XCSE:MAERSK-B ESEF Report
A.P. MØLLER - MÆRSK A/S (XCSE:MAERSK-B)
ESEF Report
2021-10-07
For: 2021-06-30
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A.P . Møller - Mærsk A/S | Interim Report | 6 August 2021 Esplanaden 50, DK-1263 Copenhagen K 
A.P . Møller - Mærsk A/S (further referred to as 
The Board of Directors and the Executive Board have today discussed and approved the Interim Report of A.P. Møller - Mærsk A/S for the period 1 January 2021 to 30 June 2021. The Interim Report has not been audited or reviewed by the com- pany’s independent auditors. The Interim Report has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU and additional Danish disclosure requirements for interim financial reporting of listed companies. In our opinion, the interim consolidated financial statements (pages 21-31) give a true and fair view of A.P. Moller - Maersk’s con- solidated assets, liabilities and financial position at 30 June 2021 and of the results of A.P. Moller - Maersk’s consolidated operations and cash flows for the period 1 January to 30 June 2021. Furthermore, in our opinion, the Directors’ report (pages 3-19) includes a fair review of the development in A.P. Moller - Maersk’s operations and financial conditions, the results for the period, cash flows and financial position as well as a description of the most significant risks and uncertainty factors that A.P. Moller - Maersk faces, relative to the disclosures in the annual report for 2020. Copenhagen , 6 August 2021 Søren Skou — CEO Patrick Jany — CFO Vincent Clerc Morten Engelstoft Henriette Hallberg Thygesen Jim Hagemann Snabe — Chairman Ane Mærsk Mc-Kinney Uggla — Vice Chairman Bernard L. Bot Marc Engel Arne Karlsson Thomas Lindegaard Madsen Blythe S. J. Masters Amparo Moraleda Jacob Andersen Sterling Robert Mærsk Uggla 
/ Registration no. 22756214
ALL THE WAY
2021
Q2
Table of contents
Contacts for further information
Søren Skou, CEO
Tel. +45 3363 1901
Patrick Jany, CFO
Tel. +45 3363 3106
Investors
Stig Frederiksen, Head of Investor Relations
Tel. +45 3363 3106
Media
Signe Wagner, Head of External Relations
Tel. +45 3363 1901
The Q3 2021 Interim Report is expected
to
be announced on 2 November 2021.
Webcast and dial-in information
A webcast relating to the Q2 2021 Interim Report
will be held on 6 August 2021 at 11.00 (CET).
Dial-in infor mation on investor.maersk.com.
Presentation material for the webcast will be
available on the same page.
The Interim Report for Q2 2021 of
A.P. Moller - Maersk as the consolidated group
of companies) has been prepared in accordance
with IAS 34 ‘Interim Financial Reporting’ as issued
by the International Accounting Standards Board
(IASB) and adopted by the EU and additional Danish
disclosure requirements for interim financial
reporting of listed companies.
The interim consolidated financial statements
have not been subject to audit or review.
Comparative figures
Unless otherwise stated, all figures in parentheses
refer to the corresponding figures for the same
period prior year.
Forward-looking statements
The interim report contains forward-looking state-
ments. Such statements are subject to risks and
uncertainties as numerous factors, many of which
are beyond the control of A.P. Moller - Maersk, may
cause the actual development and results to dif-
fer materially from expectations contained in the
interim report.
3 Directors’ Report
Message from the CEO
Highlights Q 021
Summary financial information
Financial review
Guidance for 021
Market update
Ocean
Logistics & Services
Terminals & Towage
Manufacturing & Others
Statement of the Board of Directors
and the Executive Board
21 Financials
Condensed income statement
Condensed statement of comprehensive income
Condensed balance sheet at 0June
Condensed cash flow statement
Condensed statement of changes in equity
Notes
31 Additional information
Quarterly summary
Definition of terms
2 A.P. Moller - Maersk Interim Report Q2 | 6 August 2021
”
Message from the CEO
In the second quarter, A.P. Moller - Maersk continued to deliver strong growth and
profitability, with another record-breaking performance marking the 12th quarter of
successive year-on-year earnings progress.
Revenue was up almost 60% to USD 14.2bn compared to the same quarter last year and
EBIT amounted to USD 4.1bn, up more than five times. Net result came in at USD 3.7bn
in the second quarter, bringing the net result for the first half of 2021 to USD 6.5bn.
The results benefitted both from the exceptional circumstances in Ocean, where conges-
tions and bottlenecks continued to drive up rates, and from solid progress in executing
on our strategic transformation. We continue to build a higher-quality Ocean business
with more long-term contracts, a rapidly growing and profitable Logistics business with
more than half of the 38% growth stemming from top Ocean customers, and a value
creating Terminals business, which doubled profitability in the quarter.
Looking at both the second quarter and the first half, I am pleased with the progress
made and the high value generation, with a return on invested capital now at 23.7%
for the past 12 months. As indicated at our recent Capital Markets Day, our earnings
and cash flow enable us to further accelerate our transformation, invest in growing
the business, also through targeted acquisitions, and at the same time return cash to
our shareholders.
To that effect we also announced today the acquisition of both Visible Supply Chain
Management and B2C Europe. These two companies will further accelerate our Logistics
growth particularly in e-commerce by adding technology and last mile delivery capabilities
for our customers in the United States and Europe.
The outlook for the third quarter is strong and we expect that the current momentum
in Ocean will continue into the fourth quarter, also benefitting our Terminals business.
Logistics & Services will continue its strong growth pattern for the rest of the year. As
communicated on 2 August, we have upgraded our guidance for 2021 to an underlying
EBITDA of USD 18.0bn-19.5bn, an EBIT of 14.0bn-15.5bn and a free cash flow expected
to be minimum USD 11.5bn.”
Søren Skou
Chief Executive Officer
A.P. Moller - Maersk
3 Message from the CEO Directors’ ReportA.P. Moller - Maersk Interim Report Q2 | 6 August 2021
Highlights Q2 2021
• A.P. Moller - Maersk’s financial results continue to be strong, with record-high revenue, EBITDA and
EBIT for Q2 and for H1 across the Ocean, Logistics & Services, and Terminals & Towage segments.
• Revenue for Q2 increased by USD 5.2bn to USD 14.2bn (USD 9.0bn), mainly due to an increase in
Ocean of USD 4.5bn, while revenue increased in Logistics & Services by 38% or USD 599m, and
in Terminals & Towage, revenue increased by 31% or USD 270m.
• In Ocean, revenue and earnings reflect the continuation of the exceptional conditions in the
industry with continued high freight rates and higher volumes. Strong business momentum was
also experienced in Logistics & Services and gateway terminals. The higher volumes compared
to Q2 2020 are reflecting the sharp drop in volumes in Q2 2020 due to the COVID-19 lockdown
challenges, whereas the higher freight rates are driven by long-term contracts renewed at higher
rates, as well as higher short-term rates specifically driven by demand surge leading to equip-
ment shortage and bottlenecks across global supply chains.
• EBITDA for Q2 increased by USD 3.4bn to USD 5.1bn (USD 1.7bn), with 90% of the increase coming
from Ocean, reflecting an EBITDA margin increase to 35.6% (18.9%), while EBIT increased to USD
4.1bn (USD 751m) with a margin improvement to 28.7% (8.3%).
• EBIT in Ocean increased to USD 3.6bn (USD 552m), driven by increased freight rates and higher
volumes, partially offset by higher costs related to handling, bunker and network.
• In Logistics & Services, EBIT increased to USD 153m (USD 42m), reflecting the significant organic
growth in revenue driven by strong activity increase across all product offerings.
• In Terminals & Towage, EBIT increased to USD 334m (USD 200m), positively impacted by an
increase in gateway terminals of USD 158m, driven by higher EBITDA and higher results from joint
ventures and associated companies, partly offset by higher depreciation.
• Free cash flow increased to USD 3.2bn (USD 1.1bn), due to CAPEX of USD 452m (USD 362m) and
strong cash flow from operating activities increasing to USD 4.1bn (USD 1.9bn), driven by the
significant increase in EBITDA.
• Return on invested capital (ROIC), last twelve months, increased to 23.7% (4.7%), as earnings
improved and invested capital declined slightly.
• Net interest-bearing debt decreased to USD 6.2bn (USD 9.2bn at year-end 2020), as free cash flow
of USD 5.6bn for the first six months was partly offset by share buy-backs of USD 781m, dividends
of USD 1.0bn and a net increase in lease liabilities of USD 717m. Excluding lease liabilities, the
Group had a net cash position of USD 3.2bn (debt of USD 485m at year-end 2020).
• As announced, A.P. Moller - Maersk acquired Visible Supply Chain Management and B2C Europe,
which complements the existing portfolio and meets A.P. Moller - Maersk’s customers’ need for
e-commerce logistics.
• The guidance for the underlying EBITDA is expected to be in the range of USD 18.0bn-19.5bn and
the underlying EBIT in the range of USD 14.0bn-15.5bn, as announced on 2 August 2021.
4
Highlights Q2 2021 Directors’ ReportA.P. Moller - Maersk Interim Report Q2 | 6 August 2021
Summary financial information
Q Q H H M
Income statement
Revenue
Profit before depreciation amortisation and impairment losses etc (EBITDA)
Depreciation amortisation and impairment losses net
Gain on sale of non-current assets etc net
Share of profit/loss in joint ventures and associated companies
Profit/loss before financial items (EBIT)
Financial items net - - - - -
Profit/loss before tax
Tax
Profit/loss for the period
AP Møller - Mærsk A/S’ share
Underlying profit/loss
Balance sheet
Total assets
Total equity
Invested capital
Net interest-bearing debt
Cash flow statement
Cash flow from operating activities
Gross capital expenditure excl acquisitions and divestments (CAPEX)
Cash flow from financing activities - - - - -
Free cash flow
Financial ratios
Revenue growth % -% % -% %
EBITDA margin % % % % %
EBIT margin % % % % %
Cash conversion % % % % %
Return on invested capital after tax (ROIC) (last twelve months) % % % % %
Equity ratio % % % % %
Underlying ROIC (last twelve months) % % % % %
Underlying EBITDA
Underlying EBITDA margin % % % % %
Underlying EBIT
Underlying EBIT margin % % % % %
Stock market ratios
Earnings per share – continuing operations USD
Diluted earnings per share – continuing operations USD
Cash flow from operating activities per share USD
Share price (B share) end of period DKK
Share price (B share) end of period USD
Total market capitalisation end of period USD
1 Underlying profit/loss is profit/loss for the period from continuing operations adjusted for net gains/losses from
sale of non-current assets etc. and net impairment losses as well as transaction, restructuring and integration
costs related to major transactions. The adjustments are net of tax and include A.P. Moller - Maersk’s share of
mentioned items in joint ventures and associated companies.
5
Amounts in USD million
Summary financial information Directors’ ReportA.P. Moller - Maersk Interim Report Q2 | 6 August 2021
Financial review Q2 2021
Revenue increased by USD 5.2bn to USD 14.2bn (USD 9.0bn),
with an increase in Ocean of USD 4.5bn and USD 599m
in Logistics & Services. In Terminals & Towage, revenue
increased by USD 270m and in Manufacturing & Others by
USD 28m.
EBITDA increased to USD 5.1bn (USD 1.7bn), primarily related
to Ocean with an EBITDA increase to USD 4.4bn (USD 1.4bn),
driven by the increased freight revenue due to higher freight
rates and increasing volumes, partly offset by higher bunker,
network and handling costs. In Logistics & Services, EBITDA
increased by USD 119m to USD 216m (USD 97m) due to the
higher revenue, and in gateway terminals, EBITDA increased
to USD 370m (USD 186m), reflecting the increase in volume
and higher storage income.
EBIT of USD 4.1bn (USD 751m) was mainly impacted by the
improved EBITDA. The EBIT margin increased to 28.7% (8.3%).
Financial items, net, amounted to USD 186m (USD 232m),
positively impacted by lower gross debt and lower negative
foreign exchange rate impacts.
Tax increased to USD 152m (USD 76m), primarily due to the
improved financial performance.
The underlying prot was USD 3.7bn (USD 359m).
Cash ow from operating activities was USD 4.1bn (USD
1.9bn), positively impacted by the increase in EBITDA
of USD 3.4bn, partly offset by a negative change in net
working capital of USD 886m, mainly driven by higher
receivables due to higher revenue, leading to a cash con-
version of 82% (110%).
Gross capital expenditure (CAPEX) of USD 452m (USD 362m),
was driven mostly by higher investments in Ocean, slightly
offset by lower investments in Terminals & Towage.
Free cash ow was USD 3.2bn (USD 1.1bn), positively
impacted by higher cash flow from operating activities,
slightly offset by increased lease payments and higher
capital expenditures.
Financial review
Cash flow from borrowings was negative by USD 982m
(positive USD 897m), due to repayments and prepayments
of bonds and loans given the strong cash flow generation
and high cash balance.
Contractual capital commitments totalled USD 1.9bn
(USD 1.7bn at year-end 2020), of which USD 1.2bn is related
to commitments towards terminal concession grantors.
Strong commitment to capital discipline and free cash
flow generation continues to be a key strategic focus.
The liquidity reserve increased to USD 13.0bn (USD 11.0bn
at year-end 2020), and was composed of liquid funds and
term deposits of USD 7.0bn excluding restricted cash (USD
4.8bn at year-end 2020), and undrawn revolving credit
facilities of USD 6.0bn (USD 6.2bn at year-end 2020).
Capital structure and credit rating
Net interest-bearing debt decreased to USD 6.2bn (USD
9.2bn at year-end 2020), as free cash flow of USD 5.6bn for
the first six months was partly offset by share buy-backs
of USD 781m, dividends of USD 1.0bn and a net increase
of USD 717m related to higher charter liabilities. Excluding
lease liabilities, the Group had a net cash position of USD
3.2bn (debt of USD 485m at year-end 2020).
A.P. Moller - Maersk remains investment grade-rated and
holds a Baa2 (stable outlook) rating from Moody’s and
a BBB (positive) rating from Standard & Poor’s.
Share buy-back
In November 2020, the Board of Directors of
A.P. Møller - Mærsk A/S announced a share buy-back pro-
gramme of up to DKK 10bn (around USD 1.6bn). The first
phase of the programme of DKK 3.3bn (around USD 500m)
was concluded on 29 April 2021. The Board of Directors
decided to accelerate the current programme with the
remaining part of the programme of DKK 6.7bn (around
USD 1.1bn) being exercised in one phase running from mid-
May to end of September 2021.
The Board of Directors further decided, under the authority
given at the Annual General Meeting in March 2021, to com-
mit to an additional share buy-back programme of up to
Highlights Q2
USD million Revenue EBITDA EBIT CAPEX
Ocean
Logistics & Services
Terminals & Towage
Manufacturing & Others - -
Unallocated activities eliminations etc - - - - - - -
AP Moller - Maersk consolidated
6
Financial review Q2 2021 Directors’ ReportA.P. Moller - Maersk Interim Report Q2 | 6 August 2021
DKK 31.0bn (around USD 5.0bn) to be executed over a period
of two years. The new programme will be initiated when the
current programme is finalised.
During Q2, A.P. Moller - Maersk bought back 32,702 A shares
and 132,141 B shares worth DKK 2.8bn (around USD 448m).
At 30 June 2021, A.P. Moller - Maersk owns a total of 51,143
A shares and 218,876 B shares as treasury shares, corre-
sponding to 1.39% of the share capital.
At the Annual General Meeting on 23 March 2021, the can-
cellation of 131,186 A shares and 524,745 B shares was
approved and the cancellation was completed in Q2.
The Board of Directors can decide to acquire own shares
up to a maximum of 15% of the share capital.
Capital Markets Day summary
At the Capital Markets Day on 11 May 2021, the roadmap to
2025 was communicated providing specific targets for the
transformation towards becoming the integrator of con-
tainer logistics, see table: The roadmap to 2025.
Over the last couple of years A.P. Moller - Maersk has
built a record of strongly improved financial performance
and based on the integrator strategy the expectation/target
is to continue to deliver shareholder value creating returns
on invested capital (ROIC) above 7.5%, and in the period
2021-2025 to deliver average returns on invested capital
above 12% given the strong starting point in 2021.
A.P. Moller - Maersk will prioritise the capital structure to
investments in the business incl. acquisitions in Logistics
& Services, repaying debt, paying ordinary dividends based
on a pay-out ratio of 30-50% of underlying net profit and
distributing excess cash to shareholders through share
buy-backs and special dividends in that order.
As mentioned in the Q1 2021 Interim Report, with the very
strong financial position of the company, the existing share
buy-back will be accelerated and concluded in September
2021 and further, a new USD 5bn share buy-back programme
over two years will be initiated when the existing share buy-
back programme has been finalised.
Over the last four years, fundamentals have improved for
the Ocean business. A strong growth engine has been built
in Logistics & Services and the gateway terminals business
is again delivering value-creating returns. Based on perfor-
mance and progress, new targets were set for the perfor-
mance of the business through to 2025.
Ocean is expected to deliver EBIT margins above 6% under
normalised conditions. Total fleet capacity will be in the
range of 4.1-4.3m TEU.
For Logistics & Services, the expectation is to continue the
strong growth and target organic growth above 10%, of
which 50% of the organic growth will be related to the Top
200 Ocean customers and with an EBIT margin above 6%,
making Logistics & Services the growth engine, measured
by revenue, for the company. In addition to rapid organic
growth, the expectation is to continue to make acquisi-
tions, mainly of new capabilities and growth platforms, to
expand the logistics business.
Finally, for gateway terminals the expectation is to deliver
returns on invested capital of above 9% towards 2025,
well above industry average, driven by synergies with
Ocean and the operating model in gateway terminals.
Transformation metrics
In 2020-2021, four metrics are tracked as a measurement
on progress besides the overall ROIC target, see table:
Transformation metrics.
Value creation is measured by the return on invested capital
(ROIC), last twelve months, and increased to 23.7% (4.7%), as
earnings improved significantly due to higher freight rates.
Growing the business is measured by the focus on organic
growth in revenue in Logistics & Services and gateway ter-
minals. Organic revenue increased by 40% to USD 3.1bn
driven by a rebound in gateways and strong organic growth
in all product offerings in Logistics & Services compared
to 2020.
Protability in Logistics & Services is measured by EBITA,
which increased by USD 116m to USD 164m, driven by reve-
nue growth and margin improvement.
Progress in the commercial synergies from the revenue
growth between Logistics & Services and the top 200
Ocean customers was USD 857m, highlighting the impact
of the integrator strategy.
The roadmap to 2025
Consolidated
Return on invested capital (ROIC)
Every year > %
Average - > %
– CAPEX and leases at depreciation level
– Stable invested capital over the period
Dividend policy of underlying net profit -%
Share buy-back over - USDm
Ocean
EBIT margin - under normalised conditions > %
Execute with the existing fleet size TEUm -
Logistics & Services
Organic revenue growth per year >%
Of which from top Ocean customers %
EBIT margin > %
Terminals
Return on invested capital (ROIC) > %
7
Financial review Q2 2021 Directors’ ReportA.P. Moller - Maersk Interim Report Q2 | 6 August 2021
Progress on the commercial digitalisation and product
offering in Ocean, is in the first phase measured via Maersk
SPOT volume share of total short-term volumes, which
was 35.3% in Q2. The percentage is based on the last four
weeks of the reported period for all brands.
Financial review H1 2021
Revenue was USD 26.7bn (USD 18.6bn) with increases
across all four segments and in particular in Ocean and
Logistics & Services by USD 6.8bn and USD 1.2bn respec-
tively, mainly because of higher freight rates in Ocean
and volume increases across businesses.
EBITDA increased by USD 5.9bn to USD 9.1bn (USD 3.2bn)
with increases in all segments, primarily in Ocean by
USD 5.3bn due to increasing freight rates and volumes,
offset by higher bunker consumption at a higher aver-
age bunker price and increasing handling and network
cost. The increase in Logistics & Services of USD 256m
was impacted by volume increases across all product
families, and similar for gateway terminals significant
increases in volumes led to an increase in EBITDA of
USD 294m.
EBIT was USD 7.2bn (USD 1.3bn), positively impacted by the
improved EBITDA, and by lower depreciations as a result
of reassessing the useful life of container assets. The EBIT
margin increased to 26.9% (7.0%).
Financial items, net, amounted to USD 416m (USD 447m),
positively impacted by lower gross debt.
Tax increased to USD 302m (USD 204m), primarily due to
improved financial performance.
The underlying profit after financial items and tax was
USD 6.4bn (USD 556m).
Cash flow from operating activities was USD 7.6bn (USD
3.1bn), positively impacted by the increase in EBITDA of USD
5.9bn, offset by a negative change in net working capital of
USD 1.3bn, leading to a cash conversion of 83% (96%).
Gross capital expenditure (CAPEX) was USD 781m (USD 672m),
mainly driven by higher investments in Ocean and offset
by slightly lower investments in Logistics & Services and in
Terminals & Towage.
Highlights H1
USD million Revenue EBITDA EBIT CAPEX
Ocean
Logistics & Services
Terminals & Towage
Manufacturing & Others
Unallocated activities eliminations etc - - - - - -
AP Moller - Maersk consolidated
Transformation metrics
Q Q H H M
Value creation
Return on invested capital (ROIC) % % % % %
Growth
Organic revenue in Logistics & Services and
gateway terminals USDm
Profitability
EBITA in Logistics & Services USDm
Commercial synergies
Logistics & Services revenue with top Ocean
customers USDm
Commercial digitalisation and product offering in Ocean
Maersk SPOT volume share of total short-term volumes % % % % %
1 Last twelve months
2 Maersk SPOT volume share of total short-term volumes of all brands is based on the last four weeks of the period shown.
8
Financial review Q2 2021 Directors’ ReportA.P. Moller - Maersk Interim Report Q2 | 6 August 2021
Free cash flow was USD 5.6bn (USD 1.5bn), positively
impacted by higher cash flow from operating activities,
partly offset by higher gross CAPEX and increased lease
payments.
Cash flow from borrowings was negative by USD 1.5bn
(positive by USD 512m), due to repayments and prepay-
ments of bonds and loans, given the strong cash flow
generation and high cash balance.
The ordinary dividend of DKK 330 per A.P. Møller - Mærsk A/S
share of nominally DKK 1,000 (USD 1.0bn) declared at the
Annual General Meeting on 23 March 2021, was paid on
26 March 2021.
Total equity increased to USD 35.3bn (USD 30.9bn at
31 December 2020), due to a net profit of USD 6.5bn in H1
offset by dividends of USD 1.0bn and share repurchase of
USD 781m, resulting in an equity ratio of 58.8% (55.0% at
31 December 2020).
9
Financial review Q2 2021 Directors’ ReportA.P. Moller - Maersk Interim Report Q2 | 6 August 2021
Guidance for 2021
Given the strong result in Q2 2021 and the exceptional
market situation still expected to continue at least until
the end of the full year 2021, the full-year guidance has
been revised upwards on 2 August 2021 to:
• Underlying EBITDA in the range of USD 18.0bn-19.5bn
(previously USD 13.0bn-15.0bn) compared to USD 8.3bn
in 2020
• Underlying EBIT in the range of USD 14.0bn-15.5bn
(previously USD 9.0bn-11.0bn) compared to USD 4.2bn
in 2020
• Free cash flow (FCF) of minimum USD 11.5bn (previously
above USD 7.0bn) compared to USD 4.6bn in 2020.
Ocean is still expected to grow in line with global container
demand, which is now expected to grow 6-8% in 2021 (pre-
viously 5-7% in 2021), primarily still driven by the export
volumes out of China to the USA.
For 2021-2022, the expectation for the accumulated CAPEX
remains to be around USD 7.0bn.
Earnings in Q3 are expected to exceed the level for Q2 2021.
Trading conditions for the quarters ahead are, however, still
subject to a higher-than-normal volatility due to the tempo-
rary nature of current demand patterns, disruptions in the
supply chains and equipment shortages.
Sensitivity guidance
Financial performance for A.P. Moller - Maersk for 2021 depends on several factors and is subject to uncertainties related to
COVID-19, bunker fuel prices and freight rates, given the uncertain macroeconomic conditions.
All else being equal, the sensitivities for 2021 for four key assumptions are listed in the table below:
Factors Change Effect on EBIT
(midpoint of guidance)
Rest of year
Container freight rate +/- USD/FFE +/- USD bn
Container freight volume +/- FFE +/- USD bn
Bunker price (net of expected BAF coverage) +/- USD/tonne +/- USD bn
Foreign exchange rate (net of hedges) +/- % change in USD +/- USD bn
Underlying EBITDA is earnings before interest, taxes, depreciation and
amortisation adjusted for restructuring and integration costs.
Underlying EBIT is operating profit before interest and taxes adjusted
for restructuring and integration costs, net gains/losses from sale of
non-current – assets and net impairment losses.
10
Guidance for 2021 Directors’ ReportA.P. Moller - Maersk Interim Report Q2 | 6 August 2021
Market update
Demand for logistics services remained strong across
global supply chains in Q2, mainly led by import to the USA
and supported by the rebound in consumer goods spending
and corporate CAPEX. Attempts to restock inventory, par-
ticularly in the USA and Europe, and the ongoing channel
switch to e-commerce and omnichannel delivery provided
additional support. The supply-side of the logistics industry
continued to be disrupted by COVID-19 and capacity short-
ages: container availability and air capacity remained tight,
wait times for vessels outside of ports remained lengthy,
and warehousing capacity continued to be a bottleneck,
recently caused by the COVID-19-related lockdown of the
terminals in Yantian, China. The result has been equipment
shortages and challenged supply chain management ser-
vices driving up prices.
Despite a rebound in container volumes in recent quarters,
global container demand has averaged 3% annual growth
since 2019, in line with the historic trend. Moreover, much
of the increase to date has been driven by the US, where
demand for technology and retail goods has been supported
by transitory pandemic-related drivers. Measured against
2020, the recovery in global trade remained strong during Q2
with container demand increasing by around 19%, and global
air cargo volumes (CTK) by some 26% in the three months
to April (8.4% compared to same period in 2019). Goods con-
sumption remained especially strong in the USA and began
to recover in Europe. North American container imports from
the Far East rose 35% in Q2, while European imports from the
Far East increased by 20% in Q2. Global container demand
is projected to increase by 6-8% in 2021 up from negative
1.8% in 2020, while air and land-side logistics demand is
expected to remain robust through the remainder of 2021.
Both the container and air freight industry remained capac-
ity constrained during the quarter, with capacity in the com-
mercial air industries some 12% below pre-crisis levels,
measured here as ‘belly capacity’, i.e. storage capacity under
the main deck of the airplane. Further, vessel and container
capacity was impacted substantially by port and landside
disruptions. At the end of Q2, the nominal global container
fleet stood at 24.4m TEU, an increase of 4.3% compared to
Q2 2020 (average annual growth was 3.7% since Q2 2019).
Idled fleet declined further in Q2 2021 (to 0.8% at the end
of the quarter) compared to Q1 2021 and stands much lower
than the 7.9% in Q2 2020, as the industry has adjusted to
higher demand, driving up effective supply. Consequently,
the demand- supply balance was broadly unchanged in Q2
2021 compared to Q1 2021. Freight and charter rates were
nevertheless persistently high, largely reflecting bottle-
necks in domestic logistics and scarce container equipment,
negatively affecting the effective capacity. The order book
reached 20% of the global fleet in Q2, compared to 17% of
the fleet at the end of Q1 on back of continued high activ-
ity in new ordering. Freight rates out of China, as measured
by the China Composite Freight Index (CCFI), increased by
154% in Q2 compared to the same quarter last year, while
air cargo fares also increased but by less than container
shipping rates since mid-2020, implying that air cargo has
become relatively competitive according to the Interna-
tional Air Transport Association (IATA).
The outlook beyond the next couple of quarters is unusu-
ally uncertain given the dislocation in demand and sup-
ply sides of logistics industries. On the demand side, high
household savings in the USA and Europe should support
consumer demand, but the composition of spending is
likely to rebalance towards services, and sharply rising
prices for some goods may lead consumers to adjust their
spending plans. At the same time, inventory replenishment
will support goods trade through end-2021 at least, and
the channel shift to e-commerce is likely to keep pressure
on outbound logistics capacity. On the supply side, sup-
plier delivery times remain lengthy, and there is little vis-
ibility into when equipment shortages and capacity con-
straints will abate, which has been the key driver for the
increase in short-term freight rates.
Container sea freight demand growth
Growth % CAGR
(Compound Annual Growth Rate)
Q
vs Q
Q
vs Q
Globally % %
Global headhaul % %
East-West % %
– Headhaul % %
– Backhaul % -%
North-South % %
Intraregional % %
Global trade developments by ocean, air, and ports (% year-on-year)
Ocean container demand
Air freight
Port container throughput
1 Q2 2021 includes April
and May.
202120202019201820172016
11
Market update Directors’ ReportA.P. Moller - Maersk Interim Report Q2 | 6 August 2021
Ocean
Profitability for Q2 2021 was driven by revenue growth from
higher freight rates combined with higher volumes com-
pared to a low baseline in Q2 2020 which was impacted
significantly by COVID-19 lockdowns. Focus in Q2 2021 has
been to continue delivering on the strategy and on protect-
ing core strategic partnerships and long-term customers
to reduce and mitigate the impact from the congestion
and network disruptions to their supply chains, resulting in
a higher share of business from these customers. Average
loaded rates were driven by long-term contracts renewing at
higher freight rates, and short-term freight rates increasing
rapidly due to demand surge, leading to equipment short-
age and bottlenecks across global supply chains. Unit cost
at fixed bunker increased by 0.9% due to higher container
handling costs, driven mainly by the congestion and net-
work disruptions. Utilisation remained strong at 95.9% and
while schedule reliability remained best in industry, it con-
tinues to be unsatisfactory mainly caused by congestions,
especially in North America and Asia, as well as missed sail-
ings and delays caused by, among others, the Suez conges-
tion and the ongoing Yantian congestion.
Financial and operational performance
Revenue increased to USD 11.1bn (USD 6.6bn), impacted by
freight revenue growth of USD 4.2bn from 59% higher freight
rates combined with a volume increase of 15%, also reflecting
the low level in Q2 2020. Other revenue increased by 30% to
USD 1.3bn (USD 986m), primarily driven by higher activities
compared to Q2 2020.
EBITDA improved by USD 3.0bn to USD 4.4bn (USD 1.4bn),
driven by the increased freight revenue, partly offset by higher
bunker, network and container handling costs. The EBITDA
margin increased by 19.0 percentage points to 39.7% (20.7%).
EBIT improved by USD 3.0bn to USD 3.6bn (USD 552m),
mainly driven by higher freight revenue. The EBIT margin
increased by 23.9 percentage points to 32.3% (8.4%).
Loaded volumes increased by 15% to 3,341k FFE (2,903k FFE),
mainly from higher headhaul volumes compared to Q2 2020,
impacted by initial COVID-19 lockdown challenges. In com-
parison, volumes were 3.1% lower compared to Q2 2019.
Volumes were driven by exports out of Asia from East-West
and Intra Asia trades as well as increased volume growth on
North-South trades.
Ocean highlights
USD million Q Q H H M
Freight revenue
Other revenue including hubs
Revenue
Container handling costs
Bunker costs
Network costs excluding bunker costs
Selling General & Administration (SG&A)
Cost of goods sold and other operational costs
Total operating costs
Other income/costs net - - -
Profit/loss before depreciation amortisation and
impairment losses etc (EBITDA)
EBITDA margin % % % % %
Profit/loss before financial items (EBIT)
EBIT margin % % % % %
Invested capital
Gross capital expenditure excl acquisitions and
divestments (CAPEX)
Operational and nancial metrics
Loaded volumes (FFE in ’)
Loaded freight rate (USD per FFE)
Unit cost fixed bunker (USD per FFE incl VSA income)
Bunker price average (USD per tonne)
Bunker consumption (tonne in ’)
Average nominal fleet capacity (TEU in ’)
Fleet owned (end of period)
Fleet chartered (end of period)
12 Ocean Directors’ ReportA.P. Moller - Maersk Interim Report Q2 | 6 August 2021
The average loaded freight rate increased by 1,123 USD/FFE
to 3,038 USD/FFE (1,915 USD/FFE), driven by long-term con-
tracts renewing at higher rates, as well as short-term rates
driven by higher demand combined with bottlenecks and
congestions driving rate increases.
Total operating costs were 28% higher at USD 6.6bn (USD
5.2bn), driven by higher network costs primarily due to
higher bunker price and higher container handling costs
as a result of higher volumes and bottlenecks in the sup-
ply chains due to port congestions. Adjusting for the neg-
ative impact of foreign exchange rates, operating costs
increased by 25%.
Bunker cost increased by USD 529m to USD 1.3bn (USD
766m), with an increase in average bunker price of 45%
to 475 USD/tonne (328 USD/tonne) driven by recovery
of global bunker prices following collapse during initial
COVID-19 outbreak end Q1 2020. Bunker consumption
increased by 17% driven by an increase in deployed capacity
and increased speeding on all trades in response to low
schedule reliability. Bunker efficiency decreased by 0.7%
to 40.99 g/TEU*NM (40.69 g/TEU*NM).
Unit cost at fixed bunker increased by 0.9% to 2,039 USD/
FFE (2,021 USD/FFE), driven by higher container handling
costs from terminal expenses, higher network costs driven
by higher bunker consumption and time charter equivalent
cost. This was partly offset by lower container costs. Adjust-
ing for the negative impact of foreign exchange rates, unit
cost at fixed bunker decreased by 1.3%.
The average nominal capacity of 4,113k TEU increased by
2.0%. There is one carbon-neutral vessel in the newbuild-
ing programme end of Q2, and the fleet consisted of 306
owned and 412 chartered vessels, of which 79k TEU or 1.9%
of the fleet were idle (14 vessels), mainly due to repairs.
Key initiatives in Q2
Ocean continues to take further steps towards partnering
with key customers, offering contract customers additional
flexibility and space to help with volatility in their supply
chains. The strategic focus on customer stability and resil-
ience resulted in long-term volumes increasing more than
600k FFE or 54% compared to Q2 2020, as well as 1m FFE
signed multi-year contracts during H1 2021.
Twill, the end-to-end digital product designed for small
customers without in-house logistics capabilities, con-
tinues to gain momentum and has crossed an average of
4,600 FFE per week by end of Q2 2021, up from an average
of 438 FFE per week same period last year.
Due to strong demand and to protect the quality of the
Maersk SPOT product, the amount offered was reduced
given the operational environment and ability to deliver.
Consequently, the adoption rate of Maersk Spot as a per-
centage of total short-term volume remained stable
compared with the previous quarter at 35% (36%) in Q2
2021 across all brands. Maersk Spot remains a critical
product for freight forwarder customers, and Ocean will
continue to expand scope across brands and keep adding
features to attract more customers to the product.
Decarbonisation is a core element of the strategy
and a strong focus amongst customers. A.P. Moller - Maersk
announced the launch of a digital emissions dashboard
which allows end-to-end visibility across all transport modes
and carriers, enabling customers to track their carbon foot-
print. In addition, A.P. Moller - Maersk has proposed an
industry bunker carbon tax of at least 450 USD/tonne (150
USD/tonne CO), a levy to bridge the gap between fossil fuels
consumed by vessels and the currently expensive green
alternatives. During Q2, A.P. Moller - Maersk has signed the
UN Global Compact Commitment letter to a ‘Business ambi-
tion of 1.5C’, entailing a commitment to set a Science Based
Target to reach net zero submissions by 2050 across all
scopes, and to set Science Based Targets initiative (SBTi)
approved interim target within the next 5-15 years.
Financial review H1 2021
For H1 there was a revenue growth of 49% to USD 20.6bn
(USD 13.8bn), driven by increase in loaded freight rate of
47% and 10% higher volumes. Other revenue increased by
17% to USD 2.6bn (USD 2.2bn). EBITDA margin increased by
19.9 percentage points to 38.2% at USD 7.8bn (USD 2.5bn)
and the EBIT margin increased by 24.1 percentage points
to 30.6% at USD 6.3bn (USD 900m).
Loaded volumes
FFE (’) Q Q Change Change %
East-West
North-South
Intra-regional
Total
Average freight rates
USD/FFE Q Q Change Change %
East-West
North-South
Intra-regional
Total
Fleet overview, end Q2 2021
Q Q
TEU
Own container vessels
Chartered container vessels
Total fleet
Number of vessels
Own container vessels
Chartered container vessels
Total fleet
13 Ocean Directors’ ReportA.P. Moller - Maersk Interim Report Q2 | 6 August 2021
Total operating costs increased by 9.5% to USD 12.6bn
(USD 11.5bn) driven by increased container handling costs
of 21.4% and higher network costs driven by bunker cost
increase of 10% due to higher consumption and higher
network cost excl. bunker of 6.2%. Adjusting for the neg-
ative impact of foreign exchange rates, operating costs
increased by 7.7%.
Logistics & Services
The financial results improved significantly, driven by both
strong revenue growth and margin improvements in Q2.
The revenue growth of 38% was coming from all product
families, with an increase in Managed by Maersk of 58% to
USD 317m (USD 201m), an increase in Fulfilled by Maersk
of 51% to USD 480m (USD 317m), and an increase in Trans-
ported by Maersk of 30% to USD 1.4bn (USD 1.1bn). The
revenue coming from providing more services to top 200
Ocean customers increased by 64% from USD 524m to
USD 857m. Similar to revenue growth, EBITDA margin
improved across all product families.
The integration of the acquisitions in 2020 are progress-
ing according to plan. While the offerings continued being
strengthened across products and services, the acquisitions
of Visible Supply Chain Management and B2C Europe in
the e-commerce logistics area will allow us to respond to
growing customer needs within business-to-consumer ful-
filment and delivery.
Logistics & Services highlights
USD million Q Q H H M
Revenue
Direct costs (third party cost)
Gross profit
Direct Operating Expenses
Selling General & Administration (SG&A)
Profit/loss before depreciation amortisation and
impairment losses etc (EBITDA)
EBITDA margin % % % % %
Earnings before interest taxes and amortisation (EBITA)
EBITA margin % % % % %
Profit/loss before financial items (EBIT)
EBIT margin % % % % %
Invested capital
Gross capital expenditure excl acquisitions and
divestments (CAPEX)
Operational and nancial metrics
EBIT conversion (EBIT/gross profit - %) % % % % %
Managed by Maersk revenue
Fulfilled by Maersk revenue
Transported by Maersk revenue
Supply chain management volumes (kcbm)
Intermodal volumes (kFFE)
Sea freight volumes (TEU)
Air freight volumes (tonne)
New Logistics & Services categories
Global supply chains are complex and hard to manage for cus-
tomers and lack of connectivity between service providers makes
global logistics unpredictable and increasingly complex. True
integration means the ability to bring it all together. To organise
and optimise, to assume responsibility and deliver accountability.
‘By Maersk’ matches how the customer thinks about logistics.
See the following page for a description of the product families
and the strategic rationale behind the changes made as of 2021.
Organic/inorganic
Q-A Organic Inorganic Q-A
Revenue
% %
EBITA
14 Ocean | Logistics & Services Directors’ ReportA.P. Moller - Maersk Interim Report Q2 | 6 August 2021
Financial and operational performance
Revenue increased by 38% to USD 2.2bn (USD 1.6bn), due
to the strong logistics industry and Logistics & Services’
ability to deliver end-to-end solutions across all services
through continuous operational improvements, focus on
sales pipeline execution, and to provide more services to
existing Ocean customers.
Organic revenue contributed 36% of the 38% increase in
revenue to USD 2.2bn (USD 1.6bn). The increase in organic
EBITA was USD 108m. As of Q1 2021, Performance Team
was included in the organic growth figures after being con-
solidated on 1 April 2020. KGH Customs Services contrib-
uted with an inorganic revenue of USD 33m and an EBITA
of USD 8m.
Gross profit increased by USD 202m to USD 563m (USD
361m), driven by an increase in volumes in Lead Logistics,
and in the number of declarations handled in Customs
Services under Managed by Maersk, increased profitabil-
ity in Contract Logistics facilities in North America under
Fulfilled by Maersk, and growth and higher margins in
Landside Transportation under Transported by Maersk.
EBITDA increased by USD 119m to USD 216m (USD 97m)
due to the higher revenue and the focus on operational
excellence with an EBITDA margin of 10.0% (6.2%). EBITA
increased to USD 164m (USD 48m), with an EBITA margin of
7.6% (3.1%). The EBIT conversion ratio was 27.2% (11.6%).
For the Managed by Maersk services, revenue increased by
58% to USD 317m (USD 201m), driven by a 31% increase in
volumes in Lead Logistics to 20,696 kcbm (15,791 kcbm).
The increase in volume reflects the sharp drop in volumes
in Q2 2020 due to the COVID-19 challenges, and in Q2 2021
changing consumer patterns where customers in the USA
more increasingly demanded retail goods, and also winning
new business. Further, Customs Services volumes were up
by 887k declarations to 1,207k declarations (320k declara-
tions). The organic growth was 72% with 552k declarations
(320k declarations) and inorganically KGH Customs Services
contributed with 654k declarations (0k declarations), partly
driven by Brexit.
For the Fulfilled by Maersk services, revenue was up by 51%
to USD 480m (USD 317m), driven by Contract Logistics’ new
activities and the turnaround of existing facilities in North
America, combined with growing volumes from increasing
supply chain needs from customers and a growing footprint
from the integration of Performance Team.
For the Transported by Maersk services, revenue was up by
30% to USD 1.4bn (USD 1.1bn), driven by an increase in Land-
side Transportation Intermodal volumes of 41% to 1,082k
FFE (768k FFE), mainly due to a higher penetration ratio into
existing Ocean customers. Further, air freight forwarding
volumes increased by 4.3% to 39.5k tonnes (37.9k tonnes)
primarily coming from Asia Pacific into North America, how-
ever, lower rates led to an 7.8% lower revenue at USD 297m
(USD 322m). Sea freight volumes were reduced as a result
of the discontinuation of the Damco brand.
Key initiatives in Q2
In terms of integration, in North America, the Performance
Team integration is well on track and delivering strong com-
mercial synergies, further strengthening the Contract
Logistics offering, while in Europe, the integration of KGH
Customs Services is progressing well, delivering strong results
including Brexit. As announced, Logistics & Services acquired
Visible Supply Chain Management and B2C Europe which
complements the existing portfolio and meets Logistics &
Services customers’ need for e-commerce logistics.
Logistics & Services product specifications
Product families Details Strategic rationale
Managed by Maersk • Lead Logistics (Supply Chain Management and 4PL)
• Cold Chain logistics
• Custom Services
• TradeLens
Integrated management solutions enable customers
to control or outsource part or all their supply chain.
Combining transport and fulfilment solutions with
digital platforms, give end to end visibility, action ability
and control.
Fulfilled by Maersk • Contract logistics (Warehousing & Distribution
and Depot)
• e-commerce
Integrated fulfilment solutions improve customer con-
solidation and storage down to order level. Whether
e-commerce or cold storage, Logistics & Services solu-
tions connect seamlessly to its transportation network,
optimising inventory flow and precision to deliver
individual orders precisely and on time.
Transported by Maersk • Landside Transportation (Intermodal and
Intercontinental Rail)
• Insurance
• Air & Less Than Container Load (LCL)
• Star Air
• Full Container Load (FCL)
• Sea Freight Forwarding Others
Integrated transportation solutions facilitate supply
chain control across A.P. Moller - Maersk’s assets.
The solutions are modular, providing customers end
to end services with higher reliability, speed and
accountability.
15
Logistics & Services Directors’ ReportA.P. Moller - Maersk Interim Report Q2 | 6 August 2021
In Managed by Maersk, TradeLens continued to expand its
network, with an enhanced footprint, including a roll-out
in China. Decarbonisation is core to the Maersk integrator
strategy, and in Q2, the Maersk carbon emission dashboard
was launched to help accelerate Logistics & Services cus-
tomers’ sustainability efforts.
In Fulfilled by Maersk, the network expanded by 400k
sqm to 2.65m sqm (2.25m sqm). Notably, a major opening
included a new 76k sqm fulfilment and deconsolidation
facility in Romania. Further significant investments are in
progress for Europe and North America to support Logistics
& Services’ customers especially with deconsolidation
solutions in 2021 and 2022.
Transported by Maersk is enhancing the LCL network, with
150 own direct consolidation lanes now open versus less
than 50 in 2020, focusing on long-haul trade, proposing
additional services to answer the client’s needs in this area.
Financial review H1 2021
Revenue of USD 4.2bn (USD 3.0bn) was driven by increas-
ing revenue in Managed by Maersk services to USD 665m
(USD 421m), Fulfilled by Maersk services to USD 937m
(USD 538m) and Transported by Maersk services to
USD 2.6bn (USD 2.1bn). This was driven by an increase in
volumes in Landside Transportation Intermodal of 30%
to 2,119k FFE (1,631k FFE), mainly due to a higher pen-
etration ratio into existing Ocean customers. Further,
volumes in Lead Logistics increased by 36% to 41,380
kcbm (30,363 kcbm), driven by COVID-19 bounce back,
changing customer patterns and new business wins. In
addition to strong organic development, KGH Customs
Services contributed to the revenue growth. Inorganic
revenue accounted for USD 210m (USD 82m). EBITDA
increased to USD 421m (USD 165m) and EBITA increased
to USD 314m (USD 78m).
Terminals & Towage
Terminals & Towage reported an increase in revenue of
USD 270m to USD 1.1bn (USD 878m), with an increase in
EBITDA of USD 186m to USD 423m (USD 237m) and an
increase in EBIT of USD 134m to USD 334m (USD 200m).
Organic/inorganic
H-A Organic Inorganic H-A
Revenue
% %
EBITA
Terminals & Towage highlights
USD million Q Q H H M
Revenue
Concession fees (excl capitalised lease expenses)
Labour cost (blue collar)
Other operational cost
Selling General & Administration (SG&A) and other costs etc
Total operating costs
Profit/loss before depreciation amortisation and
impairment losses etc (EBITDA)
EBITDA margin % % % % %
Profit/loss before financial items (EBIT)
EBIT margin % % % % %
Invested capital
Gross capital expenditure excl acquisitions and
divestments (CAPEX)
Operational and nancial metrics
Terminal volumes – financially consolidated (moves m)
Ocean segment
External customers
Terminal revenue per move – financially consolidated (USD)
Terminal cost per move – financially consolidated (USD)
Result from joint ventures and associated companies (USDm)
Number of operational tug jobs (harbour towage) (’)
Annualised EBITDA per tug (terminal towage) (USD in ’)
16
Logistics & Services | Terminals & Towage Directors’ ReportA.P. Moller - Maersk Interim Report Q2 | 6 August 2021
In gateway terminals, revenue increased to USD 969m (USD
723m), with a continued increase in demand for goods result-
ing in higher volumes for terminals, but also increase in rev-
enue from congestion. Especially, the continued supply chain
congestion in the USA and spot calls in Latin America contrib-
uted significantly to the increase in EBITDA to USD 370m (USD
186m) and the increase in EBIT to USD 302m (USD 144m).
In Towage, revenue increased to USD 184m (USD 160m), while
EBITDA increased to USD 53m (USD 51m). EBIT decreased to
USD 32m (USD 56m), driven by the significant gain in Q2 2020
resulting from the acquisition of Port Towage Amsterdam.
Terminals
Financial and operational performance
Revenue increased to USD 969m (USD 723m), driven by
higher volumes and increased storage income due to the
persisting congestions and transportation bottlenecks.
Further, the consolidation of Pipavav, India, contributed
by USD 15m. The increase in volume and higher storage
income in combination with higher cost related to provi-
sions in Q2 2020 significantly impacted EBITDA with an
increase to USD 370m (USD 186m) and with an EBITDA
margin of 38.1% (25.7%).
EBIT increased to USD 302m (USD 144m), driven by the
higher EBITDA and higher results from joint ventures and
associated companies, partially offset by higher depreci-
ation mainly due to modernisation of yard equipment in
Los Angeles, USA, and terminal expansion in Yokohama,
Japan. CAPEX decreased to USD 40m (USD 75m).
In North America, revenue increased due to volumes being
up 29% and higher storage income driven by supply chain
congestion. This was partially offset by higher labour cost,
given the high volumes and yard congestions, leading to an
increase in the EBITDA margin to 30% (23%).
In Latin America, higher revenue per move across the region,
supported by higher storage income in Buenaventura,
Colombia and overall volume growth of 20%, resulted in
an increase in the EBITDA-margin to 51% (40%).
In Asia, volumes grew 60% and the EBITDA margin
increased by 19 percentage points to 34% (15%), mainly
driven by ramp-up of two new berths in Yokohama, higher
volume in Mumbai, India, and consolidation of Pipavav.
Volume grew 49% like-for-like (excluding Pipavav) in Asia.
In Europe, revenue increased as a result of an increase in
volume of 19% and higher storage income, partially offset
by higher cost per move, leading to an increase in EBITDA
margin to 30% (28%).
In Africa and Middle East volume decreased by 2.7% driven
by loss of services in Cotonou, Benin, and lower volume in
Bahrain as cross border cargo moved back to trucks, fol-
lowing easing of COVID-19 restrictions. The EBITDA mar-
gin increased to 47% (20%), driven by a compensation in Q2
2021 and Q2 2020 being negatively impacted by provisions,
partly offset by lower volumes and negative impacts from
foreign exchange rates.
For gateway terminals, volumes increased by 24% (increased
by 22% like-for-like, adjusted for Pipavav) and utilisation was
high at 76% (64%) with volume growth mainly in Asia and
North America. Volume from the Ocean segment increased by
17% and volume from external customers increased by 28%.
The like-for-like volume increase was 6.8% versus Q2 2019.
A congestion-driven revenue increase in North America and
higher storage income in Buenaventura were the main driv-
ers behind an increase in global revenue per move of 8.3%
to USD 301 (USD 278). Upward shift in volume and lower net
provision resulted in lower cost per move of 7.0% to USD
234 (USD 251).
Adjusted for foreign exchange rates, volume mix effects
and portfolio changes, revenue per move increased by 11%,
and cost per move decreased by 2.0%.
Results from joint ventures and
associated companies
The share of profit in joint ventures and associated com-
panies increased to USD 79m (USD 31m) driven by foreign
exchange rate losses in Q2 2020, supported by positive
impact of higher results in Santos, Brazil, and Tema, Ghana.
Key initiatives in Q2
Terminals was awarded a 50-year concession to build,
maintain and operate a container terminal in Rijeka, Croatia,
in a 51%/49% partnership with ENNA Logic, pending regula-
tory approval.
The construction work in Abidjan, Ivory Coast, is progress-
ing and the business setup is being put in place to open
Regional EBITDA margin, Terminals
Percentage Q Q
North America
Latin America
Europe Russia and the Baltics
Asia
Africa and Middle East
Total
Regional volume, Terminals
Million moves Q Q Growth (%)
North America
Latin America
Europe Russia and the Baltics
Asia
Africa and Middle East -
Total
1 Financially consolidated.
17
Terminals & Towage Directors’ ReportA.P. Moller - Maersk Interim Report Q2 | 6 August 2021
towards the end of 2022. In APM Terminals Poti, Georgia,
the contract for enlargement is in place and progress is
being made on the preparations to start the physical works.
In Onne, Nigeria, civil works to upgrade the yard are pro-
gressing.
Towage
Financial and operational performance
Revenue increased by USD 24m to USD 184m (USD 160m),
and the increase was 5.2% or USD 8m, when adjusted for
foreign exchange rate development. Revenue was posi-
tively impacted by higher harbour towage activity, result-
ing in an increase of 7.2% in tug jobs, primarily driven by
an increase in LNG activities in Europe, strong grain exports
from Australia and ramp-up activities in Morocco. The
increase was partly offset by slower position in Americas
especially in Brazil. EBITDA increased to USD 53m (USD
51m), mainly due to increase in activity and positive foreign
exchange rate development partly offset by increased oper-
ating costs. EBIT decreased to USD 32m (USD 56m) driven
by a gain in Q2 2020 resulting from the acquisition of Port
Towage Amsterdam.
For terminal towage, the annualised EBITDA per tug
decreased by 21% driven by decrease in activity in
Americas, increasing operating cost in Asia, Middle East
and Africa and lower tanker activities in Australia.
Results from joint ventures and
associated companies
The share of profit in joint ventures and associated compa-
nies increased to USD 6m (USD 4m), with increases driven
by improved operational performances in the Americas,
Australia and China.
Key initiatives in Q2
During Q2, Towage secured a 10-year contract in the Philip-
pines, with expected start in 2022, increasing Towage’s
footprint in Asia. In addition, a two-year contract was
signed in the UK. Towage also set up operations in two
new ports in Brazil.
Terminals & Towage
Financial review H1 2021
Terminals & Towage reported an increase in revenue of USD
448m to USD 2.2bn (USD 1.8bn), with an increase in EBITDA
of USD 290m to USD 803m (USD 513m) and an increase in
EBIT of USD 209m to USD 606m (USD 397m).
In gateway terminals, revenue was USD 1.9bn (USD 1.5bn),
with an increase of 17% in volume mainly driven by a volume
surge and higher storage income in North America in H1
2021, in combination with a COVID-19 related impact in
2020. Excluding the newly consolidated terminal in 2021,
like-for-like volumes increased by 13%. Capacity utilisation
increased to 75% (67%). Revenue per move increased to
USD 299 (USD 272) and cost per move decreased to USD
235 (USD 242). EBITDA increased to USD 693m (USD 399m)
and EBIT increased to USD 541m (USD 306m).
In Towage, revenue was USD 365m (USD 338m), positively
impacted by foreign exchange rate development as well as
volume increases in Asia, Middle East & Africa, and Australia,
partly offset by lower volumes in Europe, particularly in
Scandinavia, the UK, and in the Americas, particularly in
Brazil. EBITDA of USD 111m was on par with the prior period
(USD 115m). EBIT decreased by 29% to USD 65m (USD 91m).
Manufacturing & Others
Revenue was USD 344m (USD 316m) with an EBITDA of
USD 41m (USD 49m) and an EBIT of USD 33m (USD 0m).
For Maersk Container Industry, revenue increased to
USD 179m (USD 154m), driven by strong market demand,
increase in sale prices and stronger service sales. EBITDA
decreased by USD 7m to USD 21m (USD 28m) due to an
increase in direct material cost. EBIT decreased by USD 32m
to USD 33m (USD 65m) mainly due to the sale of the MCI
Dongguan factory in China in Q2 2020. As communicated
Manufacturing & Others highlights
USD million Q Q H H M
Revenue
Profit/loss before depreciation amortisation and
impairment losses etc (EBITDA)
EBITDA margin % % % % %
Profit/loss before financial items (EBIT) -
EBIT margin % % % % %
Invested capital
Gross capital expenditure excl acquisitions and
divestments (CAPEX) -
18
Terminals & Towage | Manufacturing & Others Directors’ ReportA.P. Moller - Maersk Interim Report Q2 | 6 August 2021
at the A.P. Moller - Maersk Capital Markets Day in March,
a strategic review of Maersk Container Industry has been
initiated.
For Maersk Supply Service, revenue increased to USD 75m
(USD 56m) mainly driven by an increase in activity and
higher rates. EBITDA increased to positive USD 9m (neg-
ative USD 4m) driven by the improved market conditions,
only partly offset by an increase in operating cost. EBIT in
Q2 increased by USD 74m to negative USD 2m (negative
USD 76m). EBIT was positively impacted by an increase in
activity and higher rates. The period on period result was
to a larger extent positively impacted by an impairment
loss recognised in Q2 2020.
Maersk Supply Service won a large project contract in Brazil,
and the project work will be carried out over 2021 and 2022.
Further, Maersk Supply Service was awarded new contracts
in key geographies such as Africa and Europe in Q2.
For other businesses, revenue was USD 90m (USD 106m)
with an EBITDA of USD 12m (USD 25m) and an EBIT of USD
3m (USD 10m).
Financial review H1 2021
Revenue was USD 686m (USD 611m) with an EBITDA of
USD 73m (USD 92m).
Revenue in Maersk Container Industry was USD 378m (USD
278m) of which 76% was related to third-party customers.
EBITDA was USD 46m (USD 42m) driven by improved con-
tribution from higher sales in Q1 2021, partly offset by an
increase in material cost in Q2 2021.
Maersk Supply Service reported a revenue of USD 129m
(USD 126m) and an EBITDA of USD 0m (USD 11m) mainly
driven by an increase in crew cost.
For other businesses, revenue was USD 179m (USD 207m)
with an EBITDA of USD 27m (USD 39m) and an EBIT of USD
5m (USD 10m).
19
Manufacturing & Others Directors’ ReportA.P. Moller - Maersk Interim Report Q2 | 6 August 2021
Statement of the Board of Directors
and the Executive Board
Executive Board
Board of Directors
20
Statement of the Board of Directors and the Executive Board Directors’ ReportA.P. Moller - Maersk Interim Report Q2 | 6 August 2021
Financials
Condensed income statement
Note Q Q months months M
Revenue 14,230 8,997 26,669 18,568 39,740
Profit before depreciation amortisation and impairment losses etc (EBITDA) 5,064 1,697 9,103 3,218 8,226
Depreciation amortisation and impairment losses net 1,087 1,149 2,112 2,222 4,541
Gain on sale of non-current assets etc net 12 145 19 164 202
Share of profit/loss in joint ventures and associated companies 95 58 171 143 299
Profit/loss before financial items (EBIT) 4,084 751 7,181 1,303 4,186
Financial items net -186 -232 -416 -447 -879
Profit/loss before tax 3,898 519 6,765 856 3,307
Tax 152 76 302 204 407
Profit/loss for the period 3,746 443 6,463 652 2,900
Of which:
Non-controlling interests 33 16 53 28 50
AP Møller - MærskA/S’ share 3,713 427 6,410 624 2,850
Earnings per share USD 194 21 333 31 145
Diluted earnings per share USD 193 21 332 31 145
Condensed statement of comprehensive income
Note Q Q months months M
Profit/loss for the period 3,746 443 6,463 652 2,900
Translation from functional currency to presentation currency 111 134 -106 -222 195
Reclassified to income statement gain on sale of non-current assets etc net 16 64 23 64 64
Cash flow hedges -8 69 -69 -132 43
Tax on other comprehensive income 2 -2 -7 25 10
Share of other comprehensive income of joint ventures and associated companies
net of tax -1 -4 -9 4 5
Total items that have been ormay be reclassified subsequently to the income
statement 120 261 -168 -261 317
Other equity investments 1 3 2 3 2
Actuarial gains/losses on defined benefit plans etc -69 -100 -69 70 -207
Tax on other comprehensive income 13 - 13 - -4
Total items that will not be reclassified to the income statement -55 -97 -54 73 -209
Other comprehensive income net of tax 65 164 -222 -188 108
Total comprehensive income for the period 3,811 607 6,241 464 3,008
Of which:
Non-controlling interests 31 6 50 9 47
AP Møller - MærskA/S’ share 3,780 601 6,191 455 2,961
21
Interim consolidated financial statements Q2 2021 Financials
A.P. Moller - Maersk Interim Report Q2 | 6 August 2021
Amounts in USD million
Condensed balance sheet at 30June
Note June June M
Intangible assets 4,981 4,961 5,145
Property plant and equipment 26,397 26,667 26,481
Right-of-use assets 9,002 8,313 8,323
Financial non-current assets etc 2,933 3,413 3,183
Deferred tax 272 230 249
Total non-current assets 43,585 43,584 43,381
Inventories 1,486 946 1,049
Receivables etc 6,425 5,411 5,603
Securities 1 1 1
Cash and bank balances 8,106 5,243 5,865
Assets held for sale 437 134 218
Total current assets 16,455 11,735 12,736
Total assets 60,040 55,319 56,117
Note June June M
Equity attributable to AP Møller - MærskA/S 34,269 27,527 29,850
Non-controlling interests 1,013 1,042 1,004
Total equity 35,282 28,569 30,854
Lease liabilities non-current 7,593 7,174 7,356
Borrowings non-current 4,850 7,621 5,868
Other non-current liabilities 1,937 2,250 1,985
Total non-current liabilities 14,380 17,045 15,209
Lease liabilities current 1,871 1,315 1,391
Borrowings current 239 1,157 758
Other current liabilities 8,024 7,165 7,814
Liabilities associated with assets held for sale 244 68 91
Total current liabilities 10,378 9,705 10,054
Total liabilities 24,758 26,750 25,263
Total equity and liabilities 60,040 55,319 56,117
22
Amounts in USD million
Interim consolidated financial statements Q2 2021 Financials
A.P. Moller - Maersk Interim Report Q2 | 6 August 2021
Condensed cash flow statement
Note Q Q months months M
Profit/loss before financial items 4,084 751 7,181 1,303 4,186
Non-cash items etc 1,075 1,157 1,958 2,059 4,305
Change in working capital -886 58 -1,345 -104 -239
Cash flow from operating activities before tax 4,273 1,966 7,794 3,258 8,252
Taxes paid -136 -99 -224 -175 -424
Cash flow from operating activities 4,137 1,867 7,570 3,083 7,828
Purchase of intangible assets and property plant and equipment (CAPEX) -452 -362 -781 -672 -1,322
Sale of intangible assets and property plant and equipment 89 136 124 182 435
Sale of other equity investments - 1 4 1 5
Acquisition of subsidiaries and activities -10 -234 -10 -266 -425
Sale of subsidiaries and activities -29 30 -28 35 36
Dividends received 36 20 95 42 177
Financial investments etc net 47 -212 -53 -199 70
Cash flow used for investing activities -319 -621 -649 -877 -1,024
Repayments of/proceeds from borrowings net -982 897 -1,465 512 -1,860
Repayments of lease liabilities -453 -396 -1,082 -738 -1,710
Financial payments net -13 -96 -96 -170 -292
Financial expenses paid on lease liabilities -114 -118 -228 -231 -468
Purchase of own shares -448 -302 -781 -598 -806
Dividends distributed -128 -55 -1,017 -430 -430
Dividends distributed to non-controlling interests -29 -23 -41 -35 -92
Other equity transactions 24 34 33 11 40
Cash flow from financing activities -2,143 -59 -4,677 -1,679 -5,618
Net cash flow for the period 1,675 1,187 2,244 527 1,186
Cash and cash equivalents beginning of period 6,401 4,032 5,845 4,758 4,758
Currency translation effect on cash and bank balances 18 -13 5 -79 -80
Cash and cash equivalents end of period 8,094 5,206 8,094 5,206 5,864
Of which classified as assets held for sale -23 - -23 - -19
Cash and cash equivalents end of period 8,071 5,206 8,071 5,206 5,845
Cash and cash equivalents
Cash and bank balances 8,106 5,243 8,106 5,243 5,865
Overdrafts 35 37 35 37 20
Cash and cash equivalents end of period 8,071 5,206 8,071 5,206 5,845
Cash and bank balances include USD 1.1 bn (USD 1.1 bn) relating to cash and bank balances in countries with exchange control
or other restrictions. These funds are not readily available for general use by the parent company or other subsidiaries.
23
Amounts in USD million
Interim consolidated financial statements Q2 2021 Financials
A.P. Moller - Maersk Interim Report Q2 | 6 August 2021
Condensed statement of changes in equity
AP Møller - Mærsk A/S
Share capital Translation
reserve
Reserve for
other equity
investments
Reserve
for hedges
Retained
earnings
Total Non-
controlling
interests
Total equity
Equity January 3,632 -432 -6 -42 26,698 29,850 1,004 30,854
Other comprehensive income
net of tax - -78 2 -77 -66 -219 -3 -222
Profit/loss for the period - - - - 6,410 6,410 53 6,463
Total comprehensive income
for the period - -78 2 -77 6,344 6,191 50 6,241
Dividends to shareholders - - - - -1,017 -1,017 -49 -1,066
Value of share-based payment - - - - 7 7 - 7
Purchase of own shares - - - - -781 -781 - -781
Sale of own shares - - - - 20 20 - 20
Capital increases and decreases -119 - - - 119 - 8 8
Transfer of gain/loss on disposal
of equity investments to retained
earnings - - -2 - 2 - - -
Other equity movements - - - - -1 -1 - -1
Total transactions with
shareholders -119 - -2 - -1,651 -1,772 -41 -1,813
Equity June 3,513 -510 -6 -119 31,391 34,269 1,013 35,282
Equity January 3,774 -692 -4 -97 25,117 28,098 739 28,837
Other comprehensive income
net of tax - -142 3 -104 74 -169 -19 -188
Profit/loss for the period - - - - 624 624 28 652
Total comprehensive income
for the period - -142 3 -104 698 455 9 464
Dividends to shareholders - - - - -430 -430 -39 -469
Value of share-based payment - - - - 5 5 - 5
Acquisition of non-controlling
interests - - - - -3 -3 329 326
Purchase of own shares - - - - -598 -598 - -598
Capital increases and decreases -142 - - - 142 - 4 4
Total transactions with
shareholders -142 - - - -884 -1,026 294 -732
Equity June 3,632 -834 -1 -201 24,931 27,527 1,042 28,569
24
Amounts in USD million
Interim consolidated financial statements Q2 2021 Financials
A.P. Moller - Maersk Interim Report Q2 | 6 August 2021
Note 1 Segment information
Ocean Logistics
& Services
Terminals
& Towage
Manu-
facturing
& Others
Total
Q2 2021
External revenue
Inter-segment revenue
Total segment revenue
Unallocated items
Eliminations -
Total revenue
Segment profit/loss before depreciation amortisation and impairment losses
etc (EBITDA)
Unallocated items -
Eliminations
Consolidated profit/loss before depreciation amortisation and impairment losses
etc (EBITDA)
Segment profit/loss before financial items (EBIT)
Unallocated items -
Eliminations
Consolidated profit/loss before financial items (EBIT)
Segment invested capital
Unallocated items -
Eliminations -
Consolidated invested capital
Segment gross capital expenditures excl acquisitions and divestments (CAPEX) -
Unallocated items
Eliminations
Consolidated gross capital expenditures excl acquisitions and divestments (CAPEX)
25
Amounts in USD million
Interim consolidated financial statements Q2 2021 Financials
A.P. Moller - Maersk Interim Report Q2 | 6 August 2021
Note 1 Segment information – continued
Ocean Logistics
& Services
Terminals
& Towage
Manu-
facturing
& Others
Total
Q2 2020
External revenue
Inter-segment revenue
Total segment revenue
Unallocated items
Eliminations -
Total revenue
Segment profit/loss before depreciation amortisation and impairment losses
etc (EBITDA)
Unallocated items -
Eliminations -
Consolidated profit/loss before depreciation amortisation and impairment losses
etc (EBITDA)
Segment profit/loss before financial items (EBIT) -
Unallocated items -
Eliminations
Consolidated profit/loss before financial items (EBIT)
Segment invested capital
Unallocated items
Eliminations -
Consolidated invested capital
Segment gross capital expenditures excl acquisitions and divestments (CAPEX)
Unallocated items -
Eliminations -
Consolidated gross capital expenditures excl acquisitions and divestments (CAPEX)
26
Amounts in USD million
Interim consolidated financial statements Q2 2021 Financials
A.P. Moller - Maersk Interim Report Q2 | 6 August 2021
Note 1 Segment information – continued
Ocean Logistics
& Services
Terminals
& Towage
Manu-
facturing
& Others
Total
6 months 2021
External revenue
Inter-segment revenue
Total segment revenue
Unallocated items
Eliminations -
Total revenue
Segment profit/loss before depreciation amortisation and impairment losses
etc (EBITDA)
Unallocated items -
Eliminations
Consolidated profit/loss before depreciation amortisation and impairment losses
etc (EBITDA)
Segment profit/loss before financial items (EBIT)
Unallocated items -
Eliminations
Consolidated profit/loss before financial items (EBIT)
Segment invested capital
Unallocated items -
Eliminations -
Consolidated invested capital
Segment gross capital expenditures excl acquisitions and divestments (CAPEX)
Unallocated items
Eliminations -
Consolidated gross capital expenditures excl acquisitions and divestments (CAPEX)
27
Amounts in USD million
Interim consolidated financial statements Q2 2021 Financials
A.P. Moller - Maersk Interim Report Q2 | 6 August 2021
Note 1 Segment information – continued
Ocean Logistics
& Services
Terminals
& Towage
Manu-
facturing
& Others
Total
6 months 2020
External revenue
Inter-segment revenue
Total segment revenue
Unallocated items
Eliminations -
Total revenue
Segment profit/loss before depreciation amortisation and impairment losses
etc (EBITDA)
Unallocated items -
Eliminations -
Consolidated profit/loss before depreciation amortisation and impairment losses
etc (EBITDA)
Segment profit/loss before financial items (EBIT)
Unallocated items -
Eliminations
Consolidated profit/loss before financial items (EBIT)
Segment invested capital
Unallocated items
Eliminations -
Consolidated invested capital
Segment gross capital expenditures excl acquisitions and divestments (CAPEX)
Unallocated items -
Eliminations
Consolidated gross capital expenditures excl acquisitions and divestments (CAPEX)
USD million Types of revenue Q Q months months M
Ocean Freight revenue
Other revenue including hubs
Logistics & Services Managed by Maersk
Fulfilled by Maersk
Transported by Maersk
Terminals & Towage Terminal services
Towage services
Manufacturing & Others Sale of containers and spare parts
Offshore supply services
Other shipping activities
Other services
Unallocated activities and eliminations - - - - -
Total revenue
1 Including revenue eliminations between terminal services and towage services.
28
Amounts in USD million
Interim consolidated financial statements Q2 2021 Financials
A.P. Moller - Maersk Interim Report Q2 | 6 August 2021
Note 2 Share capital
Development in the number of shares:
A shares of B shares of Nominal value
DKK DKK DKK DKK DKK million USD million
January
Cancellation - -
June
January
Cancellation
June
At the Annual General Meeting of A.P. Møller - Mærsk A/S on 23 March 2021, the shareholders decided on the cancellation of
treasury shares, whereby the share capital would be decreased. On 20 May 2021, the Company’s share capital was reduced
from nominally DKK 20,031,947,000 by nominally DKK 655,931,000 in total, divided into 131,186 A shares and 524,745 B shares
of DKK 1,000 to nominally DKK 19,376,016,000 by cancellation of own shares.
Development in the holding of own shares:
No of shares of DKK Nominal value DKK million % of share capital
Own shares
A shares
January % %
Addition % %
Cancellation % %
June % %
B shares
January % %
Addition % %
Cancellation % %
Disposal % %
June % %
Disposals of own shares are related to the share option plans and the restricted shares plan.
The dividend of DKK 330 per share of DKK 1,000 – total of DKK 6,610m is equivalent to USD 1,017m excluding own shares.
Hereof, USD 889m was paid to shareholders on 26 March 2021 and the withholding tax of USD 128m was paid in Q2 2021.
Payment of dividends to shareholders does not trigger taxes to A.P. Moller - Maersk.
29
Amounts in USD million
Interim consolidated financial statements Q2 2021 Financials
A.P. Moller - Maersk Interim Report Q2 | 6 August 2021
Acquisitions after 30 June 2021
Visible Supply Chain Management, North America
As announced, the Group acquired 100% of the
shares in Visible Supply Chain Management, an
e-commerce logistics provider focusing on e-ful-
filment, parcel delivery services and freight man-
agement, based in North America. Visible Supply
Chain Management will contribute with strong
e-commerce capabilities and further strengthen
the business-to-consumer part of our business.
The total enterprise value is USD 838m.
The interim consolidated financial statements have
been prepared in accordance with IAS 34 Interim
Financial Reporting as issued by the International
Accounting Standards Board (IASB) and adopted by
the EU and additional Danish disclosure requirements
for interim financial reporting of listed companies.
The accounting policies, judgements and significant
estimates are consistent with those applied in the
Annual Report 2020, notes 23 and 24, to which ref-
erence is made, apart from the changes described
below:
B2C Europe, Europe
As announced, the Group acquired 100% of the shares
in B2C Europe, an e-commerce logistics provider spe-
cialising in cross-border parcel delivery services, based
in Europe. B2C Europe will contribute with strong
e-commerce capabilities and further strengthen the
business-to-consumer part of our business.
The total enterprise value is USD 86m.
The transaction is subject to closing conditions including
regulatory approvals and is expected to close in Q4 2021.
Change to product groups in reportable segment
As part of the refinement of the segment structure
of A.P. Moller - Maersk, the product groups of the
Logistics & Services segment have been updated.
Refer to the Logistics & Services product specifi-
cations on page 15.
Change in segment measure of profit or loss
The segment measure of profit has been changed
from EBITDA to EBIT, as EBIT is regularly reviewed
by management when making decisions about re-
source allocations.
Change to accounting estimates
The estimated useful life and residual values of
containers have been revised. The net effect of the
changes was an increase in EBIT of USD 108m in
Q2 2021. The effect for H1 was USD 212m.
The useful life of new containers is typically esti-
mated to 15 years. The residual values are initially
estimated between 10% and 30%, depending on
the container type.
Note 3 Acquisition of subsidiaries
Note 4 Accounting policies, judgements and significant estimates
30
Amounts in USD million
Interim consolidated financial statements Q2 2021 Financials
A.P. Moller - Maersk Interim Report Q2 | 6 August 2021
Additional information
Quarterly summary
Income statement Q Q Q Q Q Q
Revenue
Profit before depreciation amortisation and impairment losses etc
(EBITDA)
Depreciation amortisation and impairment losses net
Gain on sale of non-current assets etc net
Share of profit/loss in joint ventures and associated companies
Profit/loss before financial items (EBIT)
Financial items net - - - - - -
Profit/loss before tax
Tax
Profit/loss for the period
AP Møller - Mærsk A/S’ share
Underlying profit/loss
Balance sheet
Total assets
Total equity
Invested capital
Net interest-bearing debt
Cash flow statement
Cash flow from operating activities
Gross capital expenditure excl acquisitions and divestments
(CAPEX)
Cash flow from financing activities - - - - - -
Free cash flow
Financial ratios
Revenue growth % % % -% -% %
EBITDA margin % % % % % %
EBIT margin % % % % % %
Cash conversion % % % % % %
Return on invested capital after tax (ROIC) (last twelve months) % % % % % %
Equity ratio % % % % % %
Underlying ROIC % % % % % %
Underlying EBITDA
Underlying EBITDA margin % % % % % %
Underlying EBIT
Underlying EBIT margin % % % % % %
Stock market ratios
Earnings per share – continuing operations USD
Diluted earnings per share – continuing operations USD
Cash flow from operating activities per share USD
Share price (B share) end of period DKK
Share price (B share) end of period USD
Total market capitalisation end of period USD
1 Underlying profit/loss is profit/loss for the period from continuing operations adjusted for net gains/losses from
sale of non-current assets etc. and net impairment losses as well as transaction, restructuring and integration
costs related to major transactions. The adjustments are net of tax and include A.P. Moller - Maersk’s share of
mentioned items in joint ventures and associated companies.
31
Amounts in USD million
Quarterly summary Additional informationA.P. Moller - Maersk Interim Report Q2 | 6 August 2021
Definition of terms
Technical terms, abbreviations and definitions of key figures and financial ratios.
Backhaul
The direction of the trade route with
the lowest volumes, whereas the
opposite direction is referred to as
headhaul.
CAPEX
Cash payments for intangible assets
and property, plant and equipment,
excluding acquisitions and divest-
ments.
Cash conversion
Cash flow from operating activities to
EBITDA ratio.
Cash flow from operating
activities per share
A.P. Moller - Maersk’s operating cash
flow from continuing operations divided
by the number of shares (of DKK 1,000
each), excluding A.P. Moller - Maersk’s
holding of own shares.
Cost per move
Includes cost (EBITDA less revenue
less other income), depreciation and
excludes IFRIC12 construction cost.
EBIT
Earnings Before Interest and Taxes.
EBITA
Earnings Before Interest, Tax and
Amortisation.
EBITDA
Earnings Before Interest, Taxes,
Depreciation and Amortisation.
Equity ratio
Calculated as equity divided by total
assets.
FFE
Forty Foot container Equivalent unit.
Free cash flow (FCF)
Comprised of cash flow from operating
activities, purchase/sale of intangible
assets and property, plant and equip-
ment, dividends received, repayments
of lease liabilities, financial payments
and financial expenses paid on lease
liabilities.
Gross profit
The sum of revenue, less variable costs
and loss on debtors.
Headhaul
The direction of the trade route with the
highest volumes, whereas the return
direction is referred to as backhaul.
Invested capital
Segment assets less liabilities.
kcbm
The freight volume of the shipment
for domestic and international freight.
Cubic metre (CBM) measurement is cal-
culated by multi plying the width, height
and length together of the shipment.
Loaded volumes
Loaded volumes refer to the number of
FFEs loaded on a shipment which are
loaded on first load at vessel departure
time excluding displaced FFEs.
Net interest-bearing debt (NIBD)
Equals interest-bearing debt, including
leasing liabilities, fair value of deriva-
tives hedging the underlying debt, less
cash and bank balances as well as other
interest-bearing assets.
Return on invested capital
after tax (ROIC)
Profit/loss before financial items for
the year (EBIT) less tax on EBIT divided
by the average invested capital, last
twelve months.
Revenue per move
Includes terminal revenue, other
income, government grants and
excludes IFRIC12 construction
revenue.
TEU
Twenty-foot container Equivalent
Unit.
Time charter
Hire of a vessel for a specified period.
Total market capitalisation
Total number of shares – excluding
A.P. Møller - Mærsk A/S’ holding of
own shares – multiplied by the end-
of-quarter price quoted by Nasdaq
Copenhagen.
Underlying profit/loss
Underlying profit/loss is profit/loss
for the period from continuing oper-
ations adjusted for net gains/losses
from sale of non-current assets etc.
and net impairment losses as well as
transaction, restructuring and inte-
gration costs related to major trans-
actions. The adjustments are net of
tax and include A.P. Moller - Maersk’s
share of mentioned items in joint
ventures and associated companies.
VSA
Vessel Sharing Agreement is usually
reached between various partners
within a shipping consortium who
agree to operate a liner service along
a specified route using a specified
number of vessels.
4PL
A 4PL is a fourth-party logistics pro-
vider managing resources, technology,
infrastructure, and managing external
3PLs to design, build and provide supply
chain solutions for businesses.
32 Definition of terms Additional informationA.P. Moller - Maersk Interim Report Q2 | 6 August 2021
Colophon
Editors
Stig Frederiksen
Finn Glismand
Henrik Jensen
Design and layout
e-Types
Produced in Denmark 2021
Board of Directors
Jim Hagemann Snabe, Chairman
Ane Mærsk Mc-Kinney Uggla, Vice Chairman
Bernard L. Bot
Marc Engel
Arne Karlsson
Thomas Lindegaard Madsen
Blythe S. J. Masters
Amparo Moraleda
Jacob Andersen Sterling
Robert Mærsk Uggla
Executive Board
Søren Skou, Chief Executive Officer (CEO)
Patrick Jany (CFO)
Vincent Clerc
Morten Engelstoft
Navneet Kapoor
Henriette Hallberg Thygesen
Audit Committee
Arne Karlsson, Chairman
Bernard L. Bot
Amparo Moraleda
Jim Hagemann Snabe
Remuneration Committee
Jim Hagemann Snabe, Chairman
Amparo Moraleda
Robert Mærsk Uggla
Nomination Committee
Ane Mærsk Mc-Kinney Uggla, Chairman
Jim Hagemann Snabe
Robert Mærsk Uggla
Transformation & Innovation Committee
Jim Hagemann Snabe, Chairman
Marc Engel
Blythe S. J. Masters
Amparo Moraleda
33 ColophonA.P. Moller - Maersk Interim Report Q2 | 6 August 2021