Contacts for further information
Søren Skou,
CEO
Tel. +45 3363 1901
Patrick Jany,
CFO
Tel. +45 3363 3106
Investors
Sarah Spray,
Head of Investor Relations
Tel. +45 3363 3106
Media
Signe Wagner,
Head of External Relations
Tel. +45 3363 1901
Webcast and dial-in information
A webcast relating to the Q2 2022
Interim Report will be held on
3 August 2022 at 11.00 (CET). Dial-in
information on investor.maersk.com.
Presentation material for the web-
cast will be available on the same
page.
The Interim Report for Q2 2022 of
referred to as A.P. Moller - Maersk
as the consolidated group of com-
panies) has been prepared in accord-
ance with IAS 34 ‘Interim Financial
Reporting’ as issued by the Interna-
tional Accounting Standards Board
(IASB) and adopted by the EU and
additional Danish disclosure require-
ments 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 corre-
sponding figures for the same period
prior year.
Forward-looking statements
The interim report contains
forward- looking statements. Such
statements are subject to risks and
uncertainties as numerous factors,
many of which are beyond the control
of A.P. Moller - Maersk, may cause
the actual development and results
to differ materially from expectations
contained in the interim report.
Financial calendar
2 November 2022
Interim Report Q3 2022
8 February 2023
Annual Report 2022
Management review
Highlights Q .........................................................................................................................
Summary financial information .................................................................................................
Review Q ................................................................................................................................
– Delivering strong financial results with clear customer focus ..............................
– Winding down in Russia ...........................................................................................................
– Status on acquisitions ...............................................................................................................
– ESG update .....................................................................................................................................
– Change in management ...........................................................................................................
– Delivering on the roadmap to ..................................................................................
Financial review Q .............................................................................................................
Financial review H .............................................................................................................
Guidance for ...........................................................................................................................
Market insights ...................................................................................................................................
Segments ..............................................................................................................................................
– Ocean ................................................................................................................................................
– Logistics & Services ....................................................................................................................
– Terminals .........................................................................................................................................
– Towage & Maritime Services..................................................................................................
Statement of the Board of Directors and the Executive Board ...................................
Financials
Condensed income statement ....................................................................................................
Condensed statement of comprehensive income .............................................................
Condensed balance sheet at June .....................................................................................
Condensed cash flow statement ...............................................................................................
Condensed statement of changes in equity .........................................................................
Notes .......................................................................................................................................................
Additional information
Quarterly summary ..........................................................................................................................
Definition of terms ...........................................................................................................................
Improving life for all by integrating the world
At A.P. Moller - Maersk we aspire to provide truly integrated logistics. Across oceans, ports, on land and in the
air, we are combining our supply chain infrastructure with the power of our people and technology to drive
end-to-end innovation that accelerates our customers’ success.
With a dedicated team of 100,000+ talents, operating in more than 130 countries, we explore new frontiers
and embrace new technologies because we see change as an opportunity. No matter the challenge, we stay
optimistic and resilient because our values are constant. By living our values, we inspire trust in our efforts
to integrate the world and improve life for all.
Contents
2
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022
Management review
A.P. Moller - Maersk continued to deliver record results in Q2 2022 as revenue increased by
52%, and both EBITDA and EBIT more than doubled compared to Q2 2021. Profit was USD
8.6bn (USD 3.7bn) for Q2 and USD 15.4bn (USD 6.5bn) for H1.
The company’s focus remains on assisting customers who continue to face exceptional con-
ditions with persisting landside congestion particularly in the United States and Europe. The
acquisitions of Pilot Freight Services and Senator International were completed in Q2, and
A.P. Moller - Maersk further strengthened its air freight offering by launching Maersk Air Cargo.
In Russia, A.P. Moller - Maersk continues the process of winding down operations with the
intent to ultimately leave the country.
Highlights Q2 2022
Revenue for Q2 increased by USD 7.4bn to USD 21.7bn (USD 14.2bn), mainly due to an increase in Ocean of USD 6.3bn, while
revenue increased by USD 1.3bn in Logistics & Services and by USD 155m in Terminals. EBITDA increased by USD 5.3bn to USD
10.3bn (USD 5.1bn) and EBIT increased by USD 4.9bn to USD 9.0bn (USD 4.1bn) with an increase in:
Ocean by USD 4.9bn to USD 8.5bn (USD 3.6bn), mainly driven by significantly higher freight rates as contract rates con-
tinued to be strong despite a progressive softening of short-term rates, slightly offset by a decrease in volumes and by
higher costs related to bunker, handling and network.
Logistics & Services to USD 234m (USD 153m), mainly due to higher volumes from new customer wins, increased spending
from existing customers and acquisitions.
Terminals to USD 316m (USD 302m), mainly due to higher storage income, partly offset by higher costs.
Free cash flow increased to USD 6.8bn (USD 3.2bn), due to strong cash flows from operating activities of USD 8.6bn (USD 4.1bn),
partly offset by CAPEX of USD 1.0bn (USD 452m) and higher capitalised lease instalments of USD 762m (USD 453m), mainly
related to vessels and aircraft.
Total distribution of cash to shareholders through share buy-backs was USD 553m in Q2 2022.
On the ESG agenda, A.P. Moller - Maersk’s terminal business reached an important milestone towards achieving net zero green-
house gas emissions in 2040 after having successfully transitioned eight of its European terminals to operating on renewable elec-
tricity. Maersk ECO Delivery, the low-carbon shipping product, was in demand with volumes four times higher than in Q2 2021.
As communicated on 2 August, guidance for 2022 has been revised upwards to an underlying EBITDA of around USD 37.0bn
(previously around USD 30.0bn), an underlying EBIT of around USD 31.0bn (previously around USD 24.0bn) and a free cash flow
above USD 24.0bn (previously above USD 19.0bn).
Based on the improved guidance the Board of Directors has decided to increase the current share buy-back programme by
USD 500m annually from USD 2.5bn to USD 3.0bn for the years 2022-2025.
Highlights Q2 USD million
Revenue EBITDA EBIT CAPEX
Ocean
Logistics & Services
Terminals
Towage & Maritime Services
Unallocated activities eliminations etc - - - - - -
AP Moller - Maersk consolidated
3
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022
Management review I Highlights Q2 2022
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 before financial items (EBIT)
Financial items net - - - - -
Profit before tax
Tax
Profit for the period
AP Møller - Mærsk A/S’ share
Underlying profit
Balance sheet
Total assets
Total equity
Invested capital
Net interest-bearing debt - - -
Cash flow statement
Cash flow from operating activities
Capital lease instalments – repayments of lease liabilities
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 is computed as the relevant performance measure adjusted for the net gains/losses from the sale of non-current assets, etc.
and net impairment losses as well as transaction, restructuring and integration costs related to major transactions. The adjustments include
A.P. Moller - Maersk’s share of mentioned items in joint ventures and associated companies and, when applicable, the adjustments are net of tax.
Summary financial information
4
AMOUNTS IN USD MILLION
Management review I Summary financial information
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022
Review Q2 2022
Delivering strong financial results
with clear customer focus
A.P. Moller - Maersk’s strong financial results continued
in Q2 2022, with higher profits compared to Q2 2021 in all
three major businesses and record operational results in
Ocean and Logistics & Services.
In particular, the profit in Ocean increased significantly
through higher freight rates driven by strong contract
rates. Record profitability in Logistics & Services came
from both acquisitions and organic revenue growth, with
new customer wins, increased business with existing cus-
tomers and realised customer synergies between Logistics
& Services and Ocean. The increase in Terminals was driven
by storage income in North America, Consumer Price Index
(CPI) related tariff increases and higher volumes offset by
cost increases.
Landside congestion continues to be an issue around the
world, with additional pressure from the Chinese lockdown
which affected most upstream opera tions. A.P. Moller - Maersk
continues to assist contract customers facing these excep-
tional conditions, supporting their supply chains by alleviat-
ing the persisting landside congestion, through investing in
additional equipment and increasing the capacity allocated
to contracted volumes.
Winding down in Russia
As previously announced, A.P. Moller - Maersk is winding
down its operations in Russia, which will ultimately result
in a complete exit from the country. All services to and
from Russia have been discontinued, and the process of
divesting assets, including a minority stake of 30.75% of
Global Ports Investments (GPI), is ongoing.
The impact on EBIT from the Russia/Ukraine situation was
less negative due to a reversal in Q2 of USD 93m of certain
losses and impairments in Ocean previously recognised in Q1.
USD 70m relates to more containers successfully being evac-
uated from the affected areas than previously anticipated.
The net EBIT impact for H1 2022 is negative USD 624m.
Russia/Ukraine EBIT impact USD million
Q Q H
Ocean - -
Logistics & Services - -
Terminals - - -
Towage & Maritime Services - - -
Total - -
Status on acquisitions
The acquisition of Pilot Freight Services (Pilot)
was completed in early May and the acquisition
of Senator Inter national in early June.
Both Pilot and Senator International have been reported in
the financials for Logistics & Services for the first time in
May and June respectively.
Status on other intended acquisitions
The intended acquisition of LF Logistics was announced in
December 2021 and is expected to close in Q3 2022. The
creation of a joint venture with Grindrod Intermodal Group
in which A.P. Moller - Maersk would own 51% of the stake
was announced in November 2021 and is expected to close
in Q4 2022. Both transactions are subject to regulatory
approvals.
ESG update
A.P. Moller - Maersk has a comprehensive and ambitious
ESG strategy encompassing the full scope of material sus-
tainability risks, responsibilities and opportunities for the
company. A.P. Moller - Maersk is guided by three core com-
mitments:
• Environment: take leadership in the decarbonisation
of logistics
• Social: ensure that people thrive at work by providing
a safe and inspiring workplace
• Governance: operate based on responsible business
practices.
Progress highlights for Q2 are outlined below. For a full
overview of A.P. Moller - Maersk’s ESG strategy and
roadmap, please see WWW.MAERSK.COM/SUSTAINABILITY.
Eight terminals in Europe now operating on
renewable electricity
A.P. Moller - Maersk has an ambitious target of achieving
net zero emissions across all scopes by 2040 and an emis-
sion reduction target of 70% (scope 1 and 2) by 2030 for
Terminals specifically. One of the major pillars of Terminals’
decarbonisation strategy is to radically reduce the company’s
consumption of fossil fuels across terminals by transi tioning
to the use of electricity from renew able sources for con-
trolled terminals.
After switching to renewable electricity in APM Terminals
Aarhus, Denmark, earlier this year, the company has achieved
an important milestone, with all electric equipment at
eight European terminals now powered by renewable
electricity.
5
Management review I Review Q2 2022
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022
A.P. Moller - Maersk joins initiative to accelerate
transition to net zero steel industry
Steel is the world’s most widely used material and steel-
making is currently a major source of carbon emissions
globally, second only to the cement industry. As an impor-
tant consumer of steel as well as supplier of scrap steel for
recycling, A.P. Moller - Maersk has decided to join Climate
Group Steel Zero (SZ), in order to send a clear demand signal
and catalyse the transition to sustainable steel.
Increased market demand for Maersk ECO
Delivery shipping product
Growth in demand for Maersk ECO Delivery continued in Q2,
with volumes four times higher than in Q2 2021. Maersk ECO
Delivery customers pay a green premium for a low-carbon
shipping product, which provides certified carbon emissions
savings. With this product, A.P. Moller - Maersk enables cus-
tomers to take action to reduce their greenhouse gas emis-
sions in a flexible and convenient way.
Svitzer announces strategy for fully carbon
neutral operations by 2040
Under its recently unveiled two-stage decarbonisation
strategy, Svitzer aims to reduce the carbon intensity of its
entire fleet of tugs by 50% by 2030 compared to a 2020
baseline. This will pave the way for fully carbon-neutral
operations just ten years’ later in 2040, in alignment with
corporate goals.
Increase in employee satisfaction
A.P. Moller - Maersk is committed to improving employee
engagement across the organisation and the results of the
bi-annual engagement survey show continued progress.
On 11 out of the 12 engagement items, A.P. Moller - Maersk
scores are above the median in Gallup’s global database,
and the company is confident that the target of reaching
a top - quartile score by 2025 is within reach.
Fatalities
In the first half of 2022, six fatalities have occurred across
the A.P. Moller - Maersk business lines, impacting three
A.P. Moller - Maersk employees and three persons employed
by third parties while performing work on A.P. Moller - Maersk
premises. The company is deeply saddened and committed
to full transparency, applying all efforts to learn from these
tragic events and work towards eliminating the factors and
managing the critical risks that lead to fatal incidents.
Stepping up in the fight against sexual harassment
Following an internal investigation focused on inclusion,
A.P. Moller - Maersk has launched several initiatives to
ensure that the working environment across all parts of the
company is safe, supportive and welcoming to all. Specially
for the seafaring population, this includes active outreach
to female seafaring colleagues to gather their first-hand
accounts of the culture at sea notably around sexual harass-
ment. The conversations, which are still taking place, unfor-
tunately confirms that cultural change is needed. The com-
pany is fully committed to creating a safe workplace for all
and has a dedicated team working on the cultural transfor-
mation and collaborates with subject matter experts in the
field of anti-sexual assault/sexual harassment (SASH), as
well as with other industry participants and advocates.
Change in management
As communicated, Morten Engelstoft, decided to retire
as CEO of APM Terminals by the end of June 2022.
Morten Engelstoft has been succeeded in the CEO role by
Keith Svendsen, with Henriette Hallberg Thygesen as the
Chairperson.
6
Management review I Review Q2 2022
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022
Delivering on the roadmap to 2025
The roadmap to 2025 initiated in 2021 is providing specific targets for the transformation towards becoming
the integrator of container logistics.
The return on invested capital (ROIC) (LTM) was 62.5%, well above the target of above 7.5% every year, and
above 12% for the period 2021-2025, driven by the increase in profit.
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 shareholders through share buy-backs and special dividends
in that order.
A.P. Moller - Maersk has a total commitment of USD 10bn (around DKK 64bn) in two share buy-back pro-
grammes of each USD 5bn (around DKK 32bn) with the first initiated in November 2021 and the second initi-
ated in May 2022.
Ocean delivered an EBIT margin of 45.0% over the last twelve months, well above the target of 6%
under normalised conditions. Total fleet capacity is within the range of 4.1-4.3m TEU.
For Logistics & Services, organic growth of 35% over the last twelve months was above the target of
10%, and 61% of the organic growth related to top 200 customers was also above the target of 50%.
Finally, the EBIT margin of 6.2% was above the target of above 6%, making Logistics & Services the
strategic growth driver for the company. In addition to rapid organic growth, the expectation is to
continue to make acquisitions, mainly of new capabilities and growth platforms, to expand the
logistics business.
The return on invested capital (ROIC) (LTM) was 7.4% for Terminals in Q2 and lower than the expecta-
tion of above 9% towards 2025. Excluding the impact from Russia, ROIC (LTM) was 13.1%.
Roadmap to 2025
Targets LTM
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 (of which completed)
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 customers % %
EBIT margin > % %
Terminals
Return on invested capital (ROIC) > % %
7
Management review I Review Q2 2022
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022
Revenue increased by USD 7.4bn to USD 21.7bn (USD 14.2bn),
with increases in Ocean of USD 6.3bn, in Logistics & Services
of USD 1.3bn and in Terminals of USD 155m. The increase in
Ocean was driven by higher freight rates, partly offset by
lower volumes. Short-term rates have softened from their
peak, but are still higher than a year ago, while the more
important contract rates have continued to increase given
the continuing congestion.
EBITDA increased to USD 10.3bn (USD 5.1bn), primarily
coming from Ocean with an EBITDA of USD 9.6bn (USD
4.4bn), driven by an increase in revenue due to higher
freight rates, partly offset by a decrease in volumes and
by higher costs related to bunker, handling and network.
In Logistics & Services, EBITDA increased by USD 121m to
USD 337m (USD 216m) due to the higher revenue, and in
Terminals, EBITDA increased by USD 30m to USD 400m
(USD 370m) because of higher storage income, the increase
in volume, and CPI-related tariff increases partly offset by
increases in costs.
EBIT increased to USD 9.0bn (USD 4.1bn) as a result of the
increase in EBITDA.
Financial items, net, amounted to USD 203m (USD 186m),
as increased interest income was more than offset by for-
eign exchange rate adjustments and derivative losses on
hedging from share buy-back.
Tax increased to USD 164m (USD 152m), primarily due to
the improved financial performance.
The underlying profit was USD 8.6bn (USD 3.7bn).
Cash flow from operating activities was USD 8.6bn (USD
4.1bn), driven by EBITDA of USD 10.3bn, partly offset by an
increase in net working capital of USD 1.2bn, mainly driven
by higher receivables due to higher revenue, translating
into a cash conversion of 83% (82%).
Gross capital expenditure (CAPEX) of USD 1.0bn (USD 452m)
was driven by higher investments across all segments, with
Ocean and Logistics & Services being the main drivers.
Free cash flow of USD 6.8bn (USD 3.2bn) was positively
impacted by higher cash flow from operating activities,
slightly offset by increased lease and financial payments
and higher capital expenditures
Financial review Q2 2022
Contractual capital commitments totalled USD 4.2bn
(USD 3.3bn at year-end 2021), of which USD 2.0bn is for
Ocean vessels and equipment, including green methanol-
enabled vessels and USD 1.1bn is related to commitments
towards terminal concession grantors.
Capital structure and credit rating
Net interest-bearing debt decreased to a net cash posi-
tion of USD 3.4bn (a net cash position of USD 1.5bn at year-
end 2021), as free cash flow of USD 12.9bn for the first six
months was partly used for share buy-backs of USD 1.2bn,
dividends paid of USD 6.9bn, acquisition of companies of
USD 2.1bn of which USD 597m is related to settlement of
debt and USD 1.5bn is related to acquisition of companies,
and an increase in lease liabilities of USD 785m. Excluding
lease liabilities, the Group had a net cash position of USD
14.7bn (USD 12.1bn at year-end 2021).
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.
The liquidity reserve increased to USD 23.6bn (USD 21.5bn
at year-end 2021) and was composed of liquid funds and
term deposits of USD 17.6bn, excluding restricted cash (USD
15.5bn at year-end 2021) and undrawn revolving credit
facilities of USD 6.0bn (USD 6.0bn at year-end 2021).
Share buy-back
The Annual General Meeting has approved a total commit-
ment of USD 10bn (around DKK 64bn).
During Q2, A.P. Moller - Maersk bought back 40,771 A shares
and 163,466 B shares, worth DKK 3.86bn (approximately
USD 553m), and no shares were bought for the long-term
incentive programme. At 30 June 2022, A.P. Moller - Maersk
owns a total of 55,811 A shares and 316,838 B shares as
treasury shares, corresponding to 1.99% of the share capital.
At the Annual General Meeting on 15 March 2022, the can-
cellation of 133,779 A shares and 535,076 B shares was
approved and the cancellation was completed in Q2.
The Board of Directors is permitted to decide to acquire
own shares up to a maximum of 15% of the share capital.
8
Management review I Financial review Q2 2022
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022
Revenue increased by USD 14.3bn to USD 40.9bn (USD
26.7bn), with substantial increases particular in Ocean of
USD 12.4bn, in Logistics & Services of USD 2.2bn, and in
Terminals of USD 371m.
The increase in Ocean was driven by significantly higher
freight rates, given the continuing congestion, partly off-
set by lower volumes. While contract rates continued to
increase, short-term rates have slightly softened during Q2.
The increase in Logistics & Services was primarily due to
significant volume growth, but also margin improvements,
enabled both through increased volume share with existing
customers and acquisitions, new customer wins and cus-
tomer synergies between Logistics & Services and Ocean.
The increase in Terminals was mainly driven by storage
income in North America and continued higher volume.
EBITDA increased significantly to USD 19.4bn (USD 9.1bn).
Ocean contributed with an increased EBITDA of USD 17.8bn
(USD 7.8bn), driven by higher revenue due to higher freight
rates, partly offset by lower volumes and higher bunker
costs from increased bunker prices, handling and network.
In Logistics & Services, the increased EBITDA of USD 656m
(USD 421m) was due to the higher revenue, and in Terminals,
EBITDA of USD 856m (USD 693m) was positively impacted
by higher storage income, the increase in volume and
increasing tariffs.
EBIT increased by USD 9.1bn to USD 16.3bn (USD 7.2bn),
positively impacted by the improved EBITDA with a neg-
ative impact from the Russia/Ukraine situation of USD
624m. The EBIT margin increased to 39.7% (26.9%). The
impact from the Russia/Ukraine situation amounted to
USD 69m in Ocean, USD 52m in Logistics & Services, USD
485m in Terminals related to an impairment to the hold-
ing in Global Ports Investments as a result of the with-
drawal of business in Russia and USD 18m in Towage &
Maritime Services.
Financial review H1 2022
Financial items, net, amounted to USD 497m (USD 416m),
negatively impacted by losses on foreign exchange rate
adjustments and derivative losses.
Tax increased to USD 335m (USD 302m), primarily due to
improved financial performance.
The underlying profit after financial items and tax was
USD 16.0bn (USD 6.4bn).
Cash flow from operating activities was USD 16.8bn (USD
7.6bn), positively impacted by the increase in EBITDA of USD
10.3bn, offset by a negative change in net working capital
of USD 2.3bn, leading to a cash conversion of 87% (83%).
Gross capital expenditure (CAPEX) was USD 2.4bn (USD
781m), driven by higher investments across all segments.
Free cash flow increased to USD 12.9bn (USD 5.6bn), posi-
tively impacted by higher cash flow from operating activi-
ties, partly offset by higher gross CAPEX and increased
lease payments and financial payments.
The ordinary dividend of DKK 2,500 per
A.P. Møller - Mærsk A/S share of nominally DKK 1,000 (USD
6.9bn) declared at the Annual General Meeting on 15 March
2022 was paid on 18 March 2022.
Total equity increased to USD 52.6bn (USD 45.6bn on
31 December 2021), mainly driven by higher net profit of
USD 15.4bn, partially offset by dividends payments and
share repurchase resulting in an equity ratio of 65.4%
(63.1% at year-end 2021).
Highlights H1 USD million
Revenue EBITDA EBIT CAPEX
Ocean
Logistics & Services
Terminals
Towage & Maritime Services
Unallocated activities eliminations etc - - - - - -
AP Moller - Maersk consolidated
9
Management review I Financial review H1 2022
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022
Guidance for 2022
As announced on 2 August, given the strong results of Q2
2022, the longer than anticipated continuation of supply
chain congestion, and subsequent higher freight rates, full-
year 2022 guidance has been revised upwards to an under-
lying EBITDA of around USD 37.0bn (previously around USD
30.0bn), an underlying EBIT of around USD 31.0bn (previ-
ously around USD 24.0bn) and a free cash flow (FCF) above
USD 24.0bn (previously above USD 19.0bn).
Guidance is now based on an expectation of a gradual nor-
malisation in Ocean taking place early in Q4 2022.
Sensitivity guidance
Financial performance for A.P. Moller - Maersk for 2022 depends on several factors and is subject to uncertainties related to the
situation in Russia and Ukraine, COVID-19, bunker fuel prices and freight rates, given the uncertain macroeconomic conditions.
All else being equal, the sensitivities for 2022 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
Given the volume developments in Q2, A.P. Moller - Maersk
has revised its 2022 outlook for the growth of global con-
tainer demand to the lower end of the +/- 1% range.
CAPEX guidance for 2022-2023 remains unchanged at USD
9.0-10.0bn, driven by intensified growth in Logistics & Services
and ESG investments. Further, CAPEX guidance for 2021-2022
of around USD 7.0bn is maintained.
Based on the improved guidance the Board of Directors has
decided to increase the current share buy-back programme
by USD 500m annually from USD 2.5bn to USD 3.0bn for the
years 2022-2025.
Guidance 2022 – development USD million
New guidance
August
Previous guidance
April
Initial guidance
February
Underlying EBITDA - around
Underlying EBIT - around
Free cash flow (FCF) - above
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
Management review I Guidance for 2022
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022
Market insights
Demand for logistics services continued to moderate across
global supply chains in Q2 2022. The war in Ukraine weighed
on consumer and company sentiment and added to higher
inflation via energy and other commodity prices. While the
Omicron wave of COVID-19 faded in large parts of the world
and congestion began to ease in some parts of the logistics
supply chain, lockdowns in China once again challenged
supply networks.
Short-term economic indicators turned negative in Q2. Euro
Area PMI surveys declined in June, above all in the manu-
facturing sector. Consumer sentiment also slowed. With
price indices remaining very high, the Euro Area appears to
have entered a period of ‘stagflation’. While the ongoing
invasion in Ukraine has added to global inflationary pres-
sures via higher energy and commodity prices, Europe and
many emerging and developing economies are now among
the most exposed to the fallout from the war. In the USA,
underlying demand held up more firmly in Q2, but short-
term indicators suggest weaker growth going forward, as
exemplified by the sharp deterioration of business and con-
sumer sentiment in July. In response to inflation, the US
Federal Reserved recently hiked interest rates by 0.75%,
adding further to downward pressure on the US housing
market and overall activity.
Global container volumes declined by 2.3% in Q2, following
-1.7% in Q1 2022 compared to Q1 2021, and container trade
is now below the pre-pandemic trend. Meanwhile, global
port throughput increased by 2.8% (Drewry), and global air
cargo volumes (CTK) were 9.4% lower in April/May. Trade
flow levels flattened at high levels in the USA, where con-
sumption of technology and retail goods rose dramatically
during the COVID-19 pandemic. North American container
imports from the Far East fell by around 1.0% in Q2, but
overall levels remain elevated. European consumption was
held back by high inflation and the impact on consumer
confidence from the war in Ukraine, and European con-
tainer imports from the Far East fell by 5.2% in Q2. Further-
more, Chinese lockdowns constrained container exports.
On the North-South trades, trade flows were also nega-
tively impacted by high inflation as well as the Chinese
port lockdowns in the spring, and container demand
declined by 3.6% in Q2.
The supply side of the logistics industry continued to be
disrupted by COVID-19-led capacity shortages. Container
availability and air capacity remained tight, although wait
times for vessels outside of ports eased, above all on the
US West Coast. In Europe, supply chain congestion remained
as retailers and manufacturers kept containers in ports and
warehouses due to weak final demand. Port lockdowns in
China due to the COVID-19 zero-tolerance policy as well as
consequences from the war in Ukraine also caused strains
in key areas of the logistics network.
The air freight industry remained capacity constrained
during Q2, and although capacity in the commercial air
industry was 3.5% higher than a year earlier (April/May 2022
vs April/May 2021), it remained well below the 2019 level.
From an Ocean perspective, the nominal global container
fleet stood at 25.4m TEU at the end of Q2, an increase of
3.9% compared to Q2 2021. The idle fleet increased slightly
but remained low in Q2 2022 at 1.1% as the industry battled
landside disruption and bottlenecks in ports. Nevertheless,
lost sailings and vessel delays driven by the congestion and
an ongoing com positional shift in deployment from shorter
intra- regional trades to longer East-West trades continued
to weigh on effective supply growth in Q2 2022. In sum,
effective supply declined more than headhaul demand in
Q2 compared to Q2 2021, and the demand- supply balance
improved slightly.
Freight and charter rates remained elevated in the con-
tainer industry, reflecting congestion, although spot/short/
short-term contract rates declined in Q2 relative to Q1. Some
of this decline reflected the normal seasonal pattern. The
order book reached 28% of the global fleet in Q2, compared
to 26% of the fleet at the end of Q1 on the back of continued
high new order activity. Freight rates out of China, as meas-
ured by the China Composite Freight Index (CCFI), were 46%
higher in Q2 2022 than Q2 2021.
The continued congestion and dislocation of supply and
demand fundamentals in the logistics industry increases
the uncertainty surrounding the outlook for freight rates.
On the demand side, sharply rising prices reduce real house-
hold income and may well lead consumers to adjust their
spending plans. The Russian invasion of Ukraine has weak-
ened the global demand outlook and significantly added
to uncertainty, and overall recession risks are mounting as
indicated by weak consumer and business sentiment, slow-
ing housing markets and tighter financial conditions. Global
container demand is projected to stay flat at the lower end
of +/- 1% in 2022, but downside risks dominating, while air
and land-side logistics demand is expected to remain more
robust through 2022. On the supply side, supplier delivery
times remain lengthy, and it is still uncertain when capacity
constraints including landside bottlenecks in trucking and
warehousing will abate.
11
Management review I Market insights
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022
Segments
Ocean
Profitability for Q2 increased substantially compared to
the same quarter last year, driven primarily by significantly
higher freight rates, given the continuing congestion. While
contract rates continued to increase, short-term rates have
slightly softened during the quarter. To tackle the recent
China lockdown, cargoes were diverted to neighbouring
ports to avoid the congestion in Shanghai. None theless, the
continuous disruptions in Europe and North America have
led to volume declines in these two markets. As a result, the
loaded volumes decreased by 7.4%.
The average loaded freight rates increased by 64%, driven
by both contracts and shipment rates on routes from Asia
to Europe and to North America. Unit cost at fixed bunker
increased by 14%, driven by higher network and container-
handling costs and lower volumes. Utilisation on offered
capacity remained strong at 92.5% and while schedule relia-
bility in Q2 was industry-leading, challenges remain due to
increased congestion in Europe and the ongoing congestions
in the United States on both the West and East Coast, while
congestions in Asia began to ease at the end of Q2.
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 before depreciation amortisation and impairment
losses etc (EBITDA)
EBITDA margin % % % % %
Profit 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 fleet capacity (TEU in ’)
Fleet owned (end of period)
Fleet chartered (end of period)
A.P. Moller - Maersk continued to focus on
supporting customers’ supply chains by alle-
viating bottlenecks through adequate availa-
bility of equipment and adapting the networks to the
customer needs.
Digitalisation of the product offering continues
with increased traction for Maersk Spot and
Maersk Twill. Maersk Spot has reached a 66%
(35%) conversion across all brands, and Maersk Twill has
delivered over 78k FFE (59k FFE) in Q2.
Financial and operational performance
Revenue increased to USD 17.4bn (USD 11.1bn), driven by an
increase in freight revenue of 57% with loaded freight rates
up by 64%, partly offset by a decrease in volumes of 7.4%.
EBITDA increased by USD 5.2bn to USD 9.6bn (USD 4.4bn)
due to higher revenue, partly offset by higher bunker costs
from increased bunker prices, higher container-handling
12
Management review I Segments I Ocean
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022
costs from ongoing congestions and higher network costs,
mainly due to time-charter equivalent costs. The EBITDA
margin increased by 15.4 percentage points to 55.1% (39.7%).
Consequently, EBIT increased by USD 4.9bn to USD 8.5bn
(USD 3.6bn).
Loaded volumes decreased by 7.4% to 3,095k FFE (3,341k
FFE) due to weaker markets and operational bottlenecks.
Volumes on East-West decreased mainly from the Asia-
Europe route and the backhaul trades. North-South
decreased on both headhaul and backhaul volumes. Intra-
regional volumes decreased, driven by a decrease in Intra-
Europe volumes.
The average loaded freight rate increased by 64% to
4,983 USD/FFE (3,038 USD/FFE), driven by significant
increase on both contracts and shipment rates, with the
sharpest increase on Transpacific and Asia-Europe trades.
Total operating costs were 18% higher at USD 7.8bn (USD
6.6bn), mainly driven by higher bunker costs with an increase
of 74% on bunker prices, slightly offset by lower consump-
tion. Network costs excluding bunker costs increased by
1.5%, mainly due to higher slot charter costs. Container-
handling costs increased by 6.4%, primarily due to higher
transportation costs of empty containers. Adjusting for
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 %
the positive impact of foreign exchange rates, operating
costs increased by 20%.
Bunker costs increased by 69% to USD 2.2bn (USD 1.3bn),
with an increase in average bunker prices of 74% to 827 USD/
tonne (475 USD/tonne), partially offset by a 2.7% decrease in
bunker consumption. Bunker efficiency decreased by 2.2% to
41.9 g/TEU*NM (41.00 g/TEU*NM).
Unit cost at fixed bunker increased by 14% to 2,327 USD/FFE
(2,039 USD/FFE) driven by higher time-charter equivalent
costs, container-handling costs and foreign feeders. Due to
successful evacuation of equipment from Russia, USD 81m
of cost provisions were released during the quarter. Adjust-
ing for this, unit cost at fixed bunker would be 15% higher
at 2,353 USD/FFE.
The average operated capacity of 4,282k TEU increased
by 4.1%. A total of 13 carbon-neutral vessels are in the new-
building programme by the end of Q2. The fleet consisted of
318 owned and 413 chartered vessels, of which 162k TEU or
3.8% of the fleet were idle (27 vessels), mainly due to repairs.
Key initiatives in Q2
Ocean continues to partner with key customers, offering
contract customers additional flexibility and space to help
with volatility in their supply chains. As a result of continu-
ous strategic focus on customer stability and resilience, the
share of contract volumes on long-hauls increased to 72%
(70%). More than 1.9m FFE are currently signed on multi-
year deals.
Chinese authorities have allowed A.P. Moller - Maersk to
conduct international cargo relay in China, making it the
first foreign carrier to perform transhipment between two
Chinese ports. This initiative will improve services through
optimised networks and could potentially address some of
the factors behind the bottlenecks in Chinese supply chains,
shortening transit times, reducing emissions and freeing up
additional capacity.
A.P. Moller - Maersk continues to expand on digital engage-
ment models like Maersk Spot to serve the short-term cus-
tomers. Maersk Spot increased the share of short-term
volumes on the Spot product to 66% (35%).
Twill, the end-to-end digital product designed for small
customers without in-house logistic capabilities, delivered
more than 78k FFE (59k FFE) in Q2.
Financial review H1 2022
Revenue increased by 61% to USD 33.0bn (USD 20.6bn),
driven by an increase in loaded freight rate of 67%, partly
offset by 7.0% less volumes. The EBITDA margin increased
by 15.8 percentage points to 54.0% at USD 17.8bn (USD 7.8bn),
and the EBIT margin increased by 16.7 percentage points to
47.3% at USD 15.6bn (USD 6.3bn).
Fleet overview, end Q2 2022
Q Q
TEU
Own container vessels
Chartered container vessels
Total fleet
Number of vessels
Own container vessels
Chartered container vessels
Total fleet
13
Management review I Segments I Ocean
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022
Total operating costs increased by 19% to USD 15.1bn (USD
12.6bn), driven by increase in bunker cost of 61% due to
higher price, increased container-handling costs of 7.0%
and higher network costs excl. bunker of 9.9%. Adjusting
for the positive impact of foreign exchange rates, operating
costs increased by 21%.
Logistics & Services
Logistics & Services delivered strong Q2 2022 results as the
segment continues to improve its ability to deliver end-to-
end solutions throughout the entire supply chain.
All Logistics & Services product families showed positive
revenue progression, especially in Fulfilled by Maersk and
in Managed by Maersk. This performance is primarily the
result of organic growth from new customer wins, increased
share of logistics spend with existing customers and the
closure of announced acquisitions.
Logistics & Services continues to build more
resilient and integrated supply chain journeys
through the launch of A.P. Moller - Maersk’s own
controlled capacity offering, Maersk Air Cargo.
A.P. Moller - Maersk was named a Leader by
Gartner in the 2022 Gartner Magic Quadrant for
Third-Party Logistics.
Financial and operational performance
Revenue increased by 61% to USD 3.5bn (USD 2.2bn), driven
primarily by higher volumes, especially within Fulfilled and
Managed by Maersk.
Organic/inorganic USD million
Q-A Organic Inorganic Q-A
Revenue
% %
EBITA
Organic revenue increased by USD 790m implying 36% rev-
enue growth. 71% of the organic revenue growth came from
top 200 customers underlining the integrator strategy. The
increase in organic EBITA was USD 77m. Inorganically, B2C
Europe, Visible Supply Chain Management, Pilot and Senator
International contributed with a revenue of USD 544m and
an EBITA of USD 21m. Pilot and Senator International were
reported for the first time as part of the Logistics & Services
financials in May and June, respectively.
Logistics & Services highlights USD million
Q
Q
M
M
M
Revenue
Direct costs (third-party costs)
Gross profit
Direct Operating Expenses
Selling General & Administration (SG&A)
Profit before depreciation amortisation and impairment
losses etc (EBITDA)
EBITDA margin % % % % %
Earnings before interest taxes and amortisation (EBITA)
EBITA margin % % % % %
Profit 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)
Air freight volumes (tonne)
1 2021 Air freight volumes have been restated to exclude pure terminal handling.
14
Management review I Segments I Ocean I Logistics & Services
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022
Managed by Maersk revenue increased by USD 253m
to USD 570m (USD 317m), driven by a 43% increase in
volumes in lead logistics to 29,602 kcbm (20,696 kcbm).
The increase in volume is both a result of strong organic
growth from retail and lifestyle customers as well as the
effect of new business wins. Further, Customs Services
volumes were up by 193k declarations to 1,400k declara-
tions (1,207k declarations).
Fulfilled by Maersk revenue increased by USD 402m to
USD 882m (USD 480m), primarily driven by contract logistics
with additional volume and expanded capacity by 679 sqm
since Q2 2021. Revenue from Fulfilled by Maersk was also
positively impacted by e-commerce, driven by the acquisi-
tion of Visible Supply Chain Management and B2C Europe
in H2 2021.
Transported by Maersk revenue was up by 50% to USD 2.0bn
(USD 1.4bn), driven by an increase in intermodal volumes,
improved air freight rates and volume, and higher revenue
from extended liability products. Intermodal volumes were
up 12% to 1,209k FFE (1,082k FFE) as the result of increased
share of customer transportation spend. In Air Freight, higher
rates, volumes and the consolidation of Senator International
drove the improved performance with volumes up by 45%
to 53.5k tonne (36.9k tonne). Revenue also increased driven
by the continued strong performance of extended liability
products, such as Container Protect and Value Protect.
Gross profit increased by USD 329m to USD 892m (USD
563m), driven by an increase in volumes in lead logistics and
in the number of declarations handled in Customs Services
under Managed by Maersk, volume growth in contract logis-
tics under Fulfilled by Maersk, as well as increased volumes
in inter modal and higher rates in air under Transported
by Maersk.
EBITDA increased by USD 121m to USD 337m (USD 216m)
due to the higher revenue, and the EBITDA margin was
9.6% (10.0%).
EBIT increased to USD 234m (USD 153m), and the EBIT
margin was 6.7% (7.1%).
Key initiatives in Q2
Logistics & Services focused on the integration of key capa-
bilities and further strengthening the integrated logistics
offerings to fulfil more of the customers’ needs along their
supply chain.
In Fulfilled by Maersk, B2C Europe’s logistics products and ser-
vices have been further integrated into the e-commerce port-
folio and are now rebranded as Maersk. Combining the exper-
tise of B2C Europe and A.P. Moller - Maersk will contribute to
the strength of the Maersk brand in Europe. The global ware-
housing footprint continued to expand, and five new ware-
houses (net) were opened in Q2, equal to 178k sqm, adding
to a total active capacity of 226 warehouses and 3.4m sqm.
In Transported by Maersk, the announced acquisitions of
Pilot and Senator International are now finalised and the
integration is processing. Logistics & Services reported the
financials for Pilot in May and for Senator International
as of June. Further, Maersk Air Cargo was launched as the
combination of the existing in-house operator, Star Air,
and a controlled capacity of eight aircraft that will be pro-
gressively deployed and operated from second half 2022
and onwards up to 2024. This new air freight capacity
offering will leverage the volumes and customer relation-
ship from Senator International to ultimately service more
of A.P. Moller - Maersk’s own customers.
Merger & Acquisitions
The Merger & Acquisition roadmap for Logistics
& Services focuses on facilitator type of acquisi-
tions to expand capabilities. Logistics & Services
announced a number of acquisitions in 2021 and
most recently Pilot in Q1 2022.
Pilot, consolidated since 1 May, is complementing
earlier acquisitions to provide integrated logistics
solutions in North America, especially with Perfor-
mance Team (B2B ware housing and distribution
from 2020) and Visible SCM (e-commerce ware-
housing and parcel distribution from 2021).
The acquisitions of Visible Supply Chain Manage-
ment, B2C Europe and HUUB provide end-to-end
e-commerce capabilities that will strengthen
the logistics offering within Fulfilled by Maersk.
The acquisition of Senator International, closed in
June, and the intended acquisition of LF Logistics
bring capa bilities, reach and platform within
Transported by and Fulfilled by Maersk, respec-
tively, while the Grindrod Intermodal Group will
complement both offerings.
Senator International
Grindrod
Visible SCM
B2C
Europe
Huub
Pilot
LF Logistics
Fulfilled
by Maersk
Managed
by Maersk
Transported
by Maersk
15
Management review I Segments I Logistics & Services
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022
In Managed by Maersk, TradeLens continues to expand its
network and now consists of more than 400 network mem-
bers. Similarly, Customs Services continue to grow and has
expanded the number of customs and trade consulting pro-
ducts available to customers aimed to address customer’s
lack of visibility in their international supply chain.
A.P. Moller - Maersk also reached an important milestone
and was named a Leader by Gartner in the 2022 Gartner
Magic Quadrant for Third-Party Logistics, worldwide. This
recognition is evidence to the journey of Logistics & Services
towards creating end-to-end integrated logistics through
solutions that are built to add resilience, agility and flexi-
bility to customers’ logistical networks.
Financial review H1 2022
Revenue of USD 6.4bn (USD 4.2bn) was driven by increasing
revenue in Managed by Maersk services to USD 1.1bn (USD
665m), Fulfilled by Maersk services to USD 1.7bn (USD 937m)
and Transported by Maersk services to USD 3.6bn (USD 2.6bn).
This increase was the result of intermodal volumes being
up 12% to 2,365k FFE (2,119k FFE), mainly due to a higher
penetration ratio into existing Ocean customers and by an
increase of lead logistics volumes of 36% to 56,092 kcbm
(41,380 kcbm), driven by strong growth from the existing
customer base and strong commercial traction in landing
new business.
EBITDA increased to USD 656m (USD 421m), and EBIT
increased to USD 417m (USD 292m). When adjusting for
the impact of winding down operations and divesting all
assets in Russia of USD 52m in H1 2022, EBIT amounts to
USD 469m.
Organic/inorganic USD million
H-A Organic Inorganic H-A
Revenue
% %
EBITA
Inorganic revenue accounted for USD 686m (USD 210m)
and EBITA was USD 21m (USD 24m).
Terminals
Terminals is committed to improving performance via invest-
ment in efficiency initiatives and automation. In Q2, the ini-
tiatives gained traction and, despite global congestion and
lockdowns in China, Terminals’ volume exceeded last year by
1.5% (3.0% like-for-like, adjusted for exits and expiring con-
cessions), driven by strong growth in USA and Asia.
Terminals highlights USD million
Q
Q
M
M
M
Revenue
Concession fees (excl capitalised lease expenses)
Labour costs (blue collar)
Other operational costs
Selling General & Administration (SG&A) and other costs etc
Total operating costs
Profit 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
Volumes – financially consolidated (moves m)
Ocean segment
External customers
Revenue per move – financially consolidated (USD)
Cost per move – financially consolidated (USD)
Result from joint ventures and associated companies (USDm) -
16
Management review I Segments I Logistics & Services I Terminals
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022
Further to Terminals commitment to improve per-
formance and ease congestion for its customers,
Terminals recently announced the expansion of the
terminal in Mobile, Alabama. Additionally in the USA, there
are major projects to modernise the terminals Pier 400,
Los Angeles and Port Elizabeth, New Jersey.
The drive to optimise the portfolio continues as the
second exit of the year was executed with the sale
of Container Terminal Wilhelmshaven, Germany, and
preparations have started to hand back the terminal in Itajai,
Brazil, where the concession is expiring.
Financial and operational performance
Revenue increased to USD 1.1bn (USD 969m), driven by stor-
age income, CPI-related tariff increases and higher volume.
Volume increased by 1.5% (3.0% like-for-like) and utilisation
increased to 79% (76%), mainly driven by a continued strong
import volume into the USA and above market growth in
Asia. Volume from the Ocean segment increased by 4.4%
and volume from external customers was on par. Higher
storage revenue in North America and mostly CPI-related
tariff increases resulted in a revenue per move increase of
13% to USD 341 (USD 301). Cost per move also increased by
13% to USD 265 (USD 234), due to a non-operational one-
off and higher operating costs, mainly driven by inflationary
labour costs, higher energy costs and higher variable con-
cession fees.
At fixed foreign exchange rates and volume mix and port-
folio mix, revenue per move increased by 17%. On the same
basis, and excluding the non-operational one-off, cost per
move increased by 9%.
EBITDA increased to USD 400m (USD 370m) driven by the
strong revenue whereas the EBITDA margin decreased to
35.6% (38.2%) due to the higher costs.
EBIT improved to USD 316m (USD 302m) mainly due to
higher storage income, partly offset by higher costs.
ROIC (LTM) was 7.4% (8.7%) with the significantly better
operating performance being offset by the Global Port
Investment impairment (Russia exit). ROIC adjusted
for the GPI impairment was 13.1%.
CAPEX increased to USD 105m (USD 40m), driven by the ter-
minal modernisation in Los Angeles, USA, and Callao, Peru.
In North America, revenue increased due to volume growth
of 7.7% and higher storage income driven by supply chain
congestion, partially offset by higher labour costs, higher
variable concession fees and higher energy costs due to
increased fuel prices.
In Europe, despite a 1.2% decrease in volume, revenue
improved due to congestion-related storage income and
mostly CPI-related tariff increase. The higher revenue was
partially offset by higher energy and other operational costs.
In Latin America, volume decreased by 8.2%, largely due to
lower market volume in Callao, Peru, and reducing volume
in Itajai, Brazil, where services are gradually being phased
out as the concession is ending in 2022. Higher tariffs,
however, offset the full volume drop resulting in higher
total revenue.
In Asia, volume grew by 7.3%, mainly driven by additional
volume due to new services in Pipavav, India, and two new
berths in Yokohama, Japan, resulted in a higher revenue,
which was partially offset by higher maintenance and repair
costs related to cyclone restoration.
In Africa and Middle East, volume was at par, with an increase
in overall revenue due to CPI-related tariff increases and
higher storage income. The higher revenue was partially
offset by higher cost per move due to higher variable con-
cession, higher energy and higher maintenance and repair
works.
Results from joint ventures and associated companies
The share of profits in joint ventures and associated com-
panies was USD 79m (USD 79m).
Key initiatives in Q2
Terminals Mobile signed an agreement with the Alabama
State Port Authority, USA, to add 32 acres to the current
134-acre container terminal yard. The first stage of this
significant investment is expected to be completed in 2023
and the final stage in 2025. As part of the expansion, the
terminal will purchase two additional post-Panamax ship-
to-shore cranes. This represents the third expansion in the
last six years as USA importers expand to meet regional
consumer demand and tap into rail services to the Midwest
US market.
Abidjan, Ivory Coast, is entering the last phase with all equip-
ment delivery planned and the organisation is preparing for
the first move. Expansions in Gateway Terminals India (GTI),
Mumbai, India, and Onne, Nigeria, is steadily progressing as
per plan.
Terminals closed the transaction with Hapag-Lloyd, which
purchased Terminals’ 30% shareholding of Container Ter-
minal Wilhelmshaven (CTW), Germany, in May.
Regional volume Million moves
Q Q Growth (%)
North America
Latin America -
Europe Russia and the Baltics -
Asia
Africa and Middle East -
Total
1 Financially consolidated.
17
Management review I Segments I Terminals
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022
Financial review H1 2022
Revenue improved to USD 2.3bn (USD 1.9bn), with a 1.4%
volume increase and higher storage income in the USA. Like-
for-like volume increased by 2.7%, driven by strong import
demand in the USA and above-market growth in Asia with
capacity utilisation increasing to 78% (75%).
Revenue per move increased to USD 351 (USD 299), driven
by high storage income and mostly CPI-related tariff
increases. Cost per move increased to USD 262 (USD 235),
driven by a non-operational one-off, higher labour costs,
concession fees and energy costs.
EBITDA improved to USD 856m (USD 693m) while EBIT
decreased to USD 243m (USD 541m), mainly driven by an
impairment of the holding in Global Port Investment in
Russia. EBIT adjusted for the GPI impairment was USD
728m (USD 541m), driven by higher storage income, which
was partly offset by higher costs.
Towage & Maritime Services
Revenue was USD 579m (USD 529m) with an EBITDA of USD
81m (USD 95m). EBIT of USD 16m (USD 64m) decreased by
USD 48m, mainly driven by an impairment in Hoegh Auto liners
due to deterioration of the share price during Q2 and reversal
of impairments in Maersk Container Industry in Q2 2021.
Towage
Financial and operational performance
Revenue increased by USD 14m to USD 198m (USD 184m),
and adjusted for foreign exchange rate effects, the increase
was 15% or USD 27m. Harbour towage revenue was posi-
tively impacted by higher volumes and cargo mix in Australia
and Europe. Terminal towage revenue increased by USD 5m,
adjusted for foreign exchange rate effects, mainly driven
by bareboat charters in Angola, two new tugs in Egypt and
increased volumes in Australia.
EBITDA increased to USD 58m (USD 53m), due to increased
revenue, partly offset by higher bunker costs. EBIT increased
to USD 34m (USD 31m), mainly driven by increased EBITDA.
Results from joint ventures and associated companies
The share of profit in joint ventures and associated compa-
nies was unchanged from Q2 2021 at USD 6m (USD 6m) and
was positively impacted by increased results in Africa Middle
East and Asia (AMEA) and Americas considering the exit of
activities in Bowen, Australia, in H2 2021.
Key initiatives in Q2
Svitzer was awarded a 10-year contract renewal for part
of the engagement in Qatar and has ordered new tugs to
replace the five existing tugs for this contract.
Maritime Services
Maersk Supply Service reported a 28% increase in revenue
to USD 96m (USD 75m), reflecting increased project activity.
However, EBITDA declined by USD 11m to negative USD 2m
(positive USD 9m) given increased dry docking costs, lower
charter activity and increased bunker costs. EBIT increased
by USD 4m to USD 2m (negative USD 2m), mainly driven by
reduced depreciation due to impairment losses recognised
in Q4 2021 and gain on sale of assets during Q2 2022.
Key initiatives in Q2
The contracts for the two vessels working with the Ocean
Cleanup in the Pacific Ocean were extended until mid-2023.
Towage & Maritime Services highlights USD million
Q
Q
M
M
M
Revenue
Profit before depreciation amortisation and impairment
losses etc (EBITDA)
EBITDA margin % % % % %
Profit before financial items (EBIT)
EBIT margin % % % % %
Invested capital
Gross capital expenditure excl acquisitions and divestments (CAPEX)
Operational and nancial metrics
Number of operational tug jobs (harbour towage) (’)
18
Management review I Segments I Terminals I Towage & Maritime Services
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022
Financial review H1 2022
Revenue, with an increase of USD 82m, was USD 1.1bn (USD
1.1bn), EBITDA was USD 160m (USD 184m) and EBIT was USD
85m (USD 105m).
Revenue in Towage was USD 390m (USD 365m). EBITDA
was USD 116m (USD 111m), mainly driven by increased reve-
nue, partly offset by higher bunker costs and negative cur-
rency exchange rate impact. EBIT was USD 51m (USD 65m),
mainly due to the withdrawal from operations in Russia in
Q1 2022.
Maersk Supply Service reported a revenue of USD 178m
(USD 129m) and an EBITDA of negative USD 6m (USD 0m),
mainly driven by decreased utilisation of the fleet from
lower time-charter activity. EBIT was negative USD 6m
(negative USD 21m), driven primarily by lower depreciations
because of impairment losses recognised in Q4 2021 and
gain of sold assets in Q2 2022.
The intended sale of Maersk Container Industry is progressing
according to plan, with closing subject to regulatory approvals.
19
Management review I Segments I Towage & Maritime Services
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022
Executive Board
Board of Directors
Statement of the Board of Directors
and the Executive Board
20
Management review I Statement of the Board of Directors and the Executive Board
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022
Financials
Condensed income statement
Note Q
Q
M
M
M
Revenue 21,650 14,230 40,942 26,669 61,787
Profit before depreciation amortisation and impairment
losses etc (EBITDA) 10,327 5,064 19,411 9,103 24,036
Depreciation amortisation and impairment losses net 1,418 1,087 2,925 2,112 4,944
Gain on sale of non-current assets etc net 37 12 64 19 96
Share of profit/loss in joint ventures and associated companies 42 95 -289 171 486
Profit before financial items (EBIT) 8,988 4,084 16,261 7,181 19,674
Financial items net -203 -186 -497 -416 -944
Profit before tax 8,785 3,898 15,764 6,765 18,730
Tax 164 152 335 302 697
Profit for the period 8,621 3,746 15,429 6,463 18,033
Of which:
Non-controlling interests 28 33 60 53 91
AP Møller - MærskA/S’ share 8,593 3,713 15,369 6,410 17,942
Earnings per share USD 466 194 830 333 941
Diluted earnings per share USD 464 193 827 332 938
Condensed statement of comprehensive income
Q
Q
M
M
M
Profit for the period 8,621 3,746 15,429 6,463 18,033
Translation from functional currency to presentation currency -427 111 -464 -106 -364
Reclassified to income statement gain on sale of non-current
assets etc net 9 16 9 23 23
Cash flow hedges -41 -8 12 -69 -109
Tax on other comprehensive income 1 2 -9 -7 -7
Share of other comprehensive income of joint ventures and
associated companies net of tax - -1 -1 -9 -5
Total items that have been ormay be reclassified subsequently
to the income statement -458 120 -453 -168 -462
Other equity investments 31 1 81 2 143
Actuarial gains/losses on defined benefit plans etc - -69 - -69 -23
Tax on other comprehensive income - 13 - 13 7
Total items that will not be reclassified to the income statement 31 -55 81 -54 127
Other comprehensive income net of tax -427 65 -372 -222 -335
Total comprehensive income for the period 8,194 3,811 15,057 6,241 17,698
Of which:
Non-controlling interests 13 31 47 50 87
AP Møller - MærskA/S’ share 8,181 3,780 15,010 6,191 17,611
Financials I Interim consolidated financial statements Q2 2022
21
AMOUNTS IN USD MILLION A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022
Condensed balance sheet at 30June
June
June
M
Intangible assets 7,844 4,981 5,769
Property plant and equipment 27,667 26,397 27,303
Right-of-use assets 10,723 9,002 9,906
Financial non-current assets etc 2,663 2,933 3,135
Deferred tax 384 272 356
Total non-current assets 49,281 43,585 46,469
Inventories 2,202 1,486 1,457
Receivables etc 18,930 6,425 12,111
Securities - 1 3
Cash and bank balances 9,730 8,106 11,832
Assets held for sale 283 437 399
Total current assets 31,145 16,455 25,802
Total assets 80,426 60,040 72,271
June
June
M
Equity attributable to AP Møller - MærskA/S 51,517 34,269 44,508
Non-controlling interests 1,069 1,013 1,080
Total equity 52,586 35,282 45,588
Lease liabilities non-current 8,354 7,593 8,153
Borrowings non-current 3,932 4,850 4,315
Other non-current liabilities 2,552 1,937 2,122
Total non-current liabilities 14,838 14,380 14,590
Lease liabilities current 2,982 1,871 2,398
Borrowings current 244 239 469
Other current liabilities 9,644 8,024 8,982
Liabilities associated with assets held for sale 132 244 244
Total current liabilities 13,002 10,378 12,093
Total liabilities 27,840 24,758 26,683
Total equity and liabilities 80,426 60,040 72,271
Financials I Interim consolidated financial statements Q2 2022
22
AMOUNTS IN USD MILLION A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022
Condensed cash flow statement
Note Q
Q
M
M
M
Profit before financial items 8,988 4,084 16,261 7,181 19,674
Non-cash items etc 1,113 1,075 3,228 1,958 4,540
Change in working capital -1,210 -886 -2,279 -1,345 -1,610
Cash flow from operating activities before tax 8,891 4,273 17,210 7,794 22,604
Taxes paid -280 -136 -378 -224 -582
Cash flow from operating activities 8,611 4,137 16,832 7,570 22,022
Purchase of intangible assets and property plant and
equipment (CAPEX) -1,008 -452 -2,362 -781 -2,976
Sale of intangible assets and property plant and equipment 104 89 147 124 205
Sale of other equity investments - - 20 4 8
Acquisition of subsidiaries and activities -1,535 -10 -1,536 -10 -815
Sale of subsidiaries and activities 3 -29 20 -28 3
Dividends received 82 36 102 95 282
Financial investments etc net -5,552 47 -4,446 -53 -5,049
Cash flow used for investing activities -7,906 -319 -8,055 -649 -8,342
Repayments of/proceeds from borrowings net -631 -982 -647 -1,465 -1,934
Repayments of lease liabilities -762 -453 -1,408 -1,082 -2,279
Financial payments net -59 -13 -211 -96 -258
Financial expenses paid on lease liabilities -124 -114 -242 -228 -459
Purchase of own shares -564 -448 -1,195 -781 -1,956
Dividends distributed -902 -128 -6,847 -1,017 -1,017
Dividends distributed to non-controlling interests -40 -29 -43 -41 -91
Other equity transactions 36 24 27 33 94
Cash flow from financing activities -3,046 -2,143 -10,566 -4,677 -7,900
Net cash flow for the period -2,341 1,675 -1,789 2,244 5,780
Cash and cash equivalents beginning of period 12,084 6,421 11,565 5,864 5,864
Currency translation effect on cash and bank balances -55 -2 -88 -14 -79
Cash and cash equivalents end of period 9,688 8,094 9,688 8,094 11,565
Of which classified as assets held for sale -6 -23 -6 -23 -28
Cash and cash equivalents end of period 9,682 8,071 9,682 8,071 11,537
Cash and cash equivalents
Cash and bank balances 9,730 8,106 9,730 8,106 11,832
Overdrafts 48 35 48 35 295
Cash and cash equivalents end of period 9,682 8,071 9,682 8,071 11,537
Cash and bank balances include USD 1.5 bn (USD 1.1 bn) 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.
Financials I Interim consolidated financial statements Q2 2022
23
AMOUNTS IN USD MILLION A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022
Condensed statement of changes in equity
AP Møller - Mærsk A/S
Note Share
capital
Trans-
lation
reserve
Reserve
for other
equity
invest-
ments
Reserve
for
hedges
Retained
earnings
Total Non-
con-
trolling
interests
Total
equity
Equity January 3,513 -767 135 -160 41,787 44,508 1,080 45,588
Other comprehensive income
net of tax - -440 81 1 -1 -359 -13 -372
Profit for the period - - - - 15,369 15,369 60 15,429
Total comprehensive income
for the period - -440 81 1 15,368 15,010 47 15,057
-
Dividends to shareholders - - - - -6,845 -6,845 -43 -6,888
Value of share-based payment - - - - 10 10 - 10
Sale of subsidiaries - - - - - - -30 -30
Purchase of own shares - - - - -1,183 -1,183 - -1,183
Sale of own shares - - - - 17 17 - 17
Capital increases and decreases -121 - - - 121 - 15 15
Transfer of gain/loss on disposal
of equity investments to retained
earnings - - -14 - 14 - - -
Total transactions with
shareholders -121 - -14 - -7,866 -8,001 -58 -8,059
Equity June 3,392 -1,207 202 -159 49,289 51,517 1,069 52,586
Equity January 3,632 -432 -6 -42 26,698 29,850 1,004 30,854
Other comprehensive income
net of tax - -78 2 -77 -66 -219 -3 -222
Profit for the period - - - - 6,410 6,410 53 6,463
Total comprehensive income
for the period - -78 2 -77 6,344 6,191 50 6,241
Dividends to shareholders - - - - -1,017 -1,017 -49 -1,066
Value of share-based payment - - - - 7 7 - 7
Purchase of own shares - - - - -781 -781 - -781
Sale of own shares - - - - 20 20 - 20
Capital increases and decreases -119 - - - 119 - 8 8
Transfer of gain/loss on disposal
of equity investments to retained
earnings - - -2 - 2 - - -
Other equity movements - - - - -1 -1 - -1
Total transactions with
shareholders -119 - -2 - -1,651 -1,772 -41 -1,813
Equity June 3,513 -510 -6 -119 31,391 34,269 1,013 35,282
Financials I Interim consolidated financial statements Q2 2022
24
AMOUNTS IN USD MILLION A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022
Note 1 Segment information
Ocean Logistics
& Services
Terminals Towage &
Maritime
Services
Unallo-
cated
items
Elimi-
nations
Consoli-
dated
total
Q2 2022
External revenue -
Inter-segment revenue - - -
Total revenue -
Profit before depreciation amortisation
and impairment losses etc (EBITDA) - -
Profit before financial items (EBIT) -
Key metrics
Invested capital - -
Gross capital expenditures excl
acquisitions and divestments (CAPEX) -
Ocean Logistics
& Services
Terminals Towage &
Maritime
Services
Unallo-
cated
items
Elimi-
nations
Consoli-
dated
total
Q2 2021
External revenue -
Inter-segment revenue - -
Total revenue -
Profit before depreciation amortisation
and impairment losses etc (EBITDA) -
Profit before financial items (EBIT) -
Key metrics
Invested capital - -
Gross capital expenditures excl
acquisitions and divestments (CAPEX)
Financials I Interim consolidated financial statements Q2 2022
25
AMOUNTS IN USD MILLION A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022
Note 1 Segment information
Ocean Logistics
& Services
Terminals Towage &
Maritime
Services
Unallo-
cated
items
Elimi-
nations
Consoli-
dated
total
6 months 2022
External revenue -
Inter-segment revenue - - -
Total revenue -
Profit before depreciation amortisation
and impairment losses etc (EBITDA) - -
Profit before financial items (EBIT) -
Key metrics
Invested capital - -
Gross capital expenditures excl
acquisitions and divestments (CAPEX) -
Ocean Logistics
& Services
Terminals Towage &
Maritime
Services
Unallo-
cated
items
Elimi-
nations
Consoli-
dated
total
6 months 2021
External revenue -
Inter-segment revenue - -
Total revenue -
Profit before depreciation amortisation
and impairment losses etc (EBITDA) - -
Profit before financial items (EBIT) -
Key metrics
Invested capital - -
Gross capital expenditures excl
acquisitions and divestments (CAPEX) -
USD million Types of revenue Q
Q
M
M
M
Ocean Freight revenue
Other revenue including hubs
Logistics & Services Managed by Maersk
Fulfilled by Maersk
Transported by Maersk
Terminals Terminal services
Towage & Maritime Services Towage services
Sale of containers and spare parts
Offshore supply services
Other shipping activities
Other services
Unallocated activities and eliminations - - - - -
Total revenue
Financials I Interim consolidated financial statements Q2 2022
26
AMOUNTS IN USD MILLION A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022
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 - -
June
January
Conversion - - - -
Cancellation - -
June
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
15 March 2022, the shareholders decided on the cancellation of
treasury shares, whereby the share capital would be decreased.
On 25 May 2022, the Company’s share capital was reduced from
nominally DKK 19,376,016,000 by nominally DKK 688,855,000
in total, divided into 133,779 A shares and 535,076 B shares of
DKK 1,000 to nominally DKK 18,707,161,000.
The reduction in the share capital has been recorded by applying the
historical rate of exchange of 551,53 DKK/USD (551,53 DKK/USD).
Development in the holding of treasury shares
No of shares of DKK Nominal value DKK million % of share capital
Treasury shares
A shares
January % %
Additions % %
Cancellation % %
June % %
B shares
January % %
Additions % %
Cancellation % %
Disposals % %
June % %
The share buy-back programme is carried out with the purpose to
adjust the capital structure of the company. Shares which are not
used for hedging purposes for the long-term incentive programmes
will be proposed cancelled at the Annual General Meetings.
Disposals of treasury shares are related to the share option plans
and the restricted shares plan.
From 1 January 2022 to 30 June 2022, A.P. Moller - Maersk has
bought back 34,729 A shares, with a nominal value of DKK 35m, and
106,335 B shares, with a nominal value of DKK 106m, as treasury shares
from A.P. Møller Holding A/S, which is considered a related party.
The dividend of DKK 2,500 per share of DKK 1,000 – a total of DKK
46.8bn is equivalent to USD 6.9bn, excluding treasury shares. Of this,
USD 6.0bn was paid to shareholders on 18 March 2022, and the with-
holding tax of USD 882m was paid in Q2 2022. Payment of dividends
to share holders does not trigger taxes for A.P. Moller - Maersk.
Financials I Interim consolidated financial statements Q2 2022
27
AMOUNTS IN USD MILLION A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022
Acquisitions during Q2 2022
Pilot Freight Services (Logistics & Services)
On 5 February 2022, the Group signed an agreement to acquire 100%
of the shares in Pilot Freight Services, a US-based first, middle and
last mile cross-border solutions provider. The acquisition was com-
pleted in early May 2022. Pilot has specialised in the big and bulky
freight segment in North America. Pilot Freight Services will add spe-
cific new services within the fast-growing big and bulky e-commerce
segment to the Group, thus increasing cross-selling opportunities.
The total purchase price is USD 1.6bn of which USD 597m is related to
the settlement of debt. Of the consideration paid, USD 1.1bn is related
to goodwill while USD 650m is related to intangible assets, mainly
customer relationships. USD 235m is related to trade receivables and
USD 174m is related to RoU assets. Liabilities are mainly related to
trade payables, lease liabilities and debt settled as part of the trans-
action. Goodwill is mainly attributable to commercial and operational
future expected synergies, driven from cross-selling, network opti-
misations, and improved productivity.
From the acquisition date to 30 June 2022, Pilot Freight Services
contributed with a revenue of USD 251m and an insignificant net
profit. Had the acquisition occurred on 1 January 2022, the impact
on the Group’s revenue would have been USD 747m. The net profit
impact to the Group would have been insignificant. Acquisition-
related costs of USD 15m are recognised as operating costs in the
income statement of the Logistics & Services segment, and in oper-
ating cash flow in the statement of cash flow.
The accounting for the business combination is considered provi-
sional as per 30 June 2022, as valuation of intangible assets is not
yet finalised.
Senator International (Logistics & Services)
On 2 November 2021, the Group signed an agreement to acquire
100% of the shares in Senator International, a well renowned German
air-based freight carrier company. The acquisition was completed in
early June 2022. 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 the integrator vision.
The total purchase price is USD 545m. Of the consideration paid,
USD 187m is related to goodwill while USD 261m is related to
intangible assets, mainly customer relationships. USD 220m is
related to trade receivables and the rest is mainly related to other
receivables. Liabilities are mainly related to accrued expenses and
deferred tax. Goodwill is mainly attributable to commercial and
operational future expected synergies, driven from cross-selling,
network optimisations, and improved productivity.
From the acquisition date to 30 June 2022, Senator International
contributed with a revenue of USD 143m and an insignificant net
profit. Had the acquisition occurred on 1 January 2022, the impact
on the Group’s revenue would have been USD 997m and a net profit
of USD 74m. Acquisition-related costs of USD 9m are recognised as
operating costs in the income statement of the Logistics & Services
segment, and in operating cash flow in the statement of cash flow.
The accounting for the business combination is considered provi-
sional as per 30 June 2022, as valuation of intangible assets is not
yet finalised.
Other
Grindrod Intermodal Group (Logistics & Services)
On 15 November 2021, it was announced that the Group will partner
with Grindrod Intermodal Group. The Group will have a controlling
interest of 51%. The Grindrod Intermodal Group is a well-known and
trusted partner in South Africa that offers a range of logistics and
services offerings. The estimated enterprise value is USD 13m.
The acquisition is expected to close during Q4 2022.
LF Logistics Holdings Limited (Logistics & Services)
On 22 December 2021, it was announced that the Group intends to
acquire 100% of the shares in LF Logistics Holdings Limited, a leading
omnichannel fulfilment contract logistics company in Asia Pacific. The
acquisition will further strengthen A.P. Moller - Maersk’s capabilities
as an integrated container logistics company, offering global end-
to-end supply chain solutions to its customers. The estimated enter-
prise value is USD 3.6bn. In addition to the enterprise value, an earn-
out with a total value of up to USD 160m related to future financial
performance has been agreed as part of the transaction.
The acquisition is subject to regulatory approvals and the transaction
is expected to close during Q3 2022.
Note 3 Acquisitions of subsidiaries
Acquisitions during Q
Pilot Senator
International
Other Total
Fair value at time of acquisition
Intangible assets
Property plant and equipment -
Financial assets -
Current assets -
Liabilities -
Net assets acquired - -
AP Møller - Mærsk A/S’ share
Goodwill
Purchase price
Contingent consideration assumed - - - -
Contingent consideration paid - - - -
Other adjustments - - -
Cash and bank balances assumed - - - -
Cash flow used for acquisition of subsidiaries and activities
Financials I Interim consolidated financial statements Q2 2022
28
AMOUNTS IN USD MILLION A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022
The details of the income statement impact are as follows:
Operating segment Impacted area Q Q H
Ocean Impairments of containers write-down of receivables provisions - -
Logistics & Services Impairments of warehouses write-down of receivables provisions - -
Terminals Impairments of investment in joint venture - - -
Towage & Maritime Services Impairments of tugboats - - -
Total income statement impact - -
Note 5 Accounting policies, judgements and significant estimates
The total commitment across segments is USD 4.2bn (USD 1.9bn),
mainly related to investments for new methanol container vessels,
wind installation vessels, tugs, aircraft and commitments
towards terminal concession grantors.
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 finan-
cial reporting of listed companies.
The accounting policies, judgements and significant estimates are
consistent with those applied in the Annual Report 2021.
Change to reportable segments
As part of the refinement of A.P. Moller - Maersk’s segment struc-
ture, changes to the segment structure were made with effect from
1 January 2022. The changes involve moving the Svitzer activity from
Terminals & Towage to Manufacturing & Others. In addition, the Man-
ufacturing & Others segment has been renamed Towage & Maritime
Services, while the Terminals & Towage segment has been renamed
Terminals. Comparison figures for note 1 have been restated as if the
change had been implemented in 2021. The reportable segments are
disclosed below.
The allocation of business activities into segments reflects
A.P. Moller - Maersk’s character as an integrated container logistics
business and is in line with the internal management reporting.
Russia/Ukraine impact
Due to the Russian invasion of Ukraine on 24 February 2022,
A.P. Moller - Maersk decided to withdraw from doing business in
Russia during Q1 2022.
As a result, the recoverable amounts of assets in Russia and Ukraine
have been reassessed, impairment losses have been recognised,
and provisions have been made to cover costs relating to the with-
drawal from operations. This negatively impacted the Q1 2022 EBIT
by USD 718m.
As a consequence of the ongoing process to minimise the financial
impact, the Q2 2022 EBIT was positively impacted by USD 94m,
mainly related to reversal of impairment losses of USD 45m and
reversal of provisions of USD 39m. This mainly as a result of success-
fully evacuating more containers than previously anticipated.
The H1 2022 EBIT was negatively impacted by USD 624m, of which
USD 585m was impairment losses and USD 39m was operating costs.
Warehouses in the Logistics & Services segment, the GPI investment
in the Terminals segment and tugboats in the Towage & Maritime
Services segment have been fully written down.
The impact has been classified as non-cash items in the cash flow
statement.
Note 4 Commitments
The reportable segments are as follows:
Ocean Global container shipping activities, including strategic transhipment hubs and sale of bunker oil
Logistics & Services Integrated transportation, fulfilment and management solutions, including landside and air transportation
as well as warehousing and supply chain management offerings
Terminals Gateway terminal activities
Towage & Maritime Services Towage and related marine activities, production of reefer containers, providing offshore supply service and
trading and other businesses
Financials I Interim consolidated financial statements Q2 2022
29
AMOUNTS IN USD MILLION A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022
Income statement 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 before financial items (EBIT)
Financial items net - - - - - -
Profit before tax
Tax
Profit for the period
AP Møller - Mærsk A/S’ share
Underlying profit
Balance sheet
Total assets
Total equity
Invested capital
Net interest-bearing debt - - -
Cash flow statement
Cash flow from operating activities
Capital lease instalments – repayments of lease liabilities
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 is computed as the relevant performance measure adjusted for the net gains/losses from the sale of non-current assets, etc.
and net impairment losses as well as transaction, restructuring and integration costs related to major transactions. The adjustments include
A.P. Moller - Maersk’s share of mentioned items in joint ventures and associated companies and, when applicable, the adjustments are net of tax.
Additional information
Quarterly summary
Additional information I Quarterly summary
30
AMOUNTS IN USD MILLION A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022
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 divestments.
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 con tinuing 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, Deprecia-
tion 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 equipment,
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 operating assets less segment
operating liabilities, including invest-
ments and deferred taxes related to the
operation.
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
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.
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 treasury
shares – multiplied by the end-of-quarter
price quoted by Nasdaq Copenhagen.
Underlying
Underlying is computed as the relevant
performance measure adjusted for the
net gains/losses from the sale of non-
current assets, etc. and net impairment
losses as well as transaction, restructur-
ing and integration costs related to major
transactions. The adjustments include
A.P. Moller - Maersk’s share of mentioned
items in joint ventures and associated
companies and when applicable, the
adjustments are net of tax.
VSA
Vessel Sharing Agreement is usually
reached between various partners within
a shipping consortium who agree to oper-
ate a liner service along a specified route
using a specified number of vessels.
Technical terms, abbreviations and definitions of key figures and financial ratios.
Definition of terms
Additional information I Definition of terms
31
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022
Editors
Finn Glismand
Henrik Jensen
Sarah Spray
Design and layout
e-Types
Produced in Denmark 2022
Board of Directors
Robert Mærsk Uggla, Chair
Marc Engel, Vice Chair
Bernard L. Bot
Marika Fredriksson
Arne Karlsson
Thomas Lindegaard Madsen
Amparo Moraleda
Julija Voitekute
Executive Board
Søren Skou, Chief Executive Officer (CEO)
Patrick Jany (CFO)
Vincent Clerc
Navneet Kapoor
Henriette Hallberg Thygesen
Audit Committee
Arne Karlsson, Chair
Bernard L. Bot
Marika Fredriksson
Amparo Moraleda
Remuneration Committee
Marc Engel, Chair
Amparo Moraleda
Robert Mærsk Uggla
Nomination Committee
Robert Mærsk Uggla, Chair
Marc Engel
Transformation & Innovation Committee
Marc Engel, Chair
Amparo Moraleda
Robert Mærsk Uggla
Colophon
Colophon
32
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 3 AUGUST 2022