Se Projects - Security Business Plan & Budget FY2011: November 2009

SE PROJECTS - SECURITY
BUSINESS PLAN &

BUDGET
FY2011
November 2009
Contents
 Performance Review - FY2010
 Market Analysis
 Overall Direction & Strategic Positioning
 Strategies & Critical Resources Requirement
 Assets Utilisation & Capital Expenditure Plan
 Funding Plan - FY2011
 Human Resources Plan - FY2011
 Operational Efficiency
 Financial Forecasts
 Corporate Calendar - FY2011
 Key Deliverables - FY2011
 Appendix
November 2009 Business Plan & Budget FY2011 2

Performance
Review
FY2010
November 2009
Key Deliverables Re-visited FY2010

Financial Results – FY2010

Variance Analysis – By Project

Outstanding Receivables/Unbilled/Cost Provision
Project Outstanding Unbilled * Booked Cost

Receivables Provision
Propel System 0.157 - - 0.157

S/B
Anjung Emas 0.315 - - 0.315

S/B
My Datacet 0.397 - - 0.397
S/B
Note : All the above outstanding receivables are being pursued by our Legal.

Major Contract Secured in FY2010
Client Project Estimated/Actual Tenure Date

Contact Value Awarded
(RM’000)
Jabatan Penjara SKEB for Kluang Prison 1.582 2 years 1/2/2009

Malaysia
Jabatan Penjara SKEB for Penor Prison 1.384 2 years 1/9/2009

Malaysia
Jabatan Penjara SKEB for Kemta Prison 0.498 2 years 14/9/2009

Malaysia

Domestic (Local) Revenue

Current Order Book

Other Highlights FY2010
1. Financials
2. Contract
• Secured : Prisons Maintenance (Kluang, Penor & Kemta)
• Tendered : MAB/ MAS/ KLCC – Withdrawn.
• Developing : LCCT Upgrade/ Access Control for KLIA. (Replace of Readers) /
Parole Management System.
3. Corporate
• To synergize the security business within the SapuraCrest Group.
• To reposition Sapura Energy Group as one business unit instead of current
multiple P&L.
4. Manpower
• Downsized/ None renewable of contract staff.
5. Funding
• Internal funding.
Other Highlights FY2010 (Cont’d)
6. Assets
• Not Applicable
7. HSE – Leading & Lagging Indicators

• Refer to Sapura Energy Group
Indicators
8. Major Proposal Approved

Proposal Status
Parole Management System. Product launched during APPCA on 24/11/08.
Witnessed by Home Minister, KSU, KDN, GSO &
DG-JPM.
Awaiting budget from KDN under RMK10.
Integrated Electrical/Shock Fence Pilot project being evaluated and awaiting
Perimeter System for all existing budget from KDN under RMK10.
prisons without electronic security
system. (Pilot Solution for Kajang
Prison)
Shock Fence Solution for other sectors Pilot project being evaluated and awaiting
such as; Immigration Detection Center, budget from KDN under RMK10.
Remand Center & Border Security.

Market Analysis
November 2009
Market Analysis
A. MARKET OUTLOOK – Projects & Maintenance

Area of Focus:-

Market Analysis (con’t)
Areas of Focus
A.
MARKET OUTLOOK
SKEB
– Maintenance
EXISTING PRISONS – WEST/EAST MALAYSIA

SAPURA
Juru
Machang
SAPURA
SAPURA
Bentong
IBS SRI MUDA SAPURA
SAPURA
SRI MUDA
Sg.Udang
Secured by Sapura
Potential SKEB to secure by Sapu
Market Analysis (Cont’d) – Not Applicable
B. MARKET OUTLOOK – Assets (if any / if relevant. If not,

please use the previous slide where your market is to be
presented in terms of projects)
* This slide will mainly cater for the demand and supply of your business. What we wish to
be answered in this slide will be :
1)What is the target market / focus ?
2)What are the demand (in terms of asset) like for your business in the market –
Malaysian / regional market ? (depends on your objectives)
3)What is your market size ? What is your market share ? (in your current area of coverage
& your target area of coverage)
4)What are the supply (if possible) available in the market – Malaysian / regional market ?
(depends on your objectives)
5)What are the assets we currently have ? For vessels, her remaining useful life is
important as we want to know how we will be addressing this – our strategy ?
6)What other vessels alike or other new vessels coming into the market ? Where do we
stand with these new vessels entering the market ? When are these vessel ready ?
* Feel free to modify this template or use any other template that fits your business model.
[Date] Business Plan & Budget FY2011 16

Overall Direction &
Strategic Positioning
November 2009
Plan / Direction
Overall Objectives
• To remain as a market leader in the integrated
high-end security system for the domestic
markets.
• To be a leading maintenance and service
provider in the security system Industry.
• To continue to be a major player in the areas of
Prisons, Seaport and Oil & Gas Sector.
Strategic Positioning
• Based on product positioning, and latest
technologies which enhances the systems.
• Based on experiences & “know-how” in the
niche sectors such as Prisons, Oil & Gas,
Seaports & Others Government Sector.

Plan / Direction [Alternative I]
2013
Revenue: RM
11.02 mil
2012
Servic Target Key
Revenue: RM e/ Market Asse
9.03 mil Produc (geograp ts
t hical/
2011 Servic Target Key
client)
e/ Market Asse SKEB JPM

Revenue: RM 7.0 Produc (geograp ts Parole JPM
mil t hical/ Shock JPM
client) Fence
2010 Servic Target Key SKEB JPM ISS O&G
e/ Market Asse Parole JPM
Revenue: RM Produc (geograp ts Shock JPM ISS Seaport
t hical/
3.62 mil Fence
client)
Service/ Target Key SKEB JPM ISS O&G

Product Market Asset
Parole JPM ISS Seaport
(geograp s
hical/ Shock JPM
client) Fence
SKEB JPM

Plan / Direction [Alternative II] – Not Applicable
Volume * The quadrant depicts the

2010 type/characteristic of the
market in which the BU
Revenue: RMxx Player operates, e.g high volume &
low margin projects or vice
m 2011 versa
Overseas : xx%
2012
Service Target Market Key
Player
Revenue: RMxx
/ (geographical/clie Asset
Produc nt) s
m Revenue: RMxx
Overseas : xx%
t m 2013
Overseas : xx%
Service Target Market Key Revenue: RMxx
/ (geographical/clie Asset
Produc nt) s m
t Overseas : xx%
Service Target Market Key

Service Target Market Key / (geographical/clie Asset
Player / (geographical/clie Asset Produc nt) s
Produc nt) s t
t
Player
Margin

Plan / Direction [Alternative III] – Not Applicable
Service Key Target Market

/ Assets Market Size/ %
Product of total
revenu
e
FY2010
FY2011
FY2012
FY2012

Strategies & Critical
Resources Requirement
November 2009
Key Strategies Re-Visited FY2010
MARKET
Key Objectives Key Action Plans Status Updates Key Challenges
1.To continue to be a • Positioning with • Withdrawn. •-

major player in Aviation consultant, Client and
Sector e.g. MAB & MAS. Manufacturers. JV
To secure at least one Partnership.
major Airport • Product Demo.
installation. • Proposed new
technology to end-user
• Pricing Strategy.
• Withdrawn •-
2.To focus to be a
maintenance vendor in
Airport Sector.
• Achieved SLA given by • Legacy System
• Increase percentage of Prison Department up to • Management of the
work performance & 95%. technical team.
3.To be a leading in staff competencies ISO
maintenance for Prisons. on maintenance of
security system
obtained.
• To continuously
upgrading personal
capabilities,
competency.
Key Strategies Re-Visited FY2010 (cont’)
MARKET
4.To secure and • To implement a Pilot • Being evaluated by • To replace current

implement the Pilot Project for Kajang Prison. Prison Department and technology from Taut
Program for the Parole KDN. Wire Technology to
Management System. . Shock Fence Technology.
• Set-up a full fledge office

5.To penetrate as a in Kuantan with one • Identified 3-4 Facilities • Competition with current
supplier and dedicated staff. i.e.; Flexsys Chemical contractor.
maintenance contractor S/B, Poly Plastic Asia
in Oil & Gas Sector. Pacific S/B & Petronas
Carigali.
• Partnership with • Project deferred.

6.To penetrate and to be a manufacture e.g. COE •- • Delays in the issuance of
key player in Seaport (UK). tenders.
Sector. • Present & emulate COE
solution for the port
authorities.
Sales Funnel (Contracts currently bidding)

Key Strategies & Critical Resources Requirement
FY2011 –
FY2013

Assets Utilisation &
Capital Expenditure
Plan
November 2009
Key Strategies Re-Visited FY2010 – Not Applicable
ASSETS
Key Objectives Key Action Status Key
Plans Updates Challenges
* Status updates to also address the following :

1)What is the progress (asset under construction)?
2)When is the delivery date / due date? Is it on time? If not, why? What are the consequences?
3)What are the maintenance required?
4)How long is the maintenance period? Is it as per budget? If not, why? What are the effects of this delay?
5)Is it up to industry standards? If not, why? What are the measures taken to address this issue?

Assets Utilisation – FY2010 – Not Applicable
Dry-dock/ repair/ maintenance

AssetA AssetB Assetc AssetD AssetE
No of days [x] [x] [x] [x] [x]
Amount spent [x] [x] [x] [x] [x]
Total [x] [x] [x] [x] [x]

Key Objectives FY2011 - Not Applicable
ASSETS
Key Objectives Key Action Plans Timing

Asset Utilisation Plan – FY 2011- Not Applicable
Budget Total
No of
Assets Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 days %

Capital Expenditure Plan - Not Applicable
CAPEX PLAN FOR FY2011

Planned Purpose/ Expected Expected Budgete IRR % Payback
CAPEX Justification Commenceme Completio d Cost Period
Items nt n (RM'000)
Nil
CAPEX PLAN FY2012 – FY2013

Planned CAPEX Purpose/Justificati FY2012 FY2013
Items on
(RM'000) (RM'000)
Nil

Funding Plan
FY2011
November 2009
Funding Plan
CAPEX
FUNDING
Planned CAPEX Items Budgeted Cost Funding (% & Amount RM'000)
(RM'000)
External Borrowings Internal
Funds
Vehicle Maintenance 120 K Hire Purchase.
Office Equipment • Internal
Funding
-Laptop @ 2 units 8K
-Autocad Software 11 K
-Maintenance Management 20 K
Software
WORKING CAPITAL
Purpose Estimated Amount Possible Source
(RM'000)
Advance Operation & Overhead Cost 564 Internal Resources
(RM94K @ 6 months)

Human Resources
Plan
FY2011
November 2009
Key Objectives FY2011
Key Objectives Key Action Plans Timing
• To appoint 2 Marketing Executive

• To dedicate the Marketing Exe. • Q1 FY 2011
in O & G & Seaport Sector.
• To appoint 1 Technical Executive

• To support & enhance the current • Q1 FY 2011
Prison technical team.
•To appoint 1 General Worker • Q1 FY 2011

• To support the current team in KL.

Critical Positions/Skill Set
A. FY2011
1. Marketing Executive 2 Q1
2. Technical Executive 1 Q1
B. FY2012-FY2013
Nil

Succession Planning
Key Positions Number of Capability Gap Capability

Potential (Years) Improvement
Successors
Management
1. HOD 1 3 – 5 years Understanding of
2. other market
3. sectors. (O&G &
Seaports)
Technical
1. Technical 1 3 years Leadership &
Manager decision making.
2.
3.

Training Needs
Category/ Key position Key Competencies/Type of Training

Required
Management • Project Management incl; Project Costing/Claims –

EOT, Project Schedule and etc.
• Presentation Skill
• Business Planning
Technical • Intensive Technical Training Programs.
• Technical Knowledge Management.
Executive • Intensive Administration & Finance Programs.

Operational
Efficiency
November 2009
Key Strategies Re-Visited FY2010
PROJECTS & OPERATIONS
1. To be a leading in • Increase percentage of •Achieved SLA given by • Legacy System.

maintenance contractor work performance & Prison Department up to • To continue to enhance
for Prisons. staff competencies ISO 95%. Relationship with JPM.
on maintenance of
security system
obtained.
• To continuously
upgrading personal
capabilities,
competency. • To replace current
2. To secure and •Being evaluated by technology from Taut Wire
implement the Pilot Prison Department and Technology to
Program for the Parole KDN. Shock Fence Technology.
Management System. • To implement a Pilot
Project for Kajang Prison.
3. To penetrate as a
supplier and
maintenance contractor
in Oil & Gas Sector. • Economic slowdown/cost
of fuel.
4. To penetrate and to be • Project deferred.
a key player in Seaport • Partnership with • Delays in the issuance of
Sector. manufacture e.g. COE tenders.
(UK).
November 2009 Business
• Present Plan &
& emulate Budget FY2011
COE 41
solution for the port
Key Objectives FY2011
PROJECTS & OPERATIONS
Continue to focus on To arhive the SLA set by JPM Archived the 90% SLA Legacy system..
maintenance of prison target. Management of the
sector. technical team.
Continuous relationship
building.
To secure Integrated Implemented Pilot Project at Being evaluated by Prison To replace current
Electrical/ Shock Fence Kajang Prison. Department and KDN. technology from Taut Wire
Parameter System. Technology to Shock Fence
Technology.
Marketing effort s in the Set-up a full fledge office in Identified 3-4 Facilities i.e.; Competition with current
O&G sector/ facilities mainly Kuantan with one dedicated Flexsys Chemical S/B, Poly contractor.
in Gebeng & Kerteh. staff. Plastic Asia Pacific S/B &
Petronas Carigali.
To establish relationship with - - -
the Seaport Authorities.

Cost Improvement Initiatives
Areas to Improve Estimated Proposed Method Timing of

% Execution
Improveme
nt
OPEX (Operational 2% • Shared resources within the Q2 FY 2011
& Admin. company and Sapura Energy
Expenditure) Group.
All Procurement 3 - 5% • To identify more vendors. Q2 – Q4 FY 2011

• To renegotiate current contracts.

Financial
Forecasts
FY2011
November 2009
Key Assumptions
Revenue
• RM 7.O Mil
* Prison - RM 3.22 Mil
* Parole - RM 2.70 Mil
* Shock Fence – RM 1.08 Mil
Cost of Sales
• RM 4.38 Mil
Margins (GP/EBITDA/PBT/PAT)
• GP – RM 2.62 Mil
• EBITDA – RM 0.57 Mil
• PBT – RM 0.5 Mil
• PAT – RM 0.5 Mil
Other Operating & Admin Expenses

• Operating – RM 0.13 Mil
• Admin Expenses – RM 1.99 Mil

Key Assumptions (Cont’d)
Finance Costs
• Does not involve finance cost as projects are self financed by the project itself
and managed by Project Team and Payment Profile.
CAPEX
• Planned CAPEX Item – Maintenance Vehicle & Office Equipment (RM 159 K)
Cash Flow
• Positive cash flow as we received monthly payment from on our maintenance
contract.

Budgeted Income Statement for FY2011

Forecasted Income Statement for FY2011-FY2013

Budgeted Cash Flow for FY2011 [Alternative I]

Forecasted Cash Flow for FY2011 – FY2013
[Alternative II]

Corporate
Calendar
FY2011
November 2009
Calendar FY2011- NOT APPLICALE

Key
Deliverables
FY2011
November 2009
Key Deliverables
FY2011 FY2012 - 2013 Outcome
Objectiv Key FY12/CY1

es To be a leading in Deliverabl FY11/CY10 1 onwards
To remain focused in
maintenance for es
prisons sector.
prisons. RM 7.0 Mil RM 9.03
Roll-out of Parole Revenue Mil
To penetrate as a Management System. RM 0.5 Mil
supplier and EBITDA RM 0.5
maintenance contractor To be a Maintenance RM 0.5 Mil Mil
in the O & G Sector. Service Provider in the 4 PBT
sectors. - RM 0.5
To penetrate and to be a Overseas Mil
key player in Seaport revenue
Key Sector. RM 3.05 -
Strategie Smart Partnership To move from project Order Mil
s based to security book
Increase percentage of maintenance company renewal RM 3.464
work performance & e.g. generate annuity
Staff competency - Mil
business. Asset
Present & emulate Utilisation
To emulate solution
successful solutions RM 0.153 -
provided to JPM for other CAPEX
implemented. enforcement agencies
-
i.e. Police, Immigration, LTI/TRCF -
etc.
Implementation of ISO -
Standards to the other
sectors.
Appendix
November 2009
Income Statement FY2011 - by Projects

Income Statement FY2011 - by Vessels – Not Applicable
RM'000 Vessel A Vessel B Vessel C Vessel D Total

Budge Budge Budge Budge Budge
ted Actual ted Actual ted Actual ted Actual ted Actual
Revenue - external
Revenue - inter-
BU/company
Cost of sales -
external
Cost of sales - inter-
BU/company
Cost of sales -
depreciation
Gross profit
GP margin %

Other income
Other operating
expenses
Admin expenses
Depreciation
Operating profits

Finance costs
Profit before tax


Quarterly Results FY2011 - by Project

Quarterly Results FY2011 - by Vessels – Not Applicable
Revenue Gross Profit EBITDA PBT

VESSE TOTA TOTA TOTA TOTA
L Q1 Q2 Q3 Q4 L Q1 Q2 Q3 Q4 L Q1 Q2 Q3 Q4 L Q1 Q2 Q3 Q4 L
RM'0 RM'0 RM'0 RM'0 RM'0 RM'0 RM'0 RM'0 RM'0 RM'0 RM'0 RM'0 RM'0 RM'0 RM'0 RM'0 RM'0 RM'0 RM'0 RM'0
00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00

Vessel
A
Vessel
B
Vessel
C
Vessel
D
Vessel
E

TOTAL


Existing Assets – Not Applicable
Past 3yearsUtilisation(%)
Asset / Vessel Age Built / Acquired(year) Net Book Value(RMmillion) Key Projects/ Plans
FY2007 FY2008 FY2009

Leading & Lagging Indicators
A. Leading Indicators
• Service Level Agreement (SLA)
with Prison.
• SEP’s ISO status.
• Current Maintenance Performance.
B. Lagging Indicators
• Sales Funnel – Current Market focus only
Prison Sectors.
• Internal Competition.

Key Performance Indicators
• To continue to be a major player in the maintenance of SKEB / Prisons.

• To secure at least two new maintenance contract. (Machang, Bentong,
Juru, Sg.Udang)
• To implement the Shock Fence Solution in Kajang, Alor Setar, Taiping &
Simpang Renggam Prison.
• To implement the Shock Fence Solution in KDN (Immigration Detention
Center, Police Remand Center).
• Roll-out of Phase 1 of Parole Management System in Central Region.
• To focus on current Oil & Gas Facilities (to replace the existing legacy
system to the current technology).

Thank You

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SE PROJECTS - SECURITY

BUSINESS PLAN &

November 2009 Business Plan & Budget FY2011 2

November 2009 Business Plan & Budget FY2011 4

November 2009 Business Plan & Budget FY2011 5

November 2009 Business Plan & Budget FY2011 6

Project Outstanding Unbilled * Booked Cost

Propel System 0.157 - - 0.157

Anjung Emas 0.315 - - 0.315

November 2009 Business Plan & Budget FY2011 7

Client Project Estimated/Actual Tenure Date

Jabatan Penjara SKEB for Kluang Prison 1.582 2 years 1/2/2009

Jabatan Penjara SKEB for Penor Prison 1.384 2 years 1/9/2009

Jabatan Penjara SKEB for Kemta Prison 0.498 2 years 14/9/2009

November 2009 Business Plan & Budget FY2011 8

November 2009 Business Plan & Budget FY2011 9

November 2009 Business Plan & Budget FY2011 10

7. HSE – Leading & Lagging Indicators

8. Major Proposal Approved

November 2009 Business Plan & Budget FY2011 12

A. MARKET OUTLOOK – Projects & Maintenance

November 2009 Business Plan & Budget FY2011 14

EXISTING PRISONS – WEST/EAST MALAYSIA

B. MARKET OUTLOOK – Assets (if any / if relevant. If not,

[Date] Business Plan & Budget FY2011 16

November 2009 Business Plan & Budget FY2011 18

e/ Market Asse SKEB JPM

Service/ Target Key SKEB JPM ISS O&G

November 2009 Business Plan & Budget FY2011 19

Volume * The quadrant depicts the

Service Target Market Key

[Date] Business Plan & Budget FY2011 20

Service Key Target Market

[Date] Business Plan & Budget FY2011 21

1.To continue to be a • Positioning with • Withdrawn. •-

4.To secure and • To implement a Pilot • Being evaluated by • To replace current

• Set-up a full fledge office

• Partnership with • Project deferred.

[Date] Business Plan & Budget FY2011 25

[Date] Business Plan & Budget FY2011 26

* Status updates to also address the following :

[Date] Business Plan & Budget FY2011 28

Dry-dock/ repair/ maintenance

[Date] Business Plan & Budget FY2011 29

[Date] Business Plan & Budget FY2011 30

[Date] Business Plan & Budget FY2011 31

CAPEX PLAN FOR FY2011

CAPEX PLAN FY2012 – FY2013

[Date] Business Plan & Budget FY2011 32

[Date] Business Plan & Budget FY2011 34

Key Objectives Key Action Plans Timing

• To appoint 2 Marketing Executive

• To appoint 1 Technical Executive

•To appoint 1 General Worker • Q1 FY 2011

November 2009 Business Plan & Budget FY2011 36

November 2009 Business Plan & Budget FY2011 37

Key Positions Number of Capability Gap Capability

November 2009 Business Plan & Budget FY2011 38

Category/ Key position Key Competencies/Type of Training

Management • Project Management incl; Project Costing/Claims –

November 2009 Business Plan & Budget FY2011 39

1. To be a leading in • Increase percentage of •Achieved SLA given by • Legacy System.