HSE Strategic Business Profile

Ragheb Madhoun

Outline

The Energya Group

Introduction to Energya Industries

Geographical Coverage Group Structure

Introduction to HSE

A snapshot of the Past . . . Our Vision for the Future . . .

HSE Business Model

Business Coverage Model

The Energya Group

Introduction to Energya Industries

Started in 1937 from Egypt

Diverse Business Operations in:

Manufacturing

Distribution

Turn-key Projects

Industrial Zones’ Development

Geographical Coverage

Strong Presence in ME & Africa

Regional Markets Covered:

The Gulf

Africa

Others

KSA, UAE, Qatar, Bahrain

Egypt, Sudan, Algeria, Libya

Lebanon, Cyprus, Pakistan

Group Structure

Introduction to HSE

Introduction to HSE

Started in the early 1960’s in KSA, HSE has grown

manifold and today is recognized as one of the

leaders and pioneers in the supply of Cables and

Electrical materials in many of the countries in

the Gulf.

Introduction to HSE

With 40 years of experience,

Extensive regional coverage,

Diversified product range,

Well qualified team, and

Partnerships with

world class manufacturers,

HSE is able to offer competitive

products and services to its

highly demanding customers

across the region.

Introduction to HSEPlans for the Future 20

10 &

Bey

on

d

Within the next 5 years, sales, marketing and sourcing offices to be established worldwide mainly in

Italy, China, India, North America & Eastern Europe.

The end objective is to have full-fledged branches similar to the Rexel Model.

Introduction to HSE Vision

To be a leading player with global

reach

in the field of Electro – Mechanical

and Building Materials Solutions

An Introduction to HSEMission

HSE “the Global minds… Local touch Co.”

We are a highly motivated and engaged team that strives to provide value added to our stakeholders.

We take pride in our HSE brand. It reflects quality, reliability and service. We go the extra mile in serving our clients.

We know the industry & the geography. We want to replicate our success to additional territories in a fast but sure manner . Eventually we’re aiming to cover the world.

An Introduction to HSEThe Future … Mission

HSE “the Global minds… Local touch Co.”

Our Suppliers are our partners with whom we team up /synergize to expand their reach.

We continuously create new positions paving the way to internal career promotion or attracting external talents.

We consistently produce above industry average financial returns to the owners.

We contribute to the infrastructure of the countries where we operate. We believe in giving back to the community by hiring & training local resources.

HSE Business Model

Geographical CoverageThe Middle East & KSA

HSE Business Model Geographical Coverage – KSA

Khamis Musheit

Qassim Al Ahsa

LEBANON

Current Operations - ME

Future Plans

Current Operations - KSA

HSE Business Model Geographical Coverage – By

OperationsHSE

Jeddah Branch

Riyadh Branch

Dammam Branch

Yanbu / MedinaBranch

UAEBranch

QatarBranch

BahrainBranch

Sales Officex 2

Warehousex 1

Showroomsx 6

Sales Officex 1

Warehousex 2

Showroomsx 4

Sales Officex 2

Warehousex 2

Showroomsx 2

Sales Officex 2

Warehousex 2

Showroomsx 2

Sales Officex 1

Warehousex 1

Sales Officex 1

Warehousex 1

Sales Officex 1

Sales Office

Warehouse

Showrooms

= 10

= 9 (Over 80,000 m2 of Warehousing space)

= 14

Legend: HSE Total

HSE Market Profile

Aamer Abdullatif

Outline

HSE Business

Model

Product Mix Market Segmentation

The Competitive Advantage

The Dealers Network The Package Offering

HSE Business Model

HSE Product Mix &Contribution to Sales

HSE Product Profile

Cables & Wires

Switchgear

Lighting & Fixtures

Cable Management

Wiring Devices

Transformers & RMU

Cable Accessories

Other Electrical Materials

Our Facilities

Customer Snapshot

HSE Business Model

HSE Market SegmentationCustomer BaseMarket Reach

Product Category

HSE Market Segmentation By Customer Base

Showrooms

Traders Wholesellers End-users Electricians & Installers

Contractors Industries Governmental Agencies Panel Builders & OEM’s

EPC Contractors - Oil & Gas (Aramco, Sabic) - Other Worldwide sales

Export Sales to Traders

HSE Appointed DealersDealers Network

Project Sales

International Sales

HSE Market Reach

EPCInt’l

Contractors= 10

Showrooms = 14

Traders, Whole-sellersElectricians, End-Users

Dealers = 78

Projects > 500

Contractors, GovernmentIndustries, Factories

The Competitive Advantage

The Dealers Network

The Dealers NetworkObjective

Better Market Coverage1

Increased Market Share2

Reduced Operational Cost3

Increased Level of Loyalty4

Lesser Impact of Localization5

Extended Channels of Distribution6

More Opportunities to Push New Products7

The Dealers Network The 6-Star Offer

Suitable Credit LimitYear-End Rebate

System

Dealer Sign BoardPriority on Product

Availability

Basket of New Product

Development

Exclusive Dealer Account Engineer

The Competitive Advantage

The Package Offering

HSE Business ModelThe Package Offering Strategy

To many customer sectors, HSE has the unique capability to offer a complete basket of products in order to lock-in the buyer for all his requirements for cables and electric materials. This gives the customer a number of advantages like:

Complete package offering from one source Competitive prices A suitable credit facility Product availability Technical support Reliable and long-term support Direct access to manufacturer through HSE in many

product lines

HSE Business ModelThe Package Offering Strategy

In addition, this gives HSE an important advantage over its competitors in terms of: Ability to negotiate bulk discounts from many

suppliers Widen its product reach within the customer sectors

that HSE serves Upper hand in sales in specific customer sectors

Some examples are . . .

HSE Business ModelPackage Offering Strategy

MV Cable

Ring Main Unit

MV Cable Joints

Package Sub-station

LV Cable

LV Cable Joints

LV Switchgear

Lighting Control Panel

Earthing Rod

Steel / Fiber PoleFuse Box

Street Light FixtureLighting Gear

Lamp

Land DevelopmentLand Development

Lighting ProjectLighting Project