A.P. MØLLER HOLDING A/S ANNUAL REPORT 2019 · MANAGEMENT REVIEW
HIGHLIGHTS
FIVE YEAR SUMMARY
A.P. Moller - Maersk completed its transformation to become a focused global container integrator by the successful demerger and subsequent listing of The Drilling Company of 1972 (Maersk Drilling) in April 2019. A.P. Moller - Maersk initiated a share buyback programme running for 15 months at a total value of DKK 10bn. A.P. Moller Holding is participating pro-rata. Amounts in DKKm
2019
2018
2017
2016
2015
275,032 3,944 15,187 - 5,281 6,577 4,772
262,613 2,201 10,325 - 2,891 22,464 10,942
220,930 4,863 - 5,276 - 4,290 - 2,991 1,388
207,171 502 - 9,318 - 4,003 - 11,051 - 1,349
230,777 3,200 27,225 - 2,982 7,656 3,466
Average number of employees
88,006
86,113
82,306
83,737
83,934
BALANCE SHEET Total assets as of 31 December Equity as of 31 December
462,222 262,940
413,113 255,758
435,298 229,502
464,366 256,376
458,279 267,107
CASH FLOW STATEMENT Cash flow from operating activities Purchase of property, plant and equipment
43,846 - 16,037
24,795 - 19,857
25,011 - 38,927
11,715 - 15,818
32,332 - 32,957
INCOME STATEMENT Revenue Share of profit in associated companies Profit/loss before financial items (EBIT) Financial items, net Profit/loss for the year A.P. Møller Holding A/S share of profit/loss
FINANCIAL RATIOS Return on equity Equity ratio
2.5% 56.9%
9.3% 61.9%
- 1.2% 52.7%
- 4.2% 55.2%
2.9% 58.3%
The five-year key figures are based on the consolidation for A.P. Moller Holding group and have been adjusted for discontinued operations (Maersk Oil). IFRS 16 Leases have been applied from 1 January 2019 in accordance with the modified retrospective approach. Therefore, comparative figures from previous periods (2015-2018), are not adjusted.
Following the election of the new chairmanship in late 2018, Danske Bank has spent 2019 focusing on establishing the new leadership team, which can regain trust and drive the development of the bank to reach its potential. Also, Danske Bank launched its new strategy ‘Better Bank 2023’. A.P. Moller Holding holds a 41.6% stake in Maersk Drilling following its separate stock listing. The offshore drilling industry has in recent years been challenged by subdued activity; however, Maersk Drilling has a strong competitive position with unique assets, a solid revenue backlog and a strong balance sheet. Maersk Tankers operates as a platform company and saw solid improvement during the year. Furthermore, Maersk Tankers launched a number of digital solutions including SimBunker and applications aiming at reducing the tramp shipping industry’s CO2 emissions, while optimising earnings for the vessel owners. Maersk Product Tankers benefited from the improved tanker markets during 2019 with rates reaching a ten-year high. The improved markets supported the efforts of optimising the fleet during 2019 through a total of 25 vessel transactions. A.P. Moller Capital closed the first investment in the “Africa Infrastructure Fund I’. The fund has developed its investment pipeline in 2019 and in Q1 2020 closed further investments resulting in total capital committed, reaching approximately 1/3 of the total committed funds of USD 1bn. A.P. Moller Holding continued the progress on its geothermal project and advanced the dialogue with Aarhus municipality on delivering geothermal energy. A.P. Moller Holding made its first direct investment outside of the Maersk group of companies by acquiring KK Wind Solutions in September 2019. The company is a global leader in the wind turbine supply industry and saw revenue growth of 40% in 2019. 9
