Sharing my September 12, 2017 keynote presentation, "Leasing in China - Moving to the Next Level!," from this year's 4th Annual Global Leasing Industry Competitiveness Forum that was held in Tianjin, China September 12 - 13. Our annual event is co-organized with Tianjin NFMedia Ltd.

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Sudhir P. Amembal
Chairman and CEO – Amembal & Halladay
LEASING IN CHINA - MOVINGTOTHE NEXT LEVEL!

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©2017 Amembal & Associates. All rights reserved. The entire content of this
presentation is subject to the copyright of Amembal & Associates (“the Company”) and
must not be reproduced or used in whole or in part without the express written
permission of the Company.
* * * * * * * * * * * * * * * * *
DISCLAIMER
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Whilst every effort has been made to ensure that the information contained in this
presentation is correct and that there are no errors or omissions, no responsibility is
accepted as to the accuracy or completeness of the statements, facts and examples
included herein, and no liability is accepted whatsoever on the part of the Company, or on
the part of its executives, managers, servants or agents of the Company for any loss or
damage whatsoever, however caused, arising from the use of this presentation material.

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About Amembal & Halladay
Statistical Overview
The Good News
The Not-So-Good News
Moving to the Next Level!
Conclusion
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TOPICAL OVERVIEW

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About
Amembal & Halladay

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About Amembal & Halladay
In General
 Serving the global leasing industry since 1978
 Trained over 80,000 leasing professionals in over 80 countries
 16 leasing publications
 Counselors to corporates and governments
 M & A advisory services

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About Amembal & Halladay
In China
 Since 1989
 Assisted in drafting Chinese leasing law
 Co-organizer of the Global Leasing Industry Competitiveness Forum
 ChiefAdvisor to CMIG LeasingGroup

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Statistical Overview

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Statistical Overview
Comparative (2015)
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U.S.A.
Annual leasing volume (US$ billion) 374.35
Penetration rate 22.0%
United Kingdom
Annual leasing volume (US$ billion) 87.13
Penetration rate 31.1%
Germany
Annual leasing volume (US$ billion) 63.82
Penetration rate 16.7%
China
Annual leasing volume (US$ billion) 136.45
Penetration rate 4.0%

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Statistical Overview
Comparative Annual Growth (2005 – 2015)
5.80%
35.00%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
U.S.A. China

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Statistical Overview
2007
U.S.A
Germany
Japan
Italy
France
Russia
Spain
Brazil
Canada
U.K
2026?
CHINA
U.S.A.
2008
U.S.A
Germany
Japan
Brazil
France
Italy
Russia
CHINA
U.K
Canada
2009
U.S.A
Germany
Japan
CHINA
France
Italy
Brazil
U.K.
Canada
Russia
2010 2011 2012 2013 2014 2015
U.S.A U.S.A U.S.A. U.S.A. U.S.A. U.S.A.
CHINA CHINA CHINA CHINA CHINA CHINA
Germany Germany Japan Japan U.K. U.K.
Japan Japan Germany Germany Germany Germany
France France U.K. U.K. Japan Japan
Italy Italy Canada Canada Australia France
Russia Russia France France France Australia
Canada Canada Russia Russia Canada Canada
Brazil U.K. Sweden Sweden Sweden Sweden
U.K. Switzerland Italy Italy Italy Italy
What Next in Terms of Size?
Source: White Clarke Global Leasing Report & World Leasing Yearbook

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The Good News

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The Good News
Macro
Sustainable economic growth
Key strategic government initiatives
“Made in China 2025”
One Belt, One Road
Substantial growth in newer industries
Alternative energy
Aviation
Healthcare
Upgrading of manufacturing equipment

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The Good News
Industry Specific
Economic slowdown
Government support and encouragement
Circulars 68 and 69
Tianjin government
Tax reform
Opportunities being tapped in high growth sectors
Movement to PPP
Continued popularity of leasing zones
IncreasedABS activity
Gradual movement to operating leases

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The Not-So-Good News

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The Not-So-Good News
Recent
Deleveraging
Continued margin compression
Ongoing
Lack of leasing framework
No unified property register
Low lessee awareness
Lack of adequate human talent
Substantial prevalence of loans and sale-leasebacks

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Moving to the Next Level!

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Moving to the Next Level!
What Needs to Happen
8,000 leasing companies!
Consolidation
Homogeneous product
Additional focus
and
product
innovation
Shrinking margins
Pricing discipline

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Moving to the Next Level!
Financial resources
Equity
Exists
Debt
Need to expand funding base
Human resources
Talent
Dire need to boost training
Extraneous factors
Proper legal framework
Meaningful statistics to facilitate benchmarking
Ingredients of Success

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Conclusion

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Conclusion
Passage of time
Effort
Wisdom
MOVING
TO
THE
NEXT LEVEL

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ThankYou!