presentation on the proposed setting up of fidelity bank's asia regional office in singapore

PRESENTATION

ON THE PROPOSED SETTING UP

OF

FIDELITY BANK'S

ASIA REGIONAL OFFICE

IN

SINGAPORE

Fidelity Bank Singapore

Comparisons Of the Options of Establishing Singapore Office

Subsidiary Company vs. Branch Office vs. Representative Office

11/15/10


Setting Up Options

• Phased Approach• First 1-2 years operating as Representative Office(Representative Office operates purely as a cost center as it is not permitted to conduct commercial activities)

• Year 3 onwards, conversion to a Regional Office(Regional Office operates as a full Business Unit with its own P&L)

• Full-Scaled Launch• Starting from Year 1 as a Regional Office or Subsidiary Company(Regional Office/ Subsidiary Company operates as a full Business Unit with its own P&L)

5


Projected Costs FY2011 to FY2015

* Calculations include Selling & Marketing, General & Administration andFinance Expenses less Non-Trade Income

As Representative Office (Business Unit)

As Regional Office (Business Unit)

Assumptions

• Order Book Target are based on securing at least one large scale deal per year from FY2013 onwards

• Total Estimated Revenue for first 5 yrs = S$25,000,000

• Total Estimated Costs = S$7,200,000

• Head count: Year 1 & 2 = 3 staff; Year 3 & 4 = 4 staff , and Year 5 = 6 staff

• Targeted Clients :Tier One = Sembcorp, Keppel, ST Engr; Tier Two = KS Energy, Baker Tech, CSE Global, Frasers Hospitality, Amara Hldgs, GMAPS, etc., Tier Three: SMEs & consultants, eg., Vega Foods, Infotech Global, Jurong Consultants, Surbana, etc..; Will also target clients from China & other Asian as well as Middle East markets.

• Typical fee structure for large scale deals range from 0.5% to 2.5% of total cost of project; with upfront fees payable upon deals signed and remaining amount to be paid progressively & final payment upon financial close.

• First 2 yrs Rep Office will refer deals and earn fees booked thru’ internal a/c parked at Fidelity Bank HQ to defray costs;

• FY2013 onwards, Singapore will operate as a “Business Unit” with its own P&L and self financing; 6

Fidelity Bank Singapore: Regional Office

• Sembcorp Signs Contract for US$1 Billion Salalah Independent Water and Power Project In Oman

• Sembcorp Industries is pleased to announce that it has achieved financial close for its approximately US$1 billion combined power and desalination plant in Salalah, Oman.

• Sembcorp Marine's Jurong Shipyard Secures US$384 Million Contract To Build Two Jack-up Rigs With Options For Another Four Jack-up Rigs From Seadrill

• Sembcorp Marine's Jurong Shipyard Secures S$351 Million FPSO Conversion Contract

• Sembcorp Marine’s Sembawang Shipyard Secures FPSO Conversion And Upgrading Contracts Worth S$75 Million

• Sembcorp Seals Gas Deal Worth US$5.5 Billion

• SembUtilities acquires 40% interest in Fujairah Independent Water and Power Plant in UAE valued at US$1.8 Billion

7


Example of Potential Deals and Projects from Sembcorp Group

• Keppel FELS secures new contracts worth US$101 million

• Keppel secures S$341 million contract for second phase of the Greater Manchester Energy-From-Waste Project

• Keppel FELS enters into Letter of Intent with Mermaid for two new-build Jack-up rigs worth US$360 million

• Keppel secures S$170 million worth of Brazilian projects from SBM and QGOG

• Keppel Shipyard secures conversion contracts worth $160 million

• Keppel-J. Ray joint venture wins Brazil’s P-61 TLWP contract worth about US$ 1 billion

• Keppel to upgrade and repair 2 Noble drill ships for US$304 million in Brazil

• Keppel FELS to build seventh ENSCO deepwater rig worth US$560 million

• Keppel to build Scorpion’s first semi-submersible for US$405 million

• Keppel to build GSP’s eco-friendly multi-purpose vessel for S$181 million

8


Example of Potential Deals and Projects from Keppel Group

• ST Engineering's Aerospace Arm Clinches S$1b Engine MBH™ Contract

• ST Engineering's Aerospace Arm Secures S$370m Worth of Airframe Heavy Maintenance Contracts in 3Q2010

• ST Engineering's US Shipyard wins US$165m Contract to Build 4th Fast Missile Craft

• ST Engineering Awarded S$66.5m Integrated Waste Management And Engineered Landfill Project in Brunei

• ST Engineering's Land Systems Arm Establishes Construction Equipment Company in India with a total investment of about S$50m.

• ST Engineering's Electronics Arm Awarded S$44M Contract to Build a Third Generation Command & Control System for the Singapore Police Force

• ST Engineering's Electronics Unit Awarded $255m Shared Services Contract From MINDEF And Incorporates New Subsidiary To Focus On e-Government Services

• ST Engineering's Electronics Arm Wins S$12m Contracts From Bangladesh Chittagong Port Authority

• ST Engineering's Electronics Arm Awarded S$36.7m Contract By Thales Australia For Air Traffic Control System 9


Example of Potential Deals and Projects from ST Engineering Group

• KS ENERGY ACQUIRES INDONESIAN DRILLING COMPANY WITH US$66 MILLION DRILLING CONTRACT

• KS Energy wins $65m charter contract for 50%-owned new rig KS Endeavor . The recent deployment of KS Endeavor to West Africa will also pave the way for the group to make further inroads into Africa.

• CSE Global: Wins Two Contracts Totaling S$55 Million In The Middle East And Russia.

• Baker Tech has been featured as one of eight companies from Singapore on Forbes Asia’s “Best Under A Billion” list. The annually published list showcases 200 of the Asia-Pacific region’s top-performing small and midsize companies.

10


Example of Potential Deals and Projects from Mid-Cap SGX listed Companies


Services to be offered through Singapore Office

The team in S’pore will work closely with HQ to assist in marketing and promoting the following services & products:

• Banking Facilities in Ghana

• Term Lending

• Structured Debt Finance

• Project Finance

• Property Finance

• Structured Trade and Commodity Finance

• Performance Bonds & Banker’s Guarantees

• Letter of Credits


SWOT Analysis

• Close working relationship with clients

• Amongst the few key players in the same industry

• Extend balance sheet

• Establish credibility

• Close relationship with government

• Full business engagement from advisory through to financing

• Local bank anchored with strong international best practices, leadership and governance

• Boutique Bank focusing on targeted tier 1 and 2 clients

• Longevity – 15 years establishment in leadership

• Established leadership with presence in Asia

Strength Weakness

• Main technical expertise from HQ in Ghana;

• May need time to respond to clients reqmt;

• Higher costs until local resources get up to speed;

• Lack of international ratings

• Not yet a global and African brand

• Market cap?

• Low brand awareness

• Perception of African, companies

• Perception of political risks, stability

• Transparency or opaqueness of business environment in Africa, regulations etc

• Position of Fidelity Bank


SWOT Analysis

• Gain “First mover” advantage in a growing business environment

• Asia – global growth hot-spot for next 5 to 10 years

• Singapore is the global & regional hub for Oil & Gas as well as Finance sectors.

• Corporate Finance & M&A Deals offers good margins;

• Opportunity to be a real African partner

Opportunity Threat

• Competitors constantly knocking at clients’ door

• Market entry may be costly;

• Rapidly changing environment;

• Potential change of clients’ leadership.

• Clients may want to continue to deal with established banks


Representative Office: Fee Charges Structure

CLIENT FIDELITY HQ

FIDELITY BANK HQ SIGNS CONTRACT WITH CLIENT FOR

100% OF PROJECT FEE

FIDELITY S’PORE REP OFFICE PROVIDE

GENERAL ADMINMINISTATION SUPPORT/MARKETING ONLY*

FIDELITY HQ SETS ASIDE 50% OF FEES

TO SPECIAL A/C FOR S’PORE REP OFFICE

*ALL CONTRACTS MUST BE SIGNED OUTSIDE SINGAPORE BY DIRECTORS FROM FIDELITY BANK HQ.

SPECIAL INTERNAL A/C FOR

FIDELITY SP REP OFFICE


Thank You

presentation on the proposed setting up of fidelity bank's asia regional office in singapore

Documents

regional office slide

representative office

singapore slide

branch office

yrs rep office

sembcorp group slide

pl slide

fidelity bank hq