Classification: Public
Maersk A/S
Esplanaden 50, DK
-
1263 Copenhagen K
CVR
-
nr. 32 34 57 94
Annual report
2022
The Annual Report was presented and adopted at the
Annual General Meeting of the Company on 2
nd
June 2023.
Chairman of the meeting
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Classification: Public
Maersk A/S Annual report 2022
Contents
MANAGEMENT’S REVIEW ............................................................................................................... 3
COMPANY DETAILS .................................................................................................................... 3
FINANCIAL HIGHLIGHTS AND KEY FIGURES ................................................................................. 4
MAERSK A/S’ MAIN ACTIVITIES .................................................................................................. 5
FINANCIAL REVIEW ................................................................................................................... 5
OUTLOOK................................................................................................................................7
RISKS.....................................................................................................................................7
SUSTAINABILITY AND GENDER COMPOSITION OF MANAGEMENT ………………………………………………………….7
EVENTS AFTER THE BALANCE SHEET DATE .................................................................................8
FOREIGN BRANCHES ................................................................................................................8
FINANCIAL STATEMENTS ............................................................................................................... 9
Income statement .................................................................................................................... 9
Statement of comprehensive income .......................................................................................... 9
Balance sheet ........................................................................................................................ 10
Cash flow statement ............................................................................................................... 12
Statement of changes in equity ................................................................................................ 13
Notes to the financial statements ............................................................................................. 14
Statement by the Board of Directors and the Executive Board ...................................................... 43
Independent auditors' report ................................................................................................... 44
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Classification: Public
Maersk A/S Annual report 2022
MANAGEMENT’S REVIEW
COMPANY DETAILS
Name
Address
CVR no.
Established
Registered office
Financial year
32 34 57
94
4 December 2013
1 January – 31 December
Website
Board of Directors
Vincent Clerc, Chairman
Patrick Jany
Caroline Sundorph Pontoppidan
Executive Board
Patrick Jany, CEO
Auditors
Annual General Meeting
Annual general meeting will be held on 2
nd
June 2023
Page 4 of 45
Classification: Public
Maersk A/S Annual report 2022
FINANCIAL HIGHLIGHTS AND KEY FIGURES
USD million 2022
2021
2020
2019
2018
Key figures*
Revenue 62,465
40,737
24,783
24,888
24,688
Profit before depreciation and impairment losses 31,191
16,112
4,841
3,369
1,599
Profit before financial items 25,854
13,181
2,145
469
-88
Profit for the year 28,811
14,408
1,399
-331
-450
Non-current assets 34,045
30,226
26,006
27,800
24,403
Current assets 43,872
14,316
8,124
3,740
4,381
Total assets 77,917
44,542
34,130
31,540
28,784
Share capital 82
82
82
82
82
Equity 55,923
26,912
9,389
5,114
5,402
Provisions 572
584
440
360
377
Non-current liabilities other than provisions 8,772
6,881
16,968
17,456
14,282
Current liabilities other than provisions 12,650
10,165
7,333
8,610
8,723
Cash flows from operating activities 30,917
15,107
4,408
4,357
1,272
Net cash flows from investing activities 2,351
1,286
385
175
-517
Of which property, plant and equipment -1,387
-1,532
-191
-386
-948
Cash flows from financing activities -33,215
-16,374
-4,797
-4,594
-727
Net cash flow for the year 53
19
-4
-62
28
Financial ratios**
Operating margin 41%
32%
9%
2%
0%
Solvency ratio 72%
60%
28%
16%
19%
Return on equity 70%
79%
19%
-6%
-8%
Average number of employees 11,293
10,807
10,405
9,743
9,202
*Presented key figures related to Maersk A/S legal entity and are not consolidated figures. IFRS 16 was
implemented in 2019, therefore the figures for 2018 do not follow the same accounting practice.
**Definitions of financial ratios are as below:
Operating margin: Profit before financial items (EBIT) / Revenue
Solvency ratio: Equity at year end / Total equity and liabilities at year end
Return on equity: Profit for the year after tax / Average equity
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Classification: Public
Maersk A/S Annual report 2022
MAERSK A/S’ MAIN ACTIVITIES
Maersk A/S’ and its subsidiaries’ primary activities are to perform shipping, chartering, trade and service,
other transport business and industrial activities in Denmark and abroad, investment in fixed assets and
financing, as well as other related activities. The A.P. Moller - Maersk group is one of the world’s largest
container shipping companies, operating 318 owned vessels and 389 chartered vessels at the end of the
year, and known for reliable, flexible and eco-efficient services.
Maersk A/S is part of A.P. Moller – Maersk, an integrated transport & logistics company with multiple brands
that is a global leader in container shipping and ports.
FINANCIAL REVIEW
Maersk A/S (parent company and branches) generated revenue of USD 62,465m and made a profit of USD
28,811m compared to revenue of USD 40,737m and profit of USD 14,408m in 2021.
Loaded volumes were 9% lower than 2021 and freight rates on average 39% higher than previous year.
Bunker price as well as bunker consumption went up in 2022; the bunker price and bunker consumption,
combined leading to 50% higher bunker costs. Container handling costs and network costs (excl. bunker)
increased by 4% and 5% respectively, as compared to 2021. Altogether, operating costs were 14% higher
than 2021.
Realised EBITDA of USD 31bn was considerably higher than the estimated USD 20-22bn in last year's
annual report. The overall reason was that the anticipated shift in the economy and demand happened later
than expected with rates remaining at a very high level through most of the year and not only for the first
half of 2022.
The Market
The economic outlook shifted during 2022. After a strong start to the year, new shocks weighed on economic
activity and supply chains. High inflation, inventory build and a rebalancing towards spending on services
reduced demand for goods bringing global trade back to pre-pandemic levels.
Economic activity and global trade slowed in 2022 after a strong rebound from the pandemic. A series of
new shocks and market dynamics weighed on trade and supply chains. A large part of Russian and Ukrainian
imports and exports were eliminated from the market; consumers began to normalise their spending on
goods and shifted towards services, while inflation and higher interest rates eroded purchasing power;
China’s property market weakened, and lockdowns continued to impact activity; and inventory correction
in Europe and the United States impacted the demand for ocean and airfreight services. Demand for road
transportation remained better supported in the USA and Europe, and warehousing utilisation remained
high throughout the year.
In 2023, economic and trade growth are expected to be weak. Demand for consumer goods is slowing, and
the inventory correction is weighing on the near-term outlook. Geopolitics remain challenging, with some
long-standing trade relationships being reconfigured. The result is an emerging fundamental reset in which
some supply chains are increasingly shaped by political choice.
Global economic activity made a strong recovery in 2021 (6.0% y-o-y) but slowed to 3% in 2022 (Oxford
Economics January 2023 estimate), as the rebound from the pandemic faded. Additionally, the war in
Ukraine and lockdowns in China created new disruptions and strains during the year. Companies and
consumers experienced levels of price inflation not seen since the 1970s, with headline consumer price
inflation reaching 9% in the USA (June) and 10.6% in the Eurozone (October), and producer price inflation
reaching above 40% in Europe. Many central banks increased interest rates to contain price inflation and
slowing economic activity became evident in the second half of 2022 in most major economies. Central
banks in China and Japan were an exception, maintaining an accommodative stance to support growth.
Solid labour markets and savings accumulated during the pandemic supported overall consumer demand
despite these new headwinds. However, spending on goods began to slow during H2 2022 as the
composition of spending shifted toward services, and the exceptionally strong demand for goods by
consumers in the United States began to fade. Alongside, the inventory correction turned into a headwind
in H2 2022. Inventories were run down during 2020-21, supporting trade activity as manufacturers and
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Classification: Public
Maersk A/S Annual report 2022
retailers struggled to meet a heavy order flow. With economic activity slowing and supply chain bottlenecks
easing during 2022, businesses started to accumulate inventory resulting in a drag on trade activity.
Demand for logistics services followed the macroeconomic environment during 2022. Global container sea
freight volumes declined by 4.3% in 2022, and by the third quarter they were below 2019 Q3 levels. Air
cargo volumes (CTK) declined by 7.4% from January to November compared to 2021 and were also below
the levels seen over the same period of 2019. According to Drewry, port throughput volumes declined by
0.5% in 2022, weaker than the 7.1% in 2021. By contrast, vacancy rates for industrial and logistics
warehousing remained low by historical standards (3.3% in the USA).
Pressure on global supply chains eased during the year resulting in improved reliability for Ocean logistics.
The share of the global container fleet absorbed by delays declined from almost 14% in January 2022 to
6.7% in October, according to Sea-Intelligence. Nonetheless, inland logistics remained challenged in some
regions and ports because of several factors: ongoing truck driver and equipment shortages, redirected
cargos bound for Russia, low water levels in parts of Europe, high inventory levels clogging-up ports and
warehouses, industrial action, flooding in parts of Asia and lockdowns in China.
Demand developments were not uniform across customer verticals. The main shift occurred in retail and
technology products where demand was exceptionally strong during the pandemic pushing container
volumes well above their pre-pandemic trend. During 2022, consumers reduced their spending on these
products and container volumes began to normalise. By contrast, other verticals such as lifestyle products
did not experience the same overconsumption and container volumes progressed in line with the pre-
pandemic trend. The automotive sector continued to be impacted by supply chain problems and a shortage
of semiconductors, as well as consumer hesitancy, resulting in container volumes being well below trend.
From a sales channel perspective, e-commerce penetration also began to normalise during 2022,
underscoring the need for nimble omnichannel logistics solutions.
Container volumes contracted across most ocean routes in 2022 compared to 2021. Volumes into and out
of Europe weakened because of the Russian invasion of Ukraine that resulted in a direct loss of trade with
Russia and in a deterioration of the European economic environment. Volumes into Far-East Asia
deteriorated because of weak domestic demand and COVID-19 policy in China. North America import
volumes also declined hand-in-hand with the economic slowdown, shifting consumer demand and the
inventory correction. Yet, container volumes remained above 2019 levels in several regions, including Latin
America, Oceania, intra-Asia and intra-America.
The normalisation of demand was felt most keenly in the ocean freight rate market during H2 2022. The
adjustment across other transport modes was more subdued reflecting differing demand and supply
dynamics. Spot ocean freight rates, as measured by the Shanghai Containerized Freight Index (SCFI), were
on average 10% lower in 2022 compared to 2021, but still four times higher than 2019.
On the supply side of the ocean market, nominal capacity expanded by 4% in 2022 and the supply-demand
balance deteriorated during the year. In H1 2022, supply side bottlenecks and the composition of demand
led to a growing number of blank sailings and a fleet deployment increasingly skewed towards longer East-
West trades relative to shorter intra-regional trades. This kept effective supply growth below head-haul
demand growth, supporting ocean rates. Combined with weakening demand, the supply-demand balance
deteriorated in H2 2022.
Looking forward to 2023, global demand for containers is expected to decline. On the supply side of the
container market, growth is expected to be significant. According to Alphaliner 362 vessels with a nominal
capacity of 2,482k TEU are scheduled for delivery in 2023. This corresponds to around 10% of the current
nominal fleet. Although scrapping and measures taken to comply with incoming regulation from the
International Maritime Organization will absorb some of the incoming capacity, the supply-demand balance
is likely to deteriorate in 2023.
Strategy review
Maersk is on a transformation journey to become the global integrator of container logistics, connecting,
and simplifying our customers’ supply chains.
Global trade is a key contributor to economic development, enabling exporters to sell their products in all
relevant markets and importers to source goods and parts from the most competitive suppliers around the
world. Container logistics play a significant role in global trade by reducing trade barriers through reducing
the cost of transportation. Maersk has played a vital role in container logistics for more than 40 years and
Page 7 of 45
Classification: Public
Maersk A/S Annual report 2022
takes pride in this contribution to global growth and wealth. Maersk’s strategy is to accelerate that
contribution by reducing complexity and waste along the global containerised supply chains. Maersk has
designed the strategy around its customers’ needs and pain points, hereby creating a market opportunity
that will deliver value to customers as well as profitable growth and improved performance for Maersk.
The strategy for A.P. Moller – Maersk involves the activities of Maersk A/S. It is the view of Management
that realising on the vision and strategy outlined for A.P. Moller – Maersk will bring benefits to Maersk A/S.
OUTLOOK
Global economic growth is expected to be weak in 2023, around 1.5%, with major economies going into
recession. Consumer spending growth will slow further and the overconsumption of goods during the
pandemic period risks a sharp correction in demand. China’s economy is also struggling, adding to the
business challenges posed by COVID-19. And many emerging markets are vulnerable, having entered this
environment with high debt levels and key dependencies on energy and food imports. In this uncertain
context, the global ocean container market growth is expected to be in the range of -2.5% to +0.5% in
2023. The Company expects to grow in line with market.
Alongside, market-based trade policies are being challenged more forcefully than at any time in the past
60 years. Going forward, geopolitical relationships are set to remain tense, and some supply chains will be
shaped more by political choice than by economics, and by the increasing impact of climate change. The
totality of uncertainty facing customers’ supply chains and logistics providers is significant and greater than
any single risk factor would indicate by itself.
Other fundamental drivers of the logistics landscape are also changing. Technology is creating new demands
and opportunities, channel shifts are accelerating, and the quest for resilience and ESG compliance are
becoming paramount. As part of the response, supply chains are starting to be rewired through nearshoring
and diversification of sourcing, and customers seek closer collaboration and long-term relationships to
reduce undue complexity and shared responsibility for operating their supply chains.
For 2023, EBITDA at USD 4-6bn is expected. The guidance is based on the expectation that inventory
correction will be complete by the end of H1, leading to a more balanced demand environment. The financial
performance depends on several factors subject of uncertainties given macroeconomic conditions, bunker
fuel prices and freight rates.
RISKS
Market risks
The main risks to Maersk A/S’s performance and strategy execution relate to operational performance, cost
inflation as well as a larger than expected downturn in the container market. In a particular structural
supply/demand gap, coupled with the significant exposure that Maersk A/S has to the Asia-Europe trade
where the larger vessels are increasingly deployed, leaves the Company vulnerable to substantial
fluctuations in freight rates and commercial losses.
Maersk A/S is mitigating these risks by designing a competitive network, being a cost leader in the industry,
continuing to simplify the organisation and optimising the network utilisation through alliances and vessel
sharing agreements.
Financial risks
Financial risks are described in note 15 of the financial statements.
SUSTAINABILITY AND GENDER COMPOSITION OF MANAGEMENT
An independently assured Sustainability Report for 2022 is published which provides detailed information
on the A.P. Moller – Maersk Group’s sustainability performance and sustainability strategy. The report
serves as the Group’s Communication on Progress as required by the UN Global Compact and ensures
compliance with the requirements of Section 99a of the Danish Financial Statements Act
(Årsregnskabsloven) on corporate social responsibility and reporting on the gender composition of
management.
Page 8 of 45
Classification: Public
Maersk A/S Annual report 2022
The report is available on:
https://www.maersk.com/sustainability/reports-and-resources
https://investor.maersk.com/static-files/8e9851f1-bcd2-425b-a588-7a39f0c6e302
EVENTS AFTER THE BALANCE SHEET DATE
A.P. Moller - Maersk announced a new organisational structure and a new Executive Leadership Team
effective from 1 February 2023 following the appointment of Vincent Clerc as CEO of A.P. Moller - Maersk
effective from 1 January 2023.
On 27 January 2023 it was announced to move towards a singular and unified Maersk brand. The Hamburg
Süd brand value was impaired in Q1 2023, resulting in a write-down of USD 282m to zero value.
At an extraordinary general meeting 6 February 2023, it was decided to distribute an extraordinary dividend
of USD 10,000m to the Company's sole shareholder, A.P. Møller - Mærsk A/S. The dividend was settled in-
kind same date.
None of the events have impact on 2022 financials.
Reference is made to note 22 of the financial statements.
FOREIGN BRANCHES
The Company has shipping activities in USA, Canada, New Zealand, Australia and Japan through the
branches Sealand Branch U.S.A., Maersk Line Branch Canada, Maersk Line Branch New Zealand, Maersk
Line Branch Australia and Maersk Line Branch Japan.
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Classification: Public
Maersk A/S
Income statement
Amounts in USD million
Note 2022 2021
1
Revenue 62,465 40,737
1
Operating costs 31,274 24,625
Profit before depreciation and impairment losses 31,191 16,112
4,5,6
Depreciation and impairment losses, net 5,538 3,027
Gain on sale of companies and non-current assets, etc., net 201 96
Profit before financial items 25,854 13,181
2
Dividends received 3,734 2,814
2
Financial income 582 73
2
Financial expenses 885 1,009
2 Impairment of financial assets 50 592
Profit before tax 29,235 14,467
3
Tax 424 59
Profit for the year 28,811 14,408
Statement of comprehensive income
Amounts in USD million
Note 2022 2021
Profit for the year 28,811 14,408
Cash flow hedges
Value adjustment of hedges for the year -25 -92
13
Reclassified to income statement 123 -35
Total items that have been or may be reclassified to the income statement 98 -127
Actuarial gain/loss 2 2
Total items that will not be reclassified to the income statement 2 2
Other comprehensive income, net of tax 100 -125
Total comprehensive income for the year
Annual report 2022
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Classification: Public
Maersk A/S Annual report 2022
Balance sheet 31 December
Amounts in USD million
Note
2022
2021
4
Intangible assets 1,195 1,325
5
Property, plant and equipment 13,545 13,405
6
Right-of-use assets 12,519 9,228
7
Investments in subsidiaries 6,298 6,203
Other non-interest bearing receivables, external 470 -
Interest bearing receivables from group related entities 7 13
13
Derivatives 11 4
Financial non-current assets 6,786 6,220
8
Deferred tax - 48
Total non-current assets 34,045 30,226
9
Inventories 926 889
15
Trade receivables 4,802 5,243
Tax receivables 1 92
14
Interest bearing receivables from group related entities 36,785 7,521
13
Derivatives 52 -
Other receivables 114 138
Other receivables from subsidiaries 181 157
Prepayments 991 238
Receivables 42,926 13,389
Cash and bank balances 20 38
Total current assets 43,872 14,316
Total assets
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Classification: Public
Maersk A/S Annual report 2022
Balance sheet 31 December
Amounts in USD million
Note
2022
2021
10
Share capital 82 82
Reserves 55,841 26,830
Total equity 55,923 26,912
11
Lease liabilities, non-current 8,598 6,809
12
Provisions 254 223
13
Derivatives 11 1
Tax payables 118 71
Other payables 45 44
Other non-current liabilities
Total non-current liabilities
11
Lease liabilities, current 4,322 2,782
11
Interest bearing debt to group related entities 2,263 1,608
12
Provisions 318 361
Trade payables 5,494 5,189
13
Derivatives 5 45
Tax payables 173 114
Other payables 282 285
Other payables to subsidiaries 111 98
Other current liabilities 6,383 6,092
Total current liabilities 12,968 10,482
Total liabilities
Total equity and liabilities
Page 12 of 45
Classification: Public
Maersk A/S
Cash flow statement
Amounts in USD million
Note 2022 2021
Profit before financial items 25,854 13,181
4,5,6 Depreciation and impairment losses, net 5,538 3,027
Gain/loss on sale of companies and non-current assets, etc., net -201 -96
18 Change in working capital -248 -1,148
Other non-cash items
Cash from operating activities before tax 31,085 15,179
Taxes paid/received -168 -72
Cash flow from operating activities 30,917 15,107
18 Purchase of property, plant and equipment -1,637 -1,707
Sale of property, plant and equipment 250 175
7 Acquisition of and capital increases in subsidiaries and activities* -6 -33
7 Sale of subsidiaries and activities 10 37
Movements in interest bearing loans to/from subsidiaries, etc., net** -28,605 -923
Dividends received 3,734 2,814
Cash flow used for investing activities -26,254 363
Repayment of borrowings - -12,380
Repayment of lease liabilities -4,363 -2,083
Financial income received 481 10
Financial expenses paid -344 -617
Financial expenses paid on lease liabilities -467 -256
Other equity transactions 83 -125
Cash flow from financing activities -4,610 -15,451
Net cash flow for the year
Cash and cash equivalents 1 January 38 15
Currency translation effect on cash and cash equivalents -71 4
Cash and cash equivalents 31 December
Cash and cash equivalents 2022 2021
Cash and bank balances 20 38
Cash and cash equivalents 31 December 20 38
For an analysis of liabilities arising from financing activities, reference is made to note 11.
Annual report 2022
*Acquisition of and capital increases in subsidiaries and activities included USD -78m related to captial increase and USD
72m other transfer of asset from subsidiaries.
** Movements in interest bearing loans to/from subsidiaries, etc., net has been changed from Cash flow from financing
activities to Cash flow from investing activities. Comparative figures are restated.
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Classification: Public
Maersk A/S
Statement of changes in equity
Amounts in USD million
Share Reserve Retained Total
Note capital for hedges earnings equity
2021
Equity at 1 January 2021 82 100 9,207 9,389
Other comprehensive income, net of tax - -127 2 -125
Profit for the year
Total comprehensive income for the year
-127
Contribution from reorganisation under common control -
Hamburg Südamerikanische DG KG
Equity 31 December 2021
-27
2022
Other comprehensive income, net of tax - 98 2 100
Profit for the year - - 28,811 28,811
Total comprehensive income for the year - 98 28,813 28,911
Capital increase - - 118 118
Other equity movements
Equity 31 December 2022
Annual report 2022
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Classification: Public
Maersk A/S
Notes to the financial statements
Page
1 Revenue and operating cost 15
2 Financial income and expenses 16
3 Tax 17
4 Intangible assets 18
5 Property, plant and equipment 19
6 Right-of-use assets 20
7 Investments in subsidiaries 21
8 Deferred tax 22
9 Inventories 23
10 Share capital 24
11 Borrowings and lease liability reconciliation 25
12 Provisions 26
13 Derivatives 27
14 Financial instruments by category 28
15 Financial risks, etc. 29
16 Commitments 33
17 Contingent liabilities 34
18 Cash flow specifications 35
19 Related parties 36
20 Summary of significant accounting policies 37
21 Significant accounting estimates and judgements 40
22 Subsequent events 41
23 Subsidiaries 42
Annual report 2022
Page 15 of 45
Classification: Public
Maersk A/S
Notes to the financial statements
Amounts in USD million
1 Revenue and operating cost
Set out below is the reconciliation of revenue from contracts with customers to the amounts disclosed as total revenue:
2022 2021
Revenue from contracts with customers:
Freight revenue
56,139
35,253
Detention and demurrage fees
4,227
2,280
Others
784
483
Revenue from other sources:
Vessel-sharing and slot charter income
1,217
2,641
Lease income
74
68
Others
24
12
Total revenue
62,465
40,737
2022 2021
Contract balances
Trade receivables
4,588
5,196
Accrued income - contract asset/(liabilities)
77
-50
Set out below is the reconciliation of operating cost by nature to the amounts disclosed as total operating cost:
2022 2021
Bunker costs 6,871 4,507
Terminal costs 8,804 7,396
Intermodal costs 4,307 3,235
Port costs 2,009 1,959
Rent and lease costs 1,812 1,985
Staff costs, incl. reimbursed to related parties 632 621
Other* 6,839 4,922
Total operating costs
31,274
24,625
Remuneration of employees
Wages and salaries 238 244
Pension costs - -
Other social security costs 7 8
Total remuneration of staff directly employed by the Company
245
252
Average number of employees**
The Company's share of fees and remuneration to Management
Fixed base salary 2 1
Short-term incentive 1 1
Long-term incentive 1 1
Total share of fees and remuneration to Management***
4
3
** Average numbers of employees are seafarers directly employed by the Company. A number of seafarers and other staff are
employed by other A.P. Moller - Maersk companies, however, costs are recharged and included in staff costs.
*** The amounts for 2022 are the full amount paid to Management and include services performed for other group companies.
* Fee to auditors appointed at the general meeting has not been disclosed in accordance with section 96 (3) of the Danish Statement
act. It is included in the consolidated financial statements of A.P. Møller - Mærsk A/S.
Annual report 2022
Accrued income included in trade receivables in the balance sheet constitutes contract assets comprising unbilled amounts to customers
representing the Company’s right to consideration for the services transferred to date. Any amount previously recognised as accrued
income is reclassified to trade receivables at the time it is invoiced to the customer.
Under the payment terms generally applicable to the Company’s revenue generating activities, prepayments are received only to a
limited extent. Typically, payment is due upon or after completion of the services.
There were no significant changes in accrued income and deferred income during the reporting period.
Bad debt provision disclosed in note 15 relate to trade receivables arising from contracts with customers.
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Classification: Public
Maersk A/S
Notes to the financial statements
Amounts in USD million
2 Financial income and expenses
2022 2021
Interest expenses on liabilities* 669 971
Interest income on loans and receivables** 481 10
Net interest expenses 188 961
Exchange rate gains on bank balances, borrowings and working capital 45 63
Exchange rate losses on bank balances, borrowings and working capital 137 26
Net foreign exchange gains/losses -92 37
Fair value gains from derivatives 26 -
Fair value losses from derivatives 49 12
Net fair value gains/losses -23 -12
Dividends received from subsidiaries and associated companies*** 3,734 2,814
Total dividends income 3,734 2,814
Impairment losses from investments in subsidiaries **** 50 592
Financial net 3,381 1,286
Of which:
Dividends 3,734 2,814
Financial income 582 73
Financial expenses 885 1,009
Impairment of financial assets 50 592
* Including USD 170m (USD 609m) to group companies.
** Including USD 481m (USD 10m) from group companies.
For an analysis of gains and losses from derivatives, reference is made to note 13.
Annual report 2022
**** Impairment losses to recoverable amount relate to fair value adjustment of investments predominantly in Maersk Line UK
Limited, Maersk Ship Management and Dovana Holding AB (KGH). (2021: Maersk Line UK Limited and Hambürg
Sudamerikanische Dampfschifffahrts-Gesellschaft A/S and Co KG).
***Dividend mainly received from Sealand Maersk Asia Pte. Ltd. - USD 1.3bn, A.P. Moller Singapore Pte. Ltd. - USD 1.3bn and
Maersk Shipping Hong Kong Limited - USD 800m. (2021: mainly from Sealand Maersk Asia Pte. Ltd. - USD 1.5bn, A.P. Moller
Singapore Pte. Ltd. - USD 500m and Maersk Shipping Hong Kong Limited - USD 300m).
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Classification: Public
Maersk A/S
Notes to the financial statements
Amounts in USD million
3 Tax
2022 2021
Tax recognised in the income statement
Current tax on profit for the year
131
-88
Adjustment for current tax of prior periods 70 79
Total current tax 201 -9
Recognition of previous unrecognised deferred tax asset 48 -48
Total deferred tax 48 -48
Total income Tax 249 -57
Tonnage and freight tax 175 116
Total tax 424 59
Tax reconciliation
Profit before tax 29,235 14,467
Income subject to Danish and foreign tonnage taxation, etc. -29,324 -15,373
Profit before tax, adjusted -89 -906
Tax using the Danish corporation tax rate (22%) -19 -199
Adjustment to previous years' taxes 69 79
Effect of other income taxes distinct from corporation tax 106 66
Non-deductible expenses 877 842
Non-taxable dividends, etc. net -832 -749
Recognition of previous unrecognised deferred tax asset 48 -48
Other differences, net - -48
Total income tax 249 -57
Annual report 2022
Page 18 of 45
Classification: Public
Maersk A/S
Notes to the financial statements
Amounts in USD million
4 Intangible assets
Cost
1 January 2021
-
379
84
463
Additions
316
532
104
952
31 December 2021
316
911
188
1,415
Additions
-
-
28
28
Disposal
-
-
-60
-60
31 December 2022
316
911
156
1,383
Amortisation and impairment losses
1 January 2021
-
58
5
63
Amortisation
-
19
8
27
31 December 2021
-
77
13
90
Amortisation
-
68
30
98
31 December 2022
-
145
43
188
Carrying amount:
31 December 2021
316
834
175
1,325
31 December 2022
316 766 113 1,195
Impairment analysis
Goodwill and customer relations was transferred in 2021 together with other assets and liabilities from the fully owned subsidiary
Hamburg Südamerikanische DG KG.
The outcome of impairment tests is subject to estimates of the future development of freight rates and volumes, oil prices and the
discount rates applied.
Management determines the key assumptions for each impairment test by considering past experience as well as market analysis and
future expectations based on supply and demand trends. The future development in freight rates is an uncertain and significant factor
with the Company's financial results directly affected by fluctuations in container freight rates. Freight rates are expected to be
influenced by the timing of when the current supply chain bottlenecks will normalise, as well as by regional and global economic
environments, trade patterns, and by industry-specific trends in respect of capacity supply and demand. There is little visibility into
when the capacity bottlenecks throughout the supply chain which have driven up the short-term freight rates will recede.
Cash flow projection is based on forecasts as per Q3 2022, covering five-year business plans for 2023-27. Management has applied an
assumption of growth in volumes based on a calculated terminal value with growth equal to the expected economic growth of 2.5% p.a.
in 2022, based on pressure on freight rates, and continued cost efficiency. A discount rate of 9.2% (7.2%) p.a. after tax has been
applied. The impairment test continues to show headroom from the value in use to the carrying amount. Management is of the opinion
that the assumptions applied are sustainable.
IT software Total
The brand name right was acquired in 2017 from a wholly owned subisidiary, subsequent to Maersk A/S's acquistion of Hamburg Süd.
The transaction price equals the cost price of the addition in 2017. Transaction price was based on, and is equal to, the fair value
established under the acquisition method applied for the consolidated accounts of A.P. Møller - Mærsk A/S, upon obtaining control over
Hamburg Süd. The fair value of the brand has been measured using the relief from royalty method, in which management, based on an
analysis has assessed a royalty rate which an independent third party would charge for the use of the brand. Besides the royalty rate,
the main input value driver is estimated future revenue. The useful life of brand is estimated at 20 years. The valuation of the
intangible asset reflects a market participants view applying a discount rate of 9% (2021: 9%). Management is of the opinion that the
assumptions, applied in methodology as described above, are sustainable at the balance sheet date. The carrying value of the brand
name has been assessed for impairment as part of the annual impairment test, performed at the balance sheet date, for non-current
assets constituting the CGU (as elaborated in section "Significant accounting estimates and judgements" of this annual report).
Annual report 2022
Customer
relations &
brand Name
Goodwill
Page 19 of 45
Classification: Public
Maersk A/S Annual report 2022
Notes to the financial statements
Amounts in USD million
5 Property, plant and equipment
Production Construction
Ships, facilities and work in progress
containers, equipment, and payment on
etc. etc. account
Cost
1 January 2021
25,225
9
53
25,287
Additions
1,639
1
500
2,140
Disposal
-1,044
-
-1
-1,045
Transfer
131
-
-70
61
31 December 2021
25,951
10
482
26,443
Additions
785
-
457
1,242
Disposal
-460
-
-
-460
Transfer
88
-1
-24
63
31 December 2022
26,364
9
915
27,288
Depreciation and impairment losses
1 January 2021
12,881
6
-
12,887
Depreciation
994
1
-
995
Disposal
-881
-
-
-881
Transfer
38
-1
-
37
31 December 2021
13,032
6
-
13,038
Depreciation
1,074
1
-
1,075
Disposal
-390
-
-
-390
Transfer 20 - - 20
31 December 2022
13,736
7
-
13,743
Carrying amount:
31 December 2021
12,919
4
482
13,405
31 December 2022
12,628
2
915
13,545
Leases as lessor
Property, plant and equipment includes assets with carrying amount of USD 189m (USD 342m) that are leased out as part of
the Company's activities, mainly related to container vessels.
The future lease income is USD 154m (USD 104m) of which USD 90m (USD 65m) is expected within one year, USD 53m (USD 25m)
in second year and USD 11m (USD 14m) above three years.
Pledges
Ships, containers, etc. with a carrying amount of USD 619m (USD 663m) have been pledged as security for loans of
USD 298m (USD 298m).
Total
Page 20 of 45
Classification: Public
Maersk A/S Annual report 2022
Notes to the financial statements
Amounts in USD million
6 Right-of-use assets
Ships, Concession Real estate Total
containers, agreements and other
etc. leases
Right-of-use assets
1 January 2021
4,460
1,118
12
5,590
Additions
5,790
10
7
5,807
Disposal
-139
-1
-
-140
Depreciation cost
-1,894
-107
-4
-2,005
Transfer to owned assets, etc.
-23
-
-1
-24
31 December 2021
8,194
1,020
14
9,228
Additions
7,864
28
-
7,892
Disposal
-189
-
-
-189
Depreciation cost
-4,280
-82
-3
-4,365
Transfer to owned assets, etc.
-42
-
-5
-47
31 December 2022
11,547
966
6
12,519
Amounts recognised in profit and loss
2022
2021
Depreciation cost on right-of-use assets
4,365
2,005
Interest expenses (included in financial expenses)
467
256
Total recognised in non-operating costs
4,832
2,261
Expenses relating to service elements of leases
1,073
1,025
Expenses relating to short-term leases
633
861
Expenses relating to variable lease payments
102
95
Expenses relating to leases of low-value assets
4
4
Total recognised in operating costs
1,812
1,985
Maturity of lease liabilities is disclosed in note 15, page 32.
Page 21 of 45
Classification: Public
Maersk A/S
Notes to the financial statements
Amounts in USD million
7 Investments in subsidiaries
Investments in
subsidiaries
Cost
1 January 2021 8,144
Acquisition and capital injection* 182
Disposal -37
Return of capital* -946
31 December 2021 7,343
Acquisition and capital injection** 145
31 December 2022 7,488
Impairment losses
1 January 2021 548
Impairment losses 592
31 December 2021 1,140
Impairment losses*** 50
31 December 2022 1,190
Carrying amount:
31 December 2021 6,203
31 December 2022
6,298
A list of directly owned subsidiaries is included in note 23.
Annual report 2022
*** Reference is made to note 2 for details.
*Acquisition and capital injection in 2021 comprises capital injections to various subsidiaries, mainly Maersk Line Agency Holding
A/S. Safmarine MPV N.V. was disposed internally. Return of capital in 2021 comprises of a return of capital from Hambürg
Sudamerikanische Dampfschifffahrts-Gesellschaft A/S and Co KG. The return of capital was on a non-cash basis and is hence not
reflected in the cash flow statement.
**Acquisition and capital injection in 2022 mainly comprises capital injections to Dovana Holding AB (KGH) of USD 98m and to Frey
P/S of USD 35m.
Page 22 of 45
Classification: Public
Maersk A/S
Notes to the financial statements
Amounts in USD million
8 Deferred tax
Recognised deferred tax assets and liabilities are attributable to the following:
Assets Liabilities Net assets
2022
2021
2022
2021
2022
2021
Tax loss carryforwards - 48 - - - 48
Total - 48 - - - 48
Change in deferred tax, net during the year: 2022 2021
1 January 48 -
Recognised in the income statement -48 48
31 December
-
48
Tax losses for which no deferred tax asset has been recognised amount to USD 86m (USD 86m).
Annual report 2022
Page 23 of 45
Classification: Public
Maersk A/S
Notes to the financial statements
Amounts in USD million
9 Inventories
2022 2021
Bunker 870 841
Other consumables 56 48
Total 926 889
Annual report 2022
Page 24 of 45
Classification: Public
Maersk A/S Annual report 2022
Notes to the financial statements
Amounts in USD and DKK where so indicated
10 Share capital
No. of shares Nominal value Nominal value Nominal value Nominal value
DKK per share
USD per share
DKK
USD
01 January 2018 500,000 500,000,000 81,689,320
Issue of shares - - - - -
31 December 2018
500,000
500,000,000
81,689,320
Issue of shares - - - - -
31 December 2019
500,000
500,000,000
81,689,320
Issue of shares - - - - -
31 December 2020
500,000
500,000,000
81,689,320
Issue of shares - - - - -
31 December 2021
500,000
500,000,000
81,689,320
Issue of shares - - - - -
31 December 2022
500,000
500,000,000
81,689,320
All shares are fully issued and paid up. All shares carry the same rights.
A.P. Møller og Hustru Chastine Mc-Kinney Møllers Fond til almene Formaal is the ultimate controlling shareholder.
Shareholder disclosure subject to section 104 in the Danish Financial Statements Act:
Share Votes
capital
A.P. Møller - Mærsk A/S, Copenhagen, Denmark 100% 100%
Dividend
Capital management
The controlling party is A.P. Møller - Mærsk A/S, Copenhagen, Denmark through 100% ownership of the voting rights, and who
prepares consolidated financial statements.
To maintain or adjust the capital structure, the Company may declare dividend payment, return capital or issue new shares with the
objective of supporting business. Dividend payments are made when Managemet assesses that capital is sufficient.
The capital structure of the Company consists of net debt (borrowings and lease liabilities after deducting bank balances) and equity of
the Company (comprising share capital and retained earnings). The Company is not subject to any externally imposed capital
requirements.
The Board of Directors proposes a dividend to the sole shareholder of USD 33,000m. Together with extraordinary dividend of USD
10,000m declared on 6 February 2023, total dividend distributed in 2023 amounts to USD 43,000m.
Page 25 of 45
Classification: Public
Maersk A/S Annual report 2022
Notes to the financial statements
Amounts in USD million
11 Borrowings and lease liability reconciliation
Net debt Cash flow Additions Disposals Foreign Other Net debt
as at exchange changes as at
31 December movements 31 December
2021
2022
Debt to group related entities 1,608 653 - - - 2 2,263
Lease liability 9,591 -4,363 7,893 -186 -11 -4 12,920
Total borrowings 11,199 -3,710 7,893 -186 -11 -2 15,183
Of which:
Classified as non-current 6,809 8,598
Classified as current 4,390 6,585
The cash flow from investing activities, as per the cash flow statement, includes a net cash flow of USD -699m related to interest
bearing receivables from subsidiaries and is not included in the reconciliation presented above.
Net debt Cash flow Additions Disposals Foreign Other Net debt
as at exchange changes as at
31 December movements 31 December
2020 2021
Debt to group related entities 13,968 -12,380 20 - - - 1,608
Lease liability 6,013 -2,083 5,817 -147 -9 - 9,591
Total borrowings 19,981 -14,463 5,837 -147 -9 - 11,199
Of which:
Classified as non-current 16,896 6,809
Classified as current 3,085 4,390
The cash flow from investing activities, as per the cash flow statement, includes a net cash flow of USD -898m related to interest
bearing receivables from subsidiaries and is not included in the reconciliation presented above.
Page 26 of 45
Classification: Public
Maersk A/S Annual report 2022
Notes to the financial statements
Amounts in USD million
12 Provisions
Legal dis- Other Total
putes, etc.
1 January 2022 1 440 143 584
Provision made 1 220 71 292
Amount used -1 -77 -95 -173
Amount reversed - -95 -18 -113
Exchange rate adjustment - -18 - -18
31 December 2022 1 470 101 572
Classified as non-current 1 250 3 254
Classified as current - 220 98 318
1 470 101 572
Restructuring includes provisions for decided and publicly announced restructurings. Legal disputes, etc., include among other things
indirect tax and duty disputes. Other primarily includes provisions for warranties and onerous contracts.
Restructuring
The difference between the nominal amount and the discounted amount, considering the non-current amount of provisions, is
considered immaterial.
Reversals of provisions primarily relate to legal disputes and duty disputes and contractual disagreements, which are recognised in the
income statement under operating costs.
Page 27 of 45
Classification: Public
Maersk A/S Annual report 2022
Notes to the financial statements
Amounts in USD million
13 Derivatives
The Company's activities expose it to the financial risks of changes in foreign currency exchange rates and
interest rates. The Company enters into a variety of derivative financial instruments to manage its exposure
to foreign currency, including mainly currency risks related to recognised and unrecognised transactions.
Fair values 31 December: 2022 2021
Non-current receivables 11 4
Current receivables 52 -
Non-current liabilities -11 -1
Current liabilities -5 -45
Assets, net
47
-42
The fair value of derivatives held at the balance sheet date are allocated by type as follows:
Cash Held for Cash Held for
flow trading flow trading
hedges hedges
2022
2022
2021
2021
Currency derivatives, net 57 - -42 -
Total
57
-
-42
-
Cash flow hedges recognised within other comprehensive income are maturing within 12 months from the balance sheet date.
The gains/losses, including realised transactions, are recognised as follows:
2022
2021
Hedging foreign exchange risk on operating costs -123 35
Total reclassified from equity reserve for hedges -123 35
Net gains/losses recognised directly in the income statement -23 -12
Total
-146
23
Currency derivative contracts are entered to hedge operating costs denominated in foreign currencies and are
recognised in the income statement upon maturity.
Interest rate derivatives primarily swap floating for fixed rates on borrowings and are recognised in the
income statement concurrently with the hedged interest expenses.
Page 28 of 45
Classification: Public
Maersk A/S
Notes to the financial statements
Amounts in USD million
14 Financial instruments by category
Financial instruments measured at fair value can be divided into three levels:
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2 - Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices); and
Level 3 - Inputs for the asset or liability that are not based on observable market data.
Carrying Fair Carrying Fair
amount value* amount value*
2022
2022
2021
2021
Carried at amortised cost
Interest bearing receivables from subsidiaries, etc. 36,792 36,792 7,534 7,534
Trade receivables 4,802 5,243
Other receivables (non-interest-bearing) 584 138
Other receivables from subsidiaries, etc. 181 157
Cash and bank balances 20 38
Financial assets at amortised cost 42,379 13,110
Derivatives 63 63 4 4
Total financial assets 42,442 13,114
Carried at amortised cost
Interest bearing debt to group related entities 2,263 2,263 1,608 1,608
Leasing liabilities 12,920 14,582 9,591 9,710
Trade payables 5,494 5,189
Other payables 327 329
Other payables to subsidiaries and associated companies, etc. 111 98
Financial liabilities at amortised cost 21,115 16,815
Derivatives 16 16 46 46
Total financial liabilities 21,131 16,861
* Where no fair value is stated, the amount equals carrying amount
Financial instruments measured at fair value
The fair value of derivatives falling within level 2 of the fair value hierarchy is calculated on the basis of observable market
data for similar instruments as of the end of the reporting period.
Annual report 2022
Financial instruments carried at amortised cost
Fair value of the short-term financial assets and other financial liabilities carried at amortised cost is not materially different from
the carrying amount. In general, fair value is determined primarily based on the present value of expected future cash flows.
Page 29 of 45
Classification: Public
Maersk A/S
Notes to the financial statements
Amounts in USD million
15 Financial risks, etc.
Lease liabilities and interest bearing debt to group related entities
Carrying Next interest rate fixing
by interest rate levels inclusive of interest rate swaps amount 0-1 year 1-5 years 5- years
2022
0-3% 2,267 2,267 - -
3-6% 12,916 4,302 7,028 1,586
Total 15,183 6,569 7,028 1,586
Of which:
Bearing fixed interest 12,919
Bearing floating interest 2,264
2021
0-3% 1,613 1,613 - -
3-6% 9,586 2,760 5,157 1,669
Total 11,199 4,373 5,157 1,669
Of which:
Bearing fixed interest 9,497
Bearing floating interest 1,702
Market risk
Market risk is the risk that changes in market prices, such as bunker price fluctuations, foreign exchange rates and interest rates, will
affect the Company's profit or the value of its holdings of financial instruments. The below sensitivity analyses relate to the position of
financial instruments at 31 December 2022.
The sensitivity analyses for currency risk and interest rate risk have been prepared on the basis that the amount of net debt, the ratio
of fixed to floating interest rates of the debt and the proportion of financial instruments in foreign currencies remain unchanged from
hedge designations in place at 31 December 2022. Furthermore, it is assumed that the exchange rate and interest rate sensitivities
have a symmetric impact, i.e. an increase in rates results in the same absolute movement as a decrease in rates.
Currency risk
The Company’s currency risk arises due to income from shipping activities that are denominated mainly in USD, while the related
expenses are incurred in both USD and a wide range of other currencies including EUR, DKK, SEK, GBP, CNY, INR, NGN, AOA, ZAR,
JPY, THB, MYR, NZD, KRW, BRL, SGD, HKD, ARS, AED, & AUD. Overall the Company has net income in USD and net expenses in other
currencies. As the net income is in USD, this is also the primary financing currency, thus the majority of the Company's borrowings are
in USD.
The main purpose of hedging the Company’s currency risk is to hedge the USD value of the Company’s net cash flow and reduce
fluctuations in the Company’s profit. The Company uses FX contracts and cross-currency swaps, to hedge these risks. The key aspects
of the currency hedging policy are as follows:
• Net cash flows in other significant currencies than USD are hedged using a layered model with a 12-month horizon; and
• Significant capital commitments in other currencies than USD are hedged.
Under the assumption of the effectiveness of the currency hedges, we assess the exposure of a change in the currency rates to be not
significant.
Interest rate risk
The Company has most of its debt denominated in USD, but part of the debt is in other currencies such as EUR, GBP and SEK. Some
loans are at fixed interest rates, while others are at floating interest rates.
The Company strives to maintain a combination of fixed and floating interest rates on its net debt, reflecting expectations and risks.
When applicable, hedging of the interest rate risk is governed by a duration range and is primarily obtained through the use of interest
rate swaps. A general increase in interest rates by one percentage point is estimated, all else being equal, to affect profit before tax
and equity, excluding tax effect, negatively by approx. USD 22m (negatively by approx. USD 17m).
The analysis is made under the assumption that all other variables, in particular foreign currency rates, remain constant.
Annual report 2022
The Company’s activities expose it to a variety of financial risks: currency risk, interest rate risk, credit risk and liquidity risk. The
Company's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise the
potential adverse effects on the Company's financial performance. The Company uses derivative financial instruments to hedge certain
risk exposures.
Risk management is carried out by a central finance department under policies approved by the Board of Directors. The finance
department identifies, evaluates and hedges financial risks in accordance with the policies.
Page 30 of 45
Classification: Public
Maersk A/S
Notes to the financial statements
Amounts in USD million
15 Financial risks, etc. - continued
The table below shows the derivatives the Company has contracted to hedge currency exposure on financial assets and
liabilities that give rise to currency adjustment in the income statement.
Contract Fair value of Contract Fair value of
Forward exchange contracts
amount
2022
net assets
2022
amount
2021
net assets
2021
EUR 712 20 360 19
DKK 286 6 261 9
HKD 210 - 179 1
SGD 185 5 160 1
CAD 169 -5 162 5
MXN 100 10 97 -3
MYR 86 2 71 -1
CNY 81 2 -1 -1
GBP 74 1 1 1
KRW 71 4 56 1
SEK 64 -7 653 4
ZAR 61 1 28 2
BRL 56 3 -56 1
NZD 42 1 31 1
AUD 28 - - -
CLP 23 3 23 1
COP 22 - 23 1
THB 14 - - -
Total 2,284 46 2,048 42
The forward exchange contracts fall due in the period January to December 2023.
Annual report 2022
Page 31 of 45
Classification: Public
Maersk A/S
Notes to the financial statements
Amounts in USD million
15 Financial risks, etc. - continued
Maturity analysis of trade receivables 2022 2021
Receivables not due 3,772 4,623
Less than 90 days overdue 967 609
91-365 days overdue 143 49
More than 1 year overdue 45 48
Receivables, gross 4,927 5,329
Provision for bad debt 125 86
Carrying amount
4,802
5,243
Change in provision for bad debt 2022 2021
1 January 86 65
Provisions made 176 100
Amount used 97 75
Amount reversed 40 18
Transfer from Hamburg Südamerikanische DG KG - 14
31 December
125
86
Annual report 2022
Credit risk
The Company has substantial exposure to financial and commercial counterparties but has no particular concentration of customers
or suppliers. To minimise the credit risk, financial vetting is undertaken for all major customers and financial institutions, adequate
security is required for commercial counterparties and credit limits are set for financial institutions and key commercial
counterparties.
The Company applies the simplified approach to providing the expected credit losses prescribed by IFRS 9, which permits the
use of the lifetime expected loss provision for all trade receivables. To measure the expected credit losses, trade receivables
have been grouped based on shared credit risk characteristics and the days past due. In accordance with IFRS 9, non-due
trade receivables have also been considered for impairment.
Approximately 36% (56%) of the provision for bad debt is related to trade receivables overdue by more than one year.
Other financial assets at amortised cost
Other financial assets at amortised cost comprise loans receivable, finance lease receivables and other receivables. All of these
financial assets are considered to have low credit risk and thus the impairment provision calculated basis of 12 month expected
losses is considered immaterial. The financial assets are considered to be low risk when they have low risk of default and the issuer
has a strong capacity to meet its contractual cash flow obligations in the near term.
The loss allowance provision for trade receivables as at 31 December 2022 reconciles to the opening loss allowance as follows:
Page 32 of 45
Classification: Public
Maersk A/S
Notes to the financial statements
Amounts in USD million
15 Financial risks, etc. - continued
Carrying Cash flows including interest
Maturities of liabilities and commitments amount 0-1 year 1-5 years 5- years Total
2022
Interest bearing debt to group related entities 2,263 2,263 - - 2,263
Financial lease liability 12,920 4,887 8,151 1,544 14,582
Trade payables 5,494 5,494 - - 5,494
Other payables 327 327 - - 327
Other payables to group related entities 111 111 - - 111
Non-derivative financial liabilities 21,115 13,082 8,151 1,544 22,777
Derivatives 16 16 - - 16
Total recognised in balance sheet 21,131 13,098 8,151 1,544 22,793
Lease commitments 15 15
Capital commitments 2,800 2,800
Total 15,913 8,151 1,544 25,609
2021
Interest bearing debt to group related entities 1,608 1,608 - - 1,608
Financial lease liability 9,591 2,960 5,804 1,730 10,494
Trade payables 5,189 5,189 - - 5,189
Other payables 329 329 - - 329
Other payables to group related entities 98 98 - - 98
Non-derivative financial liabilities 16,815 10,184 5,804 1,730 17,718
Derivatives 46 46 - - 46
Total recognised in balance sheet 16,861 10,230 5,804 1,730 17,764
Lease commitments 18 18
Capital commitments 1,450 1,450
Total
11,698
5,804
1,730
19,232
Annual report 2022
Liquidity risk
It is of great importance for the Company to maintain a financial reserve to cover the Company’s obligations and investment
opportunities and to provide the capital necessary to offset changes in the Company’s liquidity due to changes in the cash flow from
operating activities.
The flexibility of the financial reserve is subject to ongoing prioritisation and optimisation, among other things, by focusing on
release of capital and following up on the development in working capital.
Page 33 of 45
Classification: Public
Maersk A/S
Notes to the financial statements
Amounts in USD million
16 Commitments
Low value and short-term leases
As part of the Company’s activities, customary agreements are entered into regarding charter and leases of
ships, containers, port facilities, other equipment etc.
The future charter and lease payments are:
2022 2021
Within one year 15 18
Total
15
18
Total rent and lease costs incurred are presented in note 1.
Capital commitments
At the end of 2022, capital commitments amounted to USD 2.8bn (USD 1.5bn), primarily related to vessel newbuildings.
Annual report 2022
Page 34 of 45
Classification: Public
Maersk A/S Annual report 2022
Notes to the financial statements
Amounts in USD million
17 Contingent liabilities
Except for customary agreements within the Company’s activities, no material agreements have been entered that will take effect,
change or expire upon changes of the control over the Company.
Tax may crystallise on repatriation of dividends. Through participation in a joint taxation scheme with A.P. Møller Holding A/S, the
Danish companies are jointly and severally liable for taxes payable, etc. in Denmark.
The Company is involved in a number of legal cases, tax and other disputes. Some of these involve significant amounts and are
subject to considerable uncertainty. Management continuously assess the risks associated with the cases and disputes, and their
likely outcome. It is the opinion of Management that, apart from items recognized in the financial statements, the outcome of
these cases and disputes are not probable or cannot be reliably estimated in the term of amount or timing. The Company
does not expect these to have a material impact on the financial statements.
Page 35 of 45
Classification: Public
Maersk A/S
Notes to the financial statements
Amounts in USD million
18 Cash flow specifications
2022 2021
Change in working capital
Inventories -37 -370
Trade receivables 301 -1,309
Other receivables and prepayments -1,211 160
Trade payables and other payables, etc. 755 393
Exchange rate adjustment of working capital -56 -22
Total -248 -1,148
Purchase of property, plant and equipment
Additions -1,211 -2,168
Of which pertains to borrowing costs capitalized on assets 30 2
Change in payables to suppliers regarding purchase of assets -456 459
Total
-1,637
-1,707
Other non-cash items are related to changes of provision for bad debt regarding trade receivables, legal disputes and other provisions.
Annual report 2022
Page 36 of 45
Classification: Public
Maersk A/S Annual report 2022
Notes to the financial statements
Amounts in USD million
19 Related parties
2022 2021 2022 2021 2022 2021 2022 2021
Income statement
Revenue 921 2,261 2,921 1,115 1 - - -
Operating costs 1,959 314 10,039 7,901 517 463 - -
Remuneration to management - - - - - - - 3
Dividends 3,734 2,814 - - - - - -
Financial income 14 43 6 8 459 2 - -
Financial expenses 157 98 4 2 59 613 - -
Assets
Interest bearing receivables, non-current - - 13 13 392 - - -
Trade receivables 380 1,536 493 229 6 15 - -
Tax receivables - - - - - 92 - -
Interest bearing receivables, current 852 877 151 81 35,781 6,564 - -
Other receivables, current 426 365 133 128 65 6 - -
Liabilities
Interest bearing debt, non-current** 1,525 1,729 - - 11 1 - -
Interest bearing debt, current** 2,150 1,719 505 88 - - - -
Trade payables 524 399 421 217 25 87 - -
Other liabilities, current 327 269 673 719 97 46 - -
Capital increases and purchase of shares 145 182 - - - - - -
Net assets transferred from Hamburg
Südamerikanische DG KG - 4,088 - - - - - -
Disposal - 37 - - - - - -
Return of capital - 946 - - - - - -
*Management refers to key management as defined by IAS 24.9.
**Includes lease liabilities
Leases
Capital commitments
At the end of 2022, capital commitments to other related companies amounted to USD 27m (USD 103m) of which USD 27m
(USD 103m) is payable within one year and USD 0m (USD 0m) is non-current. The commitments are related to container equipment.
Leases as lessor
After the end of 2022, the future lease income from subsidiaries is USD 154m (USD 104m) of which USD 90m (USD 65m) is
receivable within one year, and USD 64m (USD 39m) is non-current. The future lease income relates mainly to leased out
container vessels.
Extraordinary Dividend
Reference is made to note 22 for details of extraordinary dividend paid in February 2023.
A.P. Møller - Mærsk A/S, Copenhagen owns 100% of the share capital. A.P. Møller og Hustru Chastine Mc-Kinney Møllers Fond til
almene Formaal is the ultimate controlling shareholder. The Company is included in the consolidated financial statements of
A.P. Møller - Mærsk A/S, Copenhagen and A.P. Møller Holding A/S, Copenhagen.
Subsidiaries Other related
companies
Parent
company
Management*
At the end of 2022, operating lease commitments to related companies amounted to USD 85m (USD 291m) of which USD 85m (USD
291m) is payable within one year and USD 0m (USD 0m) is non-current. The operating lease commitments relate mainly to leasing of
container vessels.
Page 37 of 45
Classification: Public
Maersk A/S Annual report 2022
Notes to the financial statements
Amounts in USD million
20 Summary of significant accounting policies
Basis of preparation
Income statement
Statement of comprehensive income
Balance sheet
Customer relations and brand name
IT software
20 years
amortised over a useful life of 3-5 years
Foreign currency translation
The financial statements for 2022 for Maersk A/S have been prepared on a going concern basis and in accordance with the International Financial
Reporting Standards (IFRS) as adopted by the EU and additional requirements in the Danish Financial Statements Act for large class C companies.
The accounting policies are consistent with those applied in the financial statements for 2021.
The exemption from preparing consolidated financial statements has been used, and the financial statements presented are separate financial
statements. (ÅRL § 112)
The parent company, A.P. Møller - Mærsk A/S, Copenhagen, has prepared consolidated financial statements that comply with International Financial
Reporting Standards, which can be obtained here:
https://investor.maersk.com/financial-reports
The financial statements are presented in USD, the functional currency of the Company. On initial recognition, transactions denominated in foreign
currencies are translated at the exchange rates at the transaction date. Foreign exchange differences arising between the exchange rates at the
transaction date and at the date of payment are recognised in the income statement as financial income or financial expenses.
Tax is recognised in the income statement to the extent it arises from items recognised in the income statement.
Other comprehensive income
consists of income and costs not recognised in the income statement, including cash flow hedges at fair value. Other
comprehensive income includes current and deferred tax to the extent the income and costs recognised in other comprehensive income are taxable
or deductible.
Intangible assets are valued at cost less accumulated amortisation and impairment losses. Amortisation is charged to the income statement on a
straight-line basis over the useful lives. The useful lives of intangible assets are as follows:
Receivables and payables and other monetary items denominated in foreign currencies are translated at the exchange rates at the balance sheet
date. The difference between the exchange rates at the balance sheet date and at the date at which the receivable or payable arose or was
recognised in the latest financial statements is recognised in the income statement as financial income or financial expenses.
Share capital denominated in DKK is translated to USD at the effective rate on the transaction day and is therefore not revalued subsequently.
Revenue is recognised when the performance obligation has been satisfied, which happens upon the transfer of control to the customer at an
amount that reflects the consideration to which the Company expects to be entitled in exchange for the goods and services. Revenue from shipping
activities is recognised over time as performance obligation is satisfied, including a share of revenue from incomplete voyages at the balance sheet
date. Invoiced revenue related to an estimated proportion of remaining voyage time and activities at the destination port is deferred. Detention and
demurrage fees are recognised over time up until the time of customers’ late return or pick-up of containers. Retrospective volume rebates provided
to certain customers which give rise to variable consideration are based on the expected value method and allocated to ocean freight revenue. Lease
income from operating leases is recognised over the lease term.
Financial items includes dividends from investments in subsidiaries, interest income and expenses and exchange rate gains and losses. Dividends
received from subsidiaries are recognised when distribution has been formally declared. Furthermore, realised and unrealised gains and losses on
derivative financial instruments that cannot be classified as hedging contracts are also included.
Tax comprises current and deferred tax as well as adjustments to previous years of those. Income tax is tax on taxable profits and consists of
tonnage tax, corporation tax and withholding tax of dividends, etc. Tonnage tax is classified as tax when creditable in, or paid in lieu of, income tax.
Page 38 of 45
Classification: Public
Maersk A/S Annual report 2022
Notes to the financial statements
Amounts in USD million
20 Summary of significant accounting policies - continued
Ships 20 years
Containers, etc. 15 years
Terminal infrastructure over lease or concession period
Plant and machinery, cranes and other terminal equipment 5-20 years
Other operating equipment, fixtures, etc. 3-7 years
Impairment losses are recognised when the carrying amount of an asset or a cash-generating unit exceeds the higher of the estimated
value in use and fair value less costs of disposal.
Intangible assets and property, plant and equipment are tested for impairment, if there is an indication of impairment.
Investments in subsidiaries are recognised at cost price less any impairment losses. When tested for impairment, the cost price of
investment is compared to the equity value as well as the enterprise value.
Inventories mainly consist of bunkers, spare parts not qualifying as property, plant and equipment and other consumables. Inventories
are measured at cost, primarily according to the FIFO method.
Loans and receivables are initially recognised at fair value plus any direct transaction costs and subsequently measured at amortised
cost using the effective interest method. Write-down is made for anticipated losses based on specific individual or group assessments,
including expected credit losses as required under IFRS 9.
Equity
includes total comprehensive income for the year comprising the profit or loss for the year and other comprehensive income.
The reserve for hedges includes the accumulated net change in the fair value of hedging transactions qualifying for cash flow hedge
accounting.
Provisions are recognised when the Company has a current legal or constructive obligation and includes among other items legal
disputes and onerous contracts. Provisions are recognised on the basis of best estimates and are discounted where the time element is
significant and where the time of settlement is reasonably determinable.
Deferred tax
is calculated on differences between the carrying amount and tax base of assets and liabilities. Deferred tax is not provided
on temporary differences which have no effect on the accounting results or taxable income at the time of the transaction. Deferred tax
assets are recognised to the extent that it is probable that they can be utilised within the foreseeable future.
Financial liabilities are initially recognised at fair value less transaction costs. Subsequently the financial liabilities are measured at
amortised cost using the effective interest method, whereby transaction costs and any premium or discount are recognised as financial
expenses over the term of the liabilities.
Right-of-use assets includes mainly leases of vessels and containers which are typically made for fixed periods of five years but may
include extension options. Leases are recognised as a right-of-use asset with a corresponding leases liability at the date on which the
leased asset is available for use by the Company. The right-of-use assets are initially measured at cost, which comprises :
• the amount of the initial measurement of the lease liability,
• any lease payments made at or before the commencement date, less any lease incentives,
• any initial direct costs incurred by the lessee,
• an estimate of costs to be incurred by the lessee in dismantling and removing the underlying assets or restoring the site on which the
assets are located.
The right-of-use asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis.
Estimated useful lives and residual values are reassessed on a regular basis.
Property, plant and equipment are valued at cost less accumulated depreciation and impairment losses. Depreciation is charged to the
income statement on a straight-line basis over the useful lives at an estimated residual value. The useful lives of new assets are typically
as follows:
The cost of an asset is divided into separate components which are depreciated separately if the useful lives of the individual components
differ. Dry-docking costs are recognised in the carrying amount of ships when incurred and depreciated over the period until the next dry-
docking.
The cost of assets constructed by the Company includes direct and indirect expenses. For assets with a long construction period,
borrowing costs during the construction period from specific as well as general borrowings are attributed to cost. In addition, the cost
includes the net present value of estimated costs of abandonment, removal and restoration.
Page 39 of 45
Classification: Public
Maersk A/S
Notes to the financial statements
Amounts in USD million
20 Summary of significant accounting policies - continued
Cash flow statement
Annual report 2022
Lease liabilities are initially measured at the present value of the lease payments over the lease term, discounted using
the incremental borrowing rate.The following lease payments are included in the net present value:
• fixed payments (including in-substance fixed payments), less any lease incentives receivable
• variable lease payments that are based on an index or a rate
• amounts expected to be payable by the lessee under residual value guarantees
• the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and payments of
penalties for terminating the lease, if the lease term reflects the lessee exercising that option.
Subsequently, the lease liability is measured at amortised cost with each lease payment allocated between the repayment
of the liability and financing cost. The finance cost is charged to the income statement over
the lease period using the internal borrowing rate that was used to discount the lease payments.
Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an
expense in profit/loss.
Derivative financial instruments are recognised on the trading date and measured at fair value using generally
acknowledged valuation techniques based on relevant observable swap curves and exchange rates.
The effective portion of changes in the value of derivative financial instruments designated to hedge future transactions is
recognised in other comprehensive income until the hedged transactions are realised. At that time, the cumulative
gains/losses are transferred to the items under which the hedged transactions are recognised. The effective portion of
changes in the value of derivative financial instruments used to hedge the value of recognised financial assets and
liabilities is recognised in the income statement together with changes in the fair value of the hedged assets or liabilities
which can be attributed to the hedging relationship. The ineffective portion of hedge transactions, and changes in the fair
values of derivative financial instruments, which do not qualify for hedge accounting are recognised in the income
statement as financial income or expenses for interest and currency based instruments.
Cash flow for the year is divided into cash flow from operating activities, cash flow used for investing activities and cash
flow from financing activities. Cash and cash equivalents comprise cash and bank balances net of bank overdrafts where
overdraft facilities form an integral part of the Company’s cash management. Changes in marketable securities are
included in cash flow used for investing activities.
New financial reporting requirements
Key figures/financial ratios
The financial ratios stated in the survey of financial highlights have been calculated as follows:
Operating margin: Profit before financial items / Revenue
Solvency ratio: Equity at year end / Total equity and liabilities at year end
Return on equity: Profit for the year after tax / Average equity
Fees to statutory auditor
In accordance with the Danish Financial Statements Act section 96, paragraph 3, fees to statutory auditors is not disclosed
as the information is disclosed in the Annual Report for the APMM Group, in which the Company is fully consolidated. The
Annual Report of A.P. Møller - Mærsk A/S is available at:
http://investor.maersk.com/financials.cfm
Maersk A/S has not yet adopted the following accounting standards and requirements:
•
IFRS 17 - Insurance contracts: An analysis of the impact has been made and it has been assessed that the standard will
not have significant impact on recognition and measurement of the Company.
Other changes to IFRS are not expected to have any significant impact on recognition and measurement.
Page 40 of 45
Classification: Public
Maersk A/S Annual report 2022
Notes to the financial statements
Amounts in USD million
21 Significant accounting estimates and judgements
Impairment tests
Intangible assets
The preparation of the financial statements requires management, on an ongoing basis, to make judgements and estimates and
form assumptions that affect the reported amounts. Management forms its judgements and estimates based upon historical
experience, independent advisors and external data points as well as in-house specialists and on other factors believed to be
reasonable under the circumstances.
The most significant areas subject to estimates and judgements are mentioned below.
Property, plant and equipment
Management assesses impairment indicators across the Company’s portfolio of assets. Judgement is applied in the definition of
cash generating units and in the selection of methodologies and assumptions for impairment tests. Projected cash flow models are
used when fair value is not obtainable or when fair value is deemed lower than value in use. External data is used to the extent
possible and centralised processes, involving corporate functions, shall ensure that indexes or data sources are selected
consistently observing differences in risks and other circumstances.
The Company operates its fleet of container vessels in an integrated network for which reason the global container shipping
activities are tested for impairment as a single cash generating unit.
Management assesses impairment indicators for investments in subsidiaries and associated companies and in general determines
the recoverable amounts.
Estimates that are material to the Company’s financial reporting are made on the determination of impairment of financial non-
current assets including subsidiaries and associated companies.
Management
’
s estimate of the provisions in connection with legal disputes, including disputes on taxes and duties, is based on the
knowledge available of the actual substance of the cases and a legal assessment of these. The resolution of legal disputes, either
through negotiations or litigation, can take several years to complete and the outcome is subject to considerable uncertainty.
The Company is engaged in a number of disputes with tax authorities of various scope. Appropriate provisions and recognition of
uncertain tax positions has been made where the probability of our tax position being upheld in individual cases is considered less
than 50%. Claims for which the probablility of our tax position being upheld is assessed by management to be at least 50% are
not provided for. Such risks are instead evaluated on a portfolio basis by geographical area and country risk provisions and
uncertain tax liabilities are recognised where the aggregated probability of our tax position being upheld is considered less than
50%.
The outcome of impairment tests is subject to estimates of the development of freight rates, volumes, bunker prices and discount
rates.
Depreciation and residual values
Useful lives are estimated based on past experience and Management’s estimates of the period over which the assets will provide
economic benefits. Management decides from time to time to revise the estimates for individual assets or groups of assets with
similar characteristics due to factors such as quality of maintenance and repair, technical development and environmental
requirements. Refer to note 20 for the useful lives typically used for new assets.
Residual values are difficult to estimate given the long lives of vessels, the uncertainty as to future economic conditions and the
future price of steel, which is considered as the main determinant of the residual price. As a main rule the residual values of
vessels are initially estimated at 10% of the purchase price, exclusive of dry-docking costs. The long term view is prioritised in
order to disregard, to the extent possible, temporary market fluctuations which may be significant.
Impairment considerations for brand name and goodwill are included in note 4.
Provisions for legal disputes, etc.
The future development in the oil price is an uncertain and significant factor impacting accounting estimates across Maersk A/S,
either directly or indirectly. The Company is directly impacted by the price of bunker oil, where the competitive landscape
determines the extent to which the development is reflected in he freight rates charged to the customer.
The future development in freight rates is an uncertain and significant factor impacting the Ocean segment in particular, whose
financial results are directly affected by fluctuations in container freight rates. Freight rates are expected to be influenced by the
timing of when the current supply chain bottlenecks will normalise, as well as by regional and global economic environments,
trade patterns, and by industry-specific trends in respect of capacity supply and demand. There is little visibility into when the
capacity bottlenecks throughout the supply chain which have driven up the short-term freight rates will recede.
Page 41 of 45
Classification: Public
Maersk A/S Annual report 2022
Notes to the financial statements
Amounts in USD million
22 Subsequent events
The following events and transactions occurred subsequent to 31 December, 2022:
A.P. Moller - Maersk announced a new organisational structure and a new Executive Leadership Team effective from 1 February
2023 following the appointment of Vincent Clerc as CEO of A.P. Moller - Maersk effective from 1 January 2023.
No other events of importance to the Annual Report have occurred during the period from the balance sheet date until the
presentation of financial statements.
On 27 January 2023 it was announced to move towards a singular and unified Maersk brand. As a result, we have booked an
impairment of the HSUD Brand carried in Maersk A/S books in Q1 2023 resulting in amortization amounting USD 282m.
At an extraordinary general meeting 6 February 2023, it was decided to distribute an extraordinary dividend of USD 10,000m to
the Company's sole shareholder, A.P. Møller - Mærsk A/S. The dividend was settled in-kind same date.
None of the events have impact on 2022 financials.
Page 42 of 45
Classification: Public
Maersk A/S Annual report 2022
Notes to the financial statements
Amounts in USD thousand
23
Subsidiaries
Ownership
share (%)
Registered
Country
Equity
Profit or loss
for the period
Maersk A/S'
share of
profit/loss
Directly owned entities
USD 000'
USD 000'
USD 000'
Maersk China Ltd. 100 China 156,874 101,519 101,519
Rederiaktieselskabet Kuling 100 Denmark 1,141 -164 -164
Maersk Line Agency Holding A/S 100 Denmark 1,122,325 117,478 117,478
Sealand Europe A/S 100 Denmark 180,468 110,815 110,815
Maersk Trade Finance A/S 100 Denmark 38,984 -969 -969
Maersk Deutschland A/S & Co. KG 100 Germany 17,773 6,834 6,834
Maersk Shipping Hong Kong Ltd. 100 Hong Kong 1,800,626 422,022 422,022
Sealand Maersk Asia Pte. Ltd. 100 Singapore 206,090 1,484,590 1,484,590
A.P. Moller Singapore Pte. Ltd. 100 Singapore 5,446,277 2,172,447 2,172,447
Maersk Line UK Ltd. 100 United Kingdom 190,204 25,426 25,426
Maersk Agency U.S.A. Inc. 100 United States NA NA NA
Maersk GP GmbH 100 Germany NA NA NA
St. Petri Shipping ApS & Co KG 100 Germany NA NA NA
Frey P/S 100 Denmark 40,829 3,146 3,146
Frey GP ApS 100 Denmark 9 -0 -0
Maersk Line Crewing Hamburg ApS & Co KG 100 Germany NA NA NA
GTD Solution Inc. 100 United States NA NA NA
Dovana Holding AB 100 Sweden NA NA NA
Maersk Senegal SA 50 Senegal 3,723 -71 -71
Unterstützungskasse GmbH der Hamburg 50 Germany NA NA NA
Maersk Connect New Zealand Limited 100 New Zealand 1,011 -142 -142
Maersk Ship Management B.V.
100
Netherlands
9,599
5
5
https://investor.maersk.com/static-files/40368aa8-980c-4a47-8535-6f9e91ac08b1
Impairment losses recognised in prior years on investments in subsidiaries, disclosed in note 7, relates mainly to investments in vessel-owning
subsidiaries. Impairment is recognised when the carrying amount exceeds the value in use as described in the accounting policies in note 20.
Profit/loss for the period and equity are disclosed as per the latest official financial statement, in accordance with the requirement in the Danish
Financial Statements Act. NA (not available) indicates that no official financial statement is required to be prepared or the financial statement for
the entity's first statutory reporting period has not yet been made official.
Only subsidiaries of direct ownership have been included. The Company holds a controlling influence in the entities listed above. All subsidiaries are
consolidated in the A.P. Møller - Mærsk A/S annual report for 2022 which is avaiable on:
Page 43 of 45
Classification: Public
nd
June 2023
Executive Board:
Board of Directors:
Maersk A/S Annual report 2022
Page 44 of 45
Classification: Public
Independent auditor’s report
Maersk A/S Annual report 2022
Page 45 of 45
Classification: Public
nd
June 2023
CVR No 33 77 12 31
mne21404 mne23331
Maersk A/S Annual report 2022