Investor Presentaiton

5 A.P. Moller-Maersk Annual Report 2020 Directors' Report Highlights 2020 Highlights = Progressing on the strategy The transformation towards becoming the global integrator of container logistics accelerated in 2020 and all transformation metrics improved further. The metrics relate to growing the A.P. Moller-Maersk logistics business and improve earnings in infrastructure and logistics, while gen- erating free cash flow to ensure a strong balance sheet and to create value for the shareholders of A.P. Moller-Maersk. A.P. Moller-Maersk significantly improved the free cash flow and generated a cash return on invested capital of 16.6% (10.0%), based on stronger cash flow from operations, lower gross CAPEX and slightly lower invested capital. Infrastructure and logistics revenue (excl. freight forwarding) increased to USD 9.4bn (USD 9.2bn), mainly due to increased revenue in logistics from warehousing and distribution, due to acquisitions, and supply chain management despite headwinds from gateway terminals, given impacts from COVID-19. Logistics & Services EBITDA (excl. freight for- warding and restructuring costs) improved to USD 470m (USD 221m) as a result of margin optimisation in intermodal and warehousing and distribution, supported by the acquisition of Performance Team, a US-based warehousing and distribution company, as well as KGH Cus- toms Services, a leading specialist in trade and customs services management in Europe. Return on invested capital (ROIC), last twelve months, increased significantly to 9.4% (3.1%), as earnings were strong and invested capital decreased slightly. The underlying return on invested capital increased to 9.6% (3.2%). A.P. Moller-Maersk's progress towards becoming the global integrator of con- tainer logistics accelerated in 2020 9.4bn Infrastructure and Logistics revenue, USD (excl. freight forwarding) ос 宦 III New acquisitions Performance Team KGH Customs Services 470m Logistics & Services EBITDA, USD (excl. freight forwarding) 甲里 Significant improvement in profitability Revenue increased to USD 39.7bn (USD 38.9bn) and the continued focus on a tight cost con- trol, profitability and stronger rates led to a 44% increase in EBITDA to USD 8.2bn and a margin of 20.7% (14.7%). The strong improve- ment was mainly driven by strong cost savings in Ocean focusing on agile capacity deploy- ment, lower bunker costs and an increase in short-term freight rates. Logistics & Services improved EBITDA 110%, supported by margin optimisation in intermodal and increased prof- itability in warehousing and distribution facil- ities in North America, mainly driven by acqui- sitions. Gateway terminals reported an 8.3% improvement in EBITDA despite of a 3.6% decline in volume, as a result of lower costs. EBIT improved to USD 4.2bn (USD 1.7bn) reflecting an improvement in the margin to 10.5% (4.4%), while underlying profit was USD 3.0bn (USD 546m). Guidance for 2021 A.P. Moller-Maersk expects earnings before interest, tax, depreciation and amortisa- tion (EBITDA) in the range of USD 8.5-10.5bn, before restructuring and integration costs and free cash flow above USD 3.5bn. The outlook for 2021 is subject to uncertain- ties related to COVID-19, bunker fuel prices and freight rates given the uncertain macroe- conomic conditions. Free cash flow improved due to significantly higher earnings and reduced CAPEX Following the strong earnings development and a cash conversion ratio of 95% (104%), cash flow from operating activities was USD 7.8bn (USD 5.9bn). CAPEX was USD 1.3bn (USD 2.0m), and free cash flow was USD 4.6bn (USD 2.3bn). CAPEX discipline remains a key focus area, reflected in the accumulated CAPEX guidance of USD 4.5-5.5bn for 2021-2022. Digital momentum 2020 has been a year that has reinforced the customer interest for A.P. Moller - Maersk's digital offerings. Maersk Spot continued to gain significant traction during the year and the use of the Maersk App increased by 300%. Twill has increased weekly volumes which was 13 times larger compared to the same period the previous year and new dig- ital solutions such as Maersk Flow, NeoNav and the Transformation Management Sys- tem platform in the logistics business were launched to further enhance customer expe- rience and engagement.

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