A.p. Moller - Maersk A/s Class A · OMXCOP:MAERSK_A
A.p. Moller - Maersk A/s Class A — A.P Moller - Maersk — Q1 2024 Earnings Presentation
29 slides from A.p. Moller - Maersk A/s Class A's earnings presentation, May 2, 2024
Slide 1: Q1 2024 Investor Presentation
A.P. Møller - Mærsk A/S Q1 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: Q1 2024 Highlights
Q1 2024 Highlights 3 APMM Q1 2024 Financial Results
Slide 4: Positive start to the year – First quarter in line with expectations
Highlights Positive start to the year – First quarter in line with expectations • YoY volume growth across all business segments • Strong recovery in earnings sequentially with EBIT of USD 177m (1.4% margin) • Ocean: Strong market demand and longer Red Sea disruption leading to higher rates, network
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 Restoring profitability Strong delivery Continued robustness USDm Normalized to 100 Revenue (USDm) / ROIC (%) 3,471 1,131 3,504 215 999 2,879 915 876 740 12.5 11.9 11.3 2,045 319 316 266 1
Slide 6: Our strategic transformation continues – 2021–2025 targets
2021–2025 Our strategic transformation continues – Focus on profitable growth and strong cost discipline Segment KPI Targets1 LTM APMM Return on invested capital (ROIC) – (LTM) Every year >7.5% 3.2% Return on invested capital (ROIC) – (Average) Average 2021-25 >12.0% 34.8%2 Ocean EBIT margin – under
Slide 7: Our key priorities for 2024 remain unchanged
Highlights Our key priorities for 2024 remain unchanged 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 • Lift profit margin by addressi
Slide 8: Impact from Red Sea disruption taking shape within initial expectations
Highlights Impact from Red Sea disruption taking shape within our initial expectations – Structural overcapacity challenges will eventually prevail Prior view (Feb ’24) Main Ocean cost buckets impacted by Red Sea disruption Asia-Europe headhaul rate | USD / FFE (Index 100 = Oct ‘23) 3 months’ disrup
Slide 9: Lower end of 2024 financial guidance range raised
Guidance Lower end of 2024 financial guidance range raised • APMM expects global container volume growth to be towards the upper end of the 2.5-4.5% range and to grow in line with the market • APMM raises the lower end of the financial guidance range considering: • Strong container market demand cau
Slide 10: Q1 2024 Financial review
Q1 2024 Financial review 10 APMM Q1 2024 Financial Results
Slide 11: Q1 '24 developed as expected
Financial review Q1 ’24 developed as expected | Red Sea situation, stronger container market and excellent Terminals performance contributed to sequential improvement USD ROIC (YoY % change) Revenue EBITDA EBIT Profit FCF NIBD (LTM) 12.4bn 1.6bn 177m 208m -151m -3.1bn 3.2% Q1 ‘24 (-13%) (-60%) (-92%
Slide 12: Demerger and separate listing of Svitzer approved by shareholders
Financial review Demerger and separate listing of Svitzer approved by APMM shareholders at EGM in April Focusing our APMM shareholder Svitzer business portfolio return dividend policy Svitzer is a leading maritime infrastructure Demerger / listing marks business with a track For fiscal year 2024 ano
Slide 13: Negative FCF of USD -151m mainly due to lower operational cash flow
Financial review Negative FCF of USD -151m mainly due to lower operational cash flow Operational cash flow of USD Cash flow bridge for Q1 ‘24, USDm 1,095m (USD 5.3bn) impacted by lower EBITDA of USD 1,590m (USD 4.0bn) and increase of net 1,200 working capital of USD 474m 1,095 (decrease of USD 1.2bn
Slide 14: Ocean – First quarter 2024
First quarter 2024 Development in EBIT (USDm) and EBIT margin (%) Ocean 10,000 60% 8,000 45% 6,000 30% 4,000 • Strong delivery on the back of tackling the Red Sea 15% disruption and robust container volume growth 2,000 0 0% • Volumes down QoQ in line with normal seasonality but up YoY, confirming ma
Slide 15: Ocean | Q1 '24 EBITDA decreased mainly due to lower freight rates
First quarter 2024 Ocean | Q1 ’24 EBITDA decreased mainly due to lower freight rates throughout the course of 2023 USDm 4,000 432 3,500 3,352 Bunker price stable at USD Largely driven by 3,000 Volumes up by 625 / tonne higher bunker Driven mainly by revenue +7.5% consumption recognition, mix effect
Slide 16: Volumes increased but freight rates declined
First quarter 2024 Volumes increased but freight rates declined Q1 Q4 QoQ Q1 YoY • Average freight rates decreased by 18%; Ocean KPIs 2024 2023 % 2023 % sequentially, rates increased by 23% Average freight rate (USD/FFE) 2,368 1,925 23% 2,871 -18% • Operating costs excluding bunker increased by 3.5%
Slide 17: Logistics & Services – First quarter 2024
First quarter 2024 Development in EBIT (USDm) and EBIT margin (%) Logistics & Services 300 8% 6% 200 • Revenue stabilized with a return to growth compared to previous year, primarily driven by higher volumes in 4% all product families 100 2% • Profitability was down with some pressure on rates mainl
Slide 18: Managed by Maersk and Transported by Maersk with solid performance
First quarter 2024 Managed by Maersk and Transported by Maersk with solid performance, while addressing weakness in Fulfilled by Maersk YoY Revenue | USDm Key products Q1 ‘24 Q1 ’23 change % • Managed by Maersk revenue decreased by USD 103m to USD 468m, mainly driven by lower rates in Lead Logistics
Slide 19: Terminals – First quarter 2024
First quarter 2024 Terminals Development in EBIT (USDm) and EBIT margin (%) 400 40% 300 30% 200 20% • Revenue increased by 14% YoY to USD 999m (USD 876m), driven by higher volumes and improved tariffs 100 10% from a low base 0 0% • Volumes grew by 9.0%, driven by strong growth of -100 -10% 29% in No
Slide 20: Terminals | Strong performance driven by significant top-line growth
First quarter 2024 Terminals | Strong performance driven by significant top-line growth USDm 400 -20 47 -19 348 350 49 300 291 Revenue driven variable Tariff increases, partly 250 concession fees offset by lower congestion 10% like-for-like increase driven storage 200 driven by 29% growth in North A
Slide 21: Questions and answers
Questions and answers To ask a question, please press 1 Reminder: ONE question per turn 21 APMM Q1 2024 Financial Results
Slide 22: Final remarks
Final remarks • Positive start into the year – first quarter in line with expectations • Strong delivery in Ocean, good volume growth in Logistics & Services despite challenges in Ground Freight in North America and warehousing white space, while Terminals showed excellent performance • Strengthened
Slide 23: Appendix
Appendix 23 APMM Q1 2024 Financial Results
Slide 24: Financial highlights Q1 2024
Financial highlights Q1 2024 Revenue EBITDA EBIT CAPEX USD million Q1 ’24 Q1 ’23 YoY % Q1 ’24 Q1 ’23 YoY % Q1 ’24 Q1 ’23 YoY % Q1 ’24 Q1 ’23 YoY % Ocean 8,009 9,873 -19% 956 3,352 -71% -161 1,969 NA 325 538 -40% Logistics & Services 3,504 3,471 1.0% 266 316 -16% 54 135 -60% 201 128 57% Terminals 999
Slide 25: Consolidated financial information
Consolidated financial information Income statement (USDm) Q1 ’24 Q1 ’23 FY23 Key figures and financials (USDm) Q1 ’24 Q1 ’23 FY23 Revenue 12,355 14,207 51,065 Profit/loss for the period 208 2,323 3,908 EBITDA 1,590 3,969 9,591 Gain/loss on sale of non-current -7 -140 -523 assets etc., net EBITDA ma
Slide 26: Consolidated financial information
Consolidated financial information Cash flow statement (USDm) Q1 ’24 Q1 ’23 FY23 Profit/loss before financial items 177 2,326 3,934 Non-cash items, etc. 1,506 1,926 5,973 Change in working capital -474 1,220 417 Taxes paid -114 -138 -681 Cash flow from operating activities (CFFO) 1,095 5,334 9,643 C
Slide 27: Balance sheet and capital allocation
Balance sheet and capital allocation Debt & cash position (USDm) Q1 ’24 Q4 ’23 Q1 ‘23 • Strong balance sheet maintained Borrowings 5,418 4,366 3,995 • Issuance of dual-tranche green bonds of EUR 500m Lease liabilities 10,345 10,448 11,137 per tranche Other 114 63 152 • Commitment to shareholder retu
Slide 28: Earnings distribution to shareholders
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 2.8 3.9 3.2 5 5.3 5.0 4.4 4.4 5.3 6.2 6.6 6.5 6.5 7.0 0 3.1 3.1 3.1 3.1 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Extraordinary dividend (Danske Bank) Ex
Slide 29: IR Contact Information & Financial Calendar
IR Contact Information & Financial Calendar Investor Relations Contacts Financial Calendar Stefan Gruber 7 August 2024 Q2 2024 Interim Report Head of Investor Relations +45 3363 3484 31 October 2024 Q3 2024 Interim Report Mikkel Johansen Senior Investor Relations Officer +45 2330 2950 Ken Taro Madse