semi annual presentation 2009

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


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





4


Industry Dynamics

Share Buyback

Financial Review


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





6


Industry Dynamics

Share Buyback

Financial Review


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





9


Industry Dynamics

Share Buyback

Financial Review


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





12


Industry Dynamics

Share Buyback

Financial Review


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




Backlog and New ContractsBacklog and New Contracts

Industry Dynamics

Share Buyback

Financial Review


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





Industry Dynamics

Share Buyback

Financial Review


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





Industry Dynamics

Share Buyback

Financial Review


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





Industry Dynamics

Share Buyback

Financial Review


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

semi annual presentation 2009

Documents

seasonality of revenues

total revenues

uae revenues

percentage of revenues

new marketsbacklog

total group revenues

new contracts1backlog

new contracts4backlog