A.p. Moller - Maersk A/s Class A · OMXCOP:MAERSK_A
A.p. Moller - Maersk A/s Class A — A.P Moller - Maersk — Q2 2024 Earnings Presentation
28 slides from A.p. Moller - Maersk A/s Class A's earnings presentation, Aug 10, 2024
Slide 1: A.P. Møller - Mærsk A/S Q2 2024 Investor Presentation
A.P. Møller - Mærsk A/S Q2 2024 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: Q2 2024 Highlights
Q2 2024 Highlights 3 APMM Q2 2024 Financial Results
Slide 4: Increased momentum and ramp-up in earnings
Highlights Q2 2024 Increased momentum and ramp-up in earnings • Second quarter fuelled by strong market demand, Red Sea situation and volume growth across all segments with EBITDA / EBIT of USD 2.1bn / 1.0bn • Logistics & Services: EBIT rebounding sequentially to 3.5% with expected continued progres
Slide 5: Continued focus on profitable growth and strong cost discipline
Highlights Continued focus on profitable growth and strong cost discipline Logistics & Services Ocean Terminals Margins tracking positively Solid delivery Excellent performance USDm Normalized to 100 Revenue (USDm) / ROIC (%) 3,632 1,124 3,502 3,386 265 1,089 969 950 13.1 2,168 169 723 11.4 12.2 337
Slide 6: Our strategic transformation continues – Focus on profitable growth and strong cost discipline
2021–2025 Our strategic transformation continues – Focus on profitable growth and strong cost discipline Segment KPI Targets(1) LTM APMM Return on invested capital (ROIC) – (LTM) Every year >7.5% 2.0% Return on invested capital (ROIC) – (Average) Average 2021-25 >12.0% 32.8%(2) Ocean EBIT margin – u
Slide 7: Progressing on our key priorities for 2024
Highlights Progressing on our key priorities for 2024 Logistics & Ocean Terminals Services Renew with growth Deliver best-in-class Keep momentum on excellent and raise margins performance and prepare for the operational performance and network of the future focus on growth • Capitalise on organic gr
Slide 8: Impact from Red Sea disruption continues alongside strong market demand and port congestion
Highlights Impact from Red Sea disruption continues alongside strong market demand and port congestion – Q4 volumes pivotal to Ocean performance Asia-Europe headhaul rate(1) | USD / FFE (Index 100 = Oct ‘23) • Entrenched nature of Red Sea disruption has offset impact of increased supply Illustrative
Slide 9: 2024 financial guidance range raised
Guidance 2024 financial guidance range raised Per announcement on August 1, 2024 • APMM now expects global container market volume growth to be 4-6% (previously towards the upper end of 2.5-4.5%) and to grow in line with the market • APMM raises the financial guidance range considering: • Ongoing su
Slide 10: Q2 2024 Financial review
Q2 2024 Financial review 10 APMM Q2 2024 Financial Results
Slide 11: Q2 '24 showed continued sequential recovery supported by strong rates in Ocean
Financial review Q2 ’24 showed continued sequential recovery supported by strong rates in Ocean USD ROIC (YoY % change) Revenue EBITDA EBIT Profit FCF NIBD (LTM) 12.8bn 2.1bn 963m 833m 397m -3.6bn 2.0% Q2 ‘24 (-1.7%) (-26%) (-40%) (-44%) (-75%) (+3.5bn) (32pp) • Sequentially, Q2 EBITDA and EBIT incr
Slide 12: FCF returned to positive territory sequentially, mainly due to improved CFFO
Financial review FCF returned to positive territory sequentially, mainly due to improved CFFO Cash flow bridge for Q2 ‘24, USDm Operational cash flow of USD 1.6bn (USD 2.8bn) impacted by lower EBITDA 1,800 of USD 2.1bn (USD 2.9bn) 1,626 and increase of net working 1,600 capital of USD 260m (decrease
Slide 13: Outlook and strategy shapes clear order of priority for our capital allocation
Capital allocation Outlook and strategy shapes clear order of priority for our capital allocation 1 Maintain balance sheet strength to weather volatility of Ocean business in the coming years Continue to renew our Ocean fleet 2 Pursue organic growth in Logistics & Services and Terminals while also c
Slide 14: Ocean
Second quarter 2024 Development in EBIT (USDm) and EBIT margin (%) Ocean 10,000 60% 8,000 45% • Continued solid delivery on the back of tackling the 6,000 30% Red Sea disruption and robust container volume 4,000 growth 15% 2,000 • Volumes were up YoY (+6.7%) and QoQ (+5.9%), 0 0% given continued str
Slide 15: Ocean | Q2 '24 EBITDA decreased mainly due to the timing effect of rates
Second quarter 2024 Ocean | Q2 ’24 EBITDA decreased mainly due to the timing effect of rates and higher costs attributed to Red Sea situation USDm 3,000 Driven mainly by timing 236 effect of rates and lower Detention & Demurrage 334 -107 revenue -77 2,500 Loaded freight Bunker price up 2,259 rates u
Slide 16: Ocean | Strong volume growth and higher rates
Second quarter 2024 Ocean | Strong volume growth and higher rates • Average freight rates increased by 2.3%; sequentially, rates increased by 5.5% QoQ reflecting the supply chain pressure Ocean KPIs Q2 ‘24 Q1 ‘24 QoQ % Q2 ’23 YoY % Average freight rate (USD/FFE) 2,499 2,368 5.5% 2,444 2.3% • Operati
Slide 17: Logistics & Services
Second quarter 2024 Development in EBIT (USDm) and EBIT margin (%) Logistics & Services 300 8% 6% 200 • Quarter delivered YoY revenue growth due to increased volumes across all product families, 4% offsetting generally lower rates 100 2% • Ground Freight and Last Mile in North America, Air in Asia a
Slide 18: Logistics & Services | Profitable growth in Managed by Maersk and Transported by Maersk
Second quarter 2024 Logistics & Services | Profitable growth in Managed by Maersk and Transported by Maersk due to increased operational efficiency and asset utilisation YoY Revenue | USDm Key products Q2 ’24 Q2 ’23 change % • Managed by revenue decreased by USD 46m to USD 491m, mainly driven by pri
Slide 19: Terminals
Second quarter 2024 Terminals Development in EBIT (USDm) and EBIT margin (%) 400 35% 30% • Revenue increased by 15% YoY to USD 1.1bn (USD 300 25% 950m), driven by improved tariffs, higher volumes and 20% localised congestion 200 15% 100 10% • Volumes increased by 6.8%, driven by strong growth in 5%
Slide 20: Terminals | Strong performance driven mainly by volume growth and higher revenue per move
Second quarter 2024 Terminals | Strong performance driven mainly by volume growth and higher revenue per move USDm 500 450 -36 -22 408 400 111 350 331 25 Volume-linked concession fees 300 250 Tariff increases, better customer mix and higher 7.8% like-for-like increase, 200 ancillary revenue driven b
Slide 21: Questions and answers
Questions and answers To ask a question, please press 1 Reminder: ONE question per turn 21 APMM Q2 2024 Financial Results
Slide 22: Final remarks
Final remarks • Quarter with increased momentum and ramp-up in earnings • Progress in growth and profitability in Logistics & Services • Solid delivery in Ocean on back of higher freight rates – full rate impact yet to come in Q3 • Excellent performance in Terminals with strong volume growth and cos
Slide 23: Appendix
Appendix 23 APMM Q2 2024 Financial Results
Slide 24: Financial highlights Q2 2024
Financial highlights Q2 2024 Revenue EBITDA EBIT CAPEX USD million Q2 ’24 Q2 ’23 YoY % Q2 ’24 Q2 ’23 YoY % Q2 ’24 Q2 ’23 YoY % Q2 ’24 Q2 ’23 YoY % Ocean 8,370 8,703 -3.8% 1,407 2,259 -38% 470 1,205 -61% 578 314 84% Logistics & Services 3,632 3,386 7.3% 348 311 12% 126 115 9.6% 159 223 -29% Terminals
Slide 25: Consolidated financial information
Consolidated financial information Income statement (USDm) Q2 ’24 Q2 ’23 FY23 Key figures and financials (USDm) Q2 ’24 Q2 ’23 FY23 Revenue 12,771 12,988 51,065 Profit/loss for the period 833 1,487 3,908 EBITDA 2,144 2,905 9,591 Gain/loss on sale of non-current -208 -163 -523 assets etc., net EBITDA
Slide 26: Consolidated financial information
Consolidated financial information Cash flow statement (USDm) Q2 ’24 Q2 ’23 FY23 Profit/loss before financial items 963 1,607 3,934 Non-cash items, etc. 1,112 1,240 5,973 Change in working capital -260 145 417 Taxes paid -189 -234 -681 Cash flow from operating activities (CFFO) 1,626 2,758 9,643 CAP
Slide 27: Balance sheet and capital allocation
Balance sheet and capital allocation Debt & cash position (USDm) Q2 ’24 Q1 ’24 Q2 ’23 • Strong balance sheet maintained Borrowings 5,400 5,418 3,847 • Commitment to shareholder returns and maintaining Lease liabilities 10,599 10,345 10,968 investment grade Other 177 114 244 Total gross debt 16,176 1
Slide 28: IR Contact Information & Financial Calendar
IR Contact Information & Financial Calendar Investor Relations Contacts Financial Calendar Stefan Gruber 31 October 2024 Q3 2024 Interim Report Head of Investor Relations +45 3363 3484 Mikkel Johansen Senior Investor Relations Officer +45 2330 2950 Ken Taro Madsen Senior Investor Relations Officer +