Manpower Supply (GSS) – Key Issues

Pre-Oracle Oracle
• Fringe multiplier at 30%.
• Historical Fringe trending at 16%.
• Overhead multiplier at 23%.
• Historical SG&A trending at 8%.
• EBIT erosion resulting from higher Oracle burdening
on tight margins.
• ITD margin on existing jobs largely being maintained
by higher weighting of historic (pre-Oracle) lower
burdening.
• Oracle multipliers present challenge for new MSS
jobs given tight margins.

MSS – FY15 Plan GM/EBIT Uplift based on lower Fringe Burden of 20%
All figs SAR Fringe @ 30% Fringe @ 20% Uplift • Fringe rate of 20% based on historical trend of 16% + 4%
2015 Plan 2015 Plan uplift for end-of-service costs.
• This would deliver incremental EBIT of SAR 4.7m in FY15
Gross Margin 6,075,043 10,787,191 4,712,148
based on plan numbers.
SG&A 5,386,638 5,386,638 - • Assumes SG&A remains at 8% as per historic trend.
EBIT 688,405 5,400,553 4,712,148 • Reduced MSS Fringe burden would result in recovery
shortfalls needing to be absorbed by other business lines.
GM to NSR 9% 16% 7% • Demonstrates 30% existing applied Fringe is depressing
EBIT to NSR 1% 8% 7% already tight MSS margins and limiting contribution to
SG&A to NSR 8% 8% 0% SG&A.
Fringe to DL 30% 20% -10%