Olp Modaraba · PSX:OLPM

Olp Modaraba — ORIX Modaraba — Investor Presentation (October 2019)

39 slides from Olp Modaraba's investor presentation, Oct 25, 2019

  1. Slide 1: Corporate Briefing

    ORIX Modaraba Islamic Answers, Custom Fit. Corporate Briefing Friday, October 25, 2019 ORIXM - Strictly Confidential - All Rights Reserved 1

  2. Slide 2: Corporate Briefing

    Corporate Briefing 1 Modaraba Profile 2 Governance 3 Modaraba Sector 4 Operations 5 Financial Performance 6 Future Prospects Friday, October 25, 2019 ORIXM - Strictly Confidential - All Rights Reserved 2

  3. Slide 3: Modaraba Profile

    Islamic Answers, Custom Fit. Modaraba Profile Friday, October 25, 2019 ORIXM - Strictly Confidential - All Rights Reserved 3

  4. Slide 4: Company Timeline

    Company Timeline Friday, October 25, 2019 ORIXM - Strictly Confidential - All Rights Reserved 4

  5. Slide 5: ORIX Modaraba

    ORIX Modaraba  ORIX Modaraba (ORIXM) was incorporated in May 1987 as First Grindlays Modaraba and started operation in August 1987.  In 2000, Standard Chartered Bank acquired the ANZ Grindlays so name of Modaraba was changed to Standard Chartered Modaraba (SCM).  In 2016, ORIX Leasing acquired SC

  6. Slide 6: ORIX Modaraba Shari'ah Advisor and Credit Rating

    ORIX Modaraba Management Company ORIX Services Pakistan (Private) Limited Shari’ah Advisor Mufti Faisal Ahmad Annual Shari’ah Audit Report is now part of Annual Accounts. CREDIT RATING Successfully maintained credit rating AA (Long Term) and A1+ (Short Term) assigned by Pakistan Credit Rating. AA A1

  7. Slide 7: Awards & Achievements - Management Association of Pakistan

    ORIX Modaraba Awards & Achievements. MANAGEMENT ASSOCIATION OF PAKISTAN. Friday, October 25, 2019 ORIXM - Strictly Confidential - All Rights Reserved 7

  8. Slide 8: Awards & Achievements - NBFI & Modaraba Association of Pakistan

    ORIX Modaraba Awards & Achievements. NBFI & Modaraba Association of Pakistan. Friday, October 25, 2019 ORIXM - Strictly Confidential - All Rights Reserved 8

  9. Slide 9: Human Resource Management

    ORIX Modaraba Human Resource Management  Total staff strength as at September 30, 2019 is 51 (Permanent – 39, Contractual Associates – Staff Strength 4, Contractual Runner, Driver etc – 8) Quality of  This provided an excellent training for senior staff who later were prominent in public and staff

  10. Slide 10: Organogram

    Organogram ORIX Modaraba Friday, October 25, 2019 ORIXM - Strictly Confidential - All Rights Reserved 10

  11. Slide 11: Islamic Answers, Custom Fit.

    Islamic Answers, Custom Fit. Friday, October 25, 2019 ORIXM - Strictly Confidential - All Rights Reserved 11

  12. Slide 12: Governance Structure

    Governance Structure BOD Board of Directors of Management Company Human Resource Mr. Shaheen Amin Chairman and Non executive Director Audit Committee and Remuneration Committee Mr. Raheel Qamar Ahmad Chief Executive Officer and Executive Director Chief Executive Mr. Nausherwan Adil Officer Independe

  13. Slide 13: Risk Management Model

    ORIX Modaraba Risk Management Model - Credit Policy development - Credit Procedures development - Collateral Management Credit Policy policy development - SAM policy development - Portfolio Shape Working Credit Credit - Risk Triggers Working - BCA Review - VAR Estimation (LGD/EL) Analytics Approvals

  14. Slide 14: Risk Management Parameters

    ORIX Modaraba Risk Management Parameters Friday, October 25, 2019 ORIXM - Strictly Confidential - All Rights Reserved 14

  15. Slide 15: Shari'ah Governance

    Islamic Answers, Custom Fit. Shari’ah Governance Friday, October 25, 2019 ORIXM - Strictly Confidential - All Rights Reserved 15

  16. Slide 16: Shari'ah Governance

    ORIX Modaraba Shari’ah Governance Shari’ah  Conduct Shari’ah review and report on yearly basis. Advisor  Advise on certain Shari’ah related matters on day to day basis. Shari’ah  Monitor transaction on the basis of Shari’ah Guidelines. Auditor  Report findings to Shari’ah Advisor and Board Audit

  17. Slide 17: Modaraba Sector

    Islamic Answers, Custom Fit. Modaraba Sector Friday, October 25, 2019 ORIXM - Strictly Confidential - All Rights Reserved 17

  18. Slide 18: Modarabas in Pakistan

    Modarabas in Pakistan  To promote Islamic financing in the country Modarabas as a corporate entities were floated and Modaraba Industry Statistics established in the decade of 1980. This was the first 60,000 PKR in Million Islamic financial model introduced globally. 52,670 50,000 44,016  Modaraba

  19. Slide 19: Return on Equity and Earning per Certificate

    Return on Equity (%) Earning per certificate (Rs.) 10% 1.5 2014 2014 4 17% 9% 1.34 2015 2015 17% 4.31 7% 0.98 2016 2016 15% 3.81 7% 1.31 2017 11% 2017 2.83 3% 0.59 2018 10% 2018 2.65 Industry ORIXM Industry ORIXM Friday, October 25, 2019 ORIXM - Strictly Confidential - All Rights Reserved 19

  20. Slide 20: Friday, October 25, 2019 ORIXM - Strictly Confidential - All Rights Reserved

    Friday, October 25, 2019 ORIXM - Strictly Confidential - All Rights Reserved 20

  21. Slide 21: Operations

    Islamic Answers, Custom Fit. Operations Friday, October 25, 2019 ORIXM - Strictly Confidential - All Rights Reserved 21

  22. Slide 22: Business Model

    ORIX Modaraba BUSINESS MODEL ORIX Modaraba is a perpetual Modaraba and is primarily engaged in providing Islamic finance facilities to Corporates, SMEs and individuals. Our philosophy is to build a strong, meaningful relationship with our partners. This means understanding their core needs and trans

  23. Slide 23: Products

    ORIX Modaraba Products Friday, October 25, 2019 ORIXM - Strictly Confidential - All Rights Reserved 23

  24. Slide 24: Sector Diversification

    Sector Diversification INDIVIDUALS INDIVIDUALS (ASSURANCE) (ASSURANCE) OTHERS SERVICES SERVICES 31.9% 9.6% PRINTING & PACKAGING TEXTILE OTHERS TRAVEL TRANSPORT, PRINTING & STORAGE & PACKAGING WAREHOUSING LOGISTICS PHARMACEUTIC AUTOMOBILE PARTS ALS & ACCESSORIES TEXTILE PHARMACEUTICALS OTHERS 8.3% AU

  25. Slide 25: Product Diversification

    Product Diversification Housing Finance Sukuks Others 1.0% 11.3% Motor Vehicles 0.5% Motor Vehicles 38.8% Computer Plant & Machinery Equipment 0.0% Computer Equipment Others Housing Finance Sukuks Plant & Machinery 48.3% Friday, October 25, 2019 ORIXM - Strictly Confidential - All Rights Reserved 25

  26. Slide 26: Financial Performance

    Islamic Answers, Custom Fit. Financial Performance Friday, October 25, 2019 ORIXM - Strictly Confidential - All Rights Reserved 26

  27. Slide 27: Financial Highlights June 30, 2019

    ORIX Modaraba Financial Highlights June 30, 2019 Friday, October 25, 2019 ORIXM - Strictly Confidential - All Rights Reserved 27

  28. Slide 28: Financial Highlights

    ORIX Modaraba Financial Highlights Assets  One of the largest Modaraba of the country.  ORIX Modaraba has the largest portfolio of Certificate of Musharika of PKR 2.9 billion in entire Deposits Modaraba Sector.  Record history of dividend pay out through out the period ranges from 16% to 40%. Ave

  29. Slide 29: ORIX Modaraba

    ORIX Modaraba 30.00 30.00 25.40 25.92 25.57 700 627 642 25.34 25.29 607 610 601 608 24.09 25.00 25.00 23.33 600 553 22.25 534 541 547 525 486 20.00 500 16.61 15.50 400 15.00 300 10.00 200 5.00 100 - - 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 2014 2015

  30. Slide 30: ORIX Modaraba

    ORIX Modaraba 195 182 7,000 6,248 200 6,123 173 180 5,515 6,000 5,351 150 154 160 4,671 4,789 136 128 126 5,000 140 123 120 113 113 3,742 120 4,000 3,305 100 2,682 3,000 2,412 80 2,176 1,893 60 2,000 40 1,000 20 - - 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018

  31. Slide 31: Profit or Loss

    ORIX Modaraba Profit or Loss 2019 2018 2017 2016 2015 2014 Amount in Rs. million Income from Ijarah financing 363 354 345 340 448 490 Income from Musharaka financing 340 134 98 166 149 169 Fee Income on financing facilities 23 22 14 5 5 6 Income from Bank deposits 20 13 13 17 32 19 Total Income from

  32. Slide 32: ROCE, ROE & Dividend Yield

    25% ORIX Modaraba ROCE, ROE & DIVIDEND YIELD 20% 17.40% 16% 14.87% 15% 15% 12% 14% 10.47% 10.92% 10% 11% 11.03% 4% 5% 2% 2% 4% 3% 0% 2015 2016 2017 2018 2019 ROCE Return on equity Dividend Yield Friday, October 25, 2019 ORIXM - Strictly Confidential - All Rights Reserved 32

  33. Slide 33: P/E & Dividend Payout

    ORIX Modaraba P/E & Dividend Payout 9.00 120% 8.00 96% 94% 89% 90% 100% 7.00 77% 6.00 80% 5.00 60% 4.00 8.26 6.97 6.27 3.00 5.80 5.58 40% 2.00 20% 1.00 0.00 0% 2015 2016 2017 2018 2019 P/E Multiple Dividend payout Friday, October 25, 2019 ORIXM - Strictly Confidential - All Rights Reserved 33

  34. Slide 34: Statement of Financial Position

    ORIX Modaraba Statement of Financial Position June June June June June June Amounts in Rs. million 2019 2018 2017 2016 2015 2014 Cash & Bank Balances 432 409 367 267 268 144 Ijarah Assets 3,140 3,833 4,451 3,638 3,539 4,195 DM Financings 3,085 2,494 998 1,199 1,167 1,353 Other Assets 309 217 146 173

  35. Slide 35: Balance Sheet Ratios

    ORIX Modaraba 1.62 Balance Sheet Ratios 1.78 1.49 2 1.63 1.28 2 1 1.42 1.72 1 1.3 1.47 1.24 0 0 2015 2016 2017 2018 2019 Debt to equity Finance Charges Cover Ratio ORIXM Certificate Value 25.41 25.92 25.34 25.29 25.57 30 20 27.29 28.25 10 24.88 20.43 16.22 0 2015 2016 2017 2018 2019 Breakup Value Pe

  36. Slide 36: ORIXM Funding Profile

    ORIX Modaraba 7000 ORIXM FUNDING PROFILE (Rs. in M) 6000 5000 2,786 3,127 4000 2,751 2,774 3000 2,794 2,684 2000 1,934 1,636 947 1,041 328 478 1000 1,160 1,148 1,150 1,176 1,153 1,094 0 2019 2018 2017 2016 2015 2014 June June June June June June (Rupees in Millions) Equity Bank Borrowings Certificat

  37. Slide 37: Future Outlook

    Islamic Answers, Custom Fit. Future Outlook Friday, October 25, 2019 ORIXM - Strictly Confidential - All Rights Reserved 37

  38. Slide 38: The way Forward

    The way Forward In the current We intend to diversify The thought leader economic clientele and product, status of ORIXM will environment, the use group intelligence be used to create Modaraba is treading and resources and differentiation in its carefully given the augment financing financial produc

  39. Slide 39: Friday, October 25, 2019 ORIXM - Strictly Confidential - All Rights Reserved

    Friday, October 25, 2019 ORIXM - Strictly Confidential - All Rights Reserved 39

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