Q2 2021 financial report

Q2-2021 FINANCIAL PERFORMANCE

I S SUED MAY 2 0 2 1

F I NANC I A L REPORT | Q2 - 2 0 2 1

SUMMARY RESULTS

Q2 2021 VS. Q2 2020

104 per cent increase in revenues

91.4 per cent increase in expenses

Net Surplus (before & after Depreciation) up by above 100 per cent

Depreciation up by 20.6 per cent

Cash balance up by 34.3 per cent

DUBA I OF F SHORE SA I L I NG C LUB

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F I NANC I A L REPORT | Q2 - 2 0 2 1

2021 | ADOPTING & BUILDING RESILIENCE

One year on, the pandemic and related disruptions continue to impact the Club’s operating and financial environment, while there are positive signs of recovery. During the period, the Board and the Management made efforts to ensure the Club’s adaptability to the new socio-economic environment and to position the Club to benefit directly from the changing operating environment, e.g. an increase in demand for healthier and safer activities. We note that the current situation remains uncertain to tell how the operating and financial environment will evolve in the coming months or so, hence, as the Board and the Management, we remain focused on cash and cost discipline as communicated in the latest Annual General Meeting.

Q2 2020 was the height of COVID 19, which brought a range of challenges that necessitated the Club to adapt to the new socio-economic operating environment. The pandemic and related disruptions in mobility, retail, and supply chains impacted the Club’s operating and financial environment from early March 2020 onwards (on 26th March 2020, the Club had to close its doors due to the country-wide lockdown until 23rd April 2020 and operated within very restrictive operating guidelines until 31st May 2020). In response to the pandemic, the Club rolled out measures in a swift and disciplined manner to protect its going- concern status as a non-profit civil organization. The Board and the Management’s guiding principles were the DOSC Governance and Strategy 2030.

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F I NANC I A L REPORT | Q2 - 2 0 2 1

REVENUE HIGHLIGHTS

in 2020 – this is a key performance indicator, highlighting the Club’s continuous operational efficiency. During the period, the depreciation increased by 20.6 per cent year on year. The net surplus after depreciation was up by well above 100.0 per cent year on year thanks to the increase across all activities comparing to the same period in 2020, during which the club was either closed or operated within the very restrictive environment.

During the period, total revenues increased by circa 104.0 per cent year on year, which can be attributed to the Club’s adaptability to the new socio- economic environment. F&B, which contributed slightly more than half of the total revenue, was up by 151.1 per cent year on year, along with an increase of around 130.5 per cent in footfall for this period, when compared to the same period in 2020, during which the Club was either closed or operated within the very restrictive environment. Revenue generated by the Club and Sailing School activities, which together represented 40.5 per cent of total revenue, was up by 29.6 per cent and well above 100.0 per cent respectively, year on year. The increase in Sailing School activities is particularly notable given the DOSC’s ongoing efforts to promote the sport of sailing in the UAE. There is continuing uptick in demand for both dinghy lessons, hire, and cruising courses. During the same period, the revenue generated from Marina activities showed a 4.1 per cent decrease year on year, while the Club continued expanding and improving its marina services. Overall, the Club posted a net surplus before depreciation of above 100.0 per cent when compared to the same period

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F I NANC I A L REPORT | Q2 - 2 0 2 1

EXPENSE HIGHLIGHTS

DOSC aimed to maintain a disciplined policy on cash and cost management, while selectively investing in Club and sailing facilities, and infrastructure.

The expenses increased by 91.4 per cent in comparison to the same period last year.

The major expenditures during the period included Tentola Thanda project, VAT payment, IT equipment and POS licenses, A/C project, electrical works, and boat & engine parts, etc.

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F I NANC I A L REPORT | Q2 - 2 0 2 1

TREASURY ACTIVITIES

Following the onset of the pandemic and related disruptions, the Club’s treasury priorities remained as continued focus on cash and cost management, primarily preserving cash, reducing discretionary capital expenditures and cash forecasting to ensure the Club has sufficient flexibility

As part of our aim to achieve further transparency, control, and improved efficiency across all treasury activities – which is in line with the DOSC Governance and Strategy 2030, we provide this quarterly communication on the Club’s financial performance. The quarterly communication is based on the Club’s internal management accounts rather than audited numbers so on that basis, trends rather than numbers are used to reflect the Club’s financial performance.

and readiness to go through this rapidly changing environment.

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F I NANC I A L REPORT | Q2 - 2 0 2 1

CASH-IN-THE-BANK POSITION

The Club’s cash balances increased by 34.3 per cent comparing to the same period in 2020, mainly on account of discretionary deferral of capital expenditure, improved cash generated from operations and working capital performance. Our current total cash balances, as of June 2021, covered our liabilities by 1.5x. The total cash balances provide comfort to the Club to maintain and develop the club and sailing facilities and infrastructure and continue contributing to the UAE as the leading example of a sports and social club – in line with the DOSC Governance and Strategy 2030.

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