A.p. Moller - Maersk A/s Class A · OMXCOP:MAERSK_A
A.p. Moller - Maersk A/s Class A — A.P. Møller - Mærsk — FY 2023 Earnings Presentation
35 slides from A.p. Moller - Maersk A/s Class A's earnings presentation, February 2024
Slide 1: A.P. Møller - Mærsk A/S FY & Q4 2023 Investor Presentation
A.P. Møller - Mærsk A/S FY & Q4 2023 Investor Presentation
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains forward-looking statements. Such statements are subject to risks and uncertainties as various factors, many of which are beyond the control of A.P. Møller - Mærsk A/S (APMM), may cause actual developments and results to differ materially from the
Slide 3: Full year and Q4 2023 Highlights
Full year and Q4 2023 Highlights 3 APMM FY & Q4 2023 Financial Results
Slide 4: A solid year delivering on the guidance in a difficult environment
Highlights A solid year delivering on the guidance in a difficult environment • 2023 revenue of USD 51.1bn, with financial guidance achieved: • Underlying EBITDA of USD 9.8bn (19.1% margin) • Underlying EBIT of USD 4.0bn (7.8% margin) • Net profit after tax of USD 3.9bn in 2023 (ROIC 7.4%) • Decisiv
Slide 5: Dividend and share buyback update, Svitzer spin-off
Highlights Dividend and share buyback update, Svitzer spin-off • Given the uncertainties ahead and in line with the implementation of its Integrator strategy, APMM will exercise a prudent capital allocation • As a consequence, the Board has decided to • Propose a dividend of DKK 515 per share for 20
Slide 6: Performing while transforming
Highlights Performing while transforming Logistics & Services Ocean Terminals Building for profitable growth Effective cost management Resilient returns USDm Normalized to 100 Revenue (USDm) / ROIC (%) 3,860 EBITDA 3,542 1,089 EBIT 202 999 1,019 Revenue 3,016 872 184 30% 740 12% 328 11% 11% 2,061 28
Slide 7: Reinforcing our commitment to the strategic transformation
2021–2025 Reinforcing our commitment to the strategic transformation Segment KPI Targets1 LTM Every year >7.5% 7.4% APMM Return on invested capital (ROIC) – (LTM) (Average 2021-25 >12.0%) (37.7%2) Ocean EBIT margin – under normalised conditions Above 6% 6.6% Execute with the existing fleet size 4.1-
Slide 8: Clear strategic priorities for 2024
Highlights Clear strategic priorities for 2024 Logistics & Ocean Terminals Services Renew with growth Deliver best-in-class Sustain momentum on and raise margins performance and prepare for the operational excellence and focus network of the future on growth • Build on baseline from 2023 and • Defen
Slide 9: Red Sea disruption affects only ~1/3 of Maersk Ocean volumes
Highlights Red Sea disruption affects only ~1/3 of Maersk Ocean volumes and structural overcapacity challenges will prevail as the year progresses Asia-Europe headhaul rate | USD / FFE Supply-demand imbalance 3 months’ disruption (Index 100 = Oct ‘23) 10% 12 months’ disruption 3 months’ 180 8% disru
Slide 10: 2024 financial guidance
Guidance 2024 financial guidance • APMM expects global container volume growth to be 2.5-4.5% and to grow in line with the market • APMM provides its 2024 financial outlook against the backdrop of: • Significant oversupply challenge (as previously communicated in Nov EBITDA underlying EBIT underlyin
Slide 11: Q4 2023 Financial review
Q4 2023 Financial review 11 APMM FY & Q4 2023 Financial Results
Slide 12: A solid year in a difficult environment
Financial review A solid year in a difficult environment Q4 2023, USD FY 2023, USD • Delivered financial results in line with guidance Revenue EBITDA Revenue EBITDA • Q4 EBITDA decreased to USD 0.8bn, generating a margin of 7.1%, while 11.7bn 0.8bn 51.1bn 9.6bn EBIT decreased to USD -0.5bn reflectin
Slide 13: Negative FCF of USD 1.7bn mainly due to lower operational cash flow
Financial highlights Q4 2023 Negative FCF of USD 1.7bn mainly due to lower operational cash flow – capex for the full year in line with guidance Cash flow bridge for Q4 2023, USDm Operational cash flow of USD 166m (USD 8.2bn) impacted by 200 166 lower EBITDA of USD 839m (USD -763 6.5bn) and negative
Slide 14: Ocean – Fourth quarter 2023
Fourth quarter 2023 Development in EBIT (USDm) and EBIT margin (%) Ocean 10,000 50% 8,000 40% 6,000 30% 20% 4,000 • Revenue decreased by 46% to USD 7.2bn, mainly 10% due to 50% lower freight rates partially offset by a 2,000 0% volume increase of 11%. Sequentially, freight rates 0 -10% declined 8.1%
Slide 15: EBITDA decrease mainly due to lower freight rates
Ocean – Fourth quarter 2023 EBITDA decrease mainly due to lower freight rates EBITDA bridge for Ocean for Q4 2023, USDm USDm 964 7,000 6,500 6,034 6,000 119 1,500 286 163 1,000 -6,057 500 196 -1,312 0 EBITDA Q4-22 Volume effect Freight rate effect Bunker price Container Network cost Other revenue, E
Slide 16: Volumes increased but freight rates continue to decline at pace
Ocean – Fourth quarter 2023 Volumes increased but freight rates continue to decline at pace Q4 Q3 Q/Q Q4 Y/Y • Average freight rates decreased by 50%, with both Ocean KPIs 2023 2023 change 2022 change contract rates and shipment rates declining. Sequentially, rates declined by 8.1% Average freight r
Slide 17: Unit costs (USD per FFE) decreased throughout 2023
Ocean – Fourth quarter 2023 Unit costs (USD per FFE) decreased throughout 2023 • Operating costs decreased by 3.2% driven by lower bunker USD/FFE Loaded FFEk prices, lower container handling costs and lower slot charter 4,000 3,500 costs 3,000 • Total bunker costs decreased by 10% to USD 1.6bn, driv
Slide 18: Logistics & Services – Fourth quarter 2023
Fourth quarter 2023 Development in EBIT (USDm) and EBIT margin (%) Logistics & Services 300 8% 6% 200 • Revenue decreased by 8.2% to USD 3.5bn (USD 3.9bn) with organic revenue declining 10%. Retail 4% and Lifestyle sectors continued to be challenged, 100 especially in North America 2% • Impact from
Slide 19: Lower rate effect continues
Logistics & Services – Fourth quarter 2023 Lower rate effect continues Q4 Q4 FY FY Revenue, USDm 2023 2022 2023 2022 Managed by Maersk 479 609 2,168 2,491 - growth % -21% -13% Fulfilled by Maersk 1,450 1,569 5,452 4,916 • Managed by Maersk revenue decreased by USD 130m to USD 479m (USD 609m), affect
Slide 20: Terminals – Fourth quarter 2023
Fourth quarter 2023 Development in EBIT (USDm) and EBIT margin (%) Terminals 400 40% 300 30% • Revenue increased by 2.0% to USD 1.0bn due to 3.2% 200 20% higher volume (6.8% like-for-like) driven by the Americas and Africa 100 10% • EBIT on par at USD 234m, with decreasing storage 0 0% revenue being
Slide 21: Growing top-line and robust margins
Terminals – Fourth quarter 2023 Growing top-line and robust margins USDm Terminals’ EBITDA bridge • Terminals’ volume increased by 3.2% (6.8% like-for-like 350 excluding exits) driven by the Americas, impacting EBITDA positively by USD 38m 325 -6 -4 • Revenue per move decreased by 1.8% with decreasi
Slide 22: Towage & Maritime Services – Fourth quarter 2023
Fourth quarter 2023 Development in EBIT (USDm) and EBIT margin (%) Towage & Maritime Services 200 40% • Revenue increased to USD 571m (USD 568m) mainly due 150 30% to higher market demand in Maersk Container Industry, 100 20% increased activity in Svitzer partly offset by divestment 50 10% of Maersk
Slide 23: Questions and answers
Questions and answers To ask a question, please press 1 Reminder: ONE question per turn 23 APMM FY & Q4 2023 Financial Results
Slide 24: Final remarks
Final remarks • Concluded a transitional year with solid results in line with guidance • Proposed dividend of DKK 515 per share, Svitzer spin-off to shareholders, share buyback programme suspended • Guidance for 2024 reflecting high uncertainty around Red Sea disruption and significant oversupply ch
Slide 25: Appendix
Appendix 25 APMM FY & Q4 2023 Financial Results
Slide 26: Maersk first in shipping to have climate targets validated by SBTi
Spearheading sustainable change within our industry Maersk first in shipping to have climate targets validated by SBTi Climate targets for 2030 and 2040 30% validated by the Science Based Targets initiative (SBTi) Continued investments in end-to-end logistics decarbonization solutions with more than
Slide 27: Financial highlights FY 2023
Financial highlights FY 2023 Revenue EBITDA EBIT CAPEX FY FY FY FY FY FY FY FY USD million %Δ %Δ %Δ %Δ 2023 2022 2023 2022 2023 2022 2023 2022 Ocean 33,653 64,299 -48% 6,940 33,770 -79% 2,227 29,149 -92% 1,987 2,620 -24% Logistics & Services 13,916 14,423 -3.5% 1,251 1,378 -9.2% 446 814 -45% 771 657
Slide 28: Financial highlights Q4 2023
Financial highlights Q4 2023 Revenue EBITDA EBIT CAPEX Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 USD million %Δ %Δ %Δ %Δ 2023 2022 2023 2022 2023 2022 2023 2022 Ocean 7,180 13,299 -46% 196 6,034 -97% -920 4,817 -119% 692 427 -62% Logistics & Services 3,542 3,860 -8.2% 285 328 -13% 60 139 -57% 224 174 29% Terminals 1,
Slide 29: Consolidated financial information
Financial highlights Consolidated financial information Income statement (USDm) Q4 2023 Q4 2022 FY 2023 FY 2022 Key figures and financials (USDm) Q4 2023 Q4 2022 FY 2023 FY 2022 Revenue 11,741 17,820 51,065 81,529 Profit/loss for the period -456 4,981 3,908 29,321 EBITDA 839 6,540 9,591 36,813 Gain/
Slide 30: Consolidated financial information
Financial highlights Consolidated financial information Cash flow statement (USDm) Q4 2023 Q4 2022 FY 2023 FY 2022 Profit/loss before financial items -537 5,122 3,394 30,860 Non-cash items, etc. 1,370 1,643 5,973 6,225 Change in working capital -513 1,678 417 -1,808 Taxes paid -154 -243 -681 -801 Ca
Slide 31: Balance sheet and capital allocation
Financial highlights Balance sheet and capital allocation Debt & cash position Q4 2023 Q3 2023 Q4 2022 • Strong balance sheet maintained Borrowings 4,366 4,221 4,029 • Commitment to shareholder returns and maintaining Lease liabilities 10,448 10,632 11,614 investment grade Other 63 243 365 Total gro
Slide 32: EBITDA decrease mainly due to lower freight rates
Financial highlights - Ocean full year 2023 EBITDA decrease mainly due to lower freight rates EBITDA bridge for Ocean for FY 2023, USDm USDm 34,000 33,770 33,000 -79 11,000 10,000 838 926 9,000 1,436 8,000 6,940 7,000 -2,801 6,000 -27,149 5,000 4,000 3,000 2,000 1,000 0 EBITDA 2022 Volume effect Fre
Slide 33: Net interest-bearing debt bridge – FY 2022 to FY 2023
Financial highlights FY2023 Net interest-bearing debt bridge – FY 2022 to FY 2023 Development in net interest-bearing debt (NIBD) FY 2023, USD bn 0 Liquidity reserve1 decreased to -2 USD 24.4bn by end Q4 2023. -4 2.0 0.1 2.0 -4.7 11.6 3.2 Investment grade credit rating -6 of BBB+ (stable) from S&P a
Slide 34: Earnings distribution to shareholders
Financial highlights Q4 2023 Earnings distribution to shareholders DKK bn 100 95 90 85 21.1 80 75 70 65 60 19.7 55 50 74.4 36.7 15 12.3 48.5 10 5.2 3.9 3.2 5 5.3 5.0 4.4 4.4 5.3 6.2 6.6 6.5 3.1 3.1 3.1 3.1 6.5 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Extraordinary dividend
Slide 35: IR Contact Information & Financial Calendar
IR Contact Information & Financial Calendar Investor Relations Contacts Financial Calendar Stefan Gruber 14 March 2024 Annual General Meeting Head of Investor Relations +45 3363 3484 2 May 2024 Q1 2024 Interim Report Mikkel Johansen 7 August 2024 Q2 2024 Interim Report Senior Investor Relations Offi