NIG Prospectus - London Stock Exchange

Level: 8 – From: 8 – Thursday, August 9, 2007 – 2:19 pm – mac5 – 3776 Section 07 : 3776 Section 07STRATEGYStrategies for Core Operating BusinessIn 2006, NIG adopted a new seven year growth-oriented strategy focussed on the developmentof its six Core Operating Businesses through its subsidiary companies. This new strategy wasdeveloped following a strategic study undertaken by Booz Allen Hamilton, a leading internationalconsultancy services firm specifically for strategic consultancy, and aims to increase NIG’s shareof assets in its Core Operating Businesses from approximately 30 per cent. as at 31 December2006 to approximately 50 to 70 per cent. by 2013.To this end, NIG seeks to achieve the following strategic goals in each of the following CoreOperating Businesses:Building MaterialsNIG intends to grow its sales of building materials by continuing to develop a new range ofproducts to appeal to changing customer preferences, by acquiring other building materialcompanies with a complementary product range and by exporting its high value added productsto other GCC countries. In addition, NIG intends to increase production capacity in specific sectorsof its building materials division to meet increased demand for specific products.Specialist EngineeringDuring 2005, BI Group restructured its businesses to increase the profitability of its corebusinesses, which lead to the disposal of a certain non core business. BI Group is currentlyfocusing on its core businesses such as the engineering division, plastic division and metalsdivision.PetrochemicalsIkarus intends to pursue acquisitions, joint ventures and alliances in sectors which arecomplementary to its petrochemical operations.Financial ServicesNoor develops innovative strategies to ensure it offers its clients a wide range of financial services.Noor continuously monitors new technologies and markets to be integrated or developed inassociation with NIG’s subsidiaries and associate companies.UtilitiesCombined National Industries Company for Energy KSCC intends to focus on the utility industryin the GCC region, the wider Middle East and Asia in order to capitalise on investmentopportunities in the water and power generation sectors. Specifically, NIG expects the demand forelectricity to grow over the next ten years and accordingly expects governments to invest inincreasing their electricity generation capacity.Oil and Gas ServicesProclad’s strategy lies in providing cost effective and competitive services to the oil and gasindustry both locally and globally through its ten subsidiaries. NIG believes that Proclad’scompetitive advantage lies in the fact that it provides an integrated corrosion resistant solution, byoffering a supply of metal pipes and cladding as well as offering maintenance and refurbishingservices.67