Maersk Training A/S

Management's review

Seen over a five-year period, the development of the Company is described by the following financial highlights: 2023 2022 2021 2020 2019 TDKK TDKK TDKK TDKK TDKK Key figures Profit/loss Gross profit/loss 75,029 52,172 62,390 50,090 65,867 Profit/loss before financial income and expenses -13,021 -22,869 -9,568 -28,431 -15,306 Net financials 35,485 39,567 7,444 -18,051 -650 Net profit/loss for the year 27,210 20,800 1,014 -40,900 -11,155 Balance sheet Balance sheet total 565,264 534,491 390,953 366,449 361,031 Equity 322,594 294,750 162,320 136,306 136,356 Investment in property, plant and equipment 2,666 634 857 1,514 2,825 Number of employees 101 93 89 96 102 Ratios Return on assets -2.3% -4.3% -2.4% -7.8% -4.2% Solvency ratio 57.1% 55.1% 41.5% 37.2% 37.8% Return on equity 8.8% 9.1% 0,7% -30.0% -7.9% The ratios have been prepared in accordance with the recommendations and guidelines issued by the Danish Society of Financial Analysts. For definitions, see accounting policies. Main activity Maersk Training is a fully owned subsidiary of the A.P. Moller - Maersk Group of companies. Maersk Training offers customers high-quality simulation, training, competency development, and consultancy services as well as H2S supervision and servicing of safety equipment and competency development. Most of our highly skilled staff comes with many years of industry-specific operational experience, skills, and knowledge that enable Maersk Training to create value for customers within the Maritime, Logistics, Oil & Gas, and Renewable Energy industries. The mission for Maersk Training is to enable its customers to improve safety and operational excellence, through a broad number of diverse product lines focused on the above industries. Maersk Training has established business units worldwide with a targeted suite of operational equipment as well as advanced simulators and virtual applications, enabling our customers to train their staff in fully immersive simulated environments, where entire crews can be trained, and their competencies developed and assessed. Development in 2023 In 2023 it was decided to complete a vertical merger between Maersk Training TMS A/S and Maersk Training A/S with Maersk Training A/S as the continuing entity. The merger was carried out with accounting effect as per 1 January 2023. Maersk Training has in 2023 continued the investments in the organization, equipment, and platforms to fulfill the strategy of transforming Maersk Training for a digital future and remain as one of the frontiers within the industry. A significant part of the investments brought new capabilities to Maersk Training in 2023, which were used to develop digital and customer-centric solutions, new digital offerings, and streamlining internal operational excellence to provide even better and faster services to customers. Maersk Training initiatives have been well received by customers and Maersk Training will keep investing in further capabilities and digitalization. During 2023 Maersk Training successfully completed the integration of ResQ. The integration has revealed good opportunities for Maersk Training to use the acquired capabilities of ResQ in other parts of the organization and shown an overall good ability for Maersk Training to integrate new companies into the organization. The subsidiary in the UK was subject to changes in its operational capacity, as Management in late 2023 decided to discontinue the operation in Portlethen (UK) and focus all efforts on all remaining sites in the UK, including growing within the wind industry and expanding simulation services. Overall, the result for 2023 is positive and ongoing financial improvements remains a focus area for the coming years. Investments During the year Maersk Training has invested in both operational equipment, digital solutions, and digital platforms. The investments are to support and expand the business by meeting current and future customer demands and increasing performance. Risks Maersk Training’s income and expenditure are spread across several currencies. Maersk Training has not in 2023 used financial instruments to reduce this risk and impact in general of exchange rate fluctuations, etc. The company has a certain concentration of customers but no significant dependency on any particular customer. The company has no significant credit risk. Health, Safety and Environment The core focus of Maersk Training is assisting our customers to improve operations, and safety and avoid accidents. Likewise, it is key for Maersk Training to keep employees and course participants safe and free of accidents. Constant efforts are made to promote even higher safety standards among all employees, participants, and suppliers and internal measures are used to facilitate the improvements. Environmental impact is important for Maersk Training. Although the Company’s energy consumption is not particularly demanding, the Company is still trying to find ways to reduce energy consumption, making its business activity as energy efficient as possible, as well as improving processes and operations in the global business units. Outlook for 2024 The outlook for 2024 includes expectations for increased commercial growth amongst existing and new customers. The overall market outlook is positive, but subject to potential shifts due to geopolitical, global macroeconomic, and oil price developments. Ordinary preventive procedures are being prepared to safeguard the business against unexpected events. In 2024 Maersk Training will launch a new digital experience platform. The platform will enable Maersk Training to become more attractive to customers using online channels for the purchase of Maersk Training services. In parallel, Maersk Training will continue to focus on the expansion of its digital services to position Maersk Training better in the market for blended and self-paced learning support by strengthening internal digital platforms to build efficiency and scale. Based on the above, Management foresees a year of further transformation and growth and expects this will lead to further improvements to the result achieved in 2023. Expectation for 2024 is a top line increase in the range of 6-8%.