THE TRANSFORMATION OF A.P. MOLLER – MAERSK Claus V. Hemmingsen, Vice CEO of A.P. Moller-Maersk & CEO of the Energy division

Copenhagen, 12 December 2017

A.P. Moller - Maersk: Historically a diversified conglomerate

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A century of entrepreneurial growth A truly global company

Examples of Maersk businesses past 25 years:

• Passenger airline (Maersk Air)

• Medical devices (Maersk Medical)

• Information technology (Maersk Data)

• Plastic manufacturing (Rosti)

• Retail (Dansk Supermarked)

• Banking (Danske Bank)

... and prior hereto, A.P. Moller - Maersk has been

involved in such businesses as motor

manufacturing, sugar plantations, oil refining, and

fishing.

Most successful ventures have had a close

link to a maritime operating environment

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The end of the ‘trade multiplier effect’

- low global trade growth

The end of 100 USD/barrel oil

and the energy transition

The digital revolution

Changes in three driving forces emerging in early 2015 challenged the conglomerate structure and drove the decision to transform the company

Energy businesses, constituting 24% of revenues, to be replaced with organic and inorganic growth in Transport & Logistics

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Maersk Group revenue and invested capital split (2016 FY)

30%

76%Revenue

24%Revenue

Invested capital

70%Invested capital

EnergyTransport & Logistics

Hamburg Süd

revenue

(transaction closed 30th of

November)

+18%

Portfolio of companies in Energy to be separated out of A.P. Moller –Maersk

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10%Tankers

27%Drilling

14%Tankers5%

Supply Service 32%Oil

49%Drilling

Note: Number of employees as per 1 December 2016 totaling ~12,000

Revenue 2016

24% share of Maersk total

Invested Capital 2016

30% share of Maersk total

EBITDA 2016

63% share of Maersk total

5%Supply Service

58%Oil

8,368USDm

12,656USDm

5%Tankers

32%Drilling

2%Supply Service

4,293USDm

61%Oil

Sold (EV USD 7.45bn) –

closing expected in Q1 18

Reclassified as held for

sale

Sold (EV 1.2bn) and transaction

closedContininuing business

Pursuing solutions for Maersk Drilling and Maersk Supply Service

Executing on solution for Maersk

Tankers (closed October 2017)

Analysing options for structural solutions

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Transformation progress

CEO change and

strategic

announcement

New strategy Cyber attack Sale of Maersk

Oil

Sale of Maersk

Tankers

Maersk Drilling

reclassified and

Acquisition of

Hamburg Süd

Transport &

Logistics divisionIntegration & Digitisation

Energy

division

Separation activities

2021 - 2023

2018

Sale of Maersk Oil. Expected closing during Q1 2018

2018

2018

June 2016 Sept 2016 July 2017 Aug 2017 Sept 2017 Nov 2017

Our new strategy will bring us back on the growth track

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Organic growth: Volume growth in all our business segments

Adjacent growth: Growing the revenue per container outside ocean freight,

including new physical and digital services

Acquisitive growth: Recent acquisition of Hamburg Süd

More stable earnings through end-to-end services to our customers

Integrating also unlocks more immediate synergies across our brands

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Improved inland

services

Optimised hub

operations

Joint production

planning

Cross-selling

products and

services

Increased terminal

utilisation

Maersk Line

APM Terminals

Damco

Maersk Line

APM Terminals

Maersk Line

Maersk Line

Maersk Container Industry

Maersk Line

APM Terminals

Damco

Svitzer

Maersk Line

APM Terminals

Integrated offerings combine Damco’s product range and Maersk

Line’s large customer base

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We will improve customer

retention from capabilities in

tailoring solutions and building

strategic partnerships

We will achieve higher share of

wallet from attracting more of

customers’ total logistics spend e.g.,

via Damco’s supply chain solutions

Value chain coverage

Customer base (volume)

TerminalWarehouse OceanProduction Intermodal Terminal Intermodal Warehouse Last-mile

17% (2016)

of Maersk Line

volume is today sold

with inland service

on top

Growth

potential

Growth

potential

Digitisation is a key enabler in a digitally immature industry

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STAGE 01 STAGE 02 STAGE 03

Fundamental and profound change

to our industry

• Digital impact primarily

in operations and cost

reductions

• Limited digital disruption

in the industry

• Digital engagement with customers increasingly important

• Increasing personalisation of customer experience using

advanced data analytics

• Advanced technologies and data analytics

constantly deployed to find competitive

advantages

Digital technology will:

Vastly improve customer experience

Enable next level of operations optimisation

Transport & Logistics

Construction Oil &

Gas

PharmaManufacturing

Healthcare

Education

Airlines

Auto

BankingRetail

Telco Media

Source: Bain & Company

The opportunities from digitisation are significant

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Transport & Logistics: An inherently

manual industry

Maersk is experimental with digital

business models - examples

Partnering with

IBM to enable

paperless trade

end-to-end

Our digital freight

forwarder

• Manual, time-consuming, paper-based processes

across the logistics value chain

• Example: Transporting flowers from Nairobi to

Rotterdam involves 30 actors, 100+ people, and

200 information exchanges

A.P. Moller - Maersk to become the global integrator of container logistics within 3 -5 years

Simple end-to-end offering

Seamless customer engagementGlobal integrator of container logistics

- simplifying and connecting the

customers’ supply chain

Superior delivery network end-to-end

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QUESTIONS?