DP World Limited Investor Presentation May 2017 1
Our Journey From Local to Regional to Global Port Operator 1972 1998: Local port operator 1972. Development of Port Rashid (Dubai, UAE). 1979. Opening of Jebel Ali Port (Dubai, UAE). 1991. Port Rashid and Jebel Ali Port operations combined to create Dubai Ports Authority (DPA). 1999 2004: Regional port operator 1999. Dubai Ports International FZE (DPI) formed. 2000. Concessions won in Jeddah (Saudi Arabia) and Doraleh (Djibouti). 2002. Concession won in Visakhapatnam (India). 2003. Concession won in Constanta (Romania). 2004. Concession won in Cochin (India). 2005 2012: Global port operator 2005. CSX World Terminals acquired. 2006. The Peninsular & Oriental Steam Navigation Company (P&O) acquired. 2006/7. Global network and market position increased in Asia, India, Australia, the Americas, Europe and Africa. 2007. DP World listed on NASDAQ Dubai. 2013 2015: DP World London Gateway port welcomes first scheduled vessel. Embraport (Brazil) becomes operational. Acquisition of Economic Zones World FZE (EZW) Acquired Fairview Container Terminal in Prince Rupert (Canada). 2016-2017: Our Journey continues Jebel Ali Port reaches 18 million TEU capacity. Lease agreement for Rodney Container Terminal in St. John Canada. 50 year concession for the development of a greenfield multipurpose port project in Posorja (Ecuador). 30 year concession for Port of Berbera in Somaliland. Partnership with CDPQ to create US$ 3.7B Investment Platform. Increases stakes in Pusan Newport Company Limited with 66.03% ownership. London Gateway wins first Asia-Europe service and opens third berth 2
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017F 2018F 2019F 2020F Globalisation and the growth of the Container World container traffic vs. World GDP More than 90% of cargo is transported on Sea 15.0% 10.0% 5.0% 0.0% Container volumes growing at a multiple to GDP -5.0% -10.0% Container Volume Growth Global GDP Growth Container Ports Characteristics Resilient volumes, high cash generation, and limited operators. Light regulation cost of container handling is less than 10% of total transport logistics. High entry barriers capital expenditure heavy, strategic assets. Concessions are perpetual in practice. Why does a multiplier exist? Distance between manufacturing and consumption location requires transhipment which leads to containers being handled more than once. Trade imbalance leads to empty repositioning. Low container penetration rates in emerging markets. 1 World GDP data from the IMF World Economic Outlook Update April 2017. 2 Container Handling Growth data reported from Drewry Maritime Research March 2017 Report. 3
DP World DP World is the only listed global container port operator Over 77 terminals across six continents. 8 new developments and major expansions. 75% of total revenue generated by container port operations. Approximately 9% market share (based on world container throughput) 1. DP World operates container terminals through long term concession agreements Average life of port concessions is approximately 38 years in reality they are perpetual as historically concessions have always been renewed should they meet our returns criteria. Very high barriers to entry. DP World focuses on origin and destination cargo which has pricing power Over 70% of our gross volumes were O&D in 2016 and have to go through our ports. Shipping lines do not dictate our volumes imports and exports do. DP World focuses on the faster growing markets and key trade routes Approximately 75% of our volumes generated from emerging or frontier markets in 2016. Diversified portfolio. Strong presence in key East-West trade route. 1. Drewry Maritime Research 2016 Annual Report 4
Our Global Footprints GDP Growth < 0 0-2% 2-4% +4% Hub Terminal Terminal 5
Overview of 2016 Financial Results Results before separately disclosed items (1) unless otherwise stated USD million 2016 2015 As Reported % change % change Like-for- like at constant currency (2) Gross throughput (3) (TEU 000) 63,658 61,701 3.2% 2.2% Consolidated throughput (4) (TEU 000) 29,240 29,110 0.4% (1.6%) Revenue 4,163 3,968 4.9% 1.3% Share of profit from equity-accounted investees 149 53 183.5% 30.5% Adjusted EBITDA (5) 2,263 1,928 17.4% 6.6% Adjusted EBITDA (6) margin % 54.4% 48.6% - 52.6% (6) Profit for the period 1,260 970 29.9% 9.0% Profit for the period attributable to owners of the Company 1,127 883 27.6% 6.2% Profit for the period attributable to owners of the Company after separately disclosed items 1,024 883 16.0% - Basic Earnings per share attributable to owners of the Company (US cents) 135.7 106.3 27.6% 6.2% Ordinary Dividend per share (US Cents) 38.0 30.0 26.7% - 1 Before separately disclosed items (BSDI) primarily excludes non-recurring items. DP World reported separately disclosed items of -$104.4 million. 2 Like-for-like at constant currency is without the addition of new capacity at Yarimca (Turkey), Stuttgart (Germany), Antwerp Inland (Belgium), Prince Rupert (Canada) and Jebel Ali Free Zone (UAE). 3 Gross throughput is throughput from all consolidated terminals plus equity-accounted investees. 4 Consolidated throughput is throughput from all terminals where the group has control as per IFRS. 4 Adjusted EBITDA is Earnings before Interest, Tax, Depreciation & Amortisation including share of profit from equity-accounted investees before separately disclosed items. 5 The adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue, including our share of profit from equity-accounted investees. 6 Like-for-like adjusted EBITDA margin. 6
Strong Performance in 2016 Revenue growth and improved EBITDA margin Strong balance sheet and cash generation Continued investment in high quality long-term assets Revenue increased by 4.9% supported by the acquisitions of Jebel Ali Free Zone (UAE) and Prince Rupert (Canada). Like-for-like revenue increased by 1.3% driven by a 2.3% increase in containerized revenue. Adjusted EBITDA margin for the full year reached a new high of 54.4% reflecting the Jebel Ali Free Zone acquisition and increased contribution from other higher margin locations. Like-for-like adjusted EBITDA margin was at 52.6%. Cash from operating activities amounted to $2,002 million up from $1,928 million in 2015. Free cash flow (post cash tax maintenance capital expenditure and pre dividends) amounted to $1,674 million against $1,595 million in 2015. Leverage (Net Debt to adjusted EBITDA) decreased to 2.8 times from 3.2 times in 2015. Capital expenditure of $1,298 million invested across the portfolio during 2016. Key capacity expansions include Jebel Ali (UAE), London Gateway (UK), Yarimca (Turkey) and Mumbai (India). We expect capital expenditure in 2017 to be $1.2 billion with investment planned into Jebel Ali (UAE), Prince Rupert (Canada), Posorja (Ecuador), Berbera (Somaliland), Dakar (Senegal), and London Gateway (UK). Strong earnings growth and dividends Strong adjusted EBITDA growth resulted in a 27.6% increase in attributable profit (BSDI) on a reported basis and 6.2% growth on a like-for-like basis. Ordinary dividend increased by 26.7% to 38 US cents to reflect growth in 2016 earnings. 7
Throughput Overview Gross Volumes 000 TEU 1Q 2016 1Q 2017 1H 2015 1H 2016 FY 2015 FY 2016 Volume 2015 Volume 2016 Asia Pacific & India Subcontinent 4.7% 5.8% 2.8% 2.9% 1.6% 4.6% 28,285 29,587 Europe, Middle East and Africa* 0.0% 5.2% 7.1% 0.6% 4.1% 1.4% 25,985 26,338 Americas & Australia 13.4% 7.0% -0.1% 8.3% 5.3% 4.1% 7,430 7,734 Total Group 3.7% 5.7% 4.2% 2.5% 3.0% 3.2% 61,701 63,658 Consolidated Volumes 000 TEU 1Q 2016 1Q 2017 1H 2015 1H 2016 FY 2015 FY 2016 Volume 2015 Volume 2016 Asia Pacific & India Subcontinent 11.3% 99.9% -1.5% 6.6% -0.6% 1.8% 4,870 4,957 Europe, Middle East and Africa* -1.1% 1.6% 5.2% -1.6% 2.8% -1.3% 21,556 21,279 Americas & Australia 15.4% 13.5% -0.4% 19.4% 8.6% 11.9% 2,684 3,003 Total Group 2.3% 19.9% 3.5% 1.6% 2.7% 0.4% 29,110 29,240 *UAE Volumes included in Europe, Middle East and Africa -5.9% 1.8% 6.0% -6.0% 2.3% -5.3% 15,592 14,772 8
Debt Position $ million 31 Dec 2016 31 Dec 2015 Total debt 7,618 7,670 Cash balance 1,299 1,437 Net debt 6,319 6,234 Net debt/adjusted EBITDA 2.8 times 3.2 times Interest cover 6.7 times 5.0 times Well matched debt profile with long-term debt to meet long-term nature of our business. Highly cash generative business - generating cash from operations of $2,002 million and a cash balance of $1,299 million. Leverage of 2.8 times (net debt to EBITDA) below the guidance range of 4 times. 9
USD Million Debt Maturity Profile 2000 1800 1600 1400 1200 1000 800 600 400 200 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2037 Convertible bond Sukuk MTN Bank loans & Others In 2016, we have reduced refinancing risk and extended the debt maturity profile by a new $1.2bn 7-year sukuk issuance and tender offer, 650 million financing at London Gateway, and $CAD 603 million financing for the Canadian business. Next major debt maturities include $387 million in outstanding Sukuk due in July 2017, followed by the $650 million JAFZ Sukuk in 2019, the $500 million MTN in 2020, and the new $1.2 billion Sukuk in 2023. In February 2017, a $250 million term loan facility maturing in June 2017 was prepaid. $1 billion convertible bond maturing in 2024 (puttable in 2018 and 2021) and $1.75 billion conventional bond maturing in 2037. 10
Maintaining Differentiation from Peers Operator 2015 Throughput 2015 Market Share 2015 Equity TEU * Market Share Capacity Key Focus Hutchinson Port 81.0 11.8% 6.9% 106.1 Holdings (1) APM Terminals PSA International 69.3 10.1% 5.2% 95.8 63.8 9.3% 7.7% 91.5 COSCO Group (2) 62.8 9.2% 3.0% 80.2 DP World 60.5 8.8% 5.4% (3) 78.1 Significant exposure to transhipment in Hong Kong High volumes in China, limited in North America & Africa Exposed to slow growth in Hong Kong cargo Low number of active greenfield developments Exposed to one shipping line more than 50% of revenue Primarily gateway (some transhipment exposure) Significant presence in mature Europe & North America, no presence in Oceania Significant exposure to transhipment especially in Singapore Mix of mature & emerging markets, strong home base in Singapore No presence in Africa and North America, limited presence in Latin America Increasing portfolio expansion plans (greenfield) and development of capacity at existing locations e.g. Singapore Mainly focused on China although expanding internationally Primarily gateway, limited exposure to transhipment Limited expansion plans, focus on development of capacity Primarily origin and destination cargo (70%) with pricing power Emerging market focus and strong presence in Europe High global presence, limited in North America Significant developments in Jebel Ali & London Gateway Expansion in emerging and mature markets Source: Drewry Maritime Research 2016 Annual Report. *Equity TEU adjusts figures to match the % ownership of terminals. (1) Hutchison figure include HPH Trust volumes (2) Cosco Group includes Cosco Pacific and Cosco Container Line (3) DP World equity league ranking: #4 in 2015 and #3 in 2016 11
Containerisation Penetration Rates Remain Low Region / country 2015 port throughput (mn TEU) Estimated population in 2015 (mn People) Container / thousand capita in 2015 (TEU / 000 people) China 215 1,382 156 UK 10 65 147 North America 58 486 120 Europe 118 1,255 94 WORLD 685 7,349 93 Latin America 43 537 79 Brazil 9 204 45 Russia 4 144 27 Africa 24 1,055 23 India 12 1,276 9 Notes: Port throughput figures include gateway and transhipment volumes Significant volumes of unitised traffic also move in ro-ro mode in some countries e.g. UK Source: Drewry Maritime Research 2015 Annual Report 12
Dubai Serves a Wide Region Midway between Asia & Europe Trade gateway for GCC, ISC & Africa Population access of over 2 billion Logistics hub for Arabian Gulf Host to the World Expo 2020 Pro-business government Rapidly growing trade and services sectors Cosmopolitan city with high standard of living Excellent healthcare & educational services Diverse living environment, over 200 nationalities Secure environment AED 1.26 trillion Non-oil foreign trade in (2016) Largest domestic market in the region Jebel Ali Port is 9th largest port worldwide (Lloyds List/CI 2016) 18 million TEU capacity (2016) 180+ shipping lines, 90+ weekly services World's busiest international airport 84 million passengers in 2016 Handled 592 MMT air freight in 2016 DWC: Dubai s emerging cargo airport Rail network in GCC by 2020 Etihad Rail (UAE) will span 1,200 kms 75 Kms of Metro Tramway of 14 Kms #4 #22 #10 #25 Trading Across Borders 14 (World Bank) #1 MENA region Ease of Doing Business report 15 (World Bank) - Globally Global Connectedness Index 2016 (DHL) 2016 Economic Freedom Index - globally 9 13
Jebel Ali Port & Free Zone (JAFZ) Integrated One Stop Shop for Business Solution 57 sq. km. modern commercial and industrial logistics park adjacent to Jebel Ali port and Al Maktoum international Airport 100% foreign ownership 0% corporate and personal taxes The freedom to repatriate both capital and profits No recruitment restrictions No currency restrictions Offering long term contracts Over 7,000 companies & more than 100 fortune 500 companies already in the Free Zone Best in class port operations brought together with Free Zone s intermodal, logistic facilities, customs and other services 14
Update on Free Zone Trading remains in line with expectations Total number of companies exceeds 7,000 Additional space in JAFZA One tower released. Completion of tower two in 1H2017. Further capacity added to warehouse and onsite residential segment in 2016. 100% 95% 90% 85% 80% 75% 70% 65% Occupancy Rates % Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Land Warehouse Office On-Site Residential Occupancy rates of Jebel Ali Free Zone Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Land 79% 77% 80% 83% 89% 90% Warehouse 90% 90% 94% 95% 94% 84% Office 80% 87% 92% 95% 85% 66% On-Site Residential Note: Warehouses include showrooms 88% 84% 87% 100% 99% 95% 21 15
Key Capacity Additions 2016 Year End Capacity New Developments and major expansions in 2016 (operational start date in brackets) 2017 Year End Forecast 2020 Forecast Consolidated Capacity 42.4 m TEU Jebel Ali (UAE) T2 & T3 0.5m TEU each Yarimca (Turkey) 0.8m TEU Mumbai (India) 0.2m TEU Southampton (UK) 0.18m TEU Antwerp Inland (Belgium) 0.16m TEU London Gateway (UK) 0.8m TEU (in 2017) Busan (South Korea) 0.5m TEU Approx. 50m TEU Approx. 55m TEU Gross Capacity (Consolidated plus equityaccounted investees) 84.6 m TEU As above plus: Melbourne (Australia) 0.1m TEU Antwerp Gateway (Belgium) 0.7m TEU Laem Chabang (Thailand) 0.2m TEU Approx. 89m TEU Approx. 100m TEU Many of our existing portfolio of terminals have the ability to increase capacity as utilization rates and customer demand increases. 2016 new consolidated capacity: Jebel Ali (UAE) T2 and T3 0.5m TEU each, Busan (South Korea) 0.5m TEU, Yarimca (Turkey) 0.8m TEU, Mumbai (India) 0.2m TEU, Southampton (UK) 0.18m TEU, and Antwerp Inland (Belgium) 0.16m TEU. 2017 expected new capacity: Jebel Ali (UAE), London Gateway (UK), Prince Rupert (Canada), Berbera (Somaliland), and Dakar (Senegal). 16
DP World Key Financial Metrics $ million 2009 2010 2011 2012 2013 2014 2015 2016 Gross Throughput (TEU mn) 43.4 49.6 54.7 56.1 55.0 59.9 61.7 63.7 Revenue 2,821 3,078 2,978 3,121 3,073 3,411 3,968 4,163 EBITDA 1,072 1,240 1,307 1,404 1,414 1,588 1,928 2,263 EBITDA margin 38.0% 40.3% 43.9% 45.0% 46.0% 46.6% 48.6% 54.4% Leverage (Net Debt / EBITDA) 4.7 4.2 2.7 2.0 1.7 1.3 3.2 2.8 PAT 332.7 450.1 531.7 624.8 674.2 756.7 969.9 1,259.5 EPS 35.6 45.0 55.3 65.7 72.8 81.4 106.3 135.7 ROCE % 3.8% 4.4% 6.0% 6.8% 6.7% 7.1% 7.9% 9.5% Interest cover x 3.8 4.4 4.5 4.7 5.0 5.6 5.0 6.7 Capex 967 1,129 481 685 1,106 807 1,389 1,298 Acquisition & Monetisation 142 0 (1,504) (374) (620) 83 4,100 172 Consolidated Terminal Capacity (TEU mn) 34.4 35.1 33.6 34.7 35.2 37.9 40.1 42.4 Gross Capacity (TEU mn) 59.7 64.1 69.4 69.7 70.7 76.1 79.6 84.6 Capacity Utilisation 72.7% 77.3% 78.8% 80.4% 77.8% 78.7% 77.5% 75.2% 17
2016 Return on Capital Employed 50.0% 40.0% 30.0% 20.0% 15% 10.0% 0.0% -10.0% -20.0% -30.0% -40.0% -50.0% Return on Capital Employed (ROCE) improved to 9.5% in 2016 from 7.9% in 2015. Approximately 35% of our global capacity delivers returns in excess of 15%. Newer capacity or investment in pre-operational capacity reduces group ROCE. Includes all DP World consolidated terminals and our equity-accounted investees. 18
DP World Peer Group Comparison 700 600 Spread over Mid-Swaps 500 400 300 200 100 DPW 2037 DPW 2020 DPW 2017 DPW 2023 JAFZ 2019 TAQA 2024 DEWA2020 TAQA 2036 Issuer MOODY FITCH S&P DP World Baa2 BBB - JAFZ Baa2 BBB - TAQA A3 - A- DEWA Baa1 - - 0-100 Source: Bloomberg as of 31/03/2017 On 5 th August 2016, Fitch upgraded DP World to BBB from BBB- with stable outlook. On 1 st September 2016, Moody s upgraded DP World to Baa2 from Baa3 with stable outlook. 19
Thank you INVESTOR RELATIONS CONTACTS Redwan Ahmed, Director Investor Relations Email: redwan.ahmed@dpworld.com Lie-Tin Wu, Investor Relations Manager Email: lie-tin.wu@dpworld.com Investor Relations Email: Investor.relations@dpworld.com 20