Global Interior Solutions
d e p a . c o m
Supplementary Information H1 2017 Financial Results 1
Operational Review
Design Studio Based in Singapore, focused on high-end hospitality, residential and commercial fit out and luxury furniture manufacturing
Financial highlights • Revenue flat year on year, driven by hospitality and commercial sectors • EBIT impacted by project mix, restructuring costs and foreign currency loss
Revenue 200 100
178.0
179.1
H1 2016
H1 2017
0
Operational highlights • Continues to see strength in hospitality and commercial sectors • Seeking opportunities for expansion into Middle East, Thailand and other international markets
EBIT 30 15
20.4 6.6
0
Depa Limited | Supplementary Information | H1 2017 Financial Results
H1 2016
H1 2017
3
Asia market steady and opportunities exist in new markets/sectors
• Singapore and Malaysia will remain Design Studio’s core markets for the foreseeable future • Other Asian markets – including Thailand, Sir Lanka and Indonesia – offer significant opportunities for expansion • Low cost-base, state-of-the-art manufacturing facilities in China represent a key competitive advantage • Exploring opportunities to expand export market to clients globally • Design Studio benefiting from increased co-operation with other Group Companies
Depa Limited | Supplementary Information | H1 2017 Financial Results
4
Vedder Based in Germany, Vedder is the world’s leading provider of fitout solutions for the global superyacht and private aircraft market
Financial highlights • Revenue increased 2% year on year • Profit of up 24% on H1 2016
Revenue 200 100
Operational highlights • Secured a major new-build motoryacht project along with a number of other smaller projects and refit works • Backlog at record level • Major private yacht project won in Germany
149.9
152.9
H1 2016
H1 2017
0
EBIT 30 15 13.4
16.5
0
Depa Limited | Supplementary Information | H1 2017 Financial Results
H1 2016
H1 2017
5
Superyacht market strong Number of 80 meter+ M/Y completed and scheduled deliveries: 2011-2018
• Vedder’s reputation for quality positions them as a leader in the 80 meter+ segment • 60 meter+ motoryachts represent a niche market that continues to grow • Contract values are significantly higher than for smaller superyachts • Vedder consistently securing larger contracts • Refit market offers significant potential – Vedder positioning to capitalise on opportunities • The refit market is expected to see higher value projects due to the increase in longer refit cycles • Luxury private residential market is a major opportunity for the business
18
20
12
15 10 5
5
4
9
7
7
2013
2014
6
0 2011
2012
2015
2016
2017
2018
Refit forecast, 80 meter+ M/Y: 2017-2023* 50 40 30 20 10 0 2017
2018 Two Years
2019
2020
Five Years
2021 Six Years
2022
2023
Ten Years
* The longer the refit cycle (e.g. 2 years, 5 years etc.) the more significant the refit Depa Limited | Supplementary Information | H1 2017 Financial Results
Source: Superyacht Annual Report 2017
6
Depa Interiors Group
The Middle East’s leading provider of interior solutions for the high-end hospitality, residential and commercial market
Financial highlights • Revenue up by 14% on H1 2016 • Revenue and EBIT improvement due to sound operational performance and resolution of legacy items
Revenue 400 200
319.0
362.9
0
Operational highlights • UAE market continues to offer quality opportunities • Major government contract win in Saudi Arabia • Mandarin Oriental project won in Dubai
H1 2016
EBIT 150 112.1
75 0
Depa Limited | Supplementary Information | H1 2017 Financial Results
H1 2017
6.7 H1 2016
H1 2017
7
Expo 2020 driving opportunities
• Expo 2020 offers significant opportunities – directly (at Expo site) and indirectly (hotels etc.) • 700,000 square meters of pavilions and other venues to be built for 182 exhibitors • 500,000 square meters of permanent structures including apartments, malls, hotels and warehousing to be built • Up to AED 11 billion of Expo 2020 projects to be awarded this year • Hotel pipeline in the GCC has increased by 13% year on year* • Dubai by far the largest market, with 125 projects (35,882 rooms) under construction* • 117 new hotel projects in the GCC the next 12 months, up 41% year on year* Depa Limited | Supplementary Information | H1 2017 Financial Results
*Source: Lodging Econometrics
8
Deco Group
The Middle East’s leading provider of interior solutions for the luxury retail market, premium marble supply and installation, and high-quality furniture and joinery works Financial highlights • Progress on major projects has contributed to strong revenue growth – revenue up 34% on H1 2016 • EBIT up 24% to AED 8.4mn, margin maintained on H1 2016 Operational highlights • Handover of largest project to date – Robinson’s Department Store, Dubai Festival City • Secured 3 luxury retail stores in Dubai • Carrara consolidation to contribute more than AED1.8mn of per annum cost savings Depa Limited | Supplementary Information | H1 2017 Financial Results
Revenue 200 100
105.9
142.0
H1 2016
H1 2017
0
EBIT 30 15 0
6.8
8.4
H1 2016
H1 2017
9
Repeat business driving Deco growth
200 + 40
• More than 70% of Deco’s pipeline is from repeat clients
Standalone shopping mall projects
• Developed a reputation as a specialist in luxury retail sector • GCC is a key driver in the growth of the luxury retail market
Mixed use developments with shopping malls
• More than 200 shopping malls in the pipeline in GCC Shopping mall projects by country * Standalone shopping mall Value AEDmn
Mixed use development with shopping mall No.
No.
Value AEDmn
566
13
Bahrain
1,596
12
Kuwait
1
24
662
14
Oman
2
690
19
2,991 11,126
116 140
120
100
80
60
40
20
1,055
8
Qatar
26
2,345
5
4,874
KSA
12
18,713
UAE
12
20,599
0
Depa Limited | Supplementary Information | H1 2017 Financial Results
0
10
20
30
40
50
60 Source: Ventures Onsite
10
Strategy Update
Our Vision, Mission and Values How we work
Our Vision
To be leaders in Global Interior Solutions
Our Mission
To deliver sustainability, profitability and performance for our clients, shareholders and employees.
Our Values Transparency We will encourage and practice open communication by sharing relevant information and ideas. We will trust and respect each other by promoting inclusive communication.
Integrity We will act honestly and respect ourselves, our colleagues and all company stakeholders.
Accountability We will take ownership and responsibility for our actions with a positive attitude. We will each commit to what we are responsible for. We will take a can-do approach to all of our tasks.
Depa Limited | Supplementary Information | H1 2017 Financial Results
Professionalism We will be consistently productive by working together as a team, sharing knowledge, innovating, collaborating, inspiring and enhancing the overall business. We will embrace and welcome change as a catalyst for creating opportunities. We will work to identify and eliminate risks.
Exceptional Service By building strong, sustainable and healthy relationships we will deliver on our promise and enhance our reputation and credibility. We will stay motivated and focused to provide competitive solutions tailored for our clients.
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Our Structure Depa Group DEPA GROUP
Key Business Units Middle East, Africa and India
Asia
Investments Europe
JWICO
DESIGN STUDIO
DEPA INTERIORS GROUP
VEDDER
Lindner Middle East
The Parker Company DECO GROUP
Decolight
Depa Limited | Supplementary Information | H1 2017 Financial Results
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Our Sector Footprint
What we do
Luxury Retail
Superyachts
Hospitality
Residential
Commercial
Transport Infrastructure
Private Aircraft
Social Infrastructure
Private Residences
Cultural and Tourism
Depa Limited | Supplementary Information | H1 2017 Financial Results
Cruise Liners
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Our Global Footprint Where we work Europe Vedder
USA Middle East Africa and India: Depa Interiors Group Deco Group
2,500+
projects completed
in
Depa Limited | Supplementary Information | H1 2017 Financial Results
43
countries
Asia Design Studio
by our
6,947
employees 15
Notable achievements so far ‌
Developed our new Vision, Mission and Values
1 Established Depa as a Strategic Management Company
2
Embedded a performancedriven culture
3
4
Formed a new leadership team
Depa Limited | Supplementary Information | H1 2017 Financial Results
$
Increased cooperation between Key Business Units
5
6
Introduced a more rigorous approach to cash management
Introduced a new approach to risk management
7 Improved workwinning rate
8
9 Rewarded some major legacy receivables
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Key priorities for H2 2017 Our focus for H2 2017 is on: •
Sustainable growth
•
Cash backed profit
•
Resolution of legacy projects
•
Upgrading of management systems
• •
•
Strategic reviews Investigate new geographies and market sectors
Resulting in: >
Return on equity
>
Enhanced shareholder value creation
>
Improved risk profile
>
Delivery of projects
>
Exceptional service for our clients
>
Truly global interior solutions
Seeking new opportunities for growth
Depa Limited | Supplementary Information | H1 2017 Financial Results
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Cautionary statement This document contains certain 'forward looking statements' with respect to Depa's financial condition; results of operations and business; and certain of Depa's plans and objectives with respect to these items. By their very nature, forward looking statements are inherently unpredictable, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that may occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward looking statements. All written or verbal forward looking statements, made in this document or made subsequently, which are attributable to Depa or any other member of the Group or persons acting on their behalf are expressly qualified on this basis. Depa does not intend to update these forward looking statements.
depa.com
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We live by our Values
Transparency Integrity Accountability Professionalism Exceptional Service
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