RAMBOLL’S STRATEGY TOWARDS INDIA

BERLINGSKE CONFERENCE OCTOBER 31, 2014

PRESENTATION BY SØREN HOLM JOHANSEN, EXECUTIVE DIRECTOR RAMBOLL

AGENDA

1. Ramboll – a brief introduction2. Ramboll in India since 19983. Our experience of joint ventures4. Our Strategy going forward5. Q&A

RAMBOLL IN BRIEF

• Independent engineering and design consultancy and provider of management consultancy

• Founded 1945 in Denmark• 11,000 experts worldwide• 200 offices in 21 countries• Significant presence in Northern

Europe, India and the Middle East• EUR 1 billion revenue• Owned by Ramboll Foundation

Services across the markets:

- Buildings- Transport- Environment- Energy- Oil & Gas- Management Consulting

RAMBOLL MARKETS

Buildings

Revenue (m€): 350,0FTEE (2013): 3,200

Transport

Revenue (m€): 260,0FTEE (2013): 2,400

Environment

Revenue (m€): 150,0FTEE (2013): 1,250

Energy

Revenue (m€): 100,0FTEE (2013): 750

Oil & Gas

Revenue (m€): 100,0FTEE (2013): 950

Management consulting

Revenue (m€): 65,0FTEE (2013): 550

INTERNATIONAL PRESENCE

Country head offices

BELGIUM, BrusselsCHINA, BeijingCYPRUS, EpiskopiDENMARK, CopenhagenESTONIA, TallinnFINLAND, HelsinkiGERMANY, HamburgGREENLAND, NuukINDIA, New DelhiKINGDOM OF SAUDIARABIA, RiyadhNORWAY, OsloPOLAND, WarsawQATAR, DohaROMANIA, BucharestRUSSIA, MoscowSINGAPORE, SingaporeSWEDEN, StockholmSWITZERLAND, ZurichUAE, DubaiUK, LondonUSA, Houston

FINANCIAL PERFORMANCE 2000-2013

171

194

201

355

425

471

530

636

757

740

810

925

1.014

1.0

45

0

2

4

6

8

10

0

200

400

600

800

1.000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EBITA %Revenue, m€

DKK/EUR exchange rate: 7.46 Revenue (left axis) EBITA margin (right axis)

From 2 to 11.000 in 70 years … of which +1.000 are Indian nationals

AGENDA ITEM 2 – RAMBOLL IN INDIA SINCE 1998

LARSEN & TOUBRO – OUR JV PARTNER FROM 1998-2014

• Founded in 1938 by Henning HolckLarsen and Søren Kristian Toubro

• Among India’s largest conglomerates

• Activities within Construction,Heavy equipment, Electrical equipmentPower, Shipbuilding, Financial services and IT.

• 13.6 billion USD revenue in 2013

• Ranked as 10th best Indian brand 2013

EMPLOYEE GROWTH IN INDIA 1998-2013

0200400600800

1.0001.2001.4001.6001.800

Employees

1998 20132011 201520082006

JV L&T, IFU RTI Imisoft Gifford (Expected)Ramboll-India

2007Whitby & Bird

Joint venture formed with L&T (L&T Ramboll Consulting Engineers Ltd -LTR)

Ramboll Tower India (RTI) founded in Delhi

Ramboll acquired Whitby Bird UK

Ramboll Telecom acquired IMIsoft in India (RTPE)

Ramboll Oil & Gas established global engineering operations in Chennai

Ramboll UK acquired Gifford UK – which had Indian subsidiary with offices in Delhi, Kolkata and Kerala

Ramboll integrated all its divisions (except LTR) to form Ramboll India

Global Engineering Centre

11 RAMBOLL OFFICES IN INDIA - 2014

Indian officesAHMEDABADBANGLAORECHENNAICOCHINHYDERABADJAIPURKOLKATALUCKNOWMUMBAINEW DELHI/GUARGONPUNE

TELECOM ENGINEERING AND TOWERS

• Cost effective and unique tower designs

• Reduced capital and operation costs

• More efficient due to lower steel weight

• Reduced number of components resulting in faster erection

• Factory supervision ensures production and quality standards

• Helping with Reliance 4G rollout – 7,000 towers

Ramboll in India is working with transport giant, Scania, to develop a state-of-the art 22,000m2 Product Centre in Bangalore to strengthen its global setup. Ramboll has provided all services, including architectural, civil, structural, mechanical, electrical and plumbing as well as project management. Phase 1 is operational since Oct 2014 and Phase 2 will be completed in early 2015.

SCANIA COMMERCIAL VEHICLES FACILITY

GANGA BRIDGE

Ramboll was appointed as Proof Checking consultant for Ganga Path (Ganga Drive way ) which is 21.5 km long having 7.6 Km of Elevated Structure with divided carriageway of 4 lane and allied facilities from Digha to Didarganj at Patna. The unique feature of the project is large diameter (1.9 m) deep pile foundation being constructed first time in Ganges.

HELSINKI LIBRARY – A PROJECT WON WITH GLOBAL ENGINEERING

NORDHAVNSVEJ, DENMARK

FORTH BRIDGE, QUEENSFERRY CROSSING (FORTH REPLACEMENT CROSSING), SCOTLAND

OUR INDIAN CUSTOMERS – 90 % private sector

RAMBOLL IN INDIA – STATUS 2014

• Leadership position in Telecom engineering and Towers.

• Good position in Transport and Building sectors but need to grow to offset sale of LT-Ramboll Consulting Engineers Ltd.

• Significant growth in Global engineering capability supporting Transport, Buildings and Oil/gas in Europe and Middle East.

• After 16 years co-branding with L&T we need to build the Ramboll brand as the independent consultant in India.

AGENDA ITEM 3 – OUR EXPERIENCE OF JOINT VENTURE

JOINT VENTURE HAS BEEN THE WAY TO BUILD OURPLATFORM IN INDIA

1998-2014 L&T-Ramboll Consulting Engineers Ltd.• Greenfield JV – L&T/Ramboll/IFU

• L&T (50%), Ramboll (26% in the first years; 50% from 2004), IFU (24% 1998-2004)• Ramboll divestment 2014 to L&T

2008-2011 Ramboll Imisoft• Acquisition (60/40)

• A.R. Vishwanath (22%): previous owner, minority shareholder (exited in 2011)• IFU (18%)

2012 - Ramboll India Ltd.• Equity partnership Ramboll/IFU (80/20)

IS A JOINT VENTURE THE WAY TO GROW?

• Strong model for getting a firm foothold

• Provides capital, market position, client base and brand

• Must have a clear strategic fit

• Can develop into a constraint on growth in the long term

• The answer is Yes as a way to get started and to learn how to act in the market

• The answer is Yes if you have the right partner

• The answer is No if you don’t have a clear exit plan

• And No if you plan to do a 50/50 split of ownership

AGENDA ITEM 4 – OUR STRATEGY GOING FORWARD

24

THE FIVE GLOBAL MEGATRENDS DRIVE THE INDIAN MARKET…

Demographic changes Urbanisation

Climate change & Environmental

problems

Natural resource shortages Globalisation

Overpopulation, state of

health, increasing education, growing middle classes

New infrastructure, urban population will increase with 70

m until 2020, increase in redevelopment

Degradation of ecosystem, periodic flooding, water

scarcity

Increasing demand, prices and technical

content

Societies, business and people become more global, Indian

businesses investing globally

“Incomes will quadruple in the coming decade”

“Doubling of investments in 5-

year plans”

“Investments in infrastructure to

manage urban solid waste”

“India cannot escape its dependence on

coal”

“Inward and outward investment, tourism,

migration”

MARKET

… AND INCREASED FOCUS ON INFRASTRUCTURE DRIVES DEMAND IN THE INDIAN MARKET

25

050

100150200250300350400

0

2

4

6

8

10

2016-17

268

9,0

2015-16

217

8,4

2014-15

179

8,0

2013-14

150

7,6

2012-13

127

7,4

%

% of GDP

Oil and gas pipelines and storage

Ports and airports

Irrigation & water supply

Railways

Telecom

Roads and bridges

Electricity and renewable energy

Investments in infrastructure, the 12th five year plan, USD bn.

MARKET

26

GROWTH IS FORECAST TO 10-11% P.A. AND TRANSPORT AND BUILDINGS CONSULTANCY MARKET IS ESTIMATED TO USD 1BN

CAGRs (INR based) 2006-13 2014F-23F15,4% 10,9%18,7% 10,7%26,2% 10,0%0,9% 9,9%4,9% 9,9%14,3% 10,7%

14,8% 10,8%

Construction industry value, USD bn.

0

100

200300

400

500

202220202018201620142012201020082006Energy and utilitiesPorts harbours waterwaysAirportsRailwaysRoads and bridgesBuildings

Source: Business Monitor International 2014. Note: Construction industry value: Output of the construction industry over the reported 12-month period in nominal values (i.e. domestic currency terms). As it is derived from GDP data, it is a measure of value added within the industry.

Employee numbers and bottom-up market size, USD bn.

# of employees,

100% of market

37.600

Revenue per employee, USD

25.000

Total market revenue, USD bn

1

AEC

OM

URS/

Sco

tt W

ilson

18.800

# of employees,

50% of market

1.200

STU

P

1.200

LASA

1.2001.200

Dev

. Con

s.Pv

t Lt

d

1.350

Mot

t M

acD

onal

d

1.500

Feed

back

1.500

ICT

1.800

RIT

ES

3.250

Jaco

bs

4.600

MARKET

IT ALL DEPENDS UPON…….

DEEPEN AND BROADEN TRANSPORT AND BUILDING OFFERING

• Enter metro rail, freight rail, and tunnel segments.

• Offering buildings services and structural design

• Focus on large projects, multidisciplinary and complex projects

FOCUS ON COMPETENCE AND DELIVERY, ie Quality

• Invest in processes; deploy the best tuned to India needs

• Leverage GEC and domestic staff expertise and synergies; improve productivity

OUR STRATEGY FOCUS ON INFRASTRUCTURE AND GLOBAL ENGINEERING

28

DEVELOP GLOBAL ENGINEERING AND SUPPORT TO SIGNIFICANT SIZE

• From 300 staff in 2014 to 700+ staff in 2016.

• Business support operation of 50 staff by 2016.

• Provide Local resources for Global projects.

STRATEGY

DEVELOP INTERNATIONAL MARKETS FOR TELECOM

• Target selective markets with unique tower royalty model

• Take lead for Myanmar and other neighbouring countries

GLOBAL EXPERTISE FOR HIGH-VALUE DOMESTIC PROJECTS

• Leverage international relationships (e.g. Scania)

• Leverage global expertise (e.g. AD)

… AND BY 2016 THE STRATEGY WILL

29

…increase our headcount to 1,400 …change our portfolio mix

600 475 525

225250

400325

450

100

2016

1.375

2015

1.050

2013

925

OthersTransportBuildings

10%

58%

16%

Oil&Gas

Environment

Transport

Telecom

Buildings2013

15%

1%

29%

22%

33%

2016

STRATEGY

Be well positioned for the future

• Amongst the top 3 infrastructure consultancy firms and by

• 2020 be regarded as the best in class in more than half the sectors we serve

IT ALL DEPENDS UPON……

THANK YOU

READ MORE ON OUR WEBSITE: WWW.RAMBOLL.COM