1. 1 3 rd Polar Shipping Summit May 30 th & 31 st 2012, London, UK

2. 2 Background Erik Rabjerg Nielsen Education: >Joined A.P. Moller – Maersk in 1993 >Master Mariner educated >Sailed on primarily container vessels but also briefly on gas, supply & tank vessels >MAESTRO management graduate >B.Sc. Copenhagen Business School, Business Management. Positions: >Technical Organisation - Vessel administration >Technical organisation - Nautical department >Group Procurement Coordination - Initial strategic sourcing (Lube oil, Paint, Steel & Main engines) >Europe Line Management – Cargo stowage coordinator >Vessel Management – Centre Operations & Deployment

3. 3 Agenda  Brief overview of A.P. Moller – Maersk and Maersk Line  Commercial attractiveness of NSR  Comparison of routes  Conclusion  Q&A

4. 4 Heritage of more than 100 years 1994: Maersk Oil starts oil production in Qatar 1928: First tanker added to the fleet 1977: Mercantile (now: Damco) established 1904: Company established with one freighter 1964: Dansk Supermarked established 2001: APM Terminals established 1975: First container vessel added to the fleet 1972: Maersk Contractors (now: Maersk Drilling) established 1959: Lindø Shipyard opened 1967: Maersk Supply Service established 1972: Maersk Oil produces first oil in the North Sea 2008: New global oil strategy launched

5. 5 Group Overview Container activities Other businesses Retail activity Tankers, offshore and other shipping activitiesOil & Gas activitiesTerminal activities >2011 revenue: USD 60.2 billion >Some 70,000 shareholders >Controlling stake held by A.P. Møller and Chastine Mc-Kinney Møller Foundation 1: Maersk Line 2: Maersk Oil 3: Maersk Drilling 4: APM Terminals 5: Maersk Tankers 6: Maersk Supply Service 7: Maersk FPSOs 8: Svitzer 9: Damco 10: Maersk Container Industry 11: Dansk Supermarked

6. 6 1,400 ships 60 container terminals 115 platforms and rigs900 offices 1,100 retail activity+ 3 million containers Fleet and other assets

7. 7 World’s no. 1 container business  World’s largest container line  2011 revenue USD 25.1 billion  Fleet of 645 vessels 2.5 million TEU  Operates in 125 countries  +3 million containers  42 new vessels 2012-15 0.5 million TEU  Investing in innovative, record- setting vessels: Triple-E

8. 8 Maersk Line focus areas Profitable cargo Beat competitors cost levels and never accept unjustified cost Organisation to deliver a superior customer experience Be our customers’ first choice >Severe competition, industry is struggling to make sustainable profit. >Customer satisfaction >High Competitiveness >On-time delivery >Environmental performance

9. 9 Agenda  Brief overview of A.P. Moller – Maersk and Maersk Line  Commercial attractiveness of NSR  Comparison of routes  Conclusion  Q&A

10. 10 Commercial attractiveness of NSR >Can NSR present an opportunity for shorter transit time? >Can NSR present an opportunity for offering a cheaper product? >Can NSR present an opportunity for higher reliability? >The joker!

11. 11 Agenda  Brief overview of A.P. Moller – Maersk and Maersk Line  Commercial attractiveness of NSR  Comparison of routes  Conclusion  Q&A

12. 12 Comparison of routes – Transit time Columbine Maersk Vessel size 8500 TEU 11.300 nautical miles

13. 13 Comparison of routes – Transit time 7.600 nautical miles? Average speed 13kn? 4 month transit window 11.300 nautical miles Average speed 13kn Full year transit window

14. 14 >Transit time in the traditional network 36 days >Possible transit time YOK-ROT via NSR: >Distance 7.600nm >Average speed 13kn >Days needed, including inspection etc. 26 >The NSR presents an opportunity for a shorter transit time during the “Ice free” period. Comparison of routes – Transit time

15. 15 >Size limitation on NSR >Ice damage (lack of repair facilities) >Emergency - evacuation options >Modifying machinery (especially if non-ice classed vessel) >Ice and extra safety training of crew >Ice-breaker assistance >Upgrade of navigation-, communication- and safety equipment >Actual cost of transiting Comparison of routes – Costs

16. 16 Comparison of routes – Costs Rate?? Lifting capacity2.0006.500 Days2636 Distance7.600nm11.300nm Vessel costs575.0001.250.000 Bunker costs650.0002.000.000 Port costs1.250.000250.000 Total Costs2.475.0003.500.000 * The above figures are only indicative as an example, and does not reflect a true picture of the full complexity of container transport

17. 17 Comparison of routes – Costs Rate?? Lifting capacity2.0006.500 Days2636 Distance7.600nm11.300nm Total Costs2.475.0003.500.000 * The above figures are only indicative as an example, and does not reflect a true picture of the full complexity of container transport Slot costs USD/TEU1.238538

18. 18 Present network Repair flexibility Piracy Weather Contingency Casualty coverage Port flexibility Complexity NSR Comparison of routes – Reliability

19. 19 Present network >Reliability is a key driver >On-time delivery +99% NSR >Reliability factors are more insecure and more dominant >99% reliability will be very expensive Comparison of routes – Reliability

20. 20 Comparison of routes – The Joker >Freight rates! >Is a faster and more unreliable product, of higher value to customers, then a reliable slower product?

21. 21 Agenda  Brief overview of A.P. Moller – Maersk and Maersk Line  Commercial attractiveness of NSR  Comparison of routes  Conclusion  Q&A

22. 22 Conclusion

23. 23 >Shorter transit time? >A cheaper product? >Vessel size / Ice breaker costs >Higher reliability? >The joker! Conclusion YES ??? NO

24. 24 Agenda  Brief overview of A.P. Moller – Maersk and Maersk Line  Commercial attractiveness of NSR  Comparison of routes  Conclusion  Q&A

25. 25 Questions & Answers