Management review
Highlights Q1 2023 ............................................................... 03
Summary financial information
................................................. 04
Review Q1 2023
.................................................................. 05
– Financial results reflect market normalisation
............................. 05
– ESG update
.................................................................... 06
Financial guidance and targets
.................................................. 07
Market insights
.................................................................... 08
Segments
.......................................................................... 09
– Ocean
.......................................................................... 09
– Logistics & Services
........................................................... 10
– Terminals
...................................................................... 12
– Towage & Maritime Services
................................................. 13
Financials
Condensed income statement ................................................... 15
Condensed statement of comprehensive income
............................. 15
Condensed balance sheet at 31March
......................................... 16
Condensed cash flow statement
................................................ 17
Condensed statement of changes in equity
.................................... 18
Notes
............................................................................... 19
Management’s statement
........................................................ 23
Quarterly summary
............................................................... 24
Definition of terms
................................................................ 25
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 110,000+ employees, 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 confident 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
Contacts for further information
Vincent Clerc
CEO
Patrick Jany
CFO
Investors
Sarah Spray
Head of Investor Relations
Tel. +45 3363 3106
Media
Jesper Lov
Head of Media Relations
Tel. +45 3363 1901
Webcast and dial-in information
A webcast relating to the Q1 2023
Interim Report will be held on 4 May
2023 at 11.00 (CET). Dial-in infor mation
on investor.maersk.com.
Presentation material for the webcast
will be available on the same page.
The Interim Report for Q1 2023 of
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 disclo-
sure 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.
Financial calendar
04 August
Interim Report Q2 2023
03 November
Interim Report Q3 2023
08 February 2024
Annual Report 2023
Produced in Denmark
2
A.P. MOLLER - MAERSK INTERIM REPORT Q1 | 4 MAY 2023
Management review
As expected, the trends observed in Q4 2022 continued in Q1 2023, with normalisation in Ocean
and Air being accentuated by a strong destocking affecting volumes across all segments.
Results continued to come off their Q3 2022 peak with a decrease in revenue year-over-year
of 26% to USD 14.2bn (USD 19.3bn), an EBITDA of USD 4.0bn (USD 9.1bn) and an EBIT of USD
2.3bn (USD 7.3bn).
A total distribution of cash to shareholders of USD 10.1bn took place during Q1 2023 through
dividends paid of USD 9.4bn and share buy-backs of USD 718m.
Highlights Q1 2023
For A.P. Moller - Maersk, Q1 was solidly in line with expectations. The Ocean contract negotiation season is proceeding in line
with expectations, and A.P. Moller - Maersk is pleased to see that its customers continue to see value in having a close contractual
relationship with the Group. Given current headwinds, the Group has proactively managed costs and aims to continue this effort
in coming quarters.
Guidance for 2023 continues to be based on the expectation of a muted 2023 global GDP growth and that volume declines
will stabilise by the end of H1, leading to a more balanced demand environment. In this normalisation path, Q1 is expected to be
the best quarter of the financial year.
Free cash flow of USD 4.2bn (USD 6.0bn) declined due to decreased cash flow from operating activities and higher capital leases,
slightly offset by higher financial income and lower capital expenditures.
A.P. Moller - Maersk entered into an agreement to divest Maersk Supply Service to A.P. Moller Holding with the closing expected
to take place in Q2 2023.
Highlights Q1 USD million
Revenue EBITDA EBIT CAPEX
2023 2022 2023 2022 2023 2022 2023 2022
Ocean 9,873 15,570 3,352 8,214 1,969 7,072 538 1,156
Logistics & Services 3,471 2,879 316 319 135 183 128 34
Terminals 876 1,131 291 456 207 -73 111 80
Towage & Maritime Services 602 555 83 79 85 69 64 81
Unallocated activities, eliminations, etc. -615 -843 -73 16 -70 22 -3 3
A.P. Moller - Maersk consolidated 14,207 19,292 3,969 9,084 2,326 7,273 838 1,354
Management review I Highlights Q1 2023
3
A.P. MOLLER - MAERSK INTERIM REPORT Q1 | 4 MAY 2023
Q1 Q1 12M
Income statement 2023 2022 2022
Revenue 14,207 19,292 81,529
Profit before depreciation, amortisation and impairment losses, etc. (EBITDA) 3,969 9,084 36,813
Depreciation, amortisation and impairment losses, net 1,880 1,507 6,186
Gain on sale of non-current assets, etc., net 140 27 101
Share of profit/loss in joint ventures and associated companies 97 -331 132
Profit before financial items (EBIT) 2,326 7,273 30,860
Financial items, net 190 -294 -629
Profit before tax 2,516 6,979 30,231
Tax 193 171 910
Profit for the period 2,323 6,808 29,321
A.P. Møller - Mærsk A/S ’ share 2,284 6,776 29,198
Underlying profit
1
2,561 7,469 29,703
Balance sheet
Total assets 85,490 73,031 93,680
Total equity 55,833 44,940 65,032
Invested capital 50,322 45,167 52,410
Net interest-bearing debt -7,002 -689 -12,632
Cash flow statement
Cash flow from operating activities 5,334 8,221 34,476
Capital lease instalments – repayments of lease liabilities 825 646 3,080
Gross capital expenditure, excl. acquisitions and divestments (CAPEX) 838 1,354 4,163
Cash flow from financing activities -10,726 -7,520 -14,135
Free cash flow 4,224 6,014 27,107
Financial ratios
Revenue growth -26.4% 55.1% 32.0%
EBITDA margin 27.9% 47.1% 45.2%
EBIT margin 16.4% 37.7% 37.9%
Cash conversion 134% 90% 94%
Return on invested capital after tax (ROIC) (last twelve months) 49.1% 53.6% 60.4%
Equity ratio 65.3% 61.5% 69.4%
Underlying ROIC
1
(last twelve months) 49.0% 55.4% 61.2%
Underlying EBITDA
1
4,037 9,186 36,843
Underlying EBITDA margin
1
28.4% 47.6% 45.2%
Underlying EBIT
1
2,563 7,937 31,244
Underlying EBIT margin
1
18.0% 41.1% 38.3%
Stock market ratios
Earnings per share, USD 131 364 1,600
Diluted earnings per share, USD 131 363 1,595
Cash flow from operating activities per share, USD 306 442 1,889
Share price (B share), end of period, DKK 12,445 20,370 15,620
Share price (B share), end of period, USD 1,816 3,040 2,242
Total market capitalisation, end of period, USD 30,957 55,662 39,135
1 Definition of terms. See page 25.
Summary financial information
AMOUNTS IN USD MILLION
Management review I Summary financial information
4
A.P. MOLLER - MAERSK INTERIM REPORT Q1 | 4 MAY 2023
Financial results reflect market normalisation
A.P. Moller - Maersk’s Q1 2023 financial results reflect the normali-
sation of global demand and supply, characterised by the inventory
corrections seen in Western economies over the past two quarters.
This resulted in significantly lower profitability of the three main
businesses compared to Q1 2022, particularly in Ocean, where the
profit was lower due to lower volumes and freight rates.
Revenue increased in Logistics & Services driven by the acquisitions
made in 2022, however profit decreased due to lower volumes
combined with an increased cost base as Logistics & Services
continues to scale for growth. Revenue decreased in Terminals
as volumes declined and the release of global port congestion
led to lower storage income, particularly in the USA. In addition,
Terminals’ profit was lower when adjusting for the impairment
of Global Port Investment (GPI) in Q1 2022.
Revenue decreased by USD 5.1bn to USD 14.2bn (USD 19.3bn), with
a decrease in Ocean of USD 5.7bn, while Terminals saw a decrease
of USD 255m, slightly offset by an increase of USD 592m in
Logistics & Services.
Review Q1 2023
EBITDA decreased to USD 4.0bn (USD 9.1bn), with a decrease in
Ocean of USD 4.9bn due to lower revenue, a decrease in Terminals
of USD 165m, while EBITDA was on par in Logistics & Services,
driven by the consolidation of acquisitions.
Ocean
(2022: 8.2bn)
Logistics & Services
(2022: 319m)
Terminals
(2022: 456m)
3.4bn 316m 291m
EBIT decreased to USD 2.3bn (USD 7.3bn), with an EBIT margin
of 16.4% (37.7%), negatively impacted by the decreased EBITDA,
specifically in Logistics & Services, due to higher depreciation
and amortisation from acquisitions with an EBIT margin of 3.9%
(6.4%). When adjusting for the impairment of the Russian GPI
participation in Q1 2022, EBIT decreased in Terminals by USD
205m due to lower volumes and lower storage income.
Ocean
(2022: 7.1bn)
Logistics & Services
(2022: 183m)
Terminals
(2022: -73m)
2.0bn 135m 207m
Comparison of the financials
From 2020 to 2022, the supply side of the logistics industry was
disrupted by COVID-19, which, in addition to the severe impact on
human lives when discovered late 2019, had a significant impact
on world trade.
The demand for logistics services significantly increased, and, in turn,
freight rates saw all-time highs due to capacity shortages, where con-
tainer availability and air capacity remained tight, and wait times for
vessels outside of ports remained lengthy given the bottlenecks in
landside transportation and warehousing.
As a result of this exceptional market, freight rates peaked in Q3 2022,
which was the 16th quarter in a row with year-on-year earnings growth
for A.P. Moller - Maersk. After that, the high demand eventually started
to normalise as congestions eased, and consumer demand declined
leading to an inventory overhang, the correction of which resulted in
rapid and steep declines in shipped volumes starting in late Q3 2022.
A more normal business environment is expected for H2 2023. The
below table with selected KPIs for Q1 in the years 2019-2023 brings
perspective by comparing with 2019, a more normal year.
Selected KPIs for Q1 2019-2023 USD million
Q1 Q1 Q1 Q1 Q1
Income statement 2023 2022 2021 2020 2019
Revenue 14,207 19,292 12,439 9,571 9,540
Ocean 9,873 15,570 9,478 7,230 7,015
Logistics & Services 3,471 2,879 2,045 1,442 1,521
Terminals 876 1,131 915 740 837
Profit before depreciation, amortisation and impairment losses, etc. (EBITDA) 3,969 9,084 4,039 1,521 1,236
Profit before financial items (EBIT) 2,326 7,273 3,097 552 230
Profit for the period 2,323 6,808 2,717 209 -656
Cash flow statement
Cash flow from operating activities 5,340 8,221 3,433 1,216 1,482
Gross capital expenditure, excl. acquisitions and divestments (CAPEX) 838 1,354 329 310 778
Free cash flow 4,230 6,014 2,372 445 324
Financial ratios
Revenue growth -26.4% 55.1% 30.0% 0.3% 2.5%
EBITDA margin 27.9% 47.1% 32.5% 15.9% 13.0%
EBIT margin 16.4% 37.7% 24.9% 5.8% 2.4%
Management review I Review Q1 2023
5
A.P. MOLLER - MAERSK INTERIM REPORT Q1 | 4 MAY 2023
Financial items, net, amounted to an income of USD 190m (loss
of USD 294m), as the increase in interest income and derivative
gains on dividend and share buy-back hedges were only partly
offset by interest expenses.
Tax increased to USD 193m (USD 171m), primarily due to increased
taxable income on financial items.
The underlying profit of USD 2.6bn (USD 7.5bn) was adjusted for
restructuring provisions of USD 76m and impairment of brands
of USD 298m as previously communicated.
Cash flow from operating activities of USD 5.3bn (USD 8.2bn)
was driven by the EBITDA of USD 4.0bn and the decrease in net
working capital of USD 1.2bn due to a decrease in trade receiva-
bles, translating into a strong cash conversion of 134% (90%).
Gross capital expenditure (CAPEX) of USD 838m (USD 1.4bn)
was primarily driven by lower investments in Ocean.
Free cash flow of USD 4.2bn (USD 6.0bn) was impacted by the
decreased cash flow from operating activities and higher capi-
tal leases, slightly offset by higher financial income and lower
capital expenditures.
Capital structure and credit rating
Net interest-bearing debt changed to a net cash position of
USD 7.0bn (a net cash position of USD 12.6bn at year-end 2022),
as free cash flow of USD 4.2bn has partly offset share buy-backs
of USD 718m, dividends of USD 9.4bn and acquisition of com-
panies of USD 126m. Further, lease liabilities decreased by USD
477m. Excluding lease liabilities, the Group had a net cash posi-
tion of USD 18.1bn (USD 24.2bn at year-end 2022).
A.P. Moller - Maersk remains investment grade-rated and holds
a Baa2 (positive outlook) from Moody’s and a BBB+ (stable)
rating from Standard & Poor’s.
The liquidity reserve decreased to USD 27.1bn (USD 33.3bn at
year-end 2022) and was composed of cash and bank balances
(excluding restricted cash), term deposits and securities of USD
21.1bn (USD 27.3bn at year-end 2022) and undrawn revolving
credit facilities of USD 6.0bn (USD 6.0bn at year-end 2022).
The dividend of DKK 4,300 per A.P. Møller - Mærsk A/S share of
nominally DKK 1,000 (USD 10.9bn), declared at the Annual General
Meeting on 28 March 2023, was paid on 31 March 2023. With-
holding tax of USD 1.5bn will be paid in Q2 2023.
Share buy-back
During Q1, A.P. Moller - Maersk bought back 72,068 A shares and
268,698 B shares, worth DKK 5.1bn (approximately USD 745m),
and no shares were bought for the long-term incentive pro-
gramme. At 31 March 2023, A.P. Moller - Maersk owns a total
of 273,785 A shares and 1,154,381 B shares as treasury shares,
corresponding to 7.63% of the share capital.
The Annual General Meeting has authorised the Board of Directors
to allow the company to acquire own shares to the extent that
the nominal value of the company’s total holding of own shares
at no time exceeds 15% of the company’s share capital.
At the Annual General Meeting of A.P. Møller - Mærsk A/S on
28 March 2023, the shareholders decided on the cancellation of
treasury shares whereby the share capital would be decreased
by nominally DKK 1,137,446,000 in total divided into 227,390
A shares and 910,056 B shares of DKK 1,000. The cancellation
is expected to be completed during Q2 2023.
ESG update
For a full overview of A.P. Moller - Maersk’s ESG strategy and
roadmap, please see www.maersk.com/sustainability
Progress on decarbonisation
In March 2023, A.P. Moller - Maersk unveiled the design of its
first green fuel-powered vessel to be delivered later in the year,
seven years ahead of originally planned, reflecting the com-
pany’s commitment to lead the way towards a sustainable ship-
ping industry. The current order book for green vessels totals
19, which, when fully operational on green fuels, are expected
to reduce greenhouse gas emissions by 2.3 million tonnes
per year. A.P. Moller - Maersk continues to enter partnerships
to ensure sufficient supplies of green methanol and to push
climate- neutral shipping forward, including the recent signing
of a Memorandum of Understanding with Shanghai Port for a
methanol marine fuel project. As part of these efforts, Maersk
Growth, the company’s venture arm, has also invested in tech-
nologies through C1 Green Chemicals to promote large-scale
production of green methanol.
FuelEU Maritime deal welcomed
A.P. Moller - Maersk welcomes the agreement on FuelEU
Maritime, a first-of-its-kind piece of legislation to accelerate
green fuel adoption and decarbonisation of shipping already in
this decade. Notably, FuelEU combines high ambitions with a
holistic approach to the climate crisis, covering emission over
the entire ‘well to wake’ process and including greenhouse gas-
ses such as methane and nitrous oxide. Also, FuelEU takes a
fleet wise approach, rewarding investments in completely green
ships, instead of requiring an incremental, smaller reduction on
each individual ship. This will secure that the necessary invest-
ments are made where it makes commercial and climate sense.
Local legislation such as FuelEU Maritime is supportive of
cost-competitive renewable fuel development at scale and
establishes an ambitious global rule framework and rigorous
enforcement are essential to ensure a level playing field.
A.P. Moller - Maersk hopes that FuelEU Maritime can be a launch-
pad for global action and the concept of a global fuel standard,
which is on the IMO’s table at MEPC80 in July, where a climate
strategy to decarbonise shipping globally is expected.
Management review I Review Q1 2023
6
A.P. MOLLER - MAERSK INTERIM REPORT Q1 | 4 MAY 2023
Financial guidance and targets
Financial guidance for 2023
Guidance remains unchanged and is still based on the expec-
tation that inventory correction will be complete by the end
of H1, leading to a more balanced demand environment, that
2023 global GDP growth remains muted, and that the global
ocean container market will grow in the range of -2.5% to +0.5%.
Ocean expects to grow in line with market.
In Q1 2023, A.P. Moller - Maersk recognised USD 374m of the
previously communicated USD 450m impairment and restruc-
turing charge for the A.P. Moller - Maersk brands.
CAPEX guidance, maintained 2022-2023 CAPEX guidance 2023-2024
9.0-10.0 10.0-11.0
USDbn
EBITDA Underlying EBIT Underlying Free cash flow at least
8.0-11.0 2.0-5.0 2.0
Sensitivity guidance
Financial performance for A.P. Moller - Maersk for 2023 depends on
several factors subject to uncertainties related to the given uncertain
macro economic conditions, bunker fuel prices and freight rates.
All else being equal, the sensitivities for 2023 for four key assumptions
are listed below:
Factors Change Effect on EBIT
(Rest of 2023)
Container freight rate +/- 100 USD/FFE +/- USD 0.9bn
Container freight volume +/- 100,000 FFE +/- USD 0.1bn
Bunker price
(net of expected BAF coverage) +/- 100 USD/tonne +/- USD 0.3bn
Foreign exchange rate
(net of hedges) +/- 10% change in USD +/- USD 0.2bn
Roadmap towards 2025
The mid-term financial targets were introduced at the Capital
Markets Day in May 2021 and relate to the transformation
towards becoming the integrator of container logistics.
Consolidated
The return on invested capital (ROIC) (last twelve months) was
49.1%, well above the target of above 7.5% every year under
normalised conditions, 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 dividends based on a pay-out
ratio of 30-50% of underlying net profit and distributing excess
cash to shareholders through share buy-backs and special divi-
dends in that order.
A.P. Moller - Maersk’s share buy-back programme, originally
planned for USD 5.0bn over 2022-2023, has been progressively
extended to USD 12.0bn over 2022-2025 or USD 3.0bn annually.
Of the planned share buy-back of DKK 39.3bn (around USD 6bn)
for the years 2022-2023, A.P. Moller - Maersk has bought back
DKK 27.7bn (USD 3.9bn) as of Q1 2023.
Ocean
Ocean delivered an EBIT margin of 41.0% over the last twelve
months, well above the target of 6% under normalised condi-
tions. Total average operated fleet capacity is within the range
of 4.1-4.3m TEU.
EBIT margin Execute with the existing fleet size
Target:
>6%
41.0%
Target:
4.1-4.3 TEUm
4.3 TEUm
Logistics & Services
For Logistics & Services, organic growth of 11% over the last
twelve months was above the target of 10%, of which 74% was
from the top 200 customers, above the target of 50%. The EBIT
margin for the last twelve months was 5.1% versus the target of
above 6%.
Organic growth LTM Top 200 customers LTM EBIT LTM
Target:
>10%
11%
Target:
>50%
74%
Target:
>6%
5.1%
Terminals
The return on invested capital (ROIC) (LTM) was 11.9% for Terminals,
exceeding the expectation of above 9% towards 2025.
ROIC
Target:
>9%
11.9%
Forward-looking statements
The Interim Report contains forward-looking statements.
Such statements are subject to risks and uncertainties as several
factors, many of which are beyond A.P. Moller - Maersk’s control,
may cause the actual development and results to differ
materially from expectations contained in the Interim Report.
Management review I Financial guidance and targets
7
A.P. MOLLER - MAERSK INTERIM REPORT Q1 | 4 MAY 2023
Major economies performed better than anticipated at the start
of 2023 thanks to falling energy prices, a warm winter, China
reopening and the carryover effect from Q4 2022 growth.
The Composite Purchasing Managers Index (PMI) pointed to a
strengthening of economic activity in Q1 in Europe. The US econ-
omy held up in Q4 2022 on robust consumer demand, which
strengthened in the first months of 2023, alongside improv-
ing PMI in February and March. Economic activity rebounded in
China once the zero-COVID policy was abandoned. However, in
all major economies, strengths are concentrated in the service
sector. Short-term indicators point to a contraction in global
manufacturing activity due to a combination of high inventories
and low confidence in future consumer demand.
Inflation and monetary policy tightening remain important
issues in Mature Economies. Headline inflation peaked in both
the USA and the Euro Area with March data, 5% and 6.9% respec-
tively, yet bringing down core inflation, i.e. inflation excluding
food and energy, is proving to be a challenge as price increases
are now broad-based. Strong labour markets supported real
goods consumption in the USA, which saw an increase of 1% y/y
in the first two months of the year. But high inflation continues
to create a loss in purchasing power and a decline in consump-
tion once savings are exhausted is a significant risk. In the Euro
Area, consumers already started to adjust consumption in H2 of
2022. Retail sales growth was negative in January and February.
During the 2020-22 period, retailers had to manage major
swings in demand for goods, while having a hard time restock-
ing. By mid-2022, when both goods demand and port conges-
tions started to normalise, recession fears emerged, leaving
many businesses with the impression of having overstocked
compared to expected sales. The combination of a weak con-
sumer demand outlook with elevated inventories to sales ratios
put trade volumes under pressure.
Very global and very cyclical, demand for Ocean and Air Freight is
most exposed to swings in sentiment, weak manufacturing pro-
duction and an inventory correction. Global container demand
was negative in Q1, in a range between -7% and -10%, bringing
volumes in the range of 19 million FFEs. Imports into Europe and
North America were particularly weak, especially from Far-East
Asia. These were mitigated by imports into Africa, West Central
Asia and Latin America. The deterioration in global volumes is
particularly visible for Retail, Lifestyle and Technology goods.
Market insights
On the supply side of the Ocean market, the increasing stream
of vessel deliveries and still limited scrapping activity is push-
ing up fleet growth. Moreover, easing supply chain bottlenecks
and weaker demand on long-haul trades is releasing capacity
to the market. Although some of the available capacity is being
absorbed by increased idling, slower steaming and cancelled
sailings, the gap between demand and supply widened in H2
2022 and Q1 2023. Spot rates (SCFI) approached pre-pandemic
levels. The SCFI average, excluding Intra-Asia trade and bunker,
was 753 USD/TEU in Q1.
The case is similar for Air freight with global tonnage down 16%
in Q4 2022 and with January data pointing to another double-
digit decline in Q1. Two verticals are leading this decline: chemi-
cal and lifestyle. By region, North America saw CTK volumes fall
an average of 6% during January and February, while in Asia-
Pacific and Europe volumes were down 13% and 18% respec-
tively (IATA). At the same time, the return of passenger flights
expanded the capacity further, widening the gap between demand
and supply, with available ACTKs up 3.9% in January and 8.6% in
February, according to IATA.
Road freight demand in the US has been mixed, with a flat Q1
according to the CASS transportation index, but overall has been
on a downward trend since September highs. Warehousing
started to cool in the USA during Q4 as inventory levels began
to fall and importers reduced orders. The market is, however,
adjusting downwards from record peaks, and vacancy rates are
still close to historic lows by 3.6% in Q1 according to Cushman
& Wakefield.
Despite a better-than-expected start to the year, the out-
look for the economy remains weak, with global GDP growth
expected to stay close to 2%. Moreover, risks are skewed to the
downside amid sticky core inflation, turmoil in the banking sec-
tor, and confrontational geopolitics. One year after the Russian
invasion of Ukraine, there is no sign of the war ending, while
US-China relations are tense, causing reconsideration of supply
chains structures. In this challenging environment, global con-
tainer demand is expected to be between -2.5% and +0.5% in
2023. Similarly, demand for air freight is expected to be flat at
best. Vacancy rates for warehousing are expected to deteriorate
in the US and Europe in 2023, however they will remain close
to 2022 lows.
Management review I Market insights
8
A.P. MOLLER - MAERSK INTERIM REPORT Q1 | 4 MAY 2023
Ocean
Profitability for Q1 was significantly lower compared to Q1
2022, primarily due to lower freight rates and volumes as
a result of continued inventory corrections, ease of con-
gestions and market concerns over global financial stabil-
ity, causing a weakened economic environment. Both Asia-
Europe and Transpacific markets experienced significant
pressure during Q1, driving an overall decrease of 9.4% in
loaded volumes compared to Q1 2022.
The average loaded freight rates decreased by 37% compared
to Q1 2022 and 26% compared to Q4 2022, driven by contract
and shipment rates on routes from Asia to Europe and to North
America. The unit cost at fixed bunker increased by 1.0% com-
pared to Q1 2022, driven by a decrease in volumes, partially
offset by a decrease in operating costs. Utilisation at 88% of
offered capacity was five percentage points lower compared
to Q1 2022 due to lower volumes, but five percentage points
higher compared to Q4 2022. As congestions have dissipated,
schedule reliability continued to see improvement in Q1 2023.
In Q1 2022, it was announced that A.P. Moller - Maersk was wind-
ing down operations in Russia, resulting in a complete exit from
the country. Consequently, impairment losses and provisions
made to cover the costs of withdrawing from operations were
recognised in Q1 2022. All services to and from Russia have since
been discontinued.
• Ocean continues to focus on long-term partnerships with
key customers to aid volatility in supply chains. The share of
contract volumes at 67% was at par with Q1 2022.
• Maersk Spot remains an attractive digitalised product offer-
ing and has reached an 83% conversion rate in Q1 2023, on par
with Q1 2022 and a decrease of three percentage points com-
pared to Q4 2022 (86%). The basis of Spot conversion meas-
urement has changed from a proportion of total shipment
volumes to a proportion of convertible shipment volumes as
to align with Ocean performance.
Ocean highlights USD million
Q1
2023
Q1
2022
12M
2022
Freight revenue 8,431 13,560 56,499
Other revenue, including hubs 1,442 2,010 7,800
Revenue 9,873 15,570 64,299
Container handling costs 2,262 2,544 10,214
Bunker costs 1,507 1,650 8,077
Network costs, excluding bunker costs 1,689 1,961 7,516
Selling, General & Administration (SG&A) costs 770 677 2,947
Cost of goods sold and other operational costs 337 432 1,835
Total operating costs 6,565 7,264 30,589
Other income/costs, net 44 -92 60
Profit before depreciation, amortisation and impairment losses, etc. (EBITDA) 3,352 8,214 33,770
EBITDA margin 34.0% 52.8% 52.5%
Profit before financial items (EBIT) 1,969 7,072 29,149
EBIT margin 19.9% 45.4% 45.3%
Invested capital 29,812 31,805 32,368
Gross capital expenditure, excl. acquisitions and divestments (CAPEX) 538 1,156 2,620
Operational and financial metrics
Loaded volumes (FFE in ’000) 2,724 3,006 11,924
Loaded freight rate (USD per FFE) 2,871 4,553 4,628
Unit cost, fixed bunker (USD per FFE incl. VSA income)
1
2,552 2,527 2,553
Bunker price, average (USD per tonne) 625 611 763
Bunker consumption (tonne in ’000) 2,412 2,699 10,579
Average operated fleet capacity (TEU in ’000) 4,217 4,290 4,285
Fleet owned (end of period) 318 318 318
Fleet chartered (end of period) 373 423 389
1 The Q1 2022 fixed bunker price has been restated to 550 USD/tonne from 450 USD/tonne in Q1 2023.
Segments
Management review I Segments I Ocean
9
A.P. MOLLER - MAERSK INTERIM REPORT Q1 | 4 MAY 2023
Financial and operational performance
Revenue decreased by USD 5.7bn to USD 9.9bn (USD 15.6bn),
driven by a decrease in freight revenue of 38% with loaded
freight rates down by 37% and loaded volumes down by 9.4%.
EBITDA decreased by USD 4.9bn to USD 3.4bn (USD 8.2bn) due
to lower revenue. The EBITDA margin decreased by 18.8 percent-
age points to 34.0% (52.8%). Similarly, EBIT decreased by USD
5.1bn to USD 2.0bn (USD 7.1bn).
Loaded volumes decreased by 9.4% to 2,724k FFE (3,006k FFE)
due to weaker demand, for headhaul trades on Asia-Europe
and Transpacific markets. Loaded volumes decreased by 83k
FFE or 3.0% compared to Q4 2022.
The average loaded freight rate decreased by 37% to 2,871 USD/
FFE compared to Q1 2022 (4,553 USD/FFE) and 26% compared to
Q4 2022 (3,869 USD/FFE), driven by rate decline in Asia-Europe
and Transpacific trades.
Total operating costs were 9.6% lower at USD 6.6bn (USD 7.3bn),
driven by lower network costs excluding bunker costs and lower
container handling costs, which decreased by 14% and 11%,
respectively, compared to Q1 2022, offset by an increase in SG&A
costs of 14%, related to restructuring due to the rebranding.
Adjusting for the positive impact of foreign exchange rates,
operating costs decreased by 8.0%.
Bunker costs decreased by 8.7% to USD 1.5bn (USD 1.7bn), driven
by a decrease in bunker consumption of 11%, partially offset
by a 2.3% increase in average bunker prices to 625 USD/tonne
(611 USD/tonne). Bunker efficiency decreased by 6.9% to 43.5 g/
TEU*NM (40.7 g/TEU*NM).
Unit cost at fixed bunker increased by 1.0% to 2,552 USD/FFE
(2,527 USD/FFE restated), driven by lower volumes, partially off-
set by a decrease in operating costs and the impact of Russia/
Ukraine in Q1 2022. Excluding the financial impact of Russia/
Ukraine in Q1 2022, unit cost at fixed bunker has increased by
2.9%, driven by lower volumes, partially offset by a decrease
in operating costs. Adjusting for the positive impact of foreign
exchange rates, unit costs at fixed bunker increased by 2.7%.
Loaded volumes FFE (’000)
Q1 2023 Q1 2022 Change Change %
East-West 1,254 1,433 -179 -12.5
North-South 881 904 -23 -2.5
Intra-regional 589 669 -80 -12.0
Total 2,724 3,006 -282 -9.4
Average freight rates USD/FFE
Q1 2023 Q1 2022 Change Change %
East-West 2,825 4,898 -2,073 -42.3
North-South 3,624 5,361 -1,737 -32.4
Intra-regional 2,019 2,896 -877 -30.3
Total 2,871 4,553 -1,682 -36.9
The average operated capacity of 4,217k TEU (4,290k TEU)
decreased by 1.7%. The current order book for carbon-neutral
vessels totals 19 at the end of Q1 2023, including one feeder
vessel expected to be delivered in Q4 2023. The fleet consisted
of 318 owned and 373 chartered vessels, of which 447k TEU or
11% of the fleet were idle (57 vessels).
Key initiatives in Q1
The 2M alliance between A.P. Moller - Maersk and MSC will ter-
minate from January 2025. Ocean will continue to focus on net-
work optimisation and efficiently delivering on the evolving
needs of Ocean customers, in terms of reliability, flexibility and
sustainability.
Ocean continues its focus on delivering the most reliable prod-
ucts to customers. Global congestions have reduced signifi-
cantly in recent months, which has allowed for an extensive
network review with the objective to reduce emissions and
improve reliability across services. A.P. Moller - Maersk was
best in industry for schedule reliability for Q1 and this remains
a key focus.
Logistics & Services
Logistics & Services’ revenue in Q1 continued to grow year-on-
year through acquisitions that strengthened the ability to offer
end-to-end logistics services to global clients. The underlying
business has been impacted by lower volumes and rates as a
result of a significant inventory correction due to weakening
consumer demand.
• New Maersk air freight service connecting Europe and China.
• Logistic & Services continues to scale for growth by expand-
ing new lanes and warehouses globally.
Financial and operational performance
Revenue increased by 21% to USD 3.5bn (USD 2.9bn), primarily
driven by the consolidation of acquisitions closed in 2022.
The 2022 acquisitions of Pilot, LF Logistics and Senator Interna-
tional and the 2023 acquisitions of Martin Bencher Group and
Grindrod Logistics are the main contributors to revenue growth
Fleet overview, end Q1 2023
Q1 2023 Q4 2022
TEU
Own container vessels 2,413 2,393
Chartered container vessels 1,753 1,828
Total fleet 4,166 4,221
Number of vessels
Own container vessels 318 318
Chartered container vessels 373 389
Total fleet 691 707
Management review I Segments I Ocean I Logistics & Services
10
A.P. MOLLER - MAERSK INTERIM REPORT Q1 | 4 MAY 2023
with revenue of USD 859m in Q1 2023. Organic revenue was 9%
lower versus Q1 2022, affected by lower overall volume and
decreased air freight rates.
In Q1 2023, one third of the 9% decline in the organic revenue
growth was driven by the top 200 customers.
EBITA decreased by USD 26m, primarily driven by Transported
by Maersk and Managed by Maersk. The above acquisitions
contributed to EBITA by USD 18m. Organic EBITA decreased
by USD 44m.
Changes to the service ‘by Maersk’ models
As the Integrator strategy continues to progress, product offer-
ings are refined to align with customer demand. This has led to
product reclassifications within the ‘by Maersk’ product families
as per footnote 1 to the Logistics & Services highlights table.
Managed by Maersk revenue increased by USD 22m to USD
568m (USD 546m), driven by inorganic revenue contribution
from the Martin Bencher integration. In Lead Logistics, higher
demand for booking services was offset by 18% lower volumes
from existing customers in supply chain management at
21,739kcbm (26,490kcbm).
Fulfilled by Maersk revenue increased by USD 569m to USD
1.4bn (USD 811m), primarily driven by inorganic growth in Con-
tract Logistics and e-commerce from LF Logistics and Pilot.
Transported by Maersk revenue of USD 1.5bn was at par with
last year, as the consolidation of the acquisition of Senator
International was offset by lower volumes in Air and LCL.
Gross profit increased by USD 277m to USD 1.0bn (USD 765m),
driven by Fulfilled by Maersk because of the integration of
LF Logistics and Pilot, and in Transported by Maersk with Land-
side Transportation as the main contributor to the growth.
EBITDA was USD 316m (USD 319m) and the EBITDA margin 9.1%
(11.1%).
EBIT was USD 135m (USD 183m) and the EBIT margin 3.9% (6.4%).
In Q1 2022, EBIT was impacted by the winding down of opera-
tions and divestment of all assets in Russia of USD 53m.
Logistics & Services highlights USD million
Q1
2023
Q1
2022
12M
2022
Revenue 3,471 2,879 14,423
Direct costs (third-party costs) 2,429 2,114 10,717
Gross profit 1,042 765 3,706
Direct Operating Expenses 465 297 1,482
Selling, General & Administration (SG&A) 261 149 846
Profit before depreciation, amortisation and impairment losses, etc. (EBITDA) 316 319 1,378
EBITDA margin 9.1% 11.1% 9.6%
Profit after depreciation and impairment losses, before amortisations (EBITA) 178 204 944
EBITA margin 5.1% 7.1% 6.5%
Profit before financial items (EBIT) 135 183 814
EBIT margin 3.9% 6.4% 5.6%
Invested capital 10,182 3,191 9,858
Gross capital expenditure, excl. acquisitions and divestments (CAPEX) 128 34 657
Operational and financial metrics
EBIT conversion (EBIT/gross profit - %) 13.0% 23.9% 22.0%
Managed by Maersk revenue
1
568 546 2,491
Fulfilled by Maersk revenue
1
1,380 811 4,916
Transported by Maersk revenue
1
1,523 1,522 7,016
Supply chain management volumes (cbm in ’000) 21,739 26,490 110,264
Intermodal volumes (FFE in ’000) 981 1,156 4,526
Air freight volumes (tonne in ’000) 56 31 211
1 The 2022 by Maersk revenue figures have been restated in order to reflect changes within the Logistics & Services model definition.
Organic/inorganic USD million
2022 Organic Inorganic 2023
Revenue 2,879 -267 859 3,471
Growth -9% 30%
EBITA 204 -44 18 178
Management review I Segments I Logistics & Services
11
A.P. MOLLER - MAERSK INTERIM REPORT Q1 | 4 MAY 2023
The profitability in Q1 2023 was at a lower level compared to Q1
2022 as a result of lower volumes combined with an increased
cost base as Logistics & Services continues to scale for growth.
Key initiatives in Q1
In Fulfilled by Maersk, the global warehousing footprint contin-
ued to expand organically, with 27 new warehouses opened in
Q1, adding 406k sqm. Compared to Q1 2022, 1,143k sqm or 36%
more capacity was added. Total organic capacity was 4.4m sqm
across 281 warehouses. The integration of LF Logistics contrib-
uted inorganically with 3,156k sqm (adding 8k sqm in Q1 2023)
across 192 warehouses. Total capacity was 7.5m sqm across 473
warehouses.
In Transported by Maersk, the Less than Container Load (LCL)
value proposition continues to be strengthened and more than
50 new lanes were added globally in Q1 2023, building a total
LCL network of over 450 own direct consolidation lanes versus
less than 300 in Q1 2022.
Terminals
The container industry has been facing headwinds in Q1 2023
with a significant reduction in global demand, which has in turn
helped ease global congestion. The impact on Terminals’ top line
is significant with volume decreasing by 9.5% (negative 5.9%
like-for-like, adjusted for exits) versus Q1 2022, and utilisation
decreasing by 10 percentage points to 66%, driven by a challeng-
ing market in North America. Accordingly, storage levels have
decreased significantly, dropping close to pre-pandemic levels.
Cost per move decreased year-on-year due to terminal mix and
measures taken to take out costs to match the lower volumes
and to protect the underlying margins.
• The book of business remains intact as the 5.9% like-for-like
volume drop is driven by a contracting global market, with
no net loss in commercial deals.
• With the addition of a new terminal project in Haiphong City,
Vietnam, Terminals is now involved in three new terminal
projects, including Rijeka, Croatia, and Suape, Brazil.
Terminals highlights USD million
Q1
2023
Q1
2022
12M
2022
Revenue 876 1,131 4,371
Concession fees (excl. capitalised lease expenses) 65 90 362
Labour costs (blue collar) 247 306 1,270
Other operational costs 147 148 638
Selling, General & Administration (SG&A) and other costs, etc. 126 131 566
Total operating costs 585 675 2,836
Profit before depreciation, amortisation and impairment losses, etc. (EBITDA) 291 456 1,535
EBITDA margin 33.2% 40.3% 35.1%
Profit/loss before financial items (EBIT) 207 -73 832
EBIT margin 23.6% -6.5% 19.0%
Invested capital 7,676 7,772 7,593
Gross capital expenditure, excl. acquisitions and divestments (CAPEX) 111 80 516
Operational and financial metrics
Volumes – financially consolidated (moves in ’000) 2,816 3,113 12,752
Ocean segment 984 1,098 4,558
External customers 1,832 2,015 8,194
Revenue per move – financially consolidated (USD) 309 361 341
Cost per move – financially consolidated (USD) 251 260 263
Result from joint ventures and associated companies (USDm) 50 -392 -46
Regional volume
1
Moves (’000)
Q1 2023 Q1 2022 Growth %
North America 613 843 -27.2
Latin America 546 581 -6.1
Europe, Russia and the Baltics 640 613 4.3
Africa 187 246 -23.8
Asia and Middle East 830 830 0.0
Total 2,816 3,113 -9.5
1 Financially consolidated.
Management review I Segments I Logistics & Services I Terminals
12
A.P. MOLLER - MAERSK INTERIM REPORT Q1 | 4 MAY 2023
Financial and operational performance
Revenue decreased by 23% to USD 876m (USD 1.1bn), driven by a
normalisation of storage revenue, particularly in North America,
and lower volume due to difficult market conditions. Volume de -
creased by 9.5% (negative 5.9% like-for-like) and utilisation de-
creased to 66% (76%), driven by lower demand in North America
with Europe, Latin America, Africa and Asia delivering flat or better
like-for-like volumes. Volume from the Ocean segment decreased
by 10% and volume from external customers by 9.1%. Revenue per
move decreased by 15% to USD 309 (USD 361), fully driven by lower
storage revenue as under lying tariffs were increased in accord-
ance with local inflation. Cost per move decreased by 3.4% to USD
251 (USD 260) due to positive terminal mix, foreign exchange rate
impacts and an ability to take out costs in accordance with lower
activity levels, more than offsetting inflation.
At fixed foreign exchange rates, volume mix and portfolio mix,
revenue per move decreased by 6.2% and cost per move in-
creased by 7.8%.
EBITDA decreased to USD 291m (USD 456m), driven by nor-
malising storage revenue and lower volumes, partly offset
by efforts to reduce costs resulting in an EBITDA margin of
33% (40%).
EBIT increased to positive USD 207m (negative USD 73) due to
the impairment of Global Port Investment (GPI) by USD 485m in
Q1 2022. Adjusted for the impairment, EBIT is down USD 205m,
driven by the lower storage revenue and lower results from
joint ventures.
ROIC (LTM Average) increased to 11.9% (7.1%), driven by the
impairment of GPI last year.
CAPEX increased to USD 111m (USD 80m), driven by a terminal
modernisation drive in North America.
In North America, volume decreased by 27% and revenue
decreased by 42%, driven by lower demand and congestion in
the region, especially on the US West Coast.
In Latin America, volume decreased by 6.1%, due to Itajai, Brazil,
where services have been phased out as the concession is end-
ing, and the divestment of a terminal in Cartagena, Colombia.
On a like-for-like basis, volumes increased 3.8%.
In Europe, volume increased by 4.3% driven by Poti, Georgia.
In Africa, volume decreased by 24% due to the divestment of
Luanda, Angola. Adjusted for the exit, volume increased by 3.6%.
In Asia and Middle East, volume was at par with last year and
overall revenue decreased by 2.9%.
Results from joint ventures and associated companies
The share of profits in joint ventures and associated companies
improved to positive USD 50m (negative USD 392m), driven by
the GPI impairment in 2022. Adjusted for the impairment results
decreased by USD 43m, driven by lower volume in Santos, Brazil,
go live of the new terminal in Abidjan, Côte d’Ivoire, and the
deteriorating economic situation in Tema, Ghana.
Key initiatives in Q1
Terminals has entered a strategic partnership with the Vietnamese
HATECO group for a project to develop two new deep-water
berths at Lach Huyen port in Haiphong City located in the north
of Vietnam. The new terminal is expected to become operational
by Q1 2025 and will be able to accommodate vessels of up to
18,000 TEUs capacity.
In Suape, Brazil, the new terminal project has received the reg-
ulatory approvals and is preparing for construction while the
remaining permits are being obtained.
Towage & Maritime Services
Revenue was USD 602m (USD 555m) with an EBITDA of USD
83m (USD 79m). EBIT increased by USD 16m to USD 85m
(USD 69m).
Towage & Maritime Services highlights USD million
Q1
2023
Q1
2022
12M
2022
Revenue 602 555 2,293
Profit before depreciation, amortisation and impairment losses, etc. (EBITDA) 83 79 369
EBITDA margin 13.8% 14.2% 16.1%
Profit before financial items (EBIT) 85 69 307
EBIT margin 14.1% 12.4% 13.4%
Invested capital 2,807 2,691 2,794
Gross capital expenditure, excl. acquisitions and divestments (CAPEX) 64 81 350
Operational and financial metrics
Number of operational tug jobs (harbour towage) (’000) 38 35 146
Management review I Segments I Terminals I Towage & Maritime Services
13
A.P. MOLLER - MAERSK INTERIM REPORT Q1 | 4 MAY 2023
Maritime Services
For Maersk Container Industry, revenue decreased by USD 32m
to USD 109m (USD 141m), driven by lower market demand and
an extended production close due to the Chinese New Year and
COVID-19 disruption in the country. EBITDA improved by USD 1m
to USD 8m (USD 7m) as lower revenue was offset by higher costs
in 2022. EBIT decreased by USD 1m to USD 6m (USD 7m) due to
the reversal of depreciations in 2022 when it was classified as
held for sale.
Maersk Supply Service was classified as held for sale in Q1 2023,
and it was announced that it will be divested with expected
closing in Q2 2023.
EBIT in Other Maritime Services includes USD 42m (USD 46m)
from Höegh Autoliners AS, classified as an associate. EBIT was
also positively impacted by the gain on the partial sale of
Höegh Auto liners shares.
Towage
Financial and operational performance
Revenue increased to USD 205m (USD 192m), and adjusted for
foreign exchange rate effects, the increase was 12% or USD
22m. Harbour Towage revenue increased by USD 13m from an
activity increase of 8% and tariff increase in Europe and the
Americas region. The activity increase came from additional
tug jobs in Australia, Europe and a new port entry in Brazil.
Terminal towage revenue decreased by USD 2m as a result of
reduced activity in AMEA due to the completion of a contract
in Angola during 2022.
EBITDA increased to USD 60m (USD 59m) due to increased reve-
nue, partially offset by increased fuel and other operating costs.
EBIT increased to USD 37m (USD 16m) as 2022 was negatively
impacted by the withdrawal of operations in Russia.
Results from joint ventures and associated companies
The share of profit in joint ventures and associated companies
remained at par with last year at USD 5m (USD 5m).
Management review I Segments I Towage & Maritime Services
14
A.P. MOLLER - MAERSK INTERIM REPORT Q1 | 4 MAY 2023
Financials
Condensed income statement
Note Q1
2023
Q1
2022
12M
2022
1 Revenue 14,207 19,292 81,529
1 Profit before depreciation, amortisation and impairment losses, etc. (EBITDA) 3,969 9,084 36,813
Depreciation, amortisation and impairment losses, net 1,880 1,507 6,186
Gain on sale of non-current assets, etc., net 140 27 101
Share of profit/loss in joint ventures and associated companies 97 -331 132
1 Profit before financial items (EBIT) 2,326 7,273 30,860
Financial items, net 190 -294 -629
Profit before tax 2,516 6,979 30,231
Tax 193 171 910
Profit for the period 2,323 6,808 29,321
Of which:
Non-controlling interests 39 32 123
A.P. Møller - MærskA/S’ share 2,284 6,776 29,198
Earnings per share, USD 131 364 1,600
Diluted earnings per share, USD 131 363 1,595
Condensed statement of comprehensive income
Q1
2023
Q1
2022
12M
2022
Profit for the period 2,323 6,808 29,321
Translation from functional currency to presentation currency 56 -37 -551
Reclassified to income statement, gain on sale of non-current assets, etc., net - - 53
Cash flow hedges -2 53 115
Tax on other comprehensive income 4 -10 -10
Share of other comprehensive income of joint ventures and associated companies, net of tax -1 -1 6
Total items that have been ormay be reclassified subsequently to the income statement 57 5 -387
Other equity investments 3 50 54
Actuarial gains/losses on defined benefit plans, etc. - - 36
Tax on other comprehensive income - - 30
Total items that will not be reclassified to the income statement 3 50 120
Other comprehensive income, net of tax 60 55 -267
Total comprehensive income for the period 2,383 6,863 29,054
Of which:
Non-controlling interests 41 34 92
A.P. Møller - MærskA/S’ share 2,342 6,829 28,962
Financials I Interim consolidated financial statements Q1 2023
AMOUNTS IN USD MILLION
15
A.P. MOLLER - MAERSK INTERIM REPORT Q1 | 4 MAY 2023
Condensed balance sheet at 31March
31 March
2023
31 March
2022
31 December
2022
Intangible assets 10,319 5,676 10,785
Property, plant and equipment 27,838 27,588 28,194
Right-of-use assets 10,523 10,177 10,967
Financial non-current assets, etc. 3,186 2,800 3,272
Deferred tax 400 366 399
Total non-current assets 52,266 46,607 53,617
Inventories 1,481 1,933 1,604
2 Receivables, etc. 19,011 12,036 27,391
Securities 245 2 942
Cash and bank balances 11,652 12,107 10,057
6 Assets held for sale 835 346 69
Total current assets 33,224 26,424 40,063
Total assets 85,490 73,031 93,680
31 March
2023
31 March
2022
31 December
2022
3 Equity attributable to A.P. Møller - MærskA/S 54,752 43,867 63,991
Non-controlling interests 1,081 1,073 1,041
Total equity 55,833 44,940 65,032
Lease liabilities, non-current 8,221 8,192 8,582
Borrowings, non-current 3,674 4,175 3,774
Other non-current liabilities 2,819 2,149 2,971
Total non-current liabilities 14,714 14,516 15,327
Lease liabilities, current 2,916 2,684 3,032
Borrowings, current 321 199 255
Other current liabilities 11,543 10,513 10,025
6 Liabilities associated with assets held for sale 163 179 9
Total current liabilities 14,943 13,575 13,321
Total liabilities 29,657 28,091 28,648
Total equity and liabilities 85,490 73,031 93,680
Financials I Interim consolidated financial statements Q1 2023
AMOUNTS IN USD MILLION
16
A.P. MOLLER - MAERSK INTERIM REPORT Q1 | 4 MAY 2023
Condensed cash flow statement
Note Q1
2023
Q1
2022
12M
2022
Profit before financial items 2,326 7,273 30,860
Non-cash items, etc. 1,926 2,115 6,225
Change in working capital 1,220 -1,069 -1,808
Cash flow from operating activities before tax 5,472 8,319 35,277
Taxes paid -138 -98 -801
Cash flow from operating activities 5,334 8,221 34,476
Purchase of intangible assets and property, plant and equipment (CAPEX) -838 -1,354 -4,163
Sale of intangible assets and property, plant and equipment 209 43 303
4 Acquisition of subsidiaries and activities -126 -1 -4,774
Sale of subsidiaries and activities 23 17 2
Acquisition of joint ventures and associated companies -1 - -46
Sale of joint ventures and associated companies -2 - 219
Dividends received 32 20 327
Sale of other equity investments 10 20 31
Financial investments, etc., net 7,774 1,106 -13,518
Cash flow from investing activities 7,081 -149 -21,619
Repayments of/proceeds from borrowings, net -100 -16 -717
Repayments of lease liabilities -825 -646 -3,080
Financial payments, net 451 -152 -238
Financial expenses paid on lease liabilities -139 -118 -518
Purchase of treasury shares -718 -631 -2,738
Dividends distributed -9,373 -5,945 -6,847
Dividends distributed to non-controlling interests -24 -3 -78
Other equity transactions 2 -9 81
Cash flow from financing activities -10,726 -7,520 -14,135
Net cash flow for the period 1,689 552 -1,278
Cash and cash equivalents, beginning of period 10,038 11,565 11,565
Currency translation effect on cash and bank balances -84 -33 -249
Cash and cash equivalents, end of period 11,643 12,084 10,038
Of which classified as assets held for sale -15 -6 -1
Cash and cash equivalents, end of period 11,628 12,078 10,037
Cash and cash equivalents
Cash and bank balances 11,652 12,107 10,057
Overdrafts 24 29 20
Cash and cash equivalents, end of period 11,628 12,078 10,037
Cash and bank balances include USD 1.2 bn (USD 1.4 bn at 31 December 2022) 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 Q1 2023
AMOUNTS IN USD MILLION
17
A.P. MOLLER - MAERSK INTERIM REPORT Q1 | 4 MAY 2023
Condensed statement of changes in equity
A.P. Møller - Mærsk A/S
Note Share
capital
Trans-
lation
reserve
Reserve
for other
equity
invest-
ments
Reserve
for
hedges
Retained
earnings
Total Non-
controlling
interests
Total
equity
Equity 1 January 2023 3,392 -1,232 212 -27 61,646 63,991 1,041 65,032
Other comprehensive income,
net of tax - 118 3 1 -64 58 2 60
Profit for the period - - - - 2,284 2,284 39 2,323
Total comprehensive income
for the period - 118 3 1 2,220 2,342 41 2,383
Dividends to shareholders - - - - -10,824 -10,824 -32 -10,856
Value of share-based payment - - - - 6 6 - 6
Acquisition of non-controlling
interests
Sale of non-controlling interests - - - - - - 1 1
3 Purchase of treasury shares - - - - -745 -745 - -745
3 Sale of treasury shares - - - - 2 2 - 2
Capital increases and decreases
Transfer of gain/loss on disposal
of equity investments to retained
earnings - - 1 - -1 - - -
Transfer of cash flow hedge reserve to
non-current assets - - - -4 - -4 - -4
Total transactions with
shareholders - - 1 -4 -11,578 -11,581 -1 -11,582
Equity 31 March 2023 3,392 -1,114 216 -30 52,288 54,752 1,081 55,833
Equity 1 January 2022 3,513 -767 135 -160 41,787 44,508 1,080 45,588
Other comprehensive income,
net of tax - -38 50 42 -1 53 2 55
Profit for the period - - - - 6,776 6,776 32 6,808
Total comprehensive income
for the period - -38 50 42 6,775 6,829 34 6,863
Dividends to shareholders - - - - -6,845 -6,845 -11 -6,856
Value of share-based payment - - - - 5 5 - 5
Sale of non-controlling interests - - - - - - -30 -30
3 Purchase of treasury shares - - - - -631 -631 - -631
3 Sale of treasury shares - - - - 1 1 - 1
Transfer of gain/loss on disposal
of equity investments to retained
earnings - - -14 - 14 - - -
Total transactions with
shareholders - - -14 - -7,456 -7,470 -41 -7,511
Equity 31 March 2022 3,513 -805 171 -118 41,106 43,867 1,073 44,940
Financials I Interim consolidated financial statements Q1 2023
AMOUNTS IN USD MILLION
18
A.P. MOLLER - MAERSK INTERIM REPORT Q1 | 4 MAY 2023
Note 1 Segment information
Ocean Logistics
& Services
Terminals Towage &
Maritime
Services
Unallo-
cated
items
Elimi-
nations
Consoli-
dated
total
Q1 2023
External revenue 9,441 3,539 653 543 31 - 14,207
Inter-segment revenue 432 -68 223 59 13 -659 -
Total revenue 9,873 3,471 876 602 44 -659 14,207
Profit before depreciation, amortisation
and impairment losses, etc. (EBITDA) 3,352 316 291 83 -73 - 3,969
Profit before financial items (EBIT) 1,969 135 207 85 -74 4 2,326
Key metrics
Invested capital 29,812 10,182 7,676 2,807 -101 -54 50,322
Gross capital expenditures, excl.
acquisitions and divestments (CAPEX) 538 128 111 64 5 -8 838
Ocean Logistics
& Services
Terminals Towage &
Maritime
Services
Unallo-
cated
items
Elimi-
nations
Consoli-
dated
total
Q1 2022
External revenue 15,000 2,918 902 446 26 - 19,292
Inter-segment revenue 570 -39 229 109 7 -876 -
Total revenue 15,570 2,879 1,131 555 33 -876 19,292
Profit before depreciation, amortisation
and impairment losses, etc. (EBITDA) 8,214 319 456 79 17 -1 9,084
Profit before financial items (EBIT) 7,072 183 -73 69 16 6 7,273
Key metrics
Invested capital 31,805 3,191 7,772 2,691 -252 -40 45,167
Gross capital expenditures, excl.
acquisitions and divestments (CAPEX) 1,156 34 80 81 7 -4 1,354
USD million Types of revenue Q1
2023
Q1
2022
12M
2022
Ocean Freight revenue 8,431 13,560 56,499
Other revenue, including hubs 1,442 2,010 7,800
Logistics & Services Managed by Maersk
1
568 546 2,491
Fulfilled by Maersk
1
1,380 811 4,916
Transported by Maersk
1
1,523 1,522 7,016
Terminals Terminal services 876 1,131 4,371
Towage & Maritime Services Towage services 205 192 774
Sale of containers and spare parts 109 141 499
Offshore supply services 95 83 390
Other shipping activities 73 66 282
Other services 120 73 348
Unallocated activities and eliminations -615 -843 -3,857
Total revenue 14,207 19,292 81,529
1 The 2022 by Maersk revenue figures have been restated in order to reflect changes within the Logistics & Services model definition.
Financials I Interim consolidated financial statements Q1 2023
AMOUNTS IN USD MILLION
19
A.P. MOLLER - MAERSK INTERIM REPORT Q1 | 4 MAY 2023
Note 3 Share capital
Development in the number of shares:
A shares of B shares of Nominal value
DKK 1,000 DKK 500 DKK 1,000 DKK 500 DKK million USD million
1 January 2022 10,468,107 216 8,907,718 166 19,376 3,513
Cancellations 1 -2 3 -6 - -
31 March 2022 10,468,108 214 8,907,721 160 19,376 3,513
1 January 2023 10,334,329 214 8,372,645 160 18,707 3,392
31 March 2023 10,334,329 214 8,372,645 160 18,707 3,392
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
28 March 2023, the shareholders decided on the cancellation of
treasury shares whereby the share capital would be decreased from
nominally DKK 18,707,161,000 by nominally DKK 1,137,446,000 in total,
divided into 227,390 A shares and 910,056 B shares of DKK 1,000 to
nominally DKK 17,569,715,000. The cancellation is expected to be
completed during Q2 2023.
Development in the holding of treasury shares:
No. of shares of DKK 1,000 Nominal value DKK million % of share capital
Treasury shares 2023 2022 2023 2022 2023 2022
A shares
1 January 201,717 120,494 202 121 1.08% 0.62%
Additions 72,068 28,325 72 28 0.38% 0.15%
31 March 273,785 148,819 264 149 1.46% 0.77%
B shares
1 January 887,557 549,587 888 550 4.74% 2.84%
Additions 268,698 158,288 269 158 1.44% 0.81%
Disposals 1,874 642 2 1 0.01% 0.00%
31 March 1,154,381 707,233 1,155 707 6.17% 3.65%
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 pro-
posed cancelled at the Annual General Meetings.
Disposals of treasury shares are related to the share option plan and the
restricted share unit plan.
From 1 January 2023 to 31 March 2023, A.P. Møller - Mærsk A/S bought
back as treasury shares 37,092 A shares, with a nominal value of DKK
37m, and 103,596 B shares, with a nominal value of DKK 104m from
34m, from A.P. Møller og Hustru Chastine Mc-Kinney Møllers Familie fond,
which are considered related parties.
The dividend of DKK 4,300 per share of DKK 1,000 – a total of DKK 74.4bn
is equivalent to USD 10.9bn, excluding treasury shares. Of this, USD 9.4bn
was paid to shareholders on 31 March 2023, and the withholding tax of
USD 1.5bn is payable in Q2 2023. Payment of dividends to shareholders
does not trigger taxes for A.P. Moller - Maersk.
Receivables, etc. amount to USD 19.0bn (USD 27.4bn at 31 December 2022)
and consist primarily of term deposits with a maturity of more than three
months amounting to USD 10.4bn (USD 17.6bn at 31 December 2022).
Note 2 Term deposits
Financials I Interim consolidated financial statements Q1 2023
AMOUNTS IN USD MILLION
20
A.P. MOLLER - MAERSK INTERIM REPORT Q1 | 4 MAY 2023
Acquisitions during 2023
Grindrod Intermodal Group (Logistics & Services)
On 2 January 2023, the Group completed the acquisition of Grindrod
Logistics. The Group partnered with Grindrod Intermodal Group to merge
the logistics activities of Grindrod Intermodal business and the ocean
activities of the Ocean Africa Container Lines (OACL) with the current
Maersk Logistics & Services products in South Africa. The Grindrod Inter-
modal Group is a well-known and trusted partner in South Africa that
offers a range of logistics and services offerings. The Group has a con-
trolling interest of 51%. The purchase price is USD 37m and resulted in
a provisional goodwill recognised of USD 20m.
Martin Bencher Group (Logistics & Services)
On 2 January 2023, the Group acquired 100% of the shares in Martin
Bencher Group, a Denmark-based project logistics company with pre-
mium competencies within non-containerised project logistics. The
acquisition of Martin Bencher Group will add to the existing project
logistics services already available at Maersk, with a specialised service
offering the combination of solution design, special cargo transpor-
tation, and project management services. It will build on existing infra-
structures and know-how across the existing Project Logistics vertical
in Sales & Marketing, Ocean, and Logistics & Services Special Project
Logistics (SPL). The purchase price is USD 54m and resulted in a provi-
sional goodwill recognised of USD 11m.
Acquisitions during 2022
LF Logistics Holdings Limited (Logistics & Services)
On 31 August 2022, the Group acquired 100% of the shares in LF Logistics
Holdings Limited, a leading omnichannel fulfilment contract logistics
company in Asia Pacific. In Q1 2023, there were no changes to the provi-
sional purchase price allocation prepared at closing date.
Pilot Freight Services (Logistics & Services)
On 2 May 2022, the Group acquired 100% of the shares in Pilot Freight
Services, a US-based first, middle and last mile cross-border solutions
provider. In Q1 2023, certain changes were made to the provisional pur-
chase allocation prepared at closing date resulting in a reduction of the
calculated goodwill by USD 32m. The changes were primarily related to
valuation of customer relationships and deferred tax liability and had no
impact on the profitability for Q1 2023.
Senator International (Logistics & Services)
On 2 June 2022, the Group acquired 100% of the shares in Senator Inter-
national, a well renowned German air-based freight carrier company. In
Q1 2023, certain changes were made to the provisional purchase alloca-
tion prepared at closing date resulting in an increase of the calculated
goodwill by USD 5m. The changes were primarily related to valuation of
tax payables and had no impact on the profitability for Q1 2023.
The accounting for all of the current period and prior year business com-
binations are considered provisional as at 31 March 2023 as the valuation
of intangible assets is not yet finalised.
Note 4 Acquisitions of subsidiaries
The total commitment across segments of USD 4.8bn (USD 5.0bn
at 31 December 2022), is related to investments for new methanol
container vessels, wind installation vessels, tugs, aircraft and commit-
ments towards terminal concession grantors.
Note 5 Commitments
Financials I Interim consolidated financial statements Q1 2023
AMOUNTS IN USD MILLION
21
A.P. MOLLER - MAERSK INTERIM REPORT Q1 | 4 MAY 2023
Q1
2023
Intangible assets 15
Property, plant and equipment 590
Other assets 7
Non-current assets 612
Current assets 153
MSS disposal group assets held for sale 765
Provisions 20
Other liabilities 132
MSS disposal group liabilities associated with assets held for sale 152
A structured due diligence process in relation to Maersk Supply Service
was conducted during Q1 2023 and an agreement was reached on 20
March 2023 with A.P. Moller Holding to divest Maersk Supply Service.
The disposal group is defined as Maersk Supply Service A/S and its
subsidiaries, excluding Stillstrom A/S. The divestment is expected to be
completed in Q2 2023.
The disposal group is classified as held for sale and presented separately
in the Condensed balance sheet. The comparative figures have not been
restated.
The net assets of the disposal group have been measured at fair value less
costs to sell at the time of the reclassification to held for sale which was
estimated to be equivalent to the carrying value. As such, no additional
impairment losses or reversal of impairment losses were recognised.
The translation reserve within equity contains a USD 41m loss related to
the disposal group which will be reclassified from equity to the Income
statement upon completion of the divestment in Q2 2023.
The disposal group continues to be included in the Towage & Maritime
Services segment and is included in Note 1 Segment information as such.
Note 6 Assets held for sale
Note 7 Accounting policies, judgements and significant estimates
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 2022.
Impairment of brands
On 27 January 2023, it was announced that the Group would move to-
wards a singular and unified brand by integrating the Maersk brands.
Existing brands were retired during Q1 2023, resulting in the recognition
of impairment losses of the full carrying amount of each respective
retired brand on the balance sheet. Total impairment losses related to
the retirement of brands in Q1 2023 recognised in the condensed income
statement amount to USD 298m, of which USD 296m is within Ocean and
USD 2m is within Logistics & Services.
Financials I Interim consolidated financial statements Q1 2023
AMOUNTS IN USD MILLION
22
A.P. MOLLER - MAERSK INTERIM REPORT Q1 | 4 MAY 2023
Management’s statement
Executive Board
Board of Directors
Management review I Management’s statement
23
A.P. MOLLER - MAERSK INTERIM REPORT Q1 | 4 MAY 2023
2023 2022
Income statement Q1 Q4 Q3 Q2 Q1
Revenue 14,207 17,820 22,767 21,650 19,292
Profit before depreciation, amortisation and impairment losses, etc. (EBITDA) 3,969 6,540 10,862 10,327 9,084
Depreciation, amortisation and impairment losses, net 1,880 1,612 1,649 1,418 1,507
Gain on sale of non-current assets, etc., net 140 33 4 37 27
Share of profit/loss in joint ventures and associated companies 97 161 260 42 -331
Profit before financial items (EBIT) 2,326 5,122 9,477 8,988 7,273
Financial items, net 190 171 -303 -203 -294
Profit before tax 2,516 5,293 9,174 8,785 6,979
Tax 193 312 263 164 171
Profit for the period 2,323 4,981 8,911 8,621 6,808
A.P. Møller - Mærsk A/S’ share 2,284 4,950 8,879 8,593 6,776
Underlying profit
1
2,561 4,863 8,818 8,553 7,469
Balance sheet
Total assets 85,490 93,680 89,058 80,426 73,031
Total equity 55,833 65,032 60,231 52,586 44,940
Invested capital 50,322 52,410 53,386 49,195 45,167
Net interest-bearing debt -7,002 -12,632 -6,855 -3,356 -689
Cash flow statement
Cash flow from operating activities 5,334 8,200 9,444 8,611 8,221
Capital lease instalments – repayments of lease liabilities 825 861 811 762 646
Gross capital expenditure, excl. acquisitions and divestments (CAPEX) 838 895 906 1,008 1,354
Cash flow from financing activities -10,726 -1,601 -1,968 -3,046 -7,520
Free cash flow 4,224 6,462 7,787 6,844 6,014
Financial ratios
Revenue growth -26.4% -3.7% 37.1% 52.1% 55.1%
EBITDA margin 27.9% 36.7% 47.7% 47.7% 47.1%
EBIT margin 16.4% 28.7% 41.6% 41.5% 37.7%
Cash conversion 134% 125% 87% 83% 90%
Return on invested capital after tax (ROIC) (last twelve months) 49.1% 60.4% 66.6% 62.5% 53.6%
Equity ratio 65.3% 69.4% 67.6% 65.4% 61.5%
Underlying ROIC
1
(last twelve months) 49.0% 61.2% 68.1% 64.2% 55.4%
Underlying EBITDA
1
4,037 6,517 10,851 10,289 9,186
Underlying EBITDA margin
1
28.4% 36.6% 47.7% 47.5% 47.6%
Underlying EBIT
1
2,563 5,002 9,381 8,924 7,937
Underlying EBIT margin
1
18.0% 28.1% 41.2% 41.2% 41.1%
Stock market ratios
Earnings per share, USD 131 278 488 466 364
Diluted earnings per share, USD 131 277 487 464 363
Cash flow from operating activities per share, USD 306 461 519 467 442
Share price (B share), end of period, DKK 12,445 15,620 13,865 16,555 20,370
Share price (B share), end of period, USD 1,816 2,242 1,817 2,313 3,040
Total market capitalisation, end of period, USD 30,957 39,135 32,099 42,108 55,662
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.
Quarterly summary
Management review I Quarterly summary
AMOUNTS IN USD MILLION
24
A.P. MOLLER - MAERSK INTERIM REPORT Q1 | 4 MAY 2023
Technical terms, abbreviations and definitions
of key figures and financial ratios.
Definition of terms
A
A.P. Moller - Maersk
A.P. Moller - Maersk is referred to
as the consolidated group of com-
panies and A.P. Møller - Mærsk A/S
as the parent company.
B
Backhaul
The direction of the trade route
with the lowest volumes, whereas
the opposite direction is referred
to as headhaul.
C
CAPEX
Cash payments for intangible
assets and property, plant and
equipment, excluding acquisi -
tions 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 oper-
ations divided by the number
of shares (of DKK 1,000 each),
excluding A.P. Moller - Maersk’s
holding of treasury shares.
Cost base
EBIT costs including VSA income
and hub income and adjustments
for restructuring costs, the result
from associated companies and
gains/losses.
E
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.
F
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 pay-
ments and financial expenses
paid on lease liabilities.
G
Gross profit
The sum of revenue, less variable
costs and loss on debtors.
H
Headhaul
The direction of the trade route
with the highest volumes, whereas
the return direction is referred to
as backhaul.
I
Invested capital
Segment operating assets less
segment operating liabilities,
including investments and deferred
taxes related to the operation.
K
kcbm
The freight volume of the ship-
ment for domestic and interna-
tional freight. Cubic metre (CBM)
measurement is calculated by
multi plying the width, height and
length of the shipment.
L
Loaded volumes
Loaded volumes refer to the num-
ber of FFEs loaded on a shipment
which are loaded on first load at
vessel departure time, excluding
displaced FFEs.
N
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.
O
Ocean, loaded freight rate
(USD per FFE)
Average freight rate per FFE
for all the A.P. Moller - Maersk
containers loaded in the period
in either Maersk Line or Hamburg
Süd vessels or third parties
(excluding intermodal). Hamburg
Süd is not excluding intermodal.
Ocean, unit cost, fixed bunker
(USD per FFE incl. VSA income)
Cost per FFE assuming a bunker
price at USD 550/tonne excluding
intermodal but including hubs
and time charter income. Hamburg
Süd is not excluding intermodal.
R
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.
S
Spot conversion rate
Spot conversion is spot volumes
divided by convertible shipment
volumes.
T
TEU
Twenty-foot container Equivalent
Unit.
Time charter
Hire of a vessel for a specified
period.
Top 200 organic growth
Logistics & Services’ organic
revenue increase from the top 200
Ocean customers excluding freight
forwarders. The top 200 Ocean
customers are selected annually
based on Ocean volumes.
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.
U
Underlying EBITDA
Underlying EBITDA is earnings
before interest, taxes, deprecia-
tion and amortisation adjusted
for restructuring and integration
costs.
Underlying EBIT
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.
Underlying profit/loss
Underlying profit/loss is profit/loss
for the year from continuing opera-
tions adjusted for net gains/losses
from sale of non-current assets,
etc., and net impairment losses
as well as transaction, restructur-
ing and integration costs related
to major transactions. The adjust-
ments are net of tax and include
A.P. Moller - Maersk’s share of men-
tioned items in joint ventures and
associated companies.
V
VSA
Vessel Sharing Agreement is
usually reached between various
partners within a shipping con-
sortium who agree to operate a
liner service along a specified
route using a specified number
of vessels.
Management review I Definition of terms
25
A.P. MOLLER - MAERSK INTERIM REPORT Q1 | 4 MAY 2023