31476658 2022-01-01 2022-12-31 31476658 2022-01-01 2022-12-31 2 31476658 2022-01-01 2022-12-31 1 31476658 2022-01-01 2022-12-31 2 31476658 2022-12-31 31476658 2022-01-01 2022-12-31 101 31476658 2021-01-01 2021-12-31 31476658 2021-01-01 2021-12-31 1 31476658 2021-01-01 2021-12-31 2 31476658 2021-12-31 31476658 2021-01-01 2021-12-31 101 31476658 2020-01-01 2020-12-31 31476658 2020-01-01 2020-12-31 1 31476658 2020-01-01 2020-12-31 2 31476658 2020-12-31 31476658 2020-01-01 2020-12-31 101 31476658 2019-01-01 2019-12-31 31476658 2019-01-01 2019-12-31 1 31476658 2019-01-01 2019-12-31 2 31476658 2019-12-31 31476658 2019-01-01 2019-12-31 101 31476658 2018-01-01 2018-12-31 31476658 2018-01-01 2018-12-31 1 31476658 2018-01-01 2018-12-31 2 31476658 2018-12-31 31476658 2018-01-01 2018-12-31 101 31476658 2020-12-31 fsa:ContributedCapitalMember 31476658 2021-01-01 2021-12-31 fsa:ContributedCapitalMember 31476658 2020-12-31 fsa:ReserveForCurrentValueOfHedgingMember 31476658 2021-01-01 2021-12-31 fsa:ReserveForCurrentValueOfHedgingMember 31476658 2020-12-31 fsa:RetainedEarningsMember 31476658 2021-01-01 2021-12-31 fsa:RetainedEarningsMember 31476658 2021-12-31 fsa:ContributedCapitalMember 31476658 2022-01-01 2022-12-31 fsa:ContributedCapitalMember 31476658 2022-12-31 fsa:ContributedCapitalMember 31476658 2021-12-31 fsa:ReserveForCurrentValueOfHedgingMember 31476658 2022-01-01 2022-12-31 fsa:ReserveForCurrentValueOfHedgingMember 31476658 2022-12-31 fsa:ReserveForCurrentValueOfHedgingMember 31476658 2021-12-31 fsa:RetainedEarningsMember 31476658 2022-01-01 2022-12-31 fsa:RetainedEarningsMember 31476658 2022-12-31 fsa:RetainedEarningsMember 31476658 2022-01-01 2022-12-31 1 31476658 2022-01-01 2022-12-31 1 31476658 2022-01-01 2022-12-31 2 31476658 2022-01-01 2022-12-31 3 31476658 2022-01-01 2022-12-31 4 31476658 2022-01-01 2022-12-31 5 31476658 2022-01-01 2022-12-31 1 iso4217:USD xbrli:pure Jacob Ramsgaard Nielsen Today, the Board of Directors and the Executive Board have discussed and approved the annual report of Maersk Logistics & Services International A/S for the financial year 1 January - 31 December 2022 The annual report is prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the financial position of the Company at 31 December 2022 and of the results of the Company's operations for the financial year 1 January - 31 December 2022. Further, in our opinion, the Management's review gives a fair review of the development in the Company’s operations and financial matters and the results of the Company's operations and financial position. We recommend that the annual report be approved at the annual general meeting. Copenhagen, Rotem Hershko Director Vincent Clerc Chairman Jacob Ramsgaard Nielsen Henriette Hallberg Thygesen Anne Pindborg Casper Munch To the Shareholder of Maersk Logistics & Services International A/S In our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 31 December 2022, and the results of the Company’s operations for the financial year 1 January - 31 December 2022 in accordance with the Danish Financial Statements Act. We have audited the Financial Statements of Maersk Logistics & Services International A/S for the financial year 1 January - 31 December 2022, which comprise income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies (“financial statements”). We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management is responsible for Management’s Review. Our opinion on the financial statements does not cover Management’s Review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read Management’s Review and, in doing so, consider whether Management’s Review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether Management’s Review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, in our view, Management’s Review is in accordance with the Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement in Management’s Review. Management is responsible for the preparation of Financial Statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, Management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a materiel misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. • Conclude on the appropriateness of Management’s use of the going concern basis of accounting in preparing the financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. • Evaluate the overall presentation, structure, and contents of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives true and fair view. We communicate with those charged with governance regarding, among other matters, the planned stage and timing of the audit and significant audit findings, including any significant deficiencies in internal control we identify during our audit. Hellerup, PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 33771231 Søren Ørjan Jensen Kristian Pedersen State Authorised Public Accountant State Authorised Public Accountant mne33226 mne35412 Maersk Logistics & Services International A/S Esplanaden 50, 1263 Copenhagen K 31476658 Copenhagen Strandvejen 44, 2900 Hellerup 618052000 486374000 54048000 38096000 36346000 60363000 83989000 10102000 630000 211000 26088000 69793000 9833000 -4000 -372000 15783000 -695103000 13612000 -56937000 16813000 41871000 -625310000 23445000 -56941000 16442000 Profit/loss for the year Profit/loss for the year Profit/loss for the year Profit/loss for the year Profit/loss for the year 22477000 -664376000 27733000 -58715000 16768000 Fixed assets Fixed assets Fixed assets Fixed assets Fixed assets 7075430000 1357928000 1246026000 1061819000 992734000 1195716000 950332000 209020000 213764000 207100000 8271146000 2308260000 1455046000 1275583000 1199834000 19444000 19444000 19444000 19444000 19444000 6568408000 1005691000 976883000 753655000 712370000 1000000 0 81000 736000 736000 1701738000 1302569000 478082000 517824000 386728000 0.04 0.14 0.18 0.00 -0.01 Current ratio Current ratio Current ratio Current ratio Current ratio 0.70 0.73 0.44 0.41 0.54 0.79 0.44 0.67 0.59 0.59 0.01 -0.67 0.03 -0.08 0.02 0 0 2 2 3 The Company serves as the parent legal entity of the global logistics activities. Financial review In 2022, the Company's revenue amounted to USD 618,052 thousand against USD 486,374 thousand last year due to increase in Network income as a result of better L&S performance. The income statement for 2022 shows a profit of USD 22,477 thousand against loss of USD 664,376 thousand last year, the major reason for previous year loss due to Maersk Logistics & Services B.V impairment as the network losses were transferred to the Company. The balance sheet at 31 December 2022 shows equity of USD 6,568,408 thousand. The management considers the Company’s financial performance in the year satisfactory. Effective January 2021, due to undergoing transformation of A.P. Moller - Maersk from a diversified conglomerate to a focused and integrated global logistics company, the role of the Head Quarters and principal of Global L&S network has been moved from Maersk Logistics & Services International BV, The Netherlands to Maersk Logistics & Services International A/S, Denmark. The role of the principal is to act as the entrepreneur of the global network, which conducts the logistics business on the international as well as the national market. The Company has entered Network Fee Agreements with each of the foreign companies that are part of the L&S Global Network. The ultimate entrepreneurial risk of the Global Network lies with the principal. For the year 2022, the impairment in MLSI A/S is USD 74,212 thousand and impairment reversal is USD 24,200 thousand, resulting in net impairment of USD 50,012 thousand. Dividends received from subsidiaries was USD 77,268 thousand and hence the net income from investment from Group enterprises in profit & loss account is USD 27,256 thousand. Impairment for 2022 is majorly contributed by Damco Hong Kong Limited with USD 59,963 thousand offset by reversal of impairment in few entities as the equity position improved. During the year 2022, the category Software in Intangible assets of the Company increased from USD 33,571 thousand to USD 114,348 thousand due to acquisition of Software from KGH companies, Inland TMS and HUUB entities. During the year 2022, the Company made significant investments in LF Logistics for USD 3,371,158 thousand, Pilot for USD 1,655,606 thousand and Senator for USD 497,329 thousand through Acquisitions, as A.P. Møller - Mærsk A/S considers the key driver to Logistics & Services growth is the expansion of product and people capabilities through M&As. Statutory CSR report The Company has not made a separate CSR report, as the parent company A.P. Møller - Mærsk A/S with CVR 22 75 62 14 has done so for the entire Group. The report is rendered in the parent company's sustainability report 2022 and may be downloaded from https://www.maersk.com/sustainability/reports-and-resources The company’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise the potential adverse effects on the company’s financial performance. The company uses derivative financial instruments to hedge certain risk exposures. Risk management is carried out by a central finance department under policies approved by the APMM Board of Directors. The finance department identifies, evaluates and hedges financial risks in close cooperation with the Group’s entities. Equity includes total comprehensive income for the year comprising the profit for the year and other comprehensive income. For hedges related to investment/acquisition of Martin Bencher, a gain of USD 4,599 thousand is recognized in other comprehensive income. Outlook Logistics & Services’ revenue is expected to continue to grow year-on-year through acquisitions that strengthened the ability to offer end-to-end logistics services to global clients in line with this years growth while profitability is expected to be similar to this year, as the underlying business has been impacted by lower volumes and rates as a result of a significant inventory correction due to weakening consumer demand. - New Maersk air freight service connecting Europe and China. - Logistic & Services continues to scale for growth by expanding new lanes and warehouses globally Tax Free Contribution In 2022, the company received a tax-free contribution of USD 5,536,598 thousand in kind from its parent company A.P. Møller - Mærsk A/S. In April 2013, the board adopted objectives for the diversity of the Company's board members appointed at the general meeting with respect to the underrepresented gender. The Board believes that its members should he elected based on their combined qualifications and at the same time recognises the advantages of a board comprising a wide range of backgrounds such as global experience, style, culture and gender. On the basis of this ambition, the board has defined an objective to increase the share of the underrepresented gender in the Board to account for at least 40% of the Board members appointed at the general meeting within the year 2022 and the board had achieved 40% during the year 2018. The gender composition remains unchanged in 2022. Hence the gender diversity is met as per the Danish Financial Statements Act. A.P. Møller - Mærsk A/S has set global targets for 2022 to monitor the progress on representation of gender and nationality in management. These include gender recruitment targets, balanced with always hiring the best persons for the job. (Link to policy https://www.maersk.com/en/about/sustainability/responsible-business-practices/diversity-and-inclusion). As there are no employees in Maersk Logistics & Services International A/S no policy to increase the number of under-represented gender in other management levels have been implemented. The responsible use of data is a critical enabler for the group business model. In line with regulatory requirements of Section 99d of the Danish Financial Statements Act (Årsregnskabsloven). A.P. Moller – Maersk A/S established data ethics policy in 2022, with accompanying governance measures. Please refer to Annual report of A.P. Moller – Maersk A/S registered with CVR 22 75 62 14 for statement of data ethics: https://investor.maersk.com/static-files/8e9851f1-bcd2-425b-a588-7a39f0c6e302 557689000 402385000 34275000 14196000 27256000 -740424000 11371000 51945000 22844000 6624000 19394000 39066000 22477000 -664376000 114348000 33571000 29025000 37125000 21469000 10073000 164842000 80769000 6910330000 1276901000 258000 258000 6910588000 1277159000 1190595000 947917000 64000 64000 5057000 2350000 1195716000 950332000 8271146000 2308260000 4559000 917000 6544405000 985330000 1000000 0 1586877000 4166000 110695000 1239418000 31022000 32129000 1702738000 1302569000 8271146000 2308260000 19444000 0 957439000 0 0 -692267000 -692267000 0 917000 0 917000 0 0 -664376000 19444000 917000 985330000 0 0 -5536598000 -5536598000 0 3642000 0 3642000 0 0 22477000 19444000 4559000 6544405000 The annual report of Maersk Logistics & Services International A/S for 2022 has been prepared in accordance with the provisions in the Danish Financial Statements Act applying to large reporting Class C entities. Reporting currency The income and costs of the Company and its subsidiaries are mainly in USD and based on this Management concludes that USD is the Company’s functional and reporting currency. The annual report is presented in USD in accordance with section 16(2) of the Danish Financial Statements Act. At 31 December 2022, the exchange rate was 696.72 DKK/USD (2021: 655.74 DKK/USD). The average rate in 2022 was 707.70 DKK/USD (2021: 628.87 DKK/USD). Foreign currency translation On initial recognition, transactions denominated in foreign currencies are translated at the exchange rate at the transaction date. Foreign exchange differences arising between the exchange rates at the transaction date and the date of payment are recognised in the income statement as financial income or financial expenses. Receivables and payables and other monetary items denominated in foreign currencies are translated at the exchange rate at the balance sheet date. The difference between the exchange rates at the balance sheet date and the date at which the receivable or payable arose or was recognised in the most recent financial statements is recognised in the income statement as financial income or financial expenses. Income statement Revenue Revenue is recognised to the extent that the economic benefits will flow to the Company and the revenue can be reliably measured regardless of whether payment is received. Revenue is measured at the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Company's activities. Income comprises of Network Transportation Income as Maersk Logistics & Services International A/S became the network header for the L&S (Logistics & Services) segment in 2021. Income also comprises of the management fees income charged to Inland Services entities as Maersk Logistics & Services International A/S became the Headquarters of Inland Services in 2020. Other external expenses Expenses are recognised on accrual basis of accounting, which holds that expenses are recognised when consumed. Expenses are costs that arise in the course of ordinary activities of business as well as losses. When expenditure produces no future economic benefit, it should be recognised immediately as an expense in the income statement. Other external expenses comprise of Network Transportation Charges as Maersk Logistics & Services became the network header of L&S entities in 2021. It also includes Operational accruals, Insurances, IT and other allocated costs in Maersk Logistics & Services International A/S due to HQ operations shifting from Netherlands to Denmark. Income from investments in subsidiaries The item includes dividend received from subsidiaries in so far as the dividend does not exceed the accumulated earnings in the subsidiary in the period of ownership. Financial income and expenses Financial income and expenses are recognised in the income statements at the amounts that concern the financial year. Net financials include interest income and expenses as well as allowances and surcharges under the advance-payment-of-tax scheme and FX gains/losses etc Tax Tax for the year includes current tax on the year's expected taxable income and the year's deferred tax adjustments. The portion of the tax for the year that relates to the profit/loss for the year is recognised in the income statement, whereas the portion that relates to transactions taken to equity is recognised in equity. The entity is jointly taxed with other group entities. The total Danish income tax charge is allocated between profit/loss making Danish entities in proportion to their taxable income (full absorption). Jointly taxed entities entitled to a tax refund are reimbursed by the management company based on the rates applicable to interest allowance and jointly taxed entities which have paid too little tax and surcharge according to the rates applicable to interest surcharges to the management company. Balance sheet Intangible Assets Cost directly attributable to development of software are considered for capitalisation, except general and administration cost. Intangible assets are capitalised once it is ready for use and amortised over the useful life of the asset. The entity considers economic life of the IT software as its useful life for amortisation. Intangible assets are carried at cost less accumulated amortisation and impairment losses. Amortization is provided on intangible assets to write off the cost, less any estimated residual value, over their expected useful economic life. The amortization expenses on intangible assets is recognised in the statement of profit or loss in the expense category consistent with the nature of the intangible asset. As per APMM accounting policy, the amortization period for Intangible assets is 5 years. During the year 2021, the Intangible asset (CTDS platform) was transferred from KGH to MLSI A/S and it is amortized over a 10-year period in line with PPA assessment done as part of acquisition and recorded in PPA memo. Intangible assets regarding Software is amortized over a period of 5-10 years and Acquired trademarks are amortized over a period of 5 years. Investments in subsidiaries Investments in subsidiaries and other investments are measured at cost or lower recoverable value (the higher of the estimated value in use and fair value less cost of disposal). Impairment of fixed assets The carrying amount of investments in subsidiaries is assessed for impairment on an annual basis. Impairment tests are conducted on assets or groups of assets when there is evidence of impairment. The carrying amount of impaired assets is reduced to the higher of the net selling price and the value in use (recoverable amount). The recoverable amount is the higher of the net selling price of an asset and its value in use. The value in use is calculated as the present value of the expected net cash flows from the use of the asset or the group of assets and the expected net cash flows from the disposal of the asset or the group of assets after the end of the useful life. Previously recognised impairments are reversed when the reason for recognition no longer exists. Impairment losses on goodwill are not reversed. Receivables Receivables are measured at amortised cost. The Company has chosen IAS 39 as interpretation for impairment of financial receivables. An impairment loss is recognised if there is objective evidence that a receivable or a group of receivables is impaired. If there is objective evidence that an individual receivable has been impaired, an impairment loss is recognised on an individual basis. Receivables in respect of which there is no objective evidence of individual impairment are tested for objective evidence of impairment on a portfolio basis. The portfolios are primarily based on the debtors' domicile and credit ratings in line with the Company’s risk management policy. The objective evidence applied to portfolios is determined based on historical loss experience. Impairment losses are calculated as the difference between the carrying amount of the receivables and the present value of the expected cash flows including the realisable value of any collateral received. The effective interest rate for the individual receivable or portfolio is used as discount rate. Cash Cash comprise cash and short-term securities which are readily convertible into cash and subject only to minor risks of changes in value. Equity Proposed dividends Dividend proposed for the year is recognised as a liability once adopted at the annual general meeting (declaration date). Dividends expected to be distributed for the financial year are presented as a separate item under “Equity". Provisions Provisions comprise anticipated expenses relating to warranty commitments, onerous contracts, restructurings, etc. Provisions recognised when the Company has a legal or constructive obligation at the balance sheet date as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation. Provisions are measured at net realisable value or at fair value if the obligation is expected to be settled far into the future. Income taxes Current tax payables and receivables are recognised in the balance sheet as the estimated income tax charge for the year, adjusted for prior-year taxes and tax paid on account. Deferred tax is measured according to the liability method on temporary differences between the carrying amount and the tax base of assets and liabilities. However, deferred tax is not recognised on temporary differences relating to goodwill which is not deductible for tax purposes and on office premises and other items where temporary differences, apart from business combinations, arise at the date of acquisition without affecting either profit/loss for the year or taxable income. Where alternative tax rules can be applied to determine the tax base, deterred tax is measured based on Management's intended use of the asset or settlement of the liability respectively. Deferred tax is measured according to the rules and at the tax rates applicable at the balance sheet date when the deferred tax is expected to crystallise as current tax. Deferred tax assets recognised at the expected value of their utilisation; either as a set-off against tax on future income or as set-off against deferred tax liabilities in the same legal tax entity. Changes in deferred tax due to changes in the tax rate are recognised in the income statement. Liabilities Financial liabilities are recognised at the date of borrowing at the net proceeds received less transaction costs paid. On subsequent recognition, financial liabilities are measured at amortised cost, corresponding to the capitalised value, using the effective interest rate. Accordingly, the difference between the proceeds and the nominal value is recognised in the income statement over the term of the loan. Financial liabilities also include the capitalised residual lease liability in respect of finance leases. Other liabilities are measured at net realisable value. Segment information The allocation of revenue to activities and geographical markets is disclosed where these activities and markets differ significantly in the organisation of sales of goods and services. Financial ratios The financial ratios stated under “Financial highlights” have been calculated as follows: Operating profit (EBIT) *100 Operating margin Revenue Current Assets *100 Current Ratio Current liabilities Equity Year-end *100 Equity Ratio Total equity and liabilities, year-end Profit/Loss for the year after tax*100 Return on Equity Average equity In accordance with section 112(1) of the Danish Financial Statements Act, the Company has not prepared consolidated financial statements. The consolidated financial statement is reflected for the higher-ranking parent company A.P. Møller - Mærsk A/S, CVR-No. 22 75 62 14 Copenhagen. true Omission of cash flow statement With reference to section 86(4) of the Danish Financial Statements Act, no cash flow statement has been prepared. The Company’s cash flows are reflected in the consolidated cash flow statement for the higher-ranking parent company A.P. Møller - Mærsk A/S, CVR-No. 22 75 62 14, Copenhagen. 2. Events after the Balance Sheet date No events after Balance Sheet date. 3. Segment Information No difference in segment as all revenues are generated through Transfer Pricing agreements. Types of Revenue (USD '000) 2022 2021 Network Transportation Income 574,636 465,650 Management Fees 15,521 14,071 Salaries I/C Recharges 13,391 6,391 Agency Rebates 8 262 Other Income 14,496 0 618,052 486,374 Geographical Split Regions (USD '000) 2022 2021 Africa 11,011 11,778 Asia Pacific 337,768 12,554 Europe 102,459 349,554 Latin America 27,306 23,233 North America 80,259 60,220 West & Central Asia 59,249 29,035 618,052 486,374 4. Financial income (USD '000) Interest receivable, group entities 11,295 9,222 Exchange gain 0 38,402 Other financial income 76 4,321 11,371 51,945 5. Financial expenses (USD '000) Interest expenses, group entities 17,461 6,601 Other interest expenses 2 2 Other financial expenses 71 21 Exchange loss 5,310 0 22,844 6,624 6. Tax for the year (USD '000) Current tax charge for the year 23,196 33,870 Tax adjustments, prior years -3,802 5,196 Deferred Tax for the year 0 0 19,394 39,066 7. Intangible Assets Development Acquired Group (USD '000) Software Projects in Total trademarks Progress Cost at 1 January 2022 44,393 48,010 10,072 102,476 Net Effect from Mergers & Acquisition 0 0 0 0 Additions for the year 106,951 0 11,397 118,348 Transfers for the year 0 0 0 0 Cost at 31 December 2022 151,344 48,010 21,469 220,823 Impairment Losses and Amortization at -10,821 -10,885 0 -21,707 1 January 2022 Impairment losses for the year 0 0 0 0 Amortization for the year -26,175 -8,100 0 -34,275 Impairment Losses and Amortization at -36,996 -18,985 0 -55,981 31 December Carrying Amount at 31 December 114,348 29,025 21,469 164,842 2022 Development Projects in Progress majorly relate to The New Supply Chain Platform program that will drive and embed the strategic improvement of Maersk’s capabilities for Supply Chain Management (SCM). The expected Project go-live date for NSCP is in 2023 post which cost will be capitalized and moved from Asset under Construction to Intangible Asset account. 8. Investments Investment in Other Investments (USD '000) Total subsidiaries Investments Cost at 1 January 2022 2,141,725 258 2,141,983 Additions 5,683,441 0 5,683,441 Cost at 31 December 2022 7,825,166 258 7,825,424 Value adjustments at 1 January 2022 -864,824 0 -864,824 Impairment -74,212 0 -74,212 Reversal 27,256 0 27,256 Value adjustments at 31 January 2022 -914,836 0 -914,836 Carrying amount at 31 December 6,910,330 258 6,910,588 2022 Name Equity Profit/Loss Domicile Interest Subsidiaries USD '000 USD '000 Damco China Limited China 100% 52,695 2,149 Damco (UAE) FZE UAE 100% 5,901 92 Damco (Angola) Transitarios E agente De Angola 90% -2,387 327 Navegaçao, Lda Damco Argentina S.A. Argentina 95% 61 13 Damco Australia Pty. Ltd. Australia 100% 25,418 311 APM Global Logistics Bangladesh Ltd. Bangladesh 95% 3,146 311 Damco Belarus Belarus 99% 3,615 -79 Damco Switzerland GMBH Switzerland 100% 2,346 364 Damco Colombia Ltda. Colombia 100% 686 686 Damco Czech Republic, S.R.O. Czech 100% 9,605 1,053 Damco Germany GmbH Germany 100% 6,653 912 Damco Denmark A/S Denmark 100% 4,466 393 Damco A/S Denmark 100% 4,417 0 Damco Egypt Ltd. Egypt 99% 1,003 -102 Damco Spain, S.L. Spain 100% 4,404 239 Damco France S.A.S. France 100% 5,607 339 Damco UK Limited UK 100% 9,491 -2,117 DAMCO HONG KONG LIMITED Hong Kong 100% 15,660 367 Maersk Logistics Honduras, S.A. Honduras 100% -306 -6 Damco D.O.O. Croatia 100% 638 103 Damco Hungary KFT Hungary 100% 123 -3 P.T. Maersk Indonesia Indonesia 99% 3,571 37 Damco Logistics Ireland Limited Ireland 100% 3,506 79 Damco Logistics Israel Ltd. Israel 100% 900 188 Damco International A/S Jordan LLC Jordan 100% 573 14 Damco Logistics Kenya Limited Kenya 100% 1,418 82 Damco Logistics Korea Limited Korea 100% 721 349 Maersk Maroc S.A. Morocco 100% 2,826 2,518 Damco Logistics Mali S.A. Mali 100% 180 -234 Damco Logistics Myanmar Limited Myanmar 100% 428 156 Damco Logistics (Mauritius) Limited Mauritius 100% 2,921 -52 Damco Logistics Mexico S.A. de C.V. Mexico 100% 12,346 -537 DL Multiservicios SA de CV Mexico 98% 343 46 Damco Logistics Services Sdn. Bhd. Malaysia 100% 458 9 Damco Logistics Malaysia Sdn. Bhd. Malaysia 100% 2,912 533 Maersk Logistics Nicaragua, S.A. Nicaragua 100% 162 0 Damco Netherlands B.V. Netherlands 100% 15,063 176 Damco International B.V. Netherlands 100% 81,990 -5,937 Damco New Zealand Limited New Zealand 100% 22,761 26 Damco Panama S.A. Panama 100% -195 203 Name Equity Profit/Loss Domicile Interest Subsidiaries USD '000 USD '000 Damco Latin America Sem, S.A. Panama 100% 493 78 Damco Peru S.A. Peru 100% 63 11 Damco Philippines, Inc. Philippines 100% 1,296 283 Damco Pakistan (Private) Limited Pakistan 100% 227 522 Damco Poland Sp. z o.o. Poland 100% 8,343 400 Damco Logistics Portugal, Lda. Portugal 100% 5,025 497 Damco Romania S.r.L. Romania 100% -177 0 Damco Rus LLC Russia 99% 7,161 5,410 Damco Sweden AB Sweden 100% 3,250 149 Damco Logistics Singapore Pte. Ltd. Singapore 100% 2,984 239 Damco Logistika D.O.O. Slovenia 100% 557 21 Damco Slovakia, S.R.O. Slovakia 100% 113 7 Damco Logistics (Thailand) CO. Ltd. Thailand 100% 4,407 -43 Damco Transport CO., Ltd. Thailand 100% 61 1 Damco Uluslararasi Tasimacilik ve Lojistik A.S. Turkey 99% 437 181 Damco Taiwan Co., Ltd. Taiwan 100% 1,908 248 Damco Tanzania Limited Tanzania 99% -1,327 0 DAMCO Eastern Europe ApS Denmark 100% 53 -34 Damco Ukraine Ltd. Ukraine 100% -1,226 -178 Damco Logistics Uganda Ltd. Uganda 100% -1,288 -49 Damco USA Inc. USA 100% 2,633,906 -9,334 APM Global Logistics Uruguay S.A. Uruguay 100% 18 -3 Damco Zambia Limited Zambia 99% -525 -21 Maersk Logistics & Services Brasil Ltda. Brazil 100% 3,454 -6,303 Damco Chile S.A Chile 100% -113 -110 Maersk Container Industry San Antonio SpA Chile 100% 4,365 -57 B2C Europe Holding B.V. Netherlands 100% 82,026 -3,493 LF Logistics Holdings Limited Bermuda 100% 289,260 68 Maersk Logistics & Services Chile S.p.A Chile 100% 6,219 92 BLUE DRAGON MEISHAN LOGISTICS CO., LTD China 50% 12,332 1,245 Senator International Spedition GmbH Germany 100% 441,710 23,339 KGH Customs Software A/S Denmark 100% 213 20 KGH Customs Services Aps Denmark 100% 2,747 35 OPERADORA DEL PACIFICO S.A. Ecuador 100% 3,721 -488 Pacific Container Transport S.A. Ecuador 100% 1,066 69 Damco Ecuador S.A Ecuador 100% 94 27 Maersk Logistics Warehousing China Company Ltd Hong Kong 100% 16,465 -310 Apm Terminals India Private Limited India 100% 20,711 5,715 Damco Logistics Pvt. Ltd. Sri Lanka 100% 460 53 Damco Lanka Pvt. Ltd. Sri Lanka 100% 106 3 Maersk Integrated Logistics (FZC) SPC Oman 100% 102 2 Maersk Logistics & Services Peru S.A. Peru 61% 17,662 5,849 Maersk Logistics & Services d.o.o. Beograd Serbia 100% 70 7 20 Profit/loss for the period and equity are disclosed as per the latest official financial statements in accordance with the requirement in the Danish Financial Statements Act where available and required. For some entities, the numbers are derived from internal reporting. 9. Deferred tax assets USD'000 2022 2021 Deferred tax at 1 January -64 -64 Movement during the year 0 0 Deferred tax at 31 December -64 -64 Deferred tax relates to : Provisions -64 -64 -64 -64 The company expects to utilize the tax asset with the next tax years 10. Share Capital DKK'000 2022 2021 Analysis of the Share Capital: 103,000 shares of DKK 1,000 nominal 103,000 103,000 value each 103,000 103,000 11. Other Provisions USD '000 2022 2021 Opening Balance 1 January 0 81 Provisions utilized in the year 0 -81 Provisions added during the year 1,000 0 Other Provisions at 31 December 1,000 0 12. Contractual obligations and contingencies, etc. Contingent Asset Contingent Asset represent a Tax receivable of USD 859,148, receivable from India related to the Tax Deducted at Source towards Centre Charges paid by Damco India in FY 2011-12 and FY 2012-13. Other contingent liabilities The Company is jointly taxed with all other Danish companies in the A.P. Møller Holding A/S. As a consolidated entity, the Company has unlimited and joint liability together with the other companies under joint taxation for Danish corporation tax and withholding tax on dividends, interest and royalties within the jointly taxed companies 13. Derivative Financial Instruments Derivative financial instruments contracts in the form of forward exchange contracts. At the Balance Sheet date, the fair value of the derivative financial instrument amount to: USD'000 2022 2021 Other receivables 4,559 917 The hedging relates to the funding for the acquisition of Martin Bencher. 14. Related Parties Information about consolidated financial statements Requisitioning of the Parent Company's consolidated financial Parent Domicile statements A.P. Møller Holding A/S Esplanaden 50, 1263 www.maersk.com Copenhagen K A.P. Møller - Mærsk A/S Esplanaden 50, 1263 www.maersk.com Copenhagen K Related Party transactions All transactions with related parties are carried through on normal market terms Ownership The following shareholders are registered in the Company’s register of shareholders as holding - minimum 5% of the votes or minimum 5% of the share capital Name Domicile A.P. Møller - Mærsk A/S Esplanaden 50, 1263 Copenhagen K 15. Fee to the auditors appointed by the Company in general meeting Audit fees are not disclosed with reference to section 96(3) of the Danish Financial Statements Act. The fee is specified in the consolidated financial statements A.P. Møller Holding A/S. Annual report Auditor's report on audited financial statements ParsePort XBRL Converter 2022-01-01 2022-12-31 2021-01-01 2021-12-31 2023-06-14 Regnskabsklasse C, stor virksomhed 2008-05-29 2023-06-14 33963556 DELOITTE STATSAUTORISERET REVISIONSPARTNERSELSKAB Weidekampsgade 6 2300 København S Opinion Basis for Opinion 2023-06-14 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Strandvejen 44 2900 Hellerup