Investor Presentaiton
61
A.P. Moller-Maersk Annual Report 2020
Directors' Report Governance
Shareholder information
=1
Financial calendar
23 March
Annual General Meeting
5 May
Interim Report Q1 2021
6 August
Interim Report Q2 2021
2 November
Interim Report Q3 2021
of the outlook, cash flow, capital expenditures for
organic use and merger and acquisition transac-
tions and investment grade rating.
The Board of Directors proposes an ordinary div-
idend to the shareholders of DKK 330 per share
of DKK 1,000 (DKK 150 per share of DKK 1,000).
The proposed dividend payment represents an
ordinary dividend yield of 2.4% (1.6%) and 35% of
the net underlying profit, based on the Maersk
B share's closing price of DKK 13,595 as of 30
December 2020. Payment is expected to take
place on 26 March 2021.
Capital structure
The capital structure ensures that
A.P. Møller-Mærsk A/S at all time has sufficient
financial flexibility to meet the strategic and
growth objectives and to maximise the return to
our shareholders.
In terms of capital allocation, a strict CAPEX dis-
cipline is applied with an accumulated CAPEX
guidance for 2021-2022 of USD 4.5-5.5bn.
Driving our long-term value creative strategy, we
apply the following principles for capital allocation.
We invest in maintenance and replacement in
all our businesses
. We invest in growing particularly our logistics
and services operations, both organically and
inorganically
We are committed to maintaining our invest-
ment grade rating
We target a dividend pay-out between 30-50%
of underlying net profit and aim at distributing
excess cash to shareholders primarily via share
buy-backs if the outlook permits.
Funding strategy
A.P. Moller-Maersk's focus is on long-term debt
in order to minimise the ongoing refinancing risk
and secure a solid capital structure over the busi-
ness cycle. Similarly, the aim is to avoid high con-
centrations of debt maturing within the same year.
We aim at having a diversified debt portfolio, based
on funding from debt capital markets, commercial
bank debt, export credit agencies, ship financing
institutions, and from multilateral agencies.
The A.P. Moller - Maersk share
Key figures
2020
2019
2018
2017
2016
Year-end share price (DKK, B share)¹
13,595
9,608
8,184
10,840
11,270
Share price range (DKK, B share)1
9,081
3,410
4,005
3,990
4,140
Market capitalisation at year-end (USD bn, A and B share)¹
42
28.0
25.3
35.4
32.2
Earnings per share (USD)
145
-4
152
-58
-93
Dividend per share (DKK, A and B share)²
330
150
150
150
150
Dividend yield (B share)
2.4%
1.6%
1.8%
1.4%
1.3%
Total dividends (USD m)
1,092
468
479
503
443
Share buy-back programme (DKK bn)³
5.4
5.3
3.2
Share buy-back programme (USD m)
806
791
475
1 For 2015-2018 data
has not been adjusted
for the demerger of
Maersk Drilling
2 Ordinary dividend in
proposed year
3 Actual payments on
a cash basis
The target is to have an average maturity of the
debt portfolio, excluding the impact of leases, of
at least four years, and that the total amount of
debt maturities within a calendar year should not
exceed USD 3bn, within the next three full calen-
dar years.
Share buy-back
In Q2 2019, the Board of Directors decided to exer-
cise its authority to buy back shares of up to DKK
10bn (around USD 1.5bn) over a period of up to 15
months.
The share buy-back programme was concluded on
24 July 2020 and A.P. Moller - Maersk has repur-
chased USD 1.5bn worth of shares, of which USD
98m was repurchased in Q3 2020. On 1 June 2020,
the cancellation of 156,977 A-shares and 627,938
B-shares was completed corresponding to 3.77%
of the total share capital in A.P. Moller - Maersk.
In November 2020, the Board of Directors decided
to initiate a new share buy-back programme of up
to DKK 10bn (around USD 1.6bn) and a maximum of
1.79 million shares to be acquired over a period of
up to 15 months.
The share buy-back will be carried out in several
phases. The first phase of the share buy-back
programme of DKK 3.3bn (around USD 500m) is
expected to run from 1 December 2020 until April
2021. The remaining part of the programme will
be initiated after approval by the Annual General
Meeting in March 2021 of the proposed prolonga-
tion of the authority to acquire own shares.
By the end of 2020, a total of 119,176 A shares and
505,281 B shares was owned by the company, cor-
responding to 3.12% of the share capital.View entire presentation