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Outline

- 32 Years of History

- The Family Effect

- Technica Today

- Products of Technica

- Robotics Division

- Vision 2020

- Succession Planning

- Family Business in the Middle East

32 Years of historyFoundation

It all started with a dream

Technica was founded as a family business with a dream of manufacturing conveyors and automation equipment in Lebanon and selling to the world.

FounderTony HaddadBE Electrical engineer: 1975 AUB MBA: 1982 AUBGM of Technica International: 1982 till present

32 Years of historyGrowth of Technica

1982Foundation of Technica as a local family business

Workshop: 76m2

Staff: 4Market: Local

2014Technica has become a company with global reach

Factory Area: 6,500m2

Staff: 140Market: 31 CountriesBranches: 8

32 Years of historyGrowth KPI

Indicator 1982 2014Growth

Multiplier

Land area (m2) 3,700 13,500 3.64

Building area (m2) 76 6,500 85.52

Personnel 4 140 35

Turnover (USD) 12,500 13,400,000

1072

Capital (USD) 15,000 2,000,000 133.33

Countries 1 31 31

Customers 4 274 68.5

Year Environment Technica HistorySales

Turnover ($)

1982 Invasion of Lebanon by Israel Foundation (area 76m2) 12,500

1984 Syrian bombing of BeirutSales growth relying on local market

270,000

1987Syrian siege of Christian areas

Open Saudia office and launch of export market

950,000

1989War between Lebanese forces and army

Relocation of operation to Cyprus 1,200,000

1991Syrian occupation of all Lebanon

Start building new factory in Bickfaya

1,400,000

2006 July war of IsraelExpansion of building and open Africa market

6,700,000

2011 Start of war in SyriaStart of excavations to double the building area

9,500,000

2014 ISIS wars (Daesh)Completion of 2nd phase expansion total built area 6,500m2

14,500,000 up to October

32 Years of historyGrowth History

32 Years of historyCorporate identity

Year 2008:

Corporate identity was solidified over the years.

This was reflected also in the logo.

1982

1993

2008

The family effectCulture

Companies, same as families, need to have a soul and a culture to sustain growth.

We have created our own culture I TASSCCQE:-Innovation-Time Respect-Accountability-Servant Leadership-Safety Compliance-Customer Orientation-Cost Consciousness-Quality Drive-Environment Respect

The family effectValues

Values (RISER)

RecognitionWe strongly encourage and reward innovation, creativity and personal initiative. IntegrityWe build long term relations with our stakeholders, our team, our suppliers and our customers based on trust, loyalty, mutual support and open communication. Servant LeadershipWe are Servant Leaders: We cultivate rich relation with our team, based on mutual respect, and we develop their personal and professional skills. ExcellenceWe are committed to deliver quality and excellence in everything we do. Responsibility (social)We care for the welfare of our society and for the protection of our environment.

The family effectServant Leadership

Our managers are servants first, leaders second.

We have:-A Servant Heart: We have genuine love for others-A Servant Head: We set a clear vision-A Servant Hand: Our behavior is a role model

Our organization structure is the inverted pyramid(Ken Blanchard)

Managers are called to serve the front liners so that they can better serve the customers.

The family effectESP – Employee Satisfaction Program

- We view our employees as our larger family and we have developed for them a ESP “Employee Satisfaction Program”.

- Our employees are at the center of this program, and are involved and engaged.

The family effectTeam engagement

Organization capital survey - Our employees provide their input through:→ Focus Group discussions→ 360° feedback program→ ESQ (Employee Satisfaction Questionnaire)→ Organization Capital Surveys→ SER (Safety & Environment Improvement Request)→ OFI (Opportunity for Improvement)→ AWR (Award Request)

- The input is consolidated and analyzed

-Actions are decided and decisions are shared with the team

-An index (ESI) is created. It is a KPI in the HR process

The family effectBonding relation

2006 War

Overcoming the effects of war through strong family bond by staying together.

Team joining forces to deliver on time in July 2006 war.

The family effectGlobal Healthy Workplace Award

April 2013, Technica was recognized with the 1st runner up prize for the GHWP Award in London.We used this award as a platform to refine and improve our system, and to spread the concepts of the GHWP in our community

April 2014, Technica was recognized for the second time with the 1st runner up prize for the GHWP Award in Shanghai.

His excellency, the President of the republic of Lebanon, General Michel Sleiman, delivering the LEA award to Technica GM, Tony Haddad in 2010 & 2013.

This is administered by the European community to companies meeting European excellence standards.

The family effectLEA Award

Lea Award 2010 Lea Award 2013

The family effectArabia Fast Growth 500

In 2012, Technica was selected as one of the fastest growing companies in the Middle East.

Ranked 7th in Lebanon.

Technica todayCustomers of Technica

Customers Worldwide

G.C.C.: 142

Africa: 42

Levant: 66

Europe: 11

USA: 6

Asia: 7

Multinational Customers

Technica todayPartners of Technica

Technica todayBranches of Technica

Technica goes global.

BranchesBickfaya, Jeddah, Riyadh, Dubai, Cairo, Khartoum, Lagos, Accra.

After SalesLocal offices provide sales and after sales support for commissioning and trouble shooting.

Team40 engineers.30 administrative personnel.70 technicians.

In 2014, new building with 4 levels added to the existing one.

Level 1: Metal plate making factory.Level 2: Components manufacturing factor.Level 3: machines assembly.Level 4: Electrical and machines assembly. Offices of operations department.

Total built area added: 3680m2.

Technica todayFactory expansion

Products of TechnicaConveying

Technica creates automation solutions and manufactures conveyors for:

Products of TechnicaConveying for primary products

Arla Food - Riyadh

Accumulation table for 2 hours production.

40m L x 4m W.

Cooling of cheese by natural convection.

Products of TechnicaConveying for secondary products

P&G - Cairo

Low friction accumulation conveyors for cartons

Merging lines and segregation by camera or bar code

Products of TechnicaHigh speed packers

P&G - Mataro, Spain

High speed packer for plastic bags.

250 bags/min.

Products of TechnicaHigh speed lines

Pepsi Cola - Abha, KSA

Bottle conveyors and full line integration and control.

Line speed: 48,000 BPH.

Products of TechnicaHigh speed lines

Nova Water - Riyadh

-2 water lines integrated and installed72,000bph80,000bph

-Conveyors, dry end and full integration.

Robotics divisionPartnership with ABB

Technica signs a “Channel Partner Agreement” with ABB in 2011.(Channel Partner Agreement photo – left).

As partners, we benefit of their software support and service center.

Technica is the only partner in the Middle East and we can service all robots supplied by ABB on the market.

Robotics divisionFlex picker Delta robots

Al Shifa - Dammam

Delta robot (120 cycle/minute)

3 lines supplied to Al Shifa, Dammam

Packing of medical syringes in carton boxes at speed of 120 packs/minute

Robotics divisionPalletizers for packs

Arla Food - Riyadh

Robot palletizer for cartons and trays of cheese jars.

Speed: 20 cartons/min.

Fully automatic with stretch wrapper and pallet conveyors.

Robotics divisionMulti robots lines

Al Rabie - Riyadh

6 robots in line

Conveying and segregation of packs

Transfer cars for pallet movement

Vision 2020Statement of vision

Our Vision

By 2020 Technica will sustain its growth to double the company revenue & profit by supplying product automation and turnkey solutions in the Middle East, Africa, GCC and to multinationals account.

Vision 2020Strategy map

Transformation of Technica into a strategy focused organization (SFO).

Appointment of strategy management officer.

Vision and strategy map for 2020 is established.

A wealth of know how and knowledge to.We need to:- Share the knowledge- Save with quick access- Grow the wealth of knowledge

Develop highly skilled and competent technicians and engineers to follow the technological breakthrough

Need for career plan and development

Vision 2020Technica academy

Succession planning5 phases

Phase Definition Status Technica Years

Phase 1 LaunchThe business relies on the entrepreneur’s brilliance, charisma and energy

1982-2000

Phase 2 DemystificationStrategy and structure are developed and create a burst of feverish growth

2000-2009

Phase 3 PlateauOriginal, rigid strategy inhibit change and induces slow down

2009-2011

Phase 4 IntegrationEstablish and integrate the needs of next generation family members into the company

2011-2013

Phase 5 LiberationFamily owners and managers adopt a fluid process of strategic management (Balance Score Card)

2014 on

Succession planningPhase 5 liberation

After 32 years of achievements, the company and the founder are engaged in the process of the succession plan.

By 2017, on the 35th anniversary, Technica will be totally managed by the younger managers and the second generation.

Founder and children in photo.

Identify the leaders with vision

Analyze their strengths and weaknesses

Design a P.D.P to close the gaps

Coach and mentor and train

Step back and let go

Succession planningPrepare the new leaders

Family Business in the Middle EastGeopolitical climate

Military action

Tension

Quiet and stable

Family Business in the Middle EastInvestment & growth potential

Turbulent market no potential

Stable market, low potential

High growth potential

Family Business in the Middle EastFamily Business environment

- Family Business is the majority contributor to the economy and is the driver of growth

- Company names are associated to the family names

- Strong family ties

- Succession planning concept is not mature

- Big families with large number of siblings create conflicts between members

- Need for corporate governance is emerging

Family Business in the Middle EastOpportunities for investment

Contribution of Family Business in the Middle East-Wealth-Knowledge of market and culture-Networking and connections-Search for new investment opportunities

Contribution of Family Business in Europe-Experience and maturity-Knowhow-Willingness to invest in Middle East

Opportunities-Acquisitions in existing set ups-Joint ventures for new projects

Sectors-Construction-Industry-Technology transfer

Closing Word

Motto in use at Technica

The family that prays together, stays together.

Best wishes and God bless us all to achieve a better life:For ourselvesFor our familiesFor our companyFor our community& For our country

Thank you

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