Confidential
Semi Annual 2009
Depa United Group Dubai, UAE
CONTENTS
Results Overview Revenues and Seasonality Market Segment Overview Geographical Overview and New Markets Backlog and New Contracts Industry Dynamics Share Buyback Financial Review 2009 Expectations and Beyond
1
H1 2009 OVERVIEW (1/2) Top and bottom line growth reinforce full year growth expectations
49% revenue growth over H108
Revenues
+49%
65% profit growth over H108
1,107.6
741.1
Margin expansion to 8.3% in H109 from 7.5% in H108 AED 2.6 billion in diversified backlog over geographies and
H1-08
Client payments in line with contractual terms
Net Profit
market segments
G&A expenses reduced as a percentage of revenues, to 7.7% in
+65%
H1-09
91.7
H109 from 9.9% in H108
55.6
No client or contract accounts for more than 8% of backlog H1-08
H1-09 AED Million
2
H1 2009 OVERVIEW (2/2) Successful in diversifying geographically and decreasing our dependence on hospitality Revenue Breakdown by geography H108
Geographical diversification –
Portion of revenues and profits from Dubai decreased
–
Portion of revenues and profits from Abu Dhabi increased
–
Portion of revenues and profits from Asia increased
H109
3% 14 %
20 %
14 %
72 %
77 %
UAE revenues represented 72% of total group revenues compared to 77% in H108
Revenue Breakdown by sector
Market sector diversification –
Portion of revenues and profits from hospitality decreased
–
Portion of revenues and profits from infrastructure increased
–
Portion of revenues and profits from theming increased
H108
H109
2%
6% 9%
7% 12% 11%
65%
8% 5%
53%
19%
Hospitality projects represented about 53% of total
3%
revenues compared to 65% in H108
3
CONTENTS
Results Overview Revenues and Seasonality Market Segment Overview Geographical Overview and New Markets Backlog and New Contracts Industry Dynamics Share Buyback Financial Review 2009 Expectations and Beyond
4
DECREASE IN SEASONALITY As committed, the Company has seen a decrease in seasonality of revenues and profits Revenue & Seasonality
Revenue split at 43% - 57% for H109 vs
+30%
FY09, compared to the historical 37% - 63% split
compared to the historical 25% - 75% split
Seasonality decreased mainly due to clearing
variations and claims with clients more evenly throughout the year
Net profit margins experienced in the first half of the
57% 63%
Projected
Net profit split at 31% - 69% split for H109 vs FY09
H2 H1
43%
37% 2008
2009
Net Profit & Seasonality
year are typically lower than those of the full year – last years figures of 7.5% vs. 11.3% for H108 vs. FY08 respectively therefore we expect similar margin comparisons between H109 of 8.3% and FY09
+30% Projected
69% 75%
25% 2008 Source:
31%
H2 H1
2009 5
CONTENTS
Results Overview Revenues and Seasonality Market Segment Overview Geographical Overview and New Markets Backlog and New Contracts Industry Dynamics Share Buyback Financial Review 2009 Expectations and Beyond
6
SIGNIFICANT GROWTH IN INFRASTRUCTURE Infrastructure-focused JV posts an increase of 817% in revenues
Infrastructure continues to be a key area of focus Governments aggressive commitments and spending
Linder Depa Revenues
+817%
212.8 million compared to AED 23.3 million in H108
+2216% 212.8
have led to infrastructure boom in economic downturn
817% increase in revenues for Lindner Depa to AED
Linder Depa Profit (Before MI)
23.2 H1-08
35.6
1.5 H1-09
H1-08
AED 35.6 million profit for Lindner Depa in H109
H1-09 AED Million
compared to AED 1.5 million in H108
Infrastructure / Hospital Projects
Revenues and profits are primarily from work on the Dubai Metro – Red Line stations
Pipeline for hospitals and infrastructure projects has grown significantly
Dubai Metro – Redline Dubai, UAE Due: 2009
Dubai Metro – Green Line Dubai, UAE Due: TBA
Qatar Robotic Surgery Centre Doha, Qatar Due: 2010
Burj Dubai Medical Centre Dubai, UAE Due: 2009
7
THEMING WORK GROWING IN REGION An increase in theming work in the region has spurred growth for Mivan Depa
40% increase in Mivan Depa revenues, focused on
Mivan Depa Revenues
museums and theming work
Some of the projects undertaken include the Ferrari
+40%
World theme park on Yas Island and the Arcapita building in Bahrain
50.7
36.1
With upcoming museum projects on Saadiyat
Island, such as the Louvre Abu Dhabi and the Guggenhiem Museum, we anticipate strong demand in the near future
H1-08
H1-09
Theming Projects Ferrari Experience – Yas Island Abu Dhabi, UAE Due: TBA
Ferrari F35 – Yas Island Abu Dhabi, UAE Due: TBA
Ferrari F30 Scenic Fabrication Abu Dhabi, UAE Due: 2010
8
CONTENTS
Results Overview Revenues and Seasonality Market Segment Overview Geographical Overview and New Markets Backlog and New Contracts Industry Dynamics Share Buyback Financial Review 2009 Expectations and Beyond
9
STRONG PERFORMANCE IN HIGH-GROWTH MARKETS Significant growth and increased presence in Saudi Arabia and Abu Dhabi
321% increase in revenues for Depa Saudi Arabia to AED 20.2
million compared to AED 4.8 million for the same period last year
Depa Saudi Arabia Revenues
+321% 20.2
Depa Saudi Arabia has become a profit generating entity and recorded a net profit of AED 3.7 million
In Saudi Arabia, we foresee an increase in demand for hospitality
and infrastructure projects as the country doubles its tourists from 47 million in 2008 to 88 million by 2020
4.8
H1-08
H1-09
362% increase in revenues for Depa Abu Dhabi in H109 to AED 97 million compared to AED 21 million in H108
Depa Abu Dhabi posted net profit of AED 16.2 million in H109 compared to AED 0.2 million in H108
Depa Abu Dhabi Revenues
+362%
97.0
Looking forward, we will continue to grow in Abu Dhabi as the city undertakes major hospitality and infrastructure projects
21.0 H1-08
H1-09
SOLID GROWTH IN ASIAN OPERATIONS We have had strong growth in Asia as well as diversification across the world
Depa Design Studio (DDS) posted revenues of AED 54.3 million
562% growth in net income from Asian entities to AED
Total Asian Net Profit
Depa Design Studio Net Profit
n/a
4.4
+562%
8.6
8.6 million in H109 as compared to AED 1.3 million in H108
Projects in Singapore included the fit-out of an
entertainment venue at Resorts World ‘RWS’ and Marina Bay Sands
1.3
(0.3)
H1-08
H1-08
H1-09
H1-09
Landmark projects signed to-date in Singapore provide
sufficient backlog for the coming periods and we expect to secure other prestigious projects Angola
In Jordan, we established a presence in interior
contracting market and have worked on some mock-up rooms in order to pursue contracts there
New
In Africa, we entered the Angolan market by signing a contract to fit out guest rooms and public areas of the Talatona Convention Centre Hotel in Luanda, Angola
11
CONTENTS
Results Overview Revenues and Seasonality Market Segment Overview Geographical Overview and New Markets Backlog and New Contracts Industry Dynamics Share Buyback Financial Review 2009 Expectations and Beyond
12
JUNE 30th 2009 BACKLOG Backlog entirely consisting of projects at the advanced construction stage worth 2.6 billion
Backlog as of June 30, 2009
Ongoing Projects
Bahrain Qatar
Palazzo Versace Hotel Dubai, UAE Due: April 2010
El Nile Hotel Kempinski Cairo Egypt Due: Sept 2009
Ministry of Defence Jeddah, Saudi Arabia Due: April 2009
Marina Bay Sands Singapore Due: Dec 2009
Ralph Lauren Boutique Dubai, UAE Due: Dec 2010
Infrastructure Abu Dhabi, UAE Due: Dec 2010
MY Swift 141 – Yacht Dubai, UAE Due: April 2009
Mazagan Resort Villas El Jadida, Morocco Due: June 2010
Singapore
Estimated Backlog <AED 100 M AED 100 - 200 M >AED 200 M
13
KEY BACKLOG PROJECTS
14
CONTENTS
Results Overview Revenues and Seasonality Market Segment Overview Geographical Overview and New Markets Backlog and New Contracts Industry Dynamics Share Buyback Financial Review 2009 Expectations and Beyond
15
INDUSTRY DYNAMICS We continue to be one of the most diversified companies with
DEPA vs. Peers
revenues coming from 17 countries
We are in growth mode and our recent revenue growth of 48% is unmatched by any of our competitors
Despite the current economic situation, we remain a profitable firm with net profit margin of about 10%
Our involvement in different sectors such as
infrastructure, yacht, health, and government has enabled us to outperformed our competitors
Our effective business structure has enabled us to have one of the lowest tax rates relatives to our peers
We remain one of the most cash rich companies in our industry
16
CONTENTS
Results Overview Revenues and Seasonality Market Segment Overview Geographical Overview and New Markets Backlog and New Contracts Industry Dynamics Share Buyback Financial Review 2009 Expectations and Beyond
17
SHARE BUYBACK UPDATE Approximately 8.2 million shares bought back from Dec 2008 to Apr 2009 3,500
No. of Shares Repurchased 3.26m
No. of Shares Repurchased
2,500
2.3m
1.95m
2,000
Share Price
Number 0f Shares (Thousands)
3,000
1.5m 1,500
1,000
1.41m
0.83m
0.71m
500
Dec
Jan
Feb
Mar
Apr
May
June Currency: USD
18
CONTENTS
Results Overview Revenues and Seasonality Market Segment Overview Geographical Overview and New Markets Backlog and New Contracts Industry Dynamics Share Buyback Financial Review 2009 Expectations and Beyond
19
H109 FINANCIAL SUMMARY Healthy increase in both Income Statement and Balance Sheet
Selected Balance Sheet Data
Selected Income Statement Data 1108
3,343 931
H108
2,915
H109 741
2,283 2,094
611
1,834
H108
1,675
1,509
H109 1,241
176 74
84
G&A
131
Contract Profit
Contract Cost
Contract Income
Current Assets
Total Assets
Total Equity
Total Liabilities
AED Million
20
ON-TIME PAYMENTS SECURED BY INTâ&#x20AC;&#x2122;L CONTRACTORS Our clients continue to pay within contractual terms Trades Payable and AP days
Our AP days have declined due to acquisitions which have different payment structures to us
Days Receivable & Payable
Trades Payable and AP days
Our AR days excluding unbilled revenues have remained
181.0
192.0
159.4
stable over the last few years
100.6 80.5
78.7
66.0
51.0 61.4
55.8
2007
2008
63.1
38.1 2006
H109
AR Days - excluding unbilled revenues AR Days - including unbilled revenues AP Days
21
FINANCIAL OVERVIEW
Income Statement
Balance Sheet H1-2009
H1-2008 AED million
Contract Income
1,107.6
741.1
Contract Cost
(931.3)
(610.5)
Contract Profit
176.3
130.6
(84.8)
(73.6)
General & Administrative expenses Gain on acquisition of Subsidiary Other Income / (expense) Finance income / (cost) net Share of profit / (loss) from associates
10.0
6.1
8.2
(0.5)
6.1
3.4
Net profit before tax
115.8
66.0
Income Tax
(2.5)
(1.3)
Net profit
113.3
64.7
Equity holders of parent
91.7
55.6
Minority Interest
21.6
9.1
H1-2009
H1-2008 AED million
Property, plant and equipment
327.8
220.2
Total current assets
2,283.2
2,093.6
Total assets
3,342.9
2,915.3
Total equity
1,827.4
1,674.8
Total liabilities
1,515.5
1,240.5
Attributed to:
22
FINANCIAL OVERVIEW Cash Flows
Net cash used in operating activities Net cash used in investing activities Net cash provided from financing activities Cash and cash equivalents Beginning cash and cash equivalents Ending cash and cash equivalents Net increase (decrease) in cash and cash equivalents
Financial Data and Ratios H1-2009
H1-2008 AED million
(26.8)
173.2
(4.2)
(116.3)
(156.0)
932.5
H1-2009
H1-2008 AED million
EBITDA
133.6
91.1
EBIT
112.2
75.8
Adjusted EBITDA
117.5
81.6
Adjusted EBIT
96.1
66.3
48
69.9
Net Capital Expenditure
738.7
0
551.7
989.4
(187.0)
989.4
Indebtedness H1-2009
H1-2008 AED million
Cash and Bank balances (A)*
551.7
989.3
Bank Loans (B)
315.4
431.5
Current (C)
214.7
197.3
Non-current (D)
100.7
234.2
337.0
792
451.0
755.1
236.3
555.8
Total current net indebtedness (A-C) Total non-current net indebtedness (A-D) Total net indebtedness (A-B)
23
CONTENTS
Results Overview Revenues and Seasonality Market Segment Overview Geographical Overview and New Markets Backlog and New Contracts Industry Dynamics Share Buyback Financial Review 2009 Expectations and Beyond
24
2009 EXPECTATIONS AND BEYOND
30% revenue growth 30% profit growth Diversification away from Dubai and hospitality 2010 double digit growth
25