DP WORLD ANNOUNCES RECORD RESULTS

As EBITDA increases 15% to $3.8 billion

Dubai, United Arab Emirates, 10 March 2022: DP World Limited announces strong financial results for the year ended 31 December 2021. On a reported basis, revenue grew 26.3% to $10,778 million and adjusted EBITDA grew 15.3% to $3,828 million with adjusted EBITDA margin of 35.5%.

Results Highlights

Ø Revenue increased by $2,245 million to $10,778 million (Revenue growth of 26.3% on reported basis)

§ Revenue growth of 26.3% supported by acquisitions and new concessions including Angola, Unico and Transworld.  

§ Like-for-like revenue increased by 11.7% with like-for-like containerised revenue up 14.2% driven by volume growth.

§ Containerized revenue growth is higher than volume growth mainly due to higher storage and reefer monitoring revenue.

§ Like-for-like non containerised revenue up 9.5% with a strong performance from the Feedering business.

Ø Adjusted EBITDA of $3,828 million and adjusted EBITDA margin of 35.5%

§ Adjusted EBITDA grew 15.3% and EBITDA margin for the year stood at 35.5%. Like-for-like adjusted EBITDA margin of 37.9%.

§ Reported EBITDA margin declined due to a change in mix with the consolidation of lower margin Logistics businesses.

Ø Cash Generation Accelerates  

§ Cash from operating activities increased 27.3% to a record $3,692 million in 2021 ($2,901 million in 2020).

§ Leverage (Net debt to adjusted EBITDA) at 3.7 times (Pre-IFRS16) despite higher net debt of $12.2bn ($11.0bn 2020). On a post-IFRS16 basis, net leverage stands at 4.2 times compared to 4.3 times at FY2020. 

§ DP World credit rating remains investment grade at BBB- with Stable Outlook by Fitch and Baa3 with Stable Outlook by Moody's.

§ DP World is committed to a strong investment grade rating in the medium term.

Ø Strong Operational Performance Despite Disruptions

§ Terminals have remained open to service cargo owners despite challenge with pandemic.

§ DP World delivered a strong operational performance with berth productivity maintained despite low schedule reliability.

Ø Disciplined Investment Across the Portfolio

§ Capital expenditure of $1,393 million ($1,076 million in 2020) invested across the existing portfolio.

§ Capital expenditure guidance for 2022 is for up to $1.4 billion with investments planned into UAE, Jeddah (Saudi Arabia), London Gateway (UK), Berbera (Somaliland), Sokhna (Egypt), Indonesia and Callao (Peru).

Ø Acquisitions to bring value-add capabilities, exposure to high growth markets and long-term relationship with cargo owners

§ Acquisitions of syncreon and Imperial Logistics[8].

§ Acquisitions bring value-add capabilities in fast growing markets and verticals.

§ Adds long-term relationship with cargo owners.

Ø Partnership with CDC to create Africa Investment Platform

§ Partnership with UK's development finance Institution, CDC, with DP World investing $1bn in ports and logistics across Africa.

§ Creation of platform will accelerate investment in Africa and remove trade inefficiencies.

Ø Strong 2021 Performance, Encouraging Start to 2022

§ Portfolio has delivered strong performance in 2021.

§ Encouraging start to trading in 2022. We remain focused on delivering integrated supply chain solutions to cargo owners to drive growth and returns.

§ Pandemic, rising inflation and geopolitics continues to cause some uncertainty but medium-to-long term outlook remains positive.

DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem, commented:

"We are delighted to report these strong set of results with adjusted EBITDA growing by $0.5 billion to a new record of $3.8 billion. Importantly, growth was broad based across our terminals and logistics assets as we begin to drive synergies across our portfolio. This significant growth once again demonstrates that our strategy to deliver integrated supply chain solutions will drive sustainable long-term returns.

Furthermore, our recently announced acquisition of Imperial Logistics and syncreon will bring value-add capabilities in high growth verticals and markets, which will allow us to offer a more compelling set of supply chain solutions. By leveraging our best-in-class infrastructure across inland logistics, ports & terminals, economic zones and marine logistics network, DP World aims to lower inefficiencies and provide improved connectivity in fast growing trade lanes such as Asia, Middle East & Africa.

"Importantly, we continue to make positive progress with our capital recycling program and this combined with the strong operational performance, leaves us well positioned to deliver on our 2022 combined (DP World and PFZW) leverage target of less than 4x Net Debt to adjusted EBITDA (Pre IFRS16)[9].

"Overall, we are pleased with the 2021 performance and looking ahead to 2022, we expect our portfolio to continue to deliver growth and, while the year has started encouragingly, we remain mindful that the geopolitical uncertainty, Covid-19 pandemic, continued supply chain disruptions and rising inflation could hinder the global economic recovery."

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Investor Enquiries

Redwan Ahmed                                                     Amin Fikree

DP World Limited                                                    DP World Limited

Mobile: +971 50 554 1557                                      Mobile: +971 56 6811553

Direct:  +971 4 808 0842                                        Direct : +971 4 808 0923

[email protected]                           [email protected]

Thursday, 10^th March 2:00pm UAE (10:00am UK) Conference Call

1)  Conference call for Full Year 2021 Results hosted by Yuvraj Narayan.

2)  A playback of the call will be available after the conference call concludes. For the dial in details and playback details please contact [email protected].

The presentation accompanying the conference call will be available on DP World's website within the investor centre under Financial Results on https://www.dpworld.com/investor-relations/financials-presentation/investor-presentations from approximately 9am UAE time.

Forward-Looking Statements

This document contains certain "forward-looking" statements reflecting, among other things, current views on our markets, activities, and prospects. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may or may not occur and which may be beyond DP World's ability to control or predict (such as changing political, economic or market circumstances). Actual outcomes and results may differ materially from any outcomes or results expressed or implied by such forward-looking statements. Any forward-looking statements made by or on behalf of DP World speak only as of the date they are made and no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. Except to the extent required by law, DP World does not undertake to update or revise forward-looking statements to reflect any changes in DP World's expectations with regard thereto or any changes in information, events, conditions or circumstances on which any such statement is based.

Group Chairman and CEO Statement

DP World to benefit from structural shifts in supply chain

Our consistent investment in relevant capacity and deliver solutions has allowed us to serve our customers better over the recent period despite the challenges the industry has faced with the pandemic and supply chain disruptions, which has allowed us to cement long term relationships with cargo owners. The demand for bespoke supply chain solutions will continue to rise as cargo owner demands shifts and DP World is well placed to benefit from these developments. The Covid-19 pandemic has resulted in structural changes that have had a profound impact on global trade.

Beneficial cargo owners are re-examining their supply chains and assessing for potential concentration risk, and many are considering a more regional distributional model or near-sourcing to avoid future disruptions.  DP World's business has always been built with a focus on diversity, faster growing markets, and origin & destination cargo, and again we believe we are well prepared to meet the future demands of cargo owners.

Launch of Cargoes Suite to drive digital trade

The pandemic has accelerated the use of digital technology to conduct trade and our early investment in digital technology such as Dubai Trade and terminal automation allowed us to benefit from this shift in behaviour.   We have also launched a new range of products to drive efficiencies in the supply chain and support cargo owners. These products include Cargoes Flow, a one-stop-solution that provides end-to-end visibility, Cargoes Finance that provides critical supply chain finance particular for SME's who are the backbone of any economy, Cargoes Logistics which simplifies trade by providing instant cargo bookings.   In summary, the focus on innovation continues, as we invest to build intelligent platforms that provide efficient solution for cargo owners.

Adding depth to our value-add solutions

The acquisitions of Imperial Logistics and syncreon[10] will bring value-added capabilities in high growth verticals and markets, and these assets will allow us to offer a more compelling set of supply chain solutions.

Imperial is an integrated logistics and market access solutions provider with a presence across 25 countries, including a significant footprint in the high growth Africa market.  The Group focuses on key fast-growing industries which include healthcare, consumer, automotive, chemicals, industrial and commodities. Imperial's business has been built on long-standing partnerships with beneficial cargo owners (BCO's) with key relationships averaging more than 15 years.

syncreon provides specialized value-added warehousing and distribution solutions and has a global presence across 19 countries. syncreon services a large and diversified portfolio of customers made up of multinational companies and specializes in the design and operation of complex supply chain solutions for the high growth automotive and technology verticals.

Both businesses bring complex solutions capability and strong long-term relationships with cargo owners which fits with DP Worlds vision to provide smart tech-led supply chain solutions to enable trade across key markets.

Continued Investment in Ports & Terminals

In 2021, we have invested $774 million in our ports & terminals portfolio, adding capacity in key markets. Also, we continue to invest selectively in container port terminals that offer compelling value. We started operating the multipurpose terminal in Luanda, Angola. Luanda is a key port that handles all cargo for a country that is the 5^th largest economy in Africa. 

We announced the 50-year concession agreement and development of Ndayane terminal in Senegal and construction has already started.  DP World's existing operations in Dakar (Senegal) has seen solid growth in recent years and with utilisation rates high, it is time to invest in new facilities to make room for further growth. The new port will support Senegal's development over the next century, and further reinforce Dakar's role as a major logistics hub and gateway to West and North West Africa.

We also announced a return to Indonesia to develop and operate an integrated container port and, industrial and logistics park in Gresik, Java (Indonesia). The Java region is the key trading hub and generates approximately 60% of Indonesia's GDP. The container market in the region has delivered consistently strong growth and utilisation rates remain high.  The first phase of the greenfield project will add container capacity of 1 million TEU (twenty-foot equivalent units) and 110-hectare industrial & logistics park and is expected to be operational by 2024.

Deputy CEO & Group CFO Review

DP World has delivered a strong set of financial results in 2021 with significantly improved cash generation.  Our adjusted EBITDA of $3,828 million, is up 8.2% on like-for-like basis, while our adjusted EBITDA margin has remained broadly stable at a healthy 35.5%.  Reported revenue grew by 26.3% to $10,778 million and attributable income rose by 25.6%.  

The Group continues to target 2022 combined (DPW & PFZW) leverage of below 4.0x Net/Debt to adjusted EBITDA on a pre-IFRS 16 basis and remains committed to a strong investment grade rating in the medium term. The business continued to generate high levels of cash flow with operating cash flow increasing by 27.3% year-on-year to $3,692 million.  The strong cash generation combined with the well progressing capital recycling program, leaves us well placed to meet our 2022 leverage target.

Importantly, DP Worlds credit rating remains investment grade at BBB- with Stable Outlook by Fitch and Baa3 with Stable Outlook by Moody's.

 Middle East, Europe and Africa

Market conditions were broadly positive across these regions with Middle East and Europe being key drivers of growth. Jebel Ali (UAE) delivered steady volume growth of 1.9%.  Like for like containerised revenue growth of 11.6% was ahead of like for like volume growth of 3.8% mainly due to higher other containerised revenue. Non-container revenue grew 7.1% driven by Unifeeder and Drydocks World.

Overall, revenue in the region grew 10.2% to $6,642 million and adjusted EBITDA increased 5.6% to $2,740 million, On a like for like basis, adjusted EBITDA improved by 4.3%.

We invested $945 million in the region, mainly focused on UAE, Sokhna (Egypt), Berbera (Somaliland), Jeddah (Saudi Arabia) and London Gateway (UK).

Asia Pacific and India

Market conditions were strong particularly in India. Container volumes grew strongly which resulted in containerised revenue growth of 22.8% on a like-for-like basis.  

Reported non-containerised revenue growth was boosted by the acquisition of Unico (South Korea) and Transworld. Like-for-like non containerised revenue growth was driven by Feedertech.

Total reported revenues rose 142.1% to $1,921 million and adjusted EBITDA increased by 100.9% to $729 million due to the addition of Unico, solid rebound in container volumes in India and strong growth in Feedertech. On a like-for-like basis, adjusted EBITDA increased by 63.4%.  Adjusted EBITDA margin declined due to mix change as we consolidated lower margin logistics businesses.  Profit from equity-accounted investees increased to $92 million.

Capital expenditure in this region during the year was $137 million, mainly focused in Pusan (South Korea) and India.   

Australia and Americas

 Container volumes rebounded strongly in both Americas and Australia and this resulted in like-for-like containerised revenue growth of 17.3%, also aided by other containerised revenue.

Reported Non containerised revenue growth of 49.6% was mostly due to the acquisition of syncreon while like-for-like growth was driven by Logistics in Peru and Australia.

Total reported revenues rose 29.3% to $2,215million and adjusted EBITDA increased by 36.7% to $807 million. On a like-for-like basis, adjusted EBITDA increased by 23.8% reflecting the higher top line. 

We invested $228 million capital expenditure in this region mainly focused on Prince Rupert, Vancouver (Canada), and Callao (Peru). 

Cash Flow and Balance Sheet

Adjusted gross debt (excluding loans from non-controlling shareholders) stands at $19.1 billion compared to $16.3 billion as of 31 December 2020. Lease and concession fee liabilities account for $3.9 billion with interest bearing debt of $15.2 billion as of 31 December 2021.   Cash and cash equivalents on balance sheet stood at $3.0 billion resulting in net debt of $16.1 billion or $12.2 billion (pre IFRS 16). Our net leverage (adjusted net debt to adjusted EBITDA) stands at 4.2 times post IFRS16 and would be 3.7x pre-IFRS16 basis. Cash generation remained solid with cash from operations standing at $3.7 billion.   

Capital Expenditure

Consolidated capital expenditure in 2021 was $1,393 million (FY2020: $1,076 million), with maintenance capital expenditure of $230 million. We expect the full year 2022 capital expenditure to be up to $1.4 billion to be invested in UAE, Jeddah (Saudi Arabia), London Gateway (UK), Berbera (Somaliland), Sokhna (Egypt), Indonesia and Callao (Peru).

Net finance costs before separately disclosed items

Net finance cost in 2021 was lower than the prior period at $747 million (FY2020: $838 million) mainly due to higher interest income and lower net FX loss.

Taxation

DP World is not subject to income tax on its UAE operations. The tax expense relates to the tax payable on the profit earned by overseas subsidiaries, as adjusted in accordance with the taxation laws and regulations of the countries in which they operate. For 2021, DP World's income tax expense before separately disclosed items was $238 million (2020: $195 million).

Profit attributable to non-controlling interests (minority interest)

Profit attributable to non-controlling interests (minority interest) before separately disclosed items was $250 million against FY2020 of $101 million mainly due to improved performance of Americas and Australia as well as from Feedertech and Unico.

About DP World: 

We are the leading provider of worldwide smart end-to-end supply chain logistics, enabling the flow of trade across the globe. Our comprehensive range of products and services covers every link of the integrated supply chain - from maritime and inland terminals to marine services and industrial parks as well as technology-driven customer solutions. 

 We deliver these services through an interconnected global network of 190 business units in 69 countries across six continents, with a significant presence both in high-growth and mature markets. Wherever we operate, we integrate sustainability and responsible corporate citizenship into our activities, striving for a positive contribution to the economies and communities where we live and work.

 Our dedicated, diverse and professional team of more than 71,255 employees from 150 nationalities are committed to delivering unrivalled value to our customers and partners. We do this by focusing on mutually beneficial relationships - with governments, shippers, traders, and other stakeholders along the global supply chain - relationships built on a foundation of mutual trust and enduring partnership.

We think ahead, anticipate change and deploy industry-leading digital technology to further broaden our vision to disrupt world trade and create the smartest, most efficient and innovative solutions, while ensuring a positive and sustainable impact on economies, societies and our planet.

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