Robust Results from DP World

Maritime Activity Reports, Inc.

March 22, 2015



Global marine terminal operator DP World today announced strong financial results from its global portfolio of marine terminals for the twelve months ended 31 December 2014. Like-for-like1 revenue grew 11.3% and adjusted EBITDA
increased 16.0%, delivering profit attributable to owners of the Company, before separately  disclosed items2 , of $675 million, up 25.1% on a like-for-like basis, and EPS of 81.4 US cents.

Results Highlights

* Revenue of $3,411 million

 Like-for-like revenue increased by 11.3% driven by a 10.5% increase in containerised revenue
 Like-for-like non-container revenue increased by 14.2%

* Adjusted EBITDA of $1,588 million; adjusted EBITDA margin of 46.6%

 Adjusted EBITDA margin reach a new high of 46.6% due to strong throughput growth at higher margin locations
 Strong growth in profitability across each of our regions

* Profit for the period attributable to owners of the Company of $675 million

 Strong adjusted EBITDA growth resulted in a 25.1% increase in like-for-like profit attributable to owners of the Company before separately disclosed items

* Acquisition of Economic Zone World (EZW), including the leading logistics park in the GCC, Jebel Ali Freezone (JAFZ), for a consideration of $2.6 billion, announced in November 2014

 Acquisition will enhance port and logistics offering to DP World customers by strengthening integration and optimising investment
 EZW operates an attractive business model with recurring revenues, high EBITDA margins and strong cash generation
 The transaction is expected to be more than 15% EPS accretive in the first full year

* Continued investment in high quality long-term assets to drive long-term profitable growth

 $807 million invested across the portfolio during the year
 Jebel Ali (UAE) added 2 million TEU capacity at Terminal 3; progress was made at new projects in Mumbai (India), Yarimca (Turkey) and Rotterdam (Netherlands), which are expected to launch in 2015
 By the end of 2015 we expect to have approximately 85 million TEU of gross global capacity, an increase of approximately 15 million TEU since 2012, and over 100 million TEU of gross capacity by 2020, subject to market demand
 We expect capital expenditure in 2015 to be between $1.4-$1.7 billion

* Strong cash generation and robust balance sheet

 Cash from operating activities amounted to $1,486 million up from $1,299 million in 2013.
Cash conversion remained high at approximately 94% of adjusted EBITDA
 Free cash flow (post maintenance capital expenditure and pre dividends) amounted to $1,288 million against $1,034 million in 2013
 Leverage (Net Debt to adjusted EBITDA) reduced to 1.3 times due to lower than expected capex but is expected to rise to a more optimal level at approximately 3.0 times following closure of the EZW transaction, well within the guidance range of 3.0-4.0x

* Total dividend per share of 23.5 US cents
 Ordinary dividend is increased to 23.5 US cents from 23.0 US cents per share despite significant outlay with EZW acquisition and continued capex programme

DP World Chairman, Sultan Ahmed Bin Sulayem commented, “DP World is pleased to announce another set of strong financial results, with double digit top line growth translating into like-for-like attributable earnings growth of over 25%.

“We have ambitious strategic goals to maximise financial returns, strengthen global supply chains and create sustainable economic growth around the world. Our performance in 2014, whereby we outperformed the industry, illustrates that our strategy is bearing fruit as we benefitted from increased volumes across our global portfolio, including Embraport in Brazil and London Gateway in the UK which came on stream in 2013.

"The acquisition of the Jebel Ali Freezone will allow us to further consolidate our position as the leading logistics hub in the fast growing Middle East region. This, combined with our ability to add
new capacity to our global portfolio will enable us to deliver both earnings growth and shareholder value over the long term.

“The Board of DP World is recommending a total dividend of $195.1 million, or 23.5 US cents per share. We are increasing the dividend from 23.0 US cents despite the acquisition of EZW and our ongoing significant capex programme. The Board is confident of the Company’s ability to continue to generate cash and support our future growth whilst maintaining a consistent dividend payout.

Group Chief Executive, Mohammed Sharaf commented, “This robust set of results was driven by DP World’s long-term strategic approach, the company’s focus on faster growing markets and continued investment in its people, innovation and worldclass technology, and sustainable investments in new capacity in response to market demand.

“During 2014, we opened the first phase of our new semi-automated terminal at Jebel Ali, adding 2 million TEU of much needed new capacity in the UAE, which gives us the ability to handle more of the new generation of mega vessels. 2015 is expected to be a busy year for new projects as we add approximately 8 million TEU of capacity including new facilities at Yarimca (Turkey), Nhava Sheva (India) and Rotterdam (Netherlands), with further additions to capacity at Jebel Ali Terminal 3 (UAE).

"Our balance sheet remains strong and we continue to generate high levels of cashflow, which enables us to invest in the future growth of our current portfolio, and gives us the flexibility to make new investments should the right opportunities arise.

“We have made an encouraging start to 2015 and current trading is in line with group expectations. Whilst macro-economic conditions and geopolitical issues across some locations remain uncertain, we believe our portfolio is well positioned to deliver volume growth in line or slightly ahead of the market this year. ”

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