A.p. Moller - Maersk A/s Class A · OMXCOP:MAERSK_A
A.p. Moller - Maersk A/s Class A — A.P Moller - Maersk — Q3 2024 Earnings Presentation
26 slides from A.p. Moller - Maersk A/s Class A's earnings presentation, Oct 31, 2024
Slide 1: Q3 2024 Investor Presentation
A.P. Møller - Mærsk A/S Q3 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: Q3 2024 Highlights
Q3 2024 Highlights 3 APMM Q3 2024 Financial Results
Slide 4: Strong third quarter in all segments
Highlights Q3 2024 Strong third quarter in all segments • Strong business performance with good progress across all segments • Logistics & Services: Continued recovery in EBIT margin to 5.1% on back of cost management and renewed organic growth of +11% • Ocean: Substantially higher profitability giv
Slide 5: Strong performance on the back of strong demand and operational progress
Highlights Strong performance on the back of strong demand and operational progress Logistics & Services Ocean Terminals Margins tracking positively Strong profitability Excellent performance USDm Normalized to 100 Revenue (USDm) / ROIC (%) 3,893 1,183 3,517 999 431 816 13.0 339 10.3 1,891 156 100 1
Slide 6: Continued strategic progress – Focus on profitable growth and strong cost discipline
2021–2025 Continued strategic progress – Focus on profitable growth and strong cost discipline Segment KPI Targets(1) LTM APMM Return on invested capital (ROIC) – (LTM) Every year >7.5% 7.4% Return on invested capital (ROIC) – (Average) Average 2021-25 >12.0% 32.3%(2) Ocean EBIT margin – under norma
Slide 7: Impact from Red Sea disruption continues, mostly offsetting increased supply
Highlights Impact from Red Sea disruption continues, mostly offsetting increased supply Asia-Europe headhaul rate(1) | USD / FFE (Index 100 = Oct ‘23) • Lasting Red Sea disruption and strong market have mostly Illustrative offset impact of increasing supply during course of 2024 • Disruption remains
Slide 8: 2024 financial guidance range raised
Guidance 2024 financial guidance range raised Per announcement on October 21, 2024 • APMM expects global container market volume growth to be around 6% (previously 4-6%) • APMM raises the financial guidance range on the back of strong third quarter results combined with strong container market deman
Slide 9: Q3 2024 Financial review
Q3 2024 Financial review 9 APMM Q3 2024 Financial Results
Slide 10: Increased profitability from strong business performance across all segments
Financial review Increased profitability from strong business performance across all segments USD ROIC (YoY % change) Revenue EBITDA EBIT Profit FCF NIBD (LTM) 15.8bn 4.8bn 3.3bn 3.1bn 2.7bn -5.6bn 7.4% Q3 ‘24 (+30%) (+155%) (+515%) (+456%) (-) (+1.2bn) (-10pp) • Profitability increased with EBITDA
Slide 11: FCF increase due to improved CFFO on back of strong results
Financial review FCF increase due to improved CFFO on back of strong results Cash flow bridge for Q3 ‘24, USDm Operational cash flow of USD 4.3bn (USD 1.4bn) driven by higher EBITDA of 4,500 4,272 USD 4.8bn (USD 1.9bn) partly offset by increase in 4,000 -776 net working capital of USD 3,500 414m (US
Slide 12: Ocean
Third quarter 2024 Development in EBIT (USDm) and EBIT margin (%) Ocean 10,000 60% 8,000 45% • Volumes remained stable up YoY (+0.3%) and QoQ 6,000 30% (+2.4%) 4,000 15% • Strong profitability from higher rates driven by 2,000 strong demand in Asia-Europe, Intra-Asia and Intra- 0 0% Europe trade as
Slide 13: Ocean | Q3 '24 EBITDA increased due to higher freight rates
Third quarter 2024 Ocean | Q3 ’24 EBITDA increased due to higher freight rates more than offsetting higher costs attributed to Red Sea situation USDm Driven mainly by timing effect of rates and lower 5,000 Detention & Demurrage 3,604 14 revenue -64 4,500 -135 Volumes up by +0.3% -189 Bunker price up
Slide 14: Ocean | Higher rates, cost control and stable volume delivery
Third quarter 2024 Ocean | Higher rates, cost control and stable volume delivery • Average freight rates increased by 54% reflecting continued supply chain pressure and high demand Ocean KPIs Q3 ‘24 Q2 ‘24 QoQ % Q3 ’23 YoY % • Operating costs excluding bunker increased by 2.4% Average freight rate (
Slide 15: Logistics & Services
Third quarter 2024 Development in EBIT (USDm) and EBIT margin (%) Logistics & Services 300 8% • Revenue growth of 11% due to solid development 6% across all regions and most products, with largest 200 contributions from Air, Landside Transportation and 4% Warehousing 100 2% • EBIT margin expansion t
Slide 16: Logistics & Services | Profitable growth in Managed by Maersk and Transported by Maersk
Third quarter 2024 Logistics & Services | Profitable growth in Managed by Maersk and Transported by Maersk due to higher volumes and increased operational efficiency YoY Revenue | USDm Key products Q3’ 24 Q3 ’23 change % • Managed by revenue increased by USD 35m to USD 624m, driven by Project Logist
Slide 17: Terminals
Third quarter 2024 Terminals Development in EBIT (USDm) and EBIT margin (%) 400 35% 30% • Revenue increased by 18% to USD 1.2bn (USD 1.0bn), 300 25% driven by improved tariffs and product mix, higher 20% volumes and localised congestion 200 15% 100 10% • Volumes increased by 7.6%, driven by strong g
Slide 18: Terminals | Strong performance driven mainly by higher revenue per move
Third quarter 2024 Terminals | Strong performance driven mainly by higher revenue per move USDm 550 500 -62 450 154 -49 424 400 353 29 Impact of inflation and 350 product mix 300 Tariff increases, better 250 product mix and higher 7.6% like-for-like increase, storage revenue 200 driven by North Amer
Slide 19: Questions and answers
Questions and answers To ask a question, please press “*1” Reminder: ONE question per turn 19 APMM Q3 2024 Financial Results
Slide 20: Final remarks
Final remarks • Strong business performance in third quarter • Results strongly impacted by freight rates and good underlying momentum in operational groundwork: – Logistics & Services EBIT margin further improved to 5.1% through cost and productivity measures and progress on Ground Freight and Ware
Slide 21: Appendix
Appendix 21 APMM Q3 2024 Financial Results
Slide 22: Financial highlights Q3 2024
Financial highlights Q3 2024 Revenue EBITDA EBIT CAPEX USD million Q3 ’24 Q3 ’23 YoY % Q3 ’24 Q3 ’23 YoY % Q3 ’24 Q3 ’23 YoY % Q3 ’24 Q3 ’23 YoY % Ocean 11,107 7,897 41% 4,002 1,133 253% 2,834 -27 NM 561 443 27% Logistics & Services 3,893 3,517 11% 431 339 27% 200 136 47% 211 196 7.7% Terminals 1,18
Slide 23: Consolidated financial information
Consolidated financial information Income statement (USDm) Q3 ’24 Q3 ’23 9M ‘24 9M ’23 Key figures and financials (USDm) Q3 ’24 Q3 ’23 9M ‘24 9M ’23 Revenue 15,762 12,129 40,888 39,324 Profit/loss for the period 3,081 554 4,122 4,364 EBITDA 4,797 1,878 8,531 8,752 Gain/loss on sale of non-current -1
Slide 24: Consolidated financial information
Consolidated financial information Cash flow statement (USDm) Q3 ’24 Q3 ’23 9M ‘24 9M ’23 Profit/loss before financial items 3,309 538 4,449 4,471 Non-cash items, etc. 1,535 1,437 4,153 4,603 Change in working capital -414 -435 -1,148 930 Taxes paid -158 -155 -461 -527 Cash flow from operating activ
Slide 25: Balance sheet and capital allocation
Balance sheet and capital allocation Debt & cash position (USDm) Q3 ’24 Q2 ’24 Q3 ’23 Borrowings 5,469 5,400 4,221 Lease liabilities 11,173 10,599 10,632 Other -21 177 243 Total gross debt 16,621 16,176 15,096 Cash and bank balances 6,337 8,055 7,630 Short term deposits(1) 15,918 11,684 14,310 Secur
Slide 26: 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 6 February 2025 Q4 2024 Interim / FY24 Report Mikkel Johansen Senior Investor Relations Officer +45 2330 2950 Ken T