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Q1 2011 Investor Presentation
Q1 2011 Investor Presentation
Investor Presentation
January 2011
1
Agenda
1. Company Highlights
5. Concluding Remarks
DP World is Unique
DP World is the only listed global container port operator
DP World 2010 gross throughput of 49.6m TEU by Geography
Australia and Americas (5.8 TEU) 12% Middle East, Europe and Africa (21.7m TEU) 44%
Focus purely on container ports 49 terminals & 10 new developments and major
expansion projects across 31 countries Approximately 10% market share (1)
go through our ports Shipping lines do not dictate our volumes import and exports do
43.4
2006PF
2007
2008
2009
Agenda
1. Company Highlights
5. Concluding Remarks
473 million TEU handled globally Utilization 63% EBITDA margins largely maintained
North America 8%
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
All data supplied by Drewry Annual Review of Global Container Terminal Operators 2010
2009
Throughput according to Drewry
HPH AMPT
13.6% 12.0%
13% 12.3%
PSA
DPW
55.3 m TEU
45.2 m TEU
11.7%
9.5%
11.4%
8.9%
South Asia 1%
Europe 28%
Note/Source: Based on 2009 throughput according to Drewry Annual Review of Global Container Terminal Operators 2010
15.0%
0.0% 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
-5.0%
(1) World GDP data from the IMF World Economic Outlook 2010 Container Handling Growth data reported from Drewry Annual Container Terminal (1) Historic data on World GDP Growth from IMF World Economic Outlook, April 2008 Operators
Agenda
1. Company Highlights
5. Concluding Remarks
Drewry forecasts a CAGR of 7.3% p.a. in global container activity 2011-2015 77% of DP World throughput today comes from faster growing emerging or frontier markets (highlighted in green)
7.3%
DP World has high quality, efficient, wellequipped capacity to meet customers needs both today and in the future
0%
2%
4%
6%
8%
10%
10
All data provided by Drewry Container Forecaster Q310 Published 30 September 2010
2020 FCST
(1)
42 Mn TEU
48 Mn TEU
67 Mn TEU
As above plus: Embraport, Brazil Fos2XL, France Qingdao, China Rotterdam, Netherlands
79 Mn TEU
92 Mn TEU
Flexibility to roll out new capacity from our 10 new developments and major expansion projects inline with
market demand
Many of our existing portfolio of 49 terminals have the ability to increase capacity as utilization rates and
customer 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
11
Agenda
1. Company Highlights
5. Concluding Remarks
13
Consolidated Throughput (TEU) Revenue (US$) Share of JVs and Associates (US$) Adjusted EBITDA (US$) (including JVs and Associates) Adjusted EBITDA Margin (US$) (including JVs and Associates)
Our financial results in 2009 have proven that DP World has a superior business model which is both resilient to downturns in global trade and has the flexibility to mitigate negative impact on profits In 2010 container volumes return, and the benefit of cost measures taken in 2009 have returned our margins to almost 40%
14
Revenue Breakdown
$3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0
796
627 706 1,280 2007 Container 'Stevedoring' 1,614 540 873 855 1,425
2009 Non-Container
80% of our revenue is from container related activities; separated into stevedoring which is the tariff for box moves over the quay wall and container other which includes storage Our focus on O&D cargo gives pricing power Contracts with our customers are typically between 1-3 years in duration
15
Debt Position
US$ Millions Total debt Cash balance Net debt Net Debt/Adjusted EBITDA (1) 30 June 2010 8,043 2,676 5,365
4.0 4.0
Balance sheet remains strong and stable with a focus on long term debt to match long term concession 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
16
(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
First Half
Second Half
2010 H2 P&OSNCo and Australia cash-backed facilities 2012 US$ 3Bn Syndicated Loan Facility 2017 US$ 1.5Bn Sukuk
17
Agenda
1. Company Highlights
5. Concluding Remarks
18
Investment Highlights
International Listed Company
International standards of listing rules, regulations and obligations Higher standard of Corporate Governance
Pricing Power
19
Agenda
1. Company Highlights
5. Concluding Remarks
20
Appendix
21
2010 Throughput
Consolidated Volumes Asia Pacific and Indian Subcontinent (note ATI Manila moved to JV portfolio in 2009) Europe, Africa, Middle East* Americas and Australia Total TEU 2010 Full Year 5.5 million 17.5 million 4.8 million 27.8 million 2009 Full Year 5.5 million 16.5 million 3.5 million 25.6 million
Gross Volumes Asia Pacific and Indian Subcontinent Europe, Africa, Middle East* Americas and Australia Total TEU
2010 Full Year 22.0 million 21.7 million 5.8 million 49.6 million
2009 Full Year 18.5 million 20.3 million 4.6 million 43.4 million
11.1 million
2010 H1 Consolidated Throughput (TEU) 13.2 million Revenue Share of profit from JVs and Associates
$1,455 million
$61.9 million
$1,384 million
$33.4 million
5%
85%
23
All financial results are reported before separately disclosed items
2010 H1
Adjusted EBITDA (including JVs and Associates) Adjusted EBITDA Margin (including JVs and Associates) $580 million 39.9%
2009 H1
$535 million 38.7% 8%
24 24
2010 H1 Pre-tax profit from continuing businesses Tax Expense Adjusted net profit after tax from continuing operations Profitable attributable to non-controlling interests Profitable attributable to owners of the company (Net Income after minorities) $219 million $12 million $206 million $43 million $164 million
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
25
All financial results are reported before separately disclosed items
Regional Breakdown
Asia Pacific and Indian Subcontinent
Revenue EBITDA (inc share of profit from Joint Ventures) EBITDA Margins
2008
$517 $272 53%
2009
$477 $248 52%
2010 H1
$212 $111 52.1%
2009 Revenue
17% 21%
62%
2008
2009
2010 H1
EMEA
27.6%
2009 EBITDA
Europe, Middle East and Africa Revenue EBITDA (inc share of profit from Joint Ventures) EBITDA Margins 2008 $2,009 $922 46% 2009 $1,748 $765 44% 2010 H1 853 400 46.9%
26
27
Electronics 7% Other metals 2% Iron & Steel 5% Paper 4% Timber & plywood 4%
Western Europe 8%
(1) About 50% of cargo in containers is classified as Other general cargo and is therefore excluded from the breakdown of the Known Container Content pie chart (2) Total containers handled at DP World Dubai including transshipment containers
28
Mediterranean = 13 days
6 services
2 services
S. America = 25 days
2 services
29
Ownership Structure
Government of Dubai
DP World Shareholders
Via Nasdaq Dubai Listing (19.55%)
30
31