Page 1

MAERSK A.P. Møller - Mærsk A / S expands its contract logistic capabilities through the acquisition of LF Logistics Holdings Limited , a leading omnichannel fulfilment contract logistics company in Asia Pacific . December 22 , 2021 A.P. Møller - Mærsk A / S expands its contract logistic capabilities through the acquisition of LF Logistics Holdings Limited , a leading omnichannel fulfilment contract logistics company in Asia Pacific . Today , A.P. Møller - Mærsk A / S ( Maersk ) announces that it has reached an agreement to acquire 100 % of the shares in LF Logistics Holdings Limited ( LF Logistics ) in an all - cash deal . LF Logistics is a well - established and strongly positioned Asia - Pacific - based omnichannel fulfilment contract logistics company . The acquisition will further strengthen Maersk's capabilities as an integrated container logistics company , offering global end - to - end supply chain solutions to its customers . ANNOUNCEMENT LF Logistics is a private Hong Kong based company owned by Li & Fung ( 78.3 % ) and Temasek Holdings ( 21.7 % ) that focuses on providing contract logistics solutions to customers in Asia - Pacific organized through two key business units : In - Country Logistics ( ICL ) and Global Freight Management ( GFM ) . In addition to the agreement to acquire LF Logistics , Maersk will enter a strategic partnership with Li & Fung to develop logistic solutions . Further , the parent company of Li & Fung is expected to retain and continue to build the carved - out GFM business following completion of the transaction . The value ( Enterprise Value ) of the transaction is USD 3.6bn including post - IFRS 16 lease liabilities , reflecting a pre - synergy EV / EBITDA multiple of 14.4x based on estimated EBITDA for full - year 2021 for the ICL business . In addition , an earn - out with a total value of up to USD 160m related to future financial performance has been agreed as part of the transaction . Since LF Logistics was founded in 1999 , the company has significantly expanded its geographic presence and today operates within the ICL business an extensive network of 223 warehouses with a capacity of 2.7 million sq . meters and approximately 10,000 employees across 14 countries in Asia - Pacific . The ICL business is a key supply chain partner for many multinational customer brands within verticals like Fashion & Lifestyle , Retail and Fast - moving consumers goods within the Asia - Pacific markets . In the full - year 2020 , LF Logistics reported a revenue of around USD 1.3bn and a post - IFRS 16 adjusted EBITDA of USD around 235m , with the ICL business generating a revenue of around USD 850m and a post - IFRS 16 adjusted EBITDA of around USD 230m . For the full - year 2021 , the ICL business is expected to report a revenue around USD 1bn with an adjusted post - IFRS 16 EBITDA around USD 250m . Page 1 of 2 The acquisition will strengthen Maersk's logistics and services offerings to its customers within " Fulfilled by Maersk " , as it will create a strong value proposition for customers targeting the Asian fast growing consumer segment adding LF Logistics ' footprint and industry leading capabilities within omni - channel fulfilment solutions , e - commerce , and inland transport in the Asia - Pacific markets . In addition , LF Logistics also brings a unique technology platform . Combining the businesses of Maersk and LF Logistics will unlock substantial commercial synergies deriving from cross selling LF Logistics ' fulfilment products to Maersk customers , and cross - selling of Maersk's logistics services within " Managed by " and " Transported by Maersk " to LF Logistics ' customers . In addition , minor cost synergies are expected from combining the two businesses . Based on the organic growth and the synergies , the ICL business is expected to more than double the revenue and the EBITDA by end of full - year 2026. Transaction and one - off costs related to the deal are estimated to be around USD 80m and will be realized in 2022/23 . The acquisition is subject to regulatory approvals and the transaction is expected to close in 2022. Until closing , Maersk and LF Logistics will remain two separate companies . Maersk invites investors and analysts to participate in a conference call today , at 9:00 a.m. CET , where Søren Skou ( Group CEO ) , Patrick Jany ( Group CFO ) and Vincent Clerc ( CEO for Ocean & Logistics ) will present the transaction and the strategic rationale . A presentation will be available at the Maersk investor site ( investors.maersk.com ) before the conference call . Copenhagen , 22 December 2021 Contact persons : Head of Investor Relations , Stig Frederiksen , tel . +45 3363 3106 Head of External Relations , Signe Wagner , tel . +45 3363 1901 Attachment • Announcement - Acquisition of LF Logistics Page 2 of 2