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DP World London GatewayCapital Markets Day - Update

July 2017

Agenda

Section

1 Introduction & overview

2 UK two-port strategy

3 London Gateway Port update

4 Logistics Park update

5 Positioned for growth

2

DP World London Gateway

Introduction & overview

01

3

DP World Capital Markets Day: DP World London Gateway Update

DP World London Gateway: Established, reaching critical mass

4

London Gateway Port is now proven

• Freehold port, 25 miles fromcentral London

• Deepwater, tri-modal, adjacent toa logistics park

• Reliable, future-proofed infrastructure (semi-automated / automated)

• Scalable, 3 operational berths,readily expanded to 6 homogenousberths


London Gateway Logistics Park is avaluable real-estate asset, positioningLG as a major logistic hub

• 9.25million ft2 developable landunder umbrella planning regime(LDO)

• Port/Park combination enables LGand DPW to further integrate into the supply chain.

5

Why? Proximity to market = supply chain savings


• Hugely complex, including Government negotiations

• Environmental credentials (largest translocation, 74Ha compensation sites etc.)

• Deepwater with 80km dredge / 27m cubic metres

• Offsite connections (road & 25km rail track)

• Delivered on-time & under Budget

How & What: Delivery of complex infrastructure on budget

7

DP World Capital Markets Day - DP World London Gateway Update

March 2010

April 2013

Top left, A13/Manorwayjunction before works, bottom left – after works. Top, Sorrells roundabout

Exceed 2015 FY volume (461k TEU)Aug 2016

Strong Q1: 213k TEU vs 112k TEU in 2015

(+90%)

Closed re-financingMarch / June 2016

CMA FAL 23 Regular Asia-Europe call announced

Oct 2016

Timeline

8

DP World London Gateway Port: Progress & maturity

DPW – UK commences active co-operation Jan 2016

THE Alliance confirms DPW-UK: LG wins 4 new servicesFebruary 2017

THEA commencesApril/May 2017

China Train departs LGApril 2017

July 2017: Updates

2015 volume: 461k TEU66% increase 2016

LGLC: Phase 1 agreed with LIDL; Phase 2 constructionNov/Dec 2016

2016 volume: 708k TEU54% increase 2017


8

DP World in the UK & DP World London Gateway: Key management

• CEO, London Gateway & MD DPW-UK• 34 years in UK port industry• MD DPW Southampton• CEO Hutchison Ports UK (Felixstowe)

• Park Development Director, London Gateway• Over 25 years in international real-estate• MD Redwood Group, China• Senior Operations Director, Prologis

• Finance Director, London Gateway• Over 20 years in Finance, accountancy & port industry

(JP Morgan, PwC, P&O Ports)• London Gateway Board member since 2010

• Head of Technical (Engineering & IT), London Gateway

• Over 25 years experience in port planning, design, supervision & project management

• Lead Technical role at LG since 2006

• Head of Operations, London Gateway• 20 years experience in terminal management• Sealand, CSX World Terminals & DP World• Head of Operations Embraport & Callao


ChrisLewis

Ian Malcolm

OliverTreneman

Luis Turbides

Andrew Bowen

London Gateway Port

London Gateway Logistics Park

Southampton Container Terminal

CNS Community

Network Services

DPW - UK

DP World London Gateway UK two-port strategy

02

9


10

DP World in the UK: Two-port offering and Park Supply Chain Team

Market Access

• Two ports allow alliances to maintain existing markets - grow in new markets

• DP World offer 2 deep water facilities

• Best possible UK coverage for shipping lines and cargo owners

• Aligns with BCO strategy to use 2 ports to minimize risks e.g. weather / congestion

• Extensive logistics facilities available as required

Service Delivery

• Best UK terminals for productivity (Shipside & Landside)

• Shortest road distances to London, South East & Midlands (cost advantage)

• Best inland connections by road and rail

• Spare rail capacity available (including network paths)

• Flexibility & Network resiliency

• Supply Chain expertise able to model supply chain savings


Structural change in alliances: Opportunity for DP World in the UK

11

Ex Felixstowe &

Southampton

Alliance reshaping created an opportunity for DPW UK – which was captured

Future opportunity for DPW-UK


12

DP World in the UK: overall objective

UK market dynamics 1

• UK: 9.9m TEU (2016 est)• 2010–16 CAGR: 3.2%

• SE UK market: 6.8m TEU• 2010–16 CAGR

• DPWS: 4.6%• DPW-UK: 10.0%

• SE-UK capacity utilisation: 69%

• Deep sea capacity utilisation: 75% – 80%

1 Source: DfT/DPW

DPW-UK objectives

1. Market share aligned with capacity

2. Exceed capacity share3. Competitive pricing


20202020

DP World London Gateway Port update

03

13


Berth 3 opened 1st April 2017: Productive, reliable capacity, with excellent landside performance

14

3 x deep water berths – 17m chart datum

12 x QCs; 25 across, each crane 2,000 tons, 138m high

Waterside productivity > 30gmph on ULCS; 130+ BMPH

30 ASC modules (10 per berth)

12 Hybrid shuttles

Truck Turn Time average: < 35 mins

More reliable: LG open99.99% of the time sinceopening November 2013


15

5,378

3,397

1,906

4,486

2,345

2,904

2,288

3,556

3,878

2,269

2,775

3,843

3,392 3,383

4,265

2,558

5,683

2,996

5,676

1,586 1,579 1,648

4,807 4,867

6,552

2,269

1,750

5,077

1,514

5,695

4,740

2,340

1,690

4,438

1,511

2,080

4,558

1,658

4,666 24.4

34.1

26.227.1

25.3

19.4

21.6

24.9

27.9

22.6

29.9

31.9

25.2

20.1

29.8

28.1

28.4

31.4

26.927.1

29.228.0

31.0

27.5

31.1

21.7

32.0

29.3

28.0

29.2

31.4

20.3

23.4

33.8

21.6

31.2 31.7

26.8

34.5

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Total Moves SLA Linear (SLA)

Proven ultra-large container ship performance (vessels >1500 moves)

142 bmph

147 bmph

140 bmph

136 bmph


16

DP World in the UK:CNS Community System – Customs clearance/Electronic trading

UK Customs

CHIEF

Community System

CNS-Compass

Shipping Lines/Agents

FreightForwarders

TrainOperators

SouthamptonPort Systems

London GatewayPort Systems

StatutoryBodies

HauliersPublicEnd Users

PublicEnd Users


17

DP World in the UK: CNS Community System – Customs clearance/Electronic trading Imports example:

1) Manifest subset is sent to terminal when received from the shipping line

2) Customs entries can be submitted prior to vessel arrival

3) Vessel arrival prompts customs processing (95% cleared within 15 mins)

4) Customs clearance or hold/exam message sent to shipping line, forwarder, terminal for each consignmentor container

5) ‘Container landed’ message (COARRI) sent to shipping line in real time

6) ‘Container out-gate’ message (CODECO) sent to shipping line in real time

7) Other holds are sent to line and forwarder as appropriate

8) Rail messaging (train discharge/load lists) sent between rail operator (FreightLiner, DB Cargo) the terminal


DP World in the UK: Supply Chain Visibility

Where’s My Container:

Developed to meet beneficial cargo owner needs (outside the Community System)

- Estimated time of discharge- Customs status (clear / hold / other e.g. Port Health)- Container location (Yard / Rail / Inspection)- Time landed- Time out-gated (Road /Rail)- Restitution leg (time returned / empty / full etc.)- Auto refresh for up to 20 containers

Vehicle Booking System - VBS Premium:

Can handle a list containers (can be imported from Excel)

Interactive system that produces in real time a list of containers that can be booked

e.g. Import Container is customs cleared / released to Haulier Export Container is pre-exec’d into CNS and hence known by Terminal

18


DP World London Gateway Logistics Park update

04

19


20

Significant uplift in land values through value creation

Achieving solid rental value:

• Achieving > £8/ft

• London/SE: £7 to £10

• Midlands: £6.50/ft

• Heathrow: £15/ft

Ancillary/ complementary services to Port

UPS B2B/B2C DC

New ‘Campus’/West Zone development – 100k-200k sq ft

Logistics Centre (Phase One & Two)

Joint venture building with Prologis

HGV transport parking yards

Hireco truck & trailer engineering centre

Maritime Transport HGV yard


Pentalver off-dock container yard

Solent Stevedores off-dock container yard

21

A unique planning regimeLogistics Park covered by alocal development order(LDO)

Granted November 2013

Permitting, subject to a rangeof controls, a total of9.25m ft2 of commercialfloor space

Consent can be granted inless than 28 days

UPS is the first large tenantto benefit – consent grantedin 17 days

316,561 sq. ft.– Ready to occupy. Tenant expected from 1 August

DP World London Gateway Logistics Centre – 185,000 sq.ft letPhase 2 (150,000 sqft) ready for letting

Campus Development – Semi-speculative, 100 –200,000 sq. ft. buildings – 6 month delivery. Currently proceeding to AFL with tenant

Developed warehousing with short lead time on new facilities


22

UPS parcel sorting hub

Largest infrastructure investment outside of the USA. High-tech, parcel sorting and distribution facility. On course for Q3/4 2017 opening

UPS development: opening Q3/Q4 2017


DP World London Gateway Positioned for profitable growth

05

23


24


Global connections:• 16 weekly calls• Connected to 90

ports, 51 countries

• Including:

China

Thailand

Vietnam

Australia

USA

South America

Mediterranean

West Africa

Russia

India

Middle East

The benefits of a two-port strategy & automation: Volume & margins

25

• 2016 saw a significant step-upin EBITDA margins as volumeincreased beyond break-even

• LG’s EBITDA marginscomparatively strong even atrelatively low volume/capacityutilisation (0.7m TEU)

• 2017 sees LG increasing labourforce ahead of AE-drivenvolume increase

• Full year benefit of volume,with minimal labour increasedrives margins in 2018onwards

2018 : visible volume increaseMargin step-up as labour/overheads absorbed

Fixed cost absorption, pricing remains solid


The benefits of a two-port strategy & automation: Pricing & margins

26

✔✔

• 2016 saw some unwind/dilutionof early discounts, plus goodstorage revenue in Q4

• THEA volume was contracted atgood rates in LG & DPWS

• 2018 and onwards is largelycontracted based on long-termcontracts with escalation

• The combination of UKpricing & recovery ofoverheads, plus benefits ofsemi-automation will drivemargins in 2017 onwards.


Margin > 50%

(Indexed)

More than a port: Freehold asset, supply chain solutions & trade enabler

27

Port & Park is unique

Port & Park feed off each

other: Supply Chain Team

& DPW UK Commercial

team reinforce each other

Port is slightly ahead of

Park: now a catalytic effect

Park can push Port to next

level

Critical window: 2016-

2019: the basis and

platform for success


DP World London Gateway In summary

05

28


DP World London Gateway: Established, reaching critical mass

29

DP World London Gateway Port is now a proven product

Clear sustainable advantages over principal competitor:

• Location• Infrastructure & capacity• Reliability• Scalability• Flexibility (with DPWS)

DP World London Gateway Logistics Park becoming firmly established in its market

• The Port/Park combination in SE England will be unique and a market differentiator


Confident of Success

Thank you

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