Annual Report and Accounts 2013

Our Strategic Priorities

Financial

Driving sustained long-term shareholder value

achievements
  • We strategically adjusted our portfolio, divesting and monetising some of our assets in Hong Kong (China) and recycling capital into faster growing markets and new developments, including Jebel Ali (UAE), Embraport (Brazil), Rotterdam (Netherlands) and the DP World London Gateway port (UK).
  • We opened the new extension to Container Terminal 2 (T2) at Jebel Ali port (UAE). The expansion adds one million TEU, extending the T2 quay wall by 400 metres to 3,000 metres, allowing for the simultaneous handling of six ultra-large container vessels.
  • We opened the c. $2.3bn DP World London Gateway port and logistics park project (UK) on schedule in the fourth quarter of 2013.
performance

ROCE (return on capital employed) is EBIT before separately disclosed items as a percentage of total assets, less current liabilities.

Our ROCE is impacted by the very low age profile of our portfolio and the up front capital investment required. ROCE has almost doubled in the last four years and we are making good progress towards our target of 15% on our existing portfolio by 2020.

EPS (earnings per share) is calculated by dividing the profit after tax attributable to owners of the Company (before separately disclosed items) by the weighted average shares outstanding.

In 2013, our EPS grew 27% on a like-for-like basis, displaying our ability to target higher margin cargo, improve efficiencies and maintain costs.

Customer

Creating a satisfied and profitable customer experience

achievements
  • We welcomed the first scheduled vessel to the DP World London Gateway port, the MOL Caledon from South Africa, after more than a decade of planning and construction across three square miles of development.
  • We implemented new initiatives using smartphone mobile applications to integrate our entire range of customer services at Jebel Ali port (UAE), with the aim of increasing our customers’ competitiveness and lowering supply chain costs.
  • We jointly announced with Marks and Spencer the building of a new c. $300 million distribution centre at the London Gateway logistics park, which will give Marks and Spencer closer access to key UK cities and access to the rail network being built.
performance

Gross capacity is the total capacity from our global portfolio of over 65 terminals. Gross capacity utilisation is the total throughput divided by the total capacity.

Our portfolio remains highly utilised and above the industry average.

$1,063 million of capital expenditure was invested across our portfolio in 2013, with a significant proportion invested in our DP World London Gateway port (UK) and Jebel Ali port (UAE).

Our capital expenditure in 2013 was predominantly targeted at new facilities and the expansion of existing facilities.

People & Learning

Creating a learning and growth environment

achievements
  • We rolled out the newly developed software “Planning Terminal Operations” that provides learners with the opportunity to test and understand different techniques safely, then implement in live operations.
  • We implemented a new framework for leadership development. See Our People section for further information.
  • We ran the third My World employee engagement survey during 2013 to gain a better understanding of the key drivers that engage our people. The survey was conducted in 26 languages and we received over 16,000 responses. See Our People section for further information regarding the My World survey results.
performance

By offering a market-leading portfolio of products and tools, the DP World Institute team exists to add value to the business by meeting our customer’s needs and by enabling our people to meet their true potential.

We recognise the need to have a solid understanding of the attitudes and opinions of our people and understand the relationship between employee engagement and business performance. We measure these key indicators bi-annually through our My World employee engagement survey. In 2013, a 77% response rate from staff at participating business units was achieved. Over 16,000 responses were received in 2013.

Internal/Operational

Developing efficient, safe and secure methods of managing our operations

achievements
  • We launched the industry’s largest ever asset management programme which will cover our entire global operations. By managing our assets across our portfolio, it greatly improves efficiency, eliminates wastage and duplication, cuts costs, and minimises disruption to customer service.
  • We joined forces with the Dubai Carbon Centre of Excellence (DCCE) on the eve of World Environment Day. The initial phase of the five-year agreement with DCCE will see them review our practices, explore and identify energy reduction opportunities to implement in line with international standards. Agreed projects will have the potential to be applied across our global network.
  • We inducted almost 5000 truck drivers into our safety programme for external truck drivers at Jebel Ali port (UAE) as part of our priority to provide a safe and secure work environment.
  • We implemented the methodology of scenario planning to strengthen our ability to think through future environments and ensure our strategy is best placed to take advantage of a changing world. The “DP World Global Scenarios 2040” booklet was launched in December 2013.
performance

GBMH (gross berth moves per hour) is calculated by taking the total container vessel moves, divided by the sum of the gross crane hours (where gross crane hours is the time from first lift to the last lift of each quay crane combined).

We have calculated the GBMH as an average across our portfolio and the above graph shows our GBMH improvement as a percentage against our 2008 baseline.

LTIFR (lost time injury frequency rate) is the frequency of injuries per million hours worked.

DP World is committed to ensuring the safety of our people and we will continue to strive towards achieving our goal of zero harm.