Maersk Investor Presentation Deck slide image

Maersk Investor Presentation Deck

Key statements COVID-19 update and response The lockdowns have led to significantly lower demand, affecting all parts of the business in A.P. Moller - Maersk. Cost initiatives are in place across the business to mitigate the negative effects from the declining demand Main cost levers to mitigate declining demand include: More than 90 sailings cancelled in Q1 2020, especially on East-West, and deployed capacity decreased 3.5%. In Q2 more than 130 blanked sailings are expected with continued and consequent capacity adaption in the coming quarters to match supply and expected demand. SG&A spending closely scrutinised with a number of initiatives started in Q1 combined with ongoing prioritisations. IT spend run rate being reduced. Initiatives taken to improve net working capital, which benefits from lower bunker fuel prices from Q2. Reducing CAPEX in 2020, most of it phasing into 2021, to protect cash flow in 2020 and support credit rating. Strong balance sheet and liquidity profile, with liquidity buffer of USD 9.2bn and LTM EBITDA to net debt of 2.0x supportive in weathering the crisis. ● ● ● ● ● ● 7 ● ● ● ● After Q1 we have taken steps to further increase our liquidity by additional flexible loan arrangements in excess of USD 1.0bn. Pro-active management of capacity, capex and costs will continue in order to adapt to the length and depth of the crisis and subsequent recovery. Q1 2020 interim report MAERSK
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