Valuation Report

GeoTech Technologies of Geography, Engineering, Industry

and Trade (L.L. One Person Company)

Management Presentation on Recommended Valuation

Kingdom of Saudi Arabia

Date : 19th April 2020

 Index
 Business Profile
 Industry Overview
 Competitive Analysis
 Analysis of Historical Financials
 Financial Forecast
 Valuation Methodology
 Valuation
 Valuation Drivers
 Disclaimer
 Annexure

2
 Company Introduction & Brief History
• GeoTech Technologies of Geography, Engineering, Industry and Trade company ( GeoTech ) provides solutions & services in the field of Geodetic
Engineering, Terrestrial surveying and mapping, Photographic and satellite mapping, Geospatial data analysis and Information Technology.
• Jeo Tek Ltd. was established in 1997 in Turkey, and was subsequently registered as a Saudi Foreign Investment Company under the name of Geo
Tech Consulting (GTC) in the year 2002.
• The company provides services across Middle East in the field of Geodetic Engineering, Terrestrial Surveying and Mapping, Photogrammetric and
Satellite Mapping, Geospatial Data and Information Services.
• For GeoTech as a company to provide these services , its key asset is its highly educated, skilled and competent staff, who are experienced in
geomatics engineering and IT Services.
• They have been rapidly growing since their inception and have made strides towards establishing themselves as a leading player in the industry.

Incorporation Details of GeoTech LLC, Saudi Arabia

Name GeoTech Technologies of Geography, Engineering, Industry and Trade (L.L.C)

Year Of incorporation 2002

The company is part of the GeoTech Group which has presence all over Middle
Earlier presence East and Africa. GeoTech Consulting was established in 2002 to autonomously
handle the projects in Saudi Arabia region.

Area of Operation Geographic Information System

Countries in operation Saudi Arabia

3
 GeoTech Services and Projects (1/3)
GNSS & Positioning Services (Geodetic)
• The term GNSS & Positioning comprises three distinct
technology areas: navigation systems, surveying and indoor
mapping.
• While indoor mapping is a relatively new entrant to this group
of technologies, the rest of the constituents are some of the
most foundational contributors to the geospatial industry.
• They form the basic infrastructure upon which the output of
others is used to drive meaningful insights for industry
professionals and end-users..
Earth Observation
• Earth Observation is a technology used to map the
surface or the earth from above or from space. This
includes remote sensing satellites and aerial mapping.
• Aerial mapping is the mapping of the earth’s surface from
aircrafts, UAVs and other flying objects.
• Earth Observation is used to gather information about
planet Earth’s natural resources and topographic mapping,
contour mapping, site mapping, etc.
4
GIS/Spatial Analytics
• Geographic Information Systems (GIS) or spatial analytics is a
system that is designed to capture, store, manipulate, analyze
and interpret data relationships, patterns and trends.
• Available to consumers as software, GIS is categorized into
three types: Desktop GIS which runs on a personal computer;
Web/ Cloud GIS which allows the user to use the software on
Cloud; and Mobile GIS which enables user to use GIS on a
smartphone or a tablet.
3D Scanning Technologies
• 3D Scanning refers to digital capturing of three-dimensional
representation of physical objects, surface environments by
using laser light generating millions of coordinates), quickly
and accurately.
• The speed, precision and accuracy requirements for digital
mapping of complex and contoured objects, surroundings in
fields of architecture, engineering and construction, 3D
printing, precision manufacturing, autonomous systems -
make it the fastest growing segment of the geospatial market
until 2020.
 GeoTech - Services and Projects (2/3)
I. Geodetic Engineering
Services
• GPS/GNSS Geodetic Positioning Surveys, Computation & Establishment of Geodetic Networks
• Precise Geometric Levelling, Computations and Geoid Determination
• Establishment of Continuously Operation Reference Stations (CORS)
Projects
• MOMRA (2013-2014) - Establishment of National CORS / MTRF2000 Datum
• Riyadh Regional Municipality (2012 -2013) - Establishment of Riyadh Regional CORS / MTRF2000 Datum
• MOMRA (2005-2007) - Establishment of National Geoid / MVD-2008 Datum, which included 2000 km of
geometric leveling, existing national BMs, GPS leveling and then geoid determination by thin-plate
technique.

II. Terrestrial Surveying & Mapping

Services
• Terrestrial Topographic / Cadastral Surveys by GNSS Techniques and/or Total Stations & Digital
Topographic
• Utility Surveys
• 3D Mobile Mapping
Projects
• Makkah (2017) - 3D Mobile Mapping as subcontractor to NZAM
• NEOM Project (2017-2018) - Satellite, Aerial, Terrestrial and Cadastral Mapping (60000 km2) 
• MEWA  (Ministry of Environment, Water and Agriculture) - Terrestrial Farm Surveys & Development of Farm
LIS
5
 GeoTech - Services and Projects (3/3)
III. Photogrammetric & Satellite Mapping
Services
• Photogrammetric and Ortho-photo Mapping ( Aerial Photography/Triangulation, DTM Compilation, Ortho-photo
and Digital Mapping)
• Satellite mapping (Satellite Imagery Acquisition, GCP/DEM Compilation, Ortho-rectification)
Projects
• GCS (2015) – Makkah Ortho-photo Project.
• MOMRA (2006-2009) – Al Ahsa Digital Mapping Project.
IV. Smart City Services
Services
• Smart Object Based 3d Data
• Smart 3d Applications And Analysis
Projects
• PIF (2017 – 2018) 3D Smart NEOM Project - Satellite, Aerial, Terrestrial and Cadastral Mapping 3D city models
were developed for urban areas of the Project (60,000 km2) using 18cm GSD aerial imagery
V. IT and e-Government Services
Services
• Electronic Document Management System (BELGE ARSIV)
• e-Government and Portal Framework
• e-Archive / Archive Digitization

6
 GeoTech Clients and Partners

7 Sources : Management Discussions , Empact research and evaluation

 Organization Structure

Top Management
President & CEO
(Dr. Kamil Eren)

Regional Manager
(Dr. Fahri Kartal)

Technical Department Administration Department

VP for Projects Finance Dept. Finance Dept. HR and Admin IT Support Dept.
(Talat Eksioglu) (2) (2) Dept. (10) (4)

Data and Map Projects

GIS Dept. (16) Survey Dept. (26) Production Dept.
(10) Dept. (2)

8 Sources : Management Discussions , Empact research and evaluation

 Promoter Profile
Prof. Dr. Kamil Eren (President)
• Geotech’s most important asset is its highly educated and skilled staff with four experts holding Ph.D. Degrees. They are
led Prof. Dr. Kamil Eren, who has served in the region and in geomatics engineering since 1980 as an academic and
consultant to various universities and United Nations.
• He got his bachelor and master degrees from Geodetic Science Department of Yildiz University, Istanbul and completed
his Doctor of Philosophy (Ph.D.), Geomatics Engineering in 1979 from Ohio State University. After completing his Ph.D.
study and post-doctoral work in USA, K. Eren worked for Middle East Technical University (Ankara), Stuttgart University,
United Nations, and Turkish Government .
• He joined United Nations as a Geodetic Expert in 1986 and served until 1994 training technical staff, designing and
supervising numerous projects in geodetic surveys, digital mapping and GIS/LIS activities.
• K. Eren founded Geo-Tech Co. in 1997 offering services worldwide on surveying & mapping, GPS, and GIS/LIS activities.
He is part of GeoTech consulting for the last two decades and is well informed with the development and industry trends
with respect to the GeoSpatial Services.
• Through the companies and University mentioned above, K. Eren completed numerous projects:
• Engineering Surveys and Mapping of Blue Stream Natural Gas pipeline (in Turkey / 500 km)
• National GIS project of Ministry of Interior, Saudi Arabia
• Establishment of National Planning Information System in Saudi Arabia
• Establishment of Geodatabase and GIS for Saudi Telecom, Saudi Arabia
• Establishment of the National Geodetic Network and CORS of Saudi Arabia
• Establishment of “Network Based CORS TR Project” for RTK coverage throughout Turkey.

9
 Index
 Business Profile
 Industry Overview
 Competitive Analysis
 Analysis of Historical Financials
 Financial Forecast
 Valuation Methodology
 Valuation
 Valuation Drivers
 Disclaimer
 Annexure

10
 Geospatial Industry Overview

The geospatial industry ecosystem is a complex entity with multiple interactive components. These technologies have evolved over the years
and are broadly segmented into four categories: GNSS and Positioning, GIS and Spatial Analytics, Earth Observation and 3D Scanning.
• GNSS and Positioning: A constellation of satellites, the Global Navigation Satellite System (GNSS), transmits signals from space to users with
a compatible device to determine their position, velocity and time.
• GIS and Spatial Analytics: Geographic Information Systems (GIS) or spatial analytics is a system that is designed to capture, store, manipulate,
analyze and interpret data relationships, patterns and trends.
• Earth Observation: Earth Observation is a technology used to map the surface or the earth from above or from space.

Global Geospatial Industry

GNSS & Positioning GIS/Spatial Analytics Earth Observation 3D Scanning

• GNSS • Software • Satellite-based Upstream • Hardware

• Surveying • Services & Solutions • Satellite-based • Software
• Indoor Mapping • Contents Downstream • Services
• Aerial Mapping

11
 Global Market Size Assessment
• The cumulative geospatial industry was valued at an estimated US$ 299.2 Bn in 2017 and
Global market size is expected to cross US$ 640
is projected to reach US$ 439.2 Bn by 2020, and US$ 640 Bn by 2023
Bn by 2023
• The CAGR observed from 2013 to 2017 was 11.5%, and the industry is expected to grow
at 13.6% between 2017 and 2020.

APAC Europe North America Global GIS/Spatial Market (in US$ Bn)
(32.6% ) (24.6% ) (31.5% )
640

• The North America region will grow at a CAGR of 9.6% between 2017-2023, which is less 6% 559
3.
than the global average. GR1 500
CA
• The Asia-Pacific region is expected to grow at faster pace, capturing highest market share 439
of approximately 32.6% of the total geospatial market in 2020. This is mainly due to the 385
increasing investments by the governments in varied application areas and programs 339
299
driven by GIS technology and data.
• Middle-East and Africa region holds the lowest market share at 3% each and are expected
to grow at CAGR of 7.9% till 2023.
• Furthermore, the services and solutions segment of the GIS and spatial analytics market is
expected to grow much faster than the software business as clients look for complete
solutions instead of buying only software's due to the complicated nature of its
application. 2017 2018 2019 2020 2021 2022 2023

12 Sources: Reuters, Empact research and evaluation; Indian Geospatial Economy (IGE)-2018 Research
 Global Market Size Assessment (1/2)
Revenue Split (in US$ Bn)
• GNSS and Positioning Technologies, are the most fundamental set of
tools that enable the rest of the geospatial industry; it accounted for
11.6
an estimated 59.6% of the total geospatial market in 2017 and has
10.1 maintained its share in the global geospatial industry during the
65.5
period (2018-2019).
8.6
57.5 • The market size of the second largest geospatial technology segment
6.6
50 80.9 GIS/Spatial Analytics has been around 21% and grew at a CAGR of
44.8 69.9 12.4% from during the period 2016-2019, which is due to growing
62.2 adoption in city planning, utilities management, e-governance,
56.7 applications, retail and logistic sector.
• The Earth Observation industry, which was worth US$ 50.0 Bn in
227.2 2017 and was expected to reach US$ 65.5 Bn in 2019, growing at a
201.5
161.7 178.4 CAGR of 14.9%. It’s total share in the market has been ~ 17%.
• The 3D Scanning industry, although having the least market share of
2.8% of total geospatial industry revenue for 2017, is growing at a
steady CAGR of 20.6% during the period under observation, and
2016 2017 2018 2019
reached ~ US$ 11.6 Bn by 2019 and had a market share of 3% of the
total geospatial revenue in 2019.
GNSS & Positioning GIS/Spatial Analytics Earth Observation
3D Scanning

13 Sources: Reuters, Inkwood Research, GeoBuiz Report Empact research and evaluation; Grand Review Research
 Global Market Size Assessment (2/2)
Forecasted Revenue Split (in US$ Bn)
• GNSS and Positioning Technologies, is estimated to grow at a CAGR of
19.2
13.6% over the period of 2020-2023 and contribute 59% of the global
geospatial revenue, which translates to US$ 377.6 Bn in value.
16.8 108.8
15 • By 2020, the GIS/Spatial Analytics market is expected to reach US$ 92.2
95 Billion, and is expected to grow at a CAGR of 12.4% over the period
13.2 2020-2023, to reach a value of US$ 134.4 Bn.
85 134.4
74.6 117.4 • The cumulative Earth Observation industry was estimated to be worth
105 US$ 50 Bn in 2017, and is projected to reach US$ 108.8 Bn by 2023,
92.2 growing at a CAGR of 12.9% and contributing 17% of the global
geospatial market revenue.
• The surging acceptance of 3D Scanning in Architecture and Engineering,
377.6
329.8 Automobile and Aerospace Designing, the integration of indoor and
295
259 outdoor spatial data environments is driving market growth of the 3D
Scanning segment, as the fastest growing market segment in geospatial
market space.
2020 2021 2022 2023 • The 3D Scanning, is estimated to grow at a CAGR of 20.7% over the
period 2017-2020 and continue its growth at CAGR 14% over the
GNSS & Positioning GIS/Spatial Analytics Earth Observation period 2020-2023, to reach a value of US$ 19.2 Bn, contributing to 3%
3D Scanning of the global geospatial market revenue.

14 Sources: Reuters, Inkwood Research, GeoBuiz Report Empact research and evaluation; Grand Review Research
 Global Market Drivers Assessment (1/2)
Sectors Driving Geospatial Market Growth • Increasing investments by government and the private sector, an
expanding digital services spectrum and innovations in geospatial
7% technologies have created new avenues for geospatial applications in
12%
recent times.
8%
• Satellite imageries, GIS/Spatial Analytics, Unmanned Aerial Vehicles
10% (UAVs), GNSS and Positioning and 3D Scanning are being used vigorously
8%
by various industries for geo-referencing, mapping, visualization and
analysis for better decision making and workflow automation.
9% 11% • The Defense & Internal Security is the largest segment of the geospatial
market. Infrastructure and Urban Development sectors, which are key
investment drivers in emerging economies, especially in the Asia Pacific
9% region, will drive the overall demand for geospatial information and
17%
technology services.
9%
• Retail and Logistics, Banking, Finance and Insurance (BFSI) and Citizen
Services are sectors largely driven by the criticalities of ‘location’ adding
Infrastructure and Smart Cities Utilities Urban Development to the demand for such services.
Retail and Logistics Agriculture Defence and Internal Security
• Traditional end-use sectors like Agriculture, Utilities and Land
BFSI Citizen Services Disaster Management Administration shall continue to drive the geospatial market as well,
Natural Resources albeit slowly as compared to the aforesaid sectors.

15 Sources: Reuters, GeoBuiz Report Empact research and evaluation; Grand Review Research
 Global Market Drivers Assessment (2/2)
• Although GNSS and Positioning systems and solutions are being used across industries, the infrastructure and utilities segment is seen as the major
contributor to the growth of the market till 2020. Globally, focus on smart cities by various countries along with infrastructure sector investments, are
going to fuel the demand for these services in the future.
• Governments across the world are implementing digitization of their citizen services and GIS is seen as an important tool for e-governance initiatives,
leading to transparent and efficient service delivery. Utilities and urban administrative bodies, as well as, logistics companies are among the major
traditional users of the GIS technology.
• The earth observation industry is witnessing multiple technology and business model disruptions along with policy developments transforming the ways
spatial information is being captured, analyzed and made available to intermediate and end users.
• The Architecture, Engineering and Construction (AEC) sector will account for the largest share of consumption for 3D Scanning technology and services.

Industries Driving Global Geospatial Sectors

GNSS & Positioning GIS/Spatial Analytics Earth Observation 3D Scanning Industry wise
Growth
• Infrastructure and Utilities • Infrastructure and Smart • Defense and Security • Architectural Higher Growth
• Retails & Logistics Cities • Disaster Management Engineering
Average Growth
• Defense • Utilities • E-governance • Mining and Energy
Below Average
• Smart Cities & Urban • E-governance • National Mapping • Travel and hospitality
Growth
Development • Retail and Logistics • Water Resources • National Mapping
• Water Resources

16
 Technology Drivers for GIS Market

Internet of
Real Time GIS Moving Taking IoT a step further, 4-D GIS
Data from everything like
smartphones to social
Things (IoMT) connected mobile objects Today 4D GIS or spatial
like mobiles, automobiles temporal GIS is fast
media is being integrated
etc. creates Internet of becoming the need for
with real-time data from
Moving Things. This is decision making and
IOT, and is directly being
revolutionizing the concept predicting dimensions
fed into a GIS for real-time
of real-time data for GIS/ across time.
GIS applications.
Spatial Analytics.

GIS
Software as
VR GIS Integrated GIS & VR, GIS SaaS and leap from
a Service
with the specific server to Cloud has
software, is being used
(Saas) opened up numerous
in Big Data applications avenues for
and enabling collaboration for GIS
complicated VR users as well as
visualizations. technology providers.

GeoTech makes consistent investments to obtain new technologies and software to keep themselves relevant to market demand. They invest both in
hardware devices, as well as, software, for example in 2018, they procured five “Drone eBee Plus RTK” and a “Drone DeltaQuad Pro” worth SAR 0.7 Mn,
and also purchased “Orbit MM Feature Extraction Software.”

17 Sources: Reuters, GeoBuiz Report Empact research and evaluation; Grand Review Research
 GeoSpatial GCC Market Size Assessment (1/2)
• The GCC region is expected to see a sharp increase in the usage of geospatial GCC Market in US$ Bn
information and technology for various applications. As a result, they are expected to
see a growth at a CAGR of 15.2% over the years 2018-2023. While the GeoSpatial 20.5
based service/solution industry is expected to grow at a CAGR of 9.6%.
.2% 17.9
R 15
• However, despite the high growth rate, the market share of GCC in GeoSpatial Industry CAG 15.3
is not likely to see major changes since the base value is lower compared to other 13.1
regions. 11.5
10.1
8.1 8.9
• At the end of 2020, the GCC region is expected to have a market share of nearly 3.1%, 7.2
of the total market share which would be ~ US$ 13.1 Bn.

GCC Geospatial Market Segmentation (2020)

2015 2016 2017 2018 2019 2020 2021 2022 2023
3%
GCC Segment wise Revenue in US$ Bn (2020)

23% Segment Global GCC

GNSS 260.0 7.0
54%
GIS 88.5 2.6
20%
Earth Observation 75.9 3.0
3D Scanning 14.2 0.5
GNSS GIS Earth Observation 3D Scanning
Total 438.6 13.1

18 Sources : Management Discussions , Empact research and evaluation

 GeoSpatial GCC Market Size Assessment (2/2)
• According to the GeoSpatial Readiness Index, which ranks the countries mainly on current
level of applications of GeoSpatial Technology and availability of Infrastructure to support Ranking
Country Points
(2019)
the future growth in this market segment, The United States of America is at number one
position since the last three years, making it the most geospatial-ready country.
• The European region is lead by UK and Germany, which rank 2 and 3, respectively. 1 USA 82.60

• In the GCC, only UAE and Saudi Arabia are the only countries that have a functional
National Spatial Data Infra in place to facilitate easy access to spatial information and 2 United Kingdom 62.16
data.
• In Bahrain, for the implementation of the Bahrain Spatial Data Infrastructure (BSDI), a 28 UAE 26.50
National GIS Steering Committee (NGISSC) has been established which has also
formulated a Data Exchange Policy for the said purpose.
40 Bahrain 18.65
• The GCC region is witnessing an accelerated growth of population translating into a
stable growth rate after the oil crisis and as the region is on a rebound, the use of
information technology and geospatial technology is rapidly rising. 41 Saudi Arabia 18.20
• The GCC region is expected to have a global market share of 3.1% in 2020. The use of
geospatial information and technology is going to continue its steady growth with the
46 Qatar 15.43
market being driven by the GNSS & Positioning and the Earth Observation segment.
• Also these countries have strong government support programs for SMEs and startups,
but geospatial industry in these countries are mainly comprised of distributors, resellers, 62 Oman 10.33
or subsidiaries of foreign geospatial industry.

19 Sources: Reuters, Empact research and evaluation; GSRI Index report for 2019
 GIS Applications in GCC Region

Advanced
Land Base Other Data Operation Basic GIS Advanced
GIS DATA Acquisition Overlay AM/FM Functions GIS Analytics
GIS
Integration.

-Analysis of -Overlay of -Automated -Modelling and -Traffic -Customer

land existing digital mapping Simulation Monitoring complaint
related data. management
-Identification -Facility -Infrastructure -Infrastructure
of purchase -Scanning/ Monitoring Design planning using -Service
policy Digitalization of advanced coverage
-Spatial data -Network inquiry
-Purchase and existing data algorithm
monitoring installation
negotiation -Field Survey management -Sensitivity -Marketing
-Fault Campaign
-Cross check for mapping Analysis
localization -Resource
with onsite -Update allocation -Signal strength -Called ID
-Maintenance localization
measurement process to for network
and resource -Inventory
-Corrections ensure data optimization -Location based
allocation Management
relevance service
-Logistics
coordination
Initiation Planning Execution Closure

20
 Index
 Business Profile
 Industry Overview
 Competitive Analysis
 Analysis of Historical Financials
 Financial Forecast
 Valuation Methodology
 Valuation
 Valuation Drivers
 Disclaimer
 Annexure

21
 Competitive Analysis
• The GCC region holds 3.0% of the market share in GIS/Spatial Analytics solutions, of
which 45% is solution and services business. KSA Geospatial Market Segmentation
• KSA region ranks 4 in the Middle East GIS solution adaption ranking, while 46 in the
5%
world. They come in the category of aspirers which is lead by the UAE.
9%
• The companies listed below hold up to 85%-90% market share in GIS in KSA which is
25%
led by GeoTech and followed by Khatib & Alami and Dar Al Riyadh. Their revenues
either directly or through their local arm are estimated to as follows:
14%

Company Estimated Revenue (2018)

GeoTech SAR 42 Mn 12% 19%

Khatib & Alami SAR 25–30 Mn

• 16%
Dar Al Riyadh SAR 25-27 Mn 85-90%
Market
share
Zaki Farsi SAR 22-25 Mn

MIS SAR 20-25 Mn GeoTech Khatib & Alamy Dar Al Riyadh

Zaki Farsi MIS Dar Al Handasa
Dar Al Handasa SAR 15-20 Mn
Others

22 Sources : Management Discussions , Empact research and evaluation

 Competitive Landscape
For competitive landscape analysis, five direct competitors in GIS Company Khatib & Dar Al Zaki Dar Al
MIS GeoTech
in KSA Alami Riyadh Farsi Handasa
KSA are considered, as considered by GeoTech Management. A
Year Established  1964  2010 1977  1979  1956   2002
comprehensive list of services provided by them is illustrated in
the table. The competitors are: Presence in # of
23 1 1 1 35 -
Countries
• Khatib & Alami: It is multidisciplinary urban and regional GNSS √ √  √ - √ √
planning, architectural and engineering consulting company. CORS - - √ √ - √
• Dar Al Riyadh: Beside GIS services, they are also into Survey √ √ √ √ √ √
Architecture, Construction Management and HR solutions. Planning √ √ √ √ √ √
• Zaki Farsi Group: It has various companies which handle 3D √ √ - √ √ √
different target segment - Consultancy, Development ,
Satellite √ - - √ - √
Maps, IT Solutions.
Aerial √ √ - √ √ √
• MIS: Al Moammar Information Systems Co. is a public listed
Geospatial Data √ √ √ √ √ √
company, which provides trageted solution to cater specific
IT & eGov. √ √ √ √ √ √
need of various sectors.
Software √ - - √ √ -
• Dar Al Handasa: It is a privately-owned international
Hardware √ - - - √ -
multidisciplinary consulting organization in engineering,
architecture, planning, environment, project and Military / Power - - - √ - -
construction management, facilities management, and Training - √ - √ - -
economics. Construction √ √ √ - √ -

BFSI   - - √ - -

23 – Not Available, Sources : Management Discussions , Empact research and evaluation

 Competitive Landscape for GIS Market in KSA (1/2)
Empact has used a 2X2 matrix to analyse the level of competitive rivalry and the structure of competition in the GIS segment in KSA. The Y-axis
represents the extent of ‘internationalization’ while the X-axis represents the offered service variety by the respective GIS Companies in the Kingdom of
Saudi Arabia.

International
Presence

International presence with focus International presence with

on limited service areas high degree variety of service
offerings
Geographic Presence

Regional Presence

Domestic or regional presence Domestic presence with high

with focus on limited services degree of service variety
Only Local
Presence

Low Service High Service

variety variety
Service Variety
 Competitive Landscape for GIS Market in KSA (2/2)
An acquisition of local GIS players in KSA is in line with the regional trends, wherein, the global firms with high level of internationalization are acquiring local players to
gain access and penetration in the region. In this context. GeoTech profile makes it an enviable target for acquisition by international players who can gain competitive
advantage against their international peers and reap immediate benefits in terms of both its ability to seamlessly bid for large government projects.

International
Dar Al
Presence Khatib & Handasa
Alami GeoTech will gain more
local presence helping
it to overcome its
current issues of
having foreign
Geographic Presence

GeoTech GeoTech
Regional Presence

Pre-acq* Post-acq* ownership and win

more government
projects, when
compared to an
international player.
Dar Al MIS This will also help
Riyadh GeoTech target
industry specific
Only Local

solutions, such as, BSFI

Presence

& Military projects.

Zaki
Farsi

Low Service High Service

variety variety
*Pre-acq: Pre-acquisition; Service Variety
**Post-acq: Post-acquisition;
 Index
 Business Profile
 Industry Overview
 Competitive Analysis
 Analysis of Historical Financials
 Financial Forecast
 Valuation Methodology
 Valuation
 Valuation Drivers
 Disclaimer
 Annexure

26
 Analysis of Historical Financials: Income Statement
• The company revenue has been widely varying; this was mainly due to lack of cash flows from
Government based projects which result in majority of the revenue.
GeoTech Revenue (in SAR Mn)
• Cost of sales as a percentage of revenue has been in the range of 40% to 70% between 2014 to 2019.
• General and administrative expenses, which are not completely dependent on revenue, vary between
9% to 30% of revenue . 59.7

• As this is not a highly capital intensive industry, the company’s fixed assets (and therefore, the
depreciation expense) remain almost constant, at ~2-4%.
• The company has had positive net profits (from 2014-2019) in spite of the turbulent market conditions
across GCC. 43.8 Net
42.5
Profit
• In 2019, with the revenue less than 1/3 rd its highest value, the company closed its financial year with a
positive bottom line. 29.2
Year 2014 2015 2016 2017 2018 2019
Revenue growth 133% -48% 163% -29% -58%
Cost of sales 67% 70% 59% 40% 52% 65% 22.7
GP % 33% 30% 41% 60% 48% 35% 18.8 17.9
General & Admin Expenses 20% 10% 20% 9% 15% 30% 12.5

EBITDA Margin 13% 19% 21% 51% 33% 6%

6.5
Depreciation 4.2% 1.9% 3.2% 1.3% 1.7% 3.4%
3.9
Net Profit% 7.3% 14.9% 17.0% 48.8% 29.3% 2.5% 1.4 0.5

Profit in SAR MN 1.37 6.52 3.85 29.15 12.45 0.45 Series1

2014 2015 2016 2017 2018 2019

27 Sources : Management Discussions , Empact research and evaluation

 Analysis of Historical Financials : Revenue
• GeoTech has various revenue streams, of which Photographic and Satellite mapping and Geospatial data Revenue Split in 2018
analysis are responsible for 60% of the total revenue in the year 2018. Whereas, IT and Consultancy
projects have provided a steady revenue of SAR 2.5-3 Mn (8-10% of revenue) between 2014 to 2018. 4%
6% 16%
• The revenue from Terrestrial surveying and mapping projects contributed 16% of the revenue in the year
2018, and have been at a constant range since 2016. The geodetic engineer projects revenues have
increased from 9% in 2014 to 29% in 2018.
29% 16%
• The company is working on projects worth SAR 36Mn, with project period of 1-3 Years. These projects
include maintenance and other services.

Revenue in SR Mn 2014 2015 2016 2017 2018

Geodetic Engineering 8.80 11.82 3.43 14.61 6.77 30%

Terrestrial Survey & Mapping 6.19 1.08 3.88 10.97 6.66

Photogrammetric & Satellite Mapping 0.25 19.39 4.49 19.63 12.62

Geodetic Engineering
Geospatial Data & Information System 1.72 9.61 7.57 12.26 12.17
Terrestrial Survey & Mapping
Planning and Consultancy Services 0.72 0.97 1.59 1.35 2.67 Photogrammetric & Satellite Mapping
Geospatial Data & Information System
IT & e-Government Services 1.12 0.88 1.76 0.88 1.63
Planning and Consultancy Services
Total 18.81 43.75 22.71 59.70 42.52 IT & e-Government Services

28
 Analysis of Historical Financials : Expense
Direct Costs : Cost of Sales (in SAR Mn)
• Cost of Sales majorly comprises of three elements – Staff salary, material purchases and 30.7
sub contracting expenses.
• Cost of sales as a percentage of revenue has been in the range of 55% to 65% of the 23.8
22.3
revenue from 2014 to 2018..
• As seen in any service based industry, GeoTech also reflects similar direct expenses 12.6 13.4
11.6
pattern where the major expense is towards the Salary of technical staff.
• Material purchase costs vary over the period under observation, this is mainly due to the
purchases of instruments made for a particular project but were utilized over multiple
years. 2014 2015 2016 2017 2018 2019

Indirect costs : General and Admin Expenses (in SAR

• General and administrative expenses constitute of administrative staff salary, rent, ticketing Mn)
6.39
and travelling expense and consulting charges.
5.39 5.38
• These expenses vary in the range of 15%-20% with respect to revenue, but year on year 4.57 4.83
3.83
have show a growth from about 3% to 5% (in value terms).
• Salary is a major operational expense, amounting to 60%-70% of the total operational
expenses.

2014 2015 2016 2017 2018 2019

29 Sources : Management Discussions , Empact research and evaluation

 Analysis of Historical Financials : Balance Sheet (1/2)

Assets in SAR Mn 2014 2015 2016 2017 2018 2019

Current Assets

Cash On hand & at Bank 1.02 1.98 3.96 16.17 7.79 10.57

Accounts Receivables 12.65 15.74 8.44 11.42 19.82 3.96

Total Current Assets 13.67 17.72 12.40 27.59 27.61 14.53

Fixed Assets (PPE) 4.13 4.14 3.47 4.03 3.53 3.50

Total Assets 17.81 21.87 15.87 31.62 31.14 18.03

• The company’s cash and bank balances are adequate to meet its working capital requirements.
• They keep zero inventory as it’s a service based business.
• Trade receivables have been high through the period under analysis, due to delay in payments from government clients, with payments generally
being delayed by 6 months.
• Trade receivables have been generally in the range of 140 to 180 days, but in 2017-18 it went up to 270 days.
• The net value of fixed assets remains constant, at around SAR 4 Mn.

30 Sources : Management Discussions , Empact research and evaluation

 Analysis of Historical Financials : Balance Sheet (2/2)
Liabilities in SAR Mn 2014 2015 2016 2017 2018 2019 Equity in SAR Mn 2014 2015 2016 2017 2018 2019

Accounts payables 2.12 4.63 2.15 24.99 22.47 13.25 Capital 2.00 2.00 2.00 2.00 2.00 2.00
Customer Advance 4.62 2.47 1.25 0.44 0.41 0.18 Statutory Reserve 0.98 1.00 1.00 1.00 1.00 1.00
Accrued Expenses 1.16 0.15 0.83 0.69 0.08 0.00 Partner current account 1.53 0.00 0.00 0.00 0.00 0.00
Short Term Loan - - 1.00 - - - Retained Earnings 5.16 10.53 7.29 1.85 3.48 -1.59
Provision for Tax & Zakat 0.25 1.09 0.34 0.66 0.67 0.00 Total Owners Equity 9.66 13.53 10.29 4.85 6.48 1.41
Provision for EOS - - - - 1.03 3.19
Total Liabilities & Equity 17.81 21.87 15.87 31.62 31.14 18.03
Total Liabilities 8.14 8.34 5.57 26.77 24.66 16.62

• As the company has had adequate cash balances, it has only once required a short term loan to tide over cash shortfalls in the year 2016.
• Trade payables have been extended, a consequence of higher trade receivables. As a result, the payables days were as high as 180-270 days.
• The Company started to implement the End of Service Liability norms in the year 2018, as per the Labour Law article 84/85.
• The accrued expenses are relatively lower.
• The customer advances are only seen in projects with the private sector, but are not very frequent.
• The company has an invested equity amount of SAR 2 Mn, and a statutory reserve of SAR 1 Mn, and has turned up a positive retained earning year after year.

31 Sources : Management Discussions , Empact research and evaluation

 Index
 Business Profile
 Industry Overview
 Competitive Analysis
 Analysis of Historical Financials
 Financial Forecast
 Valuation Methodology
 Valuation
 Valuation Drivers
 Disclaimer
 Annexure

32
 Revenue Assumptions
• As the market in KSA for GIS services is currently dominated by government projects, Revenue Projections for 2020 Amount (SAR Mn)
coupled with the fact that ~85% of Geotech revenue accrues from such projects, the Signed Projects  
Al Madinah Project 8.22
projected revenues are heavily dependent on award of such projects.
NIC Maintenance 1.08
• For the purpose of estimating revenue, Empact’s approach was to consider 2020 as the NPP Project 8.11
base year and then to project revenue, taking the global market trends and previous years’ PIF- RMO Project Phase 2 1.13
PIF – Palaces 0.38
revenue trend of Geotech in consideration.
Total Value (A) 18.92
• Revenue projections for 2020 include revenue of SAR 18.9Mn from contracts which are Revenue Booking Probability 100%
already signed; SAR 35.9Mn is from the projects that are in advanced stages of discussion; Revenue from Signed Projects (D) 18.92
   
and SAR 14.5Mn are from the contracts that are not yet signed. Hence, the revenue
Project in advanced stage of discussion  
booking probability is rationalized by considering a probability of realization as 100%, 80%, SEC GIZAN 8.74
and 20%, respectively. Jeddah GIS 8.48
Momra Mulayssa 18.0
• Revenue projected for 2020 is SAR 50.6 Mn. For future years, Empact has estimated a
Other 0.74
CAGR of 5%, as compared to global Geospatial and Services CAGR of 7.6%. Total Value (B) 35.96
• Also, considering GeoTech revenue trend, which shows de-growth after two successive Revenue Booking Probability 80%
Revenue Estimated (E) 28.77
growth years and as per the companies current workforce utilization, the projected
   
revenue is also fluctuating. Projects in Pipeline  
Land & 3d GIS Services in Urayirah & Judah 14.5
Projections 2020 2021 2022 2023 2024 2025 2026 Total Value (C) 14.5
Revenue Booking Probability 20%
Revenue ( SAR Mn) 50.6 53.1 55.8 39.1 48.8 51.3 53.8 Revenue from Unsigned Projects (F) 2.9

%Growth 5% 5% -30% 25% 5% 5% Total Value of Projects (A+B+C) 69.4

Total Revenue Projection for 2020 (D+E+F) 50.6

33 Sources : Management Discussions , Empact research and evaluation

 Expense Assumptions
Direct Costs :
• Cost of sales in the earlier years of operations have been fluctuating between 55% to 65% Cost of Sales (in SAR Mn)
of the revenue. 32.2
30.1 30.7
28.7 29.3
• The Salaries, Materials Purchased and Subcontractor Costs form a significant part of cost 27.4
25.7
of sales.
• In accordance, in Empact’s projections, direct costs have been estimated to be 57% to 60%
of revenue over the projected period.
• The increase is due to factors like employee efficiency, inflation and machine rental costs.
• Empact expects wage inflation to be 3%-5% during this period, while materials purchased
and subcontractor costs as a percentage of revenue will be constant and in line with
previous years.
2020 2021 2022 2023 2024 2025 2026

Indirect costs :
General and Admin Expenses (in
• Empact has estimated an annual increase of 3% to 5% in administrative staff salary, rent, SAR Mn)
ticketing and travelling expense and consulting charges.
10.4
• GOSI has been taken as a percentage of Salary, and Maintenance and Repair charges as a 10.2
9.9
percentage of Assets. GOSI is estimated at 9% and Maintenance at 0.5%. 9.7
9.4
• Empact has considered the bank charges as a percentage of revenue, which is estimated to 9.1
8.9
be 0.3%.
• After acquisition, there is a plan to hire a CEO and internal auditor to provide additional
support to the operational activities of Geotech, whose salaries have been incorporated. 2020 2021 2022 2023 2024 2025 2026
34
 Projected Financials
• As observed in historical financials, revenues show high volatility, therefore, this has been reflected in
the projected financials, as well. Project Revenue (in SAR Mn)
• Cost of sales as a percentage of revenue has been projected in the range of 55% to 60% of revenue
55.8
based on the historical financials (around 65% of revenue in the previous years) 53.1 53.8
50.6 51.3
• General and administrative expenses are not completely dependent on revenue, but show annual 48.8
increase of 5% in the historical financials, and have been projected to grow on similar lines; when there
is an expected decrease in the revenue in 2023, G&A expense also are reduced.
39.1
• The company is expected to remain debt free during the projected period due to healthy cash flows
from operations.
• The company is projected to report a positive bottom line for every year in spite the turbulent market
conditions, as evidenced from historical trend.
Year 2020 2021 2022 2023 2024 2025 2026
Revenue growth   5% 5% -30% 25% 5% 5%
12.98 13.32
Cost of sales 55% 55% 55% 67% 61% 61% 61% 13.81 10.15
9.47
8.83
GP % 45% 45% 45% 33% 39% 39% 39%
3.2
General & Admin Expenses 17% 17% 17% 21% 18% 18% 18%

EBITDA Margin 28% 28% 28% 12% 21% 21% 22%

Series1
Net Profit% 26% 25% 25% 8% 18% 19% 19%
2020 2021 2022 2023 2024 2025 2026

Profit in SAR MN 12.98 13.32 13.81 3.20 8.83 9.47 10.15

35 Sources : Management Discussions , Empact research and evaluation

 Capex Estimates

Value of Fixed Asset (in SAR Mn)

5 5 5
4.5
4.13 4.14 4.03 4
3.47 3.52 3.5

2014 2015 2016 2017 2018 2019 2020 2021 2022 2024 2025

• GeoTech has shown a trend of maintaining an overall fixed asset value of around SAR 3.5 Mn. Asset Value in % of Total
SAR (2018) Asset (2018)
• The Fixed assets are divided into Buildings, Vehicles, Devices , Office equipment and Furniture.
Buildings 1,161,600 33%
• Empact has considered the capex equal to the depreciation for any financial year, keeping the value of assets
Vehicles 668,800 19%
constant (as a service based company, it is not expected to acquire substantial fixed assets in the near future)
Devices 176,000 5%
• The Fixed asset depreciation over 2014-2018 is ~ 20% of the value of fixed assets and projected financials
reflect a similar ratio Office Equip. 1,302,400 37%
Furniture 211,200 6%

36 Sources : Management Discussions , Empact research and evaluation

 Working Capital Requirements
Amount as on Forecasted Amount forecasted for 2020 Amount forecasted for
Description Historical 2019 (2020-2026) 2026

Trade receivable days 130- 90 Days 9,483,406 175 – 155 Days 24,258,885 21,377,949

Other receivables Nominal 3,550,239 5% of Revenue 2,529,855 2,690,673

Trade Payables 60 Days 13,428,896 180 – 150 Days 17,916,099 17,350,597

Other Payables 60 Days 179,117 5% of COS 505,971 538,135

Inventories 0 days 0 0 days 0 0

• GeoTech is a service/solution providing company and majority of its working capital requirement arise as salaries to be paid every month, whereas realisation of
revenue is delayed y about 6 months creating a working capital gap.
• Generally all the working capital requirements were met by equity and in past there has been one instance where a working capital loan was taken of SAR 1 Mn.
• During the financial year 2017 – 2018, the company faced issues due to delay in receivable from government projects, where, in some cases receivable days
extended over 200 days. During this time GeoTech was supported by its partners/suppliers by extending the payable days by over 200 days, and helping them
to perform smoothly without leaning over high debt during the period.
• The company is expected to improve its receivable and payable days and is expected to bring in working capital within forecasted range by 2022, as the
economic condition in the region is improving and local governments are expected to increase their budgets for various projects in this field.
• The inventory in GeoTech is nil and has no impact on the working capital requirement. Also, any material required for a project is considered as an asset.

37 Sources : Management Discussions , Empact research and evaluation

 Index
 Business Profile
 Industry Overview
 Competitive Analysis
 Analysis of Historical Financials
 Financial Forecast
 Valuation Methodology
 Valuation
 Valuation Drivers
 Disclaimer
 Annexure

38
 Data Sources

 Audited
• Financials for the year ended 2015, 2016, 2017, 2018 and 2019 Audited Financials Secondary Data
Management Inputs
for 2015 - 2019 Sources
 Management Inputs
• Assumptions for the projected financial statements
• Market scenario, trends and size
• Information on various projects to be executed in 2020
• Future plans to ensure growth of the company
 Secondary Data Sources Assumptions for
Valuation
• Economic data of Saudi Arabia – IMF , World Bank GDP estimates and Population estimates
• Various research reports on GIS and GNSS sector in GCC and World –
• Market segmentation using geographic information systems (GIS)
• GIS in Other Gulf Countries: An Exploration
Valuation Approach
• Various research reports on Geospatial Industry –
• GeoBuiz Reort of 2018 by GeoSpatial Media and Communications
• Reuters article on GIS technology
• Empller Article on GIS Companies in Dubai, UAE, Saudi Arabia
Final Valuation
• Data on peer companies operating in the similar segment – Company annual reports.

39
 Valuation Methodologies
Discounted
Cashflow Approach
 Under the DCF method, the
projected free cash flows to
the business are discounted
at the weighted average cost
of capital. The sum of the
discounted value of such
free cash flows is the value
of the firm.
 Free cash flows are the cash
flows expected to be
generated by the company
that are available to the
providers of the company’s
capital and debt.
40
Valuation Approaches
Asset Approach
 The asset-based valuation
technique is based on the
value of the underlying net
assets of the business, either
on a book value basis or
realizable value basis or
replacement cost basis.
 This valuation approach is
mainly used in cases where
the firm is to be liquidated
i.e. it does not meet the
“going concern” criteria or in
case where the assets base
exceed earnings capability.
Market Multiple
Value Approach
 Under the MV Approach,
Empact has arrived at a fair
value of the shares
considering the volume
weighted average price of
the shares being valued,
over time.
 This approach involves using
valuation multiples like
revenue to market cap,
EBITDA to market cap , PAT
to market cap and so on of
companies in the same or
similar lines of businesses.
 Valuation Methodology

Valuation based on DCF Valuation based on Valuation based on Recommended Valuation

Approach Multiples Approach Asset Approach for GeoTech as on 1st-Jan-
2020

(A) (B) (C) (Valuation)

75% of the value as per the DCF 20% of the value as per the market 5% of the value as per the market
method value method value method

Basis of Choice of Valuation Methodology:

• Empact recommends to use a hybrid valuation approach by deploying a combination of DCF method, Market multiple and Asset based valuation
approach for the valuation of GeoTech.
• The income approach (DCF method) has been given the highest weightage as it represents the business realities in the most accurate manner.
• 20% weightage has been given to multiples approach in order to incorporate the effect of scale of operations as well as international and regional
trading multiples of similar roles.
• Also 5%, weightage has been taken as Asset valuation, which is a type of business valuation that focuses to highlight on the net asset value of a
company.
• The overall recommended valuation is the weightage average of value derived from the methods and presented in the subsequent sections of the
current report.

41
 Index
 Business Profile
 Industry Overview
 Competitive Analysis
 Analysis of Historical Financials
 Financial Forecast
 Valuation Methodology
 Valuation
 Valuation Drivers
 Disclaimer
 Annexure

42
 Valuation - DCF Approach
 DCF Calculation 2020 2021 2022 2023 2024 2025 2026
Cash flow -11,504,340 4,262,885 6,431,816 8,239,347 2,338,755 4,386,897 4,717,775
Dividend Paid 6,491,592 6,657,871 6,905,895 1,600,673 4,416,120 4,736,305 5,074,955
Terminal Value             54,887,107
Discount Cash Flow -4,211,686 7,709,262 7,910,820 4,903,613 2,828,249 3,209,428 19,117,420

Total DCF in SAR 41,467,106

Cash as on 31/12/2019 10,570,868
Value of equity in SAR 52,037,974
Value in SAR Mn (100%) as at January 2020 52.0

WACC Calculations Rate Remarks

As per Empact internal evaluation. This is based on management strength, business SWOT analysis and financial
Rm (Company risk premium) 8.6%
position of the firm
Beta 1.20 Standard Beta for unlisted company of this size
Risk Free Rate 2.7% US 10yr treasury yield
Country risk premium 6.0% It captures geo political risk associated with the country, country fiscal health, political stability.
Debt/Equity Ratio 0%
Cost of Equity 20.7% Calculated
Cost of Debt 7.0% Effect interest cost as per past financials
WACC 20.7% Weighted Average Cost of Capital (Calculated)
Growth Rate 1% GDP growth estimates

43
 Valuation – Asset and Multiples Approach
Multiple Valuation Revenue EBITDA PAT Multiple Asset Valuation Asset Premium /
Multiple Multiple Valuation
(in SAR) Value Discount
Al Mommar Info. Sys. Co. 12.2 16.1 1.2
Building and Staff Villa 2,349,258 40% 3,288,961
Genesys International Corp 6.6 0.0 1.7
TeleNav Inc. -6.9 -6.6 1.0 Furniture 600,180 -40% 360,108
L&T Infotech Ltd. 12.6 18.2 3.2
Cyient Ltd. 5.4 8.6 1.0 Company Cars 1,680,707 -30% 1,176,495

Surveying and Field

5,333,909 -20% 4,267,127
Equipment
Average Multiple 1.6 6 7.2
Discounted Multiple Value 0.96 3.5 4.3 Office Equipment 312,736 -20% 250,189
FY 20 Projections 50.6 14.1 12.9
Software 411,826 -30% 288,278
Valuation ( SAR Mn) 48.6 50.5 56.4

Average valuation 51.9

Valuation 9,631,158

Discounting Multiple Premium Valuation

Multiple Asset Value
Factor 40% Value Discount SAR 9.63 Mn

FY 20 Valuation
Multiple Value Estimate SAR 51.9 Mn

44
 Valuation Summary – Proposed Valuation

DCF Value Multiples Value Asset Value

SAR 52.0 Mn SAR 51.9 Mn SAR 9.63 Mn

SAR 50 Mn

Weightage Weightage Weightage

75% 20% 5%

Empact has considered a blended approach as the most robust method of valuation as this takes into account the advantages and mitigates the disadvantages of
each valuation method.
A higher weight was given to the DCF approach due to the scale and geography of GeoTech operations. However considering the valuation arrived at by DCF
and Multiple methods is nearly the same a change in weightage would have nominal effect.
GeoTech has negligible or no no long-term and short-term debts .

45
 Index
 Business Profile
 Industry Overview
 Competitive Analysis
 Analysis of Historical Financials
 Financial Forecast
 Valuation Methodology
 Valuation
 Valuation Drivers
 Disclaimer
 Annexure

46
 Valuation Drivers
Products and Services
• GeoTech has diversified revenue streams, and provides services
and solutions across Geodetic Engineering, Terrestrial
Surveying & Mapping, Smart City Services and IT and e-
Government Services.
• They have also worked on projects in other regions of GCC and
also in the African region.
• They have seen through multiple volatile economic cycles.
Skilled Employees and Technology
• GeoTech considers its highly educated, skilled and competent
staff, who are experienced in geomatics engineering and IT
Services as it most important asset.
• The team is guided by highly experienced and technically
sound, project managers and top level management team.
• They have been regularly investing in acquiring latest
technology such as “Drone eBee Plus RTK”, “Drone
DeltaQuad Pro” and “Orbit MM Feature Extraction” Software.
47
Client and Customer Partnerships
• GeoTech is a 2 decade old company in KSA and has a strong
customer base of 70 clients, with a high client retention rate.
• They have good liaison with government bodies and has
worked on major government projects in MOMRA and
Municipality of Riyadh.
• During the issues with gov. receivables, both vendors /
partners have supported them by extending the payables.
Access to Capital and Capital Structure
• GeoTech, has high fixed costs and minimal debt (almost 0),
which has helped them to survive the slow market conditions
and delay in receivables.
• They operate efficiently to effectively maintain the working
capital requirements as a result, the company has largely
remained debt free in the past.
• They have a strong order book position to meet the revenue
expectations.
 Index
 Business Profile
 Industry Overview
 Competitive Analysis
 Analysis of Historical Financials
 Financial Forecast
 Valuation Methodology
 Valuation
 Valuation Drivers
 Disclaimer
 Annexure

48
 Disclaimers (1/2)
• This report , its contents and the results herein are specific to (i) the purpose of the valuation agreed per the terms of our engagement (II) the date of this report (iii) the
financial statements of GeoTech Technologies of Geography, Engineering, Industry and Trade (L.L.C), and the specified contracts as on 15th Dec 2019 and other
information provided by the management on key events after 15th Dec 2019 till the date of the report.
• The management has represented that the business activities of GeoTech Technologies of Geography, Engineering, Industry and Trade (L.L.C) have been carried out in
the normal and ordinary course between 15th Dec 2019 and the date of this report and that no material changes adverse changes has occurred in the operation and
financial position between 15th Dec 2019 and the report date
• An analysis of this nature is necessarily based on the prevailing stock market ( both domestic and international ), financial , economic and other conditions in general
and industry trends in particular as in effect on, and the information made available to us as of , the date hereof. Events and transactions occurring after the date hereof
may affect this report and the assumptions used in preparing it , and Empact do not assume any obligation to update , revise or reaffirm this report.
• The ultimate analysis will have to tempered by exercise of judicious discretion by the valuer and judgement taking into account all the relevant factors. There will always
be several factors e.g. management capability , present and prospective competition , market sentiment etc which are not evident form the face of the balance sheet
but which will strongly influence the worth of a share / business. This concept is also recognised in judicial decisions.
• Valuation is based on estimates of future financial performance or opinions that represent reasonable expectations at a particular point in time, but such information,
estimates or opinions are not offered as predictions or as assurances that a particular level of income or profit will be achieved, that events will occur, or that a particular
price will be offered or accepted. Actual results achieved during the period covered by the prospective financial analysis will vary from these estimates, and the
variations may be material. Consequently, this information cannot be relied upon to the same extent as that derived from audited accounts for completed accounting
periods.
• In the course of the valuation, Empact was provided with both written and verbal information, including market, financial and operating data. In accordance with the
terms of our engagement, Empact has assumed and relied upon, without/ with limited independent verification, (i) the accuracy of the information that was publicly
available and was considered as part of our analysis for this Report and (ii) the accuracy of information made available to us by GeoTech Technologies of Geography,
Engineering, Industry and Trade (L.L.C).
 Disclaimers (2/2)
• Valuations are based on the financials provided from 2014 – 2018 and selective financials available for 2019.
• In accordance with our scope of work and in accordance with the customary approach adopted in valuation exercises in the GCC, Empact has deployed a suitable
valuation methodology based on the business segment and the client operations.
• For the above, Empact has based its analysis and estimates on audited financials submitted by the client by an approved auditor in KSA. However, Empact has not
reviewed or otherwise investigated the historical financial information provided in the audited financials. Accordingly, the potential acquirer may conduct their
independent due-diligence to verify the same.
• Empact has verified the data provided by the client in accordance with its market research and sector dynamics as observed through market research. However, Empact
has not carried out an legal or commercial due-diligence and cannot held liable for any discrepancies found with respect to such aspects.
• Accordingly, Empact is not in position to opine on the investment worthiness of the business or offer any form of assurance regarding the truth and fairness of the
financial position as indicated in the audited financial statements. Also, with respect to explanations and information sought from the client, Empact has been given to
understand by the Management of the client that they have not omitted any relevant and material information related to the firm which may adversely impact the
forecasted valuations for the firm.
• All the analysis and conclusions provided in this valuation report are based on the audited financials certified by an independent third party audit firm, secondary and
market research conducted by Empact during this exercise, management inputs with respect to operations, and information given by/on behalf of the client and reliance
on public information. The Management of the company has indicated to us that they have understood that any omissions, inaccuracies or misstatements may materially
affect the valuation analysis/results. Accordingly, Empact assumes no responsibility for any errors or discrepancies arising due to any errors in the information furnished by
the client.
• As per the analysis done by Empact, nothing has come to its attention wherein the indicated information provided had material errors or inconsistencies.
• The current valuation report assumes that the company is in 100% compliance with relevant laws and regulations applicable to its operations unless otherwise stated in a
written format. Empact also assumes that the client will be in position to furnish the necessary documentary evidence as requested upon by the potential
investors/buyers.
• Further, except as specifically stated to the contrary, this Valuation Report has given no consideration to matters of a legal nature, including issues of legal title and
compliance with local laws, and litigation and other contingent liabilities that are not recorded in the audited/unaudited balance sheet of the client.
 Index
 Business Profile
 Industry Overview
 Competitive Analysis
 Analysis of Historical Financials
 Financial Forecast
 Valuation Methodology
 Valuation
 Valuation Drivers
 Disclaimer
 Annexure

51
 Annexures – Income Statement
All Values are in Saudi 31-Dec-14 31-Dec-15 31-Dec-16 31-Dec-17 31-Dec-18 31-Dec-19 31-Dec-20 31-Dec-21 31-Dec-22 31-Dec-23 31-Dec-24 31-Dec-25 31-Dec-26
Riyals

Revenue 18,807,464 43,746,136 22,711,093 59,695,566 42,520,488 17,911,738 50,597,102 53,126,957 55,783,305 39,048,314 48,810,392 51,250,912 53,813,457

Salaries & Its related 3,311,278 6,063,559 6,856,062 6,976,280 6,135,878 6,997,112 8,396,534 8,816,361 9,257,179 9,720,038 10,206,040 10,716,342 11,252,159

Subcontracts 787,000 2,710,000 1,115,360 9,118,308 9,328,596 809,831 10,119,420 10,625,391 11,156,661 7,809,663 9,762,078 10,250,182 10,762,691

Purchase Materials 3,880,000 11,342,500 1,791,000 5,451,000 3,194,000 1,128,832 5,059,710 5,312,696 5,578,331 3,904,831 4,881,039 5,125,091 5,381,346

Others 4,662,888 10,639,229 3,698,442 2,325,068 3,656,529 2,669,467 3,784,268 3,947,572 4,159,041 4,335,457 4,490,436 4,651,809 4,819,840

Cost of Revenue - - - - - - - - - - - - -
12,641,166 30,755,288 13,460,864 23,870,656 22,315,003 11,605,241 27,359,933 28,702,020 30,151,212 25,769,989 29,339,594 30,743,424 32,216,036
Gross Profit 6,166,298 12,990,848 9,250,229 35,824,910 20,205,485 6,306,496 23,237,169 24,424,937 25,632,093 13,278,324 19,470,798 20,507,488 21,597,421

   

G&A Expenses -3,831,017 -4,578,534 -4,583,739 -5,390,878 -6,392,424 -5,386,242 -9,121,084 -9,967,765 - -8,994,893 -9,412,090 -9,791,990 -
10,466,154 10,187,257
   

EBITDA 2,402,452 8,453,726 4,672,946 30,480,593 13,849,554 1,057,869 14,116,085 14,457,171 15,165,939 4,283,431 10,058,709 10,715,498 11,410,164

Depreciation -786,590 -845,252 -726,510 -766,622 -731,003 -605,940 -800,000 -800,000 -1,000,000 -1,000,000 -1,000,000 -1,000,000 -1,000,000

   

Net Profit after Tax 1,368,660 6,522,749 3,852,953 29,153,298 12,452,495 451,929 12,983,183 13,315,742 13,811,791 3,201,345 8,832,241 9,472,610 10,149,910

Operational Bonus 0 0 0 0 0 947,261 1,014,991

Net Profit 1,368,660 6,522,749 3,852,953 29,153,298 12,452,495 451,929 12,983,183 13,315,742 13,811,791 3,201,345 8,832,241 8,525,349 9,134,919
Net Profit as % of 7.28% 14.91% 16.97% 48.84% 29.29% 2.5% 25.7% 25.1% 24.8% 8.2% 18.1% 18.5% 18.9%
Revenue

52
 Annexures – Balance Sheet
31-Dec-
All Values are in Saudi Riyals 31-Dec-14 31-Dec-15 16 31-Dec-17 31-Dec-18 31-Dec-19 31-Dec-20 31-Dec-21 31-Dec-22 31-Dec-23 31-Dec-24 31-Dec-25 31-Dec-26
Assets    
Current Assets    

Cash On hand & at Bank 17,736,63

1,019,685 1,984,706 3,962,745 16,174,599 7,792,956 8,610,661 (1,197,409) 3,065,475 9,497,292 9 20,075,393 24,462,290 29,180,064

AR– Trade 16,267,31 24,258,88 24,744,06 25,217,11 17,117,06

5,131,705 7,463,937 6,583,223 9,686,480 3 3,065,570 5 2 1 9 20,727,701 21,062,018 21,377,949

AR – Other 7,520,274 8,274,148 1,853,498 1,728,931 3,550,239 895,587 2,529,855 2,656,348 2,789,165 1,952,416 2,440,520 2,562,546 2,690,673
13,671,66 17,722,79 12,399,46 27,610,50 37,503,56
Total Current Assets 4 1 6 27,590,010 8 12,571,81 25,591,33 30,465,88 8 36,806,12 43,243,613 48,086,854 53,248,686
9 0 6 3
Fixed Assets
4,133,942 4,144,105 3,467,544 4,027,461 3,525,773 3,500,000 4,000,000 4,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000

Total Assets 17,805,60 21,866,89 15,867,01 31,136,28 16,071,81 29,591,33 34,465,88 42,503,56 41,806,12
6 6 0 31,617,471 1 8 48,243,613 53,086,854 58,248,686
9 0 6 3
Liabilities & Partner's Equity    
Current Liabilities    

AP - trade 2,119,063 4,625,019 2,149,795 22,474,76 13,249,77 17,990,63 15,891,69 16,692,06 14,286,93 15,925,349 16,658,389 17,426,011
24,985,371 8 9 8 3 8 8
Other Credit Balance 0 776,467 0 438,626 410,239 179,117 505,971 531,270 557,833 390,483 488,104 512,509 538,135
Provision for EOS 0 0 0 0
1,030,000 1,233,976 3,194,183 3,484,514 3,789,362 4,063,725 4,349,063 4,645,814 4,954,435

Total Current Liabilities 8,141,204 8,336,560 5,574,089 26,772,427 24,657,01 14,662,87 21,690,79 19,907,47 21,039,26 18,741,14 21,816,712
5 2 2 7 3 6 20,762,516 22,918,580
Owners Equity    
Capital 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000

Statutory Reserve 980,896 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000

10,530,02 18,464,30 20,064,97

Retained Earnings 5,157,402 7,292,921 1,845,044 3,479,266 (1,591,054) 4,900,538 11,558,40 28,270,142
2 9 4 7 24,481,098 32,330,106

13,530,02 10,292,92 14,558,40 21,464,30

Total Owners Equity 9,663,929 6,479,266 1,408,946 7,900,538 23,064,97 27,481,098 35,330,106
2 1 4,845,044 9 4 7 31,270,142

53 and Equity 17,805,13 21,866,58 15,867,01 31,136,28 34,465,88 42,503,56

Total Liabilities 3 2 0 31,617,471 1 16,071,81 29,591,33 6 8 41,806,12 48,243,613 53,086,854 58,248,686
9 0 3
 Annexures- Cash Flow Statement
All Values are in Saudi
Riyals 31-Dec-14 31-Dec-15 31-Dec-16 31-Dec-17 31-Dec-18 31-Dec-19 31-Dec-20 31-Dec-21 31-Dec-22 31-Dec-23 31-Dec-24 31-Dec-25 31-Dec-26
Operating Activities    
Net Profit 1,368,660 6,522,749 3,852,953 29,153,298 12,452,495 451,929 12,983,183 13,315,742 13,811,791 3,201,345 8,832,241 8,525,349 9,134,919
Adjustment to non cash
Items
+Fixed assets
786,590 845,252 726,510 766,622 731,003 605,940 800,000 800,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
depreciation
Changes in Assists and
 
Liabilities
-Changes in Current
-900,813 -3,086,106 7,301,364 -2,978,690 -8,402,141 15,856,395 -22,827,582 -611,670 -605,866 8,936,791 -4,098,736 -456,344 -444,058
Assets
+Changes in Trade 70,983 195,356 -2,475,224 22,835,576 -2,510,603 -9,224,989 4,740,860 -2,098,946 800,375 -2,405,130 1,638,411 733,040 767,622
payables
+Changes in Other 0 0 -536,963 -964,362 -638,300 -307,074 326,854 25,299 26,563 -167,350 97,621 24,405 25,625
Credit Balance
Change in provision for
0 0 0 0 1,030,000 203,976 1,960,207 290,331 304,848 274,363 285,338 296,751 308,621
EOS
Net Cashflow from 1,325,420 4,477,251 7,782,915 49,139,568 2,408,963 6,920,121 -2,016,479 11,720,756 15,337,712 10,840,020 7,754,875 10,123,202 10,792,729
Operating Activities
   
Investing Activities    
-Changes in Fixed Assets
-852,492 -855,415 -49,949 -1,326,539 -229,315 -580,167 -1,300,000 -800,000 -2,000,000 -1,000,000 -1,000,000 -1,000,000 -1,000,000
(incl Dep)
Net Investing Activities -852,492 -855,415 -49,949 -1,326,539 -229,315 -580,167 -1,300,000 -800,000 -2,000,000 -1,000,000 -1,000,000 -1,000,000 -1,000,000
     
Financing Activities    
-Profit distribution 0 -1,000,000 -5,000,000 -7,292,921 0 -5,522,249 -6,491,592 -6,657,871 -6,905,895 -1,600,673 -4,416,120 -4,736,305 -5,074,955
Net Cashflow from 0 -2,656,815 -4,000,000 -8,598,135 0 -5,522,249 -6,491,592 -6,657,871 -6,905,895 -1,600,673 -4,416,120 -4,736,305 -5,074,955
Financing Activities
     
Cash at the beginning of
year 546,757 1,019,685 1,984,706 5,717,672 44,932,566 7,792,956 8,610,661 -1,197,409 3,065,475 9,497,292 17,736,639 20,075,393 24,462,290
Increase in cash 472,928 965,021 3,732,966 39,214,894 2,800,574 817,705 -9,808,071 4,262,885 6,431,816 8,239,347 2,338,755 4,386,897 4,717,775
Cash at end of the year 1,019,685 1,984,706 5,717,672 44,932,566 47,733,140 8,610,661 (1,197,409) 3,065,475 9,497,292 17,736,639 20,075,393 24,462,290 29,180,064

54
 Annexures – CGRI 2019 Parameters
Pillars Sub Pillars Factors Weightage
Stages of NSDI
Scale and Frequency of Update of Available Thematic Layers
Topographic and Earth Observation Data Infrastructure
Open and Linked Data
Earth Observation Infrastructure and Data Resolutions
Data Infrastructure Satellite-Based Positioning Systems 20%
Positioning Infrastructure Satellite-Based Augmentation Systems
Ground-Based Augmentation Systems (RTK Base Stations and GCPS)
Platforms and Portals Standards Stage of Geospatial Technology Architecture
National Geospatial Policy
Open Data Policy
Core Geospatial Policy Framework
Space-EO-GNSS Policy
Drone Policy
Policy Framework 10%
Science and Technology (S&T) and Innovation Policy
Information and Communication Technology Policy + Telecom Policy
Enabling Policies Framework
Digital/AI/IoT Strategy
BIM Plan/Strategy/ Policy
Research Courses
Knowledge Creation
Post-Graduate Courses
Institutional Capacity Graduate Courses 20%
Foundational Academia Diploma Courses
Certificate Courses
Mapping or Service Level
Asset Management/Business Process Modelling
User Adoption   Analytics and Workflow Level 20%
System Integration Level
Enterprise Level
Industry Capacity Existence Of Industries In Different Geospatial Technology Segments
Industry Networks
Industry Fabric Industry Networks 30%
Knowledge Networks
Innovation Promotion Incubation And Accelerator Programs

These parameters are used by GeoSpatial Readiness Index to rank a country’s acceptance towards Geospatial services; the above table represents the Index’s
55
methodology
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