Investor Presentaiton
22
A.P. Moller-Maersk Annual Report 2020
Directors' Report
Our business
Strategy
Strategy
2020 marked the fourth year of A.P. Moller-Maersk's
transformation from a conglomerate to the global integrator
of container logistics.
M
=1
1
Creating a portfolio of
end-to-end products/services
An important element of the global integrator
strategy is to strengthen the logistics product port-
folio, notably on the landside by improving and
innovating existing products, as well as acquiring
capabilities and product offerings through acquisi-
tions. In 2020, A.P. Moller - Maersk strengthened
its product offering to customers along the end-
to-end value chain.
pillars in the vision
of becoming the global
integrator of container
logistics
1 Creating a portfolio of end-to-end products/services
2 Seamless customer engagement
3 Superior delivery network end-to-end
Despite the subversive effects of COVID-19 on the lives and business of
A.P. Moller - Maersk employees and customers alike, the disciplined
and consistent strategy execution continued and delivered tangible
results through the year. Financial performance improved markedly,
and previous year's efforts to improve customer service in general and
digitisation in particular paid off. Through outstanding efforts from its
front line personnel, not least from its seafarers, A.P. Moller - Maersk
took pride in being able to sustain its global operation and keep global
supply chains moving throughout the pandemic.
On 1 April, A.P. Moller - Maersk closed the acqui-
sition of Performance Team, a US-based ware-
housing and distribution company, which, com-
bined with the 2019 acquisition of Vandegrift, a
US-based customs services company, has meant a
significant strengthening of the land-based logis-
tics services to US customers. On 2 September,
A.P. Moller-Maersk closed the acquisition of KGH
Customs Services, a Sweden-based pan-European
customs services provider, hereby enhancing the
end-to-end offering to customers with European
imports and exports. These acquisitions were
part of a general upgrade and improvement of
A.P. Moller-Maersk's Logistics & Services busi-
ness, which through the year grew EBITDA to USD
470m or more than twice the size of 2019.
The Ocean product offering was also strength-
ened through 2020 as the Maersk Spot product,
launched in Q2 2019, was rolled out globally and
with its superior offering of transparent price and
equipment guarantee, it saw strong uptake with
customers. By the end of 2020, the Spot prod-
uct made up 51% of the total loaded short-term,
volumes under Maersk brand (excl. Sealand and
Hamburg Süd), and is well under way to becom-
ing A.P. Moller-Maersk's primary offering in the
short-term market.View entire presentation