q1 2011 investor presentation
TRANSCRIPT
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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
3. Business Outlook and Strategy
4. Financial Overview5. Concluding Remarks
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%
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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
3. Business Outlook and Strategy
4. Financial Overview5. Concluding Remarks
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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1. Company Highlights2. Industry and Competitor Overview
3. Business Outlook and Strategy
4. Financial Overview5. Concluding Remarks
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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1. Company Highlights2. Industry and Competitor Overview
3. Business Outlook and Strategy
4. Financial Overview5. Concluding Remarks
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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1. Company Highlights2. Industry and Competitor Overview
3. Business Outlook and Strategy
4. Financial Overview5. Concluding Remarks
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
23All financial results are reported before separately disclosed items
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%
24All financial results are reported before separately disclosed items
24
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
25All financial results are reported before separately disclosed items
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
EBITDA (inc share of profitfrom Joint Ventures)
$241 $138 $107
EBITDA Margins 32% 23% 27.6%
Europe, Middle East andAfrica
2008 2009 2010 H1
Revenue $2,009 $1,748 853
EBITDA (inc share of profitfrom Joint Ventures)
$922 $765 400
EBITDA Margins 46% 44% 46.9%
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
29
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]