Project - TAXI, Qatar

1.0 Project overview

1.1 Name PROJECT “ TAXI QATAR “1.2 Document Date December 20141.3 Stakeholders (Principal)1.4 Project Managers Dean Roberts Singapore1.5 PM Email Address and Principal Website

Dean.r@one-asia.biz

1.6 Goal Statement To develop and expand Public TAXI and Bus service in Qatar with high quality service and advanced technology to manage car dispatch and customer communication.

1.7 Project Description and Product identification

Client is a diversified industrial company, headquartered in Qatar with operations in both India and Singapore. The Group most recently tendered and won the first private TAXI CAB license within Qatar. The license to operate is “unlimited” with respect to fleet size and duration of license. The group commenced operations under license in June 2012 and have already broken even against the initial set up costs (650 taxi cars, drivers, licenses and accommodation) and are now positively contributing to overall Group revenues by providing first class service to the growing population of the Country this success has led to consumer demands to roll out more Taxi service in the State and also further invitations to participate in further State managed transportation tenders. Drivers of growth in the sector:

1) The growth of public transport is an initiative of Government as costs of purchase and insurance and road tax has become prohibitively expensive for the general population (much of whom are migrant workers)

2) To better manage road traffic

3) Cater for the growing tourism sector and the World cup in 2022

4) With respect to comparables, Qatar is benchmarked against Dubai where there are 20,000 taxis against the 3,000 currently in Qatar

5) The growth factor is exponential and accelerating it is expected to continue all the way through to 2030 which is a Government target to be an advanced society capable of sustaining its development and providing a high standard of living for all of its people. Qatar’s National Vision defines the long-term outcomes for the country and provides a framework within which national strategies and implementation plans can be developed. Project Growth:Phase 1 – To acquire 350 more taxis with drivers acquired from Philippines and or Indonesia.

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Phase 2 – To prepare for drivers arrival through development of workers accommodation and booking of license / driving testsPhase 3 – The drivers are then placed on the road for a 3-month salaried period and thereafter are on a commission basis with the option to either share shift on the car ( 12 hour / 12 hour ) or to maintain the vehicle full time.

1.8 Project Parameters

Phase 1 – Taxis. Costs – 350 @ $14.7million which will drive the fleet size to 1,000 Fuel / maintenance costs QR 275 per month (US$ 75) Once on Road, each car is expected to earn between QR 9360 to QR 14,400

per month (US$ 2,570 - 3,956)Phase 2 – Drivers arrival / accommodation (running costs) To construct accommodation to house new drivers (allocated land to be

owned by the Group) Conversion of licenses

Phase 3 – Salaried period Driver Costs ( 3 months @ US$ 250 * 350 )

1.9 Differentiated branding

Technology within the call centre and mobile apps for call outs Vehicles are uniform Toyota brand making maintenance more cost effective Driver training to understand the roads and geography of the state All drivers are uniformed Metered taxis of which are all state approved The SPV will be jointly owned and will hold appropriate insurance to mitigate

risks and arising investment risks. The funder will be included as beneficiary The project has committed secondary funder(s) that will place further funds

into the project

1.10 Scope The scope of business is to expand the current Taxi and Bus fleet. Hiring new workers and paying off existing debt. The process will be managed by an oversight committee and funded out of Singapore.

1.11 Schedule First quarter of 2015 to confirm new vehicles and new drivers to arrive no later than June 2015 and on the road (earning revenue) by August 2015

1.12 Oversight and/or Reviews Planned

The steering committee shall have overall project management responsibility and shall report back to the funding providers once per month with fully itemized expenditures incurred.

2.0 Financials2.1 Capital Expenditure

The business seeks to raise US$32 million for the expansion of its fleet size from the current 650 vehicles to 1000 vehicles. This investment will help secure 350 new vehicles; offset the current liabilities with the bank and the subsequent development of land being allocated to the group for infrastructure and accommodation facilities.

2.2 Breakdown of Operating Expenditure

i. Fund requirement for purchase of 150 vehicles - $6.3m

ii. Fund required for purchase of 200 vehicles - $8.4m

iii. Offset bank liabilities of the existing business and assets - $26.7m*A full financial model is available on request

2.3 Returns /Assumptions

Revenue

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a. Business with a 650 fleet size has generated $25m is rental business until Oct 2014 (since June 2012)

b. Business with a 650 fleet size is forecast to generate $132m over the next 4 years

c. With an increase in fleet size to 1000, business to generate $200m over the same period (4 years)

Profitability

a. Current fleet size to generate a profit of $36m over the next 4 years ( US$9M per annum)

b. Increase in fleet size to 1000 to generate additional profit of $20.8 over the same period to the cumulative profit of $57m (including 350 new vehicles ( US$13.6M per annum)

c. Offset of liabilities of $26.7m from this investment will release $43.6m (P + I), which is the total of what is owed to QIIB over the next four years. This will take the cumulative profits to $98.6m ( US$24.65M per annum)

In summary, with an investment of $42m into the business will develop revenue and profitability to a projected profitability of $83.7 (a+b+c) ( US$20.85M per annum)

*A full financial model is available on request

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3.0 Constraints, Dependencies, Impacts and Risks

3.1 Constraints On going supply of labour 3.2 Dependencies The project is dependent on continued growth and stability in the region, please

refer to Dubai’s success story as a guideline 3.3 Impacts Infrastructure is generally good and is accessible year round, human capital is

sourced from Indonesia and the Philippines3.4 Risks Traditional commercial operating risks exist. Politically the State is stable however

changes in operating Government MIGHT prove risky through possible frustration of licenses held. This is however manageable through utilization of political risk policies

4.0 Deliverables, Expected Outcomes

4.1 Key Deliverables Project finance must be arranged to permit below deliverables to be accomplished. The project has already started, is cash flow positive and as such offers great advantage and mitigates a number of key risks.

4.2 Project Communication Plan

Monthly reporting on status / expenses. Delivered verbally and by email and recorded.

5.0 Investor Returns / repayments

5.0 Investor Returns Amount: USD 32 million

Tenor: [48]months

Security: With funds received, automatic transfer will occur to the “funder” of the expanded taxi fleet, which will then be free and clear of claim. In addition a clean sweep of monthly revenues will be agreed with an agreed allocation to the funder. Revenues will be secured within an SPV that can source project insurance to secure source and amount of revenue flow and pay off to funder. Further security can be added in the form of a 4 star Hotel fixed asset and or receipts from guests

Repayment: within [48] months, based on forecast cashflows.

Returns: 15% p.a. coupon payable after [12] months.

Free Carry: a profit share amount will be paid to the investor within 24 months [Cash or equity]

Repayment: Via an SPV, which will be jointly owned and will hold appropriate insurance to mitigate risks and arising investment risks. The funder will be beneficiary to coverage

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