Abu Dhabi Ports Company (ADPORTS) Investor Day 2025 summary

Strategic direction and business model

• Pursuing an infrastructure-focused strategy with over 60% of EBITDA targeted from ports and economic cities & free zones (EC & FZ), while expanding logistics, maritime, and digital clusters for a synergistic ecosystem.

• International expansion accelerated since 2022, with presence in 38 countries and a focus on Middle East, Red Sea, Europe, Africa, Indian Subcontinent, Central Asia, Southeast Asia, and Latin America.

• Integrated end-to-end solutions across five clusters: Ports, EC & FZ, Maritime & Shipping, Logistics, and Digital, aiming to be a one-stop shop for global trade and supply chain needs.

• Leveraging UAE's Comprehensive Economic Partnership Agreements (CEPAs) to support global growth and trade facilitation.

• Value Capture Program launched in 2023 to drive cost optimization, revenue growth, and capital efficiency through 223 initiatives.

Capital allocation and financial guidance

• CapEx for 2025-26 set at AED 3.5-4.0bn per year, with ~65% allocated to infrastructure (Ports and EC & FZ); major projects include expansions in Egypt, Congo, Pakistan, Angola, and Kazakhstan.

• Medium-term guidance (2024-29): revenue and EBITDA CAGR of 10-15%, PBT CAGR of ~15%, and EBITDA margin to remain within 25-30%.

• On track to become sustainably free cash flow positive, with FCF turning positive in Q3 and Q4 2024; inflection point depends on capex timing and new opportunities.

• Balance sheet remains strong and scalable, with over 90% of assets anchored in the UAE and a Fitch rating upgrade to 'AA-' in March 2024.

• Capital allocation steered by a framework of 7 KPIs, including risk, leverage, liquidity, and excess returns, to ensure optimal risk/reward and portfolio mix.

Cluster performance and growth initiatives

• Khalifa Port container capacity to grow from 7.8m TEUs in 2024 to 11.8m TEUs by 2027, with market share rising from 13% in 2019 to 21% in 2024.

• Inland Container Depots (ICDs) starting with Al Faya in 2025, plus expansion plans for additional ICDs to drive origin & destination volumes.

• Noatum Ports, acquired in 2023, now operates 23 international terminals and targets further expansion via greenfield and brownfield projects.

• KEZAD (EC & FZ) developing dedicated industry hubs (Metal Park, Food & Agtech Park, Global Auto Hub) and hosting over 2,100 clients in 17 sectors.

• Maritime & Shipping cluster built from scratch since 2020, now with 247 vessels and a focus on offshore, tankers, Ro-Ro, and container rejuvenation in 2025.

• Logistics cluster (Noatum Logistics) saw 142% YoY revenue growth in 2024, expanding global reach and product offering, with a customer-led growth strategy.

• Digital cluster supports group-wide digitalization, with 130+ initiatives in 2024-25, and recent acquisitions (TTEK, Dubai Technologies) enhancing trade facilitation and smart mobility solutions.