FEASIBILITY STUDY

RAHATECH FACILITIES MANAGEMENT L.L.C. ABU DHABI, UAE

31.12.2011

Feasibility Study Rahatech Facilities Management LLC

TABLE OF CONTENTS
1. 2. 3. 4. 5. 6. 7. 8. 9. EXECUTIVE SUMMARY .......................................................................................................... 2 DESCRIPTION OF PRODUCTS AND SERVICES .......................................................................... 2 TECHNOLOGY CONSIDERATIONS ........................................................................................... 3 PRODUCT/SERVICE MARKETPLACE....................................................................................... 3 MARKETING STRATEGY ........................................................................................................ 4 ORGANIZATION AND STAFFING ............................................................................................. 4 SCHEDULE............................................................................................................................. 5 FINANCIAL PROJECTIONS ...................................................................................................... 5 FINDINGS AND RECOMMENDATIONS ..................................................................................... 6

Feasibility Study Rahatech Facilities Management LLC

1. EXECUTIVE SUMMARY
Rahatech Facilities Management LLC is one of the UAEs foremost facility maintenance organizations, providing and delivering an exceptional level of 24 hours service. We provide support to any property owner, developer or tenant, and take on both small and large tasks of general maintenance services in residential, educational, commercial and industrial premises. Our technical personnel are controlled by a professional management team, and work as integrated multi-disciplined units. A conscientious attitude and commitment to our services ensures the continuous growth and development of the company, with every new contract secured. Rahatech activities include Annual Maintenance Contracts for Multiple-usage High-rise Buildings, Villas, and Flats and covers Cleaning services, maintenance areas of A/C, Electrical, Plumbing, Cleaning, Carpentry works and Security services. We have a full fledged Service and Maintenance Department with competent technical staff, equipped with state of the art tools & equipments to meet any relevant jobs with high quality workmanship. Rahatech utilizes the latest smart-software technology the FM industry can offer, CWorks/FM, which provides the most proven, complete and integrated solution to support strategic decisionmaking and lower the total cost of operations.

2. DESCRIPTION OF PRODUCTS AND SERVICES

I-Cleaning Services External and facades cleaning Internal and chamber cleaning II-Technical Group of Preventive Maintenance & On-Demand Call-Out Services o Electrical Services o Air Conditioning Services o Carpentry & Aluminum Services o Plumbing & Light Masonry Services III-Security Services We also provide our customers with Additional Services as: Water Tank Cleaning Swimming Pools cleaning Pest Control Service Handyman Services Fixtures Services Assembly Services Painting Service Masonry Service Fire Fighting Extinguishers Service

Feasibility Study Rahatech Facilities Management LLC

3. TECHNOLOGY CONSIDERATIONS
If we are in a position to make decisions about real estate, facilities and their related infrastructure, or physical assets such as furniture and equipment, then we have the ability to profoundly improve our organization's bottom line. Facilities and infrastructure assets are a significant investment. On average, they comprise over 35% of an organization's total assets. There is a tremendous opportunity to reduce capital expenditures by reallocating assets and extending their useful lives. Not to underestimate the ongoing costs. Increasing our operational efficiency can significantly reduce the costs associated with maintaining our facilities and infrastructure. A survey of Chief Financial Officers (CFOs) reveals that many organizations are unsatisfied with their current physical asset management capabilities. The vast majority of these CFOs admit they could benefit from enhanced asset tracking and utilization, more accurate maintenance reports, and the ability to maximize the useful life of assets through redeployment. A comprehensive and integrated approach to facilities and infrastructure management can significantly improve physical asset utilization and operational efficiency, resulting in increased stakeholder value.

4. PRODUCT/SERVICE MARKETPLACE
Rahatech is the FM Service Gateway to the UAE is our mission, concentrating on the values of operation in accordance with the highest standards, innovation and diligence amongst staff. The strategies followed to implement that are strengthening and expanding R&D, marketing & sales teams and HR function internally, and locating new properties and developments, participating in trade shows and strengthening our web presence externally. We offer seven-star high quality Facilities Management, Preventive Maintenance; On-demand Callout and Emergency Service jobs packages, which cover a wide spectrum of the areas and properties categories of high-rise buildings, villas and flats. Our 24/7 service, quick response, one-time-service attendance and cost effective plans are our key features offered and promised to clients to ensure their satisfaction. An 8% growing value properties market worth AED 1256 billion, the projected size of our target market might worth about BAED 354 in 6 years. Our main competitors companies are Imdaad, Khidmah and Dussmann. Their reviews and SWOTs show the recent situation of the FM Services market in Abu Dhabi. Our clients high financial state and the wide market potential, makes the business likely to grow in a fast and steady manner.

Feasibility Study Rahatech Facilities Management LLC

5. MARKETING STRATEGY
Our proposed high-level marketing and sales strategies for the FM market entry will be as follows: Key FM markets to concentrate on for 2012-13 are the new built properties projects & communities in Abu Dhabi Reem Island, Yas Island, Saadiyat Island, and Corniche road. In the following year we plan to enter the FM market of Musaffah and Masdar City. Our primary products will start by Inside and Outside Cleaning services, MEP Preventive Maintenance services, Security services and FM Consulting Services. In our main sales methods, we will use a combination of sales representatives and on-line promotion.

The initial FM market entry tactic is to set FM agreements with key Properties Developers in Abu Dhabi, such as Sorouh Properties, RESCO Properties or Force10, which will provide us a trustable reference. The marketing procedures to be taken in action for our services can be either traditional or modern ways; following are some ways to market our services to customers: Advertisements in newspapers Fliers distributed on billboards Commercial announcement in local FM radio station Advertisements on the Internet in a UAE reputed and famous site Advertisements distributed electronically by bulk SMS Representative marketing representatives to accompany the FM teams, offering one-freeservice to the houses as a trial.

Marketing, Sales & Customer Care Depts. will ensure the presentation and support for our services trades through the surveys and follow-up.

6. ORGANIZATION AND STAFFING

The Rahatech FM sales activity is to follow and respect the organizational structure of the company. There are, however, several staffing required to successfully implementing the facilities management projects winning and operation. All of these positions will work within designated departments and report to department managers. Main Management Team (Founding Team): 1- General Manager (GM) 2- FM Projects Director (FMPD) 3- Human Resources Manager (HRM) 4- QA/QC & HSE Director (QSD) 5- Hard FM Services Director (HFMD) 6- Soft FM Services Director (SFMD) Other Staffing (Implementation Team): Key Account Managers, Project Managers, Engineers, Supervisors, Assistants, Administration Staff, Team Leaders, Technicians.

Feasibility Study Rahatech Facilities Management LLC

7. SCHEDULE
Rahatech FM is expected to take six months from founding approval to launch of the projects implementation. Many of the foundations for this process, such as potential projects and managing team members, are already available. The following is a high level schedule of some significant milestones for this initiative: 15th Jan, 2012: Initiate Company, Location and Legalization 15th February, 2012: Company kickoff meeting 15th March, 2012: Complete online site design and Staffing 15th April, 2012: Complete equipping staff with instruments and tools 15th May, 2012: Go live with Company launch Upon approval of this proposal a detailed schedule will be created by the assigned founding team to include all tasks and deliverables.

8. FINANCIAL PROJECTIONS
The financial projections for the activities of Rahatech FM LLC are highlighted in the table below. These figures account for projected total facilities management projects revenue, staffing requirements and training, materials and insurance costs, administration support and IT delivery with maintenance costs. The assumptions for these projections are as follows: Major facilities management projects of MAED 100 in total are targeted for the first year All milestones are performed in accordance with the schedule All transactions are at least of three years term Measure Total Revenue Staffing Costs: Salaries Training Bonus Projects Costs: Outsource Insurance Additional Costs CAFM Software Total Expenses Expected Profit Year 1 AED 19,904,400 Year 2 AED 40,163,340 Year 3 AED 63,064,800

AED 8,880,000

AED 14,856,000

AED 22,915,000

AED 8,175,000 AED 265,000 AED 140,000 AED 17,460,000 AED 2,444,400

AED 20,070,000 AED 290,000 AED. 15,000 AED 35,231,000 AED 4,932,340

AED 32,070,000 AED 320,000 AED 15,000 AED 55,320,000 AED 7,744,800

Feasibility Study Rahatech Facilities Management LLC

9. FINDINGS AND RECOMMENDATIONS

Based on the information presented in this feasibility study, it is recommended that Rahatech FM LLC to be initiated and launched. The findings of this feasibility study show that this initiative will be highly beneficial to the investor and has a high probability of success. Key findings are as follows: Technology: Will utilize most recent processes and technology which lowers projects risk Specialized infrastructure and activities will be contracted out to vendor which allows Rahatech to share risk Once in place this technology is simple to operate and maintain for a relatively low cost Marketing: This initiative will allow Rahatech to approach large number of target high-level mixed-use properties projects at a low cost Rahatech can expand clients base beyond Abu Dhabi geographic area where head office will be located The properties facilities management market is in a steady state of growth Rahatech is able to differentiate itself from its competitors and will utilize incentive approaches to target new clients Organizational: Gradual increases to staffing are required with no changes to organizational structure Capital investments are required, management team is available Financial: Break even point occurs early in the first year of operation Three year projections show net profits accounting for 14% of total revenue Rahatech will be in position to capture greater market share by maintaining both an in-house and outsourced projects jobs implementation