A.P. Moller - Maersk A/S Class A · OMXCOP:MAERSK_A
A.P. Moller - Maersk A/S Class A — A.P. Møller - Mærsk — Q2 2019 Earnings Presentation
25 slides from A.P. Moller - Maersk A/S Class A's earnings presentation, Aug 15, 2019
Slide 1: A.P. Møller - Mærsk A/S Q2 2019 report
A.P. Møller - Mærsk A/S Q2 2019 report Date: 15 August 2019 Conference Call: 11:00 CET Webcast: investor.maersk.com Classification: Confidential
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 th
Slide 3: Interim report Q2 2019 Key statements
Interim report Q2 2019 Key statements 3 Interim report Q2 2019
Slide 4: Financial highlights for Q2
Key statements Q2 2019 Financial highlights for Q2 Strong improvement in earnings and free cash flow • Revenue increased 0.6% to USD 9.6bn. • Profitability improved with EBITDA increasing 17% to USD 1.4bn, Revenue (USD) EBITDA (USD) reflecting a margin of 14.1%. 9.6bn 1.4bn • Strong operational perf
Slide 5: Financial highlights for H1
Key statements H1 2019 Financial highlights for H1 Strong improvement in earnings and free cash flow • Revenue increased 1.6% to USD 19.2bn. Revenue (USD) EBITDA (USD) • Profitability improved with EBITDA increasing 24% or USD 500m to USD 2.6bn, reflecting a margin of 13.5%. 19.2bn 2.6bn • Operating
Slide 6: Transformation update
Key statements Q2 2019 Transformation update Progressing well on the short-term metrics on synergies and free cash flow • Non-Ocean revenue grew 2.1% adjusted for the closure of production facilities in MCI, led by strong growth in gateway Non-Ocean1 revenue Logistics & Services’ gross profit termin
Slide 7: Q2 2019 Financial highlights
Q2 2019 Financial highlights 7 Interim report Q2 2019
Slide 8: Improving all financials
Financial highlights Q2 2019 Improving all financials USDm Financial highlights Continuous focus on 9,627 9,568 improving profitability led 2019 Q2 2018 Q2 to an improvement in 9,000 2,400 EBITDA margin of 200bps to 14.1% and EBIT margin 1,900 of 4.3% (0.7%). 8,000 Underlying profit 1,357 improved t
Slide 9: CAPEX commitments remain at a historically low level
Financial highlights Q2 2019 CAPEX commitments remain at a historically low level Capex excluding acquisitions and divestments, USDbn Contractual Capex Commitments, USDbn Ocean Terminals & Towage Gross capex guidance 4.0 for 2019 maintained 4.0 3.8 4.0 2.5 at around USD 2.2bn. 3.5 3.5 3.2 Total cont
Slide 10: High cash conversion in Q2 2019
Financial highlights Q2 2019 High cash conversion in Q2 2019 Development in cash flow, USDm CFFO of USD 1.2bn Q2 2019 Q2 2018 was driven by an increase in EBITDA 1,500 and improved net working capital 1,170 leading to a cash 1,000 conversion of 86%. 782 746 Free cash flow of 630 USD 0.7bn reflects 5
Slide 11: Net interest bearing debt largely unchanged
Financial highlights Q2 2019 Net interest bearing debt largely unchanged Development in net interest-bearing debt USDbn S&P lifted their 14 +0.3 -0.2 12.9 negative outlook on 12.6 -1.4 +0.6 +0.5 the credit rating and +0.1 +0.3 12 confirmed BBB with stable outlook in Q2. 10 Increase in finance 8 leas
Slide 12: Consolidated financial information
Financial highlights Q2 2019 Consolidated financial information Income statement (USDm) Q2 2018 FY 2018 Key figures and financials (USDm) Q2 2018 FY 2018 Q2 2019 Q2 2019 (Continuing operations) (incl. IFRS 16) (incl. IFRS 16) (Continuing operations) (incl. IFRS 16) (incl. IFRS 16) Revenue 9,627 9,56
Slide 13: Consolidated financial information
Financial highlights H1 2019 Consolidated financial information 6 months 6 months Income statement (USDm) 6 months FY 2018 Key figures and financials (USDm) 6 months FY 2018 2018 2018 (Continuing operations) 2019 (incl. IFRS 16) (Continuing operations) 2019 (incl. IFRS 16) (incl. IFRS 16) (incl. IFR
Slide 14: Ocean
Highlights Q2 2019 Ocean Revenue EBITDA (USDm) • Supported by volume growth, higher freight 2.9% rates and positive cost performance, EBITDA increased 25% to USD 1,068m reflecting a margin improvement of 260bps to 14.9%. 856 • Other revenue was USD 814m (USD 784m). • Total operating costs were on pa
Slide 15: Ocean - Freight rates increased 1.5% and volume increased 1.4%
Ocean - highlights Q2 2019 Freight rates increased 1.5% and volume increased 1.4% • Average freight rates increased by 1.5% or 28 USD/FFE to USD 1,868, continuing the focus on margins through tight Volumes grew 0.5% on East-West Freight rates on East-West increased 3.5% USD 1,845/FFE capacity manage
Slide 16: Ocean - Total operating cost unchanged and unit cost improving 3.5%
Ocean - highlights Q2 2019 Total operating cost unchanged and unit cost improving 3.5% • Total operating costs were unchanged at USD 6.1bn as higher network costs from slot charter expenses were partly offset by lower Unit cost at fixed bunker improved Total unit cost was USD 1,903/FFE by 3.5% to US
Slide 17: Logistics & Services
Highlights Q2 2019 Logistics & Services Revenue EBITDA (USDm) • Revenue was on par with Q2 2018, positively 0.0% impacted by increasing revenue in supply chain management, but offset by declining revenue in sea and air freight forwarding. 52 • Gross profit increased by 4.9%, positively impacted by h
Slide 18: Logistics & Services - Improved gross profit
Logistics & Services - highlights Q2 2019 Improved gross profit • Volumes in SCM increased slightly, while margins decreased to 4.6 USD/cbm (4.7 USD/cbm). Gross profit improved by EBIT conversion ratio was on 4.9% to USD 298m (USD par to 9.3% (9.4%) • Intermodal revenue was on par, with volumes incr
Slide 19: Terminals & Towage
Highlights Q2 2019 Terminals & Towage Revenue EBITDA (USDm) • Revenue grew by 13% to USD 957m (USD 13% 847m), while EBITDA was on par. • Gateway terminals reported revenue of USD 791m (USD 670m), while towage activity 226 contributed to the revenue by USD 171m (USD 179m). • EBITDA in gateway termina
Slide 20: Terminals & Towage - Continuing to grow ahead of the market
Terminals & Towage - highlights Q2 2019 Continuing to grow ahead of the market • Revenue per move was driven by higher volumes in North America, where rates on average are higher, higher revenue from storage in Like-for-like throughput grew Utilisation grew by 9%-points 6.4% (7.6% from external 79%
Slide 21: Manufacturing & Others
Highlights Q2 2019 Manufacturing & Others Revenue EBITDA (USDm) -34% • Revenue in Maersk Container Industry decreased to USD 132m (USD 249m), impacted by the exit from the dry business and 30% lower revenue in reefer business. 33 EBITDA of USD 16m (USD -6m) reflects the restructuring cost last year
Slide 22: Full-year guidance
2019 Full-year guidance 22 Interim report Q2 2019
Slide 23: Guidance for 2019
Guidance Guidance for 2019 (Based on IFRS 16) A.P. Moller - Maersk reiterates its guidance, still expecting earnings before Sensitivity guidance interest, tax, depreciation and amortisation (EBITDA) of around USD 5.0bn. A.P. Moller - Maersk’s guidance for 2019 depends on several factors. Based on th
Slide 24: Questions and answers
Questions and answers To ask a question, please press 01 24 Interim report Q2 2019
Slide 25: Final remarks
Final remarks • Strong improvement in profitability in the first half of the year, however there is still a need to improve margins. • Solid cash flow performance with high cash conversion, but the second half of the year will be impacted by buying more expensive fuel ahead of IMO2020. • Strong oper