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GROUP CHAIRMAN ANNOUNCES FUTURE STRATEGY: a New Group Structure Announced

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GROUP CHAIRMAN ANNOUNCES FUTURE STRATEGY: a New Group Structure Announced YBA KANOO NEWSLETTER 2019 | ISSUE NO. 17 GROUP CHAIRMAN ANNOUNCES FUTURE STRATEGY: A new group structure announced VIVA provides Cyber Security BICS Town Hall with Shipping wins Management Services Group CEO Excellence Award 06 20 24 www.kanoo.com TABLE OF SHIPPING 24 Kanoo Shipping wins Dubai Trade's 11th CONTENTS E-Services Excellence Award ITQAN NEWS 2019 | ISSUE NO. 17 INDUSTRIAL & ENERGY 25 Kanoo Industrial & Energy Awarded Best Distributor by Olympus 01 Group Chairman Message 25 Technical Meeting on Metal Alkyls by Principal 02 Announce New Group CEO Gulbrandsenn 03 Group CFO Announcement 26 GASCO Chemical Contract Win 03 Kanoo Industrial & Energy Acting CEO Announcement 26 Valve Workshop for Saudi Aramco 04 Company Restructure 26 Supply of N Flow Systems to Saudi Aramco 05 Events 27 TLV Award for Oil & Gas Employee 05 High-level Meeting with ASRY 27 Majority Business Share for Antiscalant in 05 YBA Kanoo-Perkins Customer Day Held Bahrain 06 VIVA Bahrain provides YBA Kanoo with Cyber Security 27 Contract Win with Bahrain Petroleum Company Management Services 27 Contract for Fugitive Emission Monitoring 07 Abdul Latif Jameel OEMD certified Systems with ADNOC 07 Kanoo Machinery Hold Cummins Powertrain Course 28 New Contract Win with SABIC Petrokemya 07 AXA & My Clinic Medical Center Health Day 28 YBA Kanoo Group Participates in Petrorabigh’s 09 Bravery & Fire Safety Training Demonstrated in Supply Chain Excellence Forum Extinguishing Fire 28 Hitachi Wheel Loader Sales Deal 09 American Express Offer for YBA Kanoo Employees 29 Pilot Project for Fire-Resistant Transformer Oil 09 YBA Kanoo Participates in Bahrain Sports Day 29 Kanoo P&IP Wins Capital Assets Preservation 11 YBA Kanoo Regional Offices Go Dark for Earth Hour Contract 12 Australian Diplomat visits Jeddah Office 30 Launching of Filters Experts as Kanoo Machinery parts dealer in Madinah 12 British Consular Visits Jeddah Office 30 Kanoo P&IP Named Contractor of the Month at 12 Japanese Consulate General in Jeddah hosts Ahmed SASREF Fawzi Kanoo 30 Bobcat Presence at Planting Week in Yas Island 13 Kanoo Foundation Visit Beit Al Khair Association 31 Technical Seminar Held by Kanoo P&IP and 13 Kanoo Foundation Visits Juma Al Majid Centre Ljungstrom Arvos 14 Khalid Kanoo Patronises Art Exhibition KANOO TRAVEL 15 Historic YBA Kanoo Offices Part of Culture Festival 31 Strategy Session Held by Kanoo Travel 18 Features 32 Kanoo Travel Conducts KSA Roadshow 18 Guiding Principles of Good Governance 33 Etihad Airways Corporate Event 19 'Becoming' a Global Indirect Tax Leader 33 Air France KLM Corporate Events 20 Group News 34 Raffle Bonanza at Flavors Festival in KAUST LOGISTICS KANOO REAL ESTATE 20 BICS Town Hall with Group CEO 34 Fire Safety Training Courses Conducted 20 Kanoo Logistics Door-to-Door Service for Bapco 36 Team Kanoo 21 Kanoo Logistics Contract Win with GPIC 36 Employees Honoured for Long and Dedicated 21 Contract Win with Gulf Packaging System Service 21 Service Agreement Signed with Saudi Cement Company 36 Kanoo Logistics Awards Employee of the Month 22 Kanoo Logistics Female Employees Visit Port 37 Employees of the Month 22 Kanoo Logistics Participates in 11th WCA Worldwide 37 Kanoo Travel – Western Province Top Conference Performers Awarded 23 MoU Signed Between Kanoo Logistics & Dragon City 38 Kanoo Logistics Employee Talented Artist 23 Fire Safety and First Aid Training Held by Kanoo 38 Blood Donation Camp Organised Logistics 39 Welcome on Board accept my outline proposals for a new structure that included Family members in the business. I worked with Deputy Chairman Fawzi Ahmed Kanoo and a select team over the course of 3 and a half months to design the details of the new structure and wrote new operating procedures, this included a new delegation of authority matrix. In the new structure the Board has appointed Executive Committees to oversee each of the Business Divisions. The Presidents and Vice Presidents of these committees are Family Members, while the rest come from the Senior Group Management with a Divisional CEO to run each of the operations. We also set out a longer- term goal, to become “IPO ready” and transition to an investment-based company rather than a direct operator. CHAIRMAN'S MESSAGE: The Board also appointed a new Group CEO A YEAR OF CHANGE to oversee the Group portfolio of companies and build a bridge between the Family and the Management. I do not like putting all the control Over a year into being Group Chairman of Yusuf the hands of one person, I need to have checks bin Ahmed Kanoo Group, I am often asked and balances. Therefore, the Group CFO and about the new direction the group is taking the Group General Counsel report to the Board and its strategy from members of the media although they still work closely with the Group and the business community. I wanted to take CEO. The Head of Audit reports to the Board via this opportunity to inform you about the new the Audit Committee, which is headed by a non- structure that we have created and how it is Family member. benefiting our business. After a final draft of the structure was made, it Over the last four years, we had appointed a was handed over to a specialist family business non-Family Group CEO to manage the various consultant for their observations and comments. operations of the gr oup. He had implemented We incorporated many of their comments a centralised ‘head-office’ structure without any and this helped us to make the needed family members in the business operations. improvements. Over the next three months, nine Family members were only involved on the months, and 12 months, we will continue to re- Board level. However, under this structure the evaluate and look closely at how efficiently our Company did not perform as planned. As a business is operating. I want to see if we have board we were particularly concerned with the missed anything out or if there is something we shifting economic tides in the region specially could do better. I will combine my observations with oil prices at the time and we were increasing with the comments from everyone working in our overhead costs. the business and if required, I will make changes to the structure and the operating procedures After much deliberation and consultation with to improve the way we work. This includes members of the family, two special board looking at the performance of individual Family meetings were held, and the board agreed to Members in the positions to which we have appointed them. I may need to make changes CONTACT DETAILS YUSUF BIN AHMED KANOO W.L.L Kanoo Tower Phone: +973 1722 0220 P.O Box: 45, Manama Rd 1703, Blk 317, Diplomatic Area Fax: +973 1722 9122 Kingdom of Bahrain Kingdom of Bahrain Web: www.kanoo.com 02 YBA KANOO NEWS 2019| ANNOUNCEMENTS and if necessary, redirect them to other positions where they are able to be more productive and work better. I am now happy to see, that in 130 years of the group’s history, we are witnessing the most collaborative effort where everyone in the company is working together co-operatively as one unit. For such a large family-owned organisation with seven operating divisions in more than five countries it is not usual to see work flowing in this way. I am not aware of any others who have structured themselves and have achieved the results that we are seeing in our organisation. After so many years and many family generations I’m very pleased to see that all our family members are engaged positively in the business and happy. This is the new recipe for our success over the coming years and I hope future results will position us as a role model and a good case study for future development in family businesses. Khalid Mohamed Kanoo Group Chairman – Yusuf bin Ahmed Kanoo Group NEW GROUP CEO ANNOUNCEMENT New Group CEO Jeffrey Singer joined YBA Kanoo Group on February 17, 2019. Mr Singer is a well-established leader with a strong capital markets, business-development, and regulatory background, as well as deep expertise with technology and financial services. He is a Harvard Business School graduate and has held positions as CEO of Dubai International Financial Centre (DIFC) as well as CEO of NASDAQ Dubai. Prior to moving to the region in 2009, he was Senior Vice President at NASDAQ OMX in New York. Mr Singer will be reporting to the Group Holding Board and the Shared Services ExCom. Reporting directly to him will be Group IT, Group Human Resources, Corporate Communication and a dotted line from our Business Groups. As Group CEO, Mr Singer will have overall He sits on multiple boards across a variety of responsibility for the leadership of the company industries, including academic, financial, and and performance of the overall business, with a investment, and has held both academic and strong focus at the Group portfolio level. He will leadership roles over the course of his 28-year also develop plans for the new direction of the career, as well as technology industry experience Group to reflect changes in external or internal for over 10 years. factors and develop a successful succession plan for key positions in consultation with Group The YBA Kanoo Group will continue to have Human Resources. a strong emphasis on compliance, with Mr Singer ensuring compliance with statutory and Mr Singer has extensive experience in the organisation policies including quality, safety, regulatory field in both the US and Gulf capital health, ethics and audit in all organisational markets, as well as corporate governance. units.
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