Q1 2011 Investor Presentation

8/4/2019 Q1 2011 Investor Presentation

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Global Ports Connecting Global Markets

Investor PresentationJanuary 2011


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1. Company Highlights

2. Industry and Competitor Overview

3. Business Outlook and Strategy

4. Financial Overview5. Concluding Remarks

Agenda


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DP World is Unique

DP World 2010 gross throughput of 49.6m TEU

by Geography

Gross Throughput (TEU m)

MiddleEast, Europe

and Africa(21.7m TEU)

44%

Asia Pacificand Indian

Subcontinent(18.5m TEU)

43%

Australia andAmericas (5.8

TEU) 12%

36.843.3 46.8 43.4

2006PF 2007 2008 2009

(1) Drewry Global Container Terminal Operators 2010

DP World is the only listed global containerport operator

Focus purely on container ports 49 terminals & 10 new developments and major

expansion projects across 31 countries Approximately 10% market share (1)

DP World operates container terminals

through long term concession agreements Average life of concessions is 43 years in reality theyare perpetual as historically always renewed

Very high barriers to entry

DP World is focused on origin and destinationcargo; gives pricing power

74% of our volumes were O&D in 2009 and have togo through our ports

Shipping lines do not dictate our volumes import andexports do

DP World is focused on the faster growingemerging markets

77% of our gross volumes came from emergingmarkets in 2009


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Our Global Portfolio

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1. Company Highlights

2. Industry and Competitor Overview



Agenda


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The Global Container Port Industry

NorthAmerica

8%West

Europe17%

Far East38%South East

Asia14%

MiddleEast6%

LatinAmerica

7%

Australia2%

Africa4%

South Asia3%

EasternEurope

1%

6All data supplied by Drewry Annual Review of Global Container Terminal Operators 2010

Regional Split of 2009 Container VolumesReview of industry in 2009 473 million TEU handled globally Utilization 63% EBITDA margins largely maintained

Industry Forecasts 2009-2015

Container volumes expected to grow 7.2% vs. expectedcapacity growth of 3%

Volumes expected to reach 718 million TEU by 2015 Utilization rates expected to reach 80% by 2015 Emerging markets will outperform industry as a whole


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DP World versus Competitors

Americas20%

Europe30%Far East/SE Asia

29%

Africa10%

Middle East5%

South Asia

6%

Far East/SEAsia81%

Americas0%

Europe18%

South Asia1%

Far East/SEAsia56%Europe

28%

Americas11%

South Asia2%

Middle East2%

Africa1%

Middle East40%

Far East/SEAsia19%

Europe11%

South Asia13%

Americas4%

Oceania7%

Africa6%

Note/Source: Based on 2009 throughput according to Drewry Annual Review of Global Container Terminal Operators 2010

2009Throughputaccording to

Drewry

2009 MarketShare

2008 MarketShare

HPH 64.2 m TEU 13.6% 13%

AMPT 56.9 m TEU 12.0% 12.3%

PSA 55.3 m TEU 11.7% 11.4%

DPW 45.2 m TEU 9.5% 8.9%

7


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8(1) Historic data on World GDP Growth from IMF World Economic Outlook, April 2008

World container traffic vs. World GDP (1)

Container Traffic and GDP

(1) World GDP data from the IMF World Economic Outlook 2010

Container Handling Growth data reported from Drewry Annual Container Terminal Operators

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

1 9 9 1

1 9 9 2

1 9 9 3

1 9 9 4

1 9 9 5

1 9 9 6

1 9 9 7

1 9 9 8

1 9 9 9

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

2 0 1 3

Container Growth GDP Growth

8

Forecast

Global Container Traffic has historically grown at 3-4x World GDP Growth


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1. Company Highlights2. Industry and Competitor Overview



Agenda


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Positioned for Superior Growth

All data provided by Drewry Container Forecaster Q310 Published 30 September 2010

7.3%

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

South East AsiaMiddle EastAfrica

Far EastSouth America

South AsiaEast Europe

AustralasiaC America/Carib

West EuropeNorth AmericaSouth Europe

Global Total

CAGR 2011-2015Container Activity by Region Drewry forecasts a CAGR of 7.3% p.a. in global

container activity 2011-2015

77% of DP World throughput today comes fromfaster growing emerging or frontier markets

(highlighted in green)

DP World has high quality, efficient, well-equipped capacity to meet customers needs

both today and in the future

DP World has the ability to roll out new capacity

as utilization increases in these faster growingmarkets


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2010Year End(FCST)

2011(phase 1 capacity)

New Developmentsand major expansionsin Pipeline

2015 FCST(1)

2020 FCST(1)

ConsolidatedCapacity

35 MnTEU

Vallarpadam, India(800,000)

Dakar, SenegalKulpi, IndiaLondon Gateway, UKSokhna, Egypt (Basin 2)Yarimca, Turkey

42 Mn TEU 48 Mn TEU

Gross Capacity(Consolidated plus JV capacity)

67 MnTEU

As above plus:Embraport, BrazilFos2XL, FranceQingdao, ChinaRotterdam, Netherlands

79 Mn TEU 92 Mn TEU

Flexibility to roll out new capacity from our 10 new developments and major expansion projects inline withmarket demand

Many of our existing portfolio of 49 terminals have the ability to increase capacity as utilization rates andcustomer demand increases

36% of our consolidated capacity today is less than 3 years old (as at year end 2009)

(1) The 2015 and 2020 capacity numbers do not include the potential for smaller capacity additions from existing terminals

New projects and Major Expansions


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Capital Expenditure 2010 2012

EMEA 41%

Asia Pac / India 34%

Australia / Americas 25% New

Facilities61%

ExistingFacilities

27%

Maintenance12%

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Capital Expenditure by Geography Capital Expenditure by Type

US$ 2.5Bn capital expenditure expected for 2010 to 2012

Significant proportion of our capital expenditure is invested in new facilities opening in 2010(Peru, Vallarpadam, Karachi) and terminals recently joining our portfolio

Flexibility to change capital expenditure in line with market demand


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Agenda


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2007 Before

separately disc losable

items (Pro Forma)

2008Before

separately disclosable

items

2009

Before separately disclosable items

1H 2010

Before separately disclosable items

Consolidated Throughput (TEU) 24.0 Mn 27.8 Mn 25.6 Mn 13.2 Mn

Revenue (US$) $2,613 Mn 3,283 Mn 2,821 Mn 1,455 Mn

Share of JVs and Associates (US$) $87 Mn 116.1 Mn 71.3 Mn 61.9 Mn

Adjusted EBITDA (US$)(including JVs and Associates) $1,063 Mn 1,340 Mn 1,072 Mn 580 Mn

Adjusted EBITDA Margin (US$)(including JVs and Associates) 40.7 % 40.8% 38.0% 39.9%

Our financial results in 2009 have proven that DP World has a superior business model whichis both resilient to downturns in global trade and has the flexibility to mitigate negative impact onprofits

In 2010 container volumes return, and the benefit of cost measures taken in 2009 havereturned our margins to almost 40%

Financial Performance 2008 2010 H1


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Revenue Breakdown

1,280 1,614 1,425

706873 855

627

796540

$0$500

$1,000$1,500$2,000$2,500$3,000$3,500

2007 2008 2009Container 'Stevedoring' Container 'Other' Non-Container

15All financial results are reported before separately disclosed items

80% of our revenue is from container related activities; separated into stevedoring which is thetariff for box moves over the quay wall and container other which includes storage

Our focus on O&D cargo gives pricing power

Contracts with our customers are typically between 1-3 years in duration


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(1) Net debt to Adjusted EBITDA for 30 June is calculated using 12 months EBITDA from 1 July 2009 (2) Interest cover is calculated using Adjusted EBITDA and net interest expense

US$ Millions 30 June 2010 31 December 2009

Total debt 8,043 7,969

Cash balance 2,676 2,910

Net debt 5,365 5,059

Net Debt/Adjusted EBITDA (1) 4.0 4.7

Interest Cover (2) 4.0 3.8

Balance sheet remains strong and stable with a focus on long term debt to match long termconcession profile

Gross cash generation from operations of US$ 525Mn (H1 2010) and US$ 992Mn (FY 2009)and US$ 2.7Bn cash on balance sheet

Next major refinancing is Q4 2012

Debt Position

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Debt Maturity Profile (30 June 2010)

17

0

5001000

1500

2000

2500

3000

3500

2010 2011 2012 2013 2014 2017 2037

First Half Second Half

2010 H2 P&OSNCo and Australia cash-backed facilities

2012 US$ 3Bn Syndicated Loan Facility

2017 US$ 1.5Bn Sukuk

2037 US$ 1.75Bn conventional bond


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Agenda


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Investment Highlights

InternationalListed Company

Emerging MarketFocus

Origin &Destination Cargo

Strong BalanceSheet

Stable FinancialPolicy

Internationalstandards of listingrules, regulationsand obligations

Higher standard of

CorporateGovernance

Faster Growth - atmultiples of GDP

growth

Higher EBITDAMargins

Pricing Power Stable CargoFlows

Long-term debtprofile US$2.7Bn cash onbalance sheet

Disciplinedinvestment criteria

Flexible CapitalExpenditure


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Agenda


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Appendix

Volumes for the fourth quarter and full year 2010


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2010 Throughput

Gross Volumes 2010 Full Year 2009 Full Year

Asia Pacific and Indian Subcontinent 22.0 million 18.5 million

Europe, Africa, Middle East* 21.7 million 20.3 million

Americas and Australia 5.8 million 4.6 million

Total TEU 49.6 million 43.4 million

Consolidated Volumes 2010 Full Year 2009 Full Year

Asia Pacific and Indian Subcontinent(note ATI Manila moved to JV portfolio in 2009)

5.5 million 5.5 million

Europe, Africa, Middle East* 17.5 million 16.5 million

Americas and Australia 4.8 million 3.5 million

Total TEU 27.8 million 25.6 million

*UAE volumes incorporated in the Middle Eastvolumes

11.6 million 11.1 million


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2010 H1 2009 H1

Consolidated Throughput (TEU)13.2 million 12.3 million 7%

Revenue $1,455 million $1,384 million 5%

Share of profit from JVs andAssociates $61.9 million $33.4 million 85%

Financial Results to 30 June 2010

Container revenue per TEU increased to $90 per TEU

Share of profit from joint ventures and associates benefitted from new terminalcontribution excluding new terminals growth was 58% driven by volumes returning inAsia


EBITDA d EBITDA M i


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EBITDA and EBITDA Margins

2010 H1 2009 H1

Adjusted EBITDA (including JVs andAssociates) $580 million $535 million 8%

Adjusted EBITDA Margin (includingJVs and Associates) 39.9% 38.7%


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P fit Aft T & N t I


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Profit After Tax & Net Income

2010 H1 2009 H1Pre-tax profit from continuing businesses

$219 million $216 million 1%

Tax Expense$12 million $29 million ($17 m)

Adjusted net profit after tax from continuingoperations $206 million $188 million 10%Profitable attributable to non-controllinginterests $43 million $12 million $31 m

Profitable attributable to owners of thecompany (Net Income after minorities) $164 million $175 million -7%

Lower tax expense of $12 million due to an adjustment in deferred tax liability in India

2009 H1 reported minority interests lower due to the inclusion of a tax liability in Argentina


Regional Breakdown


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Regional Breakdown

Asia Pacific and IndianSubcontinent

2008 2009 2010 H1

Revenue $517 $477 $212

EBITDA (inc share of profitfrom Joint Ventures)

$272 $248 $111

EBITDA Margins 53% 52% 52.1%

26

17%

21%62%

2009 Revenue

Asia Pac & Indian Subc

Americas & Australia

EMEA

22%

12%

66%

2009 EBITDA

America and Australia 2008 2009 2010 H1

Revenue $757 $596 $389


$241 $138 $107


Europe, Middle East andAfrica

2008 2009 2010 H1

Revenue $2,009 $1,748 853


$922 $765 400


Jebel Ali UAE A Flagship Facility


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Jebel Ali, UAE A Flagship Facility

Jebel Ali is the largest container port

between Rotterdam and Singapore Jebel Ali can accommodate any vessel

size in existence or on order

14 million TEU Capacity; Worlds 6 thlargest container port in 2009

99 year concession in place from 2006

50% origin and destination cargo Jebel

Ali Free zone is home to 6500 companiesinvolved in logisticsdistribution, manufacturing

50% transhipment cargo as Jebel Ali is theGateway for cargo to Middle East Indiaand Africa

2009 Breakdown of Dubai Containers


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2009 Breakdown of Dubai Containers

MiddleEast29%

Far East21%Indian Sub

Con14%

Western

Europe8%

South

EastAsia7%

NorthAmerica

6%

Mediterranean4%

Africa7%

Other4%

Food Stuff45%

Timber &plywood

4%

Paper4%

Iron &Steel5%

Othermetals

2%

Electronics7%

Textiles2%

Plastic25%

Vehicles6%

(1) About 50% of cargo in containers is classified as Other general cargo and is therefore excluded from the breakdownof the Known Container Content pie chart

(2) Total containers handled at DP World Dubai including transshipment containers 28

Containers handled by Geography Containers handled by Geography

Shi i S i /f D b i


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North Europe = 18 days

West Africa = 16 days

Mediterranean = 13 days

Red Sea = 12 days

S E Asia = 7 days

India = 4 days

Far East = 20 daysUSA (East) = 21 days

S. America = 25 days

East Africa = 8 days

South Africa = 12 days

31 services

6 services

23 services4 services

9 services

5 services

11 services

4 services

2 services

2 services

2 services

Shipping Services to/from Dubai

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Ownership Structure


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Government of Dubai

Port & Free Zone World(80.45% ownership of DPW)

DP World ShareholdersVia Nasdaq Dubai Listing (19.55%)

Other Dubai World Companies

Ownership Structure


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Please Contact:DP World Investor Relations Fiona [email protected]/investorcentre
mailto:[email protected]:[email protected]

Documents

Q1 2011 Investor Presentation