#1111 Date: 13 May 2020 Conference Call: 11:00 CET Webcast: investor.maersk.com SAM A.P. Møller-Mærsk A/S Q1 2020 investor and analyst presentation MAERSK#2Forward-looking statements 2 Q1 2020 interim report This presentation contains forward-looking statements. Such statements are subject to risks and uncertainties as various factors, many of which are beyond the control of A.P. Møller - Mærsk A/S (APMM), may cause actual developments and results to differ materially from the expectations contained in this presentation. Comparative figures Unless otherwise stated, all comparisons refer to y/y changes. From Q1 2020, the reporting segments have been changed, and comparable figures are restated (see Interim Report Q1 for details). MAERSK#3Q1 2020 Key statements 3 Q1 2020 interim report MAERSK#4Strategic transformation The journey towards higher earnings and cash flow progresses Cash flow generation* USDm 4 1,700 1,400 1,100 0 Q116 USDm 25,000 21,000 17,000 13,000 9,000 0 Q116 Q3 16 Q3 16 Q117 Q3 17 Q1 18 Q3 18 Q1 19 Q1 2020 interim report EBITDA Net interest bearing debt Q117 Q3 17 Q1 18 Q3 18 Q1 19 Q3 19 LTM Q3 19 Q1 20 THE Q1 20 USDm 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 USDm 2,000 1,500 1,000 500 0 -500 -1,000 Percent 12% 9% 6% Q1 19 Q3 19 Q1 20 Q116 Q3 16 Q1 17 Q3 17 Q1 18 *) Cash flow generation = CFFO - Capex + dividends received from JV's and associates CROIC 3% 0% -3% Q116 Q3 16 Q1 17 I Q3 17 Hilli Q3 18 Q1 18 Q3 18 Note: 2016-2017 IFRS16 adjustments have been simulated based on 2018 and is for reference purposes only. The 2016-2017 adjustment is not audited. Free cash flow excludes disposals proceeds from Total S.A. shares. LTM = last twelve months. USDm LTM 5,000 3,750 2,500 1,250 Q1 19 Q3 19 0 Q1 20 -1,250 -2,500 MAERSK#5• ● ● ● ● ● Key statements Financial highlights for Q1 2020 Continued improvement in profitability and solid free cash generation 5 Revenue increased marginally to USD 9.6bn, despite lower volumes across all segments due to impact from the COVID-19 pandemic, driven by Ocean. Continued improvement in profitability with EBITDA progressing by 23% to USD 1.5bn leading to an EBITDA margin increase of 3%-points to 15.9%. Free cash flow of USD 0.5bn after capitalised lease payments with operating cash flow of USD 1.2bn and reduced gross capex of USD 0.3bn. Return on invested capital LTM improved to 3.8% as result of higher profitability. Flawless execution on our IM02020 strategy, with compensation for increased fuel prices and self supply strategy for low sulphur fuel. Q1 2020 shows resilience towards the negative implications of COVID-19, due to tight capacity management initiatives, reducing capacity more than demand. Full-year guidance for 2020 remains suspended given continued uncertainty on demand in the next quarters. For Q2 2020 a volume decline of 20-25% is expected across all businesses. Q1 2020 interim report Revenue (USD) 9.6bn (0.3% increase) CFFO* (USD) 1.2bn (cash conversion 80%) Return on invested capital LTM 3.8% (0.6%) *Before capitalised lease payments EBITDA (USD) 1.5bn (23% increase) Free cash flow* (USD) 1.0bn (USD 0.5bn after capitalised lease payments) NIBD (USD) 12.0bn (USD 11.7bn end of Q4 2019) MAERSK#6Key statements Strategic Transformation update Earnings growth and capex discipline lead to further improvements in CROIC and ROIC 6 The COVID-19 situation confirms that our integrator strategy is the right one and our role in the global supply chains is even more important in these challenging times. Earnings improvements combined with strong capital discipline led to a CROIC of 10.5% (7.0%), confirming the strategic initiatives taken to improve the free cash flow generation. Revenue in the Infrastructure and Logistics activities declined by 6.5% to USD 2.1bn due a combination of lower volumes related to COVID-19 and lower construction activity in gateway terminals. Profitability in Logistics & Services increased by 50% to USD 69m, excl. Damco Freight Forwarding, despite the weaker market demand due to the COVID-19 pandemic. With effect from 1 April the acquisition of Performance Team was completed and the company will from Q2 2020 contribute positively to the revenue and profitability. Q1 2020 interim report Cash return on invested capital - LTM Infrastructure and Logistics revenue¹, USDm Logistics & Services², EBITDA, USDm Long-term metric Return on invested capital (ROIC) - LTM Underlying Return on invested capital (ROIC) - LTM Q1 2020 10.5% 2,125 69 3.8% 3.8% Q1 2019 7.0% 2,272 46 0.6% 2.4% ¹ Infrastructure and Logistics revenue includes Gateway Terminals, Towage and Logistics & Services excludes Damco Freight Forwarding ² Logistics & Services EBITDA excludes Damco Freight Forwarding FY 2019 10.0% 9,201 221 3.1% 3.2% MAERSK#7Key statements COVID-19 update and response The lockdowns have led to significantly lower demand, affecting all parts of the business in A.P. Moller - Maersk. Cost initiatives are in place across the business to mitigate the negative effects from the declining demand Main cost levers to mitigate declining demand include: More than 90 sailings cancelled in Q1 2020, especially on East-West, and deployed capacity decreased 3.5%. In Q2 more than 130 blanked sailings are expected with continued and consequent capacity adaption in the coming quarters to match supply and expected demand. SG&A spending closely scrutinised with a number of initiatives started in Q1 combined with ongoing prioritisations. IT spend run rate being reduced. Initiatives taken to improve net working capital, which benefits from lower bunker fuel prices from Q2. Reducing CAPEX in 2020, most of it phasing into 2021, to protect cash flow in 2020 and support credit rating. Strong balance sheet and liquidity profile, with liquidity buffer of USD 9.2bn and LTM EBITDA to net debt of 2.0x supportive in weathering the crisis. ● ● ● ● ● ● 7 ● ● ● ● After Q1 we have taken steps to further increase our liquidity by additional flexible loan arrangements in excess of USD 1.0bn. Pro-active management of capacity, capex and costs will continue in order to adapt to the length and depth of the crisis and subsequent recovery. Q1 2020 interim report MAERSK#8Q1 interim report Financial highlights 8 Q1 2020 interim report MAERSK#9Financial highlights Q1 2020 Improvements on all financials USDm 10,000 1,000 500 0 9 9,571 9,540 Revenue Q1 2020 interim report 1,521 1,236 EBITDA 552 320 EBIT 209 -104 Reported profit/loss 197 Financial highlights Q1 2020 -69 Q1 2019 Underlying profit* *Underlying profit/loss is profit/loss for the year from continuing operations adjusted for net gains/losses from sale of non- current assets, etc. and net impairment losses as well as transaction, restructuring and integration costs related to major transactions. The adjustments are net of tax and include A.P. Moller - Maersk's share of mentioned items in joint ventures and associated companies. Despite headwinds from weaker global demand, incl. COVID-19 effects impacting the businesses and the implementation of IMO 2020 leading to higher fuel prices, profitability improved with an EBITDA margin of 15.9% (12.9%) EBIT improved to USD 551m and a margin of 5.8% (2.4%), while the underlying profit of USD 197m improved significantly. MAERSK#10Financial highlights Q1 2020 CAPEX reduced significantly Capex excluding acquisitions and divestments, USDbn 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 10 2.1 2016 4.0 2017 Q1 2020 interim report 3.2 2018 2.0 2019 USD 3.0-4.0bn in total 1 2021 2020 guidance guidance 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.0 0.8 Q1 2019 0.4 Q2 2019 0.5 0.3 il 0.3 Q3 2019 Q4 2019 Q1 2020 CAPEX for Q1 2020 was USD 0.3bn down from USD 0.8bn in Q1 2019, driven by the strong capital discipline. For 2020 and 2021 the accumulated CAPEX guidance remains at USD 3.0-4.0bn, but initiatives have been taken to reduce capex for 2020. Total contractual capex commitments of USD 1.6bn end Q1 2020, down from USD 2.0bn end Q1 2019. MAERSK#11Financial highlights Q1 2020 Increased free cash flow due to lower CAPEX Development in cash flow, USDm 11 2,000 1,500 1,000 500 0 1,216 Operating cash flow (before financial items and capitalised lease payments) Q1 2020 interim report 1,482 310 Gross capital expenditures, (excl. M&A) 778 506 Q1 2020 431 Free cash flow (after capitalised lease payments, before financial items and excluding sale of Total S.A. shares) Q1 2019 CFFO of USD 1.2bn reflecting a cash conversion of 80% was negatively impacted by an increase in net working capital. Free cash flow was USD 506m, after capitalised lease payments of USD 455m (USD 438m). MAERSK#12Financial highlights Q1 2020 Net debt increased slightly after dividend and share buy backs Development in net interest-bearing debt, USDbn 13 12 11 10 9 12 0 11.7 NIBD Q4 2019 -1.5 +0.2 EBITDA working capital Q1 2020 interim report +0.3 Taxes and financial items +0.3 Net investments +0.4 +0.3 1) Defined as cash and securities and undrawn committed facilities longer than 12 months less restricted cash and securities. Dividends Share buyback +0.3 Net new capitalized leases +0.2 Other 12.0 NIBD Q1 2020 Net interest bearing debt of USD 12.0bn includes lease liabilities of USD 8.4bn down from USD 8.6bn in Q4 2019. Liquidity reserve¹ of USD 9.2bn by end Q1 2020. Investment grade credit rating of BBB (negative outlook) from S&P and Baa3 (negative outlook) from Moody's, both affirmed in April. MAERSK#13Financial highlights Consolidated financial information Income statement (USDm) Revenue EBITDA EBITDA margin Depreciation, impairments etc. Gain on sale of non-current assets, etc., net Share of profit in joint ventures Share of profit in associated companies EBIT EBIT margin Financial costs, net Profit/loss before tax Tax Profit/loss - continuing operations Profit/loss discontinued operations Profit/loss for the period 13 Q1 2020 interim report Q1 2020 9,571 1,521 15.9% 1,073 19 37 48 552 5.8% -215 337 128 209 209 Q1 2019 9,540 1,236 13.0% 1,082 18 24 34 230 2.4% -228 2 106 -104 -552 -656 FY 2019 38,890 5,712 14.7% 4,287 71 93 136 1,725 4.4% -758 967 458 509 -553 -44 Key figures and financials (USDm) Profit/loss continuing operations Gain/loss on sale of non-current assets etc., net Impairment losses, net. Transaction and integration cost Tax on adjustments Underlying profit/loss - continuing operations Cash flow from operating activities Gross capital expenditures Net interest-bearing debt Invested capital Total Equity (APMM total) Earnings per share (USD) Q1 2020 209 -19 7 197 1,216 310 11,978 39,977 27,945 10 Q1 2019 -104 -18 21 31 1 -69 1,482 778 FY 2019 -5 509 -71 29 78 1 546 5,919 2,035 12,565 11,662 46,491 40,535 32,843 28,837 23 MAERSK#14Highlights Q1 2020 Ocean ● ● 14 Revenue increased 3.1% compared to Q1 2019, mainly due to higher freight rates offset by lower volumes. Volumes declined 3.2% mainly due to COVID- 19 effects. EBITDA improved 25% driven by capacity adjustments as a response to COVID-19, offsetting the volume decline, and higher freight rates mitigating increased bunker cost. IMO 2020 implementation executed successfully both considering contract negotiations and self supply of compliant fuel. Q1 2020 interim report Development in EBITDA and EBITDA margin (%) 1,400 1,200 1,000 800 600 400 200 0 mm Q3 19 Revenue Q1 19 EBITDA EBITDA margin Gross capital expenditures Q2 19 EBITDA Q1 2020 (USDm) 7,230 1,175 16.3% 175 EBITDA margin Q1 2019 (USDm) 7,015 940 Q4 19 13.4% 469 Q1 20 20% 1,172 15% FY 2019 (USDm) 28,782 4,436 15.4% 10% 5% 0% MAERSK#15Ocean highlights Q1 2020 Higher fuel prices and volume decline fully mitigated 15 USDm 1,400 1,300 1,200 1,100 1,000 900 800 700 600 940 EBITDA Q1 2019 Q1 2020 interim report 368 Freight rates effect -339 Bunker price -125 Volume effect 97 Container handling cost, excl. volume effect 151 Network cost and bunker consumption -58 Others 141 Unrealised derivative gains on inventory hedges 1,175 EBITDA Q1 2020 MAERSK#16Ocean highlights Q1 2020 Higher freight rates compensated increases in bunker prices ● ● 16 Freight rates increased in Q1 2020 in an effort to compensate for the more expensive IMO 2020 compliant fuel. Average freight rates increased by 5.7% (6.7% FX-adjusted), driven by North-South and East-West from focus on operational optimisation of capacity and utilisation, including network re-design. Adjusted for the increase in bunker price the average freight rates decreased 0.7%. Total volumes decreased by 3.2%. Headhaul volumes declined 4.6% and backhaul volumes declined 0.4%. The North-South volume decrease was driven by weakness in Latin American and Oceania, but volumes increased in Africa from Asia and Middle East. The East-West decrease was driven by significant decrease in headhaul volumes predominantly as a result of COVID-19 impact of production slowdown in China. Intra-regional volume growth was led by intra-Asia growth of 7.3%. Q1 2020 interim report Average loaded freight rates (USD/FFE) East-West North-South Intra-regional Total Loaded volumes ('000 FFE) East-West North-South Intra-regional Total Q1 2020 1,924 2,560 1,398 1,999 Q1 2020 1,417 961 670 3,048 Q1 2019 1,790 2,374 1,415 1,892 Q1 2019 1,506 987 657 3,150 Change 134 186 -17 107 Change -89 -26 13 -102 Change % 7.5 7.8 -1.2 5.7 Change % -5.9% -2.6% 2.0% -3.2% FY 2019 1,760 2,347 1,366 1,853 FY 2019 6,194 4,268 2,834 13,296 MAERSK#17Ocean highlights Q1 2020 Agile capacity management mitigated lower volumes ● 17 Total operating costs increased 5.2% to USD 6.4bn (USD 6.0bn), 6.1% adjusted for FX, mainly due to higher bunker prices and cost of goods sold of bunkering fuels. Tight capacity management with 93 blank sailings led to a 3.5% decline in deployed capacity, leading to lower container handling cost and network cost. Total bunker cost increased 22% as the average bunker price increased 32% due to IMO 2020 compliant fuel. The bunker consumption declined 7.5% as a result of blanked sailings and efficiency improvements. The unit cost at fixed bunker decreased by 2.3%, thus mitigating the effect from lower volumes. Q1 2020 interim report Unit cost at fixed bunker* decreased by 2.3% to 2,026 USD/FFE (2,073 USD/FFE) Bunker efficiency improved by 1.9% Bunker cost increased to USD 1.4bn (USD 1.1bn) * Fixed bunker price of 450 USD/FFE Total unit cost was 2,110 USD/FFE (2,044 USD/FFE) Utilisation on the deployed capacity improved compared to Q1 2019 SG&A decreased by 1.0% MAERSK#18Highlights Q1 2020 Logistics & Services ● Revenue declined 5.1% mainly due to lower revenue in intermodal and sea freight forwarding. • Gross profit increased by 8.9% supported by intermodal and warehousing and distribution, partly offset by supply chain management and sea freight forwarding activities. 18 EBITDA of USD 68m increased by 42% and margin improved to 4.7% (3.1%). The acquisition of Performance Team closed on 1 April 2020, which more than doubles the combined warehousing and distribution presence in North America, enhancing scale and expertise for our customers. Q1 2020 interim report Development in gross profit and gross profit margin (%) 6 400 350 300 250 200 150 100 50 0 18.5% Q1 19 Revenue Gross profit EBITDA EBITDA margin Gross capital expenditures 18.7% Q2 19 Gross profit 1,442 306 68 4.7% 20.3% Q1 2020 (USDm) 23 Q3 19 Q4 19 Gross profit Margin 20.8% Q1 2019 (USDm) 1,521 281 48 3.1% 9 21.2% Q1 20 6,331 1,240 216 3.4% 25% 126 20% 15% 10% 5% FY 2019 (USDm) 0% * MAERSK#19Logistics & Services - highlights Q1 2020 Improved gross profit and EBIT conversion • The gross profit margin improved by 2.7%-points to 21.2%, supported by growth in profitable regions and the continued margin optimisation in intermodal and higher profitability in warehousing and distribution facilities in North America. • The improvement in gross profit was partly offset by declining profitability in supply chain management and in sea freight forwarding negatively impacted by lower volumes caused by COVID-19. ● 19 The EBIT conversion improved to 9.4% (6.1%) with positive impact of SG&A cost savings, partly offset by tax and legal provisions. Q1 2020 interim report Gross profit improved 8.9% to USD 306m (USD 281m) Volumes in SCM decreased by 11% SG&A and other cost increased to USD 238m (USD 233m) EBIT conversion ratio = EBIT / Gross profit EBIT conversion ratio was 9.4% (6.1%) Air and sea freight forwarding volumes both declined 18% Direct cost declined to USD 1,136m (USD 1,240m) MAERSK#20Highlights Q1 2020 Terminals & Towage ● ● ● ● 20 Revenue declined by 9.3%, while EBITDA increased by 2.6% with a margin of 30.3%. Gateway terminals reported revenue of USD 740m (USD 837m), while towage reported revenue of USD 178m (USD 173m). EBITDA in gateway terminals was on par with last year at USD 213m and the EBITDA-margin increased by 3.3%-points to 28.7%. Lower construction revenue (IFRIC12) related to Moin of USD 43m compared to Q1 2019 contributed to higher margins. EBITDA in towage increased 14% to USD 64m, mainly due to higher activity, early termination fee in Angola and the newly acquired Port Towage Amsterdam in the Netherlands. Q1 2020 interim report Development in EBITDA and EBITDA margin (%) 350 300 250 200 150 100 50 0 Revenue EBITDA Q1 19 EBITDA margin Gross capital expenditures Q2 19 276 EBITDA Q1 2020 (USDm) 911 30.3% 103 Q3 19 EBITDA margin वि Q4 19 121 Q1 2019 (USDm) 1,004 269 26.8% Q1 20 35% 30% 25% 20% 15% 10% 5% 0% FY 2019 (USDm) 3,948 1,118 28.3% 532 MAERSK#21Terminals & Towage - highlights Q1 2020 Margin improvements despite lower volumes ● ● ● ● ● 21 Gateway terminals volumes declined 1.6% (declined 2.0% like- for-like), as volume in North America decreased by 15%, due to COVID-19 impacts and high tariff-preponement related volumes in Q1 2019 in Los Angeles, while volume in Asia decreased by 6.0% related to Yokohama. Latin American volume increased 13% from ramp up of Moin. Volumes from external customers decreased by 0.2%, while volumes from Ocean decreased 4.4%. Utilisation decreased 8.6%-points due to lower volumes and further increase in capacity in Moin and Port Elizabeth. Revenue per move was mainly driven by lower storage income in West African terminals, while cost per move was driven by operational challenges in Port Elizabeth in Q1 2019. In Towage the Harbour towage activities increased driven by increased activity in Europe, partly offset by challenges in Australia following the bushfires. Q1 2020 interim report Like-for-like throughput declined 2.0% (-0.2% from external customers and -5.4% from Ocean) Revenue per move decreased by 4.2% to USD 267 (USD 279), adj. for FX, etc. it decreased by 1.1% Harbour towage activities grew by 9.6% Utilisation declined by 8.6%-points to 70% (79%) Cost per move decreased by 3.5% to USD 233 (USD 241), adj. for FX, etc. it decreased by 0.9% Terminal towage annualised EBITDA per tug increased 18% MAERSK#22Terminals & Towage - highlights Q1 2020 Stable earnings and cash contribution from JV's and Associates Equity weighted EBITDA for gateway terminals ● 22 The equity weighted EBITDA was on par with Q1 2019, with a negative impact from Apapa, lower volumes in North America and China and exit from Douala, offset by ramp-up of Moin and Tema. In the last twelve months the JV's and Associates have generated USD 554m to the Equity weighted EBITDA of USD 1,313m. The cash contribution through dividends from JV's and Associates in the last twelve months has been USD 176m, or 32% of the EBITDA with a pay-out ratio of 86% of the net result. Q1 2020 interim report 400 350 300 250 200 150 100 50 0 67 120 89 139 95 91 166 171 978 106 121 109 131 116 91 129 163 1,020 130 TH 136 126 155 139 171 117 198 1,202 127 184 142 153 144 Note: 2016-2017 IFRS16 adjustment is a high level estimate for comparability use only. The estimate does not take into account differences in internal discount rate nor remaining length of concessions, but simply extrapolates numbers back from 2018. The 2016-2017 adjustment is not audited and no full restatement of figures to adjust for IFRS16 has been conducted prior to 2018. 2018 onwards all the numbers are restated with segment changes. 230 137 197 1,313 131 179 1,400 1,200 1,000 800 600 400 200 0 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 EBITDA equity weighted (Share in JV & Associates) EBITDA equity weighted (Consolidated terminals excl. minority shares) EBITDA equity weighted (LTM total) MAERSK#23Highlights Q1 2020 Manufacturing & Others ● 23 Revenue in Maersk Container Industry decreased to USD 124m (USD 140m), due to required shut-down of the factory in Qingdao because of COVID-19, however, EBITDA in increased to USD 14m (USD -15m) with EBITDA for Q1 2019 negatively impacted by restructuring costs of USD 31m. Maersk Supply Service improved EBITDA to USD 14m (USD 5m), reflecting higher rates and cost initiatives. Restructuring initiatives has been announced, as the low oil price has negative impact on the overall activity. Q1 2020 interim report Development in EBITDA and EBITDA margin (%) 60 50 40 30 20 10 0 Q1 19 Revenue EBITDA EBITDA margin Gross capital expenditures MI Q3 19 Q2 19 Q1 2020 (USDm) 295 43 EBITDA 14.6% 8 Q4 19 EBITDA margin BE 2.3% III 177 | | | Q1 2019 (USDm) 383 Q1 20 FY 2019 (USDm) 1,376 136 9.9% 16% 14% 12% 10% 8% 6% 4% 2% 0% 204 MAERSK#242020 24 Full-year guidance Q1 2020 interim report MAERSK#25Guidance Guidance for 2020 still suspended A.P. Moller-Maersk suspended the full-year guidance for 2020 (EBITDA before restructuring and integration costs of around USD 5.5bn) on 20 March 2020 due to the COVID-19 pandemic, which is leading to material uncertainties and lack of visibility related to the global demand for container transport and logistics. The high uncertainties related to the outlook and impact from COVID-19 still persist and therefore the suspension of the full year guidance on EBITDA remains. Significant contraction in global demand is expected for Q2, with volumes expected to decrease by 20-25% across all businesses affecting both the profitability and cash flow in the quarter. The global market growth in demand for containers is expected to contract in 2020 due to COVID-19 (previously between 1-3% growth). Organic volume growth in Ocean is expected to be in line with or slightly lower than the average market growth. The accumulated guidance on gross capital expenditures excl. acquisitions (CAPEX) for 2020-2021 is still expected to be USD 3.0-4.0bn, with steps being taken to reduce CAPEX in 2020. High cash conversion (cash flow from operations compared to EBITDA) is expected for both years. 25 Q1 2020 interim report Sensitivity guidance A.P. Moller - Maersk's financial performance for the full-year 2020 depends on several factors and are subject to uncertainties related to the COVID-19, bunker fuel prices and freight rates combined with the weaker macroeconomic conditions and other external factors. Based on the expected earnings level and all else being equal, the sensitivities for the rest of 2020 for four key assumptions are listed in the table below: Factors Container freight rate Container freight volume Bunker price (net of expected BAF coverage) Rate of exchange (net of hedges) Change +/- 100 USD/FFE +/- 100,000 FFE +/- 100 USD/tonne +/- 10% change in USD Effect on EBITDA (Rest of year) +/- USD 1.0bn +/- USD 0.1bn -/+ USD 0.3bn +/- USD 0.1bn MAERSK#26Appendix MAERSK#27Financial highlights Q1 2020 USD million Ocean Logistics & Services Terminals & Towage Manufacturing & Others Unallocated activities and eliminations, etc. A. P. Moller-Maersk Consolidated - continuing operations 27 Appendix Q1 2020 Revenue Q1 2020 7,230 1,442 911 295 -307 9,571 Q1 2019 7,015 1,521 1,004 383 -383 9,540 EBITDA Q1 2020 1,175 68 276 43 -41 1,521 Q1 2019 940 48 269 9 -30 1,236 CAPEX Q1 2020 175 23 103 8 1 310 Q1 2019 469 9 121 177 2 778 MAERSK#28Smooth repayment profile with liquidity reserve of USD 9.2bn Debt maturity profile at the end of Q4 2019 USDbn 8.0 7.0 6.0 5.0 4.0 3.0 2.0 28 1.0 0.0 0.3 0.2 1.1 ROY 2020 Leases 0.5 0.5 1.2 2021 Appendix Q1 2020 0.6 0.3 1.0 2022 Bank and other 1.0 0.1 0.4 0.8 2023 0.2 OOO 0.5 527 0.2 0.7 2024 Corporate bonds 5.0 1.0 0.4 0.5 2025 1.0 0.8 0.4 2026 0.6 0.3 2.8 2026+ Undrawn revolving facilities Funding BBB (negative) / Baa3 (negative) credit ratings from S&P and Moody's respectively Liquidity reserve of USD 9.2bn as of end Q1 2020¹ Average debt maturity about five years (excl. leases) Corporate bond programme 29% of our gross debt (USD 4.8bn) ● ● ● ● Amortisation of debt in coming 5 years is on average USD 1.8bn per year (incl. leases) 1) Defined as cash and securities and undrawn committed facilities longer than 12 months less restricted cash and securities. MAERSK#29Earnings distribution to shareholders DKK bn 40 10 5 29 0 1.4 2010 4.4 2011 Appendix Q1 2020 4.4 2012 ■ 5.3 2013 3.9 6.2 2014 36.7 5.2 6.6 2015 3.2 6.5 2016 3.1 2017 Ordinary dividend Executed share buy back Extraordinary dividend (Danske Bank) 3.1 Note: Dividend and share buy back in the paid year. In the announced first phase of a share buy-back program running from 4 June 2019 up to 1 November 2019, the Company will buy-back A and B shares for an amount of up to DKK 3.3bn 2018 5.3 3.1 2019 2.0 3.1 2020 MAERSK#30In Q1 20 demand growth was broadly weak accross regions Inbound 30 Outbound -8 North America Appendix FY 2019 Latin America Jan 20-Mar 20 y/y market growth by trade (%) 3 3 Intra America -5 Global Africa ****** - M 3 Very strong Strong Source: Internal market volume estimations as of May 2020. Note: 1. Actuals available until March 2020; 2. Colours embed information on the current dynamics relative to the 2012-18 average. Intra Europe 2 Europe Middle East Asia -10 Neutral Intra EMA -4 Weak Intra Asia Very weak 9 Oceania MAERSK#31Ocean Ocean activities are managed under the brands Maersk, Safmarine, Sealand - A Maersk Company together with Hamburg Süd brands (Hamburg Süd and Aliança) as well as strategic transhipment hubs under the APM Terminals brand. Source: Alphaliner (Mar-end 2020) 31 Appendix FY 2019 Pacific 10% No. 4 No. 1 No. 1 Latin America 27% Atlantic 15% Intra America 29% No. 2 No. 3 No. 1 Africa 30% Intra Europe 15% East-West No. 3 North-South Asia-Europe 21% Intra Asia 9% West central Asia 14% Intra Regional Capacity market share by trade No. 1 No. 2 No. 2 Oceania 21% MAERSK#32The industry is moving towards more consolidation Capacity market share In % Maersk 32 MSC COSCO CMA CGM Hapag-Lloyd ONE Evergreen Yang Ming HMM PIL Wan Hai Zim 0.0% Note: As at end-Mar 2020. Source: Alphaliner. 1.8% 1.2% Appendix Q1 2020 2.5% 1.6% 1.1% 5.0% 5.2% 7.4% 6.6% 10.0% 12.4% 11.2% 15.0% 16.1% 17.6% 20.0% 2M Ocean Alliance The Alliance MAERSK OOCL ERGRE EVERGREEN CMA CGM Hapag-Lloyd m SC HMM M YANG MING Coco ONE OCEAN NETWORK EXPRESS MAERSK#33The liner industry is consolidating and top 5 share is growing Consolidation wave is rolling again - 8 top 20 players disappeared in the last 4 years 96 CMA 33 CGM P&O Nedlloyd NOL APL 98 Wave 1 27% CMA CGM ANL 00 MAERSK Safmarine MAERSK SeaLand 31% Note: Long haul trades defined as non-intra-regional trades. Source: Alphaliner. Appendix Q1 2020 02 04 06 Hapag-Lloyd cpships CMA CGM 8 DELMAS Wave 2 MAERSK P&O Nedlloyd 36% CMA CGM USE CMA CGM کوماناف COMANAV 43% Top-5 market share 08 10 12 Top-5 market share long-haul trade 14 HANJIN Hapag-Lloyd CSAV HAMBURG SÜD ceni CMA CGM 18 OPDR Wave 3 CMA CGM APL 16 45% 53% OOCL D Coico COSER Hapag-Lloyd U UASC MAERSK HAMBURG SÜD ONE OCEAN NETWORK EXPRESS 18 67% 72% 65% 72% 20 MAERSK#34Industry nominal supply growth stable in Q1 2020, but effective capacity contracted Global effective supply and demand growth² Growth y/y, (%) 10% 8% 6% 4% 2% 0% -2% -4% -6% 5.4% 5.5% Q1 2014 34 Q2 2014 5.0% Q3 2014 8.4% 8.3% Q4 2014 Q1 2015 6.1% 4.5% Appendix Q1 2020 Q2 2015 Q3 2015 0.2% Q4 2015 1.5% 9102 TO 3.3% 4.6% 6.2% Q2 2016 Q3 2016 Q4 2016 Global effective capacity 9.2% 9.1% 6.2% Q1 2017 7.0% Q2 2017 7.7% Q3 2017 Q4 2017 Q1 2018 6.8% Q2 2018 Global container demand 4.6% 3.9% Q3 2018 Q4 2018 Q1 2019 Q2 2019 0.5% Q3 2019 Nominal capacity3 5.5 5.2 5.4 6.4 7.3 7.9 8.7 8.7 7.4 5.6 3.3 1.5 0.8 1.4 2.9 4.1 5.9 6.6 6.0 5.8 4.6 3.7 3.9 growth (%) M -0.4% Q4 2019 -24% Q1 2020 4.1 3.6 Industry capacity (TEU) DOO East-West North-South Note: 1. Effective capacity incorporates changes to idling, vessel speed, average length of trade and container network; 2. Q1 2020 is Maersk internal estimates where actual data is not available yet; 3. Global nominal capacity is deliveries minus scrapping; Source: Alphaliner, Maersk. Intra 41% Capacity (TEU) 36% Capacity (TEU) 22% Capacity (TEU) MAERSK#35Low net delivery along with a sharp increase in idling and blanked sailings led to a drop in effective capacity in Q1 2020 Net deliveries TEU '000 600 500 400 352 300 200 100 0 -100 -200 -300 475 35 368 182 ju -127137 383 421 -95102 -128 -181 367 Note: As at end-March 2020. Source: Alphaliner. 440 296 Appendix Q1 2020 465 501 -44-40-57 -27-28 319 273281 -91 195186 -138154159 217 332 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 2013 2013 2014 2014 2015 2015 2016 2016 2017 Deliveries ///////Scrapping 414 -214209 429, 229 -86-69-63 412 276 -22 -17 -9 Net deliveries 184 245260 364 -63 -93 190 110 -19 -44-52 -40 Q3 Q1 Q3 Q1 Q3 Q1 2017 2018 2018 2019 2019 2020 Idling Idle TEU as % of cellular fleet 12% 10% 8% 6% 4% 2% 0% 2010 лим 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 MAERSK#36External factors continue to be volatile... SCFI and CCFI index Index 1,000 900 800 700 600 75 36 50 Time charter rates¹ Index 100 25 Jan 0 Feb Mar Jan Apr SCFI 2020 Feb May Jun CCFI 2020 Mar Apr May Jun 2018 Note: 1. Containership Time charter Rate Index, 1993 = 100. Source: Clarkson Research, Shanghai Shipping Exchange Appendix Q1 2020 Jul Aug SCFI 2019 Jul 2019 Aug Sep Oct Nov CCFI 2019 Sep Oct 2020 Nov Dec Dec Bunker price USD/mt 700- 500 300 100 Jan Feb Mar 1.17 1.14 USD-EUR exchange rates EUR/USD 1.12 1.09 1.07 1.04 Jan Feb Apr May Jun A Mar Rot 0.1% LSMGO 2020 Apr May Jun Jul 2020 Jul Sep Oct Rot 0.5% FO 2020 Aug Aug 2019 Sep Oct Nov Nov Dec Dec MAERSK#37however the volatility is lowered through contract coverage including bunker adjustment factors Volume split, 2019 By contract type III ● O Note: 1. Oct 2009 = 1000 for SCFI, January 1998 = 1000 for CCFI. Source: Maersk, Shanghai Shipping Exchange 35-40% Spot (<1 month) By trade 21% Intra regional 37 32% North-South ~20% Short term (1-3 months) Appendix Q1 2020 45% Long term (>3 months) 47% East-West Average freight rate USD/FFE 3200 2800 2400 2000 1600 1200 800 400 0 Q1-14 Q2-14 Q3-14 Q4-15 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Ocean Freight Rate (USD/FFE) Q1-18 Q2-18 SCFI (Index) Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 CCFI (Index) Q4-19 Index ¹ Q1-20 1,600 1,400 1,200 1,000 800 600 400 200 o MAERSK#38Freight rates increased by 5.7% with volumes down by 3.2% 38 ● ● Volumes decreased by 3.2%, with volume decreases across all trades, apart from Africa and intra-regional trades, driven by a 5.9% decrease on East-West while North-South volumes decreased by 2.6% partly offset by 2.0% increase in intra-regional volumes. Total backhaul decreased by 0.4% while headhaul decreased by 4.6%. The average loaded freight rate increased by 5.7% impacted by rate increases across all trades apart from intra-regional. Adjusted for foreign exchange rate effects the average loaded freight rate increased by 6.7% Appendix Q1 2020 Loaded volumes ('000 FFE) East-West North-South Intra-regional Total Average freight rates (USD/FFE) East-West North-South Intra-regional Total Q1 2020 1,417 961 670 3,048 Q1 2020 1,924 2,560 1,398 1,999 Q1 2019 1,506 987 657 3,150 Q1 2019 1,790 2,374 1,415 1,892 Change -89 -26 13 -102 Change 134 186 -17 107 Change % -5.9% -2.6% 2.0% -3.2% Change % 7.5% 7.8% -1.2% 5.7% FY 2019 6,194 4,268 2,834 13,296 FY 2019 1,760 2,347 1,366 1,853 MAERSK#39Ocean average freight rate up 5.7% compared to Q1 2019 Freight rates USD/FFE 2,800 2,600 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1,000 39 Q1 2019 East-West Appendix Q1 2020 Q2 2019 North-South Q3 2019 Intra-regional Q4 2019 Q1 2020 Average freight rate Freight rates Q1 2019 = 100 110 105 100 95 90 85 80 Q1 2019 East-West Q2 2019 North-South Q3 2019 Intra-regional Q4 2019 Q1 2020 Average freight rate MAERSK#40Q1 2020 vessel utilisation stable compared to Q1 2019 and Q4 2019 Vessel utilisation In % 100% 90% 80% 70% 60% 50% Q1-15 40 88% 66% Q2-15 Q3-15 Q4-15 9L-L0 93% 70% Appendix Q1 2020 Q2-16 Q3-16 Q4-16 Headhaul bottleneck 91% 68% Q4-17 Q1-18 Roundtrip 93% 71% Yearly averages 93% 73% Note: Container turn is average number of times a container is shipped full per year (quarterly data annualised). Q3-19 Q4-19 Q1-20 Container turn Ratio 5.2 4.8 4.4 4.0 3.6 3.2 fas 4.6 3.9 4.5 3.8 4.8 Dry 4.1 4.6 Reefer 4.1 4.6 Yearly averages 4.2 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 4.6 4.2 MAERSK#41Container handling and network costs represent the majority of our unit cost base Unit cost base, 2019 1,922 USD/FFE 2019 unit base 41 Unit cost base, 2019 2 Note: Unit cost base: EBIT costs including VSA income, Hub income and income related to vessel relets. Adjusted for restructuring costs, result from associated companies, gains/losses and derivatives. Container handling costs: Includes costs related to terminal operation (excluding hubs and transhipment); empty costs; container leasing, deprecation of owned and capitalised leased containers, and repair costs; Hamburg Süd Inland and feedering. Network costs excluding bunker: Includes hub cost, transhipment costs and hub depreciation incl. depreciations for capitalised leases; vessel costs related to port and canal fees (Suez and Panama), running costs and crewing of owned vessels, depreciation of owned vessels, depreciation of capitalised leased vessels, time charter of operating leased vessels, cost of slot (capacity) purchases and vessel sharing agreements (VSA) with partners. Bunker costs: Includes costs related to fuel consumption and fuel prices. SG&A and Other costs: Includes costs related to own and third party agents in countries, liner operation centres, vessel owning companies, onshore crew and ship management, service centres and headquarters; administration cost types such as staff, office, travel, training, consultancy, IT, legal and audit, depreciations for other capitalised leases (e.g. leased offices) etc.; Other costs covering bad debt, cargo claims, currency cash flow hedge, indirect tax, non-operational provisions and amortization of intangible assets. Appendix Q1 2020 31% Network costs excluding bunker 12% 39% Container handling costs SG&A and other costs 18% Bunker costs MAERSK#42We continue to strengthen the capacity management Development in average nominal capacity and number of vessels TEU '000 5,000 4,500 4,000 42 3,500 3,000 2,500 2,000 # of vessels, end of period # of owned vessels # of chartered vessels 3,224 639 Q1 2017 Q2 2017 Q3 2017 284 3,311 355 Appendix Q1 2020 646 282 3,523 364 668 285 383 3,761 Q4 2017 781 339 442 4,231 Q1 2018 776 298 478 4,154 Q2 2018 742 298 444 4,042 4,038 4,048 Q3 2018 723 298 425 Q4 2018 710 303 407 Q1 2019 713 305 408 4,110 Q2 2019 716 307 409 4,186 Q3 2019 703 307 396 4,181 Q4 2019 708 307 401 4,162 Q1 2020 697 307 390 Ocean average nominal vessel capacity Ocean segment aims to continuously adjust capacity to match demand and optimise utilisation ● Average nominal vessel capacity in Q1 2020 increased by 2.8% y/y and decreased by 0.4% q/q to 4,162k TEU Prior to the implementation of IFRS 16, only operating leased vessels were included in the chartered container vessel section while finance leased vessels were presented together with owned to match the classification on the balance sheet. With IFRS 16, all leased vessels are generally recognised as a right-of-use asset on the balance sheet. All leased vessels are included in the table within the chartered container vessel section from Q1 2018 onwards. MAERSK#43Industry average vessel size Average vessel size TEU '000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 7,161 43 ONE Note: As end-March 2020 Source: Alphaliner || Hapag-Lloyd 7,032 Appendix Q1 2020 6,687 HMM 6,666 MSC 6,662 Yang Ming 6,372 Evergreen 6,135 COSCO Group 5,985 Maersk Line 5,402 CMA CGM 4,670 Zim 3,271 PIL 2,763 Wan Hai MAERSK#44Industry orderbook at a low level, including the new orders in Q1 2020 Industry orderbook Orderbook as % of current fleet (end of period) 30% 25% 20% 15% 10% 5% 44 0% 27.0% 28.0% 2010 2011 Note: As at end-March 2020. Source: Alphaliner. 21.0% Appendix Q1 2020 22.6% 18.4% 20.1% 15.7% 12.7% 12.3% || 2012 2013 2014 2015 2016 10.4% 10.4% 2017 2018 2019 Q1 2020 New orders TEU '000 1,000 800 600 400 200 734 521 228 467 386 296 181 599 156 794 735 181 122 81 64 26 44 16 527 642 270 84 326 268 59 4 373 140151 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 MAERSK#45Terminals & Towage Gateway terminals, including landside activities being port activities where the customers are mainly the carriers, and towage services under the Svitzer brand. 45 Appendix Q1 2020 Towage Terminals Portfolio Overview MAERSK#46Diversified gateway terminal portfolio Container throughput by geographical region Equity weighted crane moves, % 16% North Americas SHOEDSO 30 Average remaining concession length in years Years 25 20 15 10 5 0 16% Latin Americas 17 46 17% Europe, Russia and Baltics Total throughput of 4.2m Moves in Q1 2020 14 Appendix Q1 2020 North America Latin America Europe, Russia and Baltics Note: Average concession lengths as of Q1 2020, arithmetic mean. 26 23 Asia 12% Africa & Middle East 40% Asia 16 Africa and Middle East 20 Total portfolio Geographical split of terminals Number of terminals 25 15 5 -5 5 12% 8% 4% 0% -4% -8% -12% North America Port Volume growth development In % 57 2014 I No. of terminals 11 55 Latin America Europe, Russia and Baltics Existing terminals ■New terminal projects 2015 65 18 2016 Equity Weighted 66 65 Note: Like for like volumes exclude divestments and acquisitions. 17 2018 2017 Equity Weighted Like-for-like Asia 65 2019 15 Africa and Middle East 66 2020 Global market MAERSK#47Gateway terminals - Project progress Project Abidjan, Ivory Coast Note: TEU and investment numbers are 100% of the projects. 47 Opening 2021 Appendix Q1 2020 Details The new terminal will be our second terminal in Abidjan, Ivory Coast, which is one of the busiest container ports in West Africa New facility will be able to accommodate vessels of up to 14,000 TEU in size Investment USD 0.5bn MAERSK#48Active portfolio management - gateway terminals Acquisitions and secured Projects Cotonou Santos 48 2010 Kaoshiung Dunkirk Oakland Yantian Monrovia Moin Callao Poti 2011 Divestments / stop operation Appendix Q1 2020 Lazaro Cardenas Gothenburg Talin Kotka / Helsinki Vostochny St. Petersburg 2012 Dailan Abidjan Ust Luga St. Petersburg 2 Izmir 2013 Oslo Namibe 2014 Le Havre Virginia Qingdao Vado reefer Cartagena Tema 2015 Charleston Houston Jacksonville Gioia Tauro Quetzal Yucatan Buenaventura Paranagua Valencia Gijon Castellon Barcelona 2016 Grup Marítim TCB Itapoa 2017 Tacoma Zeebrugge Dalian TB - Congo 2018 Paranagua Izmir 2019 Kobe Veos 2020 Douala MAERSK#49Focusing on lower cost and higher efficiency Gateway terminal cost per move, Fin.Con ¹ USD/move 280 260 240 220 200 180 49 160 140 18Q1 18Q2 18Q3 Appendix Q1 2020 18Q4 CAGR: 0.0% 19Q1 T 19Q2 y/y: -3.5% 19Q3 19Q4 20Q1 Gateway terminal cost break down ² Q4 2019 11% Service and admin costs 18% Depreciation 9% Concession fees 1. Gateway terminal Cost per move for all operating terminals on financial consolidated basis; terminals under implementation are excluded. 2. Cost breakdown for all gateway terminals on financial consolidated basis. 15% Variable operational costs O 47% Labour costs MAERSK#50Gateway terminals operating businesses of 28.7% EBITDA margin Q1 2020 Throughput (Moves m, equity weighted) Throughput (Moves m, financially consolidated) Revenue (USD m) EBITDA (USD m) EBITDA margin (%) 50 Consolidated businesses Appendix Q1 2020 2.4 2.8 740 213 28.7 Note: Gateway terminals Implementations include terminals currently under construction (Abidjan (TC2), Ivory Coast) JV & Associates 1.8 I Operating businesses Implementations 4.2 2.8 740 213 28.7 0.0 0.0 0.0 0 ΝΑ Total 4.2 2.8 740 213 28.7 MAERSK#51Consolidated gateway terminals Throughput (Moves m, equity weighted) Throughput (Moves m, financially consolidated) Revenue (USD m) EBITDA (USD m) EBITDA margin (%) Note: Consolidated businesses includes gateway terminals that are financially consolidated. Gateway terminals - JV and Associates Throughput (Moves m, equity weighted) 51 Appendix Q1 2020 Q1 2020 2.4 2.8 740 213 28.7 Q1 2020 1.8 Q1 2019 2.5 2.8 837 215 25.7 Q1 2019 1.8 Change -2.1% -1.6% -11.6% -1.3% 3pp Change -0.4% MAERSK#52Gateway terminals under implementation Throughput (Moves m, equity weighted) Throughput (Moves m, financially consolidated) Revenue (USD m) EBITDA (USD m) EBITDA margin (%) 52 Q1 2020 Appendix Q1 2020 0.0 0.0 0.0 0.0 Note: Implementations include terminals currently under construction (Abidjan (TC2), Ivory coast). Q1 2019 Implementations include Vado, Italy; Abidjan (TC2), Ivory coast. ΝΑ Q1 2019 0.0 0.0 0.1 -3 ΝΑ Change ΝΑ ΝΑ -100% -100% ΝΑ MAERSK#53Thank You Stig Frederiksen Head of Investor Relations [email protected] +45 3363 3106 53 Appendix FY 2019 Maja Schou-Jensen Senior Investor Relations Officer [email protected] +45 3363 3639 Jytte Resom Investor Relations Officer [email protected] +45 3363 3622 MAERSK