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Investor Presentaiton

103 A.P. Moller-Maersk Annual Report 2020 Financials Consolidated financial statements Notes index Amounts in USD million = Note 20 Cash flow specifications Table 20.1 Change in working capital Trade receivables Other working capital movements Exchange rate adjustment of working capital Total 2020 2019 -115 195 -88 291 -36 -10 -239 476 Purchase of intangible assets and property, plant and equipment Addition -2,929 -9,757 Of which right-of-use assets, etc. 1,575 7,989 Of which borrowing costs capitalised on assets 7 23 Change in payables to suppliers regarding purchase of assets Total 25 -1,322 -290 -2,035 Note 21 Acquisition/sale of subsidiaries and activities Table 21.1 Cash flow from acquisition Performance Team KGH Pipavav Total 2020 Fair value at time of acquisition Intangible assets Property, plant and equipment Financial assets Deferred tax assets Current assets Provisions 192 161 240 326 9 260 593 595 2 1 48 3 51 3 49 50 120 219 -2 -9. -3 Liabilities -345 -155 -125 -14 -625 Net assets acquired 222 60 540 822 Non-controlling interests -308 -308 A.P. Møller-Mærsk A/S' share 222 60 232 514 Goodwill 95 172 267 Gain on business acquisition -46 -46 Purchase price 317 232 186 735 Contingent consideration assumed -10 -44 Derecognition of associate company -182 Cash and bank balances assumed 2 -16 -92 -54 -182 -106 Cash flow used for acquisition of subsidiaries and activities 309 172 -88 393 Table 21.1 Acquisitions during the year 2020 Performance Team LLC On 1 April 2020, the Group acquired 100% of the shares in Performance Team LLC, a US-based warehousing and distribution company, to further strengthen its capabili- ties as an integrated container logistics company, offering end-to-end supply chain solutions to its customers. Taking control of Performance Team LLC has positioned A.P. Moller-Maersk among North America's leading ware- house and distribution providers with 56 warehouses for customers and accelerates the company's regional logis- tics and services model. The total enterprise value of USD 622m consisted of a total purchase price of USD 317m on a cash and debt-free basis and acquired lease liabilities of around USD 305m. The purchase price mainly relates to fixed assets and customer list. The lease liabilities have been adjusted in accordance with IFRS 16 from the last communication. The goodwill of USD 95m is attributable to workforce and commercial/operational synergies between Performance Team and A.P. Moller - Maersk and is deductible for tax purposes. From the acquisition date to 31 December 2020, Perfor- mance Team LLC contributed with a revenue of USD 398m and a minor contribution to net profit. If the acquisition had occurred on 1 January 2020, the im- pact on the Group's revenue would have been USD 512m. The net profit contributed to the Group would have been minor. The accounting for the business combination is consid- ered provisional at 31 December 2020 due to certain contingencies, indemnities etc.
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