Summary Annual Report and Accounts 2015

Summary Annual Report and Accounts 2015

Creating the Future,Now.

DP World is a leading enabler of global trade and an integral part of the supply chain. By thinking ahead, foreseeing change and innovating, we aim to create the most productive, efficient and safe trade solutions globally.

Message from the Group Chairman and Chief Executive Officer

Planning Ahead

“We are pleased to announce a strong set of financial results for 2015, reporting earnings growth of 31% year on year, driven by the acquisition of Economic Zones World (EZW) and robust underlying growth.”

Sultan Ahmed Bin Sulayem Group Chairman and Chief Executive Officer
Financial Highlights

A Year of Growth

Revenue USD million

Revenue is in USD million before separately disclosed items. The results of the Group are set out in detail in the Consolidated Financial Statements and accompanying notes.

Adjusted EBITDA USD million

Growing adjusted EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) is a key measure of value delivered to shareholders. Adjusted EBITDA is calculated including our share of profit from equity-accounted investees before separately disclosed items.

Profit attributable to owners of the Company USD million

Profit attributable to owners of the Company is before taking separately disclosed items into account and excludes any profit attributable to non-controlling interests (minorities).

Adjusted EBITDA margin %

The adjusted EBITDA margin is calculated by dividing EBITDA by revenue, including our share of profit from joint ventures and associates.

Company Overview

Our Global Footprint

  • 17 countries
  • 38 operating terminals
  • 35 million TEU gross capacity
  • 11 countries
  • 26 operating terminals
  • 35 million TEU gross capacity
  • 12 countries
  • 13 operating terminals
  • 10 million TEU gross capacity

Strategic Objectives

Our strategy aims to create value for our stakeholders by developing and operating a world-class portfolio, identifying growth opportunities and driving innovation in our sector to strengthen world trade. We measure progress against our strategic objectives through performance indicators that review our financial, customer, people and operational performance.

Develop and operate a world-class portfolio of assets and create innovative trade solutions:

  • Be known as a trusted brand that can be relied on by our customers globally
  • Drive productivity, efficiency and safety improvements through continuous innovation
  • Leverage our global portfolio to bring about economies of scale on all fronts
  • Recruit, retain and train the best employee talent globally
  • Continuously strive to find more sustainable ways of doing business
Implementing Our Strategy Sustainability Innovations People


We strengthened our commitment to operating as a sustainable business with staff around the world supporting the Go Green Campaign and we joined the United for Wildlife Taskforce to battle the trade in endangered species. Our sustainability initiatives over the past five years have resulted in a carbon emissions reduction of 12% and we have cut our energy use by 14%.


In 2015, we continued to drive Innovation. The opening of the Rotterdam Terminal set a new benchmark for automation and efficiency, while gate automation boosted productivity at Nhava Sheva (India) and we introduced real‑time monitoring of global operations from our corporate head office. We welcomed over 10,000 visitors during UAE innovation week where we showcased a selection of our innovations designed to enhance efficiency in the supply chain, reduce energy use in our operations and protect our people through safer practices.


We invited staff globally to share their views in our 2015 My World Survey and the launch of our new talent management system has streamlined access to training and performance management tools online. Our DP World Institute delivered over 8,000 online and face-toface training programmes. We are also investing in the safety of our people and visitors to our terminals. Safety and Operations teams took part in emergency drills, DP World Vancouver (Canada) deployed a laser-based system to protect against container topples, and we continued to reduce risk through engagement programmes. The success of our programmes resulted in a 23% reduction in reported injuries during the year.

Identify unique and visionary opportunities that strengthen world trade:

  • Forge strong partnerships with customers, governments and local communities
  • Target underserved growth markets with potential
  • Focus on origin and destination cargo
  • Develop value adding services inside and outside gateway ports
Implementing Our Strategy Beyond the gate Supply Portfolio

Beyond the gate

Listening to our customers’ needs, we developed our “beyond the gate” initiatives, providing value-added services and infrastructure to support the movement of cargo beyond our terminals. The acquisition of Economic Zones World which completed in March 2015 enhanced Jebel Ali’s port-centric offering. During the year, we integrated our Dubai Trade and World Security acquisitions, adding more industry-related services to our portfolio. We acquired inland terminals in Mannheim and Stuttgart (Germany), enhancing our presence in Germany and facilitating greater trade within Northern Europe.


We have pioneered the integrated port and logistics model globally. In 2015, rail operations commenced at Embraport (Brazil), the new Logistics Centre at DP World London Gateway Logistics Park opened, as did the first warehouse at the Caucedo Logistics Centre. We are building long-term supply chain assets for future generations and expect these initiatives to create sustainable returns for all our stakeholders, with increased efficiencies for importers and exporters, and greater volumes for shipping lines.


We strengthened our origin and destination cargo focused portfolio in 2015 with the acquisition of Fairview Container Terminal in Prince Rupert (Canada). This is a key gateway port for trans-Pacific trade, offering the fastest access for vessels travelling between Asia and North America. The terminal also delivers the highest productivity rates on the West Coast with an efficient rail link to the hinterland. In addition to a 25-year licence extension, we also took sole ownership of DP World Southampton (UK), one of the UK’s most productive ports. This extends our average concession life which should bring sustained long-term value to our shareholders.

Manage risk and return to drive sustained long-term shareholder value:

  • Balance operations in both growing and mature markets, diversifying geographical risks
  • Maintain a strong balance sheet with disciplined capital allocation to deliver the right capacity to meet customer requirements
  • Enhance value through optimal acquisitions and divestments
Implementing Our Strategy Capacity Funding


We added significant new capacity of 2.4 million TEU with the opening of the state-of-the art fully automated terminal in Rotterdam (Netherlands). The extension in Mumbai (India) opened in mid-2015, providing much needed new capacity while our greenfield terminal in Yarimca (Turkey) became operational at the end of the year. We took advantage of the softer market conditions to delay the second phase of the expansion at Jebel Ali Terminal 3 (UAE), while work on Terminal 4 commenced during the year and capacity will come on stream in line with demand.


During the year, we reviewed our funding plans and raised $500 million through our Global Medium Term Note programme at attractive terms. This was used to finance approximately $4 billion of acquisitions including EZW (UAE) and Prince Rupert (Canada). We used $500 million from our three-year term loan to finance acquisitions during the year. The remaining $2.5 billion of our revolving credit/term loan facility remains in place, offering us the flexibility to support growth in our existing businesses and expand capacity in line with market demand.

Market Review

Prince Rupert Acquisition

The Fairview Terminal at Prince Rupert Port (Canada) is one of the latest additions to the DP World portfolio. The port sits astride the North American and Asian trade routes and much of its success is due to this superior location and intermodal efficiency, having efficient rail links to the hinterland.

Evacuate onto rail 2x faster than US competitors
Time savings of 9 days

Our World Our Future

Sustainability is a fundamental aspect of being a responsible business; for our customers, our people, our society and our environment. We believe doing the right thing today is the best way to thrive in the future.