A.P. Mller - Mrsk DDF: Virksomhedsdagen , June 2013 Forward-looking - - PowerPoint PPT Presentation
A.P. Mller - Mrsk DDF: Virksomhedsdagen , June 2013 Forward-looking Statements This presentation contains forward-looking statements. Such statements are subject to risks and uncertainties as various factors, many of which are beyond A.P.
DDF: Virksomhedsdagen, June 2013
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The A.P. Moller - Maersk Group is represented in 130 countries, employing around 121,000 people and is headquartered in Copenhagen, Denmark. Our market cap is USD 32bn and the Group reported USD 4bn net profit in 2012. Facilitating global containerized trade Maersk Line carries around 14% of all seaborne containers and, together with APM Terminals and Damco, provides infrastructure for global trade Supporting the global demand for energy The Group is involved with production of oil and gas and other oil related activities including drilling,
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least meet the Group’s historical ROIC at 10%
four core growth units;
per share supported by underlying earnings growth;
conservative capital structure;
strong investment grade rated company – over the cycle
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Damco | Svitzer | Maersk Tankers | Maersk Supply Service Dansk Supermarked | Danske Bank DFDS | Höegh Autoliners | Others
Maersk Line Maersk Oil APM Terminals Maersk Drilling
Opportunistic core Strategic investments Assets managed for value
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vessel network efficiencies and increased rates enabled through active capacity adjustments
(Balloch, UK and Tyra SE, DK)
stream
production stabilised when adjusted for the reduced share of DUC
track
as net interest-bearing debt declined by USD 1.1bn during Q1
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capital
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Note1: The peer group includes CMA CGM, Hapag-Lloyd, APL, Hanjin, Hyundai MM, Zim, NYK, MOL, CSCL, COSCO and OOCL. Averages are TEU-weighted Note2: CSCL, COSCO and OOCL only provide interim financials, hence their Q1/Q2 EBIT margin is based on their H1 gap and Q3/Q4 EBIT-margin is based on their H2 gap to ML. 13Q1 Chinese carriers’ EBIT margin has been proxied using the average of 08H1 to 12H2 gap to MLB Note3: EBIT margins are adjusted for gains/losses on sale of assets, restructuring charges, income/loss from associates. In addition ML‟s EBIT margin is also adjusted for depreciations to match with industry standards. Source: Internal reports, competitor financial reports
01% 05% 05% 10% 13% 05% 06% 05% 07% 01% 00% 05% 03% 04% 01% 01% 03% 04% 07% 05%
0% 5% 10% 15% 08Q1 08Q3 09Q1 09Q3 10Q1 10Q3 11Q1 11Q3 12Q1 12Q3 13Q1
Gap to peers
EBIT-margin, pp
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production
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Project Maturation Process Exploration Production
Reserves Resources >100 mmboe 50-100 mmboe <50 mmboe Bubble size indicates estimate of net resources: Primarily oil Primarily gas Discoveries and prospects
(Size of bubbles do not reflect volumes)
Colour indicates resource type:
Initiate & Discoveries Assess Select Define Execute Assets
Total no. of projects per phase
110
Prospects in the pipeline
11 40 22 13 12
Diamante Mangesh Mjosa Rothesay Bo Xana Blackjack Oceanographer Gara Torvastad Griffon Mulavi Swara Tika East Kopervik Rascasso Algeria Denmark Kazakhstan Brazil Qatar Total of 110 exploration prospects and leads in the exploration pipeline Golden Eagle Chissonga Johan Sverdrup Buckskin Swara Tika Courageous Flyndre & Cawdor Quad 9 gas blow-down Culzean Jackdaw AddaTyra L Cret Wahoo Itaipu Tyra LE Farsund Tyra SE Jack I UK Dunga III Zidane Ockley Valdemar WI Jack II FDP 2012
Uncertainty
Azul- Celeste- Turquesa Caporolo
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from third party customers
markets
2016
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Monrovia
Projects under implementation
SCCT Ph 2 MV2 Aqaba Ph 2 Santos Vado CTW Callao Moin Poti Pipavav Apapa Ph2
Initiation phase Planning phase Execution phase Completed
Gothenburg Lazaro Cardenas Izmir PTP Onne Ningbo
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harsh environment and deep water
2018
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98% 79% 51% 41% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2013 RoY 2014 2015 2016
Contract backlog
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5 10 15 20 25 30 2005 2006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E # units
Maersk Drilling fleet
Standard jack-ups High-end jack-ups Ultra harsh jack-ups Midwater floaters Ultra deepwater floaters
10 10 8 11 15 16 16 16 17 22 23
37% 14% 9% 7% 33%
Maersk Line Maersk Oil APM Terminals Maersk Drilling Other
Invested capital Our portfolio strategy towards 2017
At least 75% of the invested capital is within the four core growth businesses Maersk Line’s share of the Group’s invested capital is likely to be reduced towards a 25–30% range Maersk Oil, APM Terminals and Maersk Drilling’s combined share of the invested capital will increase towards a 45–50% range Growing the business by 30–40% Maersk growth strategy continues with invested capital growing 1.6% compared to Q1 2012 Portfolio optimization with the four core growth businesses’ share of the Group’s invested capital growing to 71% from 67% a year ago Reduction in Maersk Tankers’s fleet, the divestment of Maersk LNG and the sale of FPSOs mainly explain the lower invested capital in the other business operations
USD 52,243m
39% 12% 11% 9% 29%
USD 53,086m Q1 2012 Q1 2013
Recent portfolio development – Q1 2013
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Cash flow from divestments of USD 10.4bn since 2007 with a pre-tax gain of USD 4.4bn since 2007 The Group made gross investments of USD 9.7bn in long- term growth in 2012, whereof 90% were focused on the four core growth businesses Divestments of assets and activities for USD 3.4bn in 2012, with Maersk LNG and FPSO Maersk Peregrino as the largest transactions Cash flow from divestments Divestment gains (pre-tax)
Cash flow and gains from divestments
,0 500,0 1000,0 1500,0 2000,0 2500,0 3000,0 3500,0 2007 2008 2009 2010 2011 2012
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for capital expenditure has been USD 39bn accumulated for the past five years as of end
13.6bn per 31 March 2013
USD 13.6bn is heading for the four core growth businesses
investments
Newbuilding programme 2013 2014 2015 2016> Total (Number) Maersk Line 5 8 7 20 Maersk Drilling 1 5 1 7 Anchor handling vessels, tugboats and standby vessels, etc 5 8 13 Total 11 21 8 40 Capital commitments 2013 2014 2015 2016> Total USD billion Maersk Line 1.0 1.2 0.8 3.0 Maersk Oil 3.6 APM Terminals 3.1 Maersk Drilling 1.0 1.5 0.3 2.7 Anchor handling vessels, tugboats and standby vessels, etc 0.1 0.1 0.2 Other 1.0 Total 2.1 2.7 1.1 13.6
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seven rigs under construction. The orderbook includes three ultra harsh jack-up rigs and four ultra deepwater drillships. The new building programme representing an investment of USD 4.5bn
delivered between 2013 and
placed after the Triple E
Maersk Drilling Maersk Line
agreement to create and
Terminal (AGT) in Turkey. The initial investment for the terminal is approximately USD 400m. APM Terminals has total capital commitments of USD 3.1bn
APM Terminals Maersk Oil
approved by the authorities and execution is progressing towards first production. Exploration expenses are expected to be above USD 1.0bn in 2013
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11 13 16 16 37 7 12 14 26 9 31 8 Export Credit Agencies Shipfinancing institutions Bank Financing Bonds Committed undrawn facilities Project Financing
2011 – 2012 Percentage
1.
Optimising Debt portfolio
October 2012
2.
Increasing financial flexibility
3.
Strong execution on planned divestments
Inner cycle 2011 debt portfolio composition Total commitment 2012 USD 30bn
1.4 1.2 0.3 0.1 0.4
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0
LNG FPSO – Maersk Peregrino Maersk Equipment Services (Chassis) Xiamen China (from 50% to 25%
Other
USD bn
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USD 1.1bn in Q1 2013 to USD 13.4bn compared to end-2012
restated from USD 15.7bn to USD 14.5bn as a result of new IFRS consolidation of Joint Venture rules
USD bn
* Other includes change in debt held for sale, currency adjustments, etc.
Development in Net Interest-bearing Debt
13.4 14.5 2.9 0.1 0.6 1.4 0.2 0.2 NIBD 2012 EBITDA ∆ WC Paid taxes CAPEX Financial items Other* NIBD 2013 Q1
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being disciplined on capex
increased dividends
| Side 25
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Income statement (USD million) Q1 2013 Q1 2012 Change FY 2012 Revenue 14,047 14,327
59,089 EBITDA 2,890 2,467 17.2% 12,252 Depreciation, etc. 1,080 1,220
5,211 Gain on sale of non-current assets, etc. net 40 325
621 EBIT 1,941 1,646 17.9% 8,014 Profit before tax 1,690 1,493 13.2% 7,300 Profit for the period 790 1,175
4,038 Key figures (USD million) Q1 2013 Q1 2012 Change FY 2012 Cash Flow from operating activities 2,396 1,138 110.5% 7,506 Cash Flow used for capital expenditure
75.6%
Net interest-bearing debt 13,439 14,399
14,489 Earnings per share (USD) 163 248
857 ROIC (%) 8.0 10.2
8.9 Dividend per share (DKK) 1,200
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Breakdown of ROIC by business Group ROIC 2005-Q1 2013
Business Invested capital USDm ROIC % Q1 2013 ROIC % Q1 2012
Maersk Group 53,086 8.0 10.2 Maersk Line 20,570 4.0
Maersk Oil 6,515 20.6 76.5 APM Terminals 5,555 12.0 20.1 Maersk Drilling 4,692 13.0 13.0 Maersk Supply Service 2,164 10.1 7.8 Maersk Tankers 3,421
Damco 518 4.7 8.0 Svitzer 1,501 8.1 8.3 Dansk Supermarked Group 2,824 7.5 6.9 Other 5,900 5.4 10.5 → Ambition going forward is >10% ROIC 16% 10% 10% 10% 00% 12% 08% 09% 08%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 2005 2006 2007 2008 2009 2010 2011 2012 Q1 2013
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The Group still expects a result for 2013 below the 2012 result (USD 4.0bn). The net result is expected to be in line with 2012 (USD 2.9bn) excluding impairment losses, divestment gains and gain from the tax settlement in
higher than the USD 6.2bn in 2012, while cash flow from operating activities is expected to develop in line with the result Maersk Line still expects a result above 2012 (USD 461m) based primarily
expected to increase by 2-4% in 2013, lower on the Asia–Europe trades but supported by higher growth for imports to emerging economies Maersk Oil still expects a result significantly below the result for 2012 (USD 2.4bn), which included one-off income of USD 1.0bn from the Algerian tax dispute and divestment gains. The operational result is expected to be below the operational result for 2012 (USD 1.5bn) excluding the Algerian tax dispute and divestment gains. Maersk Oil expects its entitlement production for 2013 to be 240,000-250,000 boepd, lower in the first half than the second half of 2013 at an average oil price of USD 105 per barrel. The lower entitlement production is predominantly caused by a natural production decline from mature fields and reduced ownership share in Denmark, countered by start-up in El Merk and Gryphon. Exploration costs are expected to be above USD 1.0bn APM Terminals still expects a result above 2012 (USD 701m) and to grow ahead of the market supported by volumes from new terminals, whilst improving productivity in existing facilities Maersk Drilling still expects a result above the 2012 result (USD 347m) The total result from all other activities is still expected to be above the 2012 result excluding divestment gains and impairment losses The outlook for 2013 is subject to considerable uncertainty, not least due to developments in the global economy
Sensitivities for the remainder of 2013
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