Global Interior Solutions

Transcription

1 Global Interior Solutions d e p a. c o m Supplementary Information H1 217 Financial Results 1

2 Operational Review

3 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 Operational highlights Continues to see strength in hospitality and commercial sectors Seeking opportunities for expansion into Middle East, Thailand and other international markets Revenue H1 216 H1 217 EBIT H1 216 H

4 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 4

5 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 216 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 Revenue H1 216 H1 217 EBIT H1 216 H

6 Superyacht market strong Vedder s reputation for quality positions them as a leader in the 8 meter+ segment 6 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 Number of 8 meter+ M/Y completed and scheduled deliveries: Refit forecast, 8 meter+ M/Y: * Two Years Five Years Six Years Ten Years 18 * The longer the refit cycle (e.g. 2 years, 5 years etc.) the more significant the refit Source: Superyacht Annual Report 217 6

7 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 216 Revenue Revenue and EBIT improvement due to sound operational performance and resolution of legacy items Operational highlights H1 216 H1 217 UAE market continues to offer quality opportunities Major government contract win in Saudi Arabia Mandarin Oriental project won in Dubai EBIT H1 216 H

8 Expo 22 driving opportunities Expo 22 offers significant opportunities directly (at Expo site) and indirectly (hotels etc.) 7, square meters of pavilions and other venues to be built for 182 exhibitors 5, square meters of permanent structures including apartments, malls, hotels and warehousing to be built Up to AED 11 billion of Expo 22 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 8

9 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 216 EBIT up 24% to AED 8.4mn, margin maintained on H1 216 Operational highlights Handover of largest project to date Robinson s Department Store, Dubai Festival City Secured 3 luxury retail stores in Dubai Revenue H1 216 H1 217 EBIT Carrara consolidation to contribute more than AED1.8mn of per annum cost savings H1 216 H

10 Repeat business driving Deco growth More than 7% 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 2 shopping malls in the pipeline in GCC 2 Standalone shopping mall projects + 4 Mixed use developments with shopping malls Shopping mall projects by country * Value AEDmn 566 1, ,991 2,345 11,126 Standalone shopping mall No. Bahrain Kuwait Oman Qatar KSA UAE Mixed use development with shopping mall No Value AEDmn 1, ,874 18,713 2, Source: Ventures Onsite 1

11 Strategy Update

12 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 Integrity Accountability Professionalism 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. 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. 12

13 Our Structure Depa Group DEPA GROUP Key Business Units Middle East, Africa and India Asia Europe Investments JWICO DEPA INTERIORS GROUP DESIGN STUDIO VEDDER Lindner Middle East DECO GROUP The Parker Company Decolight 13

14 Our Sector Footprint What we do Hospitality Residential Commercial Luxury Retail Transport Infrastructure Private Aircraft Social Infrastructure Superyachts Private Residences Cultural and Tourism Cruise Liners 14

15 Our Global Footprint Where we work Europe Vedder USA Middle East Africa and India: Depa Interiors Group Deco Group Asia Design Studio 2,5+ projects completed in 43 countries by our 6,947 employees 15

16 Notable achievements so far Developed our new Vision, Mission and Values Embedded a performancedriven culture $ Increased cooperation between Key Business Units Introduced a new approach to risk management Established Depa as a Strategic Management Company Formed a new leadership team Introduced a more rigorous approach to cash management Improved workwinning rate Rewarded some major legacy receivables 16

17 Key priorities for H2 217 Our focus for H2 217 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 17

18 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 18

19 We live by our Values Transparency Integrity Accountability Professionalism Exceptional Service 19