Mowasalat Business StrategyMowasalat Business Strategy2012- 20162012- 2016

1

Introduction

The Transport Company Q.S.C (Mowasalat) a Qatari shareholding company incorporated in the State of Qatar under commercial registration number 26887 was established as per Article No. 5 for year 2002. It has been given the exclusivity of managing and operating public transportation services for 20 years from the date of decree. The registered office of Mowasalat is located at P.O. Box 1186, Doha, State of Qatar. The principal activities of Mowasalat are operating a fleet of taxis (airport and standard), providing school buses, buses for staff transportation to various companies in Qatar, public transportation buses, operation of a driving school and mechanical maintenance services.

2

3

Executive Summary

Qatar is seen as one of Middle East and North Africa's (“MENA”) best growth stories, with a steady economic outlook, relatively stable political risk-profile and a consistently improving business environment. The economy's rapid expansion is supported by Liquefied Natural Gas (LNG) exports, sizeable oil reserves and large scale investments in infrastructure.

An increased reliance on non-oil revenues and a shift in spending towards large-scale infrastructure investments are the two major expected amendments in the country’s budget dynamics.

According to the Qatar Statistics Authority, the workforce in 2009 was 1.26 mn, out of a total population of more than 1.44 mn; and, although no official figures exist, estimates put unemployment rate at under 3% of employee population.

Given the rapid expansion of the economy, which is expected to continue over the coming years as well, the demand for foreign workers will continue. The population of Qatar is forecasted to be 1.6 million in 2012. It is expected to further increase to 1.8 million in 2014 and then be constant up till 2016.

In view of the above and with the Qatar Government as a host for World Cup 2022; Mowasalat as the Transport Service provider in the Country was mandated to revise its strategic and business planning by re-setting objectives and targets in line with the country’s vision and mission and to grant supporting the growth in demand in the Transportation sector.

4

Mowasalat’s Business Planning Process

5

Vision & Mission

Mowasalat will be the preferred provider of integrated transport solutions & services within the MENA region by 2016

المفضلة الجهة مواصالت تكون أنالمواصالت وخدمات حلول لتقديم

األوسط الشر!ق منطقة في المتكاملةعام بحلول أفريقيا .2016وشمال

فعالة وتكلفة جودة ذات نقل حلول توفيروصديقة والسالمة األمن لمعايير مطابقةرؤية ويح!قق العمالء كافة يرضي بما للبيئةقطر  

Provide quality transport solutions that are cost effective, safe and environmental friendly, for the welfare of the State of Qatar and the satisfaction of our customers.

6

Corporate Values

7

Short Term Corporate Objectives (1-2 YEARS)

Reduce operational costs through improved business processes

Improve project management practices for monitoring projects on cost , time and quality.

To give impetus to Qatarisation strategies aimed at providing appropriate job opportunities for qualified and capable nationals

Expand fleet to meet the current market requirements

Raising community awareness for traffic rules and regulations

Creating awareness for transport safety and green environment

To create new business opportunities through franchising that meet our obligations for the commitment to offer better public transportation;

8

Long Term Corporate Objectives (3-5 YEARS)

To establish Mowasalat as the market leader in quality and value-priced transport service solution provider in the State of Qatar and in the MENA region.

To Establish and maintain good working relationships with our present customers by developing a sales and Marketing plan that would support the achievements of Corporate objectives.

To continually provide our services in a qualified way, suitable for our economic and social climate

To plan for new international alliances and partnerships.

Identify requirements to support the initiatives and development for FIFA Qatar 2022.

9

How will we meet desired objectives for 2012?

10

How will we meet desired objectives for 2012?

11

How will we meet desired objectives for 2012?

FOCUS AREAS - 2012 - INTERNAL •Focus on emergency preparedness

•Institutionalization of Balanced Score Card and KPIs

•Process driven structure and up-gradation of

technology (SAP)

•More focus on Driver Training and Safety (KTTDC)

•Expansion strategies that includes the introduction of

Karwa Services company catering to the maintenance

services needs of the company’s fleet of vehicles

The Corporate Roadmap is aligned also with various initiatives as a baseline to the long terms objectives.

12

How will we meet desired objectives for 2012? (cont’d)

FOCUS AREAS - 2012 - EXTERNAL •Focus on expansion activities and partnerships

•Promoting the sales of Karwa brand buses

•Partnership with international garage services providers

•Plan for taxi franchise / license permits

•Awareness on Public Transport safety and green

environment initiative

The Corporate Roadmap is aligned also with various initiatives as a baseline to the long terms objectives.

13

Expectations in 2012

Overall operating and support expenses budgeted is supported by the renewed contracts with the Supreme Education Council (SCE) and major contracts with government and private companies for 2012

Increase in External driving license applications

Taxi franchising will not only support the overall requirement of the country but will generate additional income to the company

Partnering with international renowned garage service providers such as Cummins, ZF, etc promotes the stance of the company and its capabilities

Ongoing government support

14

Proposed Projects for the coming 3-5 years

• Build Bus Station in Al Khor

• Build facilities in south and north part of Qatar (Dukhan and Messaeid)

• Development of Ain Khaled area as expansion of our garage services

• Association with Lusail Water Taxi Project

• Build showroom and parking areas

• Increasing taxi operations thru franchise and licensing permit

• Establish Karwa Services & Maintenance Unit as a separate company,

• Partnering with international garage service providers such as ZF, Cummins,

etc. Karwa Services & Maintenance will cater to the maintenance services of

not only Mowasalat owned vehicles but of the governmental agencies and

private individuals in the future

• Search and study suitable manufacturer/partner of salon cars to be built in

Qatar specifically for Karwa. These vehicles will replace all our taxi fleet, target

by 201415

Proposed Growth for the coming 3-5 years (cont’d…)

As of next 2- 3 years, in close cooperation with the Urban Planning Department and other public and private developers, we will operate 55 routes that span the entire country. By 2015, that network will have grown alongside Qatar’s infrastructure expansion.

Our taxi fleet is just as impressive. Having started with only 250 vehicles in 2004, we rapidly expanded to meet the needs of the Asian Games. We’ve since kept up our expansion. Today, we have more than 2,400 cabs on call day and night. On top of that, we have a fleet of limousines. By 2015, our taxi fleet will have grown to 2545 cabs and our fleet of limousines will number 363.

Increasingly, all of our vehicles are becoming more environmentally sustainable. We were the first to introduce hybrid public buses to the region. We continue to have our vision to be more environmental friendly in the coming years. We are also nearing completion on a fully solar-powered workshop.

16

How will we meet our growth plans? 2012 - 2016

17

Franchise Operations – 2012 /2013

Mowasalat will be awarding its franchise to three key operators who would start operations from Jan 2012 in a phased manner. The key objective of having franchisees revolves around the concept of improving key performance indicators and upgrading the level of service rendered by Mowasalat to the public, including citizens, residents, visitors, tourists and various sectors of the community in Qatar. While each system has its own unique business model, all share the challenge of consistent operations directed to a common purpose.It also seeks to identify the objectives & goals shared between the Government of Qatar, Mowasalat and Franchise Companies, based on the vision 2030 to provide safe & smooth transport for all.

18

Corporate Balanced Score Card

The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, Mowasalat has adopted Balanced Score Card to improve internal and external communications, and monitor organization performance against strategic goals.

Balanced Score Card will be institutionalized within Mowasalat as a performance measurement framework that adds strategic non-financial performance measures to traditional financial metrics to give managers and executive management a more 'balanced' view of Mowasalat’s performance as a team.

19

Corporate Balanced Score Card

20

Corporate Balanced Score Card(cont’d)

21

Corporate Balanced Score Card

What are KPIs and what is its importance?KPI are quantifiable measurements, agreed to beforehand, that reflect the critical success factors of the company, department, project and individuals. Many things are measurable. That does not make them key to the organization's success. In selecting Key Performance Indicators, it was critical to limit them to those factors that were essential (Key) for Mowasalat to reach its goals. It was also important to keep the number of Key Performance Indicators small just to keep everyone's attention focused on achieving the same KPIs.Key Performance Indicators (KPIs) are of interest to both management and staff of Mowasalat as they evaluate performance against corporate objectives.

To increase the awareness about the Balanced Score Card and KPIs ,there is a monthly e-bulletin that has been introduced and the first edition was released in November 2011. In the forthcoming issues of the “E- Bulletin,” we will further introduce readers to the concept of KPIs and talk in details about their significance, design and selection methodology. This will ensure that everything that the people in Mowasalat do is focused on meeting or exceeding our goals and objectives, knowing what the target for each KPI is and showing the progress towards that target for each of them.

22

Corporate Training Plan Corporate Training Plan

23

Corporate Qatarisation Plan

In order to honor the state’s plan and vision, recruitment department will heighten its efforts to fill relevant positions with Qatari applicants through:

•partnering with Universities and introducing educational sponsorship schemes•Arranging and meeting with universities to establish a contractual relationship•Designing and proposing an educational sponsorship program to the Management enlisting the advantages of the proposal•Enhance the efforts in acquiring more Qatari applicants to fill our vacant positions available for 2012

Qatarisation Targets

2010 14.292011 15.832012 16.50%

Overall Additional Manpower 2012 83Targeted Qatari for recruitment 17Ministry of Labour Collaboration with CNA 5   % Target of new Qatari Recruits for 2012 25%Overall Qatari % of Total Employees 15.50% 24

Corporate Recruitment Initiatives

Recruitment department in parallel to the operations will introduce Employee Referral Scheme; Expand the supplier capacity through additional recruitment channels, Concentrate heedfully on the Internal Promotion of the staff as a preferred alternative to hiring, and anticipate favorable progress in achieving the desired Qatarisation target of 20% overall

Action Plan :•Design the Employee referral scheme policies and procedure•Assess the performance of the current recruitment channels and to explore the possibilities of expand the sourcing capacity both internally and externally to be able to meet the 2012 demand effectively•Redefine the policies pertaining to Mowasalat’s Internal Promotions and Transfers to derive various potential benefits through its advantages

25

Learning & Development Initiatives

L&D department will focus on establishing the foundation for future development, like defining the competency framework, gathering information to strengthen the e-learning system, and to identify and develop competency based trainings and certify the employees internally and establish basis to effectively plan all required trainings in the futureEstablish a minimum level of English language skills required for the various jobs to be carried out in Mowasalat

Action Plan :•Designing the principles and developing the competency framework, implementing the e- learning on a pilot batch•Identify the available e learning courses relevant to the jobs aligned to business goals•Assign courses according to the desired level of complexity involved in the jobs•Designing different level of English Language courses

26

Employee Welfare Initiatives

Technology Upgrade:To focus on SAP enhancements especially on the high prioritized areas like biometric system, Absence Quota- Annual leave, Travel management module, Provisioning leave advance, Automating the letters and certifications, Automation on the final settlement process / Repatriation.To decentralize various HR processes – through personnel administration functionalities to the Administration units within the respective Business UnitsDeduction of traffic and disciplinary fines in SAPLeave data input in SAP (except sick leave)

27

Clinic:Clinic will be focusing on improved customer service with additional clinic facilities at the Karwa City complex with extended service hours along with new Dental clinic facilityWill establish a Radiology and clinical laboratory unit for Mowasalat that will eventually focus on serving the external customers apart from fulfilling our requirement

Employee Welfare Initiatives

Higher Education Funding

Higher education (HE), including research carried out in universities, has a crucial role in development. It helps generate the human capital needed in key areas such as transport & infrastructure, manufacturing and engineering, etc… and builds a country's capability for self-reliance.

With this in mind and in line with the country’s initiative of collaboration between the government and the public and private work force sectors, a proposal to sponsor students for higher education has become a must. Such a student will be rehabilitated in accordance with the terms and conditions Mowasalat would set aside along with the educational establishment selected for the purpose of providing the required caliber in line with the company mission and vision.

Further to our current joint venture with Higer, the field of industrial development with focus on automotive services would be the most suitable option for the selected candidate.

28

Major Implementations for 2012

Quarter 1 Quarter 2 Quarter 3 Quarter 4

BCP / INFORMATION POLICY

Leadership Program / Medical Comm.

ISO / QUWIC

Balanced Score Card –Phase II

Training and Test Area

PLAN ,MONITOR ,CONTROL AND REPORTING ACTIVITIES

29

Proposed Growth for the coming 3-5 years (…cont’d)

More than 6,000 fully qualified and highly trained drivers staff our Mowasalat fleets.

Mowasalat drivers and vehicles provided all road transport for the West Asian Games in 2005 and the Asian Games in 2006 and the Asian Cup recently in 2011. We have already incorporated our plans to initiate the readiness for 2022 FIFA World Cup as a part of our corporate objectives.

Today, Qatar’s government relies on us for integrated transport solutions for all state occasions. And we also provide all road transport for Qatar’s growing market in regional and international conferences, exhibitions and meetings.

Mowasalat is growing just as Qatar is. So we look forward to serving all of the development taking place in Qatar in the next 3-5 years with our long term vision aligned to Qatar’s National Development Strategy 2030.

30

THANK YOU

31

Mowasalat Business Plan 2012-2016 compiled by Strategy & Business Development