DP WORLD ANNOUNCES RECORD RESULTS

WITH ADJUSTED EBITDA of $5 BILLION

Dubai, United Arab Emirates, 16 March 2023: DP World Limited announces strong financial results for the year ended 31 December 2022. On a reported basis, revenue grew 58.9% to $17,127 million and adjusted EBITDA grew 31% to $5,014 million with adjusted EBITDA margin of 29.3%.

Results Highlights

Ø Revenue increased by $6,349 million to $17,127 million (Revenue growth of 58.9% on a reported basis)

§ Revenue growth of 58.9% supported by acquisitions and like-for-like revenue growth driven by the solid performance of Ports and Terminals and Marine Services.

§ Containerised revenue increased by 12.1%, driven by higher demand for ancillary container services.

§ Like-for-like non-containerised revenue is up 18.3%, with a strong performance from Unifeeder due to improved average freight rates.

Ø Adjusted EBITDA increases 31% to $5,014 million

§ Adjusted EBITDA grew 31.0% on strong revenue growth and EBITDA margin for the year stood at 29.3%. Like-for-like adjusted EBITDA margin stood at 37.2%.

Ø Broadening of strategic partnerships strengthens balance sheet and drives long-term value

§ Broadening of partnerships and monetisations raises over $8 billion to significantly strengthen balance sheet and provide long-term flexibility. 

§ Caisse de dépôt et placement du Québe (CDPQ) and Hassana Investment Company (Hassana)[7] partnerships in UAE raises $7.4 billion to help capture the growth potential of the wider region.

§ Expansion of National Investment and Infrastructure Fund (NIIF) India partnership and new partnership with the UK's development arm British International Investment (BII) to raise approximately $600 million.

Ø Robust cash generation and a stronger balance sheet on asset monetisations

§ Cash generated from operating activities increased by 20.6% to a record $4,451 million in 2022 ($3,692 million in 2021).

§ Leverage (Net debt to adjusted EBITDA) On a pre-IFRS16 basis declines to 2.7x (FY2021: 3.7x) due to improved profitability and lower net debt. On a post-IFRS16 basis, net leverage stands at 3.0 times compared to 4.2 times in FY2021.

Ø DP World credit rating improves to Baa2 with Stable Outlook

§ DP World's credit rating improved by one notch by Moody's to Baa2 with Stable Outlook on improved financial performance and a stronger balance sheet.

§ Fitch credit rating improved to Positive outlook with BBB- rating.    

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

Ø Selective investment in key growth markets 

§ Capital expenditure of $1,715 million ($1,393 million in 2021) was invested across the existing portfolio.

§ Capital expenditure guidance for 2023 is for approximately $1.7 billion to be invested in UAE, Jeddah (Saudi Arabia), London Gateway (United Kingdom), Dakar (Senegal), Banana (Democratic Republic of the Congo) Callao (Peru) and DPW Logistics (South Africa).

Ø Transformation of business to drive revenue synergies and long-term relationships with cargo owners

§ Enhanced logistics portfolio offers value-add capabilities in fast-growing markets and verticals.

§ DP World aims to deliver supply chain solutions to cargo owners by leveraging its best-in-class infrastructure across logistics, ports & terminals, marine services and digital.

§ Providing bespoke integrated solutions to cargo owners and removing inefficiencies across the supply chain. DP World is well-positioned to capitalize on the growing demand for customised solutions in the logistics industry.

§ DP World's transformation strategy aims to strengthen its position in the market and drive long-term growth.

Ø Committed to transition to net zero in line with UAE 2050 Initiative

§ Decarbonisation remains a core focus as we transition to net zero by 2050.

§ Committed to investing more than $500 million to reduce CO₂  emissions by 700k tonnes in the next 5 years. 

§ DP World was recognised as a top performer by Sustainalytics and we achieved A- (Leadership) rating by CDP Climate Change.  

Ø Strong 2022 Performance, Encouraging Start to 2023, Outlook Remains Uncertain

§ 2022 performance was ahead of expectations, and the start of 2023 has been encouraging.

§ Outlook is uncertain due to geopolitics, potential new trade wars, a higher inflationary environment and currency fluctuations.

§ DP World remains positive on the medium to long-term outlook for global trade and is focused on delivering integrated supply chain solutions to cargo owners to drive growth and returns.

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

We are pleased to announce that DP World achieved record results in 2022, with our adjusted EBITDA rising by 31.0% to exceed $5 billion. Our continued focus on high-margin cargo and end-to-end supply chain solutions is the key driver of these results, and we believe this strategy will continue to yield sustainable returns over the long term.

Cargo owners have responded positively to our end-to-end product offering, as our customized solutions empower customers to trade more effectively.  By investing in high-growth verticals and markets, we aim to provide compelling logistics solutions that leverage our world-class infrastructure across logistics, ports & terminals, marine services, and digital technologies. We remain focused on driving revenue synergies through our enhanced logistics platform, lowering inefficiencies throughout the supply chain, and improving connectivity in critical trade lanes to deliver value to cargo owners.

In 2022, we focused on strengthening the balance sheet and raised over $8 billion through asset monetizations.  This programme and new partnerships will allow us to continue to drive growth in our portfolio. Furthermore, the fresh capital also provides capacity and flexibility to invest in key growth markets while maintaining an investment grade rating.

Overall, 2022 performance exceeded expectations, and the start of the year has been encouraging. However, the outlook is uncertain due to the more challenging macro and geopolitical environment, and we expect growth rates to soften in 2023.  Despite this, we expect our portfolio to continue to deliver a robust performance, and we remain positive on the medium to long-term fundamentals of the industry and DP World's ability to continue to deliver sustainable returns."

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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, 16^th March 12:00pm UAE (08:00am UK) Conference Call

1)    Conference call for Full Year 2022 Results hosted by Yuvraj Narayan, Group Deputy CEO and CFO.

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 benefits from a focus on high-margin cargo and supply chain solutions

DP World's strong performance in 2022 was driven by our consistent investment in relevant capacity, prioritisation of high-margin cargo and focus on delivering customised solutions to meet the unique needs of cargo owners. This emphasis on providing solutions has allowed us to serve our customers better, which has resulted in cementing long-term relationships with cargo owners.

By leveraging our best-in-class infrastructure across logistics, ports & terminals, marine services and digital, DP World has been removing inefficiencies across the supply chain and providing improved connectivity in fast-growing trade lanes. The demand for bespoke supply chain solutions will continue to rise as cargo owners' needs shift and DP World is well-placed to benefit from these developments.

DP World Logistics platform enhanced

In 2022, we made significant strides to enhance our logistics platform as we integrated the acquisitions of Imperial Logistics and syncreon to bring additional capabilities and access to new growth markets. DP World Logistics offers integrated solutions capability, including value add contract logistics in more than 30 countries with a particular focus on the high growth Africa market.  

We have focused on developing our products across the Automotive, Technology, Healthcare and Consumer verticals. We aim to invest further to add new verticals and markets to serve our customers better.  We are focused on providing flexibility and customisation as we understand that every cargo owner has unique needs and challenges. We aim to reduce inefficiencies in the supply chain and offer efficient and effective solutions for our customers through streamlining documentation and optimizing transportation routes.

We continue to develop and invest in our propriety technology platform to provide intelligent solutions to cargo owners. These include Cargoes Flow, a one-stop-solution that offers end-to-end visibility; Cargoes Finance which provides critical supply chain finance, particularly for SMEs, the backbone of any economy; and Cargoes Logistics, which simplifies trade by providing instant cargo bookings. 

Marine Services delivers exceptional profit growth

2022 has also proved to be a positive year for our Marine services business, with Unifeeder delivering an exceptional performance as it benefited from providing critical connectivity in challenging supply-constrained markets.  

Unifeeder Group is a facilitator of integrated supply chains providing efficient and sustainable transport solutions. We have expanded our business to new geographies in recent years, including Asia, the wider Indian Subcontinent, the Middle East, and Latin America. This expansion has enabled us to serve our customers better, increase our market share, and offer more opportunities for growth.

We remain committed to investing in our business to ensure that we can continue providing critical connectivity for cargo owners. Our marine services business is an integral part of our Company's vision and strategy, and we are excited about the possibilities for growth and success in the future.

Robust growth in Ports & Terminals 

The ports and terminals business delivered a strong performance in 2022 as containerised revenues grew by 12.1%^[8] as demand for ancillary services continued to remain solid. Our ports portfolio was critical in 2022 in providing much-needed efficient capacity during supply chain disruptions.

Our assets in the UAE and Americas delivered a particularly solid performance as the local economy continued to provide robust growth. Our port capacity utilisation was above 80% in 2022, and we invested over $950 million in our portfolio, adding capacity in key markets including London Gateway (UK), Callao (Peru), Sokhna (Egypt), Jeddah (Saudi Arabia) and Canada. Our consistent approach to adding relevant capacity and investment in automation is a key differentiator and we continue investing in markets with strong supply-demand dynamics.   

Broadening of partnerships strengthens balance sheet and drives long-term value

DP World announced several partnership expansions and monetizations last year, raising over $8 billion to significantly strengthen its balance sheet. The most significant partnership was with CDPQ and Hassana in the UAE, raising $7.4 billion which was used to settle external debt held by and guaranteed by the Group. 

The Company also expanded its partnership with NIIF in India to raise around $300 million and created a new investment platform with BII Group to accelerate investment in Africa. DP World also optimized its Ports and Terminals portfolio in France, raising approximately $300 million by exiting Le-Havre and consolidating Eurofos. The new capital provides capacity and flexibility to continue investing in key growth markets and verticals, driving returns for DP World stakeholders while maintaining an investment-grade rating.

Decarbonisation is a core focus as we transition to net zero by 2050

When we developed the 'Our World, Our future' sustainability strategy, we set out a clear objective to build, protect and maintain DP World's 'license to operate' in ways that are economically, socially and environmentally responsible.  We have made substantial progress in our commitments, and our efforts have not gone unnoticed. We have been recognised as a top performer by Sustainlytics and received a leadership score (A-) from the CDC Climate Change submission. However, there is much more to achieve yet, and we are committed to a net zero target by 2050 in line with the UAE 2050 strategic initiative. In the near term, we have committed to invest over $500 million to cut CO₂ emissions by 700k in the next 5 years.  

Group Deputy CEO & CFO Review

DP World has delivered an impressive set of financial results for 2022 with a significant improvement in profitability, as adjusted EBITDA of $5,014 million was up by 31.0% on a reported basis and 19.8% on a like-for-like basis on strong top line growth. The adjusted EBITDA margin also remained healthy at 29.3% and the year-on-year decline in adjusted EBITDA margin is due to a mix change. 

Reported revenue grew by 58.9% to $17,127 million, and profit attributable to owners improved considerably by 30.4%, demonstrating DP World's strong performance in the market.

DP World's like-for-like revenue growth was driven by its Ports and Terminals business in the UAE, Africa and the Americas, along with the Marine Services business, where Unifeeder played a vital role as the key growth driver. Meanwhile, reported revenue growth was aided by the acquisitions of syncreon and Imperial logistics.

In 2022, DP World focused on strengthening its balance sheet and raised over $8 billion through asset monetisations. The most significant transactions were in the UAE, where the Company partnered with CDPQ and Hassana to raise $7.4 billion. In addition, a new partnership with BII in Africa raised approximately $300 million, while in India, DP World expanded its partnership with NIIF to include its ports portfolio, expecting to raise an additional $300 million.

The strengthening of DP World's balance sheet has resulted in the Company's credit rating being upgraded by Moody's by one notch to Baa2 with Stable Outlook, while the rating by Fitch has improved to a Positive Outlook with a BBB- rating.

Overall, DP World's strong financial results for 2022 reflect its robust business model and efficient operations. The Company's focus on asset monetisation and partnerships has strengthened its balance sheet, while its continued investments in key markets has enabled it to stay ahead of the competition.

Middle East, Europe and Africa

Market conditions were broadly favourable, with strong growth driven by Ports and Terminals in UAE and Africa. At the same time, non-container revenue experienced a significant increase due to Unifeeder's (Europe) strong performance. The like-for-like containerised revenue growth of 7.6% exceeded the volume growth of 1.5%, mainly due to higher ancillary revenue. Although the performance in Europe was solid overall, there was a noticeable slowdown in the second half of 2022, attributable to the weaker economic conditions. Non-container revenue grew 115.9%, primarily due to the acquisition of syncreon and Imperial logistics.

Overall, revenue in the region grew 74.7% to $11,600 million and adjusted EBITDA increased 25.8% to $3,448 million. On a like-for-like basis, adjusted EBITDA improved by 11.9%.

We invested $1,104 million in the region, mainly focused on Jebel Ali Port & EZ World (UAE), Jeddah (Saudi Arabia), Dakar (Senegal), Sokhna (Egypt) and London Gateway Port & London Gateway Park (UK).

Asia Pacific and India

The financial performance of the Asia Pacific and India region was impressive, driven by robust performance in Marine Services and Logistics. The growth in Marine Services was primarily led by Unifeeder (ISC), which benefited from improved average freight rates, while the growth in Logistics was attributable to Unico (South Korea). The performance of Ports and Terminals was mixed, with volumes in the region being softer. Nonetheless, stronger demand for ancillary services resulted in a rise in like-for-like containerised revenue.   

Total reported revenue rose 35.3% to $2,599 million, and adjusted EBITDA increased by 37.3% to $1,001 million. On a like-for-like basis, adjusted EBITDA increased by 40.4%.  Adjusted EBITDA margin of 38.5% remains broadly flat year-on-year.  Profit from equity-accounted investees increased to $96 million.

Capital expenditure in this region during the year was $163 million, mainly focused on India.   

Australia and Americas

The Americas region was the primary driver of containerised revenue growth, with a particularly strong performance in Latin America. The growth in containerised revenue was also supported by ancillary revenue. Additionally, reported non-containerised revenue growth of 81.4% was mainly due to the full-year contribution of syncreon, which was acquired in December 2021.

Total reported revenue rose 32.2% to $2,929 million, and adjusted EBITDA increased by 24.6% on a reported basis to $1,005 million. On a like-for-like basis, adjusted EBITDA increased by 16.2%, reflecting the higher top line. 

We invested $446 million in capital expenditure in this region, mainly focused on Prince Rupert, Vancouver (Canada), Callao (Peru) and Caucedo (Dominican Republic).

Cash Flow and Balance Sheet

Adjusted gross debt (excluding bank overdrafts and loans from non-controlling shareholders) stands at $18.5 billion compared to $19.1 billion as of 31 December 2021. Lease and concession fee liabilities account for $4.4 billion, with interest-bearing debt of $14.1 billion as of 31 December 2022.  Cash and cash-equivalents on the balance sheet stood at $3.3 billion, resulting in net debt of $15.2 billion or $10.9 billion (on a pre IFRS 16 basis). Our net leverage (adjusted net debt to adjusted EBITDA) stands at 3.0 times post-IFRS16 and would be 2.7x pre-IFRS16 basis. Cash generation remained solid, with cash from operations improving to $4.7 billion (2021: $3.6 billion).   

Capital Expenditure

Consolidated capital expenditure in 2022 was $1,715 million (FY2021: $1,393 million), with maintenance capital expenditure of $203 million. We expect the full-year 2023 capital expenditure to be approximately $1.7 billion, which will be invested in UAE, Jeddah (Saudi Arabia), London Gateway (United Kingdom), Dakar (Senegal), Banana (Democratic Republic of the Congo), Callao (Peru), and DPW Logistics (South Africa).

Net finance costs before separately disclosed items

Net finance costs in 2022 was higher than prior year at $800 million compared to 2021 of $747 million. Increase in net finance costs mainly due to higher average debt and increase in the effective interest rate during the year.

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 calculated in accordance with the taxation laws and regulations of the countries in which they operate. For 2022, DP World's income tax expense before separately disclosed items increased to $395 million (2021: $238 million), due to an improvement in profitability.

Profit attributable to non-controlling interests (minority interest)

Profit attributable to non-controlling interests (minority interest) before separately disclosed items was $401 million against FY2021 of $250 million, mainly due to new minority shareholding in the UAE and Africa and strong performance from Unifeeder (ISC).

About DP World: 

We are a 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 over 350 business units in 75 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 103,000 people from 161 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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