Post on 26-Dec-2015
APM Terminals Company overview
Presentation overview
• Maersk Group
• APM Terminals
• Commercial & Market Developments
• APM Terminals, a solid partner to grow with
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Maersk Group Presentation
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Ownership
•Annual revenue 56,090 USD millions (2010)
•Revenue over first 9 months up 9%, from 41,415 USD millions (2010) to 45,257 USD millions (2011)
•Some 70,000 shareholders
•Controlling stake held by A.P. Møller and Chastine Mc-Kinney Møller Foundation
A.P. Møller – related foundations Shareholders
A.P. Møller - Mærsk A/S
Container activities Terminal activities
Oil and gas activities Tankers, offshore and other shipping activities
Retail activity Other businesses
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Key financial figures
Profit and Loss - Year 2010 (USD million) 2010 2009
Revenue 56,090 48,580
Profit before depreciation, amortisation and impairment losses, etc. 15,867 9,193
Depreciation, amortisation and impairments losses 6,015 5,658
Gain on sale of non-current assets, net 674 159
Associated companies – share of profit/loss for the year 82 67
Financial items, net -936 -980
Profit before tax 9,672 2,781
Tax 4,655 3,805
Profit/loss for the year 5,018 -1,024
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Series1-500
0
500
1,000
1,500
2,000
2,500
-25
460
666
1,564
201
YTD 2010
YTD 2011
USD mill Q3 2011
Q3 2010
YTD 2011
YTD 2010
Profit for the period
371 1,671 3,104 4,194
Free Cash Flow
-2,684
1,677 -1,488 4,125
A.P. Moller – Maersk Group Result
Result by activity (USD mill)*
Container shipping
APM Terminals
Other Shipping
and offshore
Oil & Gas
Retail
*) Excluding gains, impairments and other special items
• Improved profits in all core businesses; except Maersk
Line due to declining rates
• Revenue up 9% both Q3/Q3 and YTD
• Profit declined 78% to USD 371m in Q3 and 26% to USD
3.1bn YTD
• ROIC was 4.8% in Q3 and 10.0% YTD
• Cash flow from operating activities USD 2.1 bn in Q3 and
USD 6.2bn YTD
• Net interest bearing debt increased to USD 14.5bn (USD
13.7bn)
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Our strengths
Size and global reach Fleet and other assets
Our culture 100 year heritage
Dedication to sustainability Drive to innovate7
Fleet and other assets
1,400 ships 60 container terminals
115 platforms and rigs 900 offices
1,100 retail activity + 3 million containers8
Heritage
Founded by Arnold Peter Møller in 1904
Mærsk Mc-Kinney Møller takes charge in 1965
Michael Pram Rasmussen appointed chairman of the board in 2003
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From Danish liner to global conglomerate
1994: Maersk Oil starts oil production in Qatar
1928: First tanker added to the fleet
1977: Mercantile (now: Damco) established
1904: Company established with one freighter
1964: Dansk Supermarked established
2001: APM Terminals established
1975: First container vessel added to the fleet
1972: Maersk Contractors (now: Maersk Drilling) established
1959: Lindø Shipyard opened
1967: Maersk Supply Service established
1972: Maersk Oil produces first oil in the North Sea
2008: New global oil strategy launched
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Sustainability
KEY ACHIEVEMENTS
Lost Time Injury reductions 2009-2010 7%
CO2 reductions 2009-2010 13%
Global Compact LEAD participant
Disaster Relief Partnership with the World Economic Forum and UN World Food Programme
KEY POLICIES AND IMPLEMENTATION PROGRAMMES
Global Labour Principles
Anti-corruption
Responsible Procurement
Sustainability in leadership KPIs, training and employee survey
The purpose of business will always be to make a profit, but in the future this profit-making will increasingly depend on how we turn challenges into opportunities, whether it is use of resources, impact on local communities of the safety of our operations.
We must integrate sustainability systematically into all our business processes and make it our competitive advantage whenever possible. The aim is full integration by the end of 2013.
Nils S. AndersenGroup CEO
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APM Terminals
APM Terminals is part of A.P. Moller–Maersk Group
A.P. Moller-Maersk Group Copenhagen, Denmark
• 2010 Revenue: USD 56.1b(Shipping, Energy, Retail)
• 108,000 employees, 130 countries.
APM Terminals The Hague, Netherlands
• 2010 Revenue: USD 4.2b
• 2010 container volume: 31.5m TEUs (Container Volumes weighted by equity share)
• 24,000 employees, 63 countries
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History: 53 years of innovation, growth and progress
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First dedicated A.P. Moller terminal facility opens, in the Port of New York.1958Containerization begins to change patterns of global trade and growth; the company opens its first dedicated container terminal at Berth 51, Port Newark, NJ USA.1970s
Ongoing evolution of containerization and economic efficiencies of international trading patterns lead to the rapid establishment of global port load centers and transhipment networks, requiring highly coordinated and specialized container terminal operations and equipment as vessels grow in size and capacity. International terminal investment expands with a stake in Algeciras, Spain in 1986.
1980s
Maersk Line acquisition of US-based Sea-Land Services enlarges scope of terminal operations globally.
1999APM Terminals is established as a separate container terminal operating company within Maersk Line.
2001
APM Terminals becomes an independent corporate entity, with headquarters in The Hague, Netherlands.
2004
Revenue of USD $2.5b, USD $111m in profit; APM Terminals reports earnings separately.2007Only true Global Terminal Network in port industry; Focus on emerging market terminal investment.
2008Named "Port Operator of the Year" by Lloyd's List.; Revenue of USD $3b; Global market share of 6.6%. 2009
Named “Port Operator of the Year” by Containerisation International Magazine.2006
Inland services unit transferred to the APM Terminals portfolio; combined revenue of USD $4.2b.2010
APM Terminals: The world’s only geographically balanced global port, terminal and inland services network
Port and container terminal development, management and operation, and associated inland services capabilities.
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68 inland services
companies in:
132 locations
47 countries
56 ports and
terminals:
33 countries
5 new projects
11 expansionsCustomer base:
60shipping lines and
leading importers and
exporters
Global market share
of container
throughput:
5.8%in 2010
Annual container
throughput:
31.5m TEUs (by equity-weighted
volume)
24,000 employees in:
63 countries
5 continents
Revenues over
USD$4b
Regional organization of existing terminals
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AmericasPortsmouth, Virginia USA
Asia–PacificShanghai, China
EuropeRotterdam, Netherlands
Africa–Middle East Dubai, United Arab Emirates
Closer access to customers and markets
Accelerated decision-making and execution
Corporate head officeThe Hague, Netherlands
Our port facilities: A global network serving all major markets
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Our inland services
• Over 100 locations in 47 countries
• Four main businesses areas: Cargo support, inland transportation/depots, equipment maintenance & repair, and container lifecycle management
• Achieve synergies with a broader scope of products and services:
- Greater value proposition to our customers
- Increased efficiencies
- Lower transportation costs
- More access to all global markets
- Seamless container handling to final destination
- More opportunity for growth
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Established in 2004 as separate, independent business unit
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APM Terminals’ Financial Results 2004-2011* (USD Million)
Segment Result
Segment Cash Flow
from Operations
Revenue
2004 2005 2006 2007 2008 2009 2010 2011*
53 92 142 160302
431 492 478
103230 299 275
679 760 845636
1,3131,504
2,068
2,520
3,126
4,024
4,251
3,417
(*Through 3rd Quarter 2011)
TEU
s (
Million
s)
(Equit
y S
hare
Weig
hte
d)
APM Terminals’ container throughput: 2004-2011*
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(* Through 3rd Quarter 2011).
2004 2005 2006 2007 2008 2009 2010 2011*
20.6
24.1
28.4
31.4
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30.9 31.5
24.8
20118.9% YTD
Global terminal operators
APM Terminals currently ranks 4th by equity market share
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(Source: Drewry Shipping Consultants, August 2011)
TEU millions(Equity weighted)
2010 2009 2008
Volumes Market Share
Volumes Market Share
Volumes Market Share
PSA 51.3 9.4% 45.0 9.5% 50.4 9.6%
Hutchison 36.0 6.6% 32.2 6.8% 34.4 6.6%
DP World 32.6 6.0% 31.5 6.7% 32.9 6.3%
APM Terminals 31.6 5.8% 31.1 6.6% 33.8 6.5%
Total top 4 operators
151.5 27.8% 139.8 29.6% 151.5 29.0
Other operators
394.5 72.2% 333.2 70.4% 372.5 71.0%
Total 546.0 100.0% 473.0 100.0% 524.0 100.0%
Redefining the industry it helped create
• Most geographically balanced portfolio of port and inland services of any terminal operator
• Customer-driven world-class service and operational innovation
• Strong financial stability of the parent A.P. Moller-Maersk Group
• As an independent operator, APM Terminals can serve all customers
• Comprehensive new terminal development and existing facility expansion worldwide
• Corporate commitment to industry leadership in:
- Health and Safety
- Security
- Environmental sustainability
- Local community outreach
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Lost-Time InjuryFrequency Rate:
25%To 4.35m man hours for 2010 over 2009 (including inland services)
Employee safety training:
AwarenessResulting in 26% increase in near-miss reports to 12,832
Reported injuries:
484 Continued decline for combined marine and inland services
CO2-Neutral Electric Power sourcing:
12%Compared with 4% in 2009
Targeted CO2reduction for 2011:
6% Emissions have decreased to 11.68 kg per TEU from 17.42 in base year 2007
CO2 output per TEU:
16.3%(direct efficiency improvement: 9%, the remainder by changes in scope of measurement and tracking )
Protecting our people and the environment: Safety and sustainability performance in 2010
APM Terminals was named winner of the Lloyd’s List 2011 Global Safety Award at the annual London Award Gala in September.
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The Five Values of APMM
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Constant Care – Take care of today, actively prepare for tomorrow
Uprightness – Our word is our bond
Humbleness – Listen, learn, share, give space to others
Our Employees – The right environment for the right people
Our Name – The sum of our values, passionately striving higher
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Commercial & Market Developments
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Future growth: Projected Global Container Market
Con
tain
er
volu
me
(TEU
Mill
ion
s)
Source: 1972-2010 data, Containerisation International; 2012-2022 Projections assume 5% CAGR
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New larger vessels are being deployed – raising the bar for port operators
World Container Fleet Development to 2014
Source: Alphaliner Monthly Monitor Oct 2011
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Crane evolution to service increasing vessel size
Top 20 containership lines ranked by fleet capacity
29 (Source: Alphaliner, September 2011)
TEUS
Maersk
Medite
rranea
n
CMA-CGM
COSCO
Hapag
-Lloyd
Everg
reen
APL
China Shipping
Hanjin
CSA
V
Mitsui-O
SKOOCL
Hamburg
Süd
NYKK-Li
ne
Yang M
ingZim
Hyundai
Pacific In
ternati
onal
United Arab
1,000,000
2,000,000
3,000,000
APMT CCOMartin Christiansen
Commercial Planning Peter Jorgensen
Middle East/Africa Dubai
Tico WieskeUASC / Emirates
EuropeThe Hague
Geert-Jan van der WielenHPL/ZIM/HSUD
Jakob ChristensenCMA CGM / MSC
Lars KochMaersk Line
Asia PacificShanghai
Keith ChanHanjin/EMC/ OOCL
Arthur Schoof APL/NYK/MOL/ K Line
David ChenEMC / HMM / Yang Ming
Lawrence YamCosco / CSCL
AmericasCharlotte
Jon GoldnerHorizon / CSAV
Key Client Management Coverage
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Value of the Key Client Manager program
• Global perspective of all major carriers
• True relationship with important customer stakeholders
• Articulation and maintenance of client strategies
• Customer has one point of contact for entire terminal portfolio
• Strong coordination between the Terminal, region and key clients
• Manages, coordinates and provides visibility to the key clients and internal organization
• KCM holds global market intelligence
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Project Implementation - Current projects
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Luanda
Cai MepMonrovia
ExpansionTakeoverGreenfield
Projects under implementation
SCCT Ph 2
MV II
Aqaba Ph 2
Santos
Vado
CTW
Callao
Moin
Poti
Pipavav
Göteborg
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Going forward ….
APM Terminals, a solid partner to grow with
Introduction & Contents
APM Terminals will realise your aims for growing SCT:
Specific Commercial, Operations & Civil plan with 1.2m TEU of volume and 1.6m TEU of capacity by 2016
Committed to solid partnership with GHAB
We can back up both these claims:
Solidity, track record & financial resources
Expertise, best practices & Human Resources
Strong shipping line relationships & network
We operate pure common user facilities
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Growing SCT
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We will share best practices from highly relevant terminals
SCT can join our Straddle Carrier Benchmarking Programme immediately
We have the means to implement our ideas on yard layout and container flows
Business Improvement workshops with our other European terminals
We have the required Human Resources close at hand
Our Implementation Team is ready to lead the integration of SCT
We have identified candidates for both Board and senior management roles
Our global & regional competence centres are both physically and culturally close
Civil Engineering
Container Terminal Design
Business Improvement: PEX (lean / Six Sigma) Operations benchmarking Technical Asset Management Procurement Training and development Employee Engagement
Customer Focus: Key Client Programme Customer Satisfaction
Survey
CSR:
Safety Environment
We have the required expertise:
APM Terminals is a World Class operator
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We have the commercial leverage SCT needs
Strong relationships with lines:
Hear ‘Voice of the customer’
Engage with key customers
Global key client programme:
More than 60 container lines
25 Global Customers at C-level
Diverse customer base
Complementary terminal network:
Critical mass for deep-sea calls
Pool market intelligence
Align berthing windows
Share vessel operation information
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Pure common user facility
We do not discriminate among container lines, as proven by:
Our diverse customer base. APM Terminals’ facilities serve a wide variety of clients
Increasing diversity, with other client volumes growing faster than Maersk Line
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Our Vision for SCT in 2025
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