Safety Share · 2018-06-26 · To Succeed, To Avoid, and General Do-Overs To Succeed: •You need...
Transcript of Safety Share · 2018-06-26 · To Succeed, To Avoid, and General Do-Overs To Succeed: •You need...
Safety Share
Safety Share is a good habit. • Safe lifting is important. • MSM is involved in cranes and lifting. • This does not look safe. • Note the counterweight.
Warning
• I hate public speaking.
• I was tricked into committing to this
appearance.
Disclaimer
• Issues addressed below are not exclusive
to Mongolia. Mongolia is no worse and
no better than anywhere else in the
world. This is where I live my life so I
have an opinion.
Who Am I?
• This is the most writing on any slide. • I am 51. • I am American from a small town near Boston. • I am a Mongolian nationalist with 2 Mongolian kids. • I am a US trained attorney by trade. • I moved to Mongolia in 1997 after a financial crisis
devastated the law firm where I worked. • I followed my first wife here, a Mongolian. • I am one of the owners of MSM Group and the
Executive Director. • We import, distribute and service spirits,
automobiles, agricultural equipment, industrial equipment and chemicals in that order of preference.
• I am twice married and have a total of 4 kids. • OK?
The Builders 1998
Present
Laurenz Melchers David Reiner Bolormaa Suren
Laurenz Melchers David Reiner Mongolia Opportunities Fund
1998
MSM-2008 .ppt
• MSM was established in 1998 in a government garage with 5 people, 2 new Mercedes Benz, a container of Johnson & Johnson hygene products, and a container of Bosch power tools.
• We were guided in our expansion by inebriated drillers and desperate female persons.
History
2004 2008 2009 2010 2014 2015 1998 2005
Industrial sector focus - Atlas Copco, Boart Longyear, MSA
Further Industrial focus - BASF, Demag
Current facility completion - EBRD financing
Company restructure MES shareholder
John Deere Agricultural Machinery, Terex, Genie ,
Agricultural chemicals
ISO 9001:2008 QMS Full restructuring implementation after demerger.
Automotive focus - Chrysler, Jeep, Dodge,
Fuso
Distribution sector focus – Kimberly
Clark , Medical and MH
Founded - J&J, Bosch, Mercedes-
Benz
0,3 0,9 3,8 4,8 4,9 5,1 11,7 18,1 24,2
27,5 28,1
41,3
69,8 79,1 77,3
63,9 64.3
68,6
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Revenue
2016
Acquisition of existing and new distributorship during
economic downturn Ansul/Tyco, AMC, Perkins,
Jacon, Red Bull
The Present – 5 Divisions & 220 People
• 96% Mongolian
• 40% Women
• 90% higher education
• Iso Certified
• More than 50
international brands
• Top 100 company 9
years running
• On the airport road
before the bridge
MSM Beverage Division Social Lubrication
Automotive & Truck
Industrial
Chemical
• Anti-scalant
• Flocculent
• Separation & Floatation
• Dust Suppressant
• Local production/factory
• Construction, Flooring
& Insulation
• Basically everything
• Water Treatment
• Chemical Solutions
• Engineering
• Drilling Muds
Agriculuture, Turf and Terrain
Transportation ATV
• Everything
Mongolia
Mongolia is:
• The largest landlocked country in the world.
• The least densely populated country in the world.
• Mongolia is beautiful.
• Super rich in terms of resources - mineral, visual and agricultural. That is why ex-
pats are here.
The Countryside – mining is not alone
Ulaanbaatar Before
Ulaanbaatar Now
Oyu Tolgoi - Before
Our first Trip to OT:
• There were 2 gers, a camel and a driller named Bomber.
Oyu Tolgoi - Now
Responsible development is good. Mongolia needs to develop resources.
Government Policies 2004 2008 2013
2017 2018 onward…..
Winfall Profits Tax, birth of resource rationalism GFC tied bank defaults and interesting deals OT deal collapse & rail project failures
IMF Bailout
Urban & Strategic Planning to Date
The Future • Increase government revenues through
investment and development
• Invest in and support secondary industries to
mining
• Improve public transportation
• Develop alternative energy sources beyond UB
power plants
• Reduce ger district size & give power and utilities
to ger districts
• This all requires good planning, a government
with will and vision and efficient use of
resources.
To Succeed, To Avoid, and General Do-Overs To Succeed:
• You need to want to be here.
• Patience is of the utmost importance.
• The system works. You just need to work with it, not rage against it.
• Contracts are only as good as the people that stand behind them.
• Local talent is of high quality. A good mix, both for foreign and local entities, pays dividends.
• Deliver quality.
• Know when the economy is turning. It is turning now.
To Avoid:
• Do not try to dictate to the market or force change. Understand the market and its needs and work
within it.
• Do not try to be too clever. It is not necessary to skirt the rules.
• If at all possible, it is best not to be political.
Mistakes that can kill:
• No receivables.
• Dead stock and excess inventory kills.
• No PO, no work.
• It is not necessary to cause waves on a calm day.
• Always keep your word and pay your bills.
Questions or comments?
Copies of this presentation are available upon request.