A.P. Moller- Maersk Group Heritage

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(No Transcript)
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Agenda

• A.P. Moller- Maersk Group Heritage
• APM Terminals Today
• A Look at the Industry and Market

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APM Terminals Part of the A.P. MollerMaersk
Group

• A.P. Moller-Maersk Group
• HQ Copenhagen, Denmark
• 2008 Revenue 61.2 b
• in Shipping, Container Business, Energy, Retail
  and Banking.
• 120,000 employees, 130 countries.
• APM Terminals
• HQ The Hague, Netherlands
• 2008 Revenue 3.1 b
• 24 over 2007.
• Container volume 34 million TEUs (weighted by
  terminal equity share), 8
• 20,000 employees, 34 countries.

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Our position within the Group
Nils S. Andersen CEO
CFO
Group Human Resources Bill Allen
Group Accounting Per Møller
Group Legal Christian Kledal
Group Relations Steen Reeslev
Group Finance Risk Management Jan Kjærvik
Group IT Flemming Steen
Group Strategy Martin Thaysen
Investor Relations Anders M. Christensen
Special Projects Flemming Ipsen
Maersk Oil Thomas Thune Andersen
Maersk Drilling Claus V. Hemmingsen
Odense Steel Shipyard Finn Buus Nielsen
Maersk Line Eivind Kolding
APM Terminals Kim Fejfer
Maersk Tankers Søren Skou
Dansk Supermarked Erling Jensen
Maersk FPSOs Paul C. Pedersen
Safmarine Ivan Heesom-Green
Maersk Logistics / Damco Rolf Habben-Jansen
Container Inland Services Nigel Simon Pusey
Norfolkline Thomas Woldbye
Maersk Supply Service Carsten P. Andersen
Oil Trading Niels Henrik Lindegaard
Svitzer Jesper Teddy Lok
Technical Organisation Leif Nielsen
Procurement Steen S. Karstensen
Corporate Centre
Partner and member of the Executive Board
Service Function
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Core Business

• The design, development, implementation,
  operation and management of the worlds only true
  geographically balanced Global Container Terminal
  Network.
• Our portfolio includes 50 terminals and offices
  in 34 countries, on five continents.
• APM Terminals has an annual throughput of 34
  million TEUs and global market share of 6.6

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Half a Century of innovation, growth and progress
at the forefront of a world-changing industry.
1958
First dedicated A.P. Moller terminal facility
opens, at the Port of New York
1970s
Containerization begins to change patterns of
global trade and growth
1980s
Ongoing evolution of containerization and
economic efficiencies of international trading
patterns lead to the rapid establishment of
global port load centers and transhipment
networks, requiring highly coordinated and
specialized container terminal operations and
equipment to accommodate ever larger vessels and
container flows
1999
Maersk Line acquisition of Sea-Land enlarges
scope of terminal operations globally
2001
Established as independent container terminal
operating company within Maersk Line
2004
Spun off as independent corporate entity,
headquarters in The Hague, Netherlands
2007
Revenue of 2.5 billion, 111 million in profit
APMT reports earnings separately
2008
Only true Global Terminal Network in port
industry throughput 34 million TEUs
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Agenda

• A.P. Moller-Maersk Group Heritage
• APM Terminals Today
• A Look at the Industry and Market

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Since establishment as a separate and independent
business unit in 2004, APM Terminals has thrived
Revenue
APM Terminals Financial results 2004-2008 (USD
million)
Operating Cash Flow
Net Result
3,126
2,520
2,068
1,504
1,313
502
259
160
223
226
125
106
98
48
75
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APM Terminals Volume Growth
APM Terminals 2008 Throughput 34 million TEUs
Weighted by terminal equity share
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A strong performance in 2008 despite the global
economic downturn outperforming the market 1st
Quarter 2009
USD million 2008 2007 Index 2008/07
Revenue 3,119 2,519 124
EBITDA 573 415 138
Sales gains 67 1 N/A
EBIT 314 179 175
Net profit 161 106 152
Operating cash flow 501 260 193
Investment cash flow -723 -853 85
APMT volume 2008 (TEU)
Recent Developments

• In face of severe industry downturn and global
  economic recession, priority of cost reductions
  and operational improvements at existing
  terminals
• Investment focus on existing terminals and
  projects including Luanda (Angola), Apapa
  (Nigeria) and Cai Mep (Vietnam)

• 1st Q 2009 Revenue USD 675 million
• 1st Q 2009 EBITDA USD 131 million
• 1st Q 2009 overall global container volume
  decline of 16
• 1st Q 2009 APM Terminals adjusted volume decline
  of 8

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Business Divisions are divided into Existing
Terminals and New Terminals to optimize focus and
performance.
CEO Kim Fejfer
Strategy Francois-Xavier Delenclos
Finance, Legal, Tax IT Christian Laursen
HR Tiemen Meester
Commercial Dick Mitchell
Communications Pieter Schaffels
EXISTING TERMINALS Africa, Mideast and
India Charles Menkhorst
EXISTING TERMINALS Europe Martin Poulsen
EXISTING TERMINALS Asia Pacific Martin
Christiansen
EXISTING TERMINALS Americas Eric Sisco
NEW TERMINALS Peder Sondergaard Klaus Sejling
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Regional structure
Corporate Head office The Hague, Netherlands
Americas Portsmouth, Virginia USA

• Better access to customers and markets.
• Accelerated decision-making and execution.

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World Map
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Americas Region
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Europe Region
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Africa, Mideast and India Region
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Asia Pacific Region
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An example of putting our ambition into practice
- In Apapa, Nigeria we significantly improved
service safety levels
Takeover

• What did we do?
• Reduced vessel waiting time
• Improved Safety and Security
• Increased capacity and throughput
• Total CAPEX 200m USD

Before takeover
After takeover
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Another example Aqaba Container Terminal - a
successful privatization

• What did we do?
• Investment in Cranes (Phase 1)
• Yard Procedures and IT Systems
• Improved Productivity
• Signed Management Agreement (2004)
• Joint Development Agreement - 25 Years (2006)

• ACT Before APM Terminals
• Terminal Congestion
• Extreme delay of Vessel Container Delivery
• No Safety No IT system

• ACT Present
• 42.7 Volume Growth in 2008
• Gateway to Iraq and Levant
• Sustained Profitability competitiveness
• Putting local staff in senior positions

• ACT Future
• 750.000 TEU Capacity
• Investment in Cranes and Extension of the wharf
• The preferred Port in the Red Sea.
• 2.4 m TEU Capacity in 2020

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Agenda

• A.P. Moller-Maersk Group Heritage
• APM Terminals Today
• A Look at the Industry and Market

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Container Terminals Serve the Worlds
Containerized Trade

• Today, 6,050 vessels serve liner trade routes,
  representing an aggregate container capacity of
  13.2 million TEUs.
• Of these, 4,684 are pure containerships,
  representing approximately 12.5 million TEUs of
  capacity.
• There are an additional 748 container vessels on
  order, representing an additional 4.7 million
  TEUs of capacity, or 37 of the existing fleet
  capacity.
• The three largest containership operators
  account for more than one third (34.2) of the
  worlds total containership capacity.
• The top seven shipping companies represent half
  (50)of the total global fleets current
  containership capacity.

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The Global Container Terminal Industry has
enjoyed consistent growth
World container port throughput

• 10 CAGR from 1990 - 2007
• 0 for 2009 / 2010 ?
• 6 - 8 CAGR next 5 years?

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Worlds Largest Containerports 2008
Port (Location) Volume (Million TEUs)
Singapore 29.9
Shanghai (China) 27.9
Hong Kong 24.2
Shenzhen (China) 21.4
Busan (Korea) 13.4
Dubai (UAE) 11.8
Ningbo (China) 11.2
Guangzhou (China) 11.0
Rotterdam (Netherlands) 10.8
Qingdao (China) 10.3
Hamburg (Germany) 9.7
Kaohsiung (Taiwan) 9.6
Antwerp (Belgium) 8.6
Tianjin (China) 8.5
Port Klang (Malaysia) 7.9
Los Angeles (USA) 7.8
Long Beach (USA) 6.4
Tanjung Pelepas (Malaysia) 5.6
Bremen/Bremerhaven (Germany) 5.5
New York/New Jersey (USA) 5.2
APM Terminals Global Terminal Network locations
in Bold Italic
(Source Containerisation International)
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Market Share Comparison
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Top 20 Containership Lines (Fleet Capacity)
(Source AXS-Alphaliner, March 2008)
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APM Terminals redefining the industry it helped
to create.

• Most geographically balanced portfolio of any
  operator.
• Strong financial backing of A.P. Moller-Maersk
  Group.
• Industry-leading, customer-driven efficiency and
  innovation.
• As an independent operator can serve multiple
  customers.
• Comprehensive new terminal development and
  existing facility expansion.
• Equipped to serve larger vessels entering the
  global fleet.
• Corporate commitment to improvement in
• Health and Safety
• Security
• Environment
• Society