Semi Annual Presentation 2009
Post on 11-Mar-2016
214 Views
Preview:
DESCRIPTION
Transcript
Semi Annual 2009
Confidential
Depa United GroupDubai, UAE
CONTENTS
Results Overview
Revenues and Seasonality
Market Segment Overview
Geographical Overview and New Markets
Backlog and New Contracts
1
Backlog and New Contracts
Industry Dynamics
Share Buyback
Financial Review
2009 Expectations and Beyond
H1 2009 OVERVIEW (1/2)Top and bottom line growth reinforce full year growth expectations
H1-08
+49%
H1-09
741.1
1,107.6
Revenues� 49% revenue growth over H108
� 65% profit growth over H108
� Margin expansion to 8.3% in H109 from 7.5% in H108
� AED 2.6 billion in diversified backlog over geographies and
2
H1-08 H1-09
AED Million
H1-09
55.6
H1-08
Net Profit
+65%91.7
� AED 2.6 billion in diversified backlog over geographies and market segments
� Client payments in line with contractual terms
� G&A expenses reduced as a percentage of revenues, to 7.7% in H109 from 9.9% in H108
� No client or contract accounts for more than 8% of backlog
H1 2009 OVERVIEW (2/2)Successful in diversifying geographically and decreasing our dependence on hospitality
� Geographical diversification
– Portion of revenues and profits from Dubai decreased
– Portion of revenues and profits from Abu Dhabi increased
– Portion of revenues and profits from Asia increased
� UAE revenues represented 72% of total group revenues compared to 77% in H108
Revenue Breakdown by geography
H108 H109
3%
20%
77%
14%
14%
72%
3
revenues compared to 77% in H108
� Market sector diversification
– Portion of revenues and profits from hospitality decreased
– Portion of revenues and profits from infrastructure increased
– Portion of revenues and profits from theming increased
� Hospitality projects represented about 53% of total revenues compared to 65% in H108
H108 H109
Revenue Breakdown by sector
53%
19%
5%
8%
9%6%
65%
3%
11%
12%
2%
7%
CONTENTS
Results Overview
Revenues and Seasonality
Market Segment Overview
Geographical Overview and New Markets
Backlog and New Contracts
4
Backlog and New Contracts
Industry Dynamics
Share Buyback
Financial Review
2009 Expectations and Beyond
DECREASE IN SEASONALITYAs committed, the Company has seen a decrease in seasonality of revenues and profits
� Revenue split at 43% - 57% for H109 vsFY09, compared to the historical 37% - 63% split
� Net profit split at 31% - 69% split for H109 vs FY09 compared to the historical 25% - 75% split
� Seasonality decreased mainly due to clearing variations and claims with clients more evenly
Revenue & Seasonality
H2
H137%
63%
43%
57%
Pro
jecte
d
+30%
5Source:
variations and claims with clients more evenly throughout the year
� Net profit margins experienced in the first half of the year are typically lower than those of the full year – last years figures of 7.5% vs. 11.3% for H108 vs. FY08 respectively therefore we expect similar margin comparisons between H109 of 8.3% and FY09
2008 2009
2008 2009
Net Profit & Seasonality
H2
H1
25%
75%
31%
69%
Pro
jecte
d
+30%
CONTENTS
Results Overview
Revenues and Seasonality
Market Segment Overview
Geographical Overview and New Markets
Backlog and New Contracts
6
Backlog and New Contracts
Industry Dynamics
Share Buyback
Financial Review
2009 Expectations and Beyond
SIGNIFICANT GROWTH IN INFRASTRUCTUREInfrastructure-focused JV posts an increase of 817% in revenues
H1-09
1.5
H1-08
Linder DepaProfit (Before MI)
+2216% 35.6
H1-08
+817%
H1-09
23.2
212.8
Linder DepaRevenues� Infrastructure continues to be a key area of focus
� Governments aggressive commitments and spending have led to infrastructure boom in economic downturn
� 817% increase in revenues for Lindner Depa to AED 212.8 million compared to AED 23.3 million in H108
7
H1-09H1-08H1-08 H1-09
AED Million� AED 35.6 million profit for Lindner Depa in H109 compared to AED 1.5 million in H108
� Revenues and profits are primarily from work on the Dubai Metro – Red Line stations
� Pipeline for hospitals and infrastructure projects has grown significantly
Infrastructure / Hospital Projects
Qatar Robotic Surgery Centre
Doha, Qatar
Due: 2010
Burj Dubai
Medical Centre
Dubai, UAE
Due: 2009
Dubai Metro –
Redline
Dubai, UAE
Due: 2009
Dubai Metro –
Green Line
Dubai, UAE
Due: TBA
THEMING WORK GROWING IN REGIONAn increase in theming work in the region has spurred growth for Mivan Depa
� 40% increase in Mivan Depa revenues, focused on museums and theming work
� Some of the projects undertaken include the Ferrari World theme park on Yas Island and the Arcapitabuilding in Bahrain
� With upcoming museum projects on SaadiyatIsland, such as the Louvre Abu Dhabi and the
H1-08
+40%
H1-09
36.1
50.7
Mivan DepaRevenues
8
Island, such as the Louvre Abu Dhabi and the Guggenhiem Museum, we anticipate strong demand in the near future
H1-08 H1-09
Theming Projects
Ferrari F30 Scenic Fabrication
Abu Dhabi, UAE
Due: 2010
Ferrari Experience – YasIsland
Abu Dhabi, UAE
Due: TBA
Ferrari F35 –Yas Island
Abu Dhabi, UAE
Due: TBA
CONTENTS
Results Overview
Revenues and Seasonality
Market Segment Overview
Geographical Overview and New Markets
Backlog and New Contracts
9
Backlog and New Contracts
Industry Dynamics
Share Buyback
Financial Review
2009 Expectations and Beyond
STRONG PERFORMANCE IN HIGH-GROWTH MARKETSSignificant growth and increased presence in Saudi Arabia and Abu Dhabi
H1-08
+321%
H1-09
4.8
20.2
Depa Saudi ArabiaRevenues� 321% increase in revenues for Depa Saudi Arabia to AED 20.2
million compared to AED 4.8 million for the same period last year
� Depa Saudi Arabia has become a profit generating entity and recorded a net profit of AED 3.7 million
� In Saudi Arabia, we foresee an increase in demand for hospitality and infrastructure projects as the country doubles its tourists from 47 million in 2008 to 88 million by 2020
H1-09
21.0
H1-08
Depa Abu Dhabi Revenues
+362% 97.0
� 362% increase in revenues for Depa Abu Dhabi in H109 to AED 97 million compared to AED 21 million in H108
� Depa Abu Dhabi posted net profit of AED 16.2 million in H109 compared to AED 0.2 million in H108
� Looking forward, we will continue to grow in Abu Dhabi as the city undertakes major hospitality and infrastructure projects
SOLID GROWTH IN ASIAN OPERATIONS We have had strong growth in Asia as well as diversification across the world
� Depa Design Studio (DDS) posted revenues of AED 54.3 million
� 562% growth in net income from Asian entities to AED 8.6 million in H109 as compared to AED 1.3 million in H108
� Projects in Singapore included the fit-out of an entertainment venue at Resorts World ‘RWS’ and Marina Bay Sands
�
H1-08
n/a
H1-09
(0.3)
4.4
Depa Design StudioNet Profit
H1-08
+562%
H1-09
1.3
8.6
Total AsianNet Profit
11
� Landmark projects signed to-date in Singapore provide sufficient backlog for the coming periods and we expect to secure other prestigious projects
� In Jordan, we established a presence in interior contracting market and have worked on some mock-up rooms in order to pursue contracts there
� In Africa, we entered the Angolan market by signing a contract to fit out guest rooms and public areas of the Talatona Convention Centre Hotel in Luanda, Angola
New
Angola
CONTENTS
Results Overview
Revenues and Seasonality
Market Segment Overview
Geographical Overview and New Markets
Backlog and New Contracts
12
Backlog and New Contracts
Industry Dynamics
Share Buyback
Financial Review
2009 Expectations and Beyond
Palazzo Versace Hotel
Dubai, UAE
Due: April 2010
Ongoing Projects
Ministry of Defence
Jeddah, Saudi Arabia
Due: April 2009
Marina Bay Sands
Singapore
Due: Dec 2009
El Nile Hotel Kempinski
Cairo Egypt
Due: Sept 2009
JUNE 30th 2009 BACKLOGBacklog entirely consisting of projects at the advanced construction stage worth 2.6 billion
Backlog as of June 30, 2009
BahrainQatar
13
Ralph Lauren Boutique
Dubai, UAE
Due: Dec 2010
MY Swift 141 – Yacht
Dubai, UAE
Due: April 2009
Infrastructure
Abu Dhabi, UAE
Due: Dec 2010
Mazagan Resort Villas
El Jadida, Morocco
Due: June 2010
Singapore
AED 100 - 200 M
>AED 200 M
<AED 100 M
Estimated Backlog
KEY BACKLOG PROJECTS
14
CONTENTS
Results Overview
Revenues and Seasonality
Market Segment Overview
Geographical Overview and New Markets
Backlog and New ContractsBacklog and New Contracts
Industry Dynamics
Share Buyback
Financial Review
2009 Expectations and Beyond
15
INDUSTRY DYNAMICS
� We continue to be one of the most diversified companies with revenues coming from 17 countries
� We are in growth mode and our recent revenue growth of 48% is unmatched by any of our competitors
� Despite the current economic situation, we remain a profitable firm with net profit margin of about 10%
� Our involvement in different sectors such as infrastructure, yacht, health, and government has enabled us to
DEPA vs. Peers
16
�infrastructure, yacht, health, and government has enabled us to outperformed our competitors
� Our effective business structure has enabled us to have one of the lowest tax rates relatives to our peers
� We remain one of the most cash rich companies in our industry
CONTENTS
Results Overview
Revenues and Seasonality
Market Segment Overview
Geographical Overview and New Markets
Backlog and New ContractsBacklog and New Contracts
Industry Dynamics
Share Buyback
Financial Review
2009 Expectations and Beyond
17
SHARE BUYBACK UPDATEApproximately 8.2 million shares bought back from Dec 2008 to Apr 2009
2,000
2,500
3,000
3,500
Nu
mb
er
0f
Sh
are
s (
Th
ou
sa
nd
s)
No. of Shares Repurchased
No. of Shares Repurchased
Sh
are
Pric
e
1.95m
3.26m
2.3m
18
-
500
1,000
1,500
Dec Jan Feb Mar Apr May June
Nu
mb
er
0f
Sh
are
s
Sh
are
Pric
e
0.83m
1.41m
0.71m
Currency: USD
1.5m
CONTENTS
Results Overview
Revenues and Seasonality
Market Segment Overview
Geographical Overview and New Markets
Backlog and New ContractsBacklog and New Contracts
Industry Dynamics
Share Buyback
Financial Review
2009 Expectations and Beyond
19
H109 FINANCIAL SUMMARYHealthy increase in both Income Statement and Balance Sheet
611
741
931
1108
Selected Income Statement Data
H108
2,094
2,915
2,283
3,343
1,834
Selected Balance Sheet Data
H108
H109
20
AED Million
7413184
176
G&A Contract Profit Contract Cost Contract Income
H108
H109
1,675
1,241
1,834
1,509
Current Assets Total Assets Total Equity Total Liabilities
100.6
159.4
181.0 192.0
80.578.7
66.0
Days Receivable & Payable
ON-TIME PAYMENTS SECURED BY INT’L CONTRACTORSOur clients continue to pay within contractual terms
Trades Payable and AP days
� Our AP days have declined due to acquisitions which have different payment structures to us
Trades Payable and AP days
� Our AR days excluding unbilled revenues have remained stable over the last few years
21
38.1
61.4 55.8 63.1
51.0
78.766.0
2006 2007 2008 H109
AR Days - excluding unbilled revenues
AR Days - including unbilled revenues
AP Days
FINANCIAL OVERVIEW
H1-2009 H1-2008
AED
million
Contract Income 1,107.6 741.1
Contract Cost (931.3) (610.5)
Contract Profit 176.3 130.6
General &
Administrative
expenses
(84.8) (73.6)
Gain on acquisition of
Subsidiary
H1-2009 H1-2008
AED million
Property, plant and
equipment327.8 220.2
Total current assets 2,283.2 2,093.6
Total assets 3,342.9 2,915.3
Total equity 1,827.4 1,674.8
Total liabilities 1,515.5 1,240.5
Income Statement Balance Sheet
Subsidiary
Other Income /
(expense)10.0 6.1
Finance income /
(cost) net8.2 (0.5)
Share of profit / (loss)
from associates6.1 3.4
Net profit before tax 115.8 66.0
Income Tax (2.5) (1.3)
Net profit 113.3 64.7
Attributed to:
Equity holders of
parent91.7 55.6
Minority Interest 21.6 9.1
22
FINANCIAL OVERVIEW
H1-2009 H1-2008
AED million
EBITDA 133.6 91.1
EBIT 112.2 75.8
Adjusted EBITDA 117.5 81.6
Adjusted EBIT 96.1 66.3
Net Capital Expenditure 48 69.9
H1-2009 H1-2008
AED million
Net cash used in
operating activities(26.8) 173.2
Net cash used in
investing activities(4.2) (116.3)
Net cash provided from
financing activities(156.0) 932.5
Cash and cash
equivalents
Beginning cash and
Financial Data and RatiosCash Flows
Beginning cash and
cash equivalents738.7 0
Ending cash and cash
equivalents551.7 989.4
Net increase (decrease)
in cash and cash
equivalents
(187.0) 989.4
H1-2009 H1-2008
AED million
Cash and Bank balances
(A)*551.7 989.3
Bank Loans (B) 315.4 431.5
Current (C) 214.7 197.3
Non-current (D) 100.7 234.2
Total current net
indebtedness (A-C)337.0 792
Total non-current net
indebtedness (A-D)451.0 755.1
Total net indebtedness
(A-B)236.3 555.8
Indebtedness
23
CONTENTS
Results Overview
Revenues and Seasonality
Market Segment Overview
Geographical Overview and New Markets
Backlog and New ContractsBacklog and New Contracts
Industry Dynamics
Share Buyback
Financial Review
2009 Expectations and Beyond
24
2009 EXPECTATIONS AND BEYOND
� 30% revenue growth
� 30% profit growth
� Diversification away from Dubai and hospitality
� 2010 double digit growth� 2010 double digit growth
25
top related