Keller Group Plc · LSE:KLR
Keller — Corporate Update (2008)
17 slides from Keller's corporate update, 2008
Slide 1: Keller in the Middle East
Keller Group plc Keller in the Middle East Wolfgang Sondermann
Slide 2: Agenda
Agenda • Introduction • Keller presence in the Middle East • Performance trend • Looking ahead • Summary 1
Slide 3: Introduction
Introduction • Total Middle East construction market over $200bn in 2006* – Gulf Cooperation Council (GCC) countries comprised $143bn* – GCC construction market projected to grow at 10% a year to 2011* – 8% a year from 2011-2016* • Keller present in region for many years – market leader in ground im
Slide 4: Keller presence in the region
Keller presence in the region ALEXANDRIA BAHRAIN CAIRO DAMMAM UAE DUBAI • Focussed on Gulf Cooperation Council (GCC) countries 3
Slide 5: Our main markets
Our main markets Established Businesses Markets for Individual Contracts Kingdom of Saudi Arabia (Saudi) Sultanate of Qatar (Qatar) Population 28m Population 1m 2006 construction market* US$79bn 2006 construction market* US$7bn Growth to 2011* 8% per annum Growth to 2011* 8% per annum United Arab Em
Slide 6: Key characteristics - Saudi
Key characteristics - Saudi Keller Saudi Arabia • Construction industry booming with massive investment in large scale industrial, commercial Ownership: 65% and residential projects Employees: 61 • Piling revenue growing very fast Products: Piling, Ground – 70% of 2007 total vs 40% in earlier years
Slide 7: Recent major projects - Saudi
Recent major projects - Saudi Saudi Kayan, Saudi Arabia (2007- 08) CIP Bored Piles – 7 new piling rigs • Progress to date: 15,000 piles, 278k linear m of ground improvement 6
Slide 8: Key characteristics - UAE
Key characteristics - UAE • Dubai was the first to announce ambitious development plans in 2002 Keller UAE – other Emirates have since followed Ownership: 100% • Man-made islands and other mega projects still Employees: 74 offer a huge volume of work Products: Ground • Keller is market leader in gro
Slide 9: Recent major projects - UAE
Recent major projects - UAE Palm Deira, Dubai, UAE (2007-2008) Vibro Compaction with S-700 vibrators Al Raha Beach, Abu Dhabi, UAE (2007-2008) Onshore Vibro Compaction & Offshore Vibro Replacement 8
Slide 10: Key characteristics - Bahrain
Key characteristics - Bahrain • Bahrain has ambitious development plans Keller Bahrain • Keller is a clear market leader, with large Ownership: 100% market share Employees: 56 – dominates ground improvement market – Keller and local player BFCC each have Products: Piling, Ground about 40% of piling
Slide 11: Recent major projects - Bahrain
Recent major projects - Bahrain Durrat Al Bahrain, Bahrain, (2006-07) CIP Bored Piles for 13 bridges Al-Salaam Resort, Bahrain (2007-08) Piling for beach resort and spa 10
Slide 12: Summary performance trend
Summary performance trend • 2008 budget revenue over 3x 2004 revenue – supported by capex Gulf Revenue • Piling increased from 25% of total in 2004 to 80 about 60% in 2008 60 – piling rigs in Gulf region increased from 5 to 18 €m 40 • Reduced dependency on hired equipment has 20 had a positive impac
Slide 13: Looking ahead
Looking ahead • Strong market growth across the Gulf – supported by numerous new mega projects, not just in Dubai • Keys to securing further growth in the Gulf are: – continue to upgrade and expand equipment fleet – obtaining sufficient suitably qualified additional people – continuing to set Keller
Slide 14: Market development – mega projects
Market development – mega projects Total project Expected Area Project Facility budget start date Port, Desalination, Saudi, Ras Az Zawr Ma'aden Development Petrochemical €4bn 2008 INEOS ENTERPRISE AND DELTA Saudi, Jubail OIL COMPANY Olefins Complex €20bn 2009 Saudi, Jubail SAUDI ARAMCO Export Refin
Slide 15: Investing for further growth in the Gulf
Investing for further growth in the Gulf Gulf Capex (€m) • Total capex of €25m planned over four years 8 • Expansion of piling fleet, especially in Saudi 6 and UAE 4 • Improve crawler crane fleet for both piling and 2 ground improvement 0 2006 2007 2008B 2009F 2010F – increase number of rigs – excha
Slide 16: Securing further growth elsewhere
Securing further growth elsewhere • Egypt - the region’s 4th principal market for Keller – scope to develop current limited product offering – requires investment in equipment and people, including management – target increased market share in bored piling, in which competition is limited • Move to
Slide 17: Summary
Summary • Middle Eastern construction boom set to continue • Keller well set to benefit – established, growing businesses in the Gulf area with strong margins – market leader in ground improvement – investing in piling capacity – medium term opportunities in neighbouring countries • Targeting sales