#1A.P. Møller-Mærsk A/S Interim Report 02 2015 MAERSK#2A.P. Moller Maersk Group - Interim Report 02 2015 CONTENTS DIRECTORS' REPORT Maersk Group performance for Q2 2015 • Developments in the quarter • Status on the Group's priorities for 2015 - Group strategy update Guidance for 2015 - Summary financial information - Invested capital and ROIC Businesses Maersk Line Maersk Oil APM Terminals Maersk Drilling - APM Shipping Services Maersk Group performance for the first six months of 2015 - Statement of the Board of Directors and Management - Independent Auditors' Review Report PAGE 3-25 FINANCIALS - Condensed income statement - Condensed statement of comprehensive income Condensed balance sheet Condensed cash flow statement - Condensed statement of changes in equity - Notes PAGE 26-41 Comparative figures Unless otherwise stated, all figures in parenthesis refer to the corresponding figures for the same period prior year. Forward-looking statements The interim report contains forward-looking statements. Such statements are subject to risks and uncertainties as various factors, many of which are outside A.P. Møller-Mærsk A/S' control, may cause actual development and results to differ materially from expectations contained in the interim report. 2/42#3A.P. Moller Maersk Group - Interim Report 02 2015 MAERSK GROUP PERFORMANCE For Q2 2015 Contents The Maersk Group delivered a satisfactory profit in Q2 of USD 1.1bn (USD 2.3bn) negatively impacted by the lower oil price and lower average container freight rates. The return on in- vested capital (ROIC) was 10.2% (18.6%). The result for Q2 last year was positively impacted by a USD 2.8bn gain from the sale of the majority share of Dansk Supermarked Group partly offset by impairments of USD 1.7bn on Brazilian oil assets. The underlying profit was USD 1.1bn (USD 1.2bn) with decreases in Maersk Line, Maersk Oil and APM Terminals and increases for Maersk Drilling and APM Shipping Services. The Group's revenue decreased by USD 1.4bn or 11.9% due to lower oil price and lower average container freight rates. The Underlying result reconciliation USD million, Q2 Maersk Group Maersk Line Maersk Oil APM Terminals Maersk Drilling APM Shipping Services Maersk Supply Service Maersk Tankers Damco Svitzer Result for the period - continuing operations 2015 2014 1,086 507 137 161 218 138 64 35 7 32 2,304 547 -1,397 223 117 30 33 -2 -32 32 Gain on sale of non- current assets, etc., net 2015 2014 68 8 - 2 29 29 31 -4 2 2,832 4 18 1 -2 2 operating expenses decreased by USD 966m mainly due to lower bunker prices and cost saving initiatives. Cash flow from operating activities remained at a high level of USD 1.8bn (USD 1.7bn) while the Group continues to invest in profitable growth with a net cash flow used for capital expend- iture of USD 1.7bn (USD 1.4bn), excluding the sale of shares in Danske Bank of USD 4.8bn. With an equity ratio of 59.7% (61.3% at 31 December 2014) and a liquidity reserve of USD 9.4bn (USD 11.6bn at 31 December 2014) the Group still has a strong financial position and is within its financial policy ratio targets. Impairment losses, net¹ 2014 2015 -80 -80 'Including the Group's share of impairments, net, recorded in joint ventures and associated companies. -1,732 -1,735 3 3 Tax on adjustments 2015 -1 2014 18 23 -6 1 1 Underlying result 2015 1,099 499 217 159 189 109 33 39 7 30 2014 1,186 3/42 543 315 211 117 27 33 -32 27#4A.P. Moller Maersk Group - Interim Report 02 2015 DEVELOPMENTS IN THE QUARTER Second generation Triple-E vessels Maersk Line signed a contract for 11 second generation Triple-E vessels with a value of USD 1.7bn to be delivered in 2017-18, and with the option for additionally six vessels. The vessels will have a capacity of 19,630 TEU (twenty-foot equivalent) each. The new vessels will be the largest in Maersk Line's fleet and are intended for the Asia-Europe service whe they will re- place smaller, less efficient vessels. Johan Sverdrup The partners in the Norwegian Johan Sverdrup field have re- ceived the ruling from the authorities on the apportionment of the ownership of the field, which increased Maersk Oil's share from 8.12% to 8.44%. Final authority sanctioning of the plan for development and operation is expected in Q3, pending approval by all partners of the revised equity split. The award of major procurement contracts for living quarter top-sides, drilling rig etc. continued during 02 in accordance with the schedule. Qatar tender process Qatar Petroleum initiated an evaluation process in Q2 for the selection of a partner to undertake the future development of the Al Shaheen field, as the current agreement expires mid- 2017. Around 40% of Maersk Oil's total entitlement production came from Al-Shaheen in 2014. Maersk Oil is confident it can offer the state of Qatar a competitive, reliable and unique value proposition for the future development of Al Shaheen given Maersk Oil's extensive technical knowledge of this complex field which has been built over decades in close partnership with Qatar Petroleum. The outcome of the tender process is expected during second half of 2016. Ghana terminal signed APM Terminals will invest USD 0.8bn in a newbuild container terminal and road infrastructure upgrade next to its present Contents facility in Tema, Ghana, with 3.5m TEU annual throughput capacity. The investment will fund the development of a new greenfield joint venture port outside of the present facility, and an upgrade of the roads linking the port to the nation's capital, Accra. The Tema project will result in four deep-water berths, a new break- water and an access channel able to accommodate the world's largest container ships. STATUS ON THE GROUP'S PRIORITIES FOR 2015 Position the Maersk Group for a new oil environment In order to adapt our business to the current substantially lower oil price, cost saving initiatives have been and are being imple- mented across the Group. Maersk Oil has launched an extensive cost transformation programme to improve profitability and position Maersk Oil for growth in a lower price environment. Maersk Oil expects to reduce the net operating costs excluding exploration with 10% by the end of 2015 compared to the 2014 baseline. This is in line with the targeted 20% reduction by the end of 2016. APM Terminals has implemented revenue improvement and cost savings initiatives in each of its terminals contributing more than USD 100m in the first half of 2015. Since the launch of Maersk Drilling's cost reduction and effi- ciency enhancement programme in 04 2014, Maersk Drilling has delivered 5% savings on the operating cost level, excluding positive rate of exchange effects, for the first six months of 2015 vs same period last year through e.g. restructuring of the head office, re-negotiated supplier contracts and enhancement of the operational performance. Maersk Supply Service initiated early in the year cost saving initiatives which have resulted in sustainable savings across cost categories, hereunder a reduction in headquarter posi- tions of 15% and improvements of energy efficiency leading to significant savings. Differentiate through technology and innovation Better use of technology and innovation is critical to maintain- ing the Group's competitive edge and this will be an important driver for reducing cost as well as enhancing our customer experience. Maersk Maritime Technology successfully manages a significant portion of the business units' innovation. Furthermore, the Group Innovation Board aims to identify and fund projects which are not directly related to the business units' daily operations. Maersk Line actively evaluates new technologies for fuel effi- ciency and prepares for upcoming regulations both as a part of its retrofit programme as well as the recent newbuilding activities. As examples, Maersk Line evaluates suppliers and technologies relative to: Upcoming requirements to reduce 80% of NOx emission in North America Prepare for global Ballast Water Treatment requirements Impact of new low-sulphur fuel requirements in emission control areas. ● ● In order to improve decision support and data quality, Maersk Line is also working to improve the fuel consumption meas- urements on board its vessels. The objective is to increase the transparency and frequency of vessel data to support opera- tional efficiency across the entire fleet. Maersk Line has begun a journey to modernise its customer interaction in line with the digital age, and the other business units will also benefit from this. 4/42#5A.P. Moller Maersk Group - Interim Report 02 2015 Maersk Oil is seeking to enhance business competitiveness by being good at extracting hydrocarbons from complex res- ervoirs such as tight chalk reservoirs in the North Sea and high-pressure, high-temperature fields like the Culzean field. An example of this effort is Maersk Oil's and the other DUC partners' investment in the Danish Hydrocarbon Research & Technology Centre, launched in September 2014, where the first major technology programme has been initiated encom- passing advanced water flooding of the Dan, Halfdan and Kraka fields. Other focus areas are enhanced reservoir mod- elling, enhanced oil recovery mechanisms and cost-effective well completions. In addition, Maersk Oil is protecting own developed technology with patent applications for new inventions, which in 2015 has resulted in patent applications for new methods for improved data and signal transmission in wells. APM Terminals' new Maasvlakte II facility is the world's first fully-automated and emissions-free, sustainably-powered con- tainer terminal. The facility is currently transitioning from its testing phase into normal operation supported by its newly developed equipment, processes and IT systems. APM Terminals has successfully implemented a new terminal operating system in 12 of its terminals since June 2014. This standard platform across the portfolio provides opportunities to further optimise operational processes and leverage econ- omy of scale for current and future improvements. Maersk Drilling is designing the next generation drillship that will be critical to unlocking the next frontier of deepwater oil and gas resources. The 20Krigs will be able to safely and efficiently operate in high-pressure, high-temperature reser- voirs up to 20,000 pounds per square inch and 350 degrees Fahrenheit. Contents Maersk Supply Service is working on a project for online monitoring of lubricating and hydraulic oil condition for critical machinery. The innovation priority is supported by several projects where e.g. automatic greasing of crane wires and de- velopment of a flexible chain wheel are being investigated. Svitzer has developed the 2nd generation ECO tugs' with bet- ter eco features, like low-reflection paint to reduce impact on aquatic life, solar-panel heating and on-board water recycling. These are the first purpose-built hybrid tugs in the world with variable speed generators and direct current drive for opti- mised fuel consumption. Define growth platforms for the future The Maersk Group is actively pursuing investment oppor- tunities within and adjacent to present business areas. The timing is uncertain and depends on fulfilling our return re- quirement. 5/42#6A.P. Moller Maersk Group - Interim Report 02 2015 GROUP STRATEGY UPDATE The Maersk Group is executing on the strategy to become a premium conglomerate based on top-quartile performance in all our business units. Contents The Group is delivering on its financial ambition of above 10% ROIC over the cycle with a ROIC creation of 12.0% in the first six months of 2015 and 14.3% for the same period in 2014. The Group is focused on active portfolio and performance management, dis- ciplined capital allocation and delivering on its financial strategy. We reiterate our strategic direction of targeting profitable growth through business optimisation, cost reduction and a strong customer focus to maintain top-quartile performance with a ROIC above 10% over the cycle in all business units. The turbulence in the oil price has had a negative influence in the oil and offshore markets and countries dependent on oil. This has changed the outlook for Maersk Oil, Maersk Drilling, APM Terminals and APM Shipping Services, where previously an- nounced profit and growth targets will be replaced by plans adapting to the volatile environment. The Group is executing on specific cost and efficiency pro- grammes in all business units in order to improve profitability in the more challenging environment. The valuable experience from previously successfully executed cost saving initiatives lays a solid foundation for these programmes. The Group is focused on developing its world class businesses and exiting businesses that do not support the future strategy. The most significant divestment being the 18.4% ownership share in Danske Bank and the distribution of an extraordinary dividend in April 2015. The programme of focusing the Group is now com- plete and the focus on asset profitability will be maintained. The Group seeks to supplement organic growth with value enhancing acquisitions. The Group's ambition is to increase the nominal dividend per share over time, supported by underlying earnings growth. The Group's capital structure and liquidity reserve are man- aged in line with the Group's current Baal/BBB+ credit rating. The Board has decided to launch the second buy-back pro- gramme aiming at buying back shares with a market value of DKK 6.8bn (equal to approximately USD 1bn) within the coming 12 months. Maersk Line continues to improve its competitiveness through cost leadership. Maersk Line maintains its medium term am- bition of an EBIT margin gap to peers of more than 5% points, which Maersk Line has delivered every quarter since Q4 2012. Maersk Line maintains its ambition to be self-funded, which has been achieved since 2013. Maersk Line adjusts its growth target from growing in line with the market to growing at least with the market to defend its market leading position. Maersk Line is executing on its USD 15bn investment pro- gramme announced in September 2014 to support the growth targets. Additionally, Maersk Line adjusts its annual return target from 8.5% ROIC to ROIC between 8.5% and 12.0%. Maersk Oil is executing on reducing operating expenses by 20% compared to 2014 towards end-2016 in response to the lower oil price. In addition, the level of exploration expenditure has been reduced while acquisitions are being considered in order to grow reserves and production. Maersk Oil progresses on maturation of key projects and has brought the fields Golden Eagle, UK and Jack, US on stream. APM Terminals will continue to build on its track record for de- livering double-digit returns based on disciplined investments in terminals and other port infrastructure, operational efficien- cies and portfolio optimisation. APM Terminals aims through investments to grow ahead of the global transportation market. Maersk Drilling has successfully implemented seven of eight rigs in the newbuild programme with high uptime and good safety performance, but will be challenged by adverse market conditions. The oldest rig in the fleet has been decommissioned for recycling. Maersk Drilling is taking steps to reduce its cost base with a double digit percentage saving by end 2016. APM Shipping Services is successfully executing on initiatives to improve profitability. 6/42#7A.P. Moller Maersk Group - Interim Report 02 2015 GUIDANCE FOR 2015 The Group's expectation of an underlying result around USD 4.0bn is unchanged. Gross cash flow used for capital expenditure is now expected to be around USD 8bn in 2015 (USD 8.7bn) from previously around USD 9bn, while cash flow from operating activities is still expected to develop in line with the result. Copenhagen, 13 August 2015 Contacts Group CEO Nils S. Andersen - tel. +45 3363 1912 Group CFO Trond Westlie - tel. +45 3363 3106 Changes in guidance are versus guidance given at 01 2015. All figures in parenthesis refer to full year 2014. The Interim Report for Q3 is expected to be announced on 6 November 2015. Contents Maersk Line reiterates the expectation of a higher underlying result than for 2014 (USD 2.2bn). Global demand for seaborne container transportation is revised to an expected increase by 2-4% versus previously by 3-5%. Maersk Oil now expects a positive underlying result for 2015 significantly below 2014 (USD 1.0bn) at oil prices in the range 55-60 USD per barrel. The previous expectation was a small positive underlying result. The low oil price is somewhat offset by the effect of cost savings, strong production performance and deferred tax income in the UK. Maersk Oil's entitlement production is now expected at around 285,000 boepd (251,000 boepd) from previously above 265,000 boepd. The exploration expenses are unchanged expected to be approximately USD 0.7bn (USD 765m) for the year. APM Terminals revises the expectation for the underlying result to be significantly below 2014 (USD 849m), previously below 2014, due to weaker business climate in oil dependent markets. Maersk Drilling now expects a significantly higher underly- ing result than in 2014 (USD 471m), from previously a higher underlying result, due to more rigs in operation, high forward contract coverage as well as impact from the initiated profit optimisation programme. APM Shipping Services now expects the underlying result for 2015 to be significantly above the 2014 result (USD 185m), from previously above the 2014 result, due to better performance in the first half of 2015. The Group's guidance for 2015 is subject to considerable uncer- tainty, not least due to developments in the global economy, the container freight rates and the oil price. The Group's result depends on a number of factors. Based on the expected earnings level and all other things being equal, the sensitivities on calendar 2015 for four key value drivers are listed in the table below. Factors Oil price for Maersk Oil Bunker price Container freight rate Container freight volume Change +/-10 USD/barrel +/-100 USD/tonne +/-100 USD/FFE +/-100,000 FFE Effect on the Group's underlying profit rest of year +/-USD 0.16bn -/+ USD 0.1bn +/-USD 0.5bn +/-USD 0.1bn 7/42#8A.P. Moller Maersk Group - Interim Report 02 2015 SUMMARY FINANCIAL INFORMATION AMOUNTS IN USD MILLION INCOME STATEMENT Revenue ****** Profit before depreciation, amortisation and impairment losses, etc. (EBITDA) Depreciation, amortisation and impairment losses, net Gain on sale of non-current assets, etc., net Share of profit/loss in joint ventures Share of profit/loss in associated companies ************ Profit before financial items (EBIT) Financial items, net Profit before tax Tax Profit for the period - continuing operations Profit for the period - discontinued operations Profit for the period A.P. Møller-Mærsk A/S' share BALANCE SHEET Total assets Total equity Invested capital Net interest-bearing debt Investments in property, plant and equipment and intangible assets CASH FLOW STATEMENT Cash flow from operating activities¹ Cash flow used for capital expenditure¹ FINANCIAL RATIOS Return on invested capital after tax (ROIC), annualised Return on equity after tax, annualised Equity ratio Contents 02 2015 10,526 2,631 1,223 68 39 24 1,539 -80 1,459 373 1,086 1,086 1,069 64,015 38,236 47,303 8,835 1,998 1,777 3,075 10.2% 11.6% 59.7% 02 2014 11,949 3,085 2,806 57 41 156 533 -185 348 823 -475 2,779 2,304 2,250 70,972 42,474 51,941 9,467 2,259 1,749 -1,401 18.6% 21.7% 59.8% 2015 21,073 5,201 2,324 343 100 42 3,362 -151 3,211 553 2,658 2,658 2,608 64,015 38,236 47,303 8,835 3,987 3,727 1,432 12.0% 13.2% 59.7% 6 months 2014 23,685 6,102 3,743 80 72 259 2,770 -339 2,431 1,776 655 2,856 3,511 3,400 70,972 42,474 51,941 9,467 4,397 3,623 -3,249 14.3% 16.5% 59.8% Full year 2014 47,569 11,919 7,008 600 -6 412 5,917 -606 5,311 2,972 2,339 2,856 5,195 5,015 68,844 42,225 49,927 7,698 9,368 8,761 -6,173 11.0% 12.3% 61.3% STOCK MARKET RATIOS Earnings per share (EPS), USD Diluted earnings per share, USD Cash flow from operating activities per share, USD¹ Share price (B share), end of period, DKK Share price (B share), end of period, USD Total market capitalisation, end of period, USD m GROUP BUSINESS DRIVERS Maersk Line Transported volumes (FFE in '000) Average freight rate (USD per FFE) Unit cost (USD per FFE incl. VSA income) Average bunker price (USD per tonne) Maersk Line fleet, owned Maersk Line fleet, chartered Fleet capacity (TEU, '000) Maersk Oil Average share of oil and gas production (thousand barrels of oil equivalent per day) Average crude oil price (Brent) (USD per barrel) APM Terminals Containers handled (measured in million TEU and weighted with ownership share) Number of terminals Maersk Drilling Operational uptime Contracted days Revenue backlog (USD bn) 1 Figures for 2014 relate only to continuing operations. 02 2015 49 49 83 12,120 1,818 38,403 2,484 2,261 2,246 335 306 62 9.2 97% 1,671 02 2014 103 102 80 13,533 2,479 52,761 2,396 2,634 2,585 579 235 110 9.8 97% 1,456 The interim consolidated financial statements are prepared in accordance with IAS 34. Discontinued operations comprise Dansk Supermarked Group. 2015 121 121 174 12,120 1,818 38,403 4,691 2,370 2,342 346 278 341 3,077 305 58 18.3 65 97% 3,471 5.3 6 months 2014 156 155 166 13,533 2,479 52,761 4,639 2,631 2,598 580 271 306 2,763 245 109 19.2 66 97% 2,896 7.0 Full year 2014 230 230 401 12,370 2,021 42,848 9,442 2,630 2,584 562 274 336 2,946 251 99 38.3 64 97% 6,275 6.0 8/42#9A.P. Moller Maersk Group - Interim Report 02 2015 INVESTED CAPITAL AND ROIC MAERSK GROUP MAERSK LINE MAERSK OIL APM TERMINALS MAERSK DRILLING APM SHIPPING SERVICES Maersk Supply Service Maersk Tankers Damco Svitzer Contents 2015 47,303 20,340 5,962 5,995 8,246 4,679 1,699 1,580 286 1,114 Invested capital 30 June USD million 2014 51,941 20,176 5,007 6,384 6,695 5,440 1,662 1,754 514 1,510 2015 10.2% 10.1% ROIC, annualised 9.2% 10.9% 10.6% 11.8% 15.2% 8.9% 8.9% 11.6% 02 2014 18.6% 10.8% -96.6% 14.2% 7.2% 2.1% 7.8% -0.5% -25.8% 8.5% 2015 12.0% ROIC, annualised 6 months 12.2% 11.9% 11.9% 9.6% 9.9% 12.0% 9.0% -1.5% 11.3% 2014 14.3% 9.9% -34.2% 14.1% 7.6% 3.7% 6.8% 2.4% -18.0% 9.0% 9/42#10A.P. Moller Maersk Group - Interim Report 02 2015 Businesses Maersk Line / Maersk Oil / APM Terminals / Maersk Drilling / APM Shipping Services Maersk Group performance for the first six months of 2015 / Statement of the Board of Directors and Management / Independent Auditors' Review Report Contents 10/42#11A.P. Moller Maersk Group - Interim Report 02 2015 MAERSK LINE Contents Maersk Line reported a profit of USD 507m (USD 547m) and an underlying profit of USD 499m (USD 543m). Despite a sharp de- cline in the average freight rate of 14.1%, Maersk Line delivered a 10.1% (10.8%) ROIC based on its cost leadership strategy. Revenue of USD 6.3bn was 9.2% lower than 02 2014, primarily driven by the decline in the average freight rate to 2,261 USD/ FFE only partly offset by a volume increase of 3.7% to 2,484k FFE. The freight rate decline was largely attributable to bun- ker cost savings being passed through to the customers and to deteriorating market conditions on the Asia-Europe trade. Recognised freight revenue was USD 5.6bn (USD 6.3bn) and other revenue USD 617m (USD 612m). MAERSK LINE HIGHLIGHTS Tax Net operating profit/loss after tax (NOPAT) Cash flow from operating activities Cash flow used for capital expenditure Revenue Profit/loss before depreciation, amortisation and impairment losses, etc. (EBITDA) Depreciation, amortisation and impairment losses, net Gain on sale of non-current assets, etc., net Share of profit/loss in associated companies Profit/loss before financial items (EBIT) Invested capital ROIC, annualised. Global container demand is expected to have grown between 1-2% in 02 2015 compared to Q2 2014. The soft market develop- ment was primarily due to weak imports into Europe. Transported volumes (FFE in '000) Average freight rate (USD per FFE) Unit cost (USD per FFE incl. VSA income) ********. Average bunker price (USD per tonne) Maersk Line fleet, owned Maersk Line fleet, chartered Fleet capacity (TEU in '000) Estimated EBIT-margin gap to peers was at 6.8%-points in 01 2015. This remains consistent with Maersk Line's ambition to sustain a gap over it's peers above 5%-points. Unit cost decreased by 13.1% to 2,246 USD/FFE benefitting from decreased bunker prices and the USD appreciation. Bunker cost decreased 40.1% compared to 02 2014. Bunker efficiency remained on par with last year at 902 kg/FFE (903 kg/FFE). 02 2015 6,263 998 476 8 530 23 507 873 -861 20,340 10.1% 2,484 2,261 2,246 335 02 2014 6,902 1,024 461 4 567 20 547 870 -488 20,176 10.8% 2,396 2,634 2,585 579 USD MILLION 6 months 2014 2015 12,517 2,200 945 12 -1 1,266 45 1,221 1,844 -1,063 20,340 12.2% 4,691 2,370 2,342 346 278 341 3,077 13,365 1,886 836 20 1,070 69 1,001 1,583 -856 20,176 9.9% 4,639 2,631 2,598 580 271 306 2,763 11/42#12A.P. Moller Maersk Group - Interim Report 02 2015 Contents GL Cart C MAERS Cash flow from operating activities was USD 873m (USD 870m) and cash flow used for capital expenditure was USD 861m (USD 488m) leaving a free cash flow of USD 12m (USD 382m). The high capital expenditure in 02 2015 was mainly due to delivery of the last five of the 20 first generation Triple-E vessels. By the end of 02, the Maersk Line fleet consisted of 278 owned vessels (1.8m TEU) and 341 chartered vessels (1.3m TEU) with a total capacity of 3.1m TEU. The before mentioned last five first generation Triple-E vessels have a capacity of 90,000 TEU. Maersk Line signed a contract for delivery of 11 second gener- ation Triple-E vessels with a capacity of 19,630 TEU each and with an option for six vessels more, at the beginning of June. Delivery is scheduled to take place in 2017-18. Maersk Line's nominal fleet capacity increased by 5.0% and the average vessel size increased by 3.2% compared to 01 2015. Compared to 02 2014 the nominal fleet capacity has increased by 11.3%. Idle capacity at the end of 02 was 10,000 TEU (three vessels) versus 19,000 TEU (four vessels) at the end of 02 2014. Maersk Line's idle capacity corresponds to around 3% of total idle capacity in the market. The global container fleet has grown by 8% compared to 02 2014 and at the end of 02 2015 it stood at around 19m TEU of which 2% were idle. Deliveries amounted to 465,000 TEU (51 vessels) and 27,000 TEU (19 vessels) were scrapped during 02 2015. During the same period 735,000 TEU (60 vessels) of new capacity were ordered, lifting the order book to around 21% of the fleet (Alphaliner). MAERSK LINE Maersk Line is enabling trade in Lagos, Nigeria. 12/42#13A.P. Moller Maersk Group - Interim Report 02 2015 MAERSK OIL Contents Maersk Oil made a profit of USD 137m (loss of USD 1.4bn, ad- versely impacted by USD 1.7bn impairment on Brazilian assets) with an underlying profit of USD 217m (USD 315m). ROIC was 9.2% (negative 96.6%). The result was positively impacted by increased production, lower costs due to the cost transforma- tion programme and lower exploration costs but negatively impacted mainly by the lower oil price and USD 80m impair- ment from relinquishing Iraqi (Kurdistan) licenses. The entitlement production increased by 30% to 306,000 boepd (235,000 boepd) at a 44% lower average oil price of USD 62 per barrel. The increased production was a result of a higher share MAERSK OIL HIGHLIGHTS Revenue ********** Tax Net operating profit/loss after tax (NOPAT) Profit/loss before depreciation, amortisation and impairment losses, etc. (EBITDA) Depreciation, amortisation and impairment losses, net Gain on sale of non-current assets, etc., net Share of profit/loss in associated companies Profit/loss before financial items (EBIT) Cash flow from operating activities Cash flow used for capital expenditure Invested capital ROIC, annualised of production from Qatar due to the lower oil price as well as improved operational performance and production from new projects, in particular in the UK. Exploration costs Average share of oil and gas production (thousand barrels of oil equivalent per day) Average crude oil price (Brent) (USD per barrel) As a response to the lower oil price, Maersk Oil has initiated a number of activities to improve profitability and position Maersk Oil for growth. The current asset portfolio is being eval- uated and costs are being reviewed across all categories, both internal and from subcontractors. Maersk Oil expects that the net operating costs excluding exploration will be reduced with 10% by the end of 2015 compared to the 2014 baseline. This is in line with the targeted 20% reduction by the end of 2016. 02 2015 1,583 849 440 409 272 137 611 -502 5,962 9.2% 109 306 62 02 2014 2,272 1,441 2,101 -2 -662 735 -1,397 718 -546 5,007 -96.6% 172 235 110 USD MILLION 6 months 2014 2015 3,016 1,439 751 3 691 346 345 716 -996 5,962 11.9% 271 305 58 4,720 2,980 2,420 -5 555 1,606 -1,051 1,452 -1,025 5,007 -34.2% 345 245 109 13/42#14A.P. Moller Maersk Group - Interim Report 02 2015 Exploration costs were USD 109m (USD 172m) with the com- pletion of three (three) exploration/appraisal wells. Maersk Oil continues to evaluate the costs and benefits of its exploration activities given the oil price expectations. The decrease in tax of USD 463m to USD 272m was mainly due to lower current tax related to Denmark, Qatar and Algeria be- cause of the lower average oil price. Cash flow from operating activities was USD 611m (USD 718m); lower than last year mainly due to the lower oil price. Cash flow used for capital expenditure was USD 502m (USD 546m). PRODUCTION The increased entitlement production was a result of a higher production share in Qatar where the decreased oil price gives more barrels for cost recovery as well as strong operational Entitlement share of production Thousand barrels of oil equivalents per day (boepd) 160 140 120 100 80 60 40 20 0 92 120 Qatar Contents 43 77 57 64 36 29 4 6 6 UK Denmark Algeria Kazakhstan US 02 2014 02 2015 4 Brazil performance in particular in the UK and production from the new fields Golden Eagle in the UK and Jack in the US. DEVELOPMENT The development project at the Al Shaheen field offshore Qatar is progressing as planned. Maersk Oil Qatar is now more than half way through the drilling programme planned to reach a total of 50 wells. A plan for development and operation at a cost level of USD 1.8bn (Maersk Oil's share) for the Johan Sverdrup field offshore Norway was submitted in 01 2015 and final sanctioning by au- thorities is expected in 03, pending approval by all partners of the revised equity split from the authorities, which increased Maersk Oil's share from 8.12% to 8.44%. The high-pressure, high-temperature Culzean gas field offshore the UK reached internal project approval in June 2015. Partner ******** www approval was received in July 2015 and sanction from the au- thorities is expected in the second half of 2015. In Angola, the Chissonga project remains challenged due to the low oil price. Negotiations with authorities, partners and con- tractors are ongoing to make the project viable. EXPLORATION Three exploration wells were completed in Kurdistan, Kazakh- stan and Denmark. Two of the wells, the Kurdish Swara Tika East well and the Danish Xana well discovered hydrocarbons and potential commercial developments are being assessed. The third well, located in Kazakhstan, came out dry. In Brazil, Itaipu and Wahoo are under commercial evaluation. Decision of extension of exploration license or field develop- ment is expected by the end of 2015. MAERSK OIL The large field development plan, FDP2012, of the Al Shaheen field off shore Qatar is progressing as per plan. 14/42#15A.P. Moller Maersk Group - Interim Report 02 2015 APM TERMINALS Contents APM Terminals delivered a profit of USD 161m (USD 223m) and a ROIC of 10.9% (14.2%). The underlying profit was USD 159m (USD 211m). The result was negatively impacted by a revenue reduction of 8.6% caused by decreased volumes in key oil de- pendent markets as well as divestments in 2014 and weakening of local currencies against the USD resulting in lower revenue in USD terms. The number of containers handled by APM Terminals (weighted with APM Terminals' ownership interest) decreased by 6% com- pared to 2014, reaching 9.2m TEU (9.8m TEU). This was impacted by the divestment of APM Terminals Virginia, Portsmouth, USA and Terminal Porte Océane S.A. Le Havre, France during 03 2014. Excluding these, like-for-like volumes decreased by APM TERMINALS HIGHLIGHTS .............. Tax Net operating profit/loss after tax (NOPAT) Revenue Profit/loss before depreciation, amortisation and impairment losses, etc. (EBITDA) Depreciation, amortisation and impairment losses, net Gain on sale of non-current assets, etc., net Share of profit/loss in joint ventures Share of profit/loss in associated companies Profit/loss before financial items (EBIT) Cash flow from operating activities Cash flow used for capital expenditure Invested capital ROIC, annualised 3.5% in Q2, whereas the overall global container market grew approximately by 4.3% in 02 (Drewry). Containers handled (measured in million TEU and weighted with ownership share) Number of terminals The lower oil price resulted in significantly less import volumes in West Africa and Russia, which was partially offset by vol- ume ramp up in Santos, Brazil. Revenue improvement and cost savings initiatives have been implemented across the global portfolio successfully delivering improvements of more than USD 100m in the first half of 2015, however the impact from the adverse market conditions was only partly mitigated. The share of profit from joint venture and associate companies remained in line with last year at USD 54m (USD 53m). 02 2015 1,033 206 77 2 32 22 185 24 161 176 -169 5,995 10.9% 9.2 02 2014 1,130 260 73 18 28 25 258 35 223 192 -215 6,384 14.2% 9.8 USD MILLION 6 months 2014 2015 2,169 426 147 10 71 42 402 51 351 447 -391 5,995 11.9% 18.3 65 2,222 525 145 16 47 45 488 50 438 497 -335 6,384 14.1% 19.2 66 15/42#16A.P. Moller Maersk Group - Interim Report 02 2015 = Contents MPM TEAVINAL- Buckle 110.0 LAT FINGE REMINALS www K14 PIER 400 LOS ANGEL AP TERMINALS M NALS APM LAPM Although certain tax incentives have expired since 02 2014, the effective tax rate decreased to 12.4% (13.9%) due to lower profits in terminals with a relatively high tax rate. Cash flow from operating activities of USD 176m (USD 192m) developed in line with the operational results. Cash flow used for capital expenditure in the quarter decreased from USD 215m in 02 2014 to USD 169m in Q2 2015. APM TERMINALS An operator at work at APM Terminals' Pier 400 in Los Angeles. 16/42#17A.P. Moller Maersk Group - Interim Report 02 2015 MAERSK DRILLING Contents Maersk Drilling delivered a profit of USD 218m (USD 117m) gen- erating a ROIC of 10.6% (7.2%), positively impacted by general cost savings, fleet growth and an additional gain of USD 29m relating to the divestment of Maersk Drilling's activities in Venezuela in 2014, but partly offset by three rigs off contract. The underlying profit was USD 189m (USD 117m). The economic utilisation of the fleet was 85% (91%) adversely impacted by three rigs being idle, however benefitting from no yard stay/upgrade projects in the quarter compared to same quarter last year. The average operational uptime was 98% (97%) for the jack-up rigs and 96% (95%) for the floating rigs. At the end of 02 2015, Maersk Drilling's forward contract cov- erage was 83% for the remaining part of 2015, 61% for 2016 and MAERSK DRILLING HIGHLIGHTS Revenue ********** Tax Net operating profit/loss after tax (NOPAT) Cash flow from operating activities Cash flow used for capital expenditure Profit/loss before depreciation, amortisation and impairment losses, etc. (EBITDA) Depreciation, amortisation and impairment losses, net Gain on sale of non-current assets, etc., net Share of profit/loss in joint ventures Profit/loss before financial items (EBIT) Invested capital ROIC, annualised 32% for 2017. The total revenue backlog by the end of 02 2015 amounted to USD 5.3bn (USD 7.0bn). Operational uptime ....….... Contracted days Revenue backlog (USD bn) Operating costs increased due to newbuilds that started opera- tion during the last five quarters partly offset by the divestment of the Venezuela business in Q3 2014. Furthermore, the initiated cost reduction and efficiency enhancement programme, exclud- ing positive rate of exchange effects, delivered a saving of 5% on the operating cost level compared to 02 2014. The increased cash flow from operating activities of USD 248m (USD 173m) was mainly related to six additional rigs in operation and no yard stay/upgrade projects in Q2. Cash flow used for capital expenditures declined to USD 45m (USD 478m) mainly due to fewer instalments paid for the newbuild projects. 02 2015 624 361 118 29 -5 267 49 218 248 -45 8,246 10.6% 97% 1,671 02 2014 465 214 62 -2 150 33 117 173 -478 6,695 7.2% 97% 1,456 USD MILLION 6 months 2014 2015 1,254 704 259 29 8 482 96 386 528 -731 8,246 9.6% 97% 3,471 5.3 942 390 121 9 1 279 46 233 252 -1,330 6,695 7.6% 97% 2,896 7.0 17/42 ▶#18A.P. Moller Maersk Group - Interim Report 02 2015 Contract coverage per segment Segment Ultra-harsh environment jack-up rigs (Norway) Premium jack-up rigs Ultra deepwater and midwater rigs Total Revenue backlog, end 02 2015 USD bn 2.5 2.0 1.5 1.0 0.5 0.0 Contents -1.2 2015 -1.8 2016 MAERSK DRILLING ▸ A short term contract was signed for the ultra deep- water drillship Maersk Venturer during Q2 2015. -1.0 2017 2015 ROY 85% 79% 85% 83% -1.3 2018+ 2016 68% 47% 61% 61% LESK MAERSK DRILLING MEERSEVENTURER 18/42#19A.P. Moller Maersk Group - Interim Report 02 2015 APM SHIPPING SERVICES APM Shipping Services made a profit of USD 138m (USD 30m) and a ROIC of 11.8% (2.1%). The underlying profit was USD 109m (USD 27m). Contents Maersk Supply Service reported a profit of USD 64m (USD 33m) and a ROIC of 15.2% (7.8%). The underlying profit was USD 33m (USD 33m). The profit was positively impacted by a gain of USD 31m from the sale of a vessel. Additionally currency development and improvement of operational costs contributes with USD 23m, where lower crew costs and lower repair and maintenance costs were the primary elements. This was partly offset by lower revenue of USD 19m due to a combination of lower rates, lower utilisation and divestments. Contract coverage for the remainder of 2015 is 54%, and 37% for 2016. Cash flow used for capital expenditure decreased to USD Om (USD 17m) mainly due to the sale of two vessels during the APM SHIPPING SERVICES HIGHLIGHTS .…….…….….…..…. Tax Net operating profit/loss after tax (NOPAT) Cash flow from operating activities Cash flow used for capital expenditure Revenue Profit/loss before depreciation, amortisation and impairment losses, etc. (EBITDA) Depreciation, amortisation and impairment losses, net Gain on sale of non-current assets, etc., net Share of profit/loss in joint ventures Profit/loss before financial items (EBIT) Invested capital quarter. Cash flow from operations of USD 69m was on par with last year (USD 71m). ROIC, annualised Maersk Tankers made a profit of USD 35m (loss of USD 2m) and a ROIC of 8.9% (negative 0.5%). The underlying profit was USD 39m (loss of USD 1m). The result was positively impacted by cost saving initiatives reducing the vessel operating cost by 7% and improved rates across all the product segments due to increased demand in the market for transportation of refined oil products. The EBITDA in Q2 was USD 43m higher than same period last year. The reduction in revenue was mainly due to the divestment of the VLCC segment, offset by improved rates in the product segments. 02 2015 1,234 214 97 29 8 154 16 138 193 -82 4,679 11.8% 02 2014 1,456 129 94 11 46 16 30 111 339 5,440 2.1% USD MILLION 6 months 2014 2015 2,553 412 194 32 14 264 32 232 353 -177 4,679 9.9% 2,935 309 195 1 18 133 28 105 212 284 5,440 3.7% 19/42#20A.P. Moller Maersk Group - Interim Report 02 2015 Cash flow from operating activities was USD 55m (USD 83m), positively impacted by improved operating margin and reduc- tion in net working capital, offset by the lower activity from the reduced fleet. Cash flow from capital expenditures was USD 21m (positive USD 423m). 02 2014 was positively impacted by the divestment of the VLCC segment. The first out of ten MR newbuildings, Maersk Tacoma, was de- livered in April 2015 and the second, Maersk Tampa, was deliv- ered in July. Of the remaining eight newbuildings, seven will be delivered during 2016 and the last in 2017. Damco made a profit of USD 7m (loss of USD 32m) and a ROIC of 8.9% (negative 25.8%). The underlying profit was also USD 7m (loss of USD 32m). Revenue was USD 655m (USD 785m) down 17%, with approx- imately half of the drop caused by rate of exchange move- ments. Volumes grew by 8% in the supply chain management product. Controlled ocean freight volumes fell by 7%, partly due to de-selection of non profitable business. Airfreight vol- umes decreased by 4%, due to non-repeated project cargo in 2014. Although lower than last year, margins improved slightly for airfreight while margins for ocean freight and supply chain management remained in line with prior year period. The restructuring efforts carried out in 2014 have driven pro- ductivity improvements and reduced overhead cost, which positively impacted the quarterly result. For the remainder of 2015 focus is on driving commercial competitiveness and gen- erating profitable and sustainable top-line growth. Cash flow from operating activities was positive USD 20m (negative USD 71m) due to the improved operational result and reduced working capital. Contents Q2 HIGHLIGHTS Revenue Profit/loss before depreciation, amortisation and impairment losses, etc. (EBITDA) Depreciation, amortisation and impairment losses, net Gain on sale of non-current assets, etc., net Share of profit/loss in joint ventures .………………………... Profit/loss before financial items (EBIT) Tax Net operating profit/loss after tax (NOPAT) Cash flow from operating activities Cash flow used for capital expenditure Invested capital ROIC, annualised 6 MONTHS HIGHLIGHTS Revenue .……….…..... Profit/loss before depreciation, amortisation and impairment losses, etc. (EBITDA) Depreciation, amortisation and impairment losses, net Gain on sale of non-current assets, etc., net Share of profit/loss in joint ventures Profit/loss before financial items (EBIT) ************* Tax Net operating profit/loss after tax (NOPAT) Cash flow from operating activities Cash flow used for capital expenditure Invested capital ROIC, annualised MAERSK SUPPLY SERVICE 2015 2014 157 73 35 31 69 5 64 69 1,699 15.2% 340 152 70 29 111 9 102 107 -17 1,699 176 MAERSK SUPPLY SERVICE 2015 2014 12.0% 69 34 35 2 33 71 -17 1,662 7.8% 351 131 69 1 63 6 57 149 -51 1,662 6.8% MAERSK TANKERS 2015 2014 260 74 34 -4 36 1 35 55 -21 1,580 8.9% 536 142 68 -2 72 1 71 131 -55 1,580 285 MAERSK TANKERS 2015 2014 9.0% 31 32 -2 -2 83 423 1,754 -0.5% 623 96 69 -2 25 +1 26 120 484 1,754 2.4% 2015 655 17 7 3:36 13 7 20 -1 286 8.9% 2015 1,338 18 14 2 4 10 12 -2 32 286 -1.5% DAMCO 2014 785 -19 7 2 -24 8 -32 -71 -23 514 -25.8% DAMCO 2014 1,534 -18 16 4 -30 12 -42 -133 -28 514 -18.0% USD MILLION SVITZER 2014 2015 161 50 21 2 5 36 4 32 49 -60 1,114 11.6% 2015 339 100 42 3 10 71 10 61 83 -105 1,114 USD MILLION SVITZER 2014 11.3% 212 46 229353 20 37 28 -45 1,510 8.5% 20/42 429 99 40 3 13 75 10 65 76 -122 1,510 9.0%#21A.P. Moller Maersk Group - Interim Report 02 2015 Svitzer made a profit of USD 32m (USD 32m) and a ROIC of 11.6% (8.5%). The underlying profit was USD 30m (USD 27m). Revenue decreased by USD 51m compared to same period last year as a result of a substantially stronger USD, and because salvage revenue was excluded after the salvage activities were merged into a new company named Ardent on 1 May 2015. Svitzer improved its operating margins and ROIC in harbour towage compared to 02 2014 through pricing, productivity and cost saving initiatives, despite facing industry overcapacity in Europe and Australia, and a slowdown in the bulk trades. Cost was USD 111m (USD 166m), with decrease seen primarily from cost saving initiatives and lower salvage activity. End of May, Svitzer acquired the Brazilian towage operator Transmar thereby entering the sizeable Brazilian towage market. Cash flow from operating activities increased to USD 49m (USD 28m) driven by higher operating result. Cash flow from investing activities increased to USD 60m (USD 45m) due to investments in the fleet to support new projects. Contents MAERSK TANKERS > Maersk Tacoma, the first of ten MR newbuildings was delivered in April. AER MAERSK TACOMA SINGAPORE 21/42#22A.P. Moller Maersk Group - Interim Report 02 2015 MAERSK GROUP PERFORMANCE For the first six months of 2015 Contents Following a good start to 2015 in 01 the Maersk Group deliv- ered a profit in Q2 of USD 1.1bn (USD 2.3bn) giving a profit for the first six months of USD 2.7bn (USD 3.5bn). The profit last year was positively impacted by a USD 2.8bn gain from the sale of the majority share of Dansk Supermarked Group partly offset by the impairment of USD 1.7bn on Brazilian oil assets. The Group's ROIC was 12.0% (14.3%).The underlying profit was USD 2.4bn (USD 2.3bn). Revenue decreased to USD 21.1bn (USD 23.7bn), predominantly due to lower oil price and lower average container freight rates. The operating expenses decreased by USD 1.7bn mainly due to lower bunker prices and the decrease in tax by USD 1.2bn was primarily a result of the lower oil price. Cash flow from continuing operating activities was USD 3.7bn (USD 3.6bn) while cash flow used for capital expenditure was Underlying result reconciliation USD million, 6 months Maersk Group Maersk Line Maersk Oil APM Terminals Maersk Drilling APM Shipping Services Maersk Supply Service Maersk Tankers Damco Svitzer Result for the period - continuing operations 2015 2,658 1,221 345 351 386 232 102 71 -2 61 2014 3,511 1,001 -1,051 438 233 105 57 26 -42 65 Gain on sale of non- current assets, etc., net 2015 2014 343 12 3 10 29 32 29 -2 2 3 2,855 20 16 1 -2 3 USD 3.5bn (USD 3.2bn), excluding the sale of shares in Danske Bank of USD 4.9bn including dividend received in 01. Net interest-bearing debt was USD 8.8bn (USD 7.7bn at 31 Decem- ber 2014). Total equity was USD 38.2bn (USD 42.2bn at 31 Decem- ber 2014) positively affected by the profit for the period of USD 2.7bn and negatively affected by the ordinary dividend of USD 1.0bn and the extraordinary dividend of USD 5.2bn. Maersk Line made a profit of USD 1.2bn (USD 1.0bn) and a ROIC of 12.2% (9.9%). The underlying profit was USD 1.2bn (USD 909m). The improvement in the financial performance was achieved through lower costs including the benefit of lower bunker prices and despite significant pressure on freight rates especially in 02 2015. Volume increased by 1.1% to 4,691k FFE and average freight rate declined by 9.9% to 2,370 USD/FFE. Impairment losses, net¹ 2014 2015 -100 -80 7 -27 'Including the Group's share of impairments, net, recorded in joint ventures and associated companies. -1,664 72 -1,735 -1 -4 3 Tax on adjustments 2015 -3 -2 2014 16 23 -5 -2 1 1 Underlying result 2015 2,418 1,209 424 334 384 200 73 73 -4 58 2014 2,304 909 661 427 226 105 57 22/42 31 -42 59#23A.P. Moller Maersk Group - Interim Report 02 2015 Cash flow from operating activities was USD 1.8bn (USD 1.6bn) and cash flow used for capital expenditure was USD 1.1bn (USD 856m) leaving a free cash flow of USD 781m (USD 727m). Maersk Oil made a profit of USD 345m (loss of USD 1.1bn after impairment on Brazilian assets). The underlying profit was USD 424m (USD 661m) negatively impacted by 47% lower aver- age oil prices but positively impacted by a higher average entitle- ment production of 305,000 boepd (245,000 boepd), deferred tax income of USD 170m due to reduction of the UK tax rate, lower costs due to the cost transformation programme and lower exploration costs. The increased entitlement production was a result of a higher production share in Qatar where the decreased oil price gives more barrels for cost recovery as well as strong operational performance in particular in the UK and production from the new fields Golden Eagle in the UK and Jack in the US. Maersk Oil completed six (six) exploration/appraisal wells; in- cluding the East Swara Tika well in Iraq, Kurdistan, the Drum- tochty well in the UK, and the Xana well in Denmark. These three wells discovered hydrocarbons and commercial viability is being assessed. Three wells were assessed not to be com- mercially viable. Cash flow from operating activities was USD 716m, 51% lower than last year mainly due to the lower oil price. Cash flow used for capital expenditure was in line with last year at USD 996m (USD 1.0bn). APM Terminals made a profit of USD 351m (USD 438m) and a ROIC of 11.9% (14.1%). The underlying profit was USD 334m (USD 427m). Volumes decreased by 4.7% compared to 2014, reaching 18.3m TEU (19.2m TEU). The decrease was due to divestments of APM Terminals Virginia, Portsmouth, USA Contents and Terminal Porte Océane S.A. Le Havre, France during 03 2014. Excluding these, like-for-like volumes decreased by 1.9%, whereas the overall global container market grew by 4.2% (Drewry). The main reason for lower volume stems from key oil dependent markets, where the impact of low oil prices dete- riorated local economic conditions. Cash flow from operating activities was USD 447m (USD 497m) and cash flow used for capital expenditure was USD 391m (USD 335m). Maersk Drilling made a profit of USD 386m (USD 233m) pos- itively impacted by fleet growth but offset by three rigs being idle. ROIC was 9.6% (7.6%). The underlying profit was USD 384m (USD 226m). Maersk Drilling has taken delivery of one ultra harsh environ- ment jack-up rig, Maersk Integrator and one ultra deepwater drillship Maersk Voyager during the first half year. Since the launch of Maersk Drilling's cost reduction and efficiency en- hancement programme in 04 2014, Maersk Drilling has deliv- ered a 5% savings on the operating cost level, excluding positive rate of exchange effects, for the first six months of 2015 com- pared to the same period last year. Cash flow from operating activities was USD 528m (USD 252m) and cash flow used for capital expenditure was USD 731m (USD 1.3bn) mainly due to fewer instalments paid for the newbuild projects. APM Shipping Services made a profit of USD 232m (USD 105m) and a ROIC of 9.9% (3.7%). The improvement came predominantly from result improvement efforts in Maersk Supply Service with a profit of USD 102m (USD 57m), Maersk Tankers with a profit of USD 71m (USD 26m) and Damco improving from a loss of USD 42m in 2014 to a loss of USD 2m. The sale of Danske Bank shares was finalised in 01 with 85% ordered by A.P. Møller Holding A/S and 7% by other share- holders, at an offer price of DKK 177.27 per Danske Bank share. The Group's retained 1.6% ownership in Danske Bank is classi- fied as held for trading. The ordinary dividend of DKK 300 as well as the extraordinary cash dividend equal to DKK 1,671 per A.P. Møller-Mærsk A/S share of nominally DKK 1,000 (in total equal to USD 6.2bn) de- clared at the Annual General Meeting 30 March 2015 was paid on 7 April 2015. As part of the share buy-back programme 86,500 A-shares and 346,118 B-shares were cancelled in 02 in accordance with the decision at the Annual General Meeting on 30 March 2015. Other businesses made a profit of USD 245m (USD 283m). 2015 includes primarily the gain from the sale of shares in Danske Bank A/S of USD 223m, while 2014 primarily included the Group's share of profit in Danske Bank of USD 249m as well as the gain from the sale of Danbor of USD 23m. Unallocated activities comprise revenue and cost, etc. which is not attributed to reportable segments, including purchase of bunker and lubricating oil on behalf of companies in the Group as well as financial items. The financial items were negative by USD 151m (USD 339m); the decrease in the net financial ex- penses was primarily driven by lower interest expenses due to lower debt and interest rates as well as value adjustment on Danske Bank shares and currency adjustments. 23/42#24A.P. Moller Maersk Group - Interim Report 02 2015 STATEMENT OF THE BOARD OF DIRECTORS MANAGEMENT AND The Board of Directors and the Management have today dis- cussed and approved the interim report of A.P. Møller-Mærsk A/S for the period 1 January 2015 to 30 June 2015. The interim consolidated financial statements of the A.P. Moller-Maersk Group have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU and Danish disclosure requirements for listed companies. In our opinion the interim consolidated financial statements (pages 27-41) give a true and fair view of the Group's assets, liabilities and financial position at 30 June 2015 and of the result of the Group's operations and cash flows for the period 1 January to 30 June 2015. Furthermore, in our opinion the Directors' report (pages 3-23) includes a fair review of the development in the Group's operations and financial conditions, the result for the period, cash flows and financial position as well as the most significant risks and uncertainty factors that the Group faces. Copenhagen, 13 August 2015 Contents MANAGEMENT Nils S. Andersen Group CEO Kim Fejfer Claus V. Hemmingsen Søren Skou Jakob Thomasen Trond Westlie BOARD OF DIRECTORS Michael Pram Rasmussen-Chairman Niels Jacobsen - Vice chairman Ane Mærsk Mc-Kinney Uggla - Vice chairman Dorothee Blessing Sir John Bond Niels B. Christiansen Renata Frolova Arne Karlsson Jan Leschly Palle Vestergaard Rasmussen Robert Routs Robert Mærsk Uggla 24/42#25A.P. Moller Maersk Group - Interim Report 02 2015 INDEPENDENT AUDITORS' REVIEW REPORT To the shareholders of A.P. Møller-Mærsk A/S REVIEW REPORT ON INTERIM CONSOLIDATED FINANCIAL STATEMENTS We have reviewed the interim consolidated financial statements of A.P. Møller-Mærsk A/S for the period 1 January 2015-30 June 2015 comprising condensed income statement, condensed statement of comprehensive income, condensed balance sheet, condensed cash flow statement and condensed statement of changes in equity as well as selected explanatory notes, includ- ing summary of significant accounting policies. The Board of Directors' and the Management's responsibility for the interim consolidated financial statements The Board of Directors and the Management are responsible for the preparation of interim consolidated financial statements in accordance with IAS 34, Interim Financial Reporting, as adopted by the EU and Danish disclosure requirements for interim finan- cial reporting of listed companies, and for such internal control as management determines is necessary to enable the prepa- ration of interim financial statements that are free from mate- rial misstatement, whether due to fraud or error. Auditors' responsibility Our responsibility is to express a conclusion on the interim consolidated financial statements based on our review. We Contents conducted our review in accordance with the International Standard on Review of Interim Financial Information Performed by the Independent Auditor of the Entity and additional require- ments under Danish Auditor regulation. This requires us to con- clude whether anything has come to our attention that causes us to believe that the interim consolidated financial statements, taken as a whole, are not prepared in all material respects in accordance with the applicable financial reporting framework. This also requires us to comply with ethical requirements. A review of interim consolidated financial statements in accordance with the International Standard on Review of Interim Financial Information Performed by the Independent Auditor of the Entity is a limited assurance engagement. The auditor performs procedures, primarily consisting of making inquiries of management and others within the entity, as ap- propriate, and applying analytical procedures, and evaluates the evidence obtained. The procedures performed in a review are substantially less than those performed in an audit conducted in accordance with International Standards on Auditing. Accordingly, we do not express an audit opinion on the interim consolidated financial statements. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the interim consolidated financial statements for the period 1 January 2015-30 June 2015 are not prepared in all material respects in accordance with IAS 34, Interim Financial Reporting, as adopted by the EU and Danish disclosure requirements for interim financial reporting of listed companies. Copenhagen, 13 August 2015 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Gert Fisker Tomczyk State Authorised Public Accountant KPMG Statsautoriseret Revisionspartnerselskab Henrik O. Larsen State Authorised Public Accountant 25/42#26A.P. Moller Maersk Group - Interim Report 02 2015 Financials (In parenthesis the corresponding figures for 2014) Interim consolidated financial statements 02 2015 Condensed income statement / Condensed statement of comprehensive income / Condensed balance sheet at 30 June Condensed cash flow statement / Condensed statement of changes in equity / Notes to the consolidated financial statements Contents 26/42#27A.P. Moller Maersk Group - Interim Report 02 2015 CONDENSED INCOME STATEMENT AMOUNTS IN USD MILLION Note 1 2 1 5 5 5 5 Revenue Profit before depreciation, amortisation and impairment losses, etc. Depreciation, amortisation and impairment losses, net Gain on sale of non-current assets, etc., net Share of profit/loss in joint ventures Share of profit/loss in associated companies Profit before financial items Financial items, net Profit before tax Tax Profit for the period - continuing operations Profit for the period - discontinued operations Profit for the period OF WHICH: Non-controlling interests A.P. Møller-Mærsk A/S' share Earnings per share of continuing operations, USD Diluted earnings per share of continuing operations, USD Earnings per share, USD Diluted earnings per share, USD = Contents Notes / Financials 02 2015 10,526 2,631 1,223 68 39 24 1,539 -80 1,459 373 1,086 1,086 17 1,069 49 49 49 49 02 2014 11,949 3,085 2,806 57 41 156 533 -185 348 823 -475 2,779 2,304 54 2,250 -24 -24 103 102 2015 21,073 5,201 2,324 343 100 42 3,362 -151 3,211 553 2,658 2,658 50 2,608 121 121 121 121 6 months 2014 23,685 6,102 3,743 80 72 259 2,770 -339 2,431 1,776 655 2,856 3,511 111 3,400 26 26 156 155 Full year 2014 47,569 11,919 7,008 600 -6 412 5,917 -606 5,311 2,972 2,339 2,856 5,195 180 5,015 100 100 230 230 CONDENSED STATEMENT OF COMPREHENSIVE INCOME AMOUNTS IN USD MILLION Profit for the period Translation from functional currency to presentation currency Other equity investments Cash flow hedges Tax on other comprehensive income Share of other comprehensive income of joint ventures, net of tax Share of other comprehensive income of associated companies, net of tax ************ *********** Total items that have been or may be reclassified to the income statement Actuarial gains/losses on defined benefit plans, etc. Tax on actuarial gains/losses on defined benifit plans, etc. *********** Total items that will not be reclassified to the income statement Other comprehensive income, net of tax Total comprehensive income for the period OF WHICH: Non-controlling interests ******************. A.P. Møller-Mærsk A/S' share 02 2015 1,086 67 33 202 -16 6 23 315 -1 -1 314 1,400 26 1,374 02 2014 2,304 -157 -15 11 6 -3 2 -156 -156 2,148 39 2,109 2015 2,658 -188 -79 61 -2 3 23 -182 -182 2,476 42 2,434 6 months 2014 3,511 -243 -11 -68 11 -3 -5 -319 -319 3,192 96 3,096 Full year 2014 5,195 -1,200 -121 -288 17 -24 9 -1,607 -21 12 60 -1,616 3,579 134 3,445 27/42 ▶#28A.P. Moller Maersk Group - Interim Report 02 2015 CONDENSED BALANCE SHEET, TOTAL ASSETS AMOUNTS IN USD MILLION Note 2 1 Intangible assets Property, plant and equipment Financial non-current assets, etc. Deferred tax Total non-current assets Inventories Receivables, etc. Securities Cash and bank balances Assets held for sale Total current assets Total assets ********** = Contents Notes / Financials 2015 2,813 45,515 4,553 526 53,407 977 6,413 891 1,780 547 10,608 64,015 30 June 31 December 2014 3,360 42,970 10,729 607 57,666 1,307 7,147 314 3,411 1,127 13,306 70,972 2014 2,818 44,671 4,594 536 52,619 1,139 5,911 379 3,507 5,289 16,225 68,844 CONDENSED BALANCE SHEET, TOTAL EQUITY AND LIABILITIES AMOUNTS IN USD MILLION Note Equity attributable to A.P. Møller-Mærsk A/S Non-controlling interests Total equity Borrowings, non-current Other non-current liabilities Total non-current liabilities Borrowings, current Other current liabilities 2 Liabilities associated with assets held for sale *********** Total current liabilities 1 Total liabilities Total equity and liabilities 2015 37,605 631 38,236 10,573 6,045 16,618 1,083 7,822 256 9,161 25,779 64,015 30 June 31 December 2014 2014 41,830 644 42,474 11,272 5,964 17,236 2,735 8,489 38 11,262 28,498 70,972 41,542 683 42,225 10,913 6,104 17,017 1,412 8,178 12 9,602 26,619 68,844 28/42#29A.P. Moller Maersk Group - Interim Report 02 2015 CONDENSED CASH FLOW STATEMENT AMOUNTS IN USD MILLION Profit before financial items Non-cash items, etc. Change in working capital. Cash flow from operating activities before financial items and tax Financial payments, net Taxes paid Cash flow from operating activities Purchase of intangible assets and property, plant and equipment Sale of intangible assets and property, plant and equipment Acquisition/sale of subsidiaries and activities, etc., net ..... Cash flow used for capital expenditure Purchase/sale of securities, trading portfolio Cash flow used for investing activities Repayment of/proceeds from loans, net Purchase of own shares Dividends distributed Dividends distributed to non-controlling interests Other equity transactions ********.. Cash flow from financing activities Net cash flow from continuing operations Net cash flow from discontinued operations Net cash flow for the period Cash and cash equivalents 1 January Currency translation effect on cash and cash equivalents Cash and cash equivalents, end of period Of which classified as assets held for sale Cash and cash equivalents, end of period = Contents Notes / Financials 2015 3,362 1,922 -540 4,744 -31 -986 3,727 -3,878 303 5,007 1,432 -35 1,397 -135 -268 -6,141 -90 24 -6,610 -1,486 -1,486 3,406 -206 1,714 1,713 6 months 2014 2,770 3,301 -600 5,471 -77 -1,771 3,623 -4,021 685 87 -3,249 -16 -3,265 -1,760 -1,131 -130 116 -2,905 -2,547 2,509 -38 3,358 11 3,331 3,329 Full year 2014 5,917 6,026 260 12,203 -153 -3,289 8,761 -8,639 1,515 951 -6,173 -90 -6,263 ********* -2,888 -641 -1,131 -148 122 -4,686 -2,188 2,509 321 ****** 3,358 -273 3,406 -1 3,405 CASH AND CASH EQUIVALENTS Cash and bank balances Overdrafts Cash and cash equivalents, end of period 2015 1,780 67 1,713 6 months 2014 3,411 82 3,329 Full year 2014 3,507 102 3,405 Cash and bank balances include USD 1.0bn (USD 1.0bn at 31 December 2014) that relates to cash and bank balances in countries with exchange control or other restrictions. These funds are not readily available for general use by the parent company or other subsidiaries. 29/42#30A.P. Moller Maersk Group - Interim Report 02 2015 CONDENSED STATEMENT OF CHANGES IN EQUITY AMOUNTS IN USD MILLION 2015 Equity 1 January 2015 Translation from functional currency to presentation currency Other equity investments Cash flow hedges Tax on other comprehensive income Share of other comprehensive income of joint ventures, net of tax Share of other comprehensive income of associated companies, net of tax ...... Other comprehensive income, net of tax Profit for the period ******** Total comprehensive income for the period Dividends to shareholders Value of share-based payments Sale of non-controlling interests Purchase of own shares Sale of own shares Capital increases and decreases¹ Total transactions with shareholders = Contents Share capital Notes / Financials 3,985 Equity 30 June 2015 'At the Annual General Meeting of A.P. Møller-Mærsk A/S on 30 March 2015, cf. note 5, the shareholders decided on the cancellation of treasury shares, whereby the share capital has decreased by a transfer of reserves to retained earnings. -79 -79 3,906 Translation reserve -7 -178 -178 -178 -185 Reserve for other equity investments -106 -79 -79 -79 -185 Reserve for hedges -294 59 -2 57 57 -237 A.P. Møller-Mærsk A/S Retained earnings 37,964 3 23 26 2,608 2,634 -6,141 13 -268 25 79 -6,292 34,306 Total Non-controlling interests 41,542 -178 -79 59 -2 3 23 -174 2,608 2,434 -6,141 13 -268 25 -6,371 37,605 683 -10 - 2 -8 50 42 -90 -4 -94 631 Total equity 42,225 -188 -79 61 -2 3 23 -182 2,658 2,476 -6,231 13 -4 -268 25 -6,465 38,236 30/42#31A.P. Moller Maersk Group - Interim Report 02 2015 CONDENSED STATEMENT OF CHANGES IN EQUITY AMOUNTS IN USD MILLION 2014 Equity 1 January 2014 Translation from functional currency to presentation currency Other equity investments Cash flow hedges Tax on other comprehensive income Share of other comprehensive income of joint ventures, net of tax Share of other comprehensive income of associated companies, net of tax ...... Other comprehensive income, net of tax Profit for the period ******** Total comprehensive income for the period Dividends to shareholders Value of share-based payments Sale of non-controlling interests Sale of own shares Capital increases and decreases¹ Other equity movements Total transactions with shareholders = Contents Share capital Notes / Financials 738 3,247 3,247 Equity 30 June 2014 3,985 'At the Annual General Meeting of A.P. Møller-Mærsk A/S on 31 March 2014 the shareholders decided on the issue of bonus shares by four shares to one, whereby the share capital has increased by a transfer of reserves from retained earnings. 2 Sale of Dansk Supermarked Group in April 2014. A 19% share is retained by the Group as available-for-sale (other equity investments). Translation reserve 1,148 -229 -229 -229 919 Reserve for other equity investments 15 -11 -11 -11 4 Reserve for hedges -24 -1 -66 11 -56 -56 -80 A.P. Møller-Mærsk A/S Retained earnings 37,952 -3 -5 -8 3,400 3,392 ..... -1,131 7 -10 39 -3,247 -4,342 37,002 Total Non-controlling interests 39,829 -230 -11 -66 11 -3 -5 -304 3,400 3,096 -1,131 7 -10 39 -1,095 41,830 2,684 -13 - -2 -15 111 96 -671 -1,487² 16 6 -2,136 644 Total equity 42,513 -243 -11 -68 11 -3 -5 -319 3,511 3,192 -1,802 7 -1,497 39 16 6 -3,231 42,474 31/42#32A.P. Moller Maersk Group - Interim Report 02 2015 NOTES Contents NOTE 1 -Segment information NOTE 2 - Discontinued operations and assets held for sale NOTE 3 - Financial risks, etc. NOTE 4 - Commitments NOTE 5 - Share capital and earnings per share NOTE 6 - Accounting policies, judgements and significant estimates 33 38 39 39 40 41 32/42#33A.P. Moller Maersk Group - Interim Report 02 2015 NOTE 1 SEGMENT INFORMATION AMOUNTS IN USD MILLION Q2 2015 External revenue Inter-segment revenue Total revenue Profit/loss before depreciation, amortisation and impairment losses, etc. Depreciation and amortisation Impairment losses Gain/loss on sale of non-current assets, etc., net Share of profit/loss in joint ventures Share of profit/loss in associated companies Profit/loss before financial items (EBIT) **********………….…... Tax Net operating profit/loss after tax (NOPAT) Cash flow from operating activities Cash flow used for capital expenditure Free cash flow Investments in non-current assets¹ ¹ Comprise additions of intangible assets and property, plant and equipment, including additions from business combinations. = Contents Notes / Financials Maersk Line 6,186 77 6,263 998 476 8 530 23 507 873 -861 12 889 Maersk Oil 1,583 1,583 849 360 80 409 272 137 611 -502 109 568 APM Terminals 665 368 1,033 206 77 2 32 22 185 24 161 176 -169 7 196 Maersk Drilling 620 4 624 361 118 29 -5 267 49 218 248 -45 203 76 Maersk Supply Service 154 3 157 73 35 31 69 5 64 69 69 32 Maersk Tankers 260 260 74 34 - -4 36 35 55 -21 34 113 Damco 655 655 17 7 3 36:7 13 20 -1 19 2 Svitzer 155 161 50 21 - 2 5 36 4 32 49 -60 -11 70 Total reportable segments 10,278 458 10,736 2,628 1,128 80 68 35 22 1,545 384 1,161 2,101 -1,659 442 1,946 33/42#34A.P. Moller Maersk Group - Interim Report 02 2015 NOTE 1 SEGMENT INFORMATION - CONTINUED AMOUNTS IN USD MILLION 6 MONTHS 2015 External revenue Inter-segment revenue Total revenue Profit/loss before depreciation, amortisation and impairment losses, etc. Depreciation and amortisation Impairment losses Reversal of impairment losses Gain/loss on sale of non-current assets, etc., net Share of profit/loss in joint ventures Share of profit/loss in associated companies Profit/loss before financial items (EBIT) ..……..……..... Tax Net operating profit/loss after tax (NOPAT) Cash flow from operating activities Cash flow used for capital expenditure Free cash flow Investments in non-current assets¹ Intangible assets Property, plant and equipment Investments in joint ventures Investments in associated companies Other non-current assets Assets held for sale Other current assets Total assets Non-interest bearing liabilities Invested capital, net ¹ Comprise additions of intangible assets and property, plant and equipment, including additions from business combinations. = Contents Notes / Financials Maersk Line 12,343 174 12,517 2,200 945 12 -1 1,266 45 1,221 1,844 -1,063 781 1,130 1 21,843 1 179 11 3,238 25,273 4,933 20,340 Maersk Oil 3,016 3,016 1,439 671 80 3 691 346 345 716 -996 -280 1,034 1,363 7,927 613 1,361 11,264 5,302 5,962 APM Terminals 1,413 756 2,169 426 154 7 10 71 42 402 51 351 447 -391 56 448 1,265 2,865 1,489 523 131 51 768 7,092 1,097 5,995 Maersk Drilling 1,246 8 1,254 704 232 27 29 8 482 96 386 528 -731 -203 756 39 7,956 126 30 741 8,892 646 8,246 Maersk Supply Service 335 5 340 152 70 29 111 9 102 107 -17 90 66 9 1,711 6 180 1,906 207 1,699 Maersk Tankers 535 536 142 68 -2 72 1 71 131 -55 76 252 1,615 177 1,793 213 1,580 Damco 1,335 3 1,338 18 14 2 4 10 12 -2 32 32 5 110 79 25 35 6 613 868 582 286 Svitzer 326 13 339 100 42 3 10 71 10 61 83 -105 -22 118 25 1,029 77 47 114 1,292 178 1,114 Total reportable segments 20,549 960 21,509 5,181 2,196 107 7 86 93 41 3,105 570 2,535 3,888 -3,358 530 3,809 2,812 45,025 1,718 524 1,041 68 7,192 58,380 13,158 45,222 34/42 ▶#35A.P. Moller Maersk Group - Interim Report 02 2015 NOTE 1 SEGMENT INFORMATION - CONTINUED AMOUNTS IN USD MILLION Q2 2014 External revenue Inter-segment revenue Total revenue Profit/loss before depreciation, amortisation and impairment losses, etc. Depreciation and amortisation Impairment losses Reversal of impairment losses Gain/loss on sale of non-current assets, etc., net Share of profit/loss in joint ventures Share of profit/loss in associated companies Profit/loss before financial items (EBIT) ..……..……..... Tax Net operating profit/loss after tax (NOPAT) Cash flow from operating activities Cash flow used for capital expenditure Free cash flow Investments in non-current assets¹ ¹ Comprise additions of intangible assets and property, plant and equipment, including additions from business combinations. = Contents Notes / Financials Maersk Line 6,783 119 6,902 1,024 461 4 567 20 547 870 -488 382 535 Maersk Oil 2,272 2,272 1,441 366 1,735 -2 -662 735 -1,397 718 -546 172 849 APM Terminals 695 435 1,130 260 73 18 28 25 258 35 223 192 -215 -23 248 Maersk Drilling 465 465 214 62 -2 150 33 117 173 -478 -305 484 Maersk Supply Service 174 2 176 69 34 35 2 33 71 -17 54 31 Maersk Tankers 285 285 31 32 -2 -3 +1 -2 83 423 506 6 Damco 785 785 -19 7 2 -24 8 -32 -71 -23 -94 6 Svitzer 200 12 212 46 23 - 329 37 5 32 28 -45 -17 52 Total reportable segments 11,659 568 12,227 3,066 1,058 1,735 3 22 37 23 358 837 -479 2,064 -1,389 675 2,211 35/42#36A.P. Moller Maersk Group - Interim Report 02 2015 NOTE 1 SEGMENT INFORMATION - CONTINUED AMOUNTS IN USD MILLION 6 MONTHS 2014 External revenue Inter-segment revenue Total revenue Profit/loss before depreciation, amortisation and impairment losses, etc. Depreciation and amortisation Impairment losses Reversal of impairment losses Gain/loss on sale of non-current assets, etc., net Share of profit/loss in joint ventures Share of profit/loss in associated companies Profit/loss before financial items (EBIT) ..……..……..... Tax Net operating profit/loss after tax (NOPAT) Cash flow from operating activities Cash flow used for capital expenditure Free cash flow Investments in non-current assets¹ Intangible assets Property, plant and equipment Investments in joint ventures Investments in associated companies Other non-current assets Assets held for sale Other current assets Total assets Non-interest bearing liabilities Invested capital, net ¹ Comprise additions of intangible assets and property, plant and equipment, including additions from business combinations. = Contents Notes / Financials Maersk Line 13,122 243 13,365 1,886 908 72 20 1,070 69 1,001 1,583 -856 727 961 1 21,482 1 123 22 3,279 24,908 4,732 20,176 Maersk Oil 4,720 4,720 2,980 685 1,735 -5 555 1,606 -1,051 1,452 -1,025 427 1,264 1,584 6,907 712 1,510 10,713 5,706 5,007 APM Terminals 1,360 862 2,222 525 145 16 47 45 488 50 438 497 -335 162 445 1,149 2,752 1,650 520 165 482 861 7,579 1,195 6,384 Maersk Drilling 933 9 942 390 121 9 1 279 46 233 252 -1,330 -1,078 1,451 33 6,774 160 70 680 7,717 1,022 6,695 Maersk Supply Service 347 4 351 131 69 1 63 6 57 149 -51 98 67 8 1,705 1 4 16 196 1,930 268 1,662 Maersk Tankers 623 623 96 65 4 -2 25 +1 26 120 484 604 22 3 1,371 4 1 485 269 2,133 379 1,754 Damco 1,530 4 1,534 -18 16 4 -30 12 -42 -133 -28 -161 11 191 88 25 51 5 851 1,211 697 514 Svitzer 410 19 429 99 43 - 3 3 13 75 10 65 76 -122 -46 83 387 1,026 63 47 195 1,718 208 1,510 Total reportable segments 23,045 1,141 24,186 6,089 2,052 1,739 75 46 66 40 2,525 1,798 727 3,996 -3,263 733 4,304 3,356 42,105 1,903 522 1,172 1,010 7,841 57,909 14,207 43,702 36/42#37A.P. Moller Maersk Group - Interim Report 02 2015 NOTE 1 SEGMENT INFORMATION CONTINUED AMOUNTS IN USD MILLION REVENUE Reportable segments Other businesses Unallocated activities (Maersk Oil Trading) Eliminations Total PROFIT FOR THE PERIOD Reportable segments Other businesses Financial items Unallocated tax Other unallocated items, cost Eliminations Total continuing operations Discontinued operations, after eliminations Total = Contents Notes / Financials 02 2015 10,736 326 61 -597 10,526 1,161 8 -80 +8 5 -6 1,086 1,086 - — 02 2014 12,227 350 43 -671 11,949 -479 175 -185 +15 7 6 -475 2,779 2,304 2015 21,509 691 119 -1,246 21,073 2,535 245 -151 +16 +7 6 2,658 2,658 6 months 2014 24,186 713 113 -1,327 23,685 727 283 -339 +27 41 -2 655 2,856 3,511 ASSETS Reportable segments Other businesses Unallocated activities. Eliminations ......... Total LIABILITIES Reportable segments Other businesses Unallocated activities Eliminations Total 2015 58,380 1,734 5,779 -1,878 64,015 13,158 434 14,010 -1,823 25,779 30 June 2014 57,909 7,290 7,705 -1,932 70,972 14,207 412 15,707 -1,828 28,498 37/42 ▶#38A.P. Moller Maersk Group - Interim Report 02 2015 NOTE 2 DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE AMOUNTS IN USD MILLION PROFIT FOR THE PERIOD- DISCONTINUED OPERATIONS Revenue Expenses Gains/losses on sale of assets & businesses Profit before tax, etc. Tax Profit for the period - discontinued operations ........ A.P. Møller-Mærsk A/S' share hereof Earnings earnings per share Diluted earnings per share CASH FLOWS FROM DISCONTINUED OPERATIONS FOR THE PERIOD Cash flow from operating activities Cash flow used for investing activities Cash flow from financing activities Net cash flow from discontinued operations = Contents Notes / Financials 2015 6 months 2014 2,768 2,662 2,775 2,881 25 2,856 2,831 130 129 -94 1,914 689 2,509 Full year 2014 2,768 2,662 2,775 2,881 25 2,856 2,831 130 130 -94 1,914 689 2,509 BALANCE SHEET ITEMS COMPRISE: Non-current assets Current assets ..….…....... Assets held for sale Provisions Other liabilities Liabilities associated with assets held for sale 2015 517 30 547 256 256 30 June 2014 1,092 35 1,127 6 32 38 31 December 2014 5,283 6 5,289 Discontinued operations and assets held for sale during the first six months 2015 Assets held for sale primarily relate to Esvagt Group. The agreement to sell Esvagt Group was announced early July and completion is pending regulatory approval which is anticipated by the end of September 2015. Discontinued operations and assets held for sale during the first six months 2014 Dansk Supermarked Group was classified as discontinued operations and information of discontinued operations above solely relates to Dansk Supermarked Group. The shares in Danske Bank were held for sale at the end of 2014 and were divested in March 2015 through an offer to share- holders. Out of the 202,209,171 Danske Bank shares offered, 171,714,796 shares were acquired by A.P. Møller Holding A/S. The offer price which was determined as the volume weighted average price (VWAP) of Danske Bank shares traded on Nasdaq Copenhagen during the five trading days in the period from Friday 20 March 2015 to Thursday 26 March 2015 (both days incl.) amounted to DKK 177.27 per Danske Bank share. 1:12 After the sale of the majority share in Dansk Supermarked Group, a 19% share was retained by the Group. This invest- ment was classified as available-for-sale (other equity investments) in unallocated activities and measured at fair value. Assets held for sale at 30 June 2014 related primarily to seven vessels in the VLCC segment in Maersk Tankers and the Terminal in Virginia, USA in APM Terminals. 38/42#39A.P. Moller Maersk Group - Interim Report 02 2015 NOTE 3 FINANCIAL RISKS, ETC. AMOUNTS IN USD MILLION Except of the below, the financial risks, etc. are not significantly different from those described in note 18 of the consolidated financial statements for 2014, to which reference is made. Liquidity risk Borrowings Net interest-bearing debt Liquidity reserve¹ 2015 11,656 8,835 = Contents 9,358 Notes / Financials 30 June 31 December 2014 14,007 9,467 11,647 ¹ Liquidity reserve is defined as undrawn committed revolving facilities with more than one year to expiry, securities and cash and bank balances, excluding balances in countries with exchange control or other restrictions. 2014 12,325 7,698 11,562 Based on the liquidity reserve, the size of the committed loan facilities, including loans for the financing of specific assets, the maturity of outstanding loans, and the current investment profile, the Group's financial resources are deemed satisfactory. The Group's long term objective is to maintain a conservative funding profile in line with its current BBB+/Baa1 rating level. USD 0.7bn of undrawn financing commitments were either cancelled or expired in the first six months of 2015 due to the Group's strong liquidity position. The average term to maturity of loan facilities in the Group was about four years (about five years at 31 December 2014). NOTE 4 COMMITMENTS AMOUNTS IN USD MILLION Operating lease commitments At 30 June 2015, the net present value of operating lease commitments totalled USD 7.6bn using a discount rate of 6%, a decrease from USD 7.7bn at 31 December 2014, primarily due to payments in 2015. Operating lease commitments at 30 June 2015 is divided into the following business units: • Maersk Line of USD 3.5bn APM Terminals of USD 2.9bn • Maersk Tankers of USD 0.4bn Other of USD 0.8bn About one third of the time charter payments in Maersk Line and Maersk Tankers are estimated to relate to operating costs for the assets. Capital commitments 30 JUNE 2015 Capital commitments relating to acquisition of non-current assets Commitments towards concession grantors ….…...... Total 31 DECEMBER 2014 Capital commitments relating to acquisition of non-current assets Commitments towards concession grantors Total Maersk Line 2,199 2,199 773 773 Maersk APM Maersk Oil Terminals Drilling 2,697 763 3,460 1,143 1,088 2,231 946 1,301 2,247 1,095 1,519 2,614 516 516 1,132 1,132 Other 1,468 1,468 1,671 1,672 Total 7,826 2,064 9,890 5,814 2,608 8,422 ******* 39/42#40A.P. Moller Maersk Group - Interim Report 02 2015 NOTE 4 COMMITMENTS-CONTINUED AMOUNTS IN USD MILLION Newbuilding programme at 30 June 2015 Container vessels Rigs and drillships Tanker vessels Anchor handling vessels, tugboats and standby vessels, etc. Total Capital commitments relating to the newbuilding programme at 30 June 2015 Container vessels Rigs and drillships Tanker vessels Anchor handling vessels, tugboats and standby vessels, etc. Total 2015 = Contents 1 Notes / Financials 3 4 2015 347 4 66 91 508 2016 1 7 10 18 2016 212 426 165 315 1,118 2017 13 1 6 20 2017 965 17 564 1,546 No. 2018- 5 2 7 USD million 2018- 480 196 676 The capital commitments will be financed by cash flow from operating activities as well as existing and new loan facilities. Total USD 3.8bn of the total capital commitments is related to the newbuilding programme for ships, rigs, etc. at a total contract price of USD 4.1bn including owner-furnished equipment. The remaining capital commitments of USD 6.1bn relate to investments mainly within APM Terminals and Maersk Oil. 18 1 9 21 49 Total 2,004 430 248 1,166 3,848 NOTE 5 SHARE CAPITAL AND EARNINGS PER SHARE AMOUNTS IN USD MILLION Development in the number of shares: A-shares of DKK 1,000 1 January 2015 Cancellation Conversion 30 June 2015 Own shares Development in the holding of own shares: A SHARES 1 January Addition Cancellation 30 June 10,988,834 86,500 7 ..... 10,902,341 B SHARES 1 January Addition Cancellation Disposal 30 June DKK 500 61,075 25,425 86,500 332 342,066 106,815 346,118 16,956 85,807 No. of shares of DKK 1,000 2015 2014 -14 318 10,642,790 0 At the Annual General Meeting of A.P. Møller-Mærsk A/S on 30 March 2015 the shareholders decided on the cancellation of treasury shares, whereby the share capital is decreased. On 10 June 2015, the Company's share capital was reduced from nominally DKK 21,978,000,000 with nominally DKK 432,618,000 in total, divided between 86,500 A shares of DKK 1,000 and 346,118 B shares of DKK 1,000 to nominally DKK 21,545,382,000. 0 B-shares of DKK 1,000 132,628 10,988,905 346,118 3 26,750 105,878 DKK 500 61 25 86 190 342 107 346 17 86 -6 184 Nominal value DKK 2015 2014 0 0 133 Nominal DKK million 27 106 21,978 433 Additions of own shares are related to the buy-back programme initiated in September 2014. Disposals of own shares are primarily related to the share option programme. 21,545 USD million 0.28% 0.11% 0.39% 0.00% 3,985 79 1.56% 0.49% 1.57% 0.09% 0.39% 3,906 % of share capital 2015 2014 0.00% 0.00% 0.00% 0.00% 0.60% 0.00% 0.00% 0.12% 0.48% 40/42#41A.P. Moller Maersk Group - Interim Report 02 2015 NOTE 5 SHARE CAPITAL AND EARNINGS PER SHARE - CONTINUED AMOUNTS IN USD MILLION Basis for calculating earnings per share is the following: A.P. Møller-Mærsk A/S' share of: Profit for the period of continuing operations Profit for the period of discontinued operations Profit for the period Issued shares 1 January Average number of own shares. Average number of cancelled shares Average number of shares = Contents 2015 Notes / Financials 2,608 2,608 2015 2014 569 2,831 3,400 2014 At 30 June 2015, there is a dilution effect on earnings per share on 23,470 (43,620) issued share options corresponding to 0.11% (0.20%). There are no share options without dilution effect. 21,978,000 21,978,000 455,514 118,986 48,069 21,474,417 21,859,014 NOTE 6 ACCOUNTING POLICIES, JUDGEMENTS AND SIGNIFICANT ESTIMATES AMOUNTS IN USD MILLION The interim consolidated financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting' as issued by the International Accounting Standards Board (IASB) and as adopted by the EU and Danish disclosure requirements for listed companies. The accounting policies, judgements and significant estimates are consistent with those applied in the consolidated financial statements for 2014 on pages 65-71 of the Annual Report, to which reference is made. As of 1 January 2015 the Group has implemented Annual improvements 2012, Annual improvements 2013 and Amendment to IAS 19 'Employee benefits'. The amendments encompass various clarifications and additions to disclosure requirements with no material effect on the financial statements. 41/42 ▶#42A.P. Moller Maersk Group - Interim Report 02 2015 COLOPHON Editors Jesper Cramon Finn Glismand Henrik Lund Design and layout e-Types & e-Types Daily ISSN 1604-2913 Produced in Denmark 2015 Contents BOARD OF DIRECTORS Michael Pram Rasmussen, Chairman Niels Jacobsen, Vice chairman Ane Mærsk Mc-Kinney Uggla, Vice chairman Dorothee Blessing Sir John Bond Niels B. Christiansen Renata Frolova Arne Karlsson Jan Leschly Palle Vestergaard Rasmussen Robert Routs Robert Mærsk Uggla MANAGEMENT Nils S. Andersen, Group CEO Kim Fejfer Claus V. Hemmingsen Søren Skou Jakob Thomasen Trond Westlie AUDIT COMMITTEE Arne Karlsson, Chairman Niels B. Christiansen Robert Routs REMUNERATION COMMITTEE Michael Pram Rasmussen, Chairman Niels Jacobsen Ane Mærsk Mc-Kinney Uggla AUDITORS PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab KPMG Statsautoriseret Revisionspartnerselskab A.P. MØLLER - MÆRSK A/S Esplanaden 50 DK-1098 Copenhagen K Tel. +45 33 63 33 63 www.maersk.com [email protected] Incorporated in Denmark under registration no. 22756214 42/42