The last decade has witnessed an unprecedented number of mergers and acquisitions (M&A) in the global energy sector. According to the United Nations Conference on Trade and Development (UNCTAD), of the 1,035 regulatory changes made globally between 1991 and 1999, 974 were specifically aimed at increasing foreign direct investment and M&A. *Examining the upward trend of M&A in the global energy industry and assessing the rationale and benefits of M&A in the energy sector in Malaysia *Critical success factors and considerations *Identifying the risks and avoiding pitfalls *Strategies to structure and negotiate effectively for optimal value and partnership for your investment *Capitalizing on the opportunity for investments in what were once state-owned monopolies

1. FOLLOWING GLOBAL TRENDS: EXAMINING THE NEED FOR MERGERS & ACQUISITIONS IN THE ENERGY SECTOR IN MALAYSIA Case studies, Concepts, and Debatable Ideas Kenny Ong CNI Holdings Berhad www.myCNI.com.my www.OOBEY.com

4. The Roadmap to Failure Fred Wiersema and Mike Treacy Performance Time www.myCNI.com.my www.OOBEY.com Clear Sailing Today’s performance Ad-hoc Tactics Denial & Defense Doom Projections Overdue Failure The Moment of Truth X Performance Freefall Tomorrow’s actual performance Downpresure of Unclear Strategy

6. The Roadmap to Failure Fred Wiersema and Mike Treacy Performance Time www.myCNI.com.my www.OOBEY.com Clear Sailing Today’s performance Ad-hoc Tactics Denial & Defense Doom Projections Overdue Failure The Moment of Truth X Performance Freefall Tomorrow’s actual performance Downpresure of Unclear Strategy

8. The Roadmap to Failure Fred Wiersema and Mike Treacy Performance Time www.myCNI.com.my www.OOBEY.com Clear Sailing Today’s performance Ad-hoc Tactics Denial & Defense Doom Projections Overdue Failure The Moment of Truth X Performance Freefall Tomorrow’s actual performance Downpresure of Unclear Strategy

10. 1. M&A Trends in the Energy Sector www.myCNI.com.my www.OOBEY.com

16. 2. Rationale for M&As in the Energy Sector www.myCNI.com.my www.OOBEY.com

23. Rationale for M&As: Energy Sectors New Delivery, New Sources, Existing Resources Oil, Gas, Electricity, Coal Biomass, Nuclear, Ethanol, Wind, Solar www.myCNI.com.my www.OOBEY.com Traditional Utility Alternative Energy Incremental Technology

26. 3. Strategies, Structure, and Optimizing Value in M&As www.myCNI.com.my www.OOBEY.com

32. Buying Market Share: Acquisition strategy No evidence of previous company One Kingdom Pre-integration Blueprint Slow Trigger, Fast Bullet www.myCNI.com.my www.OOBEY.com Integration Operating Model Price Premium Buying Market Share Net Cost per Customer < Direct Acquire

35. Strategy 4: Invade Adjacent Markets www.myCNI.com.my www.OOBEY.com Traditional Utility Alternative Energy Incremental Technology

36. Strategy 4: Invade Adjacent Markets Upstream Midstream Downstream Distribution Generation Extraction Vendors/Services www.myCNI.com.my www.OOBEY.com

41. Linking BSC to M&A Strategy Revenue Growth Base Retention Share Gain Positioning Adjacent Market New Business Operational Excellence Product Leadership Customer Intimacy Competencies Information Systems Motivation, empowerment, alignment Financial Learning & Growth Internal Process Customers Investment Strategy Productivity Market Value www.myCNI.com.my www.OOBEY.com

42. Optimizing M&A: 4-Wheels Model Culture Business Objective M&A Strategy www.myCNI.com.my www.OOBEY.com Structure Resources Leadership Person

47. 4. Considerations, Risks and Pitfalls www.myCNI.com.my www.OOBEY.com

51. Consideration: Alternative Deals to M&A Joint Venture Unite business units Problem with shared ownership New Product Lines Cost Reductions Share risk, Share Cost in new markets, R&D Buy-out clause Alliances Reduce non-core or commoditizing parts Outsourcing, Offshoring Help supplier gain Scale Enter Complementary business www.myCNI.com.my www.OOBEY.com

52. 5. Investment Opportunities www.myCNI.com.my www.OOBEY.com

55. Thank You. soft copy of slides: www.totallyunrelatedrandomanddebatable.blogspot.com