Qatar Analysts October 2011 - InterserveStrategy 2011-13 • Capitalise on Investment in Improved...

RMD Kwikform 2011

Qatar AnalystsOctober 2011

Objectives

• Double Digit Profit Growth for Division

• Deliver on Cash >100% conversion

• Optimise management short and long term

• Deliver a sustainable and growing portfolio of companies above

minimum threshold (ROCE>%WACC)

• Operate Accident Free

• Increase margins to 15% target in the medium term

Strategy

Each P&L holder charged with bottom-up plan, with Divisional overlay and portfolio management to reach overall objectives through:

• Organic Growth

• New Market Sectors

• New Territories

• New Product Development

• Acquisition

• All markets different with bespoke Strategy/Strengths/Weaknesses

• Objective to reach #1 or #2 in those chosen markets:

• #1/2 in Aus, UK, Ireland, HK, Phil, UAE, Bahrain, Qatar, Oman

• Exit from Taiwan/Korea

• Saudi Arabia /S Africa objective to be #1/2

Core Strengths of RMD Kwikform

• Leadership position in some major markets (Mid East/Aus/UK).

• Long standing operations and established local partnerships throughout

Middle East.

• Added Value: World Class Engineering Design.

• Proven track record on major projects worldwide (esp. Civils).

• Strong customer relationships.

• Outstanding products and flexible supply chain.

• Growth Opportunities still exist: Middle East continued focus.

• Motivated leadership: flexible Anglo-Saxon commercial approach.

Shape of the Business

2010 Contribution

Turnover(at actual and budgeted exchange rates)

£ M’s

Operating Profit(at actual and budgeted exchange rates)

£ M’s

Forecast

ROCE

%

Forecast

Cash Flow Conversion

%

Division

Fleet Management

MENA Region

Shape of the MENA Business

2010 Contribution

Prominent Developments: • Lusail Development :

• Light rail underground• Convention Centre• Energy City

• West Bay Lagoon

Qatar- Market /OpportunitiesQatar- Market /Opportunities

Lusail Development

Qatar

Friendship Bridge Doha Metro & Rail Link

Market Pointers

• Growth market.

• Showing signs of a recovery in confidence.

• Increased activity in enquiries and tenders being re submitted.

• Tender delays.

• International competitor inflow, margin pressure.

• Delayed liquidity / funding release.

• Civil & Infrastructure works are forecast to increase in activity.

• Major projects in the pipeline include:

• Lusail Light Rail System• Dukhan Highway• Lusail LRT 7 Stations• Heart of Doha re development – Musheirab Phase 1B• Education City Car Parks & Metro• Sheraton LRT Station• Friendship Bridge• Doha Port• North Gate Development• Doha Water Treatment & Storage facilities

• Festival City• Lusail Viaduct• Lusail Expressway• Qatar National Museum• Lusail CP6 Water and Sewerage • IBQ Bank Building• Lusail CP3A,CP4 & CP5B Infrastructure• Barzan Onshore camp• Qatar University Student Housing• Doha Metro and Rail link project

Qatar Market 2011

Customers

2010 - Top 10 Customers %

SEG 21%

REDCO Int 21%

QDVC 14%

Al Sraiya 8%

OHL Contrak 6%

ADCC 3%

Gulf Contracting 3%

BEM JV 2%

Subenko 2%

Amar 2%

Active Accounts 50

2011 YTD - Top 10 Customers %

REDCO Int 24%

SEG 14%

QBC 11%

OHL Contrak 11%

REDCO Const (Al Mana) 7%

Al Sraiya 5%

BEM JV 4%

Gulf Contracting 4%

Hasan Bin Ali 3%

TAG Eng 3%

Active Accounts 40

Plans and More Plans

• Even before the World Cup 2022 bid there were plans for significant infrastructure investments.

• However there is still considerable work to be done in planning.

Plans and More Plans

Qatar Festival City

Doha Port Stadium

IBQ Building Qatar

Northgate Development

Qatar National Museum

Heart of Doha – Musheireb 1B

Strategy 2011-13

• Capitalise on Investment in Improved Yard and Operations (10,000m2).

• Profit from Improved company Infrastructure and Office, overall improvement to company profile.

• Optimise Strengthening of Management team.

• Benefit from introduction of New Product ranges, with success particularly on Alshor Plus and Tru-lift.

• Target Infrastructure sectors utilising global and regional expertise.

• Use current plan period to promote our capabilities in commercial building sectors in preparation for expected 2015 commencement of WC construction program.

Review 2011 - Projects

Project: Gabro Berth ExtensionClient: STFA MarineSector: MarineValue: QAR 800,000 sale

Project: Doha AirportClient: ADCCSector: InfrastructureValue: QAR 4.6m hire

QAR 1.5m sale

Review 2011 - Projects

Project: Sidra HospitalClient: OHL ContrakSector: BuildingValue: QAR 2,500,000 sale

QAR 600K Rental

Project: Sidra HospitalClient: OHL ContrakSector: BuildingValue: QAR 200K Rental

Review 2011 - Projects

Project: Reservoirs 6MIG & 9MIG Client: QBCSector: InfrastructureValue: QAR 1.5m sale

Project: Katara TunnelsClient: Gulf ContractingSector: InfrastructureValue: QAR 400k rental

Review 2011 - Projects

Project: GTC299 ReservoirClient: QBCSector: InfrastructureValue: QAR 600K Rental

TRULIFT PROJECT

Review 2011 - Projects

Project: Burj Marina TowerClient: Redco InternationalSector: BuildingValue: QAR 1,500,000 Sale &

600K Rental

Project: Burj Marina TowerClient: Redco InternationalSector: BuildingValue: QAR 2,054,000 Sale

TRULIFT PROJECT

Review 2011 - Projects

Project: Ceremonial Road and bridgesClient: TekfenSector: InfrastructureValue: QAR 500K Rental

TRULIFT PROJECT

Review 2011 - Projects

Project: Old Doha AirportClient: Gulf ContractingSector: InfrastructureValue: QAR 600K Rental

Project: Lusail Light Rail Client: QDVC JVSector: InfrastructureValue: QAR 750K Rental

TRULIFT PROJECT