Acquisition Brownfield Automated Greenfield To…
APM Terminals A leading port operator and investor page 50 Functional core capabilities sit at the center. Proximity to the key markets is maintained through 3 satellite offices Investment criteria The Hague (Global HQ) High growth…
APM Terminals A leading port operator and investor page 51 The future holds many different kinds of opportunities to pursue profitable growth going forward, both in mature as well as in fast growing markets Mature markets Fast…
Thank you Q&A
Agenda 14.00 Welcome - by Jan B. Kjaervik 14.10 The A.P. Moller - Maersk Group 2013 financials & strategic direction - by Trond Westlie 14.50 Group Finance & Risk Management direction for 2014 - by Jan B. Kjaervik 15.25 APM…
Maersk Supply Service Carsten Plougmann Andersen, CEO Martin Larsen, CFO A.P. Mller - Mrsk A/S Bankers and Insurers Day 9 April 2014, Copenhagen
Maersk Supply Service Strategy update page 55 APMM company profile Maersk Line Maersk Oil APM Terminals Maersk Drilling Services & other shipping Self-funded 400,000 boepd USD 1bn NOPAT USD 1bn NOPAT USD 0.5bn NOPAT EBIT…
Maersk Supply Service Strategy update page 56 Solid contributor to Services & Other Shipping Revenue 930 Revenue 1,625 Segment result 235 Segment result -317 Services & other shipping Revenue 831 USD 0.5bn NOPAT Revenue…
Maersk Supply Service Strategy update page 57 Operations spread across the globe Where do we operate What do our vessels look like - 2150 employees (1900 seafarers and 250 onshore) - 61 Vessels - Offices in Copenhagen, Angola,…
Maersk Supply Service Strategy update page 58 Operations spread across the globe Where do we operate What do our vessels look like - 2150 employees (1900 seafarers and 250 onshore) - 61 Vessels - Offices in Copenhagen, Angola,…
Maersk Supply Service Strategy update page 59 Operations spread across the globe Where do we operate What do our vessels look like - 2150 employees (1900 seafarers and 250 onshore) - 61 Vessels - Offices in Copenhagen, Angola,…
Maersk Supply Service Strategy update page 60 Diverse fleet with focus on high-end segments 10 Platform Supply Vessel 45 Anchor Handling Tug Vessels 6 Subsea Support Vessel Typical Up to 10.000m 500 1.500m 1.000 2.000m Operating…
Maersk Supply Service Strategy update page 61 We operate in the high-end segments of the industry High ILLUSTRATIVE value add Service offering Broad service offering Tailored solutions High capability crews and strong…
Maersk Supply Service Strategy update page 62 Top 10 customers totalled 69% of turnover in 2013 Top 10 Top 5
Maersk Supply Service Strategy update page 63 Our strategy 0 Incidents and +10% return Safety first Zero incidents Profitability +10% return Industry leader Market position (Focus on profitable growth regions) Fleet…
Maersk Supply Service Strategy update page 64 Strong safety and environmental performance Aiming for incident free operations by continuing development of crew mindset and safety performance 2013 (Q1-Q3) showed the longest LTI…
Maersk Supply Service Strategy update page 66 Top quartile performer in the industry Our ambition is to outperform competitors over the cycle and being industry leading company to premium customers in AHTS and SSV high-end…
Maersk Supply Service Strategy update page 67 Growing high-end AHTS and SSV fleet Fleet composition We aim for an agile fleet fit and equipped for high- of vessels end AHTS, SSV and specialised PSV 100 Renew AHTS fleet and…
Maersk Supply Service Strategy update page 68 Well positioned with best crew in the industry Continuously developing our organisation for future requirements We have the right talent in place today We want to: Continue to…
Maersk Supply Service Strategy update page 69 Strong financial performance in 2013 Income statement Balance sheet & cash flow USDm 2013 2012 USDm 2013 2012 Revenue 772 749 EBITDA 349 264 Invested capital 1,699 1,824 EBIT 207 105…
Maersk Supply Service Strategy update page 70 Positive market outlook for SSV and AHTS segments Installation of Christmas Trees Rigs in North Sea (in service) 1.000 60 900 +7% 50 800 +9% 700 +4% 40 600 500 30 400 20 300…
Maersk Supply Service Strategy update page 71 Newbuilds on the way Moose (I+II) Seal
Maersk Supply Service Strategy update page 72 Concluding remarks We are a strong company... Strong safety records and skilled, experienced, well trained crew Historically outperforming market average returns (10.9% ROIC 09-13)…
Thank you Q&A
Unlocking growth for society and Maersk Annette Stube, Head of Group Sustainability Annette Stube, Head of Group Sustainability A.P. Mller - Mrsk A/S Bankers and Insurers Day 9 April 2014, Copenhagen A.P. Moller - Maersk A/S Bankers and…
Unlocking growth for society and Maersk page 75 Agenda Why sustainability is relevant for Maersk The task of integrating sustainability into the business A new strategy and direction
Unlocking growth for society and Maersk page 76 A.P. Mller - Mrsk Group Operates mainly in the shipping and energy industries Company facts 89,000 employees 135 countries Maersk Line APM Terminals 47bn revenue 3,8bn profit…
Unlocking growth for society and Maersk page 77 Legality and legitimacy - moving targets Social Frontier Society Business Law Law contract expectations Source: McKinsey
Unlocking growth for society and Maersk page 78 Material issues Corruption Importance to our stakeholders Major oil spills Supplier conduct Diversity & inclusion Transparency and Personal safety Tax Labour standards…
Unlocking growth for society and Maersk page 79 Sustainability strategy 20102013 Goal: Integrate sustainability systematically into business processes and make sustainability a competitive advantage Group programmes and minimum…
Unlocking growth for society and Maersk page 80 How we govern sustainability 84% employees agree that my company is making a genuine effort to be socially and environmentally responsible
Unlocking growth for society and Maersk page 81 Accelerating the positive impacts of our business
Unlocking growth for society and Maersk page 82 Sustainability strategy 2014 - 2018 Enabling trade Sweet spots for Volume unlocking growth Economic growth for society and Maersk Energy efficiency Investing in education…
Unlocking growth for society and Maersk page 83 Working outside our Increasing value operational sphere exponentially The new strategic direction addresses systemic When industry-wide and social challenges affecting us challenges…
Unlocking growth for society and Maersk page 84 Using our expertise to unlock growth for society and Maersk
Thank you Q&A
Agenda 14.00 Welcome - by Jan B. Kjaervik 14.10 The A.P. Moller - Maersk Group 2013 financials & strategic direction - by Trond Westlie 14.50 Group Finance & Risk Management direction for 2014 - by Jan B. Kjaervik 15.25 APM…
Practicalities Name tag This will be your entry ticket for Tivoli Please keep this on at all time Bus Busses to pick us up outside the reception transportation Dinner venue: Tivoli (main entrance) Tivolis Vesterbrogade 3, 1630…
Thank you
Title of presentation page 89 A.P. Mller Mrsk A/S Esplanaden 50 1098 Copenhagen K Denmark www.maersk.com
Loading...
