A.P. MØLLER HOLDING A/S ANNUAL REPORT 2018 MANAGEMENT REVIEW
DEFINING OUR FUTURE INVESTMENT STRATEGY Building on our legacy During 2018, A.P. Moller Holding has been focusing on framing the strategy for our future investments as well as building our investment team. In this, we are guided by the purpose coined by our founding fathers, namely creating “nyttig virksomhed” - building businesses with a positive impact on society. We are also guided by the long-term view that has been applied and executed by the past generations. This implies that we are building an investment organisation and strategy beyond a pure financial focus. While we do need to deliver a satisfactory financial return to the A.P. Moller Foundation, we will be seeking to do so by continuing to be focused on the long-term trends that shape our society as a whole and by continuing to be entrepreneurial. One such example is our activities around geothermal energy where we are seeking to support a basic need for heating with renewable energy. Today, this is a small and entrepreneurial set-up that in our view has the potential to grow into a large and sustainable business. Our investment strategy will also build on our legacy where impactful businesses and engaged ownership are key words. Ever since the first steamship vessel LAURA was acquired by Peter Mærsk Møller in 1886, the strategy of the A.P. Moller Group has been based on operating businesses that have strong positions in large markets, backed by long-term secular growth trends. Multiple times since its formation 115 years ago, the A.P. Moller Group has taken firm positions in numerous sectors and been a part of building long lasting businesses through engaged ownership.
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OUR STRATEGIC BELIEFS A.P. Moller Holding is an owner and investor in the spirit of our founder A.P. Møller; investing in and building new businesses that have a positive impact on society (“nyttig virksomhed”).
A.P. Moller Holding is the cultural custodian of the A.P. Moller and Maersk name and values. There are numerous such examples. Firstly, seeing the potential and need for a responsible owner and investor to develop Denmark’s subsurface potential for oil and gas extraction. Secondly, the part ownership of Dansk Supermarked that over decades has defined Danish retail. And thirdly, the long-term investment and stewardship around Danske Bank, where we currently are spending a significant part of our time and efforts as engaged owners seeking to strengthen a business we see as critical to Denmark’s financial infrastructure. In addition to defining a robust investment strategy, our investment team is crucial. We need a second to none investment team with an expansive mindset. We aim to have a small and agile team of highly motivated and skilled colleagues who share our views and can benefit our organisation. Historically, the A.P. Moller Group has had a global spirit and business reach, so as we grow, it is important for us to have a team with a global mindset, diverse cultural, ethnical and educational backgrounds. We have made several hires during 2018 that fit these criteria and we are continuing in 2019.
A.P. Moller Holding is an engaged long-term owner with a point of view on key matters.
A.P. Moller Holding seeks portfolio renewal to safeguard the long-term viability of its portfolio. We believe portfolio renewal comes from building new businesses inside and outside of our core holdings.
A.P. Moller Holding is open to reconsider ownership of a business, if its business model does not have a positive impact on society, and/or lacks prospects for competitive value creation over time. A.P. Moller Holding’s ownership in A.P. Moller – Maersk is to be neither diluted nor divested.
A.P. Moller Holding aspires to hold a diversified and financially robust portfolio to sustain black swans and unforeseen negative events.
A.P. Moller Holding pays dividends to the A.P. Moller Foundation, in order for the Foundation to contribute to and support society in the form of donations.
