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A.P. Møller - Mærsk A/SAnnual Report 2003

A.P. Møller - Mærsk A/SAnnual Report 2003

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Side 4

CONTENTS

Page

A.P. Moller - Maersk Group
Financial Highlights
Directors’ Report
Container Shipping and Related
Activities
Tankers, Trampers, Offshore andother Shipping Activities
Oil and Gas Activities
Retail Activity
Shipyards, other Industrial
Companies, Aviation, IT, etc.
Financial Report
Directors’ Statement
Auditors’ Report
Accounting Policies

24
27
29
30
31

Profit and Loss Account for 2003
Assets at 31 December 2003
Liabilities at 31 December 2003
Equity Statement
Cash Flow Statement for 2003
Notes to the annual accounts 2003

35
36
37
38
39
40

A.P. Møller - Mærsk A/SFinancial Highlights
Profit and Loss Account for 2003
Assets at 31 December 2003
Liabilities at 31 December 2003
Equity Statement
Notes to the annual accounts 2003
Management duties in other
Danish Limited Companies
A.P. Moller - Maersk Group
Company overview

A.P. Møller - Mærsk A/SManaging Owner:3
5

Esplanaden 50
DK-1098 Copenhagen K
Tlf. +45 33 63 33 63

10
14
18
22

Board of Directors:
Michael Pram Rasmussen
CHAIRMAN

Poul J. Svanholm
VICE-CHAIRMAN

Ane Mærsk Mc-Kinney Uggla
VICE-CHAIRMAN

Lars Kann-Rasmussen
Jan Leschly
Leise Mærsk Mc-Kinney Møller
Svend-Aage Nielsen

53
55
56
57
58
59

Jess Søderberg
Jan Tøpholm
Jens Erik Skovrider-Madsen
Henrik Lorensen Solmer

67
68
69

Auditors:
Søren Thorup Sørensen
STATE AUTHOR. PUBLIC ACCOUNTANT

Gert F. Tomczyk
STATE AUTHOR. PUBLIC ACCOUNTANT

Schultz Grafisk • København

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Side 1

ANNUAL REPORT 2003

Forward-looking statements
This Annual Report contains forward-looking statements regarding expectations for 2004. Such statements are subject torisks and uncertainties as various factors, many of which are beyond A.P. Møller - Mærsk A/S' control, may cause actual development and results to differ materially from the expectations contained in the Annual Report.
___________The Annual Report has been translated from Danish. The Danish text shall govern for all purposes and prevail in caseof any discrepancy with the English version.

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Side 2

A.P. Moller - Maersk Group
Financial Highlights
Amounts in DKK millions

2003

2002

2001

2000

1999

Net revenue

157,112

151,579

150,633

140,714

94,715Result before depreciation andwrite-downs, etc.

39,51035,711

34,83334,58722,528Depreciation, amortisation andwrite-downs, etc.

17,764

15,621

14,994

13,0599,999

Financial items, net- 359- 1,642- 2,624- 2,553- 1,436

Result before special items

21,955

18,952

17,57919,428

11,720

Value adjustment of financial assets

2,518- 1,872

- 683

5,942

- 472

Exchange rate adjustment of loans, etc.

2,149

3,474

- 1,284- 1,689- 1,814

Result before tax

26,622

20,554

15,612

23,681

9,434

Result for the year

17,273

12,058

8,457

15,970

4,972

Result for the year before
special items, after tax

12,967

10,456

10,424

11,835

7,258

Total assets

173,034

170,578

169,598

164,932

141,326

Equity92,18877,23066,87861,216

46,042

Cash flow from operating activities

26,29924,82026,635

20,312

20,613

Cash flow used for investing activities

16,603

18,133

20,236

19,587

24,697

Net investments in tangible fixed assets

15,605

16,425

17,124

18,97916,827Return on equity

20.4%

16.7%

13.2%

29.8%

10.5%

Equity ratio

53.3%

45.3%

39.4%

37.1%

32.6%

Net result per share, DKK *)

4,198

2,930

2,078

3,923

1,221

Dividend per share, DKK *)

300

200

150

150

110

Goodwill related to acquisitions before 1 January 2002 has been written off against reserves in the year ofacquisition.

*) When calculating result per share and dividend per share the share capital resulting from the merger
has been applied for all years. In the calculation of result per share, the Group’s holding of own shares
has been deducted.

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Side 4

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Side 5

A.P. Moller - Maersk Group
Directors’ Report

2003 was a landmark year in the
Company's history. At the general meetings on 10 and 12 June ofDampskibsselskabet af 1912, Aktieselskab and Aktieselskabet Dampskibsselskabet Svendborg respectively, the shareholders accepted
unanimously the proposal by the
Boards of Directors to merge thetwo companies, with Aktieselskabet
Dampskibsselskabet Svendborg as
the continuing company. Under thename of A.P. Møller - Mærsk A/S,
the Company will not only continue the historic activities of the individual companies but will also
carry Mr A.P. Møller's name.
Six months later Shipowner Mærsk
Mc-Kinney Møller announced that
he would retire as Chairman of A.P.
Møller - Mærsk A/S on 15 December. At the same time, Mr Michael
Pram Rasmussen was elected as the
succeeding Chairman. Mr Mærsk
Mc-Kinney Møller took over thechairmanship in 1965 on the deathof Mr A.P. Møller and has carriedon the company in an exceptional
way to the unique position that it
holds today, nationally as well asinternationally.
The year was characterised by progress, both commercially and withregard to the result. Despite a disappointing development in theworld economy, international trade
showed measured growth. International container transport thusincreased by more than 10%. Similarly the tanker trade experienced
increased volumes and improved
tonnage balance with a good demand for quality tonnage.
With regard to oil, A.P. Møller Mærsk A/S entered into an agreement with the Danish Government,
under which the State will receive a
20% share of the profits from 2004
and will become partner in DUC
from 2012 with a 20% share, as theOn 15 December 2003 Mr Mærsk Mc-Kinney Møller
retired as Chairman of A.P. Møller - Mærsk A/S after 64 years on the Board of Directors
and was succeeded by Mr Michael Pram Rasmussen.

agreement also implies an extension of A.P. Moller - Maersk's concession from 2012 to 2042. Continued long-term planning in the
North Sea is thus secured. Confirmation that the EU does not object tothe agreement is awaited.
The decline in the USD exchange
rate of more than 15% against theDanish krone had a negative effectas the majority of the Group's earnings are in USD.
International shipping policy wascharacterised by initiatives after the
wreck of the ageing 77,000-ton
single-hulled tanker PRESTIGE off
the Spanish coast in December
2002. The EU adopted additionalrules to increase safety and prevent
pollution damage, including accelerating phasing out of single-hulled
vessels and a general ban on transport of the particularly polluting
heavy fuel in such vessels. No matter how sensible the proposals, thesituation becomes precarious if the
EU implements regional solutions
to international problems. It wastherefore gratifying that the UN's
International Maritime Organisation (IMO) adopted similar rules
which are expected to take effectworldwide on 1 May 2005 and further strengthen the position of theshipping companies which, like us,
operate a modern fleet of doublehulled tankers.
Safeguarding the sea transport chain
against terrorism is still a high priority, not only in the USA but alsointernationally. A.P. Moller - Maersk
has contributed positively to thiswork which focuses primarily ontransport of containers, including
vessels and terminals. It is gratifying that the international community wishes to avoid unnecessary
bureaucratic rules that will obstructinternational trade. In this field too
A.P. Moller - Maersk co-operates
closely with the authorities and our5523296_uk_s4-26_11.qxd

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Side 6many global customers. A.P. Moller- Maersk was the first transportcompany to have its security procedures approved by the American
customs authorities; the so-called
Customs Trade Partnership Against
Terrorism (C-TPAT).
A.P. Moller - Maersk will also be
ready with the emergency measuresrequired by the IMO as of 1 July
2004 for the campaign against international terrorism.
The EU's complaint against Korea
lodged with WTO concerning shipbuilding has proceeded at a slower
rate than expected. The European
Commission and a number of member states have therefore proposedthat temporary access to support
shipyards in special areas should be
extended for a short period, until
WTO's decision is available. Danish
yards have supported the Danish
Government's opposition to the EU
re-opening for subsidies and for an
extension of these. We must face
the fact that the Danish shipbuilding industry will hardly survive without uniform European conditions.
In September, the European Courtof Justice annulled a fine of approximately DKK 200 million, which theEuropean Commission had imposed unlawfully on A.P. Moller Maersk. The decision was clear andwas not appealed by the European
Commission. With this decision,
the European Court of Justice has
overruled the European Commission in all three maritime actions
brought against A.P. Moller Maersk. At the same time, theEuropean Commission initiated anevaluation of whether the shipping
companies are to maintain the possibility of co-operating internationally in the so-called conferences.
International shipping participates
constructively in a dialogue withauthorities, shippers and other interested parties. Similar evaluations in
6

the USA, Canada and Australia,
among others, concluded that there
was no reason to change an efficientsystem that has contributed to securing a dynamic development in international trade.
Corporate law, including the socalled "corporate governance" –or good corporate management –plays an increasingly prominentpart, both nationally and internationally. Thanks to considerable
Danish effort, it was possible to secure an acceptable set of guidelines
for so-called hostile takeover bids
in the EU. In Denmark discussions
continue on good corporate management within the framework of
the stock exchange. A.P. Moller Maersk follows the discussions
closely and evaluates continuously
the many proposals presented in
Denmark and abroad. It has become apparent that legislation andregulations do not provide any
guarantee. The important thing is
the responsibility of the Board of
Directors and the Management
and their readiness to act correctly,
given the specific situation of thecompany.

Recruitment of officer trainees
for the fleet was intensified withpositive effect.
The implementation of the mergerof the ship owning Companies has
been a major and demanding task
for the global organisation, and ourmany competent employees deserve
thanks for their skilful efforts inachieving this too.
X

Overall Result 2003
For the A.P. Moller - Maersk Groupthe overall result for the year wasaffected positively by generally improved freight markets – especiallyfor container activities – and continued high oil prices, but also very
negatively by a considerable fall in
the USD exchange rate. The fall resulted in a positive exchange rateadjustment of loans etc., althoughconsiderably less than the negative
effect on the result before special
items.
DKK/USD950

US Dollar Fluctuations

900

Again in 2003 A.P. Moller - Maersk's
units were spared serious accidents
and shipwrecks. In the course of theyear, a number of initiatives weretaken to ensure and develop quality
in the maritime organisation. The
technical operation of Danish container vessels was ISO 14002 certified with both the American Bureauof Shipping (ABS) and Lloyds.
A.P. Moller - Maersk's international
trainee programme, Maersk International Shipping Education, received almost 50,000 applications
worldwide, from which approximately 300 applicants from 64 different countries were employed.
There are about 500 trainees with77 different nationalities at present.

850
800
750
700
650
600
550
1999

2000

2001

2002

2003

The net result for the year was
DKK 17,273 million (DKK 12,058
million).
Before special items – but after tax –the result was DKK 12,967 million(DKK 10,456 million), which isslightly above the expectations expressed in the interim report, pri-

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Side 7The Board of Directors of A.P. Møller - Mærsk A/S: Jan Leschly; Svend-Aage Nielsen; Michael Pram Rasmussen, Chairman of the Board;
Poul J. Svanholm; Ane Mærsk Mc-Kinney Uggla; retiring Chairman Mærsk Mc-Kinney Møller, Shipowner; Leise Mærsk Mc-Kinney Møller;
Lars Kann-Rasmussen; Jess Søderberg, Partner and CEO; Jan Tøpholm; Henrik Lorensen Solmer, Captain and Jens Erik Skovrider-Madsen, Captain .

marily due to improved rates for product and gas carriers as well as
container services.
car carriers experienced a broadly
unchanged rate level compared withFor container services, cargo vol- 2002. The overall result for these acumes and freight rates increased, tivities was well above that for 2002.
and the result was considerably
above that for 2002.
The markets for drilling rigs andsupply vessels weakened. Maersk
Contractors achieved full employment of all large drilling rigs, but a
USD/bblOil Price Fluctuations
35
result below that for 2002. For supply vessels the result was somewhat
30
lower than that for 2002, mainly due
25
to a major addition of newbuildings
to the market in general.

The result of the Oil and Gas Activities was slightly below thatfor 2002, primarily because of increased operating costs and higher
taxes.
Retail activities in Dansk Supermarked again experienced an increase in revenue and operating
result, but a result after tax slightly
below 2002.

For the Yard Group and Mærsk
Data the result was positive. The
other activities, including other in20
dustry and aviation, achieved anegative and unsatisfactory result.
Production
of
oil
in
the
North
Sea
15
remained at the same level as for
2002, but increased in Qatar and In 2004, a number of vessel and con10
tainer-owning companies have been
Algeria.
5
The price of Brent crude oil, the sold from the Dansk Supermarked
1999
2000
2001
2002
2003
marker price for DUC's oil, aver- Group to A.P. Møller - Mærsk A/S.
aged about 29 USD per barrel, Similarly Odense Staalskibsværft
The large crude oil tankers and 15% above that for 2002, but in A/S has sold Mærsk Container Indusmaller product carriers reflected DKK slightly below due to a declin- stri A/S and Rederiet Odense-Lindø
increasing rates, whereas the large ing USD exchange rate.
A/S to A.P. Møller - Mærsk A/S.
7

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Side 8

A.P. Moller - Maersk employs 180 young people for the ship's officer education every year. The education alternates between theoretical training
at SIMAC in Svendborg, Denmark and practical training on board A.P. Moller - Maersk's vessels.

Expectations for 2004
For the container business, the firstmonths of 2004 have shown stable
rates and volumes as expected, andthe overall result for the container
shipping activities is estimated to
be above that for 2003.

particular, due to the lower USD ex- The overall revenue is expected tochange rate and a relatively larger be a little higher than in 2003.
Government share.
A number of factors may still affectRetail activity, yard, industry and activities and result for 2004, notother activities are expected to least developments in the world
achieve an overall result slightly economy, freight rates, oil prices
For tanker shipping the market above that for 2003.
and exchange rates.
remains strong; for supply vessels
weak.
X
At a USD exchange rate at the
average level for the year to date,If oil prices and the USD exchange which is 10% lower than the aver- In the following pages 10 to 26 therate remain at the average level for age in 2003, the overall result be- main activities of the A.P. Moller the year to date, the result for the fore special items, but after tax, is ex- Maersk Group are reviewed.
oil and gas activities is expected to pected to be about the same level as
be lower than that for 2003. This is, in for 2003, which was DKK 13 billion.
Segment Information
DKK millions

Net revenue
2003
2002

Net result
2003
2002

Container shipping and related activities

90,23382,5883,873

419

Tankers, Trampers, Offshore and othershipping activities

14,390

16,230

2,171

2,355

Oil and Gas activities

19,15919,061

6,490

6,995

Retail activity

22,106

20,782998

1,042

Shipyards, other industrial companies,
aviation, IT, etc.

20,125

19,91224- 479

Eliminations and unallocated items- 8,901- 6,994

3,717

1,726

157,112

151,579

17,273

12,058Eliminations and unallocated items comprise eliminations of intra-group transactions as well as expenses, financial items
and adjustment of provisions and write-downs in relation to structural initiatives, which are not allocated to businesssegments and include:
2003
2002
Net eliminations and unallocated items,
before special items

- 309

- 68

Value adjustment of financial assets

2,183- 1,872

Exchange rate adjustment of loans, etc.

2,149

3,474

Unallocated tax, etc. and minority interests

- 306

192

Effect on result for the year

3,717

1,726

In the following main figures for the segments, the dissolution of Tankers and Liners in Partnership andOil and Gas Activity in Partnership in connection with the merger has affected the allocation of primarily liquid funds(under current assets) and interest hereon between some segments. Due to this, these items cannot directly be comparedwith 2002.

8

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Side 9

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Side 10The container vessel AXEL MÆRSK of 6,600 TEU was delivered to A.P. Moller - Maersk in March 2003
from the Odense Steel Shipyard and is photographed here at the terminal in Tacoma, USA.

Container Shipping and Related Activities
Highlights:
DKK millions

2003

2002

Net revenue

90,23382,588Result before depreciation and write-downs
Depreciation, amortsation and write-downs

14,0198,455

10,4907,445

Result before financial items
Financial items, net
Value adjustment of investments

5,564
- 625
335

3,045
- 1,312-Result before tax
Tax
Minority interests

5,274
1,294
- 107

1,733
1,283
- 31

Result for the year

3,873

419

Cash flow from operating activities

9,527

6,922

Cash flow used for investing activities- 8,279- 8,376

Fixed assets
Current assets

53,98530,83449,291
23,906

Total assets

84,81973,197Long-term debt and provisions
Short-term debt

24,022
22,863

27,57018,216

Total debt and provisions

46,88545,786

2003 was a year of general improvement in the container market
due to a combination of a betterment of the US economy, increasing
import volumes from Asia to the
USA and Europe as well as increased utilisation of the global
fleet of container vessels.
Global demand for containertransport increased faster than theavailable vessel capacity.
In several of the most important
trades, freight rates increased compared with the low level in 2002.
The positive effect of this was, however, dampened by continued increases in rates for chartered tonnage, high fuel prices and increased
costs relating to the repositioningof empty containers. Despite thenegative effect of the weakened
USD, Maersk Sealand's earnings

10

in 2003 were considerably above
the 2002 level.
Maersk Sealand continued its endeavours to reduce operational unit
costs and vessel operating expenses
and to increase productivity.
Increased globalisation, advanced
data communications and considerable investment in IT have madeit possible to rationalise Maersk
Sealand's administrative functions.
Some of these are gathered in a
number of overseas centres, thereby
ensuring a more efficient service tocustomers.
The services from Asia to North
America continued their steady
growth, although not with the samehigh growth rate as in 2002. The

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Side 11

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Side 12APM Terminals' Pier 400 in Los Angeles, USA is one of the world's largest container terminals.

balance between the tonnage supplied and the tonnage demanded
contributed to partially restoring
the rate level and made it possible
to establish new routes in the peakseason. Maersk Sealand's cargovolumes increased concurrently
with the market and with higher
rates during the year.
In the trade from Asia to Europe
the market was strong, and Maersk
Sealand's cargo volumes increased.
A considerable increase in the total
capacity was exceeded by a rise incargo volumes, and the overalllevel for freight rates exceeded thelevel for 2002.
The market from Europe to
North America remained at the 2002
level in terms of volume. Rates increased from the second quarter.
After a positive first half-year, theweakened USD led to declining
westbound cargo volumes in thesecond half of the year comparedwith the same period in 2002.

In May another Pacific service
was initiated.
The service between Northern
Europe and the Middle East was
upgraded with larger vessels at theend of July.
Additional departures and capacity were added to the West African
service throughout the year to covercargo volumes, mainly from Asia.

market developments and demand
from major customers, after a number of years of growth through acquisition and integration of othercompanies. The focus was mainlyon activities supplementing Maersk
Sealand's supply of services to major
customers, such as consolidation,
storage, distribution, customs clearance and air freight.
The result was at the same level
Maersk Sealand continued to im- as for 2002.
prove the electronic services to its
customers, via www.maersksealand APM Terminals operates container.com among others, and these ser- terminals and related activities invices were used more and more on more than 30 ports. Total handledvolume increased by 25% measured
all continents.
INTTRA, the overall portal for in crane lifts to 22.3 million TEU.
the shipping industry, which A.P. The main part of the volumes deMoller - Maersk helped to establish rive from Group companies but
in 2001, registered an increasing business with external customers isnumber of users and transactions. increasing
Maersk Sealand took delivery ofnine newbuildings in 2003 hereof
four from the Odense Steel Shipyard
and three from Volkswerft Stralsund. Three minor units were sold.
Furthermore, Maersk Sealand took
delivery of 12 newbuildings onlong-term contracts from othershipping companies. At the turn of
the year, about 280 vessels with a
total cargo carrying capacity ofaround 800,000 TEU (twenty-footcontainer units) were engaged inoperations for Maersk Sealand.
During the year, around 87,000
container units were acquired; including 14,500 reefer containers
from Maersk Container Industri's
factories in Denmark and China.
The Maersk Sealand Agencies
including trucking and depot activities, etc. profited from the increased volumes, and their overall
result was satisfactory and abovethat for 2002.

Maersk Sealand's route network was
adjusted concurrently with changes
in the demands of customers.
In January, coverage of the market from Oceania, including Australia and New Zealand, to North
America was extended.
In February, coverage of the market between Canada and Northern
Europe was extended from one to
two weekly departures.
The Atlantic trades were rationalised in April after the set-up ofa direct service between Chile andNorthern Europe, especially for the
reefer segment.
A Californian/Central American/
Peruvian service was introduced. A
service between northern China
and the western Mediterranean
began in May and, at the sametime, coverage of the market between the Mediterranean and the In 2003 Maersk Logistics' activities
US East Coast was extended to in- increased further. Services wereclude two weekly departures.
adjusted continuously in line with

12

In 2003 APM Terminals secured
several new customers and enjoyedcustomer satisfaction awards.
APM Terminals entered into
existing joint ventures in Qingdao,
China and Port Qasim, Pakistan in
2003. In Shanghai a new joint
venture, "Shanghai East Container
Terminal" was established with theport authorities. Towards the endof the year a consortium led by
APM Terminals was awarded theconcession to operate the container
terminal in Luanda, Angola. Operation commences in 2004.
The result for APM Terminals wasconsiderably better than in 2002,
partly due to value adjustment ofsome investments.
Safmarine Container Lines N.V.
operates a global network of shipping and land-based activities as wellas IT services, primarily in southern
Africa. Development in rates andvolumes was positive and the result
well above that for 2002.
In 2003 Safmarine contracted
four newbuildings.

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Side 13

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Side 14

MAERSK HOLYHEAD, sailing under the Venezuelan flag, is one of three gas carriers owned by Maersk
Tankers & Trampers, which are employed on time charter in the Venezuelan coasting trade.

Tankers, Trampers, Offshore and other Shipping Activities
Highlights:
DKK millions

2003

2002

Net revenue

14,390

16,230Result before depreciation and write-downs
Depreciation, amortsation and write-downs

5,274
2,631

5,965
2,854

Result before financial items
Financial items, net

2,643
- 337

3,111
- 556

Result before tax
Tax
Minority interests

2,306
146
11

2,555
198
-2

Result for the year

2,171

2,355

Cash flow from operating activities

5,224

5,689

Cash flow used for investing activities- 3,659- 2,601

Fixed assets
Current assets

29,586
10,441

28,741
8,846

Total assets

40,02737,587Long-term debt and provisions
Short-term debt

15,0936,519

14,471
8,231

Total debt and provisions

21,612

22,702

The result in 2003 for Maersk
Tankers' large crude carriers, which
are engaged in operation throughthe pool co-operation Tankers International, was considerably abovethat for 2002 and was satisfactory.
During the first six months, themarket for these tankers was strong,
due to increased distances for the
shipments to the USA. Major traditional suppliers to this market, suchas Venezuela and Nigeria, were hit
by difficulties in delivery, causing aneed to substitute deliveries fromthe Arabian Gulf. In the fourth
quarter the market was very muchcharacterised by the rebuilding ofstocks in the USA before the coming winter.
The product carriers, which transport refined oil products, achieved asatisfactory result at the same level asthat for 2002. The demand for modern, double-hulled vessels, which
14

A.P. Moller - Maersk operates, has
shown an upward trend after oil
spills in recent years, which led in2003 to the adoption of new rules
by both the EU and IMO, with aview to a faster phasing out of singlehulled tankers.
The Handytankers Pool for vessels in the 27,000-38,000 dwt segment, operated by A.P. Moller Maersk, extended its leading position to include a total of 47 vessels
compared with 38 at the beginningof the year. Similarly, the LR2 Poolfor vessels over 70,000 dwt consolidated its position in the market
with an extension of the fleet from12 to 16 vessels. The LR2 Pool isoperated by A.P. Moller - Maersk
in co-operation with partners.
The market for gas carriers continued to experience over-capacity
and low demand. The result for523296_uk_s4-26_11.qxd

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Side 15

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Side 16MÆRSK INNOVATOR was delivered to A.P. Moller - Maersk in 2003. With a leg length of 205 metres and extensive automation,
the drilling rig is one of the world's largest and most advanced jack-up rigs.

2003 was at the same level as that built semi-submersible rig fromfor 2002 and was not satisfactory. Keppel FELS, was delivered toBaku, Azerbaijan, and immediately
The market for transport of liquid commenced its long-term employnatural gas (LNG) is characterised ment in the Caspian Sea.
The market for floating producby a high level of activity. A.P.
Moller - Maersk has two units on tion units (FPSO) remains reasonorder. The first vessel will be de- able and A.P. Moller - Maersk's
livered in 2004. Both vessels are se- units are secured long-term employment.
cured long-term employment.
The overall result for Maersk
The overall result for tankers and Contractors was below that for 2002.
Egyptian Drilling Company, agas carriers was well above that forjoint venture with the Egyptian
2002.
State, achieved a satisfactory result
The demand for car carriers in- at the same level as that for 2002.
creased throughout the year due toa combination of increasing car ex- For Maersk Supply Service, 2003
port from Japan and South Korea was characterised by an almost
compared with a low net addition constant overcapacity of supply
of tonnage. A.P. Moller - Maersk's vessels in the North Sea. The rate
car carriers are all employed on level was generally lower than inlong-term contracts and achieved a 2002, and showed only a few andsatisfactory result for 2003, at the brief improvements due to delays inmoving drilling rigs during periods
same level as that for 2002.
of bad weather.
The addition of new-built anchorIn 2003 Maersk Tankers took delivery of six vessels and sold seven. handling vessels corresponded apThere are 25 tankers and two car proximately to the disposal of vessels.
carriers on order.
For the markets in Brazil, West
The demand for drilling rigs re- Africa and the Far East the term
mained unchanged compared with rates were stable and at a reason2002, apart from increased activity able level, although the rates werein the Mexican Gulf, and Maersk put under pressure towards the end
Contractors achieved full employ- of the year in these areas also. The
ment for all large drilling rigs. New Mediterranean market showed acontracts were concluded and exist- declining level of activity, and someing contracts extended on the same of the vessels were moved to Westor a slightly lower level than in 2002. Africa and the North Sea.
The market for cable-laying vesThe general strike in Venezuela
meant that drilling activities were sels showed no improvement fromin effect paralysed, and the demand its weak level in 2002.
Activities in Canada showed profor drilling rigs in the country is still
gress in 2003, and at the end of thevery low.
year eight vessels were employed.
At the beginning of 2003 Maersk
The overall result for Maersk
Contractors took delivery of MÆRSK Supply Service was somewhat lower
INNOVATOR, the first of two ultra than in 2002.
harsh environment jack-up drilling
Maersk Supply Service contractrigs from Hyundai. The drilling rig ed four newbuildings in 2003; twois employed in the North Sea. In platform supply vessels in Brazil for
October MAERSK EXPLORER, a new- delivery in 2005 and two anchor16

handling vessels in Chile for delivery
in 2005 and 2006.
Norfolkline B.V.'s activities primarily include door-to-door transport
within Europe and ferry services
between the UK and the Continent,
as well as transport of containers
between Ireland and the Continent.
The result was reasonable compared with the negative result for2002.
Two new RO/RO passenger
ships were contracted to the DoverDunkirk route for delivery in 2005.
The result for the A/S Em. Z.
Svitzer Group was slightly abovethat for 2002.
The company experienced a highlevel of activity and won several
international contracts, in Thailand,
Australia, India, Egypt and Central
America, among others. Considerable salvage operations were carriedout in various places all over theworld.
In 2003, the company focused its
business areas by selling off thesurvey activities in Svitzer Limited,
UK and two minor activities in the
Netherlands.
During the year, the company
has received 13 newbuildings fromyards in Australia, Singapore, Spain
and Poland. A total of 25 vessels
are on order for delivery from 2004
to 2006.

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Side 18

As part of the further development of the Halfdan Field, an additional three platforms with bridgeconnection were installed in 2003; a processing, an accommodation and a flaring platform.

Oil and Gas Activities
Highlights:
DKK millions

2003

2002

Net revenue

19,15919,061Result before depreciation and write-downs, etc.
Depreciation, amortsation and write-downs, etc.

17,144
3,644

17,4103,798

Result before financial items
Financial items, net

13,50055

13,612- 62

Result before tax
Tax

13,555
7,065

13,550
6,555

Result for the year

6,490

6,995

Cash flow from operating activities

10,413

10,983

Cash flow used for investing activities- 3,506- 6,185

Fixed assets
Current assets

11,593
5,151

11,606
9,316

Total assets

16,74420,922Long-term debt and provisions
Short-term debt

2,371
3,508

2,529
3,576

Total debt and provisions

5,879

6,105

In 2003 Mærsk Olie og Gas AS produced about 110 million barrels of
crude oil for Dansk Undergrunds
Consortium (DUC) in the North
Sea. A.P. Moller - Maersk has a
39% interest in this. The production of crude oil was thus at thelevel for 2002. Overall gas sales
amounted to 6.4 billion m3 compared with 6.7 billion m3 the year
before. The average price of Brent
crude oil, the marker price for
DUC's oil, was about USD 29 per
barrel in 2003, an increase of 15%
compared with 2002. Due to a declining USD exchange rate in 2003
the oil price in Danish kroner was alittle lower than in 2002.
During 2003, four drilling rigs completed a total of 24 wells, mainly production wells. In 2004, four drillingrigs are expected to be engaged,
mainly drilling production wells on

18

the Halfdan and Dan Fields. Facilities for the third phase of the development of the Halfdan Field were
put into operation at the end of 2003.
Mill. t.o.e.
25

DUC's Oil and Gas Production

20

15

10

5

0

1999

2000

Oil/Gas consumption

2001
Oil production

2002

2003
Gas production

The graph shows DUC’s production of crude oiland natural gas as well as total consumption in
Denmark in tons of oil equivalents (t.o.e.).

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Side 19

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Side 20MÆRSK WINNER was delivered to A.P. Moller - Maersk in 2003 after sea trials in Stavanger Fjord, Norway.
The vessel is specifically built to carry out construction work for oil companies at water depthsof up to 2,000 metres. The vessel is equipped with a special crane capable of lifting up to 200 tons.

Installation of a new gas pipelinefrom Tyra West to the Dutch distribution system is ongoing and will
be ready for operation during 2004.
This gas pipeline makes it possible
to export additional natural gas from
DUC's fields in the North Sea. A.P.
Moller - Maersk has entered into
an agreement with Norsk Hydro on
the sale of 0.6 billion m3 of natural
gas per year from 2004 with delivery to the Netherlands.
In 2003, DUC invested about
DKK 4,500 million (DKK 4,400
million), mainly in further development of the Halfdan, Dan and Tyra
Fields. A.P. Moller - Maersk's shareamounted to DKK 1,650 million(DKK 1,710 million).
A.P. Møller - Mærsk A/S enteredinto an agreement with the Danish
Government regarding an alteration
to the conditions of the Company's
concession. The State will receive a
20% share of the profits from 2004
and will become partner in DUC
from 2012 with a 20% share, andtaxation will change. The State's
total share of the income will thus
be increased. At the same time, theconcession is extended by 30 years
from 2012 to 2042.
The result for the Oil and Gas
Activity in the North Sea was DKK
4,138 million (DKK 4,666 million).
On an international level, Maersk
Oil participates in activities related
to production and exploration in
Qatar, Algeria and Kazakhstan. In
addition to this, Maersk Oil participates in activities related to exploration in Oman, Brazil, GreatBritain, Norway, Germany and
Turkmenistan.
In Qatar, where Maersk Oil isoperator and concessionaire, overall
production of oil in 2003 was approximately 70 million barrels. The
further development of the Al Shaheen Field continued during theyear, and oil production has been

20

initiated from an additional threelocations.
In Algeria, Maersk Oil is a partner with a 12.25% share in a group
operated by Anadarko Petroleum
Corporation and in co-operation
with the state-owned oil company
Sonatrach. In 2003, total production reached approximately 92 million barrels. Further developmentof producing fields and the development of two additional satellite
fields are proceeding.
In Kazakhstan, where Maersk
Oil is an operator with a 60% sharein two licences, total oil production
in 2003 amounted to approximately
two million barrels.
The result for Maersk Oil's international activities in 2003 was DKK
2,352 million (DKK 2,329 million).

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Side 21

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Side 22

Dansk Supermarked's first store based on the new concept Bilka OneStopin the Field's shopping centre in Copenhagen, Denmark.

Retail Activity
Highlights:
DKK millions

2003*)

2002*)Net revenue

22,106

20,782

Result before depreciation and write-downs
Depreciation, amortsation and write-downs

1,229
396

1,121
336

833

785

425
214

438
238

Result before tax
Tax
Minority interests

1,472
450
- 24

1,461
390
- 29

Result for the year

998

1,042

Cash flow from operating activities

1,155

1,083

Cash flow used for investing activities

- 580

- 732

Fixed assets
Current assets

7,941
6,460

7,703
4,254

Total assets

14,401

11,957Long-term debt and provisions
Short-term debt

636
5,262

609
3,717

Total debt and provisions

5,898

4,326

Result before financial items
Associated companies –share of result before tax
Financial items, net* Figures for Dansk Supermarked are included pro rata with a 50 percent share.

The Dansk Supermarked Groupconsists primarily of Dansk Supermarked A/S, Bilka Lavprisvarehus
A/S, Føtex A/S, Netto A/S, Netto
England, Netto Germany, Netto
Poland and Netto Sweden, as wellas leasing activity.
Associated companies comprise
F. Salling A/S and Ejendomsaktieselskabet af 18. august 1958.
In 2003, the Dansk Supermarked
Group has experienced growth inrevenue and operating results, buta slightly lower result after tax.
The growth in the retail activities
relates to both Danish and foreign
markets and is due to a continued
increase in the number of stores aswell as maintaining the market position through development and adjustment of the product range.
22

At the end of 2003, the total
number of stores amounted to 932,
which in 2004 is expected to increase to about 1,000 stores. The
majority of the new stores are expected to be established outside
Denmark.

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Side 23

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Side 24

The propeller is being mounted on newbuilding no. 188 at the Odense Steel Shipyard.
The 6,600 TEU type container vessel was named ARTHUR MÆRSK in November 2003.

Shipyards, other Industrial Companies, Aviation, IT, etc.
Highlights:
DKK millions

2003

2002

Net revenue

20,125

19,912

Result before depreciation and write-downs
Depreciation, amortsation and write-downs

1,730
1,594

1,262
1,190

Result before financial items
Financial items, net

136
- 144

72
- 351

Result before tax
Tax
Minority interests

-8
+ 32
-

- 279
237
37

Result for the year

24

- 479

Cash flow from operating activities

995

108

Cash flow used for investing activities

- 522

- 432

Fixed assets
Current assets

6,789
9,653

8,118
9,854

Total assets

16,442

17,972Long-term debt and provisions
Short-term debt

5,798
6,667

7,457
6,960

Total debt and provisions

12,465

14,417

Restructuring still takes place inseveral of the companies. Expenses
relating to this as well as impairment write-downs have affected
the result.
The sale of Maersk Medical A/S
to Nordic Capital, with effect from
1 January 2003, was concluded in
March 2003. The gain on the sale isincluded in the result for 2003.

In the course of the year, Volkswerft Stralsund GmbH built anddelivered two AHTSs (AnchorHandling Tug/Supply Vessels) andthree 3,000 TEU container vessels
to A.P. Moller - Maersk. In addition
to this, orders have been placed forcontainer vessels by a number ofGerman shipowners and A.P. Moller- Maersk in 2003.

The result of the Odense Staalskibsværft A/S Group was somewhat
above that for 2002, as expected.
During the year, the Lindø Yard
built and delivered four large container vessels to Maersk Sealand.
At the same time, new orders forthe construction of container vessels to A.P. Moller - Maersk,
Deutsche Afrika Linien and Safmarine Container Lines were secured in 2003.

Mærsk Container Industry in Tinglev, Denmark achieved a result
somewhat lower than expected,
whereas the activities of the subsidiary in Qingdao, China produced aresult somewhat above what was expected.

24

manufacturers was characterised
by low demand. Prices in Euros
were further squeezed due to thefall in the USD exchange rate.
Together, the companies in India,
China, Korea and Thailand experienced progress.
Ro-Clean Desmi, which supplies
equipment for the combating of oil
spills, had a good year.
In mid-September the brake lining activities in Denmark, France
and India were divested to theAmerican company Midwest Air
Technologies Inc. The Polish company Fomar Roulunds S.A. was notincluded in the transaction.
The result for the Rosti A/S Groupremained negative and was affected by non-recurring expenses due
to implemented and planned restructuring.
The activities in the UK in particular continued to affect the operation of Rosti negatively, and restructuring of activities continues.
Dansk Industri Syndikat A/S(DISA)'s result for 2003 was notsatisfactory and lower than in 2002.
The reason for this was partly a decline in turnover and partly considerable expenses related to adjustments
and reduction of staff in Germany,
France and Poland.
In the second half of 2003 themarket outside Europe improved,
resulting in an increased intake oforders for foundry equipment. In
2003, the factory in Herlev, Denmark completed the developmentof the world's largest vertical sandmoulding machine for castings.
Air purifying equipment wasmore dependent on the market inEurope and continued to achieve a
weak result and intake of orders.

The result for 2003 for the A/S
Roulunds Fabriker Group showed
progress, but is still not satisfactory. Competition remained keen for
The market for European rubber Maersk Air A/S in 2003. The mar-

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Side 25

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Side 26

ket was characterised by overcapacity and price pressure on fares.
The number of passengers on theinternational scheduled flights remained almost unchanged compared with the year before, whereas
the number of charter passengers
declined.
The overall result for the aviation
activities was a major loss, primarily
affected by considerable writedowns on the aircraft values due tothe declining USD exchange rate.
In 2003 Maersk Air Ltd, UK was
sold at a loss, while the ownershipinterests in Estonian Air was sold at
a profit.
To obtain a clear separation between ordinary operation and activities related to leasing, purchaseand sale of aircraft, Maersk Aircraft A/S was established towards
the end of the year. A total of 17
aircraft were sold to the newsubsidiary in the Maersk Air A/SGroup.
Star Air's freight services forUnited Parcel Service (UPS) in Europe continued with a satisfactory
result, and a contract for extension
was concluded.
In 2003 the Mærsk Data AS Groupchanged the internal organisationin order to strengthen the service toboth customers and suppliers in thecompany's primary markets. At thesame time, focusing has been initiated, resulting in the sale of activities
such as PC hardware and software.
The sale has affected the Group's
revenue in particular.
The result for the Mærsk Data
AS Group was at the level of thatfor 2002.

26

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Side 27

A.P. Moller - Maersk Group
Financial Report
Amounts in DKK millions. (In parenthesis the corresponding figures for 2002).

MergerWith effect from 1 January 2003
Aktieselskabet Dampskibsselskabet Svendborg, Dampskibsselskabet af 1912, Aktieselskab and A/S
Mesan, København merged with theformer as the continuing company
and with the name A.P. Møller Mærsk A/S. The dissolution of Tank-

ers and Liners in Partnership andOil and Gas Activity in Partnership
happened simultaneously. In themerger with Dampskibsselskabet
af 1912, Aktieselskab, the merged
companies have equally contributed to the overall operation andbalance sheet total in the Company.

To the shareholders in Dampskibsselskabet af 1912, Aktieselskab,
DKK 330 per share was distributed
as part of the merger consideration,
total DKK 713 million.
Equity at 1 January 2003 is derived
as follows:

Equity at 31 December 2002 of the A.P. Moller Group

77,948Cash merger consideration to the shareholders of Dampskibsselskabet af 1912, Aktieselskab- 713

Accounting adjustments in connection with the merger-5Equity at 1 January 2003

77,230

Expenses relating to the share capital increases derived from the merger amount to DKK 2 million.

Profit and Loss AccountNet result for the year was DKK USD/DKK exchange rate, which
17,273 million (DKK 12,058 mil- was down from 708 at the beginninglion).
of the year to 596 at the end of theyear. In 2003, the average exchangeThis result is affected signifi- rate was 16.5% below that of 2002.
cantly by the development in the This had a substantial negative ef2003

2002

Value adjustment of financial assets

2,518- 1,872

Exchange rate adjustment on loans, etc.

2,149

3,474

Tax effect

- 361

0

4,306

1,602

fect on the result before depreciation, amortisation and write-downs.
The following special items are included in the profit and loss account:

The value adjustment of financial Exchange rate adjustment on Result for the year before special
assets is mainly due to an increase loans, etc. primarily relates to loans items, but after tax is calculated asin the share price of Danske Bank in USD.
follows:
from 117 to 139 in 2003.
2003

2002

Result for the year before special items

21,955

18,952Tax- 8,869- 8,404

Minority interests

- 119

- 92

Result before special items - after tax

12,967

10,45627

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Side 28

A.P. Moller - Maersk Group
Financial Report
Amounts in DKK millions. (In parenthesis the corresponding figures for 2002).

This result was, as already men- could be reduced, while at the sametioned, slightly above the expecta- time the liquid funds increased.
tions stated in the Interim Report.
Legal disputes
In 2003, a settlement was reached
Balance SheetAt 31 December 2003, total assets regarding the remaining outstandamounted to DKK 173,034 million ing issues relating to the purchaseof Sealand's international con(DKK 170,578 million).
tainer activities in 1999. The settleTangible and intangible fixed assets ment has positively affected the reamounted to DKK 93,658 million sult for the year.
(DKK 99,174 million). The total
net addition amounted to DKK The A.P. Moller - Maersk Group is
17,039 million. Depreciation and party to other legal disputes. These
write-downs of DKK 17,764 million are not expected to have any noand exchange rate adjustment of ticeable effect on the accounts.
DKK 4,791 million were deducted.
Related parties
Liquid funds and marketable secu- The A.P. Møller og Hustru Chasrities, which are recognised as cur- tine Mc-Kinney Møllers Fond tilrent assets, amounted to a total of almene Formaal, Copenhagen has
DKK 29,482 million (DKK 23,706 control.
million).
Related parties also comprise theInterest-bearing debt (long and general management, members ofshort-term) amounted to DKK the Board of Directors, close family
42,336 million (DKK 50,928 mil- members as well as companies oplion). The reduction relating to net erated by them. Trading and interrepayment was DKK 1,909 million, company balances relate to ships
and exchange rate adjustment was chartering and brokering and transfer of shares and are based on the
DKK 6,683 million.
arm's length principle.
The total equity was DKK 92,188
million (DKK 77,230 million) at 31 Risks
December 2003. The net increase The shipping activities are very senincludes the net result for the year of sitive to trade conditions. Freight
DKK 17,273 million, and is less distri- rates and cargo volumes are sensibuted dividend of DKK 879 million tive to developments in the global
as well as exchange rate and other economy and international trade.
adjustments of DKK 1,436 million.
The income of the shipping business is mainly in USD. To limit the
Cash Flow Statement
Cash flow from operations currency exposure, shipping activiamounted to DKK 26,299 million ties are primarily financed by loans(DKK 24,820 million), and the total in USD and forward sales of USD
net investments were DKK 16,603 are made for partial hedging of themillion (DKK 18,133 million). Con- net cash flow for the coming 12sequently, the interest-bearing debt month period.
28

Regarding the financial risks reference is made to notes on financial
instruments in the Accounts.
The earnings of the Oil and Gas
Activities are sensitive to the development in oil prices and the USD
exchange rate. To limit the risks
and fluctuations, part of the oil production is sold on forward contracts
up to 12 months ahead.
The A.P. Moller - Maersk Group
has no particular concentration ofcustomers or suppliers and is notespecially dependent on certain
customers or suppliers.
Annual General Meeting anddividend
The Company's annual general
meeting will be held in Svendborg
28 April 2004 at 11 a.m.
The Board of Directors proposes a
dividend to the shareholders at
DKK 300 per share of DKK 1,000 total DKK 1,319 million (DKK 879
million).

A.P. Moller - Maersk Group
Directors’ Statement
The annual report for 2003 of A.P. Møller - Mærsk A/S has been prepared in accordance with theprovisions of the Danish Financial Statements Act and the requirements of the Copenhagen Stock
Exchange and gives in our opinion a true and fair view of the Group’s and the Company’ assets andliabilities, the financial position at 31 December 2003 and of the result of the Group’s and theCompany’s activities and the Group’s cash flow.
Copenhagen, 26 March 2004
Managing Owner:

A.P. Møller

Board of Directors of A.P. Møller - Mærsk A/S:

Michael Pram Rasmussen
ChairmanAne Mærsk Mc-Kinney Uggla

Poul J. Svanholm

Vice-chairman

Vice-chairman

Lars Kann-Rasmussen

Jan Leschly

Leise Mærsk Mc-Kinney Møller

Svend-Aage Nielsen

Jess Søderberg

Jan Tøpholm

Jens Erik Skovrider-Madsen

Henrik Lorensen Solmer

29

A.P. Moller - Maersk Group
Auditors’ report
To the shareholders of A.P. Møller - Mærsk A/S
We have audited the annual report of A.P. Møller - Mærsk A/S prepared by the Board of Directors
and Managing Owner for the financial year 1 January – 31 December 2003 with the aim of expressing
an opinion on the annual report based on our audit.
Basis of Opinion
We conducted our audit in accordance with Danish Auditing Standards and International Standards
on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance that the annual report is free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the accounts and disclosures in the annual report. An audit also includes
assessing the accounting policies used and significant estimates made by the Board of Directors andManaging Owner as well as evaluating the overall annual report presentation. We believe that our
audit provides a reasonable basis for our opinion.
Our audit has not resulted in any qualification.
OpinionIn our opinion, the annual report gives a true and fair view of the Group’s and the Company’s
financial position at 31 December 2003 and the result of the Group’s and Company’s activities andthe Group’s cash flow for the financial year 1 January – 31 December 2003 in accordance with theDanish Financial Statements Act and Danish Accounting Standards.
Copenhagen, 26 March 2004

30

Søren Thorup Sørensen
State Autorised Public Accountant

Gert Fisker Tomczyk
State Autorised Public Accountant

KPMG C. Jespersen

Grothen & Perregaard

Statsautoriseret Revisionsinteressentskab

Statsautoriseret Revisionsaktieselskab

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Side 31

A.P. Moller - Maersk GroupAccounting Policies
The annual report for 2003 of A.P.
Møller - Mærsk A/S has been prepared in accordance with the provisions of the Danish Financial Statements Act applicable to listedcompanies and the Copenhagen
Stock Exchange financial reporting
requirements for listed companies.
The accounting policies applied areunchanged from last year. As a result of the merger at 1 January 2003
with Dampskibsselskabet af 1912,
Aktieselskab and with A/S Mesan,
København the combined figures
for the merged companies, including
Tankers and Liners in Partnershipand Oil and Gas Activity in Partnership are used as comparative figuresfor 1999-2002 in the parent company. Expenses relating to the merger are included in the result for theyear. Intercompany income and expenses, balances and ownership interests are eliminated. The mergerbalance at 1 January 2003 is used ascomperative figures for 2002 in thebalance sheet for the parent company. The equity in the comparitive
figures for 2002 for the Group is adjusted by merger adjustments at 1 Januray 2003.
Consolidation
The consolidated financial statements comprise the companies ofwhich A.P. Møller - Mærsk A/S hascontrol.
Intercompany income and expenses, shareholdings, balancesand dividends and gains and losses
on intercompany transactions are
eliminated.
On acquisition of new companies,
their assets and liabilities are measured at fair value at the date of acquisition. Restructuring costs in theacquired company are provided for.

Goodwill on acquisitions is recognised as an intangible fixed asset and isamortised based on an individual assessment of the economic life. Goodwill on acquisition before 1 January
2002 has been written off against
equity in the year of acquisition.
Entities jointly controlled with one
or more other undertakings are included pro rata in the consolidated
financial statements. Financial statement items related to partly owned
ships are included pro rata.

lated at average exchange rates,
month by month, and balance sheet
items at the year-end rate. Exchange
rate adjustments arising from thistranslation are taken directly to equity.
Derivatives are measured at fair value and included in other receivables (positive fair value) or otherdebt (negative fair value).

Changes in the value of derivatives
used to hedge the value of recognised assets or liabilities are recogniAssociated companies are recogni- sed in the profit and loss account tosed in the balance sheet at the gether with the changes in the value
Group's share of the equity value of the hedged assets and liabilities.
and in the profit and loss account at
the Group's share of the net results. Changes in the value of derivatives
used to hedge future transactions
Goodwill on acquisition of associ- are recognised directly in equity
ated companies is recognised as until the hedged transactions arepart of the equity value and is amor- realised, at which time value chantised based on an individual assess- ges are included in the hedged
ment of the economic life. Goodwill transactions.
on acquisitions before 1 January
2002 has been written off against Profit and Loss AccountNet revenue comprises invoiced saequity in the year of acquisition.
les. Uncompleted voyages in the
shipping activities are recognised
Currency translation
Transactions in other currencies than with the share related to the finanDKK are translated into DKK at the cial year. The result for vessels,
exchange rate prevailing at the date which is part of pool arrangementsof the transaction. Monetary items in is recognised in net revenue based
foreign currencies not settled at year on time charter equivalents.
end are translated into DKK at the
Net revenue regarding the Oil andexchange rate at year end.
Gas activities is calculated as the
Exchange rate gains and losses re- Group's share of the value of the oil
lating to net revenue, operating and gas production in the ventures
costs, etc. are included in these in which the Group participates.
items. Other realised and unrealised exchange rate gains and losses Tax on result for the year includes
are included in the profit and loss the amount estimated to be paid forthe year, adjusted for the change inaccount as special items.
deferred tax.
By recognition of financial statements in other currencies than DKK The tax amount includes the special
the income and expense items trans- taxes relating to exploitation and31

523296_uk_s31 33.qxd

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Side 32

A.P. Moller - Maersk GroupAccounting Policies
production of hydrocarbons (roy- are fixed assets are recognised inalties, oil pipeline taxes and the like). the profit and loss account as a special item. Other changes in fair value are recognised under financial
The Balance Sheet
Intangible fixed assets are valued at income or expenses.
cost less accumulated amortisation,
which is provided over the expected Stocks and inventories are measueconomic life, normally 3-10 years. red at cost, primarily according to
the FIFO method. Write-down is
Impairment write-downs are made made to any lower value and forobsolescence. Cost of finished gowhen deemed necessary.
ods and work in progress includes
Tangible fixed assets are valued at direct and indirect production
cost less accumulated depreciation. costs.
Depreciation is based on the estimated economic lives of new assets Receivables are normally measured at nominal value. Write-down
as follows:
is made for anticipated losses.
Vessels and rigs, etc.
15-20 years
Containers, etc.
8-12 years
Aircraft
15-20 years
Buildings
10-50 years
Technical plant and machines 5-15 years
Other equipment, etc.
3-7 years
Oil and gas production
facilities, etc.
up to 15 years
Exploration expenses regarding
the oil and gas activities up to 5 years

Impairment write-downs are madewhen deemed necessary.
Dry-docking costs are recognisedin the balance sheet when incurred,
and allocated over the period until
the next dry-docking.
The cost of assets produced by theGroup includes direct and indirect
expenses.
Assets held under finance leases
are treated the same way as othertangible fixed assets.
Securities and investments are recognised at market value for listed
securities and at estimated fair value for other securities. Changes in
the fair value of shares etc. which
32

Capitalised liabilities in respect offinance leases are included as liabilities in the balance sheet.
Cash Flow Statement
The cash flow statement shows theGroup's cash flows for the year divided into cash flow from operating
activities, cash flow for investingactivities and cash flow from financing activities.
Cash and cash equivalents comprise cash and bank deposits as well
as bonds and other marketable securities.

Segment information
Key figures from the consolidated
financial statements shown in the
Directors' report are divided into
EquityDividend for distribution is in- the following business areas:
cluded as part of the equity. Own- Container shipping and relatedshares are deducted directly in equactivities
ity and are recognised without va- Tankers, Trampers, Offshorelue.
and other shipping activities- Oil and Gas activities
Deferred taxes- Retail activity
Provision for deferred tax is made- Shipyards, other industrial comon differences between the accopanies, Aviation, IT, etc.
unting and tax values of assets andliabilities. Deferred tax assets are Eliminations and unallocated items
recognised at the value at which comprise elimination of intercomthey are expected to be realised. pany transactions as well as expenses, adjustment of provisions,
Other provisions include pension write-downs and financial income
obligations, abandonment of oil fi- and expenses which are allocatedelds, expected restructuring costs to business segments.
etc. Provisions are recognised basedon specific estimates. Pension obli- For companies that are included ingations are recognised based on more than one of the segments, inactuarial calculation. Actuarial ga- terest and interest-bearing debt are
ins and losses are recognised over a allocated according to the book vafew years. Provision is made for an- lue of the segment assets.
ticipated losses on contracts includKey Figures
ing capital commitments.
Return on equity is the profit for
Financial liabilities are initially me- the year divided by the average
asured at the proceeds received. equity.
Any premium or discount is amor- Equity ratio is equity divided by totised over the life of the liabilities. tal equity and liabilities.

523296_uk_s31 33.qxd

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Side 33

A.P. Moller - Maersk GroupAccounting Policies
Net result per share is the net result
for the year divided by the numberof shares (of DKK 1,000). For theperiod before 1 January 2003, thenumber of shares resulting from themerger has been applied. Deduction is made for the Group's holding of own shares.
Dividend per share is also calculated on the basis of the number ofshares existing after the merger.

33

A.P. Moller - Maersk Group
Profit and Loss Account for 2003
All amounts in DKK millions
Note

2003

2002

157,112

151,579

Other operating income

2,282

1,812

2

External expenses

96,981

94,564

3

Staff expenses

22,903

23,116

Result before depreciation and write-downs, etc.

39,51035,711

Depreciation, amortisation and write-downs, etc.

17,764

15,621Result before financial items

21,74620,090568

504

Financial income

2,185

1,584

Financial expenses

2,544

3,226

Result before special items

21,955

18,952

Value adjustment of financial assets

2,518- 1,872

Exchange rate adjustment of loans, etc.

2,149

3,474

Result before tax

26,622

20,554

Tax on result for the year

9,230

8,404

Result for the year

17,392

12,15014 Minority interests

- 119

- 92

17,273

12,058

1

4
9
5

6

Net revenue

Associated companies – share of result before tax

A.P. Moller - Maersk Group’s
share of the result for the year

35

A.P. Moller - Maersk Group
Assets at 31 December 2003
All amounts in DKK millions
Note

2003

2002

7 Intangible fixed assets

1,065

567

Vessels, rigs, containers, aircraft, etc.

64,946

66,967

Production facilities and equipment, etc.

14,731

14,067

Land and buildings

7,083

7,839

Construction work in progress and payment on
account for tangible fixed assets

5,833

9,734

92,593

98,607

Investment interests in associated companies

3,860

4,313

Securities and investments

15,47012,167

Receivables

1,279

970

9 Financial fixed assets

20,60917,450Total fixed assets

114,267

116,624

10 Stocks and inventories

3,928

4,165

Trade receivables

15,607

16,152Other receivables

6,555

7,277

11 Deferred tax asset

662

620

Prepaid expenses

2,533

2,034

12 Receivables

25,35726,083

Securities

13,934

10,376

15,54813,330Total current assets

58,767

53,954TOTAL ASSETS

173,034

170,578

8 Tangible fixed assets

18 Cash36

A.P. Moller - Maersk Group
Liabilities at 31 December 2003
All amounts in DKK millions
Note

2003

2002

13 Share capital

4,396

4,396

Other reserves

86,473

71,955

Dividend for distribution

1,319

879

Equity92,18877,230532

773

11 Deferred tax

2,691

2,390

15 Other provisions

4,574

6,085

Provisions

7,265

8,475

Banks and other credit institutions

33,607

40,831457

685

16 Long-term debt

34,06441,51616 Short-term portion of long-term debt

6,970

4,456

Banks and other credit institutions

761

4,092

17,272

16,600541

864

Company tax

2,392

2,394

Other debt

8,130

11,752

Deferred income

2,919

2,426

Short-term debt

38,98542,584

Total debt

73,04984,100TOTAL LIABILITIES

173,034

170,578

14 Minority interests

Debt to associated companies

Trade payables
Debt to associated companies

17 Other financial obligations and mortgages
18 Financial instruments

37

A.P. Moller - Maersk Group
Equity Statement
All amounts in DKK millions
Share capital

Other reserves

Dividend for
distribution

Total

1,825

64,394659

66,878Dividend distributed regarding prior year

-

-

- 659

- 659

Result for the year-

11,179879

12,058Exchange rate adjustment regarding translation ofcompanies in foreign currencies *-- 1,724-- 1,724

Value adjustment of hedging instruments after tax

-

805

-

805

Other

-

590

-

590

Equity at 31 December 2002

1,825

75,244879

77,948Adjustments relating to merger

2,571- 2,576

-

-5

-

- 713

-

- 713

4,396

71,955879

77,230

Dividend distributed regarding prior year

-

-

- 879

- 879

Result for the year-

15,954

1,319

17,273

Exchange rate adjustment regarding translation ofcompanies in foreign currencies *-- 2,305-- 2,305

Value adjustment of hedging instruments after tax

-

807

-

807

Dividend and cash merger consideration
regarding own shares

-

103

-

103

Other

-

- 41

-

- 41

4,396

86,473

1,319

92,188Equity at 1 January 2002

Cash merger consideration
Adjusted equity at 1 January 2003

Equity at 31 December 2003*) For the period 1999-2003, the equity of the A.P. Moller - Maersk Group has in total been reduced by DKK
2.3b regarding exchange rate adjustments of foreign companies.

38

A.P. Moller - Maersk Group
Cash Flow Statement for 2003
All amounts in DKK millions
Note

2003

2002

Result before financial items

21,74620,090Depreciation, amortisation and write-downs, etc.

17,764

15,621Other non cash items- 2,227- 978

19 Change in working capital- 1,278- 168

Financial income

1,971

1,284

Financial expenses- 2,379- 3,050

Taxes paid

- 9,298- 7,979

Cash flow from operating activities

26,29924,820Purchase of intangible and tangible fixed assets- 19,934- 21,485

Disposal of intangible and tangible fixed assets

3,716

4,457

20 Purchase of companies and activities

- 65

- 398

21 Sale of companies and activities

497-

Purchase/sale of securities, net

- 571

- 707

Purchase/sale of associated companies, etc., net

- 246

-

Cash flow used for investing activities- 16,603- 18,133

Repayment of loans- 10,325- 13,101

Proceeds from loans

8,416

7,820

Dividend distributed

- 879

- 659

Dividend distributed to minority interests

- 205

- 42

Cash merger consideration

- 713

-

Other

271

300

Cash flow from financing activities- 3,435- 5,682

Net cash flow for the year

6,261

1,005

Cash and cash equivalents at 1 January

23,706

22,667

Exchange rate adjustments, etc.

- 485

34

Cash and cash equivalents at 31 December

29,482

23,706

Shares

1,758

993

Bonds *)

12,176

9,383

Cash

15,54813,33029,482

23,706Comprising:*) Bonds include those maturing after more than three months

39

A.P. Moller - Maersk Group
Notes to the annual accounts 2003
All amounts in DKK millions (In parenthesis the corresponding figures for 2002).
1 Net revenue
Segment information distributed on main activities is given in the Directors’ Report.
Below is set out the geographical distribution of the Group’s net revenue which for the
shipping activities are based on the receiving country.

Net revenue 2003

EuropeNorth andSouth America

Asia

Other

Total

76,61937,294

17,61425,585

157,112

2003

2002

2 External expenses
Fees to the statutory auditors of A. P. Møller - Mærsk A/S
J. Frank Jakobsen:

Fee for auditing
Fee for services other than auditing

-

10.2
5.4

G. Fisker Tomczyk:

Fee for auditing
Fee for services other than auditing

10.4
9.0

-

S. Thorup Sørensen:

Fee for auditing
Fee for services other than auditing

16.3
14.1

16.1
11.5

External expenses include fees, etc. to the managing owner, Firmaet A.P. Møller A/S, andother fees to partners DKK 64.0m (DKK 62.6m).
3 Staff expenses
Directors’ fees
Salaries and wages
Pension contributions
Other social security costs
Average number of employees excluding
jointly controlled companies
4

Depreciation, amortisation and write-downs, etc.
Intangible fixed assets
Vessels, rigs, containers, aircraft, etc.
Production facilities and equipment, etc.
Land and buildings
Construction work in progress and payment on accountfor tangible fixed assets
Abandonment of oil fields

40

2003

2002

12
20,569787
1,535
22,903

921,149683
1,275
23,116

63,161

61,294

2003

2002

233
11,119
5,779
623

209
9,548
4,283
805

10
17,764326
450
15,621

A.P. Moller - Maersk Group
Notes to the annual accounts 2003
All amounts in DKK millions (In parenthesis the corresponding figures for 2002).
5 Financial expenses
Interest paid to associated companies
6 Tax on result for the year
Current tax including hydrocarbon tax
Adjustment of deferred tax
Tax in associated companies
Total tax
Tax for the year can be reconciled as follows:
Result before tax
Income subject to Danish and foreign tonnage taxation, etc.
Calculated tax at 30%
Adjustments for:Additional/less tax in foreign companies, net
Additional tax in oil segments (royalty tax,
oil pipeline taxes, etc.)
Freight and tonnage taxes, etc.
Adjustments to previous years’ taxes
Tax losses not capitalised
Other permanent differences, etc.
Total tax
7 Intangible fixed assets

2003

2002

61

92

2003

2002

8,994
71
165
9,230

8,291
- 102
215
8,404

26,622- 5,228
21,394

20,554- 2,598
17,956

6,418

5,386

91

93

3,076
341
- 41
117
- 772
9,230

2,326
322
- 208
407
78
8,404

Goodwill

IT software*)Rights

Total

368
- 16
140
- 13
479

148
-4
235
-9
135
505

540
- 17
243
- 279
487

1,056
- 37
618
- 301
135
1,471

At 1 January 2003
Exchange rate adjustment
Amortisation for the year
Write-downs for the year
Disposals during the year
At 31 December 2003

33
-2
98
2
- 13
118

36
-2
83
-4
113

420
- 16
50
- 279
175

489
- 20
231
2
- 296
406

Book value at 31 December 2003

361

392

312

1,065

Cost:
At 1 January 2003
Exchange rate adjustment
Additions during the year
Disposals during the year
Transferred
At 31 December 2003
Amortisation and write-downs:*) DKK 250m of this relating to ongoing development of IT software.

41

A.P. Moller - Maersk Group
Notes to the annual accounts 2003
All amounts in DKK millions (In parenthesis the corresponding figures for 2002).
Note 7 continued

Information about goodwill etc. related toacquisitions for the period 1998-2001:

1998
1999
2000
2001

The year’s
acquisitions
at costTotal goodwill
for the year

565
7,541
2,295
2,214

465
7,369
2,018
1,539

The cost comprises the net purchase price paid for the acquired companies.
Goodwill related to acquisitions of companies before 1 January 2002 has been written off against
reserves in the year of acquisition.

Land andbuildings

Construction
work inprogress andpayment on
account for
tangible fixed
assets8 Tangible fixed assets
Vessels, rigs,
Production
containers,
facilities andaircraft, etc. equipment, etc.

Cost:
At 1 January 2003
Exchange rate adjustment
Additions during the year
Disposals during the year
Transferred
At 31 December 2003

117,021- 5,252
5,194- 4,239
8,860
121,584

50,180- 829
2,530- 2,884
5,619
54,616

13,059
- 439
634
- 994
82
12,342

10,060- 73
10,608- 56- 14,696
5,843

At 1 January 2003
Exchange rate adjustment
Disposals during the year
Depreciation for the year
Write-downs for the year
Transferred
At 31 December 2003

50,054- 1,641- 2,866
9,425
1,694
- 28
56,63836,113- 93- 2,268
5,183
596
354
39,885

5,220
- 85
- 499
561
62
5,259

326
10
- 326
10

Book value at 31 December 2003

64,946

14,731

7,083

5,833

Hereof financial leased assets

4,807

39

180

-

Depreciation and write-downs:

The official tax valuation regarding Danish properties at a book value of DKK 3,011m (DKK 3,308m)
amounts to DKK 5,242m (DKK 5,646m).
At the end of 2003, the A.P. Moller - Maersk Group has capital commitments relating to vessels, rigs,
containers, etc. on order amounting to DKK 12.1b (DKK 5.3b).
Ownership of production facilities etc. relating to oil production in Qatar and in Algeria at a bookvalue of DKK 7.6b (DKK 8.0b) is being transferred to State-owned oil companies according
toagreement. The consortia have the right of use during the concession period.

42

A.P. Moller - Maersk Group
Notes to the annual accounts 2003
All amounts in DKK millions (In parenthesis the corresponding figures for 2002).
9 Financial fixed assets

Investments inassociatedcompanies

Securities andinvestments

Receivables

3,462
- 351
261
- 114
- 864
2,394

5,102
- 81
745
- 243
329
5,852

970
- 148
412
- 17
62
1,279

At 1 January 2003
Exchange rate adjustment
Dividend distributed
Result for the year before tax
Tax
Value adjustment for the year, net
Disposals during the year
At 31 December 2003

851
236
- 97
568
- 165
73
1,466

7,065
- 29
2,584
-2
9,618

-

Book value at 31 December 2003

3,860

15,470

1,279

Cost:
At 1 January 2003
Exchange rate adjustment
Additions during the year
Disposals during the year
Transferred
At 31 December 2003
Value adjustments:

Other receivables include receivables from associated companies of DKK 325m
(DKK 368m).
10 Stocks and inventories
Raw materials and consumables
Work in progress
Finished goods and trading stock/inventory
Bunkers

2003

2002

1,109
258
1,887
3,254
674
3,928

1,305
323
1,906
3,534
631
4,165

43

A.P. Moller - Maersk Group
Notes to the annual accounts 2003
All amounts in DKK millions (In parenthesis the corresponding figures for 2002).
11 Deferred tax
Deferred tax at 1 January
Exchange rate adjustment, etc.
Change in deferred tax for the year
Other
Deferred tax at 31 December

2003

2002

1,770
32
71
156
2,029

1,562
338
- 102
- 28
1,770

662
2,691
2,029

620
2,390
1,770

426
1,268
652
284
76
- 227
- 98
- 352
2,029

473
1,475
471
266
51
- 124
- 89
- 753
1,770

The amount can be specified as follows:
Deferred tax asset
Deferred tax (provision)
Deferred tax relates to:
Intangible fixed assets
Tangible fixed assets
Financial fixed assets
Hedge instruments
Current assets
Provisions
Debt
Other

In relation to the special hydrocarbon tax, there are field specific losses carriedforward of about DKK 4.6b in total. Since there is significant uncertainty as towhether the tax value of these losses will be utilised, they are not recognised in
the accounts.
Other non recognised tax assets are estimated at DKK 181m (DKK 64m).

12 Receivables

2003

2002

64
42
106

55
77
132

Receivables due after 1 year:
Trade receivables
Other receivables

44

A.P. Moller - Maersk Group
Notes to the annual accounts 2003
All amounts in DKK millions (In parenthesis the corresponding figures for 2002).
13 Share capital
Own shares (B shares):

No of sharesof DKK 1,000

Nominal value% of sharecapitalAt 1 January 2003
Addition during the year
At 31 December 2003

280,838
121
280,959

281
281

6.4%
0.0%
6.4%

2003

2002

773
- 15
- 163
- 205
119
23
532

625
- 64
95
- 42
92
67
773

14 Minority interests
At 1 January
Exchange rate adjustment
Adjustment, acquisition/sale of undertakings
Dividend distributed
Result for the year
Other
At 31 December
15 Other provisions

Abandonment

Pensions

Other

Total

At 1 January 2003
Exchange rate adjustment
Transferred
Used during the year
Reversed during the year
Provisions for the year
At 31December 2003

2,190
2,190

633
- 71
149
- 254
- 41
278
694

3,262
- 45
31
- 956
- 1,132
530
1,690

6,085
- 116
180
- 1,210- 1,173808
4,574

Short-term portionLong-term portion

2,190
2,190

44
650
694

755
935
1,690

799
3,775
4,574

Provisions for abandonment comprise estimated costs for abandonment of oil fields.
Unrecognised part of the pension obligations amounts to DKK 285m which will berecognised over a few years according to the accounting policies applied.
”Other” includes provisions relating to ongoing restructuring, guarantees and anticipatedlosses on contracts, etc.

45

A.P. Moller - Maersk Group
Notes to the annual accounts 2003
All amounts in DKK millions (In parenthesis the corresponding figures for 2002).
16 Long-term debt
Banks and other credit institutions
Finance lease
Short-term portion of long-term debt
Total long-term debt

2003

2002

26,906
7,158
34,064
6,970
41,03432,6808,836
41,516
4,456
45,972

6,970
20,92013,144
41,034

4,456
26,177
15,33945,972

Due as follows:
Within 1 year
Between 1 and 5 years
After 5 years

17 Other financial obligations and mortgages
Bank loans and other debt to credit institutions etc. are secured on vessels, etc. and containers in theamount of DKK 20,056m (DKK 20,589m). The book value of the vessels, etc. and containers provided as
security is DKK 27,201m (DKK 30,088m).
Guarantees amount to DKK 407m (DKK 472m).
The necessary facility of USD 239m has been established in order to meet the requirements for trading on
the USA under the American Oil Pollution Act of 1990, the so-called Certificate of Financial
Responsibility.
When exploring or producing oil in foreign countries, each subsidiary is generally liable for contractual
obligations jointly with the other consortium associates.
Tax may crystalise if the company leaves the tonnage tax regimes.
Due to collective agreements, some companies in the A.P. Moller - Maersk Group participate together
with other enterprises in defined benefit pension and health insurance schemes for current and retired
employees (multi employer plans). In 2003, the Group’s contribution is estimated to approximately DKK265m (DKK 275m). Underfunding in some of the schemes can necessitate increased contributions in the
future.
As part of the Group’s activities, customary agreements are concluded regarding charter and operatinglease of ships, containers, and port facilities, etc.
The future charter and lease payments are:Within 1 year
Between 1 and 5 years
After 5 years

46

2003

2002

9,591
17,301
12,881
39,773

9,568
14,752
12,45536,775

A.P. Moller - Maersk Group
Notes to the annual accounts 2003
All amounts in DKK millions (In parenthesis the corresponding figures for 2002).
18 Financial instruments
Bonds
DKK
EUR
USD
Other currencies
SharesListed shares
Non listed shares
Cash
USD
EUR
DKK
Other currencies

Book value

Average duration - years

2003

2002

2003

2002

2003

2002

10,637
1,132
208
199

8,057
1,326
-

5.0%
2.9%
1.5%
4.1%

6.3%
4.4%
-

4.1
0.1
0.1
0.2

4.0
4.6
-

2003

2002

16,094
1,134

12,225
935

2003

2002

5,087
2,337
5,981
2,143
15,548

5,114
1,829
4,006
2,381
13,330Loans and finance leaseobligations

USD
EUR
DKK
Other currencies

Net yield

2003

2002

Interest spanInterest span

0-3%

3-6%

6%-

Total

0-3%

3-6%

6%-

Total

14,697
1,993
9,836
441
26,967

1,440
702
2,736
812
5,690

8,590
21
883
185
9,679

24,7272,716
13,455
1,438
42,336

18,78025
1,269
349
20,423

3,970
3,840
8,702
1,944
18,456

10,68597
1,034
233
12,04933,435
3,962
11,0052,526
50,928

Of which bearing fixed interest, including interest swaps

23,27835,036

Of which bearing floating interest, including interest swaps

19,05815,892

The result for the year includes exchange rate adjustments of a total of DKK 2,079m (DKK 2,715m) as
net income.
Interest rate swaps
USD
EUR
DKK
Other currencies
Of which recognised
For future recognition

Market value

2003

2002

- 594
- 17
171
70
- 370
166
- 536

- 1,331-9274- 32- 1,098152- 1,250

Interest rate swaps are used for hedging the interest exposure on loans.
The market value which will be recognised in future periods relates to the conversion of floating interest
to fixed interest on loans.

47

A.P. Moller - Maersk Group
Notes to the annual accounts 2003
All amounts in DKK millions (In parenthesis the corresponding figures for 2002).
Note 18 continued
Currency forward and option contracts
USD
EUR
Other currencies

Bought/sold, net

Market value

2003

2002

2003

2002

- 10,852
4,897
- 747

- 17,645- 1,014
- 13

2,263
92
- 689
1,666
153
1,513

1,777
48
15
1,840
77
1,763

Of which recognised
For future recognition

The market value for future recognition relates to hedging of expected revenue and expenses in 2004.
Other currency distribution
Receivables from sales are primarily settled in USD, while debt to suppliers is settled in a variety ofcurrencies, primarily USD and EUR.
Credit risks
The A.P. Moller - Maersk Group has no concentration of credit risks.
Freight and bunker hedges
Freight hedges
Bunker hedges
For future recognition
Oil hedge contracts

2002

2003

2002

145
255

355
990

- 21
32
11

- 11
99
88

Market value

Principal

2003

2002

2003

2002

Oil hedge contracts
For future recognition

3,469

1,420

- 79
- 79

- 260
- 260

19 Change in working capital

2003

2002

190
437
179
- 2,084- 1,278

- 598
58
- 596
968
- 168

Stocks and inventories
Trade receivables
Other receivables and prepaid expenses, etc.
Trade payables and other debt, etc.

48

Market value

Principal

2003

A.P. Moller - Maersk Group
Notes to the annual accounts 2003
All amounts in DKK millions (In parenthesis the corresponding figures for 2002).
20 Purchase of companies and activities

2003

2002

Fixed assets
Receivables and inventories
Provisions
Long-term debt
Short-term debt
Aquired net assets

- 89
- 36
12
75
24
- 14

- 430
- 579
206
163
518
- 122

Goodwill
Integration and acquistition expenses
Purchase price including expenses

- 50
-1
- 65

- 368
- 490

Cash in acquired companies
Cash flow from acquisition of companies and activities

- 65

92
- 398

21 Sale of companies and activities

2003

2002

Fixed assets
Receivables and inventories
ProvisonsLong-term debt
Short-term debt
Minority interests
Net assets sold

1,484
845
- 95
- 1,263
- 486
- 15
470

-

Transaction expenses
Gain on sale, net
Sales price including expenses

- 28
68
510

-

Cash in sold companies
Cash flow from sale of companies

- 13
497

-

49

523296_uk_skilleblad.qxd

25 03 2004

15:31

Side 47

A.P. MØLLER - MÆRSK A/S

A.P. Møller - Mærsk A/SFinancial Highlights
Amounts in DKK millions

2003

2002

2001

2000

1999

Net revenue

81,116

81,16089,07984,30949,023Result before depreciation andwrite-downs, etc.

18,735

16,68017,428

16,97011,118Depreciation, amortisation andwrite-downs, etc.

7,658

7,629

7,830

7,498

5,733

Group and associated companies –share of result before tax

10,462

10,053

8,336

11,942

6,690

398

- 456

- 870

- 999

- 400

Result before special items

21,937

18,64817,064

20,415

11,675

Value adjustment of financial assets

2,305- 1,326

- 506

4,643

- 399

Exchange rate adjustment of loans, etc.

2,156

3,089

- 1,121- 1,608- 1,814

Result before tax

26,39820,411

15,43723,4509,462

Result for the year

17,273

12,058

8,457

15,970

4,972

Total assets

137,994

126,262

119,823

115,115

91,556Equity92,18877,23066,87861,216

46,042

Net investments in tangible fixed assets

11,196

8,346

11,502

12,62812,301Return on equity

20.4%

16.7%

13.2%

29.8%

10.5%

Net result per share, DKK *)

4,198

2,930

2,078

3,923

1,221

Dividend per share, DKK *)

300

200

150

150

110

Financial items, net

Goodwill related to acquisitions before 1 January 2002 has been written off against reserves in the year ofacquisition.

*) When calculating result per share and dividend per share for all years the share capital resulting from themerger has been applied. In the calculation of result per share, the Group’s holding of own shares
has been deducted.

53

A.P. Møller - Mærsk A/SProfit and Loss Account for 2003
All amounts in DKK millions

2003

2002

81,116

81,160114

339

External expenses

62,49564,819Result before depreciation and write-downs, etc.

18,735

16,680Depreciation, amortisation and write-downs, etc.

7,658

7,629

Result before financial items

11,077

9,051

Group companies – share of result before tax

8,983

8,665

Associated companies – share of result before tax

1,479

1,388

4

Financial income

1,524

1,075

5

Financial expenses

1,126

1,531

Result before special items

21,937

18,648

Value adjustment of financial assets

2,305- 1,326

Exchange rate adjustment of loans, etc.

2,156

3,089

Result before tax

26,39820,411

Tax on result for the year

9,125

8,353

Result for the year

17,273

12,058Dividend

1,319

879

Net revaluation according to the equity method

5,657

5,438

Retained earnings

10,297

5,741

17,273

12,058

300

200

Note

1

Net revenue
Other operating income

2
3

6

Appropriation:

Dividend per share, DKK

55

A.P. Møller - Mærsk A/SAssets at 31 December 2003
All amounts in DKK millions

2003

2002

380

143

Vessels, rigs, containers, etc.

40,60040,091

Production facilities and equipment, etc.

3,461

3,302

135

152

Construction work in progress and payment on
account for tangible fixed assets

3,560

4,969

8

Tangible fixed assets

47,756

48,5149Investment interests in group companies

29,822

26,8989Investment interests in associated companies

8,520

7,712

13,063

10,095

10 Receivables from group companies

247-

10 Receivables from associated companies

315

368

10 Other receivables

465-

Financial fixed assets

52,43245,073

Total fixed assets

100,568

93,730Stocks and inventories
Trade receivables

829
8,847

758
8,534

Receivables from group companies

9,628

6,653

68

113

Other receivables

1,545

1,956

Prepaid expenses

902

1,218

Receivables

20,99018,474

Securities

9,738

8,118

5,869

5,182

Total current assets

37,42632,532TOTAL ASSETS

137,994

126,262Note

7Intangible fixed assets

Land and buildings

10 Securities and investments

Receivables from associated companies

16 Cash56

A.P. Møller - Mærsk A/S
Liabilities at 31 December 2003
All amounts in DKK millions
Note

2003

2002

11 Share capital

4,396

4,396

Net revaluation according to the equity method

29,881

27,118Retained earnings

56,592

44,837

Dividend for distribution

1,319

879

Equity92,18877,23012 Deferred tax

947

831

13 Other provisions

2,545

3,553

Provisions

3,492

4,384

Banks and other credit institutions

18,11019,535

227

415

3,906

4,329

14 Long-term debt

22,24324,27914 Short-term portion of long-term debt

1,996

2,207

Banks and other credit institutions

383

468

Trade payables

8,938

9,469

Debt to group companies

3,620

1,685

373

353

Company tax

1,860

1,527

Other debt

1,638

3,191

Deferred income

1,263

1,469

Short-term debt

20,071

20,369Total debt

42,31444,648TOTAL LIABILITIES

137,994

126,262

Debt to group companies
Debt to associated companies

Debt to associated companies

15 Other financial obligations and mortgages
16 Financial instruments

57

A.P. Møller - Mærsk A/S
Equity Statement
All amounts in DKK millions
Net revaluationaccording to
the equity
Share capitalmethodEquity at 1 January 2002
A/S D/S Svendborg

Dividend for
distribution

Total

745

25,362

8,494

335

34,936

1,080

25,545

6,576

324

33,525-- 28,459

26,876-- 1,583

1,825

22,44841,946659

66,878Dividend distributed
regarding prior year

-

-

-

- 659

- 659

Result for the year

-

5,438

5,741

879

12,058Dividend from subsidiaries andassociated companies and othertransfers, net

-

- 675

675

-

-

Exchange rate adjustment, etc.
regarding non Danish companies-- 1,724--- 1,724

Value adjustments of hedging
instruments after tax

-

-

- 89

-

- 89

Other equity movements in groupcompanies, etc.

-

1,484

-

-

1,484

Equity at 31 December 2002

1,825

26,971

48,273879

77,948Adjustments relating to merger

2,571

147

- 2,723

-

-5

-

-

- 713

-

- 713

4,396

27,11844,837879

77,230

Dividend distributed
regarding prior year

-

-

-

- 879

- 879

Result for the year

-

5,657

10,297

1,319

17,273

Dividend, etc. from subsidiaries andassociated companies and othertransfers, net

-

- 313

313

-

-

Exchange rate adjustment, etc.
regarding non Danish Companies-- 2,305--- 2,305

Value adjustments of hedging
instruments after tax

-

-

167

-

167

Own shares sold to subsidiary

-

- 978

978

-

-

Other equity movements in groupcompanies, etc.

-

702

-

-

702

4,396

29,881

56,592

1,319

92,188D/S af 1912 A/S
Adjustments relating to merger
Adjusted equity at 1 January 2002

Cash merger consideration
Adjusted equity at 1 January 2003

Equity at 31 December 2003

58

Retainedearnings

A.P. Møller - Mærsk A/S
Notes to the annual accounts 2003
All amounts in DKK millions (In parenthesis the corresponding figures for 2002).
1 Net revenue
Below is set out the geographical distribution of the Company’s net revenue which for the
shipping activities are based on the receiving country.

Net revenue 2003

EuropeNorth andSouth America

Asia

Other

Total

30,107

25,699

11,572

13,738

81,1162 External expenses
This item includes a fee to the managing owner, Firmaet A.P. Møller A/S, and other fees topartners of DKK 53.0m (DKK 51.5m).
Directors’ fees are DKK 11m (DKK 8m).
The Company has no employees of its own as all engaged are employed byRederiet A.P. Møller A/S.
Fees to the statutory auditors of A.P. Møller - Mærsk A/S

2003

2002

J. Frank Jakobsen:

Fee for auditing
Fee for services other than auditing

-

4.6
3.1

G. Fisker Tomczyk:

Fee for auditing
Fee for services other than auditing

5.2
4.9

-

S. Thorup Sørensen:

Fee for auditing
Fee for services other than auditing

5.2
4.6

4.6
3.1

2003

2002

77
6,206
1,358
17
7,658

38
5,960
1,168
13
450
7,629

2003

2002

573
201
171
579
1,524

662
15
398
1,075

3 Depreciation, amortisation and write-downs, etc.
Intangible fixed assets
Vessels, rigs, containers, etc.
Production facilities and equipment, etc.
Land and buildings
Abandonment of oil fields

4 Financial income
Interest, cash and securities, etc.
Interest income from group companies
Value adjustment of current asset securities
Dividends

59

A.P. Møller - Mærsk A/S
Notes to the annual accounts 2003
All amounts in DKK millions (In parenthesis the corresponding figures for 2002).
5 Financial expenses
Interest, banks and other credit institutions, etc.
Interest to group companies
Interest to associated companies

6 Tax on result for the year
Current tax including hydrocarbon tax
Adjustment of deferred tax
Adjustment of tax relating to previous years
Total tax for the year
Tax in group companies and associated companies
Total tax

2003

2002

894
20
212
1,126

1,289
20
222
1,531

2003

2002

4,135
185
4,320
4,805
9,125

3,778
- 56
16
3,738
4,615
8,353

For further reference see to note 6 in the annual accounts for the A.P. Moller - Maersk Group.
7 Intangible fixed assets

Goodwill

IT software *)

Total

98
98

83
187
127
397

181
187
127
495

At 1 January 2003
Amortisation for the year
At 31 December 2003

8
20
28

30
57
87

38
77
115

Book value at 31 December 2003

70

310

380

Cost:
At 1 January 2003
Additions during the year
Transferred
At 31 December 2003
Amortisation and write-downs:*) DKK 250m of this relating to ongoing development of IT software.

60

A.P. Møller - Mærsk A/S
Notes to the annual accounts 2003
All amounts in DKK millions (In parenthesis the corresponding figures for 2002).

Land andbuildings

Construction
work inprogress andpayment on
account for
tangible fixed
assets8 Tangible fixed assets

Cost:
At 1 January 2003
Additions during the year
Disposals during the year
Transferred
At 31 December 2003

Production
Vessels, rigs,
facilities andcontainers, etc. equipment, etc.

75,8382,786- 5,833
6,950
79,741

24,548
69
- 23
1,453
26,047

283
-1
282

4,969
8,341
- 1,220
8,530
3,560

At 1 January 2003
Disposals during the year
Depreciation for the year
Used of provisions relating to vessels on order
At 31 December 2003

35,747- 2,937
6,206
125
39,141

21,246- 18
1,358
22,586

131
-1
17
147

-

Book value at 31 December 2003

40,600

3,461

135

3,560

Hereof financial leased assets

3,361

-

-

-

Depreciation and write-downs:

The official tax valuation regarding Danish properties at a book value of DKK 135m (DKK 152m)
amounts to DKK 447m (DKK 460m).
At the end of 2003, the Company has capital commitments relating to vessels, rigs and containers, etc. onorder amounting to DKK 14.3b (DKK 9.4b).
9 Investment interests in group companies and associated companies
Investment
interests
in group
companies

Investment
interests
in associatedcompanies

5,486
1,326
- 403
6,409

2,006
- 124
1,882

At 1 January 2003
Exchange rate adjustment and other equity movements
Dividend distributed
Result for the year after tax
Provision
Disposals during the year
At 31 December 2003

21,412- 2,520
- 617
4,654
170
314
23,413

5,706
- 61
- 80
1,003
70
6,638

Book value at 31 December 2003

29,822

8,520

Cost:
At 1 January 2003
Additions during the year
Disposals during the year
At 31 December 2003
Value adjustments:

Group companies and associated companies are listed on pages 69-72.

61

A.P. Møller - Mærsk A/S
Notes to the annual accounts 2003
All amounts in DKK millions (In parenthesis the corresponding figures for 2002).
10 Securities, investments and receivables
Securities andinvestments

Receivables
Receivablesfrom group from associatedcompanies
companies

Other
receivables

Cost:
At 1 January 2003
Additions during the year
Exchange rate adjustment
At 31 December 2003

3,934
1,041
4,975

288
- 41
247

406
15
- 67
354

512
- 47
465

At 1 January 2003
Additions during the year

6,161
1,927

-

- 38
-1

-

At 31 December 2003

8,088

-

- 39

-

Book value at 31 December 2003

13,063

247

315

465

Value adjustments:

11 Share capital
The share capital at 31 December 2003 comprises:
A shares DKK 2,197,800,000 split into 2,197,463 shares of DKK 1,000 each and 674 shares of DKK 500
each.
B shares DKK 2,197,800,000 split into 2,197,374 shares of DKK 1,000 each and 852 shares of DKK 500
each.
One A share of DKK 1,000 holds two votes, B shares have no voting rights.
No of sharesof DKK 1,000

Nominal value% of sharecapital39,368- 39,368
0

39
- 39
0

0.9%
- 0.9%
0.0%

Share capital

Votes

A.P. Møller og Hustru Chastine Mc-Kinney Møllers Fondtil almene Formaal, Copenhagen, Denmark

40.7%

49.8%

A.P. Møller og Hustru Chastine Mc-Kinney Møllers
Familiefond, Copenhagen, Denmark

10.7%

12.8%

Mærsk Mc-Kinney Møller, Copenhagen, Denmark

3.6%

6.4%

Den A.P. Møllerske Støttefond, Copenhagen, Denmark

2.9%

5.8%

Companies within the A.P. Moller - Maersk Group (own shares)

6.4%

0.0%

Own shares (B shares) sold to subsidiary in 2003:
At 1 January 2003
Disposals during the year
At 31 December 2003
Shareholders according to the Danish Companies Act section 28a are:62

A.P. Møller - Mærsk A/S
Notes to the annual accounts 2003
All amounts in DKK millions (In parenthesis the corresponding figures for 2002).
12 Deferred tax
Deferred tax at 1 January
Adjustment for the year (profit and loss account)
Adjustment for the year (equity)
Deferred tax at 31 December

2003

2002

831
185
- 69
947

955
- 56
- 68
831

1,309
- 362
947

1,085
- 254
831

Deferred tax relates to:
Tangible fixed assets
Other

In relation to the special hydrocarbon tax, there are field specific losses carried forward ofabout DKK 4.6b in total. Since there is significant uncertainty as to whether the tax value ofthese losses will be utilized, they are not recognised in the accounts.
13 Other provisions

Abandonment

Other

Total

At 1 January 2003
Used during the year
Reversed during the year
Provisions for the year
At 31 December 2003

2,190
2,190

1,363
- 317
- 861
170
355

3,553
- 317
- 861
170
2,545

Short-term portionLong-term portion

2,190
2,190

355
355

355
2,190
2,545

Provisions for abandonment include estimated costs for abandonment of oil fields.
“Other” includes provisions relating to anticipated losses on contracts, etc.

63

A.P. Møller - Mærsk A/S
Notes to the annual accounts 2003
All amounts in DKK millions (In parenthesis the corresponding figures for 2002).
14 Long-term debt
Banks and other credit institutions
Finance lease
Debt to group companies and associated companies
Short-term portion of long-term debt
Debt to group companies and associated companies
Total long-term debt
Due as follows:
Within 1 year
Between 1 and 5 years
After 5 years

2003

2002

17,355755
4,133
22,243
1,996
395
24,63418,026
1,509
4,744
24,2792,207
389
26,875

2003

2002

2,391
12,961
9,282
24,634

2,596
11,52912,75026,875

15 Other financial obligations and mortgages
Bank loans and debt to other credit institutions etc. are secured on vessels, etc. and containers in theamount of DKK 11,342m (DKK 16,880m). The book value of vessels, etc. and containers provided as
security is DKK 15,704m (DKK 19,094m).
Guarantees, primarily in relation to other companies in the A.P. Moller - Maersk Group amount to DKK
1,515m (DKK 3,029m).
The necessary facility of USD 239m has been established in order to meet the requirements for
trading on the USA under the American Oil Pollution Act of 1990, the so-called Certificate of
Financial Responsibility.
Tax may crystalise if the Company leaves the tonnage tax regime.
As part of the Company’s activities, customary agreements are concluded regarding charter andoperating lease of ships, containers and port facilities, etc.
The future charter and lease payments are:Within 1 year
Between 1 and 5 years
After 5 years

64

2003

2002

10,731
17,9871,802
30,52012,45318,502725
31,680

A.P. Møller - Mærsk A/S
Notes to the annual accounts 2003
All amounts in DKK millions (In parenthesis the corresponding figures for 2002).
16 Financial instruments
Book value

Average duration – years

Net yield

Bonds

2003

2002

2003

2002

2003

2002

DKK
EUR

7,984
-

6,366
770

5.6%
-

6.9%
4.9%

4.7
-

4.0
4.6

Shares2003

2002

13,981836

10,484
593

Cash

2003

2002

USD
EUR
DKK
Other currencies

2,472
625
2,513
259
5,869

2,520
197
2,334
131
5,182

Listed shares
Non-listed shares

Loans and finance leaseobligations

USD
DKK
Other currencies

2003

2002

Interest spanInterest span

0-3%

3-6%

6%-

Total

0-3%

3-6%

6%-

Total

9,428
7,332
16,760

32
1,938
92
2,062

5,104
1,091
6,195

14,564
10,36192
25,017

11,834
1,093
50
12,977

6,039
99
6,138

6,914
1,271
43
8,228

18,748
8,403
192
27,343

Of which bearing fixed interest, including interest swaps

13,342

20,226

Of which bearing floating interest, including interest swaps

11,675

7,117

The result for the year includes exchange rate adjustment of a total of DKK 2,584m (DKK 3,302m) as net
income.
Interest rate swaps

USD
DKK
Other currencies
Of which recognised
For future recognition

Market value

2003

2002

- 597
108
70
- 419
198
- 617

- 1,004
182
- 43
- 865
175
1,040

Interest rate swaps are primarily used for hedging the interest exposure on loans.
The market value which will be recognised in future periods relates to the conversion of floating interest
to fixed interest loans.

65

A.P. Møller - Mærsk A/S
Notes to the annual accounts 2003
All amounts in DKK millions (In parenthesis the corresponding figures for 2002).
Note 16 continued
Currency forward and option contracts

USD
EUR
Other currencies

Market value

Bought/sold, net

2003

2002

2003

2002

- 4,301
4,817
23- 7,684
1,089
256

372
51
423
119
304

820
-2
5
823
23
800

Of which recognised
For future recognition

The market value for future recognition relates to hedging of expected revenue and expenses
in 2004.
Other currency distribution
Receivables from sale are primarily settled in USD, while debt to suppliers is settled in a variety ofcurrencies primarily USD and EUR.
Credit risks
The Company has no concentration of credit risks.
Freight and bunker hedges

2003

2002

2003

2002

Freight hedges
Bunker hedges
For future recognition

145
225

288
915

- 21
30
9

- 17
93
76

Oil hedge contracts

Principal

Oil hedge contracts
For future recognition

66

Market value

Principal

Market value

2003

2002

2003

2002

2,998

1,059

- 71
- 71

- 239
- 239

523296_uk_s67.qxd

27 03 2004

18:11

Side 67

A.P. Møller - Mærsk A/SManagement duties in other Danish Limited Companies
The following information is given pursuant to the Danish Companies Accounts Act, section 107, subsection 1:

Michael Pram Rasmussen, Managing Director:
Companies within the A.P. Moller - Maersk Group, Topdanmark A/S, William Demant Holding A/S,
companies related to these companies.
Poul J. Svanholm, Director:
No management duties in other Danish companies.
Ane Mærsk Mc-Kinney Uggla, Fil.kand.:Companies within the A.P. Moller - Maersk Group.
Lars Kann-Rasmussen, Director:
VKR Holding A/S, LEGO Holding A/S, companies related to these companies, Wide Invest A/S.
Jan Leschly, CEO:No management duties in other Danish companies.
Leise Mærsk Mc-Kinney Møller:
Companies within the A.P. Moller - Maersk Group.
Svend-Aage Nielsen, Managing Director:
Companies within the A.P. Moller - Maersk Group, Kraks Forlag A/S, PFA Holding A/S,
Marius Pedersen/Onyx Holding A/S, Thrige Holding A/S, SAAN Holding A/S,
companies related to these companies, CCN Holding A/S, FIH Erhvervsbank A/S.
Jess Søderberg, Partner and CEO:Companies within the A.P. Moller - Maersk Group, Dansk Supermarked A/S,
companies related to this company, F. Salling A/S, Ejendomsaktieselskabet af 18. august 1958.
Jan Tøpholm, Managing Director:
T & W Holding A/S, A-huset Holding A/S, companies related to these companies, Weibel Scientific A/S,
A.M. Denmark A/S.
Jens Erik Skovrider-Madsen, Captain:
Companies within the A.P. Moller - Maersk Group.
Henrik Lorensen Solmer, Captain:
Companies within the A.P. Moller - Maersk Group.
––––––––––

Kjeld Fjeldgaard, Partner:
Companies within the A.P. Moller - Maersk Group.
Knud E. Stubkjær, Partner:
Companies within the A.P. Moller - Maersk Group.
Tommy Thomsen, Partner:
Companies within the A.P. Moller - Maersk Group.

Companies with no commercial activity are excluded from the list.
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Side 68

A.P. Moller - Maersk GroupThe A.P. Moller - Maersk Group comprises A.P. Møller - Mærsk A/S and subsidiaries.
The A.P. Moller - Maersk Group operates within the following main areas:-

Container shipping an related activities comprising global container services, agency activity,
logistics activity and terminal activity, etc.

-

Tankers, Trampers, Offshore and other shipping activities comprising tanker shipping with
Crude Carriers, Product Carriers and Gas Carriers; Car Carriers; Supply vessel activities
with anchor-handling vessels-, platform supply- and cablelaying vessels; drilling activities
primarily with "jack-up" drilling rigs, operation of floating production units, etc., towing
activities, etc. and door-to-door transport and ferry services between UK and the Continent.

-

Oil- and Gas activities comprising oil and gas production and exploration activity in theDanish sector of the North Sea, in Qatar, in Algeria, in Kasakhstan and with exploration
activity in Oman, Brazil, in the British sector of the North Sea, in Norway and Turkmenistan.

-

Retail activity comprising supermarkets and hypermarkets in Denmark and convenience
stores in Denmark, Germany, UK, Poland and Sweden.

-

Shipyards, other industrial companies, aviation, IT, etc. Comprising shipyards in Denmark,Germany and Baltic States, industrial companies with production of refrigerated containers,
foundry machines, industrial air purifying equipment, rubber products - primarily for the
car industry - and plastic articles. Aviation within scheduled flights and charter service and
IT activity with IT development, IT operation and facility management.

The A.P. Moller - Maersk Group comprises approximately 900 companies. All the major companies and activities are included on the following pages so that all countries, in which the A.P. Moller- Maersk Group are represented.

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A.P. Moller - Maersk Group
Company overview

Group companies
Company

Registeredoffice

Owned
share

Company

Registeredoffice

Owned
share

A.P. Moller Finance S.A.

Schweiz

100%

Hudd Distribution Canada Inc.

Canada100%

A.P. Moller Singapore Pte. Ltd.

Singapore

100%

Hudd Distribution Services Inc.

USA

100%

A.P.M. Holding Australia Pty. Ltd.

Australia

100%

K/S Membrane I

Aktieselskabet Em. Z. Svitzer

Copenhagen,Denmark
100%

Copenhagen,Denmark
75%

K/S Membrane II

Aktieselskabet Roulunds Fabriker

Odense,Denmark

Copenhagen,Denmark
75%

100%

Live Oak Company Limited

Bermuda100%

Panama100%

Loksa Shipyard Ltd.

Estonia

100%

Maersk (Angola) Lda.

Angola100%

Maersk (China) Shipping
Company Limited

China

100%

Anchor Transport Corporation
APM Saigon Shipping
Company Limited

Vietnam75%

APM Terminals Shanghai Co. Ltd.

Hong Kong100%

APM Terminals International B.V.

The
Netherlands 100%Maersk (Jordan) W.L.L.

Jordan100%

Maersk (Malawi) Limited

Malawi99%

APM Terminals Pacific Ltd.

USA

100%

Maersk A/S

APM Terminals Romania SRL

Romania100%

Copenhagen,Denmark
100%

APM Terminals Rotterdam B.V.

The
Netherlands 100%Maersk Administrative
Center Ltd.

The
Philippines

APM Terminals Virginia, Inc.

USA

100%

Maersk Adria D.O.O.

Slovenia

100%

Balti ES Ltd.

Estonia

100%

Maersk Agency S.r.o.

Tjekkiet

100%

Bermutine Transport
Corporation Limited

Maersk Air A/S
Bermuda100%

Dragør,Denmark

100%

Bolt Transport Corporation

Liberia100%

Bridge Terminal Transport
Canada Inc

Dragør,Denmark

100%

Canada100%

Maersk Algeriet SPA

Algeria100%

Bridge Terminal Transport, Inc.

USA

100%

Maersk Americas SSC, S.A.

Costa Rica

100%

Brigantine Services Limited

Hong Kong

100%

Maersk Argentina S.A.

Argentine

100%

Compass Transport Corporation

Liberia

100%

Maersk Australia Pty. Ltd.

Australia

100%

Constar Holding Co. Ltd.

Taiwan100%

Maersk Bahamas Ltd.

Bahama100%

Maersk Bangladesh Limited

Bangladesh

100%

The
Netherlands 100%Danbor Service AS
Dania Trucking A/SDansk Industri Syndikat A/S

Maersk Aircraft A/S

100%

Esbjerg,
Denmark

100%

Maersk Benelux B.V.

Århus,
Denmark

100%

Maersk Benin SA

Benin

100%

Maersk Brasil (Brasmar) LTDA

Brazil100%

Herlev,
Denmark

100%

Maersk Bulgaria Limied EOOD

Bulgaria

100%

DSL Star Express Inc.

USA

100%

Maersk Cameroun S.A.

Cameroon100%

Esvagt A/S

Esbjerg,
Denmark

Maersk Canada Inc.

Canada100%

75%

Maersk Chile S.A.

Chile

100%

Fomar Roulunds S.A.

Poland58%

Maersk CJSC

Kasakhstan

100%

Guangdong Orient Trucking Ltd.

China

100%

Maersk Colombia S.A.

Columbia

100%69

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A.P. Moller - Maersk Group
Company overview

Group companies
Company

Maersk Congo RDC

Maersk Congo S.A.

Registeredoffice

Owned
share

Company

Registeredoffice

Owned
share

The Democratic
Republic
Congo
100%

Maersk Hellas Epe

Greece100%

Maersk Honduras S.A.

Honduras

100%

Maersk Hong Kong Limited

Hong Kong

100%

The Congo

Maersk Hungary KFT

Hungary

100%

Maersk Inc.

USA

100%

Maersk India Pvt. Limited

India

100%

Maersk Information
Processing (Guangdong) Ltd.

China

100%

100%

Maersk Container
Industri Qingdao Ltd.

China

100%

Maersk Contractors
New Foundland Limited

Canada100%

Maersk Contractors Norge AS

Norway100%

Maersk Costa Rica S.A.

Costa Rica

100%

Maersk Infotech
Services (India) Private Limited

India

100%

Maersk Côte d’Ivoire SA

Ivory Coast

100%

Maersk Italia SPA

Italy

100%

Maersk Cyprus Ltd.

Cyprus100%

Maersk Data Asia K.K.

Japan

100%

Maersk Jupiter
Drilling Corporation S.A.

Panama100%

Maersk Data USA Inc.

USA

100%

Maersk K.K.

Japan

100%

Maersk de Nicaragua S.A.

Nicaragua

100%

Maersk Kenya Ltd.

Kenya

100%

Maersk del Ecuador C.A.

Ecuador100%

Maersk Korea Limited

South Korea 100%Maersk Denizcilik A.S.

Turkey60%

Maersk Latvija SIA

Latvia100%

Maersk Deutschland GmbHGermany

100%

Maersk Lebanon S.A.R.L.

Libanon51%

Maersk Dominicana S.A.

Dominican
Republic

Maersk Liberia Limited

Liberia80%

Maersk Line Limited

Panama100%

Maersk Logistics(China) Company Limited

China

100%

100%

Maersk Eastern Europe ApS

Copenhagen,Denmark
100%

Maersk Eesti AS

Estonia

100%

Maersk Egypt
for Maritime Transport (S.A.E.)

Egypt

100%

Maersk El Salvador S.A. de C.V.

El Salvador

100%

Maersk Equipment
Service Company, Inc.

USA

100%

Maersk Espana S.A.

Spain

Maersk Finance A/S

Maersk Logistics Benelux B.V.

The
Netherlands 100%Maersk Logistics Danmark A/SÅrhus,
Denmark

100%

Maersk Logistics
Deutschland GmbHGermany

100%

100%

Maersk Logistics Hong Kong Ltd.

Hong Kong

100%

Copenhagen,Denmark
100%

Maersk Logistics International A/S

Copenhagen,Denmark
100%

Maersk Finland OY

Finland100%

Maersk Logistics Nicaragua, S.A.

Nicaragua

100%

Maersk France S.A.

France100%

Maersk Logistics Sverige AB

Sweden100%

Maersk Gambia Limited

Gambia100%

Maersk Logistics Tanzania Ltd.

Tanzania

100%

Maersk Georgia LLC

Georgia

100%

Maersk Ghana Limited

Ghana

100%

Maersk Logistics UK Limited

UnitedKingdom

100%

Maersk Guatamala S.A.

Guatamala100%

Maersk Logistics USA Inc.

USA

100%

Maersk Guinee S.A.

Guinea60%

Maersk Madagascar SA

Madagascar 100%Maersk Gulf Ltd.

Bermuda100%

Maersk Malaysia Sdn. Bhd.

Malaysia

70

100%

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A.P. Moller - Maersk Group
Company overview

Group companies
Company

Registeredoffice

Owned
share

Company

Registeredoffice

Owned
share

Maersk Mali S.A.

Mali

100%

Maersk Training Centre A/S

Svendborg,
Denmark

Maersk Maritme S.A.S.

France100%

100%

Maersk Maroc S.A.

Marocco100%

TrinidadTobagoMaersk Mauritanie SA

Mauritania

60%

100%

Maersk Mexico S.A. de C.V.

Mexico100%

Maersk Trucking (China) Co. Ltd.

Hong Kong

100%

Uganda100%

Maersk Trinidad Ltd.

Maersk Mozambique LDA

Mosambique 100%Maersk Uganda Ltd.

Maersk Namibia (Pty) Ltd.

Namibia

100%

Maersk Ukraine Ltd.

Ukraine100%

Uruguay75%

Maersk Nepal Private Ltd.

Nepal

95%

Maersk Uruguay S.A.

Maersk New Zealand Limited

New Zealand 100%Maersk Zanzibar Ltd.

Zanzibar

100%

Maersk Niger S.A.

Niger

100%

Maersk Österreich GmbH

Austria

100%

Maersk Nigeria Limited

Nigeria

70%

Maersk-Filipinas Inc.

Maersk Norge AS

Norway100%

The
Philippines

100%

Maersk Oil Kazakhstan GmbHGermany

100%

Maersk Oil Oman B.V.

The
Netherlands 100%

UnitedKingdom

100%

Singapore100%

MCC Transport Limited

Maersk Oil Qatar AS

Qatar

100%

MCC Transport
Singapore Pte. Ltd.

Maersk Pakistan (Pvt) Ltd.

Pakistan

70%

Midwest Intermodal Services, Inc.

USA

100%

Maersk Panama S.A.

Panama100%Mærsk Container Industri A/S

Maersk Peru S.A.

Peru

100%

Tinglev,
Denmark

100%

Mærsk Data AS

Copenhagen,Denmark
100%

Puerto Rico 100%Mærsk Olie og Gas AS

Maersk Qatar Maritime
Services W.L.L.

Copenhagen,Denmark
100%

Qatar

100%

Mærsk Olie, Algeriet AS

Maersk Romania SRL

Rumania100%

Copenhagen,Denmark
100%

Maersk Rwanda Limited

Rwanda100%

Norfolkline B.V.

Maersk Ship Design A/S

Odense,Denmark

The
Netherlands 100%

100%

Odense Staalskibsværft A/S

Odense,Denmark

100%

O’Neill & Whitaker, Inc.

USA

100%

Maersk Polska Sp. Zo.O.

Poland100%

Maersk Portugal Lda.

Portugal

100%

Maersk Puerto Rico Inc.

Maersk Shipping
Services & Co. LLC.

Oman

Maersk Sierra Leone

Sierra Leone 100%

P.T. Maersk Indonesia

Indonesia

100%

Maersk Singapore Pte. Ltd.

Singapore

Pentalver Transport Limited

Maersk South Africa (Pty) Ltd.

South Africa 100%

UnitedKingdom

100%

Maersk South America Ltd.

Bermuda100%

PT Maersk Logistics Indonesia

Indonesia

100%

Maersk Sverige AB

Sweden100%

Rederiet A.P. Møller A/S

Copenhagen,Denmark
95%

Rederiet Odense-Lindø A/S

Odense,Denmark

100%

Farum,
Denmark

100%

65%
100%

Maersk Switzerland Ltd.

Switzerland

100%

Maersk Taiwan Ltd.

Taiwan100%

Maersk Togo S.A.

Togo

100%
Rosti A/S

71

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Side 72

A.P. Moller - Maersk Group
Company overview

Group companies

Associated companies

Company

Registeredoffice

Owned
share

Company

Registeredoffice

Owned
share

Röda Bolaget AB

Sweden100%

Handytankers K/S

Copenhagen,Denmark
33%

Safmarine (Proprietary) Limited

South Africa 100%

Safmarine Container Lines N.V.

Belgium

100%

Inttra Inc.

USA

40%

Salamis Group Limited

UnitedKingdom

100%

Laem Chabang Container
Terminal 1 Ltd.

Thailand35%

Shipbuilding Yard Baltija

Lithuania

99%

LR2 Management A/SStar Air A/S

Dragør,Denmark

Copenhagen,Denmark
50%

100%

Maersk Kanoo (UAE) LLC

The Maersk Company(Ireland) Limited

The UnitedArab
Emirates
49%

Eire

100%

Maersk Kanoo Bahrain W.L.L.

Bahrain

The Maersk Company Canada Ltd.

Canada100%

Maersk Kuwait Co. W.L.L.

Kuwait49%

Maersk Lanka (Pvt.) Ltd.

Sri Lanka

40%

Maersk (Mauritius) Limited

Mauritius

49%

Maersk Product Tankers A/S

Copenhagen,Denmark
50%

Maersk Senegal SA

Senegal50%

The Maersk Company Limited
Thor Jørgensen A/S

UnitedKingdom100%Århus,
Denmark

100%

49%

Transporte Maritimo Maersk
Venezuela S.A.

Venezuela

100%

Maersk Tunesie S.A.

Tunesia50%

Trans-Siberian Express
Service OOO

Russia100%

Pelabuhan Tanjung
Pelepas Sdn. Bhd.

Malaysia

30%

Universal Maritime Service
Corporation

USA

100%

Qasim International Container
Terminal Pakistan Limited

Pakistan

20%

Volkswerft Stralsund GmbHGermany

100%

Wijsmuller Groep Holding B.V.

The
Netherlands 100%

Qingdao Qianwan
Container Terminal Co. Ltd.

China

20%

Salalah Port Services Co.

Oman

30%

Shanghai Tie Yang Multimodal
Transportation Co. Ltd.

China

49%

Siam Shoreside Services Ltd.

Thailand49%

Smart Logistics Company Ltd.

Hong Kong

49%

Suez Canal Container Terminal

Egypt

30%

Tankers International L.L.C.

MarshallIslands

41%

Nigeria25%

ZAO Maersk

Russia100%

Associated companies
Bangkok Marine Company Limited Thailand

49%

Egyptian Drilling Company

50%

Ejendomsaktieselskabet
af 18. august 1958
F. Salling A/S
Getma Gabon S.A.

72

Egypt

West Africa Container
Terminal Nigeria Ltd.

Århus,
Denmark33%

Århus,
Denmark

38%

Gabon

34%

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A.P. Moller - Maersk Group
Company overview

Jointly controlled entities
Company

Bilka Lavprisvarehus A/S
Dansk Supermarked A/S
DMdata A/S
Egyptian International
Container Terminal SA
ERS Railways B.V.
European Rail Shuttle B.V.
Føtex A/S
Netto A/S
North Sea Production Co. Ltd.
North Sea Terminal
Bremerhaven GmbH & Co.

Registeredoffice

Owned
share

Århus,
Denmark

50%

Århus,
Denmark

50%

Copenhagen,Denmark
50%
Switzerland

50%

The
Netherlands

50%

The
Netherlands

50%Århus,
Denmark

50%

Århus,
Denmark

50%

UnitedKingdom

50%

Germany

50%

Some companies are excluded according to section 72 subsection 4 in the Danish Financial Statements Act.
73

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Side 4

CONTENTS

Page

A.P. Moller - Maersk Group
Financial Highlights
Directors’ Report
Container Shipping and Related
Activities
Tankers, Trampers, Offshore andother Shipping Activities
Oil and Gas Activities
Retail Activity
Shipyards, other Industrial
Companies, Aviation, IT, etc.
Financial Report
Directors’ Statement
Auditors’ Report
Accounting Policies

24
27
29
30
31

Profit and Loss Account for 2003
Assets at 31 December 2003
Liabilities at 31 December 2003
Equity Statement
Cash Flow Statement for 2003
Notes to the annual accounts 2003

35
36
37
38
39
40

A.P. Møller - Mærsk A/SFinancial Highlights
Profit and Loss Account for 2003
Assets at 31 December 2003
Liabilities at 31 December 2003
Equity Statement
Notes to the annual accounts 2003
Management duties in other
Danish Limited Companies
A.P. Moller - Maersk Group
Company overview

A.P. Møller - Mærsk A/SManaging Owner:3
5

Esplanaden 50
DK-1098 Copenhagen K
Tlf. +45 33 63 33 63

10
14
18
22

Board of Directors:
Michael Pram Rasmussen
CHAIRMAN

Poul J. Svanholm
VICE-CHAIRMAN

Ane Mærsk Mc-Kinney Uggla
VICE-CHAIRMAN

Lars Kann-Rasmussen
Jan Leschly
Leise Mærsk Mc-Kinney Møller
Svend-Aage Nielsen

53
55
56
57
58
59

Jess Søderberg
Jan Tøpholm
Jens Erik Skovrider-Madsen
Henrik Lorensen Solmer

67
68
69

Auditors:
Søren Thorup Sørensen
STATE AUTHOR. PUBLIC ACCOUNTANT

Gert F. Tomczyk
STATE AUTHOR. PUBLIC ACCOUNTANT

Schultz Grafisk • København

523296_omslag.qxd

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Side 3

A.P. Møller - Mærsk A/SAnnual Report 2003

A.P. Møller - Mærsk A/SAnnual Report 2003