DP WORLD ANNOUNCES STRONG FINANCIAL RESULTS Like-for-like profit grows 27% in 2013

Transcription

1 DP WORLD ANNOUNCES STRONG FINANCIAL RESULTS Like-for-like profit grows 27% in 2013 Dubai, United Arab Emirates, 20 March, 2014: Global marine terminal operator DP World today announces strong financial results from its global portfolio of marine terminals for the twelve months to 31 December 2013, delivering profit attributable to owners of the Company before separately disclosed items of $604 million, 26.6% ahead of last year on a like-for-like basis. Results before separately disclosed items 1 unless otherwise stated USD million As Reported % change like for like at constant currency % change 2 Consolidated throughput 3 (TEU 000) 26,077 27,097 (3.8%) (0.5%) Revenue 3,073 3,121 (1.5%) 3.6% Share of profit from equity-accounted investees (37.0%) 3.8% Adjusted EBITDA 4 1,414 1, % 9.0% Adjusted EBITDA margin 46.0% 45.0% 47.6% 5 Profit for the period % 23.9% Profit for the period attributable to owners of the Company % 26.6% Profit for the period attributable to owners of the Company after separately disclosed items Earnings per share attributable to owners of the Company (US cents) (13.4%) % 26.6% Ordinary Dividend per share (US Cents) % Our results reflect a very strong performance from those terminals which were operational within our portfolio for the duration of the year. Excluding acquisitions, disposals and monetisations, new capacity and currency fluctuations, revenue growth was 3.6%; adjusted EBITDA growth was 9.0%, our adjusted EBITDA margin rose to 47.6% and EPS was 26.6% ahead of last year. Revenue of $3,073 million Like-for-like revenue increased 3.6% driven by a 4.6% increase in container revenue per TEU (twenty-foot equivalent units) 1 Before separately disclosed items (BSDI) primarily excludes non-recurring items DP World reported separately disclosed items of $48 million, mostly. relating to the $158 million profit on sale of businesses and $99 million impairment of assets. 2 Like-for-like at constant currency is without the addition of (1) new capacity at Embraport (Brazil) and London Gateway (UK) (2) divested equity-accounted investees Tilbury (UK), Aden (Yemen), Adelaide (Australia), Vostochny (Russia), DMS (P&O Maritime) and ACT (Hong Kong) (3) The restructure of our Antwerp business (Belgium) which is now accounted for as an equity accounted investee (4) the divestment of consolidated terminal CT3 (Hong Kong) (5) change in shareholding in ATL (Hong Kong) from June 2013 (6) Change in shareholding in Yantai (Hong Kong) from September 2013 and (7) the impact of exchange rates as our financial results are translated into US dollars for reporting purposes. 3 Consolidated throughput is throughput from all terminals where we have control under IFRS. 4 Adjusted EBITDA is Earnings before Interest, Tax, Depreciation & Amortisation including share of profit from equity-accounted investees before separately disclosed items. 5 Like for Like adjusted EBITDA Margin 1

2 Like-for-like non-container revenue increased 1.7% Adjusted EBITDA of $1,414 million; adjusted EBITDA margin of 46.0% A focus on higher margin business coupled with continued cost control improved adjusted EBITDA margin Profit for the period attributable to owners of the Company of $604 million Strong adjusted EBITDA growth resulted in a 26.6% increase in like-for-like profit attributable to owners of the Company before separately disclosed items Active management of portfolio to recycle capital into faster growing markets Proceeds of $659 million from monetisation of assets during the year Profit attributable to owners of the Company after separately disclosed items of $640 million Strong cash generation and balance sheet remains robust Cash from operating activities amounted to $1,299 million. Cash conversion remained high at approximately 92% of EBTIDA Free cash flow (post maintenance capital expenditure and pre dividends) amounted to $1,034 million Leverage (Net Debt to adjusted EBITDA) reduced from 2.0 to 1.7 times assisted by proceeds from monetisation of assets during the year Continued investment in quality long-term assets to drive long-term profitable growth $1,063 million invested across the portfolio Jebel Ali (UAE) added 1 million TEU capacity, new projects Embraport (Brazil) and London Gateway (UK) opened during the year Total dividend per share of 23 US cents Ordinary dividend of 23 US cents per share, 10% ahead of the prior year DP World Chairman, Sultan Ahmed Bin Sulayem commented; DP World is pleased to announce another set of strong financial results, with like-for-like attributable earnings growing by 26.6%. This performance has been achieved despite the Group facing some challenging market conditions, particularly in the first half of the year, and being capacity constrained within a number of our key locations. Overall, we believe this robust set of results illustrates the resilient nature of our portfolio. Our portfolio remains well positioned to capitalise on the significant medium to long-term growth potential of this industry due to our continued focus on the faster growing markets and stable origin and destination cargo. This positioning combined with our ability to add new capacity will enable us to deliver both earnings growth and shareholder value over the long term. Following the strong financial performance, combined with the realisation of profit from the monetisation of assets during the year, the Board of DP World is recommending a total dividend of $190.9 million, or 23 US cents per share. This comprises a 10% increase in the ordinary dividend. 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. 2

3 DP World Group Chief Executive, Mohammed Sharaf commented; We have reported another set of robust financial results for We believe like-for-like revenue growth above 3.5%, 9.0% like-for-like EBITDA growth, 26.6% like-for-like EPS growth and a 47.6% like-for-like adjusted EBITDA margin is a resilient performance given some of the challenges that we have faced. We remain on track and on budget with respect to our $3.7 billion capital expenditure programme. During 2013, we opened our new state of the art facility at London Gateway (UK) and Embraport (Brazil), while adding 1 million TEU of much needed new capacity in the UAE. We are encouraged by the performance of our new operations and in 2014 we look forward to adding further capacity at Jebel Ali (UAE) and Rotterdam (Netherlands). The opening of Jebel Ali s Terminal 3 will add another 4 million TEU and take total capacity to 19 million TEU. We continue to manage our portfolio actively, having monetised some of our assets in Hong Kong this year and we expect to recycle this cash into projects that will return higher growth on our capital employed. Crucially our balance sheet remains strong, which provides us with the flexibility to invest in the future growth of our current portfolio, and to make new investments should the right opportunities arise, enhancing returns to shareholders over the medium term. Looking ahead, while the outlook in some regions remains challenging, we have demonstrated our ability to remain profitable despite these headwinds. We have made an encouraging start to 2014 and, for the year as a whole and beyond, we expect to see a return to normalised volume growth driven by the addition of new capacity in our portfolio and a gradually improving macro environment. We continue to focus on delivering efficiencies, containing costs and handling higher margin containers to drive profitability. Our business is well positioned for growth and we believe we are well placed to continue to outperform the market. Chairman, CEO and CFO Statements are provided from page 5 - END Investor Enquiries Redwan Ahmed DP World Limited Mobile: Direct: redwan.ahmed@dpworld.com Jasmine Lindsay DP World Limited Mobile: Direct: jasmine.lindsay@dpworld.com 3

4 12 Noon Conference Call and Analyst / Investor Meeting in Dubai, UAE 1) Meeting for analysts and investors hosted by CEO Mohammed Sharaf and CFO Yuvraj Narayan in Dubai, UAE at 1200 noon on Thursday 20 March at DIFC Centre of Excellence, DIFC Gate Village Building 2, Level 1. Those unable to attend in person can join the meeting by conference call (0800 London). 2) An additional conference Call will be hosted at 1600 Dubai time (1200 London, 0800 New York) on Thursday 20 March ) A playback of the call will be available shortly after the 12 noon conference call concludes. For the dial in details and playback details please contact investor.relations@dpworld.com. The presentation accompanying these conference calls will be available on DP World s website within the investor centre. from 0900 UAE time this morning. 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. 4

5 Chairman s Statement I am pleased to report another successful year for DP World. Despite the on-going challenges affecting the world s economies, DP World delivered profit for the year of $674 million. This robust performance reflects our continued focus on higher margin revenue and minimising costs, on maintaining a strong balance sheet, and on making the most of opportunities to free up capital to re-invest where it will bring the greatest returns. Excluding profit from divestments and monetisations during the year, the profit attributable to the owners of the Company was $604 million. Delivering our strategy Our strategy is centred on four priorities: driving sustained long-term shareholder value; creating a satisfied and profitable customer experience; ensuring our operations are efficient, safe and secure; and creating a learning and growth environment for our people. We believe we continue to make excellent progress in each of these areas. Value for shareholders, value for customers With an average concession life of around 40 years, sustaining value is a key driver. We remain confident of achieving our target of a 15% return on capital employed (ROCE) 6 on our existing portfolio and an adjusted EBITDA margin 7 of 50% by Our investments are focused on ensuring that we have the right capacity in the right locations and the right services to meet our customers needs today and tomorrow. During 2013, this included opening for business nearly four million TEU of new capacity across Jebel Ali (UAE), the DP World London Gateway port (UK) and Embraport (Brazil). The opening of additional capacity was supported by the implementation of the latest technology across our portfolio, to speed up our customers supply chains and bring goods more swiftly to market. EXPO 2020 We were delighted to be a premier partner of Dubai s Expo2020 bid. Our entire team was behind the bid and we are excited and proud that it was successful. Our attention now turns to making sure we have the infrastructure in place to support this event, and we will be working very closely with our customers to achieve this goal. We look forward to working with Dubai and the UAE to host this unique event. This event will not only create opportunities for the UAE, it will also create new opportunities for other countries in the region and people across the world. Board Changes The close of 2013 saw long standing Board member Cho Ying Davy Ho step down from his role as an Independent Non-Executive Director. On behalf of the Board, I would like to thank 6 Return on capital employed is EBIT (earnings before interest and taxation) before separately disclosed items as a percentage of total assets less current liabilities. 7 The adjusted EBITDA margin is calculated by dividing EBITDA (earnings before interest, tax, depreciation & amortisation) by revenue, including our share of profit from joint ventures and associates. 5

6 Davy for his valuable contribution to the successful strategic development of our business during his time on the Board. I am pleased to welcome Robert Woods, CBE, to the Board from 1 January 2014 as an Independent Non-Executive Director. As a former Chief Executive Officer of the Peninsular & Oriental Steam Navigation Company, Robert s considerable experience in our industry will be of great value to our organisation as we continue to drive our business forward with strong governance and sound counsel, focused on delivering shareholder value. Dividend Following the strong performance this year, the Board is recommending an annual dividend of 23 US cents per share. This comprises a 10% increase in the ordinary dividend to 23 US cents. There is no special dividend given the relatively lower reported gain on separately disclosed items. The growth in the ordinary dividend reflects the Board s confidence in our ability to generate continued earnings growth and strong cash flows. Subject to approval by shareholders, the dividend will be paid on 6 May 2014 to shareholders on the relevant register as at close of business on 1 April Outlook While the outlook in some regions remains challenging, we have demonstrated our ability to remain profitable despite these headwinds. We have made an encouraging start to 2014 and, for the year as a whole and beyond, we expect to see a return to normalised volume growth driven by the addition of new capacity in our portfolio and a gradually improving macro environment. We continue to focus on delivering efficiencies, containing costs and handling higher margin containers to drive profitability. Our business is well positioned for medium to long-term growth underpinning our confidence in meeting our 2020 target of an adjusted EBITDA margin of 50% and ROCE of 15% on our existing portfolio. Finally, I am encouraged by and grateful for the ongoing commitment of all our partners. As we continue our exciting journey as a leading global terminal operator, I look forward to delivering another year of sustained growth and success with our shareholders. Group Chief Executive Officer s Review In 2013, we continued to steer the business through a difficult macro economic environment, remaining focused on higher margin revenues while containing costs and improving efficiencies across our portfolio. Driving this strategy with relentless focus over the course of 2013 has resulted in this excellent set of financial results. We are pleased to report adjusted EBITDA 8 of $1,414 million and Earnings Per Share (EPS) 9 of 72.8 cents, which represents like-for-like growth of 9% and 27% respectively. We 8 Adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) is calculated including our share of profit from joint ventures and associates on a basis which excludes separately disclosed items. 9 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. 6

7 also increased our adjusted EBITDA margin to 46% as we focused on higher margin cargo during the year. Our strong financial performance came despite muted volume growth. Economic headwinds combined with a highly utilised portfolio with limited spare capacity at key locations constrained our ability to significantly grow volumes in However, the addition of new capacity in 2014 combined with a projected improvement in global trade sets a promising tone for the year ahead. Efficiency We continue our relentless drive to deliver increased productivity and 2013 was another successful year. Berth moves per hour (BMPH), which measures the turn-around time for a vessel, increased further during the year and has now improved by 18% in the last four years. Our gross moves per hour (GMPH), which measures the productivity of our cranes, has delivered a similar trend improving 8% during the same period. Capital Expenditure We continue to invest in our portfolio for future growth. Over the course of 2013 we spent $1,063 million in capital expenditure, predominately at our greenfield DP World London Gateway port and logistics park project in the UK, Embraport (Brazil) and the expansion of our flagship Jebel Ali facility in the UAE. These projects, consistent with the overall nature of our portfolio, are long-term investments, with the life of our concessions averaging approximately 40 years. Our strong cash flows and solid balance sheet mean we are well placed to invest today to meet the long-term needs of our customers whether it is in developed markets requiring increased efficiencies or the capability to handle the increasing size of vessels or in developing markets requiring increased port capacity to meet demand or dated infrastructure. In the developed markets we have invested in the DP World London Gateway port, which offers a state-of-the art facility to meet the future demands of the industry. In short, our port provides the most efficient link between deep-sea shipping and the largest consumer markets in the UK. We are seeing an increasing number of shipping lines calling at our facility and since the turn of the year we have had eight unscheduled calls at DP World London Gateway port, including an Asia-Europe service, as our port was less impacted by adverse weather due to its sheltered location. In faster growing markets, we have invested in the largest multi-modal terminal in Brazil (Embraport), which is in the port of Santos,80 kilometres away from Sao Paulo, the country s most populous city. Our terminal has seen encouraging demand since opening as the growth of the middle class population in Brazil and wider region continues to drive demand for containerised goods. In 2014, we look forward to adding further capacity at Jebel Ali (UAE) and Rotterdam (Netherlands). We are making good progress with Terminal 3 Jebel Ali and it remains on track to deliver four million TEU of additional capacity. Rotterdam is on schedule to open in the second half Alongside investing for the sustainable growth of our business, we also continually review our portfolio, disposing of or monetising assets where it makes strategic sense to do so. In 2013, we monetised some of our Hong Kong assets at attractive multiples which 7

8 subsequently reduced leverage and enabled the recycling of capital into markets that offer the potential to generate higher returns. Strong Balance Sheet Our balance sheet remains strong with leverage (net debt to adjusted EBITDA) at a relatively low 1.7 times. This provides us with the headroom and flexibility to invest further should the right opportunities become available. However, we continue to implement strict financial discipline across our business units, and will only deploy shareholder funds if investment opportunities meet our internal rate-of-return requirements. Chief Financial Officer s Review DP World has delivered another set of strong financial result in 2013 with profit attributable to owners of the Company growing 10.9% to $604 million. Our adjusted EBITDA was $1,414 million, while adjusted EBITDA margins reached a new high of 46%. On a like-for-like basis the growth was solid with adjusted EBITDA and EPS growing by 9% and 27% respectively driven by margin growth in our Middle East, Europe and Africa region revenues grew by 3.6% on a like-for-like basis, despite reporting a 0.5% decline in likefor-like consolidated volumes, which illustrates our ability to target higher margin cargo. Our 2013 like-for-like gross volumes grew marginally by 0.7%, due to a combination of being capacity constrained at key locations including Jebel Ali (UAE) and tougher operating environments in the Asia Pacific and Indian Subcontinent region, particularly in the first half of After a difficult start to 2013, we were encouraged by our volume improvement and a strong second half of the year resulted in marginal full year volume growth. Middle East, Europe and Africa Results before separately disclosed items % change USD million Like-for-like at constant currency % change Consolidated throughput (TEU 000) 18,993 19,202 (1.1%) 0.4% Revenue 2,124 2, % 4.4% Share of profit from equity-accounted investees 8 24 (65.2%) 2.6% Adjusted EBITDA 1, % 10.1% Adjusted EBITDA margin 51.6% 48.3% % 10 Market conditions in the Middle East, Europe and Africa region were mixed. Resilience in our UAE and Africa portfolio mitigated the weaker markets elsewhere. In fact, the UAE delivered another record year with throughput reaching 13.6 million TEU despite being capacity constrained at the start of the year. Consolidated throughput for the region was down 1.1% for the year but our revenue grew 4.4% on a like-for-like basis as our cargo mix favoured higher margin origin and destination and non-container traffic, particularly in the UAE. This translated into a strong financial performance with adjusted EBITDA improving by 7.3% to $1,095 million, while the adjusted EBITDA margin expanded to 51.6%. 10 Like-for-like adjusted EBITDA margin 8

9 Asia Pacific and Indian Subcontinent Results before separately disclosed items % change USD million Like-for-like at constant currency % change Consolidated throughput (TEU 000) 4,604 5,401 (14.8%) (3.9%) Revenue (22.2%) (7.6%) Share of profit from equity-accounted investees (18.7%) (4.5%) Adjusted EBITDA (26.6%) (13.4%) Adjusted EBITDA margin 61.8% 65.6% % 11 It has been well documented that market conditions in the Asia Pacific and Indian Subcontinent region were challenging, particularly in the first half of Weaker than expected GDP growth in Asia combined with a depreciating currency and divestments and monetisations impacted reported volumes, which were down 15% for the year. However on a like-for-like basis the decline was a more modest 4.0%. Reported revenues declined to $355 million while adjusted EBITDA fell to $220 million. However our focus on higher margin cargo and cost efficiencies meant that our margin was protected with an adjusted EBITDA margin of 61.8%. On a more positive note, we witnessed improved market conditions in the second half of 2013 in the region. Australia and Americas Reported results before separately disclosed items % change USD million Like-for-like at constant currency % change Consolidated throughput (TEU 000) 2,480 2,494 (0.6%) (0.6%) Revenue % 8.9% Share of profit from equity-accounted investees (14.0) (1.0) - - Adjusted EBITDA % 31.7% Adjusted EBITDA margin 32.9% 30.0% % 12 The Australia and Americas region delivered a resilient performance with consolidated volumes down marginally by 0.6% in The Americas delivered a softer performance in the second half of the year due to tough prior year comparables. Overall our revenues in the Australia and Americas region grew by 7.5% to 594 million for the year and our focus on higher margin cargo meant that our adjusted EBITDA of $195 million was up by a pleasing 18% on the prior period, while adjusted EBITDA margins also grew to 32.9%. Cash Flow and Balance Sheet Cash generation remained strong with cash from operations standing at $1,299 million for Our capex reached $1,063 million as we delivered some key projects including the DP World London Gateway port (UK) and the expansion at Jebel Ali (UAE). Gross debt rose 11 Like-for-like adjusted EBITDA margin 12 Like-for-like adjusted EBITDA margin 9

10 marginally to $5,035 million while net debt declined to $2,464 million. Our gearing remains relatively low with net debt to adjusted EBITDA standing at 1.7 times. Capital Expenditure We maintain our $3.7 billion dollar capital expenditure guidance as our projects remain on schedule and on budget. We look forward to adding further capacity at Jebel Ali (UAE) and Rotterdam (Netherlands). The lower than expected reported capital expenditure in 2013 is due to timing differences and we expect that to unwind in Targets In summary, we continue to work towards achieving our 2020 targets of 50% adjusted EBITDA margins and 15% ROCE on our existing portfolio. While reported adjusted EBITDA margin stood at 46%, the margin on a like-for-like basis was 47.6%. Our ROCE for our portfolio of assets reached 6.7% in 2013, up from 4.4% in We expect further ROCE improvement in the coming years as we continue to grow and increase utilisation levels across the portfolio. Mohammed Sharaf Group Chief Executive Officer Yuvraj Narayan Chief Financial Officer 10

11 DP World Limited and its subsidiaries Consolidated financial statements 31 December

12 Consolidated financial statements 31 December 2013 Contents Page Independent auditors report 1-2 Consolidated income statement 3 Consolidated statement of comprehensive income 4 Consolidated statement of financial position 5-6 Consolidated statement of changes in equity 7-8 Consolidated statement of cash flows 9-10 Notes to consolidated financial statements

13 Independent auditors report The Shareholders DP World Limited Report on the consolidated financial statements We have audited the accompanying consolidated financial statements of DP World ( the Company ) and its subsidiaries (collectively referred to as the Group ), which comprise the consolidated statement of financial position as at 31 December 2013, the consolidated statements of comprehensive income (comprising a separate consolidated income statement and a consolidated statement of comprehensive income), consolidated statements of changes in equity and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information. Management s responsibility for the consolidated financial statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditors responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on our judgement, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements give a true and fair view of the consolidated financial position of the Group as at 31 December 2013, and of its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards. 1

14 Independent auditors report (continued) Matters on which we are required to report by exception We have nothing to report in respect of the following: Under the Listing Rules, we are required to review: the director s statement, set out on page [ ], in relation to going concern; the part of the corporate governance statement on page [ ] relating to the Company s compliance with the nine provisions of the UK Corporate Governance Code specified for our review; and certain elements of the report to shareholders by the Board on Directors remuneration. On behalf of KPMG LLP 2

15 Consolidated income statement for the year ended 31 December 2013 Year ended 31 December 2013 Year ended 31 December 2012 (Restated *) Notes Before separately disclosed items Separately disclosed items (Note 12) Total Before separately disclosed items Separately disclosed items (Note 12) Total USD 000 USD 000 USD 000 USD 000 USD 000 USD 000 Revenue 8 3,073,248-3,073,248 3,121,017-3,121,017 Cost of sales (1,849,087) - (1,849,087) (2,003,318) - (2,003,318) Gross profit 1,224,161-1,224,161 1,117,699-1,117,699 General and administrative expenses (311,243) (101,433) (412,676) (279,459) (55,850) (335,309) Other income 21,458-21,458 21,643-21,643 Profit on sale and termination of businesses , , , ,204 Share of profit/ (loss) from equity-accounted investees (net of tax) 16 84,366 (4,305) 80, ,897 20, , Results from operating activities 1,018,742 52,450 1,071, , ,064 1,195, Finance income 10 84,493-84,493 75,211-75,211 Finance costs 10 (369,439) - (369,439) (371,229) (10,373) (381,602) Net finance costs (284,946) - (284,946) (296,018) (10,373) (306,391) Profit before tax 733,796 52, , , , ,453 Income tax expense 11 (59,558) (4,900) (64,458) (72,954) - (72,954) Profit for the year 9 674,238 47, , , , ,499 ====== ===== ====== ====== ====== ====== Profit attributable to: Owners of the Company 604,421 35, , , , ,398 Non-controlling interests 69,817 12,335 82,152 79,626 (1,525) 78, ,238 47, , , , ,499 ====== ===== ====== ====== ====== ====== Earnings per share Basic and diluted earnings per share US cents ===== ===== * Refer to note 3 (f). The accompanying notes 1 to 34 form an integral part of these consolidated financial statements. The independent auditors report is set out on pages 1 and 2. 3

16 Consolidated statement of comprehensive income for the year ended 31 December Notes USD 000 USD 000 (Restated *) Profit for the year 721, , Other comprehensive income Items that are or may be reclassified subsequently to consolidated income statement: Foreign exchange translation differences for foreign operations ** (133,211) 104,135 Foreign exchange profit recycled to consolidated income statement on sale of businesses (4,316) (2,131) Net change in cash flow hedges recycled to consolidated income statement - 10,373 Net change in fair value of available-for-sale financial assets 17 3,160 (132) Share in other comprehensive income of equity-accounted investees 17,772 (8,686) Effective portion of net changes in fair value of cash flow hedges 96,743 (24,768) Related tax on fair value of cash flow hedges (18,863) 10,444 Items that will never be reclassified to consolidated income statement: Remeasurements of post-employment benefit obligations 26 38,880 (30,769) Related tax (1,480) 500 Other comprehensive income for the year, net of income tax (1,315) 58, Total comprehensive income for the year 720, ,465 ====== ====== Total comprehensive income attributable to: Owners of the Company 628, ,454 Non-controlling interests 91,887 78, , ,465 ====== ====== * Refer to note 3 (f). ** A significant portion of this includes foreign exchange translation differences arising from the translation of goodwill and purchase price adjustments which are denominated in foreign currencies at the Group level. The translation differences arising on account of translation of the financial statements of foreign operations whose functional currencies are different from that of the Group's presentation currency on Group consolidation are also reflected here. There are no differences on translation from functional to presentation currency as the Company s functional currency is currently pegged to the presentation currency (refer to note 2(d)). The accompanying notes 1 to 34 form an integral part of these consolidated financial statements. The independent auditors report is set out on pages 1 and 2. 4

17 Consolidated statement of financial position as at 31 December December December January 2012 Notes USD 000 USD 000 USD 000 (Restated *) (Restated *) Assets Non-current assets Property, plant and equipment 13 6,069,785 5,413,262 5,124,120 Goodwill 14 1,532,238 1,588,918 1,607,655 Port concession rights 14 2,904,481 3,115,084 3,223,958 Investment in equity-accounted investees 16 2,700,703 3,348,317 3,451,264 Deferred tax assets 11 4,393 2, Other investments 17 62,923 60,833 73,193 Accounts receivable and prepayments , , , Total non-current assets 13,455,633 13,792,566 13,740, Current assets Inventories 51,717 53,283 54,979 Accounts receivable and prepayments , , ,297 Bank balances and cash 19 2,572,470 1,881,928 4,159,364 Assets held for sale , Total current assets 3,304,881 2,544,633 4,919, Total assets 16,760,514 16,337,199 18,660,010 ======== ======== ======== * Refer to note 3 (f). 5

18 Consolidated statement of financial position (continued) as at 31 December December December January 2012 Notes USD 000 USD 000 USD 000 (Restated *) (Restated *) Equity Share capital 20 1,660,000 1,660,000 1,660,000 Share premium 21 2,472,655 2,472,655 2,472,655 Shareholders reserve 21 2,000,000 2,000,000 2,000,000 Retained earnings 3,408,504 2,968,068 2,408,803 Hedging and other reserves 21 (31,384) (122,229) (104,408) Actuarial reserve 21 (343,269) (379,171) (352,402) Translation reserve 21 (620,706) (482,909) (586,555) Total equity attributable to equity holders of the Company 8,545,800 8,116,414 7,498,093 Non-controlling interests , , , Total equity 9,021,541 8,780,407 8,263, Liabilities Non-current liabilities Deferred tax liabilities , , ,503 Employees' end of service benefits 25 61,740 55,747 49,393 Pension and post-employment benefits , , ,111 Interest bearing loans and borrowings 27 4,776,690 4,049,621 4,563,309 Accounts payable and accruals , , , Total non-current liabilities 6,225,040 5,801,259 6,251, Current liabilities Income tax liabilities , , ,862 Bank overdrafts 19 1, ,017 Pension and post-employment benefits 26 10,068 11,845 12,621 Interest bearing loans and borrowings , ,835 3,178,446 Accounts payable and accruals 28 1,033, , , Total current liabilities 1,513,933 1,755,533 4,145, Total liabilities 7,738,973 7,556,792 10,396, Total equity and liabilities 16,760,514 16,337,199 18,660,010 ======== ======== ======== * Refer to note 3 (f). The accompanying notes 1 to 34 form an integral part of these consolidated financial statements. The consolidated financial statements were authorised for issue on 20 March Mohammed Sharaf Yuvraj Narayan Chief Executive Officer Chief Financial Officer The independent auditors report is set out on pages 1 and 2. 6

19 Consolidated statement of changes in equity for the year ended 31 December 2013 Attributable to equity holders of the Company Share capital Share premium Shareholders reserve Retained earnings Hedging and other reserves Actuarial reserve Translation reserve Total Noncontrolling interests Total equity USD 000 USD 000 USD 000 USD 000 USD 000 USD 000 USD 000 USD 000 USD 000 USD 000 Balance as at 1 January 2013 (Restated *) 1,660,000 2,472,655 2,000,000 2,968,068 (122,229) (379,171) (482,909) 8,116, ,993 8,780, Total comprehensive income for the year Profit for the year , ,636 82, ,788 Total other comprehensive income, net of income tax ,845 35,902 (137,797) (11,050) 9,735 (1,315) Total comprehensive income for the year ,636 90,845 35,902 (137,797) 628,586 91, , Transactions with owners, recorded directly in equity Dividends paid (refer to note 23) (199,200) (199,200) - (199,200) Total transactions with owners (199,200) (199,200) - (199,200) Transactions with non-controlling interests, recorded directly in equity Dividends paid (64,064) (64,064) Derecognition of non-controlling interests on loss of control in Asia Pacific and Indian subcontinent region (216,075) (216,075) Total transactions with non-controlling interests (280,139) (280,139) Balance as at 31 December ,660,000 2,472,655 2,000,000 3,408,504 (31,384) (343,269) (620,706) 8,545, ,741 9,021,541 ======= ======= ======= ======= ====== ====== ====== ======= ====== ======= * Refer to note 3 (f). The accompanying notes 1 to 34 form an integral part of these consolidated financial statements. The independent auditors report is set out on pages 1 and 2. 7

20 Consolidated statement of changes in equity (continued) Attributable to equity holders of the Company Share capital Share premium Shareholders reserve Retained earnings Hedging and other reserves Actuarial reserve Translation reserve Total Noncontrolling interests Total equity USD 000 USD 000 USD 000 USD 000 USD 000 USD 000 USD 000 USD 000 USD 000 USD 000 Balance as at 1 January 2012 (Restated *) 1,660,000 2,472,655 2,000,000 2,367,164 (104,408) (352,402) (586,555) 7,456, ,013 8,221,467 Impact of IAS 19 amendment (refer to note 3(f)) , ,639-41, Balance as at 1 January 2012 (Restated refer to note 3(f)) 1,660,000 2,472,655 2,000,000 2,408,803 (104,408) (352,402) (586,555) 7,498, ,013 8,263,106 ======= ======= ======= ======= ====== ====== ====== ======= ====== ======= Total comprehensive income for the year Profit for the year , ,398 78, ,499 Total other comprehensive income, net of income tax (17,821) (26,769) 103,646 59,056 (90) 58, Total comprehensive income for the year ,398 (17,821) (26,769) 103, ,454 78, , Transactions with owners, recorded directly in equity Dividends paid (refer to note 23) (199,200) (199,200) - (199,200) Total transactions with owners (199,200) (199,200) - (199,200) Changes in ownership interests in subsidiaries Acquisition of non-controlling interests without change in control ** , ,067 (66,457) (46,390) Transactions with non-controlling interests, recorded directly in equity Dividends paid (90,050) (90,050) Derecognition of non-controlling interests on monetisation of investment in subsidiaries (22,524) (22,524) Total transactions with non-controlling interests , ,067 (179,031) (158,964) Balance as at 31 December ,660,000 2,472,655 2,000,000 2,968,068 (122,229) (379,171) (482,909) 8,116, ,993 8,780,407 ======= ======== ======== ======== ====== ====== ======= ======= ====== ======= * Refer to note 3 (f). ** This mainly includes acquisition of remaining 10% interest in a subsidiary in Middle East, Europe and Africa Region for a consideration of USD 46,390 thousand resulting in a gain on acquisition of USD 20,067 thousand. The accompanying notes 1 to 34 form an integral part of these consolidated financial statements. The independent auditors report is set out on pages 1 and 2. 8

21 Consolidated statement of cash flows for the year ended 31 December Notes USD 000 USD 000 (Restated *) Cash flows from operating activities Profit for the year 721, ,499 Adjustments for: Depreciation and amortisation 9 395, ,632 Impairment 9 99,153 49,900 Share of profit from equity-accounted investees (net of tax) (80,061) (154,607) Finance costs , ,602 (Gain)/ loss on sale of property, plant and equipment and port concession rights (6,571) 1,490 Profit on sale and termination of businesses (net of tax) (158,188) (237,204) Finance income 10 (84,493) (75,211) Income tax expense 11 64,458 72, Gross cash flows from operations 1,321,024 1,266,055 Change in inventories 2,110 1,641 Change in accounts receivable and prepayments (88,153) 25,036 Change in accounts payable and accruals 59,033 47,141 Change in provisions, pensions and post-employment benefits 4,674 (33,672) Cash generated from operating activities 1,298,688 1,306,201 Income taxes paid (86,955) (74,856) Net cash from operating activities 1,211,733 1,231, Cash flows from investing activities Additions to property, plant and equipment 13 (1,025,530) (641,934) Additions to port concession rights 14 (37,892) (43,017) Proceeds from disposal of property, plant and equipment and port concession rights 10,103 17,744 Net proceeds from monetisation of investment in subsidiaries and equity-accounted investees 658, ,052 Cash outflow on acquisition of non-controlling interests without change in control - (46,390) Receipt of deferred consideration on disposal of equity-accounted investees 16,140 - Interest received 43,103 77,594 Dividends received from equity-accounted investees 94, ,839 Additional investment in equity-accounted investees (38,256) (15,283) Net loan repaid by/ (advanced to) equity-accounted investees 68,323 (500) Return of capital from equity-accounted investees - 28,244 Return of capital from other investments - 12, Net cash (used in)/ from investing activities (210,801) 22, * Refer to note 3 (f). 9

22 Consolidated statement of cash flows (continued) for the year ended 31 December Notes USD 000 USD 000 (Restated *) Cash flows from financing activities Repayment of interest bearing loans and borrowings (633,090) (3,204,428) Drawdown of interest bearing loans and borrowings 912, ,411 Interest paid (320,947) (292,575) Dividend paid to the owners of the Company (199,200) (199,200) Dividends paid to non-controlling interests (64,064) (90,050) Net cash used in financing activities (304,314) (3,544,842) Net increase/ (decrease) in cash and cash equivalents 696,618 (2,290,920) Cash and cash equivalents as at 1 January 1,881,733 4,158,347 Effect of exchange rate fluctuations on cash held (7,288) 14, Cash and cash equivalents as at 31 December 19 2,571,063 1,881,733 ======= ======= Cash and cash equivalents comprise the following: Bank balances and cash 2,572,470 1,881,928 Bank overdrafts (1,407) (195) Cash and cash equivalents 2,571,063 1,881,733 ======= ======= * Refer to note 3 (f). The accompanying notes 1 to 34 form an integral part of these consolidated financial statements. The independent auditors report is set out on pages 1 and 2. 10

23 Notes to consolidated financial statements (forming part of the financial statements) 1 Reporting entity DP World Limited ( the Company ) was incorporated on 9 August 2006 as a Company Limited by Shares with the Registrar of Companies of the Dubai International Financial Centre ( DIFC ) under the Companies Law, DIFC Law No. 3 of The consolidated financial statements of the Company for the year ended 31 December 2013 comprise the Company and its subsidiaries (collectively referred to as the Group ) and the Group s interests in equity-accounted investees. The Group is engaged in the business of international marine terminal operations and development, logistics and related services. Port & Free Zone World FZE ( the Parent Company ), which originally held 100% of the Company s issued and outstanding share capital, made an initial public offer of 19.55% of its share capital to the public and the Company was listed on the Nasdaq Dubai with effect from 26 November The Company was further admitted to trade on the London Stock Exchange with effect from 1 June Port & Free Zone World FZE is a wholly owned subsidiary of Dubai World Corporation ( the Ultimate Parent Company ). The Company s registered office address is P.O. Box 17000, Dubai, United Arab Emirates. 2 Basis of preparation (a) Statement of compliance These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ( IFRS ). The consolidated financial statements were approved by the Board of Directors on 20 March (b) Basis of measurement The consolidated financial statements have been prepared on the historical cost basis except for derivative financial instruments and available-for-sale financial assets which are measured at fair value. The methods used to measure fair values are discussed further in note 5. (c) Funding and liquidity The Group s business activities, together with factors likely to affect its future development, performance and position are set out in the Chairman s Statement and Operating and Financial Review. In addition, note 6 sets out the Group s objectives, policies and processes for managing the Group s financial risk including capital management and note 30 provides quantitative details of the Group s exposure to credit risk, liquidity risk and interest rate risk from financial instruments. The Board of Directors remain satisfied with the Group s funding and liquidity position. At 31 December 2013, the Group has a net debt of USD 2,463,954 thousand (2012: USD 2,870,723 thousand). The Group s credit facility covenants are currently well within the covenant limits. The Group generated gross cash of USD 1,321,024 thousand (2012: USD 1,266,055 thousand) from operating activities and its interest cover for the year is 5 times (2012: 4.7 times) (calculated using adjusted EBITDA and net finance cost before separately disclosed items). Based on the above, the Board of Directors have concluded that the going concern basis of preparation continues to be appropriate. 11