ALL THE WAY
2021
Q3
Table of contents
The Interim Report for Q3 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 Annual Report 2021 is expected to be
announced on 9 February 2022.
Webcast and dial-in information
A webcast relating to the Q3 2021 Interim Report
will be held on 2 November 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 021
Market update
Ocean
Logistics & Services
Terminals & Towage
Manufacturing & Others
Statement of the Board of Directors
and the Executive Board
21 Financials
Condensed income statement
Condensed statement of comprehensive income
Condensed balance sheet at 0September
Condensed cash flow statement
Condensed statement of changes in equity
Notes
31 Additional information
Quarterly summary
Definition of terms
2 A.P. Moller - Maersk Interim Report Q3 | 2 November 2021
”
Message from the CEO
In the third quarter, A.P. Moller - Maersk once again set new records in the financial perfor-
mance across Ocean, Logistics & Services and Terminals. Revenue was up 68% to USD 16.6bn
compared to the same quarter last year, EBITDA tripled to USD 6.9bn and EBIT was up
almost five times to USD 5.9bn.
In the ongoing exceptional market situation with high demand in the USA and global disrup-
tions to the supply chains, we continued to increase capacity and expand our offerings to
keep cargo moving for our customers. Supporting our customers’ end-to-end logistics needs
and alleviating the constraints is key to our integrator strategy by designing a more stable
Ocean business, strongly growing our integrated logistics offering and relying on automated
and efficient terminals.
Ocean performance was driven by high rates in an exceptional market during which we kept
growing our long-term contract business, thus guaranteeing reliable transportation to our
customers. Currently 64% of our long-haul volumes are on long-term contracts compared
to 50% a year ago, including multi-year contracts of more than 1.4 million FFE.
In Logistics & Services, we saw top line growth significantly above industry level with organic
volume-driven revenue growth of 33% and robust margins on par with industry average.
Synergies between Ocean and Logistics & Services keep supercharging the growth as more
than half came from Ocean key clients buying into our integrated end-to-end solutions.
Gateway terminals managed to handle record volumes in the quarter, which together with
underlying efficiency improvements allowed to further improve returns to a ROIC of 10.0%,
despite experiencing higher costs due to congestions.
As a natural next step in expanding our multimodal offering, we today announce the acqui-
sition of Senator International to expand our air freight carrier operations and the ordering
of two triple seven aircraft to complement our existing fleet. By strengthening our foot-
print within air freight, we become a sizable player able to add even more flexibility to our
customers’ supply chains and further support their needs for truly integrated logistics across
ocean, air and landside.
On the back of the strong Q3, we confirm our guidance for the full year as announced on
16 September 2021, and we look forward to further progress in our strategy in the coming
quarters and years. To reflect our transformation and our continued commitment to share-
holder returns, the Board of Directors has decided to extend the current share buy-back
programme by an additional USD 5bn over the years 2024 and 2025.”
Søren Skou
Chief Executive Officer
A.P. Moller - Maersk
3 Message from the CEO Directors’ ReportA.P. Moller - Maersk Interim Report Q3 | 2 November 2021
Highlights Q3 2021
• A.P. Moller - Maersk’s financial results continue to be exceptionally strong, with record-high
revenue, EBITDA and EBIT for Q3 and for 9M across the Ocean, Logistics & Services, and Terminals
& Towage segments.
• Revenue for Q3 increased by USD 6.7bn to USD 16.6bn (USD 9.9bn), mainly due to an increase in
Ocean of USD 6.0bn, while revenue increased in Logistics & Services by 38% or USD 710m, and by
24% or USD 229m in Terminals & Towage.
• EBIT in Ocean increased to USD 5.3bn (USD 968m), mainly driven by increased freight rates, partially
offset by higher costs related to handling, bunker and network.
• In Logistics & Services, EBIT increased to USD 194m (USD 100m), mainly reflecting the significant
organic growth in revenue of 33%, driven by strong activity increase across all product families
and strong commercial synergies to top 200 Ocean customers, including the impact from the
acquisition of Visible Supply Chain Management.
• EBIT in Terminals & Towage increased to USD 352m (USD 236m), with an increase in gateway terminals
of USD 119m, driven by higher EBITDA partly due to higher storage income and higher results from
joint ventures and associated companies, partly offset by higher depreciation.
• Free cash flow increased to USD 5.3bn (USD 1.5bn), driven by strong cash flow from operating
activities increasing to USD 6.6bn (USD 2.2bn), mainly offset by CAPEX of USD 610m (USD 280m)
and higher capitalised lease instalments on vessels of USD 611m (USD 397m).
• Return on invested capital (ROIC), last twelve months, increased to 34.5% (5.9%), as earnings
improved, and invested capital increased slightly.
• Net interest-bearing debt decreased to USD 3.1bn (USD 9.2bn at year-end 2020), as free cash flow
of USD 10.9bn for the first nine months was partly used for share buy-backs of USD 1.5bn, div-
idends of USD 1.0bn, acquisition of companies of USD 787m and lease liabilities increased by USD
1.3bn. Excluding lease liabilities, the Group had a net cash position of USD 7.0bn (debt of USD 485m
at year-end 2020).
• A.P. Moller - Maersk acquired HUUB in September, a Portuguese cloud-based logistics start-up
specialising in technology solutions for B2C warehousing. Further, as announced, A.P. Moller - Maersk
has agreed to acquire Senator International, pending regulatory approvals, in order to significantly
increase the air freight activities, and two Boeing B777 aircraft were ordered to be delivered in 2024.
• A.P. Moller - Maersk reiterates the guidance for the underlying EBITDA expected to be in the range
of USD 22.0bn-23.0bn, the underlying EBIT in the range of USD 18.0bn-19.0bn, and free cash flow
(FCF) of minimum USD 14.5bn, as announced on 16 September 2021. The current conditions are
expected to continue at least into Q1 2022 and the EBITDA for Q1 2022 is expected to be in line
with Q4 2021.
• The Board of Directors has decided to extend the current share buy-back programme by an addi-
tional USD 5bn (around DKK 32bn) over the years 2024 and 2025, subject to the corresponding
mandate of the annual general meeting.
4 Highlights Q3 2021 Directors’ ReportA.P. Moller - Maersk Interim Report Q3 | 2 November 2021
Summary financial information
Q Q M M 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 – 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 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 Q3 | 2 November 2021
Financial review Q3 2021
Revenue increased by USD 6.7bn to USD 16.6bn (USD 9.9bn),
with increases across the segments, in Ocean by USD 6.0bn,
in Logistics & Services by USD 710m, and in Terminals &
Towage by USD 229m.
EBITDA increased to USD 6.9bn (USD 2.3bn), primarily driven by
Ocean with an increase to USD 6.3bn (USD 1.8bn), driven by the
increased freight revenue due to higher freight rates which are
caused by the current increased demand combined with bottle-
necks and congestions across global supply chains although
this increased freight revenue is partially offset by higher
costs related to handling, bunker and network. In Logistics
& Services, EBITDA increased by USD 136m to USD 267m
(USD 131m) due to the higher revenue, and in gateway termi-
nals, EBITDA increased to USD 379m (USD 274m) as a result
of the increase in volume and higher storage income.
EBIT of USD 5.9bn (USD 1.3bn) was mainly the result of the
improved EBITDA. The EBIT margin increased to 35.3% (13.0%).
Financial items, net, amounted to USD 185m (USD 160m),
as decreased debt interest payments were more than off-
set by higher interest on leases and foreign exchange rate
adjustments.
Tax increased to USD 213m (USD 182m), primarily due to the
improved financial performance.
The underlying prot was USD 5.4bn (USD 1.0bn).
Cash ow from operating activities was USD 6.6bn (USD 2.2bn),
driven by EBITDA of USD 6.9bn, partly offset by an increase
in net working capital of USD 366m, mainly driven by higher
receivables due to higher revenue, leading to a cash con-
version of 95% (95%).
Gross capital expenditure (CAPEX) of USD 610m (USD 280m),
was driven mostly by higher investments in Ocean and a minor
increase in Logistics & Services, slightly offset by lower
invest ments in Terminals & Towage.
Free cash ow of USD 5.3bn (USD 1.5bn) was positively
impacted by higher cash flow from operating activities,
Financial review
slightly offset by increased lease payments and higher
capital expenditures.
Cash flow from borrowings was negative USD 288m (USD
810m), due to repayments and prepayments of bonds and
loans given the strong cash flow generation and high cash
balance.
Contractual capital commitments totalled USD 3.5bn
(USD 1.7bn at year-end 2020), of which USD 1.2bn is related
to commitments towards terminal concession grantors.
USD 1.6bn of the increase is due to Ocean ordering carbon-
neutral vessels and equipment.
The liquidity reserve increased to USD 16.5bn (USD 11.0bn
at year-end 2020), and was composed of liquid funds and
term deposits of USD 10.5bn excluding restricted cash (USD
4.8bn 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 3.1bn (USD
9.2bn at year-end 2020), as free cash flow of USD 10.9bn
for the first nine months was used for share buy-backs of
USD 1.5bn, dividends of USD 1.0bn, acquisition of compa-
nies of USD 787m and a net increase in lease liabilities of
USD 1.3bn. Excluding lease liabilities, the Group had a net
cash position of USD 7.0bn (debt of USD 485m at year-
end 2020).
A.P. Moller - Maersk remains investment grade-rated and
holds a Baa2 (stable outlook) rating from Moody’s and
a BBB+ (stable) rating from Standard & Poor’s.
Share buy-back
In November 2020, the Board of Directors of
A.P. Møller - Mærsk A/S announced a share buy-back pro-
gramme of up to DKK 10bn (around USD 1.6bn). The first
phase of the programme of DKK 3.3bn (around USD 500m)
was concluded on 29 April 2021. The Board of Directors
decided to accelerate the programme with the remaining
part of the programme of DKK 6.7bn (around USD 1.1bn)
being exercised in one phase running from mid-May. The
programme was ended on 24 September 2021.
Highlights Q3
USD million Revenue EBITDA EBIT CAPEX
Ocean
Logistics & Services
Terminals & Towage
Manufacturing & Others
Unallocated activities eliminations etc - - - - - - -
AP Moller - Maersk consolidated
6 Financial review Q3 2021 Directors’ ReportA.P. Moller - Maersk Interim Report Q3 | 2 November 2021
The Board of Directors further decided in May 2021, under the
authority given at the Annual General Meeting in March 2021,
to commit to an additional share buy-back programme of up
to USD 5bn (around DKK 32bn) to be executed over a period
of two years. The programme is expected to be initiated in
early November 2021.
In addition, the Board of Directors has decided to extend
the current share buy-back programme by an additional
USD 5bn (around DKK 32bn) over the years 2024 and 2025,
subject to the corresponding mandate of the annual gen-
eral meeting.
During Q3, A.P. Moller - Maersk bought back 50,804 A shares
and 201,820 B shares, worth DKK 4.5bn (around USD 714m).
On 30 September 2021, A.P. Moller - Maersk owns a total
of 101,947 A shares and 436,171 B shares as treasury shares,
corresponding to 2.78% of the share capital.
The Board of Directors can decide to acquire own shares up
to a maximum of 15% of the share capital.
Transformation metrics
In 2020-2021, four metrics are tracked as a measurement
on progress besides the overall ROIC target, see table: Trans-
formation metrics.
Value creation is measured by the return on invested capital
(ROIC), last twelve months, and increased to 34.5% (5.9%), as
earnings improved significantly due to higher freight rates
and invested capital declined slightly.
Growing the business is measured by the focus on organic
growth in revenue in Logistics & Services and gateway ter-
minals. Organic revenue increased by 39% to USD 3.5bn
with strong performance in gateways and strong organic
growth in all product families in Logistics & Services com-
pared to 2020.
Protability in Logistics & Services is measured by EBITA,
which increased from USD 108m to USD 209m, driven by
positive revenue growth and margin improvement.
Progress in the commercial synergies from the revenue
growth between Logistics & Services and the top 200 Ocean
customers was an increase of USD 325m, highlighting the
impact of the integrator strategy.
Progress on the commercial digitalisation and product offer-
ing in Ocean, is in the first phase measured via Maersk SPOT
volume share of total short-term volumes, which was 38.5%
in Q3. The percentage is based on the last four weeks of the
reported period for all brands.
Financial review 9M 2021
Revenue was USD 43.3bn (USD 28.5bn) with increases across
all four segments and in particular in Ocean and Logistics &
Services by USD 12.7bn and USD 1.9bn, respectively, mainly
because of higher freight rates in Ocean and volume increases
and margin improvements across businesses in Logistics &
Services.
EBITDA increased by USD 10.5bn to USD 16.0bn (USD 5.5bn)
with increases in all segments, primarily in Ocean by USD
9.8bn due to increasing freight rates and higher volumes.
This is caused by the current increased demand combined
with bottlenecks and congestions across global supply
chains although these increasing freight rates are partially
offset by higher bunker consumption at a higher average
bunker price and increasing handling and network cost.
Transformation metrics
Q Q M M 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 Q3 2021 Directors’ ReportA.P. Moller - Maersk Interim Report Q3 | 2 November 2021
The increase in Logistics & Services of USD 392m was
impacted by volume increases across all product families,
and similar for gateway terminals significant increases in
volumes led to an increase in EBITDA of USD 399m.
EBIT was USD 13.0bn (USD 2.6bn), positively impacted by
the improved EBITDA and by lower depreciations as a result
of reassessing the useful life of container assets, partly off-
set with higher amortisation on vessel charters. The EBIT
margin increased to 30.1% (9.1%).
Financial items, net, amounted to USD 601m (USD 607m),
positively impacted by lower gross debt, but mostly offset
by negative foreign exchange rate impacts.
Tax increased to USD 515m (USD 386m), primarily due to
improved financial performance.
The underlying profit after financial items and tax was
USD 11.9bn (USD 1.6bn).
Cash flow from operating activities was USD 14.1bn (USD
5.3bn), positively impacted by EBITDA of USD 16.0bn, off-
set by a negative change in net working capital of USD 1.7bn
and tax paid of USD 353m, leading to a cash conversion of
88% (95%).
Roadmap to 2025
The roadmap to 2025 is providing specific targets for
the transformation towards becoming the integrator
of container logistics.
Over the last couple of years, A.P. Moller - Maersk has
built a record of strongly improved financial perfor-
mance and based on the integrator strategy, the expec-
tation/target is to continue to deliver shareholder
value creating returns on invested capital (ROIC) above
7.5%, and in the period 2021-2025 to deliver average
returns on invested capital above 12% given the strong
starting point in 2021.
Gross capital expenditure (CAPEX) was USD 1.4bn (USD
952m), mainly driven by higher investments in Ocean and
slightly offset by lower investments in Logistics & Services
and in Terminals & Towage.
Free cash flow was USD 10.9bn (USD 3.0bn), positively
impacted by higher cash flow from operating activities of
USD 14.1bn (USD 5.3bn), partly offset by higher gross CAPEX
of USD 1.4bn (USD 952m) and increased lease payments of
USD 1.7bn (USD 1.1bn).
Cash flow from borrowings was negative by USD 1.8bn (USD
298m), due to repayments and prepayments of bonds and
loans offset by a bond issuance in the comparative period.
The ordinary dividend of DKK 330 per A.P. Møller - Mærsk A/S
share of nominally DKK 1,000 (USD 1.0bn) declared at the
Annual General Meeting on 23 March 2021, was paid on
26 March 2021.
Total equity increased to USD 39.8bn (USD 30.9bn on
31 December 2020) due to a net profit of USD 11.9bn off-
set by dividends of USD 1.0bn and share repurchase of
USD 1.5bn, resulting in an equity ratio of 60.8% (55.0% on
31 December 2020).
Highlights 9M
USD million Revenue EBITDA EBIT CAPEX
Ocean
Logistics & Services
Terminals & Towage
Manufacturing & Others
Unallocated activities eliminations etc - - - - - -
AP Moller - Maersk consolidated
A.P. Moller - Maersk will prioritise the capital allocation
to investments in the business including acquisitions
in Logistics & Services, repaying debt, paying ordinary
dividends based on a pay-out ratio of 30-50% of under-
lying net profit and distributing excess cash to share-
holders through share buy-backs and special dividends
in that order.
With the very strong financial position of the company,
the existing share buy-back was accelerated and con-
cluded in September 2021. A new USD 5bn share buy-
back programme over two years will be initiated.
8 Financial review Q3 2021 Directors’ ReportA.P. Moller - Maersk Interim Report Q3 | 2 November 2021
Over the last four years, fundamentals have improved
for the Ocean business. A strong growth engine has
been built in Logistics & Services, and the gateway
terminals business is again delivering value-creating
returns. Based on performance and progress, new tar-
gets were set for the performance of the business
through to 2025.
Ocean is expected to deliver EBIT margins above 6%
under normalised conditions. Total fleet capacity will
be in the range of 4.1-4.3m TEU.
For Logistics & Services, the expectation is to continue
the strong growth and target organic growth above 10%,
of which 50% of the organic growth will be related to
the top 200 Ocean customers and with an EBIT mar-
gin above 6%, making Logistics & Services the growth
engine, measured by revenue, for the company. In addi-
tion to rapid organic growth, the expectation is to con-
tinue to make acquisitions, mainly of new capabilities
and growth platforms, to expand the logistics business.
Finally, for gateway terminals the expectation is to deliver
returns on invested capital of above 9% towards 2025,
well above industry average, driven by synergies with
Ocean and the operating model in gateway terminals.
The roadmap to 2025
Targets Q
Consolidated
Return on invested capital (ROIC)
Every year > %
Average - > % %
– CAPEX and leases at depreciation level
– Stable invested capital over the period
Dividend policy of underlying net profit -%
Share buy-back over - USDm
Ocean
EBIT margin – under normalised conditions > % %
Execute with the existing fleet size TEUm -
Logistics & Services
Organic revenue growth per year >% %
Of which from top Ocean customers % %
EBIT margin > % %
Terminals
Return on invested capital (ROIC) > % %
Mid-term targets were introduced at the Capital Markets Day
in May 2021.
1 Based on figures for the first nine months of 2021.
9 Financial review Q3 2021 Directors’ ReportA.P. Moller - Maersk Interim Report Q3 | 2 November 2021
Guidance for 2021
Given the strong results in Q3 2021 and the exceptional
market situation still expected to continue at least into Q1
2022, the full-year guidance that was revised upwards on 16
September 2021 is reiterated:
• Underlying EBITDA in the range of USD 22.0bn-23.0bn
(previously USD 18.0bn-19.5bn) compared to USD 8.3bn
in 2020
• Underlying EBIT in the range of USD 18.0bn-19.0bn
(previously USD 14.0bn-15.5bn) compared to USD 4.2bn
in 2020
• Free cash flow (FCF) of minimum USD 14.5bn (previously
minimum USD 11.5bn) compared to USD 4.6bn in 2020.
Ocean is now expected to grow below the global container
demand, which is now expected to grow 7-9% in 2021 (pre-
viously 6-8% in 2021), subject to high uncertainties related
to the current congestion and network disruptions.
For 2021-2022, the expectation for the accumulated
CAPEX remains to be around USD 7.0bn.
The current trading conditions are still subject to a high-
er-than-normal uncertainty due to the temporary nature
of current demand patterns and disruptions in the supply
chains. However, the current conditions are expected to
continue at least into Q1 2022 and the EBITDA for Q1 2022
is expected to be in line with Q4 2021.
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.
10 Guidance for 2021 Directors’ ReportA.P. Moller - Maersk Interim Report Q3 | 2 November 2021
Market update
Container sea freight demand growth
Growth % CAGR
(Compound Annual Growth Rate)
Q
vs Q
Globally %
Global headhaul %
East-West %
– Headhaul %
– Backhaul -%
North-South %
Intra-regional %
Global trade developments by ocean, air, and ports (% year-on-year)
Ocean container demand
Air freight
Port container throughput
1 Q3 2021 includes July
and August.
Logistics services demand remained strong across global
supply chains in Q3. Imports to the USA were solid, sup-
ported by high levels of consumer goods spending and cor-
porate CAPEX. European retail sales showed a flattening
path in Q3 while attempts to restock inventories, particu-
larly in the USA and Europe, turned out difficult due to
shortages of semiconductors and other production inputs,
as exemplified by the automotive industry. The supply-
side of the logistics industry continued to be disrupted by
COVID-19 and capacity shortages: container availability and
air capacity remained tight, wait times for vessels outside
of ports remained lengthy given the bottlenecks in land-
side transportation and warehousing. This has resulted in
shortages and challenged supply chain management ser-
vices and thus driving up prices.
Global container demand growth moderated to 2.5% in
Q3, down from double-digit growth rates in H1 2021 which
were supported by the very weak container volumes in H1
2020. Global air cargo volumes (CTK) increased by 26% in
the three months to August compared to 2020, and by 9%
compared to 2019. Trade flows continued to be driven by
the USA, where demand for technology and retail goods
has been supported by transitory pandemic-related driv-
ers, and North American container imports from the Far
East rose 2.0% in Q3. Goods consumption stalled in recent
months in Europe, and production in the automotive sec-
tor was hard hit by input shortages. Consequently, Euro-
pean container imports from the Far East decreased by
0.5% in Q3. Global container demand is projected to
increase by 7-9% in 2021 up from negative 1.8% in 2020,
and by 2-4% in 2022, while air and land side logistics
demand is expected to remain robust through the remain-
der of 2021.
Both the container and air freight industry remained
capacity constrained during the quarter, with capacity in
the commercial air industries some 13% below pre-crisis
levels. In particular, landside disruptions continued to
substantially constrain supply chain capacity, and bottle-
necks in ports reduced effective vessel capacity. At the end
of Q3, the nominal global container fleet stood at 24.7m
TEU, an increase of 4.2% compared to Q3 2020. Idled fleet
remained low in Q3 2021 (0.6% at the end of the quarter)
as the industry has adjusted to high demand, driving up
effective supply. Consequently, the demand-supply bal-
ance deteriorated slightly in Q3, following four quarters of
improvements. Freight and charter rates were nevertheless
persistently high, largely reflecting bottlenecks in domes-
tic logistics and scarce container equipment. The order book
reached 23% of the global fleet in Q3, compared to 20% of
the fleet at the end of Q2 on back of continued high activ-
ity in new ordering. Freight rates out of China, as measured
by the China Composite Freight Index (CCFI), increased by
229% in Q3 compared to the same quarter last year, while
air cargo fares also increased further but by less than con-
tainer shipping rates since mid-2020.
The ongoing dislocation in demand and supply sides of
logistics industries increases the uncertainty surrounding
the outlook. On the demand side, high household savings
in the USA and Europe should support consumer demand,
but the composition of spending is likely to rebalance
towards services, and sharply rising prices for some goods
may lead consumers to adjust their spending plans. More-
over, inventory replenishment will support goods trade well
into 2022, and the channel shift to e-commerce is likely to
keep pressure on outbound logistics capacity. On the sup-
ply side, supplier delivery times remain lengthy, and there
is little visibility into when capacity constraints, including
landside bottlenecks in trucking and warehousing, will
abate, which has been the key driver for the increase in
short-term freight rates.
11 Market update Directors’ ReportA.P. Moller - Maersk Interim Report Q3 | 2 November 2021
Ocean
Profitability for Q3 increased substantially, mainly due to
an increase in revenue from significantly higher freight
rates. Business was still considerably impacted by conges-
tion and network disruptions, which continue to put pres-
sure on global supply chains and resulting in higher oper-
ational costs. Additional capacity of 2.3% was added in
Q3 versus previous quarter to support the contract cus-
tomer demand. As a result, the contract customer volumes
grew but despite the investment in additional capacity, the
total loaded volume was 2.3% below previous quarter and
0.6% below last year due to severe congestions. Average
loaded rates increased mainly due to the renewal of long-
term contracts and from the significant increases in short-
term freight rates. Unit cost at fixed bunker increased by
14% mainly driven by higher network costs and container
handling costs. Utilisation remained strong at 95.1% and
while schedule reliability is still the best in the industry,
it remains challenged by various congestions such as in
the ports of Ningbo, China, in Los Angeles and the inland
bottle necks particularly in the USA.
Financial and operational performance
Revenue increased to USD 13.1bn (USD 7.1bn) impacted by an
increase in freight revenue of USD 5.4bn due to 87% higher
freight rates, partly offset by a volume decrease of 0.6%.
Other revenue increased by 55% to USD 1.5bn (USD 981m).
Loaded volumes decreased by 0.6% to 3,263k FFE (3,283k
FFE), mainly from East-West trades and partially offset
by the increase in Intra trades. Decreasing volumes were
driven by exports out of Asia due to shortage of equipment
and congestions while the increase of Intra trade is driven
by the America and Europe regions. Despite the effort to
deploy additional capacity, volumes were down 4% com-
pared to Q3 2019.
The average loaded freight rate increased by 1,652 USD/
FFE to 3,561 USD/FFE (1,909 USD/FFE), driven by long-term
contracts renewing at significantly higher rates as well as
short-term rates, driven by strong demand combined with
bottlenecks and congestions driving rate increases.
EBITDA improved by USD 4.4bn to USD 6.3bn (USD 1.8bn),
driven by the increase in freight revenue partly offset by
Ocean highlights
USD million Q Q M M 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)
12 Ocean Directors’ ReportA.P. Moller - Maersk Interim Report Q3 | 2 November 2021
higher bunker costs, network costs and container handling
costs. The EBITDA margin increased by 22.3 percentage
points to 47.7% (25.4%).
EBIT improved by USD 4.4bn to USD 5.3bn (USD 968m),
mainly driven by higher freight revenue. The EBIT margin
increased by 27.2 percentage points to 40.8% (13.6%).
Total operating costs were 28% higher at USD 6.8bn (USD
5.3bn), driven by higher network costs due to an increase
in bunker costs, time charter equivalent, and higher con-
tainer handling costs as a result of bottlenecks in the sup-
ply chains due to port congestions. Adjusting for the neg-
ative impact of foreign exchange rates, operating costs
increased by 27%.
Bunker costs increased by USD 659m to 1.4bn (USD 759m),
with an increase in average bunker price of 74% to 504 USD/
tonne (290 USD/tonne), driven by strong recovery of global
bunker prices following collapse during initial COVID-19
outbreak in 2020. Bunker consumption increased by 7.4%,
driven by an increase in deployed capacity and an increase
in average network speed in response to low schedule reli-
ability. Bunker efficiency decreased by 2.4% to 40.75 g/
TEU*NM (39.79 g/TEU*NM).
Unit cost at fixed bunker increased by 14% to 2,136 USD/
FFE (1,868 USD/FFE), driven by higher network costs due
to higher bunker consumption, higher container handling
costs and an increased inflationary pressure on time char-
ter equivalent cost and foreign feeders. This was partly
offset by lower container costs. Adjusting for the negative
impact of foreign exchange rates, unit cost at fixed bunker
increased by 13%.
The average nominal capacity of 4,210k TEU increased by
4.4%. There are nine carbon-neutral vessels in the new-
building programme end of Q3, and the fleet consisted
of 308 owned and 428 chartered vessels, of which 74k
TEU or 1.7% of the fleet were idle (16 vessels), mainly due
to repairs.
Key initiatives in Q3
The focus in Q3 continued to be helping customers and to
offer contract customers additional flexibility and space to
help with volatility in their supply chains. As a result of the
emphasis on customer stability and resilience, long-term
volumes increased more than 350k FFE or 24% compared
to Q3 2020, as well as more than 1.4m FFE signed at multi-
year contracts during 2021.
Twill, the end-to-end digital product designed for small
customers without in-house logistic capabilities, continues
to gain momentum and has crossed an average of 4,961 FFE
per week by end of Q3 2021, up from an average of 1,289 FFE
per week same period last year.
In Q3 2021, Maersk Spot has reached a 39% conversion
across all brands (vs. 35% in Q2 2021 and 33% in Q3 2020).
It remains a critical product for freight forwarder customers,
and Ocean will continue to expand scope across brands
and keep adding features to attract more customers.
Decarbonisation is a core element of the strategy
and a strong focus amongst customers. During Q3, two
shipbuilding contracts were announced, one for the first
container feeder vessel fuelled by carbon-neutral meth-
anol and one for eight 16k TEU container vessels to offer
customers truly carbon-neutral transportation at scale
on ocean trades. To source green fuels for these vessels,
A.P. Moller - Maersk is looking at partnerships to scale
the production and distribution of sustainable fuels. As
an example of these partnerships, during Q3, an agree-
ment was signed with REIntegrate/European Energy to
source e-methanol made from solar energy and biogenic
CO. Another initiative has been to invest in companies with
decarbonisation purpose via Maersk Growth, the corpo-
rate venture arm of A.P. Moller - Maersk. Maersk Growth
has invested in WasteFuel, a start-up focused on turning
waste into sustainable aviation fuel, green bio-methanol,
and renewable natural gas, and in Prometeus Fuels, a com-
pany which is developing a technology to produce carbon-
based electro fuels from direct air capture of CO.
Financial review 9M 2021
Revenue increased by 61% to USD 33.6bn (USD 20.9bn),
driven by increase in loaded freight rates of 60% and
6.4% higher volumes. Other revenue increased by 29% to
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 Q3 2021
Q Q
TEU
Own container vessels
Chartered container vessels
Total fleet
Number of vessels
Own container vessels
Chartered container vessels
Total fleet
13 Ocean Directors’ ReportA.P. Moller - Maersk Interim Report Q3 | 2 November 2021
USD 4.1bn (USD 3.2). EBITDA margin increased by 21.2 per-
centage points to 41.9% at USD 14.1bn (USD 4.3bn) and the
EBIT margin increased by 25.6 percentage points to 34.5%
at USD 11.6bn (USD 1.9bn).
Total operating costs increased by 15% to USD 19.4bn
(16.8bn), driven by increased container handling costs
of 20%, increased bunker costs of 30% and higher net-
work costs excl. bunker of 8.8%. Adjusting for the neg-
ative impact of foreign exchange rates, operating costs
increased by 14%.
Logistics & Services
The financial results improved significantly, driven by both
strong revenue growth and margin improvements in Q3.
The revenue growth of 38% was driven by all product fam-
ilies, with an increase in Managed by Maersk of 48% to
USD 433m (USD 292m), an increase in Fulfilled by Maersk of
40% to USD 606m (USD 434m), and an increase in Trans-
ported by Maersk of 34% to USD 1.6bn (USD 1.2m). Provid-
ing more services to top 200 Ocean customers has driven
an increase in revenue of 44% from USD 747m to USD 1.1bn.
Similar to revenue growth, EBITA margin improved across
all product families.
The integration of the acquisitions in 2020 is progressing
according to plan. While the offerings continued being
strengthened across products and services, the acquisitions
of Visible Supply Chain Management and B2C Europe in the
e-Commerce logistics area will allow Maersk to respond to
growing customer needs within business-to-consumer ful-
filment and delivery.
Financial and operational performance
Logistics & Services has improved its ability to deliver end-
to-end solutions across all services, resulting in a revenue
increase of 38% to USD 2.6bn (USD 1.9bn). Continuous oper-
ational improvements, a focus on sales pipeline execution,
Organic/inorganic
Q-A Organic Inorganic Q-A
Revenue
% %
EBITA -
Logistics & Services highlights
USD million Q Q M M 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 % % % % %
Earnings before interest taxes and amortisation (EBITA)
EBITA 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)
14 Ocean | Logistics & Services Directors’ ReportA.P. Moller - Maersk Interim Report Q3 | 2 November 2021
and providing more services to existing Ocean customers
was critical in driving the results.
Organic revenue contributed by 33% of the 38% increase in
revenue to USD 2.6bn (USD 1.9bn). The increase in organic
EBITA was USD 104m. As of September 2021, KGH Customs
Services was included in the organic growth figures after
being consolidated on 1 September 2020. KGH Customs
Services and Visible Supply Chain Management contributed
with a revenue of USD 98m and an EBITA of USD 7m before
transaction costs of USD 10m.
For the Managed by Maersk services, revenue increased by
48% to USD 433m (USD 292m), driven by an 18% increase
in volumes in Lead Logistics to 28,729 kcbm (24,412 kcbm).
The increase in volume reflects the effect of a low base in
Q3 2020 due to COVID-19, as well as changing consumer
patterns in Q3 2021 as customers in North America increas-
ingly demanded retail goods, in addition to also winning
new business. Further, Customs Services volumes were up
by 645k declarations to 1,254k declarations (609k declara-
tions). The organic growth was 66% with 403k declarations,
and inorganically, KGH Customs Services growth was 40%
with 242k declarations.
For the Fulfilled by Maersk services, revenue was up by
40% to USD 606m (USD 434m), driven by new activities in
Contract Logistics and the turnaround of existing facilities
in North America, combined with growing volumes from
increasing supply chain needs from customers and a grow-
ing footprint from the integration of Performance Team.
Maersk continues to increase the footprint through open-
ing 22 new warehouses with a total of 255k SQM in Q3
2021. Revenue from Fulfilled by Maersk was also positively
impacted by the new acquisition of Visible Supply Chain
Management.
For the Transported by Maersk services, revenue was up by
34% to USD 1.6bn (USD 1.2bn), driven by an increase in Land-
side Transportation Intermodal volumes of 37% to 1,254k
FFE (914k FFE), mainly due to a higher penetration ratio
into existing Ocean customers. Further, revenue growth was
driven by increased air freight carrier volumes of 40% to
47.7k tonne (34.2k tonne) primarily coming from Asia Pacific
into North America. Sea freight volumes were reduced
as a result of discontinuing the Damco brand.
Gross profit increased by USD 173m to USD 641m (USD
468m), driven by an increase in volumes in Lead Logistics
and in the number of declarations handled in Customs
Services under Managed by Maersk, increased profitabil-
ity in Contract Logistics facilities in North America under
Fulfilled by Maersk, as well as growth and higher margins
in Landside Transportation under Transported by Maersk.
EBITDA increased by USD 136m to USD 267m (USD 131m)
due to the higher revenue and the focus on operational
excellence with an EBITDA margin of 10.3% (6.9%). EBITA
increased to USD 209m (USD 108m), with an EBITA margin
of 8.0% (5.7%). EBIT increased to USD 194m (USD 100m)
and the EBIT margin increased to 7.5% (5.3%) while the
EBIT conversion ratio was 30.3% (21.3%).
Key initiatives in Q3
The focus in Q3 was still to help customers and to offer
contract customers additional flexibility and space to help
with volatility in their supply chains.
In Fulfilled by Maersk, acquisitions of Visible, B2C and
HUUB within the e-Commerce space provide Maersk last
mile capabilities, making it easier for customers to focus
on their core business of producing and selling goods and
swiftly bringing them to the end-consumers, through a
digital solution. HUUB is a Portuguese cloud-based logistics
start-up specialising in technology solutions for B2C ware-
housing. Further, a new dedicated pharmaceutical facility
in Poland (Mszczonow) was started up.
In Transported by Maersk, A.P. Moller - Maersk continues to
increase the Air footprint and capability through acquiring
Senator International. Further to that, existing capacity in the
air fleet was expanded by the leasing of three additional
B767 in 2022 and the purchase of two new B777 airplanes
by 2024. Star Air was established in 1987 and currently
has a fleet of 15 aircraft mainly operating in Europe.
Financial review 9M 2021
Revenue of USD 6.8bn (USD 4.9bn) was driven by increasing
revenue in Managed by Maersk services to USD 1.1bn (USD
713m), Fulfilled by Maersk services to USD 1.5m (USD 972m)
and Transported by Maersk services to USD 4.2bn (USD
3.2bn). This in turn was driven by an increase in volumes
in Landside Transportation Intermodal of 33% to 3,373k
FFE (2,545k FFE), mainly due to a higher penetration ratio
into existing Ocean customers. Further, volumes in Lead
Logistics increased by 28% to 70,109 kcbm (54,775 kcbm),
driven by COVID-19 bounce back, changing customer pat-
terns and new business wins.
EBITDA increased to USD 688m (USD 296m) and EBITA to
USD 523m (USD 186m).
In addition to strong organic development, Performance
Team, KGH Customs Services and newly acquired Visible
Supply Chain Management contributed to the revenue
growth. Inorganic revenue accounted for USD 309m.
Organic/inorganic
M-A Organic Inorganic M-A
Revenue
% %
EBITA
15 Logistics & Services Directors’ ReportA.P. Moller - Maersk Interim Report Q3 | 2 November 2021
Terminals & Towage
Terminals & Towage reported an increase in reve-
nue of USD 229m to USD 1.2bn (USD 976m), with an
increase in EBITDA of USD 105m to USD 433m (USD
328m) and an increase in EBIT of USD 116m to USD
352m (USD 236m).
In gateway terminals, revenue increased to USD 1.0bn
(USD 816m), due to continued global economic recovery,
significantly above market growth in North America,
Latin America, Europe and Asia and an underlying
performance improvement across most terminals in
the Americas. In addition, the continued bottlenecks
in the supply chain in the USA and growth in general
cargo and yard services in Latin America, significantly
contributed to the increase in EBITDA to USD 379m
(USD 274m) and in EBIT to USD 324m (USD 206m).
In Towage, revenue increased to USD 185m (USD 167m),
while EBITDA was on par at USD 54m. EBIT decreased
to USD 28m (USD 30m).
Terminals
Financial and operational performance
Revenue increased to USD 1.0bn (USD 816m), mainly
driven by high global demand, above market growth, and
increased storage income due to the continued congestion
and bottlenecks along all modes of freight transportation
in North America. Numerous measures have been taken to
address the North American congestion, including increas-
ing gate opening hours to 19 hours a day during the week in
Los Angeles and adding a Saturday shift as well. As a result,
the number of gate appointments available have increased
to 2,000/day on weekdays, with approximately 1,300 cur-
rently used, giving customers more flexibility to pick up
containers at their convenience.
Overall favourable economic conditions and well above mar-
ket growth in gateway terminals led volumes to increase
by 9.6% and utilisation to 78% (71%), mainly driven by North
America, Latin America and Asia. Volume from the Ocean
segment increased by 12% and volume from external cus-
tomers increased by 8.4%.
Congestion-driven storage revenue continues in North
America and higher general cargo movement in Latin America
resulted in an increase of 13% in gateway revenue per move
to USD 314 (USD 277). Despite operations continuing to be
Terminals & Towage highlights
USD million Q Q M M 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 ’)
16 Terminals & Towage Directors’ ReportA.P. Moller - Maersk Interim Report Q3 | 2 November 2021
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.
affected by COVID-19-related delays, the upward shift in
gateway cost is mainly related to higher volume in high cost
locations and inflationary labour increases with cost per
move up 4.1% to USD 238 (USD 229).
Adjusted for foreign exchange rates, and volume mix
effects, revenue per move increased by 19%, and cost per
move increased by 9.0%.
The increase in volume and higher storage income, partly
offset by higher variable cost, resulted in an EBITDA of USD
379m (USD 274m) and an EBITDA margin of 36.9% (33.6%).
Further, this also drove an increase in EBIT to USD 324m (USD
206m) with higher results from joint ventures and associated
companies, partially offset by higher depreciation mainly
due to modernisation of yard equipment in Los Angeles, USA.
CAPEX decreased to USD 59m (USD 88m) due to COVID-19
delays with some CAPEX projects moving from the planning
to execution stage later than otherwise planned.
In North America, high consumer spend drove volume up
13% while increased storage income from supply chain con-
gestion continued. As a result of measures taken to ease
the congestion, US terminals experienced higher variable
costs, partially offsetting the higher revenue, leading to an
increase in the EBITDA margin to 37% (27%).
In Latin America, there was an underlying improvement in
most terminals with revenue per move increasing across the
region, supported by higher general cargo volume, and higher
transhipment storage income in Callao, Peru. Overall volume
grew 14%, and the EBITDA-margin improved to 48% (38%).
In Asia, volumes grew by 19%, mainly driven by additional
volumes in two new berths in Yokohama, Japan, and higher
volume in Mumbai, India. The EBITDA margin decreased by
11 percentage points to 30% (41%) due to growth in lower
margin business and higher cost related to cyclones.
In Europe, revenue increased as a result of a 9.9% higher
volume and congestion related storage income, offset by
higher cost per move, leading to a decrease in EBITDA mar-
gin to 29% (33%).
Adverse pandemic-related market conditions in Africa
and Middle East resulted in a decrease in volume of 9.2%
driven by Aqaba, Jordan, and Bahrain. In addition, nega-
tive exchange rate movements contributed significantly
to a reduction in the overall revenue per move, more
than offsetting improvements in the rest of the region.
As a result, Africa and Middle East saw a drop in EBITDA
margin to 32% (40%).
Results from joint ventures and
associated companies
The share of profit in joint ventures and associated com-
panies increased to USD 77m (USD 64m), mainly driven
by higher results in South Florida, USA, Tema, Ghana, and
Abidjan, Côte d’Ivoire.
Key initiatives in Q3
Regulatory approvals have now been obtained for the
50-year concession to build, maintain and operate a con-
tainer terminal in Rijeka, Croatia, in partnership with ENNA
Logic and the concession agreement is expected to be
signed during Q4 2021.
In APM Terminals Poti, Georgia, the preparation works on
site have started and in Onne, Nigeria, in parallel with the
civil upgrades, additional container handling equipment
has been received and is being put to operation.
Terminals has finalised an agreement with Hapag-Lloyd,
who will purchase Terminals’ 30% shareholding of Container
Terminal Wilhelmshaven (CTW), Germany. The transaction
is subject to approval by the antitrust authorities.
Towage
Financial and operational performance
Revenue increased by USD 18m to USD 185m (USD 167m), and
adjusted for foreign exchange rate development, the increase
was 4.8% or USD 8m. Harbour towage revenue was positively
impacted by strong grain exports and increased RoRo activi-
ties in Australia and ramp-up activities in Morocco, partly off-
set by slower markets in Europe. Terminal towage revenue
increased due to new charters in Angola, the UK and Belgium.
EBITDA was on par at USD 54m, mainly due to positive ex -
change rate development partly offset by the wind down of
business in Whyalla, Australia. EBIT decreased by USD 2m
to USD 28m (USD 30m), mainly driven by depreciation and
lower result in joint ventures and associated companies.
For terminal towage, the annualised EBITDA per Tug
increased by 10% due to lower costs in Americas as well
17 Terminals & Towage Directors’ ReportA.P. Moller - Maersk Interim Report Q3 | 2 November 2021
as favourable rate of exchange impact. This was partly off-
set by higher costs in Australia related to increased docking
activity triggering additional crew costs.
Results from joint ventures and
associated companies
The share of profit in joint ventures and associated com-
panies decreased to USD 5m (USD 6m) with decreases
driven by wind down of business in Bowen, an Australian
joint venture.
Key initiatives in Q3
During Q3, Svitzer secured a 5-year extension contract in
Angola, a 5-year contract in Port of Bunbury in Western
Australia as well as a long-term contract to provide towage
services for Australia’s naval fleet across the country. Two
additional tugs were also added to the current agreement
with SCA (Suez Canal, Egypt).
Terminals & Towage
Financial review 9M 2021
Terminals & Towage reported an increase in revenue of
USD 677m to USD 3.4bn (USD 2.8bn), with an increase in
EBITDA of USD 395m to USD 1.2bn (USD 841m) and an
increase in EBIT of USD 325m to USD 958m (USD 633m).
In gateway terminals, revenue was USD 2.9bn (USD 2.3bn),
with an increase of 14% in volume mainly driven by global
economic development and higher storage income mainly
from congestion in North America. Capacity utilisation
increased to 76% (69%). Revenue per move increased to
USD 304 (USD 274) and cost per move decreased to USD
236 (USD 237). EBITDA increased to USD 1.1bn (USD 672m)
and EBIT increased to USD 866m (USD 512m).
In Towage, revenue was USD 550m (USD 505m), positively
impacted by foreign exchange rate development as well as
volume increases in Australia and Asia, Middle East & Africa,
partly offset by lower volumes in Americas, particularly in
Brazil, and Europe, in Scandinavia and the UK.
EBITDA was slightly lower at USD 165m (USD 168m), driven
by higher costs and impact from the wind down of busi-
ness in Whyalla, Australia, partly offset by foreign exchange
rate development. EBIT decreased by 23% to USD 93m (USD
121m) driven by the significant gain in Q2 2020 resulting
from the acquisition of Port Towage Amsterdam.
Manufacturing & Others
Revenue was USD 305m (USD 324m) with an EBITDA of
USD 27m (USD 48m) and an EBIT of USD 7m (USD 20m).
For Maersk Container Industry, revenue decreased by USD
19m to USD 134m (USD 153m), mainly driven by change in
periodisation of volumes. EBITDA decreased by USD 8m
to USD 9m (USD 17m) as a consequence of this and from
the impact of higher raw material prices. EBIT decreased
by USD 7m to USD 9m (USD 16m) in line with the decrease
in EBITDA.
As communicated at the A.P. Moller - Maersk Capital
Markets Day in March, a strategic review of Maersk Con-
tainer Industry was initiated during Q2 2021, resulting in
the sale agreement signed with China International Marine
Containers Ltd. (CIMC) with closing subject to regulatory
approvals.
For Maersk Supply Service, revenue increased by USD 18m
to USD 83m (USD 65m) reflecting increased activity due to
the improved market conditions as Q3 2020 was impacted
by COVID-19. EBITDA decreased by USD 6m to USD 7m (USD
13m), mainly driven by postponement of repair and main-
tenance and lower cost in Q3 2020. EBIT decreased by USD
6m to negative USD 4m (positive USD 2m).
In Q3, Maersk Supply Service made significant commercial
progress, by securing the first contract within wave power,
a study contract in floating wind and three important con-
tracts in Africa.
Manufacturing & Others highlights
USD million Q Q M M 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)
18 Terminals & Towage | Manufacturing & Others Directors’ ReportA.P. Moller - Maersk Interim Report Q3 | 2 November 2021
For other businesses, revenue was USD 88m (USD 106m)
with an EBITDA of USD 11m (USD 18m) and EBIT of USD 2m
(USD 3m).
Financial review 9M 2021
Revenue was USD 991m (USD 935m) with an EBITDA of
USD 100m (USD 140m).
Revenue in Maersk Container Industry was USD 512m (USD
431m) of which 77% was related to third-party customers.
EBITDA was on par at USD 55m (USD 59m).
Maersk Supply Service reported a revenue of USD 212m
(USD 191m) and an EBITDA of USD 7m (USD 24m). The
impact of the reduction in Maersk Supply Service onshore
organisation in 2020 was offset by higher crew cost and
project cost and the return to a normalised repair and
maintenance cost level.
For other businesses, revenue was USD 267m (USD 313m)
and EBITDA was USD 38m (USD 57m).
19 Manufacturing & Others Directors’ ReportA.P. Moller - Maersk Interim Report Q3 | 2 November 2021
Statement of the Board of Directors
and the Executive Board
Executive Board
Board of Directors
20
Statement of the Board of Directors and the Executive Board Directors’ ReportA.P. Moller - Maersk Interim Report Q3 | 2 November 2021
Financials
Condensed income statement
Note Q Q months months M
Revenue 16,612 9,917 43,281 28,485 39,740
Profit before depreciation amortisation and impairment losses etc (EBITDA) 6,943 2,297 16,046 5,515 8,226
Depreciation amortisation and impairment losses net 1,206 1,097 3,318 3,319 4,541
Gain on sale of non-current assets etc net 27 8 46 172 202
Share of profit/loss in joint ventures and associated companies 95 81 266 224 299
Profit/loss before financial items (EBIT) 5,859 1,289 13,040 2,592 4,186
Financial items net -185 -160 -601 -607 -879
Profit/loss before tax 5,674 1,129 12,439 1,985 3,307
Tax 213 182 515 386 407
Profit/loss for the period 5,461 947 11,924 1,599 2,900
Of which:
Non-controlling interests 23 20 76 48 50
AP Møller - MærskA/S’ share 5,438 927 11,848 1,551 2,850
Earnings per share USD 287 48 620 79 145
Diluted earnings per share USD 287 48 619 79 145
Condensed statement of comprehensive income
Note Q Q months months M
Profit/loss for the period 5,461 947 11,924 1,599 2,900
Translation from functional currency to presentation currency -189 100 -295 -122 195
Reclassified to income statement gain on sale of non-current assets etc net - -2 23 62 64
Cash flow hedges -49 72 -118 -60 43
Tax on other comprehensive income 2 -7 -5 18 10
Share of other comprehensive income of joint ventures and associated companies
net of tax - 2 -9 6 5
Total items that have been ormay be reclassified subsequently to the income
statement -236 165 -404 -96 317
Other equity investments 25 - 27 3 2
Actuarial gains/losses on defined benefit plans etc - - -69 70 -207
Tax on other comprehensive income - - 13 - -4
Total items that will not be reclassified to the income statement 25 - -29 73 -209
Other comprehensive income net of tax -211 165 -433 -23 108
Total comprehensive income for the period 5,250 1,112 11,491 1,576 3,008
Of which:
Non-controlling interests 23 25 73 34 47
AP Møller - MærskA/S’ share 5,227 1,087 11,418 1,542 2,961
21
Interim consolidated financial statements Q3 2021 Financials
A.P. Moller - Maersk Interim Report Q3 | 2 November 2021
Amounts in USD million
Condensed balance sheet at 30September
Note September September M
Intangible assets 5,709 5,317 5,145
Property plant and equipment 26,377 26,285 26,481
Right-of-use assets 9,681 8,541 8,323
Financial non-current assets etc 2,857 3,502 3,183
Deferred tax 265 228 249
Total non-current assets 44,889 43,873 43,381
Inventories 1,470 1,037 1,049
Receivables etc 7,275 5,252 5,603
Securities 1 1 1
Cash and bank balances 11,306 5,854 5,865
Assets held for sale 453 145 218
Total current assets 20,505 12,289 12,736
Total assets 65,394 56,162 56,117
Note September September M
Equity attributable to AP Møller - MærskA/S 38,727 28,515 29,850
Non-controlling interests 1,044 1,032 1,004
Total equity 39,771 29,547 30,854
Lease liabilities non-current 7,945 7,427 7,356
Borrowings non-current 4,537 7,384 5,868
Other non-current liabilities 1,993 2,162 1,985
Total non-current liabilities 14,475 16,973 15,209
Lease liabilities current 2,147 1,340 1,391
Borrowings current 397 758 758
Other current liabilities 8,370 7,463 7,814
Liabilities associated with assets held for sale 234 81 91
Total current liabilities 11,148 9,642 10,054
Total liabilities 25,623 26,615 25,263
Total equity and liabilities 65,394 56,162 56,117
22
Amounts in USD million
Interim consolidated financial statements Q3 2021 Financials
A.P. Moller - Maersk Interim Report Q3 | 2 November 2021
Condensed cash flow statement
Note Q Q months months M
Profit/loss before financial items 5,859 1,289 13,040 2,592 4,186
Non-cash items etc 1,208 1,128 3,166 3,187 4,305
Change in working capital -366 -108 -1,711 -212 -239
Cash flow from operating activities before tax 6,701 2,309 14,495 5,567 8,252
Taxes paid -129 -133 -353 -308 -424
Cash flow from operating activities 6,572 2,176 14,142 5,259 7,828
Purchase of intangible assets and property plant and equipment (CAPEX) -610 -280 -1,391 -952 -1,322
Sale of intangible assets and property plant and equipment 21 86 145 268 435
Sale of other equity investments 1 3 5 4 5
Acquisition of subsidiaries and activities -723 -182 -733 -448 -425
Sale of subsidiaries and activities 7 - -21 35 36
Dividends received 123 85 218 127 177
Financial investments etc net -445 289 -498 90 70
Cash flow used for investing activities -1,626 1 -2,275 -876 -1,024
Repayments of/proceeds from borrowings net -288 -810 -1,753 -298 -1,860
Repayments of lease liabilities -611 -397 -1,693 -1,135 -1,710
Financial payments net -83 -64 -179 -234 -292
Financial expenses paid on lease liabilities -114 -120 -342 -351 -468
Purchase of own shares -759 -98 -1,540 -696 -806
Dividends distributed - - -1,017 -430 -430
Dividends distributed to non-controlling interests -23 -37 -64 -72 -92
Other equity transactions 25 -13 58 -2 40
Cash flow from financing activities -1,853 -1,539 -6,530 -3,218 -5,618
Net cash flow for the period 3,093 638 5,337 1,165 1,186
Cash and cash equivalents beginning of period 8,071 5,206 5,845 4,758 4,758
Currency translation effect on cash and bank balances -18 -6 -36 -85 -80
Cash and cash equivalents end of period 11,146 5,838 11,146 5,838 5,864
Of which classified as assets held for sale -29 - -29 - -19
Cash and cash equivalents end of period 11,117 5,838 11,117 5,838 5,845
Cash and cash equivalents
Cash and bank balances 11,306 5,854 11,306 5,854 5,865
Overdrafts 189 16 189 16 20
Cash and cash equivalents end of period 11,117 5,838 11,117 5,838 5,845
Cash and bank balances include USD 1.4bn (USD 1.1bn) 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.
23
Amounts in USD million
Interim consolidated financial statements Q3 2021 Financials
A.P. Moller - Maersk Interim Report Q3 | 2 November 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
Other comprehensive income
net of tax - -268 28 -125 -65 -430 -3 -433
Profit/loss for the period - - - - 11,848 11,848 76 11,924
Total comprehensive income
for the period - -268 28 -125 11,783 11,418 73 11,491
Dividends to shareholders - - - - -1,017 -1,017 -75 -1,092
Value of share-based payment - - - - 12 12 - 12
Addition of non-controlling in-
terests - - - - -17 -17 16 -1
Sale of non-controlling interests - - - - 1 1 - 1
Purchase of own shares - - - - -1,540 -1,540 - -1,540
Sale of own shares - - - - 20 20 - 20
Capital increases and decreases -119 - - - 119 - 26 26
Transfer of gain/loss on disposal
of equity investments to retained
earnings - - -2 - 2 - - -
Total transactions with
shareholders -119 - -2 - -2,420 -2,541 -33 -2,574
Equity September 3,513 -700 20 -167 36,061 38,727 1,044 39,771
Equity January 3,774 -692 -4 -97 25,117 28,098 739 28,837
-
Other comprehensive income
net of tax - -48 4 -39 74 -9 -14 -23
Profit/loss for the period - - - - 1,551 1,551 48 1,599
Total comprehensive income
for the period - -48 4 -39 1,625 1,542 34 1,576
Dividends to shareholders - - - - -430 -430 -74 -504
Value of share-based payment - - - - 8 8 - 8
Acquisition of non-controlling
interests - - - - -8 -8 329 321
Sale of non-controlling interests - - - - - - - -
Purchase of own shares - - - - -696 -696 - -696
Sale of own shares - - - - 1 1 - 1
Capital increases and decreases -142 - - - 142 - 4 4
Transfer of gain/loss on disposal
of equity investments to retained
earnings - - -4 - 4 - - -
Total transactions with
shareholders -142 - -4 - -979 -1,125 259 -866
Equity September 3,632 -740 -4 -136 25,763 28,515 1,032 29,547
24
Amounts in USD million
Interim consolidated financial statements Q3 2021 Financials
A.P. Moller - Maersk Interim Report Q3 | 2 November 2021
Note 1 Segment information
Ocean Logistics
& Services
Terminals
& Towage
Manu-
facturing
& Others
Total
Q3 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
Unallocated items -
Eliminations -
Consolidated invested capital
Segment gross capital expenditures excl acquisitions and divestments (CAPEX)
Unallocated items
Eliminations -
Consolidated gross capital expenditures excl acquisitions and divestments (CAPEX)
25
Amounts in USD million
Interim consolidated financial statements Q3 2021 Financials
A.P. Moller - Maersk Interim Report Q3 | 2 November 2021
Note 1 Segment information – continued
Ocean Logistics
& Services
Terminals
& Towage
Manu-
facturing
& Others
Total
Q3 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
Unallocated items
Eliminations -
Consolidated invested capital
Segment gross capital expenditures excl acquisitions and divestments (CAPEX)
Unallocated items
Eliminations -
Consolidated gross capital expenditures excl acquisitions and divestments (CAPEX)
26
Amounts in USD million
Interim consolidated financial statements Q3 2021 Financials
A.P. Moller - Maersk Interim Report Q3 | 2 November 2021
Note 1 Segment information – continued
Ocean Logistics
& Services
Terminals
& Towage
Manu-
facturing
& Others
Total
9 months 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
Unallocated items -
Eliminations -
Consolidated invested capital
Segment gross capital expenditures excl acquisitions and divestments (CAPEX)
Unallocated items
Eliminations -
Consolidated gross capital expenditures excl acquisitions and divestments (CAPEX)
27
Amounts in USD million
Interim consolidated financial statements Q3 2021 Financials
A.P. Moller - Maersk Interim Report Q3 | 2 November 2021
Note 1 Segment information – continued
Ocean Logistics
& Services
Terminals
& Towage
Manu-
facturing
& Others
Total
9 months 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
Unallocated items
Eliminations -
Consolidated invested capital
Segment gross capital expenditures excl acquisitions and divestments (CAPEX)
Unallocated items
Eliminations -
Consolidated gross capital expenditures excl acquisitions and divestments (CAPEX)
USD million Types of revenue Q Q months months 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.
28
Amounts in USD million
Interim consolidated financial statements Q3 2021 Financials
A.P. Moller - Maersk Interim Report Q3 | 2 November 2021
Note 2 Share capital
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 - - - - -
September
January
Cancellation
Conversion - - - - - -
September
All shares are fully issued and paid up.
One A share of DKK 1,000 holds two votes. B shares have no voting rights.
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 would be decreased. On 20 May 2021, the Company’s share capital was reduced from nominally DKK 20,031,947,000 with 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 % %
Cancellation % %
September % %
B shares
January % %
Addition % %
Cancellation % %
Disposal % %
September % %
Disposals of own shares are related to the share option plans and the restricted shares plan.
Basis for calculating earnings per share is the following:
The dividend of DKK 330 per share of DKK 1000 – a total of DKK 6,610m is equivalent to USD 1,017m excluding own shares. Of this, USD 889m was paid to shareholders on
26 March 2021, and the withholding tax of USD 128m was been paid in Q2 2021. Payment of dividends to shareholders does not trigger taxes to A.P. Moller - Maersk.
From 1 January 2021 to 30 September 2021, A.P. Moller - Maersk has bought back 58,631 A shares, with a nominal value of DKK 59m and 177,886 B shares, with a nominal
value of DKK 178m as treasure shares, from A.P. Møller Holding A/S, which is considered a related party.
29
Amounts in USD million
Interim consolidated financial statements Q3 2021 Financials
A.P. Moller - Maersk Interim Report Q3 | 2 November 2021
Acquisitions during the first nine months 2021
Visible Supply Chain Management, North America
On 2 August 2021, the Group acquired 100% of
the shares in Visible Supply Chain Management,
an e-commerce logistics provider based in North
America focusing on e-fulfilment, parcel delivery
services and freight management. Visible Supply
Chain Management will contribute with strong
e-commerce capabilities and further strengthen
the business-to-consumer part of the business.
The total purchase price is USD 803m, including a
contingent consideration valued at USD 63m. Of the
provisional purchase price allocation approximately
USD 550m is related to goodwill and approximately
USD 190m to intangible assets, including software
and technology.
Goodwill is mainly attributable to expected future
synergies from leveraging the acquired technology
software, network optimisations and improved pro-
ductivity.
From the acquisition date to 30 September 2021,
Visible Supply Chain Management contributed with
a revenue of USD 76m and an insignificant net profit.
Had the acquisition occurred on 1 January 2021, the
impact on the Group’s revenue would have been
USD 376m. The net profit impact to the Group would
have been insignificant.
Acquisition-related costs of USD 10m are recognised
as operating costs in the income statement and in
operating cash flow in the statement of cash flow.
The accounting for the business combination is con-
sidered provisional at 30 September 2021.
HUUB, Portugal
On 1 September 2021, the Group acquired 100% of
the shares in HUUB, a Portuguese cloud-based logis-
tics start-up specialised in technology solutions for
B2C warehousing for the fashion industry. HUUB will
contribute to strengthening Maersk’s technology
capabilities, bringing the best attributes of a modern
entrepreneurial agile workplace. The acquisition is
accounted for as an asset deal.
The total acquisition price is USD 9m, and is subject
to adjustment based on future performance.
Acquisitions after 30 September 2021
B2C Europe, Europe
On 1 October 2021, the Group acquired 100% of the
shares in B2C Europe, an e-commerce logistics provider
based in Europe, specialising in cross-border parcel
delivery services. B2C Europe will contribute with
strong e-commerce capabilities and further strengthen
the business-to-consumer part of our business.
The total acquisitions price is USD 86m.
Senator International, Germany
After the balance sheet date, the Group acquired
100% of the shares in Senator International, a
well-renowned German air-based freight carrier
company. Senator International will contribute with
offerings within air freight out of Europe into the
USA and Asia, and thereby add strong capabilities
and geographical reach to our integrator vision.
The acquisition is expected to be finalised during
Q1 2022.
Note 3 Acquisition of subsidiaries
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, notes 23 and 24, to which refer-
ence 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.
See table below for the product specifications.
Change in segment measure of profit or loss
The segment measure of profit has been changed
from EBITDA to EBIT, as EBIT is regularly reviewed
by management when making decisions about re-
source allocations.
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 108m in
Q3 2021. The effect for 9M was USD 320m.
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 4 Accounting policies, judgements and significant estimates
Logistics & Services product specifications
The product families and the strategic rationale behind the changes made to the categories as of 2021 are described below.
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 consolidation
and storage down to order level. Whether e-commerce or cold
storage, Logistics & Services solutions 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.
30
Amounts in USD million
Interim consolidated financial statements Q3 2021 Financials
A.P. Moller - Maersk Interim Report Q3 | 2 November 2021
Additional information
Quarterly summary
Income statement 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
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 % % % % % % %
Underlying EBITDA
Underlying EBITDA margin % % % % % % %
Underlying EBIT
Underlying EBIT margin % % % % % % %
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 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.
31
Amounts in USD million
Quarterly summary Additional informationA.P. Moller - Maersk Interim Report Q3 | 2 November 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.
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.
Invested capital
Segment assets less liabilities.
kcbm
The freight volume of the shipment
for domestic and international freight.
Cubic metre (CBM) measurement is cal-
culated by multi plying the width, height
and length together of the shipment.
Loaded volumes
Loaded volumes refer to the number of
FFEs loaded on a shipment which are
loaded on first load at vessel departure
time excluding displaced FFEs.
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.
RoRo
Roll-on, Roll-off, which describes how
products are loaded and discharged
from a vessel.
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-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.
32 Definition of terms Additional informationA.P. Moller - Maersk Interim Report Q3 | 2 November 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
Amparo Moraleda
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
Amparo Moraleda
33 ColophonA.P. Moller - Maersk Interim Report Q3 | 2 November 2021