Table of contents
The Interim Report for Q1 2021 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.
Comparative figures
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 dif-
fer 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 Q2 2021 Interim Report is expected to
be announced on 6 August 2021.
Webcast and dial-in information
A webcast relating to the Q1 2021 Interim Report
will be held on 5 May 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 021
Summary financial information
Financial review
Guidance for 21
Market update
Ocean
Logistics & Services
Terminals & Towage
Manufacturing & Others
Statement of the Board of Directors
and the Executive Board
17 Financials
Condensed income statement
Condensed statement of comprehensive income
Condensed balance sheet at 1March
Condensed cash flow statement
Condensed statement of changes in equity
Notes
25 Additional information
Quarterly summary
Definition of terms
2 A.P. Moller - Maersk Interim Report Q1 | 5 May 2021
”A.P. Moller - Maersk delivered an exceptionally strong performance in Q1 2021 with a
record profit for the quarter.
The high growth and profitability were driven by solid demand across Ocean, Logistics
and Terminals, coupled with strong freight rates. Strong demand combined with bottle-
necks, lack of capacity and equipment shortage in the global supply chains drove
freight rates up significantly.
While the pandemic continues to impact the industry with a temporary economic
upside coupled with significant operational challenges, our focus remains on the long-
term transformation of our business, prioritising our customer’s wish for connected
logistic services now and in the future. The need for a strong and accountable logistics
partner was evident during the quarter and our integrator-strategy was validated by
strong customer support and growth.
In Ocean, EBITDA almost tripled reflecting strong volumes, significant increases in
freight rates and lower bunker fuel prices.
Logistics & Services continued its strong growth momentum, driven by organic
growth and margin expansion, but also positive synergies from the acquisitions of
Performance Team and KGH.
Also, Terminals & Towage had a strong performance, led by terminals with growth
in volumes and higher storage income, given congestions in multiple locations.
Those exceptional results came in a persisting difficult environment where countries
are still contending with the effects of the pandemic. We have continued to dedicate
significant efforts to the safety of our employees and contribute to the societies
where we operate, this quarter with a particular emphasis in India.
Overall, I am very pleased with Q1. The strong profitability, with an EBIT of USD 3.1bn
compared to USD 552m a year ago led to a ROIC of 15.7% and very strong free cash flow.
Given the strong start of the year and that we now expect the current dynamics to
last into the fourth quarter, we have upgraded our guidance significantly. Further-
more, we will accelerate the current share buy-back programme for it to be com-
pleted as early as September and will subsequently launch a new, additional share
buy-back programme of approximately USD 5bn over two years.”
Søren Skou
Chief Executive Officer
A.P. Moller - Maersk
Message from the CEO
3 Message from the CEO Directors’ ReportA.P. Moller - Maersk Interim Report Q1 | 5 May 2021
Highlights Q1 2021
• A.P. Moller - Maersk delivered a record performance in Q1 2021 with a significant increase in
revenue, EBITDA and EBIT. Profit for the period almost equalled the profit for the full year 2020.
Business in Q1, particular in Ocean, was strongly impacted by the significant distortion of demand
caused by the ongoing pandemic. Higher demand, mainly on headhaul volumes from exports
out of Asia, triggered significant bottlenecks which in turn implied a sharp increase in short-term
rates and contract renegotiations.
• Revenue increased by 30% or USD 2.9bn to USD 12.4bn (USD 9.6bn), driven by an increase in
Ocean of 31% or USD 2.2bn, while revenue increased in Logistics & Services by 42% or USD 603m.
In Terminals & Towage, revenue increased by 20% or USD 178m while Manufacturing & Others
saw an increase of USD 47m.
• EBITDA increased to USD 4.0bn (USD 1.5bn), with 85% coming from Ocean and the EBITDA margin
increased to 32.5% (15.9%).
• EBIT increased to USD 3.1bn (USD 552m) as a result of a significantly improved EBITDA. The EBIT
margin increased to 24.9% (5.8%).
• EBIT in Ocean increased to USD 2.7bn (USD 348m), driven by higher volumes and increase in
freight rates and bunker cost reductions from lower fuel prices in Q1 2021 versus Q1 2020.
• In Logistics & Services, EBIT increased to USD 139m (USD 29m) reflecting the significant growth
in revenue driven by strong performance across all product offerings.
• In Terminals & Towage, gateway EBIT increased to USD 239m (USD 162m), driven by higher
volumes, higher storage income due to congestions and the consolidation of Pipavav, India.
• Free cash flow increased to USD 2.4bn (USD 445m) due to disciplined CAPEX at USD 329m
(USD 310m) and good cash flow from operating activities increasing to USD 3.4bn (USD 1.2bn),
driven by the significant increase in EBITDA.
• Return on invested capital (ROIC), last twelve months, increased to 15.7% (3.8%), as earnings
improved and invested capital declined slightly.
• Net interest-bearing debt decreased to USD 7.7bn (USD 9.2bn end of 2020), as free cash flow
of USD 2.4bn was used for dividends of USD 889m and share buy-back of USD 333m, and a net
decrease in lease liabilities of USD 324m. Excluding lease liabilities, the Group had a net cash
position of USD 677m (debt of USD 485m end of 2020).
• Given the strong cash flow generation and balance sheet the Board of Directors has decided to
accelerate the remaining share buy-back programme to be completed within the next five months.
• The guidance for the underlying EBITDA is expected to be in the range of USD 13.0bn-15.0bn
and the underlying EBIT in the range of USD 9.0-11.0bn, as announced on 26 April 2021.
4 Highlights Q1 2021 Directors’ ReportA.P. Moller - Maersk Interim Report Q1 | 5 May 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
AP Møller - Mærsk A/S’ share
Underlying profit/loss
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
Financial ratios
Revenue growth % % %
EBITDA margin % % %
EBIT margin % % %
Cash conversion % % %
Return on invested capital after tax (ROIC) (last twelve months) % % %
Equity ratio % % %
Underlying ROIC (last twelve months) % % %
Underlying EBITDA
Underlying EBITDA margin % % %
Underlying EBIT
Underlying EBIT margin % % %
Stock market ratios
Earnings per share – USD
Diluted earnings per share – 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 USD
1 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 Q1 | 5 May 2021
Financial review Q1 2021
Revenue increased by USD 2.9bn to USD 12.4bn (USD 9.6bn),
with an increase in Ocean of USD 2.2bn and USD 603m in
Logistics & Services.
EBITDA increased to USD 4.0bn (USD 1.5bn), primarily
related to Ocean with an EBITDA increase to USD 3.4bn,
driven by the increased freight revenue due to signifi-
cantly higher volumes and freight rates in light of result-
ing bottlenecks and equipment shortages, and bunker cost
reductions mainly from lower fuel prices. In Logistics &
Services, EBITDA increased by USD 137m to USD 205m
(USD 68m), due to strong performance across all product
offerings. In gateway terminals, EBITDA increased by USD
110m, driven by higher volumes, higher storage income due
to congestions and the consolidation of Pipavav, India.
EBIT of USD 3.1bn (USD 552m) was positively impacted by
the improved EBITDA and marginally by lower depreciations
as a result of reassessing the useful life-time of container
assets. The EBIT margin increased to 24.9% (5.8%).
Financial expenses, net, amounted to USD 230m (USD 215m),
positively impacted by lower gross debt, more than offset
by negative foreign exchange rate impacts.
Tax increased to USD 150m (USD 128m), primarily due to
improved financial performance.
The underlying prot was USD 2.7bn (USD 197m).
Cash ow from operating activities was USD 3.4bn (USD 1.2bn),
positively impacted by an increase in EBITDA of USD 2.5bn,
partly offset by a negative change in net working capital of
USD 459m, leading to a cash conversion of 85% (80%).
Gross capital expenditure (CAPEX) was USD 329m (USD 310m),
mainly unchanged with higher investments in Ocean and
Manufacturing & Others, mostly offset by lower investments
in Terminals & Towage.
Financial review
Free cash ow was USD 2.4bn (USD 445m), positively impacted
by higher cash flow from operating activities, partly offset
by increased lease payments mainly due to lease buyouts.
Cash flow from borrowings was negative by USD 483m
(negative USD 385m), due to repayments and prepayments
of bonds and loans given the strong cash flow generation
and high cash balance.
Contractual capital commitments totalled USD 1.8bn (USD
1.7bn at year-end 2020), 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 11.4bn (USD 11.0bn at
year-end 2020), and was composed of liquid funds and term
deposits of USD 5.4bn excluding restricted cash (USD 4.9bn
at year-end 2020), and undrawn revolving credit facilities of
USD 6.0bn (USD 6.2bn at year-end 2020).
Capital structure and credit rating
Net interest-bearing debt decreased to USD 7.7bn (USD
9.2bn at year-end 2020), as free cash flow of USD 2.4bn for
the period was partly offset by dividend payments of USD
889m, share buy-back of USD 333m and a net decrease in
lease liabilities of USD 324m. Excluding lease liabilities, the
Group had a net cash position of USD 677m (debt of USD
485m at year-end 2020).
A.P. Moller - Maersk remains investment grade-rated and
holds a Baa2 Stable outlook (an upgrade from Baa3 Positive
outlook) rating from Moody’s and a BBB (positive) rating from
Standard & Poor’s.
Dividend
The ordinary dividend of DKK 330 per A.P. Møller - Mærsk A/S
share of nominally DKK 1,000 (USD 1.1bn, net of withholding
tax) declared at the Annual General Meeting on 23 March
2021, was paid on 26 March 2021.
Highlights Q1
USD million Revenue EBITDA EBIT CAPEX
Ocean
Logistics & Services
Terminals & Towage
Manufacturing & Others
Unallocated activities eliminations etc - - - - - - -
AP Moller - Maersk consolidated
6 Financial review Q1 2021 Directors’ ReportA.P. Moller - Maersk Interim Report Q1 | 5 May 2021
Share buy-back
The present share buy-back programme initiated in Novem-
ber 2020 of DKK 10bn (around USD 1.6bn), was initially
planned to run from December 2020 over a period of up to
15 months. It will now be accelerated to be completed as
early as September 2021.
During Q1, A.P. Moller - Maersk bought back 30,451 A shares
and 121,805 B shares worth DKK 2,1bn (around USD 333m).
At 31 March 2021, A.P. Moller - Maersk owns a total of
149,627 A shares and 620,548 B shares as treasury shares,
corresponding to 3.84% of the share capital.
On 23 March 2021, the Annual General Assembly approved
that the Board of Directors can decide to acquire own
shares up to a maximum of 15% of the share capital.
Transformation metrics
A.P. Moller - Maersk is accelerating the transformation
towards becoming the global integrator of container logis-
tics, and four metrics are tracked besides the overall ROIC
target as leading indicators for the strategic progress over
the next five years (see table). Specific targets will be intro-
duced at the Capital Markets Day on 11 May 2021.
Value creation is measured by the return on invested capital
(ROIC), last twelve months, and increased to 15.7% (3.8%), as
earnings improved and invested capital decreased slightly.
The underlying return on invested capital increased to
15.9% (3.8%).
Growing the business is measured by the focus on growth
in organic revenue in Logistics & Services and gateway
terminals. Revenue increased by USD 574m to USD 2.8bn.
Protability in Logistics & Services is measured by EBITA,
which increased by 400% to USD 150m.
Progress in the commercial synergies from the revenue
growth between Logistics & Services and the top 200
Ocean customers was USD 893m.
Progress, on the commercial digitalisation and product
offering in Ocean, is in the first phase measured via Maersk
SPOT volume share of total short-term volumes, which
was 36.2% in Q1. The percentage is based on the last four
weeks of the reported period for all brands.
Change in management
It was announced that Navneet Kapoor, Chief Technology
& Information Officer (CTIO), was appointed member of
the Executive Board as per 1 April 2021.
The Executive Board consists of Søren Skou, Patrick Jany,
Vincent Clerc, Morten H. Engelstoft, Henriette Hallberg
Thygesen and Navneet Kapoor.
Five-year transformation metrics
Q M
Value creation
Return on Invested Capital (ROIC) % % %
Growth
Organic revenue in Logistics & Services and gateway terminals USDm
Profitability
EBITA in Logistics & Services USDm
Commercial synergies
Logistics & Services revenue with top Ocean customers USDm
Commercial digitalisation and product offering in Ocean
Maersk SPOT volume share of total short-term volumes % % %
1 Last twelve months
2 Maersk SPOT volume share of total short-term volumes of all brands is based on the last four weeks of the period shown.
7 Financial review Q1 2021 Directors’ ReportA.P. Moller - Maersk Interim Report Q1 | 5 May 2021
Guidance for 2021
Given the Q1 2021 result and the revised expectations
that the exceptional market situation will continue well
into the Q4 2021 - vs. the previous expectations that the
situation would continue in Q1 and normalise thereafter
– the full-year guidance has been revised upwards on
26 April 2021 to:
• Underlying EBITDA in the range of USD 13.0-15.0bn
(previously USD 8.5-10.5bn) com pared to USD 8.3bn
in 2020
• Underlying EBIT in the range of USD 9.0-11.0bn (previ-
ously USD 4.3-6.3bn) compared to USD 4.2bn in 2020
• Free cash flow (FCF) of minimum USD 7.0bn (previously
above USD 3.5bn) compared to USD 4.6bn in 2020.
Ocean is still expected to grow in line with global con-
tainer demand, which is now expected to grow 5-7% in 2021
(previously 3-5% in 2021), primarily driven by the export
volumes out of China to the USA.
For the years 2021-2022, the accumulated CAPEX is now
expected to be around USD 7.0bn (previously USD 4.5-5.5bn).
Sensitivity guidance
Financial performance for A.P. Moller - Maersk for 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 2021 for four key assumptions are listed in the table below:
Factors Change Effect on EBIT
(midpoint of guidance)
Rest of 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
Foreign exchange rate (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 Q1 | 5 May 2021
Market update
The global economy travelled a bumpy road in the first part
of 2021 as a direct consequence of the COVID-19 pandemic.
North America, Europe and Latin America continued to be
the regions worst affected, but vaccination programmes are
now underway in a significant number of countries. How-
ever, the pace of roll-out differs significantly across coun-
tries, and vaccination programmes are only about to start
in many emerging and developing countries.
The US economic recovery remains on track on the back of
its vaccine roll-out and the USD 1.9 trillion fiscal package.
Moreover, retail sales recovered in Q1, and the job market
continues to improve.
The European economy remained weak in Q1 2021, after
slowing in Q4 2020. For some emerging markets, the rise
in USD interest rates has led to increased capital outflows
which together with rising COVID-19 cases could hinder
their recovery.
Dynamics in economic activity, trade and demand patterns
will, for the remaining part of 2021, also be highly depend-
ent on the further development of the COVID-19 pandemic.
Global container volumes increased by around 8.4% in Q1
2021, showing a stronger momentum than expected earlier
in the year. Significant public stimulus packages, combined
with the fact that country lockdowns weighed more heavily
on services consumption than on goods consumption, sup-
ported container trade. Above all, North American imports
from the Far East rose 40% in Q1, while European imports
from the Far East increased 14% given the low comparison
basis in Q1 2020, as countries where entering lockdowns.
Looking ahead, global container demand is projected to
increase by 5-7% in 2021 up from negative 1.8% in 2020.
At the end of Q1, the nominal global container fleet stood
at 24.1m TEU, an increase of 3.6% in Q1 2020. Idled fleet
declined significantly in Q1 2021 (to 1.0% at the end of the
quarter) compared to Q1 2020, as the industry adjusted to
higher demand, driving up effective supply growth. Con-
sequently, the demand-supply loosened in Q1 2021 com-
pared to Q4 2020, which partly mirrors normal season-
ality. Freight and charter rates were nevertheless per-
sistently high, largely reflecting bottlenecks in domestic
logistics and scarce container equipment. Freight rates
out of China, as measured by the China Composite Freight
Index (CCFI), increased by 111% in Q1 compared to the same
quarter last year.
The other transport and logistics categories were in broad
terms impacted by the same dynamics and market drivers
that steered the ocean industry, above all the COVID-19
pandemic.
According to Drewry, port throughput volumes increased
by 8.6% in Q1 2021, mainly driven by North America and
Asia. Many ports were impacted by supply disruptions from
the blockage for six days of the Suez Canal in March as well
as bottlenecks due to domestic logistics and scarce availa-
bility of empty containers following extraordinary demand
in the USA. In line with projections for ocean trade, global
port throughput growth is expected to grow significantly
in 2021.
Other Logistics & Services categories experienced continued
strong growth, such as E-commerce, with sales increasing
35% in the USA and 38% in the Euro area in Q1 (year-on-year),
following extraordinary demand for online sales of elec-
tronics and household products. USA E-commerce sales now
represent 16% of total US retail sales. The airfreight industry
was challenged by supply constraints as passenger freight
remained very low, capping the available cargo freight sup-
ply. Air freight volumes increased around 8% (y/y) in Q1
(January and February average), according to IATA.
Demand growth
Growth % (Y/Y) Q
Globally %
East-West %
– Headhaul %
– Backhaul %
North-South %
Intraregional %
9
Market update Directors’ ReportA.P. Moller - Maersk Interim Report Q1 | 5 May 2021
Ocean
Profitability for Q1 2021 increased compared to Q1 2020
as a result of revenue growth driven by freight rates com-
bined with higher volumes, mainly from increases in headhaul
volumes from exports out of Asia, and resulting bottlenecks
and equipment shortages. Average loaded rates increased
significantly, driven by higher short-term rates due to demand
surge during the quarter, as well as contracts renewing at
higher rate levels. The total unit cost per FFE decreased by
1.9%, driven by lower bunker costs, offset partially by higher
operational cost as port congestions caused strains on ter-
minals and resulted in extra capacity deployed. Utilisation
on offered capacity remained strong at 93%, but schedule
reliability remains challenged, reaching a historical low point
caused by congestions and equipment shortages with further
constraints expected from the Suez Canal congestion.
Financial and operational performance
Revenue increased to USD 9.5bn (USD 7.2bn) impacted by
freight revenue increase of 36% from increased freight rates
of 35% combined with higher volumes of 5.7%. Other revenue
increased by 6.2% to USD 1.3bn (USD 1.2bn) primarily due to
higher revenue from demurrage and detention.
EBITDA improved by 193% to USD 3.4bn (USD 1.2bn), driven
by the increased freight revenue and lower bunker cost given
the high previous year basis when IMO 2020 regulations
were introduced. The EBITDA margin increased by 20 per-
centage points to 36.3% (16.3%).
EBIT improved to USD 2.7bn (USD 348m), driven by the higher
rates and lower depreciations of USD 0.1bn as a result of
reassessing the useful life-time of container assets from 12
to 15 years.
Loaded volumes increased by 5.7% to 3,222k FFE (3,048k FFE)
mainly from higher headhaul volumes. The higher volumes
were primarily driven by East-West trade out of Asia, pos-
itively impacted by lower negative impact during Chinese
New-Year compared to last year which was challenged by ini-
tial COVID-19 lockdown. Positive volume impact also present
on North-South trades and Intra regions in Q1 2021.
The average loaded freight rate increased by 35% to 2,662
USD/FFE (1,967 USD/FFE), primarily driven by short-term rate
increases from demand surges, in particular in China-USA
trades, combined with congestions and equipment short-
ages. Average loaded freight rate at fixed bunker price
increased by 44%.
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 % % %
Profit/loss before financial items (EBIT)
EBIT margin % % %
Invested capital
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)
10 Ocean Directors’ ReportA.P. Moller - Maersk Interim Report Q1 | 5 May 2021
Total operating costs was 5.6% lower at USD 6.0bn (USD
6.4bn), driven by lower bunker cost, partly offset by higher
container handling costs as a result of higher volumes
and the bottlenecks in the supply chains due to COVID-19.
Adjusting for the impact of foreign exchange rates, oper-
ating costs decreased by 3.7%.
Bunker costs decreased by 22% to USD 1.1bn (USD 1.4bn),
with a decrease in average bunker price of 28% to 398
USD/tonne (551 USD/tonne) compared to Q1 2020, where
IMO regulations were imposed with requirements on
low-sulphur fuel oil. Bunker consumption increased by
8.3% and bunker efficiency increased by 0.5% to 41.8 g/
TEU*NM (42.0 g/TEU*NM).
Average quarterly prices for high-sulphur fuel oil in Singa-
pore and Rotterdam soared by 25% q/q and 29% q/q from
Q4 2020 to Q1 2021, respectively, averaging USD 377/tonne
(t) and USD 357/t in Q1 2021. Similarly, average quarterly
low-sulphur fuel oil prices increased significantly by 33%
q/q to USD 484/t in Singapore and 33% q/q to USD 453/t
in Rotter dam from Q4 2020 to Q1 2021. Low-sulphur 0.1%
marine gasoil rose by 32% q/q to USD 504/t in Singapore
and 32% q/q to USD 492/t in Rotterdam in Q1 2021 over
Q4 2020.
Unit cost at fixed bunker decreased by 1.9% to 1,988 USD/FFE
(2,026 USD/FFE), driven by lower container costs and other
non-operational costs, partly offset 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 decreased by 3.0%.
The average nominal capacity of 4,104k TEU decreased by
1.4%. However, deployed capacity was higher in Q1 2021 due
to fewer vessels in dry dock. There were no vessels in the
newbuilding programme end of Q1, and the fleet consisted
of 305 owned and 400 chartered vessels, of which 64k TEU
or 1.6% of the fleet were idle (10 vessels), mainly due to
repairs, scrubbers retrofitting and capacity adjustments.
Key initiatives in Q1
During Q1 2021, Ocean has taken further steps towards
partnering with key customers, offering contract customers
additional flexibility and space to help with the volatility in
their supply chains. Through this the share of business from
contract customers has increased, along with an increase in
contract validity to build further stability and resilience in
customer partnerships, in line with the Ocean strategy.
Twill, the end-to-end digital product designed for small
customers without in-house logistic capabilities, crossed
average 3,758 FFE per week by end of Q1 2021 compared to
average 169 FFE per week same period last year.
As result of increased demand for allocation from contrac-
tual customers, Ocean had to reduce Maersk Spot availability.
To protect the quality of the product, the amount of offers
that could be made was reduced due to the operational envi-
ronment and ability to deliver. Consequently, the adoption
rate of Maersk Spot as a percentage of total short-term
volumes was flat in Q1 2021 at 36% (15%) across all brands
or 52% (25%) if measured on the Maersk brand. Maersk Spot
remains a critical product for freight forwarder customers.
Decarbonisation is a core element of the Ocean integrator
strategy and a strong focus amongst customers. In Q1 2021,
the world’s first carbon-neutral liner vessel was announced
with expected arrival in 2023, seven years ahead of the initial
2030-ambition. All future new buildings will have dual fuel
technology installed.
Logistics & Services
A.P. Moller - Maersk’s capabilities to meet customer’s needs
for Logistics & Services solutions were further strengthened
in Q1 2021 resulting in revenue growth. EBITDA increased to
USD 205m (USD 68m) and EBIT increased to USD 139m (USD
29m), driven by strong performance across all product offer-
ings including Landside Transportation margin improvement,
earnings from Performance Team in North America and
integration of KGH in Europe strengthening the offering of
end-to-end solutions.
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
Fleet overview, end Q1 2021
Q Q
TEU
Own container vessels
Chartered container vessels
Total fleet
Number of vessels
Own container vessels
Chartered container vessels
Total fleet
11 Ocean | Logistics & Services Directors’ ReportA.P. Moller - Maersk Interim Report Q1 | 5 May 2021
Financial and operational performance
Revenue increased by 42% to USD 2.0bn (USD 1.4bn), posi-
tively impacted by strong performance across all services.
Gross profit increased by 67% to USD 511m (USD 306m),
driven by growth and higher margins in Landside Transpor-
tation and increased profitability in Contract Logistics facil-
ities in North America, specifically driven by the integra-
tion of Performance Team. EBITDA increased to USD 205m
(USD 68m) with an EBITDA margin of 10.0% (4.7%) and EBIT
increased to USD 139m (USD 29m) with an EBIT margin of
6.8% (2.0%) and an EBIT conversion ratio of 27.2% (9.5%).
The Managed by Maersk services revenue was up by 58%
to USD 348m (USD 220m), driven by an increase in Lead
Logistics Supply Chain Management volumes of 42% to
20.684 kcbm (14,572 kcbm) due to strong performance
in Asia Pacific and Customs Services volumes up 199% to
1,095k declarations (366k declarations).
The Fulfilled by Maersk services revenue was up by 107% to
USD 457m (USD 221m), driven by Contract Logistics activities
and turnaround of facilities in North America, combined with
increasing volumes and a growing footprint from the acqui-
sition of Performance Team. The growth in Contract Logistics
is 38% organic and 62% inorganic.
The Transported by Maersk services revenue was up by 24%
to USD 1,240m (USD 1,001m), driven by a 39% increase in
Air freight forwarding volumes to 36.3k tonne (26.1k tonne)
primarily coming from Asia Pacific and Landside Transpor-
tation Intermodal volumes increase of 20% to 1,037k FFE
(863k FFE) mainly due to a higher penetration ratio into
existing Ocean customers.
The wind down of former Damco freight forwarding ocean
activities is progressing as per plan and the volumes are
down 53% to 47 kTEU (100 kTEU).
New Logistics & Services categories
‘Global supply chains are complex and hard to manage for
customers and lack of connectivity between service providers
makes global logistics unpredictable and increasingly com-
plex. True integration means the ability to bring it all together.
To organise and optimise; to assume responsibility and deliver
accountability. “By Maersk” matches how the customer thinks
about logistics.’
See the following page for a description of the new product
families and the strategic rationale behind the changes made.
Logistics & Services highlights
USD million Q M
Revenue
Direct costs (third party cost)
Gross profit
Direct Operating Expenses
Selling General & Administration (SG&A)
Profit/loss before depreciation amortisation and impairment losses etc (EBITDA)
EBITDA margin % % %
Profit/loss before financial items (EBIT)
EBIT margin % % %
Invested capital
Gross capital expenditure excl acquisitions and divestments (CAPEX)
Operational and nancial metrics
EBIT conversion (EBIT/gross profit - %) % % %
Managed by Maersk revenue
Fulfilled by Maersk revenue
Transported by Maersk revenue
Supply chain management volumes (kcbm)
Intermodal volumes (kFFE)
Sea freight volumes (TEU)
Air freight volumes (tonne)
Organic/inorganic
Q-A Organic Inorganic Q-A
Revenue
% %
EBITA
12 Logistics & Services Directors’ ReportA.P. Moller - Maersk Interim Report Q1 | 5 May 2021
Key initiatives in Q1
In ‘Managed by Maersk’, Maersk NeoNav (4PL control tower
product) and Maersk Flow (Digital supply chain manage ment
for medium-sized customers) products gained customer
tractions and industry recognition. Maersk NeoNav has been
named by Gartner as one of the top innovations in logistics in
2021. TradeLens was listed in Forbes’ annual blockchain Top
50 company and continues to scale and now consists of 160
ports and terminals globally.
In ‘Fulfilled by Maersk’, network expansion continues with
now 2.4m sqm warehousing around the world serving
strategically the Maersk customers. In North America,
Performance Team integration is well on track and deliv-
ering strong commercial synergies, further strengthening
the Contract Logistics offering.
In ‘Transported by Maersk’, the Less Than Container Load
(LCL) value proposition improved by expanding the number
of long-haul lane services as well as stronger customer trac-
tion with the inter-continental rail offering, as exemplified
by increased train frequencies. The air charter service has
also grown significantly, with a growth of almost 3 times air
charter services between Q1 2020 and Q1 2021.
Terminals & Towage
Terminals & Towage reported an increase in revenue of
USD 178m to USD 1.1bn (USD 911m), with an increase in
EBITDA of USD 104m to USD 380m (USD 276m) and an
increase in EBIT of USD 75m to USD 272m (USD 197m).
In gateway terminals, revenue increased to USD 915m
(USD 740m) as a result of higher volume and supply chain
congestion in the USA. EBITDA increased to USD 323m
(USD 213m) and EBIT increased to USD 239m (USD 162m).
In Towage, revenue increased to USD 181m (USD 178m),
while EBITDA decreased to USD 57m (USD 64m). EBIT
was on par at USD 34m (USD 36m).
Terminals
Financial and operational performance
Revenue increased to USD 915m (USD 740m), driven by
higher volumes, higher storage income and consolida-
tion of Pipavav, India. This significantly impacted EBITDA
increasing to USD 323m (USD 213m) with an increase in
EBITDA margin to 35.3% (28.7%). EBIT increased to USD
239m (USD 162m), driven by higher EBITDA, partially off-
set by higher depreciation and lower results from joint
ventures and associated companies. CAPEX was USD 69m
(USD 56m).
In North America, revenue increased as a result of 16%
volume growth and increased storage income driven
by supply chain congestion. This was partially offset by
higher labour costs as a result of high volume and yard
congestion, leading to an increase in the EBITDA margin
to 33% (18%).
In Asia, the volume grew 33% and the EBITDA margin
increased by 23 percentage points to 41% (18%) which
was mainly driven by consolidation of Pipavav (effective
from June 2020). Business ramp-up on the first of two new
berths in Yokohama, Japan, was partially offset by lower
volume in Mumbai, India. This resulted in 5.3% like-for-like
(excluding Pipavav) volume growth in Asia. The second
new berth in Yokohama became operational in April 2021.
Logistics & Services product specifications
Product families Details Strategic rationale
Managed by Maersk • Lead Logistics (Supply Chain Management and 4PL)
• Cold Chain logistics
• Custom Services
• TradeLens
Integrated management solutions enable customers
to control or outsource part or all their supply chain.
Combining transport and fulfilment solutions with
digital platforms, give end to end visibility, action ability
and control.
Fulfilled by Maersk • Contract logistics (Warehousing & Distribution
and Depot)
• E-commerce
Integrated fulfilment solutions improve customer con-
solidation and storage down to order level. Whether
E-commerce or cold storage, Logistics & Services solu-
tions connect seamlessly to its transportation network,
optimising inventory flow and precision to deliver
individual orders precisely and on time.
Transported by Maersk • Landside Transportation (Intermodal and
Intercontinental Rail)
• Insurance
• Air & Less Than Container Load (LCL)
• Star Air
• Full Container Load (FCL)
• Sea Freight Forwarding Others
Integrated transportation solutions facilitate supply
chain control across A.P. Moller - Maersk´s assets.
The solutions are modular, providing customers end
to end services with higher reliability, speed and
accountability.
13
Logistics & Services | Terminals & Towage Directors’ ReportA.P. Moller - Maersk Interim Report Q1 | 5 May 2021
In Latin America, increased revenue per move in Callao,
Peru, and volume growth of 5% supported an increase
in the EBITDA-margin to 49% (39%). In Africa and Middle
East volume decreased by 2.3% driven by loss of ser-
vices in Cotonou, Benin. The volume reduction in combi-
nation with negative impact from foreign exchange rates
led to a reduction in the EBITDA margin of the Africa and
Middle East region to 36% (39%). In Europe, the EBITDA
margin decreased to 20% (27%) mainly due to a non-
recurring adjustment in lease costs and changes to ter-
minal volume mix.
Gateway volumes increased by 10% (increased by 5.6%
like-for-like, adjusted for Pipavav) and utilisation was
high at 73% (70%) with volume growth mainly in North
America, offset by capacity increases. Volume from the
Ocean segment increased by 11%, and volume from exter-
nal customers increased by 9.7%.
Upwards shifts in both revenue and cost in North America
were the main drivers behind an increase in global revenue
per move of 11% to USD 298 (USD 267) and an increase in
cost per move of 1.5% to USD 236 (USD 233). Adjusted for
foreign exchange rates, volume mix effects and port folio
changes, revenue per move increased by 11% and cost per
move increased by 1.9%.
The Suez Canal blocking had a neglectable impact on Q1
2021 financials.
Results from joint ventures and
associated companies
The share of profit in joint ventures and associated com-
panies decreased to USD 58m (USD 67m). The result for Q1
2021 was positively impacted by higher results in Santos,
Brazil and Tema, Ghana, whereas the result in Q1 2020
benefitted from foreign exchange rate gains.
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 % % %
Profit/loss before financial items (EBIT)
EBIT margin % % %
Invested capital
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
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.
14 Terminals & Towage Directors’ ReportA.P. Moller - Maersk Interim Report Q1 | 5 May 2021
Key initiatives in Q1
The construction work in Abidjan, Ivory Coast, has com-
menced and the first phase is expected to go live in 2022.
Tenders for the expansion work has been concluded in
APM Terminals Poti, Georgia and the enlargement of the
terminal is expected to complete in 2023. Yokohama ter-
minal expansion work was completed by the end of Q1.
Towage
Financial and operational performance
Although COVID-19 impacted the activity level and cre-
ated operational challenges, towage profitability remains
resilient. Revenue increased by USD 3m to USD 181m
(USD 178m), however, adjusted for foreign exchange rate
development, it decreased by USD 12m or 6.5%. Revenue
was negatively impacted by lower harbour towage activ-
ity, measured by the number of tug jobs, by 5.1% particu-
larly due to Brexit and continued impacts of COVID-19,
partly offset by a ramp-up of activities in Tangier Med 2,
Morocco. EBITDA decreased to USD 57m (USD 64m), mainly
impacted by non-recurring items, such as higher IT cost
related to new applications, as well as a USD 3m compen-
sation for early termination of contracts for pilot boats
received in 2020, partly offset by lower bunkering costs.
For terminal towage, annualised EBITDA per tug decreased,
primarily impacted by the compensation received for pilot
boats in 2020.
Results from joint ventures and
associated companies
The share of profit in joint ventures and associated compa-
nies increased by 32% to USD 6m (USD 4m), with increases
driven by the Americas, Australia and China.
Key initiatives in Q1
During Q1, Svitzer renewed two important Harbour Towage
contracts in Brazil and Argentina. Two contract extensions
were signed in Oman. In Europe, Harbour Towage operations
commenced in Emden, Germany in January 2021.
Manufacturing & Others
Revenue was USD 342m (USD 295m) with an EBITDA of
USD 32m (USD 43m) and EBIT of USD 7m (USD 18m).
For Maersk Container Industry, revenue increased to
USD 199m (USD 124m), driven by strong market demand.
Approximately 50% of revenue was related to third-party
customers. EBITDA increased to USD 25m (USD 14m), and
EBIT increased to USD 23m (USD 13m), due to the improved
contribution coming from higher sales. Maersk Container
Industry had a strong quarter for bookings adding to a very
solid order backlog.
Maersk Supply Service reported a 22% decrease in revenue
to USD 54m (USD 70m) with an EBITDA of negative USD 9m
(positive USD 14m) and EBIT of negative USD 19m (positive
USD 5m), reflecting lower activity and profitability in the
market. Despite the positive financial impact of the onshore
staff reductions in 2020 and the cost focus across its fleet,
Maersk Supply Service could not offset the impact of lower
activity at the beginning of the quarter. Maersk Supply
Service was awarded new contracts in key geographies such
as Africa and Europe in Q1 2021. Further, Maersk Supply
Service continued to grow its integrated services solutions
securing new contracts in Africa and Brazil.
A.P. Moller - Maersk has extended the partnership with
The Ocean Cleanup for three years, and will continue to
provide marine support to rid the ocean for plastic.
For other businesses, revenue was USD 90m (USD 101m)
with an EBITDA of USD 15m (USD 15m) and EBIT of USD 2m
(USD 0m).
Manufacturing & Others highlights
USD million Q M
Revenue
Profit/loss before depreciation amortisation and impairment losses etc (EBITDA)
EBITDA margin % % %
Profit/loss before financial items (EBIT)
EBIT margin % % %
Invested capital
Gross capital expenditure excl acquisitions and divestments (CAPEX)
15
Terminals & Towage | Manufacturing & Others Directors’ ReportA.P. Moller - Maersk Interim Report Q1 | 5 May 2021
Statement of the Board of Directors
and the Executive Board
Copenhagen, 5 May 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
Bernard L. Bot
Marc Engel
Arne Karlsson
Thomas Lindegaard Madsen
Blythe S. J. Masters
Amparo Moraleda
Jacob Andersen Sterling
Robert Mærsk Uggla
16
Statement of the Board of Directors and the Executive Board Directors’ ReportA.P. Moller - Maersk Interim Report Q1 | 5 May 2021
Financials
Condensed income statement
Note Q M
Revenue 12,439 9,571 39,740
Profit before depreciation amortisation and impairment losses etc (EBITDA) 4,039 1,521 8,226
Depreciation amortisation and impairment losses net 1,025 1,073 4,541
Gain on sale of non-current assets etc net 7 19 202
Share of profit/loss in joint ventures and associated companies 76 85 299
Profit/loss before financial items (EBIT) 3,097 552 4,186
Financial items net -230 -215 -879
Profit/loss before tax 2,867 337 3,307
Tax 150 128 407
Profit/loss for the period 2,717 209 2,900
Of which:
Non-controlling interests 20 12 50
AP Møller - MærskA/S’ share 2,697 197 2,850
Earnings per share USD 139 10 145
Diluted earnings per share USD 139 10 145
Condensed statement of comprehensive income
Note Q M
Profit/loss for the period 2,717 209 2,900
Translation from functional currency to presentation currency -217 -356 195
Reclassified to income statement gain on sale of non-current assets etc net 7 - 64
Cash flow hedges -61 -201 43
Tax on other comprehensive income -9 27 10
Share of other comprehensive income of joint ventures and associated companies net of tax -8 8 5
Total items that have been ormay be reclassified subsequently to the income statement -288 -522 317
Other equity investments 1 - 2
Actuarial gains/losses on defined benefit plans etc - 170 -207
Tax on other comprehensive income - - -4
Total items that will not be reclassified to the income statement 1 170 -209
Other comprehensive income net of tax -287 -352 108
Total comprehensive income for the period 2,430 -143 3,008
Of which:
Non-controlling interests 19 3 47
AP Møller - MærskA/S’ share 2,411 -146 2,961
17
Interim consolidated financial statements Q1 2021 Financials
A.P. Moller - Maersk Interim Report Q1 | 5 May 2021
Amounts in USD million
Condensed balance sheet at 31March
Note March M
Intangible assets 5,019 4,189 5,145
Property plant and equipment 26,395 26,861 26,481
Right-of-use assets 7,963 8,315 8,323
Financial non-current assets etc 2,995 3,521 3,183
Deferred tax 256 259 249
Total non-current assets 42,628 43,145 43,381
Inventories 1,475 1,126 1,049
Receivables etc 5,996 5,523 5,603
Securities 1 2 1
Cash and bank balances 6,418 4,041 5,865
Assets held for sale 216 153 218
Total current assets 14,106 10,845 12,736
Total assets 56,734 53,990 56,117
Note March M
Equity attributable to AP Møller - MærskA/S 30,918 27,230 29,850
Non-controlling interests 987 715 1,004
Total equity 31,905 27,945 30,854
Lease liabilities non-current 7,039 7,178 7,356
Borrowings non-current 5,092 6,953 5,868
Other non-current liabilities 1,875 2,144 1,985
Total non-current liabilities 14,006 16,275 15,209
Lease liabilities current 1,384 1,252 1,391
Borrowings current 946 802 758
Other current liabilities 8,407 7,642 7,814
Liabilities associated with assets held for sale 86 74 91
Total current liabilities 10,823 9,770 10,054
Total liabilities 24,829 26,045 25,263
Total equity and liabilities 56,734 53,990 56,117
18
Amounts in USD million
Interim consolidated financial statements Q1 2021 Financials
A.P. Moller - Maersk Interim Report Q1 | 5 May 2021
Condensed cash flow statement
Note Q M
Profit/loss before financial items 3,097 552 4,186
Non-cash items etc 883 902 4,305
Change in working capital -459 -162 -239
Cash flow from operating activities before tax 3,521 1,292 8,252
Taxes paid -88 -76 -424
Cash flow from operating activities 3,433 1,216 7,828
Purchase of intangible assets and property plant and equipment (CAPEX) -329 -310 -1,322
Sale of intangible assets and property plant and equipment 35 46 435
Sale of other equity investments 4 - 5
Acquisition of subsidiaries and activities - -32 -425
Sale of subsidiaries and activities 1 5 36
Dividends received 59 22 177
Financial investments etc net -100 13 70
Cash flow used for investing activities -330 -256 -1,024
Repayments of/proceeds from borrowings net -483 -385 -1,860
Repayments of lease liabilities -629 -342 -1,710
Financial payments net -83 -74 -292
Financial expenses paid on lease liabilities -114 -113 -468
Purchase of own shares -333 -296 -806
Dividends distributed -889 -375 -430
Dividends distributed to non-controlling interests -12 -12 -92
Other equity transactions 9 -23 40
Cash flow from financing activities -2,534 -1,620 -5,618
Net cash flow for the period 569 -660 1,186
Cash and cash equivalents beginning of period 5,845 4,758 4,758
Currency translation effect on cash and bank balances 7 -66 -80
Cash and cash equivalents end of period 6,421 4,032 5,864
Of which classified as assets held for sale -20 - -19
Cash and cash equivalents end of period 6,401 4,032 5,845
Cash and cash equivalents
Cash and bank balances 6,418 4,041 5,865
Overdrafts 17 9 20
Cash and cash equivalents end of period 6,401 4,032 5,845
Cash and bank balances include USD 1.0bn (USD 1.0bn) 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.
19
Amounts in USD million
Interim consolidated financial statements Q1 2021 Financials
A.P. Moller - Maersk Interim Report Q1 | 5 May 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 3,632 -432 -6 -42 26,698 29,850 1,004 30,854
2021
Other comprehensive income
net of tax - -208 2 -70 -10 -286 -1 -287
Profit/loss for the period - - - - 2,697 2,697 20 2,717
Total comprehensive income
for the period - -208 2 -70 2,687 2,411 19 2,430
Dividends to shareholders - - - - -1,017 -1,017 -45 -1,062
Value of share-based payment - - - - 2 2 - 2
Purchase of own shares - - - - -333 -333 - -333
Sale of own shares - - - - 5 5 - 5
Capital increases and decreases - - - - - - 9 9
Transfer of gain/loss on disposal
of equity investments to retained
earnings - -2 - 2 - - -
Total transactions with
shareholders - - -2 - -1,341 -1,343 -36 -1,379
Equity March 3,632 -640 -6 -112 28,044 30,918 987 31,905
Equity January 3,774 -692 -4 -97 25,117 28,098 739 28,837
2020
Other comprehensive income
net of tax - -348 - -173 178 -343 -9 -352
Profit/loss for the period - - - - 197 197 12 209
Total comprehensive income
for the period - -348 - -173 375 -146 3 -143
Dividends to shareholders - - - - -430 -430 -28 -458
Value of share-based payment - - - - 4 4 - 4
Purchase of own shares - - - - -296 -296 - -296
Capital increases and decreases - - - - - - 1 1
Total transactions with
shareholders - - - - -722 -722 -27 -749
Equity March 3,774 -1,040 -4 -270 24,770 27,230 715 27,945
20
Amounts in USD million
Interim consolidated financial statements Q1 2021 Financials
A.P. Moller - Maersk Interim Report Q1 | 5 May 2021
Note 1 Segment information
Ocean Logistics
& Services
Terminals
& Towage
Manu facturing
& Others
Total
Q1 2021
External revenue
Inter-segment revenue
Total segment revenue
Unallocated items
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)
Segment Profit/loss before financial items (EBIT)
Unallocated items -
Eliminations
Consolidated Profit/loss before financial items (EBIT)
Segment Invested capital Segments
Unallocated items -
Eliminations -
Consolidated Invested capital Segments
Consolidated Invested capital Non-segments -
Consolidated Invested capital
Segment gross capital expenditures excl acquisitions and divestments (CAPEX)
Unallocated items -
Eliminations -
Consolidated gross capital expenditures excl acquisitions and divestments (CAPEX)
21
Amounts in USD million
Interim consolidated financial statements Q1 2021 Financials
A.P. Moller - Maersk Interim Report Q1 | 5 May 2021
Note 1 Segment information – continued
Ocean Logistics
& Services
Terminals
& Towage
Manu facturing
& Others
Total
Q1 2020
External revenue
Inter-segment revenue
Total segment revenue
Unallocated items
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)
Segment Profit/loss before financial items (EBIT)
Unallocated items -
Eliminations
Consolidated Profit/loss before financial items (EBIT)
Segment Invested capital Segments
Unallocated items
Eliminations -
Consolidated Invested capital Segments
Consolidated Invested capital Non-segments -
Consolidated Invested capital
Segment gross capital expenditures excl acquisitions and divestments (CAPEX)
Unallocated items -
Eliminations
Consolidated gross capital expenditures excl acquisitions and divestments (CAPEX)
22
Amounts in USD million
Interim consolidated financial statements Q1 2021 Financials
A.P. Moller - Maersk Interim Report Q1 | 5 May 2021
Note 1 Segment information – continued
USD million Types of revenue Q M
Ocean Freight revenue
Other revenue including hubs
Logistics & Services Managed by Maersk
Fulfilled by Maersk
Transported by Maersk
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.
23
Amounts in USD million
Interim consolidated financial statements Q1 2021 Financials
A.P. Moller - Maersk Interim Report Q1 | 5 May 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
March
January
March
At the Annual General Meeting of A.P. Møller - Mærsk A/S on 23 March 2021, the shareholders decided on the cancellation of treasury
shares, whereby the share capital will decrease from nominally DKK 20,031,947,000 by nominally DKK 655,931,000 in total, divided
into 131,186 A shares and 524,745 B shares of DKK 1,000 to nominally DKK 19,376,016,000 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 % %
March % %
B shares
January % %
Addition % %
Disposal % %
March % %
Disposals of own shares are related to the share option plans and the restricted shares plan.
The dividend of DKK 330 per share of DKK 1,000 – total of DKK 6,610m is equivalent to USD 1,017m excluding own shares.
Hereof, USD 889m was paid to shareholders on March 26, 2021 and the withholding tax of USD 130m is payable in Q2 2021.
Payment of dividends to shareholders does not trigger taxes to A.P. Moller - Maersk.
The interim consolidated financial statements
have been prepared in accordance with IAS 34
Interim Financial Reporting as issued by the Inter-
national Accounting Standards Board (IASB) and
adopted by the EU and additional Danish disclo-
sure require ments for interim financial reporting
of listed companies.
The accounting policies, judgements and signifi-
cant estimates are consistent with those applied in
the Annual Report 2020, notes 23 and 24, to which
reference is made, apart from the changes described
below:
Change to product groups in reportable segment
As part of the refinement of the segment structure
of A.P. Moller - Maersk, the product groups of the
Logistics & Services segment have been updated.
Refer to the Logistics & Services product specifi-
cations on page 13.
Change to accounting estimates
The estimated useful life and residual values of
containers have been revised. The net effect of
the changes was an increase in EBIT of USD 106m
in Q1 2021.
The useful life of new containers is typically esti-
mated to 15 years. The residual values are initially
estimated between 10% and 30%, depending on the
container type.
Note 3 Accounting policies, judgements and significant estimates
24
Amounts in USD million
Interim consolidated financial statements Q1 2021 Financials
A.P. Moller - Maersk Interim Report Q1 | 5 May 2021
Additional information
Quarterly summary
Income statement 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
AP Møller - Mærsk A/S’ share
Underlying profit/loss
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
Financial ratios
Revenue growth % % -% -% %
EBITDA margin % % % % %
EBIT margin % % % % %
Cash conversion % % % % %
Return on invested capital after tax (ROIC) % % % % %
Equity ratio % % % % %
Underlying ROIC % % % % %
Underlying EBITDA
Underlying EBITDA margin % % % % %
Underlying EBIT
Underlying EBIT margin % % % % %
Stock market ratios
Earnings per share USD
Diluted earnings per share 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 USD
1 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.
25
Amounts in USD million
Quarterly summary Additional informationA.P. Moller - Maersk Interim Report Q1 | 5 May 2021
Definition of terms
Technical terms, abbreviations and definitions of key figures and financial ratios.
Backhaul
The direction of the trade route with
the lowest volumes, whereas the
opposite direction is referred to as
headhaul.
Bunker Adjustment Factor (BAF)
A surcharge applied to freight rates
to compensate unexpected fuel oil
price variations as an element in the
contracts with customers.
CAPEX
Cash payments for intangible assets
and property, plant and equipment,
excluding acquisitions and divest-
ments.
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.
Cost per move
Includes cost (EBITDA less revenue
less other income), depreciation and
excludes IFRIC12 construction cost.
EBIT
Earnings Before Interest and Taxes.
EBITA
Earnings Before Interest, Tax and
Amortisation.
EBITDA
Earnings Before Interest, Taxes,
Depreciation and Amortisation.
Equity ratio
Calculated as equity divided by total
assets.
FFE
Forty Foot container Equivalent unit.
Free cash flow (FCF)
Comprised of cash flow from operating
activities, purchase/sale of intangible
assets and property, plant and equip-
ment, dividends received, repayments
of lease liabilities, financial payments
and financial expenses paid on lease
liabilities.
Gross profit
The sum of revenue, less variable costs
and loss on debtors.
Headhaul
The direction of the trade route
with the highest volumes, whereas
the return direction is referred to as
backhaul.
IMO 2020
The International Maritime Organiza-
tion’s (IMO) 0.5% global cap on sulphur
dioxide (SO
x
) content in fuels for
shipping has entered into force on
1 January 2020.
IMO
The International Maritime Organi-
zation.
Invested capital
Segment assets less liabilities.
kcbm
The freight volume of the shipment
for domestic and international freight.
Cubic metre (CBM) measurement is
calculated by multi plying the width,
height and length together of the
shipment.
Loaded volumes
Loaded volumes refer to the number of
FFE´s loaded on a shipment, which are
loaded on first load at vessel departure
time excluding displaced FFE´s.
Net interest-bearing debt (NIBD)
Equals interest-bearing debt, including
leasing liabilities, fair value of deriva-
tives hedging the underlying debt, less
cash and bank balances as well as other
interest-bearing assets.
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, last
twelve months.
Revenue per move
Includes terminal revenue, other
income, government grants and
excludes IFRIC12 construction
revenue.
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. Moller - Maersk A/S’ holding of
own shares – multiplied by the end-
of-quarter price quoted by Nasdaq
Copenhagen.
Underlying profit/loss
Underlying profit/loss is profit/loss
for the period from continuing oper-
ations adjusted for net gains/losses
from sale of non-current assets etc.
and net impairment losses as well as
transaction, restructuring and inte-
gration costs related to major trans-
actions. 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.
4PL
A 4PL is a fourth-party logistics pro-
vider managing resources, technology,
infrastructure, and managing external
3PLs to design, build and provide supply
chain solutions for businesses.
26 Definition of terms Additional informationA.P. Moller - Maersk Interim Report Q1 | 5 May 2021
Colophon
Editors
Stig Frederiksen
Finn Glismand
Henrik Jensen
Design and layout
e-Types
Produced in Denmark 2021
Board of Directors
Jim Hagemann Snabe, Chairman
Ane Mærsk Mc-Kinney Uggla, Vice Chairman
Bernard L. Bot
Marc Engel
Arne Karlsson
Thomas Lindegaard Madsen
Blythe S. J. Masters
Amparo Moraleda
Jacob Andersen Sterling
Robert Mærsk Uggla
Executive Board
Søren Skou, Chief Executive Officer (CEO)
Patrick Jany (CFO)
Vincent Clerc
Morten Engelstoft
Navneet Kapoor
Henriette Hallberg Thygesen
Audit Committee
Arne Karlsson, Chairman
Bernard L. Bot
Amparo Moraleda
Jim Hagemann Snabe
Remuneration Committee
Jim Hagemann Snabe, Chairman
Robert Mærsk Uggla
Amparo Moraleda
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
Amparo Moraleda
27 ColophonA.P. Moller - Maersk Interim Report Q1 | 5 May 2021