RAMBOLL S STRATEGY TOWARDS INDIA

Transcription

1 RAMBOLL S STRATEGY TOWARDS INDIA BERLINGSKE CONFERENCE OCTOBER 31, 2014 PRESENTATION BY SØREN HOLM JOHANSEN, EXECUTIVE DIRECTOR RAMBOLL

2 AGENDA 1. Ramboll a brief introduction 2. Ramboll in India since Our experience of joint ventures 4. Our Strategy going forward 5. Q&A

3 RAMBOLL IN BRIEF Independent engineering and design consultancy and provider of management consultancy Founded 1945 in Denmark 11,000 experts worldwide 200 offices in 21 countries Significant presence in Northern Europe, India and the Middle East EUR 1 billion revenue Owned by Ramboll Foundation Services across the markets: - Buildings - Transport - Environment - Energy - Oil & Gas - Management Consulting

4 RAMBOLL MARKETS Buildings Revenue (m ): 350,0 FTEE (2013): 3,200 Transport Revenue (m ): 260,0 FTEE (2013): 2,400 Environment Revenue (m ): 150,0 FTEE (2013): 1,250 Energy Revenue (m ): 100,0 FTEE (2013): 750 Oil & Gas Revenue (m ): 100,0 FTEE (2013): 950 Management consulting Revenue (m ): 65,0 FTEE (2013): 550

5 INTERNATIONAL PRESENCE Country head offices BELGIUM, Brussels CHINA, Beijing CYPRUS, Episkopi DENMARK, Copenhagen ESTONIA, Tallinn FINLAND, Helsinki GERMANY, Hamburg GREENLAND, Nuuk INDIA, New Delhi KINGDOM OF SAUDI ARABIA, Riyadh NORWAY, Oslo POLAND, Warsaw QATAR, Doha ROMANIA, Bucharest RUSSIA, Moscow SINGAPORE, Singapore SWEDEN, Stockholm SWITZERLAND, Zurich UAE, Dubai UK, London USA, Houston

6 FINANCIAL PERFORMANCE Revenue, m EBITA % DKK/EUR exchange rate: 7.46 Revenue (left axis) EBITA margin (right axis)

7 From 2 to in 70 years of which are Indian nationals

8 AGENDA ITEM 2 RAMBOLL IN INDIA SINCE 1998

9 LARSEN & TOUBRO OUR JV PARTNER FROM Founded in 1938 by Henning Holck Larsen and Søren Kristian Toubro Among India s largest conglomerates Activities within Construction, Heavy equipment, Electrical equipment Power, Shipbuilding, Financial services and IT billion USD revenue in 2013 Ranked as 10 th best Indian brand 2013

10 EMPLOYEE GROWTH IN INDIA Employees JV L&T, IFU RTI Whitby & Bird Imisoft Gifford Ramboll-India (Expected) Joint venture formed with L&T (L&T Ramboll Consulting Engineers Ltd - LTR) Ramboll Tower India (RTI) founded in Delhi Ramboll acquired Whitby Bird UK Ramboll Telecom acquired IMIsoft in India (RTPE) Ramboll Oil & Gas established global engineering operations in Chennai Ramboll UK acquired Gifford UK which had Indian subsidiary with offices in Delhi, Kolkata and Kerala Ramboll integrated all its divisions (except LTR) to form Ramboll India Global Engineering Centre

11 11 RAMBOLL OFFICES IN INDIA Indian offices AHMEDABAD BANGLAORE CHENNAI COCHIN HYDERABAD JAIPUR KOLKATA LUCKNOW MUMBAI NEW DELHI/GUARGON PUNE

12 TELECOM ENGINEERING AND TOWERS Cost effective and unique tower designs Reduced capital and operation costs More efficient due to lower steel weight Reduced number of components resulting in faster erection Factory supervision ensures production and quality standards Helping with Reliance 4G rollout 7,000 towers

13 SCANIA COMMERCIAL VEHICLES FACILITY Ramboll in India is working with transport giant, Scania, to develop a state-of-the art 22,000m 2 Product Centre in Bangalore to strengthen its global setup. Ramboll has provided all services, including architectural, civil, structural, mechanical, electrica l and plumbing as well as project management. Phase 1 is operational since Oct 2014 and Phase 2 will be completed in early 2015.

14 GANGA BRIDGE Ramboll was appointed as Proof Checking consultant for Ganga Path (Ganga Drive way ) which is 21.5 km long having 7.6 Km of Elevated Structure with divided carriageway of 4 lane and allied facilities from Digha to Didarganj at Patna. The unique feature of the project is large diameter (1.9 m) deep pile foundation being constructed first time in Ganges.

15 HELSINKI LIBRARY A PROJECT WON WITH GLOBAL ENGINEERING

16 NORDHAVNSVEJ, DENMARK

17 FORTH BRIDGE, QUEENSFERRY CROSSING (FORTH REPLACEMENT CROSSING), SCOTLAND

18 OUR INDIAN CUSTOMERS 90 % private sector

19 RAMBOLL IN INDIA STATUS 2014 Leadership position in Telecom engineering and Towers. Good position in Transport and Building sectors but need to grow to offset sale of LT-Ramboll Consulting Engineers Ltd. Significant growth in Global engineering capability supporting Transport, Buildings and Oil/gas in Europe and Middle East. After 16 years co-branding with L&T we need to build the Ramboll brand as the independent consultant in India.

20 AGENDA ITEM 3 OUR EXPERIENCE OF JOINT VENTURE

21 JOINT VENTURE HAS BEEN THE WAY TO BUILD OUR PLATFORM IN INDIA L&T-Ramboll Consulting Engineers Ltd. Greenfield JV L&T/Ramboll/IFU L&T (50%), Ramboll (26% in the first years; 50% from 2004), IFU (24% ) Ramboll divestment 2014 to L&T Ramboll Imisoft Acquisition (60/40) A.R. Vishwanath (22%): previous owner, minority shareholder (exited in 2011) IFU (18%) Ramboll India Ltd. Equity partnership Ramboll/IFU (80/20)

22 IS A JOINT VENTURE THE WAY TO GROW? Strong model for getting a firm foothold Provides capital, market position, client base and brand Must have a clear strategic fit Can develop into a constraint on growth in the long term The answer is Yes as a way to get started and to learn how to act in the market The answer is Yes if you have the right partner The answer is No if you don t have a clear exit plan And No if you plan to do a 50/50 split of ownership

23 AGENDA ITEM 4 OUR STRATEGY GOING FORWARD

24 THE FIVE GLOBAL MEGATRENDS DRIVE THE INDIAN MARKET MARKET Demographic changes Urbanisation Climate change & Environmental problems Natural resource shortages Globalisation Overpopulation, st ate of health, increasing education, growin g middle classes New infrastructure, urb an population will increase with 70 m until 2020, increase in redevelopment Degradation of ecosystem, period ic flooding, water scarcity Increasing demand, prices and technical content Societies, busines s and people become more global, Indian businesses investing globally Incomes will quadruple in the coming decade Doubling of investments in 5- year plans Investments in infrastructure to manage urban solid waste India cannot escape its dependence on coal Inward and outward investment, tourism, migration 24

25 AND INCREASED FOCUS ON INFRASTRUCTURE DRIVES DEMAND IN THE INDIAN MARKET MARKET Investments in infrastructure, the 12 th five year plan, USD bn , , , , ,0 268 % Electricity and renewable energy Roads and bridges Telecom Railways Irrigation & water supply Ports and airports Oil and gas pipelines and storage % of GDP

26 MARKET GROWTH IS FORECAST TO 10-11% P.A. AND TRANSPORT AND BUILDINGS CONSULTANCY MARKET IS ESTIMATED TO USD 1BN Construction industry value, USD bn. CAGRs (INR based) Buildings Roads and bridges Railways Airports Ports harbours waterways Energy and utilities F-23F 15,4% 10,9% 18,7% 10,7% 26,2% 10,0% 0,9% 9,9% 4,9% 9,9% 14,3% 10,7% 14,8% 10,8% Employee numbers and bottom-up market size, USD bn Jacobs RITES ICT Feedback Mott MacDonald Dev. Cons. Pvt Ltd AECOM LASA STUP URS/ Scott Wilson # of employees, 50% of market # of employees, 100% of market Revenue per employee, USD Total market revenue, USD bn 26 Source: Business Monitor International Note: Construction industry value: Output of the construction industry over the reported 12-month period in nominal values (i.e. domestic currency terms). As it is derived from GDP data, it is a measure of value added within the industry.

27 IT ALL DEPENDS UPON.

28 OUR STRATEGY FOCUS ON INFRASTRUCTURE AND GLOBAL ENGINEERING STRATEGY DEEPEN AND BROADEN TRANSPORT AND BUILDING OFFERING Enter metro rail, freight rail, and tunnel segments. Offering buildings services and structural design Focus on large projects, multidisciplinary and complex projects DEVELOP GLOBAL ENGINEERING AND SUPPORT TO SIGNIFICANT SIZE From 300 staff in 2014 to 700+ staff in Business support operation of 50 staff by Provide Local resources for Global projects. DEVELOP INTERNATIONAL MARKETS FOR TELECOM Target selective markets with unique tower royalty model Take lead for Myanmar and other neighbouring countries GLOBAL EXPERTISE FOR HIGH-VALUE DOMESTIC PROJECTS Leverage international relationships (e.g. Scania) Leverage global expertise (e.g. AD) FOCUS ON COMPETENCE AND DELIVERY, ie Quality Invest in processes; deploy the best tuned to India needs Leverage GEC and domestic staff expertise and synergies; improve productivity 28

29 AND BY 2016 THE STRATEGY WILL STRATEGY increase our headcount to 1,400 change our portfolio mix Buildings Transport Others Buildings % 16% 15% 1% 33% Telecom Transport Environment Oil&Gas % 58% 22% Be well positioned for the future Amongst the top 3 infrastructure consultancy firms and by 2020 be regarded as the best in class in more than half the sectors we serve 29

30 IT ALL DEPENDS UPON

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