H1 – 2017 Supplementary Information Financial Results

Global Interior Solutions

d e p a . c o m

Supplementary Information H1 2017 Financial Results 1

Operational Review

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

Revenue 200 100

178.0

179.1

H1 2016

H1 2017

0

Operational highlights • Continues to see strength in hospitality and commercial sectors • Seeking opportunities for expansion into Middle East, Thailand and other international markets

EBIT 30 15

20.4 6.6

0

Depa Limited | Supplementary Information | H1 2017 Financial Results

H1 2016

H1 2017

3

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

Depa Limited | Supplementary Information | H1 2017 Financial Results

4

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 2016

Revenue 200 100

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

H1 2016

H1 2017

0

EBIT 30 15 13.4

16.5

0

Depa Limited | Supplementary Information | H1 2017 Financial Results

H1 2016

H1 2017

5

Superyacht market strong Number of 80 meter+ M/Y completed and scheduled deliveries: 2011-2018

• 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

18

20

12

15 10 5

5

4

9

7

7

2013

2014

6

0 2011

2012

2015

2016

2017

2018

Refit forecast, 80 meter+ M/Y: 2017-2023* 50 40 30 20 10 0 2017

2018 Two Years

2019

2020

Five Years

2021 Six Years

2022

2023

Ten Years

* The longer the refit cycle (e.g. 2 years, 5 years etc.) the more significant the refit Depa Limited | Supplementary Information | H1 2017 Financial Results

Source: Superyacht Annual Report 2017

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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

Revenue 400 200

319.0

362.9

0

Operational highlights • UAE market continues to offer quality opportunities • Major government contract win in Saudi Arabia • Mandarin Oriental project won in Dubai

H1 2016

EBIT 150 112.1

75 0

Depa Limited | Supplementary Information | H1 2017 Financial Results

H1 2017

6.7 H1 2016

H1 2017

7

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* Depa Limited | Supplementary Information | H1 2017 Financial Results

*Source: Lodging Econometrics

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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 Depa Limited | Supplementary Information | H1 2017 Financial Results

Revenue 200 100

105.9

142.0

H1 2016

H1 2017

0

EBIT 30 15 0

6.8

8.4

H1 2016

H1 2017

9

Repeat business driving Deco growth

200 + 40

• More than 70% of Deco’s pipeline is from repeat clients

Standalone shopping mall projects

• Developed a reputation as a specialist in luxury retail sector • GCC is a key driver in the growth of the luxury retail market

Mixed use developments with shopping malls

• More than 200 shopping malls in the pipeline in GCC Shopping mall projects by country * Standalone shopping mall Value AEDmn

Mixed use development with shopping mall No.

No.

Value AEDmn

566

13

Bahrain

1,596

12

Kuwait

1

24

662

14

Oman

2

690

19

2,991 11,126

116 140

120

100

80

60

40

20

1,055

8

Qatar

26

2,345

5

4,874

KSA

12

18,713

UAE

12

20,599

0

Depa Limited | Supplementary Information | H1 2017 Financial Results

0

10

20

30

40

50

60 Source: Ventures Onsite

10

Strategy Update

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 We will encourage and practice open communication by sharing relevant information and ideas. We will trust and respect each other by promoting inclusive communication.

Integrity We will act honestly and respect ourselves, our colleagues and all company stakeholders.

Accountability 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.

Depa Limited | Supplementary Information | H1 2017 Financial Results

Professionalism 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.

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Our Structure Depa Group DEPA GROUP

Key Business Units Middle East, Africa and India

Asia

Investments Europe

JWICO

DESIGN STUDIO

DEPA INTERIORS GROUP

VEDDER

Lindner Middle East

The Parker Company DECO GROUP

Decolight

Depa Limited | Supplementary Information | H1 2017 Financial Results

13

Our Sector Footprint

What we do

Luxury Retail

Superyachts

Hospitality

Residential

Commercial

Transport Infrastructure

Private Aircraft

Social Infrastructure

Private Residences

Cultural and Tourism

Depa Limited | Supplementary Information | H1 2017 Financial Results

Cruise Liners

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Our Global Footprint Where we work Europe Vedder

USA Middle East Africa and India: Depa Interiors Group Deco Group

2,500+

projects completed

in

Depa Limited | Supplementary Information | H1 2017 Financial Results

43

countries

Asia Design Studio

by our

6,947

employees 15

Notable achievements so far ‌

Developed our new Vision, Mission and Values

1 Established Depa as a Strategic Management Company

2

Embedded a performancedriven culture

3

4

Formed a new leadership team

Depa Limited | Supplementary Information | H1 2017 Financial Results

$

Increased cooperation between Key Business Units

5

6

Introduced a more rigorous approach to cash management

Introduced a new approach to risk management

7 Improved workwinning rate

8

9 Rewarded some major legacy receivables

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Key priorities for H2 2017 Our focus for H2 2017 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

Depa Limited | Supplementary Information | H1 2017 Financial Results

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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

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We live by our Values

Transparency Integrity Accountability Professionalism Exceptional Service

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