1 Malaysia Menjana Transformasi - PowerPoint by pmy18725

VIEWS: 126 PAGES: 15

1 Malaysia Menjana Transformasi document sample

More Info
									             5 DISEMBER 2009
MELAKA INTERNATIONAL TRADE CENTRE (MITC),
           AYER KEROH, MELAKA

         TUAN HJ AZAM BIN AZMAN
      CMS OPUS PRIVATE EQUITY SDN BHD
KONVENSYEN DUNIA MELAYU
   DUNIA ISLAM KE-10
TEMA : “TRANSFORMASI PENJANAAN KEKAYAAN
DMDI – PELAKSANAAN MODEL BARU”

PANEL PERBINCANGAN I :
CABARAN FIRMA EKUITI PERSENDIRIAN (PRIVATE EQUITY
FIRMS) DI DALAM MENJANA KEKAYAAN
Introduction
1)   Allah S.W.T says in the Quran (Surah Al-Baqarah, verse 275) :

     Those who devour usury will not stand except as stand one whom the Evil one by his touch Hath driven to
     madness. That is because they say: "Trade is like usury," but Allah hath permitted trade and forbidden
     usury. Those who after receiving direction from their Lord, desist, shall be pardoned for the past; their case
     is for Allah (to judge); but those who repeat (the offence) are companions of the Fire. They will abide
     therein (forever).


2)   'Abdullah ibn Amr (RA) reported that the Messenger of Allah (SAW) said:

     “The curse of Allah be upon the one who gives a bribe and the one who accepts it.”

     [Ibn Majah, hadith no. 2313]
Islamic Finance & Investment promotes…
Ethical activities. If something is immoral (e.g. alcohol, tobacco), one cannot profit from it.

In sharing reward, one must also share risk.

Clear distinction between Equity and Debt.

Islamic private equity investing actually seeks “Real Economy" impact, rather than merely a
“Financial re-Engineering” exercise.

Private equity model represents classic Mudarabah and/or Musyarakah with the GP / LP structure
being a strikingly pure example of what they are envisioned to be.

Since Islamic investment adheres to high ethical standards, it should be attracting a growing number of
non-Muslim investors, in addition to the 1.3 billion Muslims worldwide, thereby targeting a
substantially larger investor base than conventional private equity.
Islamic Private Equity fits for all…

Private equity and Islamic investment share a lot of common principles:
both of them are based on investment in the real economy, and on the
principle of sharing risks and rewards through partnership. Private equity
takes a relatively long-term view on investments and aligns the interests of
stakeholders, which are also among the key principles of Islamic investment.

Private Equity is a natural fit for Islamic investors since at the core of Shariah
principles money should be directed to the real economy through investing in
businesses that offer ethically acceptable products and services. This means
that returns should be earned through active involvement and participation
in the business risk in Shariah compliant investments.
Is private equity really a new asset class?
The expeditions of sea explorers across the globe to new worlds in search for new wealth, funded by rich
Rulers & land owners in deals that promised for profit sharing and reimbursement for all expenses – a
classic private equity case.




Columbus and Queen Isabella. Detail of the   One of Magellan's ships circumnavigated the globe, finishing 16 months after the explorer's death.
Columbus monument in Madrid (1885).




                                              One of the earlier flags of British East India Company
Is private equity really a new asset class?
Similarly, as a reflection of the historic role Arab, Chinese voyagers and traders have played in world civilization,
their voyages along the Silk Road and the Spice Sea Trade Route carrying out prosperous trade activities
between Asia and the Middle East continents, where no short of Funders interested to have a slice of the
profitable economic cake.

                                                                           The Silk Road & The Spice Trade Sea Route
Introduction – CMS OPUS PRIVATE EQUITY
   Registered with Malaysia’s Securities Commission as a Venture Capital Management Company (“VCMC”) in
    2005, COPE is a joint venture between Cahya Mata Sarawak Berhad (“CMS”) and Opus Capital Sdn Bhd
    (“OPUS”).

   CMS Opus Private Equity Sdn Bhd (“COPE”) is one of the few principal-run PE fund management companies
    in Malaysia and comprises of investment professionals of multi-disciplinary background with combined PE
    investment experience of over 30 years in Malaysia and Asean region.




Synergistic Affiliates
   Cahya Mata Sarawak Berhad (“CMSB”) – Unrivalled access into the Sarawak economy, providing important
    link for investment opportunities sourcing, as well as growth opportunities for its investee companies.

   Opus Capital Sdn Bhd (“Opus Capital”) – Specialized and dedicated to Private Equity.

   Opus Asset Management Sdn Bhd (“Opus AM”) – A dedicated and specialized fixed income investment
    house in Malaysia. Currently managing fixed income mandate in excess of RM1 billion.
Preferred Investment Sectors
Partner in emerging growth companies with focus on companies with
             high multiplier effect to domestic economy!




                 EDUCATION                AGRICULTURE
                     &                         &
                  TRAINING                   FOOD
                               STRONG
                             MANAGEMENT




                              OIL & GAS
                              SERVICES
Examples of Portfolio Companies:
                                                                                          Company A B
                                                                                               Company
                                          Company A                                        Integrated Oil &
                                                                                          Integrated Oil & Gas
                                           Shipping                                       Gas Service
                                                                                             Service Provider
                                                                                          Provider



 Investment Rationale                                    Investment Rationale
  Managed by a professional team of experienced          Experienced management team of MNC
    maritime personnel of MNC background.                   background
  Chemical tankers – niche and relatively stable         Fast growing company with high profitability
    market segment.
                                                          Unique being the only local companies with
  One of the few chemical tanker owner-operators in        principal activities comparable to Fugro and
    the country.                                            Schlumberger
  Reclassification of vegetable oils in International    Established and diversified customer base
    Bulk Chemical Code List from 1 January 2007.
                                                          Global operations
  International ratification of IMO Marpol Annex 2 –     Low entry valuation relative to oil & gas sector
    phasing out of single hull by 2015.
                                                            peers
                                                          High barriers of entry
Company C                            Segments of Business:
                                      Supply of niche chemicals
                                        (include catalysts, deodoriser,
                                        odoriser) to downstream
                                        petrochemical plants
Earnings Contributions
                                      Niche civil & engineering
                                        consultant for E&E and O&G
           9%            Advanced     Waste management/ recycling
  33%                    Polymer        services
                         Oil & Gas    Crane owning & operating
                                      Supply if chemicals to offshore
                                        (new business)
                         Services
                58%
                                      Advanced polymer
        CASE STUDY
        Investment in Company A
                      Projected Growth
                      300                                                                 30
                                    Revenue                                     24.5
                      250           (LHS)                                                 25                                       Investment Year: 2007
                                    PAT                                20.5
                      200           (RHS)                                                 20                                       Total Amount: RM25m
         RM million




                                                                                               RM million
                                                          13.8
                                                                                                                                   RCPS2: RM11m
                      150                                                                 15
                                                                                                                                   RM11m RCPS2 = 25% equity
                      100                         6.3                                     10
                                        5.4                                                                                        RCPS1: RM7m (IRR 8%)
                      50      1.4                                                         5
                                                                                                                                   RCPS1: RM7m (IRR 10%)
                       0                                                                  0
                             2006A 2007A 2008A 2009F                 2010F 2011F


              Growth in Offshore Support Vessel                                                                       Growth in Chemical Tanker
      50,000                                                                                                      120,000

      45,000
                                                                                                                  100,000
      40,000                                                                                                                                                                        89,200
      35,000                                32,000                               32,000                            80,000
      30,000                                                                                                DWT
BHP




      25,000                                                                                                       60,000                       54,200            54,200
                                                              20,000
      20,000                                                                                                                                                                          11
                                              8                                    8                               40,000
      15,000

      10,000                                                     5                                                 20,000                           6                6
                            4,000                                                                                              7,800
       5,000
                              1                                                                                                   1
              0                                                                                                        0
                       Pre-Investment   Operational Now   Initial Expansion      Current                                    Pre-Investment   Operational Now Initial Expansion      Current
                                                                  Plan        Expansion Plan                                                                         Plan        Expansion Plan
Multiplier Effect into the Real Economy, Exemplified
                                       Capital from i-PE Fund


                            Mariners                                                     Shipyards


                                               $$$
              Marine
              Engineering                      Owner/
                                              Shipping
                                              Company
                                              Operator

                                   Service
                                  Service                  Ship
                                                         Shipbuilders

                                  Providers
                                  Providers              builders
              Fabricators




              Material
              Suppliers



                      Port
                      Services

                                                                        Oil & Gas,
                                                                        Petrochemical Industries
Company A - Unrealized Value

                                                              Progress is in line and
                                                               timely for IPO
   PAT FY2007 = RM5.97m      PAT FY2009 = RM13.5m           Right timing to IPO is key
   Company Valuation at                                      PATs FY2011 – FY2012 for
                           
    Entry:   RM44m             Mark-to-Market Valuation:       IPO pricing reference
                               RM108m                         IPO Proceeds would further
                                                               provide catalyst for future
                              Equity Value worth 2.5X         growth
                               original investment
Conclusion




• Turning challenges into opportunity
• Islamic Finance is the key for the growth of Muslim economic
  activities
• Priority in doing business with the Muslim communities
                        Insya Allah

								
To top