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OPPORTUNITY AND
CHALLENGE

Morten Henrik Engelstoft is CEO of a new Maersk Group business unit, Services and Other Shipping (S&OS). He is also Chairman of the Board for Svitzer. He recently addressed the Extended Leadership Conference in Abu Dhabi about Svitzer’s position in this fifth core business leg of the Group. Following are answers to key questions covered in that speech.

WHY DID MAERSK CREATE S&OS?
First of all, we wanted to make the combined value of the businesses more transparent to the outside world, to those who look at our company and make valuations of our Group. The combined value of the individual business units under S&OS – with a turnover of USD 8 billion, invested capital of USD 7 billion and around 21,000 employees – is much more impressive than any one of them considered independently, so there is now a greater chance that the underlying value of the S&OS business units will be recognised.

HOW DO YOU SEE Svitzer IN S&OS?
A second reason behind creating S&OS was to send a very strong signal to the employees of the four companies that we consider you a core part of the Group, companies which we wish to develop and invest in. I am really pleased to have Svitzer as part of S&OS, because as a competitive, top-quartile performer in attractive industries Svitzer deserves to be included among our core companies. 
There are benefits from being part of the S&OS; but they come with an obligation to deliver your fair share of future profit targets – not least the target of doubling the size of the business in coming years. This means continuing to improve on the excellent results you delivered in 2013, which was an important turnaround and a really good performance.

WHAT IS THE KEY CHALLENGE
FOR Svitzer?

Svitzer has lots of talent in the organisation, there are many opportunities for growth and there is a good process for maturing projects; many of the important ingredients are there to have a very successful company.

The key question I have is whether Svitzer is able to deliver the growth we have targeted for the company. I will challenge you to set ambitious targets for the business, identify the most important business opportunities in the markets you are in and then take the necessary action to win the business.

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Morten Henrik Engelstoft has served in a variety of positions in and out of the corporate headquarters at Esplanaden in Copenhagen, most recently as COO of Maersk Line. He has held executive positions with Maersk in Asia, Vietnam, Taiwan and Singapore, and with Maersk Line as CEO for Eastern Mediterranean, as well as CEO for SE ASIA. Morten received his training at Maersk’s shipping academy, and has completed the executive MBA at IMD.

 

Services and Other Shipping consists of:
• Damco
• Maersk Tankers
• Maersk Supply Service
• Svitzer