Maersk Annual Report 2019

ALL THE WAY
2019
Annual
Report
A.P. Møller - Mærsk A/S

Esplanaden 50, DK-1098 Copenhagen K / Registration no. 22756214
2 A.P. Moller - Maersk
Maersk Annual Report 2019
2019 Contents
Table of
38
32 Performance
Performance
39
39 Ocean
Ocean
contents
43
43 Logistics & Services
46
46 Terminals & Towage
51
51 Manufacturing & Others
53
53 Governance
Governance
54
54 Corporate governance
3
3 Directors’ report
59
59 Board of Directors
4
4 Highlights
Highlights
61
61 Executive Board
Board
5
5 Maersk at a glance
62
62 Remuneration
Remuneration
6 Message from the Chairman
6
and the CEO 63
63 Shareholder information
10
10 Financial review
13
13 Guidance for 2020
14
14 Five-year summary 66 Financials
66 Financials
16
16 Market update 67
67 Consolidated financial statements 2019
115
115 Parent company financial statements 2019 Keeping cool in a hot market, page 30
20
20 Our business 139 Statement of the Board of Directors and
139
the Executive Board
21
21 Business model The Annual Report for 2019 of A.P. Møller - Mærsk A/S therefore been restated in the Directors’ Report
140 Independent Auditor’s Report
140 Independent (hereinafter referred to as A.P. Moller - Maersk or and internal reporting to retrospectively reflect
22
22 Strategy
Strategy
Maersk as the consolidated group of companies and the effect of IFRS 16.
25
25 Reliability on the spot A.P. Møller - Mærsk A/S as the parent company) has
been prepared in accordance with the International Maersk Supply Service has been reclassified as con-
27
27 Sustainability
Sustainability Financial Reporting Standards (IFRS) as adopted tinuing operations, following the Board of Directors’
30
30 Keeping cool in a hot market 143 Additional information
143 by the EU and further requirements in the Danish decision to no longer pursue a separation solution.
Financial Statements Act. Comparison figures for the income statement,
33
33 Risk management 144
144 Quarterly summary balance sheet and cash flow statement have been
Changes in presentation and comparative figures restated as if Maersk Supply Service had always
145
145 Company overview
overview 1
The IFRS 16 leases accounting standard entails les- been part of continuing operations.
148
148 Stock exchange announcements sees to recognise leases in the balance sheet as a
right-of-use (ROU) asset and a related lease liability. Unless otherwise stated, all figures in parenthesis
149
149 Definition of terms In the income statement, the lease cost is replaced refer to the corresponding figures for the same
by depreciation of the leased asset and an interest period prior year.
150
150 External financial reporting for
Cover photo expense for the financial liability.
A.P. Moller - Maersk2
Global trade on the move at the fully Forward-looking statements
automated APM Terminals’ Maasvlakte The standard was implemented on 1 January 2019 The Annual Report contains forward-looking state-
using the modified retrospective approach, and ments. Such statements are subject to risks and
II container terminal in Rotterdam,
comparative figures have not been restated uncertainties as various factors, many of which
the Netherlands.
in the consolidated financial statements. are beyond Maersk’s control, may cause the actual
1 Part of Financials A.P. Moller - Maersk uses EBITDA as the key operat- development and results to differ materially from
2 Part of Directors’ report ing performance indicator, and 2018 figures have expectations contained in the Annual Report.
2019 Directors’ report
Directors’
report
Highlights
Maersk at a glance
Message from
the Chairman and the CEO
Financial review
Guidance for 2020
Five-year summary
Market update
Our business
Performance
Governance
2019 Directors’ report Highlights
Highlights
EBIT improved from USD 409m to USD 1.7bn, trading day increased by 3.3%, equal to USD
reflecting an improvement in margin to 4.4% 0.9bn in added value.
(1.0%), leading to a higher return on invested
capital of 3.1% (0.2%), while underlying profit Net interest-bearing debt decreased to
was USD 546m (loss of USD 61m). USD 11.7bn (USD 15.0bn) due to strong cash
Strong improvement in earnings and free cash flow from flow generation and proceeds from the
improved operational performance and cost measures. sale of Total S.A. shares. Maersk remains
Free cash flow improved due to investment grade-rated with a stable out-
improved earnings and reduced CAPEX look from Moody’s and Standard & Poor’s.
Following the strong earnings development
and lower net working capital, the cash con- The Board of Directors proposes an ordinary
version ratio increased to 104% (89%), and dividend to the shareholders of DKK 150 per
cash flow from operating activities was USD share (DKK 150 per share), based on the
5.9bn (USD 4.4bn). CAPEX was USD 2.0bn improved underlying profit, the proceeds
(USD 3.2m) and free cash flow was USD 6.8bn from Total S.A. shares and the strong cash
(USD 5.1bn), positively impacted by the sale flow generation in 2019.
of Total S.A. shares of USD 2.6bn (USD 3.0bn).
Adjusted for capitalised lease payments and
Progressing on the transformation The growth was mainly driven by strong the sale of Total S.A. shares, free cash flow Guidance for 2020
As part of the strategic plan to become the growth in gateway terminals, only partly off- was USD 2.4bn (USD 0.1bn). A.P. Moller - Maersk expects earnings before
global integrator of container logistics, we set by lower revenue in freight forwarding in interest, tax, depreciation and amortisa-
are tracking key metrics on a quarterly basis. Logistics & Services due to front loading of CAPEX discipline remains a key focus area tion (EBITDA) of around USD 5.5bn, before
The metrics are related to creating synergies volumes in 2018 in anticipation of tariffs. reflected in the accumulated CAPEX guid- restructuring and integration costs and with
across our businesses as one company and ance for 2020-2021 of USD 3.0-4.0bn. a high cash conversion.
generating free cash flow on the back of
improved earnings to ensure a strong balance Strong improvement The outlook for 2020 is impacted by the cur-
sheet and create value for our shareholders. in profitability continued Cash distributions to shareholders of rent outbreak of the Coronavirus (COVID-19)
With revenue on par at USD 38.9bn (USD USD 1.3bn in China, which has significantly lowered vis-
We significantly improved the free cash flow 39.3bn), the continued focus on improving A.P. Møller - Mærsk A/S distributed USD 1.3bn ibility on what to expect in 2020. As facto-
generation with a cash return on invested profitability across the businesses resulted in in cash to shareholders through an ordinary ries in China are closed for longer than usual
capital of 9.3% (2.8%) based on improved a 14% increase in EBITDA to USD 5.7bn (USD dividend of USD 469m in April and USD 791m in connection with the Chinese New Year and
earnings, higher cash conversion and capi- 5.0bn) and a margin of 14.7% (12.7%). This was related to the share buy-back programme as a result of the COVID-19 we expect a weak
tal discipline. Contributing to the earnings mainly driven by strong operational perfor- announced in May 2019 of DKK 10bn (around start to the year.
improvements, accumulated synergies of USD mance in Ocean focusing on cargo selection, USD 1.5bn) over a period of up to 15 months.
1.2bn was realised by the end of 2019 hereby capacity management, reliability and bun-
exceeding our synergy target of USD 1.0bn. ker efficiency resulting in a decrease in total Maersk Drilling was demerged via a listing on
costs. Gateway terminals reported a 3.9% the Danish Stock Exchange in April, and the
The non-Ocean revenue increased by 0.1% volume growth, and with improved revenue shares were distributed to existing share-
(6.3%) when adjusted for the closure of proper move and stable costs, the EBITDA margin holders of A.P. Møller - Mærsk A/S. The com-
duction facilities in Maersk Container Industry. improved by 3.2 percentage points to 28%. bined value of both companies on the first
2019 Directors’ report Maersk at a glance
Maersk at a glance
Maersk comprises four business segments with the consolidated
key results for the continuing operations presented below.
Revenue (USD million) EBITDA (USD million) Relative CO₂ reduction¹ (percentage)
38,890 39,257
5,712 41.8
31,189 30,769 4,998 4,633 38.6
27,646 35.9 36.2 36.7
3,546
2,579
2019 2018 2017 2016 2015 2019 2018 2017 2016 2015 2019 2018 2017 2016 2015
Revenue was on par with 2018. The increase of 0.2% in Ocean was due to EBITDA increased by USD 714m, driven by increases in all segments. Ocean Operational energy efficiency has shown significant improvements in the last
0.2% higher average freight rates and higher other revenue but with a de- increased by USD 574m, driven by a lower cost base given a lower bunker price two years. The 2019 progress shows an additional 3.2% improvement towards
crease in volumes. The increase in Terminals & Towage of 3.2% was due to and improved bunker consumption. Terminals & Towage increased EBITDA by the 2008 baseline and represents a 5.2% improvement relative to the 2018
higher volumes in Terminals, while revenue declined by 1.9% in Logistics & USD 109m or 11%, driven by increased volumes, where Logistics & Services level. Maersk is well on track for the 60% reduction target in 2030 and has the
Services because of the very high volume in Q4 2018. The decrease of 22% increased by USD 47m and Manufacturing & Others by USD 42m. ambitious target of becoming net carbon neutral by 2050.
in Manufacturing & Others was due to exiting the dry container business and 1
Percentage improvement in Energy Efficiency Operational Indicator (EEOI)
divesting the bulk activities, both in January. relative to 2008 baseline.
Cash flow from operating activities (USD million) Gross capital expenditure, CAPEX (USD million) Net interest-bearing debt (USD million)
5,919 2,035 11,662 14,953 14,971

4,442 4,653 11,420
4,050 3,776
3,115 3,219 7,770
1,675 2,105
2019 2018 2017 2016 2015 2019 2018 2017 2016 2015 2019 2018 2017 2016 2015
Cash flow from operating activities increased by USD 1.5bn to USD 5.9bn (USD Gross capital expenditure (CAPEX) was in the lower end of the guidance of Net interest-bearing debt decreased by USD 3.3bn, mainly driven by cash flow
4.4bn) equal to a cash conversion of 104% (89%) driven by EBITDA of USD 5.7bn around USD 2.2bn and reduced by USD 1.2bn versus 2018, reflecting a continued from operating activities of USD 5.9bn, positive cash flow used for investing
and improvements in net working capital of USD 477m. capital discipline with USD 1.1bn reduction coming from the Ocean segment. activities, partly offset by the annual dividend, share buy-backs, interest pay-
ments and new lease liabilities.
Note: 2018 presented as if IFRS 16 had been implemented in 2018, for comparison purposes.
2019 Directors’ report Message from the Chairman and the CEO
Message from the Chairman

and the CEO
In the autumn of 2016, A.P. Moller - Maersk

announced a new strategy and embarked on a
multi-dimensional transformation that would
change not only our company but also our industry.
At the time, we were challenged by declining

revenue, low profitability, weak cash flow and high
financial leverage. This combined with low and
volatile oil prices, as well as low and volatile con-
tainer freight rates exposed the conglomerate to
high risk.
We decided to transform A.P. Moller - Maersk from

being a conglomerate with diversified business
interests in oil, oil services, shipping and logistics
to a global leader in container logistics, building
on our strong position in container shipping, ports
and container-based landside logistics.
Our vision is to build a company that delivers true

end-to-end logistics solutions that help our Ocean
customers manage their global supply chains, while
leveraging the opportunities of digital technology
to significantly improve the customer experience
and how we run the company. Søren Skou Jim Hagemann Snabe
CEO of A.P. Møller - Mærsk A/S Chairman of A.P. Møller - Mærsk A/S
The aim of the transformation of Despite a backdrop of weak trade growth, ongoing the total synergies achieved reached USD 1.2bn,
A.P. Moller - Maersk is to set the company on a trade tensions and geopolitical uncertainty in many mainly from closer collaboration between our
new profitable growth trajectory to maximise markets in 2019, the execution of our strategy has liner businesses and terminals as well as pro-
shareholder value, while delivering on our purpose allowed us to deliver improved financial perfor- curement and network synergies.
of enabling cost competitive, simple and sustain- mance, while making meaningful progress on our
able global trade. With that we embarked on an transformation. In addition to the transformation progress, we
ambitious and fundamental transformation that improved the financial performance of the com-
would not only change the company, but also At the 2019 Annual General Meeting, we announced pany. Net underlying result for continuing oper-
challenge and change the entire industry. four metrics to track progress on our strategic ations grew by USD 607m to USD 546m. Operat-
transformation: ing earnings (EBITDA) grew by USD 715m to USD
Solid progress driven by the strategy 5.7bn with the EBITDA margin improving to 14.7%.
Looking back on 2019, we passed several mile- 1. Cash return on invested capital (CROIC) increased As a result of the stronger earnings and cash
stones of our ambitious transformation, including to 9.3% in 2019 from 2.8% in 2018 due to our flow, we strengthened our balance sheet further
the successful listing of Maersk Drilling, which improved earnings and strong focus on capital with continued focus on capital discipline and
marks the completion of the separation of the discipline and free cash flow. This key measure free cash flow, thus reducing net interest-bearing
energy businesses. We completed the integration indicates generation of free cash flow from the debt by USD 3.3bn.
of Hamburg Süd and the reorganisation of the invested capital through earnings, cash conver-
company from the conglomerate structure of sion and capital discipline. The improved financial performance was achieved
the past, to the integrated and focused company through a combination of strong cost control,
structure of the future. 2. Non-Ocean revenue increased by 0.1% when a solid network in Ocean and increased collab-
adjusted for the closure of the dry factories oration between our terminals and liner opera-
in Maersk Container Industry, compared to a tions. Finally, improved earnings and volumes in
growth of 6.3% in 2018. This was led by strong strategic parts of our logistics offerings in ware-
growth in gateway terminals, only partly offset house and distribution, custom house brokerage
by a small decline in Logistics & Services due and inland services contributed to the overall
to extraordinary high volumes in Q4 2018 and improvement.
a decline in Manufacturing & Others.
“The execution of our strategy has Safety remains a topic of vital concern. Sadly,
allowed us to deliver improved financial 3. Gross profit in Logistics & Services increased by
8.9% in 2019 led by the growth in inland ser-
in 2019 three of our colleagues and two con-
tractors lost their lives while working for
performance, while making meaningful vices, intermodal, warehouse and distribution A.P. Moller - Maersk. We will continue to do our
and custom house brokerage. This was a solid utmost to ensure a safe and secure work environ-
progress on our transformation.“ improvement, however, gross profit comes from ment for our employees. In 2019, we launched
a low level and we need to accelerate growth our new safety approach, which focuses on leader-
further in the years to come. ship accountability, capacity for safe operations,
and safety culture. We remain committed to
4. Finally, we achieved our synergy target on the improving our safety record and will not be satis-
Hamburg Süd integration and through the inte- fied until we reach our ambition of zero fatalities.
gration of the transport and logistics parts of
our business by June 2019. By year-end 2019,
Simpler and better customer

experience
A cornerstone of our strategy is to significantly
simplify the customer experience and increase
customer value. In 2019, we managed to signifi- “Good leadership, strong talent and the right combination of
cantly improve customer satisfaction levels as
we made customer interactions more seamless,
current and new capabilities are key to ensuring that all activities
offered more value-added services and reposi- stay focused on our customers and on our strategic priorities.
tioned our strong brand.
It is embedded in the strong A.P. Moller - Maersk culture to take
We control key assets in the physical value chain,
which gives us a competitive edge. We are the only
care of today, while actively preparing for tomorrow.“
end-to-end logistics provider that owns a global
container liner network, a global terminal net-
work and a sizeable share of warehouses. By inte-
grating our operations and assets with technol-
ogy, we can continuously offer new products to
our customers and better meet their individual
supply chain needs.
To deliver on customer requirements of transpar- segment under the A.P. Moller - Maersk brand. saving time and costs for all players across 2020 – continuing to perform
ency and predictability, we launched a new prod- Going to market as one sales force enables fully the industry. while we transform
uct, Maersk Spot, in May 2019. Maersk Spot offers integrated value propositions and much simpler Focus remains on developing our end-to-end
fixed prices and a loading guarantee and was interactions to the benefit of our customers. TradeLens is processing over 10 million discrete offering through an even stronger Ocean product
immediately well received with a strong market shipping events and thousands of documents while expanding and scaling our logistics and ser-
adoption accounting for 24% of short-term vol- Frontrunning a technology shift each week. This provides shippers, carriers, freight vices portfolio. The growth in logistics will be sup-
ume by year-end 2019. in the industry forwarders, customs officials, port authorities and ported by the acquisition of the USA based com-
Among industries, container logistics has not been inland service providers with a common view of pany Performance Team with strong capabilities
In container logistics, speed and cost efficiency an early adopter of new technologies. One of the transactions and enables users to collaborate more within warehousing fulfilment services, e-com-
remain key customer concerns. We stay focused main challenges in the industry is too many and too efficiently with real-time access to shipping data. merce, inland transportation and distribution ser-
on offering easy-to-use self-service solutions that complex paper-based processes and lack of com- vices. Also, we are committed to securing long-
enable our customers to quickly help themselves, mon industry standards for data flow. As the global Another aspect of the digital transformation is term profitability in our terminals business and
primarily through Maersk.com. Our website has leader of container logistics, A.P. Moller - Maersk optimising utilisation of our assets. One example continue the strong developments from 2019.
become one of the world’s largest B2B transac- is taking the lead to digitally transform core pro- is in terminals, where we are introducing semi-
tional websites, conducting more than USD 20bn cesses in the industry. automated operations at Pier 400, Los Angeles – Cost leadership is imperative in a competitive
per year in business. the largest container terminal in North America. market with uncertainties.
TradeLens, a digital platform developed jointly The aim is to increase efficiency and safety, and
A step change was made in early 2019 when we by IBM and Maersk in 2018, is one example where to reduce emissions. When the project is finished, To further fund the transformation, we continu-
combined the sales forces of our land-based blockchain technology allows increased trans- truckers will see their entry/exit times at the ter- ally improve our operating results while delivering
Logistics & Services products and our Ocean parency and more efficient information exchange minal go down from 105 minutes to 35 minutes. strong free cash flow and reducing investments in
the Ocean business. We continue to reduce CAPEX Good leadership, strong talent and the right com- By the end of 2019, we took one step further in
spend, with CAPEX guidance lowered to an accu- bination of current and new capabilities are key to the integration of the business structure. Changes
mulated USD 3-4bn over the coming two years. ensure that all activities stay focused on our cus- were made in the Executive Board with Vincent
tomers and on our strategic priorities. It is embed- Clerc being appointed CEO of Ocean & Logistics
The year 2020 will be marked by new regulations ded in the strong A.P. Moller - Maersk culture to and Henriette Hallberg Thygesen joining as CEO
on sulphur emissions (IMO 2020) that went into take care of today, while actively preparing for of Fleet & Strategic Brands. Furthermore, it was
effect on 1 January. We fully support the industry tomorrow. announced on 12 February 2020, that Patrick Jany
move towards low sulphur fuel to reduce pollu- will take up the position as CFO and member of
tion. We are well prepared to comply while miti- The outlook ahead is for low economic growth and the Executive Board from 1 May 2020.
gating the increased fuel expenses by lowering low demand growth for seaborne goods. We plan
our bunker consumption and passing on the addi- accordingly and maintain flat capacity to support These structural changes allow for even closer
tional cost to customers. utilisation and low cost. collaboration that will strengthen our execution
power.
Committed to enabling cost-competitive,
simple and sustainable global trade Thank you for your continued support
Only through a level playing field for global trade With the progress demonstrated in 2019 we have
can we enable exporters to sell their products completed the first phase of our transformation.
around the world, and importers to source from We remain committed to becoming an integrated
the most competitive suppliers, no matter where transport and logistics company, delivering a higher
they are located. Global trade creates jobs, eco- return to our shareholders, while enabling global
nomic growth and consumption opportunities trade in an affordable, simple and sustainable way.
that raise the quality of life.
On behalf of the Board of Directors and the man-
As the world’s largest operator of container ves- agement team, we would like to extend our sincere
sels, we have a responsibility to pioneer when it gratitude to all our employees around the globe
comes to climate change. We continue to reduce for their continued passion, efforts and dedication
our CO₂ emissions and work towards reaching car- to A.P. Moller - Maersk who’s loyalty and contribu-
“By integrating our operations and assets bon neutrality in our Ocean segment by 2050. On tions have enabled our unique position and is the
with technology, we can offer new products the operational side, we have reduced our bun-
ker consumption by 6.7% since 2018, and our CO₂
foundation for our future.
and value propositions to our customers efficiency has improved by 5.2%. Jim Hagemann Snabe
Chairman
and better meet their individual supply Good corporate governance remains a high prior-
chain needs.“ ity, and in 2019 the Board of Directors added new
members with the election of Bernard L. Bot and
Søren Skou
CEO
Marc Engel, bringing in supplementary capabilities
in finance and logistics.
2019 Directors’ report Financial review
Financial review
Financial and operational performance Financial expenses, net, amounted to USD 758m
A.P. Moller - Maersk reported a revenue of USD (USD 766m), due to lower dividends received from
38.9bn (USD 39.3bn), emphasising the focus on Total S.A. of USD 13m (USD 238m), partly com-
improving profitability and cash flow after a strong pensated by lower debt in 2019.
revenue growth when integrating Hamburg Süd
A.P. Moller - Maersk reported an EBITDA of USD 5.7bn (USD 5.0bn) in 2018. Tax increased to USD 458m (USD 398m), mainly
in line with the upgraded EBITDA expectations announced in due to changes in temporary differences in
October 2019. The increase in EBITDA of USD 714m, mainly driven EBITDA increased by 14% to USD 5.7bn (USD 5.0bn), deferred tax.
reflecting a margin of 14.7% (12.7%), mainly coming
by an increase in Ocean of USD 574m and supported by capacity
from the increase of 15% in Ocean to USD 4.4bn The continuing operations reported a profit of
management and lower costs, resulted in a higher result than set (USD 3.8bn), driven by a lower cost base due to USD 509m (loss of USD 755m) while the result for
in the initial guidance for 2019. Cash flow from operating activities capacity management and lower bunker price discontinued operations was a loss of USD 553m
was strong with a continued strict capital discipline. and consumption. EBITDA includes restructuring (profit of USD 3.8bn). The result for 2018 was
costs of USD 104m, while the impact from foreign positively impacted by an accounting gain of USD
exchange rates was negligible. 2.6bn from the closing of the Maersk Oil trans-
action. The net result for both continuing and
EBIT was USD 1.7bn (USD 409m), reflecting an discontinued operations was a loss of USD 44m
EBIT margin of 4.4% (1.0%), negatively impacted (profit of USD 3.0bn).
by net impairments and write-downs of USD 29m
(USD 757m). The impairments and write-downs in The underlying result for continuing operations
2018 were related to Maersk Supply Service, the after financial items and tax was a profit of USD
RoRo activities and the closure of Maersk Con- 546m (loss of USD 61m), due to the improved
tainer Industry’s factories in Chile and China. operational performance.
Highlights for the year

USD million Revenue EBITDA CAPEX ¹ 1 See definition
2019 2018 2019 2018 2019 2018 on page 149. IFRS 16
Ocean 28,418 28,366 4,356 3,782 1,172 2,279 The financials are materially
impacted by the implementa-
Logistics & Services 5,965 6,082 238 191 128 47 tion of IFRS 16.
Terminals & Towage 3,894 3,772 1,107 998 530 556 Comparative figures for 2018
have been restated in the
Manufacturing & Others 2,172 2,787 205 163 204 358 Directors’ report to provide the
reader with a relevant basis for
Unallocated activities, eliminations, etc. -1,559 -1,750 -194 -136 1 -21 assessing the development in
the financial performance.
A.P. Moller - Maersk consolidated
38,890 39,257 5,712 4,998 2,035 3,219
– continuing operations
ROIC for continuing operations increased signifi- (USD 1.5bn), partly offset by a 2029 USD 500m Total equity was USD 28.8bn (USD 33.2bn), with
cantly to 3.1% (0.2%) but remains at an unsatisfac- bond issuance in Q2. the decrease mainly driven by the demerger and
tory level below the target of minimum 7.5%. separate listing of Maersk Drilling of USD 3.4bn
The contractual capital commitments totalled along with the USD 469m ordinary dividend paid
Cash flow from operating activities was USD 5.9bn USD 1.7bn, of which USD 1.2bn related to com- in April and share buy-backs of USD 791m, resulting
(USD 4.4bn), driven by EBITDA of USD 5.7bn and mitments towards terminal concession grantors. in an equity ratio of 52% (53%).
improvements in net working capital of USD 477m, Strong commitment to capital discipline and a
leading to a cash conversion of 104% (89%). focus on free cash flow generation continue to The liquidity reserve increased slightly to USD
be key areas. 10.5bn (USD 10.3bn), as cash balances increased
Gross capital expenditure (CAPEX) was USD 2.0bn mainly from the sale of the remaining Total S.A.
(USD 3.2bn), reflecting a continued capital disci- Capital structure, issue of bonds shares, partly offset by a number of undrawn
pline with most of the reduction in CAPEX coming and credit rating revolving facilities expiring in 2020.
from the Ocean segment. Net interest-bearing debt decreased to USD 11.7bn
(USD 15.0bn), driven by cash flow from operating The ordinary dividend of DKK 150 per
Free cash flow was USD 6.8bn (USD 5.1bn), driven activities of USD 5.9bn, positive cash flow used for A.P. Møller - Mærsk A/S share of nominally DKK
by cash flow from operating activities of USD investing activities of USD 874m due to the sale 1,000 (in total equal to USD 469m), declared at
5.9bn, the sale of the remaining Total S.A. shares of Total S.A. shares of USD 2.6bn in Q1 2019, partly the Annual General Meeting on 2 April 2019, was
of USD 2.6bn, partly offset by CAPEX of USD offset by the annual dividend of USD 469m, share paid on 8 April 2019.
2.0bn. Free cash flow less capitalised lease pay- buy-backs of USD 791m, financial expenses, net
ments was USD 5.0bn (USD 3.1bn), and USD 2.4bn payments of USD 736m and net new lease liabil- The Board of Directors proposes an ordinary divi-
(USD 0.1bn) when further adjusted for the sale of ities of USD 1.5bn. The increase in net new lease dend to the shareholders of DKK 150 per share of
Total S.A. shares. liabilities was mostly driven by a new terminal DKK 1,000 (DKK 150 per share of DKK 1,000). Of
concession with Tangier-Med II, Morocco, which the total proposed ordinary dividend, the DKK 75
A.P. Moller - Maersk made net repayments of went into operation in January 2019. per share relates to the company’s dividend policy
USD 2.7bn (USD 6.5bn), driven by repayments of of distributing between 30-40% of the underlying
three EUR bonds worth USD 1.0bn, repayment of Maersk remains investment grade-rated and holds net result to shareholders in dividend, while the
USD 650m of financing from the Hamburg Süd a Baa3 (stable) rating from Moody’s and a BBB remaining DKK 75 per share relates to the commit-
acquisition and repayment of leases of USD 1.3bn (stable) rating from Standard & Poor’s. ment of distributing a material part of the value of
the proceeds from the initially received Total S.A.
shares, supported by the strong free cash flow
Free cash flow

generation in 2019.
The proposed dividend payment represents an

ordinary dividend yield of 1.6% (1.8%), based on the
USD 6.8bn
Maersk B share’s closing price of DKK 9,608 as of
30 December 2019. Payment is expected to take
place on 26 March 2020.
During Q4, Maersk bought back 43,638 A shares

and 174,252 B shares worth DKK 1.9bn (USD 283m).
At 31 December, A.P. Moller - Maersk owns a total of

134,279 A shares and 587,949 B shares as treasury
shares, corresponding to 3.47% of the share capital.
Discontinued operations
The objective of finding structural solutions for
the oil and oil-related businesses was success-
fully accomplished for Maersk Tankers in 2017, for
Maersk Oil in 2018 and for Maersk Drilling in April
2019 as a demerger from A.P. Moller - Maersk
via a separate listing on Nasdaq Copenhagen on
4 April. Finally, in Q1 2019 it was decided to retain
Maersk Supply Service. The separation of the
energy-related businesses is thereby finalised.
A.P. Moller - Maersk recognised a loss of USD

553m for the Maersk Drilling activity, mainly due
to a negative fair value accounting adjustment of
USD 628m prior to the demerger.
Change in management
On 30 June 2019, Claus V. Hemmingsen stepped
down as Vice CEO and left the company. On
11 November, Søren Toft stepped down as COO
Growing the logistics side and left the company. On 25 November, Carolina
of the business, such as
warehousing and distri- Dybeck Happe announced her resignation and she
bution activities, remains Share buy-back will step down as CFO during 2020. On 17 December
one of the core priorities.
In Q2 2019, the Board of Directors decided to exer- 2019, it was announced that Henriette Hallberg
cise the authority to buy back shares in line with Thygesen was appointed member of the Executive
the previously announced intention to distribute a Board as per 1 January 2020.
material part of the proceeds from the sale of the
shares received in Total S.A., as part of the sale of The Executive Board consists of Søren Skou,
Maersk Oil. Carolina Dybeck Happe, Vincent Clerc, Morten
H. Engelstoft and Henriette Hallberg Thygesen.
From 4 June to 31 December 2019, Maersk bought On 12 February it was announced that Patrick Jany
back 134,279 A shares and 537,143 B shares worth will take up the position as CFO and join the Exec-
DKK 5.3bn (USD 791m). utive Board from 1 May 2020.
2019 Directors’ report Guidance for 2020
Guidance for 2020
A.P. Moller - Maersk expects earnings before inter- The outlook and guidance for 2020 is subject to
est, tax, depreciation and amortisation (EBITDA) of significant uncertainties and impacted by the cur-
around USD 5.5bn, before restructuring and inte- rent outbreak of the Coronavirus (COVID-19) in
gration costs. China, which has significantly lowered visibility on
what to expect in 2020. As factories in China are
The organic volume growth in Ocean is expected to closed for longer than usual in connection with the
be in line with or slightly lower than the estimated Chinese New Year and as a result of the COVID-19,
average market growth of 1-3% for 2020. we expect a weak start to the year.
The accumulated guidance on gross capital The guidance for 2020 is also subject to uncertain-
expenditure excl. acquisitions (CAPEX) for 2020- ties related to the implementation of IMO 2020
2021 is still USD 3.0-4.0bn. A high cash conversion and the impact on bunker fuel prices and freight
(cash flow from operating activities compared to rates combined with the weaker macroeconomic
EBITDA) is expected for both years. conditions and other external factors.
Sensitivities on guidance for 2020

The guidance of A.P. Moller - Maersk for 2020 depends on several factors. Based on the
expected earnings level and all else being equal, the sensitivities for 2020 for four key
assumptions are listed in the table below:
Factors Revenue Effect on EBITDA

(next 12 months)
Container freight rate +/- 100 USD/FFE +/- USD 1.3bn
Container freight volume +/- 100,000 FFE +/- USD 0.1bn
Bunker price (net of expected BAF coverage) +/- 100 USD/tonne +/- USD 0.4bn
Earnings guidance
Foreign exchange rate (net of hedges) +/- 10% change in USD +/- USD 0.2bn for 2020 is subject to
significant uncertainties.
2019 Directors’ report Five-year summary Amounts in USD million
Five-year summary 1/2

2019 2018 2018 2017 2016 2015 1 Following the classification of Maersk Oil, Maersk
incl. IFRS 16 incl. restated Drilling, and Maersk Tankers as discontinued operations
Income statement and MSS⁴ MSS³ in 2017, the businesses are presented separately on
an aggregated level in the income statement, balance
Revenue 38,890 39,257 39,280 31,189 27,646 30,769 sheet and cash flow statements. In accordance with
Profit before depreciation, amortisation and impairment losses, etc. (EBITDA) 5,712 4,998 3,809 3,546 2,579 4,633 IFRS, the income statement and cash flow statement
Depreciation, amortisation and impairment losses, net 4,287 4,756 3,737 3,263 3,851 2,533 have both been restated in previous periods, while
Gain on sale of non-current assets, etc., net 71 166 148 153 189 423 the balance sheet has not been restated in previous
Share of profit/loss in joint ventures 93 116 116 -131 130 147 periods. The Maersk Tankers transaction was closed on
Share of profit/loss in associated companies 136 -115 -115 101 -55 97 10 October 2017, the Maersk Oil transaction on 8 March
Profit/loss before financial items (EBIT) 1,725 409 221 406 -1,008 2,767 2018 and Maersk Drilling was demerged 2 April 2019.
Financial items, net -758 -766 -401 -620 -549 -468 2 See definitions on page 149.
Profit/loss before tax 967 -357 -180 -214 -1,557 2,299 3 2018 restated including Maersk Supply Service as con-
Tax 458 398 398 232 146 231 tinuing operations as reported in the financials pages
Profit/loss for the year – continuing operations 509 -755 -578 -446 -1,703 2,068
66-138.
Profit/loss for the year – discontinued operations¹ -553 3,787 3,787 -719 -194 -1,143
4 2018 presented as if IFRS 16 had been implemented
Profit/loss for the year -44 3,032 3,209 -1,165 -1,897 925
in 2018, for comparison purposes.
A.P. Møller - Mærsk A/S’ share -84 2,985 3,157 -1,205 -1,939 791
Underlying profit/loss – continuing operations:

Profit/loss for the year – continuing operations 509 -755 -578 -446 -1,703 2,068
Gain/loss on sale of non-current assets, etc., net -71 -166 -148 -153 -189 -422
Impairment losses, net 29 757 757 821 1,375 1
Transaction and integration cost 78 78 78 59 - -
Tax on adjustments 1 25 25 5 -30 11
Underlying profit/loss – continuing operations² 546 -61 134 286 -547 1,658
Balance sheet
Total assets 55,399 62,690 56,622 63,227 61,118 62,408
Total equity 28,837 33,205 33,380 31,425 32,090 35,739
Invested capital 40,555 49,255 43,209 46,297 43,491 43,510
Net interest-bearing debt 11,662 14,953 8,730 14,971 11,420 7,770
Investments in non-current assets – continuing operations 9,809 10,772 3,399 9,656 4,710 3,874
Cash flow statement

Cash flow from operating activities 5,919 4,442 3,228 3,115 1,675 4,653
Gross capital expenditure, excl. acquisitions and divestments (CAPEX) 2,035 3,219 3,219 4,050 2,105 3,776
Net cash flow from discontinued operations -372 3,968 3,967 1,824 822 225
2019 Directors’ report Five-year summary Amounts in USD million
Five-year summary 2/2

2019 2018 2018 2017 2016 2015 1 See definitions on page 149.
incl. IFRS 16 incl. restated 2 Excluding Hamburg Süd for comparison purposes.
Financial ratios¹ and MSS⁴ MSS³ 3 2018 restated including Maersk Supply Service as
continuing operations as reported in the financials
Revenue growth -0.9% 25.9% 25.9% 12.8% -10.1% -13.5% pages 66-138.
Revenue growth excl. Hamburg Süd 8.2% 8.3% 4 2018 presented as if IFRS 16 had been implemented
EBITDA margin 14.7% 12.7% 9.7% 11.4% 9.3% 15.1% in 2018, for comparison purposes.
Cash conversion 104% 89% 85% 88% 65% 100% 5 Share price and total market capitalisation for 2015-
Return on invested capital after tax (ROIC) – continuing operations 3.1% 0.2% -0.3% 0.6%² -3.4% 8.3% 2018 have not been adjusted for the effect of the
Return on equity after tax -0.1% 9.3% 9.9% -3.6% -5.8% 2.7% demerger of Maersk Drilling.
Equity ratio 52.1% 53.0% 59.0% 49.7% 52.5% 57.3%
Stock market ratios

Earnings per share – continuing operations, USD 23 -37 -30 -11 -25 84
Diluted earnings per share – continuing operations, USD 23 -37 -30 -11 -25 84
Cash flow from operating activities per share, USD 288 214 156 150 61 199
Ordinary dividend per share, DKK 150 150 150 150 150 300
Ordinary dividend per share, USD 22 23 23 24 21 44
Share price (B share), end of year, DKK⁵ 9,608 8,184 8,184 10,840 11,270 8,975
Share price (B share), end of year, USD⁵ 1,439 1,255 1,255 1,746 1,597 1,314
Total market capitalisation, end of year, USD m⁵ 28,000 25,256 25,256 35,419 32,215 27,587
2019 Directors’ report Market update
Market update Table 1: Market demand growth

by strong exports from Europe. North-South con-
tainer trade stagnated in 2019. Latin American
imports decreased slightly by 0.3%, reflecting weak Growth % (Y/Y) 2019 2018
macroeconomics, mainly in Brazil and Argentina Global market 1.4 3.8
and partly in Mexico. Import growth in the Middle East-West 2.0 3.1
Global container trade growth was weak in 2019, as expected. Growth East and Indian subcontinent declined margin- – Headhaul 1.1 5.1
ally by 0.4% in 2019, while African imports grew Asia-Europe 2.8 1.9
softened to around 0% in Q4 2019, and full-year growth ended at 1.4% Asia-North America -1.7 7.1
(3.8%), considerably weaker than in 2018. The slowdown reflected broad- by 4.0%. Finally, intra-regional trades posted mod-
– Backhaul 4.0 -0.7
est growth in 2019, mainly supported by strong North-South 0.5 3.8
based weakening across all the main economies. Negative effects from
Intra-European flows. Intra-regional 1.5 4.4
escalating trade restrictions also weighed on trade growth.
Modest container demand growth in 2019 reflects
the slowdown in global manufacturing and global
export orders. For 2020, global container demand a bit at the end of 2019, and some improvement
is projected to grow by 1-3%. The continued weak can be expected on the back of stabilising inven-
Effective supply growth was contained during the global sentiment above all in the manufacturing tory dynamics. Aside from the cyclical slowing of
year because of the moderate number of new ves- sector reduces the likelihood of a material growth the global economy, substantial risk to global con-
sels entering the market and the increase in the pick-up in 2020, although sentiment brightened tainer demand comes from the effectiveness of
number of idled vessels. Therefore, despite the soft
market demand, market fundamentals were more
supportive of freight rates than in recent years, and
freight rates increased slightly compared to 2018.
Market developments Chart 1: Global, East-West and North-South container imports

Container trade growth on the East-West trades
Container demand volumes, y/y growth (%) Global
grew 2.0% in 2019 (Chart 1 and Table 1). Solid North-South
trade flows in the first part of 2019 were coun- Intra-regional
terbalanced by negative demand growth in the 8 East-West
last quarter. European import growth from Asia Global
6 Source: Internal Maersk.
was very strong in H1 2019 (5.1%) but moderated
Note: Global growth North-So
sharply to 0.6% in H2, bringing it closer in line 4 slowed down markedly
with Europe’s underlying economic fundamentals. Intra Reg
in 2019, as expected.
North American container imports were under 2
East-Wes
pressure during most of 2019 due to the US-China
0
trade restrictions and slowing US capital expendi-
tures, and consequently declined compared to -2
2018. Meanwhile, Asian imports from the US and
-4
Europe (East-West backhaul) showed solid growth
in 2019, as the negative impact of trade restric- 2015 2016 2017 2018 2019
tions on the US-China trade was more than offset Q4 Q4 Q4 Q4 Q4
fiscal and monetary policy in major economies, bilateral trade between the US and China and led
such as the US and China. The global economy is to shifts in trade structure. So far, US importers
vulnerable to a spike in oil prices caused by geo- have shifted imports away from China to other
political tensions, and the outcome of the Brexit countries such as Vietnam, Korea, Thailand, India,
negotiations poses a risk to UK and European con- Mexico, and Europe. Globally, the implemented “Modest container demand growth in
tainer trade. Moreover, the recent escalation of the
coronavirus adds to short-term downside risks,
trade restrictions have reduced container trade
by 0.5-1.0% in 2019 via direct and indirect chan-
2019 reflects the slowdown in global
while the longer-term impact will likely be limited. nels, such as deteriorating sentiment and busi- manufacturing and global export orders.
Finally, US-China trade negotiations remain a sig- ness investments. Despite some relief of the
nificant uncertainty. US-China trade restrictions towards the end of For 2020, global container demand is
Trade restrictions, mainly between the US and
2019, uncertainty about the outcome of sub-
sequent trade negotiations and the impact on
projected to grow by 1-3%.“
China and partly between the US and the EU, trade remains large. Meanwhile, the US contin-
intensified in 2019, and the trade restrictive ues to threaten to introduce higher tariffs on EU
measures introduced since 2018 impact around imports, for example on the automotive indus-
USD 640bn worth of traded goods, correspond- try. Overall, the negative impact on container
ing to nearly 4% of the global value of traded volumes from the trade war is expected to be the 2020 US Presidential elections is not expected
goods. The trade restrictions have reduced within 0.5-1.0% again in 2020. The outcome of to significantly change the US stance on its foreign
trade policy.
The global container fleet stood at 23.2m TEU at

the end of 2019, 4.1% higher than at the end of 2018.
Deliveries amounted to 1,059k TEU (148 vessels) in
Chart 2: Global container demand and nominal supply growth 2019 and were evenly distributed during the year.
Deliveries were dominated by vessels larger than
y/y growth, (%) Global container demand
Nominal capacity
10k TEU. Around 208k TEU were scrapped in 2019,
Effective capacity likely reflecting scarce market availability of some
10 vessel segments as ships were removed tempo-
Source: Demand and Global container
Effective capacitydemand rarily from service to install fuel scrubbers, pri-
8 effective supply is internal
marily in the +10k TEU segment in preparation for
Maersk and nominal Nominal capacity
6 supply is Alphaliner.
IMO 2020 regulations in January 2020. The reverse
Note: Global demand impact, when these vessels are redeployed back in
4 outgrew effective supply service, will add to effective supply and increase
in 2019. the risk of oversupply, mainly in H2 2020. Idling
2
totalled 6.1% (1,417 TEU) of the fleet at the end
0 of 2019. The idle fleet bottomed out in Q2 and
began to increase in the following two quarters,
-2 mainly because vessels were taken out of service
2012 2013 2014 2015 2016 2017 2018 2019 for scrubber retrofitting. Consequently, effective
Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 capacity increased less than 1% in 2019 (Chart 2).
784k TEU were ordered in 2019, corresponding to Chart 3: Freight rates

orderbook-to-fleet ratio of 10% at the end of the
Index 1998 = 100 CCFI 2019
year. According to Alphaliner, the nominal global
CCFI 2018
container fleet will grow by 3.5% in 2020. Effective
CCFI 2017
supply is projected to increase by 1-3% (internal 950
estimate), in line with global headhaul demand. Source: C

900
Thomson/Reuters.
C
Source: CCFI,
Freight rates, as measured by the China Composite 850
Shanghai Shipping
Freight Index (CCFI), were on average 0.7% higher C
Exchange.
than in 2018, supported by headhaul demand 800
Note: 2019 freight
slightly outgrowing average effective capacity rates were on aver-
750
(Chart 3). Freight rates held up firmly in the first age slightly higher
than in 2018.
part of the year but began to decline in H2 as 700
demand weakened and bunker prices fell. Freight
rates fell on the Asia to North Europe route by 650
4.5% but strengthened by 4.8% from Asia to Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Mediterranean Europe. Asia to US West Coast
freight rates were stable by negative 0.1%, while
Asia to US East Coast fell by 1.3%. Uncertainties
relating to the strength of container demand and
the dynamics of instalments of fuel scrubbers
continue to pose a risk to the developments of
freight rates in 2020.
The shipping industry successfully prepared for Singapore is the largest bunker port in the world According to Drewry, port throughput volumes Weak growth in global trade volumes in 2019
the IMO 2020 fuel specification switch to 0.5% accounting for an estimated quarter of global bun- grew by 2.3% in 2019. Ports on the US East Coast weighed on the broader logistics segment. Gross
sulphur fuels in Q4 2019. Demand for high-sulphur ker sales and has experienced an active and vola- recorded solid volume growth, while US West margins in the freight forwarding market remain
fuel oils fell substantially and Singapore and tile pricing period in the last months ahead of the Coast saw declining volumes, and activity in the under structural pressure from digital offerings.
Rotterdam high-sulphur fuel oil prices declined specification switch. Singapore’s low-sulphur 0.5% Far East ports stagnated. In line with projections Freight forwarders are attempting to mitigate
by 20% and 22% from Q3 to Q4, respectively, aver- fuel oil posted prices above that of LSMGO for a for ocean trade, global port throughput growth is these pressures by selling value-added services on
aging USD 350/tonne (t) and USD 273/t in Q4. period of 19 trading days at the end of December expected to be slightly higher in 2020. The con- top of basic freight forwarding products and by
Demand for low-sulphur 0.5% fuel oil increased as 2019 till early January 2020 highlighting the tight tainer port industry continues to combat struc- developing their own digital offerings to be com-
carriers prepared ahead of the 1 January transition demand of low-sulphur fuel oil in the Asian region. tural challenges stemming from the cascading petitive against new entrants. Additionally, the air
date. Low-sulphur fuel oil prices rose by 4.4% in We expect further volatility in the fuel prices in the of large container vessels, reinforced carrier forwarding market is under pressure as a result of
Singapore and dropped by 1.5% in Rotterdam mov- major trading regions through mid-2020 before alliances and capacity increases in many ports. the trade restrictions between the USA and China.
ing into Q4 from Q3, averaging USD 576/t and USD some stability returns. The increased load on terminals is triggering
518/t in Q4, respectively. Low-sulphur 0.5% marine requirements for upgrades of the terminal infra-
gasoil (LSMGO) prices also gained, rising by 1.4% The other transport and logistics markets were structure, equipment, manning and planning
q/q to USD 599/t in Singapore and 0.7% q/q to USD in broad terms impacted by the dynamics and capabilities, leading to more capital expenditure
568/t in Rotterdam in Q4 over Q3. market drivers that steered the ocean industry. and operational cost, but lower utilisation.
Technology and future supply chains the need for labour. Technologies enabling recy- will become more distributed than today. For For example, if global battery production and
Macroeconomics, market-specific conditions, and cling and closed-loop product life-cycles will example, if the current trend of apparel produc- supply becomes more China centred, automotive-
technology are key factors that determine the suc- impact multiple supply chains. tion moving out of China to other Asian econo- related ocean volumes will be positively impacted
cess of our business. We therefore pay close atten- mies continues, while the textile and yarn supply by increased electric vehicles sales compared to
tion to global economic trends and technology While technology is a key driver of change in supply chain remains largely unchanged, total contain- a business-as-usual case. In contrast, if battery
developments in the regions and verticals in which chains, time-to-impact cannot be assessed with- erised trade will grow more rapidly compared to a technology evolves toward smaller and lighter units
we operate. This enables us to adjust our strategy out understanding the industry context, the com- business-as-usual case. In contrast, if automation or is more distributed, automotive-related ocean
and market positioning to capitalise on opportuni- mercial setting, industry structure and potential technologies prove to be commercially viable, volumes might be negatively impacted by increased
ties and to manage risk. adoption rates. We therefore engage with external and the yarn and textile supply chain ecosystem sales compared to a business-as-usual case.
experts and industry players to develop a holistic moves closer to new production locations, total
Future supply chains may look very different to perspective on potential impacts. Some high-level containerised trade will be weaker compared to
today’s supply chains: closer to the end-customer, findings follow for two industry verticals. a business-as-usual case.
fewer intermediate and raw inputs traded, and
more regional/local. As noted in the Annual Report Apparel industry — the outlook for the global Automotive industry — the outlook for the sup-
2018, change in the structure of global trade flows supply chain will be determined by the interaction ply chain will be determined by the interaction of
is already apparent as evidenced by the declining between the pace of automation in apparel pro- progress in battery technology and the degree to
trade-to-GDP multiplier (Chart 4). duction and whether textile and yarn production which battery production is distributed globally.
Technology is working as a key pull and push factor

shaping global trade flows: by empowering individ-
uals to demand goods whenever and wherever they
choose, supply chains are being pulled closer to the
end-customer and are required to be more respon-
sive to changing demand patterns. By reducing Chart 4: Global GDP multiplier
labour-cost arbitrage through automation, tech-
Multiplier 2019-2020
nology is enabling or pushing production of goods Negatively impacted by Multiplier 2001-2018
closer to the customer on commercially viable trade restrictions Trend line
terms. Rising tariff barriers and environmental 8
concerns accelerate these trends. The GDP multipliermultiplier

is
7
expected to rebound
6 a bit to 0.8 in 2020.
Technology is also challenging the business mod-
els of some of our largest customers and the sup- 5
ply chains of entire industries. For example, elec- 4
tric vehicles will change the automotive supply
3
chain and threaten the installed base of OEMs.
Vertical farming techniques that enable produc- 1.8 2
1.4 1.2
tion to occur independently of the external envi- 0.8
0.6 1
ronment and close to the end-customer are begin- 0.3
ning to show promise, as are innovations in the 0
production of apparel and footwear that reduce 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
2019 Directors’ report Our business
Our business
Business model
Strategy
Reliability on the spot
Sustainability
Keeping cool in a hot market
Risk management
2019 Directors’ report Our business Business model
Business model Value created

Our customers — by connecting and simpli-
fying supply chains, we enable our custom-
As the leading global player in container shipping and with a sizeable ers to focus on growing their businesses.
share in container terminals, A.P. Moller - Maersk enables people to Our people — bring skills and capabilities
that are key to our business and it remains
trade and communities to grow by transporting goods anywhere. crucial to keep them safe and engaged while
offering interesting career paths in enabling
global trade.
Our investors — in our transformation to

become the global integrator of container
logistics, we continue to find new ways to
innovate and grow the value of the company
for shareholders.
START Collect the goods Store the goods Clear the goods for departure The society — given our global presence
Meet the customer Production: Picked up at the
customers’ facilities at any
Warehouse: Goods are stored or
managed throughout the supply
Export terminal: Taken
through customs promptly
and impact, we have the responsibility and
opportunity to ensure open and inclusive
Booking Set for reliable and cost-efficient place in the world. chain, based on customers’ needs. and efficiently.
trade that allows people and societies to
shipping to the final destination.
grow and prosper.
The environment — our industry is a sig-
Key resources nificant contributor to global greenhouse

gas emissions, which is why we have set
Our people and culture — our talented and ambitious CO₂ targets and work with key
diverse group of 80,000 employees live our stakeholders to change the wider industry.
core values every day in their dedicated efforts
to help customers realise their ambitions.
Our brand — for more than a century, we have

built trusted partnerships with our custom-
ers, enabling them to prosper by facilitating
global trade.
ALL THE WAY
CARBON NEUTRAL
Transport the goods Connecting and simplifying

Assets and delivery network — our assets END
Transportation: Moved by the world’s our customers’ supply chains
Deliver the goods
coupled with our expertise in managing and most sustainable fleet through Maersk’s
developing the end-to-end delivery network global transport network.
empower our customers to efficiently manage Customer warehouse or shop Seamlessly
their supply chains. delivered at the destination of the customers’
preference.
Technology and IT — are key to enhancing our
operational performance and core processes
and play an important role in enhancing solu-
tions for our customers.
Stakeholder relationships — we rely on con-

structive relationships with partners such as MARKET
customers, suppliers, peers and authorities to

maintain supportive framework conditions.
Financial capital – we have a strong balance Clear the goods at arrival Store the goods
sheet and are committed to remain investment Import terminal: Taken through customs Warehouse: Stored and managed for
grade-rated. promptly and efficiently. optimisation of stock, costs and inventory days.
2019 Directors’ report Our business Strategy
Strategy
Becoming the global integrator Creating a portfolio of end-to-end
of container logistics products/services
The vision of becoming the global integrator of The next phase in the strategy is about growing
container logistics rests on three pillars: the business by innovating existing products com-
• Creating a portfolio of end-to-end products/ bined with selling landside logistics products to
Maersk is on a transformation journey to become the global services. our existing customers – as well as growth in our
integrator of container logistics, connecting, and simplifying • Seamless customer engagement. Terminals & Towage business.
our customers’ supply chains. • Superior delivery network end-to-end.
Product innovation is critical to providing new and
The first phase of strategy execution focused on increased value to Maersk customers, while at the
improving the customer experience and the finan- same time addressing the inefficiencies of the
cial performance of the Ocean business to create industry. Maersk has made good progress on add-
a strong foundation for the next phases of the ing new products in 2019, which is essential for
strategy. The tools have been better reliability, creating a portfolio of end-to-end products/ser-
better service to customers, defining and selling vices. On the oceanside, Maersk Spot has been
unique products, as well as continuing to reap ben- launched – a new Ocean product with equipment
efits from scale and other cost benefits. Maersk and load guarantee. This product has been very
has seen significant progress in these areas since positively received by the customers and by year-
the strategy was launched in the fall of 2016. end 2019, Maersk Spot makes up approximately
Ocean L&S
Global trade is a key contributor to economic devel-

opment, enabling exporters to sell their products in
all relevant markets and importers to source goods
and parts from the most competitive suppliers
around the world.
Container logistics play a significant role in global

trade by reducing trade barriers through reduc-
ing the cost of transportation. Maersk has played
a vital role in container logistics for more than 40
years and takes pride in this contribution to global
growth and wealth. Maersk’s strategy is to accel-
erate that contribution by reducing complexity
and waste along the global containerised supply
chains. Maersk has designed the strategy around
its customers’ needs and pain points, hereby cre-
ating a market opportunity that will deliver value Past Present Future
to customers as well as profitable growth and An offering centred around Ocean, Differentiated ocean products and a broader Differentiated and relevant value propositions
improved performance for Maersk. with some value-added services portfolio of logistics and services to suit individual customer needs
Digitising the global supply chain Seamless customer engagement as an integrated part of the service. Data inte-
Adding more products is fundamental towards gration, where Maersk provides customers with
Maersk.com
becoming the global integrator of container logis- live data insights to optimise their supply chain is
tics. However, in the future, Maersk’s aspiration is becoming increasingly important. Here Maersk has
not just to have more products available but to be made significant progress with TradeLens, which
59% of bookings via able to configure these into differentiated value now has Ocean partners signed up representing
Maersk.com propositions to suit individual customer needs around 66% of global container capacity as well
(as illustrated). This requires enhanced capabilities as 98 terminals live, and 22 customs authorities
to integrate data and to integrate operational engaged in pilots or exchanging data.
Value-added services
processes, something which Maersk is currently
available online
working on and investing in. Another key element of seamless customer
engagement is how Maersk aspires to meet the
Digitisation is a critical element of improving customers as per their individual preferences,
Maersk’s operational performance, creating new and to enable that Maersk merged the frontline
products, and not least creating a seamless cus- organisations of Ocean and Logistics & Services
tomer engagement. Maersk’s primary customer in 2019. This integration effort, which involved a
engagement platform, Maersk.com, is one of the new organisational model in more than 130 coun-
world’s largest B2B platforms. Maersk is bring- tries and a new operating model for 22,000 col-
ing more of its inland products onto Maersk.com, leagues, was executed throughout H1 2019, and
and in 2019 went live with customs house broker- the new model is now operational and delivering
age in 22 new countries, where customers with a much improved interface between Maersk and
TradeLens
a click of a button can select customs clearance its customers.
24% of Maersk’s total spot volumes. On the land-
side, Maersk acquired the US-based customs
brokerage firm Vandegrift in Q1 2019, which is a 98 ports and terminals
strong addition to the Logistics & Services port- directly integrated
folio. In the coming years, Maersk plans to add
more new products and capabilities through
value-creating acquisitions within areas where 66% of global container “We have begun a journey towards having
Maersk can add value and solve pain points for
its customers, such as customs house brokerage,
capacity committed to
the platform
net-zero CO₂ emissions from our own
warehousing and distribution and supply chain operations by 2050. This is an important
management. The current M&A pipeline consists of
acquisition targets each of them with a value well ambition and one we can only deliver on in
below USD 1bn. The value creation logic in the M&A
strategy is based on creating additional value to
collaboration with many other stakeholders.“
our existing customers, hence the majority of syn-
ergies from M&A will come from commercial syn- Søren Skou, CEO of A.P. Møller - Mærsk A/S
ergies and less from cost synergies – although the
latter will also be pursued to the extent possible.
The efforts to improve the customer experience is quartile of global carriers in the industry. Cost between the transport and logistics businesses segments disproportionate to the former, includ-
paying off, and over the past two years customer leadership remains essential and in 2019 Maersk exceeding the USD 1.0bn target as well as from ing acquisitions in landside logistics, as previously
satisfaction has been steadily increasing, reaching reduced its unit cost by 1.7% at fixed bunker. completing the integration of Hamburg Süd. More described, to create a more diversified business
an all-time high level in 2019. Going forward, Maersk remains committed on synergies remain, and Maersk is constantly look- model and rebalanced operating profit (EBIT). In
lowering the total operating costs, excluding ing for innovative ways to identify synergies and APM Terminals, growth will come from further
Superior delivery network end-to-end bunker fuel cost and to deliver 1-2% unit cost take out cost. In addition, Maersk is fundamentally improvement of existing operations and completing
The foundation of Maersk’s strategy is a superior at fixed bunker reductions per year. In parallel, re-architecting its process and applications land- ongoing terminal projects. In the future, Maersk
delivery network end-to-end, which delivers on Maersk continues reducing the CO₂ emissions scape, re-engineering core processes end-to-end, does not expect to venture into new greenfield
fundamental needs for getting goods to the right and by 2019 had reduced relative consumption and replacing a set of ageing legacy applications projects but will consider brownfield and M&A as
place, at the right time, at the right price, with by 41.8% compared to 2008 baseline. Maersk’s with modern, cost-efficient applications that can means to deliver profitable growth in the Terminals
minimum environmental impact. ambition of 60% reduction by 2030, and net-zero properly support an integrated container logis- & Towage segment.
emission by 2050, will require significant inno- tics company. Many fundamental building blocks
Late 2017, Maersk acquired Hamburg Süd to vation in new fuel types, which Maersk is spear- in this effort have been selected and are being Over the past three years, Maersk has deleveraged
strengthen the Ocean network, and throughout heading together with industry stakeholders. implemented with first major releases in 2020. with more than USD 10bn via strict CAPEX disci-
2019 the networks of Hamburg Süd and Maersk pline in Ocean and not starting new greenfield ter-
became fully integrated delivering annual cost The Maersk organisation is changing from a con- Growth with focus on Logistics & Services minal projects. This has contributed to a strong
synergies above expectation. In 2019, Maersk has glomerate of independent businesses to one inte- and Terminals & Towage balance sheet and by that the needed investment
improved reliability in Ocean by 10 percentage grated container logistics company. The integration In 2019, Maersk had 73% of the revenue in Ocean, capacity to deliver on the growth plans described
points, placing Maersk (both the Maersk and is delivering significant synergies, and by end 2019 15% in Logistics & Services, and 10% in Terminals above and at the same time be able to distribute
Hamburg Sud brands) consistently in the top Maersk realised USD 1.2bn in combined synergies & Towage. Maersk will grow the two latter cash to shareholders.
Keeping track of the transformation

To measure the transformation, Maersk is track-
ing four transformation metrics in addition to the
overall ROIC target of creating an ROIC above 7.5%.
Non-Ocean revenue increased by 0.1% in 2019,

Tracking the transformation adjusted for the closure of production facilities in
Transformation metrics 2019 2018 2017 1 Non-Ocean revenue Maersk Container Industry, which accounted for
decreased by 2.9% in 2019 USD 345m of revenue in 2018. Logistics & Services
Non-Ocean, revenue growth 0.1% ¹ 6.3% 5.6% before adjusting for the improved gross profit by 8.7% to USD 1.2bn, reflect-
closure of the production
Logistics & Services, gross profit growth 8.7% 7.9% N/A ing a gross profit margin of 20%. Cash return on
capacity in Maersk Con-
tainer Industry.
invested capital (CROIC) increased to 9.3% in 2019
Realisation of annual synergies worth approx. due to strong free cash flow. Finally, combined syn-
USD 1.0bn in total by 2019, USDbn (accumulated) 1.2 0.7 0.1
ergies from the Hamburg Süd acquisition and from
Cash return on invested capital (CROIC) 9.3% 2.8% -2.8% the integration of the transport and logistics activ-
ities increased until end 2019 and came to USD
Long-term target 1.2bn, thereby exceeding the original target. As the
bulk of the synergies are now delivered, we will
Return on invested capital after tax (ROIC) 3.1% 0.2% N/A
stop reporting this metric going forward.
2019 Directors’ report Our business Reliability on the spot
ALL THE WAY
Reliability
on the spot
CUSTOMER EXPERIENCE | Providing customers with an
efficient and reliable experience is essential for Maersk’s
growth. Maersk Spot is offering transparent prices and
loading guarantee while ensuring higher operational
predictability and stronger commitments from customers.
Customers do not like disruptions to their supply

chains. However, it is not uncommon to see over-
bookings in shipping to secure high utilisation. The
industry continues to face the challenge of highly
volatile overbooking rates with an average of
20-30%, making it difficult to plan operations.
For customers such as The Ramco Cements Limited,

this cycle was creating a lot of frustration and
uncertainty.
“We send around 120-200 containers to Colombo

every week from Kattupalli port, near Chennai.
Making bookings one to two weeks in advance is
With equipment and load- important to ensure that we can deliver to our cus-
ing guarantees, customers tomers on time, with the best deal possible,“ said
experience a new level of
reliability that ensures a Ramakrishnan Damodaran, Dy General Marketing
timely delivery to market. Manager of The Ramco Cements Limited.
2019 Directors’ report Our business Reliability on the spot
“Even though we are proactive about our book- Less uncertainty, more transparency
ings, there were cases where our shipments were Efficiency, reliability and competitive pricing are
not loaded due to capacity issues which resulted in the three anchors of the Maersk Spot booking
customers losing trust in us,“ Ramakrishnan added. experience. For short-term customers, they can
count on this product to deliver transparency,
“Now that Maersk has introduced bookings
As a response to this viscous cycle and in efforts assurance, strong price competitiveness, aware- on the spot, we are able to fulfil our supply
to continue the momentum in developing an ness and an optimised ordering flow.
industry leading customer experience, Maersk chain needs with one company, in one place,
has taken the initiative to make online bookings
easier, faster, and simpler for customers.
“Once we started using Maersk Spot, we no longer
had the uncertainty of not knowing if we could
seamlessly, with trust and commitment.“
actually provide our customers with their ship-
Drawing on solid customer relationships and ments,“ said Ramakrishnan. Ramakrishnan Damodaran, General Marketing Manager,
strong cross-functional teamwork, the Maersk The Ramco Cements Limited
Spot product is providing ocean customers with Moving away from 13 independent offline steps
a simple online booking process that includes in the buying process to five simple integrated
full price transparency, and equipment and space online steps, Maersk Spot is providing a radically
guarantee. simplified buying experience.
“Not only is the flow and ordering process simplified
and optimised, the attractive rates and reliability
of securing equipment and space guarantee have
enabled us to improve operations and provide more
proactive customer service,“ Ramakrishnan shared.
Shippers double book Shippers cancel or abandon

Higher predictability and reliability
because shipments are bookings without having to
As Maersk races ahead to become the global inte-
not reliable pay a cancellation fee
grator of container logistics, building and delivering
products and services that facilitate end-to-end
What Maersk Spot is solving solutions for customers is imperative for growth.
Continuous challenge results

“Maersk Spot is giving us more operational pre-
in highly volatile overbooking dictability and strong customer commitment, and
rates, making it difficult to plan our customers get a digital, affordable and reliable
service. All in all, this is driving an efficient and
operations reliable customer experience, while enabling both
Maersk’s growth and that of our customers,“ said
Johan Sigsgaard, Head of Ocean Products, Europe
Carriers roll over Carriers are forced to over- and Middle East trade. In Q4 2019, Spot customers
containers or cancel book their vessels to increase booked 25,000 forty-foot containers weekly,
specific departures utilisation accounting for one quarter of Maersk’s total short-
term volume.
2019 Directors’ report Our business Sustainability
Sustainability Performance highlights 2019
In 2019, a step change in the commitment to sustainability took place

across society. From government, investors and companies, to scientists, Our ambition is to have net-zero CO₂
students and consumers, everyone united in calling for attention and emissions from own operations by 2050
solutions to the pressing challenges that are impacting our world. • Progress of 41.8% relative CO₂ reduction
towards our 2030 target of 60% reduction
A.P. Moller - Maersk is making the pursuit of solutions that contribute
(EEOI indicator, compared to 2008 baseline)
to a better world a fundamental part of how we do business. • Identified three viable technologies for
future fuels
• Launched the Maersk ECO Delivery ocean
product
The demands for a more environmentally and Decarbonising logistics indicator (not directly comparable with numbers in
socially sustainable world continued to grow in All sectors in the world need to decarbonise by previous reports), we reached 41.8% relative reduc- We aim to multiply the benefits of trade
2019. This is evident to us in new requirements 2050, if we want to live up to the Paris Agreement tion in 2019, with 5.2% originating from efforts by reducing complexity and empowering
from the financial community, in the expecta- on Climate Change’s goal of keeping global warm- made in 2019. Most prominent among these were small businesses to trade
tions expressed by our customers and in the ing well below 2°C (IPCC, 2018). This includes technical retrofits of our vessels, as well as optimi-
• TradeLens is set to include more than half
willingness of a range of stakeholders to partner so-called ‘hard to abate-sectors’, of which ship- sation of vessel operations and route planning. of global container volume data
with A.P. Moller - Maersk in the pursuit of decar- ping is one. • Launched Twill in 154 countries
bonising logistics. Our longer-term ambition is to have net-zero CO₂ • Provided online training to women entre-
The effects of climate change are clearly visible emissions from our own operations in 2050. Com- preneurs in SheTrades from more than
30 countries
This focus on decarbonising logistics is one of in changing weather patterns, including more mitting to this target, we can and will be instrumen-
our sustainability strategy’s four priorities (see extreme weather events, water scarcity and loss of tal in driving the transformation of the shipping
graphic on page 28). We combine these priorities biodiversity. These developments have galvanised industry away from the use of fossil fuels.
with a firm focus on responsible business prac- interest and action in the financial sector and in
tices and continue to integrate the management the general public. They are also affecting supply To decarbonise, we work in three tracks: Tech- We have a firm commitment to responsible
of sustainability risks, responsibilities and oppor- chains across the world, with companies of all nological innovation, market development and business practices
tunities into our business operations. sizes looking for carbon efficiency and sustainable framework conditions.
• Registered zero facilitation payments on
solutions to their transportation needs. our own vessels
In each of our four priorities, on trade, climate Technology – explore new fuel and supply chain • Carried out safety training for top 90 senior
change, food loss and ship recycling, we look for Maersk's focus continues to be on efficiency gains, solutions: We will co-develop decarbonised fuel leaders in Maersk
ways in which we, through our business, can pursue with a target of a 60% reduction in CO₂ emissions types and sustainable fuel solutions foremost • Launched an updated Maersk Code of Conduct
for employees
and scale solutions to meet significant systemic by 2030 compared to 2008. From 2019, we report with energy providers but also technology devel-
• Launched an updated Supplier Code of Conduct
challenges for the benefit of society and, at the on progress towards this target using Energy Effi- opers, researchers, investors and other shipping
same time, create opportunities for our business. ciency Operational Indicator (EEOI). With this companies and logistics providers.
• In 2019, we mapped available pathways and • We established the LEO coalition, to develop a must proactively pursue the most likely options Multiplying the benefits of trade
possible technologies for carbon neutral ship- new biofuel based on lignin and ethanol, in col- found at this stage. Our door remains open to Enabling trade is core to our business strategy. The
ping. For this project we collaborated with laboration with one other shipowner, several other ideas and options, however. mission of Maersk is to connect and simplify sup-
Lloyds Register, University Maritime Advisory customers and scientific institutions. ply chains to enable trade for our customers and
Services and DTU, Danish Technical University Market – accelerate demand: In close collaboration for a growing world. In support of this mission,
of Denmark. It resulted in the development of Towards 2023, we will primarily invest in develop- with customers, scientific institutions and certi- we are innovating the processes and products of
three working hypotheses for the fuels of the ing fuel solutions within each of the three future fication bodies, we brought the use of biofuels in global container logistics, and in broader terms,
future: alcohol (ethanol and methanol). biome- fuels, because to meet the deadline of a commer- shipping to a new level in 2019. We were particu- we are working to ensure that trade serves as a
thane and ammonia. cially viable net-zero vessel at sea by 2030, we larly pleased to partner with our customers on positive contributor to global and local develop-
these efforts to develop the market: ment and growth.
• We piloted a biofuel made from used cooking oil
on a Triple-E vessel from Rotterdam to Shanghai. Our approach focuses on solutions that can benefit
Our sustainability strategy The project was carried out in collaboration all but will particularly benefit small and medium-
with a group of global companies in the Dutch sized businesses. They constitute the majority of
Sustainable Growth Coalition. all companies in the world, and yet the system of
• Following the successful conclusion of the pilot, trade in its current form has barriers to their par-
we launched the Maersk ECO Delivery ocean ticipation that are hard to overcome.
product, where the carbon footprint of cargo
transported under this name will be neutralised Our strategy includes three commitments to be
Help multiply the Contribute to
through use of biofuels in the Maersk network. achieved by 2025. They target challenges in the
benefits of trade halving food loss
trade environment and aim for simplified and
Policies – collaborate for best possible framework more inclusive trade:
conditions: We will use our leverage to push for
legislators and governing bodies to develop 1. Connect 50% of global containerised trade to
SHARED VALUE Lead change in
Help decarbonise the ship recycling
and implement policies that drive development digital solutions that reduce supply chain barriers.
AMBITIONS
logistics industry towards carbon-neutral societies. Digitising global trade can help remove friction in
global supply chains and barriers to trade more
• In 2019, Maersk was a founding member of the generally. This can create new growth. A World
Getting to Zero Coalition, whose 100-plus mem- Economic Forum report on enabling trade esti-
Health, safety & Diversity &
environment RESPONSIBLE inclusion bers are senior leaders from across the mari- mates that it could create more than 20 million
BUSINESS PRACTICES time, energy, infrastructure, and finance sectors. new jobs each year. Through the TradeLens plat-
We will work with decision-makers from govern- form, which we co-developed with IBM, we help
Human & Ocean ments and intergovernmental organisations to lower the barriers preventing smaller companies
labour rights health ensure commercially viable net-zero vessels on from participating in international trade. For
the waters by 2030. The coalition will push for TradeLens to deliver on this promise, a significant
Responsible Responsible ambitious and relevant regulatory frameworks share of the logistics community needs to be
tax practices procurement
Anti- that support this transition and closes the com- included on the platform. At the end of 2019, a
corruption
petitiveness gap between CO₂ emitting fuels total of 95 container terminals were connected
and net-zero fuels. to TradeLens, and ocean carriers representing
more than half of global container trade, as well same standard when we recycle in India as we do As part of this work, three pilot projects were As our business expands on land with a larger
as 15 customs authorities had committed to when we recycle in Turkey and China, as docu- carried out to quantify the amount and causes share of subcontractors and labour hired through
joining the TradeLens network. mented in third-party audits. of food losses that occur during handling and third parties, our values and commitments lead
storage between the farm and the freighter. us to investigate how we manage societal impacts
2. Help connect 100,000 small and medium-sized A critical point for the Alang yards’ continued The pilots are set to identify possible solutions and responsibility issues in the inland supply chain.
businesses, including women-operated businesses, interest in investing in sustainability is the pros- to reduce those losses, and candidates currently This is also what our customers and stakeholders
to international trade by 2025. SMEs make up pect of being included in the EU’s list of approved include improved handling processes, introduc- increasingly expect us to do. We are conducting
95% of all companies and offer two-thirds of ship recycling facilities, which is updated every tion of cold storage technologies and better studies to better understand these issues and how
all jobs. They are, however, underrepresented in six months. Several yards are in process for logistics management. Scheduled for comple- our Responsible Procurement programme can
trade and have lower access to global markets. approval. This process was not concluded by the tion in early 2020, the pilots follow citrus fruits cater for these as well as potential for collabo-
By simplifying participation in global trade, we end of 2019. in South Africa, avocados in Kenya, and grapes ration with customers on mitigating impacts in
can reduce barriers and enable the creation in Peru. selected areas, e.g. we are participating in exter-
of more jobs. On 1 January 2020, our platform We continue as active members of the Ship nal collaboration to mitigate the risks for people
Twill to connect SMEs to global trade launched Recycling Transparency Initiative (SRTI) in support Responsible business practices working in the trucking business.
in 154 countries. We also support capacity of its mission to accelerate a voluntary market- Responsible behaviour is part of our core values,
building on trade, most prominently in the driven approach to responsible ship recycling and customers, suppliers, business partners Integrating sustainability into
International Trade Centre’s project SheTrades. practices. The SRTI works through an online plat- and governments all expect us to conduct our the business
By the end of 2019, we had helped connect form for sharing information on ship recycling. business in a responsible manner. In 2019, we Over the past two years, we have worked to incor-
8,000 small and medium-sized businesses to Shipowners submit data on their approaches to launched an employee Code of Conduct, which porate sustainability into our commercial and oper-
international trade. ship recycling to the platform. Cargo owners and now forms the basis of all actions and activities ations departments, making sustainability a much
financial stakeholders can use this data to make carried out in our name. more integrated part of decision-making, discus-
3. Contribute to trade facilitation reforms in 30 more informed decisions. sions with customers and day-to-day business. We
developing countries by 2025. The WTO’s Trade In recent years, we have worked to align systems took an additional step in this direction at the end
Facilitation Agreement pushes for global trade Halving food loss and procedures as we have transformed from of 2019, as we incorporated our shared value com-
facilitation reform to make trade cheaper, Investing in unbroken cold chain offerings is a conglomerate to a one company structure. mitments further into our business. We have an
faster and more inclusive through the removal an important growth opportunity for our busi- As part of our compliance work on anti-corrup- unchanged sustainability agenda in both scope and
of informal barriers to trade: outdated admin- ness on land. At sea, we already carry 27% of the tion, competition law and foreign trade controls, ambition level, and with this further integration we
istrative systems, lack of infrastructure, etc. world’s refrigerated containers and 25% of the we appointed 61 volunteer Business Compliance aim to ensure that sustainability is a fundamental
By the end of 2019, through our participation world’s food commodities. As our cold chain Ambassadors to serve as advisors on the ground and inseparable part of how we do business.
in the Global Alliance for Trade Facilitation, business grows, we can leverage our services, to cover over 70 countries that are exposed to an
we had participated in nine such efforts, in products and capabilities to contribute to halv- environment with high-corruption risk. To learn more about our work and progress on
Colombia, Brazil, Morocco, Ghana, Kenya, ing food loss during transportation, in support sustainability priorities, please see the Sustaina-
Malawi, Zambia, Sri Lanka and Vietnam. of a more sustainable global food system and We began implementation of our Safety Differ- bility Report for 2019.
local economic development. ently strategy, where activities within leadership,
Changing the ship recycling industry culture and capacity building are set to create
We remain committed to our programme, which We have established a partnership with the World an organisation resilient towards severe impacts
aims to change the ship recycling industry. We Resources Institute (WRI), and in 2019 we worked from accidents. Very sadly in 2019, we suffered
work with selected yards in Alang, India, and in on developing metrics for measuring food loss, five fatalities in our operations, indicating that
2019, we sent four vessels for recycling in Alang, to allow us to systematically measure how much there is much more for us to do, to learn and to
using four different yards. We continue to see the food is lost where and why. improve in addressing our workplace risks.
2019 Directors’ report Our business Keeping cool in a hot market
ALL THE WAY
Keeping cool
in a hot market
COLD CHAIN LOGISTICS | To address a vital need in
global trade, A.P. Moller - Maersk is developing an inte-
grated cold chain offering that will reduce food waste,
minimise complexity for customers and put the business
in an even stronger position to tap into the high-growth
market for perishable goods.
Whether you are transporting fruits, fish or medi-

cine, getting delicate, temperature-sensitive goods
to market is a long, complicated and often waste-
ful journey.
Importing and exporting fresh and frozen prod-

ucts involves multiple players with very diverse
offerings. Global cold chains are so fragmented
that companies, big and small, experience frus-
trating inefficiencies in the physical movement of
goods. The coordination efforts are complex with
many handovers and little transparency that ulti-
mately lead to waste of both time and some of
the goods being transported.
Maersk’s response to these customer challenges is projection only covers the oceanside of the cold brand as of August 2019, has built several cold
the development of an integrated cold chain logis- chain, the total market represents a big oppor- stores and developed local, integrated customer
tics offering. The ambition is to close major gaps in tunity for not only the Ocean business but also solutions, which are being integrated into the end-
the supply chain and connect it through integrated Logistics & Services. to-end proposition.
end-to-end cold chain solutions that reduce cost Seamless cold chain
and waste, explained Katharina Poehlmann, Global “The potential in cold chain logistics really embod- In addition, Maersk’s assets make the value prop- keeps citrus fresh across
Head of Cold Chain Logistics at Maersk: ies what the global integrator strategy is all about. osition stand out in the market, for instance with
As one service provider, we can deliver differenti- the ability to prioritise equipment and slots on
continents
“We are creating a one-stop shop that minimises ating value to the customers and enable them to the vessels, and to provide cold storage at critical
For the past seasons, Moroccan ship-
the number of parties our customers need to deal grow their businesses,“ explained Poehlmann. points of customers’ supply chains. pers have faced major challenges in
with and delivers a consistent, high-quality value managing the supply chain when export-
proposition and customer experience,“ she said. To this end, experts across Maersk are coming Making cold chains unbreakable ing fresh produce to Russia. Particularly,
heavy penalty charges and significant
together to enable a truly integrated offering. To In many markets, cold storage providers operate
delays from additional customs inspec-
Building on leading position name a few, APM Terminals is accelerating cargo very locally. Customers therefore must engage
tions have jeopardised reliability, qual-
Moving one in four refrigerated containers – flows and contributing to more visibility with intel- with several providers across geographies and the ity and ultimately the selling price of
commonly known as ‘reefers’ – globally, Maersk ligent use of data. Hamburg Süd and Sealand have many handovers cause breaks in the cold chain. the cargo.
is building its cold chain offering from a position extensive reefer insights, strong customer rela-
Maersk has designed an integrated
of strength. Despite a modest short-term outlook tionships and fast ocean connections on key reefer To close this gap in these markets, Maersk is invest-
Cold Chain Management solution to
for trade growth, Maersk expects global reefer trade routes which allow tailor made offerings. ing in more and better storage options that will
address these customer pains in sev-
volumes to continue to significantly outgrow the Inland Services, an offering originating from APM establish unbroken, connected cold chains from eral ways. “We are taking responsibility
dry container market in the coming years. As this Terminals and going to market under the Maersk farm to supermarket. These facilities enable cus- for a seamless execution of all logistics
tomers to store the produce closer to consumers, services end-to-end, such as Intermodal,
Ocean, Customs House Brokerage,
provide access to special capabilities such as blast
Phytosanitary and Cold Storage, thus
freezing, boxing, repacking and labelling, and create
ensuring that the cargo arrives on time
the ability to balance supply and demand over time. and in perfect condition,“ says Katharina
Poehlmann.
Today, Maersk operates cold stores in several
“The potential in cold chain logistics really regions and the footprint is growing with numerous With increased visibility, the solution is
enabling customers to not only deliver
development projects ongoing across the globe.
embodies what the global integrator strategy their cargo fresh at the final destination
in Russia, but also to control and make
is all about. As one service provider, we can “While our immediate focus is on regions that need
quality storage here and now, our long-term ambi-
informed decisions during the journey to
achieve the best possible market price –
deliver differentiating value to the customers tion is to have a global footprint that can meet while preventing food loss.
customers’ need for high-quality capacity on a

and enable them to grow their businesses.“ global scale,“ added Poehlmann.
The growth plan is being realised through a mix of

Katharina Poehlmann, Global Head of Cold Chain Logistics at Maersk
acquisitions, greenfield investments and expan-
sion of existing facilities. The next cold store
to join Maersk’s network in 2020 is located in
St. Petersburg, Russia. 40% of the 23,700-square 2017, more than 3,600 companies have signed up
metre facility will be dedicated to Fyffes, Europe’s for RCM technology and 97% of Maersk’s combined
leading banana importer and a Maersk customer, pool of more than 380,000 refrigerated containers
while the remaining capacity will help meet the (reefers) are supported by the technology.
high demands for storing and distribution of fish,
meat, as well as fruit and vegetables across Russia. With the introduction of a virtual assistant, Cap-
tain Peter, in late 2019, customer experience “I choose Maersk and Captain Peter over
Technology increases transparency
The integrated cold chain offering is based on the
will become even better. The AI-enabled avatar
will assist customers along the cargo journey by
others because I can see what is happening
latest digital innovations and reefer technology keeping an eye on the container’s temperature, with my cargo. It takes months to grow
that are enabling increased transparency for cus- humidity, and CO₂ levels.
tomers, both inside and outside the container. onions and they can’t be easily replaced if
One of the technologies is Remote Container Man-
Wiskerke Onions has been one of the key custom-
ers involved in the development of Captain Peter.
they spoil during transport.“
agement (RCM) that creates end-to-end visibility The increased visibility makes a business-critical
of the conditions inside the box. Since the launch in difference to the Dutch onion exporter: Chayenne Wiskerke, CEO of Wiskerke Onions
“I choose Maersk and Captain Peter over others

because I can see what is happening with my
cargo. It takes months to grow onions and they
can’t be easily replaced if they spoil during
transport. The full visibility on the conditions in Reefer manufacturing
the container is an additional “insurance“ that
in focus
our cargo will make it to its destination in per-
fect condition,“ said Chayenne Wiskerke, CEO of In 2019, Maersk Container Industry
Wiskerke Onions. decided to focus the business on its
reefer manufacturing and cold chain
technology. The launch of Sekstant,
Cargo visibility is also improving outside the con-
a reefer digitisation service, will further
tainer. For instance, a newly formed partnership
enhance transparency on container con-
with JDA on advanced warehouse management ditions for customers, offering real-
systems brings full visibility to cold storage facil- time data, monitoring and reporting
ities. The data transparency allows customers to systems, and seamless fleet manage-
ment from anywhere in the world.
Chayenne Wiskerke, sharpen their operations by improving processes
CEO of Wiskerke Onions and lowering inventory costs.
2019 Directors’ report Our business Risk management
Risk management
Effective risk management is key to growing sus- on earnings, financial position and achievement
tainably in an increasingly volatile and uncertain of other strategic objectives. It also identified
business. The Board of Directors is responsible for key emerging risks that look beyond the business
overseeing risk management. The Board of Direc- planning period and are threats to the business
tors determines the framework for management value drivers
Risk management at Maersk is strategically focused and designed to of risks, including risk appetite. The Audit Commit-
contribute to the achievement of the company’s business objectives tee monitors the execution of the risk manage-
in the medium term and to ensure the longevity of the company in ment processes and the management of key risks.
The Executive Board is responsible for overseeing
the longer term.
day-to-day risk management.
The Coronavirus (COVID-19)
Transforming Maersk to become the global integrator of container Risk management process
logistics is a complex process, which carries multiple risks. It is essential Each year, the Executive Leadership Team decides The outbreak of the COVID-19 in China
the key risks to the business plan. In preparation introduces additional challenges and
that risks associated with the transformation and risks inherent to our
risks to Maersk’s operations. Maersk has
business activities are managed well to keep the potential financial and for the discussion in the Executive Leadership Team
already undertaken specific measures
a comprehensive risk assessment takes place.
reputational impact of such risks within acceptable levels. to ensure the health and safety of its
employees globally. In addition to human
The Executive Leadership Team appoints a risk risk, the outbreak of the virus also poses
owner (an Executive Leadership Team member) an economic risk to Maersk’s operations
and its trade volumes.
for each key risk to oversee the management of
Risk identification the risk, including the preparation and execution Fear of the virus and the efforts to pre-
Risks are continuously
of mitigation action plans. Once the plans for the vent its spread will see an increasing
identified and reported
using uniform templates
management of the risks are finalised, the risk pressure on the supply-demand bal-
owner presents and discusses such plans with the ance. It is expected that the COVID-19
and tools
could dampen 2020 volumes, due to the
Executive Leadership Team and the Audit Commit-
extension of the Chinese New Year hol-
tee in designated risk deep-dive sessions. idays and emergency measures to curb
the spread of the virus. It is still early
Risk monitoring Risk assessment The risk management function monitors the sta- days to measure the overall impact,
Development of key risks A.P. Moller - Maersk Identified risks are tus of each key risk, including the progress and however, the weekly container vessel
calls at key Chinese ports were signif-
and mitigation actions are analysed and assessed
monitored by risk deep- risk management to determine triggers,
effect of the mitigation action plans, and summa-
rises the status in quarterly reports to the Execu-
icantly down compared last year dur-
dives and reporting impact and likelihood ing the last weeks of January and the
process tive Leadership Team. Where the progress of miti- first weeks of February. Freight rates are
gating actions is falling behind schedule, or where expected to decrease due to dropping
mitigating actions are not achieving the effect demand for containerised goods trans-
port. Also, the outbreak has led to delays
they were designed to have, the report will high-
in opening of Chinese shipping yards
light this, so that corrective action can be taken. following the Chinese New Year holidays,
which has delayed yard works planned,
Risk mitigation Risk recording
Risk mitigation action plans Key risks are established,
The latest risk assessment was carried out in H2 including some planned installations of
2019. It identified 10 key risks that may have a sig- scrubbers on Maersk vessels.
are prepared and implemented prioritised and documented,
across the affected businesses and risk owners are appointed nificant impact on the business plan, including
2020 Key risk analysis 1 Failure of Ocean strategy
Risk description
2 Failure to implement IMO 2020
strategy for mitigating cost impact
The Ocean business remains volatile and there is
The key risks to achieving Maersk’s 2020-2024 business a need to de-commoditise it to stabilise earnings.
Risk description
The existing compliant fuels, and new fuels devel-
plan, the assessment of each risk, the mitigation strategies De-commoditising the Ocean business is a prerequi- oped to comply with IMO 2020 regulation, cost more
deployed, and the development in the risk landscape since site for generating the earnings required to fund the than HSFO bunkers, implying fuel cost increases in
transformation of the company and delivering on the 2020. Alternative compliance methods, like scrub-
2019 are described in the following. integrator strategy. bers, will enable the use of high-sulphur fuels at a
lower cost but requires additional CAPEX.
2020 Risk assessment
In order for the Ocean business to be stable it must In the short term, the risk is that Maersk will not be
be de-commoditised. In the current state of the able to recover the additional cost from its customers.
container liner industry, most players are price takers
almost entirely dependent on supply and demand. 2020 Risk assessment
There is a need to differentiate Maersk’s Ocean busi- The impact of the risk will depend on the extent
ness by providing added value propositions to cus- to which:
tomers through development of different Ocean • a price spread exists between high sulphur-fuels
products. and compliant fuels,
High Risk
• competitors have more cost effective compliance
Mitigation strategies strategies than Maersk,
1. Ocean strategy
Maersk pursues a strategy of de-commoditisation of • IMO 2020 enforcement may allow some com-
2. IMO 2020
the Ocean business through Maersk Spot and other petitors to avoid the higher fuel bill, and
3. Cost excellence
Ocean products in combination with modest volume • demand-supply balance makes recovery of the
4. Cyber security
growth and CAPEX discipline. added cost difficult.
5. Logistics & Services strategy
6. Compliance
7. Technology platforms Compared to 2019, the risk has reduced as competi-
2 1 8. Core business processes tors seem to have prepared for compliance. There is
9. APM Terminals transformation a strong push for enforcement through levy of dis-
25%
10 5 10. Human resources suasive fines and tendered contracts are being con-
4 1 cluded with new bunker adjustment factor clauses.
8
Likelihood
5 3 2
10
Mitigation strategies
9 2020 position
6 Maersk seeks to recover the added cost of low sul-
7 2019 position
4 phur fuel from customers and has a strategy for mit-
2020 new risk
igating the cost through a mix of various initiatives
6 7 such as installation of scrubbers on selected vessels
and increased fuel efficiency.
Low Financial or reputational impact High
All positions are residual risk after mitigation.

3 Losing cost discipline in Ocean as

Maersk implements the integrator 4 Being hit by a major cyber-attack
Risk description
5 Failure to build a strong Logistics &
Services business in the coming years 6 Being hit by a large compliance case
Risk description
strategy
As Maersk becomes increasingly digitalised, more Risk description It is imperative for Maersk to conduct its business in
devices and control systems are connected online A cornerstone in Maersk’s strategy is to expand its compliance with legislation and regulatory standards.
Risk description
resulting in a wider surface across the Information product offering to the customers into land-based The risk is that Maersk is hit by a major compliance
Remaining competitive and generating the earnings
Technology (IT) and Operational Technology (OT) Logistics & Services products to further diversify the case in respect of violations of anti-corruption laws
required to fund the transformation and deliver on
infrastructure that could be compromised. overall business and earnings. The risk is that Maersk and standards, competition/anti-trust regulations, or
the integrator strategy requires strict focus on costs
fails to translate its Logistics & Services strategy into international sanctions imposed on countries, enti-
in Maersk’s Ocean business. Maersk must not lose
Should a successful cyber-attack materialise, the a profitable long-term business. ties or individuals, resulting in enforcement action
focus on cost leadership as it implements its inte-
services that allow the organisation to continue to and/or commercial, reputational and other losses.
grator strategy.
operate could be compromised resulting in opera- 2020 Risk assessment
tional disruption. Further, a cyber-attack could cause By consolidating its Logistics & Services activities, 2020 Risk assessment
2020 Risk assessment
a data breach where sensitive, protected or confi- Maersk has a focused platform to offer customers In respect of corruption Maersk operates in high-risk
Transforming into a global integrator of container
dential data held by Maersk is leaked or stolen. products covering the end-to-end supply chain. geographies and high-risk sectors (e.g. the terminals
logistics requires additional focus to build land-based
Achieving profitable Logistics & Services growth calls and freight forwarding sectors). Maersk is the larg-
products and become a customer led organisation.
2020 Risk assessment for capable core business processes and digital plat- est container carrier and in an industry with many
This might entail some dilemmas in the Ocean busi-
Following the cyber-attack in 2017, several measures forms, strong capabilities in the frontline to sell the industry cooperation agreements. Maersk thereby
ness, including in respect of cost excellence, as the
to improve cyber security have been implemented new products, and the ability to counter competing naturally has the attention of competition authori-
product offering broadens and flexibility towards
with an enhanced security posture as a result. A automated supply chain management platforms. ties globally. There is an increasing number of juris-
customers is required. Careful balancing will be
cyber-attack causing operational disruption could dictions with competition laws in place as well as a
needed.
still happen due to e.g. new malware outbreak not Mitigation strategies growing confidence by emerging countries to enforce
specifically targeted at Maersk, a targeted attack The main mitigating strategies pursued are to build their competition laws against foreign companies.
Mitigation strategies
on one or more brands within Maersk, a disgruntled a global, competitive end-to-end product portfolio, International sanctions are becoming increasingly
Maersk has reorganised the company to gather
employee or malicious third-party contractor, or an integrate those products and services at a data, oper- widespread and complex and require comprehensive
responsibility for Ocean and Logistics & Services,
accidental employee action. ational and strategic level to fit customer needs, and and extensive measures to ensure compliance.
including for commercial and operational aspects
under one leadership. This enables a balanced and establish a global sales team with the knowledge
Mitigation strategies necessary to sell the whole Maersk portfolio from Mitigation strategies
holistic decision-making in respect of transforming
Improving and strengthening cyber security is a stra- a vertical perspective. Maersk has a robust compliance programme for
and performing at the same time. Furthermore,
tegic priority for Maersk and this includes execution anti-corruption, competition law and economic sanc-
a multi-year cost excellence programme including
of a comprehensive cyber security plan, a three-level A new function is being established to assess, design tions and export controls designed to fulfil the global
moving to zero-based budgeting has been intro-
assurance model to maintain oversight and obtain and implement changes related to products, pro- requirements and many initiatives are in place to
duced to ensure a dynamic adoption of the cost
confidence that the communicated level of cyber cesses and master data throughout the business. improve focus and emphasis on compliance aware-
base in the transforming business.
capability is reflective of reality, implementation of ness and training.
business continuity plans, and purchase of cyber
risk insurance. The compliance programme is built upon detailed risk
assessment and based on that, Maersk has a com-
Full implementation of the cyber security plan is prehensive mitigation plan. Maersk has an adequate
expected to be completed by the end of 2020. compliance function continuously strengthening the
compliance programmes and the mitigating meas-
ures as well as advises the business in respect of
measures to ensure compliance. Maersk also has a
whistleblower hotline and other means of reporting
as part of the compliance programme.
7 Failure to build the industry-leading

technology platforms of the future 8 Failure to Implement end-to-end
core processes in Ocean and Logistics 9 Failure to sustainably complete the
transformation of APM Terminals 10 Lack of organisational capabilities
to drive the strategy implementation
& Services
Risk description Risk description Risk description
It is a strategic priority for Maersk to digitalise its Risk description Successfully completing the transformation of APM The strategy to become a global integrator of con-
business model by building the industry leading tech- To support the integrator strategy, Maersk needs to Terminals is strategically important for Maersk. APM tainer logistics requires new and different capabilities
nology platforms of the future that shall address build end-to-end business processes in Ocean and Terminals is important in terms of reaching a balance in terms of business knowledge, leadership and cul-
customer needs in a connected world and enable the Logistics & Services and modernise its legacy IT land- in Maersk’s overall business by 2023 as Logistics & ture. Maersk needs to build the capabilities and cul-
company’s growth. Such platforms must be effec- scape to support such processes. Services and contributes to funding Maersk’s overall ture required to transform its business and deliver
tively implemented and operated in order for Maersk transformation. on the integrator strategy, including the ambition
to remain competitive in delivering value to customers. 2020 Risk assessment to build a strong Logistics & Services business.
The implementation of the integrator strategy 2020 Risk assessment
2020 Risk assessment depends on core business processes and IT landscapes Key elements of the risk are that the terminals busi- 2020 Risk assessment
Whoever is in the front of adopting technological that are fit for that purpose. In order to reap the ness is exposed to fluctuations in the global econ- Comprehensive culture and upskilling programmes
development will own the customer relationship. It is, benefits from technology, the end-to-end business omy and global trade, several concession agreements were launched in 2018 and good progress was made
therefore, important to secure a digitally based com- processes need to be adequately designed, consist- expire and are up for renewal in the coming years, during 2019 to strengthen leadership capabilities and
petitive advantage in Ocean and Logistics & Services. ently performed and seamlessly supported by IT. automation of terminals may require negotiation embedding the culture across the organisation. Still,
Freight forwarders, software companies, supply chain with unions and politicians, and APM Terminals has a the transformation could be hampered or delayed
management platform companies, and other digital Mitigation strategies large presence in and dependence on Latin America by ineffective capability uplift related to leadership,
players are also advancing in this area. However, Maersk has launched a programme for modernising and West Africa. commercial upskilling and inability to insource
Maersk has the asset base and geographical foot- its legacy IT-landscape to establish a platform and skills or build new ones, especially for executing the
print to effectively deliver fully integrated end-to- solution for performance of end-to-end business Mitigation strategies Logistics & Services strategy.
end supply chain solutions tailored to the customer’s processes. In 2017, APM Terminals launched a transformation
needs. programme to become ‘The best in class terminal Mitigation strategies
A new function has been established to assess, operator’ and ensure a strong foundation for future Actions were launched to upscale commercial skills
Mitigation strategies design and implement changes related to products, growth. Significant progress has been made on the and capabilities in cooperation with Maersk’s Com-
Maersk is actively developing and investing in tech- processes and master data. transformation till date, and the programme con- mercial Academy and through recruitments and
nology enabled business platforms. The platforms tinues into the coming years. acquisitions. New Maersk behaviours and an execu-
are already creating value for customers, and the tive development programme have helped support
development and investment continue to further culture and leadership. A plan is in place to further
improve the customer experience and integrate strengthen the Logistics & Services skills and equip
products in end-to-end supply chain solutions the frontline with adequate capabilities to sell inte-
tailored to the customer’s needs. grated and stand-alone Logistics & Services products.
Climate-related financial disclosure

This page provides an overview of our reporting in line with TCFD recommendations
The financial sector’s increased focus on climate change Furthermore, it is a key pillar of Maersk’s strategy to Metrics and targets
has resulted in requests for companies to report pub- involve its customers both as partners in R&D projects, Approximately two thirds of CO₂ emissions are related
licly and comprehensively on climate change strategies but also to already now offer a differentiated net-zero to Maersk’s business from its own operations (scope 1)
and risk management. A reporting framework prepared ocean transportation product. and roughly 97% of these come from powering its fleet.
by the industry-led Task Force on Climate-related Finan- Indirect emissions that occur in the value chain (scope 3)
cial Disclosure (TCFD) currently determines best practice Finally, Maersk works proactively and in partnerships to account for approx. one third, while indirect emissions
and reporting leadership. 2019 is the second year where make sure that the right policies will be in place to sup- from the generation of purchased energy (scope 2) are
Maersk voluntarily reports in accordance with the TCFD port the transition. More is described in the sustainability negligible. Consequently, Maersk focuses and measures
recommendations. section on page 27 and in full in our Sustainability Report its efforts on decarbonising the sector in which its vessels
for 2019. are deployed.
The framework requires reporting on both transition risks,
understood as risks and opportunities from realigning the Risk management Maersk’s target is to have net-zero CO₂ emissions from its
global economic system towards low-carbon or carbon To protect business value from the risks caused by the own operations by 2050. This will require a commercially
neutral solutions, and the impacts on physical risks which physical impacts of climate change, Maersk performed viable vessel design to be on water in 2030. To decouple
are risks caused by changes in weather patterns. a hot spot analysis in 2018, estimating the effect of five growth in volume from emissions, Maersk works towards
climate hazards (heat stress, floods, cyclones, water a target of 60% reduction in CO₂ emissions by 2030, com-
Governance stress and sea level rise) on ports, other fixed assets and pared to 2008. Targets for managing the physical impacts
Climate-related risks and opportunities are part of strategic commodities within a 2020–2040 timeframe. of climate change are not available yet.
Maersk’s quarterly Enterprise Risk Management system
reporting to the Executive Leadership Team and the Board Building on this, we took steps in 2019 to perform an eco-
of Directors. nomic analysis and engage with stakeholders in the Pearl
River Delta in China, which was established as a hot spot.
Furthermore, Maersk’s transition work, including its CO₂ Maersk will finalise this analysis and report on it in 2020.
reduction target and efforts to decarbonise logistics,
is governed by a task force headed by a member of the This work will be instrumental in constantly evolving
Executive Leadership Team and ultimately owned by the Maersk’s approach to manage physical risk from climate
Executive Leadership Team. change in a way that is adequate given the increased
challenges Maersk will see in the future.
Strategy
Maersk’s strategy is to take leadership in decarbonising Maersk’s proactive engagement with customers, inves-
shipping. It is a high-profile low-CAPEX strategy, as it tors and lenders in relation to framework conditions for
needs a full transition to new net-zero fuels. Especially shipping is also part of managing the risk of encountering
the energy sector is needed to create these solutions, first mover disadvantages. New net-zero fuels will likely
and therefore it is crucial to send a clear message to the be more expensive than the current fuels, so for Maersk’s
actors that will develop the solutions that we as the end vision of commercially viable net-zero vessels to be ready
consumer are ready to collaborate to identify these fuels. in 2030, it is crucial to get the right framework conditions
in place. This is something Maersk both monitors closely
and works proactively to ensure.
2019 Directors’ report Performance
Performance
Ocean
Logistics & Services
Terminals & Towage
Manufacturing & Others

2019 Directors’ report Performance Ocean
Ocean
Ocean revenue was USD 28.4bn (USD 28.4bn)

with a small decrease in volumes while EBITDA
increased to USD 4.4bn (USD 3.8bn) reflecting a
margin of 15.3%. The improvement in profitabil-
ity was a result of commercial and operational
decisions to focus on profitability through cargo
selections and capacity management, combined
with positive effects from lower fuel prices. The
average freight rate was stable despite the weak
global demand and decline in bunker price, while
Our crew moved largely the total operating costs decreased by 2.4% from
same amount of volumes
as in 2018, but with a higher improved scheduled reliability, higher utilisation
profitability than in 2018. and lower bunker cost.
Financial and operational performance The EBITDA margin of 15.3% increased by 2.0 per- Loaded volumes
Revenue was USD 28.4bn (USD 28.4bn), with a slight centage points, as the cost base decreased, partly
decrease in volumes to 13,296k FFE (13,306k FFE) due to improved capacity management and effi- FFE (’000) 2019 2018 Change Change %
as a result of weaker market growth and initiatives ciencies, resulting in better utilisation and sched- East-West 4,100 4,186 -86 -2.1%
to improve freight rates, which increased to 1,883 ule reliability, and partly the reduced bunker price. North-South 6,362 6,450 -88 -1.4%
USD/FFE (1,879 USD/FFE), along with increases in Container handling costs at 39% of the total cost Intra-regional 2,834 2,670 164 6.1%
Total 13,296 13,306 -10 -0.1%
other revenue, mainly due to VSA income. base was in line with 2018, while bunker cost
decreased by 1.5 percentage points to 19% of the
EBITDA increased by 15% to USD 4.4bn (USD 3.8bn), total cost base. SG&A and other costs increased by
driven by stable revenue and a lower cost base 0.5 percentage points to 13% and network costs, Average freight rates
mainly due to lower a bunker price and consumption. excluding bunker, were slightly lower in 2018.
USD/FFE 2019 2018 Change Change %
East-West 1,885 1,860 25 1.3%

North-South 2,117 2,078 39 1.9%
Ocean highlights Intra-regional

Total
1,462
1,883
1,478
1,879
-16
4
-1.1%
0.2%
USD million 2019 2018 ¹ 1 2018 presented as if IFRS 16 had been
implemented in 2018, for comparison
Freight revenue 24,871 24,925
purposes.
Other revenue, including hubs 3,547 3,441
Revenue 28,418 28,366
Container handling costs 9,339 9,481

Bunker costs 4,566 5,042
Network costs, excluding bunker costs 7,038 7,053
Selling, General & Administrative (SG&A) and other costs, etc. 3,082 3,038
Total operating costs 24,025 24,614 Volumes were barely unchanged at 13,296k FFE
Other income/costs, net -37 30
(13,306k FFE) and below the market growth of 1.4%
Profit/loss before depreciation, amortisation and
impairment losses, etc. (EBITDA) 4,356 3,782 due to decreases in East-West and North South
EBITDA margin 15.3% 13.3% trades partly offset by increase in volumes in the
Ocean segment intra-Asia trades. The decrease in East-West was
Gross capital expenditure, excl. acquisitions and
Ocean includes the ocean activities of mainly due to lower volumes in North America from
divestments (CAPEX) 1,172 2,279
Maersk Liner Business (Maersk Line, front loading particularly towards the end of 2018,
Safmarine and Sealand – A Maersk Com-
Operational and financial metrics combined with commercial and operational deci-
pany) together with the Hamburg Süd
Loaded volumes (FFE in ’000) 13,296 13,306 sions affecting the volume growth to improve prof-
brands (Hamburg Süd and Aliança), as
Loaded freight rate (USD per FFE) 1,883 1,879 well as strategic transhipment hubs itability. The decrease in North-South was mainly
Unit cost, fixed bunker (USD per FFE incl. VSA income) 1,777 1,808 under the APM Terminals brand (Rotter- driven by the weak demand on Latin America and
Hub productivity (PMPH) 91.8 80.6 dam, Maasvlakte II, Algeciras, Tangier, Oceania trades seen throughout 2019, partly off-
Bunker price, average (USD per tonne) 412 424 Tangier-Med II, Port Said and the joint
Bunker consumption (tonne in ’000) 11,092 11,894 set by higher headhaul volumes in East and West
ventures Salalah, Tanjung Pelepas and
Average nominal fleet capacity (TEU in ’000) 4,132 4,115 Africa from Asia and Middle East. Total headhaul
Bremerhaven). Inland activities related
Fleet owned (end of period) 307 303 to Maersk Liner Business are included decreased by 0.3% mainly on Latin and North
Fleet chartered (end of period) 401 407 in the Logistics & Services segment. America, while total backhaul increased by 0.4%.
The average loaded freight rate increased by 0.2% Demurrage and detention income was lower,
to 1,883 USD/FFE (1,879 USD/FFE), driven by an driven by temporary circumstances in Asia from
2019
increase of 1.3% on East-West supported by better amongst other congestions and front loadings
capacity discipline. On North-South the average in 2018.
freight rates increased by 1.9% driven by backhaul
increase in Latin America, partly offset mainly by Total operating costs decreased by 2.4% to USD Key initiatives
lower headhaul rates in Oceania. The rate increases 24.0bn (USD 24.6bn), positively impacted by lower
on East-West and North-South trades were partly bunker costs, favourable impact from develop- The buying process for the ocean products got simpler
offset by lower rates on intra-regional trades ment in foreign exchange rates and lower con- for customers with Maersk Spot, which allows them
to move their cargo in a much simpler and more
driven by a 5.8% decrease in intra-Asia rates. tainer related costs, partly offset by higher SG&A
reliable way providing increased sailing visibility
The average loaded freight rate was negatively costs. Network costs excluding bunker costs and loading guarantee at a fixed price upfront.
affected by developments in foreign exchange decreased by 0.2%, mainly due to lower port, End of Q4 2019, measured on a four-week average
rate, the bunker price change and mix effects canal and time charter expenses, partly offset basis, Maersk Spot accounted for 24% of spot-rate
from higher inter-regional and backhaul volumes. by higher VSA expenses. The improved capacity volumes, more than double compared to end of
Q3 2019.
Adjusted for the foreign exchange rate effects the management, including increased productivity
average loaded freight rate increased by 1.2%. in hubs, resulted in lower hub and transhipment Maersk became a founding member of the Getting
costs, and lower port costs due to reduced calls. to Zero Coalition announced at the United Nations
Freight revenue was USD 24.9bn (USD 24.9bn), Adjusting for the positive impact from the devel- Climate Action Summit in New York in Q3. The coali-
while other revenue increased by 3.1% to USD opments in foreign exchange rates, the operating tion is a vehicle for decarbonising global shipping and
energy value chains by 2050. Joining Maersk in the
3.5bn (USD 3.4bn), mostly driven by higher slot costs decreased by 0.9%.
coalition are major companies across different indus-
sales and higher revenue in hub terminals. tries. The ambition of the Getting to Zero Coalition is
closely aligned with the initial greenhouse gas strategy
for international shipping adopted by the United
Nations International Maritime Organization (IMO).
The preparation for IMO 2020 continued, and several

vessels have been retrofitted with scrubber installa-
tions at the end of 2019. The scrubber solution is only
Unit cost at EBIT level (based on a fixed bunker price) part of the strategy to ensure compliance with the
new fuel regulations.
Unit cost fixed at 200 USD/tonne
Following successful product trial on Mette Maersk,
Unit cost at fixed bunker price was 1.7% below 2018 Maersk ECO Delivery was launched in Q4. In line with
1,950
driven by improved operational efficiencies leading its sustainability commitment as the global integra-
1,900 Unit cost
to lower consumption and better bunker efficiency tor of container logistics, Maersk is taking concrete
1,850 and positive effects from development in foreign steps towards carbon reduction to achieve net-zero
1,800 exchange rates. Compared to 2018, the unit cost at emissions by 2050 through innovative technologies
fixed bunker decreased by 0.2% adjusted for the and solutions. Maersk ECO Delivery is among these
1,750
positive foreign exchange rate effects. solutions and offering it to the market cement our
1,700
commitment by supporting supply chain customers
1,650 who share the same sustainability agenda.
2018 2018 2018 2018 2019 2019 2019 2019
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Total unit cost decreased by 2.7% to 1,953 USD/ Hub terminals port moves per hour increased by Fleet overview, year-end
FFE (2,008 USD/FFE), driven by a decrease in fuel 13.9% to 91.8 (80.6) due to significant improve-
cost caused by a 6.7% lower consumption, driven ments in most terminals driven by continued opti- TEU Number of vessels
by improved efficiencies from improved capacity misation of operational synergies between the 2019 2018 2019 2018
management and impacted by a decreased aver- hub terminals and liner activities gradually mate- Own container vessels
age bunker price of 2.9%, equal to 12 USD/tonne. rialising throughout the year. Port Said, Egypt,
0 – 2,999 TEU 116,165 116,287 58 60
The combined effect of lower average prices and and Maasvlakte II, the Netherlands, improved the 3,000 – 4,699 TEU 365,351 365,811 90 90
lower consumption resulted in a total bunker cost most in 2019. 4,700 – 7,999 TEU 344,844 315,164 55 51
decrease of 9.4% to USD 4.6bn (USD 5.0bn). Out of 8,000 – 11,499 TEU 428,054 445,754 48 50
the total decrease, USD 0.1bn was because of the The fleet consisted of 307 owned vessels and 401 11,500 – 14,999 TEU 69,018 69,018 6 6
15,000 – 17,499 TEU 292,282 246,496 19 16
lower average bunker price, with the remaining chartered vessels at the end of 2019. The average
> 17,500 TEU 593,048 572,480 31 30
decrease due to lower consumption partly given a nominal capacity increased by 0.4% at an aver- Total 2,208,762 2,131,010 307 303
6.9% improvement in bunker efficiency to 41.2 g/ age of 4,132k TEU (4,115k TEU) for the full year.
TEU*NM (44.2 g/TEU*NM) compared to 2018. The total fleet ended the year at 4,125k TEU with
idle capacity of 348k TEU (35 vessels), an increase
Chartered container vessels
Unit cost at fixed bunker decreased by 1.7% to 1,777 from 78k TEU (five vessels) at the end of 2018,
0 – 2,999 TEU 381,688 396,938 179 193
USD/FFE (1,808 USD/FFE), driven by improvements mainly due to retrofit of scrubbers. The idle capac-
3,000 – 4,699 TEU 286,067 290,950 71 74
in operational efficiencies, including bunker effi- ity corresponded to 25% of the total idle capacity
4,700 – 7,999 TEU 410,119 326,301 69 55
ciency, and impacted positively by development in the market. No vessel newbuilds were delivered 8,000 – 11,499 TEU 544,568 615,695 59 66
in foreign exchange rates. Adjusting for the pos- in H2 2019. 11,500 – 14,999 TEU 293,656 247,644 23 19
itive impact from the developments in foreign Total 1,916,098 1,877,528 401 407
Total fleet 4,124,860 4,008,538 708 710
exchange rates, the unit cost at fixed bunker
decreased by 0.2%.
Newbuilding programme (own vessels)

3,000 – 4,699 TEU 0 7,192 0 2
> 8,000 TEU 0 66,246 0 4
Total 0 73,438 0 6
Cost split, EBITDA level, %

Prior to the implementation of IFRS 16, only operating leased vessels were included in the chartered
Container handling
container vessel section while finance leased vessels were presented together with owned to match
and equipment cost
the classification on the balance sheet. All leased vessels are included in the table within the chartered
13 12 Network cost excl.
container vessel section. 2018 figures have been restated.
bunker
19 20
Bunker
Non-operational cost
2019 2018
29 29
39 39
2019 Directors’ report Performance Logistics & Services
Logistics
& Services
Logistics & Services reported revenue of USD 6.0bn

(USD 6.1bn), driven by increasing revenue in ware-
housing and distribution, offset by decrease in the
sea and air freight forwarding activity. Gross profit
grew to USD 1.2bn (USD 1.1bn) reflecting a gross
profit margin of 20% (18%) with margins improving
throughout the year. The improvement was sup-
ported by growth in most of the strategic areas,
including margin optimisation in intermodal and
effects from new warehousing facilities, partially
offset by lower margins in sea and air freight for-
warding and inland services. EBITDA increased to
USD 238m (USD 191m).
Volumes grew slightly in intermodal, due to a con-

scious decision to optimise in certain geographical
locations. Volumes in supply chain management
Logistics & Services
reported an increase in declined slightly, and sea and air freight forwarding,
gross profit to USD 1.2bn volumes were down, due to exit in certain countries
(USD 1.1bn), supported
by intermodal and new and the front loading of volumes in 2018 ahead of
warehousing facilities. tariffs between the USA and China.
8.7%
Financial and operational performance of 4.0% (3.1%), positively impacted by develop-
Revenue decreased by 1.9% to USD 6.0bn (USD ments in gross profit and lower maintenance
6.1bn), impacted by decreasing revenue in sea and costs in Star Air, partly off-set by one-offs
air freight forwarding, partially offset by increas- related to inland services in 2019.
ing revenue in warehousing and distribution. Gross
profit increased by 8.7% to USD 1.2bn (USD 1.1bn) Supply chain management revenue of USD 861m
with a gross profit margin of 20% (18%), mainly (USD 867m) was negatively impacted by margin
supported by growth in most of the strategic pressure driven by difficult market conditions,
areas and margin optimisation in intermodal and with Asia exports being the most affected by Gross profit increased by 8.7% to USD 1.2bn (USD 1.1bn),
new warehouse facilities becoming operational the uncertainties related to trade restrictions implying a gross profit margin of 20% (18%).
in H2 2018. However, this was partially offset by between the USA and China, and impact from
lower margins in sea and air freight forwarding, foreign exchange rate. Gross profit decreased to
as well as a decline in inland services and supply USD 340m (USD 347m).
chain management. EBITDA increased by 24%
to USD 238m (USD 191m), with an EBITDA margin
Logistics & Services highlights

USD million 2019 2018 ¹ 1 2018 presented as if IFRS 16 had been implemented in 2018, Intermodal reported revenue of USD 2.5bn (USD
for comparison purposes. 2.6bn) and gross profit increased to USD 115m
Revenue 5,965 6,082
Direct cost 4,747 4,961 (USD 46m), driven by growth in profitable areas
Gross profit 1,218 1,121 and margin optimisation in North America, China
Selling, General & Administration (SG&A) and other costs, etc. 980 930 and the United Kingdom.
Profit/loss before depreciation, amortisation and
impairment losses, etc. (EBITDA) 238 191
EBITDA margin 4.0% 3.1% Inland activities revenue of USD 576m (USD 595m)
Logistics & Services five main activities
Supply chain management activi- Inland services are operating was negatively impacted by lower revenue in India,
Gross capital expenditure, excl. acquisitions and ties, where Maersk manages the activities in inland service facili- Costa Rica, Chile and Mauritania due to decreasing
divestments (CAPEX) 128 47
customers’ supply chain. ties with the main revenue stream volumes and lower rates. Gross profit decreased to
being container storage, bonded USD 243m (USD 258m).
Operational and financial metrics
Intermodal refers to all operating warehousing, empty depot and
EBIT conversion (EBIT/gross profit - %) 3.0% 6.8% activities under Maersk, Safmarine local transportation.
Supply chain management volumes (’000 cbm) 75,234 75,309 and Sealand – a Maersk Company, Sea freight forwarding revenue was USD 546m (USD
Supply chain management revenue 861 867 for which the main revenue stream Freight forwarding with sea and air 646m), due to a volume decrease of 9.7% to 577k
Intermodal revenue 2,527 2,569 comes from the transportation of freight continuing to operate in TEU (639k TEU), related to the decision to exit cer-
Inland services revenue 576 595 containers from vendors (shippers) a non-integrated way under the tain countries, front loading of volumes in 2018
Sea freight volumes (TEU) 577,084 639,132 to the port of shipment, and from Damco brand name.
Sea freight revenue 546 646 and negative impact from foreign exchange rate.
the discharge port to the point of
Air freight volumes (tonne) 158,405 175,502 offloading (consignee) by truck Other services include warehousing, Gross profit decreased to USD 86m (USD 115m),
Air freight revenue 485 608 and/or rail. distribution and other value-added due to volume decline with margin deterioration
Other services revenue 970 797 services as well as trade finance. by 18% to 148 USD/TEU (180 USD/TEU).
Air freight forwarding revenue was USD 485m Other services revenue increased to USD 970m
(USD 608m) with volumes at 158k tonnes (176k (USD 797m), supported by increased activity in
2019
tonnes), mainly because of soft market in China warehousing and distribution, as well as positive
and in the Pacific due to front loading in 2018, the contribution from the acquisition of Vandegrift in
decision to exit certain countries and negative customs house brokerage. Gross profit increased
Key initiatives
impact from foreign exchange rate. Gross profit to USD 381m (USD 285m).
decreased to USD 53m (USD 70m), reflecting a The acquisition of the US based customs house broker
margin deterioration by 16% of 335 USD/tonne EBIT conversion ratio of 3.0% (6.8%) was negatively Vandegrift in the beginning of 2019 expanded the Logistics
(396 USD/tonne). impacted by impairments offset by lower main- & Services product portfolio as an addition to the end-
tenance costs. Adjusted for this, the EBIT conver- to-end services offering. The integration progressed on
track with the product now being digitally offered in
sion ratio was in line with 2018.
23 countries.
The commercial organisations of Ocean and Logistics

& Services merged in Q1, where one Maersk commercial
frontline combined offers ocean products, supply chain
services and value-added services. The changes involved
employees in amongst others, sales and customer service
functions to work in a new way, in new teams, with new
Activity overview, % customers and products, to ensure improved customer
experience with fewer touchpoints and a more compre-
Revenue Gross profit Supply chain management hensive service offering.
Intermodal
17 32 Inland services Long-term logistics services contracts were concluded with
Sea freight forwarding customers around the world, among which some of the
14
Air freight forwarding largest e-commerce retailers expanding the customers’
8 Other services reach for multiple products and product add-ons.
9 2019 2019 28 Maersk and Syngenta extended their partnership by signing

a new contract for a fourth-party logistics (4PL) concept,
4 9 which is a key element of the strategy aimed at expanding
10
7 in supply chain management solutions. The journey with
42 20 Syngenta underpins the strategic transformation of Maersk
into a true integrated container logistics provider.
The operational integration of APM Terminals Inland

13 26 Services within the Logistics & Services organisation was
14 successfully completed. Maersk made investments in
10 visibility tools for its logistics products and secured long-
term end-to-end logistics contracts around the world,
11
2018 2018 31
integrating ocean with its logistics services.
6 4
10 10
42 23
2019 Directors’ report Performance Terminals & Towage
Terminals
& Towage
Terminals & Towage reported an increase in revenue

of 3.2% to USD 3.9bn (USD 3.8bn), and an increase
in EBITDA of 11% to USD 1.1bn (USD 998m) with an
EBITDA margin of 28.4% (26.5%).
The positive development in revenue and EBITDA

in gateway terminals was driven by ramp-up of the
new terminal in Moin, Costa Rica, higher volumes,
higher storage income and reduction in SG&A. Vol-
umes grew by 3.9%, supported by volume growth
of 7.3% from external customers, partly offset by
lower volume from the Ocean segment of 2.2%,
driven by the divestment of Izmir, Turkey, and
Kobe, Japan. Higher volumes in Towage were due
to increased activities in the Americas and the
Asia, Middle East and Africa region.
CAPEX in Terminals was USD 438m (USD 436m),

with the largest investments being a terminal
Crane operator in action modernisation project in Los Angeles, USA, and
at APM Terminals in Moin, equipment replacements. Lower CAPEX in Towage
Costa Rica. The new terminal
helped drive results in gate- of USD 92m (USD 120m) was mainly due to less
way terminals. cash flow for assets under construction.
Terminals Revenue and cost per move, financially consolidated,

Terminals, USD
Financial and operational performance and Kobe), driven by higher volumes in Latin
Revenue Cost
Revenue increased by 4.1% to USD 3.2bn (USD 3.1bn), America of 22%, mainly due to ramp-up of
and EBITDA increased by 17% to USD 902m (USD Moin. In North America, volumes grew by 9.9%
Note: Revenue per move
768m) reflecting an increase in the EBITDA margin primarily due to increase in external customer 252 239 254 263 271 257 261 265 280
includes terminal revenue,
Cost move
of 3.2 percentage points to 28%, while CAPEX was volume in Los Angeles. Africa and Middle East 260 other income, government
Revenue
grants and excludes move
IFRIC 12
USD 438m (USD 436m). Terminals in Moin, Costa volume grew by 4.6%, supported by stable eco-
240 construction revenue and
Rica, Tema, Ghana, and Vado, Italy, went into nomic growth. In Europe, volumes decreased by
rebates.
operation in 2019. 6.1% mainly driven by the divestment of Izmir 220
Cost per move includes cost
in Q4 2018 and lower volumes in Barcelona, (EBITDA less revenue less
200
The volume in financially consolidated moves Spain. Asia decreased by 9.7%, mainly driven other income), depreciation
207 203 205 219 225 213 206 207
grew by 3.9% (like-for-like 2.5% adjusted for new by the exit from Kobe and lower volumes in 180 and excludes internal man-
agement fees and IFRIC 12
terminal in Moin and divested terminals in Izmir Mumbai, India. 2018 2018 2018 2018 2019 2019 2019 2019
construction cost.
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Terminals & Towage highlights

USD million 2019 2018 ¹ 1 2018 presented as if IFRS 16 had been implemented Volume from the Ocean segment decreased by
in 2018, for comparison purposes. 2.2% (increased by 1.1% like-for-like) and volume
Revenue 3,894 3,772
Concession fees 249 262 from external customers grew by 7.3% (3.2% like-
Labour cost (Blue collar) 1,306 1,222 for-like). The estimated market volumes growth
Other operational cost 602 651 was 1.4%.
Selling, General & Administration (SG&A) and other costs, etc. 630 639
Total operating costs 2,787 2,774 Terminals & Towage segment
Utilisation at 80% (73%) was mainly due to ramp-
Profit/loss before depreciation, amortisation and Terminals & Towage includes gateway terminals involv-
impairment losses, etc. (EBITDA) 1,107 998 up of Moin, and volume growth and temporary
ing landside activities (being port activities where the
EBITDA margin 28.4% 26.5% capacity reduction in Los Angeles. On an equity-
customers are mainly the carriers), and towage services
under the Svitzer brand. weighted basis, volume grew by 4.7% (3.7% like-
divestments (CAPEX) 530 556 for-like) and utilisation was 85% (79%).
Terminal towage is a one-customer operation. The cus-
tomer is a port, a terminal or owner of an offshore facil-
Operational and financial metrics Revenue per move increased by 4.3% to USD 263
ity. The contract is for specific vessels, and the customer
Terminal volumes – financially consolidated (moves, m) 11.8 11.4 determines which work the vessel performs. The annual- (USD 252), driven by Moin, higher storage income
Ocean segment 4.0 4.1 ised EBITDA per tug measure is the relevant measurement. in West Africa and Latin America and higher vol-
External customers 7.8 7.3
umes in North America where rates are higher on
Terminal revenue per move – financially consolidated (USD) 263 252 Harbour towage is a multi-customer operation in a com-
Terminal unit cost per move – financially consolidated (USD) 212 211 average. This was partly offset by negative EUR
mon user facility. The customers are vessel owners and
Result from joint ventures and associated companies (USD m) 206 164 foreign exchange rate impact. Adjusted for foreign
operators, either contracted for one to three years or
Number of operational tug jobs (harbour towage) ('000) 134 131 booked call-by-call. The number of operational tug jobs exchange rate, volume mix effects and portfolio
Annualised EBITDA per tug (terminal towage) (USD in ‘000) 889 892 (utilisation) is the relevant measurement. changes, revenue per move increased by 0.1%. The
Gateway terminals, higher storage revenue in the West African termi- Terminals
financially consolidated, EBITDA% nals. In Americas, the EBITDA margin increased by
2.0 percentage points, driven by ramp-up of Moin Number of terminals 2019 2018 One terminal under
2019 2018 implementation in
and higher volumes, partially offset by higher cost Americas 16 15
Abidjan, Ivory Coast,
Americas 24 22 in North America. The EBITDA margin decreased Europe, Russia and Baltics 18 18
opening in 2021.
Europe, Russia and Baltics 20 23 by 2.9 percentage points in Europe, driven by Asia 17 18
Asia 20 22 divestment of Izmir and lower volumes. In Asia, Africa and Middle East 14 14
Africa and Middle East 48 46 Total 65 65
the EBITDA margin decreased by 2.3 percentage
Total 28 25
points due to lower volumes in Mumbai and the
exit from Kobe.
volume mix effect relates to impact on revenue Financially consolidated volume, Terminals
per move from changes in the share of volumes Results from joint ventures and
Million moves 2019 2018 Change % The increase in Americas
from terminals in different geographic locations. associated companies
mainly due to ramp-up
Equity-weighted EBITDA, which includes the EBITDA Americas 5.4 4.7 15.7
of Moin and increase in
Cost per move increased by 0.7% to USD 212 (USD weighted on terminal ownership percentages of Europe, Russia and Baltics 2.5 2.7 -6.1
external customer vol-
Asia 2.0 2.2 -9.7
211), mainly driven by higher volumes in Americas, all entities (subsidiaries, joint ventures and associ- ume in Los Angeles.
Africa and Middle East 1.9 1.8 4.6
where costs are higher on average. The benefits ates) increased by 15% to USD 1.3bn (USD 1.2bn). Total 11.8 11.4 3.9
of several cost reduction initiatives offset part
of the inflationary labour cost in several termi- The share of profit in joint ventures and associated
nals. Adjusted for foreign exchange rates, volume companies of USD 185m (USD 158m) was positively
mix effects and portfolio changes, cost per move impacted by higher revenue in associated terminals
decreased by 1.4%. in Africa and Middle East, supported by ramp-up
of Tema. Cash contribution from joint ventures and
2019
The EBITDA margin increased by 2.7 percentage associated companies from dividends was USD
points in Africa and Middle East, mainly due to 187m (USD 189m).
Key initiatives
Cost split, Terminals, % The ramp-up of the greenfield terminal in Moin progressed according to plan and the termi-
nal delivered satisfactory financial results in 2019 despite unfavourable crop conditions for
Labour banana exporters and unfavourable market conditions for pineapple exports in Costa Rica.
Service & Administration
16 16 Other operational cost In Tema, the joint venture terminal went into operation and ramp-up progressed accord-
Concession fee ing to plan. Construction of the greenfield terminal in Vado was completed and by the
9 Depreciation end of 2019, the terminal opened and went into commercial operations in Q1 2020.
10
14 2019 12
2018 Port Elizabeth, New York, USA, suffered from congestion-related operational challenges
in Q1 and Q2, which were resolved in Q3.
A large-scale modernisation project was initiated in Los Angeles, USA.

11 13
50 49
Towage
Financial and operational performance Volumes in Australia decreased due to lower In the Asia, Middle East and Africa region, activity
Revenue from towage activities amounted to commodity exports and decreased market share measured by revenue increased by 15% with tow-
USD 695m (USD 692m), positively impacted by for harbour towage in competitive ports. age operations ramping up in Tangier-Med II and
increases in the Americas of USD 13m and in in Monrovia, Liberia, as well as Bangladesh reach-
the Asia, Middle East and Africa region of USD Activity in Europe decreased slightly, and Svitzer’s ing full operations in 2019.
14m, partly offset by decreases in Australia market share for harbour towage in competitive
of USD 20m and in Europe of USD 4m. Rev- ports was negatively impacted by more intense CAPEX was reduced by USD 28m to USD 92m
enue growth adjusted for foreign exchange competition from consolidation amongst towage (USD 120m), mainly impacted by lower cash out-
rate developments was 4.7%. providers and increasing supply of tugboats lead- flow for assets under construction in 2019. Tow-
ing to lower volumes and utilisation. age sold nine vessels with a cash flow impact of
Harbour towage activities measured by the num- USD 7m in 2019.
ber of tug jobs increased by 2.9% compared to In the Americas, activity in Brazil increased, mainly
2018, mainly driven by increased activity in the driven by new customers in ports entered during
Americas and the Asia, Middle East and Africa 2018 and additional volumes and market share in
region. For terminal towage, annualised EBITDA the ports entered in 2017. Also, the Caribbean joint
2019
per tugboat remained on par with 2018 with a venture was awarded a new contract in Saint Croix,
positive impact from new contracts entered in USA, with start by mid-2019. The terminal towage
2018, offset by negative foreign exchange rate activities ramped up in Costa Rica where opera-
Key initiatives
impact. tions partially commenced in 2018.
Towage activities have been positively impacted by further cooperation with other
Maersk businesses during 2019. These synergies have contributed to securing contracts
in Monrovia, Liberia, and in Antwerp, Belgium.
The acquisition of Port Towage Amsterdam, the Netherlands, was agreed and signed in
December 2019, with closing by mid-January 2020.
Revenue, Towage In 2019, new and extension of contracts were also secured in the Suez Canal, Egypt,
and in Sohar, Oman, while the Caribbean joint venture was awarded a new contract in
Per region, USD million 2019 2018 Growth % Saint Croix, USA.
Australia 253 273 -7.2

As part of the strategic portfolio optimisation, the Portuguese towage activities were
Europe 240 244 -2.0
sold in Q4.
Americas 109 96 13.2
Asia, Middle East and Africa 93 79 15.1
The divestment of Svitzer’s salvage business in Ardent came into effect in Q4 2019.
Total 695 692 0.1
To address the increased commercial pressure from fewer new projects, slow growth
Per activity, USD million
in vessel calls and overcapacity of towage tonnage in certain geographical markets, new
Harbour towage 472 485 -2.6 strategic growth initiatives were launched in July 2019 together with projects aiming at
Terminal towage 226 210 7.7 crew optimisation and operational and administrative cost reduction.
Eliminations, etc. -3 -3 N/A
Total 695 692 0.3
Results from joint ventures and

Towage activities have
associated companies
been positively impacted Equity weighted EBITDA, which includes the EBITDA
by further cooperation weighted on activities ownership percentage of all
with other Maersk busi-
nesses during 2019. entities (subsidiaries and associated companies)
decreased by 10% to USD 226m (USD 251m).
The market
Activity levels in the harbour towage markets
remained stable. For harbour towage in Europe,
consolidation in the industry persists, leading to
stronger competitors and more intense competi-
tion. In Australia, a new competitor started up by
the end of 2018, which increases competition.
The strategic focus is still to improve cost levels

and productivity, while utilising and expanding
the global footprint to ensure closer cooperation
with targeted customers. Only few terminal tow-
age projects were awarded in the market during
2019, but several new projects are under prepa-
ration and expected to be awarded during 2020
and 2021.
Fleet overview, Towage

Number of vessels 2019 2018 The towage fleet increased
by one vessel to 366 vessels,
Owned 344 339
with 344 owned and 22
Chartered 22 26
chartered at the end of
Total 366 365
2019. A total of 11 vessels
are on order with delivery
Newbuilding
of 10 vessels in 2020 and
Delivery 2020 and onwards 11 2 one vessel in 2021.
Total 11 2
2019 Directors’ report Performance Manufacturing & Others
Manufacturing
& Others
Manufacturing & Others’ revenue decreased to

USD 2.2bn (USD 2.8bn) while EBITDA increased to
USD 205m (USD 163m).
In January, Maersk Container Industry announced

to focus on growing the reefer business and exit
the dry container business, including the manufac-
turing in Dongguan, China, impacting both reve-
nue and EBITDA. Maersk Container Industry now
focuses solely on the design, manufacture and
service of reefer technology.
Maersk Supply Service ensured important contract

wins, and extensions were secured in all five core
geographic regions: North America, Europe, West
Africa, Latin America and Asia Pacific, ensuring
utilisation of vessels and resulting in increased
backlog.
Reefer trade has
become the key focus
for Maersk Container The bulk activities taken over as part of the Ham-
Industry. burg Süd transaction were divested in January 2019.
2019 Directors’ report Performance Manufacturing & Others
Financial and operational performance Despite the reduction in revenue, Maersk Con- Maersk Supply Service was awarded contracts
Maersk Container Industry reported revenue of USD tainer Industry expanded the EBITDA margin by in the solutions areas, demonstrating the value
2019
586m (USD 978m) and EBITDA of USD 29m (USD 0.8 percentage points to 4.9% (4.1%), a result of of the strategic direction of offering solutions
40m). The reduction in revenue was a result of the elimination of low-margin dry containers and work and diversifying into new markets, thereby
exiting the dry container business in January 2019. cost control. The EBITDA margin for the continuing achieving a revenue backlog that was 6.5%
Key initiatives
EBITDA is negatively impacted by closing the fac- business of reefers exceeded 11%. higher than in 2018.
tory with USD 31m in restructuring costs and the Maersk Container Industry increased its invest-
exit of the dry container business in general. Maersk Supply Service reported a 16% increase in The activities in Others reported a revenue of ment in the industry leading Star Cool Platform
revenue to USD 306m (USD 263m), and an EBITDA USD 1.3bn (USD 1.5bn), impacted by the divest- and celebrated the 10th anniversary of Star Cool’s
CA system (Controlled Atmosphere) in Q2. Since
In 2019, the volume of Star Cool Integrated, Star of USD 28m (USD 3m) reflecting higher rates and ment of bulk activities originally acquired from
the system was first launched in the market in
Cool Units and Reefer Boxes was 41,580 (47,932). utilisation. Cash flow used for capital expenditure Hamburg Süd. Revenue in Maersk Oil Trading was 2009, more than 55,000 CA units have entered
The reduction in production was a direct result of was USD 188m (USD 342m) due to payments of USD 797m (USD 769m). EBITDA in Others was service around the world.
the contraction in overall market demand in 2019. two (four) newbuildings concluding the newbuild- USD 149m (USD 119m).
Star Cool Integrated coupled with StarConomy
The total demand from Maersk was at 36% (39%). ing programme. energy saving software allows customers to have
the lowest energy consumption in the industry.
Star Cool Integrated is the industry’s most proven
Controlled Atmosphere (CA) technology with
over 85% market share of the CA installed base.
More than 55,000 CA units have entered service
around the world.
Maersk Supply Service continued to expand its

track record in the solution space, complet-
Manufacturing & Others highlights ing large mooring installation projects in West
Africa and Brazil in Q4. With this, the company
has expanded its solutions business from the
USD million 2019 2018 ¹ 1 2018 presented as if IFRS 16 had been implemented in 2018,
North Sea region into two new regions, adding
for comparison purposes.
Revenue 2,172 2,787 new customers and projects to its portfolio in
Profit/loss before depreciation, amortisation and 2019. The solutions work has added significant
revenue and improved vessel utilisation of the
impairment losses, etc. (EBITDA) 205 163
company.
EBITDA margin 9.4% 5.8%
Maersk Supply Service continued to diversify

Manufacturing & Others segment into new markets beyond traditional oil and gas
divestments (CAPEX) 204 358
Manufacturing includes the activities of Maersk Container Industry with offshore campaigns in both ocean cleaning
with the production and sale of reefer containers at the factory in and deep sea minerals executed in the Pacific
Operational and financial metrics, USD million
China, following the announcement in January 2019 to exit the dry Ocean in Q4. With the second offshore campaign
Maersk Container Industry container business altogether. completed for The Ocean Cleanup, the non-profit
Sales volume (unit) 41,580 117,481 organisation aiming at removing plastic from the
Sales to third party 373 601 oceans now have an innovative clean-up system
Further, Maersk Supply Service provides marine services and inte-
EBITDA 29 40 that works as intended, capturing plastic from
grated solutions to the energy sector worldwide with a large fleet
the oceans. A contract extension was signed
of anchor handling tug supply vessels and subsea support vessels.
Maersk Supply Service with DeepGreen, a key customer in the deep sea
Gross utilisation 62% 60% minerals industry, adding additional backlog.
Others includes the third-party activities of Maersk Oil Trading and
Revenue backlog 344 323 bulk activities taken over as part of the Hamburg Süd transaction.
EBITDA 28 3 However, these bulk activities were divested in January 2019.
2019 Directors’ report Governance
Governance
Corporate governance
Board of Directors
Executive Board
Remuneration
Shareholder information
2019 Directors’ report Governance Corporate governance
Corporate governance
• The Maersk Whistleblower system, established The main conclusions and outcomes
in 2011, enabling employees and other stake- of the board evaluation were:
holders in 130 countries to report wrongdoings. The Board’s work has undergone a positive devel-
Further information on whistleblower reports opment in 2018-2019 by improving dynamics,
is available in the Sustainability Report and on: engagement and the level of challenges and spar-
Corporate governance is an important aspect of A.P. Møller - Mærsk A/S https://secure.ethicspoint.eu/domain/media/ ring offered by and among the Board of Directors
in line with the company’s values. A.P. Møller - Mærsk A/S is continuously en/gui/102833/index.html and the Executive Board. The Board evaluation
developing its corporate governance in response to the strategic develop- confirmed the alignment on the top strategic
To organise and conduct Board meetings in the issues and continued focus on priorities and
ment, goals, and activities, as well as to the external environment and
most relevant and efficient manner, the Board transparency.
input from stakeholders. has established an Annual Wheel in cooperation
with the Executive Board. The Annual Wheel out- The results and conclusions from the annual Board
lines the main themes and topics for each ordi- evaluation form the basis for the Nomination
nary Board meeting and areas on which the Execu- Committee’s considerations and continued search
tive Board is expected to report as well as matters for future candidates to the Board of Directors.
for deliberation or approval by the Board mem-
bers. The Annual Wheel ensures that all relevant
The five core values “Constant Care“, “Humble- The formal basis for the corporate governance of topics are covered during the year, e.g. strategy,
ness“, “Uprightness“, “Our Employees“, and A.P. Møller - Mærsk A/S consists of: people and capabilities, transparency, and com-
“Our Name“ remain pillars for the way in which • The Articles of Association. Available on pliance and risk.
A.P. Møller - Mærsk A/S conducts its business. https://investor.maersk.com/board-directors
Engrained in the company for more than a century, • Rules of procedure applicable to the Board of Board evaluation
Core values
these corporate values are continuously being Directors and the Executive Board as well as During September 2019, an externally facilitated
promoted throughout the global organisation procedures specific to each of the Board com- Board evaluation process was conducted, among Constant Care
and serve as guiding principles for employees mittees. The Rules of procedure are available others covering the cooperation between the Take care of today, actively
and leaders. on https://investor.maersk.com/corporate-gov- Board of Directors and the Executive Board, the prepare for tomorrow
ernance Chairman’s role, the Board’s and Board commit-

Humbleness
The governance structure supports close coordina- • Policies and principles on health and safety, tees’ work and an assessment of Board capabil- Listen, learn, share, give
tion between the Board of Directors, the Executive legal compliance, working culture, tax and other ities relative to those best supporting the com- space to others
Board, and leaders throughout the organisation. key areas within corporate governance and good pany’s strategy. All members of the Board of
The structure promotes the objectives of: corporate citizenship. Read more about our Directors participated in the evaluation and pro- Uprightness
Our word is our bond
• Early identification of opportunities, challenges, policies on https://www.maersk.com/about vided input via questionnaires, thus forming
and risks. • The internal governance framework (COM- the basis of a comprehensive evaluation report. Our Employees
• Efficient processes for informed decision-making. MIT) stipulates more detailed policies, rules, The results were discussed in plenary sessions by The right environment for
• Continuous learning. instructions, and guidelines applicable to all the Board of Directors and agreed improvements the right people
• Proactive planning and agile execution. group entities and employees. Among others, were implemented.
Our Name
• Sound controls, checks and balances, and the framework covers Enterprise Risk Manage-
Sum of how we live the Values
compliance. ment, financial risks, responsible procurement, and how we are perceived
• Clear allocation of authorities and responsibilities. anti-corruption, legal compliance, etc. and is
• Safe operations. continuously updated.
Board composition two were female. The Board’s primary focus when The main elements of the company’s Risk assessment and management
Based on the strategy to move from a conglom- deciding on the composition of the Board was to internal control and risk management At least once a year, as part of the risk assess-
erate to a focused transportation and logistics ensure the capabilities necessary for a success- systems in connection with its financial ment, the Board of Directors, the Audit Committee
company, the Board initiated a process to define ful transformation of the company to become the reporting and the Executive Board undertake a general iden-
the Board composition of the future. As part of global integrator of container logistics. At the time The company’s risk management and internal con- tification and assessment of risks in connection
the Board Evaluation 2018, key competencies and of the search for new Board candidates, it was not trols in connection with its financial reporting are with the financial reporting, including the risk of
areas of experience and expertise required on possible to match the competencies needed with planned to reduce the risk of errors and omissions fraud, and consider measures to be implemented
the Board were identified to be: Shipping, trans- the available female candidates. The company in the financial reporting. to reduce or eliminate such risks.
port and logistics, IT/digital/tech and e-commerce, keeps focus on driving diversity both on manage-
business transformation, innovation and entre- rial levels and on the Board. Control environment Decisions on measures to reduce or eliminate risks
preneurship, asset-heavy industries, finance and The Board of Directors, the Audit Committee and are based on an assessment of materiality and
accounting, risk management, global leadership, As the target is still considered ambitious and the Executive Board regularly assess material risks probability of errors and omissions.
and board service in stock listed companies. realistic for the company, the Board has decided and internal controls in connection with the com-
to adopt the same target for the next period, with pany’s financial reporting process. The Audit Com- Control activities
Consequently, the Nomination Committee initiated a deadline end 2023, but will continuously assess mittee has a supervisory responsibility and reports Specific control activities have been defined for
a search for Board candidates with relevant addi- whether the target is still ambitious. to the entire Board of Directors. The responsibility each significant brand and business unit.
tional competencies to complete the Board’s over- for the everyday maintenance of an efficient con-
all, collective capabilities. At the Annual General Further information on diversity can be found in trol environment in connection with the financial The performance of such control activities is
Meeting in 2019, Bernard L. Bot and Marc Engel the company’s Sustainability report. reporting rests with the Executive Board. The man- monitored on brand and business unit as well as
were elected members of the Board of Directors agements of the brands and business units are on corporate level. This monitoring includes con-
bringing competencies within global transport Recommendations for corporate responsible for ensuring an efficient control envi- troller reports with follow-up on findings and rec-
and logistics. governance ronment for the respective brand or business unit. ommendations as well as an annual statement of
As a Danish listed company, A.P. Møller - Mærsk A/S representation from management of the most
Diversity must comply with or explain deviations from the Based on the applicable rules and regulations, the significant brands and business units.
When assessing the composition of the Board, the “Recommendations for Corporate Governance“ Board of Directors and the Executive Board pre-
Nomination Committee also considers diversity implemented by Nasdaq Copenhagen in the Rules pare and approve the general policies, procedures, Information and communication
and setting of the target for the underrepresented for issuers of shares and Section 107b of the Danish and controls in significant areas in connection with The Board of Directors is overall responsible for the
gender on the Board of Directors in accordance Financial Statements Act. the company’s financial reporting. company having information and reporting sys-
with Section 139c of the Danish Companies Act. tems in place to ensure that its financial reporting
In 2015 a target for the underrepresented gender The Board of Directors has prepared a statement The starting point is a clear organisational struc- is in conformity with rules and regulations. For this
on the Board of Directors was set. Three female on corporate governance for the financial year ture, clear chains of command, authorisation and purpose, the company has set out detailed require-
Board members elected by the general meeting if 2019. This statement includes a description of the certification procedures, and segregation of duties ments in policies, manuals and procedures, and a
the Board consists of less than 12 members and company’s approach to the recommendations in as well as adequate accounting and consolidation global consolidation system with related reporting
four female Board members elected by the gen- the “Recommendations for Corporate Govern- systems, including validation controls. instructions has been implemented. Also, risk and
eral meeting if the Board consists of 12 or more ance“. Reporting on compliance with the Corporate control catalogues have been established and col-
members. The target was not met by end 2019 as Governance recommendations can be found on In addition, the company has set up policies, manu- lated for all significant brands and business units
the Board consists of 10 members of which only https://investor.maersk.com/corporate-governance als and procedures within relevant areas in connec- as well as for corporate functions.
tion with its financial reporting. The policies, manu-
als and procedures are updated on an ongoing basis.
Framework for Monitoring Board of Directors Further information on the members of the Board
corporate governance The monitoring of risk management and control A.P. Møller - Mærsk A/S has a two-tier manage- of Directors, committees as well as the Board
systems in connection with financial reporting ment structure consisting of the Board of Directors members’ participation in Board and committee
takes the form of ongoing assessments and con- and the Executive Board as illustrated. There is no meetings is available on the company’s webpage
trol at different levels within the company. overlap between members of the Board of Directors and below.
Shareholders
and members of the Executive Board. By inviting
Any weaknesses, control failures and violations of business leaders, functional leaders, and relevant The Board of Directors plans seven to nine ordinary
the applicable policies, manuals and procedures experts to participate in parts of its meetings, meetings per year.
or other material deviations are communicated the Board of Directors and its committees inter-
Board of Directors upwards in the organisation in accordance with act with representatives from various parts of the The Board of Directors has established
relevant policies and instructions. Any weaknesses, organisation as well as external specialists. the following committees:
omissions, and violations are reported to the Exec-
Chairmanship utive Board. The Board of Directors and the Audit The Board of Directors lays down the general busi- The Chairmanship
Committee receive reports from the Executive ness and management principles and ensures the The Chairmanship consists of the Chairman and
Audit Committee Group Internal Board and from Group Internal Audit on the com- proper organisation and governance of the com- the Vice Chairman (or Vice Chairmen), who are
Audit pliance with the guidelines, etc., as well as on the pany. Furthermore, the Board of Directors decides elected by and among the members of the Board
Nomination weaknesses, omissions, and violations of the poli- the strategy and the risk policies and supervises of Directors. The Chairmanship performs certain
Committee cies, procedures, and internal controls found. the execution of the strategy as well as the per- preparation and planning in relation to Board
formance of the company and its management. meetings and is a forum for the Chairman’s and
Remuneration The auditors elected by the Annual General Meeting The Board of Directors appoints members of the management’s reflections. The Chairmanship
Committee account for any material weaknesses in the inter- Executive Board. meets regularly and as required.
nal control systems related to financial reporting
Transformation in the Auditor’s Long-form Report to the Board of The Board of Directors shall consist of four to 13 The Audit Committee
& Innovation Directors. Minor irregularities are reported in Man- members elected by the General Meeting. The Board The Audit Committee consists of three to four
Committee agement Letters to the Executive Board. members are elected for a two-year term. There are Board members appointed by and among the Board
Board members up for election every year to ensure members. The Committee reports to the Board of
Governance structure continuity in the work of the Board of Directors. Directors. The tasks of the Audit Committee include
Executive Board Shareholders and the General Meetings Board members are eligible for re-election. the review of accounting, auditing, risk and con-
The General Meeting is the supreme governing trol matters, which are dealt with at meetings with
body of A.P. Møller - Mærsk A/S. The sharehold- In connection with the Annual General Meeting on the external auditors, the CFO and the heads of
ers exercise their rights at the General Meeting, 2 April 2019, Jan Leschly and Rob Routs stepped the accounting and internal audit functions. Fur-
e.g. in relation to electing the Board members down from the Board of Directors, and the Annual thermore, the Committee is tasked with reviewing
Organisation and the auditors of the company, approving the General Meeting elected Bernard L. Bot and Marc material on related parties’ transactions. The major-
annual reports and dividends, deciding on the Engel as new members. The Board of Directors has ity of the members are independent. The Commit-
articles of association and on proposals submitted 10 members, all elected by the General Meeting. tee plans six to seven ordinary meetings per year.
by shareholders or the Board. The company has Six of the members of the Board of Directors,
two share classes: A shares carrying voting rights including the Chairman, are independent. The The Nomination Committee
and B shares without voting rights. A and B shares Chairman of the Board of Directors and the chair- The Nomination Committee consists of three
carry equal economic rights and are traded pub- men of the committees, except the Nomination Board members, one of whom is the Chairman of
licly at Nasdaq Copenhagen. Committee, are independent. the Board. The members are elected by and among
the Board members, and the Board appoints the recruitment, and evaluates candidates for election proposals to the Board of Directors for the remu- well as incentive programmes support the strategy
chairman of the Committee. The Nomination Com- to the Board of Directors at the General Meeting. neration of the Board of Directors and members of A.P. Møller - Mærsk A/S and create value for the
mittee assists the Board by establishing an over- The Committee meets on a regular basis. of the Executive Board. Furthermore, the Com- shareholders. The majority of the members are
view of the competencies required and represented mittee makes proposals to the Board, e.g. with independent. The Committee plans four meetings
on the Board, and reviews the structure, size, com- The Remuneration Committee regard to incentive schemes, reporting and dis- per year.
position, succession planning and diversity of the The Remuneration Committee consists of three closure of remuneration, and the remuneration
Board of Directors. The Committee also reviews the Board members, one of whom is the Chairman of policy. The Remuneration Committee ensures The Transformation & Innovation
application of the independence criteria, initiates the Board. The Remuneration Committee makes that the remuneration policy and practices as Committee
The Transformation & Innovation Committee con-
sists of three to four Board members appointed
by and among the Board members. The Commit-
tee is established with the purpose of supporting
the transformation of the company as well as the
development of the company’s overall strategic
direction and innovation agenda. The majority of
Overview of committee members and attendance rate for 2019 the members are independent. The Committee
Board of Chairmanship Audit Nomination Remuneration Transformation 1 Considered independent plans four meetings per year.
Directors Committee Committee Committee & Innovation cf. Recommendations for
Committee
Corporate Governance Rules of procedure
8/8 4/4 2 Joined the Board or The Rules of procedure for the Audit Committee,
Jim Hagemann Snabe¹ 8/8 8/8 7/7 4/4
(Chairman) (Chairman) Committee in April 2019
Nomination Committee, Remuneration Committee,
8/8 7/7 3 Joined the Committee
Ane Mærsk Mc-Kinney Uggla 8/8 and Transformation & Innovation Committee are
(Vice Chairman) (Chairman) in August 2019
Dorothee Blessing¹ 7/8 4 Stepped down in available on the company’s webpage.
April 2019
Bernard L. Bot¹ 7/7² 5/5 Group Internal Audit
4/4 Group Internal Audit was established in 1998 and
Niels Bjørn Christiansen¹ 8/8 3/3²
(Chairman) provides assurance to the Board of Directors and
Marc Engel¹ 6/7² 2/2³ the Audit Committee and acts independently of
the Executive Board. Group Internal Audit’s main
8/8
Arne Karlsson¹ 8/8 focus is to review the effectiveness of internal
(Chairman)
controls, procedures and systems to prevent and
Thomas Lindegaard Madsen 8/8
detect irregularities. The Head of Group Internal
Jacob Andersen Sterling 8/8 Audit reports to the Chairman of the Board of
Directors and to the Audit Committee.
Robert Mærsk Uggla 8/8 7/7 4/4 4/4
Jan Leschly 1/1⁴
Rob Routs 1/1⁴ 3/3⁴ 0/1⁴
Overall attendance rate 97.5% 100% 100% 100% 91.7% 100%

The Executive Board Matters handled by the Board of Matters handled by the Board The Nomination Committee
(registered management of the company) Directors during 2019 Committees in 2019 • Review and assess the composition, succes-
The Executive Board is appointed by the Board of (including but not limited to): (including but not limited to): sion planning, competencies, and diversity of
Directors to carry out the day-to-day management the Board of Directors as a part of the Board
of the company in accordance with the directions • Strategy and business plan review, target The Chairmanship evaluation.
provided by the Board of Directors: setting and budget approval. • Preparations and planning in relation • Identify candidates (Bernard L. Bot and
• Develop the business and submit strategy pro- • Follow-up on M&A activities to ensure growth to Board meetings. Marc Engel) for membership of the Board
posals to the Board of Directors for decision. of Logistics & Services. • Coordination and sparring with the of Directors.
• Implement the strategy for the company and • Demerger and separate listing of Maersk Executive Board. • Propose target for gender diversity on the
execute on investments and divestments. Drilling. Board of Directors.
• Develop the organisational structure of the • Review the implementation of a new safety The Audit Committee • Assess independence criteria of the Board
company and allocate resources. framework within the organisation. • Monitor the financial reporting process, includ- members.
• Prepare internal and external financial reporting. • Monitor the company’s financial policy, credit ing accounting estimates and risks, accounting
• Monitor and plan capital resources and liquidity. rating, debt levels and capital structure, includ- policies and reporting process integrity. The Remuneration Committee
• Establish and implement internal policies ing decision on dividend policy and share-buy- • Review annual and interim financial reports. • Review and define benchmarks for executive
and procedures for relevant topics such as back programme. • Review of the company’s Directors and Officers remuneration.
accounting, finance, IT, etc. • Monitor the implementation of the Tech Insurance. • Review, monitor and propose to the Board the
• Enterprise Risk Management. strategy and cyber security standards. • Monitor the effectiveness of internal control scorecards and remuneration packages of the
• Monitor the transformation and reorganisation systems, fraud risks and fraud prevention. Executive Board for 2019 and 2020.
As of 1 January 2019, the Executive Board of of the company to become the global integrator • Discuss key audit matters, monitor the services, • Review and propose a new Remuneration Policy.
A.P. Møller - Mærsk A/S consisted of Søren Skou of container logistics. audit plans, reports, independence of external • Preparation for the reporting and disclosure
(CEO), Claus V. Hemmingsen (Vice CEO), Carolina • Conduct Board evaluation. auditors, and recommend statutory auditor of remuneration in alignment with the new
Dybeck Happe (CFO), Vincent Clerc (CCO), Morten • Nominate Bernard L. Bot and Marc Engel as for election. rules in the Danish Companies Act (The Remu-
H. Engelstoft (CEO of APM Terminals) and Søren Board members for the election to the Board • Monitor the Group Internal Audit function, neration Report).
Toft (COO). On 30 June 2019, Claus V. Hemmingsen at the Annual General Meeting 2019. its independence, scope and performance, • Propose Directors’ fees.
stepped down as Vice CEO and left the company. • Approval of the Annual Report 2018 and the resources and reporting, and the resolution of
On 11 November 2019, Søren Toft stepped down 2019 Interim Reports as well as review of audit findings. The Transformation & Innovation Committee
as COO and left the company. On 25 November monthly and quarterly financial reporting • Oversee the company’s Enterprise Risk • Support the development of the transformation
2019, Carolina Dybeck Happe announced her resig- and forecasting. Management framework and processes as and technology agenda by overseeing progress
nation and will step down as CFO during 2020. • Setting a target for the underrepresented well as review key enterprise risks and related and prioritisation of projects and processes of
On 17 December 2019, it was announced that gender for the Board of Directors. mitigation plans. strategic importance.
Henriette Hallberg Thygesen was appointed mem- • Approval of an updated Diversity and Inclusion • Meet with the Head of Group Internal Audit, • Act as a sparring partner for the Executive
ber of the Executive Board as per 1 January 2020, Policy for the Board of Directors. CFO, Head of Accounting, Head of Tax, other Board within innovation, consolidation and
and on 12 February 2020, it was announced that functional leaders and external auditors. growth, including M&A projects.
Patrick Jany will take up the position as CFO and • Assist in setting the standard and ambition level
member of the Executive Board by 1 May 2020. for the IT strategy and cyber security as well as
follow up on progress.
Further information about the members of the
Executive Board, including photos and occupations
can be found on the company’s webpage.
2019 Directors’ report Governance Board of Directors
Board of Directors
Jim Hagemann Ane Mærsk Dorothee Bernard Niels Bjørn
Snabe Mc-Kinney Uggla Blessing L. Bot Christiansen
Born: 1965 Born: 1948 Born: 1967 Born: 1966 Born: 1966
Gender: Male Gender: Female Gender: Female Gender: Male Gender: Male
Joined the Board: 2016 Joined the Board: 1991 Joined the Board: 2014 Joined the Board: 2019 Joined the Board: 2014
Current election Current election Current election Current election Current election
period: 2018-2020 period: 2018-2020 period: 2019-2021 period: 2019-2021 period: 2019-2021
Chairman of the Board of Directors and the Vice Chairman of the Board of Directors and Considered independent. Member of the Audit Committee. Chairman of the Transformation & Innovation
Remuneration Committee. Member of the Audit Chairman of the Nomination Committee. Committee. Member of the Remuneration
Committee, the Nomination Committee and the Managing Director, Regional Head for J.P. Morgan Considered independent. Committee.
Transformation & Innovation Committee. Not considered independent due to membership in Germany, Austria, Switzerland, Israel, Ireland and
of the Board of A.P. Møller og Hustru Chastine the Nordics, responsible for all lines of business and CFO, Kingfisher Plc.¹ Considered independent.
Considered independent. Mc-Kinney Møllers Fond til almene Formaal. Vice Chairman of Investment Banking EMEA and
CEO of J.P. Morgan AG. Other management duties, etc. CEO of LEGO A/S
Former Co-CEO, SAP AG, Germany Other management duties, etc. • None
• A.P. Møller og Hustru Chastine Mc-Kinney Møllers Other management duties, etc. Other management duties, etc.
Other management duties, etc. Fond til almene Formaal (Chairman) • Member of J.P. Morgan’s European Management Education • Demant A/S¹ (Chairman) and two related
• Siemens AG¹ (Chairman) • Den A.P. Møllerske Støttefond (Chairman) Committee • MSc in Economics from Erasmus University, companies; William Demant Foundation
• Allianz SE¹ (Vice Chairman) • A.P. Møller Holding A/S (Chairman) • Member of the Board of Directors of the Rotterdam, the Netherlands (Vice Chairman) and William Demant Invest A/S
• World Economic Forum (member of the Board • Estemco III ApS (CEO) Association of German Banks • MBA from University of Chicago Booth School (Board member)
of Trustees, member of Governing Board) • Timer ApS (CEO) of Business, Chicago, USA
Education Education
Education Education • MSc in Economics (lic.oec.), University of Qualifications • Master of Science in Engineering
• MSc in Economics and Business Administration, • Master of Arts, 1977 St. Gallen, Switzerland Experience within the transport and logistics (DTU Denmark), 1991
Aarhus School of Business (now Aarhus Univer- sector and listed companies. Technical financial • MBA from INSEAD, 1993
sity), 1989 Qualifications Qualifications skills and knowledge of global business-to-business
• Adjunct Professor at Copenhagen Business Insight into the market fundamentals, values Financial insight. Leadership experience from technology enterprises. Qualifications
School, 2017 and history of the company. Knowledge of the international investment banking and financial Management experience in large, global high-tech
company’s complex accounting matters. institutions. Attendance in Board and Committee meetings and industrial innovation companies. Board experi-
Qualifications during 2019 ence from both listed and private companies within
Board experience from a.o. international, listed Attendance in Board and Committee meetings Attendance in Board and Committee meetings 7 out of 7² Board meetings the financial sector, private equity and industry.
technology and innovation companies and from during 2019 during 2019 5 out of 5³ Audit Committee meetings
the financial sector. Management experience from 8 out of 8 Board meetings 7 out of 8 Board meetings Attendance in Board and Committee meetings
global, listed IT companies. 8 out of 8 Chairmanship meetings during 2019
7 out of 7 Nomination Committee meetings 8 out of 8 Board meetings
Attendance in Board and Committee meetings 3 out of 3² Remuneration Committee meetings
during 2019 4 out of 4 Transformation & Innovation
8 out of 8 Board meetings Committee meetings
8 out of 8 Chairmanship meetings
8 out of 8 Audit Committee meetings
7 out of 7 Nomination Committee meetings ¹ Listed company
4 out of 4 Remuneration Committee meetings
² In 2019, the Board held eight meetings; one before
4 out of 4 Transformation & Innovation
Bernard L. Bot joined the Committee. ¹ Listed company
Committee meetings
³ In 2019, the Audit Committee held eight meetings; ² In 2019 the Remuneration Committee held
three were held before Bernard L. Bot joined the four meetings, one was held before Niels Bjørn
¹ Listed company Committee. Christiansen joined the Committee.
2019 Directors’ report Governance Board of Directors
Marc Arne Thomas Jacob Andersen Robert

Engel Karlsson Lindegaard Sterling Mærsk Uggla
Madsen
Gender: Male Gender: Male Gender: Male Gender: Male Gender: Male
Joined the Board: 2019 Joined the Board: 2010 Joined the Board: 2018 Joined the Board: 2018 Joined the Board: 2014
Current election Current election Current election Current election Current election
period: 2019-2021 period: 2019-2021 period: 2018-2020 period: 2018-2020 period: 2018-2020
Member of the Transformation & Innovation Chairman of the Audit Committee. Not considered independent due to employment Not considered independent due to employment Member of the Nomination Committee,
Committee. in A.P. Moller - Maersk. in A.P. Moller - Maersk. the Remuneration Committee and the Trans-
Considered independent. formation & Innovation Committee.
Considered independent. Captain, Maersk Line Head of Technical Innovation, A.P. Møller - Mærsk A/S
Former CEO of Ratos AB Not considered independent due to the position
Chief Supply Chain Officer and Member of Unilever Other management duties, etc. Other management duties, etc. as CEO of A.P. Møller Holding A/S.
leadership Executive Unilever Plc, UK¹ Other management duties, etc. • None • Member of the Board of Directors, NEPCon
• Einar Mattsson (Chairman) CEO, A.P. Møller Holding A/S
Other management duties, etc. • Swedish Corporate Governance Board (Chairman) Education Education
• AndGreen Fund as Advisory Board member • Ecolean (Chairman) • Graduated Master, Svendborg • MSc in Biology, University of Copenhagen, 2002 Other management duties, etc.
• Swedish Securities Council and WCPF Navigations Skole, 1996 • The Drilling Company of 1972 A/S¹ (Vice Chairman)
Education (World’s Children’s Prize Foundation) (Chairman) Qualifications • A.P. Møller Capital P/S (Chairman)
• MSc, Applied Physics, from University of • ROL AB (Chairman) Qualifications Head of Technical Innovation, A.P. Møller - Mærsk A/S. • Maersk Product Tankers A/S (Chairman)
Groningen, the Netherlands • Girovent Holding AB (and one subsidiary of Captain in Maersk Line since 2011 and Chief Officer Relevant knowledge within product management, • Agata ApS (CEO)
Girovent Holding AB) in Maersk Line from 2004-2011. Technical, maritime technical innovation and sustainability, through • Estemco XII ApS (CEO)
Qualifications and operational knowledge relevant to the shipping employment in Maersk Line since 2009. • Foundation Board of IMD and board positions
International experience in general management, Education activities in Maersk. in a number of 100% owned subsidiaries under
procurement and supply chain roles. Insight from • Bachelor in Business and Economics, Stockholm Attendance in Board and Committee meetings A.P. Møller Holding A/S
a customer’s perspective in both shipping and School of Economics, 1982 Attendance in Board and Committee meetings during 2019
broader logistics space. during 2019 8 out of 8 Board meetings Education
Qualifications 8 out of 8 Board meetings • MSc in Business Administration (2003),
Attendance in Board and Committee meetings Experience as CEO and board member of private Stockholm School of Economics, including studies
during 2019 equity companies and with managing and devel- at Università Commerciale Luigi Bocconi
6 out of 7² Board meetings oping a diverse portfolio of businesses operating • Executive education at The Wharton School of
2 out of 2³ Transformation & Innovation in different markets. the University of Pennsylvania, Stanford Business
Committee meetings School and Harvard Business School
Attendance in Board and Committee meetings
during 2019 Qualifications
8 out of 8 Board meetings Leadership experience within investments,
8 out of 8 Audit Committee meetings incubation, shipping and marine services.
Attendance in Board and Committee meetings

during 2019
¹ Listed company 8 out of 8 Board meetings
7 out of 7 Nomination Committee meetings
² In 2019, the Board held eight meetings; one before
4 out of 4 Remuneration Committee meetings
Marc Engel joined the Committee.
4 out of 4 Transformation & Innovation
³ In 2019, the Transformation & Innovation
Committee meetings
Committee held four meetings; two of these were
held before Marc Engel joined the Committee. ¹ Listed company
2019 Directors’ report Governance Executive Board
Executive Board
Søren Carolina Vincent Morten H. Henriette
Skou Dybeck Happe Clerc Engelstoft Hallberg Thygesen
Chief Executive Officer Chief Financial Officer Chief Executive Officer Chief Executive Officer Chief Executive Officer
(CEO) of (CFO) (CEO), Ocean & Logistics (CEO), APM Terminals (CEO), Fleet & Strategic
A.P. Møller - Mærsk A/S Brands
Gender: Male Gender: Female Gender: Male Gender: Male Gender: Female
Joined the Joined the Joined the Joined the Joined the
Executive Board: 2007 Executive Board: 2019 Executive Board: 2017 Executive Board: 2017 Executive Board: 2020
Søren Skou has been CEO of A.P. Møller - Mærsk A/S Carolina Dybeck Happe joined A.P. Møller - Mærsk A/S Vincent Clerc was appointed CEO of Ocean & Logistics Morten H. Engelstoft has been with Henriette Hallberg Thygesen has been with
since June 2016. as CFO in January 2019. in December 2019. A.P. Møller - Mærsk A/S since 1986. He has had A.P. Møller - Mærsk A/S since 1994.
a long tenure with Maersk and other brands,
Søren Skou joined Maersk in 1983. Over the next Previously, she was CFO and Executive Vice-President Vincent Clerc has worked for Maersk since 1997 including postings in the USA, Vietnam, Taiwan, Henriette Hallberg Thygesen has held various
15 years, he held various positions in Maersk with at ASSA ABLOY, the global leader in door opening and has held various roles in North America and Singapore and Italy. positions in Spain, China, Hong Kong, the USA and
roles in Copenhagen, New York and Beijing. In 1998 solutions. Prior to this role, she held various finance Copenhagen. In December 2015, Vincent Clerc was Copenhagen for Maersk Tankers, Maersk Oil,
he joined Maersk Tankers, where he was CEO from leadership positions in multiple countries in ASSA appointed Chief Commercial Officer in Maersk Line. Morten H. Engelstoft was appointed CEO of APM Maersk Logistics/Damco and as CEO of Svitzer A/S.
2001 to 2011. ABLOY and served as Chief Financial Officer of Terminals in 2016 where he is responsible for the
Trelleborg AB. Other management duties, etc. strategy towards increased operational excellence Other management duties, etc.
Other management duties, etc. • None and improved customer service. • Cowi Holding A/S
• MITHEL Invest ApS Other management duties, etc.
• International Council of Containership • E-ON SE Education Other management duties, etc. Education
Operators (ICCO) • Bachelor in Political Science, Lausanne, • Global Ports Investments (Chairman) • Maersk International Shipping Education
• Member of European Round Table of Education Switzerland TT Club Mutual Insurance Ltd. (M.I.S.E.)
Industrialists • Master of Science in Business and Economics, • MBA from Columbia Business School, New York, • Master of Science (cand.merc.mat.)
• Nokia Corporation Uppsala, Sweden, 1996 and London Business School Education from Copenhagen Business School
• IMD Business School • Executive MBA, IMD, Lausanne, Switzerland • PhD in Applied Mathematics from
Education • Maersk International Shipping Education Copenhagen Business School
• MBA (honours), IMD, Switzerland (M.I.S.E.) • Executive MBA from Columbia University,
• Business Administration, Copenhagen New York, and London Business School
Business School
• Maersk International Shipping Education
(M.I.S.E.)
2019 Directors’ report Governance Remuneration
Remuneration
The Remuneration Policy and Incentive Guidelines Members of the Board of Directors serving on
applicable to members of our Executive Board the Board committees or performing ad hoc work
and Board of Directors for 2019 were approved by beyond the normal responsibilities receive an
shareholders at the Annual General Meeting (AGM) additional fee.
in 2018. A new Remuneration Policy, prepared in
As A.P. Moller - Maersk progresses towards its vision of becoming accordance with the Danish Companies Act, will be Executive Board
the global integrator of container logistics, remuneration continues presented for approval at the AGM 2020. The remuneration of Executive Board consists of a
to be one of the key enablers in supporting the attraction, motivation fixed base salary which is inclusive of pension and
The following sections provide an overview of company car, short-term incentive as well as long-
and retention of high-calibre talent.
the components of Board of Directors and Exec- term incentive components.
utive Board remuneration, as well as the total
remuneration awarded to the members for 2019. The remuneration structure is intended to drive a
“pay for performance“ culture by aligning individ-
Board of Directors ual reward to company performance and share-
The Board of Directors receives a fixed annual holder value creation. Individual remuneration
fee which is differentiated based on the role: level is set and reviewed based on peer compa-
• The Chairman receives a fixed amount nies of similar size and complexity, to ensure they
• Ordinary Board members receive a fixed remain comparable and fit to the business.
amount and the Vice Chairman receives
The Remuneration Policy supports the business fixed multiples thereof. The Executive Board members have service con-
needs by enabling an appropriate total remuner- tracts containing company notice period which is
ation package that has a clear link to business in line with market practice for peer companies in
strategy and aligns with shareholder interests. 2015–2019 Remuneration Europe. In the event of termination by the com-
The objectives of the Remuneration Policy are to: Remuneration awarded (USD m) 2019 2018 2017 2016 2015
pany, the notice period can be up to and no more
• Ensure appropriate total remuneration: The than 24 months.
Board of Directors
remuneration design and decisions are guided
by market practice in Europe, reflected in the Fixed annual fee 3 3 3 3 3 Total remuneration 2019
remuneration components offered, and the The table below shows the 2015–2019 financial
Total 3 3 3 3 3
total remuneration value provided. impact of remuneration awarded to the members
• Link to business strategy: The Remuneration of Board of Directors and Executive Board in aggre-
Executive Board
Policy supports the business plan and the need gate, as set out in note 2 to the consolidated
for executive leaders to focus on delivering an Fixed base salary 10 10 8 13 15 financial statements.
on-going progress to achieve the company’s
Short-term cash incentive 5 5 2 2 3
strategic goals, reflected in a combination of Further information regarding the share-based
short and long-term incentive components. Long-term share-based incentives 1 1 1 -2 - payments is detailed in note 11 of the consol-
• Align with shareholder interest: The Remuner- Remuneration in connection with redundancy, idated financial statements, and the detailed
ation Policy is designed to support the delivery resignations and release from duty to work 6 4 - 22 - Remuneration Report of 2019 is available on the
of strong financial and operational results Lump sum retirement payment - - - -1 1 company’s website on: https://investor.maersk.
over time, which will ultimately grow share- com/remuneration
Total 22 20 11 34 19
holder value.
2019 Directors’ report Governance Shareholder information
Shareholder information
Share price development Share capital
The Maersk B-share price increased by 34% to Maersk shares are listed on Nasdaq Copenhagen
DKK 9,608 from its closing price at the end of 2018 and are divided into two classes: A shares with vot-
of DKK 7,163, adjusted for the value of Maersk ing rights and B shares without voting rights. Each
Drilling. By comparison, the benchmark indices DKK 1,000 A share entitles the holder to two votes.
The share price increased by 34% over the year, implying a total MSCI World Transportation and OMXC25 increased
shareholder return of 36% for 2019. The Board of Directors in by 22% and 26%, respectively. The Maersk B-share The A.P. Møller - Mærsk A/S share capital amounts
A.P. Møller - Mærsk A/S proposes an ordinary dividend of price reached its highest price of DKK 10,310 on to nominally DKK 20,816,862,000, divided between
12 December 2019, and its lowest price of DKK 10,756,378 A shares of nominally DKK 1,000 and
DKK 150 per share corresponding to a dividend yield of 1.6%.
6,900 on 15 August 2019. The total market value 10,060,484 B shares of nominally DKK 1,000.
of A.P. Møller - Mærsk A/S was USD 28bn at the
end of 2019. The positive development of the Ownership
share price was mainly led by an easing of trade The total number of registered shareholders
tensions between the USA and China and negoti- decreased to around 73,000 during 2019. Share-
ations around a potential trade deal coupled with holders with more than 5% of the share capital or
improved financial performance over the year, votes held 52% of the share capital, while the 20
leading to an earnings upgrade in October 2019. largest institutional shareholders together owned
around 16% of the total share capital and 36%
adjusted for the free-float. Danish retail investors
have decreased their ownership from 16% to 11%
of the total share capital since the end of 2018.
Own shares
A.P. Moller - Maersk holding of own shares com-
Share price development prised 3.47% of the share capital at the end of 2019,
cf. note 11 in the consolidated financial statements.
DKK OMXC25
Maersk B
11,000 MSCI World Transportation Dividend
MSCI The dividend policy is an annual pay-out ratio of
10,000 Source: Bloomberg; data
30-50% of the underlying result to be implemented
are rebased from the OMX
from the financial year 2019.
Maersk B share price at
9,000 Maersk B
the end of December 2019.
In the medium-term and during the strategic
8,000
phase of balancing the company between Ocean
and non-Ocean, the annual pay-out ratio should
7,000
be expected at the low to mid-point of the range.
6,000
Distribution to shareholders will take place
through dividends potentially combined with
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec share buy-backs, and the annual pay-out ratio
and distribution will be decided from an evaluation Capital structure Funding strategy
of the outlook, cash flow, capital expenditures for The capital structure ensures that Maersk’s focus is on long-term debt in order to
Financial calendar
organic CAPEX and M&A transactions and invest- A.P. Møller - Mærsk A/S at all time has sufficient minimise the on-going refinancing risk and secure
23 March ment grade rating. financial flexibility to meet the strategic and a solid capital structure over the business cycle.
Annual General Meeting growth objectives and to maximise the return to Similarly, the aim is to avoid high concentrations
The Board of Directors proposes an ordinary divi- our shareholders. of debt maturing within the same year. We aim at
13 May
dend to the shareholders of DKK 150 per share of having a diversified debt portfolio, based on fund-
Interim Report Q1 2020
DKK 1,000 (DKK 150 per share of DKK 1,000). Of In terms of capital allocation, a strict CAPEX ing from debt capital markets, commercial bank
19 August the total proposed ordinary dividend, the DKK 75 discipline is applied with an accumulated CAPEX debt, export credit agencies and ship financing
Interim Report Q2 2020 per share relates to Maersk’s dividend policy of guidance for 2020-2021 of USD 3.0-4.0bn. institutions and from multilateral agencies.
distributing between 30-40% of the underlying
18 November
net result to shareholders in dividend, while the Driving our long-term value creative strategy, we The target is to have an average maturity of the
Interim Report Q3 2020
remaining DKK 75 per share relates to the commit- apply the following principles for capital allocation: debt portfolio, excluding the impact of leases,
ment of distributing a material part of the value of • We invest in maintenance and replacement in of at least five years, and that the total amount
the proceeds from the initially received Total S.A. the Ocean and non-Ocean segments. of debt maturities within a calendar year should
shares, supported by the strong free cash flow • We invest in growing our non-Ocean segment, not exceed USD 3bn, within the next three calen-
generation in 2019. both organically and inorganically. dar years.
• We are committed to maintaining our invest-
The proposed dividend payment represents an ment grade rating. Share buy-back
ordinary dividend yield of 1.6% (1.8%), based on • We target a dividend pay-out between 30-50% The Board of Directors decided to initiate a share
the Maersk B share’s closing price of DKK 9,608 of underlying net profit and aim at distributing buy-back programme of up to DKK 10bn (around
as of 30 December 2019. Payment is expected excess cash to shareholders primarily via share USD 1.5bn) and a maximum of 3.12 million shares
to take place on 26 March 2020. buy-backs if the outlook permits. to be acquired over a period of up to 15 months.
The first phase ran from 4 June to 25 Septem-
ber 2019 with total market value of the shares
acquired of DKK 3.3bn.
The Maersk share
Key figures 2019 2018 2017 2016 2015 1 For 2015-2018 data The second phase runs from 26 September until
has not been adjusted 28 February 2020. The shares to be acquired will be
Year-end share price (DKK, B share) ¹ 9,608 8,184 10,840 11,270 8,975 for the demerger of limited to a total market value of DKK 3.3bn. Prior
Maersk Drilling to the second phase of the share buy-back pro-
Share price range (DKK, B share) ¹ 3,410 4,005 3,990 4,140 7,605 2 Ordinary dividend
gramme, Maersk held 88,072 A shares and 403,134
in proposed year
Market capitalisation at year-end (USD bn, A and B share) ¹ 28.0 25.3 35.4 32.2 27.6
3 Actual payments B shares, equal to 2.36% of the share capital.
on a cash basis
Earnings per share (USD) -4 152 -58 -93 37
By the end of 2019, a total of 134,279 A shares and
Dividend per share (DKK, A and B share) ² 150 150 150 150 300 587,949 B shares were owned by the company,
corresponding to 3.47% of the share capital.
Dividend yield (B share) 1.6% 1.8% 1.4% 1.3% 3.3%
Share buy-back programme (DKK bn) ³ 5.3 - - 3.2 5.2

The purpose of the programme is to adjust the A.P. Møller Holding A/S has committed to
capital structure of the company and to meet obli- participate in the share buy-back programme
gations under long-term incentive programmes. by selling shares relative to its voting rights and
relative to its total ownership in the company.
No shares may be bought back at a price exceed- A.P. Møller Holding A/S intends to maintain its
ing the higher of i) share price of latest independ- ownership of 51.45% of A shares and 41.51%
ent trade and ii) the highest current independent of the total share capital in the company.
offer price on the trading venue where the pur-
chase is carried out. The company is entitled to suspend or stop the
programme at any time subject to an announce-
The maximum number of A and B shares that may ment to Nasdaq Copenhagen.
be purchased on each trading day may not exceed
20% of the average daily trading volume of A and Annual General Meeting
B shares, respectively, on Nasdaq Copenhagen or The Annual General Meeting will be held on
other regulated markets, on which the purchase is 23 March 2020 in Copenhagen, Denmark.
carried out, over the last 20 trading days prior to
the date of purchase. Investor Relations
To keep investors and analysts updated on the
A and B shares will be acquired in a 20/80 split, company’s strategic development, market outlook
reflecting the current trading volumes of the and financial performance, A.P. Moller - Maersk
two share classes. arranges road shows and participates in inves-
tor and industry conferences. Investor Relations,
The company will fulfil its reporting obligations besides meeting domestic investors, also travels
Jim Hagemann Snabe, Chairman of the Board
by announcing no later than every 7th trading day extensively to ensure that international investors of Directors, addressing shareholders at the
the purchases made under the share buy-back are kept updated on the latest developments. 2019 Annual General Meeting in Copenhagen.
programme.
In 2019, the Executive Board and the Investor

Relations team had more than 350 meetings with
the participation of more than 750 investors and
Shareholders with more than 5% of share capital or votes analysts across Europe, Asia and North America.
Shareholders according to section 55 of the Danish Companies Act are

A.P. Moller - Maersk is covered by around 30 sell-
Share capital Votes
side analysts, predominantly from international
A.P. Møller Holding A/S, Copenhagen, Denmark 40.17% 50.81% investment banks, who regularly publish research
reports and sector reports. A list of the analysts
A.P. Møller og Hustru Chastine Mc-Kinney Møllers Familiefond, Copenhagen, Denmark 8.84% 13.12% and other relevant information, including financial
reports, investor presentations, share and bond infor-
Den A.P. Møllerske Støttefond, Copenhagen, Denmark 3.11% 5.99%
mation, is available at https://investor.maersk.com.
2019 Financials
Financials
2019
Consolidated financial statements 2019
Parent company financial statements 2019
Statement of the Board of Directors and the Executive Board
Independent Auditor’s Report

2019 Financials Consolidated financial statements
Consolidated
Financial statements 2019
A.P. Moller - Maersk
(In parenthesis, the corresponding figures for 2018)
Consolidated income statement
Consolidated statement of comprehensive income
Consolidated balance sheet at 31 December

31 December
Consolidated cash flow statement
Consolidated statement of changes in equity
Notes to the consolidated financial statements

2019 Financials Consolidated financial statements Notes index Amounts in USD million
Consolidated income statement Consolidated statement of comprehensive income

Note 2019 2018 Note 2019 2018
1 Revenue 38,890 39,280 Profit/loss for the year -44 3,209

2 Operating costs 33,130 35,626
Other income 623 337 Translation from functional currency to presentation currency:
Other costs 671 182 Translation impact arising during the year -81 -345
1 Profit before depreciation, amortisation and impairment losses, etc. (EBITDA) 5,712 3,809 Reclassified to income statement, gain on sale of non-current assets, etc., net 6 -
6-8 Depreciation, amortisation and impairment losses, net 4,287 3,737
3 Gain on sale of non-current assets, etc., net 71 148 16 Cash flow hedges:
Share of profit/loss in joint ventures 93 116 Value adjustment of hedges for the year -141 -149
Share of profit/loss in associated companies 136 -115 Reclassified to income statement
Profit/loss before financial items (EBIT) 1,725 221 – revenue 5 -2
4 Financial income 511 1,025 – operating costs 78 -2
4 Financial expenses 1,269 1,426 – financial expenses 32 31
Profit/loss before tax 967 -180 – discontinued operations 1 -7
5 Tax 458 398 Reclassified to non-current assets 2 -6
Profit/loss for the period – continuing operations 509 -578
10 Profit/loss for the period – discontinued operations -553 3,787 5 Tax on other comprehensive income 16 8
Profit/loss for the period -44 3,209
Share of other comprehensive income of joint ventures and associated companies,
Of which: net of tax -1 2
Non-controlling interests 40 52 Total items that have been or may be reclassified subsequently to the income
statement -83 -470
A.P. Møller - Mærsk A/S’ share -84 3,157
17 Other equity investments (FVOCI), fair value adjustments for the year 165 -134
11 Earnings per share – continuing operations, USD 23 -30
14 Actuarial gains/losses on defined benefit plans, etc. 91 -7
11 Diluted earnings per share – continuing operations, USD 23 -30
5 Tax on other comprehensive income 10 -38
Total items that will not be reclassified to the income statement 266 -179
11 Earnings per share, USD -4 152
11 Diluted earnings per share, USD -4 152
Other comprehensive income, net of tax 183 -649
Total comprehensive income for the year 139 2,560

Maersk Oil and Maersk Drilling are classified as discontinued operations, and the businesses are presented
separately on an aggregated level in the income statement, balance sheet and cash flow statements up until
Of which:
separation.
Non-controlling interests 29 38
A.P. Møller - Mærsk A/S’ share 110 2,522
In 2019 Maersk Supply Service ceased to be classified as discontinued operation. In accordance with IFRS, the
income statement, balance sheet, and cash flow statement have been restated in previous periods.
Consolidated balance sheet at 31 December

Note Assets Note Equity and liabilities
2019 2018 2019 2018
6 Intangible assets 4,219 4,278 11 Share capital 3,774 3,774

7 Property, plant and equipment 27,516 31,107 Reserves 24,324 28,835
8 Right-of-use assets 8,460 - Equity attributable to A.P. Møller - Mærsk A/S 28,098 32,609
Non-controlling interests 739 771
Investments in joint ventures 1,204 1,333 Total equity 28,837 33,380
Investments in associated companies 937 754
Other equity investments 78 44 13 Lease liabilities, non-current 7,295 1,858
16 Derivatives 161 134 13 Borrowings, non-current 7,455 8,036
14 Pensions, net assets 409 285
Loan receivables 160 171 14 Pensions and similar obligations 272 259
Other receivables 318 273 15 Provisions 636 728
Financial non-current assets, etc. 3,267 2,994 16 Derivatives 328 242
9 Deferred tax 362 372
9 Deferred tax 237 267 Tax payables 335 307
Total non-current assets 43,699 38,646 Other payables 44 41
Other non-current liabilities 1,977 1,949
Inventories 1,430 1,073 Total non-current liabilities 16,727 11,843
18 Trade receivables 3,531 3,815 13 Lease liabilities, current 1,282 408

Tax receivables 161 159 13 Borrowings, current 721 1,586
16 Derivatives 43 81
Loan receivables 239 199 15 Provisions 458 508
1 Other receivables 857 879 Trade payables 5,567 5,281
Prepayments 520 554 Tax payables 307 427
Receivables, etc. 5,351 5,687 16 Derivatives 87 121
Other payables 1,170 938
Equity investments, etc. 2 2,448 Deferred income 168 181
Cash and bank balances 4,768 2,863 Other current liabilities 7,757 7,456
10 Assets held for sale or distribution 149 5,905 10 Liabilities associated with assets held for sale or distribution 75 1,949
Total current assets 11,700 17,976 Total current liabilities 9,835 11,399
Total assets 55,399 56,622 Total liabilities 26,562 23,242
Total equity and liabilities 55,399 56,622
Consolidated cash flow statement

Note 2019 2018 Cash and bank balances include USD 0.9bn (USD 1.0bn) 1 In 2019, A.P. Moller - Maersk sold 46.27 million (51.25
relating to cash and bank balances in countries with million) Total S.A. shares, generating a cash flow of
Profit/loss before financial items 1,725 221 exchange control or other restrictions. These funds are USD 2.6bn (USD 3.0bn).
6-8 Depreciation, amortisation and impairment losses, net 4,287 3,737
not readily available for general use by the parent com-
3 Gain on sale of non-current assets, etc., net -71 -148
pany or other subsidiaries.
Share of profit/loss in joint ventures -93 -116
Share of profit/loss in associated companies -136 115
21 Change in working capital 476 -339
Change in provisions and pension obligations, etc. 70 39
21 Other non-cash items 162 100
Cash flow from operating activities before tax 6,420 3,609
Taxes paid -501 -381
Cash flow from operating activities 5,919 3,228
21 Purchase of intangible assets and property, plant and equipment -2,035 -3,219
Sale of intangible assets and property, plant and equipment 186 432
22 Acquisition of subsidiaries and activities -44 33
22 Sale of subsidiaries and activities -40 -77
Sale of associated companies 46 11
Dividends received 297 439
Sale of other equity investments¹ 2,617 3,033
Other financial investments, net -152 -6
Purchase/sale of securities, trading portfolio -1 -
Cash flow used for investing activities 874 646
Repayment of borrowings -2,533 -7,148
Repayment of lease liabilities -1,291 -629
Proceeds from borrowings 1,077 2,126
Purchase of own shares -791 -
Financial income received 91 59
Financial expenses paid -350 -493
8 Financial expenses paid on lease liabilities -477 -143
Dividends distributed -469 -517
Dividends distributed to non-controlling interests -70 -75
Sale of non-controlling interests - 23
Acquisition of non-controlling interests -1 -60
Other equity transactions 14 -8
Cash flow from financing activities -4,800 -6,865
Net cash flow from continuing operations 1,993 -2,991
10 Net cash flow from discontinued operations -372 3,967
Net cash flow for the period 1,621 976
Cash and cash equivalents 1 January 3,149 2,268
Currency translation effect on cash and cash equivalents -12 -95
Cash and cash equivalents 31 December 4,758 3,149
Of which classified as assets held for sale - -372
Cash and cash equivalents

Cash and bank balances 4,768 2,863
Overdrafts 10 86
Consolidated statement of changes in equity

A.P. Møller - Mærsk A/S 1 To reduce the net interest-bearing debt,
A.P. Moller - Maersk sold the remaining 46.27 million
Note Share capital Translation Reserve for Reserve Retained Total Non- Total equity
Total S.A. shares during Q1 2019, generating a cash flow
reserve other equity for hedges earnings controlling
investments interests of USD 2.6bn and thereby completing the sale of Total
S.A shares. The accumulated loss, net of tax, of USD
Equity 1 January 2018 3,774 -286 26 26 27,069 30,609 816 31,425 18m has been transferred within equity.
2 Up until 31 December 2019, a total of 134,279 A shares
Other comprehensive income, net of tax - -330 -171 -129 -5 -635 -14 -649 and 537,143 B shares have been repurchased with a
Profit/loss for the period - - - - 3,157 3,157 52 3,209 value of USD 791m as part of the share buy-back pro-
Total comprehensive income for the period - -330 -171 -129 3,152 2,522 38 2,560 gramme initiated on 4 June 2019. At 31 December 2019,
A.P. Moller - Maersk owns a total of 134,279 A shares
Dividends to shareholders - - - - -517 -517 -75 -592 and 587,949 B shares as treasury shares, corresponding
12 Value of share-based payment - - - - 14 14 - 14 to 3.47% of the share capital.
Acquisition of non-controlling interests - - - - -31 -31 -29 -60 3 Reference is made to note 2 for further information.
Sale of non-controlling interests - - - - 14 14 9 23
11 Capital increases and decreases - - - - - - 12 12
17 Transfer of gain/loss on disposal of equity
investments to retained earnings¹ - - -57 - 57 - - -
Other equity movements - - - - -2 -2 - -2
Total transactions with shareholders - - -57 - -465 -522 -83 -605
Equity 31 December 2018 3,774 -616 -202 -103 29,756 32,609 771 33,380
2019
Other comprehensive income, net of tax - -76 180 6 84 194 -11 183
Profit/loss for the period - - - - -84 -84 40 -44
Total comprehensive income for the period - -76 180 6 - 110 29 139
Dividends to shareholders - - - - -469 -469 -73 -542

12 Value of share-based payment - - - - 10 10 - 10
Purchase of own shares² - - - - -791 -791 - -791
11 Capital increases and decreases - - - - - - 12 12
17 Transfer of gain/loss on disposal of equity
investments to retained earnings¹ - - 18 - -18 - - -
Distribution of shares in The Drilling
Company of 1972 A/S to shareholders in
A.P. Møller - Mærsk A/S -3,371³ -3,371 -3,371
Total transactions with shareholders - - 18 - -4,639 -4,621 -61 -4,682
Equity 31 December 2019 3,774 -692 -4 -97 25,117 28,098 739 28,837
2019 Financials Consolidated financial statements
Notes Note 1
73 Segment information
73 Segment
Note 11
87 Share capital and earnings per share
87
Note 21
105 Cash flow specifications
105
Note 2 Note 12 Note 22

76 Operating costs
76 Operating 88 Share-based payment
88 Share-based 105 Acquisition/sale of subsidiaries
105
and activities
Note 3 Note 13
77 Gain on sale of non-current assets,
77 90 Borrowings and lease liability
90
Note 23
etc., net reconciliation 106 Related parties
106 Related

77 Financial income and expenses
77 92 Pensions and similar obligations
92 107 Significant accounting policies
107

78 Tax
78 Tax 95 Provisions
95 Provisions 112 Significant accounting estimates
112
and judgements
Note 6 Note 16
79 Intangible assets
79 Intangible 96 Derivatives
96 Derivatives
Note 7 Note 17
81 Property, plant and equipment
81 98 Financial instruments by category
98
Note 8 Note 18
83 Right-of-use assets
83 100 Financial risks, etc.
100
Note 9 Note 19
84 Deferred tax
84 Deferred 103 Commitments – continuing operations
103
Note 10 Note 20
85 Discontinued operations and assets
85 104 Contingent liabilities
104 Contingent
held for sale
Note 1 Segment information

Table 1.1 Ocean Logistics Terminals Manufacturing Total Table 1.1 and Table 1.2
& Services & Towage & Others A.P. Moller - Maersk has organised segments in ‘Ocean’,
‘Logistics & Services’, ‘Terminals & Towage’ and ‘Manu-
Full year 2019
facturing & Others’.
External revenue 28,036 5,768 3,108 1,943 38,855
Inter-segment revenue 382 197 786 229 1,594
The Ocean segment with the activities of Maersk Liner
Total segment revenue 28,418 5,965 3,894 2,172 40,449
Business (Maersk Line, Safmarine and Sealand – A Maersk
Unallocated and eliminations -1,559
Company) together with the Hamburg Süd brands (Ham-
Total revenue - - - - 38,890
burg Süd and Aliança) as well as strategic transhipment
hubs under the APM Terminals brand. Inland activities
Segment profit/loss before depreciation, amortisation and impairment losses, etc. (EBITDA) 4,356 238 1,107 205 5,906
related to Maersk Liner Business are included in the
Unallocated items -195
Logistics & Services segment.
Eliminations 1
Consolidated profit/loss before depreciation, amortisation and impairment losses, etc. (EBITDA)¹ 5,712
The Logistics & Services segment with the logistics and
supply chain management services, container inland ser-
Segment gross capital expenditures, excl. acquisitions and divestments (CAPEX) 1,172 128 530 204 2,034
vices, inland haulage activities (intermodal), trade finance
Eliminations 1
Consolidated gross capital expenditures, excl. acquisitions and divestments (CAPEX) 2,035 services and freight forwarding.
The Terminals & Towage segment including gateway ter-

minals, involving landside activities such as port activities
where the customers are mainly the carriers, and towage
Table 1.2 Ocean Logistics Terminals Manufacturing Total services under the Svitzer brand.
& Services & Towage & Others
Full year 2018 The Manufacturing & Others segment with Maersk
External revenue 27,990 5,891 2,983 2,361 39,225 Container Industry and others. Due to the reassessment
Inter-segment revenue 376 191 789 426 1,782 in 2019, Maersk Supply Service was classified as continu-
Total segment revenue 28,366 6,082 3,772 2,787 41,007 ing operations and consequently 2018 figures have been
Unallocated and eliminations -1,750 restated.
IFRS 16 impact 23
Total revenue - - - - 39,280 The segment disclosures reflect the information which
the Executive Board receives monthly in its capacity as
Segment profit/loss before depreciation, amortisation and impairment losses, etc. (EBITDA)1 3,782 191 998 163 5,134 ‘chief operating decision maker’ as defined in IFRS 8. Fol-
Unallocated items -138 lowing the implementation of IFRS 16 Leases, the Execu-
Eliminations 2 tive Board reviews comparable 2018 proforma numbers
IFRS 16 impact -1,189 as if IFRS 16 was implemented in 2018. The allocation of
Consolidated profit/loss before depreciation, amortisation and impairment losses, etc. (EBITDA) 3,809 resources and the segment performance are evaluated
based on revenue and profitability measured on earnings
Segment gross capital expenditures, excl. acquisitions and divestments (CAPEX) 2,279 47 556 358 3,240 before interest, taxes, depreciation and amortisation
Eliminations -21 (EBITDA).
Consolidated gross capital expenditures, excl. acquisitions and divestments (CAPEX) 3,219
1 Reference is made to the income statement for a rec-
onciliation from EBITDA to profit/loss.
Note 1 Segment information – continued

Table 1.3 Table 1.3 Table 1.5
USD million Types of revenue 2019 2018 1 Revenue eliminations between terminal services and Accrued income included in trade receivables in the
towage services are included under Unallocated activi- balance sheet constitutes contract assets comprising
Ocean Freight revenue 24,871 24,925 ties and eliminations. unbilled amounts to customers representing the group’s
Other revenue, including hubs 3,547 3,441 right to consideration for the services transferred to date.
Logistics & Services Supply chain management revenue 861 867 Any amount previously recognised as accrued income is
Inland services revenue 576 595 reclassified to trade receivables at the time it is invoiced
Intermodal revenue 2,527 2,569 to the customer.
Sea freight revenue 546 646
Air freight revenue 485 608 Under the payment terms generally applicable to the
Other services revenue 970 797 group’s revenue generating activities, prepayments are
Terminals & Towage Terminal services 3,223 3,095 received only to a limited extent. Typically, payment is
Towage services 695 692 due upon or after completion of the services.
Manufacturing & Others Sale of containers and spare parts 586 978
Offshore supply services 305 263 Part of the deferred income presented in the balance
Other shipping activities 404 719 sheet constitutes contract liabilities which represent
Other services 877 827 advance payments and billings in excess of revenue
Unallocated activities and eliminations¹ -1,583 -1,765 recognised.
IFRS 16 impact 23
Total revenue 38,890 39,280 There were no significant changes in accrued income
and deferred income during the reporting period.
Impairment losses disclosed in note 18 relate to receiva-

Set out below is the reconciliation of the revenue from contracts with customers to the amounts disclosed bles arising from contracts with customers.
as total revenue:
Table 1.4 2019 2018
Revenue from contracts with customers 37,641 38,178
Revenue from other sources

Vessel-sharing and slot charter income 1,188 1,031
Lease income 21 51
Others 40 20
Total revenue 38,890 39,280
Table 1.5
Contract balances 2019 2018
Trade receivables 3,248 3,576

Accrued income – contract asset 48 49
Deferred income – contract liability 59 70
Note 1 Segment information – continued

Table 1.6 External revenue Tax paid Non-current assets ¹ Table 1.6 1 Comprise intangible assets and property, plant and
Geographical split 2019 2018 2019 2018 2019 2018 Geographical information equipment relating to continuing operations.
Revenue for the shipping activities is based on the desti-
Denmark 310 410 156 -68 19,375 18,088 nation for ships operated by the group and on customer
Australia 1,241 1,395 10 7 321 284 location for ships on time charter. For non-current assets
Brazil 1,606 1,575 -9 32 339 343 (e.g. terminals), which cannot be easily moved, geograph-
China and Hong Kong 2,056 2,230 19 12 2,593 2,758 ical location is where the assets are located. For all other
France 267 278 -4 72 18 3 assets, geographical location is based on the legal owner-
Germany 1,204 1,311 -2 1 475 687 ship. These assets consist mainly of ships and containers
Netherlands 1,102 1,163 12 7 818 731 registered in China, Denmark, Singapore and the USA.
Nigeria 895 682 40 38 111 77
Singapore 445 463 2 3 4,950 4,504
UK 1,391 1,484 - 2 579 494
USA 6,731 6,741 20 11 2,519 1,169
Other 21,642 21,548 259 265 8,097 6,247
Total 38,890 39,280 503 382 40,195 35,385
Note 2 Operating costs

Table 2.1 2019 2018 Table 2.1 Table 2.3
Customary agreements have been entered into with Fees for other services than statutory audit of the
Costs of goods sold 998 1,182
employees regarding compensation in connection with financial statements provided by Pricewaterhouse-
Bunker costs 4,628 5,231
resignation with consideration for local legislation and Coopers Statsautoriseret Revisionspartnerselskab to
Terminal costs 6,775 7,070
collective agreements. A.P. Moller - Maersk mainly consist of audit of non-
Intermodal costs 4,151 4,158
statutory financial statements, financial due diligence
Port costs 2,265 2,392
For information about share-based payment, reference and transaction advice, accounting advisory services,
Rent and lease costs 1,502 2,985
is made to note 12. tax advice and other services related to separating dis-
Staff costs 4,955 4,919
continued operations, review of the half-year interim
Other 7,856 7,689
1 Total number of employees (YTD average) is 86,279 report and other advisory accounting and tax services.
Total operating costs 33,130 35,626
(85,689) of which 83,512 (82,806) relate to continuing
operations and 2,767 (2,883) relate to discontinued
Remuneration of employees
operations.
Wages and salaries 4,218 4,208
Severance payments 118 70
Table 2.2
Pension costs, defined benefit plans 31 33
The contract of employment for the Executive Board
Pension costs, defined contribution plans 273 271
contains terms customary in Danish listed companies,
Other social security costs 411 391
including termination notice and competition clauses.
Total remuneration 5,051 4,973
In connection with a possible takeover offer, neither the
Executive Board nor the Board of Directors will receive
Of which:
special remuneration. Fees and remuneration do not
Recognised in the cost of assets 4 7
include pension.
Included in restructuring costs and other 92 47
Expensed as staff costs 4,955 4,919
The Board of Directors has received fees of USD 3m
(USD 3m).
Average number of employees¹ 83,512 82,806
Table 2.2
Fees and remuneration to the Executive Board 2019 2018
Fixed base salary 10 10

Short-term cash incentive 5 5
Long-term share-based incentives 1 1
Remuneration in connection with redundancy, resignations and release from duty to work 6 4
Total remuneration to the Executive Board 22 20
Table 2.3
Fees to the statutory auditors 2019 2018
Statutory audit 13 13
Other assurance services 1 1
Tax and VAT advisory services 1 1
Other services 2 2
Total fees 17 17
Note 3 Gain on sale of non-current assets, etc., net

Table 3.1 2019 2018 Table 3.1 Gains in 2018 were primarily related to the disposal of an
Gains in 2019 were primarily related to sale of containers associated company, Inttra Inc., of USD 49m, to the sale
Gains 128 237
of USD 81m and sale and leaseback of S type vessels and and leaseback of three Cap San vessels of USD 38m and
Losses 57 89
Mitsubishi vessels of USD 12m. from container sales of USD 17m.
Gain on sale of non-current assets, etc., net 71 148
Note 4 Financial income and expenses

Table 4.1 2019 2018 Table 4.1 1 Of which USD 477m (143m) relates to interest expenses
For an analysis of gains and losses from derivatives, on lease liabilities.
Interest expenses on liabilities¹ 971 809
reference is made to note 16. 2 The capitalisation rate used to determine the amount
Of which borrowing costs capitalised on assets² 23 62
of borrowing costs eligible for capitalisation is 5.2%
Interest income on loans and receivables 91 70
(4.3%).
Fair value adjustment transferred from equity hedge reserve (loss) 28 53
3 Of which USD 1m (USD 139m) pertains to shares held at
Unwind of discount on provisions - 1
the end of the year and USD 12m (USD 100m) to shares
Net interest expenses 885 731
sold during the year.
4 Of which USD 12m relates to a loss on the prepayment
Exchange rate gains on bank balances, borrowings and working capital 299 596
of issued bonds.
Exchange rate losses on bank balances, borrowings and working capital 250 545
Net foreign exchange gains/losses 49 51
Fair value gains from derivatives 98 79

Fair value losses from derivatives 41 62
Net fair value gains/losses 57 17
Dividends received from securities³ 13 239

Impairment losses on financial non-current receivables 2 3
Reversal of write-downs of loans and other non-current receivables 10 26
Financial expenses, net⁴ 758 401
Of which:
Financial income 511 1,025
Financial expenses 1,269 1,426
Note 5 Tax
Table 5.1 2019 2018
Tax recognised in the income statement

Current tax on profits for the year 369 468
Adjustment for current tax of prior periods 5 -97
Utilisation of previously unrecognised deferred tax assets -6 -6
Total current tax 368 365
Origination and reversal of temporary differences -15 -81

Adjustment for deferred tax of prior periods 3 -26
Adjustment attributable to changes in tax rates and laws -3 1
Recognition of previously unrecognised deferred tax assets -4 -7
Reassessment of recoverability of deferred tax assets, net 28 50
Total deferred tax 9 -63
Total income tax 377 302
Tonnage and freight tax 81 96
Total tax expense 458 398
Tax reconciliation
Profit/loss before tax 967 -180
Profit/loss subject to Danish and foreign tonnage taxation, etc. -439 342
Internal gain/loss on sale of assets - -1
Share of profit/loss in joint ventures -93 -116
Share of profit/loss in associated companies -136 115
Profit/loss before tax, adjusted 299 160
Tax using the Danish corporation tax rate (22%) 65 35

Tax rate deviations in foreign jurisdictions -44 12
Non-taxable income -74 -54
Non-deductible expenses 246 255
Adjustment to previous years’ taxes 8 -123
Effect of changed tax rate -3 1
Change in recoverability of deferred tax assets 18 37
Deferred tax asset not recognised 126 125
Other differences, net 35 14
Tax recognised in other comprehensive income and equity -26 30
Of which:
Current tax -32 31
Deferred tax 6 -1
Note 6 Intangible assets

Table 6.1 Goodwill Terminal and service Customer relations Other rights Total Table 6.1
concession rights and brand name 1 Acquisition of Vandegrift.
2 Of which USD 95m (USD 826m) is under development.
Cost
USD 31m (USD 34m) is related to terminal rights with
1 January 2018 1,150 2,910 1,142 551 5,753
indefinite useful life in Poti Sea Port Corp. The im-
Addition - 181 - 31 212
pairment test is based on the estimated fair value
Acquired in business combinations -72 - - - -72
according to business plans. An average discount rate
Disposal - - - 4 4
of 11.70% (8.97%) p.a. after tax has been applied in
Transfer, assets held for sale - -49 - -5 -54
the calculations. Furthermore, the developments in
Exchange rate adjustment -39 -64 -6 -11 -120
volumes and rates are significant parameters. Service
31 December 2018 1,039 2,978 1,136 562 5,715
concession rights with a carrying amount of USD 74m
Addition - 43 - 121 164
(USD 80m) have restricted title.
Acquired in business combinations¹ 26 - 25 - 51
3 Of which USD 73m (USD 30m) is related to ongoing
Disposal - - - 3 3
development of software.
Transfer, assets held for sale -4 -22 - -8 -34
Exchange rate adjustment -1 -24 -1 -3 -29
31 December 2019 1,060 2,975 1,160 669 5,864
Amortisation and impairment losses

1 January 2018 427 491 6 460 1,384
Amortisation - 77 69 28 174
Impairment losses 4 - - 1 5
Disposal - - - 4 4
Transfer, assets held for sale - -49 - -5 -54
Exchange rate adjustment -37 -21 - -10 -68
31 December 2018 394 498 75 470 1,437
Amortisation - 100 70 30 200
Impairment losses 35 6 - 6 47
Disposal - - - 3 3
Transfer, assets held for sale -4 -17 - -6 -27
Exchange rate adjustment -2 -7 - - -9
31 December 2019 423 580 145 497 1,645
Carrying amount:
31 December 2018 645 2,480² 1,061 92³ 4,278
31 December 2019 637 2,395² 1,015 172³ 4,219
Note 6 Intangible assets – continued

For the intangible assets, the impairment losses can be specified as follows: Table 6.2 and Table 6.3 Goodwill impairment test
Impairment analysis The carrying amount of goodwill has been allocated to
The recoverable amount of each CGU is determined the following operating segments and cash-generating
Table 6.2 Applied discount rate p.a. Impairment losses
after tax based on the higher of its value in use or fair value less units based on the management structure.
cost to sell. The value in use is calculated using certain
Operating segment 2019 2018 2019 2018
key assumptions for the expected future cash flows and The most significant goodwill amount relates to the
Goodwill applied discount factor. Ocean segment, where the impairment test is based on
Terminals & Towage 13.0% 6.6% 6 4 the estimated value in use from five-year business plans
Logistics & Services 8.7% 7.5% 29 - The cash flow projections are based on financial budgets and a calculated terminal value with growth equal to the
and business plans approved by management. In nature, expected economic growth of 2% p.a. in both 2019 and
Terminal and service concession rights these projections are subject to judgement and estimates 2018. A discount rate of 7.7% (7.7%) has been applied.
Terminals & Towage 6 - that are uncertain, though based on experience and ex-
ternal sources where available. The discount rates applied The key assumptions for Terminals & Towage’s value
Other rights reflect the time value of money as well as the specific calculations are container moves, revenue and cost per
Terminals & Towage 13.0% 6.6% 3 1 risks related to the underlying cash flows, i.e. project and/ move and discount rate. The cash flow projections cover
Logistics & Services 3 or country-specific risk premium. Further, any uncertain- the concession period and extension options where
Total 47 5 ties reflecting past performance and possible variations deemed likely that they will be exercised. The growth
in the amount or timing of the projected cash flows are rates assumed reflect current market expectations for
generally reflected in the discount rates. the relevant period.
Table 6.3
Operating segment Cash generating unit 2019 2018
Ocean Ocean (Hamburg Süd acquisition) 316 316

Terminal & Towage Multiple terminals (Grup Marítim TCB acquisition) 248 248
Other 73 81
Total 637 645
Note 7 Property, plant and equipment

Table 7.1 Ships, containers, etc. Production facilities Construction work in progress Total Table 7.1
and equipment, etc. and payment on account Right-of-use assets
Following IFRS 16 implementation in 2019, right-of-use
Cost
assets are shown separately in note 8.
1 January 2018 46,140 6,628 1,861 54,629
Addition 757 77 2,414 3,248
Acquired in business combinations -8 26 1 19 Pledges
Disposal 980 99 5 1,084 Ships, buildings, etc. with carrying amount of USD 1.9bn
Transfer 2,405 231 -2,636 - (USD 2.1bn) have been pledged as security for loans of
Transfer, assets held for sale -27 -31 - -58 USD 1.0bn (USD 1.3bn).
Exchange rate adjustment -165 -183 -35 -383
31 December 2018 48,122 6,649 1,600 56,371
Transfer of IAS 17 finance leases -4,169 -138 - -4,307
Addition 432 78 1,315 1,825
Disposal 754 127 10 891
Transfer 1,153 943 -2,096 -
Transfer, assets held for sale -3 -353 1 -355
Reclassification from/to right-of-use assets 62 6 - 68
Exchange rate adjustment -3 -68 -15 -86
31 December 2019 44,840 6,990 795 52,625
Depreciation and impairment losses

1 January 2018 19,267 3,045 304 22,616
Depreciation 2,637 385 - 3,022
Impairment losses 479 147 13 639
Reversal of impairment losses 1 2 - 3
Disposal 721 73 - 794
Transfer 112 - -112 -
Transfer, assets held for sale -18 -47 - -65
Exchange rate adjustment -50 -101 - -151
31 December 2018 21,705 3,354 205 25,264
Transfer of IAS 17 finance leases -1,725 -30 - -1,755

Depreciation 2,289 380 - 2,669
Impairment losses 46 35 - 81
Reversal of impairment losses - 53 11 64
Disposal 654 120 2 776
Transfer 188 - -188 -
Transfer, assets held for sale -7 -280 - -287
Reclassification from/to right-of-use assets 3 3
Exchange rate adjustment 8 -34 - -26
31 December 2019 21,853 3,252 4 25,109
Carrying amount:
31 December 2018 26,417 3,295 1,395 31,107
31 December 2019 22,987 3,738 791 27,516
Of which carrying amount of finance leased assets:

31 December 2018 2,444 104 4 2,552
Note 7 Property, plant and equipment – continued

Table 7.2 Impairment losses Reversal of Applied discount rate Recoverable amount Table 7.2
impairment losses p.a. after tax Impairment analysis
Operating segment Cash-generating unit 2019 2018 2019 2018 2019 2018 2019 2018 For more information on impairment tests, reference is
made to notes 6 and 25.
Terminals & Towage Terminals - 20 - 8.5% - 20
Towage 16 - 13.0% - 64 - In the cash generating units below the test gave rise to
Maersk Supply Service Anchor handling tug supply vessels impairment losses and reversals.
(onerous contracts)¹ 31 123
Anchor handling tug supply vessels 202 10.2% 284
1 Impairment loss of USD 31m (USD 123m) relates to
SSV 138 10.2% 362
the impairment losses recognised on newbuildings in
Others 5 10.2% -
previous years (onerous contracts) and reflected as
Manufacturing & Others Container manufacturing facilities 140 51 45
impairment upon delivery in 2019 (2018).
Other 34 11 13 3
Total 81 639 64 3
Note 8 Right-of-use assets

Table 8.1 Ships, Concession Real estate Total Table 8.1 and Table 8.2 Leases to which A.P. Moller - Maersk is committed, but
containers, etc. agreements and other As part of the group’s activities, customary leasing agree- for which lease term has not yet commenced have an
leases
ments are entered into, especially regarding the chartering undiscounted value of USD 481m. They comprise of
2019 of vessels and leasing of containers and other equipment. 48 contracts commencing in 2020 and 2021.
In some cases, the leasing agreements comprise purchase
Right-of-use assets
options exercisable by the group and options for extending Certain terminal concession agreements contain variable
1 January 2019 3,120 2,351 751 6,222
the lease term. The group also enters into arrangements payment terms that are linked to future performance, i.e.
Transfer from IAS 17 finance leases 2,444 - 108 2,552
that provide the right to use some existing infrastructure number of containers handled or depend on an index, or
Additions 555 780 214 1,549
or land as required to carry out the terminal business. a combination hereof. Such payments are recognised in
Disposal -321 -2 -18 -341
the income statement in the period in which the condition
Depreciation cost -1,023 -188 -185 -1,396
In 2018, the group recognised leased assets and corre- that triggers those payments occurs.
Transfer, assets held for sale -4 -58 -1 -63
sponding liabilities in relation to leases that were classi-
Transfer to owned assets, etc. -59 -1 -5 -65
fied as ‘finance leases’ under IAS 17. The assets were pre-
Exchange rate adjustment - 2 - 2
sented in property, plant and equipment and the finance
31 December 2019 4,712 2,884 864 8,460
lease liabilities as part of the group’s borrowings. Follow-
ing the adoption of IFRS 16, all capitalised leases are pre-
sented as right-of-use assets, including those previously
presented under property, plant and equipment.
Table 8.2 Total
Amounts recognised in profit and loss 2019 To optimise lease costs during the contract period, the
group sometimes provides residual value guarantees
Depreciation cost on right-of-use assets 1,396 in relation to equipment leases. At the end of 2019, the
Interest expenses (included in finance costs) 477 expected residual values were reviewed to reflect the
actual residual values achieved on comparable assets and
Expenses relating to service elements of leases 861 expectations about future prices. As at 31 December 2019,
Expenses relating to short-term leases 414 USD 489m is expected to be payable and is included in
Expenses relating to variable lease payments 202 the measurement of the lease liabilities.
Expenses relating to leases of low-value assets 25
Total recognised in operating costs 1,502
Note 9 Deferred tax

Recognised deferred tax assets and liabilities are attributable to the following: Table 9.3 1 In addition, a tax loss carry-forward of USD 0m (USD
The unrecognised deferred tax assets have no significant 9m) relating to discontinued operations is included
time limitations. There are no substantial unrecognised under Liabilities held for sale.
Table 9.1 Assets Liabilities Net liabilities
tax liabilities on investments in subsidiaries, associated
2019 2018 2019 2018 2019 2018
companies and joint ventures.
Intangible assets 32 32 203 217 171 185
Property, plant and
equipment 49 55 201 220 152 165
Provisions, etc. 110 117 42 6 -68 -111
Tax loss carry-
forwards 129 163 - - -129 -163
Other 44 25 43 54 -1 29
Total 364 392 489 497 125 105
Offsets -127 -125 -127 -125 - -
Total 237 267 362 372 125 105
Table 9.2
Change in deferred tax, net, during the year 2019 2018
1 January 105 159
Intangible assets -15 -10

Property, plant and equipment -6 1
Provisions, etc. 36 -68
Tax loss carry-forwards 31 26
Other -37 -12
Recognised in the income statement 9 -63
Other including business combinations 11 9

31 December 125 105
Table 9.3
Unrecognised deferred tax assets – continuing operations 2019 2018
Deductible temporary differences 141 120

Tax loss carry-forwards 768 683
Unused tax credits 13 13
Total¹ 922 816
Note 10 Discontinued operations and assets held for sale

Table 10.1 2019 2018 Table 10.1, Table 10.2 and Table 10.3 1 The tax relates to the profit from the ordinary activities
Discontinued operations include Maersk Oil up to closing of discontinued operations. There is no tax related
Profit/loss for the period – discontinued operations in March 2018, as well as Maersk Drilling up to demerger to the gain on sale of Maersk Oil. The gain on sale of
Revenue 308 1,977
in April 2019, which concluded the separation of the Maersk Oil was USD 2.6bn in 2018.
Expenses 233 1,021
energy-related businesses. The results of the discon-
Gains/losses on the sale of assets and businesses - 2,633
tinued operations are presented in one separate line
Negative fair value adjustment -628 -
in the income statement, balance sheet and cash flow
Fair value adjustment - 445
statement.
Profit/loss before tax, etc. -553 4,034
Tax ¹ - 247
In the consolidated financial statements, the results for
Profit/loss for the year – discontinued operations -553 3,787
Maersk Oil and Maersk Drilling are classified under dis-
continued operations with a net loss of USD 553m (profit
A.P. Møller - Mærsk A/S’ share of profit/loss -553 3,787
of USD 3.8bn). Total cash flow from the discontinued op-
Earnings per share -27 182
erations was negative by USD 372m (positive USD 4.0bn).
Diluted earnings per share -27 182
Maersk Drilling activity

Cash flows from discontinued operations
In Q3 2018, A.P. Moller - Maersk announced that it would
Cash flow from operating activities 137 893
pursue a demerger through a separate listing of Maersk
Cash flow used for investing activities -488 1,787
Drilling in 2019. On 2 April 2019, the Annual General Meet-
Cash flow from financing activities -21 1,287
ing approved the Board of Directors’ proposal to complete
Net cash flow from discontinued operations -372 3,967
the demerger and separate listing of Maersk Drilling.
Period ended 2 April 2019

A.P. Moller - Maersk recognised a loss of USD 553m for
Table 10.2 2019 2018 the Maersk Drilling activity, mainly due to a negative fair
value adjustment of USD 628m in Q1 2019. The cash flow
Balance sheet items comprise:
from the demerger is summarised in Table 10.3.
Intangible assets 7 91
Property, plant and equipment 135 4,964
For the measurement of the fair value of Maersk Drilling,
Deferred tax assets - -8
A.P. Moller - Maersk has used the market cap of Maersk
Other assets - 59
Drilling at the closing price of the new listed company on
Non-current assets 142 5,106
the first day of trading on Nasdaq Copenhagen on 4 April
Current assets 7 799
2019 as fair value distributed to the shareholders. The
Assets held for sale or distribution 149 5,905
fair value of the new listed company of USD 3.4bn has
resulted in a negative fair value adjustment of USD 628m
Provisions 1 75
being recognised in Q1 2019. Measurement of the fair
Deferred tax liabilities 1 66
value of the disposal group is categorised as level 1 in
Other liabilities 73 1,808
the fair value hierarchy, as measurement is based on
Liabilities associated with assets held for sale or distribution 75 1,949
observable market data.
Note 10 Discontinued operations and assets held for sale – continued

Table 10.3 The net cash flow effect of USD 372m for the period Secondary decommissioning liability
Cash flow from sale 2019 2018 mainly relates to cash and bank balances disposed to As part of the divestment of Mærsk Olie & Gas A/S
Maersk Drilling at demerger. As part of the demerger, (MOGAS) to Total S.A. in 2018, A.P. Møller - Mærsk A/S
Carrying amount A.P. Moller - Maersk is subject to a statutory demerger (APMM) has assumed a secondary liability related to the
Intangible assets 91 779 liability for liabilities existing as of 4 March 2019 as- decommissioning of the offshore facilities in Denmark
Property, plant and equipment 4,426 6,750 signed to The Drilling Company of 1972 A/S, pursuant by issuance of a declaration. APMM assesses the risk of
Financial assets, non-current 4 433 of the Danish Companies Act section 254, subsection 2. economic outflows because of this secondary liability
Deferred tax assets -14 233 The liability is deemed remote. as very remote.
Current assets 792 1,338
Provisions -24 -2,767 Maersk Oil
Liabilities -1,904 -3,831 On 21 August 2017, A.P. Moller - Maersk announced the
Net assets sold 3,371 2,935 sale of Maersk Oil to Total S.A. for USD 7,450m in a com-
Non-controlling interests - - bined share and debt transaction. The transaction, which
A.P. Møller - Mærsk A/S’ share 3,371 2,935 was based on a locked box mechanism from 30 June 2017,
Gain/loss on sale - 2,632 closed on 8 March 2018 with an accounting gain of
Repayment of loan - 2,500 USD 2.6bn.
Locked box interest received - 156
Distribution of shares in The Drilling Company of 1972 A/S to shareholders In addition to the net cash proceeds of USD 2.0bn after
in A.P. Møller - Mærsk A/S -3,371 -
closing adjustments and free cash flow of USD 0.3bn up
Total consideration 0 8,223
to closing, A.P. Moller - Maersk received USD 97.5m shares
Shares in Total S.A. received - -5,567
in Total S.A., equivalent to an ownership interest of 3.7%.
Cash and bank balances transferred at closing -425 -633
Cash flow from the sale of subsidiaries and activities -425 2,023
The market value of Total S.A. shares was USD 5.6bn at
closing on 8 March 2018. The accounting gain comprises
of the original gain calculated on 30 June 2017 of USD
2.8bn reduced by the profit recognised in the period from
1 July 2017 up to closing of USD 1.0bn and addition of the
locked box interest and positive Total S.A. share price de-
velopment totalling USD 0.8bn.
Period ended 8 March 2018

Maersk Oil reported a profit of USD 148m in 2018 before
elimination of internal interests. The gain and cash flow
from closing the transaction is summarised in Table 10.3.
Note 11 Share capital and earnings per share

Development in the number of shares: Table 11.1 Table 11.2
All shares are fully issued and paid up. On 24 May 2019, the Board of Directors of
Table 11.1 A shares of B shares of Nominal value A.P. Møller - Mærsk A/S (APMM) announced a share
One A share of DKK 1,000 holds two votes. B shares have buy-back programme in order to exercise the authority
DKK 1,000 DKK 500 DKK 1,000 DKK 500 DKK million USD million
no voting rights. given at the Annual General Meeting in April 2019 of
1 January 2018 and acquiring up to 15% of the share capital over two years
1 January 2019 10,756,262 232 10,060,398 172 20,817 3,774 Adoption of resolutions regarding changes to the com- of up to DKK 10bn (around USD 1.5bn) and a maximum of
Conversion 3 -6 3 -6 - - pany’s Articles of Association or increase or write-down 3.12 million shares to be acquired over a period of up to
31 December 2018 of the share capital requires that at least two-thirds of 15 months. The authorisation is to remain in force until
and the A share capital at the General Meeting shall be rep- 30 April 2021.
31 December 2019 10,756,265 226 10,060,401 166 20,817 3,774 resented by persons entitled to vote and that at least
two-thirds of the votes cast shall be cast in favour of the The first phase of the programme was initiated on 4 June
adoption of the resolution. 2019 and was completed on 25 September 2019.
Development in the holding of own shares:

Apart from a resolution for the dissolution of the During the second phase of the programme running
company, other resolutions at the General Meetings are from 26 September 2019 to 28 February 2020, the
Table 11.2 No. of shares of DKK 1,000 Nominal value DKK million % of share capital passed by simple majority, as long as legislation does not company will buy back A and B shares for an amount
Own shares 2019 2018 2019 2018 2019 2018 require particular voting majority. Reference is made to of up to DKK 3.3bn.
the company’s Articles of Association.
A shares The share buy-back is carried out with the purpose to
1 January - - - - 0.00% 0.00% In the event of an increase of the company’s share capital, adjust the capital structure of APMM and to meet obli-
Addition 134,279 - 134 - 0.65% 0.00% the shareholders in the given share class shall have a gations under long-term incentive programmes. Shares
31 December 134,279 - 134 - 0.65% 0.00% pre-emptive right to subscribe for a proportionate share which are not used for hedging purposes for the long-
of the capital increase. term incentive programmes will be proposed cancelled
B shares at the Annual General Meetings in 2020 and 2021.
1 January 55,515 60,839 56 61 0.27% 0.29%
Addition 537,143 - 537 - 2.57% 0.00% No shares may be bought back at a price exceeding
Disposal 4,709 5,324 5 5 0.02% 0.02% the higher of i) share price of latest independent trade
31 December 587,949 55,515 588 56 2.82% 0.27% and ii) the highest current independent bid at Nasdaq
Copenhagen at the time of trading.
The maximum number of A and B shares that may be

purchased on each business day may not exceed 25%
of the average daily trading volume of A and B shares,
respectively, on Nasdaq Copenhagen or other regulated
markets, on which the purchase is carried out, over last
20 trading days prior to the date of purchase.
Disposals of own shares are primarily related to the

restricted shares programme.
Note 11 Share capital and earnings per share – continued

The basis for calculating earnings per share is the following: Table 11.3 Table 11.4
Dividend Earnings per share
The Board of Directors proposes a dividend to the share- At 31 December 2019, there is no dilution effect on earn-
Table 11.3
holders of DKK 150 per share of DKK 1,000 – a total of ings per share from the 67,825 issued share options. The
A.P. Møller - Mærsk A/S’ share of: 2019 2018
DKK 3,123m, equivalent to USD 468m at the exchange rate issued share options correspond to 0.33% of the total
Profit/loss for the period of continuing operations 469 -630 as per 31 December 2019 (DKK 150 per share of DKK 1,000 average number of shares in the group. At 31 December
Profit/loss for the period of discontinued operations -553 3,787 – a total of DKK 3,123m or USD 479m). 2018, there was no dilution effect on earnings per share
Profit/loss for the year -84 3,157 from the 46,692 issued share options. The issued share
Payment of dividends is expected to take place on options corresponded to 0.22% of the total average num-
26 March 2020. Payment of dividends to shareholders ber of shares in the group.
does not trigger taxes to A.P. Møller - Mærsk A/S.
Table 11.4 2019 2018
Issued shares 1 January 20,816,862 20,816,862

Average number of own shares 275,236 56,856
Average number of shares 20,541,626 20,760,006
Note 12 Share-based payment

Table 12.1 Members of Employees ¹ Total Total fair Table 12.1 The fair value of restricted shares (A.P. Møller - Mærsk A/S
the Executive value ¹ Restricted shares plan B shares) granted to 92 (105) employees and five (five)
Board ¹
The restricted shares plan was introduced in 2013 and members of the Executive Board was USD 7m (USD 8m)
Outstanding restricted shares No. No. No. USD million grants have been awarded to employees on a yearly basis at the time of grant. The total value of granted restricted
since 2013. Grants have also been awarded to members of shares recognised in the income statement is USD 5m
1 January 2018 - 14,532 14,532
the Executive Board from 2018. (USD 8m).
Granted 1,002 4,241 5,243 8
Exercised - 5,324 5,324
The transfer of restricted shares is contingent upon the The fair value per restricted share at the time of grant
Forfeited - 663 663
employee still being employed and not being under notice is DKK 8,668 (DKK 9,273), which is equal to the volume
Outstanding 31 December 2018 1,002 12,786 13,788
of termination and takes place when three years have weighted average share price on the date of grant, i.e.
passed from the time of granting. For members of the 1 April 2019.
Granted 1,310 4,319 5,629 7
Executive Board the vesting period is five years.
Granted in connection with Maersk Drilling demerger 294 1,286 1,580
On 1 April 2019, the restricted shares originally granted
Exercised - 4,756 4,756
The members of the Executive Board as well as other in 2016 were settled with the employees. The weighted
Forfeited 739 1,700 2,439
employees are not entitled to any dividends during average share price at that date was DKK 8,668. The aver-
the vesting period. Special conditions apply regard- age remaining contractual life for the restricted shares as
ing illness, death and resignation as well as changes per 31 December 2019 is 1.7 years (1.4 years).
in the company’s capital structure, etc. A part of
A.P. Møller - Mærsk A/S’ holding of own B shares will be 1 At the time of grant.
used to meet the company’s obligations in connection
with the restricted shares plan.
Note 12 Share-based payment – continued

Table 12.2 Members of the Employees ¹ Total Average Total fair Table 12.2 Table 12.3
Executive Board ¹ exercise price ² value ¹ Share option plans The fair value per option granted to members of the
Outstanding share options No. No. No. DKK USD million In addition to the plan described above, Executive Board is calculated at DKK 1,782 (DKK 1,712)
A.P. Moller - Maersk has share option plans for members at the time of grant, based on Black & Scholes’ option
1 January 2018 4,928 20,602 25,530 10,647 of the Executive Board and other employees. Each share pricing model. The fair value per option granted to em-
Granted 6,230 18,137 24,367 9,382 7 option granted is a call option to buy an existing B share ployees not members of the Executive Board is calcu-
Forfeited 1,173 2,032 3,205 10,375 of nominal DKK 1,000 in A.P. Møller - Mærsk A/S. lated at DKK 1,914 (DKK 1,875) at the time of grant
Outstanding 31 December 2018 9,985 36,707 46,692 10,006 based on the same option pricing model.
Exercisable 31 December 2018 - - - The share options are granted at an exercise price cor-
responding to 110% of the average of the market price
Granted 7,894 22,444 30,338 7,622 9 on the first five trading days following the release of
Forfeited 6,080 3,125 9,205 9,141 A.P. Møller - Mærsk A/S’ Annual Report. Exercise of the
Outstanding 31 December 2019 11,799 56,026 67,825 9,057 share options is contingent upon the option holder still
Exercisable 31 December 2019 - 18,435 18,435 10,630 being employed at the time of exercise. The share options
can be exercised when at least three years and no more
than six years (seven years for share options granted
to employees not members of the Executive Board)
The following principal assumptions are used in the valuation:
have passed from the time of grant. Special conditions
apply regarding illness, death and resignation as well as
Table 12.3 Share options granted to Share options granted to changes in the company’s capital structure, etc.
members of the Executive Board employees not members of the
Executive Board
The share options can only be settled in shares. A part of
2019 2018 2019 2018 A.P. Møller - Mærsk A/S’ holding of own B shares will be
used to meet the company’s obligations in respect of the
Share price, volume weighted average at the
date of grant, 1 April, DKK 8,668 9,273 8,668 9,273 share option plans.
Share price, five days volume weighted average
after publication of Annual Report, DKK 8,682 10,476 8,682 10,476 The fair value of awards granted to five (five) members of
Exercise price, DKK 9,550 11,524 9,550 11,524 the Executive Board and 75 (80) employees was USD 9m
Exercise price following the demerger of (USD 7m) at the time of grant. The total value of granted
Maersk Drilling, 2 April 2019, DKK 7,670 9,435 7,605 9,345 share options recognised in the income statement is USD
Expected volatility (based on historic volatility) 32% 33% 32% 33% 5m (USD 6m).
Expected term (years) 5.00 5.00 5.75 5.75
Expected dividend per share, DKK 150 150 150 150 No share options were exercised during 2018 and 2019.
Risk free interest rate -0.36% 0.21% -0.28% 0.29%
The average remaining contractual life as per 31 Decem-
ber 2019 is 5.2 years (5.5 years) and the exercise price for
outstanding share options is DKK 9,057 (DKK 10,006).
1 At the time of grant.

2 Average exercise prices were reduced following the
demerger of Maersk Drilling and have been restated.
Note 13 Borrowings and lease liability reconciliation

Table 13.1 Net debt as at Cash flows Non-cash changes Net debt as at Table 13.1
31 December 31 December 1 Other includes fair value changes and amortisation of
fees.
2018 IFRS 16 Additions Disposal Foreign Other ¹ 2019
adoption exchange 2 Total cash outflow impact for leases for 2019 was USD
movements 1,788m, of which USD 477m relates to interest expense
which is disclosed separately in note 8.
Bank and other credit institutions 4,249 -928 - 7 29 3,357
Issued bonds 5,373 -543 - -57 46 4,819
Total borrowings 9,622 -1,471 - -50 75 8,176
Borrowings:
Classified as non-current 8,036 7,455
Classified as current 1,586 721
Leases:
Lease liabilities 2,266 -1,311² 6,245 1,744 -323 5 -49 8,577
Total leases 2,266 -1,311 6,245 1,744 -323 5 -49 8,577
Leases:
Classified as current 408 1,282
Total borrowing and leases 11,888 -2,782 6,245 1,744 -323 -45 26 16,753
Derivatives hedge of borrowings, net 162 -84 57 37 172

Note 13 Borrowings and lease liability reconciliation – continued

Table 13.2 Net debt as at Cash flows ¹ Non-cash changes Net debt as at Table 13.2
31 December 31 December 1 Cash flows include prepayments of USD 6.4bn of
which USD 5.6bn relates to prepayments made during
2017 Acquisitions Foreign Other² 2018
exchange Q4 2018.
movements 2 Other includes new finance leases and fair value
changes.
Bank and other credit institutions 7,146 -2,729 -7 -183 22 4,249
Issued bonds 7,804 -2,258 - -238 65 5,373
Total borrowings 14,950 -4,987 -7 -421 87 9,622
Borrowings:
Classified as current 2,026 1,586
Leases:
Lease liabilities 2,745 -663 - 29 155 2,266
Total leases 2,745 -663 - 29 155 2,266
Leases:
Classified as current 451 408
Total borrowing and leases 17,695 -5,650 -7 -392 242 11,888
Derivatives hedge of borrowings, net -88 -2 - 238 14 162

Note 14 Pensions and similar obligations

Table 14.1 UK Other Total UK Other Total Table 14.1 Table 14.2
2019 2019 2019 2018 2018 2018 As employer, the group participates in pension plans The majority of the group’s defined benefit liabilities are
according to normal practice in the countries in which it in the UK by 78% and the USA by 13%. All the plans in the
Specification of net liability operates. Generally, the pension plans within the group UK and the majority of the plans in the USA are funded.
Present value of funded plans 2,248 490 2,738 1,999 481 2,480 are defined contribution plans, where contributions are Although all the UK plans are now closed to new entrants,
Fair value of plan assets -2,690 -388 -3,078 -2,301 -382 -2,683 recognised in the income statement on an accrual basis. active members in the two largest plans continue to
Net liability of funded plans -442 102 -340 -302 99 -203 A number of entities have defined benefit plans, in which accrue new benefits. The smaller UK plans are all closed
Present value of unfunded plans - 138 138 - 116 116 retirement benefits are based on length of service and to new accruals, although a salary link remains in some
Impact of minimum funding salary level. To a limited extent, these defined benefit of the plans.
requirement/asset ceiling 65 - 65 61 - 61 plans also include payment of medical expenses, etc.
Net liability 31 December -377 240 -137 -241 215 -26 Overall, the plans have an average duration of 16 years,
Pension and medical plans which, as part of collective and approx. 57% of the obligation is in respect of pen-
Of which: bargaining agreements, have been entered into with other sioner members.
Pensions, net assets 409 285 enterprises (known as multi-employer plans) are treated
Pensions and similar obligations 272 259
as other pension plans. Such defined benefit plans are As well as being subject to the risks of falling interest
treated as defined contribution plans when sufficient in- rates, which would increase the obligation, poor asset
formation for calculating the individual enterprise’s share returns and pensioners living longer than anticipated,
of the obligation is not available. the group is also subject to the risk of higher than ex-
Table 14.2 UK Total UK Total pected inflation. This is because many pension benefits,
Significant financial assumptions 2019 2019 2018 2018 In 2020, the group expects to pay contributions totalling particularly in the UK plans, increase in line with inflation,
USD 27m to funded defined benefit plans (USD 27m in although some minimum and maximum limits apply.
Discount rate 1.9% 1.9% 2.8% 3.0% 2019).
Inflation rate 3.1% 3.1% 3.4% 3.1%
Note 14 Pensions and similar obligations – continued

Table 14.3 31 December Table 14.3 Table 14.5
Life expectancy 2019 2039 2018 2038 Rates of life expectancy reflect the most recent mortality Except for an insignificant portion, the plan assets held by
investigations, and in line with market practice an allow- the group are quoted investments.
65 year old male in the UK 21.6 23.0 21.7 23.1 ance is made for future improvements in life expectancy.
The group assumes that future improvements will be in
line with the latest projections, 1.25% for all UK plans.
The sensitivity of the liabilities and pension cost to the key assumptions are as follows: Table 14.4
The liabilities are calculated using assumptions that are
Table 14.4 Increase Decrease the group’s best estimate of future experience bearing in
mind the requirements of IAS 19.
Sensitivities for key assumptions in the UK
Factors “Change in liability“ 2019 2019
The group’s plans are funded in accordance with appli-
Discount rate Increase/(decrease) by 25 basis points -88 94 cable local legislation. In the UK, each plan has a trustee
Inflation rate Increase/(decrease) by 25 basis points 46 -53 board that is required to act in the best interests of plan
Life expectancy Increase/(decrease) by one year 113 -110 members. Every three years, a formal valuation of the
plan’s liabilities is carried out using a prudent basis, and
if the plan is in deficit, the trustees agree with the group
or the sponsoring employer on a plan for recovering that
deficit.
Table 14.5 UK Other Total UK Other Total
Specification of The expected contribution to the UK plans for 2020 are
plan assets 2019 2019 2019 2018 2018 2018
USD 23m (USD 21m in 2019) of which USD 20m (USD 0m in
Shares 179 131 310 261 132 393 2019) is deficit recovery contributions. In most of the UK
Government bonds 1,403 99 1,502 966 87 1,053 plans, any surplus remaining after the last member dies
Corporate bonds 652 79 731 547 69 616 may be returned to the group. However, the Merchant
Real estate 9 4 13 27 5 32 Navy Ratings Pension Fund (MNRPF) and the Merchant
Other assets 447 75 522 500 89 589 Navy Officers Pension Fund (MNOPF) contributions paid
Fair value by the group are not refundable in any circumstance, and
31 December 2,690 388 3,078 2,301 382 2,683 the balance sheet liability reflects an adjustment for any
agreed deficit recovery contributions in excess of deficit
determined using the group’s assumptions. In 2019,
an adjustment of USD 2m (USD 2m) was applied in this
respect.
Note 14 Pensions and similar obligations – continued

Table 14.6 Present Fair value Adjustments Net liability Of which: Table 14.6
value of of plan UK Multi-employer plans
Change in net liability obligations assets
Under collective agreements, certain entities in the group
1 January 2018 2,890 2,959 58 -11 -234 participate together with other employers in defined
benefit pension plans as well as welfare/medical plans
Current service cost, administration cost, etc. 33 -6 - 39 22 (multi-employer plans).
Calculated interest expense/income 73 75 - -2 -6
Recognised in the income statement in 2018 106 69 - 37 16 For the defined benefit pension plans, the group has joint
and several liabilities to fund total obligations. In 2019,
Actuarial gains/losses from changes in financial and demographic assumptions, etc. -111 -111 -73 the group’s contributions are estimated at USD 83m
Return on plan assets, excl. calculated interest income -112 112 91 (USD 74m), while the contributions to be paid in 2020 are
Adjustment for unrecognised asset due to asset ceiling 34 34 34 estimated at USD 79m. In general, the contributions to
Adjustment for minimum funding requirement -28 -28 -29 the schemes are based on man-hours worked or cargo
Recognised in other comprehensive income in 2018 -111 -112 6 7 23 tonnage handled, or a combination hereof.
Contributions from the group and employees 4 69 -65 -62 No reliable basis exists for the allocation of the schemes’
Benefit payments -151 -141 -10 - obligations and plan assets to individual employer partic-
Effect of business combinations and disposals 4 - 4 - ipants. For the plans where the group has an interest and
Exchange rate adjustment -146 -161 -3 12 16 there is a deficit, the net obligations for all employers to-
31 December 2018 2,596 2,683 61 -26 -241 talled USD 0.7bn (USD 0.9bn). This net obligation is based
on the most recent available financial data from the
Current service cost, administration cost, etc. 30 -5 35 9 plan’s trustees, calculated in accordance with the rules
Calculated interest expense/income 73 77 -4 -7 for such actuarial calculations in US GAAP. The deficit in
Recognised in the income statement in 2019 103 72 - 31 2 some of the schemes may necessitate increased contri-
butions in the future.
Actuarial gains/losses from changes in financial and demographic assumptions, etc. 262 262 207
Return on plan assets, excl. calculated interest income 352 -352 -310 The welfare/medical plans are by nature contribution
Adjustment for unrecognised asset due to asset ceiling -1 -1 -1 plans funded on a pay-as-you-go basis. As for the de-
Recognised in other comprehensive income in 2019 262 352 -1 -91 -104 fined benefit pension plans, the contributions are based
on man-hours worked or cargo tonnage handled, or a
Contributions from the group and employees 27 -27 -22 combination hereof.
Benefit payments -141 -130 -11
Settlements -5 -5 -
Internal transfers -1 - 1 -
Effect of business combinations and disposals -11 -11 -
Exchange rate adjustment 73 90 4 -13 -12
31 December 2019 2,876 3,078 65 -137 -377
Note 15 Provisions
Table 15.1 Restructuring Legal Onerous and Other Total Table 15.1 Reversals of provisions primarily relate to unfavourable
disputes, etc. unfavourable Restructuring includes provisions for decided and publicly contracts, which were adjusted to right-of-use assets as
contracts
announced restructurings. Legal disputes, etc. include a practical expedient upon application of IFRS 16, and
1 January 2019 61 705 194 276 1,236 among other things indirect tax and duty disputes. to legal disputes and contractual disagreements, which
Provision made 99 263 20 242 624 Onerous and unfavourable contracts are mainly related are recognised in the income statement under operating
Amount used 37 223 29 49 338 to Hamburg Süd’s unfavourable lease contracts acquired costs and tax.
Amount reversed 15 135 185 90 425 in 2017. Other includes provisions for warranties and risk
Exchange rate adjustment -1 8 - -10 -2 under certain self-insurance programmes. The provisions
31 December 2019 107 618 - 369 1,094 are subject to considerable uncertainty, cf. note 25.
Of which:
Classified as non-current 4 424 - 208 636
Classified as current 103 194 - 161 458
Non-current provisions expected to

be realised after more than five years - 36 - 26 62
Note 16 Derivatives
Table 16.1 2019 2018 Table 16.1
Hedges comprise primarily currency derivatives and inter-
Non-current receivables 161 134
est rate derivatives. Foreign exchange forwards and op-
Current receivables 43 81
tion contracts are used to hedge the currency risk related
Non-current liabilities 328 242
to recognised and unrecognised transactions. Interest rate
Current liabilities 87 121
and cross-currency swaps are used to hedge interest rate
Assets, net -211 -148
exposure on borrowings. Price hedge derivatives are used
to hedge crude oil prices and bunker prices.
The hedges are expected to be highly effective due to the

The fair value of derivatives held at the balance sheet date can be allocated by type as follows:
nature of the economic relation between the exposure
and the hedge. The source of ineffectiveness is the credit
Table 16.2 Fair value, Fair value, Nominal Fair value, Fair value, Nominal risk of the hedging instruments. For hedges where the
asset liability amount of asset liability amount of cost of hedging is applied, the forward points and change
derivative derivative
in basis spread are recognised in other comprehensive in-
2019 2019 2019 2018 2018 2018 come and transferred with the effective hedge when the
hedged transaction occurs. The cost of hedging reserve
Hedge of borrowings
amounts to a gain of USD 6m (USD 1m).
Cross-currency swaps
EUR 53 95 1,600 97 141 2,697
For information about risk management strategy, curren-
GBP - 66 394 - 74 380
cies, maturities, etc., reference is made to note 17.
JPY 10 11 206 10 12 204
NOK - 61 591 - 52 596
Table 16.2 and Table 16.3
Hedge of borrowings
Interest rate swaps
Cross-currency swaps are used to swap all non-USD
Cash flow hedges 82 98 1,182 33 8 1,548
issued bonds. Fixed to floating rate swaps are designated
Fair value hedges 14 - 900 - 15 500
as a combination of fair value and cash flow hedges. The
Total 159 331 140 302
principal amounts in USD equivalents are: EUR 733m (EUR
1,723m), GBP 92m (GBP 89m), JPY 206m (JPY 204m) and
Hedge of operating cash flows and investments in foreign currencies
NOK 250m (NOK 252m). The remaining swaps are fixed to
Main currencies hedged
fixed rate or floating to fixed rate swaps and are desig-
EUR 3 7 647 - 12 522
nated as cash flow hedges of interest rate risk.
DKK 1 4 260 - 9 254
HKD - - 165 - - 137
Other currencies 28 7 1,113 2 12 418 The hedge ratio is 1:1. The maturity of the hedge instrument
Total 32 18 2 33 0-5 years is (USD equivalents): EUR 671m (EUR 1,746m),
JPY 92m (JPY 91m) and NOK 341m (NOK 344m). 5-10 years:
EUR 839m (EUR 859m), GBP 394m (GBP 380m), JPY 114m
(JPY 113m) and NOK 250m (NOK 252m). Above 10 years:
EUR 90m (EUR 92m).
Cross-currency swaps are designated as a combination

of hedge of principal cash flow and hedge of interests at
a weighted average rate of 4.0% (4.5%).
Note 16 Derivatives – continued

Table 16.3 Fair value Interest rate swaps are all denominated in USD and pay Table 16.4
2019 2018 either floating (fair value hedge) or fixed interest rates Hedge of operating cash flows and investments
(cash flow hedge). The hedge ratio is 1:1, and the weighted in foreign currencies
Held for trading average interest rate is 2.4% (2.5%) excluding margin on Currency derivatives hedge future revenue, operating
Currency derivatives -28 17 loans. The maturity of the interest rate swaps 0-5 years is costs and investments/divestments and are recognised
Price hedge -25 28 USD 730m (USD 918m) and 5-10 years USD 1,352m (USD on an ongoing basis in the income statement and the
Total -53 45 1,130m). cost of property, plant and equipment, respectively.
For cash flow hedges related to borrowings, a loss of Hedges of future revenue and operating costs mature
USD 54m (loss of USD 80m) is recognised in other com- within one year. There are no hedges of investments at
The gains/losses, including realised transactions, are recognised as follows: prehensive income, and the cash flow hedge reserve is a the end of 2019 (2018: Mature within one year).
loss of USD 103m (loss of USD 49m). Reference is made
Table 16.4 2019 2018 to other comprehensive income. For hedges related to operating cash flows and invest-
ments a gain of USD 48m (loss of USD 89m) is recognised
Hedging foreign exchange risk on revenue -5 2 The carrying amount of the borrowings in fair value in other comprehensive income, and the cash flow hedge
Hedging foreign exchange risk on operating costs -78 2 hedge relation is USD 2,181m (USD 2,768m), and the reserve amounts to a gain of USD 14m (loss of USD 34m).
Hedging interest rate risk -28 -53 accumulated fair value adjustment of the loans is a loss
Hedging foreign exchange risk on the cost of non-current assets -2 8 of USD 53m (loss of USD 13m). The gain on the hedging Other economic hedges (no hedge accounting applied)
Hedging foreign exchange risk on discontinued operations -1 5 instrument in fair value hedges recognised in the income Furthermore, the group enters into derivatives to hedge
Total effective hedging -114 -36 statement for the year amounts to USD 45m (loss of USD economic risks that are not accounted for as hedging.
Ineffectiveness recognised in financial expenses -4 22 15m), and the loss on hedged item amounts to USD 40m These derivatives are accounted for as held for trading.
Total reclassified from equity reserve for hedges -118 -14 (gain of USD 15m).
For information about currencies, maturities, etc., refer-
Currency derivatives recognised directly in financial income/expenses 56 9 Due to bond buy-back in 2019, ineffectiveness from cash ence is made to note 17.
Interest rate derivatives recognised directly in financial income/expenses 45 -29 flow hedges is recognised in the income statement with
Oil prices and freight rate derivatives recognised directly in other income/costs -64 25 a loss of USD 4m (gain of USD 20m).
Derivatives recognised in income statement for discontinued operations - -1
Net gains/losses recognised directly in the income statement 37 4
Total -81 -10

Note 17 Financial instruments by category

Table 17.1 Carrying Fair Carrying Fair Table 17.1 1 Relates to contingent considerations receivable.
amount value amount value Equity Investments at fair value through other 2 Designated at initial recognition in accordance with
2019 2019 2018 2018 comprehensive income (FVOCI) IFRS 9.
In 2019, the shares in Total S.A., received from the sale
Carried at amortised cost of Maersk Oil, were sold.
Loan receivables 399 399 370 370
Lease receivables 31 26
Other interest-bearing receivables and deposits 62 62 58 57
Trade receivables 3,531 3,815
Other receivables (non-interest-bearing) 1,078 1,064
Financial assets at amortised cost 9,869 8,196
Derivatives 204 204 215 215
Carried at fair value through profit/loss

Other receivables (non-interest-bearing)¹ 4 4 4 4
Bonds 1 1 - -
Other securities 1 1 1 1
Financial assets at fair value through profit or loss 6 6 5 5
Carried at fair value through other comprehensive income

Equity investments (FVOCI)² 78 78 2,491 2,491
Financial assets at fair value through OCI 78 78 2,491 2,491
Total financial assets 10,157 10,907
Carried at amortised cost

Bank and other credit institutions 3,357 3,415 4,249 4,286
Lease liabilities 8,577 2,266
Issued bonds 4,819 5,040 5,373 5,394
Trade payables 5,567 5,281
Other payables 1,213 979
Financial liabilities at amortised cost 23,533 18,148
Carried at fair value

Other payables 1 1 - -
Financial liabilities at fair value 1 1 - -
Total financial liabilities 23,949 18,511

Note 17 Financial instruments by category – continued

Table 17.2 Other equity Other Total Other Total Table 17.2 Financial instruments carried at amortised cost
investments receivables financial payables financial Financial instruments measured at fair value Fair value of the short-term financial assets and other
Movement during the year in level 3 (FVOCI) assets liabilities
Financial instruments measured at fair value can be financial liabilities carried at amortised cost is not mate-
Carrying amount 1 January 2018 13 10 23 7 7 divided into three levels: rially different from the carrying amount. In general, fair
Addition 13 4 17 - - value is determined primarily based on the present value
Disposal - - - 5 5 Level 1 — Quoted prices (unadjusted) in active markets of expected future cash flows. Where a market price was
Gains/losses recognised in the for identical assets or liabilities; available, however, this was deemed to be the fair value.
income statement - -10 -10 -2 -2
Carrying amount 31 December 2018 26 4 30 - - Level 2 — Inputs other than quoted prices included Fair value of listed issued bonds is within level 1 of the
within level 1 that are observable for the fair value hierarchy. Fair value of the remaining borrowing
Addition 38 -1 37 - - asset or liability, either directly (i.e. as prices) items is within level 2 of the fair value hierarchy and is
Gains/losses recognised in the or indirectly (i.e. derived from prices); and calculated based on discounted future cash flows.
income statement - - - 1 1
Gains/losses recognised in other Level 3 — Inputs for the asset or liability that are not
comprehensive income -3 - -3 - -
based on observable market data.
Exchange rate adjustment, etc. -2 -2 - -
Carrying amount 31 December 2019 59 3 62 1 1
Fair value of listed securities is within level 1 of the fair
value hierarchy. Non-listed shares and other securities are
within level 3 of the fair value hierarchy.
Fair value of derivatives is mainly within level 2 of the fair

value hierarchy and is calculated based on observable
market data as of the end of the reporting period. A minor
amount of crude oil price derivatives is within level 1 of
the fair value hierarchy.
Fair value of level 3 assets and liabilities is primarily

based on the present value of expected future cash flows.
A reasonably possible change in the discount rate is not
estimated to affect the group’s profit or equity signifi-
cantly.
Note 18 Financial risks, etc.

Table 18.1 Next interest rate fixing Table 18.1 Currency risk
Borrowings by interest rate levels Carrying 0-1 1-5 5- The group’s activities expose it to a variety of financial risks: The group’s currency risk relates to the fact that while in-
inclusive of interest rate swaps amount year years years • Market risks, i.e. currency risk and interest rate risk come from Ocean activities is denominated mainly in USD,
• Credit risk the related expenses are incurred in both USD and a wide
2019 • Liquidity risk range of other currencies such as EUR, DKK, HKD, SGD and
0-3% 1,829 1,342 - 487 CAD. As the net income is in USD, this is also the primary
3-6% 13,994 5,038 4,673 4,283 The group’s overall risk management programme focuses financing currency. Income and expenses from other
6%- 930 106 253 571 on the unpredictability of financial markets and seeks activities, including Terminals & Towage, are mainly de-
Total 16,753 6,486 4,926 5,341 to minimise the potential adverse effects on the group’s nominated in local currencies, thus reducing the group’s
financial performance. The group uses derivative financial exposure to these currencies.
Of which: instruments to hedge certain risk exposures.
Bearing fixed interest 11,584 The main purpose of hedging the group’s currency risk is
Bearing floating interest 5,169 Risk management is carried out by a central finance to hedge the USD value of the group’s net cash flow and
department under policies approved by the Board of reduce fluctuations in the group’s profit. The group uses
2018
Directors. The finance department identifies, evaluates various financial derivatives, including forwards, option
0-3% 209 163 39 7
and hedges financial risks in close cooperation with the contracts and cross-currency swaps, to hedge these risks.
3-6% 10,567 5,606 3,262 1,699
group’s entities. The key aspects of the currency hedging policy are as
6%- 1,112 21 431 660
follows:
Total 11,888 5,790 3,732 2,366
Market risk • Net cash flows in other significant currencies than
Market risk is the risk that changes in market prices, such USD are hedged using a layered model with a
Of which:
as foreign exchange rates, interest rates and share price, 12-month horizon;
Bearing fixed interest 6,528
will affect the group’s profit or the value of its holdings • Significant capital commitments or divestments in
Bearing floating interest 5,360
of financial instruments. The sensitivity analyses below other currencies than USD are hedged;
relate to the position of financial instruments as at • Most non-USD debt is hedged, however, depending
31 December 2019. on the asset-liability match and the currency of the
generated cash flow.
The sensitivity analyses for currency risk, interest rate
risk and share price risk have been prepared on the basis An increase in the USD exchange rate of 10% against
that the amount of net debt, the ratio of fixed to floating all significant currencies to which the group is exposed
interest rates of the debt, and the proportion of financial is estimated to have a positive impact on the group’s
instruments in foreign currencies remain unchanged from profit before tax by USD 0.2bn (negative USD 0.1bn) and
hedge designations in place at 31 December 2019. Further- to affect the group’s equity, excluding tax, by USD 0.0bn
more, it is assumed that the exchange rate, interest rate (negatively by USD 0.3bn). The sensitivities are based
and share price sensitivities have a symmetric impact, i.e. only on the impact of financial instruments that are
an increase in rates results in the same absolute movement outstanding at the balance sheet date, cf. notes 16 and
as a decrease in rates. 17, and are thus not an expression of the group’s total
currency risk.
The sensitivity analyses show the effect on profit or loss
and equity of a reasonably possible change in exchange
rates, interest rates and share price.
Note 18 Financial risks, etc. – continued

Table 18.2 Interest rate risk Table 18.4
Maturity analysis of trade receivables 2019 2018 The group has most of its debt denominated in USD, but Other financial assets at amortised cost
part of the debt (e.g. issued bonds) is in other currencies Other financial assets at amortised cost comprise loan
Receivables not due 2,431 2,501 such as EUR, NOK, GBP and JPY. The group strives to receivables, finance lease receivables and other receiva-
Less than 90 days overdue 1,020 1,152 maintain a combination of fixed and floating interest bles. These financial assets are considered to have low
91-365 days overdue 150 246 rates on its net debt, reflecting expectations and risks. credit risk, and thus the impairment provision calculated
More than 1 year overdue 145 185 The hedging of the interest rate risk is governed by a based on 12 months of expected losses is considered
Receivables, gross 3,746 4,084 duration range and is primarily obtained using interest immaterial. The financial assets are considered to be low
Provision for bad debt 215 269 rate swaps. The duration of the group’s debt portfolio is risk when they have a low risk of default, and the issuer
Carrying amount 3,531 3,815 2.2 (2.2) excluding IFRS 16 leases. A general increase in has a strong capacity to meet its contractual cash flow
interest rates by one percentage point is estimated, all obligations in the near term.
else being equal, to affect profit before tax and equity,
excluding tax effect, positively by approx. USD 11m and Liquidity risk
The loss allowance provision for trade receivables as at 31 December 2019 reconciles to the opening loss negatively USD 14, respectively (negatively by approx. The group’s objective is to maintain a liquidity profile
allowance as follows: USD 16m and USD 18m, respectively). in line with an investment grade credit rating. Capital is
managed for the group. The equity share of total equity
Table 18.3 This analysis assumes that all other variables, in particular and liabilities was 52.0% at the end of 2019 (59.0%).
foreign currency rates, remain constant.
Change in provision for bad debt 2019 2018
In addition to the liquidity reserve, the group has USD
1 January 269 280 Table 18.2 and Table 18.3 0.0bn undrawn committed loans which are dedicated to
Provision made 217 194 Credit risk financing of specific assets, part of which will therefore
Amount used 149 117 Trade receivables only become available at certain times in the future.
Amount reversed 121 86 The group has exposure to financial and commercial
Exchange rate adjustment and others -1 -2 counterparties but has no particular concentration of Based on the liquidity reserve, loans for the financing of
31 December 215 269 customers or suppliers. To minimise the credit risk, finan- specific assets, the maturity of outstanding loans, and the
cial vetting is undertaken for all major customers and current investment profile, the group’s financial resources
financial institutions, adequate security is required for are deemed satisfactory.
commercial counterparties, and credit limits are set for
financial institutions and key commercial counterparties. The average term to maturity of loan facilities in the group
Table 18.4 2019 2018
was about five years (about four years at 31 December
Borrowings 16,753 11,888 A.P. Møller - Mærsk A/S applies the simplified approach to 2018).
Net interest-bearing debt 11,662 8,730 providing the expected credit losses prescribed by IFRS 9,
which permits the use of the lifetime expected loss pro- 1 Liquidity reserve is defined as undrawn committed
Liquidity reserve¹ 10,485 10,296 vision for all trade receivables. To measure the expected revolving facilities with more than one year to expiry,
credit losses, trade receivables have been grouped based securities and cash and bank balances, excluding
on shared credit risk characteristics and the days past securities and balances in countries with exchange
due. In accordance with IFRS 9, non-due trade receivables control or other restrictions.
have also been impaired.
Approx. 67% (69%) of the provision for bad debt is related

to trade receivables overdue by more than one year.

Table 18.5 Cash flows including interest Table 18.5 The flexibility of the financial reserve is subject to ongoing
Carrying 0-1 1-5 5- Total It is of great importance for the group to maintain a prioritisation and optimisation, among other things by
Maturities of liabilities and commitments amount year years years financial reserve to cover the group’s obligations and focusing on the release of capital and following up on
investment opportunities and to provide the capital the development in working capital.
2019 necessary to offset changes in the group’s liquidity due
Bank and other credit institutions 3,357 564 2,074 1,291 3,929 to changes in the cash flow from operating activities. 1 Related to continuing operations.
Lease liabilities 8,577 1,725 5,046 5,326 12,097
- hereof interest 444 1,331 1,745 3,520
Issued bonds 4,819 429 2,295 2,901 5,625
Trade payables 5,567 5,567 - - 5,567
Other payables 1,214 1,170 32 12 1,214
Non-derivative financial liabilities 23,534 9,455 9,447 9,530 28,432
Derivatives 415 87 98 230 415
Total recognised in balance sheet 23,949 9,542 9,545 9,760 28,847
Capital commitments¹ 570 531 642 1,743

Total 10,112 10,076 10,402 30,590
2018
Bank and other credit institutions 4,249 1,177 2,902 871 4,950
Lease liabilities 2,266 523 1,565 715 2,803
- hereof interest 115 266 156 537
Issued bonds 5,373 737 2,505 2,892 6,134
Trade payables 5,281 5,281 - - 5,281
Other payables 979 938 32 9 979
Non-derivative financial liabilities 18,148 8,656 7,004 4,487 20,147
Derivatives 363 120 39 204 363
Total recognised in balance sheet 18,511 8,776 7,043 4,691 20,510
Operating lease commitments¹ 2,046 4,690 5,305 12,041

Capital commitments 1,157 346 872 2,375
Total 11,979 12,079 10,868 34,926
Note 19 Commitments – continuing operations

The future charter and operating lease payments are: Table 19.1 Table 19.2, Table 19.3 and Table 19.4
Operating lease commitments The decrease in capital commitments is primarily related
As part of the group’s activities, customary agreements to contractual payments during 2019.
Table 19.1 Ocean¹ Logistics Terminals Manu- Total
are entered into regarding charter and operating leases of
& Services & Towage facturing
Lease commitments & Others² ships, containers, port facilities, etc. From 1 January 2019, USD 53m of the total capital commitments is related to
the group has recognised right-of-use assets for these the newbuilding programme for tugs, at a total contract
2019 leases, except for short-term and low-value leases, see price of USD 62m including owner-furnished equipment.
Within one year 79 23 24 91 217 note 8 for further information. The remaining capital commitments of USD 1.7bn relate
Total 79 23 24 91 217 to investments mainly in hubs and gateway terminals
1 In 2018, about 35% of the time charter payments in within the Ocean and Terminals & Towage segments.
2018 Ocean are estimated to relate to operational costs for
Within one year 1,377 119 245 305 2,046 the assets. In 2019, the short-term and low-value leases The capital commitments will be financed by cash flow
Between one and two years 1,029 92 216 182 1,519 do not include any payment for operational costs. from operating activities as well as existing and new loan
Between two and three years 808 75 208 138 1,229 2 Manufacturing & Others include unallocated and facilities.
Between three and four years 662 59 208 96 1,025 eliminations.
Between four and five years 599 42 199 77 917 3 The net present value has been calculated using
After five years 3,223 175 1,808 99 5,305 a discount rate of 6% in 2018.
Total 7,698 562 2,884 897 12,041
Net present value ³ 5,645 455 1,925 791 8,816
Table 19.2 Ocean Logistics Terminals Manu- Total

& Services & Towage facturing
Capital commitments & Others
2019
Capital commitments relating to the
acquisition of non-current assets 345 12 202 2 561
Commitments towards concession
grantors 269 - 913 - 1,182
Total capital commitments 614 12 1,115 2 1,743
2018
acquisition of non-current assets 726 16 309 83 1,134
Commitments towards concession
grantors 280 - 961 - 1,241
Total capital commitments 1,006 16 1,270 83 2,375
Note 19 Commitments – continuing operations – continued

Table 19.3 No.
Newbuilding programme at 31 December 2019 2020 2021 Total
Tugboats 9 1 10
Total 9 1 10
Table 19.4
newbuilding programme at 31 December 2019 2020 2021 Total
Tugboats 42 11 53
Total 42 11 53
Note 20 Contingent liabilities

Except for customary agreements within the group’s ac- Guarantees of USD 292m have been issued by the group Tax may crystallise on repatriation of dividends. Through
tivities, no material agreements have been entered that to make specific payments if debtors fail to meet their participation in a joint taxation scheme with A.P. Møller
will take effect, change or expire upon changes of the obligations. Holding A/S, the Danish companies are jointly and sever-
control over the company. ally liable for taxes payable, etc. in Denmark.
Maersk Line and APM Terminals have entered into certain
The necessary facility of USD 245m (USD 245m) has been agreements with terminals and port authorities, etc. con-
established to meet the requirements for using US waters taining volume commitments including an extra payment
under the American Oil Pollution Act of 1990 (Certificate in case minimum volumes are not met.
of Financial Responsibility).
The group is involved in a number of legal disputes. The
Custom bonds of USD 484m (USD 444m) have been pro- group is also involved in tax disputes in certain countries.
vided to various port authorities in India. Some of these involve significant amounts and are sub-
ject to considerable uncertainty.
Note 21 Cash flow specifications

Table 21.1 2019 2018 Table 21.1
Other non-cash items related primarily to the adjustment
Change in working capital of provision for bad debt regarding trade receivables.
Trade receivables 195 -25
Other working capital movements 291 -256
Exchange rate adjustment of working capital -10 -58
Total 476 -339
Purchase of intangible assets and property, plant and equipment

Addition -9,757 -3,452
Of which right-of-use assets, etc. 7,989 126
Of which borrowing costs capitalised on assets 23 62
Change in payables to suppliers regarding purchase of assets -290 45
Total -2,035 -3,219
Note 22 Acquisition/sale of subsidiaries and activities

Acquisitions during 2019 Sales during 2019
No acquisitions of subsidiaries or activities, to an extent No material external sales were performed during 2019.
of significance to the group, were completed in 2019.
Sales during 2018
Acquisitions during 2018 No material external sales were performed during 2018.
Hamburg Südamerikanische Dampfschifffahrts-
Gesellschaft KG (Hamburg Süd)
In Q4 2018, the provisional purchase price allocation re-
garding Hamburg Süd, prepared at closing 30 November
2017 was finalised, resulting in a reduction of the calcu-
lated goodwill by USD 72m to USD 316m. The changes
were primarily related to working capital balances.
Note 23 Related parties

Table 23.1 Controlling parties Associated companies Joint ventures Management ¹ Table 23.1
2019 2018 2019 2018 2019 2018 2019 2018 Joint usage agreement with A.P. Møller Holding A/S
With the objective of further strengthening the value
Income statement of the brands, A.P. Møller - Mærsk A/S in 2018 entered
Revenue 41 55 35 41 114 105 - - into a joint usage agreement with A.P. Møller Holding A/S
Operating costs 19 4 524 286 550 803 8² 9² regarding the use of commonly used trademarks which
Remuneration to management - - - - - - 27 25 historically have benefited both A.P. Møller - Mærsk A/S
Financial income 10 22 - - - - - - and A.P. Møller Holding A/S. A.P. Møller Holding A/S is the
Other - 1 - - 1 1 - - controlling shareholder of A.P. Møller - Mærsk A/S and is
wholly owned by A.P. Møller og Hustru Chastine Mc-Kinney
Assets Møllers Fond til almene Formaal. The joint usage agree-
Other receivables, non-current 27 7 - - 124 166 - - ment establishes a framework and a branding strategy for
Trade receivables 16 38 21 36 15 31 - - the commonly used trademarks and a joint brand board,
Other receivables, current 19 6 39 44 40 11 - - where the parties can cooperate regarding the use of
Cash and bank balances 736 78 - - - - - - these trademarks.
Liabilities A.P. Møller Holding A/S, Copenhagen, Denmark has control

Bank and other credit institutions, etc., current - - - - 30 25 - - over the company and prepares consolidated financial
Trade payables 1 - 71 34 75 111 1 1 statements. A.P. Møller og Hustru Chastine Mc-Kinney
Other 45 31 - - - - - - Møllers Fond til almene Formaal is the ultimate owner.
Purchase of property, plant and equipment, etc. - - - - - - - - Dividends distributed are not included.
Sale of companies, property, plant and equipment, etc. - - - - - - - -
1 The Board of Directors and the Executive Board
Capital increase - - - 34 13 11 - - in A.P. Møller - Mærsk A/S, A.P. Møller Holding A/S,
Dividends - 1 92 70 156 123 - - A.P. Møller og Hustru Chastine Mc-Kinney Møllers Fond
til almene Formaal and their close relatives (including
undertakings under their significant influence). Trade
receivables and payables include customary business-
related accounts in connection with shipping activities.
2 Includes commission and commercial receivables to
Maersk Broker K/S from chartering as well as purchase
and sale of ships.
Note 24 Significant accounting policies

Basis of preparation Lease liabilities classified as finance leases at 31 December On transition, A.P. Moller - Maersk’s opening balance of IBOR interest rates on which our hedged debts are
The consolidated financial statements for 2019 for 2018 were transitioned to IFRS 16 at their carrying amount gross debt increased by USD 6.2bn to USD 18.1bn, while based do not change as a result of the IBOR reform.
A.P. Moller - Maersk have been prepared on a going of USD 2.3bn. property, plant and equipment increased to USD 39.9bn. • In assessing whether an economic relationship be-
concern basis and in accordance with the International The increase in property, plant and equipment of USD tween the hedged cash flows and the hedging instru-
Financial Reporting Standards (IFRS) as adopted by the At 31 December 2018, A.P. Moller - Maersk had non- 6.2bn mainly related to ships, container, etc. (USD 3.1bn) ments is expected to exist throughout the term of
EU, and additional Danish disclosure requirements for cancellable operating lease commitments of USD 12.0bn. and concession agreements (USD 2.4bn). hedge, A.P. Moller - Maersk has assumed that the IBOR
listed companies. The consolidated financial statements As part of the transition, A.P. Moller - Maersk applied interest rates on which the cash flows of the hedged
are also in accordance with IFRS as issued by the Inter- the following adjustments before discounting lease pay- In connection with the transition to the new standard, debt and the interest rate swaps that hedge it are
national Accounting Standards Board (IASB). ments: management has applied judgement and formed assump- based are not altered by IBOR reform.
• Service components included in the pricing of vessel tions in relation to assessing the incremental borrowing • Whether the benchmark interest component in a fair
The consolidated financial statements of charter fees are not included as part of the lease rate, service components and extension options of leasing value hedge is a separately identifiable component is
A.P. Moller - Maersk are included in the consolidated liability. These costs are recognised in the income arrangements. Management has formed its judgements not assessed on an ongoing basis.
financial statements of A.P. Møller Holding A/S. statement as incurred. and assumptions based on historical experience, internal • A.P. Moller - Maersk will not discontinue hedge account-
• Terminal concession agreements to which and external data points. ing during the period of IBOR-related uncertainty as the
The accounting policies are consistent with those A.P. Moller - Maersk is committed, but which will only hedge relationships are still economic relationships.
applied in the consolidated financial statements for 2018, begin operations during Q1 2019 or later were not capi- Uncertainty over income tax treatments (IFRIC 23) • A.P. Moller - Maersk has not recycled the cash flow
except for the changes to the accounting standards that talised at transition. A.P. Moller - Maersk follows the guidelines in IFRIC 23 for hedge reserve relation to the period after the reforms
were effective from 1 January 2019 and were endorsed • A.P. Moller - Maersk did not apply the new standard to accounting for uncertain income tax positions and the are expected to take effect.
by the EU: leases with a remaining term of 12 months or less from implementation of the interpretation standard has not • There is no ineffectiveness recognised in profit or loss
• Leases (IFRS 16) 1 January 2019. Additionally, leases with maximum resulted in a significant change to the measurement of as a result of the early adoption of the amendments
• Uncertainty over income tax treatments (IFRIC 23). lease term less than 12 months are exempted from recognised uncertain tax positions. to IFRS 9 and IFRS 7.
provisions of the new standard.
Leases (IFRS 16) Following the application of IFRIC 23, A.P. Moller - Maersk The IBOR’s that A.P. Moller - Maersk is affected by are:
Effective 1 January 2019, A.P. Moller - Maersk applied the The table below bridges operating lease commitments presents uncertain tax positions as either non-current or USD LIBOR, GBP LIBOR, JPY LIBOR, EURIBOR, NIBOR and
new reporting standard on Leases, IFRS 16. All leases are related to continuing operations to IFRS 16 lease liabilities current tax payables. The 2018 ending balances have been STIBOR.
recognised as right-of-use assets with corresponding on 1 January 2019: restated by USD 410m from provisions to tax liabilities.
lease liabilities at the date on which the leased asset is Consolidation
available for use by A.P. Moller - Maersk. Reconciliation of commitments to lease liability (USDm) Interest rate benchmark reform The consolidated financial statements comprise the par-
(Amendments to IFRS 9, IAS 39 & IFRS 7) ent company A.P. Møller - Mærsk A/S, its subsidiaries and
Each lease payment is allocated between a reduction Operating lease obligations A.P. Moller - Maersk has elected to early adopt the proportionate shares in joint arrangements classified as
(continuing operations) 12,041
of the liability and an interest expense. The interest ex- amendments to IFRS 9, IAS 39 and IFRS 7, ‘Interest Rate joint operations.
Adjustment for commitments not yet
pense is charged to the income statement over the lease Benchmark Reform‘. The transition provisions require that
commenced -2,240
period to produce a constant periodic rate of interest the amendments are adopted retrospectively to hedging Subsidiaries are entities controlled by
Adjustments for service components -1,266
on the remaining balance of the liability for each period. relationships that existed at the start of the reporting A.P. Møller - Mærsk A/S. Control is based on the power
Optional period payments 758
The right-of-use asset is depreciated over the shorter of period or were designated thereafter, and to the amount to direct the relevant activities of an entity and the
Other adjustments -283
the asset’s useful life and the lease term on a straight- accumulated in the cash flow reserve at that date. The exposure, or right, to variable returns arising from it.
Undiscounted lease liabilities 9,010
line basis. reliefs specify that the IBOR reform should not generally In that connection, relevant activities are those that
Discounting effect -2,765
cause hedge accounting to terminate. Hence there are significantly affect the investee’s returns. Control is
Lease liability 6,245
A.P. Moller - Maersk transitioned to IFRS 16 in accordance reliefs in the amendments that apply to the hedging usually achieved by directly or indirectly owning or in
with the modified retrospective approach, therefore relationships directly affected by the IBOR reform. other ways controlling more than 50% of the voting
previous period comparative figures are not adjusted A weighted average incremental borrowing rate of 6.6% rights or by other rights, such as agreements on manage-
in the financial statements. Additionally, the IAS 17 was applied. The incremental borrowing rate was based In summary, the reliefs provided by the amendments ment control.
definition of a lease and its related interpretations on reference interest rates derived for a period up to 10 that apply to A.P. Moller - Maersk are:
have been retained. years based on corporate bond yields in major curren- • When considering the ‘highly probable‘ requirement, Joint arrangements are entities in which
cies, i.e. USD, EUR and SEK. A.P. Moller - Maersk has assumed that the different A.P. Moller - Maersk, according to contractual agree-
Note 24 Significant accounting policies – continued

ments with one or more other parties, has joint control. The functional currency varies from business area The reportable segments comprise: Trade Finance, a function providing export finance solu-
The arrangements are classified as joint ventures, if the to business area. For A.P. Moller - Maersk’s principal tions, post-shipment and import finance solutions.
contracting parties’ rights are limited to net assets in shipping activities, the functional currency is typically Ocean
the separate legal entities, and as joint operations, if the USD. This means, among other things, that the carrying Ocean activities, defined as operating activities under Star Air activities, operating cargo aircraft on behalf
parties have direct and unlimited rights to the assets and amounts of property, plant and equipment and intan- Maersk Line, Safmarine, Sealand – A Maersk Company of UPS.
obligations for the liabilities of the arrangement. gible assets and, hence, depreciation and amortisation, and Hamburg Süd brands with Ocean container freight
are maintained in USD from the date of acquisition. For being the main revenue stream. Ocean container freight Terminals & Towage
Entities in which A.P. Moller - Maersk exercises a sig- other activities, including container terminal activities is defined as the cost-per-weight measure of transport- Terminals activities, defined as operating activities in ports
nificant but non-controlling influence are considered and land-based container activities, the functional ing goods on board a container vessel across the ocean, fully or partially controlled by the APM Terminals brand,
associated companies. A significant influence is usually currency is generally the local currency of the country including demurrage and detention, terminal handling, with the main revenue stream being port activities not
achieved by directly or indirectly owning or controlling in which such activities are performed, unless circum- documentation services, container services as well as considered a hub activity as described above.
20-50% of the voting rights. Agreements and other cir- stances suggest a different currency is appropriate. The container storage.
cumstances are considered when assessing the degree functional currency of oil and oil-related business within Towage activities, defined as all operating activities under
of influence. discontinued operations is USD. Hub activities, defined as operating activities under the the Svitzer brand, a provider of offshore towage and sal-
APM Terminals brand generating revenue by providing vage services.
Consolidation is performed by summarising the Transactions in currencies other than the functional cur- port services only in major transhipment ports such as
financial statements of the parent company and its rency are translated at the exchange rate prevailing at the Rotterdam, Maasvlakte-II, Algeciras, Tangier, Tangier- Manufacturing & Others
subsidiaries, including the proportionate share of joint date of the transaction. Monetary items in foreign curren- Med II, Port Said, and joint ventures in Salalah, Tanjung Maersk Container Industry, a container manufacturer that
operations, which have been prepared in accordance cies not settled at the balance sheet date are translated Pelepas and Bremerhaven. The respective terminals are produces reefer containers.
with A.P. Moller - Maersk’s accounting policies. Intra- at the exchange rate as at the balance sheet date. Foreign included under the Ocean segment, as the primary pur-
group income and expenses, shareholdings, dividends, exchange gains and losses are included in the income pose of those ports is to provide transhipment services Maersk Supply Service provides marine services and in-
intra-group balances and gains on intra-group transac- statement as financial income or expenses. to Maersk’s Ocean business, whereas third-party vol- tegrated solutions to the energy sector worldwide with
tions are eliminated. Unrealised gains on transactions umes sold in those locations are considered secondary. a large fleet of anchor handling tug supply vessels and
with associated companies and joint arrangements are Segment information subsea support vessels.
eliminated in proportion to A.P. Moller - Maersk’s owner- The allocation of business activities into segments re- Logistics & Services
ship share. Unrealised losses are eliminated in the same flects A.P. Moller - Maersk’s character as an integrated Damco activities, defined as all operating activities under Maersk Oil Trading is dedicated to sourcing marine fuels
way, unless they indicate impairment. container logistics business and is in line with the internal the Damco brand, a provider of logistics, freight forward- and lubricants for A.P. Moller - Maersk’s fleet in addition
management reporting. The reportable segments are ing and supply chain management services. to refinery activities and sales to external parties includ-
Non-controlling interests’ share of profit/loss for the as follows: ing Maersk Tankers.
year and of equity in subsidiaries is included as part of Inland haulage activities (intermodal), defined as all
A.P. Moller - Maersk’s profit and equity respectively but operating activities under Maersk Line, Safmarine, Hamburg Süd tramp activity, bulk and tanker activity
Ocean Global container shipping activities
shown as separate items. including strategic transhipment hubs Sealand – A Maersk Company brands with the main acquired as part of the Hamburg Süd acquisition.
stream of revenue deriving from the transportation of
Foreign currency translation Logistics Freight forwarding, supply chain containers from vendors (shippers) to the port of ship- Other businesses, consisting of Maersk Training, a provider
& Services management, inland haulage and
The consolidated financial statements are presented in ment, and from discharge port to the point of stripping of training services to the maritime, oil and gas, offshore
other logistic services
USD, the functional currency of the parent company. In (consignee) by truck and/or rail. Inland haulage activities wind and crane industries.
the translation to the presentation currency for subsid- Terminals Gateway terminal activities, towage operating under the Hamburg Süd brand are still part
iaries, associates or joint arrangements with functional & Towage and related marine activities of the Ocean activity. The reportable segments do not comprise costs in
currencies other than USD, the total comprehensive A.P. Moller - Maersk’s corporate functions. These func-
Manufacturing Production of reefer and dry containers,
income is translated into USD at average exchange rates, & Others trading and sale of bunker oil and other APM Terminals inland activities, defined as operating tions are reported as unallocated items.
and the balance sheet is translated at the exchange rates businesses activities in inland activities facilities fully or partially
as at the balance sheet date. Exchange rate differences controlled by APM Terminals, with the main revenue Revenue between segments is limited, except for the
arising from such translations are recognised directly in stream being inland services such as full container Terminals & Towage segment, where a large part of the
other comprehensive income and in a separate reserve Operating segments have not been aggregated. storage, bonded warehousing, empty depot, local trans- services is delivered to the Ocean segment as well as the
of equity. portation, etc. sale of containers from Maersk Container Industry to the

Ocean segment. Sales of products and services between of corporation tax, withholding tax of dividends, etc. In lives of the assets. Intangible assets regarding acquired The cost of assets constructed by A.P. Moller - Maersk
segments are based on market terms. addition, tax comprises tonnage tax. Tonnage tax is clas- customer relationships and brand names are amortised includes directly attributable expenses. For assets with a
sified as tax when creditable in, or paid in lieu of, income over a useful life of 15 and 20 years, respectively. IT soft- long construction period, borrowing costs during the con-
Income statement tax. Tax is recognised in the income statement to the ex- ware is amortised over a useful life of 3-5 years. struction period from specific as well as general borrow-
Revenue for all businesses is recognised when the perfor- tent it arises from items recognised in the income state- ings are attributed to cost. In addition, the cost includes
mance obligation has been satisfied, which happens upon ment, including tax on gains on intra-group transactions For container terminals operated under certain restrictive the net present value of estimated costs of removal and
the transfer of control to the customer at an amount that that have been eliminated in the consolidation. price and service conditions, etc., concessional rights restoration.
reflects the consideration to which the group expects to to collect usage charges are included under intangible
be entitled in exchange for the goods and services. Earnings per share are calculated as assets. The cost includes the present value of minimum Right-of-use assets: The group mainly leases vessels, con-
A.P. Møller - Mærsk A/S’ share of the profit/loss for the payments under concession agreements and the cost of tainers, concessions arrangements and real estate prop-
Revenue from shipping activities is recognised over year divided by the number of shares (of DKK 1,000 each), property, plant and equipment constructed on behalf of erty. Lease contracts for vessels and containers are typ-
time as the performance obligation is satisfied, includ- excluding A.P. Moller - Maersk’s holding of own shares. a grantor of a concession. The rights are amortised from ically made for fixed periods of about five years but may
ing a share of revenue from incomplete voyages at Diluted earnings per share are adjusted for the dilution the commencement of operations over the concession have extension options as described below. Concession
the balance sheet date. Invoiced revenue related to an effect of share-based compensation issued by the parent period. arrangements and real estate contracts are negotiated on
estimated proportion of remaining voyage time and ac- company. an individual basis and contain a wide range of terms and
tivities at the destination port is deferred. Detention and Property, plant and equipment are valued at cost less conditions.
demurrage fees are recognised over time up until the Statement of comprehensive income accumulated depreciation and impairment losses.
time of the customer’s late return or pick-up of contain- Other comprehensive income consists of gains and losses Depreciation is charged to the income statement on a Leases are recognised as a right-of-use asset with a cor-
ers. Retrospective volume rebates provided to certain not recognised in the income statement, including ex- straight-line basis over the useful lives at an estimated responding lease liability at the date on which the leased
customers which give rise to variable consideration are change rate adjustments arising from the translation residual value. The useful lives of new assets are typically asset is available for use by the group. The right-of-use
based on the expected value method and allocated to from functional currency to presentation currency, as follows: asset is depreciated over the shorter of the asset’s useful
ocean freight revenue. fair value adjustments of other equity investments (at life and the lease term on a straight-line basis.
FVOCI), cash flow hedges, forward points and currency Ships, etc. 20-25 years
Revenue from terminal operations and towing activities basis spread as well as actuarial gains/losses on defined Intercompany leases will continue to be presented
is recognised upon completion of the service. In container benefit plans, etc. A.P. Moller - Maersk’s share of other Containers, etc. 12 years according to IFRS 8 - Segment Reporting, as operating
terminals operated under certain restrictive terms of comprehensive income in associated companies and joint leases in accordance with the old lease standard, IAS 17.
Buildings 10-50 years
pricing and service, etc., the value of tangible assets con- ventures is also included.
structed on behalf of the concession grantor is recognised Terminal infrastructure 10-20 years or Impairment losses are recognised when the carrying
as revenue during the construction. On disposal or discontinuation of an entity, concession period, amount of an asset or a cash-generating unit exceeds the
A.P. Moller - Maersk’s share of the accumulated ex- if shorter higher of the estimated value in use and fair value less
Revenue from most freight forwarding activities is recog- change rate adjustment relating to the relevant entity costs of disposal. Goodwill is attributed to cash-generat-
Plant and machinery, cranes
nised over time. with a non-USD functional currency is reclassified to and other terminal equipment 5-20 years ing units on acquisition and impaired before other assets.
the income statement. Accumulated value adjustments
Revenue from the sale of goods is recognised upon the of equity instruments classified as equity instruments Other operating equipment, Intangible assets and property, plant and equipment are
transfer of control to the buyer. at fair value through other comprehensive income will fixtures, etc. 3-7 years tested for impairment if there is an indication of impair-
remain in equity upon disposal. ment. However, annual impairment tests are carried out for
Share of profit/loss in associated companies and joint ven- Estimated useful lives and residual values are reassessed goodwill and other intangible assets with indefinite useful
tures is recognised net of tax and corrected for the share Other comprehensive income includes current and de- on a regular basis. lives as well as intangible assets that are not yet in use.
of unrealised intra-group gains and losses. The item also ferred income tax to the extent that the items recognised
comprises any impairment losses for such investments in other comprehensive income are taxable or deductible. The cost of an asset is divided into separate compo- Assets are held for sale, when the carrying amount of an
and their reversal. nents, which are depreciated separately if the useful individual non-current asset, or disposal groups, will be
Balance sheet lives of the individual components differ. Dry-docking recovered principally through a sale transaction rather
Tax comprises an estimate of current and deferred in- Intangible assets are measured at cost less accumulated costs are recognised in the carrying amount of ships than through continuing use. Assets are classified as
come tax as well as adjustments to previous years of amortisation and impairment losses. Amortisation is cal- when incurred and depreciated over the period until the held for sale when activities to carry out a sale have been
those. Income tax is tax on taxable profits, and consists culated on a straight-line basis over the estimated useful next dry-docking. initiated, when the activities are available for immediate

sale in their present condition and when the activities are a provision matrix to calculate the minimum impairment. certain insurance programmes, primarily in the US. Provi- are measured at amortised cost using the effective inter-
expected to be disposed of within 12 months. Liabilities The provision matrix includes an impairment for non-due sions are recognised based on best estimates and are dis- est method, whereby transaction costs and any premium
directly associated with assets held for sale are presented receivables. counted where the time element is significant and where or discount are recognised as financial expenses over
separately from other liabilities. the time of settlement is reasonably determinable. the term of the liabilities. Fixed interest loans subject to
Equity includes total comprehensive income for the year fair value hedge accounting are measured at amortised
Assets held for sale are measured at the lower of carrying comprising the profit/loss for the year and other com- Pension obligations are the net liabilities of defined ben- cost with an adjustment for the fair value of the hedged
amount immediately before classification as held for sale prehensive income. Proceeds on the purchase and sale of efit obligations and the dedicated assets adjusted for interest component. Liabilities in respect of finance leases
and fair value less costs to sell, and impairment tests are own shares and dividend from such shares are recognised the effect of minimum funding and asset ceiling require- are measured at the interest rate implicit in the lease, if
performed immediately before classification as held for in equity. ments. Plans with a funding surplus are presented as net practicable to determine, or else at A.P. Moller - Maersk’s
sale. Non-current assets are not depreciated or amortised assets on the balance sheet. The defined benefit obliga- incremental borrowing rate.
while classified as held for sale. Measurement of deferred The translation reserve comprises A.P. Moller - Maersk’s tions are measured at the present value of expected fu-
tax and financial assets and liabilities is unchanged. share of accumulated exchange rate differences arising ture payments to be made in respect of services provided Lease liabilities are initially measured at the present value
on translation from functional currency into presentation by employees up to the balance sheet date. Plan assets of the lease payments over the lease term, discounted
Investments in associated companies and joint ventures are currency. The reserve for other equity investments com- are measured at fair value. The pension cost charged to using the incremental borrowing rate.
recognised as A.P. Moller - Maersk’s share of the equity prises accumulated changes in the fair value of equity the income statement consists of calculated amounts
value inclusive of goodwill less any impairment losses. investments (at FVOCI), net of tax. Reserve for hedges for vested benefits and interest in addition to settlement The following lease payments are included in the net
Goodwill is an integral part of the value of associated includes the accumulated fair value of derivatives quali- gains or losses, etc. Interest on plan assets is calculated present value:
companies and joint ventures and is therefore subject fying for cash flow hedge accounting, net of tax as well as with the same rates as used for discounting the obliga- • fixed payments (including in-substance fixed pay-
to an impairment test together with the investment as forward points and currency basis spread. tions. Actuarial gains/losses are recognised in other com- ments), less any lease incentives receivable
a whole. Impairment losses are reversed to the extent prehensive income. • variable lease payment that are based on an index
the original value is considered recoverable. Equity-settled performance shares, restricted shares or a rate
and share options allocated to the employees of Pension plans where A.P. Moller - Maersk, as part of • amounts expected to be payable by the lessee under
Equity instruments, etc., including shares, bonds and sim- A.P. Moller - Maersk as part of A.P. Moller - Maersk’s collective bargaining agreements, participates together residual value guarantees
ilar securities, are recognised on the trading date at fair long-term incentive programme are recognised as staff with other enterprises – so-called multi-employer plans • the exercise price of a purchase option if the lessee is
value, and subsequently measured at the quoted market costs over the vesting period at estimated fair value at – are treated as other pension plans in the financial reasonably certain to exercise that option, and pay-
price for listed securities and at estimated fair value for the grant date and a corresponding adjustment in equity. statements. For defined benefit multi-employer plans, ments of penalties for terminating the lease, if the
non-listed securities. Fair value adjustments from equity Cash-settled performance awards allocated to employees where sufficient information to apply defined benefit lease term reflects the lessee exercising that option.
investments at fair value through other comprehensive below executive levels as part of A.P. Moller - Maersk’s accounting is not available, the plans are treated as de-
income (FVOCI) remain in equity upon disposal. Dividends long-term incentive programme is recognised as staff fined contribution plans. Payments associated with short-term leases and leases
are recognised in the income statement. costs over the vesting period and a corresponding adjust- of low-value assets are recognised on a straight-line basis
ment in other payables. Deferred tax is calculated on temporary differences be- as an expense in profit or loss.
Inventories mainly consist of bunkers, containers (manu- tween the carrying amounts and tax bases of assets and
facturing), spare parts not qualifying for property, plant At the end of each reporting period, A.P. Moller - Maersk liabilities. Deferred tax is not recognised for differences Extension and termination options in lease contracts
and equipment and other consumables. Inventories are revises its estimates of the number of awards that are on the initial recognition of assets or liabilities, where at are included in those contracts A.P. Moller - Maersk will
measured at cost, primarily according to the FIFO method. expected to vest based on the non-market vesting condi- the time of the transaction neither accounting nor taxable probably exercise those options. These terms are used
The cost of finished goods and work in progress includes tions and service conditions. Any impact of the revision is profit/loss is affected, unless the differences arise in a to maximise operational flexibility in terms of managing
direct and indirect production costs. recognised in the income statement with a corresponding business combination. In addition, no deferred tax is rec- contracts. In determining the lease term, management
adjustment to equity and other payables. ognised for undistributed earnings in subsidiaries, when considers all facts and circumstances that create an
Loans and receivables are initially recognised at fair value, A.P. Moller - Maersk controls the timing of dividends, and economic incentive to exercise an extension option, or
plus any direct transaction costs, and subsequently Provisions are recognised when A.P. Moller - Maersk has a no taxable dividends are currently expected. A deferred not exercise a termination option. Extension options (or
measured at amortised cost using the effective interest present legal or constructive obligation from past events. tax asset is recognised to the extent it is probable that it periods after termination options) are only included in
method. For loans and other receivables, write-down is The item includes, among other things, legal disputes, can be utilised within a foreseeable future. the lease term if the lease is reasonably certain to be
made for anticipated losses based on specific individual provisions for onerous contracts, unfavourable contracts extended (or not terminated). Most of the extension
or group assessments. For trade receivables, the loss al- acquired as part of a business combination as well as pro- Financial liabilities are initially recognised at fair value less and termination options held, are exercisable only by
lowance is measured in accordance with IFRS 9 applying visions for incurred, but not yet reported, incidents under transaction costs. Subsequently, the financial liabilities A.P. Moller - Maersk and not by the respective lessor.

The assessment is reviewed if a significant event or a to the items under which the hedged transactions are any subsequent changes to contingent consideration are In addition to the above general accounting policies, the
significant change in circumstances occurs which affects recognised. The effective portion of changes in the value recognised as other income or other costs in the income following are significant about discontinued operations.
this assessment and that is within the control of the of derivative financial instruments used to hedge the statement. Transaction costs are recognised as operating For drilling activities, revenue is recognised in accordance
lessee. Where A.P. Moller - Maersk will probably exercise value of recognised financial assets and liabilities is rec- costs as they are incurred. with the agreed day rates for the work performed to
specific purchase options, those options are included in ognised in the income statement together with changes date. Compensations received, or receivable, for early
the measurement of the lease liability with corresponding in the fair value of the hedged assets or liabilities that When A.P. Moller - Maersk ceases to have control of termination are recognised as revenue with deferral of
right-of-use asset depreciated over the asset’s useful life can be attributed to the hedging relationship. Currency a subsidiary, the value of any retained investment is an estimated value of any obligations to stand ready for
rather than lease term. basis spread, and forward points are considered a cost re-measured at fair value, and the value adjustment is new engagements in the remaining contract period.
of hedging and deferred in equity. recognised in the income statement as a gain (or loss) on
Lease payments are discounted at the implicit interest the sale of non-current assets. The difference between Oil and gas revenue are recognised as revenue upon dis-
rate, to the extent this can be determined, otherwise The ineffective portion of hedge transactions and sales proceeds and the carrying amount of the subsidiary charge from the production site, reflecting the production
discounted using incremental borrowing rates (IBRs). changes in the fair values of derivative financial instru- is recognised in the income statement including fair value entitlement quantities. In agreements where tax is settled
A.P. Moller Maersk’s IBR reflects the group’s credit ments, which do not qualify for hedge accounting, are of contingent consideration at the time of sale. Contin- in oil, an amount corresponding to the sales value is rec-
risk, leased amount and contract duration; nature and recognised in the income statement as financial income gent consideration is re-measured at fair value with ognised as both revenue and tax.
quality of the asset’s security and economic environ- or expenses for interest and currency-based instruments, changes recognised in the income statement.
ment in which the leased assets operate. To determine and as other income/costs for oil price hedges and for- Income tax also consists of oil tax based on gross meas-
the IBR, where possible, A.P. Moller - Maersk uses reward freight agreements. The effect of the purchase and sale of non-controlling ures. Oil tax on gross measures is a special tax in certain
cent third-party financing received by the individual interests without changes in control is included directly countries on the production of hydrocarbons and is sepa-
lessee as a starting point, with adjustments to reflect Cash flow statement in equity. rately disclosed within tax.
changes in financing conditions since that financing Cash flow from operating activities includes all cash
was received. Where such financing is not available, transactions other than cash flows arising from invest- Discontinued operations and assets held for sale Intangible assets regarding acquired oil resources (con-
A.P. Moller - Maersk uses a build-up approach that ments and divestments, received dividends, principal Discontinued operations represent a separate major cession rights, etc.) are amortised over a useful life of
starts with a risk-free interest rate adjusted by credit payments of loans, instalments on finance lease lia- line of business disposed of or in preparation for sale. production until the fields’ expected production periods
risk and specific risks faced by the lessee such as asset bilities, paid and received financial items and equity The results of discontinued operations are presented end – a period of up to 20 years until classification as
type, geographical risks, etc. transactions. Capitalisation of borrowing costs is con- separately in the income statement, and the cash flows assets held for sale.
sidered as a non-cash item, and the actual payments of from discontinued operations are presented separately
Subsequently, the lease liability is measured at amortised these borrowing costs are included in cash flow from in the cash flow statement with restatement of com- In property, plant and equipment, oil production facilities,
cost with each lease payment allocated between the financing. parative figures. where oil is received as payment for the investment (cost
repayment of the liability and financing cost. The finance oil), depreciation generally takes place concurrently with
cost is charged to the income statement over the lease Cash and cash equivalents comprise cash and bank bal- Assets and liabilities held for sale from discontinued op- the receipt of cost oil until classification as assets held
period using the IBR that was used to discount the lease ances net of bank overdrafts where overdraft facilities erations are presented as separate items in the balance for sale.
payments. form an integral part of A.P. Moller - Maersk’s cash man- sheet with no restatement of comparative figures. Elim-
agement. ination between continuing and discontinued operations The cost includes the net present value of estimated
Derivative financial instruments is presented to reflect continuing operations as post-sep- costs of abandonment.
Derivative financial instruments are recognised on the Business combinations and disposal of subsidiaries aration, which entails the elimination of interest, borrow-
trading date and measured at fair value using generally Upon acquisition of new entities, the acquired assets, ing, dividends and capital increases. The useful lives of new assets are 25 years for rigs and
acknowledged valuation techniques based on relevant liabilities and contingent liabilities are measured at fair up to 20 years for oil and gas production facilities, etc. –
observable swap curves and exchange rates. value at the date when control was achieved using the ac- Assets and liabilities from discontinued operations and based on the expected production periods of the fields.
quisition method. Identifiable intangible assets are recog- assets held for sale except financial assets, etc., are
The effective portion of changes in the value of derivative nised if they arise from a contractual right or can other- measured at the lower of carrying amount immediately Provisions include provisions for the abandonment of oil
financial instruments designated to hedge highly probable wise be separately identified. The difference between before classification as held for sale and fair value less fields.
future transactions is recognised in other comprehensive the fair value of the acquisition cost and the fair value of cost to sell, and impairment tests are performed imme-
income until the hedged transactions are realised. At acquired identifiable net assets is recognised as goodwill. diately before classification as held for sale. Non-current
that time, the accumulated gains/losses are transferred Contingent consideration is measured at fair value and assets held for sale are not depreciated.

New financial reporting requirements effective from 1 January 2021, but there is some uncer- The IASB has also issued amendments to IFRS 9,
A.P. Moller - Maersk has not yet adopted the following tainty as to its EU endorsement date. IAS 39 and IFRS 7 that are effective from 1 January
accounting standards/requirements: 2020 and are endorsed by the EU. In December 2019,
• Amendments to IAS 1 and IAS 8: Definition of Material A.P. Moller - Maersk follows most of the guidelines in the A.P. Moller - Maersk has elected to early adopt those
• Amendments to IFRS 3 – Business Combinations: Amendments to IAS 1 and IAS 8, therefore the implemen- amendments.
Definition of a Business tation is not expected to result in a significant change to
• IFRS 17 - Insurance contracts. the presentation of the financial statements.
Amendments to IAS 1 and IAS 8 are effective from IFRS 17: An analysis of the impact is being assessed and
1 January 2020 and are endorsed by the EU. Amend- is expected to be concluded in due course ahead of the
ments to IFRS 3 are also effective from 1 January 2020 implementation date.
and are expected to be endorsed by the EU. IFRS 17 is
Note 25 Significant accounting estimates and judgements

The preparation of the consolidated financial statements forms the basis for recognition or derecognition decisions, Oil prices The determination of cash-generating units differs for
requires management, on an ongoing basis, to make including assessment of control. Another aspect is the The future development in the oil price is an uncertain the various businesses. Ocean operates its fleet of con-
judgements and estimates and form assumptions that measurement uncertainty, where management makes and significant factor impacting accounting estimates tainer vessels, containers and hub terminals in an inte-
affect the reported amounts. Management forms its assumptions about the value of the assets and liabilities across A.P. Moller - Maersk either directly or indirectly. grated network, for which reason the Ocean activities are
judgements and estimates based on historical experience, that are deemed to exist. These assumptions concern Maersk Line is directly impacted by the price of bunker oil, tested for impairment as a single cash-generating unit. In
independent advice and external data points as well as the timing and amount of future cash flows and the risks where the competitive landscape determines the extent addition, the intermodal activities reported under Logistics
in-house specialists and on other factors believed to be inherent in these. to which the development is reflected in the freight rates & Services are included in the Ocean cash-generating
reasonable under the circumstances. charged to the customer. APM Terminals is indirectly unit for impairment testing to apply consistency between
Container freight rates impacted by the oil price as terminals located in oil-pro- the asset base and related cash flows. In Logistics &
In certain areas, the outcome of business plans, including The future development in container freight rates is an ducing countries, e.g. Nigeria, Angola, Egypt, Russia and Services, apart from intermodal, each entity is defined as
ongoing negotiations with external parties to execute uncertain and significant factor impacting especially Brazil, are indirectly impacted by the development in oil a cash-generating unit. In gateway terminals, each termi-
those plans or to settle claims that are raised against Maersk Line, whose financial results are directly affected prices and the consequences on the countries’ economies, nal is considered individually in impairment tests, except
A.P. Moller - Maersk, is highly uncertain. Therefore, as- by fluctuations in container freight rates. Freight rates are which not only affect volume handled in the terminals, when the capacity is managed as a portfolio, which is the
sumptions may change, or the outcome may differ in the influenced by the global economic environment and trade but also exchange rates. case for certain terminals in Northern Europe and Global
coming years, which could require a material upward or patterns, as well as by industry-specific trends in respect Ports Investments, Russia. Towage groups vessels ac-
downward adjustment to the carrying amounts of as- of capacity supply and demand. In addition, the new Intangible assets and property, plant and equipment cording to type, size, etc. in accordance with the structure
sets and liabilities. This note includes the areas in which global low sulphur bunker fuel regulation (IMO 2020), A.P. Moller - Maersk carries goodwill of USD 637m (USD governing management’s ongoing follow-up. Projected
A.P. Moller - Maersk is particularly exposed to a material which came into effect in January 2020, is expected to 645m) and intangible assets with indefinite lives of USD cash flow models are used when fair value is not obtain-
adjustment of the carrying amounts as at the end of 2018. increase the cost of compliant fuels significantly. Alter- 31m (USD 34m). The majority of non-current assets are able or when fair value is deemed lower than value in use.
natively, installing scrubbers on vessels enables the use amortised over their useful economic lives. External data is used to the extent possible, and central-
General of lower cost fuels, but requires capital expenditure. ised processes, involving corporate functions, ensure that
Aspects of uncertainty There is significant uncertainty that the increased cost Management assesses impairment indicators across indexes or data sources are selected consistently while
In its assumption setting, management deals with differ- regarding implementation and compliance with the IMO this asset base. Judgement is applied in the definition of observing differences in risks and other circumstances.
ent aspects of uncertainty. One aspect of uncertainty is 2020 requirements cannot be recovered from customers cash-generating units and in the selection of method- Current market values for vessels, etc. are estimated
whether an asset or liability exists where the assessment through the freight rate. ologies and assumptions for impairment tests. using acknowledged brokers.
Note 25 Significant accounting estimates and judgements – continued

Impairment considerations oil-producing countries can potentially put further pres- Operations in countries with limited access the aggregated probability of our tax position being up-
In Ocean, although average bunker cost reduced by 2.9%, sure on carrying amounts of terminals in these countries. to repatriating surplus cash held is considered less than 50%.
the impact of IMO 2020 on bunker supply and the uncer- A.P. Moller - Maersk operates worldwide, and in this
tainty around cost recovery, in addition to the weakness Maersk Container Industry decided to consolidate the respect, has operations in countries where access to re- Deferred tax assets
in the broader macroeconomic backdrop, are impairment manufacture of reefer containers at the facility in Qing- patriating surplus cash is limited. In these countries, man- Judgement has been applied in the measurement of
indicators. Trade protectionism has reduced the global dao, China, and exit the dry container business com- agement makes judgements as to how these transactions deferred tax assets with respect to A.P. Moller - Maersk’s
container outlook and recession risks have increased. In pletely. Consequently, operation ceased at the facilities and balance sheet items are recognised in the financial ability to utilise the assets. Management considers the
addition, the estimated fair value of the fleet continues to in San Antonio, Chile, and Dongguan, China. The closure statements. likelihood of utilisation based on the latest business
be lower than the carrying amount. Consequently, an es- of the facilities triggered a write-down of assets of USD plans and recent financial performances of the individual
timate of the recoverable amount has been prepared by a 66m in 2018. The recoverable amounts for both closed Provisions for pension and other employee benefits entities. Net deferred tax assets recognised in entities
value in use calculation. The cash flow projection is based factories are measured at fair value categorised as level 3 For defined benefit schemes, management makes having suffered an accounting loss in either the current
on forecasts as per Q3 2019 covering plans for 2020-24. in the fair value hierarchy, as measurements are not based assumptions about future remuneration and pension or preceding period amount to USD 98m (USD 142m) for
The key sensitivities are: development in freight rates, on observable market data and relate mainly to land and changes, employee attrition rates, life expectancy, infla- continuing operations, excluding entities participating
container volumes, bunker costs, effect of cost savings buildings which by nature are uncertain. In 2019, a USD tion and discount rates. When setting these assumptions, in joint taxation schemes. These assets mainly relate to
as well as the discount rate. Management has applied an 52m reversal of the write-down was recognised. management takes advice from the actuaries performing unused tax losses or deductible temporary differences
assumption of growth in volumes and continued pressure the valuation. The inflation and discount rates are deter- generated during the construction of terminals, where
on, but increasing freight rates, and continued cost effi- The recoverable amounts for both factories are meas- mined centrally for the major plans on a country-by-coun- taxable profits have been generated either in the current
ciency. The impairment test continues to show headroom ured at fair value categorised as level 3 in the fair value try basis. All other assumptions are determined on a plan- period or are expected within a foreseeable future.
from value in use to the carrying amount. Management hierarchy, as measurements are not based on observable by-plan basis. Refer to note 14 for information about key
is of the opinion that the assumptions applied are sus- market data and relate mainly to land and buildings which assumptions and the sensitivity of the liability to changes Vessel sharing agreements (Cost sharing arrangements)
tainable. by nature are uncertain. in these assumptions. Vessel sharing agreements in shipping require that some
vessels are committed towards specific service routes.
In Terminals & Towage, management assesses impair- Reference is made to notes 6 and 7 for information Plan assets are measured at fair value by fund adminis- The committed vessel’s capacity is then shared with one
ment triggers and based on these, estimates recoverable about impairment losses, recoverable amounts and dis- trators. or more container shipping providers in proportion to
amounts on the individual terminals. For APM Terminals’ count rates. each party’s contribution to the joint service. In practice,
interest in Global Ports Investments, being the share of Provisions for legal disputes, uncertain tax positions, etc. it is not always possible to provide tonnage precisely as
equity and significant intangible assets acquired, manage- Amortisation, depreciation and residual values Management’s estimate of the provisions regarding legal agreed in the sharing arrangements, therefore financial
ment assesses the recoverable amount of its interest on Useful lives are estimated based on experience. Manage- disputes, including disputes on taxes and duties, is based settlement often takes place on basis of relative capacity
an ongoing basis. Uncertain variables in the estimate are ment decides from time to time to revise the estimates on the knowledge available on the actual substance of over/under utilized on a monthly or other mutually agreed
the economic outlook in Russia, local competition, effect for individual assets or groups of assets with similar char- the cases and a legal assessment of these. The resolution cycle. At A.P. Moller - Maersk, these capacity adjustments
on volume, operating expenses and discount rate. The acteristics due to factors such as quality of maintenance of legal disputes, through either negotiations or litigation, are settled as close to actual costs incurred as possible
carrying amount of the investment may not be sustaina- and repair, technical development and environmental can take several years to complete and the outcome is based on market rates applicable at that time.
ble in the next few years, if markets develop significantly requirements. Please refer to note 24 for the useful lives subject to considerable uncertainty.
adversely compared to current expectations. Estimates typically used for new assets. Leasing
of recoverable amounts were also prepared for other ter- A.P. Moller - Maersk is engaged in a number of disputes A.P. Moller - Maersk enters into a substantial amount of
minals where decreasing volumes triggered impairment Residual values are difficult to estimate given the long with tax authorities of varying scope. Appropriate pro- lease contracts, some of which combine leasing and ser-
tests. Key sensitivities are: expected volumes, local port lives of vessels and rigs, the uncertainty as to future visions and recognition of uncertain tax positions have vice components in the same leasing arrangement, such
rates, concession right extensions as well as discount rate. economic conditions and the future price of steel, which been made where the probability of our tax position being as time charter contracts. Judgement is applied in deter-
The impairment tests showed headroom from value in use is considered the main determinant of the residual price. upheld in individual cases is considered less than 50%. mining the stand-alone value of each component using
calculations compared to carrying amount. Therefore, no Generally, the residual values of vessels are initially esti- Claims, for which the probability of our tax position being specialised tools to streamline the valuation process.
impairment was recognised in 2019 compared to USD 20m mated at 10% of the purchase price excluding dry-docking upheld is assessed by management to be at least 50%, Similarly, determining variable lease payments requires
in 2018 related to terminals in markets with challenging costs. The long-term view is prioritised to disregard, to are not provided for. Such risks are instead evaluated on a significant judgement and understanding of facts and
commercial conditions. Continued economic deterioration the extent possible, temporary market fluctuations which portfolio basis by geographical area, and country risk pro- circumstances that give rise to variable payments. In the
and a lack of cash repatriation opportunities in certain may be significant. visions and uncertain tax liabilities are recognised where group, variable payments are linked to the uncertain
Note 25 Significant accounting estimates and judgements – continued

period for which container equipment is used outside the Discontinued operations and assets held for sale
firm contract period, due to flexible redelivery periods Discontinued operations represent a separate major line
and certain terminal concession agreements for which of business disposed of or in preparation for sale. During
payments are linked to future performance such as Q1 2019, Maersk Supply Service no longer fulfilled the
number of TEUs handled or depend on an index. requirement to be classified as discontinued operations
and assets held for sale and was thus reclassified as
A significant amount of lease contracts contains ex- continuing business. Comparison figures for the income
tension or purchase options or termination options or statement, balance sheet and cash flow statement have
various combinations of these options. Assessment of been restated as if Maersk Supply Service had always
the exercise or non-exercise of such options impacts the been part of continuing businesses. Following the reclas-
value of right-of-use asset recognised. Such assessments sification as a continuing business, Maersk Supply Service
are reviewed whenever a significant event or change in forms part of the Manufacturing & Others reportable
circumstances occurs. segment. Comparative figures have been restated. The
impact on 2019 of the reclassifications on key accounting
IFRS 16 requires that a discount rate is applied to deter- lines were: Revenue (USD 261m), EBITDA (USD 3m), loss
mine the present value of lease payments. Significant for the period – continuing operations (USD 430m) and
judgement is required in determining appropriate rates, Equity (USD 13m).
therefore management applies a formalised process for
determining applicable discount rates using specialist
staff in corporate functions.
115 A.P. Møller - Mærsk A/S
A/S Annual Report 2019
2019 Financials Parent company financial statements
Parent company
Financial statements 2019
(In parenthesis, the corresponding figures for 2018)
Income statement
Statement of comprehensive income
Balance sheet at 31 December
Cash flow statement
Statement of changes in equity
Notes to the parent company financial statements

2019 Financials Parent company financial statements Notes index Amounts in USD million
Income statement Statement of comprehensive income

Note 2019 2018 Note 2019 2018
1 Revenue 18 55 Profit/loss for the year -10 8,730

2 Operating costs 178 191
Other costs - 11 14 Cash flow hedges:
Profit/loss before depreciation, amortisation and impairment losses, etc. -160 -147 Value adjustment of hedges for the year -54 -105
3 Gain/loss on sale of companies and non-current assets, etc., net 4 8,120 Reclassified to income statement 30 41
Profit/loss before financial items -156 7,973
4 Dividends 324 4,025 5 Tax on other comprehensive income 13 8
4 Financial income 1,598 1,571 Total items that have been or may be reclassified subsequently
4 Financial expenses 1,663 4,756 to the income statement -11 -56
Profit/loss before tax 103 8,813
5 Tax 113 85 15 Other equity investments (FVOCI), fair value adjustments for the year - 329
Profit/loss for the year – continuing operations -10 8,728 5 Tax on other comprehensive income - -71
9 Profit for the year – discontinued operations - 2 Total items that will not be reclassified to the income statement - 258
Profit/loss for the year -10 8,730
Other comprehensive income, net of tax -11 202
Appropriation:
Proposed dividend 468 479 Total comprehensive income for the year -21 8,932
Retained earnings -478 8,251
-10 8,730
Proposed dividend per share, DKK 150 150
Proposed dividend per share, USD 22 23
Balance sheet at 31 December

Note Assets Note Equity and liabilities
2019 2018 2019 2018
6 Property, plant and equipment - - 10 Share capital 3,774 3,774

Reserves 20,958 25,600
7 Investments in subsidiaries 13,435 18,753 Total equity 24,732 29,374
7 Investments in associated companies 2 5
15 Other equity investments 2 - 12 Borrowings, non-current 7,154 7,573
15 Interest-bearing receivables from subsidiaries, etc. 7,913 20,025
14 Derivatives 165 133 13 Provisions 78 75
Other receivables 9 8 14 Derivatives 324 244
Financial non-current assets, etc. 21,526 38,924 8 Deferred tax 33 1
Other non-current liabilities 435 320
Total non-current assets 21,526 38,924 Total non-current liabilities 7,589 7,893
Trade receivables 8 6 12 Borrowings, current 543 1,173

15 Interest-bearing receivables from subsidiaries, etc. 12,804 3,144 12 Interest-bearing debt to subsidiaries, etc. 5,031 8,743
14 Derivatives 65 97
Other receivables 112 107 13 Provisions 3 -
Other receivables from subsidiaries, etc. 286 251 Trade payables 58 73
Prepayments 74 51 Tax payables 43 158
Receivables, etc. 13,349 3,656 14 Derivatives 94 155
Other payables 156 110
Cash and bank balances 3,395 1,193 Other payables to subsidiaries, etc. 15 18
9 Assets held for sale - 3,935 Deferred income 6 6
Total current assets 16,744 8,784 Other current liabilities 375 520
Total assets 38,270 47,708 9 Liabilities associated with assets held for sale - 5
Total current liabilities 5,949 10,441
Total liabilities 13,538 18,334
Total equity and liabilities 38,270 47,708
Cash flow statement

Note 2019 2018
Profit/loss before financial items -156 7,973

3 Gain/loss on sale of companies and non-current assets, etc., net -4 -8,120
19 Change in working capital -37 -16
Other non-cash items 14 11
Cash from operating activities before tax -183 -152
Taxes paid -185 -38
Cash flow from operating activities -368 -190
Acquisition of and capital increases in subsidiaries and activities - -85
Sale of subsidiaries and associates 62 2,705
Dividends received 2,792 1,664
Cash flow used for investing activities 2,854 4,284
Repayment of borrowings -2,132 -6,367
Proceeds from borrowings 1,081 2,027
Purchase of own shares -791 -
Financial income received 1,140 1,204
Financial expenses paid -423 -514
Dividends distributed -469 -517
Movements in interest-bearing loans to/from subsidiaries, etc., net 1,341 584
Cash flow from financing activities -253 -3,583
Net cash flow from continuing operations 2,233 511
Net cash flow for the year 2,233 511
Cash and cash equivalents 1 January 1,147 682
Currency translation effect on cash and cash equivalents 10 -46
Cash and cash equivalents

Overdrafts 5 46
Statement of changes in equity

Note Share Reserve for Reserve Retained Total
capital other equity for hedges earnings equity
investments
Equity 1 January 2018 3,774 - 22 17,150 20,946
Other comprehensive income, net of tax - 258 -56 - 202

Profit/loss for the year - - - 8,730 8,730
Total comprehensive income for the year - 258 -56 8,730 8,932
Dividends to shareholders - - - -517 -517

11 Value of share-based payments - - - 13 13
15 Transfer of loss on disposal of equity investments at FVOCI to retained earnings - -258 - 258 -
Total transactions with shareholders - -258 - -246 -504
Equity 31 December 2018 3,774 - -34 25,634 29,374
2019
Other comprehensive income, net of tax - - -11 - -11
Profit/loss for the year - - - -10 -10
Total comprehensive income for the year - - -11 -10 -21
Dividends to shareholders - - - -469 -469

11 Value of share-based payments - - - 10 10
10 Purchase of own shares - - - -791 -791
9 Distribution of shares in The Drilling Company of 1972 A/S to shareholders in A.P. Møller - Mærsk A/S - - - -3,371 -3,371
Total transactions with shareholders - - - -4,621 -4,621
Equity 31 December 2019 3,774 - -45 21,003 24,732

2019 Financials Parent company financial statements
Notes Note 1
121 Revenue
121 Revenue
Note 11
127 Share-based payment
127 Share-based
Note 21
138 Significant accounting policies
138

121 Operating costs
121 129 Borrowings and net debt
129 138 Significant accounting estimates
138
reconciliation and judgements
Note 3
122 Gain on sale of companies and
122
Note 13
non-current assets, etc., net 130 Provisions
130 Provisions
Note 4 Note 14
122 Financial income and expenses
122 130 Derivatives
130 Derivatives
Note 5 Note 15
123 Tax
123 Tax 132 Financial
132 Financial instruments
by category
Note 6
123 Property, plant and equipment
123
Note 16
Parent company financial statements 134 Financial risks, etc.
134
Activities comprise holding of shares in subsidiaries and
associated companies, as well as funding, procurement
Note 7
and cash management.
124 Investments in subsidiaries and
124
Note 17
The subsidiary Maersk Drilling Holding A/S shares were associated companies 136 Commitments
136 Commitments
distributed as part of the Maersk Drilling demerger
through separate listing in 2019.
In the parent company financial statements, shares in Note 8 Note 18

subsidiaries and associated companies are recognised 125 Deferred tax
125 Deferred 136 Contingent liabilities
136 Contingent
at cost, cf. note 21, less impairment losses, and in the
income statement, dividends from subsidiaries and
associated companies are recognised as income.
Note 9 Note 19
The net result for the year was a loss of USD 10m
125 Discontinued operations and
125 136 Cash flow specifications
136
(profit of USD 8.7bn). The main differences are gain on
assets held for sale
sale and dividends, both reduced compared to 2018.
Cash flow from operating activities was negative USD Note 20

368m (negative USD 190m). Total assets amounted to Note 10 137 Related parties
137 Related
USD 38.3bn (USD 47.7bn) and total equity was USD 24.7bn
(USD 29.4bn) at 31 December 2019. 126 Share capital
126 Share
Note 1 Revenue
Table 1.1 2019 2018
Revenue from vessels - 44

Other revenue 18 11
Total revenue 18 55
Note 2 Operating costs

Table 2.1 2019 2018 Table 2.1 Table 2.3
1 Wages and salaries USD 116m (USD 106m) and pen- Fees for other services than statutory audit of the
Rent and lease costs 14 47
sion plan contributions USD 8m (USD 8m). Staff costs financial statements provided by Pricewaterhouse-
Staff costs reimbursed to Rederiet A.P. Møller A/S ¹ 124 114
included in integration and restructuring costs amount Coopers Statsautoriseret Revisionspartnerselskab
Other 40 30
to USD 3m (USD 0m). to A.P. Møller - Mærsk A/S mainly consist of audit of
Total operating costs 178 191
non-statutory financial statements, financial due
For information about share-based payment, reference diligence and transaction advice, accounting advisory
Average number of employees directly employed by the company 2 2
is made to note 11. services, tax advice and other services related to sep-
arating discontinued operations, review of the interim
Table 2.2 report and other advisory accounting and tax services.
Contract of employment for the Executive Board contains
Table 2.2 terms customary in Danish listed companies, including
The company’s share of fees and remuneration to the Executive Board 2019 2018 termination notice and competition clauses. In connection
with a possible takeover offer, neither the Executive Board
Fixed base salary 5 5 nor the Board of Directors will receive special remunera-
Short-term cash incentive 2 2 tion. Fees and remuneration do not include pension.
Remuneration in connection with redundancy, resignation and release from duty to work 5 2
Total remuneration to the Executive Board 12 9 The Board of Directors has received fees of USD 3m
(USD 3m).
Table 2.3
Fees to the statutory auditors 2019 2018
Statutory audit 1 1
Other assurance services - -
Tax and VAT advisory services - -
Other services 1 1
Total fees 2 2
Note 3 Gain on sale of companies and non-current assets, etc., net

Table 3.1 2019 2018 Table 3.1
The dormant subsidiaries Odense Staalskibsværft A/S and
Gains 4 8,120
Roulunds Holding A/S were liquidated in 2019, both with
Gain/loss on sale of companies and non-current assets, etc., net 4 8,120
modest gain.
2018 gains relate to sale of the subsidiary Mærsk Olie og

Gas A/S to Total S.A.
Note 4 Financial income and expenses

Table 4.1 2019 2018 Table 4.1 Impairment losses and fair value adjustments
Reference is made to note 14 for an analysis of gains and 3 Impairment losses to recoverable amount relate mostly
Interest expenses on liabilities 490 717
losses from derivatives. to fair value adjustment of Maersk Supply Service A/S,
Interest income on loans and receivables 1,143 1,226
Damco International A/S and Maersk FPSOs A/S. (In 2018
Fair value adjustment transferred from equity hedge reserve (loss) 26 61
Refer to note 22 for significant accounting estimates. mainly, Maersk Drilling Holding A/S, USD 2.2bn based on
Net interest income 627 448
fair value less cost to sell and Maersk Supply Service A/S
Dividends of USD 0.4bn, based on fair value less cost to sell).
Exchange rate gains on bank balances, borrowings and working capital 71 252
1 A.P. Moller Finance SA, Orion Limited and Maersk FPSOs
Exchange rate losses on bank balances, borrowings and working capital 30 283
A/S have each paid around USD 0.1bn in dividend. 2018 In Q3 2018, the company announced that it would pursue
Net foreign exchange losses/gains 41 -31
dividends are mainly from Maersk Drilling Holding A/S a demerger through a separate listing of Maersk Drilling
USD 3.3bn and Maersk Oil Trading and Investments USD in 2019. On 2 April 2019, the Annual General Meeting
Fair value gains from derivatives 113 39
0.4bn. Dividends from other equity investments in 2018 approved the Board of Directors’ proposal to complete
Fair value losses from derivatives 73 18
relate to Total S.A. shares. the demerger and separate listing of Maersk Drilling.
Net fair value gains/losses 40 21
Reversal of impairment losses The fair value of Maersk Drilling Holding A/S shares
Dividends received from subsidiaries, associated companies and joint ventures, net¹ 324 3,879
2 Reversal of impairment losses relates to A.P. Moller distributed was USD 3.4bn, resulting in a loss of USD
Dividends received from other equity investments - 146
Finance SA, Star Air A/S and Maersk Container 0.6bn on the demerger. Note 10 in the consolidated
Total dividend income 324 4,025
Industry A/S (in 2018 A.P. Moller Finance SA). financial statements holds more details.
Reversal of impairment losses, investments in subsidiaries and associated companies² 116 31

Reversal of write-down of loan receivables
Impairment losses, investments in subsidiaries and associated companies³ 1,042 3,431
4 Loan receivables from Maersk Supply Service A/S and
Reversal of write-down of loans⁴ 155 23
Maersk Container Industry A/S were written down to
Write-down of loan receivables from subsidiaries 2 246
recoverable amount in 2018. Part of the loan to Maersk
Supply Service A/S is converted to capital injection
Financial income/expenses, net 259 840
and the write-down is partly reversed in 2019 to re-
vised recoverable value. The loan to Maersk Container
Of which:
Industry A/S is settled at a higher value than carrying
Dividends 324 4,025
value and the difference between amount settled and
Financial income 1,598 1,571
carrying value is included in this item.
Financial expenses 1,663 4,756
Note 5 Tax
Table 5.1 2019 2018
Tax recognised in the income statement

Current tax on profit for the year 70 115
Adjustment of tax provision 45 -
Adjustment for current tax of prior periods -49 -26
Withholding taxes 15 69
Total current tax 81 158
Origination and reversal of temporary differences 24 -56

Adjustment for deferred tax of prior periods 8 -17
Total deferred tax 32 -73
Total tax expense 113 85
Tax reconciliation:
Profit/loss before tax 103 8,813
Tax using the Danish corporation tax rate (22%) 23 1,939

Tax rate deviations in foreign jurisdictions - 12
Non-deductible expenses 34 20
Gains/losses related to shares, dividends, etc. 50 -1,846
Adjustment to previous years’ taxes 4 -43
Other differences, net 4 3
Tax recognised in other comprehensive income and equity 13 63
Of which:
Current tax 13 63
Note 6 Property, plant and equipment

After separating the drilling activities, the company holds
no property, plant and equipment.
Pledges
Vessels and containers, etc., owned by subsidiaries with
a carrying amount of USD 1.4bn (USD 1.6bn) have been
pledged as security for loans of USD 0.6bn (USD 0.5bn).
Note 7 Investments in subsidiaries and associated companies

Table 7.1 Investments Investments Table 7.1 1 USD 5.9bn capital increase in Maersk Oil Trading and
in subsidiaries in associated Reference is made to pages 145-147 for a list of significant Investments A/S by non-cash transfer of shares in
companies
subsidiaries and associated companies. Total S.A.
2019 2019 2 Capital increase in Maersk Container Industry A/S,
Maersk Supply Service A/S and Damco International A/S.
Cost
3 Maersk Oil Trading and Investments A/S returned
1 January 2018 15,342 795
USD 5.8bn after disposing the Total S.A. shares.
Addition¹ 5,990 24
4 Mostly related to the liquidation of Odense Staalskibs-
Disposal 27 -
værft A/S.
31 December 2018 21,305 819
5 Maersk Supply Service A/S transferred back to con-
Addition² 850 -
tinuing operations.
Return of capital³ 5,780 -
6 Impairment losses are recognised when carrying
Disposal⁴ 250 -
amount exceeds recoverable amount as explained in
Transfer from assets held for sale⁵ 1,465 -
notes 4, 21 and 22.
31 December 2019 17,590 819
Impairment losses
1 January 2018 1,957 592
Impairment losses⁶ 626 222
Reversal of impairment losses 31 -
31 December 2018 2,552 814
Impairment losses⁶ 480 3
Disposal⁴ 226 -
Reversal of impairment losses 116 -
Transfer from assets held for sale⁵ 1,465 -
31 December 2019 4,155 817
Carrying amount:
31 December 2018 18,753 5
31 December 2019 13,435 2
Note 8 Deferred tax

Recognised deferred tax assets and liabilities are attributable to the following: Table 8.1 and Table 8.2
There are no unrecognised deferred tax assets.
Table 8.1 Assets Liabilities Net liabilities
There are no significant unrecognised tax liabilities
2019 2018 2019 2018 2019 2018
on investments in subsidiaries, associated companies
Liabilities, etc. - - 33 1 33 1 and joint ventures.
Total - - 33 1 33 1
Table 8.2
Change in deferred tax, net during the year 2019 2018
1 January 1 74
Recognised in the income statement 32 -73
31 December 33 1
Note 9 Discontinued operations and assets held for sale

Table 9.1 2019 2018 Table 9.1
1 The tax relates to the profit from the ordinary activities
Profit for the year – discontinued operations
of discontinued operations.
Financial items, net - 4
Profit/loss before tax, etc. - 4
Tax ¹ - 2
Profit/loss for the year – discontinued operations - 2
Cash flows from discontinued operations for the year

Cash flow from operating activities - -6
Cash flow used for investing activities - -26
Cash flow from financing activities - 32
Net cash flow from discontinued operations - -
Balance sheet items comprise:

Non-current assets - 3,935
Assets held for sale - 3,935
Provisions - 3
Other liabilities - 2
Liabilities associated with assets held for sale - 5
Note 10 Share capital

Development in the number of shares: Table 10.1 Table 10.3
All shares are fully issued and paid up. Addition of own shares relates to the share buy-back
programme announced in May 2019. Note 11 in the
Table 10.1 A shares of B shares of Nominal value
One A share of DKK 1,000 holds two votes. B shares have consolidated financial statements provides more
DKK 1,000 DKK 500 DKK 1,000 DKK 500 DKK million USD million
no voting rights. information about the share buy-back programme.
1 January 2018 10,756,262 232 10,060,398 172 20,817 3,774 Disposal of own shares relates primarily to the
31 December 2018 10,756,262 232 10,060,398 172 20,817 3,774 Table 10.2 restricted share programme.
Note 11 in the consolidated financial statements includes
Conversion 3 -6 3 -6 - - rules for changing the share capital, and information
31 December 2019 10,756,265 226 10,060,401 166 20,817 3,774 regarding the authorisation of the Board of Directors to
acquire own shares as well as the total number of own
shares held by the group.
Shareholder disclosure subject to section 104 of the Danish Financial Statements Act:
Table 10.2 Share capital Votes
A.P. Møller Holding A/S, Copenhagen, Denmark 40.17% 50.81%

A.P. Møller og Hustru Chastine Mc-Kinney Møllers Familiefond, Copenhagen, Denmark 8.84% 13.12%
Den A.P. Møllerske Støttefond, Copenhagen, Denmark 3.11% 5.99%
Development in the holding of own shares:
Table 10.3 No. of shares of DKK 1,000 Nominal value DKK million % of share capital
Own shares 2019 2018 2019 2018 2019 2018
A shares
1 January - - - - 0.00% 0.00%
Addition 134,279 - 134 - 0.65% 0.00%
31 December 134,279 - - - 0.65% 0.00%
B shares
1 January 55,515 60,839 56 61 0.27% 0.29%
Addition 537,143 - 537 - 2.57% 0.00%
Disposal 4,709 5,324 5 5 0.02% 0.02%
31 December 587,949 55,515 588 56 2.82% 0.27%
Note 11 Share-based payment

Table 11.1 Members of Employees ¹ Total Total Table 11.1 The members of the Executive Board as well as other
the Executive fair value ¹ Restricted shares plan employees are not entitled to any dividends during the
Board ¹
The restricted shares plan was introduced in 2013 and vesting period. Special conditions apply regarding illness,
Restricted shares plan No. No. No. USD million grants have been awarded to employees on a yearly basis death and resignation as well as changes in the company’s
since 2013. Grants have also been awarded to members of capital structure, etc. A part of A.P. Møller - Mærsk A/S’
1 January 2018 - 14,532 14,532 the Executive Board from 2018. holding of own B shares will be used to meet the company’s
Granted 1,002 4,241 5,243 8 obligations in connection with the restricted shares plan.
Exercised - 5,324 5,324 The transfer of restricted shares is contingent upon the
Forfeited - 663 663 employee still being employed and not being under notice 1 At the time of grant.
Outstanding 31 December 2018 1,002 12,786 13,788 of termination and takes place when three years have
passed from the time of granting. For members of the
Granted 1,310 4,319 5,629 7 Executive Board the vesting period is five years.
Granted in connection with Maersk Drilling demerger 294 1,286 1,580
Exercised - 4,756 4,756
Forfeited 739 1,700 2,439
Note 11 Share-based payment – continued

Table 11.2 Members of the Employees ¹ Total Average Total fair Table 11.2 Table 11.3
Executive Board ¹ exercise price ² value ¹ The fair value of restricted shares (A.P. Møller - Mærsk A/S The share options can only be settled in shares. A part of
Outstanding share options No. No. No. DKK USD million B shares) granted to 92 (105) employees and five (five) A.P. Møller - Mærsk A/S’ holding of own B shares will be
members of the Executive Board was USD 7m (USD 8m) used to meet the company’s obligations in respect of the
1 January 2018 4,928 20,602 25,530 12,971 at the time of grant. The total value of granted restricted share option plans.
Granted 6,230 18,137 24,367 11,537 7 shares recognised in the income statement is USD 1m
Forfeited 1,173 2,032 3,205 12,507 (USD 1m). The fair value of awards granted to five (five) members of
Outstanding 31 December 2018 9,985 36,707 46,692 12,791 the Executive Board and 75 (80) employees was USD 9m
Exercisable 31 December 2018 - - - - The fair value per restricted share at the time of grant (USD 7m) at the time of grant. The total value of granted
was DKK 8,668 (DKK 9,273), which is equal to the volume share options recognised in the income statement is USD
Granted 7,894 22,444 30,338 7,622 9 weighted average share price on the date of grant, i.e. 1m (USD 1m).
Forfeited 6,080 3,125 9,205 9,141 1 April 2019.
Outstanding 31 December 2019 11,799 56,026 67,825 12,156 No share options were exercised during 2018 and 2019.
Exercisable 31 December 2019 - 18,435 18,435 10,630 On 1 April 2019, the restricted shares originally granted
in 2016 were settled with the employees. The weighted The average remaining contractual life as per 31 Decem-
average share price at that date was DKK 8,668. The ber 2019 is 5.2 years (5.5 years) and the exercise price for
average remaining contractual life for the restricted outstanding share options is DKK 9,057 (DKK 10,006).
The following principal assumptions are used in the valuation:
shares as per 31 December 2019 is 1.7 years (1.4 years).
The fair value per option granted to members of the
Table 11.3 Share options granted to Share options granted to Share option plans Executive Board is calculated at DKK 1,782 (DKK 1,712) at
members of the Executive Board employees not members of the In addition to the plan described above, the time of grant based on Black & Scholes’ option pricing
Executive Board
A.P. Moller - Maersk has share option plan for members model. The fair value per option granted to employees
2019 2018 2019 2018 of the Executive Board and other employees. Each share not members of the Executive Board is calculated at DKK
option granted is a call option to buy an existing B share 1,914 (DKK 2,281) at the time of grant based on the same
Share price, volume weighted average at the
date of grant, 1 April, DKK 8,668 9,273 8,668 9,273 of nominal DKK 1,000 in A.P. Møller - Mærsk A/S. option pricing model.
Share price, five days volume weighted average
after publication of Annual Report, DKK 8,682 10,476 8,682 10,476 The share options were granted at an exercise price cor-
Exercise price, DKK 9,550 11,524 9,550 11,524 responding to 110% of the average of the market price
Exercise price following the demerger of on the first five trading days following the release of
Maersk Drilling, 2 April 2019, DKK 7,670 9,435 7,605 9,435 A.P. Møller - Mærsk A/S’ Annual Report. Exercise of the
Expected volatility (based on historic volatility) 32% 33% 32% 33% share options is contingent on the option holder still be-
Expected term (years) 5.00 5.00 5.75 5.75 ing employed at the time of exercise. The share options
Expected dividend per share, DKK 150 150 150 150 can be exercised when at least three years and no more
Risk free interest rate -0.36% 0.21% -0.28% 0.29% than six years (seven years for share options granted to
employees not members of the Executive Board) have
passed from the time of granting. Special conditions
apply regarding illness, death and resignation as well
as changes in the company’s capital structure, etc.
1 At the time of grant.

2 Average exercise prices were reduced following the
demerger of Maersk Drilling and have been restated.
Note 12 Borrowings and net debt reconciliation

Table 12.1 Net debt as at Cash flow Other changes Net debt as at Table 12.2
31 December 31 December 1 Non-cash dividends, capital increases, IFRS 16 lease
liabilities, etc.
Foreign exchange
2018 movements Other ¹ 2019
Bank and other credit institutions 3,373 -508 - - 2,865

Lease liabilities - - - 13 13
Issued bonds 5,373 -543 -57 46 4,819
Subsidiaries, etc., net -14,426 1,341 -25 -2,576 -15,686
Total borrowings, net -5,680 290 -82 -2,517 -7,989
Derivatives hedge of borrowings, net 187 -84 57 -4 156
Borrowings classification:
Table 12.2 Net debt as at Cash flow Other changes Net debt as at
31 December 31 December
Foreign exchange
2017 movements Other ¹ 2018
Bank and other credit institutions 5,588 -2,040 -1 -174 3,373

Issued bonds 7,804 -2,258 -238 65 5,373
Subsidiaries, etc., net -12,941 584 229 -2,298 -14,426
Total borrowings, net 451 -3,714 -10 -2,407 -5,680
Derivatives hedge of borrowings, net -110 -2 238 61 187
Borrowings classification:
Note 13 Provisions
Table 13.1 Restructuring Other Total Table 13.1
Other includes provisions for unsettled claims and
1 January 2019 - 75 75
legal disputes, etc.
Provision made 3 - 3
Transfer, liabilities associated with assets held for sale - 3 3
31 December 2019 3 78 81
Of which:
Classified as non-current - 78 78
Classified as current 3 - 3
Note 14 Derivatives
Table 14.1 2019 2018 Table 14.1 1,723m), GBP 92m (GBP 89m), JPY 206m (JPY 204m) and
Hedges comprise primarily currency derivatives and interest NOK 250m (NOK 252m). The remaining swaps are fixed to
Non-current receivables 165 133
rate derivatives. Foreign exchange forwards and option fixed rate or floating to fixed rate swaps and are desig-
Current receivables 65 97
contracts are used to hedge the currency risk related to nated as cash flow hedges of interest rate risk.
Non-current liabilities 324 244
recognised and unrecognised transactions. Interest rate
Current liabilities 94 155
and cross-currency swaps are used to hedge interest rate The hedge ratio is 1:1. The maturity of the hedge instrument
Assets/liabilities, net -188 -169
exposure on borrowings. 0-5 years is (USD equivalents): EUR 671m (EUR 1,746m),
JPY 92m (JPY 91m) and NOK 341m (NOK 344m). 5-10 years:
The hedges are expected to be highly effective due to the EUR 839m (EUR 859m), GBP 394m (GBP 380m), JPY 114m
nature of the economic relation between the exposure (JPY 113m) and NOK 250m (NOK 252m). Above 10 years:
The fair value of derivatives held at the balance sheet date can be allocated by type as follows:
and the hedge. The source of ineffectiveness is the credit EUR 90m (EUR 92m).
risk of the hedging instruments. For hedges where the
Table 14.2 Fair value, Fair value, Nominal Fair value, Fair value, Nominal cost of hedging is applied, the forward points and change Cross-currency swaps are designated as a combination of
asset liability amount of asset liability amount of in basis spread are recognised in other comprehensive in- hedge of principal cash flow and hedge of interests at a
derivative derivative
come and transferred with the effective hedge when the weighted average rate of 4.0% (4.5%).
2019 2019 2019 2018 2018 2018 hedged transaction occurs. The cost of hedging reserve
amounts to a gain of USD 6m (USD 1m). Interest rate swaps are all denominated in USD and pay
Hedge of borrowings
floating rate. The hedge ratio is 1:1, and the weighted aver-
Cross-currency swaps
For information about risk management strategy, curren- age interest rate is 3.0% (2.8%) excluding margin on loans.
EUR 53 95 1,600 97 141 2,697
cies, maturities, etc. reference is made to note 16. The maturity of the interest rate swaps 5-10 years is USD
GBP - 66 394 - 74 380
900m (USD 500m).
JPY 10 11 206 10 12 204
Table 14.2 and Table 14.3
NOK - 61 591 - 52 596
Hedge of borrowings For cash flow hedges related to borrowings, a loss of USD
Cross-currency swaps are used to swap all non-USD 30m (loss of USD 64m) is recognised in other comprehen-
Interest rate swaps
issued bonds. Fixed to floating rate swaps are designated sive income, and the cash flow hedge reserve is a loss of
Fair value hedges 14 - 900 - 15 500
as a combination of fair value and cash flow hedges. The USD 64m (loss of USD 49m). Reference is made to other
Total 77 233 107 294
principal amounts in USD equivalents are: EUR 733m (EUR comprehensive income.
Note 14 Derivatives – continued

Table 14.3 Fair value The carrying amount of the borrowings in fair value Table 14.4
2019 2018 hedge relation is USD 2,181m (USD 2,768m), and the Other economic hedges (no hedge accounting applied)
accumulated fair value adjustment of the loans is a loss Furthermore, the company enters into derivatives to
Held for trading of USD 53m (loss of USD 13m). The gain on the hedging hedge economic risks that are not accounted for as
Currency derivatives -20 -3 instrument in fair value hedges recognised in the income hedging. These derivatives are accounted for as held for
Interest derivatives -12 21 statement for the year amounts to USD 45m (loss of USD trading.
Total -32 18 15m), and the loss on hedged item amounts to USD 40m
(gain of USD 15m). For information about currencies, maturities, etc., refer-
ence is made to note 16.
Due to bond buy-back in 2019, ineffectiveness from cash
The gains/losses, including realised transactions, are recognised as follows: flow hedges is recognised in the income statement with
a loss of USD 4m (gain of USD 20m).
Table 14.4 2019 2018
Hedging interest rate risk -26 -61

Total effective hedging -26 -61
Ineffectiveness recognised in financial expenses -4 20
Total reclassified from equity reserve for hedges -30 -41
Derivatives accounted for as held for trading

Currency derivatives recognised directly in financial income/expenses 65 -10
Interest rate derivatives recognised directly in financial income/expenses 19 -4
Net gains/losses recognised directly in the income statement 84 -14
Total 54 -55
Note 15 Financial instruments by category

Table 15.1 Carrying Fair Carrying Fair Table 15.1
amount value amount value Equity investments at fair value through other
2019 2019 2018 2018 comprehensive income
The company holds only minor equity investments at
Carried at amortised cost fair value through other comprehensive income (FVOCI).
Interest-bearing receivables from subsidiaries, etc. 20,717 20,723 23,169 23,176
Lease receivables 19 8
Total interest-bearing receivables 20,736 20,723 23,177 23,176
Trade receivables 8 6
Other receivables (non-interest-bearing) 102 107
Other receivables from subsidiaries, etc. 286 251
Financial assets at amortised cost 24,527 24,734
Equity investments (FVOCI)¹ 2 2 - -

Other financial assets 232 232 230 230
Total financial assets 24,759 24,964
Carried at amortised cost

Bank and other credit institutions 2,865 2,918 3,373 3,414
Lease liabilities 13 - -
Issued bonds 4,819 5,040 5,373 5,394
Interest-bearing loans from subsidiaries, etc. 5,031 5,031 8,743 8,743
Total borrowings 12,728 12,989 17,489 17,551
Trade payables 58 73
Other payables 156 110
Other payables to subsidiaries and associated
companies, etc. 15 18
Financial liabilities at amortised cost 12,957 17,690
Carried at fair value

Financial liabilities at fair value 418 418 399 399
Total financial liabilities 13,375 18,089

Note 15 Financial instruments by category – continued

Table 15.2 Non-listed shares Contingent Total Table 15.2 Financial instruments carried at amortised cost
consideration financial Financial instruments measured at fair value Fair value of the short-term financial assets and other
assets Financial instruments measured at fair value can be financial liabilities carried at amortised cost is not mate-
Equity Held divided into three levels: rially different from the carrying amount. In general, fair
investments for trading value is determined primarily based on the present value
Movement during the year in level 3 (FVOCI) Level 1 — Quoted prices (unadjusted) in active markets of expected future cash flows. Where a market price was
for identical assets or liabilities; available, however, this was deemed to be the fair value.
Carrying amount 1 January 2018 - - 10 10 Level 2 — Inputs other than quoted prices included
Gains/losses recognised in the income statement - - -10 -10 within level 1 that are observable for the Fair value of listed issued bonds is within level 1 of the
Carrying amount 31 December 2018 - - - - asset or liability, either directly (i.e. as prices) fair value hierarchy. Fair value of the remaining borrow-
or indirectly (i.e. derived from prices); ing items is within level 2 of the fair value hierarchy and
Addition 2 - - 2 Level 3 — Inputs for the asset or liability that are not is calculated on the basis of discounted interests and
Carrying amount 31 December 2019 2 - - 2 based on observable market data. instalments.
Fair value of listed shares falls within level 1 of the fair

value hierarchy. Non-listed shares and other securities
fall within level 3 of the fair value hierarchy.
Fair value of derivatives falls mainly within level 2 of

the fair value hierarchy and is calculated on the basis of
observable market data as of the end of the reporting
period.
Fair value of level 3 assets and liabilities is primarily

based on the present value of expected future cash
flows. A reasonably possible change in the discount rate
is not estimated to affect the company’s profit or equity
significantly.
Note 16 Financial risks, etc.

Table 16.1 Next interest rate fixing The company’s activities expose it to a variety of financial The company uses various financial derivatives, including
Borrowings and interest-bearing debt to subsidiaries Carrying 0-1 1-5 5- risks: market risks, i.e. currency risk and interest rate risk, forwards, option contracts and cross-currency swaps,
by interest rate levels inclusive of interest rate swaps amount year years years credit risk and liquidity risk. The company’s overall risk to hedge these risks. The key aspects of the currency
management programme focuses on the unpredictability hedging policy are as follows:
2019 of financial markets and seeks to minimise the potential • Net cash flows in other significant currencies than
0-3% 6,081 6,181 -300 200 adverse effects on the company’s financial performance. USD are hedged using a layered model with
3-6% 6,647 3,696 1,987 964 The company uses derivative financial instruments to a 12-month horizon;
Total 12,728 9,877 1,687 1,164 hedge certain risk exposures. • Significant capital commitments in other currencies
than USD are hedged;
Of which: Risk management is carried out by a central finance • Most non-USD debt is hedged, however, depending
Bearing fixed interest 2,862 department under policies approved by the Board of on asset-liability match and the currency of the
Bearing floating interest 9,866 Directors. The finance department identifies, evaluates generated cash flow.
and hedges financial risks in close cooperation with the
2018 company’s businesses. An increase in the USD exchange rate of 10% against all
0-3% 10,186 8,751 1,095 340
other significant currencies, to which the company is ex-
3-6% 7,303 4,988 1,015 1,300
Market risk posed, is estimated to have a negative impact on the com-
Total 17,489 13,739 2,110 1,640
Market risk is the risk that changes in market prices, such pany’s profit before tax by USD 0.3bn (negative USD 0.1bn)
as foreign exchange rates and interest rates, will affect the and the company’s equity, excluding tax, by negative USD
Of which:
company’s profit or the value of its holdings of financial 0.3bn (negative USD 0.1bn). The sensitivities are based only
Bearing fixed interest 3,756
instruments. Below sensitivity analyses relate to the posi- on the impact of financial instruments that are outstanding
Bearing floating interest 13,733
tion of financial instruments at 31 December 2019. at the balance sheet date, cf. note 14 and 15, and are thus
not an expression of the company’s total currency risk.
The sensitivity analyses for currency risk and interest rate
risk have been prepared on the basis that the amount of Table 16.1
net debt, the ratio of fixed to floating interest rates of the Interest rate risk
debt and the proportion of financial instruments in foreign The company has most of its debt denominated in USD, but
currencies remain unchanged from hedge designations part of the debt (e.g. issued bonds) is in other currencies
in place at 31 December 2019. Furthermore, it is assumed such as EUR, GBP, JPY and NOK. Some loans are at fixed in-
that the exchange rate and interest rate sensitivities have terest rates, while others are at floating interest rates.
a symmetric impact, i.e. an increase in rates results in the
same absolute movement as a decrease in rates. The company strives to maintain a combination of fixed
and floating interest rates on its net debt, reflecting ex-
The sensitivity analyses show the effect on profit or loss pectations and risks. The hedging of the interest rate risk
and equity of a reasonably possible change in exchange is governed by a duration range and is primarily obtained
rates and interest rate. with interest rate swaps.
Currency risk A general increase in interest rates by one percentage point

The company’s currency risk arises primarily from its is estimated, all else being equal, to affect profit before tax
treasury activities where financing is obtained and pro- and equity, excluding tax effect, positively by approx. USD
vided in a wide range of currencies other than USD such 0.2m and USD 0.1m, respectively (positively USD 0.2m and
as EUR, GBP and NOK. USD 0.1m, respectively).
The main purpose of hedging the company’s currency risk This analysis assumes that all other variables, in particular
is to hedge the USD value of the company’s net cash flow foreign currency rates, remain constant.
and reduce fluctuations in the company’s profit.

Table 16.2 Table 16.2 Table 16.3
Maturity analysis of trade receivables incl. subsidiaries, etc. 2019 2018 Credit risk Liquidity risk
The company has substantial exposure to financial and It is of great importance for the company to maintain a
Receivables not due 1 1 commercial counterparties but has no particular con- financial reserve to cover the company’s obligations and
Less than 90 days overdue 7 5 centration of customers or suppliers. To minimise the investment opportunities and to provide the capital nec-
Receivables, gross 8 6 credit risk, financial vetting is undertaken for all major essary to offset changes in the company’s liquidity due
Provision for bad debt - - customers and financial institutions, adequate security to changes in the cash flow from operating activities.
Carrying amount 8 6 is required for commercial counterparties and credit lim-
its are set for financial institutions and key commercial The flexibility of the financial reserve is subject to on-
counterparties. going prioritisation and optimisation, among other things,
by focusing on release of capital and following up on the
Table 16.3 Cash flows including interest Financial assets at amortised cost comprise loan receiv- development in working capital.
ables, lease receivables and other receivables. These are
Carrying 0-1 1-5 5- Total
Maturities of liabilities and commitments amount year years years all considered to have low credit risk and thus the impair-
ment provision calculated basis of 12 month expected
2019 credit losses is considered immaterial. The financial assets
Bank and other credit institutions 2,865 336 1,745 1,247 3,328 are considered to be low risk when they have low risk of
Lease liabilities 13 9 4 - 13 default and the issuer has a strong capacity to meet its
Issued bonds 4,819 429 2,295 2,901 5,625 contractual cash flow obligations in the near term.
Interest-bearing loans from subsidiaries, etc. 5,031 5,048 - - 5,048
Trade payables 58 58 - - 58 A.P. Møller - Mærsk A/S applies the simple approach to
Other payables 156 156 - - 156 providing the expected credit losses prescribed by IFRS 9,
Other payables to subsidiaries, etc. 15 15 - - 15 which permits the use of the lifetime expected loss pro-
Non-derivative financial liabilities 12,957 6,051 4,044 4,148 14,243 vision for all trade receivables. To measure the expected
Derivatives 418 94 94 230 418 credit losses, trade receivables have been grouped based
Total recognised in balance sheet 13,375 6,145 4,138 4,378 14,661 on shared credit risk characteristics and the days past
due. In accordance with IFRS 9, non-due trade receiva-
Total 6,145 4,138 4,378 14,661 bles have also been impaired.
2018 Other financial assets at amortised cost include loans to

Bank and other credit institutions 3,373 707 2,439 747 3,893 subsidiaries. As of 31 December 2019, the loans amount
Issued bonds 5,373 737 2,505 2,892 6,134 to USD 20.7bn (USD 23.2bn) and are considered to have a
Interest-bearing loans from subsidiaries, etc. 8,743 8,761 - - 8,761 low credit risk, thus the impairment provision to be recog-
Trade payables 73 73 - - 73 nised during the period is limited to 12-month expected
Other payables 110 110 - - 110 losses. The credit risk has not increased significantly since
Other payables to subsidiaries, etc. 18 18 - - 18 the initial recognition and is considered low based on the
Non-derivative financial liabilities 17,690 10,406 4,944 3,639 18,989 investment grade credit rating for the group and conse-
Derivatives 399 155 40 204 399 quently the financial strength of the major subsidiaries
Total recognised in balance sheet 18,089 10,561 4,984 3,843 19,388 within the group. Loan write-downs in 2018 to Maersk
Supply Service A/S and Maersk Container Industry A/S of
Operating lease commitments 15 13 - 28 USD 0.2bn are partly reversed in 2019.
Total 10,576 4,997 3,843 19,416
Note 17 Commitments
The future charter and operating lease payments for continuing operations are: Table 17.1 Capital commitments
Operating lease commitments The company has no material capital commitments at
As part of the company’s activities, customary agree- the end of 2019.
Table 17.1 2019 2018
ments are entered into regarding operating lease of
Within one year 5 15 vessels, equipment and office buildings, etc. 1 The net present value 2018 has been calculated using
Between one and two years - 9 a discount rate of 6% p.a.
Between two and three years - 4 About one-third of the 2018 time charter payments
Total 5 28 within shipping activities are estimated to relate to
operating costs for the assets.
Net present value ¹ 27
Total operating lease costs incurred are stated in
note 2.
Note 18 Contingent liabilities

As part of the divestment of Mærsk Olie og Gas A/S to Guarantees amount to USD 0.4bn (USD 0.5bn). Thereof, countries. Some of these involve significant amounts
Total S.A., the company has assumed a secondary liability USD 0.4bn (USD 0.5bn) is related to subsidiaries. The and are subject to considerable uncertainty.
related to the decommissioning of the offshore facilities guarantees are not expected to be realised, but they can
in Denmark by issuance of a declaration. The company mature within one year. Tax may crystallise on repatriation of dividends. Through
assesses the risk of economic outflows due to this sec- participation in joint taxation scheme with A.P. Møller
ondary liability as very remote. Except for customary agreements within the company’s Holding A/S, the company is jointly and severally liable
activities, no material agreements have been entered into for taxes payable, etc. in Denmark.
As part of the Maersk Drilling demerger, the company that will take effect, change or expire upon changes of
is subject to a statutory demerger liability for liabilities the control over the company.
existing as of 4 March 2019 assigned to The Drilling Com-
pany of 1972 A/S, pursuant of the Danish Companies Act The company is involved in a number of legal disputes.
section 254, subsection 2. The liability is deemed remote. The company is also involved in tax disputes in certain
Note 19 Cash flow specifications

Table 19.1 2019 2018
Change in working capital

Trade receivables -2 47
Other receivables and prepayments -64 234
Trade payables and other payables, etc. 28 -304
Other working capital movements - 1
Exchange rate adjustment of working capital 1 6
Total -37 -16
Note 20 Related parties

Table 20.1 Controlling parties Subsidiaries Associated companies Joint ventures Management ¹ Table 20.1
2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 Joint usage agreement with A.P. Møller Holding A/S
With the objective of further strengthening the value
Continuing operations of the brands, A.P. Møller - Mærsk A/S in 2018 entered
Income statement into a joint usage agreement with A.P. Møller Holding A/S
Revenue - 44 18 11 - - - - - - regarding the use of commonly used trademarks which
Operating costs - - 12 11 - - - - - - historically have benefited both A.P. Møller - Mærsk A/S
Remuneration to management - - - - - - - - 15 12 and A.P. Møller Holding A/S. A.P. Møller Holding A/S is the
Dividends - - 305 3,879 - - 19 - - - controlling shareholder of A.P. Møller - Mærsk A/S and is
Financial income 12 23 1,151 1,261 - - - - - - wholly owned by A.P. Møller og Hustru Chastine Mc-Kinney
Financial expenses 2 1 141 402 - - - - - - Møllers Fond til almene Formaal. The joint usage agree-
ment establishes a framework and a branding strategy for
Assets the commonly used trademarks and a joint brand board,
Interest-bearing receivables, where the parties can cooperate regarding the use of
non-current - - 7,913 20,025 - - - - - -
these trademarks.
Derivatives, non-current - - 4 - - - - - - -
Other receivables, non-current 27 7 - - - - - - - -
A.P. Møller Holding A/S, Copenhagen, Denmark, has control
Trade receivables - - 8 6 - - - - - -
over the company and prepares consolidated financial
Interest-bearing receivables, current - - 12,804 3,144 - - - - - -
statements. A.P. Møller og Hustru Chastine Mc-Kinney
Derivatives, current - - 24 46 - - - - - -
Møllers Fond til almene Formaal is the ultimate owner.
Other receivables, current 5 2 286 251 - - - - - -
Cash and bank balances 644 8 - - - - - - - -
1 The Board of Directors and the Executive Board
in A.P. Møller - Mærsk A/S, A.P. Møller Holding A/S,
Liabilities
A.P. Møller og Hustru Chastine Mc-Kinney Møllers Fond
Derivatives, non-current 33 20 1 3 - - - - - -
til almene Formaal and their close relatives (including
Interest-bearing debt, current - - 5,031 8,743 - - - - - -
undertakings under their significant influence).
Trade payables - - 20 18 - - - - - -
Derivatives, current 5 9 35 40 - - - - - -
Dividends distributed are not included.
Other liabilities, current 6 2 15 13 - - - - - -
Capital increases and purchase of

shares - - 850 5,990 - 24 - - - -
Capital increases, assets held for sale - - - 360 - - - - - -
Return of capital - - 5,780 - - - - - - -
Note 21 Significant accounting policies

The financial statements for 2019 for The reliefs specify that the IBOR reform should not The IBORs’ that the company is affected by are: USD LIBOR, Amendments to IAS 1 and IAS 8 are effective from
A.P. Møller - Mærsk A/S have been prepared on a going generally cause hedge accounting to terminate. Hence, GBP LIBOR, JPY LIBOR, EURIBOR, NIBOR and STIBOR. 1 January 2020 and are endorsed by the EU. Amendments
concern basis and in accordance with the International there are reliefs in the amendments that apply to the to IFRS 3 are also effective from 1 January 2020 and are
Financial Reporting Standards (IFRS) as adopted by the hedging relationships directly affected by the IBOR The accounting policies are furthermore consistent with expected to be endorsed by the EU. IFRS 17 is effective
EU and further requirements in the Danish Financial reform. the accounting policies for the group’s financial state- 1 January 2021 but there is some uncertainty around its
Statements Act. The financial statements are also in ments (note 24 in the consolidated financial statements) EU endorsement date.
accordance with IFRS as issued by the International In summary, the reliefs provided by the amendments with the following exceptions:
Accounting Standards Board (IASB). that apply to the company are: • Shares in subsidiaries and associated companies are The company follows most of the guidelines in the amend-
• When considering the ‘highly probable’ requirement, measured at cost or a lower recoverable amount; ments to IAS 1 and IAS 8, therefore the implementation
The accounting policies of the company are consistent the company has assumed that the different IBOR • Dividends from subsidiaries and associated companies is not expected to result in a significant change to the
with those applied in the financial statements 2018, interest rates on which our hedged debts are based are recognised as income at the time of declaration presentation of the financial statements.
apart from the implementation of IFRS 16 (leases) and do not change as a result of the IBOR reform. unless considered a return of capital in subsidiary;
IFRIC 23 (uncertainties in income taxes). Both have im- • In assessing whether the hedge is expected to be • No segment information is disclosed; IFRS 17: An analysis of the impact is being assessed and
material impact on the financial statements of the com- highly effective on a forward-looking basis, the • Value of granted share options, restricted shares and is expected to be concluded in due course ahead of the
pany. Moreover, in December 2019, the company elected company has assumed that the IBOR interest rates performance shares to employees in subsidiaries is implementation date.
to early adopt the amendments to IFRS 9, IAS 39 & IFRS on which the cash flows of the hedged debt and the expensed directly in the relevant subsidiary. At the time
7 included in IASB’s project ‘Interest Rate Benchmark interest rate swaps that hedge it are based are not of the grant, the subsidiary settles the amount with The IASB has also issued amendments to IFRS 9, IAS 39
Reform‘. altered by IBOR reform. A.P. Møller - Mærsk A/S and the counter posting made and IFRS 7 that are effective from 1 January 2020 and are
• The company will not discontinue hedge accounting in equity. At the time of exercising, the proceeds are endorsed by the EU. In December 2019, the company has
Interest rate benchmark reform during the period of IBOR-related uncertainty as the included in the company's equity. elected to early adopt those amendments.
(Amendments to IFRS 9, IAS 39 & IFRS 7) hedge relationships are still economic relationships.
The company has elected to early adopt the amend- • The company has not recycled the cash flow hedge New financial reporting requirements
ments to IFRS 9, IAS 39 & IFRS 7, ‘Interest Rate Bench- reserve relation to the period after the reforms are The company has not yet adopted the following account-
mark Reform’. The transition provisions require that the expected to take effect. ing standards/requirements:
amendments are adopted retrospectively to hedging • There is no ineffectiveness recognised in profit or loss • Amendments to IAS 1 and IAS 8: Definition of Material
relationships that existed at the start of the reporting as a result of the early adoption of the amendments • Amendments to IFRS 3 – Business Combinations:
period or were designated thereafter, and to the amount to IFRS 9 and IFRS 7. Definition of a Business
accumulated in the cash flow reserve at that date. • IFRS 17 - Insurance contracts
Note 22 Significant accounting estimates and judgements

When preparing the financial statements of the company, Management assesses impairment indicators for invest-
management undertakes a number of accounting esti- ments in subsidiaries and associated companies and
mates and judgements to recognise, measure and classify determines recoverable amount generally consistent with
the company’s assets and liabilities. the assumptions described in notes 6, 7 and 25 of the
consolidated financial statements.
Estimates that are material to the company’s financial re-
porting are made on the basis of, inter alia, determination The accounting estimates and judgements are described
of impairment of financial non-current assets including in further detail in note 25 of the consolidated financial
subsidiaries and associated companies (including assets statements.
held for sale) and recognition and measurements of
provisions. Reference is made to notes 4 and 7.
2019 Financials Statement of the Board of Directors and the Executive Board
Statement of
Executive Board Board of Directors
the Board of Directors Søren Skou — CEO Jim Hagemann Snabe — Chairman
and the Executive Board Carolina Dybeck Happe — CFO Ane Mærsk Mc-Kinney Uggla — Vice Chairman
The Board of Directors and the Executive Board have Vincent Clerc Dorothee Blessing
today discussed and approved the Annual Report of
A.P. Møller - Mærsk A/S for 2019.
Morten H. Engelstoft Bernard L. Bot

The Annual Report for 2019 of A.P. Møller - Mærsk A/S
has been prepared in accordance with International
Financial Reporting Standards (IFRS) as adopted by
the EU and further requirements in the Danish Financial
Henriette Hallberg Thygesen Niels Bjørn Christiansen
Statements Act, and in our opinion gives a true and fair
view of A.P. Moller - Maersk’s and the company’s assets
and liabilities and financial position at 31 December 2019
and of the results of A.P. Moller - Maersk’s and the
Marc Engel
company’s operations and cash flows for the financial
year 2019.
In our opinion, the Directors’ report includes a fair Arne Karlsson

review of the development in A.P. Moller - Maersk’s and
the company’s operations and financial conditions, the
results for the year, cash flows and financial position as
well as a description of the most significant risks and Thomas Lindegaard Madsen
uncertainty factors that A.P. Moller - Maersk and the
company face.
We recommend that the Annual Report be approved Jacob Andersen Sterling

at the Annual General Meeting on 23 March 2020.
Copenhagen, 20 February 2020 Robert Mærsk Uggla

2019 Financials Independent Auditor’s Report
Independent Auditor’s
Report
To the shareholders of A.P. Møller - Mærsk A/S.
Our opinion summary of significant accounting policies for the To the best of our knowledge and belief, prohib-
In our opinion, the consolidated financial state- group as well as for the parent company. Collec- ited non-audit services referred to in Article 5(1) of
ments and the parent company financial state- tively referred to as the “financial statements“. Regulation (EU) No 537/2014 were not provided.
ments (pages 67-138 and 145-147, respectively) give
a true and fair view of the group’s and the parent Basis for opinion Appointment
company’s financial position at 31 December 2019 We conducted our audit in accordance with Inter- We were first appointed auditors of
and of the results of the group’s and the parent national Standards on Auditing (ISAs) and the A.P. Møller - Mærsk A/S on 12 April 2012 for the
company’s operations and cash flows for the additional requirements applicable in Denmark. financial year 2012. We have been reappointed
financial year 1 January to 31 December 2019 in Our responsibilities under those standards and annually by shareholder resolution for a total
accordance with International Financial Reporting requirements are further described in the Auditor’s period of uninterrupted engagement of eight
Standards as adopted by the EU and further require- responsibilities for the audit of the financial state- years including the financial year 2019.
ments in the Danish Financial Statements Act. ments section of our report.
Key audit matters
Our opinion is consistent with our Auditor’s We believe that the audit evidence we have Key audit matters are those matters that, in our
Long-form Report to the Audit Committee and obtained is sufficient and appropriate to provide professional judgement, were of most significance
the Board of Directors. a basis for our opinion. in our audit of the financial statements for 2019.
These matters were addressed in the context of
What we have audited Independence our audit of the financial statements as a whole,
The consolidated financial statements and We are independent of the group in accordance and in forming our opinion thereon, and we do not
parent company financial statements of with the International Ethics Standards Board provide a separate opinion on these matters.
A.P. Møller - Mærsk A/S for the financial year for Accountants’ Code of Ethics for Professional
1 January to 31 December 2019 comprise income Accountants (IESBA Code) and the additional
statement and statement of comprehensive requirements applicable in Denmark. We have
income, balance sheet, cash flow statement, state- also fulfilled our other ethical responsibilities
ment of changes in equity and notes, including in accordance with the IESBA Code.
Revenue recognition Statement on Directors’ report

Management is responsible for Directors’ Report.
Key audit matter How our audit addressed the key audit matter
Recognition of revenue is complex due to the volume of transactions and the Our audit procedures included considering the appropriateness of the revenue Our opinion on the financial statements does not
variety of different revenue streams within the segments. recognition accounting policies and assessing compliance with applicable accounting cover Directors’ Report, and we do not express any
standards. form of assurance conclusion thereon.
We focused on this area due to the significance of amounts involved and because
recognition of revenue involves accounting policy decisions, and judgements We tested the IT setups supporting the revenue recognition as well as relevant internal
made by Management originating from different customer behavior, market con- controls and Management’s monitoring of internal controls. In connection with our audit of the financial
ditions, terms and nature of services in the various segments. Further, the volume statements, our responsibility is to read Directors’
of transactions and extent of different revenue streams require various IT setups We used data analytics on selected revenue streams and performed substantive proce- Report and, in doing so, consider whether Directors’
of revenue recognition, which are complex and introduce an inherent risk to the dures over invoicing and relevant contracts in order to assess the accounting treatment Report is materially inconsistent with the financial
revenue recognition process. and principles applied, and tested journal entries on revenue. Further, we tested timing
statements or our knowledge obtained in the audit,
to ensure that the revenue is recognised in the correct financial year.
Reference is made to notes 1 and 25 in the consolidated financial statements. or otherwise appears to be materially misstated.
Moreover, we considered whether Directors’

Report includes the disclosures required by the
Danish Financial Statements Act.
Recoverability of the carrying amount of property, plant and equipment Based on the work we have performed, in our view,
Directors’ Report is in accordance with the consol-
Key audit matter How our audit addressed the key audit matter
idated financial statements and the parent com-
The most significant risks in relation to Management's assessment of the In addressing the risks, we considered the appropriateness of the defined CGUs within pany financial statements and has been prepared
recoverability of the carrying amount of property, plant and equipment relate the businesses. We examined the methodology used by Management to assess the in accordance with the requirements of the Danish
to the definition of cash-generating units (CGUs), identification of CGUs with carrying amount of property, plant and equipment assigned to CGUs, and the process
Financial Statements Act. We did not identify any
indicators of impairment and, where relevant, the estimate of the fair values less for identifying CGUs that required impairment testing to determine compliance with
material misstatement in Directors’ Report.
costs to sell and the values in use, including determination of key assumptions. IFRS as adopted by the EU.
Bearing in mind the generally long-lived nature of the assets, the most critical We performed detailed testing for the assets where indicators of impairment were Management’s responsibilities for
assumptions in estimating the future cash flows are Management’s long-term identified. For those assets, we tested the fair values less costs to sell or the values the financial statements
outlook for freight and terminal rates, volumes growth, bunker price and capital in use, including analysed the reasonableness of key assumptions in relation to the
Management is responsible for the preparation
expenditures as well as determining the discount rates. ongoing operation of the assets.
of consolidated financial statements and parent
We focused on this area, as the carrying amounts are significant and because We corroborated Management's estimates of future cash flows and challenged whether company financial statements that give a true and
Management is required to exercise considerable judgement because of the these are appropriate in respect of key assumptions, such as freight and terminal rates, fair view in accordance with International Finan-
inherent complexity in estimating of the fair values less costs to sell or the volume growth, bunker price and capital expenditures. cial Reporting Standards as adopted by the EU
values in use.
and further requirements in the Danish Financial
We used our internal valuation specialists to independently calculate the discount rates.
Statements Act, and for such internal control as
Reference is made to notes 7 and 25 in the consolidated financial statements. In calculating the discount rates, the key inputs used were independently sourced from
market data, and we assessed the methodology applied. We compared the discount Management determines is necessary to enable
rates used by Management to our calculated rates. the preparation of financial statements that are
free from material misstatement, whether due
Further, we tested the mathematical accuracy of the relevant fair values less costs to
to fraud or error.
sell and values in use models prepared by Management.
In preparing the financial statements, Manage- intentional omissions, misrepresentations, or direction, supervision and performance of the PricewaterhouseCoopers
ment is responsible for assessing the group’s and the override of internal control. group audit. We remain solely responsible for Statsautoriseret Revisionspartnerselskab
the parent company’s ability to continue as a going • Obtain an understanding of internal control our audit opinion. CVR no. 33 77 12 31
concern, disclosing, as applicable, matters related relevant to the audit in order to design audit
to going concern and using the going concern basis procedures that are appropriate in the circum- We communicate with those charged with govern-
of accounting unless Management either intends stances, but not for the purpose of expressing ance regarding, among other matters, the planned
to liquidate the group or the parent company or an opinion on the effectiveness of the group’s scope and timing of the audit and significant audit
to cease operations, or has no realistic alternative and the parent company’s internal control. findings, including any significant deficiencies in Mogens Nørgaard Mogensen
but to do so. • Evaluate the appropriateness of accounting internal control that we identify during our audit. State Authorised Public Accountant
policies used and the reasonableness of mne21404
Auditor’s responsibilities for the audit accounting estimates and related disclosures We also provide those charged with governance
of the financial statements made by Management. with a statement that we have complied with rele-
Our objectives are to obtain reasonable assurance • Conclude on the appropriateness of Manage- vant ethical requirements regarding independence,
about whether the financial statements as a whole ment’s use of the going concern basis of and to communicate with them all relationships
are free from material misstatement, whether due accounting and based on the audit evidence and other matters that may reasonably be thought Lars Baungaard
to fraud or error, and to issue an Auditor’s Report obtained, whether a material uncertainty exists to bear on our independence, and where applicable, State Authorised Public Accountant
that includes our opinion. Reasonable assurance is related to events or conditions that may cast related safeguards. mne23331
a high level of assurance, but is not a guarantee that significant doubt on the group’s and the par-
an audit conducted in accordance with ISAs and ent company’s ability to continue as a going From the matters communicated with those
the additional requirements applicable in Denmark concern. If we conclude that a material uncer- charged with governance, we determine those
will always detect a material misstatement when it tainty exists, we are required to draw attention matters that were of most significance in the
exists. Misstatements can arise from fraud or error in our Auditor’s Report to the related disclo- audit of the financial statements of the current
and are considered material if, individually or in the sures in the financial statements or, if such dis- period and are therefore the key audit matters.
aggregate, they could reasonably be expected to closures are inadequate, to modify our opinion. We describe these matters in our Auditor’s Report
influence the economic decisions of users taken Our conclusions are based on the audit evidence unless law or regulation precludes public disclo-
on the basis of these financial statements. obtained up to the date of our Auditor’s Report. sure about the matter or when, in extremely rare
However, future events or conditions may circumstances, we determine that a matter should
As part of an audit in accordance with ISAs and the cause the group or the parent company to not be communicated in our report because the
additional requirements applicable in Denmark, we cease to continue as a going concern. adverse consequences of doing so would reason-
exercise professional judgement and maintain pro- • Evaluate the overall presentation, structure ably be expected to outweigh the public interest
fessional scepticism throughout the audit. We also: and content of the financial statements, benefits of such communication.
• Identify and assess the risks of material mis- including the disclosures, and whether the
statement of the financial statements, whether financial statements represent the under- Copenhagen, 20 February 2020
due to fraud or error, design and perform audit lying transactions and events in a manner
procedures responsive to those risks, and obtain that achieves fair presentation.
audit evidence that is sufficient and appropriate • Obtain sufficient appropriate audit evidence
to provide a basis for our opinion. The risk of not regarding the financial information of the enti-
detecting a material misstatement resulting ties or business activities within the group to
from fraud is higher than for one resulting from express an opinion on the consolidated finan-
error, as fraud may involve collusion, forgery, cial statements. We are responsible for the
2019 Additional information
Additional
information
Quarterly summary
Company overview1
Stock exchange announcements
Definition of terms
External financial reporting for A.P. Moller - Maersk2
1 Part of Financials
2 Part of Directors’ report
2019 Additional information Quarterly summary Amounts in USD million
Quarterly summary
2019 2018 ¹ 1 Quarterly figures for 2018 presented as if IFRS 16 had
Income statement Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 been implemented in 2018, for comparison purposes.
Revenue 9,668 10,055 9,627 9,540 10,235 10,149 9,568 9,305

Profit before depreciation, amortisation and impairment
losses, etc. (EBITDA) 1,463 1,656 1,357 1,236 1,449 1,456 1,162 931
Depreciation, amortisation and impairment losses, net 1,160 1,021 1,024 1,082 1,168 1,402 1,166 1,020
Gain on sale of non-current assets, etc., net 1 36 16 18 76 44 13 33
Share of profit/loss in joint ventures 4 31 34 24 - 40 39 37
Share of profit/loss in associated companies 34 35 33 34 -80 -78 17 26
Profit/loss before financial items (EBIT) 342 737 416 230 277 60 65 7
Financial items, net -212 -148 -170 -228 -222 -170 -154 -220
Profit/loss before tax 130 589 246 2 55 -110 -89 -213
Tax 191 69 92 106 127 109 64 98
Profit/loss for the period – continuing operations -61 520 154 -104 -72 -219 -153 -311
Profit/loss for the period – discontinued operations - - -1 -552 116 569 121 2,981
Profit/loss for the period -61 520 153 -656 44 350 -32 2,670
A.P. Møller - Mærsk A/S’ share -72 506 141 -659 32 338 -41 2,656
Underlying profit/loss – continuing operations 29 452 134 -69 65 188 15 -329
Balance sheet
Total assets 55,399 55,662 56,555 61,701 62,690 67,872 67,157 67,641
Total equity 28,837 28,879 28,997 32,843 33,205 33,959 33,435 34,217
Invested capital 40,555 40,938 41,910 46,491 49,255 52,591 53,854 53,794
Net interest-bearing debt 11,662 12,056 12,910 12,565 14,953 18,718 20,517 19,630
Cash flow statement

Cash flow from operating activities 1,535 1,732 1,170 1,482 1,697 1,387 630 728
Gross capital expenditure, excl. acquisitions and divestments
(gross CAPEX) 469 343 445 778 669 409 782 1,359
Net cash flow from discontinued operations - - -419 47 1,402 98 175 2,293
Financial ratios
Revenue growth -5.5% -0.9% 0.6% 2.5% 20.4% 30.5% 23.3% 30.2%
Revenue growth excl. Hamburg Süd (2018) 9.1% 10.9% 4.1% 8.8%
EBITDA margin 15.1% 16.5% 14.1% 13.0% 14.2% 14.3% 12.1% 10.0%
Cash conversion 105% 105% 86% 120% 117% 95% 54% 78%
Return on invested capital after tax – continuing operations (ROIC) 1.7% 6.4% 3.1% 1.3% 1.2% -0.2% 0.1% -0.5%
Stock market ratios

Share price (B share), end of period, DKK 9,608 7,746 8,142 8,442 8,184 9,020 7,948 9,344
Share price (B share), end of period, USD 1,439 1,132 1,241 1,270 1,255 1,401 1,243 1,556
2019 Additional information Company overview
Company overview Subsidiaries

Company Country of incorporation Owned share
APM Terminals Lázaro Cárdenas S.A. de C.V. Mexico 100%

APM Terminals Liberia Ltd. Liberia 75%
A.P. Moller - Maersk comprises more than 760 companies
APM Terminals Maasvlakte II B.V. The Netherlands 100%
of which the largest are listed below. The Danish Financial APM Terminals Management B.V. The Netherlands 100%
Statements Act section 97a, par. 4 has been applied in the APM Terminals Mobile, LLC USA 100%
company overview. APM Terminals Moin S.A. Costa Rica 100%
APM Terminals North America B.V. The Netherlands 100%
A more comprehensive list of companies is available at APM Terminals Pacific LLC USA 100%
APM Terminals Rotterdam B.V. The Netherlands 100%
https://investor.maersk.com/financials.cfm
APM Terminals Tangier S.A. Morocco 90%
Aqaba Container Terminal Company Ltd. Jordan 50%
Bermutine Transport Corporation Ltd. Bermuda 100%
Coman S.A. Benin 100%
Container Operators S.A. Chile 100%
Damco (UAE) FZE United Arab Emirates 100%
Damco A/S Denmark 100%
Subsidiaries Damco Australia Pty. Ltd. Australia 100%
Damco Belgium N.V. Belgium 100%
Company Country of incorporation Owned share
Damco China Ltd. China 100%
A.P. Moller Finance S.A. Switzerland 100% Damco Distribution Services Inc. USA 100%
A.P. Moller Singapore Pte. Ltd. Singapore 100% Damco France S.A.S. France 100%
A/S Maersk Aviation Holding Denmark 100% Damco India Pvt. Ltd. India 100%
Addicks & Kreye Container Service GmbH & Co. KG Germany 51% Damco International A/S Denmark 100%
Aliança Navegação e Logística Ltda. Brazil 100% Damco Logistics Uganda Ltd. Uganda 100%
APM Terminals - Aarhus A/S Denmark 100% Damco Sweden AB Sweden 100%
APM Terminals Algeciras S.A. Spain 100% Damco UK Ltd. UK 100%
APM Terminals Apapa Ltd. Nigeria 94% Damco USA Inc. USA 100%
APM Terminals B.V. The Netherlands 100% Farrell Lines Inc. USA 100%
APM Terminals Bahrain B.S.C. Bahrain 80% Gateway Terminals India Pvt. Ltd. India 74%
APM Terminals Callao S.A. Peru 51% Hamburg Südamerikanische Dampfschifffahrts-
APM Terminals China Co. Ltd. Hong Kong 100% Gesellschaft A/S and Co KG¹ Germany 100%
APM Terminals Elizabeth, LLC USA 100%
APM Terminals Gothenburg AB Sweden 100%
1 Hamburg Südamerikanische Dampfschifffahrts-Gesellschaft A/S and Co KG, Hamburg is in accordance with
APM Terminals India Pvt. Ltd. India 100%
paragraph 264b HGB (German commercial code) be exempt to prepare, audit and disclose statutory financial
APM Terminals Inland Services S.A. Peru 100%
statements and a management report in accordance with the German commercial law.
Subsidiaries Subsidiaries
Company Country of incorporation Owned share Company Country of incorporation Owned share
Lilypond Container Depot Nigeria Ltd. Nigeria 100% Rederiet A.P. Møller A/S Denmark 100%
Maersk (China) Shipping Company Ltd. China 100% Safmarine (Pty) Ltd. South Africa 100%
Maersk A/S Denmark 100% Safmarine MPV N.V. Belgium 100%
Maersk Agency U.S.A. Inc. USA 100% Sealand Europe A/S Denmark 100%
Maersk B.V. The Netherlands 100% Sealand Maersk Asia Pte. Ltd. Singapore 100%
Maersk Bangladesh Ltd. Bangladesh 100% Sogester - Sociedade Gestora De Terminais S.A. Angola 51%
Maersk Container Industry A/S Denmark 100% Suez Canal Container Terminal SAE Egypt 55%
Maersk Container Industry Qingdao Ltd. China 100% Svitzer A/S Denmark 100%
Maersk Denizcilik A.Ş. Turkey 100% Svitzer Australia Pty Ltd Australia 100%
Maersk Egypt For Maritime Transport SAE Egypt 100% Svitzer Marine Ltd. UK 100%
Maersk FPSOs A/S Denmark 100% Terminal 4 S.A. Argentina 100%
Maersk Gabon S.A. Gabon 100% U.S. Marine Management, Incorporated USA 100%
Maersk Global Service Centres (Chengdu) Ltd. China 100% West Africa Container Terminal Nigeria Ltd. Nigeria 100%
Maersk Global Service Centres (India) Pvt. Ltd. India 100%
Maersk Holding B.V. The Netherlands 100%
Maersk Hong Kong Ltd. Hong Kong 100%
Maersk Inc. USA 100%
Maersk Inter Holding B.V. The Netherlands 100%
Maersk Line Agency Holding A/S Denmark 100%
Maersk Line UK Ltd. UK 100%
Maersk Line, Limited USA 100%
Maersk Logistics Warehousing China Company Ltd. Hong Kong 100%
Maersk Oil Trading and Investments A/S Denmark 100%
Maersk Oil Trading Inc. USA 100%
Maersk Shipping Hong Kong Ltd. Hong Kong 100%
Maersk Supply Service (Angola) Lda. Angola 49%
Maersk Supply Service A/S Denmark 100%
Maersk Supply Service Canada Ltd. Canada 100%
Maersk Supply Service International A/S Denmark 100%
Maersk Supply Service UK Ltd. UK 100%
Maersk Vietnam Ltd. Vietnam 100%
New Times International Transport Service Co. Ltd. China 100%
Poti Sea Port Corporation Georgia 100%
PT Damco Indonesia Indonesia 98%
Rederiaktieselskabet Kuling Denmark 100%
Associated companies Joint ventures

Company Country of incorporation Owned share Company Country of incorporation Owned share
Abidjan Terminal S.A. Ivory Coast 49% Anchor Storage Ltd. Bermuda 51%
Brigantine International Holdings Ltd. Hong Kong 30% Brasil Terminal Portuario S.A. Brazil 50%
Brigantine Services Ltd. Hong Kong 30% Cai Mep International Terminal Co. Ltd. Vietnam 49%
Congo Terminal Holding S.A.S. France 30% Douala International Terminal S.A. Cameroon 40%
Congo Terminal S.A. Republic of the Congo 23% Eurogate Container Terminal Wilhelmhaven
Cosco Ports (Nansha) Ltd. British Virgin Islands 34% Beteiligungsgesellschaft GmbH Germany 30%
Guangzhou South China Oceangate Container Terminal Co. Ltd. China 20% First Container Terminal ZAO Russian Federation 31%
Gujarat Pipavav Port Ltd. India 43% Global Ports Investments PLC Cyprus 31%
Höegh Autoliners Holdings AS Norway 39% North Sea Terminal Bremerhaven Verwaltungsgesellschaft GmbH Germany 50%
Meridian Port Services Ltd. Ghana 42% Petrolesport OAO Russian Federation 31%
Pelabuhan Tanjung Pelepas Sdn. Bhd. Malaysia 30% Qingdao New Qianwan Container Terminal Co. Ltd. China 19%
Salalah Port Services Company S.A.O.G. Oman 30% Qingdao Qianwan Container Terminal Co. Ltd. China 20%
Shanghai Tie Yang Multimodal Transportation Co. Ltd. China 29% Shanghai East Container Terminal Co. Ltd. China 49%
South Asia Gateway Pvt. Ltd. Sri Lanka 33% Smart International Logistics Company Ltd. China 49%
Tianjin Port Alliance International Container Terminal Co. Ltd. China 20% South Florida Container Terminal LLC USA 49%
Vostochnaya Stevedore Company OOO Russian Federation 31%
Xiamen Songyu Container Terminal Co. Ltd. China 25%
2019 Additional information Stock exchange announcements
Stock exchange announcements

The complete list of announcements is available at
https://investor.maersk.com/press-releases
7 February 3 June
• Publication of Maersk Drilling Holding A/S’ • A.P. Møller - Mærsk A/S – Initiates first
consolidated annual report for 2018 including phase of share buy-back programme
guidance for 2019
15 August
21 February • A.P. Møller - Mærsk A/S - Interim Report
• A.P. Møller - Mærsk A/S initiates demerger and Q2 2019
separate listing of Maersk Drilling Holding A/S
• Annual Report 2018 26 September
• Initiates second phase of share buy-back
4 March programme
• Publication of demerger plan
• A.P. Møller - Mærsk A/S – Proposal for election 21 October
of new members for the Board of Directors • A.P. Møller - Mærsk A/S – Upgrades
EBITDA expectation for 2019
• Notice convening the Annual General Meeting
2019 in A.P. Møller - Mærsk A/S
11 November
2 April • Management change
• Completion of demerger adopted
15 November
• Development of the Annual General Meeting
on Tuesday 2 April 2019 • Interim Report Q3 2019
• Articles of Association for • Financial Calendar 2020

25 November
3 April • Management change
• Management change
17 December
24 May • Management change
• Interim Report Q1 2019
• Share buy-back programme of DKK 10 billion
(around USD 1.5 billion)
2019 Additional information Definition of terms
Definition of terms
IMO 2020 Terminals & Towage, annualised EBITDA per tug
The International Maritime Organization’s (IMO) 0.5% global (terminal towage) (USD in ‘000)
cap on sulphur dioxide (SOx) content in fuels for shipping has Annualised EBITDA per tug equivalent (pilot boats and others
entered into force on 1 January 2020. count for 0.5).
Loaded volumes Terminals & Towage, number of operational

Loaded volumes refer to the number of FFEs loaded on tug jobs (harbour towage) (‘000)
Technical terms, abbreviations and definitions of key figures and financial ratios. a shipment which are loaded on first load at vessel Tug jobs on which Svitzer performs the physical job, which
departure time excluding displaced FFEs. include jobs where Svitzer has the commercial contract with
the customer as well as jobs which Svitzer receives from the
Logistics & Services gross profit growth, % competitor through over-flow or other agreements.
Alphaliner Discontinued operations Logistics & Services gross profit is a sum of revenue, variable
Alphaliner is a worldwide provider of container shipping data Discontinued operations are a major line of business (disposal costs and loss on debtors for Damco and inland services. For TEU
and analysis. group) that is either held for sale or has been sold in previous Star Air, intermodal and trade finance, EBITDA figure is used. Twenty-foot container Equivalent Unit.
periods. The disposal group is reported separately in a single
Backhaul line in the income statement and cash flow statement. Com- Net interest-bearing debt (NIBD) Time charter
The direction of the trade route that has the lowest volumes, parison figures are restated. In the balance sheet assets and Equals interest-bearing debt, including fair value of derivatives Hire of a vessel for a specified period.
whereas the opposite direction is referred to as headhaul. liabilities are classified and disclosed separately on an aggre- hedging the underlying debt, less cash and bank balances as
gate level as assets held for sale and liabilities associated well as other interest-bearing assets. Total market capitalisation
CAPEX with assets held for sale. In the balance sheet comparison Total number of shares – excluding A.P. Møller - Mærsk A/S’
Cash payments for intangible assets and property, plant and figures are not restated. Discontinued operations include Non-Ocean revenue growth, % holding of own shares – multiplied by the end-of-year price
equipment, excluding acquisitions and divestments. Maersk Drilling up to demerger in April 2019, Maersk Oil up Non-Ocean includes the current Logistics & Services, quoted by Nasdaq Copenhagen.
to closing in March 2018, and Maersk Tankers up to closing Terminals & Towage and Manufacturing & Others segments,
Capitalised lease payments in October 2017. but excludes Maersk Oil Trading and tramp activities acquired Underlying profit/loss
Interest payments and repayments on all lease contracts as part of the Hamburg Süd transaction. Underlying profit/loss is profit/loss for the year from con-
capitalised under IFRS 16 (including financial lease contracts EBITDA tinuing operations adjusted for net gains/losses from sale
capitalised under IAS 17). Earnings Before Interest, Taxes, Depreciation and Amortisation. Ocean, hub productivity (PMPH) of non-current assets, etc. and net impairment losses as well
Productivity is calculated as the average of the gross moves as transaction, restructuring and integration costs related to
Cash conversion Equity ratio per hour for each call. Gross moves per hour for a single vessel major transactions. The adjustments are net of tax and include
Cash flow from operating activities to EBITDA ratio. Calculated as equity divided by total assets. call is defined as the total container moves (on load, off load A.P. Moller - Maersk’s share of mentioned items in joint ven-
and repositioning) divided by the number of hours for which tures and associated companies.
Cash flow from operating activities per share Equity weighted EBITDA the vessel is at berth.
A.P. Moller - Maersk’s operating cash flow from continuing EBITDA weighted on terminal ownership percentages of all VSA
operations divided by the number of shares (of DKK 1,000 entities (subsidiaries, joint ventures and associated companies). Ocean, loaded freight rate (USD per FFE) Vessel Sharing Agreement is usually reached between various
each), excluding A.P. Moller - Maersk’s holding of own shares. Average freight rate per FFE for all the Maersk containers partners within a shipping consortium who agree to operate
FFE loaded in the period in either Maersk Line or Hamburg Süd a liner service along a specified route using a specified num-
Cash return on invested capital (CROIC), % Forty Foot container Equivalent unit. vessels or third parties (excluding intermodal). Hamburg Süd ber of vessels.
Cash return on invested capital is calculated as free cash flow is not excluding intermodal.
excluding acquisitions/divestments (Cash flow from operating Free cash flow 4PL
activities – gross CAPEX) divided by average invested capital Cash flow from operating activities less cash flow from invest- Ocean, unit cost, fixed bunker (USD per FFE incl. VSA income) A 4PL is a fourth-party logistics provider managing resources,
for continuing operations. ing activities. Lease payments (Repayments of lease liabil- Cost per FFE assuming a bunker price at USD 200/tonne technology, infrastructure, and managing external 3PLs to
ities and financial expenses paid on lease liabilities)are not excluding intermodal but including hubs and time charter design, build and provide supply chain solutions for businesses.
Cost base included in the free cash flow. income. Hamburg Süd is not excluding intermodal.
EBIT costs including VSA income and hub income and adjust-
ments for restructuring costs, the result from associated GDP multiplier Return on equity after tax
companies and gains/losses. Is defined as global container growth divided by global GDP Calculated as the profit/loss for the year divided by the
growth. average equity.
Demurrage and detention
Compensation payable when a customer holds Maersk’s Gross profit Return on invested capital after tax (ROIC)
containers beyond the agreed amount of free time, includ- The sum of revenue, less variable costs and loss on debtors. Profit/loss before financial items for the year (EBIT) less tax
ing any storage costs that Maersk may have incurred in on EBIT divided by the average invested capital.
connection therewith as well as compensation by way of Headhaul
liquidated damages for not having the containers available The direction of the trade route that has the highest volume, Revenue backlog
for circulation. whereas the return direction is referred to as backhaul. The value of future revenue covered by contracts.
2019 Additional information External financial reporting for A.P. Moller - Maersk
External financial reporting

for A.P. Moller - Maersk
A.P. Moller - Maersk provides additional disclosure to satisfy legal requirements
and stakeholder interests. Supplementary reports can be downloaded from
https://investor.maersk.com/financial-reports, while additional information
https://investor.maersk.com/financial-reports
can be found here.
Annual Report The Interim reports, presentations and webcasts Sustainability and gender composition
The statutory Annual Report is available in elec- can be found on our Investor Relations website at of management
tronic format at https://investor.maersk.com/ https://investor.maersk.com/ An independently assured Sustainability Report
financial-reports for 2019 has been published, which provides
Quarterly figures for 2010-2019 are available at detailed information on Maersk’s sustainability
The Annual Report has been prepared in accord- https://investor.maersk.com/financials.cfm performance. The report serves as Maersk’s Com-
ance with the International Financial Reporting munication on Progress as required by the UN
Standards (IFRS) as adopted by the EU and fur- Recommendations for Corporate Global Compact and ensures compliance with the
ther requirements in the Danish Financial State- Governance requirements of Section 99a and b of the Danish
ments Act. The Board of Directors of A.P. Møller - Mærsk A/S Financial Statements Act, on corporate social
continues to consider the ’Recommendations for responsibility and reporting on the gender com-
Interim Reports Corporate Governance’ implemented by Nasdaq position of management. The report is available at
Maersk also produces quarterly Interim Reports Copenhagen. For further information, see page 55 https://www.maersk.com/about/sustainability/
with the separate Q4 2019 Interim Report being of the Annual Report. reports
a new initiative.
Remuneration Report Additional information on how Maersk manages
Additional information The Remuneration Report includes the total issues and explains implementation, progress and
To further add value and with a focus on the pro- remuneration received by each member of the relevant commitments and frameworks can be
fessional segment and others with more specific Board of Directors and the Executive Board of found on the Sustainability website at https://
interests, detailed presentations are available A.P. Møller - Mærsk A/S for 2019. The report is www.maersk.com/about/sustainability
each quarter following the release of the Interim available at https://investor.maersk.com/remu-
Reports and the Annual Report. neration
2019 Colophon
Colophon
Board of Directors, A.P. Møller - Mærsk A/S Audit Committee
Jim Hagemann Snabe, Chairman Arne Karlsson, Chairman
Ane Mærsk Mc-Kinney Uggla, Vice Chairman Bernard L. Bot
Dorothee Blessing Jim Hagemann Snabe
Bernard L. Bot
Niels Bjørn Christiansen Remuneration Committee
Marc Engel Jim Hagemann Snabe, Chairman
Arne Karlsson Niels Bjørn Christiansen
Thomas Lindegaard Madsen Robert Mærsk Uggla
Jacob Andersen Sterling
Robert Mærsk Uggla Nomination Committee
Ane Mærsk Mc-Kinney Uggla, Chairman
Executive Board, A.P. Møller - Mærsk A/S Jim Hagemann Snabe

Editors Søren Skou, Chief Executive Officer (CEO) Robert Mærsk Uggla
Stig Frederiksen
Finn Glismand Carolina Dybeck Happe (CFO)
Vincent Clerc Transformation & Innovation Committee

Company stories
Reliability on the spot, Morten H. Engelstoft Niels Bjørn Christiansen, Chairman
by Taylor Johnson
Henriette Hallberg Thygesen Jim Hagemann Snabe
Keeping cool in a hot market,
by Jesper Toft Madsen Robert Mærsk Uggla
Design and layout

e-Types Auditor
ISSN 1604-2913 PricewaterhouseCoopers

Produced in Denmark 2020 Statsautoriseret Revisionspartnerselskab
Esplanaden 50, DK-1098 Copenhagen K
+45 33 63 33 63
www.maersk.com
investorrelations@maersk.com

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ALL THE WAY

A.P. Møller - Mærsk A/S

Guidance for 2020

5,919 2,035 11,662 14,953 14,971

Message from the Chairman

In the autumn of 2016, A.P. Moller - Maersk

At the time, we were challenged by declining

We decided to transform A.P. Moller - Maersk from

Our vision is to build a company that delivers true

Simpler and better customer

Highlights for the year

Free cash flow

The proposed dividend payment represents an

During Q4, Maersk bought back 43,638 A shares

At 31 December, A.P. Moller - Maersk owns a total of

A.P. Moller - Maersk recognised a loss of USD

Guidance for 2020

Sensitivities on guidance for 2020

Factors Revenue Effect on EBITDA

Container freight rate +/- 100 USD/FFE +/- USD 1.3bn

Container freight volume +/- 100,000 FFE +/- USD 0.1bn

Five-year summary 1/2

Underlying profit/loss – continuing operations:

Cash flow statement

Five-year summary 2/2

Stock market ratios

Market update Table 1: Market demand growth

Market developments Chart 1: Global, East-West and North-South container imports

The global container fleet stood at 23.2m TEU at

784k TEU were ordered in 2019, corresponding to Chart 3: Freight rates

estimate), in line with global headhaul demand. Source: C

Technology is working as a key pull and push factor

concerns accelerate these trends. The GDP multipliermultiplier

Reliability on the spot

Keeping cool in a hot market

Business model Value created

Our investors — in our transformation to

The environment — our industry is a sig-

Key resources nificant contributor to global greenhouse

Our brand — for more than a century, we have

Transport the goods Connecting and simplifying

Stakeholder relationships — we rely on con-

customers, suppliers, peers and authorities to

Global trade is a key contributor to economic devel-

Container logistics play a significant role in global

Keeping track of the transformation

Non-Ocean revenue increased by 0.1% in 2019,

ALL THE WAY

Customers do not like disruptions to their supply

For customers such as The Ramco Cements Limited,

“We send around 120-200 containers to Colombo

Shippers double book Shippers cancel or abandon

Continuous challenge results

Sustainability Performance highlights 2019

In 2019, a step change in the commitment to sustainability took place

ALL THE WAY

Whether you are transporting fruits, fish or medi-

Importing and exporting fresh and frozen prod-

customers’ need for high-quality capacity on a

Consolidated balance sheet at 31 December