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  • DAMAC Real Estate Development Limited, DIFC

    Dubai - United Arab Emirates

    Consolidated financial statements

    and independent auditors report

    For the year ended 31 December 2013

  • DAMAC Real Estate Development Limited, DIFC

    Table of contents Pages

    Directors Report 1

    Independent auditors report 2 - 3

    Consolidated statement of financial position 4

    Consolidated statement of comprehensive income 5

    Consolidated statement of changes in shareholders equity 6

    Consolidated statement of cash flows 7

    Notes to the consolidated financial statements 8 - 41

  • The accompanying notes form an integral part of these consolidated financial statements.

    DAMAC Real Estate Development Limited, DIFC 5

    Consolidated statement of comprehensive income

    For the year ended 31 December 2013

    Notes 2013 2012

    US$ Million US$ Million

    Revenue 20 1,224.3 692.0

    Cost of sales 9 (436.3) (410.6)

    --------------------------------------------------------------------------- ---------------------------------------------------------------------------

    Gross profit 788.0 281.4

    Other operating income 21 69.4 5.5

    General, administrative and selling expenses 22 (181.1) (44.6)

    Brokerage commissions (63.4) (14.6)

    Depreciation 8 (3.6) (3.5)

    Reversal of /(provision for) impairment on development

    properties 9 27.1 (11.6)

    --------------------------------------------------------------------------- ---------------------------------------------------------------------------

    Operating profit 636.4 212.6

    Other income 23 5.7 2.9

    Finance income 4.3 2.5

    Finance costs (4.9) (5.5)

    --------------------------------------------------------------------------- ---------------------------------------------------------------------------

    Profit for the year 641.5 212.5

    Other comprehensive income

    Items that will not be reclassified subsequently to profit

    or loss

    -

    -

    Items that may be reclassified subsequently to profit or

    loss

    0.5 -

    --------------------------------------------------------------------------- ---------------------------------------------------------------------------

    Total comprehensive income for the year 642.0 212.5

    --------------------------------------------------------------------------- ---------------------------------------------------------------------------

    Earnings per share

    Basic and diluted (US Cents) 29 99 N/A

    --------------------------------------------------------------------------- ---------------------------------------------------------------------------

  • The accompanying notes form an integral part of these consolidated financial statements.

    DAMAC Real Estate Development Limited, DIFC 6

    Consolidated statement of changes shareholders in equity

    For the year ended 31 December 2013

    Share

    Capital

    Statutory

    reserve

    Group

    restructuring

    reserve

    Investment

    revaluation

    reserve

    Retained

    earnings/

    (losses)

    Total

    US$ Million US$ Million US$ Million US$ Million US$ Million US$ Million

    Balance at 1 January 2012 85.4 41.0 - - (200.0) (73.6)

    Total comprehensive income for the year - - - - 212.5 212.5

    Share capital addition 1.0 - - - - 1.0

    ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

    Balance at 31 December 2012 86.4 41.0 - - 12.5 139.9

    ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

    Balance at 1 January 2013 86.4 41.0 - - 12.5 139.9

    Total comprehensive income for the year - - - 0.5 641.5 642.0

    Group restructuring reserve (Note 15) 563.6 - (566.7) - - (3.1)

    Transfer to statutory reserve (Note 16) - 0.3 - - (0.3) -

    Dividend paid (Note 13) - - - - (119.7) (119.7)

    ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

    Balance at 31 December 2013 650.0 41.3 (566.7) 0.5 534.0 659.1

    ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

  • The accompanying notes form an integral part of these consolidated financial statements.

    DAMAC Real Estate Development Limited, DIFC 7

    Consolidated statement of cash flows

    For the year ended 31 December 2013

    2013 2012

    US$ Million US$ Million

    Cash flows from operating activities

    Profit for the year 641.5 212.5

    Adjustments for:

    Depreciation of property and equipment (Note 8) 3.6 3.5

    Provision for employees end of service indemnity (Note 18) 2.0 1.1

    Gain on disposal of financial investments (Note 23) (0.3) -

    Finance costs 4.9 5.5

    Finance income (4.3) (2.5)

    Provision for / (reversal of) for impairment for trade receivables (Note

    11)

    24.0 (0.4)

    (Reversal of)/provision for impairment on development properties

    (Note 9)

    (27.1) 11.6

    ----------------------------------------------------------------------- -----------------------------------------------------------------------

    Operating cash flows before changes in operating assets and

    liabilities

    644.3 231.3

    Increase in trade and other receivables (369.3) (7.2)

    Decrease/(increase) decrease in due from related parties 377.3 (1.7)

    (Decrease)/increase in due to related parties (310.0) 14.2

    Increase/(decrease) in trade and other payables 460.0 (302.6)

    (Increase)/decrease in development properties (310.8) 84.0

    (Increase)/decrease in other financial assets (5.7) 12.7

    ----------------------------------------------------------------------- -----------------------------------------------------------------------

    Net cash generated from operations 485.8 30.7

    Finance costs paid (4.9) (6.0)

    Interest received 3.8 2.3

    Employees end of service indemnity paid (Note 18) (0.6) (0.4)

    ----------------------------------------------------------------------- -----------------------------------------------------------------------

    Net cash generated from operating activities 484.1 26.6

    ----------------------------------------------------------------------- -----------------------------------------------------------------------

    Cash flows from investing activities

    Purchases of property and equipment (Note 8) (4.9) (2.1)

    (Increase)/decrease in deposits with an original maturity of greater than

    three months (note 14) (19.1) 0.1

    Proceeds from disposal of financial investments (Note 12) 11.6 -

    ----------------------------------------------------------------------- -----------------------------------------------------------------------

    Net cash (used in) / from investing activities (12.4) (2.0)

    ----------------------------------------------------------------------- -----------------------------------------------------------------------

    Cash flows from financing activities

    Bank borrowings during the year (note 17) 97.9 0.1

    Repayments of bank borrowing (note 17) (129.7) -

    Addition to share capital net - 1.0

    ----------------------------------------------------------------------- -----------------------------------------------------------------------

    Net cash (used in)/generated from financing activities (31.8) 1.1

    ----------------------------------------------------------------------- -----------------------------------------------------------------------

    Net increase in cash and cash equivalents 439.9 25.7

    Cash and cash equivalents at the beginning of the year 105.8 80.1

    ----------------------------------------------------------------------- -----------------------------------------------------------------------

    Cash and