Page 1

02

Strategy


You know, I'm looking at all these sale performances, strategies. It seems to be inexplicit for everyone. Every of you are not even familiar to me and it's bad. It wasn’t so in earlier times, we’ve celebrated the first New Year in the rented office - it was an reconstructed apartment on the first floor. Even the entrance was from the communal hallway. And we were very close, without any formalities and distance. Well, the company was tiny itself. No one never could have imagined that we would reach such achievements. Few people trusted in us, but we did it. We are well-known and respected in Kazakhstan. We work with the largest business contributors in the country. Even the President saw us. Of course, there are many unsolved problems inside, but they all are because of company's dynamic growth. The most important thing is that we see and admit them. And we will start to solve them in 2018. But not about that. We’ve made a huge takeoff, together.

"TOGETHER" – it is not just a banal word, it is the aspiration and energy of all of us. This led us to present day. Just imagine – leaping from 30 million tenge to 3 billion tenge. Tell it to your friends - they will not believe it! Tell other people – they won’t believe. Even you don’t believe yourself. But this all was done by you, by your desire, your aspiration, your commitment and ambitiousness, faith in each other. It is so wonderful when you trust to a person, a colleague. It's cheerful. We have formed our Mission, again I repeat - WE. We’ve created all this together not physically, but through our moral worth, our upbringing, which voice the following: by investing in the company's human resources, we create high-quality services to prove to the world that the true value is a PERSON. Think about this words. Our strategy for next 6 years - to grow up to 10 times. Our whole plan depends on US, our desire and aspiration, our energy. You create history. I believe in you. So start to believe you too. We are young and full of energy. Everything is in our hands, and whoever says we will not succeed, it will only strengthen and harden us. Believe and aspire! And after 5-6 years we will be different. Any of our employees will be 10 times smarter, more professional than others. We become the first in Kazakhstan. We will come into top 10 companies of Russia and top 50 global companies. Then you will proudly state: "I’ve been there and I've done it with the help of self-confidence!"

QNP Corporate group co-founders Nurmagambetov Daulet and Upabekov Adil


PERSON

By investing in the company's human resources, we create high-quality services to prove to the world that the true value is a person.

STRATEGIC OBJECTIVES (inc. VAT), which provides (at the net profit level) profitability rate of 30% (subsequent to the results of 2023 year) by the year 2023.

IPO

by the year 2023

with revenue of 50 million US dollars

Access to

To become an international company

OUR VALUES Innovations

Human resources

VALUES OF QNP

Quality

Security Partners/clients

OUR VISION In 2023, the QNP Group unites leading companies in the field of HSEQ (Health, Safety, Environment, Quality) and, particularly, TIC (Testing, Inspection, Certification) companies of the Kazakhstan market, working at the same time on the international market. The Group is well-known and is a member of top 10 companies of CIS and top 50 global companies. Leading oil and gas companies are the key customers of the Group. The Group has accountable legal, financial and managerial structures with high efficiency of process control, people and financial management, etc. The companies of the Group are flexible, mobile, financially efficient and result-oriented.

Company mission · Strategic objectives · Our values · Our vision · Our competitive advantage · Our priorities · Our localization

COMPANY MISSION


Company mission · Strategic objectives · Our values · Our vision · Our competitive advantage · Our priorities · Our localization

OUR COMPETITIVE ADVANTAGE We work in a rapidly changing environment. In order to satisfy our customers' needs ad maximum, we are creating the structure which:

1 2 3

Promptly responds to

Constantly improves

Maintains the unique

any changes and

competences and

corporate culture

necessities

technologies

OUR PRIORITIES The main priority of the Group is the human resources growth, the unified employee value-system evolvement. The human sources growth is provided by investments in the competence evolvement, in the potential of the Group's employees and by the surgical head hunting from outside ambient.

The main areas of competence evolvement:

Administration Innovations and new technologies Sales The distribution of responsibility and authority levels, the provision of broader powers at the project management levels (project managers) are the key ways to increase the Group's mobility and flexibility. The basis for competitive advantage creation is composed of searching, analysis, selection and implementation of new technologies and innovations. The ability to cooperate with different people and organizations in conditions of information saturation and constantly changing conditions will allow to create long-term relations with the Partners and Contractors of the Group.

OUR LOCALIZATION We know that our origins are in Kazakhstan and we are proud of that. We know that our future is in the geographical expansion and presentation of our services on the world's largest markets. We are ready to show the world that Kazakhstan is a country with a huge potential, most significantly - human potential.


We understand that the current activities

As new areas of, we see the future in the

will be used as a basis for further

following new areas of activity:

development: Nondestructive testing (all key techniques on

Information technology services;

the market); Services based on statistical analysis; Expert appraisal of buildings and structures (including hydraulic structures);

Extensive reliance of innovative technologies and process automation;

Environmental monitoring (laboratory studies, project conception, etc.);

Additional services in the area of the Group's activities

Industrial safety courses (local and international standards);

We are constantly investigating, adapting, implementing and consuming international best practices.

OUR PARTNERS We perceive our Customers as partners, but not only as clients. We do not set a mission only to sell a service and earn money. We are interested in building long-term relationships, based on a keen perception of each other's needs, which will help to achieve maximal market leverages. We are aimed at providing high-qualified and high-priced services in Kazakhstani, Russian and international markets. Our target customers are companies aware of their needs in the field of industrial safety and of the service quality value, who realize that it is the guaranty of business and earnings stability.

Main customer requirements:

We have identified the following categories of our potential partners, based on requirements above:

Quality of performed work; Large international companies; High staff competence ; Major local companies and national holdings; Kaizen of processes from the Contractor; SMEs focused on international quality High level of communication with the Customer; Use of advanced world technologies.

standards

Business profile ¡ Our partners ¡ Legal structure ¡ Structure of project management

BUSINESS PROFILE


Business profile · Our partners · Legal structure · Structure of project management

LEGAL STRUCTURE Our vision of the target legal structure is determined by the company’s overarching aims. We see a transparent legal structure that allows us to clearly monitor the links between companies and which DOESN’T WORK through semi-legal, "shadow" schemes. An approximate legal structure is presented below.

Qazaq National Product

QNP Kazakhstan

QNP Russia

QNP International

QNP Inspection

QNP Ecology

QNP Engineering

QNP Education

SPO Defectoscopy

STRUCTURE OF PROJECT MANAGEMENT It is planned to create the following levels of

resources for the project implementation, is

management (on the increase of authority/

responsible for the effectiveness of commu-

responsibility) with the purpose of project

nications both inside and outside the project.

management organizing:

Also it is the controlling and coordinating body, which determines and develops the

1. The project manager is the responsible for

standards of project management processes

the successful project implementation spe-

in the organization.

cialist: within the time limit specified by the Customer, with the required quality, with a

3. Corporate governance (program / project

fixed budget, limited human resources and in

portfolio). Is outside the project team.

accordance with the requirements of the

Responsible for project initiation, determines

Customer.

levels of decision-making / responsibility for the project.

2. Project office. Responsible for the successful project implementation, allocates

In framework of 2018-2023 strategy implementation it is planned to enroot the methodology of project management, education, training and certification of 150 project managers in the Group. The implementation of project management will entail variations for creation of a maximum 5-stepped, minimum 3-stepped structure for mobile and effective decision-making.


2018

2019

Finances: 6,609 bln KZT (4,109 bln KZT) 24% of net profit

Finances: 7,185 bln KZT 25% of net profit

Activities: Proportion of project and operating activities - 20%/80% Annual audit of financial financial accountability Annual business valuation / analysis

Activities: Proportion of project and operating activities - 50/50% The company is certified according to the PM international standards The company is certified according to the ISO and QMS 9001 international standards Annual preparation of the Group's consolidated financial statements

Human resources: Not less than 24 million tenge of revenues for 1 person 45 people of the Group, certified PM (Prince II, PMI, IPMA)

Human resources: Not less than 24 million tenge of revenues for 1 person 90 people of the Group, certified PM (Prince II, PMI, IPMA). IPO: Legal union of groups

2020

2021

Finances: 8,5 bln KZT 26% of net profit Leverage 60%/40%

Finances: 11 bln KZT 27% of net profit Leverage 60%/40%

Activities: Proportion of project and operating activities - 60/40% Carrying out due-diligence procedures (finance, lawyers, technical, assessed taxation)

Activities: Proportion of project and operating activities - 70/30%

Human resources: Not less than 28 million tenge of revenues for 1 person 130 people of the Group, certified PM (Prince II, PMI, IPMA).

Human resources: Not less than 29 million tenge of revenues for 1 person 150 people of the Group, certified PM (Prince II, PMI, IPMA). IPO: Registration at the КАСЕ, IPO realization

IPO: Transformation to JSC, preparation for listing of corporate stocks

2022

2023

Finances: 15,4 bln KZT 28% of net profit Leverage 60%/40%

Finances: 25 bln KZT (~$ 50 million) 30 % of net profit Leverage 60%/40%

Activities: Proportion of project and operating activities - 80/20% International PM certification International QMS and ISO 9001 certification

Activities: The company is certified according to the PM international standards The company is certified according to the ISO international standards The company is certified according to the international standards, fully functional KPI system

Human resources: Not less than 30 million tenge of revenues for 1 person 150 people of the Group, certified PM (Prince II, PMI, IPMA). IPO: Preparation for registration at one of the international stock exchanges

Human resources: Not less than 30 million tenge of revenues for 1 person 150 people of the Group, certified PM (Prince II, PMI, IPMA). 90% of the company have a strong command of English IPO: Registration at one of the international stock exchanges

Strategic targets 2018-2023 performance · Strategic target list

STRATEGIC TARGETS 2018-2023 PERFORMANCE


Strategic targets 2018-2023 performance · Strategic target list

STRATEGIC TARGET LIST

Project title

Target

Beginning of the implementation, not later than

Creation and development of QNP

Approach a market of hydraulic

Engineering

structures inspection

Expansion of the QNP Ecology

Expansion of activities, entry to

laboratory

segments of the market A and B

Creation and development of QNP

Secure the contract with ТCO,

Inspection

NCOC, KPO

Rebranding

Unite companies under one

2018-2019

2018-2019

2018-2019

2018-2019

recognizable brand (4 companies)

Transition to project-oriented

Increased competitiveness

2018

Development and implementation

Increased competitiveness,

2018

of HR strategy

motivation

Development of informational and

Minimize the risks of informational

legal security

and legal security

NCOC project

Contracting with NCOC

2018-2019 гг.

KPO project

Contracting with KPO

2019-2020 гг.

management

2018


Objective:

To increase the revenue to $50 million with profitability rate of 30% in 2023.

TRATEG

Strategy chart


2017

2018

2019

2020

TCO 1,5 bln KZT + 1,5 bln KZT external collaboration, NCOC, KPO

NCOC 0,3 bln KZT KPO 0,3 bln KZT

QNP Inspection

QNP Russia

Transneft - 0,7 bln KZT, Other companies - 0,3 bln KZT

2 bln KZT

QNP Inspection

QNP Engineering

1 bln KZT (0,7 bln KZT, 0,3 bln KZT – weirs)

0,3 bln KZT

QNP Ecology

0,65 bln KZT

0,23 bln KZT

СПО

0,2 bln KZT Withdrawal from the group

QNP Education international certification

QNP Education

0,185 bln KZT

0,2 bln KZT

EXP

Withdrawal from the group of 10-20%

БЦ в г. Астана

Construction

SPO (autonomous company)

0,317 bln KZT

RSK

RSK

TCO 1,5 bln KZT

Reagent

Sale of Kazakhmys company for $ 3 million

Accreditation of Transneft, 0.742 bln KZT

RSK

Transneft - 0,5 bln KZT, Other companies - 0,25 bln KZT

SPO 1,5 bln KZT

QNP Inspection

Partnership with ROSEN, 1.6 bln KZT

QNP Inspection

GMP 0,6 bln KZT

QNP Engineering

0,72 bln KZT + QNP HYDRO

QNP Ecology

SPO

KIA 0,3 bln KZT

Main business lines

SPO 0,18 bln KZT

SPO

TCO 1,5 bln KZT

EXP

2023 НПО

TCO 1,5 bln KZT + 1,9 bln KZT external collaboration, NCOC, KPO

2,2 bln KZT

QNP Inspection

2,5 bln KZT

QNP Engineering

1,4 bln KZT (0,7 bln KZT 0,7 bln KZT – weirs)

QNP Engineering

1,4 bln KZT

2,2 bln KZT

QNP Ecology

1, 2 bln KZT

QNP Ecology

1,5 bln KZT

QNP Ecology RU 0,35 bln KZT

QNP Engineering

1,3 bln KZT (0,8 bln KZT + 0,5 bln KZT – weirs)

QNP Education

0,7 bln KZT

QNP Education

1 bln KZT

QNP Education RU 0,3 bln KZT

QNP Ecology

1 bln KZT

SPO

0,7 bln KZT TCO, KPO, NCOC external collaboration

QNP Education

QNP KZ

QNP Russia

0,5 bln KZT

Transneft 1 bln KZT

QNP KZ

QNP Russia

QNP International

QNP Inspection RU 3 bln KZT

QNP Russia

BC Office

BP

QNP Engineering RU 0,1 bln KZT

Еххоn

QNP Ing; Eco;Edu promotion

Еххоn

QNP Ecology RU 0,1 bln KZT

Total

1 bln KZT

Total

QNP Education RU 0,1 bln KZT

Chevron

3 bln KZT

Shell

Business center construction in Astana city

Business center in Astana city

Land redemption, project development

QNP International

Development

Chevron

Office in Astana

QNP International

Membership in ВР, EX XON, Total, Chevron, Shell companies

QNP International

4 bln KZT

Shell

QNP Engineering RU 0,35 bln KZT

BP

Еххоn

QNP International

BP

8 bln KZT

Total

Chevron

Opening BC Office

13 bln KZT Preserving positions on market

QNP KZ

2 bln KZT General partners

Other companies 0,5 bln KZT

0,2 bln KZT

ЕХР 0,15 bln KZT Non-core assets

TCO 1,5 bln KZT + 0,5 bln KZT external collaboration

2022 SPO

AB 0,15 bln KZT

Future projects

2021

Shell

Opening new dimensions

QNP Ecology QNP Education QNP Engineering

2,9 bln KZT

Average revenue per person

5.6 bln KZT + Reagent sales $ 3 million = 6, 609 bln KZT with 24% of net profit

7,185 bln KZT with 25% of net profit

8,7 bln KZT with 26% of net profit

11 bln KZT with 27% of net profit

15,1 bln KZT with 28% of net profit

25 bln KZT ($ 1= 500 KZT) TOTAL $50 mln with 30% of net profit

Since in 2017 the main sales indicator has increased to 3 bln KZT, it is necessary to save this indicator in the main lines and to adjust all internal processes. The main emphasis in 2018 should be on the Project management implementation, on the AB SPO project development and “Regent” project.

We push up our sales by almost 2 times in all directions with the help of prepared RM system and increase of sales team (scale ratio). The construction of the office begins in Astana. Creation of QNP International. We begin to study international markets.

Minute increase in main business lines. The main focus is on Russia and the AB SPO. Preparation of our additional services for RF market. Introduction with international BP, Exxon, Chevron, Shell, Total petroleum companies.

There is understanding of QNP Kazakhstan as a separate unit; QNP Russia; QNP International. Direct contracting with international BP, Exxon, Chevron, Shell, Total petroleum companies. Promotion of our additional services in Russia: Engineering, Ecology, Education.

Sales improvement at a new level. International marketing, sales. Establishment of an office outside the CIS. The main focus is on international contracts.

Complete raise to the international level and IPO membership

24 mln KZT

25 mln KZT

28 mln KZT

29 mln KZT

30 mln KZT

30 mln KZT

60%/40%

60%/40%

60%/40%

60%/40%

70%/30%

80%/20%

80%/20%

1. International PM certification 2. International ISO 9001 certification

The company is certified according to the PM and ISO international standards

Leverage Processes

1. Annual audit 2.Annual evaluation / business value analysis

1. Annual arrangement of the Group's consolidated financial statements

1. Carrying out due-diligence procedures (finance, lawyers, technical, assessed taxation)

Project and operative business ratio

20%/80%

50%/50%

60%/40%

Certification

1. International PM certification 2. International ISO 9001 certification

Legal structure and IPO

Legal group unification

Creation of JSC, preparation for listing of corporate stocks

Registration on KASE, IPO holding

Preparation for registration at the international stock exchanges

Creation of JSC, preparation for listing of corporate stocks

90 PM

130 PM

150 PM

150 PM

150 people of the Group are certified project managers

Project managers

45 PM


Eng  
Eng  
Advertisement