A.P. Møller – Mærsk A/S is focusing on the strategic and structural options for the Maersk Group with the objective of generating growth, increasing agilities and synergies and unlocking and maximising shareholder value with the long-term view.
The main growth focus of A.P. Møller – Mærsk A/S going forward will be delivering best in class transportation and logistics services as an integrated Transport & Logistics company. Building on the Group’s unique position within container transport and port operations, and significant position in supply chain management and freight forwarding, Transport & Logistics will leverage its leading position through new product offerings, digitalised services and individualised customer solutions.
To enable the new strategic direction the Board of Directors has decided to reorganise A.P. Møller – Mærsk A/S’ portfolio of businesses into two independent divisions; an integrated Transport & Logistics division and an Energy division. This will ensure focus on driving synergies and developing new products and services in Transport & Logistics as well as focus on separately developing structured solutions for our oil and oil related businesses.
The Board of Directors continues to focus on ensuring a strong capital structure and defined key financial ratio targets in line with an investment grade rating.
Chairman of the Board, Michael Pram Rasmussen said: “The industries in which we are operating are very different, and both face very different underlying fundamentals and competitive environments. Separating our transport and logistics businesses and our oil and oil related businesses into two independent divisions will enable both to focus on their respective markets. This will increase the strategic flexibility by enhancing synergies between businesses in Transport & Logistics, while ensuring the agility to pursue individual strategic solutions for the oil and oil related businesses.”
Transport & Logistics – focus on growth and synergies
Transport & Logistics will consist of Maersk Line, APM Terminals, Damco, Svitzer and Maersk Container Industry based on a one company structure with multiple brands. The mission of these businesses is to enable and facilitate global supply chains and provide opportunities for our customers to trade globally.
Since 2008, the Group has focused on building a lean transparent global conglomerate with each business unit operating on arm’s-length principles. Managing and operating the business activities in Transport & Logistics in a more integrated manner will enable profitable growth through stronger collaboration and disciplined capital allocation.
The strategy of Transport & Logistics rests on three pillars to deliver long term profitable growth:
- Product offering and customer experience will be improved based on the combined capabilities of Maersk Line, APM Terminals and Damco in combination with industry leading digital solutions
- By operating as one entity, Transport & Logistics will be able to harvest synergies and optimise operations to secure the industry’s most effective and reliable network
- Strong capital discipline and better utilisation of assets will be ensured. When making investments, acquisitions will be the preferred option
The strategies for the individual businesses will be adjusted accordingly:
- Maersk Line will grow market share organically and through acquisitions
- APM Terminals will focus on cost and utilisation and increase its focus on operational excellence to enhance returns and deliver improved service to existing and new 3rd party customers
- Damco and Maersk Line will collaborate to deliver new innovative customer solutions supported by significant investments into digital technology
- Svitzer will pursue a growth strategy based on its market leading position and synergies with APM Terminals and Maersk Line will increasingly be explored
- Maersk Container Industry will collaborate with Maersk Line on technology development and efficient production planning
Commercial as well as cost synergies will be unlocked by better utilisation of existing assets and by the development of new digital solutions. We expect to deliver revenue growth, cost efficiency and margin improvements. The estimated synergies are expected to generate up to two percentage points ROIC improvement over a period of three years. No material synergies are expected in 2016.
Reorganisation and communication
Financial reporting for the new structure will be effectuated from the financial year 2017.
The registered management of A.P. Møller – Mærsk A/S will be composed and changed as follows:
- Søren Skou will continue as Group CEO of A.P. Møller – Mærsk A/S and CEO of the Transport & Logistics division
- Claus V. Hemmingsen will be appointed Group Vice CEO of A.P. Møller – Mærsk A/S effective on October 1 and CEO for the Energy division
- Jakob Stausholm will be appointed Group CFO of A.P. Møller – Mærsk A/S as of December 1. On the same date, Group CFO Trond Westlie will step down as member of the registered management and leave the Group
- Kim Fejfer will step down as member of the registered management effective on October 1 and as CEO of APM Terminals effective on November 1 when he will also leave the Group