2nd NAMESA TECHNICAL

CONFERENCE 2008
5-6 MAY 2008
DUSIT LAGUNA, PHUKET

Maintenance and Recurring

 RECURRING REVENUE

REGION 10% 14 Pakistan 28%

1 UAE 6% 15 Malaysia 0%
2 Saudi Arabia 1% 16 Bahrain 4%
3 G4Kuwait 17 Lebanon 0%
4 India 13% 18 Al Mulla Kuwait
5 Oman 8% 19 Bangladesh 29%
6 Qatar 7% 20 Nepal 4%
7 Morocco 10% 21 Bhutan 11%
8 Philippines 17% 22 Mauritius
9 Thailand 22%
23 Cambodia
10 Jordan 12%
24 SriLanka
11 Singapore 14%
12 Egypt 23% 25 Mauritania
13 Yemen 22% 26 Syria
 CMS
NAMESA Region
31-Dec-06 Oct 07 Mar 08
Bahrain
Bangladesh 2 2
Bhutan
Egypt
India 621 506 476
Jordan
Kuwait G4 8 10 10
Kuwait Securicor 60 64 64
Lebanon
Mauritania
Mauritius
Morocco 500 566 640
Nepal 20 22 22
Oman n/a
Pakistan 65 1436 1496
Philippines 55 20
Qatar
Saudi Arabia
Singapore 250 267 267
Sri Lanka
Syria
Thailand 579 650 650
UAE 2 2
Yemen 40 40 40
Total 2143 3,620 3,689
Maintenance & Repair

A Post Installation
Business
 Maintenance & Repair-
What are they?
– Services are provided post system handover.
 Can be on a single contract but are separate,
distinct services
 Maintenance- preventative actions, training
etc.
 May also include small modifications and
additions.
 System Repair- correction of system faults.
 Provided free during any warranty period
 Maintenance & Repair-
Attractiveness
• Provides stable Recurring Revenue
• Not unduly price sensitive
 Typical GM 45% - 65%
• Provides a regular contribution to the
overhead cost base
• Ensures a regular contact with the
customer
• Provides opportunities for additional work
 Maintenance & Repair-
Service Combinations

 System Repair on an ad-hoc chargeable

basis
 System Repair with a service contract
charged per visit
 System Repair with a comprehensive
service contract, customer pays for
damage, operational errors etc.
 As 2 above but with maintenance
included
 As 3 above but with maintenance
 Maintenance & Repair
Point to note:-
• Very important to get a post installation
service contract signed at time of order or
system handover
 Not ideal to re-open negotiations once initial
order placed
 Provides terms and conditions to cover the
warranty period
 Good business practice
 Maintenance & Repair-
Growing the business
Steps:-
• Mandatory inclusion of a service contract
with every new quote
• Use a dedicated sales resource to sell
service to existing customers
• Use a dedicated sales resource to sell
service to non customers
 Typical M&R Marketing Strategy

Target:-
Existing customers with small installations for Preventive /
Comprehensive Maintenance sales
 Existing customers with large installations for Static Maintenance sales
 Third party installations with equivalent makes of products, replace with
G4S equipment when need arises
 Third party installations with other range of products,
equipment provided by the customer when replacement is needed.
 Include M & R charges and contracts in the proposals when
quoting for new projects
 Good Work Practices

– Standard Template for Agreement

– Separate team for Maintenance Technicians/Engineers
– Proper Hand over of the Job from Project Division
– Monitor MTBF & MTTR for better customer Satisfaction
– Planning and adherence for regular scheduled
Maintenance visits
– Availability of Fast moving spares
 Recurring
Apart from Maintenance other recurring revenue
streams:
• Adhoc Maintenance
• CMS and small alarms
• SecureTrak
 Recurring
First Aim : Recover all direct costs from Recurring

Then indirect too

All profit from installation will be net profit

 Challenge
• Do you have specialists sales for :
– Maintenance ?
– CMS ?
– SecureTrak ?
• Are you above the 10% recurring revenue threshold ?
• Are all new contracts inclusive of maintenance contract ?
• Is all recurring income being recorded as such ?
• Enhancing CMS and SecureTrak
Thank you