DP World Limited Investor Presentation September 2016
Our Journey
From Local to Regional to Global Port Operator 1972 – 1998: Local port operator
1999 – 2004: Regional port operator
2005 – present: Global port operator
1972. Development of Port Rashid (Dubai, UAE).
1999. Dubai Ports International FZE (DPI) formed.
2005. CSX World Terminals acquired.
1979. Opening of Jebel Ali Port (Dubai, UAE).
2000. Concessions won in Jeddah (Saudi Arabia) and Doraleh (Djibouti).
2006. The Peninsular & Oriental Steam Navigation Company (P&O) acquired.
1991. Port Rashid and Jebel Ali Port operations combined to create Dubai Ports Authority (DPA).
2002. Concession won in Visakhapatnam (India). 2003. Concession won in Constanta (Romania). 2004. Concession won in Cochin (India).
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 – 2016: Our Journey continues • DP World London Gateway port welcomes first scheduled vessel. • Jebel Ali Port reaches 18 million TEU capacity. • Embraport (Brazil) becomes operational. • DP World closes the acquisition of Economic Zones World FZE (EZW) • DP World’s global capacity reaches 79.6 million TEU and handles 61.7 million TEU (2015). • DP World announces its agreement to acquire Fairview Container Terminal in Prince Rupert (Canada). • DP World wins a 50 year concession for the development of a greenfield multi-purpose port project in Posorja (Ecuador). 2
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% Container volumes growing at a multiple to GDP
5.0%
-10.0%
Container Volume Growth
2020F
2019F
2018F
2017F
2016F
2015
2014
2013
2012
2011
2010
2009
2008
Global GDP Growth
Why does a multiplier exist?
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.
1 2
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
-5.0%
1991
0.0%
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.
World GDP data from the IMF World Economic Outlook Update April 2016. Container Handling Growth data reported from Drewry Maritime Research 2015 Annual Report
3
DP World DP World is the only listed global container port operator
DP World operates container terminals through long term concession agreements
Over 77 terminals across six continents.
Average life of concessions is approximately 39 years – in reality they are perpetual as historically concessions have always been renewed should they meet our returns criteria.
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.
Very high barriers to entry.
DP World focuses on origin and destination cargo which has pricing power
DP World focuses on the faster growing markets and key trade routes
Over 70% of our gross volumes were O&D in 2015 and have to go through our ports.
Approximately 75% of our volumes came from emerging or frontier markets in 2015.
Shipping lines do not dictate our volumes – imports and exports do.
