Jeddah HR Forum November 2012 Jeddah, KSA

Schindler Saudi Arabia Saudi Program & Retention Plan Human Resource

About Schindler © Schindler Founded in 1874, the Schindler Group is a leading global provider of elevators, elevators and related services. In 2011, the Schindler Group generated sales of more that CHF 7.8bn (SAR 31bn). Schindler’s mobility solutions move more than one billion every day people all over the world. Behind the company’s success are 44,000 employees in over 100 countries. Schindler is in Saudi Arabia since 1956 first with a distributor and since 2011 as Schindler Olayan Elevator Co. Ltd. Main businesses are the supply of new elevators and escalators (NI) and the servicing of existing equipment (EI). 3

Introduction Schindler’s Corporate Goals and Objectives include: Being the preferred employer in the industry Having employee motivation that is higher than the national norm in each country Schindler Olayan in Saudi Arabia commits to localization due to the following principles: To decrease the over-reliance on expats; to help constrain related demographic, economic, and government security challenges To support Kingdom Saudization strategies. Social responsibility To create a strong local team that will lead Schindler in Saudi Arabia in future 4 © Schindler

Saudization It is one of Schindler’s goals and targets to develop HR Strategies designed to attract, employ, develop, and retain qualified Saudi employees. Schindler Saudi Arabia defines Saudization as placing skilled, qualified Saudis in career fields to create economic growth for the Kingdom of Saudi Arabia. 5 © Schindler

Basic Training TESTTEST Field Experience Installation Training TESTTEST Field Experience 1234 Further Training (based on Gaps) 1 week12 weeks4 weeks12 weeks 1 weeks Certification TESTTEST Assessment Qualification Hiring & Training of Young Saudi Graduates NI 6 © Schindler Hiring from Universities and/or Technical Colleges Integration in regular workforce

Hiring & Training of Young Saudi Graduates EI Basic Training TESTTEST Field Experience EI Fundamental Training + Prod. Specific TESTTEST Field Experience 1234 Assessment (Demonstration) Further Training (based on Gaps) 1 week8 weeksUp to 3 weeks12 weeks max 3 days Certification TESTTEST 2nd half 2012 Field Experience 6 months Qualification 7 © Schindler Hiring from Universities and/or Technical Colleges Integration in regular workforce

Incentive Plan Technician ( Colleague ) Trainee Retention RateIncentive Amount 100% Retention each yearOne Basic Salary <100% because of scholarship and other obligatory factors Decision of management team 8 Incentive plan Supervisor PhasePercentage of Retained TechniciansIncentive Amount First year Greater than 80% retention rate for the first year One Basic Salary Second yearGreater than 70% for the second yearTwo Basic Salary Retention Period Amount Complete 1 YearTwo month Basic Complete 2 YearsThree Months Basic Incentive plan Saudi (Trainee) © Schindler

Certification Program The Certification program is applicable for all Schindler Field staff (locals and expats) The Certification criteria are defined by the Schindler Group and the process includes technical as well as soft skill aspects Targets numbers for certifications will be identified at the beginning of each year following the need of the business Young Saudi trainees will only be certified after the successful completion of their technical Training program. 9 © Schindler

Helper Trainee SV 5400 FE 5400 SV 3300 FE 3300 PL 3300 Fitter NI Career Path for Fitters Certifed Helper Certif. FE PL In Future Training For Fitters and Engineers (New Installation ) High Low PL 5400 Fitter Certif. 2 Fitter PL BY SAIS Certif. 2 SV PL In Future FE field Engineer SV supervisor PL Product Line SV 7000 FE 7000 PL 7000 Fitter © Schindler Time years Career Path 10

Level 1 SAIS Inspector PL FE for PL 3300 PL SV. Career Path For Engineers (New Installation ) High Low PL 5400 SV FE field Engineer SV supervisor PL Product Line SV 7000 FE 7000 Project Manager Trainer for PL Master Trainer SAIS Inspector for 7000 Application Engineering & Drafting Sales & Estimators Career Path Time years NI Career Path for Engineers 11 © Schindler

Trainee MFE Senior Master trainer MFE Junior FE Senior FE Junior Technician Senior Technician Junior EI Career Path For EI FE High Low Technician Senior Technician Junior Career Path For Engineers (Existing Installation ) Time years Career Path 12 © Schindler Different Skill Levels

Incentive Plan for Certification Program NI Certification Program Certification will be on product line not progression Incentives will be for the successful completion of certification of such product The proposed amount will be fixed amount of SR Additional incentive will be paid for fitters who completed 25 units ( amount of SR. 3000) EI Certification Program Certification will be on progression ( moving from one level to the next) Incentives will be for the successful completion of certification of each level The proposed amount will be fixed amount of SR © Schindler

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