1. Global Leadership through Diversification GIL Middle East 2009 October 7 th, 2009, Beach Rotana Hotel, Abu Dhabi, UAE

2. Why Diversification  Diversification involves the creation of a portfolio of businesses that derive themselves from a core, minimize cyclic risks and maximize returns to stakeholders  Business Diversification can be driven by multiple needs, the most common being to hedge the inherent risks that stem from single product companies.  It primarily derives from setting the long term growth context and designing an organization structure that will deliver the growth. Preparing the Organization Setting the Diversification Context

3. Revenue Mix Diversification Diversification can manifest itself in multiple ways Product Diversification Portfolio Diversification ProductServices Competence Diversification Hydrocarbon Non Hydrocarbon Geography Diversification OrganicIn Organic Company

4. Diversification and the impact on Corporate Profitability

5. Diversification from the Perspective of Middle East Non-oil vs. Oil GDP contribution (%) Bahrain UAE Qatar Iran Oman Saudi Arabia GCC Overall Oil Non- Oil Real GDP Growth, Oil-Exporting Countries (Annual percent change)

6. EXPLORING THE JOURNEY FROM VALUE CREATION TO VALUE CAPTURE case studies

7. Aerospace: Significant Opportunities Across the Value Chain Design & Engineering Services Components Assembly Leasing & Operations Infrastructure MRO /FBO Design, Modeling, Simulation, Crash Analysis, Validation & Testing of Various Aircraft Systems Mfg & Machining of Components, Sourcing & Distribution of Components, Repair of Systems & Components Assembly of Small Aircrafts, Helicopters; Components/ Systems / Avionics Assembly Aircraft Leasing, Air Cargo Operations, Ground Handling Operations, Airlines Operations, Fractional Ownership Development of Green & Brown Field Airports, Pilot Training Academies, Technician & MRO Engineers Training Facilities Airframe & Engine MRO, CRO, Aircraft Conversion &Repainting Facilities, Facilities Based Operator for Business Jets

8. Chlorine Tree: Opportunities in Chlorine Derivatives The figure below describes a range of value added products that belong to the “Chlorine Tree”. About 1/3 rd of finished products are chlorine-free, although made with the help of chlorine Legend End use Intermediates No Chlorine in product

9. Alumina (1400) Alumina (1400) Ingot (LME+50) Ingot (LME+50) Re. Al (80%LME) Re. Al (80%LME) Can (LME+1000) Can (LME+1000) Conductor (LME+450) Conductor (LME+450) Foil (LME+1150) Foil (LME+1150) LME cost of Al/Tonne is considered as USD 1900 Middle East is not converting its value creation from global scale in smelter capacity into value capture into the producer of value added down stream products Selling Price is Indicated inside the shapes Cost of Production is indicated in black in USD/Tonne Sheet Coil (LME+800) Sheet Coil (LME+800) Slab (LME+150) Slab (LME+150) Extrusion (LME+700) Extrusion (LME+700) Mapping the Value Chain for Down Stream Aluminium Billet (LME+150) Billet (LME+150) Rod (LME+225 Rod (LME+225 Pure Al (LME) Pure Al (LME)

10. MAPPING THE OPPORTUNITY TO DIVERSIFY evaluation tools

11. Market Perspective: Identify the Parameters and relative importance Competition Domestic Supply Base Global Supply Base Domestic Consumers Global Consumers Supply / Demand Threat of Backward Integration Threat of Forward Integration Competition from within GCC Domestic Supply Base Global Supply Base Domestic Consumers Global Consumers Supply / Demand Threat of Backward Integration Threat of Forward Integration Competition from within GCC Growth Potential Market Size Market Growth Rate Market Status Market Structure Degree of fragmentation Down Stream Potential Export Potential Threat of Replacement Likely returns Adjacency Potential Value Capture Market Size Market Growth Rate Market Status Market Structure Degree of fragmentation Down Stream Potential Export Potential Threat of Replacement Likely returns Adjacency Potential Value Capture Project Feasibility Access to Raw Material Access to Technology Access to Manpower Environmental Risks Non Market Risks Investment Levels Investment Horizon Cost of Capital Returns per $ Invested Downstream Investments Access to Raw Material Access to Technology Access to Manpower Environmental Risks Non Market Risks Investment Levels Investment Horizon Cost of Capital Returns per $ Invested Downstream Investments

12. Segment Attractiveness Vs Capability HighLow Segment Attractiveness Capability 12345678910 1 2 3 4 5 6 7 8 9 0 Low High Renewable Energy Industrial Products & Services Food & Beverage Financial Services Healthcare Equipment & Services Education Energy – Oil & Gas Automotive Metals & Minerals Aerospace & Defence KEY Long term Medium term Immediate potential Petrochemicals IT/Telecom services Media Transportation, Trade & Logistics Pharma, Biotech & Life sciences Tourism

13. Degree of Diversification: Adjacency & ROI Return on Investment LowHi Cost of CapitalPortfolio Returns Degree of Adjacency Hi

14. Decision to Diversify will therefore be influenced by the choices a company pursues to fulfill its long term growth objectives. Low High Degree of Attractiveness* Low High Alignment with Companies Long Term Objectives Medium Degree of Attractiveness is a function of multiple variables such as the size of market opportunity, Potential CAGR, Competitive levels, Investment Levels and likely ROI Likely choices for long term growth

15. Closing Remarks “Leadership is the art of accomplishing more than the science of management says is possible.” General Colin Powell ex Secretary of State, United States of America