Date(s) - 22/04/2019 - 23/04/2019
9:00 am - 5:00 pm
Pan Pacific Singapore
About the Course
Intense, participative learning about all aspects of Ports related corporate finance in five modules with defined learning objectives, subject content, simulation among participants and deliverables by participants over a 2 day period.
The end of the course each participant will go away with a clear view how each component of Ports Corporate Finance works and how it links with every other part of the business.
- Module One – Financial Analysis – using PSA/ APM Terminals/ DP World As Case Studies
- Module Two – Port Concessions – using a live bid document
- Module Three – Debt Financing in Ports – Business Analysis, Project Financing, Re financing, Case Study – APM Terminals,.
- Module Four – Preparing an Equity Investment Case, ending with a simulation exercise on preparing for PSA’s IPO.
- Module Five – Port M&A, ending with a preparation of a M&A pitch and an acquisition approval presentation to a Board of Directors
Pre Course Reading Materials
- Select Ports’ business – last annual report, investor presentation & call transcript; every participant will be sent a reading pack to be read.
During the course
- Overview of corporate finance concepts linked to ports Corporate Finance extensive use of tools.
- While this is not a modelling course, we will use excel to the extent possible, participants with limited exposure to excel will be helped by the trainer during the course.
- Trainer available for follow up emails, questions on phone.
- Distribution of discussion materials.
- Form a participant only online group.
- Video recording / transcript distribution?
Endorsement for the executive workshop from past participants:
“Excellent workshop. Course director is very knowledgeable and the discussions provided good interactions. Like the exercises in P&L, Finance spreadsheets and Due Diligence.”
Capt. Samuel Arava, CEO, ABIJAM Global Enterprises LTD, Jamaica
“A lot of case studies being used which helped us the participants to understand the financing processes better.”
Jonathan Chia, Manager, Portek International Pte Ltd, Singapore
Who Should Attend?
- Non corporate finance professionals from Ports businesses – technical, business development, operations, legal, controllers to get a deeper understanding of the corporate finance function and how their day jobs are linked to the corporate finance function.
- Fresher’s who are joining corporate finance, business development, M&A divisions of Port businesses; equity research analysts, Investment Banking professionals beginning to cover or in the early stages of covering Port Businesses
- Corporate finance or non-corporate finance professionals who interface with Ports as a customer – Heavy Industries (Dry Bulk), Oil & Gas, Freight Forwarders, Shipping Lines, land logistics asset owners or service providers
About the Course Director/s (subject to final confirmation, either one of the below trainers.)
Thomas Ng has over 23 years of consulting experience in the ports and shipping industry. Thomas is known for developing innovative solutions for players within the ports & shipping industry, — in areas of investments advisory, port strategy, development, marketing, planning & redesign, customer services and port operations; and delivering superior results.
He is the Executive Chairman of The Global Ports Forum (GPF) since 2008. The Global Ports Forum is a platform where all ports stakeholders in the ecosystem- port customers, port authorities, port operators, port people, port suppliers & service providers are gathered together to discuss about issues furthering the interests of ports globally.
Thomas is well-respected in the ports & shipping circles — recognized for his in-depth industry knowledge and far-reaching personal industry network and linkages. Some of his recent port investments advisory work include ports in the Middle East, Africa, Southern Europe, South East Asia, Latin America, etc.
Given Thomas’ far-reaching personal port industry network and linkages, Thomas is often seek out by port investors and port privatisation candidates all over the world for collaborative partnership.
Thomas is invited regularly as speaker & facilitator for Ports conferences, roundtable and executive programs and workshops.
He is the senior port & terminal training expert for the Singapore Ministry of Foreign Affairs (MFA) Singapore Cooperation Programme (SCP) for foreign ports officials for over 10 years. Recent programmes conducted by Thomas include the 5 days executive program in “Port Development and Competitiveness”, Singapore on 12-16 Dec 2016 where Thomas was the key trainer for over 60% of the whole executive program. Some other early SCP programmes that Thomas taught over 20 senior foreign government transport officials included the 2 weeks Singapore MFA Executive Programme in Logistics & Distribution Management on 28 Aug – 10 Sep 2007 & again on 6 Oct – 17 Oct 2008.
Thomas spoke recently at the Transport Intelligence Singapore 2013 Infrastructure panel, together with senior executives from the World Bank & UPS, the Container Depot Association Singapore Conference 2014 on ports and infrastructure, Tank Storage Asia Conference in 2015 and an exclusive Roundtable on Smart ports & ships and Internet of Things in Jun 2016.
On a professional level, Thomas is a veteran Chartered member of the Royal Chartered Institute of Logistics & Transport UK since 2001. He is also a Board Member and Treasurer of the Singapore Branch of Chartered Institute of Logistics & Transport for over 12 years.
Mr. Mukesh Parikh who is associated with Global Maritime Industry for over 35 years. Mr. Mukesh Parikh has a distinction ofhaving hands on Maritime Industry experience with continuous involvement in Training and Development throughout his distinguished career. Mr. Mukesh Parikh has a post graduate degree in Management with specialization in Marketing and Finance. He attended one year training program Professional Shipping at Norwegian Shipping Academy, Oslo.
During his career of 18 years in the Commercial Shipping, he was associated with UNCTAD/UNDP as a Trainer and Course developer. He attended two weeks instructors Workshop (Training for Trainers) organized by UNCTAD / UNDP in collaboration with The Ministry of Transport and Ports in Malaysia at Penang Port Commission. He conducted a number of training Programs in the Middle East, South East Asia and Indian subcontinent including developing a training program on General Shipping Management for Arab Maritime Transport Academy, Sharjah, UAE; covering shipping subjects.
A sound foundation of Shipping Industry and clear understanding of market and customer requirement and expectations from service providers enabled Mr. Mukesh Parikh to build the next phase of his career in Ports and Terminal Industry. He joined The Adani Group in Senior Management position at the inception stage of Mundra Port in India and made a major contribution to set up Business Development and Marketing Team as well as Establish Standard Operating Procedures for the entire spectrum of Operations in the Port. He successfully built marketing and operations teams and trained them. His next role was Chief Operating Officer of Sterling Port for setting up integrated Port Facilities at Dahej Port. All stages of Green Field Port development were covered – From site selection to Feasibility, Environment Impact Assessment and Environment clearance for the project, Detailed Project Report, Concession Agreement with Authorities for development of Port infrastructure and facilities on Build, Own, Operate and Transfer model.
Since July 2014, Mr. Mukesh Parikh has taken up advisory and consultancy role for The Maritime Industry. His assignments for Ports and Terminals cover Business volume estimation and hinterland mapping with competition analysis, Revenue forecasts for the life of the project and financial modelling, investment optimization in line with market potential; Commercial and legal aspects of logistics, cargo handling, warehousing contracts; business excellence and standardization of operating procedures; Organization development, structuring and Manpower planning and training.
- Introduction to financial statements, financial analysis, corporate finance and how the 3 link up.
- Introduction to the port business – economic rationale, technical, market, operations – Participants to participate with elaboration of their roles
- Port Business Corporate Finance
- Overview of recent Ports transaction global activity
- participants to participate with comments on the assets they are familiar with
Module one – Financial Analysis – using PSA/ APM Terminals/ DP World As Case Studies
- The Three Core Financial Statements and what they tell you – Income Statement, Balance Sheet, and Cash Flow Statements.
- Financial statement integration
- Core accounting principles
- Ratios for financial analysis and performance measurement
Cash Flow Statement Overview
- Analysing a cash flow statement
- Working capital management
- Cash conversion
- Cash based interest coverage
- Capex expansion – maintenance vs. investment capex
- Free cash flows and net financing requirements
- Leverage multiples
M&A Accounting Overview – Merger – Acquisition accounting overview
Module Two – Port Concessions
- Port – the land lord & its Customers
- Port master planning – overview
- Inventory of a port
- What do customers/ sub concessioners expect from the Port Authority
- CONCESSIONS: Models & Players
- The different Port Models
- Port privatization issues methods and constraints
- Criteria of a port Authority to award a concession to a terminal operator
- Views towards future expansion
- Financial results
- Existing clients/potential clients
- Employment in the past and the future
- Business plan
- The needs of the port customers
- The cost of a port
- Impact of a chosen concession system for all players concerned”
- General conditions for concessions
- Governance of the concession policy
- Public –private partnership
- The dual character of a concession
- Tariff policy of a port
- Choosing a Port Over Another – Terminal Operator View
- Granting concession in a port(case study)
- Competition and collaboration between ports
- Rules and regulations for a fair competition between public and private terminal operators:
- Why facilities public and private.
- Reasons to choose a port over another
- Forces stimulating port reform
- Case Study
- Analysis of a live concession bid document
- Simulation – Participants divided into port land lords, competing terminal operators across cargo types – dry bulk, container. liquid
Module Three – Debt Financing in Ports Businesses – Business Analysis, Project Financing, Re financing, Case Study – APM Terminals
- Purpose: quantification of borrowing amount by a Port Business and use of funds
- Payback: link credit assessment to primary and secondary sources of repayment
- Risks to repayment: the need for Port as a sector and Port company analysis to evaluate debt servicing ability
- Structure: assess the ability of the debt to meet the commercial needs of the identified Ports business while protecting lenders’ interest
Market Indicators of Credit Risk
- Credit ratings – Review, analysis of at least five Port business ratings reports
- Debt market indicators: bond spreads vs. rating curves and CDS pricing
- Equity signals: share price movements and key multiples – linked to Equity modules
- Risks to Repayment
- Operating environment
- Influence of social issues
- Government intervention and regulation
- Political and sovereign risk.
Port Sector Analysis
- Sales growth, operating profit margin and working capital requirements
- Capital expenditure and asset requirements
- Competitive forces and critical success factors to sustain a competitive advantage
- Tools to analyze Comparative advantage vis a vis competing ports in the vicinity
Management and Shareholders
- Review the strengths and weaknesses of management and the influence of company ownership:
- Management performance
- Corporate aims and goals and their effect on the company’s future
- Shareholder structure, support and influence.
- A company’s markets, products, services and competitive position
- Corporate actions underpinning its growth strategy.
- Quality and stability of revenue and cash flow from core operations
- Cost base analysis, profitability and cash flow measures
- Peer and ratio analysis to evaluate performance
- Different accounting conventions and misleading accounting practices
- Asset conversion cycle, asset efficiency and investment needs
- General and industry specific ratio and cash flow tools to analyse and compare asset efficiency
Cash flow drivers
- Forecast operating performance and asset investment requirements.
- Financial Risk
- Evaluate the appropriateness of a company’s funding structure given all factors identified
- Corporate treasury objectives:
- Risk appetite of capital providers
- External rating maintenance
- Tenor matching, funding and liquidity and refinancing needs
- Alternative sources of funding: trade, bank debt, capital markets, structured finance, equity etc.
- Financial flexibility: measuring liquidity or payment readiness
- Funding instruments used by companies that can increase the refinancing risk and overall financial risk
- Funding structure including off balance sheet obligations
- Debt servicing ability using cash flow analysis
- Rating medians to evaluate a company’s financial standing
- Future cash available for debt service using a simple debt capacity cash-flow model
- Refinancing risk: debt capacity vs. borrowing capacity
- Review the appropriateness of existing or new debt instruments
- Debt profiles in view of repayment sources
- Ranking: different ways to achieve seniority or pari passu ranking vs. other capital providers
- Safeguards: the use of financial and non-financial covenants to mitigate risk
- Pricing fundamentals: bond prices, swaps and CDS.
Deliverable – Credit note on a financing, refinancing proposal by APM Terminals
Module Four – Preparing an Equity Investment Case
- Land lord & Terminal Operator
- Analysis of one PE and one IPO concluded transaction
- Preparing the investment case
- Preparing transaction documents – IPO, Private Equity
- Following a listed company – Earnings call, analyst notes for building investment cases, generating transaction ideas
Simulation – PSA IPO
Participants to be divided into Groups – PSA offeror, Investor Groups, Bankers, Lawyers
- Preparing for PSA’s IPO
- Investment case
- Investor targeting
Module Five – Port M&A
- Overview of M&A activity in Ports
- Trends in Landlord Ports, Terminal Operators
- Building a case for M&A
- M&A & Strategy Linkages
- Originating M&Q transaction
- Financial Analysis, Valuation & M&A Pricing
- M&A Due Diligence
- M&A Stricture & Documentation
- M&A Integration
Simulation & Deliverables
- Pitching for a M&A mandate
- Making an acquisition note for Board Approval
On or Before 22 Mar 2019: The ‘Early Bird’ Rate is SGD3095 – Save SGD400!
Special Offer! – 3 Delegates For The Price of 2 in This Category! Save SGD3095!
From 23 Mar 2019: The Regular Rate is SGD3495
Special Offer! – 3 Delegates For The Price of 2 in This Category! Save SGD3495!
Note: All fees stated include luncheons, refreshments and complete set of documentation. It does not include the cost of accommodation and travel.