Interim Report 3rd Quarter 2011 - Maersk2015/10/12 · Interim Report 3rd Quarter 2011 A.P. Moller...

A.P. Møller - Mærsk A/S

Interim Report3rd Quarter 2011

Registration no. 22756214

Interim Report 3rd Quarter 2011

A.P. Moller - Maersk Group Page

Highlights for the Group during the 3rd quarter 2011 3

Highlights for the Group during the first 9 months 2011 4

Outlook for 2011 5

Financial highlights 6

Business areas 8

Segment overview 9

Container activities 11

Oil and gas activities 16

Terminal activities 20

Tankers, offshore and other shipping activities 23

Retail activities 29

Other businesses 32

Unallocated activities 35

Directors’ statement 37

Interim consolidated financial statements

Condensed income statement 38

Statement of comprehensive income 39

Condensed balance sheet 40

Condensed cash flow statement 42

Statement of changes in equity 43

Notes 45

Forward-looking statements

This interim report contains forward-looking statements. Such

statements are subject to risks and uncertainties as various factors,

many of which are beyond A.P. Møller - Mærsk A/S’ control, may

cause actual development and results to differ materially from

expectations contained in the interim report.

Governing text

The interim report has been translated from Danish. The Danish text

shall govern for all purposes and prevail in case of any discrepancy

with the English version.

A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 3 /54

Interim Report 3rd QuarterA.P. Moller - Maersk Group

Highlights for the Group during the 3rd quarter 2011 (figures for Q3 2010 in parenthesis)

2011 2010 Change 2011 2010 Change

Revenue

Profit before depreciation, amortisation and impairment losses, etc.

Depreciation, amortisation and impairment losses

Gain on sale of non-current assets and businesses, net

Profit before financial items

Profit before tax

Profit for the period

Cash flow from operating activities

Cash flow used for capital expenditure

Return on invested capital after tax (ROIC), annualised

DKK million USD million 3rd quarter 3rd quarter

80,794

17,835

6,866

12

11,004

9,459

1,920

11,018

-25,279

4.7%

15,330

3,389

1,302

5

2,096

1,803

371

2,091

-4,775

4.8%

81,249

24,438

8,268

555

16,967

15,869

9,621

17,217

-7,570

15.7%

14,056

4,232

1,429

92

2,938

2,751

1,671

2,993

-1,316

15.7%

-1%

-27%

-17%

-98%

-35%

-40%

-80%

-36%

234%

9%

-20%

-9%

-95%

-29%

-34%

-78%

-30%

263%

The Group’s profit was USD 371m (USD 1,671m) and re-

turn on invested capital (ROIC) was 4.8% (15.7%). Cash

flow from operating activities was USD 2.1bn (USD 3.0bn).

The majority of the Group's businesses performed well

and delivered good returns. The Group's container and

tanker activities continued to face difficult markets due

to excess supply of tonnage and a fragmented competitive

landscape. With an equity ratio of 52% (50%), net interest-

bearing debt of USD 14.5bn (USD 13.7bn) and committed

undrawn credit facilities of USD 9.3bn (USD 9.6bn), the

Group is well prepared and determined to execute on its

long term growth aspirations and seize market opportu-

nities within its core businesses despite current turmoil

in the financial markets.

The Group's Container activities transported 2.1m FFE

(1.8m FFE), 16% higher than in Q3 2010. However, this

was not enough to offset the impact from declining freight

rates leading to a loss for the period of USD 297m (profit

of USD 1,028m). The unsatisfactory market conditions

are a challenge for the liner industry, however Maersk

Line aims to achieve an EBIT-margin 5% point above

peers. Maersk Line launched a new service concept on

the Asia-Europe trade, ’Daily Maersk’, offering daily de-

partures, fixed transportation time and market leading

reliability.

The Group’s Oil and gas activities continue to invest in

building and developing its resource base, and had another

strong earnings quarter with a profit of USD 341m (USD

430m). The profit was negatively affected by higher ex-

ploration costs of USD 336m (USD 166m) and positively

by a higher average oil price of USD 113 per barrel (USD

77 per barrel).

The Chissonga discovery offshore Angola has been de-

clared commercially viable to the local authorities and

appraisal drilling is ongoing to assess the development


options. Maersk Oil has a 20% share in the Avaldsnes

discovery in Norway, where the operator raised the

estimates of recoverable resources in September 2011,

increasing Maersk Oil’s share from 20-80 million barrels

to 160-360 million barrels of oil equivalents.

The Group's terminal activities continue to show stable

earnings growth and delivered a profit of USD 174m (USD

140m) and a ROIC of 13.5% (11.9%). Container throughput

increased by 10% compared to Q3 2010 on a like-for-like

basis. New concession agreements were secured in Moin,

Costa Rica and Callao, Peru. Furthermore, APM Terminals

won the concession for the Skandia Container Terminal

in Gothenburg, bringing the number of new and expan-

sion terminal projects to 15.

Maersk Tankers continued to face difficult market condi-

tions and posted a loss of USD 37m (USD 11m excluding

impairment loss of USD 107m). The overcapacity in the

crude and product market is expected to continue whereas

the gas market is positively affected by limited new supply.

Maersk Drilling had another strong quarter with a result

of USD 138m (USD 126m), positively affected by high

uptime and a continued increasing demand for efficient

drilling rigs. All rigs were employed during Q3 and are

fully booked for the rest of the year.

Maersk FPSOs and Maersk LNG had full vessel utilisation

during Q3 and posted a profit of USD 59m (loss of USD 5m

excluding USD 67m divestment gain). In October 2011, an

agreement was signed to sell Maersk LNG for USD 1.4bn

on a cash and debt free basis. A potential divestment gain

will not have significant impact on the Group's profit.

Maersk Supply Service benefited from improved spot

rates in the North Sea and a high activity level in Brazil

and delivered a profit of USD 68m (USD 45m).

Svitzer experienced mixed market developments and

slightly improved the profit to USD 34m (USD 33m).

The retail activities continued to be negatively affected by

customers’ migration towards lower margin goods and

made a profit of DKK 208m (DKK 450m).

Other businesses delivered a profit of DKK 64m (DKK

274m).

Highlights for the Group during the first 9 months 2011 (figures for the first nine months of 2010 in parenthesis)

2011 2010 Change 2011 2010 Change

Revenue

Profit before depreciation, amortisation and impairment losses, etc.




Profit before tax





DKK million USD million 9 months 9 months

240,023

61,489

20,935

4,513

45,605

41,928

16,464

32,690

-40,585

9.5%

45,257

11,594

3,947

851

8,599

7,906

3,104

6,164

-7,652

10.0%

234,782

68,152

24,746

3,646

47,486

42,891

23,777

41,748

-18,361

14.5%

41,415

12,022

4,366

643

8,376

7,566

4,194

7,364

-3,239

13.6%

2%

-10%

-15%

24%

-4%

-2%

-31%

-22%

121%

9%

-4%

-10%

32%

3%

4%

-26%

-16%

136%

Revenue increased by 9% to USD 45.3bn (USD 41.4bn),

primarily due to higher oil prices and container volumes.

Profit was 26% lower at USD 3.1bn (USD 4.2bn), negatively

affected by lower freight rates, higher bunker costs and

lower share of the oil production, partly offset by higher

oil price and the divestment gain from the sale of Netto

Foodstores Limited, UK of USD 0.7bn. The Group’s ROIC

was 10.0% (13.6%).


Cash flow from operating activities was USD 6.2bn (USD

7.4bn), while cash flow used for capital expenditure was

USD 7.7bn (USD 3.2bn). Net interest-bearing debt in-

creased with USD 2.1bn to USD 14.5bn (USD 12.4bn at

31 December 2010).

Total equity was USD 36.5bn (USD 34.4bn at 31 December

2010), positively affected by the profit of USD 3.1bn.

Dividend paid was USD 0.9bn (USD 0.3bn).

Outlook for 2011

The Group still expects a result lower than the 2010

result, as stated in the interim report in August 2011,

including the USD 0.7bn gain from the divestment of

Netto Foodstores Limited, UK. The Group expects a profit

for 2011 in the range of USD 3.1-3.5bn including divest-

ment gains.

The Group’s Container activities now expect a negative

result for the full year as a consequence of lower rates on

especially the Asia-Europe trade.

Oil and gas activities expect a profit at the same level

as for 2010, based on an oil price of USD 105 per barrel,

higher level of exploration activities and a share of the

oil and gas production of around 120 million barrels

which is 13% below 2010.

The result for Terminal activities, Tankers, offshore and

other shipping activities as well as Other businesses is

expected to be above 2010 excluding divestment gains.

For Retail activities the result, excluding divestment gains,

is now expected to be below 2010.

Cash flow from operating activities is expected to develop

in line with the result, while cash flow used for capital

expenditure is expected to be significantly higher than

in 2010.

The outlook for 2011 is subject to uncertainty, not least

due to developments in the global economy, oil price and

global trade conditions.

Copenhagen, 9 November 2011

Contacts: Group CEO Nils S. Andersen – tel. +45 3363 1912

Group CFO Trond Westlie – tel. +45 3363 3106

Annual Report is expected to be announced on 27 February 2012.


Financial highlights

Amounts in DKK million

3rd quarter 9 months Full year

2011 2010 2011 2010 2010

Revenue

Profit before depreciation, amortisation

and impairment losses, etc.



Associated companies – share of profit/loss for the period


Financial items, net

Profit before tax

Tax

Profit for the period – continuing operations

Profit/loss for the period – discontinued operations


A.P. Møller - Mærsk A/S’ share

Total assets

Total equity



Investment in property, plant and equipment


Return on equity after tax, annualised

Equity ratio

Earnings per share (EPS), DKK

Diluted earnings per share, DKK

Cash flow from operating activities per share, DKK

Share price (B share), end of period, DKK

Total market capitalisation, end of period

The condensed interim consolidated financial statements on pages 38-53 are presented in DKK. To further illustrate the development of

the businesses, key figures for the A.P. Moller - Maersk Group and segment figures are also presented in USD. For the segments where the

primary functional currency is USD, the comments on these segments refer to the USD figures. The comments on the other segments refer

to DKK figures alone.

The interim financial statements have not been subject to audit or review. The interim financial statements are prepared in accordance with

IAS 34. The applied accounting policies are unchanged compared to the Annual Report 2010, except for the changes described in Note 31 of

the 2010 consolidated financial statements, to which reference is made. The changes have no effect on the interim financial statements.

240,023

61,489

20,935

4,513

538

45,605

-3,677

41,928

25,500

16,428

36

16,464

14,256

387,080

200,973

32,690

-40,585

30,500

9.5%

11.1%

51.9%

3,266

3,264

7,488

32,920

140,425

80,794

17,835

6,866

12

23

11,004

-1,545

9,459

7,574

1,885

35

1,920

1,643

387,080

200,973

11,018

-25,279

12,906

4.7%

3.9%

51.9%

376

376

2,524

32,920

140,425

234,782

68,152

24,746

3,646

434

47,486

-4,595

42,891

19,107

23,784

-7

23,777

22,591

368,455

184,391

41,748

-18,361

19,528

14.5%

18.5%

50.0%

5,176

5,173

9,564

45,700

196,732

81,249

24,438

8,268

555

242

16,967

-1,098

15,869

6,246

9,623

-2

9,621

9,196

368,455

184,391

17,217

-7,570

7,026

15.7%

20.7%

50.0%

2,107

2,106

3,944

45,700

196,732

315,396

89,218

33,822

3,792

461

59,649

-5,263

54,386

26,174

28,212

3

28,215

26,455

374,723

192,962

56,972

-26,078

26,683

12.7%

16.0%

51.5%

6,061

6,058

13,052

50,510

217,464


Financial highlights

Amounts in USD million


2011 2010 2011 2010 2010

Revenue








Profit before tax

Tax





Total assets

Total equity



Investment in property, plant and equipment


Return on equity after tax, annualised

Equity ratio

Earnings per share (EPS), USD

Diluted earnings per share, USD

Cash flow from operating activities per share, USD

Share price (B share), end of period, USD

Total market capitalisation, end of period

45,257

11,594

3,947

851

101

8,599

-693

7,906

4,809

3,097

7

3,104

2,688

70,237

36,467

6,164

-7,652

5,751

10.0%

11.7%

51.9%

616

615

1,412

5,973

25,480

15,330

3,389

1,302

5

4

2,096

-293

1,803

1,439

364

7

371

317

70,237

36,467

2,091

-4,775

2,444

4.8%

4.0%

51.9%

73

73

479

5,973

25,480

41,415

12,022

4,366

643

77

8,376

-810

7,566

3,371

4,195

-1

4,194

3,985

67,481

33,771

7,364

-3,239

3,445

13.6%

17.4%

50.0%

913

913

1,687

8,370

36,031

14,056

4,232

1,429

92

43

2,938

-187

2,751

1,080

1,671

-

1,671

1,598

67,481

33,771

2,993

-1,316

1,217

15.7%

20.7%

50.0%

366

366

686

8,370

36,031

56,090

15,867

6,015

674

82

10,608

-936

9,672

4,655

5,017

1

5,018

4,705

66,756

34,376

10,132

-4,638

4,745

12.2%

15.4%

51.5%

1,078

1,077

2,321

8,998

38,741


Business areasThe A.P. Moller - Maersk Group comprises approximately 1,100 companies. The Group's invested capital at 30 September 2011 was USD 51bn (USD 47bn) and annualised return on invested capital after tax (ROIC) was 10.0% (13.6%).

Container activities

Oil and gas activities

Retail activities

Other businesses

Terminal activities

Tankers, offshore and other shipping activities

Maersk Line, Global container services Safmarine and MCC

Damco Logistic and forwarding activities

Maersk Oil Oil and gas production and exploration activities

The Dansk 68% ownership of Dansk Supermarked Group Supermarked A/S Super-

markets (Føtex and Bilka), department stores (F. Salling) and discount supermarkets (Netto), etc. (subsidiary)

The Odense Steel Shipyard in Denmark Shipyard Group

Danske Bank 20% ownership of Danske Bank A/S (associated company)

Maersk Container Production of dry and Industry reefer containers

Other Star Air, Danbor Service, etc.

APM Terminals Container terminal activities, inland transportation, repair of containers and container depots, etc.

Maersk Tankers Tanker shipping of crude oil, oil products and gas

Maersk Drilling Offshore drilling activities and operation of land rigs through 50% ownership of Egyptian Drilling Company

Maersk FPSOs Floating oil and gas production units

Maersk LNG Natural gas transportation

Maersk Supply Service Supply vessel activities with anchor handling and platform supply vessels, etc.

Svitzer Towing and salvage activities, etc.

Ro/Ro and 39% ownership ofrelated activities Höegh Autoliners and 31%

ownership of DFDS A/S (associated companies)

ROIC %annualised3rd quarter

2011 2010

Invested capital USD million

30 September 2011

ROIC % DKK million

ROIC %annualised

9 months 2011 2010

ROIC %

0.4

24.8

39.0

42.5

12.9

-2.1

12.2

-2.4

10.6

6.3

4.6

17.1

24.3

37.0

13.0

23.0

45.3

37.1

12.7

11.9

-13.7

13.3

8.4

9.1

7.6

-19.9

5.1

-7.2

37.4

28.3

5.9

13.5

-4.1

13.6

8.9

14.5

6.8

5.6

1.0

18,378

307

5,692

14,435

5,136

3,767

4,164

2,679

1,878

1,995

688

26,322 3.7 4.2

17.9

-4.0

10.9

-4.8

11.1

8.1

-12.8

Segment overview

Maersk Container Industry Qingdao China

Finished containers are stacked outside Maersk Container Industry’s production facilities in Qingdao, China. Since 2007 the entire production has taken place in China, where Maersk Container Industry employs more than 5,000 people.


For the 3rd quarter DKK million USD million

2011 2010 2011 2010

Revenue



Terminal activities


Retail activities

Other businesses

Total reportable segments

Unallocated activities (Maersk Oil Trading)

Eliminations

Total

Profit/loss for the period



Terminal activities


Retail activities

Other businesses


Unallocated activities

Eliminations

Discontinued operations, after elimination

Total

For the first 9 months DKK million USD million

2011 2010 2011 2010

Revenue



Terminal activities


Retail activities

Other businesses



Eliminations

Total




Terminal activities


Retail activities

Other businesses



Eliminations


Total

Segment overview

6,922

2,320

1,049

1,341

2,551

434

14,617

119

-680

14,056

1,028

430

140

109

77

48

1,832

-172

11

-

1,671

7,230

3,012

1,205

1,541

2,504

437

15,929

254

-853

15,330

-297

341

174

276

42

13

549

-183

-2

7

371

39,969

13,441

6,067

7,760

14,753

2,498

84,488

687

-3,926

81,249

5,904

2,487

826

627

450

274

10,568

-1,010

65

-2

9,621

38,119

15,863

6,353

8,121

13,193

2,303

83,952

1,343

-4,501

80,794

-1,583

1,785

922

1,464

208

64

2,860

-963

-12

35

1,920

19,497

7,356

3,142

4,239

7,629

1,041

42,904

333

-1,822

41,415

2,254

1,339

668

280

240

120

4,901

-744

38

-1

4,194

20,474

9,595

3,417

4,337

7,699

1,297

46,819

706

-2,268

45,257

96

1,553

478

526

898

125

3,676

-539

-40

7

3,104

110,531

41,701

17,812

24,024

43,249

5,904

243,221

1,891

-10,330

234,782

12,779

7,591

3,790

1,590

1,362

678

27,790

-4,220

214

-7

23,777

108,587

50,890

18,121

22,998

40,832

6,877

248,305

3,747

-12,029

240,023

508

8,236

2,538

2,793

4,763

661

19,499

-2,858

-213

36

16,464


Margrethe MaerskCai Mep Vietnam

Containers are being loaded onto Margrethe Maersk at APM Terminals' new facilities in Cai Mep, Vietnam. Margrethe Maersk was build at Odense Steel Shipyard in 2008 and has a capacity of 9,000 TEU – enough to carry more than 700,000 washing machines.



Highlights 2011 2010 Change 2011 2010 Change

Revenue


and impairment losses, etc. (EBITDA)




Profit/loss before financial items (EBIT)


Profit/loss before tax

Tax





Transported volumes (FFE in million)

Average rate (USD per FFE)

Average fuel price (USD per tonne)



Revenue






Profit before financial items (EBIT)


Profit before tax

Tax




Non-current assets

Current assets

Non-interest bearing liabilities

Invested capital, net


Transported volumes (FFE in million)

Average rate (USD per FFE)

Average fuel price (USD per tonne)


(figures for Q3 2010 in parenthesis)

38,119

987

2,180

15

-1

-1,179

-170

-1,349

234

-1,583

-20

-6,633

-6.5%

7,230

190

414

3

-

-221

-32

-253

44

-297

-1

-1,255

-6.5%

2.1

2,860

656

39,969

8,838

2,211

20

-

6,647

-219

6,428

524

5,904

9,111

-2,201

23.1%

6,922

1,538

383

3

-

1,158

-38

1,120

92

1,028

1,595

-386

23.3%

1.8

3,251

443

-5%

-89%

-1%

-25%

n/a

n/a

-22%

n/a

-55%

n/a

n/a

201%

4%

-88%

8%

0%

n/a

n/a

-16%

n/a

-52%

n/a

n/a

225%

16%

-12%

48%

108,587

6,777

6,255

641

-12

1,151

59

1,210

702

508

4,905

-12,742

107,451

22,711

27,189

102,973

0.7%

20,474

1,278

1,180

121

-2

217

11

228

132

96

925

-2,403

19,497

4,121

4,933

18,685

0.7%

5.9

2,886

606

110,531

20,711

6,767

139

-6

14,077

-259

13,818

1,039

12,779

15,778

-3,594

99,580

22,389

26,210

95,759

18.3%

19,497

3,653

1,193

24

-1

2,483

-46

2,437

183

2,254

2,783

-634

18,238

4,100

4,800

17,538

17.2%

5.4

3,075

454

-2%

-67%

-8%

361%

100%

-92%

n/a

-91%

-32%

-96%

-69%

255%

8%

1%

4%

8%

5%

-65%

-1%

404%

100%

-91%

n/a

-91%

-28%

-96%

-67%

279%

7%

1%

3%

7%

9%

-6%

33%


Highlights for Container activities

• TheGrouptransportedatotalvolumeof2.1mFFE(1.8mFFE),anincreaseof16%compared to Q3 2010

• Averagefreightrates,includingbunkersurcharges,were12%lowerthaninQ32010,and6%lower in the first nine months compared to the same period in 2010

• EarningspertransportedFFE(EBITperFFE),excludinggainonsaleofshipsandcontainers, were a loss of USD 124 (a profit of USD 616)

• LosswasUSD297m(profitofUSD1,028m)• CashflowfromoperatingactivitieswasnegativebyUSD1m(positivebyUSD1,595m)• ROICwasnegativeby6.5%(positiveby23.3%)

THE MARKET FOR CONTAINER ACTIVITIES

The development in demand for container transporta-

tion was mixed during Q3. Volumes stagnated in the US

and euro zone as a consequence of the negative develop-

ment in the economies, whereas the positive volume

development continued in growth markets. For the first

nine months, volumes were overall 7% higher than same

period last year (Drewry).

The positive demand growth has not been sufficient to

balance the supply of new capacity, which mainly has

been added in form of larger vessels deployed on the

Asia-Europe trade. The ordinary peak season has not

materialised this year, and the main East-West trades

have been characterised by a fierce competition.

During the first nine months, 224 container vessels with a

combined capacity of 1.6m TEU (Twenty Foot Equivalent

Unit) were ordered (Alphaliner) and the global order book

was 4.5m TEU, equivalent to 30% of the current fleet. As

a result of the tough market conditions, ordering of new

vessels came to a complete stop in Q3.

Overall, freight rates continued the negative development

during Q3 at unsustainable levels.

Despite increasing capacity and declining rates, no signs

of any significant lay-up activity have been seen this year.

A few strings were redrawn from the Asia-Europe and

the Transpacific trades, but still insufficient to balance

the trades.

Container shipping

Highlights 2011 2010 2011 2010

Revenue

Profit before depreciation, amortisation and impairment losses, etc. (EBITDA)









Container shipping USD million USD million

3rd quarter 9 months

18,742

1,190

1,164

121

-2

145

50

881

-2,301

0.4%

6,588

150

410

3

-

-257

-322

-53

-1,161

-7.2%

17,820

3,571

1,178

24

-1

2,416

2,214

2,754

-614

17.1%

6,424

1,495

377

3

-

1,121

1,003

1,562

-380

23.0%


In Q3 the Group transported a total volume of 2.1m FFE

(1.8m FFE), an increase of 16% compared to Q3 2010 and

6% higher than Q2 2011. In the first nine months the

total volume was 5.9m FFE, 9% higher than the same

period last year.

In Q3 average freight rates, including bunker surcharges,

were 12% lower than in Q3 2010 and 6% lower for the

first nine months compared to same period last year.

The volumes between Asia and Europe increased by

24%. Volumes on the head haul routes from Asia in-

creased by 27% and volumes on the back haul routes

from Europe increased by 18% compared to Q3 2010.

Despite the positive volume development on the Asia-

Europe trade, Maersk Line, as the rest of the industry,

was not able to implement the normal peak season

surcharges due to excess capacity.

On the Latin America and Africa trades volumes in-

creased by 18% and 27%, respectively, compared to Q3

2010. Volumes for the Transpacific, Transatlantic,

Oceania and Intra-Asia trades were also higher than

in Q3 2010.


Q3 vs. Q3 2011 vs. 2010

Rates Volumes Rates Volumes

Asia – Europe -26% 24% -17% 14%

Africa -2% 27% -2% 18%

Transpacific -16% 2% -3% -4%

Latin America -13% 18% -7% 14%

Transatlantic 1% 1% 3% -1%

Oceania 4% 0% 9% -5%

Intra-Asia 5% 3% 7% 4%

Total -12% 16% -6% 9%

During Q3, the Group took delivery of seven new container

vessels (40,200 TEU) and one new multi purpose vessel

(17,900 deadweight tonnage).

At the end of Q3, the fleet consisted of 252 own container

vessels and 387 chartered container vessels with a total

capacity of 2.5m TEU. In addition, the Group owns two

and has chartered 12 multi purpose vessels. Two con-

tainer vessels (14,800 TEU) and one multi purpose vessel

are expected to be delivered during Q4 and additional 42

container vessels (491,000 TEU) are on order for delivery

in 2012-2015 and three multi purpose vessels in Q1 2012.

The average bunker price for the Group’s container ship-

ping activities was 4% higher in Q3 compared to Q2 and

33% higher for the first nine months compared to same

period last year. The average BAF ratio (% of the change

in bunker costs that are transferred to the customers)

declined to 80% from 86% in the first nine months. As

a consequence of the pressure on freight rates it has be-

come more difficult to pass on the increasing bunker cost

to the customers.

Maersk Line is continuously seeking new ways of op-

timising bunker consumption. One initiative is super

slow steaming, which is primarily used on the backhaul

trades and brings down the service speed to as low as 10

knots, allowing for significant bunker and cost savings.

The strong focus on controlling cost continues. However,

the total unit costs per FFE increased by 1% compared to

Q2, while unit costs, excluding bunker costs, decreased by

1%. For the first nine months the increase was 11% and

5%, respectively, negatively affected by higher oil prices,

an unfavorable development in the USD exchange rate

and higher time charter costs as well as lower capacity

utilisation. Maersk Line is committed and has the scale

to operate at lower cost than its peer group and aims to

achieve an EBIT-margin 5% point above peers.

In September 2011, Maersk Line announced the new

service concept "Daily Maersk" introducing daily depar-

tures from four main ports in Asia to three main ports

in Europe. The service is unique and provides an oppor-

tunity for customers to reduce their supply chain costs,

including inventories and thereby improve their working

capital. Furthermore, shipping with Daily Maersk reduces

CO� emissions by 13% per transported container com-

pared to the industry average on the Asia-Europe trade.

The lost time incidents frequency (LTIF) for the last four

quarters was 1.34 per million working hours.

The loss was USD 322m (profit of USD 1,003m). ROIC was

negative by 7.2% (positive by 23.0%).

Earnings per transported FFE (EBIT), excluding gain on

sale of ships and containers, were a loss of USD 124 per

FFE (profit of USD 616 per FFE).

Cash flow from operating activities was negative by

USD 53m (positive by USD 1,562m), while cash flow used

for capital expenditure was USD 1,161m (USD 380m).


Damco

Highlights 2011 2010 2011 2010

Revenue








Damco USD million USD million


2,155

88

16

72

46

44

-102

24.8%

783

40

4

36

25

52

-94

37.4%

2,036

82

15

67

40

29

-20

24.3%

619

43

6

37

25

33

-6

45.3%

Damco continued to focus on growth and investments

in selected industry segments and emerging markets.

Airfreight services were strengthened considerably with

the acquisition of China based airfreight forwarder NTS

International Transport Services which was completed

in August 2011.

Volumes were lower than anticipated on the back of a

soft market. Damco's ocean volume grew well ahead of

the market at 19% and airfreight volume was up 42%,

primarily driven by the NTS acquisition. The supply

chain management volumes were 4% lower than the

same period last year.

EBIT was USD 36m (USD 37m) and profit was USD 25m

(USD 25m). ROIC was 37.4% (45.3%).


Maersk Oil Dunga field Kazakhstan

Dromedaries are watching the oil pumps operating on the Dunga field which covers 281 square kilometres in western Kazakhstan. Maersk Oil has been active in the country since 2000 and is currently working on a significant development of the Dunga field, including some 200 wells, with planned production start in 2012.




Revenue

Profit before exploration costs

Exploration costs








Profit before tax

Tax





Average share of oil and gas production

(thousand barrels of oil equivalent per day)

Average crude oil price (Brent) (USD per barrel)



Revenue

Profit before exploration costs

Exploration costs








Profit before tax

Tax




Non-current assets

Current assets




Average share of oil and gas production

(thousand barrels of oil equivalent per day)

Average crude oil price (Brent) (USD per barrel)



15,863

13,681

1,777

11,904

2,868

-3

-5

9,028

-84

8,944

7,159

1,785

6,522

-13,567

27.6%

3,012

2,598

336

2,262

543

-1

-1

1,717

-17

1,700

1,359

341

1,239

-2,560

28.3%

312

113

13,441

11,840

948

10,892

3,424

3

-

7,471

-251

7,220

4,733

2,487

5,686

-1,263

37.2%

2,320

2,045

166

1,879

593

1

-

1,287

-44

1,243

813

430

979

-210

37.1%

361

77

18%

16%

87%

9%

-16%

n/a

n/a

21%

-67%

24%

51%

-28%

15%

974%

30%

27%

102%

20%

-8%

n/a

n/a

33%

-61%

37%

67%

-21%

27%

1,119%

-14%

48%

50,890

44,479

3,664

40,815

8,504

-57

-5

32,249

-370

31,879

23,643

8,236

21,091

-16,795

51,777

8,668

29,075

31,370

37.2%

9,595

8,387

691

7,696

1,603

-11

-1

6,081

-70

6,011

4,458

1,553

3,977

-3,167

9,395

1,573

5,276

5,692

39.0%

336

112

41,701

36,542

1,960

34,582

10,062

4

-

24,524

-217

24,307

16,716

7,591

19,353

-8,107

43,606

6,188

25,699

24,095

39.4%

7,356

6,446

346

6,100

1,775

1

-

4,326

-38

4,288

2,949

1,339

3,414

-1,430

7,987

1,133

4,707

4,413

37.0%

377

77

22%

22%

87%

18%

-15%

n/a

n/a

31%

71%

31%

41%

8%

9%

107%

19%

40%

13%

30%

30%

30%

100%

26%

-10%

n/a

n/a

41%

84%

40%

51%

16%

16%

121%

18%

39%

12%

29%

-11%

45%


Highlights for Oil and gas activities

• Shareofoilandgasproductionwas10%lowercomparedtoQ2.Forthefirstninemonthsthe production was 11% lower than in the same period of 2010, mainly due to lower share of production in Qatar and lower production in Denmark and the UK

• AverageoilpricewasatUSD113perbarrel,3%lowerthaninQ2• ExplorationcostsincreasedtoUSD336m(USD166m)• ProfitwasUSD341m(USD430m)• CashflowfromoperatingactivitieswasUSD1.2bn(USD1.0bn)• ROICwas28.3%(37.1%)

The profit was USD 341m (USD 430m), positively affected

by higher oil prices but offset by higher exploration costs

as well as lower share of production in Qatar and lower pro-

duction in Denmark and the UK. ROIC was 28.3% (37.1%).

PRODUCTION AND DEVELOPMENT

With an average daily share of the oil and gas production

of 312,000 barrels of oil equivalent per day (361,000 bar-

rels per day), the Group’s share for the first nine months

was on average 336,000 barrels of oil equivalent per day.

The decline for the first nine months was 11% compared

to the same period of 2010, due to a lower share of produc-

tion in Qatar and lower production in Denmark and the UK,

partly offset by new production in Brazil.

Safety continued to be on top of the Maersk Oil agenda

and the incident frequency continued to drop. In Maersk

Oil, LTIF for the last four quarters declined by 18% from

1.1 to 0.9 per million working hours. Efforts will continue

to further improve safety performance.

In Qatar, two new wells were put into production, increas-

ing the total number of completed wells under the Al

Shaheen field development to 167 out of the 169 planned

wells. While the evaluation of the field potential is still

ongoing in collaboration with Qatar Petroleum, the field

production level in the range of 300,000 barrels of oil per

day is expected to continue. The Group’s average share

of the oil production was 159,000 barrels per day (170,000

barrels per day), and on average 157,000 barrels per day

in the first nine months, 7% lower than in the same period

of 2010. The decline was primarily due to higher oil prices

resulting in a lower share to recover investments and costs.

In the Danish part of the North Sea, drilling activities

are ongoing or planned at the Dan, Tyra and Valdemar

fields to partly offset the declining production. With

an average share of 71,000 barrels of oil per day (75,000

barrels per day), the Group’s share for the first nine

months averaged 76,000 barrels per day, 7% lower than

in the same period of 2010. In Q3, the Group’s share of

the gas production was 470 million m� (580 million m�),

affected by the normal lower gas demand during the

summer period. The total share of the gas production in

the first nine months was 1.7 billion m� or on average

39,000 barrels of oil equivalent per day, 22% lower than

in the same period of 2010. The lower oil and gas produc-

tion compared to 2010 was caused by decreasing pro-

duction from the mature fields, maintenance activities

and high gas demand in Q1 2010.

In the UK, repair of Maersk Oil’s FPSO at Gryphon is on-

going to reinstate production from the area mid 2012 after

damage during a storm in February 2011. The Group’s

share of production was on average 13,000 barrels of oil

per day (50,000 barrels per day), negatively impacted

by the Gryphon area shut down and the planned main-

tenance shut down on Dumbarton. In total, the produc-

tion share was 29,000 barrels of oil per day in the first

nine months which was 42% less than in the same

period of 2010, mainly due to the Gryphon shut down.

In Algeria, development of the El Merk fields is ongoing

with an expected additional production share of 10,000

barrels of oil per day from 2012. At 25,000 barrels of oil

per day (23,000 barrels per day), the Group’s share of the

production for the first nine months was at the same

level as in 2010.

In Kazakhstan, the Group’s share of the oil production

was at a level of 3,000 barrels of oil per day (4,000 barrels

per day), resulting in a production share of 3,000 barrels

of oil per day for the first nine months. Work continues for

the significant development of the Dunga field, includ-

ing some 200 wells, with start of production of the first


wells planned for 2012. The share of the production is

expected to reach a level of 15,000 barrels of oil per day.

The previously announced sale of the Saigak field was

approved by the authorities.

In Brazil, the Group’s share of the production was 8,000

barrels of oil per day from the Polvo field in a newly

acquired licence.

EXPLORATION AND BUSINESS DEVELOPMENT

In Q3, drilling of four exploration and appraisal wells was

completed. Overall, Maersk Oil completed eight wells in

2011 and is involved in drilling of further 16 exploration

and appraisal wells, either in progress or committed to

start in 2011 in Angola, Brazil, Kazakhstan, Norway,

Qatar, the UK and the US.

In Angola, the Chissonga discovery has been declared

commercially viable to the local authorities and appraisal

drilling is ongoing to assess the development options.

In Block 23, an exploration well is ongoing and a well is

planned in Block 8 for 2012.

In Brazil, the USD 2.4bn acquisition of shares in three off-

shore licences was completed in July 2011, and drilling

is ongoing in licences BM-C-32/30 to appraise the Itaipu

and Wahoo discoveries. The Itaipu 2 well started in Q3

and the Wahoo 4 well is planned to start in Q4. In ad-

dition, preparations are ongoing to start drilling of two

exploration wells in Q4 in the off-shore licence BM-C-34.

In Iraq, Maersk Oil has acquired a 20% shareholding in

HKN Energy Ltd, which comprises a 75% interest in the

Sarsang Production Sharing Contract in the Kurdistan

Region. HKN drilled an oil discovery well in 2011 which is

expected to be brought into production in 2012.

In Norway, appraisal drilling is ongoing at the Avaldsnes

discovery in the Licence PL501, where the operator

announced a significant increase in the recoverable re-

sources late September 2011, increasing Maersk Oil’s

share from 20-80 million barrels to 160-360 million barrels

of oil equivalents with production potentially to start

in 2017-2018. In addition, preparation to start drilling

of the Zidane appraisal well and the T-Rex exploration

well in Q4 is ongoing. Bids have been submitted for the

Norwegian exploration bid round with results expected

early 2012.

In the UK, submission of a development plan for the

Maersk Oil operated Flyndre/Cawdor discovery areas

in the North Sea is planned for the end of this year.

Appraisal activities are ongoing to determine the extent

of the Culzean, Jackdaw and Courageous discoveries

and further three wells are either ongoing or planned to

commence drilling later this year.

In the US Gulf of Mexico, drilling of the Buckskin ap-

praisal well is ongoing. Drilling of the Oceanographer

exploration well has been postponed until 2012 due to

low rig availability following the moratorium. The Jack

deep-water development project in the Gulf of Mexico

continues to progress towards oil production in 2014,

initially with Maersk Oil's share of production of around

8,000 barrels of oil per day.

Exploration costs were USD 336m (USD 166m) and USD

691m in the first nine months, almost a doubling compared

to the same period of 2010. This reflects Maersk Oil's high

exploration activity, not least the drilling activities in

Angola, Norway and the UK as well as the predevelopment

activities in Angola and the UK, all in accordance with

Maersk Oil’s strategic target of increasing the reserves base.

Terminal activities

APM Terminals Rotterdam The Netherlands

APM Terminals Rotterdam is one of the largest and most significant European terminals in APM Terminals’ portfolio. Its operation includes 13 post panamax cranes on 100 hectares of land and 1,600 metres of quay wall with an annual capacity of 3.4 million TEU.




Revenue








Profit before tax

Tax





Containers handled

(measured in million TEU and weighted with ownership share)



Revenue








Profit before tax

Tax




Non-current assets

Current assets




Containers handled

(measured in million TEU and weighted with ownership share)

Terminal activities


6,353

1,476

486

57

80

1,127

11

1,138

216

922

1,343

-857

13.4%

1,205

280

93

11

16

214

1

215

41

174

255

-163

13.5%

8.6

6,067

1,381

548

158

47

1,038

8

1,046

220

826

1,330

-2,216

12.2%

1,049

239

94

23

9

177

1

178

38

140

230

-393

11.9%

7.8

5%

7%

-11%

-64%

70%

9%

38%

9%

-2%

12%

1%

-61%

15%

17%

-1%

-52%

78%

21%

0%

21%

8%

24%

11%

-59%

11%

18,121

4,204

1,454

95

194

3,039

13

3,052

514

2,538

3,373

-3,067

29,700

4,943

6,337

28,306

12.3%

3,417

793

275

18

37

573

2

575

97

478

636

-578

5,389

897

1,150

5,136

12.9%

24.8

17,812

3,730

1,942

2,559

100

4,447

6

4,453

663

3,790

3,483

-867

27,532

4,770

6,226

26,076

19.1%

3,142

658

343

451

18

784

1

785

117

668

614

-153

5,042

874

1,140

4,776

17.9%

23.5

2%

13%

-25%

-96%

94%

-32%

117%

-31%

-22%

-33%

-3%

254%

8%

4%

2%

9%

9%

21%

-20%

-96%

106%

-27%

100%

-27%

-17%

-28%

4%

278%

7%

3%

1%

8%

5%


Highlights for Terminal activities

• Numberofcontainershandledwas11%higherthaninQ32010and10%higheronalike-for-likebasis• Volumesfromthirdpartycustomerswereunchangedat46%inQ3aswellasforthefirstninemonths• ProfitwasUSD174m(USD140m)• CashflowfromoperatingactivitieswasUSD255m(USD230m)• ROICwas13.5%(11.9%)

The global container terminal market measured in TEU

increased by 7% compared to Q3 2010 and 7% in the

first nine months compared to the same period last year

(Drewry).

APM Terminals has been growing faster than the global

market. The number of containers handled by APM

Terminals (measured in crane lifts weighted with APM

Terminals’ ownership interest) increased by 11% com-

pared to Q3 2010 and 10% on a like-for-like basis. For the

first nine months the increase was 5% compared to the

same period of 2010 and 8% on a like-for-like basis. The

growth is a result of higher utilisation and positive effect

from active portfolio management.

All regions have contributed positively to the increase,

with strong markets in Africa, China and South East Asia

generating a like-for-like expansion in terminal volumes

of 14% compared to the first nine months of 2010.

During Q3, APM Terminals signed a concession agreement

with the Costa Rican Government to build and operate

the new Moin container terminal on the Caribbean coast,

and APM Terminals also took over operations in Port of

Callao, Peru.

In October 2011, APM Terminals won the concession to

operate the Skandia Container Terminal in Gothenburg

– Sweden’s largest and the 8th busiest North European

container terminal with a throughput of 880,000 TEU

in 2010. The concession includes USD 115m in infra-

structure improvements over the first five years. The

concession is subject to approval from the Swedish

Competition Authority. The transfer of management

and operations for the terminal is anticipated to take

place in Q1 2012.

Safety is on top of APM Terminals' agenda, and the LTIF

was 3.91 per million working hours for the last four quar-

ters. APM Terminals has continued focus on eliminating

accidents and advancing the safety management culture

and systems.

The profit was USD 174m (USD 140m) and USD 478m for

the first nine months. ROIC was 13.5% (11.9%) and reached

12.9% for the first nine months.

The substantial improvement in margins and competi-

tiveness was largely due to consistent implementation

of improved operational methods, enhanced efficiency

in partnership with customers, portfolio optimisation

and restructuring of the inland services.


Mærsk Deliverer West Africa Offshore Liberia

The semi-submersible rig Mærsk Deliverer is working in deep waters offshore West Africa. The rig is designed for year-round operations in water depths down to 3,000 metres and with a drilling depth of 9,140 metres. The rig can accommodate 180 people.




Revenue








Profit before tax

Tax







Revenue








Profit before tax

Tax




Non-current assets

Current assets






8,121

2,829

1,156

15

24

1,712

-20

1,692

228

1,464

1,762

-3,104

7.3%

1,541

539

221

4

4

326

-5

321

45

276

335

-587

7.4%

7,760

2,571

1,787

162

16

962

-13

949

322

627

2,354

-1,312

3.0%

1,341

447

311

28

3

167

-1

166

57

109

408

-227

3.0%

5%

10%

-35%

-91%

50%

78%

54%

78%

-29%

107%

-25%

137%

15%

21%

-29%

-86%

33%

95%

400%

93%

-21%

153%

-18%

159%

22,998

7,568

4,234

79

56

3,469

-4

3,465

672

2,793

5,604

-7,657

76,899

16,236

9,615

83,520

4.6%

4,337

1,426

798

15

11

654

-

654

128

526

1,057

-1,443

13,954

2,946

1,744

15,156

4.8%

24,024

6,858

5,120

612

-181

2,169

-8

2,161

571

1,590

5,805

-4,409

79,602

8,686

9,511

78,777

2.8%

4,239

1,211

906

109

-32

382

-1

381

101

280

1,023

-778

14,578

1,591

1,742

14,427

2.6%

-4%

10%

-17%

-87%

n/a

60%

-50%

60%

18%

76%

-3%

74%

-3%

87%

1%

6%

2%

18%

-12%

-86%

n/a

71%

n/a

72%

27%

88%

3%

85%

-4%

85%

0%

5%


Highlights for Tankers, offshore and other shipping activities

• RevenuewasatUSD1.5bn(USD1.3bn)• Continueddifficulttankermarkets• IncreaseddemandinoffshoreandhighuptimeforMaerskDrilling• ProfitwasUSD276m(USD109m)• CashflowfromoperatingactivitieswasUSD335m(USD408m)• ROICwas7.4%(3.0%)

Maersk Tankers

Highlights 2011 2010 2011 2010

Revenue





Loss before financial items (EBIT)

Loss for the period




Maersk Tankers USD million USD million


960

93

164

6

-

-65

-56

37

-517

-2.1%

324

20

60

-

-

-40

-37

22

-220

-4.1%

884

136

270

28

1

-105

-103

98

-130

-4.0%

305

45

163

-

1

-117

-118

25

-86

-13.7%

The unsatisfactory market conditions for Maersk Tankers

continued in Q3.

For crude and product tankers the average earnings were

lower than Q2 and much lower than historical average,

while earnings for the gas segment were higher than Q2

and higher than the historical average.

Both the crude and product tanker markets were driven

by excess supply of tonnage and reduced refinery intake,

resulting in earnings below operating costs. The gas market

was driven by increased exports from the Middle East

resulting in strong earnings in this segment.

The tanker markets are affected by overcapacity, which

is likely to continue as the delivery of new vessels for the

crude and product segments continue and scrapping

activity remains low.

Maersk Tankers took delivery of one VLCC, one handy-

size product tanker and one handysize gas carrier, while

one handysize product tanker and three small product

tankers were purchased in the second-hand market.

Delivery of one handysize product tanker, one handy-

size gas carrier and one VLGC (50% owned) is planned

for Q4 from the newbuilding programme along with two

large second-hand product tankers. Six newbuildings

are expected to be delivered in 2012.

Maersk Tanker’s LTIF for the last four quarters was 1.05

per million working hours.

The loss was USD 37m (loss of USD 118m, negatively im-

pacted by impairment of USD 107m). ROIC was negative

by 4.1% (negative by 13.7%).

The contract coverage for the rest of 2011 is 23.7% and

12.5% for 2012.


Maersk Drilling

Highlights 2011 2010 2011 2010

Revenue








Maersk Drilling USD million USD million


1,372

628

178

450

361

555

-538

12.2%

484

239

68

171

138

162

-242

13.6%

1,209

550

149

401

301

404

-322

10.9%

457

218

56

162

126

146

-57

13.3%

The high oil price has resulted in increased exploration

and production activity from the oil companies, and de-

mand for rigs has remained high with an upward trend.

In particular, demand for modern high specification rigs

continues to strengthen due to operators increasing re-

quirements for safe and efficient equipment.

The Norwegian jack-up market remained solid with full

utilisation, and recent large discoveries in Norway confirm

the positive outlook for the segment. Maersk Drilling cur-

rently has six jack-up rigs in Norway, of which some are

on long-term contracts until 2017. In addition, Maersk

Drilling has two ultra harsh environment jack-up rigs

under construction for this market, and discussions with

operators for drilling campaigns starting in 2014 are

ongoing.

Large discoveries impact the strong market fundamen-

tals positively in the ultra deepwater rig market. The

market has been characterised by close to full utilisation

and day rates have increased during Q3, establishing a

new day rate level around USD 500,000. The increasing

demand was mainly seen from growth regions such as

West Africa and Brazil. The US Gulf of Mexico remains

adversely affected by the Macondo incident. However,

activity was increasing and the ultra deepwater market is

expected to remain firm, also in the longer term, as both

development and exploration activity in the emerging

markets will drive solid future demand. Maersk Drilling

has three ultra deepwater semi-submersible rigs in opera-

tion and four ultra deepwater drillships under construction

with expected deliveries in 2013 and 2014.

During Q3, all of Maersk Drilling’s 26 drilling rigs were em-

ployed, except for a few rigs entering yards for planned

surveys and upgrades.

With the constant focus on employment safety, Maersk

Drilling has experienced a continuous improvement

for the last four quarters with a LTIF of 0.49 per million

working hours.

Maersk Drilling has 99% contract coverage for the re-

mainder of 2011, and more than 75% of the available

capacity for 2012 is already contracted.

The profit of USD 138m (USD 126m) was positively im-

pacted by full employment of the semi-submersible rigs

Maersk Explorer and Mærsk Deliverer. ROIC was 13.6%

(13.3%).


Maersk FPSOs and Maersk LNG

Highlights 2011 2010 2011 2010

Revenue










Maersk FPSOs and Maersk LNG USD million USD million


438

211

256

-1

2

-44

-49

90

-29

-2.4%

170

88

25

-1

1

63

59

12

1

8.9%

308

48

252

67

-1

-138

-109

151

-238

-4.8%

100

30

29

67

-1

67

62

60

-48

8.4%

The activity in the FPSO market has picked up with the

numbers of new contract awards reaching the high level

experienced during the 2005-2007 peak. The rates in the

LNG market increased to a five year high level.

All of the Group’s six FPSOs were fully employed in Q3

and production uptime has improved.

Maersk FPSOs' LTIF was 0.97 and Maersk LNG's LTIF

was 1.47 per million working hours for the last four

quarters.

The profit was USD 59m (loss of USD 5m excluding USD

67m divestment gain) and ROIC was 8.9% (8.4%). The im-

provement was driven by higher LNG rates and contract

coverage as well as the FPSO Maersk Peregrino achieving

full day rate since May 2011. Further, Maersk FPSOs

received a performance bonus of USD 19m while the profit

was negatively impacted by operational losses and extra-

ordinary costs on Maersk Ngujima-Yin.

Maersk LNG was divested for USD 1.4bn on a cash and debt

free basis in October 2011 with closing of the transaction

expected in Q4. A potential divestment gain will not have

significant impact on the Group's profit.

Maersk Supply Service

Highlights 2011 2010 2011 2010

Revenue









Maersk Supply Service USD million USD million


614

273

110

3

166

150

201

-40

10.6%

226

106

36

3

73

68

95

-15

14.5%

590

296

102

-

194

162

251

-119

11.1%

191

89

35

-

54

45

126

-9

9.1%


The market for anchor handling and supply vessels was

positively affected by seasonal project work in the North

Sea and continued high activity level in Brazil. The rate

level in the North Sea spot market increased with rate

peaks at a level not seen for three years. Other markets

were not affected to the same degree and remained at

the same level as in Q2 due to a more balanced supply

and demand.

Maersk Supply Service had a suitable balance of spot

and contract coverage to benefit from this seasonal spike

in the market. Contract coverage for the remainder of

2011 is 80%, and 36% for 2012.

Maersk Supply Service’s LTIF was 1.02 per million work-

ing hours for the last four quarters.

In line with the fleet renewal program, the anchor handling

vessel Maersk Rider (BHP 14,400) was sold during Q3.

The profit was USD 68m (USD 45m), primarily affected

by seasonal project work in the North Sea and increased

rate level in the spot market. ROIC was 14.5% (9.1%).

Svitzer

Highlights 2011 2010 2011 2010

Revenue










Svitzer USD million USD million


715

205

93

3

-

115

91

146

-180

6.3%

244

75

32

1

-

44

34

55

-53

6.8%

629

170

83

20

1

108

106

120

-60

8.1%

228

64

27

2

-

39

33

65

-32

7.6%

The harbour towage market had overall moderate

growth, but weakened in Europe. Within terminal

towage new tenders are seen as a result of growing

global demand for energy infrastructure. Emergency

response and rescue demand was firm whereas ocean

towage and salvage markets remained weak.

Svitzer’s activity within harbour towage was largely

unchanged compared to Q3 last year and slightly lower

compared to Q2 2011. The terminal towage activities

increased with the start-up of the Angola LNG contract.

The emergency response and rescue units saw almost

full vessel utilisation during Q3 and higher rates. Salvage

held on to its market share.

Svitzer’s LTIF for the last four quarters was 0.7 per million

working hours.

The profit was USD 34m (USD 33m) and ROIC was 6.8%

(7.6%).

Ro/Ro and related activities

Ro/Ro and related activities comprise the Group’s owner-

ship interests in DFDS A/S and Höegh Autoliners, etc.

The profit was USD 9m (loss of USD 36m) and ROIC was

5.6% (negative by 19.9%).

Retail activities

Netto Berlin Germany

A truck is about to deliver goods to the nearby Netto stores from the storage facility in Berlin, Germany. The first Netto store outside Denmark opened in Germany in 1990 and with the current 333 stores, Germany is the largest market outside of Denmark.




Revenue







Profit before tax

Tax







Revenue







Profit before tax

Tax




Non-current assets

Current assets




Number of stores

Retail activities


13,193

599

123

-79

397

-68

329

121

208

538

-856

5.9%

2,504

113

22

-13

78

-14

64

22

42

102

-158

6.3%

14,753

865

235

-2

628

-3

625

175

450

-113

-582

12.7%

2,551

149

39

-1

109

-1

108

31

77

-23

-100

12.6%

-11%

-31%

-48%

n/a

-37%

n/a

-47%

-31%

-54%

n/a

47%

-2%

-24%

-44%

n/a

-28%

n/a

-41%

-29%

-45%

n/a

58%

40,832

1,922

346

3,697

5,273

-73

5,200

437

4,763

1,649

4,230

16,906

4,703

7,174

14,435

42.5%

7,699

362

65

697

994

-14

980

82

898

311

798

3,068

853

1,302

2,619

44.5%

1,262

43,249

2,440

680

19

1,779

50

1,829

467

1,362

1,795

-1,697

15,198

7,066

7,555

14,709

13.0%

7,629

430

119

3

314

9

323

83

240

317

-299

2,784

1,294

1,384

2,694

12.2%

1,390

-6%

-21%

-49%

n/a

196%

n/a

184%

-6%

250%

-8%

n/a

11%

-33%

-5%

-2%

1%

-16%

-45%

n/a

217%

n/a

203%

-1%

274%

-2%

n/a

10%

-34%

-6%

-3%

-9%


Highlights for Retail activities

• Revenuewas11%loweratDKK13.2bn(DKK14.8bn),duetothedivestmentofNettoFoodstoresLimited, UK

• ProfitwasDKK208m(DKK450m)• 17newstoreswereopenedduringQ3• ROICwas5.9%(12.7%)

THE RETAIL MARKET

The retail markets in Denmark, Sweden and Poland con-

tinued to experience stagnating sales in Q3, while the

sales in Germany were slightly increasing.

In Denmark the discount chains continued to benefit

from more cost conscious consumers and have taken

further market shares from the ordinary supermarkets

during Q3.

THE DANSK SUPERMARKED GROUP

Revenue for the Dansk Supermarked Group was at

DKK 13,193m (DKK 14,753m), 11% lower than Q3 2010,

due to the divestment of the retail activities in the UK.

Adjusted for this, the revenue decreased by 0.1% and

measured in local currency an increase of 0.5%.

EBITDA was 31% lower than in Q3 2010 due to customer

migration towards lower margin goods and the effect

from the divestment of Netto Foodstores Limited, UK.

Excluding the effect from the divestment of Netto Food-

stores Limited, UK, EBITDA was 24% lower. EBITDA was

negatively affected by start-up costs of a new warehouse.

Cash flow from operating activities was DKK 538m

(negative by DKK 113m).

The profit was DKK 208m (DKK 450m), negatively im-

pacted by lower EBITDA and lower financial income

due to the development in the financial markets and

exchange rates. ROIC was 5.9% (12.7%).

During Q3, 17 new stores were opened.

Other businesses

Maersk Container Industry Qingdao China

An employee is applying the finishing touches on the production of a reefer container to Maersk Line. Maersk Container Industry is market leading within production of reefer containers and has developed a container with a controlled atmosphere, allowing transport of bananas, etc. from the Philippines to Europe.




Revenue








Profit before tax

Tax







Revenue








Profit before tax

Tax




Non-current assets

Current assets




Other businesses


2,303

228

56

-

-75

97

12

109

45

64

156

-25

1.0%

437

43

10

-

-14

19

2

21

8

13

29

-7

1.0%

2,498

133

53

43

179

302

-9

293

19

274

-101

161

5.1%

434

23

9

8

31

53

-2

51

3

48

-18

27

5.1%

-8%

71%

6%

-100%

n/a

-68%

n/a

-63%

137%

-77%

n/a

n/a

1%

87%

11%

-100%

n/a

-64%

n/a

-59%

167%

-73%

n/a

n/a

6,877

593

139

14

305

773

-9

764

103

661

-31

-4,053

26,505

2,207

2,390

26,322

3.7%

1,297

112

26

3

57

146

-2

144

19

125

-6

-764

4,809

401

434

4,776

3.9%

5,904

172

172

163

521

684

-

684

6

678

215

518

22,346

1,974

2,646

21,674

4.2%

1,041

30

30

29

92

121

-

121

1

120

38

91

4,092

362

484

3,970

3.9%

16%

245%

-19%

-91%

-41%

13%

n/a

12%

n/a

-3%

n/a

n/a

19%

12%

-10%

21%

25%

273%

-13%

-90%

-38%

21%

n/a

19%

n/a

4%

n/a

n/a

18%

11%

-10%

20%


Highlights for Other businesses

• RevenuewasDKK2.3bn(DKK2.5bn)• ProfitwasDKK64m(DKK274m)• ShareoflossfromDanskeBankA/SwasDKK77m(profitofDKK178m)• ROICwas1.0%(5.1%)

The Odense Steel Shipyard Group delivered one Ro/Ro

vessel during Q3. Remaining orders consist of one Ro/Ro

vessel and one frigate with expected delivery around

year-end 2011. Phasing out of the shipbuilding activities

is ongoing according to plan.

The profit was DKK 10m (loss of DKK 27m), positively

affected by a reimbursement of energy taxes from

2002-2010.

Maersk Container Industry experienced a continued

strong reefer market with increased profitability. Pre-

vious years’ under-investment in reefers combined with

the strong cargo conversion from conventional reefer

bulk vessels to reefer containers drove the market.

Maersk Container Industry's patented integrated reefer

concept has strengthened its position in the reefer market

further.

The profit was USD 18m (USD 16m) and ROIC was 34.6%

(31.6%).

The Group’s share of result in Danske Bank A/S for Q3

was a loss of DKK 77m (profit of DKK 178m).


Edith Maersk Rotterdam The Netherlands

Edith Maersk is approaching Rotterdam on time after leaving Shanghai four weeks earlier. After offloading she will continue her voyage towards Aarhus, Denmark and Gdansk, Poland, before heading back to Asia. Edith Maersk and her sister vessels are the world’s largest container vessels with a capacity of 15,500 TEU.


Unallocated activities comprise revenue and costs, etc.

as well as financial items that are not attributed to re-

portable segments, including particularly interest and

exchange rate adjustments on borrowings. Furthermore,

activity in the form of purchase of bunker and lubricat-

ing oil on behalf of companies in the Group, as well as oil

hedging activities that are not allocated to segments,

are included on a net basis in unallocated activities.

The unallocated financial items were negative by USD

232m (negative by USD 99m). This includes negative ex-

change rates adjustments of USD 4m (positive by USD

125m). For the first nine months the unallocated finan-

cial items were negative by USD 621m (negative by USD

732m for the first nine months 2010) and the net interest

expenses including hedging and fair value adjustments

improved by USD 109m, primarily due to lower average net

interest-bearing debt.



Revenue

Costs including depreciation and amortisation, etc.

Valueadjustmentofoilpricehedges



Loss before tax

Tax

Loss for the period




Revenue

Costs including depreciation and amortisation, etc.

Valueadjustmentofoilpricehedges



Loss before tax

Tax

Loss for the period




1,343

1,531

23

-165

-1,226

-1,391

+428

-963

652

3,747

3,835

-47

-135

-3,293

-3,428

+570

-2,858

-3,935

254

289

4

-31

-232

-263

+80

-183

120

706

722

-9

-25

-621

-646

+107

-539

-742

687

939

39

-213

-594

-807

203

-1,010

-1,168

1,891

2,407

70

-446

-4,150

-4,596

+376

-4,220

-4,803

119

163

7

-37

-99

-136

36

-172

-199

333

424

12

-79

-732

-811

+67

-744

-847

95%

63%

-41%

-23%

106%

72%

n/a

-5%

n/a

98%

59%

n/a

-70%

-21%

-25%

52%

-32%

-18%

113%

77%

-43%

-16%

134%

93%

n/a

6%

n/a

112%

70%

n/a

-68%

-15%

-20%

60%

-28%

-12%


The interim report for the period 1 January to

30 September 2011 for the A.P. Moller - Maersk Group

has been prepared in accordance with IAS 34 “Interim

Financial Reporting” as adopted by the EU and the

additional Danish disclosure requirements for interim

reports for listed companies. In our opinion the interim

financial statements give a true and fair view of the

Group’s total assets, liabilities and financial position at

30 September 2011 and of the result of the Group’s

activities and cash flows for the period 1 January to

30 September 2011. Furthermore, in our opinion the

Directors’ report (pages 3-36) includes a fair review

of the development and performance of the Group’s

activities and of the Group’s financial position taken

as a whole together with a description of the signifi-

cant risks and uncertainties that the Group faces.

Copenhagen, 9 November 2011

A.P. Møller - Mærsk A/SDirectors’ statement

A.P. Møller

Managing Director:

Board of Directors:

Sir John Bond Arne Karlsson Jan Leschly

Leise Mærsk Mc-Kinney Møller Lars Pallesen John Axel Poulsen

Erik Rasmussen Robert Routs Jan Tøpholm

Michael Pram Rasmussen

Chairman

Ane Mærsk Mc-Kinney Uggla

Vice-chairman

Niels Jacobsen

Vice-chairman


Condensed income statement



Note 2011 2010 2011 2010 2010

1 Revenue




Gain on sale of non-current assets

and businesses, net

Associated companies

– share of profit/loss for the period



Profit before tax

Tax



1 Profit for the period

Of which:

Non-controlling interests


Earnings per share of continuing

operations, DKK

Diluted earnings per share

of continuing operations, DKK

Earnings per share, DKK

Diluted earnings per share, DKK

80,794

17,835

6,866

12

23

11,004

-1,545

9,459

7,574

1,885

35

1,920

277

1,643

368

368

376

376

240,023

61,489

20,935

4,513

538

45,605

-3,677

41,928

25,500

16,428

36

16,464

2,208

14,256

3,257

3,256

3,266

3,264

81,249

24,438

8,268

555

242

16,967

-1,098

15,869

6,246

9,623

-2

9,621

425

9,196

2,107

2,106

2,107

2,106

234,782

68,152

24,746

3,646

434

47,486

-4,595

42,891

19,107

23,784

-7

23,777

1,186

22,591

5,177

5,175

5,176

5,173

315,396

89,218

33,822

3,792

461

59,649

-5,263

54,386

26,174

28,212

3

28,215

1,760

26,455

6,060

6,057

6,061

6,058


Statement of comprehensive income



Note 2011 2010 2011 2010 2010

1 Profit for the period

Translation from functional currency

to presentation currency:

Translation impact arising during the period

Reclassified to income statement, gain on sale

of non-current assets and businesses, net

Fair value adjustment of other equity investments:

Fair value adjustment for the period

Reclassified to income statement, gain on sale

of non-current assets and businesses, net

Cash flow hedges:

Valueadjustmentofhedgesfortheperiod

Reclassified to income statement:

– revenue

– operating costs

– gain on sale of non-current assets

and businesses, net

– financial expenses

Reclassified to cost of property,

plant and equipment

Share of other comprehensive income of

associated companies, net of tax

Actuarial gains/losses on defined benefit plans, etc.

Tax on other comprehensive income

Other comprehensive income, net of tax

Total comprehensive income for the period

Of which:



16,464

-3,408

547

6

-74

-30

-34

-552

-279

521

-8

-167

-

-63

-3,541

12,923

2,121

10,802

1,920

8,095

-

-36

-48

-745

-12

-113

-

178

10

-11

-

35

7,353

9,273

378

8,895

23,777

6,154

264

-141

-2,535

-1,016

30

-146

-

775

17

36

-

16

3,454

27,231

1,430

25,801

9,621

-13,934

264

32

-43

849

1

75

-

90

-23

-12

-

12

-12,689

-3,068

235

-3,303

28,215

10,183

264

-85

-2,515

-903

117

-31

-

974

15

80

-177

30

7,952

36,167

2,099

34,068


Condensed balance sheet, assets


30 September 31 December

Note 2011 2010 2010

Intangible assets

Property, plant and equipment

Financial non-current assets

Deferred tax

Total non-current assets

Inventories

Receivables, etc.

Securities

Cash and bank balances

2 Assets held for sale

Total current assets

1 Total assets

26,973

243,824

36,476

5,048

312,321

12,890

40,549

1,856

10,619

8,845

74,759

387,080

14,767

241,528

30,517

5,721

292,533

9,556

41,914

2,054

18,056

4,342

75,922

368,455

14,629

243,666

31,295

5,134

294,724

10,417

38,359

1,986

23,896

5,341

79,999

374,723


Condensed balance sheet, total equity and liabilities



Note 2011 2010 2010

Equity attributable to A.P. Møller - Mærsk A/S


Total equity

Issued bonds

Bank and other credit institutions, etc.

Other non-current liabilities, etc.

Total non-current liabilities

Bank and other credit institutions, etc.

Other current liabilities, etc.

2 Liabilities associated with assets held for sale

Total current liabilities

1 Total liabilities

Total equity and liabilities

187,917

13,056

200,973

13,775

66,593

25,856

106,224

17,728

59,281

2,874

79,883

186,107

387,080

173,245

11,146

184,391

9,331

80,009

25,591

114,931

11,943

55,710

1,480

69,133

184,064

368,455

181,556

11,406

192,962

13,099

75,322

24,591

113,012

12,641

54,139

1,969

68,749

181,761

374,723


Condensed cash flow statement


9 months Full year

2011 2010 2010


Non-cash items, etc.

Change in working capital

Cash flow from operating activities before financial items and tax

Financial payments, net

Taxes paid


Purchase of intangible assets and property, plant and equipment

Sale of intangible assets and property, plant and equipment

Acquisition/sale of subsidiaries and activities, etc., net


Purchase/sale of securities, trading portfolio

Cash flow used for investing activities

Repayment of/proceeds from loans, net

Dividends distributed

Dividends distributed to non-controlling interests

Other equity transactions

Cash flow used for financing activities

Net cash flow from continuing operations

Net cash flow from discontinued operations

Net cash flow for the period

Cash and bank balances 1 January

Currency translation effect on cash and bank balances

Cash and bank balances, end of period

Of which classified as assets held for sale

Cash and bank balances, end of period

Cash and bank balances are included in the order of DKK 4.8bn (DKK 3.8bn) relating

to subsidiaries´cash and bank balances in countries with exchange control or other

restrictions, which means that the funds are not readily available for general use by

the parent company or other subsidiaries.

45,605

12,997

-4,222

54,380

-2,570

-19,120

32,690

-30,204

1,564

-11,945

-40,585

106

-40,479

-611

-4,365

-540

52

-5,464

-13,253

132

-13,121

23,921

-167

10,633

-14

10,619

47,486

19,727

-4,773

62,440

-5,851

-14,841

41,748

-24,254

2,413

3,480

-18,361

406

-17,955

-12,779

-1,419

-240

141

-14,297

9,496

-87

9,409

8,419

329

18,157

-101

18,056

59,649

29,646

-2,430

86,865

-4,652

-25,241

56,972

-30,958

3,347

1,533

-26,078

515

-25,563

-14,377

-1,419

-685

153

-16,328

15,081

-64

15,017

8,419

485

23,921

-25

23,896


Statement of changes in equity


2011 A.P. Møller - Mærsk A/S

Share Trans- Reserve Reserve Retained Dividend Total Non- Total capital lation for for earnings for control- equity reserve other hedges distri- ling equity bution inter- invest- ests ments

Equity 1 January 2011 4,396 -5,592 125 -1,764 179,995 4,396 181,556 11,406 192,962



Translation impact arising during

the period - -3,604 -4 415 - - -3,193 -215 -3,408

Reclassified to income statement,

gain on sale of non-current assets

and businesses, net - 370 - - - - 370 177 547

Fair value adjustment of other

equity investments:

Fair value adjustment for the period - - 7 - - - 7 -1 6



and businesses, net - - -74 - - - -74 - -74

Cash flow hedges:

Valueadjustmentofhedgesfortheperiod - - - -54 - - -54 24 -30


– revenue - - - -34 - - -34 - -34

– operating costs - - - -552 - - -552 - -552

– gain on sale of non-current assets

and businesses, net - - - -189 - - -189 -90 -279

– financial expenses - - - 521 - - 521 - 521


plant and equipment - - - -8 - - -8 - -8

Share of other comprehensive income

of associated companies, net of tax - - - - -167 - -167 - -167

Tax on other comprehensive income - - -1 -80 - - -81 18 -63

Other comprehensive income, net of tax - -3,234 -72 19 -167 - -3,454 -87 -3,541

Profit for the period - - - - 14,256 - 14,256 2,208 16,464

Total comprehensive

income for the period - -3,234 -72 19 14,089 - 10,802 2,121 12,923

Dividends to shareholders - - - - 31 -4,396 -4,365 -540 -4,905

Valueofgrantedandsoldshareoptions - - - - 32 - 32 - 32

Acquisition of non-controlling interests - - - - -28 - -28 -7 -35

Acquisition of own shares - - - - -24 - -24 - -24

Sale of own shares - - - - 35 - 35 - 35

Capital increases and decreases - - - - - - - 76 76

Other equity movements - - - - -91 - -91 - -91

Total transactions with shareholders - - - - -45 -4,396 -4,441 -471 -4,912

Equity 30 September 2011 4,396 -8,826 53 -1,745 194,039 - 187,917 13,056 200,973

Acquisition of non-controlling interests relate to a number of minor transactions.


Statement of changes in equity – continued


2010 A.P. Møller - Mærsk A/S

Share Trans- Reserve Reserve Retained Dividend Total Non- Total capital lation for for earnings for control- equity reserve other hedges distri- ling equity bution inter- invest- ests ments

Equity 1 January 2010 4,396 -15,079 2,094 -1,894 157,833 1,429 148,779 10,089 158,868



Translation impact arising during

the period - 5,236 644 92 - - 5,972 182 6,154



and businesses, net - 264 - - - - 264 - 264

Fair value adjustment of other

equity investments:

Fair value adjustment for the period - - -141 - - - -141 - -141



and businesses, net - - -2,535 - - - -2,535 - -2,535

Cash flow hedges:

Valueadjustmentofhedgesfortheperiod - - - -1,082 - - -1,082 66 -1,016


– revenue - - - 30 - - 30 - 30

– operating costs - - - -146 - - -146 - -146

– financial expenses - - - 774 - - 774 1 775


plant and equipment - - - 14 - - 14 3 17

Share of other comprehensive income

of associated companies, net of tax - - - - 36 - 36 - 36

Tax on other comprehensive income - - 7 17 - - 24 -8 16

Other comprehensive income, net of tax - 5,500 -2,025 -301 36 - 3,210 244 3,454

Profit for the period - - - - 22,591 - 22,591 1,186 23,777

Total comprehensive

income for the period - 5,500 -2,025 -301 22,627 - 25,801 1,430 27,231

Dividends to shareholders - - - - 10 -1,429 -1,419 -240 -1,659

Valueofgrantedandsoldshareoptions - - - - 33 - 33 - 33

Acquisition of non-controlling interests - - - - -21 - -21 -35 -56

Sale of non-controlling interests - - - - 72 - 72 -100 -28

Capital increases and decreases - - - - - - - 2 2

Total transactions with shareholders - - - - 94 -1,429 -1,335 -373 -1,708

Equity 30 September 2010 4,396 -9,579 69 -2,195 180,554 - 173,245 11,146 184,391

Acquisition and sale of non-controlling interests relate to a number of minor transactions.


Notes

Contents Page

1 Segment information 46

2 Assets held for sale and associated liabilities 47

3 Acquisition/sale of subsidiaries and activities 48

4 Financial risks 50

5 Commitments 51

6 Accounting policies 52

7 New financial reporting requirements 53


Notes


1 Segment information

Revenue Profit/loss Revenue Profit/loss for the period for the period

9 months 2011 9 months 2010

Revenue and profit/loss for the period



Terminal activities


Retail activities

Other businesses



Eliminations

Total continuing operations

Discontinued operations, after eliminations

Total

External Inter- External Inter- segment segment

9 months 2011 9 months 2010

Revenue



Terminal activities


Retail activities

Other businesses



Eliminations

Total

Assets Liabilities Assets Liabilities

30 September 2011 30 September 2010

Assets and liabilities



Terminal activities


Retail activities

Other businesses



Eliminations

Total continuing operations


Total

508

8,236

2,538

2,793

4,763

661

19,499

-2,858

-213

16,428

36

16,464

412

-

7,763

394

-

3,338

11,907

-

-11,907

-

27,189

29,075

6,337

9,615

7,174

2,390

81,780

113,686

-9,443

186,023

84

186,107

110,531

41,701

17,812

24,024

43,249

5,904

243,221

1,891

-10,330

234,782

-

234,782

110,269

41,701

9,472

23,634

43,249

4,588

232,913

1,891

-22

234,782

121,969

49,794

32,302

88,288

22,264

24,320

338,937

35,959

-6,628

368,268

187

368,455

108,587

50,890

18,121

22,998

40,832

6,877

248,305

3,747

-12,029

240,023

-

240,023

108,175

50,890

10,358

22,604

40,832

3,539

236,398

3,747

-122

240,023

130,162

60,445

34,643

93,135

21,609

28,712

368,706

27,990

-9,701

386,995

85

387,080

12,779

7,591

3,790

1,590

1,362

678

27,790

-4,220

214

23,784

-7

23,777

262

-

8,340

390

-

1,316

10,308

-

-10,308

-

26,210

25,699

6,226

9,511

7,555

2,646

77,847

113,011

-6,890

183,968

96

184,064


1 – continued

Total net impairment losses on intangible assets and property, plant and equipment in the first nine months 2011 totalled DKK 825m

(DKK 2,231m). The net impairment losses in the first nine months 2011 were related primarily to impairment of an FPSO of DKK 1,326m

and reversal of impairment losses of DKK 504m in relation to the reclassification of Maersk LNG to assets held for sale.

Impairment losses in the first nine months 2010 were related primarily to Tankers, offshore and other shipping activities.

Notes

2 Assets held for sale and associated liabilities

Amounts in DKK million (in parenthesis the corresponding figures for 2010)


2011 2010 2010

Assets held for sale

Non-current assets

Current assets

Total

Liabilities associated with assets held for sale

Provisions

Other liabilities

Total

Assets held for sale primarily relate to Maersk LNG, two terminals and seven container vessels, of which four are owned and three are held

under finance leases.

The sale of Netto Foodstores Limited, UK was completed 13 April 2011 with a gain of DKK 3.8bn including an accumulated exchange rate

loss of DKK 0.5bn previously recognised in equity. Furthermore, one tanker vessel was sold in 2011.

Impairment losses of DKK 0m (DKK 260m) have been recognised for assets held for sale.

At 30 September 2010, assets held for sale primarily included Netto Foodstores Limited, UK, one tanker vessel and seven container vessels,

of which four were owned and three were held under finance leases.


8,743

102

8,845

99

2,775

2,874

3,791

551

4,342

83

1,397

1,480

4,765

576

5,341

70

1,899

1,969


Notes


3 Acquisition/sale of subsidiaries and activities

Acquisitions during the first 9 months 2011 Poti Sea SK do NTS Inter- Other Total Port Corp. Brasil national Ltda. Transport Services Co. Ltd.

Fair value at time of acquisition

Non-current assets

Current assets

Provisions

Liabilities

Net assets acquired

Goodwill

Acquisition cost

Change in payable acquisition cost

Contingent consideration recognised

Contingent consideration paid

Paid in prior years

Cash and bank balances assumed

Cash flow from acquisition of

subsidiares and activities

The purchase price allocations as of 30 September 2011 are provisionally determined as not all information for determining the fair value of

assets and liabilities is available at this point in time.

If the acquisitions during the period had occurred 1 January 2011, the Group's revenue and profit would not have been materially different.

Poti Sea Port Corp.

On 14 May 2011, the Group acquired 100% of the shares in Poti Sea Port Corp., which owns and operates the Poti Black Sea port.

The acquisition is in line with the Group’s strategy, which aims for APM Terminals to be the leading global port operator. Eastern Europe

is the fastest growing container activity region in the world with double digit growth forecast for the next three years.

The total acquisition cost was DKK 1,044m, including a contingent consideration of DKK 128m. The contingent consideration is dependent on

future financial and operational performance of the company and is estimated to range between DKK 14m and DKK 292m (undiscounted).

From the acquisition date to 30 September 2011, Poti Sea Port Corp. contributed with revenue of DKK 89m and a profit for the period of DKK 34m.

SK do Brasil Ltda.

On 21 July 2011, the Group acquired 100% of the shares in SK do Brasil Ltda, which owns shares in three offshore oil licences in Brazil. The

acquisition is in line with the Group’s strategy, which aims for Maersk Oil to stabilise production by 2014 and thereafter gradually grow to

reach a stable production level at 400,000 barrels of oil equivalents per day.

From the acquisition date to 30 September 2011, SK do Brasil Ltda. contributed with revenue of DKK 141m and a loss for the period of DKK

244m mainly due to exploration activities.

-

3

-

-

3

-

3

-2

-

54

-

3

56

145

445

-

265

325

373

698

113

136

-

-

24

425

12,845

855

203

442

13,055

-

13,055

-

-

-

1,061

474

11,520

1,217

148

-

321

1,044

-

1,044

-

128

-

-

38

878

14,207

1,451

203

1,028

14,427

373

14,800

111

264

54

1,061

539

12,879


Notes


3 – continued

NTS International Transport Services Co. Ltd.

On 18 August 2011, the Group acquired 100% of the shares in NTS International Transport Services Co. Ltd. The acquisition will considerably

strengthen Damco’s rendering of global airfreight service.

The total acquisition cost was DKK 698m, including a contingent consideration of DKK 136m. The contingent consideration is dependent on

future financial and operational performance of the company and is estimated to range between DKK 86m and DKK 259m (undiscounted).

Current assets include trade receivables with a fair value of DKK 288m. The gross amount due under the contracts is not materially different

from the fair value.

The goodwill of DKK 373m is attributable to synergies between Damco’s customer base and NTS International Transport Services Co. Ltd.’s

airfreight services and is not deductable for tax purposes.

From the acquisition date to 30 September 2011, NTS International Transport Services Co. Ltd. contributed with revenue of DKK 296m and a

profit for the period of DKK 1m.

Acquisitions during the first 9 months 2010

No acquisitions of subsidiaries or activities to an extent of any significance to the Group were undertaken in the first nine months 2010.

Sales during the first nine months 2011 2010

Carrying amount

Non-current assets

Current assets

Provisions

Liabilities

Net assets sold



Gain/loss on sale 1

Proceeds from sale

Change in receivable proceeds, etc.

Non-cash items

Cash and bank balances sold

Cash flow from sale of subsidiaries and activities

1 Excluding accumulated exchange rate loss previously recognised in equity.

Sales during the first nine months 2011 primarily comprised of Netto Foodstores Limited, UK. The sale was completed 13 April 2011

with a gain of DKK 3.8bn including an accumulated exchange rate loss of DKK 0.5bn previously recognised in equity.

Salesduringthefirstninemonths2010mainlyconsistedofNorfolkHoldingsB.V.aswellaspartialsaleofGujaratPipavavPortLimited,

K/S Membrane 1 and K/S Membrane 2 by which control of these companies was lost.

2,490

442

-

540

2,392

-

2,392

4,305

6,697

49

-

95

6,553

6,324

2,109

86

5,783

2,564

250

2,314

708

3,022

214

2,247

559

2


Notes

4 Financial risks

Currency risk

An increase in the USD exchange rate of 10% against all other significant currencies, to which the Group is exposed, is not expected to have

a material effect on the Group’s profit for the fourth quarter 2011. An increase in the USD exchange rate of 10% against all other significant

currencies to which the Group is exposed is, all other things being equal, estimated to have a positive effect of approximately DKK 13bn in

equity including effect of translation from USD to DKK.

Interest rate risk

A general increase in interest rates by one percentage point is estimated, all other things being equal, to affect the Group’s profit before tax

for the fourth quarter 2011 negatively by DKK 18m, corresponding to USD 3m. The effect on equity, excluding tax effect, is estimated to be

positive by DKK 364m, corresponding to USD 66m.

Liquidity risk

DKK million USD million

30 September 31 December 30 September 31 December

2011 2010 2010 2011 2010 2010

Interest-bearing debt

Net interest-bearing debt

Liquidity buffers 1

1 Liquidity buffers are defined as cash and bank balances, securities and undrawn committed revolving facilities.

Based on the liquidity reserve, the size of the committed loan facilities, including loans for the financing of specific assets, the maturity of

outstanding loans, and the current investment profile, the Group's financial resources are deemed satisfactory. The intention is to continue

to maintain a conservative financial profile corresponding to a strong “investment grade” company through the business cycle with a strong

liquidity position in order to withstand fluctuations in the economy, and have the strength to exploit new and attractive investment opportunities.

The average term to maturity of loan facilities in the Group was more than five years (more than five years) at 30 September 2011.

Market risks

Freight rates and cargo volumes

Shipping activities are very sensitive to economic fluctuations. Freight rates and cargo volumes are sensitive to developments in international

trade, including the geographical distribution and the supply of tonnage. The Group’s profit is very sensitive to changes in volumes and rates.

All other things being equal, this can be illustrated by the following estimated sensitivities (effect on profit for the fourth quarter 2011):

• Changeincontainerfreightrateof+/-100USD/FFE:+/-USD210m

• Changeincontainerfreightvolumeof+/-100,000FFE:+/-USD160m

Oil price

For the Oil and gas activities, an increase in the crude oil price by USD 10 per barrel is estimated to have a positive effect on the Group's profit

for the fourth quarter 2011 in the order of USD 70m based on current oil prices and all other things being equal.

Asdescribedintheconsolidatedfinancialstatementsfor2010,itisdifficulttoprovideapreciseoverviewoftheGroup'sexposuretochanges

in the bunker price. Assuming that the average BAF ratio is 85% (85% of the change in bunker costs are transferred to the customers), an

increase in oil prices by USD 10 per barrel will, based on current bunker prices and all other things being equal, have a negative effect on the

Group's profit for the fourth quarter 2011 in the order of USD 30m.


18,549

13,675

13,273

17,800

14,499

11,539

101,062

69,694

81,332

101,283

74,667

72,469

98,096

79,905

63,591

18,003

12,416

14,489


Notes

5 Commitments

Operating lease commitments

At 30 September 2011, the net present value of operating lease commitments totalled DKK 68.0bn (USD 12.3bn) using a discount rate of

6%, a small decrease from DKK 68.5bn (USD 12.2bn) at 31 December 2010. The amount is divided into the following main items:

• CommitmentsregardingContaineractivitiesandTankers,offshoreandothershippingactivitiesofDKK41.6bn(USD7.5bn)

• CommitmentsregardingTerminalactivitiesofDKK21.5bn(USD3.9bn)

• OthercommitmentsofDKK4.9bn(USD0.9bn)

About one-third of the time charter payments in Container activities and Tankers, offshore and other shipping activities are estimated to

relate to operating costs for the assets.

Capital commitments

Container Oil and Terminal Tankers, Retail Other Total activities gas activities offshore activities activities and other shipping activities

30 September 2011

Capital commitments relating to

acquisition of non-current assets

Commitments towards

concession grantors

Total

31 December 2010

Capital commitments relating to

acquisition of non-current assets

Commitments towards

concession grantors

Total


1,137

-

1,137

1,334

-

1,334

1,684

-

1,684

14

-

14

57,692

16,862

74,554

42,022

8,966

50,988

19,690

-

19,690

4,725

-

4,725

1,922

11,959

13,881

3,134

5,217

8,351

4,155

4,903

9,058

16,293

3,749

20,042

29,104

-

29,104

16,522

-

16,522


Notes

5 – continued

No.

Newbuilding programme 2011 2012 2013 2014- Total

Container vessels, etc.

Tanker vessels

Rigs and drillships

Tugboats and standby vessels, etc.

Total

DKK million

Capital commitments relating to the newbuilding programme 2011 2012 2013 2014- Total

Container vessels, etc.

Tanker vessels

Rigs and drillships

Tugboats and standby vessels, etc.

Total

The increase in capital commitments primarily relates to contracts for 20 new container vessels (Triple-E) at a total price of DKK 19.6bn (USD

3.8bn) as well as contracts for four drillships and two jack-up rigs at a total price of DKK 16.0bn (USD 2.9bn). The increase is partly offset by

contractual payments during 2011, including the acquisition of SK do Brasil Ltda.

DKK 46.2bn (USD 8.4bn) of the total capital commitments relate to the newbuilding programme for ships, rigs, etc. at a total contract price

of DKK 59.5bn (USD 10.8bn) including owner-furnished equipment. The remaining capital commitments of DKK 28.4bn (USD 5.1bn) relate to

investments mainly within Terminal activities and Oil and gas activities.

The capital commitments will be financed by cash flow from operating activities as well as existing and new loan facilities.

6 Accounting policies

The interim consolidated financial statements have been prepared in accordance with IAS 34 as adopted by the EU and the additional Danish

disclosure requirements for listed companies. The accounting policies are unchanged from the 2010 financial statements, except for the

changes described in Note 31 of the 2010 consolidated financial statements, to which reference is made. The changes have no effect on the

interim financial statements.


14

-

3

-

17

10,184

-

4,459

-

14,643

10

-

3

2

15

7,800

-

9,338

28

17,166

21

3

-

13

37

9,142

718

2,261

358

12,479

3

2

-

10

15

1,562

114

-

203

1,879

48

5

6

25

84

28,688

832

16,058

589

46,167


Notes

7 New financial reporting requirements

In May 2011, IASB issued new IFRS 10-12 and amendments to IAS 27-28, and superseded IAS 31 and SIC-12 with effect from 2013.

The new requirements relate to consolidation and include a detailed explanation of the concept of control as well as increased disclosure

requirements. The rules for the treatment of jointly controlled entities have changed, so that investments are treated similarly to associated

companies and may only be consolidated proportionally in some cases. An analysis of the implications of the new regulation is in progress.

The change to the accounting treatment of jointly controlled entities is expected to have effect on the Group’s revenue and total assets, but

will have no effect on the Group’s profit and total equity. The Group’s jointly controlled entities are mainly operating in Oil and gas activities

and Terminal activities.

In 2011, the IASB also issued a new IFRS 13 and amended IAS 1 and IAS 19 with effect from 2013. IAS 19 changes the calculation of defined

benefit pension costs, with an insignificant impact on the Group's profit. IFRS 13 comprises general rules for the calculation of fair values,

which do not change current practice, and IAS 1 will result in a change to the presentation of items in other comprehensive income.

None of the changes have yet been adopted by the EU.


A.P. Møller - Mærsk A/S

Registration no. 22756214

Managing Director:

A.P. Møller

Esplanaden 50

DK-1098 Copenhagen K

Tel. +45 33 63 33 63

www.maersk.com

[email protected]

Board of Directors:

Michael Pram Rasmussen, Chairman

NielsJacobsen,Vice-chairman

AneMærskMc-KinneyUggla,Vice-chairman

Sir John Bond

Arne Karlsson

Jan Leschly

Leise Mærsk Mc-Kinney Møller

Lars Pallesen

John Axel Poulsen

Erik Rasmussen

Robert Routs

Jan Tøpholm

Audit Committee:

Jan Tøpholm, Chairman

Lars Pallesen

Leise Mærsk Mc-Kinney Møller

Remuneration Committee:

Michael Pram Rasmussen, Chairman

Niels Jacobsen

Ane Mærsk Mc-Kinney Uggla

Auditors:

KPMG

Statsautoriseret Revisionspartnerselskab

PricewaterhouseCoopers Danmark

Statsautoriseret Revisionsaktieselskab

EditorsHans Christian AagaardJesper CramonTrine GramHenrik Lund

Design and layoute-Types & India

ISSN: 1604-2913

Produced in Denmark 2011

Colophon

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