DEFINITION OF TERMS

Alphaliner EBIT margin gap to peers Return on equity Definition Alphaliner is a worldwide provider of container Peer group includes CMA CGM, APL, Hapag Is calculated as the profit/loss for the year shipping data and analysis. Lloyd, Hanjin, ZIM, Hyundai MM, , OOCL, divided by the average equity. NYK, MOL, COSCO and CSCL. Peer average is Backlog TEU-weighted. EBIT margins are adjusted for ROIC of terms The value of future contract coverage (revenue gains/losses on sale of assets, restructuring Return on invested capital after tax. backlog). charges, income/loss from associates and impairments. Line’s EBIT margin is also TEU boepd adjusted for depreciation to match industry Twenty Foot Equivalent Unit container. Barrels of oil equivalent per day. standards (25 years). Segments’ return on invested capital Technical terms, abbreviations Bunker Economic utilisation after tax (ROIC) Type of oil used in ship engines. The number of contracted days in percentage Is net operating profit/loss after tax (NOPAT) and definitions of key figures of total days in the calendar year. divided by the quarterly average invested capital, and financial ratios. CAGR net (segment assets less liabilities). Compound annual growth rate. Energy division From 2017, the Energy division consists of Time charter Cash flow from operating activities per share , Maersk Drilling, Maersk Supply Hire of a vessel for a specified period. Is A.P. Moller - Maersk’s operating cash flow Service and Maersk Tankers, as well as other from continuing operations divided by the num- businesses (Maersk Training and FPSOs) and Total market capitalisation ber of shares (of DKK 1,000 each), excluding unallocated Energy headquarter costs. Is the total number of shares – excluding A.P. Moller - Maersk’s holding of own shares. A.P. Moller - Maersk’s holding of own shares Equity ratio – multiplied by the end-of-year price quoted Contract coverage Is calculated as the equity divided by total by NASDAQ OMX . Percentage indicating the part of ship/rig days assets. that are contracted for a specific period. Total shareholder return FFE Total shareholder return is equal to the price Discontinued operations Forty Foot Equivalent unit container. appreciation rate (price variance from the Discontinued operations are a major line of beginning to the end of the year) and the business (disposal group) that is either held for Jack-up rig dividend yield. sale or has been sold in previous periods. The A drilling rig resting on legs that can operate in disposal group is reported separately in a single waters of 25–150 metres. Transport & Logistics division line in the income statement and cash flow From 2017, the Transport & Logistics division statement. Comparison figures are restated. Locked box transaction consists of all A.P. Moller - Maersk activities In the balance sheet assets and liabilities are The sale of a business where the equity price except unallocated financial items and those classified and disclosed separately on an aggre- is locked based on a designated balance sheet activities allocated to the Energy division. gate level in the balance sheet as assets held for date (locked box date) prior to signing. Earn- sale and liabilities associated with assets held ings and cash flow from the locked box date Triple-E for sale. In the balance sheet comparison figures until closing of the transaction is at the discre- Triple-E stands for Economy of scale, Energy are not restated. Maersk Oil, Maersk Tankers, tion of the buyer. As compensation, the seller efficiency and Environmentally improved. Maersk Drilling and Maersk Supply Service have receives a locked box interest from the locked been classified as discontinued operations and box date until closing equivalent of the expect- Underlying result profit/loss assets held for sale in 2017. ed cash profits for the period. Consequently, Underlying profit/loss is profit/loss for the the buyer assumes the economic outcome as year from continuing operations adjusted Dividend yield from locked box date. for net gains/losses from sale of non-current The dividend yield is equal to the proposed divi- assets, etc. and net impairment losses as well dends of the year divided by the shares’ price. Net interest-bearing debt (NIBD) as transaction and integration costs related Equals interest-bearing debt less cash and to acquisitions. The adjustments are net of Drewry bank balances less other interest-bearing tax and include A.P. Moller - Maersk’s share Drewry is a leading international provider of re- assets. of mentioned items in associates and joint search and consulting services to the maritime ventures. Underlying segment result also and shipping industry. NOPAT excludes unallocated financial items. Net operating profit or loss after tax. Drillship Uptime A vessel that has been fitted with drilling Product tanker A period when a unit is functioning and equipment, mainly used for deepwater drilling. Vessel transporting refined oil products. available for use.

1 A.P. Moller - Maersk | Annual Report 2017