1
Supplementary Information
H1 2017
Financial Results
Global Interior
Solutions
d e p a . c o m
Operational Review
3 Depa Limited | Supplementary Information | H1 2017 Financial Results
Design Studio
Based in Singapore, focused on high-end hospitality, residential and commercial fit out and luxury furniture manufacturing
Revenue
EBIT
Financial highlights • Revenue flat year on year, driven by hospitality
and commercial sectors • EBIT impacted by project mix, restructuring
costs and foreign currency loss Operational highlights • Continues to see strength in hospitality and
commercial sectors • Seeking opportunities for expansion into Middle
East, Thailand and other international markets
178.0 179.1
0
100
200
H1 2016 H1 2017
20.4
6.6 0
15
30
H1 2016 H1 2017
4 Depa Limited | Supplementary Information | H1 2017 Financial Results
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
5 Depa Limited | Supplementary Information | H1 2017 Financial Results
Vedder
Based in Germany, Vedder is the world’s leading provider of fitout solutions for the global superyacht and private aircraft market
Revenue
EBIT
Financial highlights • Revenue increased 2% year on year • Profit of up 24% on H1 2016 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
0
100
200
H1 2016 H1 2017
13.4 16.5
0
15
30
H1 2016 H1 2017
6 Depa Limited | Supplementary Information | H1 2017 Financial Results
• 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
5 4 7 7
9 6
12
18
0
5
10
15
20
2011 2012 2013 2014 2015 2016 2017 2018
Number of 80 meter+ M/Y completed and scheduled deliveries: 2011-2018
0
10
20
30
40
50
2017 2018 2019 2020 2021 2022 2023
Two Years Five Years Six Years Ten Years
* The longer the refit cycle (e.g. 2 years, 5 years etc.) the more significant the refit
Refit forecast, 80 meter+ M/Y: 2017-2023*
Source: Superyacht Annual Report 2017
Superyacht market strong
7 Depa Limited | Supplementary Information | H1 2017 Financial Results
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
Operational highlights • UAE market continues to offer quality
opportunities • Major government contract win in Saudi Arabia • Mandarin Oriental project won in Dubai
Revenue
EBIT
319.0 362.9
0
200
400
H1 2016 H1 2017
6.7
112.1
0
75
150
H1 2016 H1 2017
8 Depa Limited | Supplementary Information | H1 2017 Financial Results
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*
*Source: Lodging Econometrics
9 Depa Limited | Supplementary Information | H1 2017 Financial Results
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
Revenue
EBIT
105.9 142.0
0
100
200
H1 2016 H1 2017
6.8 8.4 0
15
30
H1 2016 H1 2017
10 Depa Limited | Supplementary Information | H1 2017 Financial Results
5
1
2
8
12
12 0 10 20 30 40 50 60
13
12
14
19
26
116 020406080100120140
Repeat business driving Deco growth
• More than 70% of Deco’s pipeline is from repeat clients
• Developed a reputation as a specialist in luxury retail sector
• GCC is a key driver in the growth of the luxury retail market
• More than 200 shopping malls in the pipeline in GCC
Bahrain
Kuwait
Oman
Qatar
KSA
UAE
Standalone shopping mall Mixed use development with shopping mall No. No. Value
AEDmn Value
AEDmn
566
1,596
662
2,991
2,345
11,126
1,055
24
690
4,874
18,713
20,599
Shopping mall projects by country *
200 Standalone shopping mall projects
40 Mixed use developments with
shopping malls
+
Source: Ventures Onsite
Strategy Update
12 Depa Limited | Supplementary Information | H1 2017 Financial Results
Our Vision, Mission and Values How we work
We will encourage and practice open communication by sharing relevant information and ideas. We will trust and respect each other by promoting inclusive communication.
We will act honestly and respect ourselves, our colleagues and all company stakeholders.
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.
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.
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.
Integrity Transparency Accountability Professionalism Exceptional
Service
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
13 Depa Limited | Supplementary Information | H1 2017 Financial Results
DEPA INTERIORS
GROUP
DEPA GROUP
Key Business Units
DECO GROUP
DESIGN STUDIO VEDDER
Our Structure Depa Group
Middle East, Africa and India Asia Europe
Investments
JWICO
Lindner Middle East
The Parker Company
Decolight
14 Depa Limited | Supplementary Information | H1 2017 Financial Results
Hospitality Commercial
Private Aircraft
Cruise Liners
Transport Infrastructure
Cultural and Tourism Private Residences
Social Infrastructure
Residential
Luxury Retail
Superyachts
Our Sector Footprint
What we do
15 Depa Limited | Supplementary Information | H1 2017 Financial Results
2,500+ projects completed
Our Global Footprint Where we work
in 43
countries by our 6,947
employees
Asia Design Studio
Europe Vedder
Middle East Africa and India:
Depa Interiors Group
Deco Group
USA
16 Depa Limited | Supplementary Information | H1 2017 Financial Results
Notable achievements so far …
Established Depa as a Strategic
Management Company
Developed our new Vision,
Mission and Values
Formed a new
leadership team
Embedded a performance-driven culture
Introduced a more
rigorous approach
to cash management
Increased cooperation
between Key
Business Units
Improved work-
winning rate
Rewarded some major legacy
receivables
Introduced a new
approach to risk
management
3 5 2 1 6 4 7 8 9
$
17 Depa Limited | Supplementary Information | H1 2017 Financial Results
• Sustainable growth
• Cash backed profit
• Resolution of legacy projects
• Upgrading of management systems
• Strategic reviews
• Investigate new geographies and market sectors
• Seeking new opportunities for growth
> Return on equity
> Enhanced shareholder value creation
> Improved risk profile
> Delivery of projects
> Exceptional service for our clients
> Truly global interior solutions
Key priorities for H2 2017
Our focus for H2 2017 is on: Resulting in:
18 depa.com
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.
We live by our Values
19
Transparency
Integrity
Accountability
Professionalism
Exceptional Service