Slide 1: Depa PLC H1 2019 Financial Results
d e p a . c o m Depa PLC H1 2019 Financial Results 29 August 2019 Depa PLC | Financial Results | H1 2019 Global Interior Solutions
Slide 2: H1 2019 highlights
H1 2019 highlights Backlog of AED 2,088 Backlog • Up AED 198mn or 10% on H1 2018 • Supported by strong pipeline of opportunities AED 2,088mn • Secured significant commercial fit-out and social infrastructure projects in the Middle East and an interior fit-out for a new-build superyacht project Reven
Slide 3: Financial Review
Depa PLC H1 2019 Financial Results Financial Review Depa PLC | Financial Results | H1 2019 3
Slide 4: Summary income statement
Summary income statement AED mn H1 2019 H1 2018 Change • Revenue of AED 648.1mn, down AED Revenue 648.1 852.2 (204.1) 204.1mn year-on-year; negatively Expenses (722.8) (800.2) 77.4 impacted by increases to cost to complete on four major delayed UAE Net (provisions)/reversal of allowance for and KSA
Slide 5: Key operating group performance
Key operating group performance All figures in (AEDmn) Vedder Revenue EBIT EBIT Margin • Revenue growth: up 2% on H1 2018 to AED 164.5mn 200 30 20% • EBIT impacted by non-recurring warranty expense, 10% redundancy costs and legal case settlement of AED 100 161.3 164.5 15 20.1 12.4% 5.5mn 6.5 3.9% 0
Slide 6: Profit bridge
Profit bridge 50 5.5 8.0 8.5 59.3 10.2 (50) 81.0 (206.4) 16.1 1.0 (150) 31.4 18.6 3.9 2.9 10.2 2.7 10.3 (250) Vedder Non-recurring Depa Project delays Reversal of Provisions for Revision of Deco DSG Provisions for Write down Profit from Share of loss Amortisation Head office Reported H1 remaining wa
Slide 7: Summary balance sheet
Summary balance sheet AED mn H1 2019 FY 2018 Change Cash and bank balances 186.2 381.6 (195.4) • Cash balance of AED Trade and other receivables 683.8 730.1 (46.3) 186.2mn and positive Due from constuction contract customers 651.2 627.4 23.8 net cash (ex-restricted) of AED 19.8mn Inventories 50.9 41
Slide 8: Summary cash flow
Summary cash flow AED mn H1 2019 H1 2018 Change Operating activities (46.9) 64.1 (111.0) • Operating activities Working capital changes (42.9) (80.9) 38.0 impacted by DSG and Other movements (7.7) (15.6) 7.9 Depa Interiors operating Net cash flows from/(used in) operating activities (97.5) (32.4) (6
Slide 9: Working capital
Working capital Working capital balance 600 50% 436.1 • Increase primarily due to 328.3 deconsolidation of TPC and 320.2 324.6 AED mn 300 263.6 25% LME which had working 27.3% capital balances of negative 14.7% 17.8% 18.1% 18.0% AED 154.4mn at Dec-18 0 0% Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Free work
Slide 10: Operational Review
Depa PLC H1 2019 Financial Results Operational Review Depa PLC | Financial Results | H1 2019 10
Slide 11: GCEO's Group-wide operational review
GCEO’s Group-wide operational review Observations: Initiatives: Navigation of more difficult • De-risked balance sheet market conditions in 2 key • Enhancement of contract disputes team markets • Headcount reductions and cost saving initiatives • Increased representation on DSG board with two Depa e
Slide 12: Vedder
Vedder Based in Germany, Vedder is the world’s leading provider of fit-out solutions for the global superyacht, private jet and residence markets Financial highlights Revenue • Revenue: AED 164.5mn • EBIT: AED 6.4mn 200 • EBIT margin of 3.9% 100 161.3 164.5 • Results impacted by non-recurring warran
Slide 13: Depa Interiors
Depa Interiors The Middle East’s leading provider of interior solutions for the hospitality, residential, commercial, transport and civil infrastructure markets Financial highlights Revenue • Revenue: AED 217.6mn • EBIT: AED (129.6mn) 400 • Delays on a number of projects and provisions 200 312.2 for
Slide 14: Deco Group
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 Revenue • Revenue: AED 107.9mn • EBIT: AED 1.8mn 200 • H1 2019 EBIT negatively impacted by delay
Slide 15: DSG
DSG Singapore’s leading interior fit-out solutions provider and one of Asia’s fastest growing providers of joinery solutions Financial highlights Revenue • Revenue: AED 139.1mn • EBIT: AED (47.9mn) 400 • H1 2019 EBIT impacted by both provisions for 200 receivables and decreased revenue from 248.2 13
Slide 16: Backlog and Outlook
R e s u l t s Depa PLC H1 2019 Financial Results F i n a n c i a l Backlog and Outlook F Y 2 0 1 8 Depa PLC | Financial Results | H1 2019 16
Slide 17: Backlog
Backlog 2,500 2,500 2,109 Others 2,088 38 1,890 50 163 126 Deco Group AED mn 143 363 444 419 1,250 1,250 593 566 DSG 610 Vedder 952 952 668 Depa Interiors 0 0 Jun-18 Dec-18 Jun-19 Jun-18 Dec-18 Jun-19 By key business unit By project type By geography 22 126 457 444 566 362 566 126 1,043 244 502 566
Slide 18: Outlook
Outlook • The Group-wide outlook for the remainder of 2019 is mixed. Whilst Depa’s European business continues to benefit from a strong market and its market leading position, the market in the Middle East holds both structural challenges as well as opportunities. Whilst in Asia significant market o
Slide 19: Cautionary statement
Cautionary statement This document may contain 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