1Company presentation April 2010 2 Trade lanes are the arteries of international commerce. Containerports are at the heart of the global economy. The global container trade links economies, markets and people. Port and transportation infrastructure are essential factors of economic development. Ports serve as commercial gateways and economic engines nationally, regionally and globally. International trade will always seek the most efficient modes of transportation and service. Ports are the fundamental links in global supply chain management. APM Terminals’ Global Terminal Network sets the standard for the container terminal industry. 3 Presentation overview Company introduction Examples of improvements The container shipping market 4 Company introduction 5 APM Terminals is part of the A.P. Moller–Maersk Group A.P. Moller‐Maersk Group HQ: Copenhagen, Denmark 2009 Revenue: USD $48.5 b in Shipping, Energy, Retail and Banking. 115,000 employees, 130 countries. APM Terminals HQ: The Hague, Netherlands 2009 Revenue: USD $3.02 b Container volume: 31 million TEUs (weighted by terminal equity share) 19,000 employees, 34 countries. 6 APM Terminals has an independent reporting structure April 8, 2010 Group Strategy Office PAGE 6 Strategy Klaus Rud Sejling CFO Trond Westlie Group Relations Steen Reeslev Human Resources Bill Allen Maersk Line** Eivind Kolding* Maersk Drilling Claus Hemmingsen* Maersk Supply Service Carsten Andersen Odense Steel Shipyard Peter Jann Nielsen Dansk Supermarked Erling Jensen Safmarine Tomas Dyrbye Container Inland Services Nigel Simon Pusey Maersk Tankers Søren Skou* Damco Rolf Habben‐Jansen Maersk Ship Management Leif Nielsen Maersk Oil Trading Niels Henrik Lindegaard Accounting Jesper Cramon Finance & Risk Management Jan Kjærvik Legal Christian Kledal Investor Relations Anders Christensen IT Flemming Steen Maersk FPSOs Paul Pedersen * Partner and member of the Executive Board ** Corporate Services, delivering administrative and other services in Copenhagen, is managed by Maersk Line Global Service Centre Corporate Center Service Function Special Projects Flemming Ipsen Procurement Steen Karstensen Norfolkline Thomas Woldbye Maersk Oil Jakob Bo Thomasen Svitzer Jesper Teddy Lok Maersk LNG Paul Pedersen APM Terminals Kim Fejfer Nils Andersen* CEO 7 APM Terminals’ core business is container port management The design, development, implementation, operation and management of the world’s only true geographically balanced Global Container Terminal Network. 19,000 professionals deliver operational excellence to customers. 50 terminals in 34 countries and on five continents, with new terminal projects under way. Customer base: 60 shipping lines and the world’s leading importers and exporters. Annual throughput of 31 million TEUs and global market share of 6.6% in 2009. 8 History: 50 years of innovation, growth and progress First dedicated A.P. Moller terminal facility opens, in the Port of New York. 1958 Containerization begins to change patterns of global trade and growth. 1970s Ongoing evolution of containerization and economic efficiencies of international trading patterns lead to the rapid establishment of global port load centers and transhipment networks, requiring highly coordinated and specialized container terminal operations and equipment to accommodate ever larger vessels and container flows. 1980s Maersk Line acquisition of Sea‐Land enlarges scope of terminal operations globally. 1999 Established as independent container terminal operating company within Maersk Line. 2001 Spun off as independent corporate entity, with headquarters in The Hague, Netherlands. 2004 Revenue of USD $2.5 billion, USD $111 million in profit; APMT reports earnings separately. 2007 Only true Global Terminal Network in port industry; Focus on emerging market terminal investment. 2008 Named "Port Operator of the Year" by Lloyd's List.; Revenue of USD $3 billion; Global market share of 6.6%. 2009 9 Established in 2004 as a separate and independent business unit, APM Terminals consistently outperforms the market. Revenue Segment Cash Flow from Operations Segment Result APM Terminals’ Financial Results 2004‐2009 (USD million) 53 92 142 160 302 442 103 1,313 230 299 275 679 657 1,504 2,068 2,520 3,126 3,021 10 T E U s ( M i l l i o n s ) ( E q u i t y S h a r e W e i g h t e d ) APM Terminals’ container volume growth 2004‐2009 20.6 24.1 28.4 31.4 34 31 11 Regional organization of existing terminal business Americas Portsmouth, Virginia USA Asia Pacific Shanghai, China Europe Rotterdam, Netherlands Africa, Middle East and Indian Subcontinent Dubai, United Arab Emirates Closer access to customers and markets. Accelerated decision‐making and execution. Corporate Head office The Hague, Netherlands 12 A truly Global Terminal Network serving all major markets 13 Americas Region 14 Europe Region 15 Africa, Middle East and Indian Subcontinent Region 16 Asia Pacific Region 17 Demonstrated Performance and Progress Port productivity Port safety 18 Apapa, Nigeria: Significant improvement in service & safety levels Before takeover After takeover What did we do? Eliminated vessel waiting time. Improved Safety and Security. Increased capacity and throughput. Invested USD $200 million in improvements. Takeover 19 Aqaba, Jordan: Successful privatization What changed? Investment in Cranes (Phase 1). Yard Procedures and IT Systems. Improved Productivity. Signed Management Agreement (2004). Joint Development Agreement ‐ 25 Years (2006). ACT Before APM Terminals Terminal congestion. Extreme delays of vessel and container delivery. No safety training or IT system in place. ACT Present 15% container throughput growth in 2009. Annual capacity of 750,000 TEUs. Sustained profitability and competitiveness. Employing local staff in senior positions. ACT Future Installation of new, larger cranes. Doubling of wharf to 1000 meters. Annual capacity of 2.4 million TEUs by 2013. The preferred Port in the Red Sea. 20 Benchmarking safety performance Safety highlights for 2009 Safety performance results placed APM Terminals in the lead of the ports and terminal industry for the year. The Lost Time Injury Frequency (LTIF) rate was reduced by 43% to 4.1 per million man hours for 2009 over the previous year. A four‐hour safety culture program (available in 12 languages) was completed by 17,000 of our 19,000 employees. Employee response to Safety Culture training was reflected in a 400% increase in reported Near‐Miss incidents, to 10,151. Progress in a “Must‐Win” Battle: Terminal fatalities have continue to decline, from 10 in 2007, to nine in 2008, and four in 2009. Injuries per 1,000,000 man hours LTIF journey (APMT) 21 The current container shipping market 22 Today’s global fleet requires a Global Terminal Network At present, nearly 5,900 vessels serve liner trade routes; of which 4,721 are pure containerships. There are 538 container vessels on order, representing an additional 3.87 million TEUs of capacity (30% of the existing fleet capacity). The three largest containership operators account for 35% of world’s total containership capacity. The top seven shipping lines represent 50% of the total global fleet’s current container capacity. Containerships carry one third of all global trade by value. Source: AXS‐Alphaliner, 9/09 (Sources: World Shipping Council; Alphaliner, February 2010) 23 Long‐term attractiveness of the port industry is driven by ongoing globalization, containerization and privatization World container port handling demand (TEU million) 10% CAGR from 1990 ‐ 2008 ‐13% for 2009 / 3% in 2010? 5% CAGR next 5 years? 1990 2009 - 10 2015 Fundamental drivers of port demand Economic globalization. Increased regional trade (e.g. Intra‐Southeast Asia). Increased containerization of commodities (e.g. reefer). Necessity to upgrade existing capacity (e.g. Western market, deep draft). Privatization opportunities. Growing consumer demand in developing countries. 24 2009 Rankings: World’s Largest Containerports (APM Terminals Global Terminal Network locations listed in bold italic) Source: Containerisation International, March 2010 Port Volume (Million TEUs) Singapore 25.8 Shanghai (China) 25.0 Hong Kong 20.9 Shenzhen (China) 18.2 Busan (Korea) 11.9 Guangzhou (China) 11.2 Dubai (UAE) 11.1 Ningbo (China) 10.5 Qingdao (China) 10.2 Rotterdam (Netherlands) 9.7 Tianjin (China) 8.7 Kaohsiung (Taiwan) 8.5 Antwerp (Belgium) 7.3 Port Klang (Malaysia) 7.3 Hamburg (Germany) 7.0 Los Angeles (USA) 6.7 Tanjung Pelepas (Malaysia) 6.0 Long Beach (USA) 5.0 Xiamen (China) 4.6 Laem Chabang (Thailand) 4.6 25 Port operator market shares: APM Terminals ranks 3 rd , goal is not to be the biggest, but the best. Source: Drewry Shipping Consultants, August 2009 2006 2007 2008 TEU million Equity weighted Volumes Market Share Volumes Market Share Volumes Market Share PSA 42.4 9.6% 50.5 10.3% 50.8 9.8% Hutchison 30.9 7.0% 35.1 7.2% 34.9 6.8% APM Terminals 28.4 6.4% 31.4 6.4% 34 6.6% DP World 25.9 5.9% 30.5 6.2% 32.1 6.2% Total Top 4 Operators 127.6 28.9% 147.5 30.1% 151.8 29.4% Other operators 314.4 71.1% 342.5 69.9% 364.2 70.6% Total 442.0 100.0% 490.0 100.0% 516.0 100.0% 26 Top 20 Containership Lines ranked by fleet capacity (Source: AXS‐Alphaliner, March 2010) TEUS 27 APM Terminals is redefining the industry it helped create Most geographically balanced portfolio of any terminal operator. Named “2009 Port Operator of the Year” by Lloyd’s List. Strong financial stability of the parent A.P. Moller‐Maersk Group. Industry‐leading, customer‐driven efficiency and innovation. As an independent operator, APM Terminals can serve all customers. Comprehensive new terminal development and existing facility expansion worldwide. Equipped to serve larger vessels entering the global fleet. Corporate commitment to improvement in: Health and Safety Security Environmental sustainability Local communities 28 For further information… APMTerminals.com
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