"EASTERN MONEY". July 15, 2014. - Presentation 04: Instinctif Partners

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ARFI event - "SOUTH-EAST ASIA: New financing opportunities for Russian business. Leaders cases & experience". Expert discussion.
Мероприятие НП "АРФИ" -- "ЮГО-ВОСТОЧНАЯ АЗИЯ: Новые возможности финансирования для российского бизнеса. Опыт лидеров. Экспертная дискуссия.
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Название презентации: "Hong Kong the Gateway Provides the New Financing Possibilities for Russian Business in the SE Asia"
Докладчики: Leonid Fink, Instinctif Partners (United Kingdom), Partner
Uhi Hui (РУС: Ю Хай), Instinctif Partners, Managing Partner and CEO Greater China
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!!! Для просмотра презентации в хорошем качестве скачайте PDF-файл (кнопка "Save" вверху).
Комментарии и вопросы направляйте на contacts@arfi.ru

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"EASTERN MONEY". July 15, 2014. - Presentation 04: Instinctif Partners

  1. 1. Leaders in IPO Communications Financial communications in Greater China and Singapore 15 July 2014 Leonid Fink and Uhi Hui
  2. 2. 2 We are…
  3. 3. ADVICE AND COUNSEL TO +700 COMPANIES 17 FTSE EUROTOP 300 COMPANIES OPERATING FROM 20 OFFICES ACROSS 12 COUNTRIES 42 CONSTITUENTS OF THE FTSE 350 400 STRONG TEAM LEADING INDUSTRY SECTOR DESKS 8 IPOs FROM RUSSIA/CIS OVER THE PAST 4 YEARS ALONE 3
  4. 4. International presence Almaty Owned offices Affiliates Office locations: London, Manchester, Oxford, Reading, Edinburgh, Dublin, Frankfurt, Cologne, Munich, Brussels, Moscow, New York,, Johannesburg, Delhi, Dubai, Hong Kong, Beijing, Shanghai, Singapore, Sydney, Affiliates: Amsterdam, Paris, Berlin, Madrid, Rome, Warsaw, Baku, Almaty, Sao Paulo, Lagos, Seoul
  5. 5. Deep bank of IPO experience US$4.3bn IPO and listing in London and Moscow of one of the largest retail chains in Russia £1.2bn London IPO of the online retailer in 2014 US$2.4bn IPO in London and Almaty of Kazakhstan’s largest mobile telecom £390mn London IPO of the UK’s largest and fastest growing consumer debt purchasers and providers of receivables management solutions in 2013 £3.6bn premium listing and inclusion into the FTSE 100 of a Russian gold and silver mining company US$18bn listing on the LSE of the operator of Russia’s electricity transmission system US$1.2 billion IPO of Russian state-owned rail cargo business in 2010 Privatisation and IPO on Warsaw Stock Exchange of CEE’s leading stock exchange US$1.8bn premium listing on the LSE of Kazakhstan’s largest independent oil & gas producer US$8.1bn privatisation and public offering of the largest diamond producer in Moscow
  6. 6. A selection of Russia & the CIS expertise Financial public relations and IR for IPO raising $1bn IPO and retained London financial communications support Ongoing financial communications support, media relations programme, strategic advice Retained investor relations and corporate communications support since 2005 International launch of the company: media relations, website and strategic advice International listing in 2011 and media relations Investor relations and corporate communications support $4.3bn IPO and listing in London and Moscow. SPO on the London Stock Exchange. On- going corporate reporting Retained investor relations consultants since 2010 Investor relations consultants Capital markets engagement programme $8.1bn public offering of the largest diamond producer in Moscow Disposal and IPO of Stillwater Mining in Montana, communications support to the share buy-back programme International IPO, ongoing investor relations and international media support Financial communications, media relations support Ongoing financial comms advice, strategic advice around M&A and internal communications Ongoing international communications and advice on all aspects of corporate positioning
  7. 7. 7 Fundraising Case – Team Experience The First Institutionalized Angel Investment Forum in China 2012
  8. 8. 8 Your team in Hong Kong Uhi Hui is founder & CEO of Instinctif’s office in Hong Kong, Beijing and Shanghai to local and multinational clients, including Global and Fortune 500 companies. The offices have been recognized and rewarded with a string of local and regional award-winning campaigns. Born in Hong Kong and having studied abroad, Uhi started her career as a columnist for a leading Chinese daily. She graduated in journalism from the University of Wisconsin in Madison, USA, and is trilingual, being fluent in English, Mandarin/Cantonese and conversational French. Rena is experienced in corporate communications, strategic media relations, brand and reputation management, social media management in international PR agencies. She has worked for Instinctif (formerly known as PR People Consultancy) for over 7 years. As a team leader, Rena always provides strategic counseling to various clients and actively contributes to new business pitching for the company. Ding’s expertise includes stakeholders (government, policy makers, business, academia, community, NGO) mapping, partner identification, due diligence, regulatory research and analysis, engagement and perception audit, crisis management and corporate social responsibilities (CSR) programming. Ding is a qualified PRC lawyer and has worked on numerous M&A, IPO and government relations projects. She also holds a position at InvestHK, a Hong Kong government department promoting Hong Kong as a business location. Ding Hong Uhi Hui Rena Wang
  9. 9. 9 Erica is experienced in public relations, advertising and integrated marketing communications of the high-tech and ICT industries. She has accumulated abundant experiences and incisive industry insights to corporate communication, strategic media relations management and brand planning. Erica Jiang holds an M.A. degree in International Journalism and a B.A. (Hons) in International Business Communications from the University of Westminster. Having led over 10 IPO projects and serving over 20 listed companies in Greater China, Sheila is a veteran of public relations. She has worked in both agency and in-house, and is therefore perfectly placed to understands needs from the client’s perspective. Sheila started her career in public relations agency mainly engaged in the financial field and was in charge of both the Hong Kong and Shanghai offices for a financial PR agency which mainly engaged in capital markets and corporate communications, prior to re-joining Instinctif. She also worked in a HKEX listed company to oversee the corporate communications and marketing department. Erica Jiang Sheila Chow Your team in Hong Kong
  10. 10. 10 Challenges in building profile of Russian companies in Greater China and Singapore
  11. 11. 11 Deng Xiaoping Qian Qichen Li PengJiang Zhemin Li Lanqing
  12. 12. 12 SE Asia Top 3 OFDI In 2012, OFDIs in China, Hong Kong and Singapore rank the top three in Southeast Asia. 0 10 20 30 40 50 60 70 80 90 100 Malaysia Singapore Hong Kong China FDI Outflow 2012 2011 FDI Flows, Top 4 OFDI, 2011 – 2012 (Billions of dollars) Other countries: Indonesia, Malaysia, Thailand, Vietnam, Philippines, Myanmar, Cambodia, Brunei, etc. Source: World Investment Report 2013: Global Value Chains: Investment an Trade for Development
  13. 13. 13 IPO in HKEX / SGX 2012 HKEX SGX Global Ranking (by market capitalization) By end of March 2014 2 (in Asia) / No. of Listed Companies 1,368 776 Total Market Capitalization (HK$ bn) 21,871 5,967 Source: World Federation of Exchanges (WFE): Market Capitalization of the World's Top Stock Exchanges (As at end Mar 2014) Hong Kong Stock Exchange Fact Book 2013 Singapore Exchange, by ICB Classification (December 2013)
  14. 14. 14 Perception of Russian Companies - China In recent years, Chinese investment in Russia has been increasing and the overall trend is positive. The energy, infrastructure and consumption sectors have great potential. However, Russian companies keep a low profile; we would like to learn more. China Business News There’s a correlation in economy and trade between China and Russia, thus the market prospect is considerable. For Chinese investors, the two biggest concerns are trust and corporate governance. Therefore, corporate profiling and information transparency are very important. International Business Daily
  15. 15. 15 Perception of Russian Companies – Hong Kong Russian companies have a low profile in Hong Kong and liquidity of their shares is low. We think it would be great if transparency of Russian companies can be increased and are interested in working with them. BOCOM (Bank of Communications) International Securities Limited Russia has huge amount of natural resources; its economic growth should be positive. Also its trading relationship with NE China is a good sign indicating the increasing investment in Russia. Infocast.com.hk
  16. 16. 16 Perception of Russian Companies – Singapore Gazprom listing its GDRs on the SGX allows greater access to Asian investors. We would welcome more opportunities like this in future. From an Investment Banker
  17. 17. 17 Asian INVESTORS Pragmatic Welcome Opportunities Quick / High Return Business Oriented
  18. 18. 18 Stereotypes • Russians love vodka • Bureaucratic • Russian companies are complicated to deal with • Corruption and poor corporate governance Offers • Established US$10B RDIF • No. 3 in attracting FDI globally • Fast-growing sectors • Attractive domestic market • With state support • Investment opportunities in different fields • Very positive attitudes towards Asian investors
  19. 19. 19 • GENERATE AWARENESS • BUILD UP VISIBILITY • CREATE UNDERSTANDING
  20. 20. 20 China is the largest media market and online population • 2 National wires • 2,200+ newspapers and more than 40 newspaper groups • 9,500+ magazines • 2,000+ TV companies (3,000+ channels) • 300+ radio stations • 3.3 million websites, online population reaches 564 million, access through mobile phones surpasses PCs Media Landscape - China
  21. 21. 21 Party Newspapers Financial TV Financial Daily Newspapers (Designated by the China Securities Regulatory Commission to disclose information on listed companies ) Business Newspapers Media Landscape – China (cont’) People’s Daily Guangming Daily Economic Daily Securities Times
  22. 22. 22 Online Financial Media Financial BBS (Bulletin Board System) Social Media Financial Bloggers Media Landscape – China (cont’) Weibo Ye Tan Niu Wenxin Liu Jipeng Tao Dong Kai EnsiXu Xiaoming Netease
  23. 23. 23 Media Landscape – China (cont’) • The majority of journalists in China use Chinese only • Personal relations (Guanxi) is helpful for communication • Local journalists support international business but to some extent with nationalist and protectionist sentiments • Highlighting the advantage to local markets and following the overall government orientation will be helpful. • Traditional vs. Social - Traditional financial and business media are still considered as the authoritative channel but social media is a complementing platform for the release of information (including by the government) • MNCs are often singled out for criticism over product safety, service quality, labor issues, etc. • Transparent and effective communications are important • Media of first-tier, second-tier and third-tier cities are different
  24. 24. 24 China Media Handling Tips DO: • Create a Chinese company name • Ensure your translation is being done correctly (China uses simplified Chinese vs traditional Chinese) • Be humble, polite and professional • Media tour is very welcomed AVOID: • Multi contacts in one media • Last minute change • Arrangements during the weekend, holidays or early morning • Political and religious topics
  25. 25. 25 Yes or No? Yes, if targeting state-owned enterprises or big amount of investment • NDRC (formerly the National Planning Commission) • E.G. Dept of Foreign Capital and Overseas Investment (a unit of NDRC) • Ministry of Commerce (MOFCOM) • E.G. Dept of Outward Investment and Economic Cooperation (part of MOFCOM) • The State-owned Assets Supervision and Administration Commission (SASAC) • The State Administration of Foreign Exchange (SAFE) Provincial officials (Approval for less than US.3M) Government Relations in China
  26. 26. 26 Hong Kong International / Infrastructure / Efficient Transparent / Independent Judiciary Famous for its Financial Capability Offshore RMB Centre Sustained Growth in Fund Mgt Sector Hong Kong - Gateway to China’s OFDI
  27. 27. 27 Media Landscape – Hong Kong • As an international city, Hong Kong reporters speak fluent English as well as Mandarin • Local journalists look closely at matters regarding China, and also broadly cover international business news • Many regional financial media have set up offices in Hong Kong, e.g., Bloomberg, Thomson Reuters, CNN, BBC, etc. • Online media (providing real-time information) and news apps (better fulfilling demand on “reading anytime anywhere”) are more popular and important than traditional media for stock news and updates.
  28. 28. 28 Financial Daily Newspapers Online Financial Media Financial TV General Media Media Landscape – Hong Kong (cont’)
  29. 29. 29 Media Landscape – Singapore • Media prefer briefings with factual content • Dailies are owned by Singapore Press Holdings and one Mediacorp: • Main business daily is Business Times • Other dailies have business sections but focused on businesses which have a Singapore base or connection generally • Other key business are broadcast: BBC has Asia Business Report and CNBC • News agencies such as Bloomberg, Dow, Reuters, AP all have offices in Singapore • Business news feeds are mainly through the wires • The Edge, a business magazine, focuses on listed companies
  30. 30. 30 Financial TV News Agency Financial Daily Newspapers Business Magazine Top 3 General Daily NewspapersMedia Landscape – Singapore
  31. 31. 31 All in all… Get public money or not: • Well-thought and elegantly executed narrative to get a good start • Good intelligence from both investors and analysts of what they want from new companies • Important to get the story right to the market to generate positive interest in your equity story over the medium and long term If you do not / cannot talk about figures: • Corporate profiling of your company or management • Create awareness, understanding as well as transparency • Finally trust will be built
  32. 32. 32 SE Asia will be investing in the Modern Russia!
  33. 33. 33 Fund Raising B2B MatchingOnline Interactive Media Crisis and Issue Management Speaking Opportunities Media Relations Investor Roadshow Government Relations Expert Consultation Channels to Attract Potential Investment
  34. 34. 34 HKEX - Depositary Receipts (HDRs) SGX - Global Depositary Receipts (GDRs) Current listing: • Vale Common - DRS (6210) • Vale Pref – DRS (6230) • Fast Retail – DRS (6288) • Coach –DRS – RS (6388) Current listing: • GDR Accentia US$ S • GDR BombayRayon US$S • GDR Confidence US$ S • GDR DoosanInfraUS$ A • GDR DoosanInfraUS$ R • GDR Hanwha Chem US$ A • GDR Hanwha Chem US$ R • GDR JSC • GDR Gazprom US$S • GDR K.S.Oils US$ S • GDR Karuturi US$ S • GDR Kolao Hldg US$S • GDR OCI US$ A • GDR OCI US$ R • GDR Visesh US$ S • GDR Welspun US$ S • GDR Youngone US$ S Listed on Mainboard Listed on Mainboard / Catgalist Primary listing on another exchange which must be maintained No requirement for existing listing Depositary Receipts

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