Q2 2026 Abu Dhabi Ports Co PJSC Earnings Call

August 14, 2026

Speaker #1: Good afternoon, ladies and gentlemen. This is Ahmad Khazim from EFG Hermes Research, and we'd like to welcome you all to today's Q2 2026 results conference call for AD Ports Group.

Ahmed Hazem Maher: Good afternoon, ladies and gentlemen. This is Ahmed Hazem from EFG Hermes Research, and we would like to welcome you all to today's Q2 2026 results conference call for AD Ports Group. With us on the line today is Mr. Martin Aarup, Group CFO, Mr. Ross Thompson, Group Chief Strategy and Growth Officer, and Mr. Marc Hammoud, VP of Investor Relations. First off, congrats on the results amid obviously a very challenging environment in the past few months. Without further delay, I would like to hand over the call to Marc. Marc, the line is yours.

Ahmed Hazem: Good afternoon, ladies and gentlemen. This is Ahmed Hazem from EFG Hermes Research, and we would like to welcome you all to today's Q2 2026 results conference call for AD Ports Group. With us on the line today is Mr. Martin Aarup, Group CFO, Mr. Ross Thompson, Group Chief Strategy and Growth Officer, and Mr. Marc Hammoud, VP of Investor Relations. First off, congrats on the results amid obviously a very challenging environment in the past few months. Without further delay, I would like to hand over the call to Marc. Marc, the line is yours.

Speaker #1: With us on the line today are Mr. Martin Arup, Group CFO; Mr. Ross Thompson, Group Chief Strategy and Growth Officer; and Mr. Marc Hammoud, VP of Investor Relations.

Speaker #1: First off, congratulations on the results, especially considering the very challenging environment over the past few months. Without further delay, I'd like to hand over the call to Marc.

Speaker #1: Marc, the line is yours.

Speaker #2: Good morning, good afternoon, everyone. Thank you, Ahmad, for hosting this call. Thank you, EFG, for hosting this call. And thank you, everyone, for connecting to our Q2 2026 results earnings call.

Marc Hammoud: Good morning, good afternoon, everyone. Thank you, Ahmed, for hosting this call. Thank you, EFG, for hosting this call. Thank you everyone for connecting to our Q2 2026 results earnings call. As usual, I will kick it off, and then I will pass it on to Ross for the strategy part and Martin for the financial part. First, key messages. I think Q2 2026 is a good illustration of the diversification strategy that has built resilience and created business opportunities for us. It was another record quarter amid volatile backdrop. Net profit nearly doubled year-on-year. Focus in the short term will be on integration of M&A and cash generation. Sorry, I think I have the wrong on display. Yes. Here we go. Let me share again. There we go. Can you see my screen? Ahmed, can you confirm?

Speaker #2: As usual, we'll kick it off, and then I'll pass it on to Ross for the strategy part and Martin for the financial part. So, first key messages: I think Q2 2026 is a good illustration of the diversification strategy that has built resilience and created business opportunities for us.

Speaker #2: It was another record quarter, amid a volatile backdrop. Net profit nearly doubled year-on-year, and focus in the short term will be on integration and cash generation—integration of M&A and cash generation. Cash generation, sorry.

Speaker #2: Sorry, I think I have the wrong one on display. Yes, here you go. Let me share again. There we go. Can you see my screen, Ahmad?

Speaker #2: Can you confirm?

Speaker #1: Not yet. It's loading on my end, Marc.

Ahmed Hazem Maher: Not yet. It is loading on my end, Marc.

Ahmed Hazem: Not yet. It is loading on my end, Marc.

Speaker #2: Can you see it now?

Marc Hammoud: Can you see it now?

Ahmed Hazem Maher: Not yet. Yeah, now I can.

Ahmed Hazem: Not yet. Yeah, now I can.

Speaker #1: Not yet. Yeah, now I can.

Speaker #2: Okay. All right. So, I was saying, Q2 highlights: accelerating growth with improved profitability. Revenue was up 47% year-on-year to AED 7.08 billion, all through organic growth. EBITDA increased 49% year-on-year to AED 1.74 billion, with EBITDA margins standing at 24.5%.

Marc Hammoud: Okay. All right. I was saying Q2 highlights, accelerating growth with improved profitability. Revenue were up 47% year-on-year to AED 7.08 billion, all through organic growth. EBITDA increased 49% year-on-year to AED 1.74 billion, with EBITDA margin standing at 24.5%. As I said earlier, total net profit almost doubled, +88% year-on-year to AED 836 million, setting a new record quarterly performance since listing. EPS reached AED 0.12, up 86% year-on-year. As importantly, the growth momentum continued in the month of July. Resilience and opportunities, that's the two keywords I used to start with, in this current context that we've been living through since the month of March. Resilience because our business and geographic diversification, resilience because of our landlord and long-term partnerships business model in Abu Dhabi.

Speaker #2: As I said earlier, total net profit almost doubled, up 88% year-on-year, to 836 million dirhams, setting a new record for quarterly performance since listing. EPS reached 0.12 dirham, up 86% year-on-year, and, as importantly, the growth momentum continued in the month of July.

Speaker #2: Resilience and opportunities: those are the two keywords I started with in this current context that we've been living through since the month of March. Resilience because of our business and geographic diversification; resilience because of our landlord and long-term partnerships business model in Abu Dhabi. Opportunities, because we've been adapting swiftly to the complex, challenging, and dynamic geopolitical and market environment since the beginning of the conflict. The result of that is that we've had limited negative impact on our ports business, and significant positive impact on our maritime and shipping business as well as our logistics business.

Marc Hammoud: Opportunities because we've been adapting swiftly to the complex, challenging, and dynamic geopolitical and market environment since the beginning of the conflict. The result of that is that we've had limited negative impact on our ports business and significant positive impact on our maritime and shipping business, as well as our logistic business. In terms of asset monetization, we concluded one more transaction. We sold a set of warehouses in KEZAD Logistics Park, in Abu Dhabi for AED 650 million. That came with an associated EBITDA of AED 294 million. As I said earlier, the short-term focus will be on completing and integrating the ongoing M&As that have been announced. Those M&A are expected to accelerate growth and strengthen our cash flow story. If we take CLI, ALCN, and MBS Logistics, all based on 2025 numbers, it will impact our revenue.

Speaker #2: In terms of asset monetization, we concluded one more transaction: we sold a set of warehouses in KIZAD Logistics Park in Abu Dhabi for AED 650 million.

Speaker #2: That came with an associated EBITDA of 294 million dirhams. As I said earlier, the short-term focus will be on completing and integrating the ongoing M&As that have been announced. Those M&As are expected to accelerate growth and strengthen our cash flow story.

Speaker #2: If we take CLI, ALCN, and MBS Logistics, all based on 2025 numbers, it will impact our revenue; it will add 10% to our revenue, and 16% to our EBITDA.

Marc Hammoud: It will add 10% to our revenue and 16% to our EBITDA. If we take GFS on Q2 2026 numbers, it would have an impact of 16% on our EPS. If we adjust our bottom line by the warehouse sale and the impairment losses, it would have had a 22% EPS accretion. Continued improvement in the balance sheet. You saw that the net debt to EBITDA improved to 3.7x in Q2 2026, down from 4.1x in Q2 last year and 3.9x in the first quarter of the year. We still enjoy a strong liquidity position of AED 3.636 billion in cash, and we have another AED 5.9 billion of undrawn credit facilities, including an accordion option. No major debt maturity up until 2028.

Speaker #2: And if we take GFS on Q2 2026 numbers, it would have an impact of 16% on our EPS. And if we adjust our bottom line by the warehouse sale and the impairment losses, it would have had a 22% EPS accretion.

Speaker #2: You saw that the net debt to EBITDA improved to 3.7 times in Q2 2026, down from 4.1 times in Q2 last year and 3.9 times in the first quarter of the year.

Speaker #2: We're still enjoying a strong liquidity position of—300, sorry, $3 billion—$3.6 billion in cash, and we have another $5.9 billion of undrawn credit facilities, including an accordion option.

Speaker #2: No major debt maturities until 2028. In terms of guidance, we are maintaining our medium-term growth, profitability, cash flow, and debt leverage guidance based on current visibility, and subject to the evolving regional situation.

Marc Hammoud: In terms of guidance, we are maintaining our medium-term growth, profitability, cash flow, and debt leverage guidance based on current visibility and subject to the evolving regional situation. For those who would be tempted to annualize our H1 CapEx of AED 2.8 billion, we are saying that we will be disciplined in terms of organic CapEx for the rest of the year. On the equity story, obviously, the conflict is dominating the headlines, but the local economy remains in positive territory, and I think the top-down story when it comes to AD Ports Group is also about trade and trade with the external world. We will see, for example, on the slide, highlighting the CEPAs that the UAE continue to push aggressively in terms of CEPAs. Some new CEPAs have been signed, some others have been implemented. So trade continue to be strong. Top-down story continues to be strong.

Speaker #2: For those who would be tempted to annualize our H1 capex of $2.8 billion, we're saying that we will be disciplined in terms of organic capex for the rest of the year.

Speaker #2: On the equity story, obviously the conflict is dominating the headlines. But the local economy remains in positive territory, and I think the top-down story, when it comes to AD Ports Group, is also about trade and trade with the external world.

Speaker #2: We'll see, for example, on the slide highlighting the SEPAs, that the UAE continues to push aggressively in terms of SEPAs. Some new SEPAs have been signed; some others have been implemented.

Speaker #2: So trade continue to be strong. Top line top-down story continues to be strong. The second point on growth, you've seen it, we continue to deliver growth, and it continues to be a combination of the three levers: one, the ramp-up of existing assets; two, the organic capex, the organic growth capex that we've been deploying; and three, selective M&A that we've been also announcing.

Marc Hammoud: The second point on growth, you have seen it. We continue to deliver growth, and it continues to be a combination of the three levers. One, the ramp-up of existing assets, two, the organic CapEx, the organic growth CapEx that we have been deploying, and three, selective M&A that we have been also announcing. Pivoting to free cash flow positive being the third key point in the equity story. As I said, the short-term focus will be on cash flow generation. You saw that in Q2, excluding the acquisition of the 30% stake in GFS, we were free cash flow positive at AED 73 million, and we will continue to focus on cash generation for the rest of the year and in the short term. On the balance sheet front, I have gone through all the points except the fact that we continue to target a 3.5x net leverage in the medium term.

Speaker #2: Pivoting to free cash flow positive, being the third key point in the equity story, as I said, the short-term focus will be on cash flow generation.

Speaker #2: You saw that in Q2, excluding the acquisition of the 30% stake in GFS, we were free cash flow positive at 73 million dirham. We will continue to focus on cash generation for the rest of the year and in the short term.

Speaker #2: On the balance sheet front, I've gone through all the points except the fact that we continue to target a 3.5x net leverage in the medium term.

Speaker #2: No changes in our shareholding structure, and not much change also in terms of institutional investors and foreign institutional investors’ engagement in the equity story, as you can see in Q2.

Marc Hammoud: No changes in our shareholding structure and not much changes also in terms of foreign institution investors engagement in the equity story, as you can see in Q2. All right. So in terms of stock price performance, there has been a little bit of catch up lately. At least year to date, we are close to flat, and we are up 47% since listing. Since 30 June, it continued to rally. The average daily traded value continues to improve at $2.5 million per day. In terms of revenue and EBITDA distribution for the first half, you can see that in terms of EBITDA, which I think is the more relevant metric to look at, it is about 50% for fixed infrastructure assets and 50% for maritime and shipping. Logistics remains a slow contributor. Although, you could notice that versus Q1, we turned back positive in terms of EBITDA contribution.

Speaker #2: All right. So, in terms of stock price performance, there's been a little bit of catch-up lately. At least year to date, we're close to flat.

Speaker #2: And we're up 47% since listing. And since the 30th of June, it continued to rally. The average daily traded value continues to improve at $2.5 million per day.

Speaker #2: In terms of revenue and EBITDA distribution for the first half, you can see that, in terms of EBITDA—which I think is the more relevant metric to look at—it’s about 50/50%: 50% for fixed infrastructure assets and 50% for maritime and shipping. Logistics remains a slow contributor, although you could notice that, versus Q1, we turned back positive in terms of EBITDA contribution.

Speaker #2: More or less the same picture in terms of total assets and capex distribution, dominated by ports economic cities and maritime and shipping. Global map, and global presence, the key notable difference with the previous map is the addition of two terminals in Brazil with the acquisition of CLI.

Marc Hammoud: More or less the same picture in terms of total assets and CapEx distribution dominated by port economic cities and maritime and shipping. Global map and global presence. The key notable difference with the previous map is the addition of two terminals in Brazil with the acquisition of CLI, one in Santos, one in Itaqui. That takes the number of terminals to 40. The rest is an update on mostly the routes for the maritime and shipping, feeder shipping services and ro-ro shipping services. Scale. Despite the current environment, we continue to invest in CapEx. We continue to invest in M&A, which helps us scale up our operations, whether it is capacity or volumes. You continue to see those numbers increasing by the quarter. I will end up here, and I will pass it on to Ross.

Speaker #2: One in Santos, one in Itaki—that takes the number of terminals to 40. The rest is an update on mostly the routes for the maritime and shipping feeder shipping services and rover shipping services.

Speaker #2: Scale. Despite the current environment, we continue to invest in capex. We continue to invest in M&A, which helps us scale up our operations. Whether it's capacity or volumes, you continue to see those numbers increasing quarter by quarter.

Speaker #2: And I will end it here. I'll pass it on to Ross.

Speaker #1: Thank you, Mark. Good afternoon, everyone. Next slide, please. Okay, I think everybody is well aware that the crisis continues, and unfortunately, we don't see anything changing in the immediate term.

Ross Thompson: Thank you, Marc. Good afternoon, everyone. Next slide, please. Okay. I think everybody is well aware that the crisis continues and unfortunately, we don't see anything changing in the immediate term. I think what the company has focused extremely well on as part of the UAE's response is to build alternative multi-mode transport corridors. The entry points into the Gulf, entry and exit points, sorry, have changed significantly from inner Gulf countries. The modality is the big entry and exit points so far are Khor Fakkan and Fujairah Port, and obviously that we're running Fujairah Port. We've bonded transit straight through from Fujairah Port or Khor Fakkan straight through to either Jebel Ali in Dubai and Khalifa Port as if it were a bill of lading that was destined for those ports as is. That's on the container side.

Speaker #1: I think what the company has focused extremely well on, as part of the UAE's response, is to build alternative multimode transport corridors. So, the entry points into the Gulf—entry and exit points, sorry—have changed significantly from inner Gulf countries.

Speaker #1: And the modality is, the big entry and exit points so far are Khor Fakkan and Fujairah Port. And obviously, we're running Fujairah Port. We're bonded transit, straight through from Fujairah Port or Khor Fakkan straight through to either Jebel Ali in Dubai and Khalifa Port, as if it were a bill of lading that was destined for those ports as is.

Speaker #1: That's on the container side. On the bulk side, we're discharging in Fujairah and transiting. We have storage silos there for grains and bulk products.

Ross Thompson: On the bulk side, we're discharging in Fujairah and transiting. We have storage silos there for grains and bulk products. We're using trucking and both rail to transport cross-country. Rail has been a significant piece of the response. We are currently running six trains a day between Fujairah and Khalifa Port for cargo that comes directly into Fujairah straight on the train, is transited straight through, and it arrives at the terminals in Khalifa Port as if it were destined for that. That's really been the big response. I think also that we've used our hubs outside the Gulf extremely well. Karachi, Safaga, now that it's starting its operations, are taking vessels from the Far East, dumping cargo in our ports and our own network of feeders through GFS or even the line feeders, they're collecting cargo and then bringing it either to Fujairah or elsewhere.

Speaker #1: And we're using both trucking and rail to transport cross-country. Rail has been a significant piece of the response, where we are currently running six trains a day between Fujairah and Khalifa Port.

Speaker #1: For cargo that comes directly into Fujairah straight on the train, it's transferred straight through, and it arrives at the terminals in Khalifa Port as if it were destined for that.

Speaker #1: And that's really been the big response. I think also that we've used our hubs outside the Gulf extremely well—Karachi, Safagan, now that it's starting its operations—are taking vessels from the Far East, dumping cargo in our ports.

Speaker #1: And our own network of feeders, through GFS or even the lines' feeders, are there collecting cargo and then bringing it either to Fujairah or elsewhere.

Speaker #1: So, the response has been consistent. We have capacity, although we do have waiting times at our ports of four to five days, which wasn't there pre-conflict.

Ross Thompson: The response has been consistent. We have capacity, although we do have waiting times at our ports of four to five days, which wasn't there pre-conflict. We are seeing volumes picking up. During the crisis, actually volumes into the Gulf dropped around 80%. We are seeing in the last two months, volumes returning in that trade, not quite back to where they were, but I would say they've recovered right around about 30% of where they were, and that continues to rise month on month, which shows the rebound of the economy inside the Strait of Hormuz, and is good for us because that promotes volumes going forward. We've also explored other mechanisms where we're actually using Sohar into Abu Dhabi, Oman into Abu Dhabi, both by truck and by rail.

Speaker #1: We are seeing volumes picking up. So, during the crisis, volumes into the Gulf actually dropped around 80%. We are now seeing, in the last two months, volumes returning in that trade.

Speaker #1: Not quite back to where they were, but I would say they've recovered around 30% of where they were. And that continues to rise month on month, which shows the rebound of the economy inside the Straits of Hormuz.

Speaker #1: And it's good for us because that promotes volume going forward. So we've also explored other mechanisms, where we're actually using Sohar into Abu Dhabi—so Oman into Abu Dhabi—both by truck and by rail.

Speaker #1: And as I said, we're using larger relay ports outside the Gulf to ease capacity constraints, particularly in Khor Fakkan and Fujairah, with the bigger vessels.

Ross Thompson: As I said, we're using larger relay ports outside the Gulf to ease capacity constraints, particularly in Khor Fakkan and Fujairah with the bigger vessels. So far we are coping and we are providing enough capacity to meet market demand on a consistent basis. Next slide, Marc, please. Yeah, a busy quarter in Q2 for some major acquisitions. I think the largest being CLI, which we acquired. It's the largest agri-bulk operator in Brazil. It's a white label terminal, which is perfect for us. Has long-term contracts with all the major market producers, Cargill, ADM, Bunge, names that LDC which is a sister company of ours. We share a common shareholder. It gives us a platform where it is the number one exporter of grains, number two in soybeans, and number three, coffee, sugars, and corn.

Speaker #1: So far, we are coping, and we are providing enough capacity to meet market demand on a consistent basis. Next slide, Mark, please. Yeah, a busy quarter in Q2 for some major acquisitions.

Speaker #1: I think the largest being CLI, which we acquired. It's the largest agri-bulk operator in Brazil. It's a white-label terminal, which is perfect for us.

Speaker #1: Has long-term contracts with all the major market producers—Cargill, ADM, Bunge—names that the LDC, which is a sister company of ours, we share a common shareholder.

Speaker #1: It is. It gives us a platform where it is the number one exporter of grains, number two in soybeans, and number three in coffee, sugar, and corn.

Speaker #1: And it is a significant platform that controls a lot of the volume that's moving from Brazil into parts of Africa, into the Middle East, and also into China.

Ross Thompson: It is a significant platform that controls a lot of the volume that is moving from Brazil into parts of Africa, into the Middle East, and also into China. Next slide, please. We have acquired two ports as part of this agreement, Itaqui port in the north and Santos port in the south, Santos being the much larger port. Currently, the two terminals are doing just over 17.2 million tons or almost 17.5 million tons. Current revenues are $173 million and EBITDA around $101 million. It is a very, very high margin business. It is a business where the growth of export volume in Brazil is outstripping supply chain capacity, supply from the growers to ports and port capacity. We know the growth from the market will be significant and therefore for many years. This company is undertaking a capacity increase up to 20 million tons.

Speaker #1: Next slide, please. So we've acquired two ports as part of this agreement: Itaki Port in the north, and Santos Port in the south—Santos being the much larger port.

Speaker #1: Currently, the two terminals are doing just over 17.2 million tons, or almost 17.5 million tons. Our current revenues are $173 million, and EBITDA is around $101 million.

Speaker #1: It's a very, very high-margin business. It's a business where the growth of export volume in Brazil is outstripping supply chain capacity—supply from the growers to ports, and port capacity.

Speaker #1: So we know the growth from the market will be significant and, therefore, for many years. This company is undertaking a capacity increase up to 20 million tons.

Speaker #1: We already have significant discussions and interest to take the full expansion capacity on contracted business. These are long-term contract businesses, high-margin, export markets to the Middle East, Far East, and Asia.

Ross Thompson: We already have significant discussions and interest to take the full expansion capacity on contracted business. These are long-term contract business, high margin export market to Middle East, Far East, and Asia. It opens up new trade routes for AD Ports Group. We hope to do the shipping for some of the customers out of this terminal through our maritime business. We are in discussions with processors to potentially start processing in Khalifa Port, particularly in soya and wheat, to add manufacturing here and then to link Brazil directly with the Middle East. That has never been done before in bulk in this size and scale and volumes. I think 80% of all the sugar that the UAE imports comes from Brazil, and this is the major terminal of sugar export for that.

Speaker #1: It opens up new trade routes for the Abu Dhabi Group and Abu Dhabi Ports Group. We hope to handle the shipping for some of the customers out of this terminal through our maritime business.

Speaker #1: We're in discussions with processors to potentially start processing in Khalifa Port, particularly in soya and wheat, to add manufacturing here, and then to link Brazil directly with the Middle East.

Speaker #1: It's never been done before in bulk at this size, scale, and volume. I think 80% of all the sugar that the UAE imports comes from Brazil.

Speaker #1: And this is the major terminal of sugar export for that. So a huge opportunity for the group not only to enter the agri-bulk sector in a big way, from origin for the exporters, but a huge upselling and value creation acquisition for us that will span across our maritime network, our logistics provision, but also our infrastructure business in the Middle East.

Ross Thompson: A huge opportunity for the group not only to enter the agri-bulks sector in a big way from origin to the exporters, but a huge upselling and up-value creation acquisition for us that will span across our maritime network, our logistics provision, but also our infrastructure business in the Middle East. Very excited about this. Very well received in the market. Huge interest from the customers to work with us, not just here, but open up conversations about them wanting to work with us in other parts of the world. We see agri-bulk and particularly the food sector, as one of the core markets that will grow over the next decade, and one that is particularly important to nations and governments around the world to secure raw product, raw agri-bulk for processing closer to home, which is a knock-on effect of both COVID and now the conflict.

Speaker #1: So very excited about this very well received in the market. Huge interest from the customers to work with us. Not just here, but open up conversations about them wanting to work with us in other parts of the world.

Speaker #1: And we see agri-bulk, and particularly the food sector, as one of the core markets that will grow over the next decade, and one that's particularly important to nations and governments around the world to secure raw product.

Speaker #1: Raw agri-bulk for processing closer to home, which is a knock-on effect of both COVID and now the conflict. So I'm super, super happy we're in regulatory approval.

Ross Thompson: I am super happy. We are in regulatory approval. We hope to close that in the next four weeks and then close financially and have October, November, December as part of the company's P&L. Next slide, Marc, please. Keep going. We have covered this. Yeah, keep going. We covered the transaction. Projects update. Again, I think, the largest was CLI in Brazil, something that the company has worked on for some time. It is part of the strategy. Our strategy has always been to build global networks, and particularly through enter supply chains and move down the value proposition in five core sectors, agri-bulks being one of those. Containers is another sector that is important to us. Energy, chemicals, and automotive. These are the five core sectors, and the five core pillars that the company has built its near-term strategy on, developing the supply chains for that.

Speaker #1: We hope to close that in the next four weeks and then close financially, so that October, November, and December are included as part of the company's P&L.

Speaker #1: Next slide, Mark, please. Keep going. We've covered this. Yeah, keep going. We covered the transaction. Yeah, projects update. Again, I think Brazil is something that the company's worked on for some time.

Speaker #1: It is part of the strategy. I mean, our strategy has always been to build global networks and particularly to enter supply chains and move down the value proposition in five core sectors: agri-bulk being one of those, containers is another sector that's important to us, energy, chemicals, and automotive.

Speaker #1: These are the five core sectors and the five core pillars that the company has built its near-term strategy on, developing the supply chains for that.

Speaker #1: And these impact all of our five clusters. They participate in all of that. Around 60% of the group’s revenue comes from those five sectors today.

Ross Thompson: These impact all of our five clusters. They participate in all of that. Around 60% of the group revenues comes from those five sectors today. We expect to see significant growth going forward and more service provision to our global customers on that basis. As we discussed at Q2, acquisition of CLI. We also made, we call it small, but it's still EUR 70 million acquisition of MBS Logistics in Germany. This really fills a geographic gap for our logistics business. It gives us a strong presence in Germany, which is the largest market in Europe, which was missing from the group, who has strong presence outside of Europe.

Speaker #1: And we expect to see significant growth going forward and more service provision to our global customers on that basis. But as we've discussed, in Q2, the acquisition of CLI, we also made—well, we call it small, but it's still a €70 million acquisition—of MBS Logistics in Germany.

Speaker #1: This really fills a geographic gap for our logistics business. It gives us a strong presence in Germany, which is the largest market in Europe—one that was missing from the group, which has a strong presence outside of Europe.

Speaker #1: But it also gave us access to Frankfurt as one of the major air cargo hubs in Europe, if not the major air cargo hub, and gave us the customer contacts and also ongoing revenue within the air cargo sector, particularly coming through Frankfurt.

Ross Thompson: It also gave us access to Frankfurt as one of the major air cargo hubs in Europe, if not the major air cargo hub, and gave us the customer contacts, and also ongoing revenues within the air cargo sector, particularly coming through Frankfurt. This is a bolt-on acquisition, but stamps our flag in the ground, completes a little bit some of our missing geographies, and also creates hubs for us in certain sectors. We also, as part of the original agreement, but also as part of our resilience program during the conflict, we completed a 30% acquisition of additional shares of GFS. We previous owned 51% of the company, and now 30%, taking us up to 81% ownership. This was critical to the group's response to the conflict. GFS is under our ownership. It's a super majority.

Speaker #1: So this is a bolt-on acquisition, but STAMPs are flagged in the grant. It completes some of our missing geographies and also creates hubs for us in certain sectors.

Speaker #1: We also, as part of the original agreement, but also as part of our resilience program during the conflict, completed a 30% acquisition of additional shares of GFS. We previously owned 51% of the company, and now, with this additional 30%, that takes us up to 81% ownership.

Speaker #1: This was critical to the group's response to the conflict. GFS is under our ownership. It's a supermajority. It means that we have greater control over the network, greater control over the operations. It's important to us that the majority of our fleet is owned.

Ross Thompson: It means that we have greater control over the network, greater control over the operations. It's important to us that the majority of our fleet is owned, and that allows us freedom of where we ship in times of crisis and how we respond and how fast we can respond without having to seek permissions from different vessel owners through charter agreements. So, a really strategic focus for us. As you know, I think the shipping rates have justified our purchase of GFS, relatively speaking, since 2020, 2022, 2023, since COVID. It just gives the group a greater degree of control over its strategic core assets. We had the soft launch through Noatum Ports of Safaga Terminal. This has been well-received, particularly because of the crisis. We have had calls so far, a number of calls from different shipping lines.

Speaker #1: And that allows us freedom of where we ship in times of crisis, and how we respond and how fast we can respond, without having to seek permissions from different vessel owners through charter agreements.

Speaker #1: So, a really strategic focus for us. And as you know, I think the shipping rates have justified our purchase of GFS, relatively speaking, since 2020, 2022, 2023, since COVID.

Speaker #1: And it just gives the group a greater degree of control over its strategic core assets. We had the soft launch through Nawatan Ports of the Safaga Terminal.

Speaker #1: This has been well received, particularly because of the crisis. We have had a number of calls so far from different shipping lines.

Speaker #1: We're still testing out the equipment, so that's why it's called a soft launch. We're not at operating capacity yet; we're not at operating speeds yet.

Ross Thompson: We're still testing out the equipment, so that's why it's called a soft launch. We're not at operating capacity yet. We're not at operating speeds yet. This is for us to fine-tune equipment and software and process ahead of our intended operational start date. But very exciting and certainly on track with the business plan that we put in. What we will be doing is offering Safaga as a relay point for larger ships. I talked about that we have four to five-day waiting times into the two ports in the UAE as volumes pick up. What we can do is offer Karachi and Safaga as a relay port for some ships, the larger ships that run on Asia, Europe. Drop your cargo here and we will take them on feeder vessels into the UAE through Fujairah and a combination of Fujairah and rail. Next slide, please.

Speaker #1: This is for us to fine-tune equipment, software, and processes ahead of our intended operational start date. But it's very exciting and certainly on track with the business plan that we put in place.

Speaker #1: What we will be doing is offering Safaga as a relay point for larger ships. I talked about the four- to five-day waiting times into the two ports in the UAE as volumes pick up.

Speaker #1: What we can do is offer Karachi and Safaga as relay ports for some ships. The larger ships that run on the Asia-Europe route can drop your cargo here, and we will take them on feeder vessels into the UAE through Fujairah, along with the accommodation of Fujairah and Rail.

Speaker #1: Next slide, please. Yeah, we continue—and this is a vein of thought that we've talked about many times—but we continue to recycle capital through asset monetization, to reinvest in our core business, to reinvest in core assets, to bring those to market, to lease them, and then to recycle that capital into developing out more.

Ross Thompson: Yeah, we continue, and this is a vein of thread that we have talked about many times, but we continue to recycle capital through asset monetization to reinvest in our core business, to reinvest in assets, core assets, to bring those to market, to lease them, and then to recycle that capital into developing out more. This enables us to fast track our KEZAD development. We have been leasing out traditionally about 3 square kilometers a year. We have over 400 square kilometers. At times, we have leased 5 square kilometers. This allows us also to bring in the private sector and develop in conjunction with the private sector to greatly speed up the development of the 400 square kilometers and really make significant steps in the amount of land that we are developing in any given year, whilst not stretching the balance sheet of the company.

Speaker #1: This enables us to fast-track our Keys Ed development. We've been leasing out, traditionally, about three square kilometers a year. We have over 400 square kilometers.

Speaker #1: At times, we've released five square kilometers. This also allows us to bring in the private sector and develop in conjunction with the private sector, to greatly speed up the development of the 400 square kilometers.

Speaker #1: And really make significant steps in the amount of land that we're developing in any given year, while not stretching the balance sheet of the company.

Speaker #1: So, the two well-publicized transactions that we've done with the private sector: one was with Mirror Development for 4.6 square kilometers for $2.47 billion, and [one with] Danube for one square kilometer at $840 million.

Ross Thompson: The two well-publicized transactions that we have done with the private sector, one was with Mira Developments for 4.6 square kilometers for AED 2.47 billion and Danube Group for 1 square kilometer at AED 840 million. This is developed to what we call the town center. So it is retail, it is housing, it is villas. This all supports the ecosystem of developing industrial land of the size of 550 square kilometers that AD Ports Group currently controls. Our warehouse sales continue. Mixed ownership model for built-up assets. Again, this has been highly demanded. We have completed three transactions so far. Two with Aldar Properties. One was for AED 570 million and AED 650 million. One was with the Maersk group for AED 295 million. All of these were done through a process run in conjunction with Knight Frank. So there is large demand from the market for these types of transactions. We feel the value is exceptional.

Speaker #1: This is developed as what we call the town center. So, it's retail, it's housing, it's villas. This all supports the ecosystem of developing industrial land of the size of 550 square kilometers that Abu Dhabi Ports Group currently controls.

Speaker #1: Our warehouse sales continue mixed-own model for build-up assets. Again, this has been highly demanded. We've completed three transactions so far, two without our one was for 570 million and 650 million, one was with the Mayor Group for 295.

Ross Thompson: Our warehouse sales continue. Mixed ownership model for built-up assets. Again, this has been highly demanded. We have completed three transactions so far. Two with Aldar Properties. One was for AED 570 million and AED 650 million. One was with the Maersk group for AED 295 million. All of these were done through a process run in conjunction with Knight Frank. So there is large demand from the market for these types of transactions. We feel the value is exceptional.

Speaker #1: All of these were done through a process run in conjunction with Knight Frank. So there's large demand from the market for these types of transactions.

Speaker #1: We feel the value is exceptional, and we're very happy with the results of the three transactions that we've done. Regarding non-core financial holdings, again, the group looks to divest any non-core minority investments or shares that it held.

Ross Thompson: We are very happy with the results of the three transactions that we have done. Non-core financial holdings. Again, the group looks to divest any non-core minority investments or shares that it held. I think the one that we have very well publicized is that we sold the 9.8% or 9.77% stake in NMDC for around AED 1.6 billion. All of this capital stays within the company to reinvest in future growth. Next slide, please. Yeah. Again, the M&A we have kind of been through, but as it transpires, I think we have always talked about the group does not plan to take on four in a certain quarter. It works very hard over a long period of time on these transactions.

Speaker #1: I think the one that we've very well publicized is that we sold the 9.8%—or 9.77%—stake in NMDC for around $1.6 billion. And all of this capital stays within the company to reinvest in future growth.

Speaker #1: Next slide, please. Yeah, again, the M&A we’ve kind of been through, but as it transpires, I think we’ve always talked about the group not planning to take on four in a certain quarter.

Speaker #1: It works very hard over a long period of time on these transactions. And because of the nature of the market, what we're going after, and also the changing macro environment and our response to the our response to the conflicts, because we're exposed not just to the conflict here, but we're also exposed to the conflict in the Black Sea.

Ross Thompson: Because of the nature of the market, what we are going after, and also the changing macro environment and our response to the conflicts, because we are exposed not just to the conflict here, but we are also exposed to the conflict in the Black Sea. Our response, they come when they come. So four came relatively quickly. But I think the Global Feeder one, we had an option, and it was an option to take the 30% stake at the original valuation. It is an implied EV/EBITDA of 3.7. The group felt that it was, for GFS was fundamental to the group's strategy going forward, but fundamental to our ability to respond to changing macro environments, conflicts, changing trade patterns. It was imperative for us to exercise that option and take more control of that group.

Speaker #1: Our responses—they come when they come. So, four came relatively quickly. But I think that global feeder one was, we had an option, and it was an option to take the 30% stake at the original valuation.

Speaker #1: It's an implied EV/EBITDA of 3.7. The group felt that GFS was fundamental to the group's strategy going forward, but also fundamental to our ability to respond to changing macro environments, conflicts, and changing trade patterns.

Speaker #1: And it was imperative for us to exercise that option and take more control of that group, but extremely good value for the group as well.

Ross Thompson: But extremely good value for the group as well, and very happy to have an 80% control of that asset going forward. Our plan is to add ships into that network. GFS is the underpinning service provider who links our port network. That will continue as our ports ramp up, our greenfields come on stream. It will also continue as and when we add new ports to our portfolio. CNI, we have talked about implied 8.3x transaction. We think significant value, the growth potential, the high EBITDA margin business, the long-term contracted business, the nature of this business, the importance of the product. We think this is great value and a leadership in the global key export market, and we have leadership position, and that is extremely important to us. We are very happy with the management team that we have inherited.

Speaker #1: And we're very happy to have an 80% control of that asset going forward. Our plan is to add ships into that network. GFS is the underpinning service provider who links our port network.

Speaker #1: And that will continue as our ports ramp up, our greenfields come on stream. But it will also continue as and when we add new ports to our portfolio.

Speaker #1: CLI, we've talked about the implied 8.3x transaction. We think there's significant value, the growth potential, the high EBITDA margin business, the long-term contracted business, the nature of this business, the importance of the product—we think this is great value and a leadership position in the key global export market.

Speaker #1: And we have leadership position. And that has extremely important to us. We're very, very happy with the management team that we've inherited. We're working very closely with them or we will be working very closely with them in integrating that business once we receive regulatory approval.

Ross Thompson: We are working very closely with them, or we will be working very closely with them in integrating that business once we receive regulatory approval. MBS at 10.5x, although it is a smaller transaction, therefore, the multiples do not necessarily equate. If you look at the values that have been given across the logistics piece, particularly in Western markets, in Europe, in North America, again, we think that there is value in this deal. Lastly, we are still involved in the MTO to acquire the remaining shares, the Lunate shares, and the minority shareholders of Alexandria Container Terminal. Again, this is a significant terminal. It is all gateway cargo. It gives us a hub and a very good structured port, high margin port in the Mediterranean side of Egypt. We can structure our feeder network around the Mediterranean off of Alexandria.

Speaker #1: MBS, 10 and a half times, although it's a smaller transaction, therefore the multiples don't necessarily equate. But if you look at if you look at the values that have been given across the logistics piece, particularly in Western markets, in Europe, in North America, again, we think that there is value in this deal.

Speaker #1: And lastly, we're still involved in the MTO to acquire the remaining shares—the Lunate shares and those held by minority shareholders of Alexandria Container Terminal. Again, this is a significant terminal.

Speaker #1: It's all gateway cargo. It gives us a hub and a very well-structured, high-margin port on the Mediterranean side of Egypt. We can structure our feeder network around the Mediterranean, off of Alexandria. We're starting to see great synergies and potential in the group for agribulk, for containers, and for automotive in particular.

Ross Thompson: We are starting to see great synergies, the potential in the group for agri bulk, for containers, and for automotive in particular. Next slide, please. Just a piece on the Warrington ports and the growth of ports, adding what I have just explained. As you see now, Brazil, with two terminals, our West Africa footprint, Angola, Congo, Brazzaville, and Douala in Cameroon, our North African footprint with four terminals in Egypt, or that would also now include Alexandria. East Africa with Tanzania, and our GCC and Central Asian ports. Kazakhstan is our grain terminal. Pakistan, we have the general cargo and also the container terminal there. Syria, the closing of our stake in Latakia, our 20% stake with our partner CMA. Jordan, the general cargo terminal, and obviously our 12 bulk terminals and general cargo terminals, and automotive terminal that we hold in spade.

Speaker #1: Next slide, please. Yeah, just a piece on the Wharton ports and the growth of ports. Adding what I've just explained, but as you see now, Brazil, with two terminals, our West Africa footprint, Angola, Congo, Brazzaville, and Douala in Cameroon are North African footprint with four terminals in Egypt, or that would also now include Alexandria.

Speaker #1: East Africa with Tanzania, and our GCC and Central Asian ports. Kazakhstan is our grain terminal. In Pakistan, we have the general cargo and also the container terminal there.

Speaker #1: Syria, the closing of our stake in Latakia—our 20% stake with our partner CMA. Jordan, the general cargo terminal. And obviously, our 12 bulk terminals, general cargo terminals, and automotive terminal that we hold in Spain.

Speaker #1: So, a growing footprint between East and West. I would ideally like to see us add to this portfolio in the future, when the right opportunities come up.

Ross Thompson: So a growing footprint between East and West. I would ideally myself like to see us add to this portfolio in the future when the right opportunities come up. We are completely focused on our greenfields, which are colored green here, bringing them to market, making sure they are ahead of the business case, making sure that we deliver them on time, making sure that the contractual side with our partners and our shipping lines mean that we are set for long-term growth. At the moment, we have no concerns. We are doing very well. We have highly demanded terminals. In fact, I think Congo, Brazzaville, and also Angola, we could have sold two or three times the capacity that is available. We will be looking to address that in the future. But the market demand for West African terminals has been exceptionally strong. Next slide, please. We have been through the details.

Speaker #1: We are completely focused on our greenfields—which are colored green here—bringing them to market, making sure they're ahead of the business case, making sure that we deliver them on time, and making sure that the contractual side with our partners and our shipping lines means that we're set for long-term growth.

Speaker #1: At the moment, we have no concerns. We're doing very, very well. We have highly demanded terminals. In fact, I think Congo, Brazzaville, and also Angola, we could have sold two or three times two or three times the capacity that's available.

Speaker #1: And we'll be looking to address that in the future. But the market demand for West Africa terminals has been exceptionally strong. Exceptionally strong. Next slide, please.

Speaker #1: Yeah, we've been through the detail. Thanks, Mark. Next slide. Yeah, I think Mike touched on this. It's also important, if you overlay the footprint of our ports and also our maritime network against where these CEPA agreements are being signed by the UAE government with its trading partners, there's no surprise that there's a huge overlap, right?

Ross Thompson: Thanks, Mike. Next slide. I think Mike touched on this. It is also important if you overlay the footprint of our ports and also our maritime network against where these CEPAs are being signed by the UAE government with its trading partners, there is no surprise that there is a huge overlap, right? That is part of the group's strategy, but we really invest to enable those CEPAs to really fulfill the increased volume in trade. So one, we are an enabler, but two, we are a beneficiary. So we tend to invest in the supply chain where trade is expected to grow. Trade grows where there is joint investment, and trade grows where there are free trade agreements. So the UAE is expanding rapidly, and we are a net beneficiary, but we are also the enablement of that. We will continue to invest.

Speaker #1: And that's part of the group's strategy, that we really invest to enable those seapers to really fulfill the increased volume in trade. So one, we're an enabler.

Speaker #1: But two, we're a beneficiary. So we tend to invest in the supply chain where trade is expected to grow, and trade grows where there's joint investment.

Speaker #1: And trade grows where there are free trade agreements. So the UAE is expanding rapidly, and we are a net beneficiary, but we're also enabling that.

Speaker #1: And we will continue to invest largely. We have really good multinational partners in the bulk—Louis Dreyfus; in the containers, the major shipping lines—for the major shipping lines.

Ross Thompson: Largely, we have really good multinational partners in the bulk, Louis Dreyfus, in the containers, the major shipping lines for the major shipping lines, in the fertilizers, in the iron ore, in the energy markets. We have big blue chip customers that are expanding along these lines and asking us to provide greater and greater service to them on a global basis. It is a strategy of the company to do that, to really work significantly with our customers in detail about their growth plans and how we can provide services with offtakes and long-term agreements through them to enable their business in line with the geographic footprint that we see as priority. This is what has really driven the profitability of the company over the last 2 to 3 years. It is also what has kept our customers close to us when things have changed.

Speaker #1: In the fertilizers, in the iron ore, in the energy markets, we have big blue-chip customers that are expanding along these lines and asking us to provide greater and greater service to them on a global basis.

Speaker #1: And it's a strategy of the company to do that—to really work significantly with our customers, in detail, about their growth plans and how we can provide services with off-takes and long-term agreements through them to enable their business, in line with the geographic footprint that we see as a priority.

Speaker #1: And this is what has really driven the profitability of the company over the last two to three years. It's also what has kept our customers close to us when things have changed—conflict, changing trade patterns—and asking us to provide the solutions rather than seeking them from the market.

Ross Thompson: Changing trade patterns and asking us to provide the solutions rather than seeking it from the market. So this proximity to customers cannot be underestimated. We have a significant strategic account management program that pulls all the parts of the group together. We are seeing significant growth through our top 50 customers. In fact, our top 20 customers are giving a natural CAGR of around 30% year on year. We aim to increase that significantly in the purchases that we make. CLI will enable that even further for us, so our CAGR with major customers in the bulk products will grow. But our proximity to customers, our proximity to the UAE's trading partners, this is what drives profitability of our business on a sustainable long-term basis. Next slide, please, Marc. I think we covered this. New land leases.

Speaker #1: So, this proximity to customers cannot be underestimated. We have a significant strategic account management program that pulls all the parts of the group together.

Speaker #1: We are seeing significant growth through our top 50 customers. In fact, our top 20 customers are generating organic cargo growth of around 30% year-on-year.

Speaker #1: And we aim to increase that significantly in the purchases that we make. CLI will enable that even further for us, so our cargo with major customers in the bulk products will grow.

Speaker #1: But our proximity to customers, our proximity to the UAE's trading partners—this is what drives the profitability of our business on a sustainable, long-term basis.

Speaker #1: Next slide, please, Mike. Yeah, I think we covered these. Yeah, new land leases—you would expect that with the conflict, it's been a difficult period for our economic zones.

Ross Thompson: You would expect that with the conflict, it has been a difficult period for our economic zones. It has actually been surprisingly enough, it has actually been on the contrary. We still have strong demand for investors to invest, and announce new projects. That really demonstrates, I think, the confidence that the global market has in the UAE, and AD Ports Group being part of that, and the UAE, and the UAE's ability as an economy to sustain and respond, and really to bounce back. I think one of the testaments of that is, in all of our economic zones, we have not had cancellations during this period to date. That is a testament to most of our industrial base is happy to ride out the storm, and believes that the market will rebound significantly, as do we, as this conflict abates, and inshallah that is something that will happen soon.

Speaker #1: It's actually been, surprisingly enough, quite the opposite. We still have strong demand from investors to invest and announce new projects. That really demonstrates, I think, the confidence that the global market has in the UAE.

Speaker #1: And Abu Dhabi Ports being part of that, but in the UAE, and the UAE's ability as an economy to sustain and respond, and really to bounce back.

Speaker #1: And I think one of the testaments to that is, in all of our economic zones, we have not had cancellations during this period to date.

Speaker #1: And that's a testament to most of our industrial base being happy to ride out the storm and believing that the market will rebound significantly, as do we, as this conflict abates. Inshallah, that's something that happens soon.

Speaker #1: But I think a very nice story for us is in automotive, with Rocks taking a 10,000-square-meter facility. I mean, Rocks is a beautiful car—Chinese electric car, SUV.

Ross Thompson: But I think a very nice story for us is in the automotive with ROX Motor taking a 10,000 square meter facility. ROX Motor is a beautiful car, Chinese electric car, SUV. If you live in the UAE, you would have seen these on the road. A very, very luxurious SUV, and we are happy to be a partner of that. The target annual production will be 300,000 vehicles by 2030, bringing production into KEZAD. Abu Dhabi Refreshments Company, again, we talked about food. This is food processing. This is on the beverage side, but this is part of what we see as fundamental staples of the group strategy, and who is investing into our economic zones for development. Axione Development, again, in the F&B market, 37,000 square meters in the Abu Dhabi food hub. Next, please. With that, I will hand over to Martin.

Speaker #1: If you live in the UAE, you would have seen these on the road—very, very luxurious SUVs. And we're happy to be a partner of that.

Speaker #1: And the target annual production will be 300,000 vehicles by 2030, bringing production into Q2. Abu Dhabi Refreshments Company—again, we talked about food. This is food processing.

Speaker #1: This is on the beverage side, but this is part of what we see as fundamental staples of the group's strategy. And who is investing into our economic zones for development?

Speaker #1: And Exxon development, again, in the food and beverage market—37,000 square meters in the Abu Dhabi Food Hub. Next, please. And with that, I'll hand over to Martin.

Speaker #1: Thank you, Ross. Next slide, please, Mark.

Martin Aarup: Thank you, Ross. Next slide, please, Marc. I will quickly try to take you through the financial operational performance of Q2. As Marc mentioned earlier, Q2, we delivered the best quarterly results on record, despite the regional events weighing on our UAE ports. Our revenue for the quarter came in at $7.08 billion, up 47% year-on-year. The EBITDA reached $1.74 billion, up 49%, and total net profit hit $836 million, and that is an 88% increase versus the same quarter of last year. On a half-year basis, the revenue was $12.83 billion, up 36%, EBITDA $3.25 billion, up 41%, and net profit $1.49 billion, up 64%. Once again, the growth accelerated as we moved down the income statement. The margins expanded, the operating leverage came through, and finance costs continued to moderate. The quarter benefited from the AED 650 million warehouse sale to Aldar Properties.

Speaker #2: Yeah, I'll just quickly try to take you through the financial and operational performance of Q2. As Mark mentioned earlier, in Q2, we delivered the best quarterly results on record.

Speaker #2: Despite the regional events weighing on our UAE ports, our revenue for the quarter came in at AED 7.08 billion, up 47% year-on-year. EBITDA reached AED 1.74 billion, up 49%, and total net profit hit AED 836 million.

Speaker #2: And that's an 88% increase versus the same quarter of last year. On a half-year basis, the revenue was $12.83 billion, up 36%, EBITDA $3.25 billion, up 41%, and net profit $1.49 billion, up 64%.

Speaker #2: Once again, growth accelerated as we moved down the income statement. Margins expanded, operating leverage came through, and finance costs continued to moderate.

Speaker #2: The quarter benefited from the 650 million dirham warehouse sale to Alda. But even adjusting for that, the underlying growth remains strong on a broad-based basis across maritime and shipping, economic cities, and logistics.

Martin Aarup: Even adjusting for that, the underlying growth remains strong and broad-based across maritime and shipping, economic cities, and logistics. This is the diversification story that we have been telling for several years now, and it is doing exactly what it was designed to do. One thing that is important to note is that during the quarter, we received a monetary grant amounting to 602 million related to qualifying operational expenditures under the government-led resilience program, and the total amount was recorded as other operating income in the P&L with corresponding costs as direct and G&A expenses. With bottom line, immaterial impact on the P&L. When we look at the port cluster operational KPIs, the regional events had a very visible impact during the quarter. The general cargo volumes were down 39% year-on-year, and container volumes declined 55%. The driver is almost entirely the UAE.

Speaker #2: This is the diversification story that we have been telling for several years now, and it's doing exactly what it was designed to do. One thing that is important to note is that during the quarter, we received a monetary grant amounting to AED 602 million, related to qualifying operational expenditures under the government-led resilience program.

Speaker #2: And the total amount was recorded as other operating income in the P&L, with the corresponding cost as direct and G&A expenses, but with a bottom-line immaterial impact on the P&L.

Speaker #2: When we look at the port cluster operational KPIs, the regional events had a very visible impact during the quarter. The general cargo volumes were down 39% year-on-year.

Speaker #2: And container volumes declined 55%. The driver is almost entirely the UAE, the general cargo and UAE fell 67% and UAE container volumes were down 65%.

Martin Aarup: The general cargo in UAE fell 67%, and UAE container volumes were down 65%. The international operation continued to cushion the impact as the Noatum Ports terminals in Egypt, Pakistan, Spain, and Angola now represent 65% of total quarterly general cargo volumes and grew 14% year-on-year, while the international container volumes were broadly stable. Group-wide container terminal capacity stood at 12.2 million TEUs, with Khalifa Port at 9.6 million and Fujairah at 720,000 TEUs. The total throughput for the quarter was 853,000 TEUs. Overall capacity utilization was disappointing and very low at 28%, with the UAE at 22% and international operation at a much healthier 61%. One structural point worth flagging in this quarter is that the transshipment to origin and destination mix in the UAE inverted this quarter to 37%, 63%, versus roughly 65%, 35% in prior quarters.

Speaker #2: The international operation continued to cushion the impact. The NOAT imports terminals in Egypt, Pakistan, Spain, and Angola now represent 65% of total quarterly general cargo volumes and grew 14% year on year.

Speaker #2: While the international container volumes were broadly stable, groupwide container terminal capacity stood at 12.2 million TEUs, with Khalifa Port at 9.6 million and Fujairah at 720,000 TEUs.

Speaker #2: The total throughput for the quarter was 850,000 53,000 GUs. Overall capacity utilization was a disappointing and very low 28% with the UAE at 22% and international operation at a much healthier 61%.

Speaker #2: One structural point worth flagging in this quarter is that the transshipment-to-origin-and-destination mix in the UAE inverted this quarter to 37:63 versus roughly 65:35 in prior quarters.

Speaker #2: And transshipment is the volume most exposed to the rerouting, and that is what we are seeing. The underlying infrastructure is obviously intact, and we have very significant capacity headroom once the volumes normalize again.

Martin Aarup: Transshipment is the volume most exposed to the rerouting, and that is what we are seeing. The underlying infrastructure is obviously intact, and we have very significant capacity headroom once the volumes normalize again. Next slide. Moving to the Economic Cities & Free Zones. On land leases, we had 1.2 square kilometers net of new leases during the quarter, and that is an acceleration from Q1 with key agreements signed in the F&B, auto, metal, and logistics sectors, despite the regional situation. Industrial and manufacturing projects continue to represent around two-thirds of the overall land leases, which is the tenant mix that we are striving to maintain. Our specialized hubs, the Metal Park, AgTech Park, Food Hub, and also the Auto Hub, remain on track to come online in phases through H2 2026 and into 2027.

Speaker #2: Next slide. Moving to the economic cities and free zones. On land leases, we added 1.2 square kilometers, net, of new leases during the quarter.

Speaker #2: And that's an acceleration from Q1 with key agreements signed in the F&B, auto, metal, and logistics sectors, despite the regional situation. Industrial and manufacturing projects continue to represent around two-thirds of the overall land leases, which is the tenant mix that we are striving to maintain.

Speaker #2: Our specialized hubs—the Metal Park, Active Park, Food Hub, and also the Auto Hub—remain on track to come online in phases through the second half of 2026 and into 2027.

Speaker #2: In spite of the regional situation, we are maintaining our annual guidance of three and a half to four square kilometers of net new land leases per year.

Martin Aarup: In spite of the regional situation, we are maintaining our annual guidance of 3.5 to 4 square kilometers of net new land leases per year. On warehouses, leased space was down 13% year on year, but this is a capacity effect, not a demand effect. It follows the sale of the warehouses that I mentioned earlier, which reduced capacity by 7%. Utilization actually improved to 91% during the quarter. We have, as mentioned in previous quarters, close to 500,000 square meters of new warehouse capacity coming on stream later this year, which is a 65% increase from 2025. Next slide. A couple of further highlights from the economic cities clusters is worth calling out. Sedera Group, our staff accommodation business, reached an all-time high occupancy of 98% in Q2, improving both year on year and quarter on quarter, with bed leases up 23% year on year.

Speaker #2: On warehouses, leased space was down 13% year-on-year, but this is a capacity effect, not a demand effect. This follows the sale of the warehouses that I mentioned earlier, which reduced capacity by 7%. Utilization actually improved to 91% during the quarter.

Speaker #2: And we have, as mentioned in previous quarters, close to 500,000 square meters of new warehouse capacity coming on stream later this year, which is a 65% increase from 2025.

Speaker #2: Next slide. A couple of further highlights from the Economic Cities & Clusters are worth calling out. Cedara Group, our staff accommodation business, reached an all-time high occupancy of 98% in Q2, improving both year on year and quarter on quarter, with bed leases up 23% year on year.

Speaker #2: The total bed capacity was largely unchanged at 130,000—or 39,000 beds. So, it was purely a utilization gain, straight through to the margin. On the gas distribution side, volumes reached 6.3 million MMBtu, up 8% year-on-year, driven by continued steady demand from our industrial customers. Our gas network in Abu Dhabi stands at 106 kilometers.

Martin Aarup: The total bed capacity was largely unchanged at 130,000 or 39,000 beds. So purely a utilization gain from straight through to the margin. On the gas distribution, volumes reached 6.3 million MMBtu, up 8% year on year, driven by continued steady demand from our industrial customers, and our gas network in Abu Dhabi stands at 106 kilometers. Next slide. For maritime and shipping, the story in Q2 was all about rates rather than volumes. Container feeder shipping volumes were 740,000 TEUs, down 11% year on year and 15% quarter on quarter as port bottlenecks in the region constrained our ability to move boxes. But that volume decline was more than offset by pricing. The average freight rates in our core regions, the Gulf and Indian subcontinent, and the Red Sea, increased 96% and 37% year on year respectively.

Speaker #2: Next slide. For maritime and shipping, the story in Q2 was all about rates rather than volumes. Container feeder shipping volumes were 740,000 TEUs, down 11% year-on-year and 15% quarter-on-quarter, as port bottlenecks in the region constrained our ability to move boxes.

Speaker #2: But that volume decline was more than offset by pricing. The average freight rates in our core regions—the Gulf and Indian Subcontinent, and the Red Sea—increased 96% and 37% year on year, respectively.

Speaker #2: We operated 27 services, connecting 87 ports across 36 countries, with the Gulf, Indian Subcontinent, and the Red Sea accounting for 54% of the volumes in Q2.

Martin Aarup: We operated 27 services connecting 87 ports across 36 countries, with the Gulf, Indian subcontinent, and the Red Sea accounting for 54% of the volume through Q2. The container feeder fleet grew to 61 vessels, with 53 on service versus 50 in Q1 and 47 a year ago, and we completed 261 voyages in the quarter, up 11% year on year. Next slide. Beyond the container feeder services, the wider maritime portfolio continues to broaden. Our total vessel fleet reached 325 ships as of Q2, up from 274 or 275 a year earlier. UGR, our automotive ro-ro joint venture, was again a key growth driver. We transported 208,000 car equivalent units and 243,000 cubic meters of high and heavy cargo in the quarter, and that is 119% and 36%, respectively, of the entire 2025 full-year performance achieved in a single quarter.

Speaker #2: The container feeder fleet grew to 61 vessels, with 53 in service versus 50 in Q1 and 47 a year ago. We completed 261 voyages in the quarter, up 11% year on year.

Speaker #2: Next slide. Beyond the container feeder services, the wider maritime portfolio continues to broaden. Our total vessel fleet reached 325 ships as of Q2, up from 274 or 275 a year earlier.

Speaker #2: UGR, our automotive railroad joint venture, was again a key growth driver. We transported 208,000 car-equivalent units and 243,000 cubic meters of high and heavy cargo in the quarter, and that's 119% and 36%, respectively, of the entire 2025 full-year performance achieved in a single quarter.

Speaker #2: The dry and liquid bulk, railroad, and multipurpose fleet expanded to 72 vessels, up from 36 a year ago and 63 last quarter. That includes both owned and chartered-in vessels.

Martin Aarup: The dry and liquid bulk ro-ro and multipurpose fleet expanded to 72 vessels, up from 36 a year ago and 63 last quarter, and that includes both owned and chartered-in vessels. The offshore and subsea fleet stood at 102 vessels, broadly stable over recent quarters. Our marine services grew to 85 vessels from 78 a year earlier, with dry docking again being one of the key operational drivers. Next slide. On to logistics, where we are seeing a general turnaround take hold. Polymer volumes declined 23% year-on-year on the regional events, but higher pricing largely supported the sector's overall performance. Excuse me. Air freight rebounded up 5% year-on-year, recovering from the loss of the last Asian customer earlier in the year that we mentioned during Q1. Ocean freight was down 5% year-on-year, but essentially stable quarter-on-quarter, a reasonable outcome in a challenging market.

Speaker #2: The offshore and subsea fleet stood at 102 vessels, broadly stable over recent quarters, and our marine services grew to 85 vessels from 78 a year earlier, with dry docking again being one of the key operational drivers.

Speaker #2: Next slide. On the logistics, where we are seeing a general turnaround take hold, Palema volumes declined 23% year-on-year on the regional events, but higher pricing largely supported the segment's overall performance.

Speaker #2: Excuse me. Air freight rebounded, up 5% year on year, recovering from the loss of the last Asian customer earlier in the year, which we mentioned during Q1.

Speaker #2: Ocean freight was down 5% year-on-year, but essentially stable quarter-on-quarter—a reasonable outcome in a challenging market. The regional supply chain reconfiguration is driving real land bridge demand across the UAE and wider GCC.

Martin Aarup: The regional supply chain reconfiguration is driving real land bridge demand across UAE and the wider GCC. The improvement that we signaled in Q1 for logistics has come through in the financials, and we expect that trajectory to continue. Next slide. Let's move on to the revenue by cluster. Maritime and shipping remains the largest growth engine. Revenue was up 62% to AED 3.8 billion, and that was driven by the automotive up 208%, shipping up 71%, agency up 38%, offshore and subsea up 27%, and dry docking and ship building up 10%. Shipping now contributes around 60% of the cluster's top line, reflecting the strong rate environment. Economic Cities & Free Zones grew 132% to AED 1.3 billion, boosted by the AED 650 million warehouse sale. Stripping that out, growth was still 15%. The warehouse revenues rose 26% despite the sale.

Speaker #2: And the improvement that we signaled in Q1 for logistics has come through in the financials, and we expect that trajectory to continue. Next slide.

Speaker #2: Let's move on to the revenue by cluster. Maritime and Shipping remained the largest growth engine. Revenue was up 62% to $3.8 billion, and that was driven by the automotive, up 208%, shipping up 71%, agency up 38%, offshore and subsea up 27%, and dry docking and shipbuilding up 10%.

Speaker #2: Shipping now contributes around 60% of the cluster's top line, reflecting the strong rate environment. Economic Cities and Free Zones grew 132% to $1.3 billion, boosted by the $650 million warehouse sale.

Speaker #2: Stripping that out, growth was still 15%. Warehouse revenues rose 26% despite the sale. Cedara Group was up 29% on higher occupancy, and utilities and land leases grew 11% and 9%, respectively.

Martin Aarup: Sedera Group was up 29% on higher occupancy. Utilities and land leases grew 11% and 9% respectively. Ports was down 70% to just north of AED 600 million, reflecting the UAE volume impact. Concession fees in the UAE contracted 57%, but the international container operations more than doubled, up 108% year-on-year. Logistics grew 30% to AED 1.5 billion, driven by land bridge requirement across the UAE and GCC, with project logistics up 40% and warehouses up 32%. Three of the four clusters are growing strongly, and the one under pressure is the one most directly exposed to the regional situation. Next slide. On the geographic split, international operations represented 37% of the H1 revenue, with Spain, Pakistan, and Egypt being the primary contributors.

Speaker #2: Ports was down 70% to just north of $600 million, reflecting the UAE volume impact. Concession fees in the UAE contracted 57%, but the international container operations more than doubled, up 108% year on year.

Speaker #2: Logistics grew 30% to $1.5 billion, driven by land bridge requirements across the UAE and TCC, with project logistics up 40% and warehouses up 32%.

Speaker #2: Three of the four clusters are growing strongly, and the one under pressure is the one most directly exposed to the regional situation. Next slide. On the geographic split, international operations represented 37% of the H1 revenue, with Spain, Pakistan, and Egypt being the primary contributors.

Speaker #2: If you were to reclassify all shipping as non-UAE—which, arguably, is a better reflection of the true nature of the business, since it's currently split by office control—international would represent 68%.

Martin Aarup: If you were to reclassify all shipping as non-UAE, which arguably better reflects the true nature of the business since it's currently split by office control, international would represent 68%. This was a deliberate strategic choice we made several years ago, and it's paying off precisely when we need it the most, as we've seen in the quarter that we've just been through. Alongside the business mix, geographic diversification has been one of the most effective tools in mitigating the impact of regional events on the group financial performance, and Q2 was a clear demonstration of that. Next slide. Turning to the EBITDA, which was up 49% for the quarter to AED 1.74 billion. Maritime and shipping EBITDA rose 79% to more than AED 1 billion for the first time, driven by a combination of revenue growth and materially higher profitability in the shipping segment on the back of the rate environment.

Speaker #2: This was a deliberate strategic choice we made several years ago, and it's paying off precisely when we need it the most, as you see in the quarter that we've just been through.

Speaker #2: Alongside the business mix, geographic diversification has been one of the most effective tools in mitigating the impact of regional events on the Group's financial performance, and Q2 was a clear demonstration of that.

Speaker #2: Next slide. Turning to the EBITDA, which was up 49% for the quarter to $1.74 billion. Maritime and shipping EBITDA rose 79% to more than $1 billion for the first time.

Speaker #2: Driven by a combination of revenue growth and materially higher profitability in the shipping segment on the back of the rate environment. Economic Cities and Free Zone was up 99% to 659 million, driven by higher berth utilization in Kizad.

Martin Aarup: Economic Cities & Free Zones was up 99% to AED 659 million, driven by higher bed utilization in Sedera and growing warehouse leases, and obviously boosted by the warehouse sale. Excluding the AED 294 million gain on the warehouse transaction, normalized cluster EBITDA was AED 365 million, up 10% year-on-year. Ports declined 23% to AED 234 million, a direct consequence of the top-line decline from the regional situation. Logistics, which was the area of concern reflecting Q1, delivered EBITDA of AED 94 million, up 154% on increased activity in the UAE and the wider GCC. Next slide. Zooming into the margins, consolidated EBITDA margins was 24.5% in Q2 and 25.3% for H1 2026. The standout margin expansion came in Maritime & Shipping, up to around 27% from 24%, and in Logistics, which improved to 6.4% from 3.3%. Still low in absolute terms, but moving decisively in the right direction.

Speaker #2: And growing warehouse leases, and obviously boosted by the warehouse sale. Excluding the $294 million gain on the warehouse transaction, normalized cluster EBITDA was $365 million, up 10% year-on-year.

Speaker #2: Ports declined 23% to 234 million, a direct consequence of the top line decline from the regional situation. And logistics, which was the area of concern, reflected Q1 delivered EBITDA of 94 million, up 154% on increased activity in the UAE and divider TCC.

Speaker #2: Next slide. Zooming in on the margins, consolidated EBITDA margin was 24.5% in Q2, and 25.3% for the first half of 2026. The standout margin expansion came in maritime and shipping, up to around 27% from 24%.

Speaker #2: And in logistics, which improved from 6, or 26.4%, up from 3.3%—still low in absolute terms but moving decisively in the right direction. Economic Cities came in at 51% for the quarter, or 57.1% when you exclude the effect of the warehouse sale.

Martin Aarup: Economic Cities came in at 51% for the quarter, or 57.1% when you exclude the effect of the warehouse sale. Port margins held up reasonably at 38%, given the scale of the volume decline, and remained above 43% for H1 of the year. Looking ahead, as always, consolidated margin will depend on the revenue mix, the margin profile across the clusters, and also the ramp-up of international operations and of course, the regional situation. We are maintaining our medium-term EBITDA margin guidance of 25% to 30%. From a portfolio perspective, our target remains that more than 60% of our EBITDA comes from our infrastructure business, ports, and Economic Cities, which carry the highest margins. Next slide. Moving to the balance sheet, liquidity remains strong.

Speaker #2: Port margins held up reasonably at 38% given the scale of the volume decline, and remained above 43% for the first half of the year.

Speaker #2: Looking ahead, as always, consolidated margin will depend on the revenue mix, the margin profile across the clusters, the ramp-up of international operations, and, of course, the regional situation.

Speaker #2: We are maintaining our medium-term EBITDA margin guidance of 25% to 30%. And from a portfolio perspective, our target remains that more than 60% of our EBITDA comes from our infrastructure business—ports and economic cities—which carry the highest margins.

Speaker #2: Next slide. Moving to the balance sheet, liquidity remained strong. We closed the quarter with $3.36 billion in cash and cash equivalents, plus $5.89 billion of undrawn bank facilities, including an accordion option, so well over $9 billion of available liquidity.

Martin Aarup: We closed the quarter with AED 3.36 billion in cash and cash equivalents, plus AED 5.89 billion of undrawn bank facilities, including an accordion option, so well over AED 9 billion of available liquidity. Net leverage continued to improve, reaching 3.7x in Q2, down from 4.1x a year ago and 3.9x last quarter. We are making steady, consistent progress towards our medium-term target of 3.5x, and we remain committed to getting there. Next slide. On capital expenditure, we invested AED 1.45 billion in Q2, taking the H1 CapEx to AED 2.8 billion. The CapEx intensity was 20% of revenue for the quarter, down from 24% in Q1. We have pre-poned some CapEx plan for H2 of the year into H1 in order to effectively respond to the regional situation.

Speaker #2: Net leverage continued to improve, reaching 3.7 times in Q2, down from 4.1 times a year ago and 3.9 times last quarter. We are making steady, consistent progress towards our medium-term target of 3.5 times, and we remain committed to getting there.

Speaker #2: Next slide. On capital expenditure, we invested $1.45 billion in Q2, taking first half capex to $2.8 billion. Capex intensity was 20% of revenue for the quarter, down from 24% in Q1.

Speaker #2: We have advanced some capex planned for the second half of the year into the first half in order to effectively respond to the regional situation.

Speaker #2: The distribution in the first half was balanced between Maritime and Shipping at 80, or 48%, and our infrastructure assets, with Ports at 24% and Economic Cities at 22%.

Martin Aarup: The distribution in H1 was balanced between Maritime & Shipping at 48%, and our infrastructure assets with Ports at 24% and Economic Cities at 22%. The Maritime & Shipping spend went into tankers, container shipping vessels, marine services vessels, and dry docking maintenance and repairs, largely to fulfill existing contracts. We are maintaining our organic CapEx guidance of AED 4.5 billion to AED 5 billion for the full year 2026. Next slide. On the cash flow, Q2 was a very strong quarter. The operating cash flow came in at AED 2.14 billion, more than double Q2 last year, with cash conversion of 123%. That is a marked improvement on the 6% we reported in Q1. The free cash flow to firm was negative around AED 1 billion, but that figure includes the AED 1.1 billion acquisition of additional 30% stake in Global Feeder Shipping.

Speaker #2: The maritime and shipping spend went into tankers, container shipping vessels, marine services vessels, and dry-docking maintenance and repairs, largely to fulfill existing contracts.

Speaker #2: And we are maintaining our organic capex guidance of $4.5 to $5 billion for the full year 2026. Next slide. On the cash flow, Q2 was a very strong quarter.

Speaker #2: The operating cash flow came in at $2.14 billion, more than double Q2 last year, with cash conversion of 123%. That is a marked improvement on the 62% we reported in Q1.

Speaker #2: The free cash flow to firm was negative, around $1 billion, but that figure includes the $1.1 billion acquisition of an additional 30% stake in GFS.

Speaker #2: Excluding that transaction, the group generated positive free cash flow to firm of $73 million for Q2. Our key focus remains on reaching the inflection point of becoming free cash flow to firm positive on a sustainable basis. This means our immediate priority is on operating cash flow generation and disciplined capex spend.

Martin Aarup: Excluding that transaction, the group generated positive free cash flow to firm of AED 73 million for Q2. Our key focus remains on reaching the inflection point on becoming free cash flow to firm positive on a sustainable basis, which entails that our immediate priority is on operating cash flow generation and disciplined CapEx spend. Next slide. Yeah, next one. Yeah. Despite the situation that we currently have in the region and the turbulent macro environment, we remain confident in our medium-term growth trajectory, and we are reaffirming the guidance across the board. As always, these targets are based on existing operations and approved or announced projects and acquisitions. Over to you, Mike.

Speaker #2: Next slide. Yeah, next one. Despite the situation that we currently have in the region and the turbulent microenvironment, we remain confident in our medium-term growth trajectory, and we are reaffirming the guidance across the board.

Speaker #2: As always, these targets are based on existing operations and approved or announced projects and acquisitions. Over to you, Mike.

Speaker #1: Thank you, Martin. It's time to open the floor for Q&A. Ahmad, can we do that?

Marc Hammoud: Thank you, Martin. It is time to open the floor for Q&A. Ahmed, can we do that?

Speaker #2: Yes, of course. Just a reminder for everyone: you can send your questions in the Q&A box, or you can use the raise hand function and we can unmute your mic.

Ahmed Hazem Maher: Yes, of course. Just as a reminder for everyone, you can send your questions in the Q&A box, or you can use the raise hand function and we can unmute your mic. We will be prioritizing raised hands first before the Q&A box. The first question comes from Shahrukh Nawaz. Shahrukh, please unmute locally and ask your question. Shahrukh, can you please unmute locally and ask your question? Okay, I guess we will move to the next question coming from Ricardo Rezende. Ricardo, please unmute locally and ask your question. Hello, Ricardo, can you hear us?

Ahmed Hazem: Yes, of course. Just as a reminder for everyone, you can send your questions in the Q&A box, or you can use the raise hand function and we can unmute your mic. We will be prioritizing raised hands first before the Q&A box. The first question comes from Shahrukh Nawaz. Shahrukh, please unmute locally and ask your question. Shahrukh, can you please unmute locally and ask your question? Okay, I guess we will move to the next question coming from Ricardo Rezende. Ricardo, please unmute locally and ask your question. Hello, Ricardo, can you hear us?

Speaker #2: We will be prioritizing raised hands first before the Q&A box. The first question comes from Shahrukh Nawaz. Shahrukh, please unmute locally and ask your question.

Speaker #2: Shahrukh, can you please unmute locally and ask your question? Okay, I guess we'll move to the next question coming from Ricardo Resende. Ricardo, please unmute locally and ask your question.

Speaker #2: Hello, Ricardo, can you hear us?

Speaker #3: Hello, yes, sorry. It took a while to unmute myself. Thanks, Ahmad. Good afternoon, everyone. If I may, I would just like to follow up on a couple of things that Ross pointed out in his remarks.

Ricardo Rezende: Hello. Yes, sorry. I took a while to unmute myself. Thanks, Ahmed. Good afternoon, everyone. If I may, I would like to just follow up on a couple of things that Ross pointed out on his remarks. The first one, when Ross, you mentioned about the six trains going from Fujairah to Khalifa Port every day. If we assume the situation might remain ongoing for a while, what would be the capacity that it could have for incremental trains from Fujairah to Khalifa Port? The second question is on the web app. Demand has been very strong there, outpacing your expected capacity. If we do get to a point where you might add more capacity in the region, would that be something more in the shorter term? Meaning could we see some announcements in 2026? Or is that a bit more long-term? Thank you.

Speaker #3: The first one. When, Ross, you mentioned about the six trains going from Fujairah to Khalifa Port every day, if we assume the situation might remain ongoing for a while, what would be the capacity that it could have for incremental trains from Fujairah to Khalifa Port?

Speaker #3: And then the second question is on the web app outlook. Demand has been very strong there, outpacing your expected capacity. If we do get to a point where you might add more capacity in the region, would that be something more in the shorter term—meaning, could we see some announcements in 2026—or is that a bit more long term?

Speaker #3: Thank you.

Speaker #1: Yeah, so look, the first question is—I think, I'm not from Etihad Rail—but my circumstance is that I think we're maxed out with six trains a day currently.

Ross Thompson: Yeah. Look, the first question is, I am not from Etihad Rail, but my circumstance is that I think we are maxed out with 6 trains a day currently. I do not think that is their full capacity, but it is to do with the equipment that we have between the key and the rail yard. So it is as much as we can provide at this point in time. I do think that they have additional capacity on the line. I think, look, the easy answer, we have done the calculation. If you were to take all of the inner Gulf's cargo via train and needed to put all of it pre-war, pre-conflict levels, sorry, which is 22 million TEUs. How many trains a day do you need to run to cater for that? It is about 25. That is a situation that would never happen, right?

Speaker #1: I don't think that's their full capacity, but it's to do with the equipment that we have between the quay and the rail yard. So, it's as much as we can provide at this point in time.

Speaker #1: So, I do think that they have additional capacity on the line. And I think, look, the easy answer—we've done the calculation. If you were to take all of the Inner Gulf's cargo via train and needed to put all of it at pre-war, sort of pre-conflict levels—sorry, which is 22 million TEUs—how many trains a day do you need to run to cater for that?

Speaker #1: It's about 25. But that's a situation that would never happen, right? So, in one terminal, etcetera, we can't build a terminal of 25 million.

Ross Thompson: In one terminal, et cetera, we cannot build a terminal of 25 million. My point being, we are where we are. We have what we have. We would like to see. We have increased capacity in Fujairah significantly from what we had during the conflict to now. I think we have over double capacity, taken extra land, built yards. Our constraining factor is the size of the key lengths that we currently have, and the depth, and the turning circle that we have in Fujairah. I think, look, none of us have a crystal ball, but I do think that in order to build future resilience, no matter what happens, what scenarios play out, and there are a number of scenarios, we must have a strong footprint on the East Coast. Right? We must look at the way that the trade patterns may or may not change.

Speaker #1: But my point being, we are where we are. We have what we have. And we would like to see, you know, we've increased capacity in Fujara significantly from what we had during the conflict to now.

Speaker #1: I think we've over-doubled capacity, taken extra land, and built yards. Our constraining factor is the size of the quay length that we currently have, as well as the depth and the turning circle that we have in Fujairah.

Speaker #1: I think, look, none of us have a crystal ball. But I do think that, in order to build future resilience—no matter what happens, no matter what scenarios play out, and there are a number of scenarios—we must have a strong footprint on the East Coast, right?

Speaker #1: And we must look at the way that trade patterns may or may not change. Fortunately, we had planned—not for this conflict, obviously—but for disruption.

Ross Thompson: Fortunately, we had planned not for this conflict, obviously, but for disruption when taking Fujairah first. We had planned that we needed a strong regional network, and we needed Global Feeder Shipping, and we needed close proximity to Etihad Rail. We needed our terminals rail linked. We had planned for changing environments, and so we continue to do so. The issue with the conflict is there is a lot of unknown, and there is a lot of scenarios to play out, but we know what we know, and we do not know what we are not going to know at this point. The obvious answer is you cannot do nothing. We have to build on what we know. We have to maintain supply chains. We have to maintain our customers' volume. That is what we are doing. So there is ultimately more capacity to be had.

Speaker #1: When taking Fujairah first—and we had planned that—you know, we needed the strong regional network, and we needed GFS, and we needed close proximity to Etihad Rail.

Speaker #1: We needed our terminals rail linked. We had planned for, you know, changing environments and so we continue to do so. So I can't, you know, the issue with the conflict is there's a lot of unknown and there's a lot of scenarios to play out.

Ross Thompson: The issue with the conflict is there is a lot of unknown, and there is a lot of scenarios to play out, but we know what we know, and we do not know what we are not going to know at this point. The obvious answer is you cannot do nothing. We have to build on what we know. We have to maintain supply chains. We have to maintain our customers' volume. That is what we are doing. So there is ultimately more capacity to be had. We are looking at ways to increase capacity in Fujairah, but it is not going to be significant. That is where we are right now. Yeah.

Speaker #1: But we know what we know, and we don't know what we're not going to know at this point. And the obvious answer is you can't do nothing.

Speaker #1: We have to build on what we know. We have to maintain supply chains. We have to maintain our customers' volume, and that's what we're doing.

Speaker #1: So there is ultimately more capacity to be had. We are looking at ways to increase capacity in Fujairah, but it's not going to be significant.

Ross Thompson: We are looking at ways to increase capacity in Fujairah, but it is not going to be significant. That is where we are right now. Yeah.

Speaker #1: And that's where we are right now, yeah.

Speaker #3: Thank you. And then, in West Africa, if you could comment on potential.

Ricardo Rezende: Thank you. In West Africa, if you could comment on potential.

Speaker #1: I missed the point. I missed the point about West Africa. It broke up a little.

Ross Thompson: Sorry, I missed the point about West Africa. It broke up a little.

Speaker #3: Yeah, no, sorry. You mentioned in your remarks that demand in West Africa has been very strong, and then your expected capacity there. Could we see something in the short term of you adding more capacity, or is that something for maybe 2027 onwards?

Ricardo Rezende: Sorry. You mentioned on your remarks that.

Ross Thompson: Yeah

Ricardo Rezende: Demand in West Africa has been very strong.

Ross Thompson: Very strong.

Ricardo Rezende: in your expected capacity there. Could we see something in the short term of you adding more capacity, or is that something for maybe 2027 onwards?

Speaker #1: I think these things are always market demand related, but, you know, we have options. We're in phase one of Congo-Brazzaville and, as you know, we've partnered with CMA on that.

Ross Thompson: Yeah. I think these things are always market demand related, but we have options for. We are in phase I of Congo, Brazzaville, and as you know, we have partnered with CMA on that, where we own the majority and they are a minority investment stake. But we have the ability to, and the option to accelerate phase II and phase III should we choose. That is a symptom of CapEx and returns, but we have the market demand to accelerate those phase II and phase III as we stand. Same for Angola, where we are receiving very strong demand in the market for our terminal there. People are looking to really cement down West Africa hubs. Not all of the shipping lanes around the world have strong West African hubs. CMA certainly do. MSC certainly does.

Speaker #1: Where we own the majority and there are minority investment stakes. But we have the ability and the option to accelerate phase two and phase three, should we choose.

Speaker #1: Now, that's a symptom of capex and returns, but we have the market demand to accelerate those phase two and phase three projects as we stand.

Speaker #1: Same for Angola. We're receiving very, very strong demand in the market for our terminal there—people looking to really cement down West Africa hubs.

Speaker #1: Now, not all of the shipping lanes around the world have strong West African hubs. CMA certainly does. MSC certainly does. But if you look at the remaining shipping lines, it is open.

Speaker #1: And all of them want that relay hub, one in West Africa and one in East Africa. And so we're very prime position with the assets that we invested in to deliver that.

Ross Thompson: But if you look at the remaining shipping lines, it is open, and all of them want that relay hub, one in West Africa and one in East Africa. We are very prime position with the assets that we invested in to deliver that. So, yeah, if the market demand is there and we can reach good economic terms, of course, we would do it. We will let you know in due course.

Speaker #1: So yeah, if the market demand is down, we can reach good economic terms. Of course, we would do it and we will let you know and do call.

Speaker #3: Great. Thank you very much.

Speaker #2: Thank you. So, Sharukh Nawaz, you still have your line open. Can we just try again? Hello, Sharukh, can you hear us?

Ricardo Rezende: Great. Thank you very much.

Ahmed Hazem Maher: Thank you. Shahrukh Nawaz, you still have your line open, so can we just try again? Hello, Shahrukh. Can you hear us?

Ahmed Hazem: Thank you. Shahrukh Nawaz, you still have your line open, so can we just try again? Hello, Shahrukh. Can you hear us?

Speaker #2: Am I audible? Yes, you're audible. Please go ahead. Congratulations on a good set of results. I have three questions. First, as we are in the middle of the third quarter of '26, how have you seen growth in the ports segment, and what's your expectation for the second half along with that?

Shahrukh Nawaz: Am I audible?

Ahmed Hazem Maher: Yes, you are audible.

Ahmed Hazem: Yes, you are audible.

Ross Thompson: Yes. Go ahead.

Shahrukh Nawaz: Thank you. Congratulations for a good set of results. I have three questions. First is, as we are in mid of Q3 2026, how have you seen growth in the port segment, and what is your H2 expectation? Along with that, what level of utilization rate do you expect for warehouse in the remainder of 2026? Will there be any further warehouse sales, which can have a good growth impact in the EC&FZ in H2? Second question is, once the shipping and freight cost eases, will there be margin pressure for maritime shipping segment and logistics segment going ahead? The third question is, what contribution will be to the logistics segment revenue starting 2027 post MBS Logistics acquisition, which would be completed by Q4 of this year?

Speaker #2: What level of utilization rate do you expect for the warehouse in the remainder of 2026? And will there be any further warehouse sales which could have a good growth impact in the ECNFZ in the second half?

Speaker #2: Second question is: Once the shipping and freight cost eases, will there be margin pressure for the maritime shipping, shipment, and logistics segment going ahead? And the third question is: What will be the contribution to the logistics segment revenue starting 2027 post MBS Logistics acquisition, which would be completed by the fourth quarter of this year?

Speaker #1: Yeah, let me answer the first question, and then Martin, I think you can take the latter questions. But look, I think we don't see much change in the region and in the world, actually, between now and the end of the year, and even into the first quarter next year.

Ross Thompson: Yeah, let me answer the first question, and then, Martin, I think you can take the latter questions. Look, I think we do not see much change in the region, and in the world actually, between now and the end of the year, and even into Q1 next year. Whilst we are not providing forward guidance, what I would say is you can look at Q2 as relatively speaking, the new norm in the immediate term. So, Q2 would be a full quarter of where the shipping rates are, where the port volumes are. I would take Q2 as the basis of the rest of the year, in particular as the new norm.

Speaker #1: So, whilst we're not providing forward guidance, what I would say is you can look at Q2 as, relatively speaking, the new norm in the immediate term.

Speaker #1: So quarter two would be a full would be a full quarter of where the shipping rates are, where the port volumes are, so I would take quarter two as the basis of the rest of the year in particular as the new norm.

Speaker #4: Just on the other questions, you're talking about the warehouse utilization. We had 91% or 92% currently. We see strong demand in terms of warehouse capacity.

Martin Aarup: Just on the other questions. You are talking about the warehouse utilization. We are at 91%, 92% currently. We see strong demand in terms of warehouse capacity. As we also mentioned, we have significant new capacity coming on stream for the remainder of the year, but that is based on the very strong demand. So, the utilization on the existing capacity is almost at full utilization, and that we expect to remain, and then obviously when the new capacity come in, there will be a ramp-up period. In terms of potential warehouse sale, we have nothing planned at this point in time. In H2 of the year, our key focus is on the integration. First of all, closing the M&A transactions that you are seeing on the screen here now, and doing the integration.

Speaker #4: As we also mentioned, we have significant new capacity coming on stream for the remainder of the year, and that's based on the very, very strong demand.

Speaker #4: So yeah, the utilization on the existing capacity is almost at full utilization, and we expect that to remain. Then obviously, with the new capacity coming, there will be a ramp-up period.

Speaker #4: In terms of a potential warehouse sale, we have nothing planned at this point in time. In the second half of the year, our key focus is on the integration—first of all, closing the M&A transactions that you're seeing on the screen here now.

Speaker #4: And doing the integration. Additionally, making sure that the operational integrity is there, especially in the volatile environment, that we really make sure that we're disciplined on the CapEx spend, and then, as we highlighted, also focus on cash flow generation.

Martin Aarup: Additionally, making sure that the operational integrity is there, especially in the volatile environment, that we really make sure that we are disciplined on the CapEx spend. Then, as we highlighted, also focus on cash flow generation. When it comes to the logistics contribution in terms of the overall portfolio, again, we are not giving specific guidance per year and in terms of the relative growth rates, but we have highlighted here in terms of what we expect the contribution would be for MBS Logistics going into next year. That is just shy of 1 billion of additional revenue.

Speaker #4: When it comes to the logistics contribution in terms of the overall portfolio, again, we're not giving specific guidance per year or in terms of the relative growth rates, but we've highlighted here what we expect the contribution would be.

Speaker #4: For MBS Logistics going into next year, that's just shy of $1 billion of additional revenue.

Speaker #2: Okay. Thank you. Thank you. We'll take our next question from Anna Antonova. Anna, please unmute locally and ask your question.

Shahrukh Nawaz: Okay. Thank you.

Ahmed Hazem Maher: Thank you. We will take our next question from Anna Antonova. Anna, please unmute locally and ask your question.

Ahmed Hazem: Thank you. We will take our next question from Anna Antonova. Anna, please unmute locally and ask your question.

Speaker #5: Good afternoon. Thank you for taking my question, and thank you for the presentation. A quick follow-up, maybe on the comment about your outlook into year-end, and then Q2 can be taken as perhaps a new normal, at least into the year-end.

Anna Antonova: Good afternoon. Thank you for taking my question, and thank you for the presentation. A quick follow-up, maybe on the comment about your outlook into year-end, and that Q2 can be taken as perhaps a new normal, at least into the year-end. My question is, whether we can expect any additional government grants given that the current situation may continue in Q3 or Q4, or the bulk of the extra costs associated with alternative trade corridors has been mostly taken, and we may reasonably expect that kind of going forward, the profitability, especially in logistics, will hold without any incremental government support.

Speaker #5: My question is, whether we can expect any additional government grants given that the current situation may continue in Q3 or Q4 or the bulk of the extra costs associated with alternative trade corridors has been mostly taken and we may reasonably expect that kind of going forward the profitability especially in logistics will hold without any incremental government support.

Speaker #4: So, the government grant is basically having a limited impact in terms of the P&L and the profitability, because it's a cost that we are taking on based on government mandates and instructions, and we're being reimbursed for that.

Martin Aarup: The government grant is basically having a limited impact in terms of the P&L and the profitability because it is a cost that we are taking on based on government mandates and instructions, and we are being reimbursed for that. The situation is again, extremely volatile and evolving. Again, we have the optionality to, and we are on standby to take any instructions in terms of supporting the government with anything trade-related that will come up. Whether there will be more grants in the H2 of the year, possibly. Again, I think it is important to highlight that from a P&L perspective, it is neutral. When we look at the H2 of the year in terms of how it will continue, we have highlighted in the press release that the growth momentum that we had in Q2 has continued into July as well.

Speaker #4: The situation is, again, extremely volatile and evolving. Once again, we have the optionality, and we are on standby to take any instructions in terms of supporting the government with anything trade-related that may come up.

Speaker #4: So whether there will be more grant in the second half of the year, possibly, but again, I think it's important to highlight that from a P&L perspective, it's neutral.

Martin Aarup: Again, I think it is important to highlight that from a P&L perspective, it is neutral. When we look at the H2 of the year in terms of how it will continue, we have highlighted in the press release that the growth momentum that we had in Q2 has continued into July as well. We still foresee that particularly the container shipping rates will remain at an elevated level in the next couple of quarters. Again, I think that there is a lot of uncertainty in the market right now, and we remain vigilant, but we have a positive outlook for the H2 of the year.

Speaker #4: And when we look at the second half of the year in terms of how it will continue, we've highlighted in the press release that the growth momentum that we had in Q2 has continued into July as well.

Speaker #4: And we still foresee that particularly the container shipping rates will remain at an elevated level in the next couple of quarters. But again, I think that there is a lot of uncertainty in the market right now.

Martin Aarup: We still foresee that particularly the container shipping rates will remain at an elevated level in the next couple of quarters. Again, I think that there is a lot of uncertainty in the market right now, and we remain vigilant, but we have a positive outlook for the H2 of the year.

Speaker #4: And, yeah, remain vigilant, but we have a positive outlook for the second half.

Speaker #5: All clear. Thank you so much for the comments.

Anna Antonova: All clear. Thank you so much for the comments.

Speaker #2: Thank you. As a reminder, you can use the raise hand function or we can read your questions out from the Q&A box. We currently have no hands raised and no questions in the Q&A box.

Ahmed Hazem Maher: Thank you. As a reminder, you can use the raise hand function, or we can read your questions out from the Q&A box. We currently have no hands raised, and no questions in the Q&A box. We will give it a minute or so. In the meantime, maybe I can ask a question. Ross, you mentioned that you are using Safaga as a relay port for East-West cargo, maybe shippers that can basically put volumes into Safaga. Obviously, we are hearing about a lot of issues between Saudi and the Houthi movement trying to disrupt the Bab el-Mandeb, the Strait of Bab el-Mandeb as well. Are you seeing actually a lot of flow going through the Red Sea right now, or are things slowing down as well?

Ahmed Hazem: Thank you. As a reminder, you can use the raise hand function, or we can read your questions out from the Q&A box. We currently have no hands raised, and no questions in the Q&A box. We will give it a minute or so. In the meantime, maybe I can ask a question. Ross, you mentioned that you are using Safaga as a relay port for East-West cargo, maybe shippers that can basically put volumes into Safaga. Obviously, we are hearing about a lot of issues between Saudi and the Houthi movement trying to disrupt the Bab el-Mandeb, the Strait of Bab el-Mandeb as well. Are you seeing actually a lot of flow going through the Red Sea right now, or are things slowing down as well?

Speaker #2: We'll give it a minute or so. I mean, in the meantime, maybe I can ask a question. Ross, you mentioned that you're using Safega as a relay port for east-west cargo—maybe shippers that can basically put volumes into Safega.

Speaker #2: But obviously, we're hearing about a lot of issues between Saudi and the Houthis trying to disrupt Bab-el-Mandeb, the Strait of Bab-el-Mandeb as well. So, are you seeing actually a lot of flow going through the Red Sea right now, or are things slowing down as well?

Speaker #4: I think we lost.

Speaker #2: Yeah. Yeah, we lost Ross.

Speaker #4: We lost him. But just to comment on his behalf, yes, Safaga is used and Egypt is used as a relay point for us right now.

Martin Aarup: I think we lost-

Ahmed Hazem Maher: Yeah, we lost Ross.

Ahmed Hazem: Yeah, we lost Ross.

Martin Aarup: We lost him. Just to comment on his behalf, yeah, Safaga is used, and Egypt is used as a relay point for us right now. Obviously, with Safaga, we only have the soft launch, but we expect to be fully operational during the H2, later in the H2 of the year. It is an important staging area for us, and also depending on how the regional situation will continue to evolve. So far, we still have trade going into the Red Sea, and it is still flowing. We are not directly impacted. But again, the situation is extremely volatile.

Speaker #4: Obviously with Safega, we only have the soft launch, but we expect to be fully operational here in the second half of the later in the second half of the year.

Speaker #4: It's an important staging area for us, and also, depending on how the regional situation continues to evolve. So far, we still have trade going into the Red Sea, and it's still flowing.

Speaker #4: We are not directly impacted, but again, the situation is extremely volatile.

Speaker #2: Thank you for that. Thank you, Martin. So, we have a question from Graham Hunt. Graham, please unmute locally and ask your question.

Ahmed Hazem Maher: Thank you for that. Thank you, Martin. We have a question from Graham Hunt. Graham, please unmute locally and ask your question.

Ahmed Hazem: Thank you for that. Thank you, Martin. We have a question from Graham Hunt. Graham, please unmute locally and ask your question.

Speaker #6: Hey, can you hear me okay?

Speaker #2: Yes. He's fine.

Graham Hunt: Hey, can you hear me okay?

Speaker #6: Perfect. Yes. And unfortunately, if Ross is not on, I had one question for Ross and one for Martin, but maybe, Martin, you'll have to take both.

Ahmed Hazem Maher: Yes. Please go ahead.

Ahmed Hazem: Yes. Please go ahead.

Graham Hunt: Perfect. Yes. Unfortunately, if Ross is not on, I had one question for Ross and one for Martin, but maybe Martin, you will have to take both. My question was really on the Brazil, the CLI acquisition. First part was, you talked about real upside potential to returns there. I just wondered if you would add a bit more color in terms of where you could see EBITDA going to from the aspect. What are the immediate near-term opportunities you see that you can really start flexing now or once it is in the group? Then second question just on CapEx. How should we think about that when CLI and the other acquisitions are in the base for 2027? Are you still comfortable? I know you reiterated the medium-term guidance, but is that on the basis of all these acquisitions also in the base?

Speaker #6: But my question was really on Brazil and the CLI acquisition. And the first part was, you talked about sort of real upside potential to returns there.

Speaker #6: I just wondered if you'd add a bit more color in terms of where you could see EBITDA going from the asset. What are the sort of immediate, near-term opportunities you see that you can really start flexing now?

Speaker #6: Or once it's in the group. And then second question, just on CapEx—how should we think about that when CLI and the other acquisitions are in the base for 2027?

Speaker #6: Are you still comfortable? I know you reiterated the medium-term guidance, but is that on the basis of all these acquisitions also being in the base?

Speaker #6: Yeah, just a little bit on that would be helpful for the CapEx run rate. Thanks.

Graham Hunt: Yeah, just a little bit on that would be helpful for the CapEx run rate. Thanks.

Speaker #2: Let me jump in, Graham. It's tricky to answer those questions because we haven't completed CLI, and we don't want to comment on future CapEx plans for the asset or what EBITDA uplift we could see from integrating it into the wider group.

Marc Hammoud: Let me jump in, Graham. It is tricky to answer those questions because we haven't completed CLI, and we don't want to comment on future CapEx plan for the asset or what EBITDA uplift we could see from integrating it into the wider group. Unfortunately, you'll have to bear with us another quarter until we actually complete the acquisition, and then we'll be in a better position to comment on those.

Speaker #2: So unfortunately, you'll have to bear with us for another quarter until we actually complete the acquisition, and then we'll be in a better position to comment on those.

Speaker #4: But just on the general comment on the CapEx, so what we mentioned in terms of the guidance four and a half to five billion this year, that includes the acquisitions.

Martin Aarup: But just on the general comment on the CapEx. What we mentioned in terms of guidance, AED 4.5 billion to AED 5 billion this year, that includes the acquisitions. But again, they will have limited impact because they will close in the end of the year. I want to stress again, it's a key focus area for us. We're very disciplined about the CapEx, and really make sure that we spend our money wisely. And in light of the situation that we're in, that we also try to face our CapEx in an optimal manner. That combined, again, with a strong focus on the cash flow generations which you have seen here in Q2 with a strong operating cash flow. That is something that is going to be a priority for us also over the next coming quarters.

Speaker #4: But again, they will have limited impact because they only close at the end of the year. Again, I want to stress that it's a key focus area for us to be very disciplined about the CapEx.

Speaker #4: And really make sure that we spend our money wisely. And in light of the situation that we're in, that we also try to phase our CapEx in an optimal manner.

Speaker #4: And that, combined again with a strong focus on cash flow generation, which you have seen here in Q2 with strong operating cash flow, is something that is going to be a priority for us also over the coming quarters.

Speaker #6: Understood. And maybe, as I've got the mic, just one follow-up. Last time you did a couple of big acquisitions, relative to the scale of the Group, you took a little bit of time to digest them.

Graham Hunt: Understood. And maybe, as I've got the mic, just one follow-up. Last time you did sort of a couple of big acquisitions relative to the scale of the group, you took a little bit of time to digest them. I appreciate it's very difficult to time these kind of opportunities. But are you feeling now, assuming all of these opportunities that we're looking at in the slide in front of us go through by the end of the year, do you anticipate a bit of a period of digestion as you look forward? Or just I guess I'm trying to understand how deep the pipeline of additional opportunities for your group you're still seeing at the moment, and what your appetite is for them.

Speaker #6: I appreciate it’s very difficult to time these kinds of opportunities, but are you feeling now, assuming all of these opportunities that we're looking at in the slide in front of us go through by the end of the year, do you anticipate a bit of a period of digestion?

Speaker #6: As you look forward, I guess I'm trying to understand how deep the pipeline of additional opportunities for your group you're still seeing at the moment.

Speaker #6: And what your appetite is for them.

Speaker #4: Yeah, I would say, as I mentioned, we have our hands full with the situation that is currently happening in the region. Again, the key focus for us in the next 6 to 12 months is getting these transactions closed and making sure that we do proper and timely integration, and that we reach the targeted synergies that we have outlined as part of these transactions.

Martin Aarup: Yeah. I would say as a management team, we have our hands full, right, with the situation that's currently happening in the region. And again, the key focus for us in the next six to 12 months is getting these transactions closed. Making sure that we do proper and timely integration and that we reap the targeted synergies that we have outlined as part of these transactions. And then again, as I mentioned, continued discipline, CapEx spend, focus on optimizing and the cash flow generation in our existing business until we have greater visibility in terms of the regional situation.

Speaker #4: And then again, as I mentioned, continue disciplined CapEx spend, focus on optimizing and the cash flow generation in our existing business until we have greater visibility in terms of the regional situation.

Speaker #6: Got it. Got it. Thank you.

Speaker #2: Thank you. We'll take our next question from Gaurav Shelar. Gaurav, please unmute locally and ask your question.

Graham Hunt: Got it. Thank you.

Ahmed Hazem Maher: Thank you. We will take our next question from Gaurav Shelar. Gaurav, please unmute locally and ask your question.

Ahmed Hazem: Thank you. We will take our next question from Gaurav Shelar. Gaurav, please unmute locally and ask your question.

Speaker #7: Hello. Am I audible?

Speaker #2: Hello. Yes, Gaurav, you're audible. Please go ahead.

Speaker #7: Yeah, so congratulations on a great set of numbers. I have a couple of questions. First, regarding the container feeders' rates: the volume has declined, but the rates have increased across the Indian Subcontinent and Red Sea.

Gaurav Shelar: Hello, am I audible?

[Analyst]: Hello, am I audible?

Ahmed Hazem Maher: Hello. Yes, Gaurav, you are audible. Please go ahead.

Ahmed Hazem: Hello. Yes, Gaurav, you are audible. Please go ahead.

Gaurav Shelar: Yeah. Congratulations on a great set of numbers. I have a couple of questions. First, regarding the container feeders rate. The volume has declined, but the rates have increased across Indian subcontinent and Red Sea. How sustainable do you expect the current rate environment to be through H2 2026, particularly given the favorable market condition that management expects? What rate and volume assumptions are you currently factoring into the H2 outlook? Second question is regarding the fleet size. I wanted an update on the fleet size and planned vessel additions through H2 2026 and 2027 and beyond. What expected delivery and development timelines will be? At what utilization rates do you expect to achieve these fleet expansions? Thank you.

[Analyst]: Yeah. Congratulations on a great set of numbers. I have a couple of questions. First, regarding the container feeders rate. The volume has declined, but the rates have increased across Indian subcontinent and Red Sea. How sustainable do you expect the current rate environment to be through H2 2026, particularly given the favorable market condition that management expects? What rate and volume assumptions are you currently factoring into the H2 outlook? Second question is regarding the fleet size. I wanted an update on the fleet size and planned vessel additions through H2 2026 and 2027 and beyond. What expected delivery and development timelines will be? At what utilization rates do you expect to achieve these fleet expansions? Thank you.

Speaker #7: So, how sustainable do you expect the current rate environment to be through the second half of 2026? Particularly given the favorable market conditions that management expects, and what rate and volume assumptions are you currently factoring into the second half outlook?

Speaker #7: The second question is regarding the fleet size. I wanted an update on the fleet size and planned vessel additions through the second half of 2026 and 2027, and beyond.

Speaker #7: And what expected delivery and development timelines will be, and at what utilization rates do you expect to achieve these fleet expats? Thank you.

Speaker #4: Yeah, these are a level of features that we are not guiding on in general. But a few comments—I think we highlighted that earlier in the call as well, in terms of the shipping rates.

Martin Aarup: Yeah. These are a level of details that we are not guiding on in general. A few comments, and I think we highlighted that earlier in the call as well in terms of the shipping rates. We have seen the momentum that came in Q2 going into July. We do expect the rates to be still elevated in the next couple of quarters. Again, to which extent is still a bit uncertain. That's certainly our base case. In terms of our fleet size, we're not guiding on that. I think in general, what we are doing is that we try to be agile and have flexibility and optionality in terms of being able to charter in and charter out vessels. That is something for the different asset classes that will impact the fleet size and the utilization.

Speaker #4: We have seen the momentum that Q2 had going into July. We do expect H2 to remain elevated in the next couple of quarters.

Speaker #4: Again, the extent to which is still a bit uncertain, but that's currently our base case. In terms of our fleet size, we're not guiding on that.

Speaker #4: I think in general, what we are doing is trying to be agile, and have flexibility and optionality in terms of being able to charter in and charter out vessels. That is something for the different asset classes that will impact the fleet size and the utilization.

Speaker #2: Thank you. We have a question coming from Anna Antonova. Again, a follow-up. Anna, please unmute locally.

Ahmed Hazem Maher: Thank you. We have a question coming from Anna Antonova. Again, a follow-up. Anna, please unmute locally.

Ahmed Hazem: Thank you. We have a question coming from Anna Antonova. Again, a follow-up. Anna, please unmute locally.

Speaker #5: Yes, thank you. I just have a quick follow-up question—a bit technical, but still. You talked about segmental EBITDA trends, but I just wanted to ask quickly about the corporate segment EBITDA, which is basically unallocated costs.

Anna Antonova: Yes. Thank you. I just have a quick follow-up question, a bit technical, but still. You talked about segmental EBITDA trends, but I just wanted to ask quickly about the corporate segment, EBITDA, which is basically unallocated costs. In the last couple of quarters, these costs were running at a -100, -150 million per quarter, but then we saw a spike to above 250 million in Q2. Could you please comment if this Q2 is a new normal run rate given all the recent M&As which may have added to the corporate costs, or are there any one-offs in the corporate costs in Q2? If this is the case, we can expect the Q2 run rates to normalize towards historically lower levels. Thank you.

Speaker #5: In the last couple of quarters, these costs were running at a negative $100 million to $150 million per quarter. But then we saw a spike to above $250 million in Q2.

Speaker #5: Could you please comment if this Q2 is a new normal run rate given all the recent M&As which may have added to the corporate costs or are there any one-offs in the corporate costs in Q2 and if we can then if this is the case, we can expect kind of the Q2 run rates to normalize towards kind of historically lower levels.

Speaker #5: Thank you.

Speaker #4: Yes, you are. If you're referring to the EBITDA, then there are a number of extraordinary costs associated both with the ongoing regional conflicts and also the M&A transactions that we have recently completed.

Martin Aarup: Yes. If you are referring to the EBITDA, then there are a number of extraordinary costs associated both with the ongoing regional conflict and also the M&A transactions that we have recently completed. Certainly, the amount that you saw in Q2 is not expected to be the run rate. I think if you would average out Q1 and Q2, then that is a good indication of the average for the coming quarters.

Speaker #4: Certainly, the amount that you saw in Q2 is not expected to be the run rate. I think if you average out Q1 and Q2, that's a good indication of the average for the coming quarters.

Speaker #5: Yes, I was talking about the adjusted EBITDA from the corporate segment as you presented in the notes to the financial statements. So, basically, a net impact of all the corporate revenues and costs and everything.

Anna Antonova: Yes. I was talking about just the EBITDA from the corporate segment as you presented in the notes to the financial statements. Basically net impact of all the corporate revenues and costs and everything. Thank you for the comment. I understand that Q2 is not a run rate and a bit lower run rate average of the first two quarters would be a bit more better reference point. Thank you.

Speaker #5: But thank you for the comment. So, I understand that Q2 is not a run rate, and a bit lower run rate. The average of the first two quarters would be a bit better reference point.

Speaker #5: Thank you.

Speaker #2: Okay, thank you. I don't think we have any questions left in the Q&A box or any raised hands. So, Mark Martin, back to you for any closing remarks.

Ahmed Hazem Maher: Okay. Thank you. I do not think we have any questions left in the Q&A box or raised hands. Marc, Martin, back to you for any closing remarks.

Ahmed Hazem: Okay. Thank you. I do not think we have any questions left in the Q&A box or raised hands. Marc, Martin, back to you for any closing remarks.

Speaker #3: Thank you, Ahmad. It's been a long week. And everyone is impatient to go on weekend. Thank you for attending the call. And we look forward to interacting with you in the next few weeks.

Marc Hammoud: Thank you, Ahmad. It has been a long week, and everyone is impatient to go on weekend. Thank you for attending the call, and we look forward to interacting with you in the next few weeks. We will be attending a few events in September. As I said, excited to talk more in details about our Q2 results and the rest of the year when we see you. Thank you, Ahmad. Thank you, EFG, for organizing the call, and have a nice evening for everyone.

Speaker #3: We'll be attending a few events in September. So, as I said, excited to talk more in detail about our Q2 results and the rest of the year when we see you.

Speaker #3: Thank you, Ahmad. Thank you, EFG, for organizing the call. Have a nice evening, everyone.

Ahmed Hazem Maher: Thank you, Martin, Marc, and Ross, and thank you everyone for attending. You may now disconnect.

Ahmed Hazem: Thank you, Martin, Marc, and Ross, and thank you everyone for attending. You may now disconnect.

Q2 2026 Abu Dhabi Ports Co PJSC Earnings Call

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