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Nov 8, 2013 (3 years and 11 months ago)

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1

Oil & Gas Training


VSDG Orientation presentation

Introduction to
VSD | VSDG
and Opportunities from the

Gulf Co
-
operation Countries in the Middle East

Document Owner:
VSDG,
LLC

Original: Feb 17
th
, 2012

Current:
May 29
th
, 2012

2

Key Messages


VSD
| VSDG has
been working directly with customers who have purchased over $1 billion in
defense,
security and industrial oil & gas equipment
assets over the past 3 years


As a result of our international expansion efforts VSD
| VSDG has
received ~$525 million in defense,
security and capital asset leads/requests since January 1st, 2012


Request volume is expected to increase, as a result of our on
-
the
-
ground positioning, personal networks,
and our own service appeal


Equally critical, these customers are dissatisfied with the results of many of their current procurements
and are seeking alternatives


High project risk profiles and adversarial contracting methods resulting in poor contractor turnout


Slowness
of engagement, and substantial disconnects between what is needed and what is
offered


Too many niche providers, unwilling or unable to address the totality of what is needed


VSD is implementing
business agreements


of various types and scopes
-

to
address these issues and
to proactively
pursue total blended training and simulation solution contracts


Identification and vetting of companies that have the right mix of
capabilities, products, attitude and
commercial willingness to work with us in a win
-
win set
-
up


Avoiding the unattractive
one
-
time
-
only agent
relationships,
in favor of a
more permanent relationships like
teams, licenses, or partnerships
with an appropriate value for
each player
in each business opportunity


3

VSD…the group of companies


7 businesses (~$
20M
Rev)


Solutions delivered in 38+
countries


3
yrs

into a 7
yr

Middle
Eastern rollout

VSD Group of
Companies

VSD, LLC

(VA, USA)


Focus: Training and
Simulation (10 yrs record)


Defense, Security markets


Systems integration

VSD Global, Inc.

(
Saudi Arabia, UAE)


Focus: Solution sourcing &
Management


Partnering with local
powerhouses


Saudi & GCC local
company treatment

Satcom

(unincorporated)


Focus: Satellite
communications products


Monopoly supplier for the
TV
-
DTS program on 300
US Military Vessels


DTM, WLL

(UK)


Focus: Defense training
focus (28+ countries)


Modeling and simulation
capabilities


UK & European Export
licenses

Timeline:

2001:

Establishment with service model (CBT & ILT)

2006:

Sold majority stake to QED Systems

2007:

Acquired
Satcom

2008:

Contract for Integrated Simulator for Iraq



First
forays into Saudi Arabia

2010:

Contract for Second Integrated Simulator

2011:

Acquired DTM (training products)


Commenced Saudi / UAE operations

2012:

5x increase in solution sourcing requests (across the
Middle East, but also Africa and India)

4

VSD…What we do

Activity

%

Assets

Focus

Approach

Simulator
-
based
Training Products

65%


Significant US DoD track record


Significant FMS experience


Proprietary solutions sets


Versatile talent pool



Navy


Coastal Security


Special Air / Rotary
(2012)



Be better in 5 ways: (better
tailoring, delivery speed, better
cost, better integration, better
training emphasis)

Other Training
Products &
Services

20%


In
-
house guru
-
level insights


10 years of track
record


Proprietary
course
inventory


Team
-
produced courseware


Superior operator training capacity


Proprietary development tools



Maritime


Basic
Industries


Industrial
Trades


Oil & Gas (in 2012)


Implement what we recommend


Additional partnering with local
powerhouses


Acquiring, reselling, licensing,
teaming and partnering

Solution sourcing
& Management

15%


Trusted confidante to the local
powerhouses


Access to the right kinds of
American/European capabilities


GCC presence and local registration


Understanding of emerging market
procurement and operations


Capacity to help


All things Maritime


Middle East defense
and security


US Government
-
sponsored Foreign
Military Sales


Selective customers
introduced by partners


Maintain a high
-
value niche of
catering to client needs


Fast engagement; focus on
need


Only in partnership with solution
providers (not an agent)


Better team, fewer headaches at
the get
-
go

Satellite Comms.

5%


Sole supplier agreement


Logistics, Engineering, Training staff


US Gov. Vessels


Other maritime
applications


Established relations with
providers and equipment OEMs


High value niche

5

Sourcing opportunities since January 1
st
, 2012

Project`

General Scope

Who

VSD

s 牯汥

Naval Vessels and
Simulators


Simulator & training
systems; shipbuilders


UAE MoD


Direct through
VSDG

s


Source shipbuilders, build training
system, propose a combined solution

Naval Vessels and
Simulators


Source 9 support vessels,
with training


Saudi Corp


Direct through
local powerhouse



Source shipbuilders; build training
system, propose a combined solution

Security forces
Simulators


Build a simulator


Ministry of Defense


direct
through local powerhouse

Source the technology, build training
system

Offshore Drilling
Ops Training


Marine O&M training &
Oil & Gas training


Middle Eastern State
-
owned
Oil & Gas Co.


Source training and simulation,
translation, instruction, and support

Urban Security
Solution


Build a 20
sq

km urban
security system


Provincial Gov.
-

direct through
local powerhouse


Source the team, create a plan, propose
a combined solution

Naval Vessels and
Simulators



Source 3 vessels, with
training



Ministry
-

direct through local
powerhouse (West Africa)


Source shipbuilders, build training
systems, propose a combined solution


Oil & Gas
Infrastructure


Source new supply of
valves


Subsidiary of the largest oil
producer in the Middle East


Source valve manufacturer, organize

6

Where VSD is focused

Oil Prices

(Oil Income)

Private Wealth

Search for

Yield

Stock

market

Public Investment in

Gov. Administration

Legislative

Reform

Public Wealth

+

Population

Growth

Consumer

Preferences

Social & Economic

Changes

Public Investment in

Infrastructure

+

+

+

+

+

+

+

+

+

Demand for

Goods & Services

New

Real Estate

Consumer

Volume

New

Goods

New

Services

Security

of Collateral

Administrative

Reform

Municipal

Reform

Social

Infrastructure

Defense/Security

Infrastructure

Industrial

Infrastructure

+

+

New Venture

Creation

+

+

Business

Transformation

+

+

Affordability

+

+

+

+

+

Major

Upgrades

New
Forces

+

+

-

-

+

+

+

+

+

Prime Drivers

Market Consequence

2011 $77bbl
-

$102bbl

2012 $95bbl
-

$125bbl

Attractiveness to VSD

±

±

New

Capital Assets

Driver of the
current

Dutch


Disease

System Dynamic modeling of the Saudi & GCC Marketplaces

-

-

-

±

-

$180B

$400B

$40B

$350B

$20B

(+$1,000B)

(Est. Segment Market Value)

7

Licensing approach

What we have in mind:


Some type of teaming agreement to pursue non
-
conflicted opportunities in the Oil & Gas training space


Work on an initial deal by deal basis, building up to general marketing to our connections in Saudi Arabia, UAE,
Bahrain, Kuwait, Iraq, Egypt, Libya, Morocco, Oman, Qatar, Angola, and Nigeria (for starters)


We operate as a system integrator, over top all providers that lend a hand to tackle a large scope


We work with a
w
hite label version of your courseware, instructors, etc. so we come to the client with one face


All background IP remains yours, any investment we make in product or a system solution is ours


Work together on the marketing materials, with the idea to re
-
purpose existing marketing materials, etc.


Unambiguous rights to use


translate, re
-
purpose, etc.


as per a plan we inform you of in advance


Pricing and terms, including non
-
competes that allows us to operate on an even keel with you



Marketing
& Selling

Instruction & Support

Localization

Courseware
and LMS

Marketing Materials

& References

Track Record

PetroEd

Contributions

Our Contributions

License Agreement Attributes

+ Win
-
win mindset

Synergies +

8

What do we want from
our Oil & Gas
Training Partners?


Execute an
ND
A

to discuss current and evolving opportunities


A Non
-
disclosure
Agreement
acceptable to
all parties


Discussions to understand
one or more specific business opportunities


Exchanges of information to
understand
your courseware, SIM assets and capabilities, any LMS that exists,
your preferences, and our needs to pursuing this opportunity with you



Define how we intend to work together


Discussion options and look at the possible divisions
of
responsibilities


Clearly define the procedures for growing and managing our relationship for mutual benefit


Clearly define the process for market launch, to be both economical, speedy and protective of the assets


Clearly define pricing and terms so we both make money



When a specific opportunity arrives, execute the necessary Agreements


Quickly execute a teaming agreement so we can earnestly pursue


W
ork

open kimono


style with us
to build a pitch or proposal


Support the effort in a fashion commensurate with the scale, timing and value of the opportunity (but no wild
goose chases)