global interior solutions - london stock exchange · h1 2017 financial results global interior...

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


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


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


• 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


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


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


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


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


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


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


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


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


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

$


• 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

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