MAHESH JAYANARAYAN

1. MAHESH JAYANARAYAN PRESENTED BY ISLAMIC MICROFINANCE & THE HALAL INDUSTRY Al Huda Microfinance Conference Saturday 8th December 2012 World Trade Centre, Dubai www.umexcmg.com

2. ABOUT UMEX • Umex Capital Markets Group ltd • RESPONSIBLE INVESTING • Ethical, SRI and Sharia investments from all of the world’s main markets and is complimented by several of its proprietary real time trading solutions. • Umex places particular emphasis on the concept of RESPONSIBLE INVESTING. This ethical investing strategy seeks to achieve financial return without compromising social values and benefits. • Umex is a financially Regulated firm operating under MiFID rules in the UK, Sweden and Romania.

3. Umex Products & Services

4. BRAND & HALLMARK Umex Brand UMEX is derived from the word 'UMMAH' meaning 'community of nations' established in 622 AD by the Prophet (pbuh), with a view of bringing communities and nations together under the Medina Constitution. Umex means- Community Exchange. Umex Hallmark- Ethical & Sharia screening & monitoring Every aspect of our Fatwa-awarded products and services is fully compliant to Ethical & Sharia investment principles and constantly monitored for accuracy by top eminent scholars of the Sharia Advisory Panel.

5. Our Practices EQUITABLE ETHICAL ENVIRONMENTALLY FRIENDLY SOCIAL RESPONSIBILITY ACCOUNTABILITY SUSATAINBILITY TRANSPARENCY CORPORATE GOVERNANCE www.umexcmg.com

6. Responsible investment guidelines UMEX Microfinance platform applies to ALL investments. Guidelines are based on international conventions and standards Own analysis plus three external suppliers (MSCI ESG Research, Ethix SRI Advisors, GES Investment Services)

7. Our Philosophy • ... to avoid immoral practices that may harm humans, the environment or animals • ... to contribute to a healthier eco-system and better social environment whilst maintaining profits • … to use their savings as a tool to influence and contribute to sustainable development • ...investing in sustainable future prospects.

8. Umex’s Investment Approach to Microfinance • Socially Responsible • Human rights • Labour rights • ( e.g. No child labour) • Business ethics & anti-corruption • Environmental • Carbon Emissions • Clean Energy • No Pollution • Controversial Products • Armament • Alcohol • Tobacco • Gambling • Pornography INCLUDE! INCLUDE! EXCLUDE!

9. How We Influence Sustainability analysis •Repeated contacts with companies •Identify areas for improvement In depth engagement •Long term engagement •Sector dialogues Governance •Annual general meetings •Election committee •Proactive engagement with companies

10. A Microfinance Opportunity www.umexcmg.com

11. HALAL MARKET Halal industry, a rapidly expanding business now reaching 2.6 billion consumers worldwide and worth an estimated US$2.1 trillion. The current Halal foods market has some estimates as high as $560 billion (World Halal Council). Conversely these estimates are lessened by the fact that a significant portion of the halal market is composed of meats produced and consumed domestically. This does not account for the beneficiaries of this sector including world economies like Brasil, Australia and New Zealand The Halal market has become the latest buzz and untapped market in the international marketplace. www.umexcmg.com

12. The Islamic Halal Enterprise sector The market is fragmented and loosely managed giving rise to myriad opportunity to those planning on bringing Halal products and services to the mainstream market in a relatively recession proof industry. The market is predominantly sustained by the SME sector The Micro, Small & Medium enterprises contribute a significant proportion to the world economy. Recent statistics and research report shows that it is necessary to allocate a significant proportion of private equity to the Micro and Small enterprises to stimulate growth in world economies as well as to provide a sustainable social fabric to overcome barriers of cultural and religious divide. www.umexcmg.com

13. Multiple Gateways to Participating in the Global Halal Food Industry The large, truly global market for Halal food products provides many gateways to equity participation: • Farming and related Industries • Raw materials and food derivatives for Halal-related industries, • Production or processing • Consumer goods and Private label production • Lifestyle and consumer products specifically tailored to meet Islamic principals • Exporting • Retailing • Hotels, restaurants and institutions • Transportation or logistics support • Management service www.umexcmg.com

14. KEY ECONOMIC FACTS Muslims = 2.1 billion (2012) Non-Muslims eating Halal food = 1 billion Total captive audience = 3.1 bn Spend per day 1$ Total = 3.1bn x 1$ x 365 days = 1131.5 bn YOU DON’T NEED TO BE A WALL STREET WIZ KID OR A ROCKET SCIENTIST TO FATHOM ITS SHEER INFLUENCE ON THE WORLD ECONOMY www.umexcmg.com

15. HALAL ENTERPRISES www.umexcmg.com

16. KEY DRIVERS Key factors of increasing demand of Halal products are: Increasing Muslim Population Increasing income Increasing demand for safe, high quality food Increasing demand for greater variety Incidents of food marketed as Halal but failing to meet Halalrequirements has increased demand for genuine Halal products www.umexcmg.com

17. WHY INVEST IN HALAL Investing in a sustainable and rapidly growing industry group and the fastest growing ethnic community sector in the world Investing in products and markets that have a focused and targeted consumer group. Recession proof. Investing in sector targeting a consumer group with deep rooted traditions and culture that have an ingrained religious need and ‘musthave ’product – Halal. The market is fragmented and loosely managed giving rise to myriad opportunities to a group planning on bringing Halal products and services to the mainstream market. Consumer size - 1.6 billion Muslims and consumer spend of US $ 2.1 trillion. 50% of population below the age of 35. Reaching non-Muslim population who are already Organic food conscious. Entering into new markets and food sectors like Fast Food e.g. Halal Pizzas etc. www.umexcmg.com

18. SWOT Weakness Lack of qualified expertise in this sector in non- Muslim countries. Lack of experienced and skilled workforce. Lack of investment in this industry from major investors and institutions. Lack of public investor knowledge in this sector outside of the Muslim community. Lack of coordinated brand marketing. Lack of proper branded retail outlets. Lack of general consumer awareness of Halal products and their health benefits. Strength • Halal is an absolute requirement in the Islamic community -1.6 billion population. • Well developed market in the Muslim sector. • Well developed products – Food and consumer goods. • Well defined market segment. • Captive consumer audience. • A large proportion of the Muslim community have a high spending capacity. • Well regulated sector for quality as all products are certified or accredited. Threats • Geo –political issues. • Religious issues • Misinterpretation of Islamic laws. • Breaking Islamic principles. • Anti commercial backlash. • Competition from major brands. • Competition from major super markets with their own brand of Halal e.g. Tesco etc. • Environmental issues giving rise to price wars. • Inflationary pressures in the future. Opportunities • Consumer size - 1.6 billion Muslims. • Market size – US $2.1 trillion. • Diversified Industry Groups. • Fragmented market segment. • Need for a global brand. • 50% of population below the age of 35. • Reaching non-Muslim population who are already Organic food conscious. • Entering into new food sectors like Fast Food e.g. Halal Pizzas etc. www.umexcmg.com

19. Halal Industry & Islamic Finance: Room for cooperation In order to ensure that the Halal industry continues unhindered with its progress and realizes it potential and promise, two major areas need to be addressed as soon as possible. One is the very limited relationship that it enjoys at the moment with Islamic finance sector and secondly, the role it can play in development of the SME sector. Halal industry and Islamic Finance markets are two major Shari’ah-compliant industries that are both said to be growing at around 15-20 percent per annum and as pointed out earlier have a combined value in excess of a trillion Euros. One would expect there to be extensive cooperation between them, due to adherence to similar faith principles, but for some strange reason, this hasn’t been happening and in fact very few Islamic Banks are directly involved in the Halal industry, and very few Halal producers seem to actively looking for Shari’ah compliant sources of finance. The Halal industry is predominantly made up by the SME sector, which is continuously looking for opportunities for growth and expansion. The financing needs can be addressed by UMEX , so that a sustainable growth of the Halal industry can be ensured. www.umexcmg.com

20. Umex & Microfinance Umex aims to enter the microfinance sector with a particular focus on the Halal Industry. This will provide support for small and medium enterprises specialising in the agricultural, food and clothing industries. Small to medium enterprises form a majority of emerging markets and provide a key pillar for economic growth

21. Umex and its Role Umex provides a concrete foundation to support the Halal microfinance sector that proves so essential to emerging market economies By providing a platform, our services offer small and medium enterprises the opportunity to present their story and gain exposure in this thriving Islamic financial sector Umex operates on a non-usury financing model www.umexcmg.com

22. Investment alternatives in Microfinance

23. Thank you! Mahesh Jayanarayan Contact: mahesh.jayanaryan@umexcmg.com www.umexcmg.com