THE TRANSFORMATION OF A.P. MOLLER – Claus V. Hemmingsen, Vice CEO of A.P. Moller-Maersk & CEO of the Energy division , 12 December 2017 page 2 A.P. Moller - Maersk: Historically a diversified conglomerate

A century of entrepreneurial growth A truly global company

Examples of Maersk businesses past 25 years: • Passenger (Maersk Air) • Medical devices (Maersk Medical) • Information technology (Maersk Data) • Plastic manufacturing (Rosti) • Retail (Dansk Supermarked) • Banking () ... and prior hereto, A.P. Moller - Maersk has been Most successful ventures have had a close involved in such businesses as motor link to a maritime operating environment manufacturing, sugar plantations, oil refining, and fishing. page 3 Changes in three driving forces emerging in early 2015 challenged the conglomerate structure and drove the decision to transform the company

The end of 100 USD/barrel oil and the energy transition

The end of the ‘trade multiplier effect’ - low global trade growth

The digital revolution page 4 Energy businesses, constituting 24% of revenues, to be replaced with organic and inorganic growth in Transport & Logistics

Maersk Group revenue and invested capital split (2016 FY)

Transport & Logistics Energy 76% 24% Revenue Revenue 70% 30% Invested capital Invested capital +18% Hamburg Süd revenue (transaction closed 30th of November) page 5 Portfolio of companies in Energy to be separated out of A.P. Moller – Maersk

Sold (EV USD 7.45bn) – Reclassified as held for Contininuing business Sold (EV 1.2bn) and transaction closing expected in Q1 18 sale closed

Revenue 2016 EBITDA 2016 Invested Capital 2016 24% share of Maersk total 63% share of Maersk total 30% share of Maersk total

5% 10% 2% 5% 14% Supply Service Tankers Supply Service Tankers 5% Tankers Supply Service 32% Oil

8,368 4,293 12,656 USDm USDm USDm

27% 58% 32% 49% Oil 61% Drilling Drilling Oil Drilling

Note: Number of employees as per 1 December 2016 totaling ~12,000 page 6 Transformation progress

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

CEO change and New strategy Cyber attack Sale of Maersk Sale of Maersk Maersk Drilling strategic Oil Tankers reclassified and announcement Acquisition of Hamburg Süd

Transport & 2021 - 2023 Logistics division Integration & Digitisation

Separation activities 2018 Energy division Analysing options for structural solutions 2018

Executing on solution for Maersk Tankers (closed October 2017)

Sale of . Expected closing during Q1 2018

Pursuing solutions for Maersk Drilling and Maersk Supply Service 2018 page 7 Our new strategy will bring us back on the growth track

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 page 8 Integrating also unlocks more immediate synergies across our brands

Increased terminal Improved inland Optimised hub Joint production Cross-selling utilisation services operations planning products and services

Maersk Line Maersk Line Maersk Line Maersk Line APM Terminals APM Terminals APM Terminals Maersk Container APM Terminals Damco Maersk Line Industry Damco Svitzer page 9 Integrated offerings combine Damco’s product range and Maersk Line’s large customer base

Customer base (volume)

of Maersk Line Growth Growth volume is today sold potential potential 17% with inland service (2016) on top

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 We will improve customer retention from capabilities in tailoring solutions and building Production Intermodal Warehouse Terminal Ocean Terminal Intermodal Warehouse Last-mile strategic partnerships page 10 Digitisation is a key enabler in a digitally immature industry

STAGE 01 STAGE 02 STAGE 03 • Digital impact primarily • Digital engagement with customers increasingly important • Advanced technologies and data analytics in operations and cost • Increasing personalisation of customer experience using constantly deployed to find competitive reductions advanced data analytics advantages • Limited digital disruption in the industry

Telco Media Retail Banking Transport Auto & Logistics Digital technology will: Vastly improve customer experience Education Enable next level of operations optimisation Healthcare

Manufacturing Pharma Fundamental and profound change Construction Oil & Gas to our industry

Source: Bain & Company page 11 The opportunities from digitisation are significant

Transport & Logistics: An inherently Maersk is experimental with digital manual industry business models - examples • Manual, time-consuming, paper-based processes across the logistics value chain Partnering with • Example: Transporting flowers from Nairobi to Rotterdam involves 30 actors, 100+ people, and IBM to enable 200 information exchanges paperless trade end-to-end

Our digital freight forwarder page 12 A.P. Moller - Maersk to become the global integrator of container logistics within 3 -5 years

Simple end-to-end offering

Global integrator of container logistics Seamless customer engagement - simplifying and connecting the customers’ supply chain

Superior delivery network end-to-end QUESTIONS?