Table of contents
The Interim Report for Q4 2020 of
A.P. Møller - Mærsk A/S (further referred to as
A.P. Moller - Maersk as the consolidated group
of companies) has been prepared in accordance
with IAS 34 ‘Interim Financial Reporting’ as issued
by the International Accounting Standards Board
(IASB) and adopted by the EU and additional
Danish disclosure requirements for interim
financial reporting of listed companies.
The interim consolidated financial statements
have not been subject to audit or review.
Change in presentation and comparative figures
From Q1 2020, as part of the refinement of
A.P. Moller - Maersk’s segment structure to align
with the internal management structure and
demarcation between the reportable segment
activities, a number of changes have been made,
see the Annual Report 2020, note 23 on signifi-
cant accounting policies. Comparison figures have
been restated.
Unless otherwise stated, all figures in parentheses
refer to the corresponding figures for the same
period prior year.
Forward-looking statements
The interim report contains forward-looking state-
ments. Such statements are subject to risks and
uncertainties as numerous factors, many of which
are beyond the control of A.P. Moller - Maersk,
may cause the actual development and results to
differ materially from expectations contained in
the interim report.
Contacts for further information
Søren Skou, CEO
Tel. +45 3363 1901
Patrick Jany, CFO
Tel. +45 3363 3106
Investors
Stig Frederiksen, Head of Investor Relations
Tel. +45 3363 3106
Media
Signe Wagner, Head of External Relations
Tel. +45 3363 1901
The Q1 2021 Interim Report is expected to
be announced on 5 May 2021.
Webcast and dial-in information
A webcast relating to the Q4 2020 Interim
Report and the Annual Report 2020 will be
held on 10 February 2021 at 11.00 (CET).
Dial-in infor mation on investor.maersk.com.
Presentation material for the webcast will be
available on the same page.
3 Directors’ Report
Message from the CEO
Highlights Q 020
Summary financial information
Financial review
Full-year guidance for 21
Ocean
Logistics & Services
Terminals & Towage
Manufacturing & Others
Statement of the Board of Directors
and the Executive Board
15 Financials
Condensed income statement
Condensed statement of comprehensive income
Condensed balance sheet at 1December
Condensed cash flow statement
Condensed statement of changes in equity
Notes
24 Additional information
Quarterly summary
Definition of terms
2 A.P. Moller - Maersk Interim Report Q4 | 10 February 2021
”
The fourth quarter was marked on the one hand by a continuous impact of the
COVID-19 pandemic but also by some rewarding progress on our strategy to become
the integrator of container logistics.
As we continued to manage through the pandemic, we stayed the course on our objec-
tives to protect our employees, with crew changes now almost back to normal, to serve
our customers by keeping our global network and ports operating despite significant
bottlenecks and equipment shortages and thirdly to help societies we are part of.
Despite significant difficulties to keep the flow of goods operating, we managed to
post significant milestones in our operations:
• Logistics & Services achieved a revenue of more than USD 2bn for the first time,
with significant improvement in profitability, now close to peers. This was the result
of the systematic improvement of operations over the past few years, exemplified
by the growth in inter modal and warehousing, new strengthened capabilities in
air freight and custom house brokerage, including our acquisitions of Performance
Team and KGH.
• Ocean performed at record level in the quarter as a consequence of the strong
rebound of demand which led to full capacity utilisation but also to bottlenecks,
higher costs and difficulties in meeting our customer reliability promises.
• Terminals & Towage, which showed resilience to lower volumes earlier in the year,
could leverage our lower cost position with higher volumes. Terminals in particu-
lar performed at record level in the quarter.
Overall, we can be proud of the way we mastered 2020 and the financial performance
reflects this advancement with a strong profitability and free cash flow leading to a
ROIC of 9.4% and almost no net financial debt.
This evolution is a clear sign of both the strategic progress made in the last years and
the agility of managing our operations in difficult conditions. Our continued progress
makes us confident that we will continue to grow the earnings of the company as the
economic situation normalises in 2021 and beyond.”
Søren Skou
Chief Executive Officer
A.P. Moller - Maersk
3 Message from the CEO Directors’ ReportA.P. Moller - Maersk Interim Report Q4 | 10 February 2021
Highlights Q4 2020
• Q4 2020 proved to be an exceptional while challenging quarter. The demand for goods, which
had suffered due to COVID-19 in Q2, picked up in Q3 and accelerated its rebound in Q4, which
generated disruptions in many parts of the supply chain. As a consequence, volumes in Logistics,
Gateways and Ocean strongly progressed in the quarter, leading to both higher costs and rates,
with ensuring reliability being the main operational concern in Q4.
• Revenue increased by 16% to USD 11.3bn (USD 9.7bn), mainly driven by an increase in Ocean of
USD 1.1bn or 16% and in Logistics & Services of USD 532m or more than 30% of the total revenue
growth in Q4. In Terminals & Towage, revenue increased by USD 68m, while revenue decreased by
USD 35m in Manufacturing & Others.
• EBITDA increased to record levels in all three segments, improving by 85% to USD 2.7bn (USD 1.5bn),
and the EBITDA margin increased to 24.1% (15.1%).
• EBITDA in Ocean increased to USD 2.2bn (USD 1.1bn), driven by a temporary increase in freight rates
and bunker cost reductions, mainly from lower fuel prices. The EBITDA margin increased by
11 percentage points to 26.7% (15.7%).
• In Logistics & Services, EBITDA was USD 158m (USD 31m), implying the best ever quarter for this
activity with a record revenue of USD 2bn, with performance mainly driven by intermodal margin
improvement, supply chain management and earnings from the acquisitions of Performance Team
and KGH. EBIT conversion improved to 18.7%, positively impacted by an optimised cost base.
• In Terminals & Towage, gateway EBITDA increased to a record of USD 317m (USD 253m), driven
by a 4.8% volume increase, the consolidation of Pipavav, India, and the improved cost position.
EBITDA in Towage decreased only slightly to USD 47m (USD 51m), given some restructuring costs.
• Cash flow from operating activities increased to USD 2.6bn (USD 1.5bn), driven by the significant
increase in EBITDA, while gross CAPEX decreased to USD 370m (USD 469m), and consequently
free cash flow increased to USD 1.7bn (USD 800m).
• Cash return on invested capital (CROIC), last twelve months, increased to 16.6% (10.0%) due to
stronger cash flow from operating activities and lower gross CAPEX. Return on invested capital
(ROIC), last twelve months, increased to 9.4% (3.1%), as earnings improved and invested capital
declined slightly.
• Net interest-bearing debt decreased to USD 9.2bn by year-end (USD 11.7bn end of 2019), as free
cash flow of USD 4.6bn was partly offset by share buy-back of USD 806m, dividends of USD 520m,
and a net increase in lease liabilities of USD 170m. Net interest-bearing debt excluding lease
liabilities decreased to USD 485m (USD 3.1bn end of 2019).
• The guidance for 2021 is impacted by the continuation of the COVID-19 pandemic and the impact
on demand patterns. Given the current exceptional situation where demand surge has led to
bottle necks in supply chains and equipment shortage, the first quarter of 2021 is expected to be
stronger than the fourth quarter of 2020.
4
Highlights Q4 2020 Directors’ ReportA.P. Moller - Maersk Interim Report Q4 | 10 February 2021
Summary financial information
Q M
Income statement
Revenue
Profit before depreciation amortisation and impairment losses etc (EBITDA)
Depreciation amortisation and impairment losses net
Gain on sale of non-current assets etc net
Share of profit/loss in joint ventures and associated companies
Profit/loss before financial items (EBIT)
Financial items net - - - -
Profit/loss before tax
Tax
Profit/loss for the period – continuing operations -
Profit/loss for the period – discontinued operations - - - -
Profit/loss for the period - -
AP Møller - Mærsk A/S’ share - -
Underlying profit/loss – continuing operations
Balance sheet
Total assets
Total equity
Invested capital
Net interest-bearing debt
Cash flow statement
Cash flow from operating activities
Gross capital expenditure excl acquisitions and divestments (CAPEX)
Cash flow from financing activities - - - -
Free cash flow
Net cash flow from discontinued operations - - - -
Financial ratios
Revenue growth % -% % -%
EBITDA margin % % % %
Cash conversion % % % %
Return on invested capital after tax – continuing operations (ROIC) (LTM) % % % %
Return on equity after tax annualised % -% % -%
Equity ratio % % % %
Stock market ratios
Earnings per share – continuing operations USD -
Diluted earnings per share – continuing operations USD -
Cash flow from operating activities per share USD
Share price (B share) end of period DKK
Share price (B share) end of period USD
Total market capitalisation end of period USDm
1 Maersk Drilling was classified as discontinued operations in 2017, and the business is presented separately
on an aggregated level in the income statement, balance sheet and cash flow statement. Maersk Drilling was
demerged on 2 April 2019.
2 Underlying profit/loss is profit/loss for the period from continuing operations adjusted for net gains/losses from
sale of non-current assets etc. and net impairment losses as well as transaction, restructuring and integration
costs related to major transactions. The adjustments are net of tax and include A.P. Moller - Maersk’s share of
mentioned items in joint ventures and associated companies.
5
Amounts in USD million
Summary financial information Directors’ ReportA.P. Moller - Maersk Interim Report Q4 | 10 February 2021
Financial review Q4 2020
Revenue was USD 11.3bn (USD 9.7bn) supported by increases
in Ocean and Logistics & Services of USD 1.1bn and USD
532m, respectively, and an increase in Terminals & Towage
of USD 68m.
EBITDA increased by 85% to USD 2.7bn (USD 1.5bn), primarily
in Ocean where EBITDA increased by 96% equal to USD 1.1bn,
driven by the increased freight revenue due to higher freight
rates and volumes, as well as bunker cost reductions. In
Logistics & Services, EBITDA increased significantly by USD
127m to USD 158m (USD 31m), mainly driven by intermodal
margin improvement, supply chain management and earn-
ings from Performance Team in North America. In Terminals
& Towage, EBITDA increased by USD 60m, due to improve-
ments in Terminals given higher revenue driven by higher
volumes, consolidation of Pipapav and a lower cost basis.
Manufacturing & Others declined by USD 24m in a difficult
environment. A company-wide special bonus also impacted
EBITDA by 80m.
EBIT of USD 1.6bn (USD 342m) was positively impacted by the
improved EBITDA. The EBIT margin increased to 14.2% (3.5%).
Financial expenses, net, amounted to USD 272m (USD 212m),
positively impacted by lower gross debt, however, more
than offset by loss on prepayment of debt and losses on
financial assets.
Tax decreased to USD 21m (USD 191m). The effective tax rate
decreased as a larger proportion of profit before tax was
earned in the Ocean segment, subject to tonnage taxation,
and due to positive impact from the CARES Act in the US.
The underlying prot was USD 1.4bn (USD 29m).
Cash ow from operating activities was USD 2.6bn (USD 1.5bn),
positively impacted by an increase in EBITDA of USD 1.2bn,
partly offset by a negative change in net working capital of
USD 27m, leading to a cash conversion of 95% (105%).
Financial review
Gross capital expenditure (CAPEX) was USD 370m (USD 469m),
driven by lower investments in Ocean and in Terminals &
Towage.
Free cash ow was USD 1.7bn (USD 800m), positively impacted
by higher cash flow from operating activities and lower
CAPEX, partly offset by increased lease payments.
Cash flow from borrowings was negative by USD 1.6bn
(negative USD 483m), due to repayments and prepayments
of bonds and loans given the strong cash generation and
high cash balance.
Contractual capital commitments totalled USD 1.7bn (USD
1.7bn at year-end 2019), of which USD 1.3bn is related to
commitments towards terminal concession grantors. Strong
commitment to capital discipline and free cash flow genera-
tion continues to be a key strategic focus.
The liquidity reserve increased to USD 11.0bn (USD 10.5bn
at year-end 2019), composed of liquid funds of USD 4.8bn
excluding restricted cash (USD 3.8bn at year-end 2019) and
undrawn revolving credit facilities of USD 6.2bn (USD 6.6bn
at year-end 2019).
Capital structure and credit rating
Net interest-bearing debt decreased to USD 9.2bn (USD
11.7bn at year-end 2019), as free cash flow of USD 4.6bn for
the year was partly offset by share buy-back of USD 806m,
dividends of USD 520m, acquisitions of USD 425m and a net
increase in lease liabilities of USD 170m. Net interest-bearing
debt excluding lease liabilities decreased to USD 485m (USD
3.1bn at year-end 2019).
A.P. Moller - Maersk remains investment grade-rated and
holds a Baa3 (positive) rating from Moody’s and a BBB
(positive) rating from Standard & Poor’s.
Highlights Q4
USD million Revenue EBITDA CAPEX
Ocean
Logistics & Services
Terminals & Towage
Manufacturing & Others
Unallocated activities eliminations etc - - - - -
AP Moller - Maersk consolidated – continuing operations
6
Financial review Q4 2020 Directors’ ReportA.P. Moller - Maersk Interim Report Q4 | 10 February 2021
Share buy-back
The share buy-back programme initiated in Q2 2019 was
concluded on 24 July 2020, and A.P. Moller - Maersk has
repurchased USD 1.5bn worth of shares.
On 1 June 2020, the cancellation of 156,977 A shares and
627,938 B shares was completed corresponding to 3.77%
of the total share capital in A.P. Moller - Maersk.
In November 2020, the Board of Directors has decided to ini-
tiate a new share buy-back programme of DKK 10bn (around
USD 1.6bn), of which the tranches after April 2020 need
approval at the Annual General Meeting 23 March 2021, and
the programme will run from December 2020 over a period
of up to 15 months.
This will conclude the distribution associated with the sale
of Maersk Oil and any further distribution to shareholders
will come from the continuing business activities.
During Q4, A.P. Moller - Maersk bought back 10,306 A shares
and 41,232 B shares worth DKK 673m (around USD 110m).
At 31 December, A.P. Moller - Maersk owns a total of 119,176
A shares and 505,281 B shares as treasury shares, corre-
sponding to 3.47% of the share capital.
Transformation metrics
To measure the strategic transformation towards becoming
the global integrator of container logistics and the ability of
A.P. Moller - Maersk to create shareholder value, three metrics
are tracked besides the overall ROIC target (see table).
On the back of the improvement in profitability and positive
cash flow generation during Q4, positive developments were
seen across all transformation metrics.
Return on invested capital (ROIC), last twelve months,
increased to 9.4% (3.1%), as earnings improved and invested
capital decreased. The underlying return on invested capital
increased to 9.6% (3.2%).
Cash return on invested capital (CROIC), last twelve months,
increased to 16.6% (10.0%), due to stronger cash flow from
operations, lower gross CAPEX and slightly lower invested
capital.
Infrastructure and Logistics revenue (excl. freight forwarding
and restructuring costs) increased to USD 2.7bn (USD 2.2bn),
driven by increasing revenue in warehousing and distribu-
tion including Performance Team and consolidation of the
Pipavav terminal, India.
Logistics & Services EBITDA (excl. freight forwarding and
restructuring costs) improved to USD 161m (USD 33m) as a
result of margin optimisation in intermodal, supported
by the acquisition of Performance Team and KGH, with Q4
2019 negatively impacted by integration costs.
Market update
For a market update for Q4 2020, reference is made to the
Annual Report 2020 for A.P. Moller - Maersk.
Transformation metrics
Q M
AP Moller - Maersk cash return on invested capital % % % %
Infrastructure and Logistics revenue USDm
Logistics & Services EBITDA USDm
Long-term targets
Return on invested capital % % % %
Underlying return on invested capital % % % %
1 Last twelve months
2 Excluding freight forwarding and restructuring costs
7
Financial review Q4 2020 Directors’ ReportA.P. Moller - Maersk Interim Report Q4 | 10 February 2021
Full-year guidance for 2021
Given the current outlook and high degree of uncer-
tainty related to the continued impact from COVID-19
on the economic growth and global demand patterns,
A.P. Moller - Maersk expects for the full-year 2021:
• Underlying EBITDA in the range of USD 8.5-10.5bn
compared to USD 8.3bn in 2020
• Underlying EBIT in the range of USD 4.3-6.3bn
compared to USD 4.2bn in 2020
• Free cash flow (FCF) above USD 3.5bn compared
to USD 4.6bn in 2020.
As part of the full-year guidance for 2021,
A.P. Moller - Maersk expects the current exceptional
situation with demand surge leading to bottlenecks
in the supply chain and equipment shortage, which con-
tributed by approximately USD 1.5bn to EBIT in 2020,
to continue in Q1 and normalise thereafter. Consequently,
A.P. Moller - Maersk expects profitability in Q1 2021 to be
above Q4 2020.
Ocean is expected to grow in line with the global container
demand at an expected 3-5% in 2021, with the highest
growth seen in the first half-year.
For the years 2021-2022, the accumulated CAPEX is still
expected to be USD 4.5-5.5bn.
Sensitivity guidance
Financial performance for A.P. Moller - Maersk for the full-year 2021 depends on several factors and is subject to uncertainties
related to COVID-19, bunker fuel prices and freight rates given the uncertain macroeconomic conditions.
All else being equal, the sensitivities for the full-year 2021 for four key assumptions are listed in the table below:
Factors Change Effect on EBIT
(midpoint of guidance)
(Full-year )
Container freight rate +/- USD/FFE +/- USD bn
Container freight volume +/- FFE +/- USD bn
Bunker price (net of expected BAF coverage) +/- USD/tonne +/- USD bn
Rate of exchange (net of hedges) +/- % change in USD +/- USD bn
Underlying EBITDA is earnings before interest, taxes, depreciation and
amortisation adjusted for restructuring and integration costs.
Underlying EBIT is operating profit before interest and taxes adjusted
for restructuring and integration costs, net gains/losses from sale of
non-current assets and net impairment losses.
8
Full-year guidance for 2021 Directors’ ReportA.P. Moller - Maersk Interim Report Q4 | 10 February 2021
Ocean
Profitability for Q4 increased compared to Q4 2019, as a
result of strong freight rates combined with higher vol-
umes driven by increases in headhaul volumes mainly
from recovery of exports out of Asia. Average loaded
freight rates increased significantly, driven by higher
short-term rates in particular on transpacific trades with
demand surge and bottlenecks across the entire supply
chain (including vessel and equipment shortages) devel-
oping through the quarter. Total unit cost per FFE declined
by 2.1%, driven by lower bunker cost and higher volumes,
partly offset by higher operational cost as a result of the
demand surge and supply chain bottlenecks and chal-
lenged reliability during Q4.
Financial and operational performance
Revenue increased to USD 8.3bn (USD 7.1bn), impacted
by a freight revenue increase of 19% from 3.2% higher vol-
umes, partly combined with an increase in loaded freight
rate of 18%. Other revenue decreased by 3.9% to USD 1.1bn
(USD 1.1bn).
EBITDA improved by 96% to USD 2.2bn (USD 1.1bn), driven by
the increased freight revenue and bunker cost reductions,
mainly from lower fuel prices. The EBITDA margin increased
by 11 percentage points to 26.7% (15.7%).
Loaded volumes increased by 3.2% to 3,400k FFE (3,294k
FFE), driven by higher headhaul volumes. North-South
volume declined, driven by lower volumes in Africa
and Oceania, still reflecting the impact of the COVID-19
outbreak, while East-West volumes were positively
impacted by recovery of export out of Asia, in particular
to North America.
The average loaded freight rate increased by 18% to 2,192
USD/FFE (1,862 USD/FFE) from short-term rate increases,
with demand surges from recovery in some markets, par-
ticularly in China-US trades and supply change bottlenecks
driving rates, resulting in an average loaded freight rate at
fixed bunker price increase of 21%.
Total operating costs were 1.2% higher at USD 6.0bn (USD
6.0bn), driven by higher container handling costs as a result
of higher volumes and the bottlenecks in the supply chains
Ocean highlights
USD million Q M
Freight revenue
Other revenue including hubs
Revenue
Container handling costs
Bunker costs
Network costs excluding bunker costs
Selling General & Administration (SG&A)
Cost of goods sold and other operational costs
Total operating costs
Other income/costs net - - -
Profit/loss before depreciation amortisation and impairment losses
etc (EBITDA)
EBITDA margin % % % %
Gross capital expenditure excl acquisitions and divestments (CAPEX)
Operational and nancial metrics
Loaded volumes (FFE in ’)
Loaded freight rate (USD per FFE)
Unit cost fixed bunker (USD per FFE incl VSA income)
Bunker price average (USD per tonne)
Bunker consumption (tonne in ’)
Average nominal fleet capacity (TEU in ’)
Fleet owned (end of period)
Fleet chartered (end of period)
Fleet overview, end Q4 2020
Q Q
TEU
Own container vessels
Chartered container vessels
Total fleet
Number of vessels
Own container vessels
Chartered container vessels
Total fleet
9 Ocean Directors’ ReportA.P. Moller - Maersk Interim Report Q4 | 10 February 2021
due to COVID-19, offset to a large extent by lower bunker
cost and other operating costs. Adjusting for the impact of
foreign exchange rates, operating costs increased by 1.0%.
Bunker costs decreased by 14% to USD 0.9bn (USD 1.1bn),
with a decrease in average bunker prices of 16% to 323
USD/tonne (384 USD/tonne) and a 2.2% increase in bunker
consumption. Bunker efficiency decreased by 0.2% to 41.0
g/TEU*NM (40.9 g/TEU*NM).
Unit cost at fixed bunker increased by 2.1% to 1,987 USD/FFE
(1,946 USD/FFE), driven by higher container handling costs
and development in foreign exchange rate. Adjusting for the
negative impact of developments in foreign exchange rate,
unit cost at fixed bunker increased by 1.9%.
The average nominal capacity of 4,095k TEU decreased by
2.1%. There were no vessels in the newbuilding programme
at the end of Q4, and the fleet consisted of 301 owned and
405 chartered vessels, of which 99k TEU or 2.4% of the
fleet were idle (12 vessels), mainly due to repairs, scrubbers
retrofitting and capacity adjustments.
Key initiatives in Q4
The focus in Q4 has been to continue delivering on the
strategy with a rigorous focus on serving customers, hon-
ouring long-term contracts and limit the negative impact
of disruptions to their supply chains during the COVID-19
outbreak. With strong demand, especially out of Asia,
the short-term freight rate market has proven strong.
A.P. Moller - Maersk continues to expand on digital engage-
ment models like Maersk SPOT to serve the spot market,
and Twill to serve smaller customers.
Maersk SPOT sustained positive and steady momentum in
Q4. Measured on an average basis, Maersk SPOT volume
was 51% (20%) of total loaded short-term volume under
the Maersk brand (excl. Sealand and Hamburg Süd) at the
end of Q4. The instant pricing with load guarantee pro-
vides ease, efficiency and peace of mind for customers.
Most importantly it allows them to do business from the
comfort of their homes.
Twill, the end-to-end digital product designed for small
customers without in-house logistic capabilities, crossed an
average of 4,000 FFE per week by end of Q4 compared to
average 170 FFE per week by end of Q4 2019.
Logistics & Services
A.P. Moller - Maersk’s capabilities as an integrated container
logistics company, offering end-to-end supply chain solu-
tions to customers were further strengthened in Q4. EBITDA
increased to USD 158m (USD 31m), mainly driven by inter-
modal margin improvement, strong rates in air freight for-
warding, earnings from Performance Team in North America
Loaded volumes
FFE (’) Q Q Change Change %
East-West %
North-South - -%
Intra-regional %
Total %
Average freight rates
USD/FFE Q Q Change Change %
East-West %
North-South %
Intra-regional %
Total %
Logistics & Services highlights
USD million Q M
Revenue
Direct cost
Gross profit
Selling General & Administration (SG&A)
Profit/loss before depreciation amortisation and impairment losses
etc (EBITDA)
EBITDA margin % % % %
Gross capital expenditure excl acquisitions and divestments (CAPEX)
Operational and nancial metrics
EBIT conversion (EBIT/gross profit - %) % -% % %
Supply chain management volumes (kcbm)
Intermodal volumes (kFFE)
Sea freight volumes (TEU)
Air freight volumes (tonne)
10 Ocean | Logistics & Services Directors’ ReportA.P. Moller - Maersk Interim Report Q4 | 10 February 2021
and integration of KGH in Europe strengthening the offering
of end-to-end solutions. Further, Q4 2019 EBITDA was nega-
tively impacted by several one-offs and restructuring costs.
Financial and operational performance
Revenue increased by 35% to USD 2.1bn (USD 1.5bn), posi-
tively impacted by the Performance Team acquisition, sup-
ply chain management and air freight forwarding, partly
offset by lower revenue in sea freight forwarding. Gross
profit increased by 57% to USD 500m (USD 318m), driven by
continued focus on profitable business and margin optimi-
sation in intermodal. Furthermore, profitability increased
in warehousing and distribution facilities in North America,
specifically driven by Performance Team, reported under
Other services. EBITDA increased to USD 158m (USD 31m)
with an EBITDA margin of 7.7% (2.0%), driven by the increase
in gross profit.
Volumes in supply chain management increased by 33%
to 22,287 kcbm (16,795 kcbm), and volumes in intermodal
increased by 13% to 1,027k FFE (908k FFE). Volumes in air
freight forwarding were on par with 39.7k tonne (39.7k
tonne) and sea freight forwarding declined by 30% to
76.0k TEU (108.2k TEU), all impacted by COVID-19 and the
discontinuing of the Damco brand.
Profitability improved in intermodal, driven by the ongo-
ing margin optimisation and better corridor mix with an
increase in gross profit of 115%. Supply chain management
gross profit showed an increase of 18%, driven by increase
in volumes and change in customer mix.
In air freight forwarding, gross profit increased by 42%
driven by the continued high rates in Asia Pacific where
urgent air freight solutions were developed during the
COVID-19 pandemic.
Other services gross profit increased by 103%, driven by
positive contribution from warehousing and distribution,
including the activity from Performance Team in North
America and KGH in Europe. In total, Performance Team
and KGH contributed with a revenue of USD 197m and an
EBITDA of USD 27m.
EBIT conversion improved to positive 19% (negative 21%),
with positive impact from higher gross profit. Further, Q4
2019 EBIT was negatively impacted by one-offs, restructur-
ing costs and by impairments in inland services and the air
freight forwarding business in the APA region.
Key initiatives in Q4
Air freight forwarding and the less container load (LCL)
products were integrated into the Maersk logistics and ser-
vices products to complement the end-to-end offering as
of October. The Damco brand was discontinued.
Terminals & Towage
Terminals & Towage reported an increase in revenue of USD
68m to USD 1.0bn (USD 974m), with an increase in EBITDA of
USD 60m to USD 364m (USD 304m). In gateway terminals,
revenue increased to USD 872m (USD 802m) with higher
volume, and EBITDA increased to USD 317m (USD 253m).
In Towage, revenue decreased to USD 175m (USD 178m),
and EBITDA decreased to USD 47m (USD 51m).
Terminals
Financial and operational performance
Revenue increased to USD 872m (USD 802m), driven by higher
volumes and consolidation of Pipavav, India. EBITDA increased
to USD 317m (USD 253m) with an increase in EBITDA margin
to 36.3% (31.5%), driven by higher revenue and positive one-
offs. Gross CAPEX was USD 108m (USD 191m).
Volume increased by 4.8% (increased by 1.0% like-for-like,
adjusted for Vado, Italy, and Pipavav). The volume growth
was driven by Asia with 28% higher volume, mainly due to
Pipavav. Volume increased by 2.1% in Europe and by 1.5% in
North America. Volume in Latin America increased by 0.8%,
while volume in Africa and Middle East decreased by 4.7%.
Utilisation decreased to 76% (78%), driven by an increase in
capacity due to consolidation of Pipavav, ramp-up in Vado
and an additional berth in Yokohama, Japan, which more
than offset the increase in volume. Volume from the Ocean
segment increased by 6.8%, and volume from external cus-
tomers increased by 3.8%.
Revenue and gross profit
USD million Revenue Q Gross profit Q
Intermodal
Supply chain management
Inland services
Sea freight forwarding
Air freight forwarding
Other services
Total revenue
Regional volume, Terminals
Million moves Q Q Growth (%)
North America
Latin America
Europe Russia and the Baltics
Asia
Africa and Middle East -
Total
1 Financially consolidated.
11 Logistics & Services | Terminals & Towage Directors’ ReportA.P. Moller - Maersk Interim Report Q4 | 10 February 2021
On an equity-weighted basis, volume increased by 1.3%
(increased by 1.4% like-for-like, adjusted for Vado and the
exit from Douala, Cameroon). The equity-weighted utilisa-
tion was 84% (85%).
Revenue per move increased by 1.9% to USD 279 (USD 274),
positively impacted by higher revenue in Los Angeles, USA,
and Port Elizabeth, USA, from an increase in dwell time
as a result of congested US supply chain and higher stor-
age revenue. This was partially offset by rate of exchange
impact in the African and Latin American regions. Adjusted
for foreign exchange rate, volume mix effects and portfolio
changes, revenue per move increased by 4.1%.
Cost per move decreased by 4.6% to USD 220 (USD 230),
driven by risks not materialising in Latin America and rate of
exchange impact in the African and Latin American regions,
partially offset by congestion-related operational costs
in Los Angeles, operational challenges in Apapa, Nigeria,
and terminal mix. Adjusted for foreign exchange rate, vol-
ume mix effects and portfolio changes, cost per move
increased by 3.1%.
The EBITDA margin for gateway terminals increased by
4.8 percentage points to 36.3% (31.5%), mainly driven by
higher revenue per move and positive one-offs. In Asia, the
EBITDA margin increased by 17 percentage points, mainly
due to the consoli dation of Pipavav. In Latin America, the
EBITDA margin increased by 10 percentage points, due to
positive one-offs. The EBITDA margin increased by 2.2 per-
centage points in Europe, mainly due to ramp-up of Vado.
In North America, the EBITDA margin decreased by 1.2 per-
centage points, mainly due to higher volume in higher cost
locations, and the EBITDA margin decreased in Africa and
the Middle East by 14 percentage points, mainly due to
operational challenges in Apapa, where investments have
been made in additional cranes and hiring of additional staff.
Results from joint ventures and
associated companies
The equity-weighted EBITDA increased by 12% to USD 399m
(USD 357m), mainly driven by ramp-up of Tema, Ghana, and
increased EBITDA from consolidated terminals, offset by
exit from Douala.
The share of profit in joint ventures and associated com-
panies of USD 54m (USD 37m) was positively impacted by
ramp-up of Tema and increased net result in Santos, Brazil.
Key initiatives in Q4
The construction work in Abidjan, Ivory Coast, progressed
and the first phase is expected to be finalised in 2022.
In APM Terminals Poti, Georgia, tenders for the expansion
are ongoing and construction is expected to go live in 2021.
Terminals & Towage highlights
USD million Q M
Revenue
Concession fees (excl capitalised lease expenses)
Labour cost (blue collar)
Other operational cost
Selling General & Administration (SG&A) and other costs etc
Total operating costs
Profit/loss before depreciation amortisation and impairment losses
etc (EBITDA)
EBITDA margin % % % %
Gross capital expenditure excl acquisitions and divestments (CAPEX)
Operational and nancial metrics
Terminal volumes – financially consolidated (moves m)
Ocean segment
External customers
Terminal revenue per move – financially consolidated (USD)
Terminal cost per move – financially consolidated (USD)
Result from joint ventures and associated companies (USDm)
Number of operational tug jobs (harbour towage) (’)
Annualised EBITDA per tug (terminal towage) (USD in ’)
Regional EBITDA margin, Terminals
Percentage Q Q
North America
Latin America
Europe Russia and the Baltics
Asia
Africa and Middle East
Total
12
Terminals & Towage Directors’ ReportA.P. Moller - Maersk Interim Report Q4 | 10 February 2021
Towage
Financial and operational performance
Although COVID-19 impacted the activity level and created
operational challenges, the towage activities are still resil-
ient. Revenue decreased by USD 3m to USD 175m (USD 178m),
mainly due to volume decreases in Australia, the UK and the
Americas, partly offset by volume additions from the newly
acquired Port Towage Amsterdam, the Netherlands, and pos-
itive currency developments. Adjusted for foreign exchange
rate development, revenue decreased by USD 9m. EBITDA
decreased slightly to USD 47m (USD 51m), mainly impacted
by restructuring costs partly offset by lower costs.
Harbour towage activities measured by the number of tug
jobs remained on par (+0.7%), driven by positive impact
from the consolidation of Port Towage Amsterdam in early
2020, partly offset by lower activity in Australia, the UK,
Scandinavia and in the Americas, mainly due to COVID-19.
The Asia, Middle East and Africa regions increased activities
compared to Q4 2019.
For terminal towage, annualised EBITDA per tug increased,
primarily impacted by increase in the Americas, partly off-
set by declines in the Asia, Middle East and Africa regions
and in Europe. Australia remained on par with Q4 2019.
Results from joint ventures and
associated companies
The share of profit in joint ventures and associated com-
panies increased slightly by 6% to USD 6m (USD 5m), even
though impacted by the acquisition of the remaining 50%
of Port Towage Amsterdam, which has been consolidated
as a 100% owned subsidiary from early January 2020.
Equity-weighted EBITDA decreased by 4% to USD 53m (USD
55m), driven by a decrease in EBITDA in consolidated enti-
ties across all regions, partly offset by Port Towage Amster-
dam now consolidating at 100%.
Key initiatives in Q4
In Europe, preparations were made to start operations in
Emden, Germany, in January 2021. In Australia, a plan was
implemented to exit the port in Geelong and significantly
reduce the workforce in Port Jackson. Also, the strategic
growth initiatives launched in 2019 have progressed in Q4
together with projects focusing on crew optimisation and
general cost reductions.
Manufacturing & Others
Revenue was USD 319m (USD 354m) with an EBITDA of USD
25m (USD 49m).
For Maersk Container Industry, revenue decreased to USD
156m (USD 164m), driven by delayed collection of produced
boxes. The majority of revenue was related to third-party
customers. EBITDA increased to USD 18m (USD 14m), mainly
due to higher service sales and foreign exchange rate.
Maersk Supply Service reported a 29% decrease in revenue
to USD 61m (USD 86m) and an EBITDA of negative USD 3m
(positive USD 14m), reflecting lower activity offset by cost
reductions. Cash flow used for capital expenditure was
USD 5m (USD 3m) due to planned maintenance.
Maersk Supply Service was awarded new contracts in key
markets such as North America, Africa and Europe in Q4.
For Other businesses, revenue was USD 102m (USD 103m)
and EBITDA was USD 10m (USD 21m).
Manufacturing & Others highlights
USD million Q M
Revenue
Profit/loss before depreciation amortisation and impairment
losses etc (EBITDA)
EBITDA margin % % % %
Gross capital expenditure excl acquisitions and divestments (CAPEX)
13
Terminals & Towage | Manufacturing & Others Directors’ ReportA.P. Moller - Maersk Interim Report Q4 | 10 February 2021
Statement of the Board of Directors
and the Executive Board
Copenhagen, 10 February 2021
Executive Board
Søren Skou — CEO
Patrick Jany — CFO
Vincent Clerc
Morten Engelstoft
Henriette Hallberg Thygesen
Board of Directors
Jim Hagemann Snabe — Chairman
Ane Mærsk Mc-Kinney Uggla — Vice Chairman
Dorothee Blessing
Bernard L. Bot
Marc Engel
Arne Karlsson
Thomas Lindegaard Madsen
Blythe S. J. Masters
Jacob Andersen Sterling
Robert Mærsk Uggla
14 Statement of the Board of Directors and the Executive Board Directors’ ReportA.P. Moller - Maersk Interim Report Q4 | 10 February 2021
Financials
Condensed income statement
Note Q M
Revenue 11,255 9,668 39,740 38,890
Profit before depreciation amortisation and impairment losses etc (EBITDA) 2,711 1,463 8,226 5,712
Depreciation amortisation and impairment losses net 1,222 1,160 4,541 4,287
Gain on sale of non-current assets etc net 30 1 202 71
Share of profit/loss in joint ventures and associated companies 75 38 299 229
Profit/loss before financial items (EBIT) 1,594 342 4,186 1,725
Financial items net -272 -212 -879 -758
Profit/loss before tax 1,322 130 3,307 967
Tax 21 191 407 458
Profit/loss for the period – continuing operations 1,301 -61 2,900 509
Profit/loss for the period – discontinued operations - - - -553
Profit/loss for the period 1,301 -61 2,900 -44
Of which:
Non-controlling interests 2 11 50 40
AP Møller - MærskA/S’ share 1,299 -72 2,850 -84
Earnings per share – continuing operations USD 66 -3 145 23
Diluted earnings per share – continuing operations USD 66 -3 145 23
Earnings per share USD 66 -3 145 -4
Diluted earnings per share USD 66 -3 145 -4
Maersk Drilling was classified as discontinued operations in 2017, and the business is presented separately on an aggregated
level in the income statement, balance sheet and cash flow statement. Maersk Drilling was demerged on 2 April 2019.
Condensed statement of comprehensive income
Note Q M
Profit/loss for the period 1,301 -61 2,900 -44
Translation from functional currency to presentation currency 317 119 195 -81
Reclassified to income statement gain on sale of non-current assets etc net 2 - 64 6
Cash flow hedges 103 81 43 -23
Tax on other comprehensive income -8 -5 10 16
Share of other comprehensive income of joint ventures and associated companies net of tax -1 -1 5 -1
Total items that have been ormay be reclassified subsequently to the income statement 413 194 317 -83
Other equity investments -1 -1 2 165
Actuarial gains/losses on defined benefit plans etc -277 88 -207 91
Tax on other comprehensive income -4 33 -4 10
Total items that will not be reclassified to the income statement -282 120 -209 266
Other comprehensive income net of tax 131 314 108 183
Total comprehensive income for the period 1,432 253 3,008 139
Of which:
Non-controlling interests 13 9 47 29
AP Møller - MærskA/S’ share 1,419 244 2,961 110
15
Interim consolidated financial statements Q4 2020 Financials
A.P. Moller - Maersk Interim Report Q4 | 10 February 2021
Amounts in USD million
Condensed balance sheet at 31December
Note
Intangible assets 5,145 4,219
Property plant and equipment 26,481 27,516
Right-of-use assets 8,323 8,460
Financial non-current assets etc 3,183 3,267
Deferred tax 249 237
Total non-current assets 43,381 43,699
Inventories 1,049 1,430
Receivables etc 5,603 5,351
Securities 1 2
Cash and bank balances 5,865 4,768
Assets held for sale 218 149
Total current assets 12,736 11,700
Total assets 56,117 55,399
Note
Equity attributable to AP Møller - MærskA/S 29,850 28,098
Non-controlling interests 1,004 739
Total equity 30,854 28,837
Lease liabilities non-current 7,356 7,295
Borrowings non-current 5,868 7,455
Other non-current liabilities 1,985 1,977
Total non-current liabilities 15,209 16,727
Lease liabilities current 1,391 1,282
Borrowings current 758 721
Other current liabilities 7,814 7,757
Liabilities associated with assets held for sale 91 75
Total current liabilities 10,054 9,835
Total liabilities 25,263 26,562
Total equity and liabilities 56,117 55,399
16
Amounts in USD million
Interim consolidated financial statements Q4 2020 Financials
A.P. Moller - Maersk Interim Report Q4 | 10 February 2021
Condensed cash flow statement
Note Q M
Profit/loss before financial items 1,594 342 4,186 1,725
Non-cash items etc 1,118 1,199 4,305 4,219
Change in working capital -27 58 -239 476
Cash flow from operating activities before tax 2,685 1,599 8,252 6,420
Taxes paid -116 -64 -424 -501
Cash flow from operating activities 2,569 1,535 7,828 5,919
Purchase of intangible assets and property plant and equipment (CAPEX) -370 -469 -1,322 -2,035
Sale of intangible assets and property plant and equipment 167 33 435 186
Sale of other equity investments 1 2 5 2,617
Acquisition of subsidiaries and activities 23 1 -425 -44
Sale of subsidiaries and activities 1 - 36 -40
Dividends received 50 123 177 297
Financial investments etc net -20 -125 70 -107
Cash flow used for investing activities -148 -435 -1,024 874
Repayments of/proceeds from borrowings net -1,562 -483 -1,860 -1,456
Repayments of lease liabilities -575 -326 -1,710 -1,291
Financial payments net -58 10 -292 -259
Financial expenses paid on lease liabilities -117 -106 -468 -477
Purchase of own shares -110 -282 -806 -791
Dividends distributed - - -430 -469
Dividends distributed to non-controlling interests -20 -16 -92 -70
Other equity transactions 42 -6 40 13
Cash flow from financing activities -2,400 -1,209 -5,618 -4,800
Net cash flow from continuing operations 21 -109 1,186 1,993
Net cash flow from discontinued operations - - - -372
Net cash flow for the period 21 -109 1,186 1,621
Cash and cash equivalents beginning of period 5,838 4,808 4,758 3,149
Currency translation effect on cash and bank balances 5 59 -80 -12
Cash and cash equivalents end of period 5,864 4,758 5,864 4,758
Of which classified as assets held for sale -19 - -19 -
Cash and cash equivalents end of period 5,845 4,758 5,845 4,758
Cash and cash equivalents
Cash and bank balances 5,865 4,768 5,865 4,768
Overdrafts 20 10 20 10
Cash and cash equivalents end of period 5,845 4,758 5,845 4,758
Cash and bank balances include USD 1.0bn (USD 0.9bn) relating to cash and bank balances in countries with exchange control or other
restrictions. These funds are not readily available for general use by the parent company or other subsidiaries.
17
Amounts in USD million
Interim consolidated financial statements Q4 2020 Financials
A.P. Moller - Maersk Interim Report Q4 | 10 February 2021
Condensed statement of changes in equity
AP Møller - Mærsk A/S
Share capital Translation
reserve
Reserve for
other equity
investments
Reserve
for hedges
Retained
earnings
Total Non-
controlling
interests
Total equity
Equity January 3,774 -692 -4 -97 25,117 28,098 739 28,837
2020
Other comprehensive income
net of tax - 260 1 55 -205 111 -3 108
Profit/loss for the period - - - - 2,850 2,850 50 2,900
Total comprehensive income
for the period - 260 1 55 2,645 2,961 47 3,008
Dividends to shareholders
Value of share-based payment - - - - 11 11 - 11
Addition of non-controlling
interests - - - - -14 -14 302 288
Purchase of own shares - - - - -806 -806 - -806
Sale of own shares - - - - 30 30 - 30
Capital increases and decreases -142 - - - 142 - 6 6
Transfer of gain/loss on disposal
of equity investments to retained
earnings - -3 - 3 - - -
Total transactions with
shareholders -142 - -3 - -1,064 -1,209 218 -991
Equity December 3,632 -432 -6 -42 26,698 29,850 1,004 30,854
Equity January 3,774 -616 -202 -103 29,756 32,609 771 33,380
Other comprehensive income
net of tax - -76 180 6 84 194 -11 183
Profit/loss for the period - - - - -84 -84 40 -44
Total comprehensive income
for the period - -76 180 6 - 110 29 139
Dividends to shareholders - - - - -469 -469 -73 -542
Value of share-based payment - - - - 10 10 - 10
Purchase of own shares - - - - -791 -791 - -791
Capital increases and decreases - - - - - - 12 12
Transfer of gain/loss on disposal
of equity investments to retained
earnings - - 18 - -18 - - -
Distribution of shares in
The Drilling Company of
A/S to shareholders in
AP Møller - Mærsk A/S - - - - -3,371 -3,371 - -3,371
Total transactions with
shareholders - - 18 - -4,639 -4,621 -61 -4,682
Equity December 3,774 -692 -4 -97 25,117 28,098 739 28,837
18
Amounts in USD million
Interim consolidated financial statements Q4 2020 Financials
A.P. Moller - Maersk Interim Report Q4 | 10 February 2021
Note 1 Segment information
Ocean Logistics
& Services
Terminals
& Towage
Manu facturing
& Others
Total
Q4 2020
External revenue
Inter-segment revenue
Total segment revenue
Unallocated
Eliminations -
Total revenue - - - -
Segment profit/loss before depreciation amortisation and impairment losses
etc (EBITDA)
Unallocated -
Eliminations -
Consolidated profit/loss before depreciation amortisation and impairment losses
etc (EBITDA)
Profit/loss from joint ventures -
Segment gross capital expenditures excl acquisitions and divestments (CAPEX)
Unallocated
Eliminations -
Consolidated gross capital expenditures excl acquisitions and divestments (CAPEX)
Ocean Logistics
& Services
Terminals
& Towage
Manu facturing
& Others
Total
Q4 2019
External revenue
Inter-segment revenue
Total segment revenue
Unallocated
Eliminations -
Total revenue - - - -
Segment profit/loss before depreciation amortisation and impairment losses
etc (EBITDA)
Unallocated -
Eliminations -
Consolidated profit/loss before depreciation amortisation and impairment losses
etc (EBITDA)
Profit/loss from joint ventures -
Segment gross capital expenditures excl acquisitions and divestments (CAPEX)
Unallocated -
Eliminations -
Consolidated gross capital expenditures excl acquisitions and divestments (CAPEX)
1 Reference is made to the condensed income statement for a reconciliation from EBITDA to profit/loss.
The reporting segments have changed compared to 2019 cf. note 23 in Annual Report 2020. Comparison figures
have been restated. The segment disclosures provided in the note reflect the information which the Executive
Board receives monthly in its capacity as Chief operating decision maker as defined in IFRS 8. The allocation of
resources and the segment performance are evaluated based on revenue and profitability measured on earnings
before interest, taxes, depreciation and amortisation (EBITDA).
19
Amounts in USD million
Interim consolidated financial statements Q4 2020 Financials
A.P. Moller - Maersk Interim Report Q4 | 10 February 2021
Note 1 Segment information – continued
Ocean Logistics
& Services
Terminals
& Towage
Manu facturing
& Others
Total
12M 2020
External revenue
Inter-segment revenue
Total segment revenue
Unallocated
Eliminations -
Total revenue - - - -
Segment profit/loss before depreciation amortisation and impairment losses
etc (EBITDA)
Unallocated items -
Eliminations -
Consolidated profit/loss before depreciation amortisation and impairment losses
etc (EBITDA)
Profit/loss from joint ventures -
Segment gross capital expenditures excl acquisitions and divestments (CAPEX)
Unallocated
Eliminations -
Consolidated gross capital expenditures excl acquisitions and divestments (CAPEX)
Ocean Logistics
& Services
Terminals
& Towage
Manu facturing
& Others
Total
12M 2019
External revenue
Inter-segment revenue
Total segment revenue
Unallocated
Eliminations -
Total revenue - - - -
Segment profit/loss before depreciation amortisation and impairment losses
etc (EBITDA)
Unallocated items -
Eliminations
Consolidated profit/loss before depreciation amortisation and impairment losses
etc (EBITDA)
Profit/loss from joint ventures - -
Segment gross capital expenditures excl acquisitions and divestments (CAPEX)
Unallocated -
Eliminations
Consolidated gross capital expenditures excl acquisitions and divestments (CAPEX)
1 Reference is made to the condensed income statement for a reconciliation from EBITDA to profit/loss.
20
Amounts in USD million
Interim consolidated financial statements Q4 2020 Financials
A.P. Moller - Maersk Interim Report Q4 | 10 February 2021
Note 1 Segment information – continued
USD million Types of revenue Q M
Ocean Freight revenue
Other revenue including hubs
Logistics & Services Supply chain management revenue
Inland services revenue
Intermodal revenue
Sea freight revenue
Air freight revenue
Other services revenue
Terminals & Towage Terminal services
Towage services
Manufacturing & Others Sale of containers and spare parts
Offshore supply services
Other shipping activities
Other services
Unallocated activities and eliminations - - - -
Total revenue
1 Including revenue eliminations between terminal services and towage services.
21
Amounts in USD million
Interim consolidated financial statements Q4 2020 Financials
A.P. Moller - Maersk Interim Report Q4 | 10 February 2021
Note 2 Share capital and earnings per share
Development in the number of shares:
A shares of B shares of Nominal value
DKK DKK DKK DKK DKK million USD million
January
Cancellation
Conversion - - - - -
December
At the Annual General Meeting of A.P. Møller - Mærsk A/S on 23 March 2020 the shareholders decided on the cancellation of
treasury shares, whereby the share capital was decreased. On June 2, 2020, the company’s share capital was reduced from
nominally DKK 20,816,862,000 with nominally DKK 784,915,000 in total, divided into 156,977 A shares and 627,938 B shares
of DKK 1,000 to nominally DKK 20,031,947,000 by cancellation of own shares.
Development in the holding of own shares:
No of shares of DKK Nominal value DKK million % of share capital
Own shares
A shares
January - - % %
Addition % %
Cancellation - - % %
December % %
B shares
January % %
Addition % %
Cancellation %
Disposal % %
December % %
Disposals of own shares are related to the share option plans and the restricted shares plan.
The dividend of DKK 150 per share of DKK 1,000, totalling DKK 3,123m, is equivalent to USD 430m, excluding own shares.
Payment of dividends to shareholders does not generate taxes to A.P. Moller - Maersk.
22
Amounts in USD million
Interim consolidated financial statements Q4 2020 Financials
A.P. Moller - Maersk Interim Report Q4 | 10 February 2021
Acquisitions during 2020
Performance Team LLC
On 1 April 2020, the group acquired 100% of the shares
in Performance Team LLC, a US-based ware housing
and distribution company, to further strengthen its
capabilities as an integrated container logistics com-
pany, offering end-to-end supply chain solutions to
its customers.
Taking control of Performance Team LLC has posi-
tioned A.P. Moller - Maersk among North America’s
leading warehouse and distribution providers with
56 warehouses for customers and accelerates the
company’s regional logistics and services model.
The total enterprise value of USD 622m consisted
of a total purchase price of USD 317m on a cash
and debt-free basis and acquired lease liabilities of
around USD 305m. The purchase price mainly relates
to fixed assets and customer list. The lease liabilities
have been adjusted in accordance with IFRS 16 from
the last communication.
The goodwill of USD 95m is attributable to work-
force and commercial/operational synergies between
Performance Team and A.P. Moller - Maersk and is
deductible for tax purposes.
From the acquisition date to 31 December 2020,
Performance Team LLC contributed with a revenue of
USD 398m and a minor contribution to net profit.
If the acquisition had occurred on 1 January 2020, the
impact on the group’s revenue would have been USD
512m. The net profit contributed to the Group would
have been minor.
The accounting for the business combination is
considered provisional at 31 December 2020 due to
certain contingencies, indemnities etc.
Gujarat Pipavav Port Ltd
The Group had a stake of 43.01% in Gujarat Pipavav
Port Ltd (GPPL) and treated the entity as an associ-
ated company. On 9 June 2020, the group obtained
the majority of seats on the Board of Directors of
GPPL, thereby obtaining control in the entity.
The acquisition consists of net assets of USD 540m
at fair value (of which USD 240m is terminal rights)
and non-controlling interest of USD 308m, offset by
the derecognition of associate company of USD 182m.
A gain of USD 45m was recognised for disposing
GPPL as an associate, and the cumulative trans-
lation reserve loss of USD 61m related to the asso-
ciate was also recycled to profit/loss. Liquid funds
acquired amounted to USD 92m. On the date of
acquisition, the fair value of the net assets acquired
exceeded the listed share price therefore the trans-
action has been reported as the bargain purchase.
The gain from bargain purchase has been reported
at USD 46m.
From the acquisition date to 31 December 2020,
Pipavav terminal contributed positively to the re-
sults with revenue of USD 59m. If the acquisition
had occurred on 1 January 2020, the impact on the
group’s revenue would have been USD 95m.
The accounting for the business combination is con-
sidered provisional at 31 December 2020.
Dovana Holdings AB (KGH Customs Service Group)
On 1 September 2020, the group acquired 100%
of the shares in Dovana Holding AB, KGH Customs
Services, a leading Sweden-based specialist in trade
and customs services management in Europe, fur-
ther enhancing its capabilities as an integrated con-
tainer logistics company, offering end-to-end supply
chain solutions to its global customers.
The total enterprise value of USD 294m consisted
of a total purchase price of USD 288m on a cash
and debt-free basis and acquired lease liabilities of
around USD 6m.
Out of the purchase price of USD 288m, debt of USD
100m has been deducted, and discounted maximum
earn-out of USD 45m has been added to arrive at
the USD 233m aggregate purchase consideration
reported.
The goodwill of USD 172m is mainly attributable to
the synergies between KGH and A.P. Moller - Maersk.
From the acquisition date to 31 December 2020,
KGH Customs Services contributed positively to the
results. If the acquisition had occurred on 1 January
2020, the impact on the group’s revenue would have
been USD 91m.
The accounting for the business combination is
considered provisional at 31 December 2020 due to
certain contingencies, indemnities etc.
In addition to the above acquisitions, there has been
a small acquisition in Terminals & Towage and there-
fore the total of all acquisitions sums up to USD 425m.
For 2020, the total acquisition cost for the acquisi-
tions recognised in the income statement amounted
to USD 8m.
Acquisitions during 2019
No acquisitions of subsidiaries or activities, to an
extent of significance to the group, were completed
in 2019.
Sales during 2020
No material external sales were performed during
2020.
Sales during 2019
No material external sales were performed during
2019.
Note 3 Acquisition/sale of companies and activities
The interim consolidated financial statements have
been prepared in accordance with IAS 34 Interim
Financial Reporting as issued by the International
Accounting Standards Board (IASB) and adopted by
the EU and additional Danish disclosure requirements
for interim financial reporting of listed companies.
The accounting policies, judgements and significant
estimates are consistent with those applied in the
Annual Report 2020, to which reference is made.
Note 4 Accounting policies, judgements and significant estimates
23
Amounts in USD million
Interim consolidated financial statements Q4 2020 Financials
A.P. Moller - Maersk Interim Report Q4 | 10 February 2021
Additional information
Quarterly summary
Income statement Q Q Q Q Q Q Q Q
Revenue
Profit before depreciation amortisation and impairment
losses etc (EBITDA)
Depreciation amortisation and impairment losses net
Gain on sale of non-current assets etc net
Share of profit/loss in joint ventures and associated
companies
Profit/loss before financial items (EBIT)
Financial items net - - - - - - - -
Profit/loss before tax
Tax
Profit/loss for the period – continuing operations - -
Profit/loss for the period – discontinued operations - - - - - - - -
Profit/loss for the period - -
AP Møller - Mærsk A/S’ share - -
Underlying profit/loss – continuing operations -
Balance sheet
Total assets
Total equity
Invested capital
Net interest-bearing debt
Cash flow statement
Cash flow from operating activities
Gross capital expenditure excl acquisitions and
divestments (CAPEX)
Cash flow from financing activities - - - - - - - -
Free cash flow
Net cash flow from discontinued operations - - - - - - -
Financial ratios
Revenue growth % -% -% % -% -% % %
EBITDA margin % % % % % % % %
Cash conversion % % % % % % % %
Return on invested capital after tax – continuing
operations (ROIC) % % % % % % % %
Return on equity after tax annualised % % % % -% % % -%
Equity ratio % % % % % % % %
Stock market ratios
Earnings per share – continuing operations USD - -
Diluted earnings per share – continuing operations USD - -
Cash flow from operating activities per share USD
Share price (B share) end of period DKK
Share price (B share) end of period USD
Total market capitalisation end of period USDm
24
Amounts in USD million
Quarterly summary Additional informationA.P. Moller - Maersk Interim Report Q4 | 10 February 2021
Definition of terms
Technical terms, abbreviations and definitions of key figures and financial ratios.
Backhaul
The direction of the trade route that
has the lowest volumes, whereas the
opposite direction is referred to as
headhaul.
CAPEX
Cash payments for intangible assets
and property, plant and equipment,
excluding acquisitions and divest-
ments.
Capitalised lease payments
Interest payments and repayments on
all lease contracts capitalised under
IFRS 16 (including financial lease con-
tracts capitalised under IAS 17).
Cash conversion
Cash flow from operating activities to
EBITDA ratio.
Cash flow from operating
activities per share
A.P. Moller - Maersk’s operating cash
flow from continuing operations divided
by the number of shares (of DKK 1,000
each), excluding A.P. Moller - Maersk’s
holding of own shares.
Cash return on invested capital
(CROIC), %
Cash return on invested capital is cal-
culated as free cash flow excluding
acquisitions/divestments (cash flow
from operating activities less gross
CAPEX) divided by average invested
capital for continuing operations.
Cost base
EBIT costs including VSA income and
hub income and adjustments for
restructuring costs, the result from
associated companies and gains/losses.
Discontinued operations
Discontinued operations are a major
line of business (disposal group) that
is either held for sale or has been
sold in previous periods. The disposal
group is reported separately in a sin-
gle line in the income statement and
cash flow statement. Comparison fig-
ures are restated. In the balance sheet
assets and liabilities are classified and
disclosed separately on an aggregate
level as assets held for sale and liabil-
ities associated with assets held for
sale. In the balance sheet comparison
figures are not restated. Discontinued
operations include Maersk Drilling up
to demerger in April 2019.
EBITDA
Earnings Before Interest, Taxes,
Depreciation and Amortisation.
Equity ratio
Calculated as equity divided by total
assets.
Equity-weighted EBITDA
EBITDA weighted on terminal owner-
ship percentages of all entities (sub-
sidiaries, joint ventures and associated
companies).
FFE
Forty Foot container Equivalent unit.
Free cash flow
Cash flow from operating activities
less cash flow from investing activities.
Lease payments (repayments of lease
liabilities and financial expenses paid
on lease liabilities) are not included in
the free cash flow.
Gross profit
The sum of revenue, less variable costs
and loss on debtors.
Headhaul
The direction of the trade route that has
the highest volume, whereas the return
direction is referred to as backhaul.
Infrastructure and Logistics revenue
A sum of revenue for Terminals &
Towage and Logistics & Services
reporting segments less freight for-
warding revenue and excluding elimi-
nations between the segments.
Invested capital
Segment assets less liabilities.
Loaded volumes
Loaded volumes refer to the number
of FFEs loaded on a shipment which
is loaded on first load at vessel depar-
ture time excluding displaced FFEs.
Logistics & Services gross
profit growth, %
Logistics & Services gross profit is a
sum of revenue, variable costs and
loss on debtors for Damco and inland
services. For Star Air, intermodal and
trade finance, EBITDA figure is used.
Net interest-bearing debt (NIBD)
Equals interest-bearing debt, including
lease liabilities, fair value of derivatives
hedging the underlying debt, less cash
and bank balances as well as other
interest- bearing assets.
Non-Ocean revenue growth, %
Non-Ocean includes the current
Logistics & Services, Terminals &
Towage and Manufacturing & Others
segments, but excludes Maersk Oil
Trading and tramp activities acquired as
part of the Hamburg Süd transaction.
Ocean, hub productivity (PMPH)
Productivity is calculated as the aver-
age of the gross moves per hour for
each call. Gross moves per hour for a
single vessel call is defined as the total
container moves (on load, off load and
repositioning) divided by the number of
hours for which the vessel is at berth.
Ocean, loaded freight rate
(USD per FFE)
Average freight rate per FFE for all the
Maersk containers loaded in the period
in either Maersk Line or Hamburg Süd
vessels or third parties (excluding inter-
modal). Hamburg Süd is not excluding
intermodal.
Ocean, unit cost, fixed bunker
(USD per FFE incl. VSA income)
Cost per FFE assuming a bunker price at
USD 200/tonne excluding intermodal
but including hubs and time charter
income. Hamburg Süd is not excluding
intermodal.
Return on equity after tax
Calculated as the profit/loss for the
year divided by the average equity.
Return on invested capital
after tax (ROIC)
Profit/loss before financial items for
the year (EBIT) less tax on EBIT divided
by the average invested capital.
Terminals & Towage,
annualised EBITDA per tug
(terminal towage) (USD in ‘000)
Annualised EBITDA per tug equivalent
(pilot boats and others count for 0.5).
Terminals & Towage,
number of operational tug jobs
(harbour towage) (‘000)
Tug jobs on which Svitzer performs
the physical job, including jobs where
Svitzer has the commercial contract
with the customer as well as jobs that
Svitzer receives from the com petitor
through over-flow or other agreements.
TEU
Twenty-foot container Equivalent Unit.
Time charter
Hire of a vessel for a specified period.
Total market capitalisation
Total number of shares – excluding
A.P. Møller - Mærsk A/S’ holding of own
shares – multiplied by the end-of-year
price quoted by Nasdaq Copenhagen.
Underlying profit/loss
Underlying profit/loss is profit/loss for
the year from continuing operations
adjusted for net gains/losses from sale
of non-current assets, etc., and net
impairment losses as well as trans-
action, restructuring and integration
costs related to major transactions.
The adjustments are net of tax and
include A.P. Moller - Maersk’s share of
mentioned items in joint ventures and
associated companies.
VSA
Vessel sharing agreement is usually
reached between various partners
within a shipping consortium who
agree to operate a liner service along
a specified route using a specified
number of vessels.
25 Definition of terms Additional informationA.P. Moller - Maersk Interim Report Q4 | 10 February 2021
Colophon
Editors
Stig Frederiksen
Finn Glismand
Henrik Jensen
Design and layout
e-Types
Produced in Denmark 2021
Board of Directors, A.P. Møller - Mærsk A/S
Jim Hagemann Snabe, Chairman
Ane Mærsk Mc-Kinney Uggla, Vice Chairman
Dorothee Blessing
Bernard L. Bot
Marc Engel
Arne Karlsson
Thomas Lindegaard Madsen
Blythe S. J. Masters
Jacob Andersen Sterling
Robert Mærsk Uggla
Executive Board, A.P. Møller - MærskA/S
Søren Skou, Chief Executive Officer (CEO)
Patrick Jany (CFO)
Vincent Clerc
Morten Engelstoft
Henriette Hallberg Thygesen
Audit Committee
Arne Karlsson, Chairman
Bernard L. Bot
Jim Hagemann Snabe
Remuneration Committee
Jim Hagemann Snabe, Chairman
Arne Karlsson
Robert Mærsk Uggla
Nomination Committee
Ane Mærsk Mc-Kinney Uggla, Chairman
Jim Hagemann Snabe
Robert Mærsk Uggla
Transformation & Innovation Committee
Jim Hagemann Snabe, Chairman
Marc Engel
Blythe S. J. Masters
Robert Mærsk Uggla
26 ColophonA.P. Moller - Maersk Interim Report Q4 | 10 February 2021