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Investor Presentaiton

45 A.P. Moller-Maersk Annual Report 2020 Directors' Report Performance 2020 Terminals & Towage Europe was impacted by a 3.8% reduction followed by Africa and Middle East with a 2.2% reduction in volume. In Latin America, volume decreased by 2.1%, while volume in Asia increased by 1.1%. Volume from the Ocean segment decreased by 1.2% (decreased by 5.4% like-for-like), and volume from external customers decreased by 4.9% (decreased by 7.2% like-for-like). Utilisation decreased to 70% (80%), as volume decreased by 3.6%, while capac- ity was higher due to Pipavav consolidation, in Vado driven by the ramp-up, and in Port Elizabeth, USA, due to a modernisation project in Q4 2019. On an equity-weighted basis, volume decreased by 3.2% (decreased by 3.0% like-for-like, adjusted for Vado and the exit from Douala, Cameroon), and uti- lisation was 78% (85%). Revenue per move increased by 1.3% to USD 275 (USD 272), positively impacted by terminal mix, and supported by higher storage income in Los Angeles, partially offset by negative rate of exchange impact in the African and Latin American regions. Adjusted for foreign exchange rate, volume mix effects, portfolio changes and one-offs, revenue per move increased by 2.5%. Cost per move decreased by 0.3% to USD 232 (USD 233), positively impacted by rate of exchange in the African and Latin American regions, partially offset by lower utilisation, terminal mix and higher cost in Apapa, Nigeria. Adjusted for foreign exchange rates, volume mix effects and portfolio changes, cost per move increased by 3.9%. The EBITDA margin in gateway terminals increased by 3.5 percentage points to 31.4% (27.8%), as higher revenue per move and SG&A cost reduc- tions as well as operational cost reductions Regional volume, Terminals' Key initiatives Million moves 2020 2019 Growth % North America 2.8 3.0 -8.7 Latin America 2.3 2.4 -2.1 Europe, Russia and the Baltics 2.4 2.5 -3.8 Asia 2.0 2.0 1.1 Africa and Middle East Total 1.9 2.0 -2.2 11.5 11.9 -3.6 1 Financially consolidated. 宦 Cost split % Terminals Labour Concession fee Service & Administration Depreciation Other operational cost 2020 48% 10% 13% 11% 18% 2019 50% 11% 14% 9% 16% Revenue and cost per move Financially consolidated, Terminals, USD Revenue ■ Cost 279 266 269 274 267 278 277 279 300 280 260 240 220 200 Note: Revenue per move includes terminal revenue, other income, government grants and excludes IFRIC 12 construction revenue. Cost per move includes cost (EBITDA less revenue less other income), depreciation and excludes internal man- agement fees and IFRIC 12 construction cost. 241 242 220 230 233 251 229 220 2019 2019 2019 2019 2020 2020 2020 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 A new automated gate infrastructure was launched in Port Elizabeth, USA, in Q2 New terminal in Vado, Italy, and Tema, Ghana, ramped up during 2020 Several cost management programmes carried out by the terminals Terminals signed an agreement with the Yokohama- Kawasaki International Port Corporation (YKIP) in Q2 for two additional modern berths, thereby becoming the only terminal in Japan capable of handling 20,000 TEU vessels. The berths were handed over to APM Terminals in July, and operations on the first berth began in July. The second berth is scheduled in 2021 and by then, the terminal capac- ity will have increased to 2.4m TEU from previously 1.1m TEU annually. The construction of the second container terminal in Abidjan, Ivory Coast, began following the handover from the Port Authority in March, and the expected go-live is in 2022. Once construction is completed, the new terminal will have an annual throughput capacity of 1.2m TEU and will be capable of handling 14,000 TEU vessels. APM Terminals Poti, Georgia, and Poti New Terminals Corporation have signed an agreement for the joint develop- ment of the dry and bulk cargo facility on the northern side of Poti Port, where an expansion project is being planned with construction expected to begin in 2021. APM Terminals launches a new facility in Kalundborg, Denmark in 2021.
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