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Investor Presentaiton

23 A.P. Moller-Maersk Annual Report 2020 Directors' Report Our business Strategy =1 6,000 FFE Weekly bookings for Ocean customers With the launch of Maersk Flow in Q3 of 2020, A.P. Moller-Maersk is now offering a digital supply chain management tool for mid-size customers to improve their supply chain performance through better visibility and control of their shippers, car- riers and shipments. This marked the entry into a customer segment A.P. Moller - Maersk has earlier struggled to serve well and which was extra chal- lenged by the supply chain disruptions caused by the COVID-19 pandemic. Maersk NeoNav, launched in December 2020, have significantly upgraded A.P. Moller - Maersk's capabilities in the supply chain planning and orchestration areas. With Maersk NeoNav, A.P. Moller-Maersk is among others able to con- nect customers' demand data with data on inven- tories and cargo flows and thus optimise these parts of the supply chain in near real time, leading to very significant value realisation. This innovative new product has been well received by customers with large, global supply chains and is currently in the implementation phase with two very large customers. 2 Seamless 13x More weekly volumes than the same period the previous year customer engagement Adding more products is fundamental towards becoming the global integrator of container logistics, but equally important is the ability to combine these products into tailored customer value propositions, and more effectively serve the cus- tomers' needs, notably through digital solutions. The COVID-19 situation accelerated A.P. Moller - Maersk's customers' need for digital engagement and ser- vices, and A.P. Moller-Maersk benefited from pre- vious investments into its technology stack, includ- ing maersk.com and other online offerings. Twill, a solution dedicated for small and medium- sized Ocean customers, ended the year with weekly bookings in excess of 6,000 FFE, which was more than 13 times the weekly volumes compared to the same period the previous year. In July, a new digital offering, Maersk Flow, was introduced for small and medium-sized customers and partners to take control of their supply chain from factory to market. In Octo- ber, a new cloud-based supply chain management platform was launched, aimed at larger customers with complex supply chains. The new platform will replace A.P. Moller-Maersk's existing offering and provide more integrated services and solutions, high levels of automation, self-service opportunity, as well as improved analytical functionalities. Twill TradeLens 120 Ports and terminals 50% Of the global Ocean market is covered by TradeLens Another important platform and enabler of digitisa- tion is TradeLens, the open and neutral supply chain platform underpinned by blockchain technology, which A.P. Moller - Maersk is developing jointly with IBM. In October, the world's second and third largest container carriers, MSC and CMA-CGM, announced that they were integrated onto TradeLens. This means that TradeLens now covers more than 50% of the global Ocean market. The other parts of the TradeLens ecosystem also grew in 2020 and now covers more than 120 ports/terminals, 24 customs authorities, and a growing inland presence. From an organisational perspective, A.P. Moller-Maersk simplified its organisation in Ocean and Logistics further by streamlining the frontline organisation and integrating and clos- ing down the Safmarine and Damco brands. Fur- thermore, A.P. Moller-Maersk initiated a re-or- ganisation of the headquarter technology and commercial functions into a number of plat- forms, each delivering dedicated business and customer outcomes. This reorganisation marked a further integration of digital technology into the A.P. Moller-Maersk organisation and enables faster and more agile development of new prod- ucts and services, as well as a quicker and more effective modernisation of legacy technology. Customer satisfaction was impacted by the disrup- tive effects of COVID-19, but is now again increas- ing and has remained strong with key customers throughout the year.
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