NEW REALITIES IN SHIPPING IN THE AMERICASTOC Americas, 13 October 2015

As an industry, we are facing a number of key

challenges

SUPPLY/DEMAND

IMBALANCE

DECLINING RATES EAST-WEST CHALLENGE

AGAINST A BACK DROP OF ECONOMIC CHALLENGES AND SLUGGISH

GROWTH

-15%

-10%

-5%

0%

5%

10%

15%

20%

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5E

201

6-

17E

Supply has outgrown demand past 9 years except for 2010 and trend expected to continue

Y/Y Growth, (%) Y/Y Demand GrowthY/Y Supply Growth

Forecast

Note: Capacity growth compares standing container vessel capacity beginning of year to end of year, while demand growth compares total amount of containers in two consecutive years. Capacity forecast assumes no additional slow

steaming, as the low oil price gives less incentive to slow down vessel speed. Also, idling is assumed to remain broadly unchanged. Forecast demand growth is for illustration purpose shown as midpoint for the expected interval.

Source: Alphaliner, Maersk Line

Excess capacity primarily

absorbed by slow steaming

Less incentive

for further slow

steaming

Industry demand growth at its lowest since the financial crisis

-20%

-16%

-12%

-8%

-4%

0%

4%

8%

12%

16%

20%

Q1 01 Q4 01 Q3 02 Q2 03 Q1 04 Q4 04 Q3 05 Q2 06 Q1 07 Q4 07 Q3 08 Q2 09 Q1 10 Q4 10 Q3 11 Q2 12 Q1 13 Q4 13 Q3 14 Q2 15E

Note: LTM based on last 4 quarters

Source: Maersk Line

Demand growth, (%) LTMQuarterly y/y growth

CAGR 9.5% CAGR 3.2% CAGR 3.7%

page 4

We have increased capacity much less than industry

Growing capacity less than industry… …also compared to top 10 carriers1

90

95

100

105

110

115

120

Q1 12 Q3 12 Q1 13 Q3 13 Q1 14 Q3 14 Q1 15

Note: 1) Top 10 carriers based on July ‘15 capacity market share

Source: Maersk Line, Alphaliner

Index, (Q2 2012 = 100)

ML nominal capacity

Industry volume

Industry nominal capacity

51%

46%

43%

31%

25%

22%

21%

16%

15%

13%

0% 20% 40% 60%

Hapag-Lloyd

Evergreen

Hamburg Süd

CMA CGM

MOL

CSCL

Cosco

MSC

Hanjin

Maersk Line

Nominal capacity growth, (Q2 2012 – Q2 2015)

A new reality of sluggish overall economic growth

LATIN AMERICA: Your promise. Delivered.

Language

Spanish

Portuguese

French

Economic Indicators 2011 2012 2013 2014 2015 2016 2017

Total Population (Mil) 600 607 614 620 627 634 640

Total GDP (USD Bn) 5,917 5,928 6,084 5,952 5,692 6,038 6,713

GDP per Capita (USD) 9,861 9,768 9,915 9,594 9,078 9,531 10,490

Exports of Goods (USD Bn) 1,170 1,122 1,177 1,153 1,098 1,131 1,197

Imports of Goods (USD Bn) 1,086 1,131 1,161 1,144 1,116 1,160 1,223

CountriesPopulation

(Mil.)

Area

(Sq Km)

GDP per

Capita '14

Total GDP

'14

Global Ranking

Total GDP

Share of

World GDP2014 2015 2016 2017 2018

Brazil 202 8,456,510 10,775 2,177 7 2.8% 0.1% -2.4% -0.3% 1.0% 1.8%

Mexico 124 1,923,040 10,472 1,296 15 1.7% 2.1% 2.4% 3.0% 3.3% 3.6%

Argentina 42 2,736,690 13,334 557 21 0.7% 0.5% 0.6% 1.2% 1.7% 2.4%

Venezuela 31 882,050 10,892 336 27 0.4% -3.5% -6.6% -2.9% 0.5% 2.2%

Colombia 49 1,038,700 7,789 380 31 0.5% 4.6% 3.0% 3.0% 3.6% 4.0%

Chile 18 748,800 14,459 257 38 0.3% 1.9% 2.2% 2.8% 3.3% 3.6%

Peru 31 1,285,000 6,594 203 51 0.3% 2.4% 2.9% 3.8% 4.3% 4.6%

Total LAM 620 21,069,501 7.8% 1.2% 0.1% 1.4%

Real GDP, annual variation in %

Source LatinFocus Concensus Forecast September 2015, IMF

Taking the temperature of the Americas

Economic slowdown in China

Less demand from China and EU

Drop in commodities prices

GENERAL ECONOMIC

SLOWDOWN

CHALLENGES

Lower GDP growth

Recession in Brazil

Currency restrictions in Argentina

and Venezuela

Local currency devaluations

Infrastructure limitation

POSITIVE

US economic recovery

Pacific Alliance (Mexico,

Colombia, Peru and Chile)

Mexico’s strong industrial

development

Impact of strong dollar on local

currencies

page 8

Excess capacity on South America routes leading to a

negative circle

What will happen to shipping after the Panama Canal

Expansion?

page 9

• Larger ships are only

sustainable if there is demand

• Potential shift In trade patterns

with change in entry ports for

cargo to the US

3.7%

3.2%

9.5%

0% 2% 4% 6% 8% 10%

2-4%

3-5%

Container demand is likely to recover as GDP-multiplier expected to normalize from historically low 2015 level

page 10

Global GDP growth, (%) GDP

Multiplier

Source: Focus Economics, IMF and Maersk internal calculations

3.0

1.9

1.5

0.9-1.4

1.2-1.7

2.5%

1.6%

3.1%

0% 2% 4% 6% 8% 10%

2016E-2017E

2015E

2012-2014

2008-2011

2001-2007

2.4-2.7%

2.4-3.2%

Global Container demand, (%)Actual Forecast

Impacted by e.g.• Russia• Europe de-stocking• Port congestion US

West Coast

High pre-crisis GDP-multiplier, driven by massive offshoring to e.g. China, and containerization

In Summary:• Low GDP Growth

• The supply-demand gap continues over the

mid term

• Rates continue to decline

• Reduction in capacity impacts exports

leading to a trade imbalance

• Continued consolidation in the industry

needed

• Measures to address trade imbalance

• Liners need to continue to take out costs

page 11

Thank you

page 12