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Investor Presentaiton

42 A.P. Moller-Maersk Annual Report 2020 Directors' Report Performance 2020 Logistics & Services 2020 2019 Logistics & Services =1 Revenue E 3 USD 6,963m USD 6,331m Financial and operational performance Revenue increased by 10% to USD 7.0bn (USD 6.3bn), driven by increasing revenue in ware- housing and distribution, including Performance Team, air freight forwarding and intermodal, off- set by decrease in sea freight forwarding. Gross profit grew to USD 1.6bn (USD 1.2bn) with a gross profit margin of 23% (20%), driven by the contin- ued focus on profitable business and margin opti- misation in intermodal and increased profitabil- ity in warehousing and distribution facilities in North America, specifically driven by Performance Team. Despite restructuring cost of USD 40m from the discontinuation of the Damco brand, EBITDA increased to USD 454m (USD 216m) with an EBITDA margin of 6.5% (3.4%), driven by the margins opti- misation and focus on profitability. Volumes in supply chain management increased by 7.5% to 77,023 kcbm (71,664 kcbm). Intermodal volumes decreased by 3.9% to 3,640k FFE (3,789k FFE) due to impact from COVID-19 in the first three quarters of the year, while volumes have recovered in Q4. Volumes in air freight forwarding declined by 13% to 138k tonnes (158k tonnes) and declined by 16% in sea freight forwarding to 401k TEU (475k TEU), impacted by COVID-19 and the discontinua- tion of the Damco brand. EBITDA USD 454m USD 216m CAPEX USD 109m USD 126m Logistics & Services highlights USD million Revenue Direct cost 2020 2019 6,963 6,331 5,328 5,091 Gross profit 1,635 1,240 Selling, General & Administration (SG&A) and other costs, etc. 1,181 1,024 Profit/loss before depreciation, amortisation and impairment losses, etc. (EBITDA) EBITDA margin 454 216 6.5% 3.4% Gross capital expenditure, excl. acquisitions and divestments (CAPEX) 109 126 Logistics & Services is the core growth element of A.P. Moller-Maersk's' integrator strategy: Logistics & Services seek to fulfil more of the customers' needs at every step of their supply chain through the integrated logistics offerings. Key offerings, all enabled by digital platforms, include truck and rail landside transportation, consolidation/deconsolidation and fulfilment warehousing with dis- tribution services, depot operations, customs brokerage services, air forwarding services, less than container load services, cargo insur- ance, supply chain management and 4PL products. The portfolio also includes vertical-specific solutions in cold chain logistics and E-commerce logistics as well as TradeLens, a blockchain platform. Operational and financial metrics EBIT conversion (EBIT/gross profit - %) Supply chain management volumes ('000 cbm) Intermodal volumes (KFFE) Sea freight volumes (TEU) Air freight volumes (tonne) 16.1% 77,023 1.5% 71,664 3,640 3,789 401,369 475,210 138,086 158,405
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