Current crisis creates a number driving forces towards Private Equity making it favorable for investors

1. “Opportunity in China-Focused Private Equity”
- Landscape Change with the Financial Crisis?
Mar 2009
Jan 2009 Version 2.0 by KC Yoon
PROPRIETARY & CONFIDENTIAL

2. 2009 – China Most Attractive PE Market
“Peter Fuhrman, Chairman China First Capital” Mar 2009
quot;While the overall investment environment
remains challenging and the effects of 2008's turbulence are
still being felt, 2009 will be a year of unique opportunity for
private equity, venture capital and M&As in China.quot;
China's economy continues to grow, powered largely by
successful small and medium private businesses, many of which are among the fastestgrowing
companies in the world. Private equity and venture capital investment in China will likely reach
record levels in 2009, the report projects, with over $1bn in new investment into high growth
Chinese SMEs with strong focus on China's booming domestic market.
quot;In 2009, China should rightly be among the most attractive and active private equity investment
markets in the world,quot; the China First Capital report predicts. quot;Many of the international private
equity firms we work with are expecting to invest more in Chinese SMEs in 2009 than in 2008.
Chinese companies raising capital this year will enjoy significant financial advantages over
competitors, improving market share and profitability.quot;
Jan 2009 Version 2.0 by KC Yoon

3. Presentation Outline
Crisis Creating Favorable Conditions
Crisis Creating Favorable Conditions
for Private Equity in China
for Private Equity in China
THREE: Most FOUR: Optimal
THREE: Most FOUR: Optimal
ONE: Export to TWO: Rise of
ONE: Export to TWO: Rise of Attractive Timing for
Attractive Timing for
Domestic Shift Domestic PE
Domestic Shift Domestic PE Market Value
Market Value
Global Funds Continue to Flow to
Global Funds Continue to Flow to
China China
China China
Weathering
Weathering
Crisis?
Crisis?
Consumer Focus Funds Making Entry
Consumer Focus Funds Making Entry
into China
into China
Macro-factors
Other Macro-factors
Other
Driving China’s
Trends: Driving China’s
Trends: Key Consumer Trends and Potential
Key Consumer Trends and Potential consumer
PIPE/RTO consumer
PIPE/RTO Investment Themes
Investment Themes economy
deals economy
deals
TWO: Niche THREE:
TWO: Niche THREE:
ONE: Retail +
ONE: Retail + Branded+ Dist Education &
Branded+ Dist Education &
Luxury
Luxury Services Healthcare
Services Healthcare
Jan 2009 Version 2.0 by KC Yoon

4. Current Crisis Creating Driving Forces for Private Equity (I)
Conditions for PE Investments in China increasingly favourable
Conditions for PE Investments in China increasingly favourable
China’s Strategic Shift from “Export Reliant Model” to “Domestic
China’s Strategic Shift from “Export Reliant Model” to “Domestic
Consumption Model” Economic transition will
Consumption Model” Economic transition will
result in growth of new
result in growth of new
economic sectors, new
Right economic sectors, new
industries & companies-
1 industries & companies-
Strategy
1 Creating investment
Creating investment
= opportunities
opportunities
Winning
Fund
Foreign retailers continue strong Chinese retailers report strong
Retail sales continue to grow
expansion plans in 2009 growth for 2008
Leading Ladies
Watsons to open 120 new stores Leading Ladies
Watsons to open 120 new stores
Shoe Brand
in 2009 (vs 86 in 2008) with a
Shoe Brand
in 2009 (vs 86 in 2008) with a
focus on selling self-branded Revenues grew
focus on selling self-branded Revenues grew
lower-priced products over 60%
lower-priced products over 60%
Leading Sports
Leading Sports
Global fast fashion retailer H&M
Global fast fashion retailer H&M Brand –Revenues
to open 5 flagship stores in Brand –Revenues
to open 5 flagship stores in +Profit grew over
Beijing, Shanghai, HK. +Profit grew over
Beijing, Shanghai, HK.
50%
50%
President Grp opening 7-11 in
President Grp opening 7-11 in
Leading Dept
Shanghai targetting highend
Leading Dept
Shanghai targetting highend
consumers Store Revenues
consumers Store Revenues
Jan 2009 Version 2.0 by KC Yoon increased over
increased over
30%
30%

5. Current Crisis Creating Driving Forces for Private Equity (II)
Conditions for PE Investments in China increasingly favourable
Conditions for PE Investments in China increasingly favourable
Chinese Government recognition of role of PE in driving economic;
Chinese Government recognition of role of PE in driving economic;
Favourable changes
growth and support for growth in domestic PE Favourable changes
growth and support for growth in domestic PE
encourage both foreign
encourage both foreign
PE funds to enter market
Key changes include:
PE funds to enter market
Key changes include:
• Setup of Chinese SWF
as well as setup of
PE landscape • Setup of Chinese SWF
as well as setup of
PE landscape • Capital reforms to encourage domestic
• Capital reforms to encourage domestic
dominated by foreign domestic funds
listing
dominated by foreign domestic funds
listing
players; change of • Allowing foreign-funs to have RMN- Lower Regulatory Risk
players; change of • Allowing foreign-funs to have RMN-
2 Lower Regulatory Risk
2 demoninated funds
regulatory policies for
& Increase Funding
demoninated funds
regulatory policies for
& Increase Funding
• Intention to setup”NASDAQ” equivalent
foreign-investments a • Intention to setup”NASDAQ” equivalent
foreign-investments a Pool
stoock market in Shenzhen
Pool
risk stoock market in Shenzhen
risk • Many provincial RMB PE funds being
• Many provincial RMB PE funds being
setup
setup
Growing Size and Number of China-domestic RMB Fund Recent successful raising of
China-focused Funds
USD950M-
USD950M-
cosumer-focused
cosumer-focused
fund
fund
USD 11 Billion
USD Billion
USD178M- Mid-
USD178M- Mid-
market fund
market fund
Jan 2009 Version 2.0 by KC Yoon

6. Current Crisis Creating Driving Forces for Private Equity (III)
Conditions for PE Investments in China increasingly favourable
Conditions for PE Investments in China increasingly favourable
China stands-out as “Most Attractive” investment opportunity
China stands-out as “Most Attractive” investment opportunity
Impact of Government
globally with further boost from Govt stimulus of “4 trillion RMB” Impact of Government
globally with further boost from Govt stimulus of “4 trillion RMB”
Stimulus Package
Stimulus Package
being reflected with
being reflected with
Right Financial crisis has domestic consumption
Financial crisis has domestic consumption
Pro-active approach by
Pro-active approach by
seen China impacted
Strategy continuing to grow-
seen China impacted continuing to grow-
Chinese Government through
by negative export Chinese Government through
=3 Investment
by negative export
3 Investment
series of actions- tax-breaks,
growth and danger of series of actions- tax-breaks,
growth and danger of Opportunities in
Opportunities in
policy encouragement ++MOST
slower consumption
Winning policy encouragement MOST
slower consumption
Consumer/Retail
due to uncertainty in Consumer/Retail
IMPORTANT the RMB4 TR
due to uncertainty in IMPORTANT the RMB4 TR
Fund employment
STIMULUS
employment
STIMULUS
Breakdown of Stimulus Package – focus driving Stimulus encouraging consumption
consumption in rural areas
Jan 2009 Version 2.0 by KC Yoon

7. Current Crisis Creating Driving Forces for Private Equity (II)
Conditions for PE Investments in China increasingly favourable
Conditions for PE Investments in China increasingly favourable
Market Condition and Timing “ripe” to find “Fairly-valued”
Market Condition and Timing “ripe” to find “Fairly-valued”
companies; also Opportunities as some sectors face consolidation
companies; also Opportunities as some sectors face consolidation
Fairly Valued &
Fairly Valued &
Right Competitive
Competitive
Poor IPO environment drive
Market was reaching Poor IPO environment drive
Market was reaching Companies will emerge
Strategy companies to be more realistic in Companies will emerge
“Bubble” stage as companies to be more realistic in
“Bubble” stage as
in various market
funding valuations; Market
“Big Funds” were in various market
=4 funding valuations; Market
“Big Funds” were
4 space-
consolidation will see domestic
chasing deals at
space-
consolidation will see domestic
chasing deals at
Winning “competitive” companies become
unreasonably high Creating “Good-Value”
“competitive” companies become
unreasonably high Creating “Good-Value”
market leaders
valuations Investment
market leaders
Fund valuations Investment
IPOs drop-off in 2008..vs growth 2004-2007…
While IPO conditions may return only in
1-2 years, growth of domestic PE may
see increase in strategic M&A i.e. trade
sale opportunities
Jan 2009 Version 2.0 by KC Yoon

8. China “Best Positioned” & Appearing to Weather the storm Well
Carlyle Group is of the view that amongst the Emerging BRIC Economies,
Carlyle Group is of the view that amongst the Emerging BRIC Economies,
China is ‘best positioned” to sustain a high level of economic growth
China is ‘best positioned” to sustain a high level of economic growth
through the crisis
through the crisis
Oct 2008 Mar 2009
Oct 2008 Mar 2009
Right
Strategy
=
Winning
Fund
Financial Times UK
Jan 2009 Version 2.0 by KC Yoon

9. Global Fund Flows are Already Shifting to China- with focus
on Growth Capital + Consumer investments
Asia-funds (investable in China) raised USD 61 Billion , ,71% more than
Asia-funds (investable in China) raised USD 61 Billion 71% more than
2007; China-dedicated Funds Raised USD14.5 Billion in 2008 vs USD 3.9
2007; China-dedicated Funds Raised USD14.5 Billion in 2008 vs USD 3.9
Billion in 2007
Billion in 2007
Results of KMPG Survey of PE
Results of KMPG Survey of PE
Firms plans for China
Firms plans for China
Growth Capital will be primary
Growth Capital will be primary
focus of funds (over 70%)
focus of funds (over 70%)
Focus on consumer, medical,
Focus on consumer, medical,
retail and increasingly on
retail and increasingly on
logistic & distribution
logistic & distribution
Fundraising for the next 12
Fundraising for the next 12
months will be focused on
months will be focused on
smaller funds upto USD50M
smaller funds upto USD50M
IPO still drive exit option (HK
IPO still drive exit option (HK
preferred) but trade sale will
preferred) but trade sale will
likely be aastrong channel as
likely be strong channel as
well
well
Jan 2009 Version 2.0 by KC Yoon

10. China Consumer-Focused Funds Successfully Raised Significant
Sums in 2008
SignificantRMB-denominatd
SignificantRMB-denominatd
funds raised supplanting USD
funds raised supplanting USD
funds for the 1st time
funds for the 1st time
Asia (Including China) emerging
Asia (Including China) emerging
funds continue to be
funds continue to be
successfully raised- increasingly
successfully raised- increasingly
focused on the Chinese
focused on the Chinese
consumer economy
consumer economy
Emerging markets private equity investor Actis has closed its Actis Emerging
Emerging markets private equity investor Actis has closed its Actis Emerging
Markets 3 fund on $2.9bn. Exceeding its original target of $2.5bn.
Markets 3 fund on $2.9bn. Exceeding its original target of $2.5bn.
To date, eight investments have been made from AEM3: a $50m investment for a majority stake in Beijing-based hot pot
chain Xiabu Xiabu; a $103m investment, as part of a consortium, in Chinese company Ambow Education; a $65m
investment, again as part of a consortium, in Chinese company 7 Days Inn Group;
Paul Fletcher, senior partner, Actis, said, 'We are delighted to have assembled such an outstanding group of investors
who continue to recognise the opportunities for private equity investment across the emerging markets, despite the
current economic climate.
‘We believe that underlying economic growth remains resilient in many of the emerging markets. Much of this
Jan 2009 Version 2.0 by KC Yoon
growth can be linked to businesses benefiting from consumer demand and increased investment in domestic
infrastructure and Actis's investment strategy is tailored accordingly.

11. Investments Continue with Increasing Focus on the Consumer &
related Industries/Services
Already close to 50% of deals and investments are related to the Consumer
Already close to 50% of deals and investments are related to the Consumer
Economy..
Economy..
Summary of deals tillQ3 2008
Internet+Media/Ent
Internet+Media/Ent
9 (USD 420M)
9 (USD 420M)
Medical & Healthcare
Medical & Healthcare
4 (USD 270M)
4 (USD 270M)
Consumer Products/Retail
Consumer Products/Retail
2 (USD 680M)
2 (USD 680M)
Services (IT+Logistics)
Services (IT+Logistics)
9 (720M)
9 (720M)
Jan 2009 Version 2.0 by KC Yoon

12. Consumer Trends & Investment Themes
“Top Dealmaker from Sequoia Capital” Mar 2009
“expects more China deals in 2009 for its growth fund as valuations become more reasonable during the
current downturn. More than one third of its two China funds -- Sequoia Capital China II and Sequoia
China Growth I, both launched in May 2007 -- have been invested, Neil Shen, Sequoia Capital China
founding partner, told the Reuters Private Equity and Hedge Funds Summit. Its first $250 million
(171.5 million pounds) China fund launched in 2005 was fully invested before Sequoia Capital China
launched the other two funds in 2007. Currently, Sequoia Capital China has about 50 portfolio
companies, said Shen.
quot;I think things will be better in the next 12 months and I do believe valuation is getting more and more
reasonable so probably the next 12 months should be a very interesting period for us to find growth
opportunities,quot; Shen told the Reuters Summit.
He also noted that Sequoia Capital China will focus on consumer-driven sectors this year share in the
growth of domestic consumption with Beijing's policy support
Jan 2009 Version 2.0 by KC Yoon
PROPRIETARY & CONFIDENTIAL

13. Macro-Factors Driving China’s Future Consumer Economy
Over 110 high-
consumer potential
3
cities with 34% of
GDP
IKEA continue to open 2
IKEA continue to open 2
stores/year
stores/year
Demand for Housing- Sunning plans 500sqm
Demand for Housing-
By 2015, >300M Sunning plans 500sqm
related products and stores in the rural areas
related products and
lower-middle stores in the rural areas
Growth of Chinese
Growth of Chinese targetting for 3000
services
class; 100M targetting for 3000
services
Middle-Class
luxury
Middle-Class
consumers Preident 7-11 to open3-7
Demand for lifestyle & Preident 7-11 to open3-7
Demand for lifestyle & stores in Shanghai plans
stores in Shanghai plans
convenient services
convenient services for 300 stores in 3yrs
for 300 stores in 3yrs
> 200 Cities China Chain Nepstar
China Chain Nepstar
Urbanization and Demand for better
with >1M drugstar opem/acquire 700
Urbanization and Demand for better drugstar opem/acquire 700
residents healthcare stores 2008, plans 3000
healthcare
Growth of Cities stores 2008, plans 3000
Growth of Cities
Sunning plans aa B2C site
Sunning plans B2C site
Growth of B2C
Growth of B2C
NOW >300M
Growth and Impact
users; >RMB Korea SKTelecom to invest
Growth and Impact Korea SKTelecom to invest
Most widespread
120B online RMB500M in qingxuan its
Most widespread RMB500M in qingxuan its
of the Internet
of the Internet
consumer B2C site
media- access middle- B2C site
media- access middle-
sales class consumers
class consumers
Letao to open largest
Letao to open largest
Jan 2009 Version 2.0 by KC Yoon Retailers online toy store in China
online toy store in China
continue to
expand network

14. Key Consumer Trends with Investment Potential
Criteria for Strong
+ Investment
3 1 Potential
Affordable Luxury
Affordable Luxury Large Market
for the Young Large Market
for the Young
Affluent
Growth of Chinese Affluent
Growth of Chinese
“Mass Market” +
Middle-Class “Mass Market” +
Middle-Class “Good Enough”
“Good Enough”
Products
Products High Growth
High Growth
Urbanization and
Urbanization and “City-Living”
“City-Living”
Growth of Cities Consumer Services
Growth of Cities Consumer Services
Able to
Able to
Online Consumer
Online Consumer Sustain Good
Sustain Good
Brands
Growth and Impact Brands
Growth and Impact Margins
Margins
of the Internet
of the Internet
“Knowledge”
“Knowledge”
Services
Services
Defensible
Defensible
Govt Stimulus
Govt Stimulus Niche
“Health”+ “Well- Niche
“Health”+ “Well-
being” Services
being” Services +“GREEN”
+“GREEN”
- -Increasingly
Increasingly
important
Jan 2009 Version 2.0 by KC Yoon important
Global trend
Global trend

15. Investment Theme 1 : Emerging Luxury Brands + Inner City Retail & Services
+ Direct-to-Consumer Services (I)
Niche “Luxury” Brands Retail Chains in Inner Cities
Niche “Luxury” Brands Retail Chains in Inner Cities
Right
Strategy
Retail chains in 2nd/3rd tier
= Retail chains in 2nd/3rd tier
cities where growth potential is
cities where growth potential is
Winning high and also target for M&A by
high and also target for M&A by
Fund larger players
larger players
Emerging “luxury” brands in jewellery,
Emerging “luxury” brands in jewellery,
cosmetics & ladies accessories (eg.
cosmetics & ladies accessories (eg.
Affordable “Luxury” + “Mass
Unique hairpin retail combined with Affordable “Luxury” + “Mass
Unique hairpin retail combined with
strong service element) Market”
strong service element) Market”
“Quick Fashion”-Success of
“Quick Fashion”-Success of
ZARA shows ready market
ZARA shows ready market
for “affordable” luxury
for “affordable” luxury
targetted at the mass market;
targetted at the mass market;
Jewellry Retail valued at USD15 Zara’s China sales continue to
Jewellry Retail valued at USD15 Zara’s China sales continue to
Billion and is fragmented grow; H&M maintain plans to opne
Billion and is fragmented grow; H&M maintain plans to opne
55outlets
Jan 2009 Version 2.0 by KC Yoon outlets

16. Investment Theme 1 : Emerging Luxury Brands + Inner City Retail & Services
+ Direct-to-Consumer Services (II)
Online Consumer/Ecommerce
Online Consumer/Ecommerce
Services
Services
• C2C Business - Both Alibaba and Baidu have
recently announced significant investments to
grow their C2C ecommerce businesses..
More Chinese are using the internet as a
source for ordering goods and services.
Research institute Data Centre of China
• Online apparel market already reached over Internet, said in a report that China’s
USD2 Billion – Leading players VANCL and PPG Internet users spent 256.1 billion yuan
both received funding from investors being niche (37.5 billion dollars) in the first six months
online players and are able to compete effectively in of the year, up 58.2 percent from the same
the market.. period in 2007…led by a younger
generation that is willing to buy on credit
and shop online .
Nikkei reported that around 100 Japanese companies are planning
Nikkei reported that around 100 Japanese companies are planning
to participate in an online shopping mall to be set up on the Chinese
to participate in an online shopping mall to be set up on the Chinese
“Online ecommerce and
web next month. The mall will be the biggest of its kind in China,
“Online ecommerce and
web next month. The mall will be the biggest of its kind in China,
with initially 20,000 different Japanese products listed, targeting 1st other services will continue
with initially 20,000 different Japanese products listed, targeting 1st other services will continue
year sales of $45 million… to grow as China becomes
year sales of $45 million… to grow as China becomes
leading interent nation”
Jan 2009 Version 2.0 by KC Yoon leading interent nation”

17. Investment Theme 2 : Branded Niche Consumer Products + Supporting
Services in Evolving Retail Value Chain (I)
Leading Niche Domestic Brands
Leading Niche Domestic Brands
with Strengths in “Mass Market”
with Strengths in “Mass Market”
Major retailers like Hypermarkets
Major retailers like Hypermarkets
offer channels to quickly help
offer channels to quickly help
domestic products build brand and
domestic products build brand and
reach aawider market
reach wider market
“GREEN” Consumer Products
“GREEN” Consumer Products
Following global trend to be
Following global trend to be
Leading domestic niche consumer brands-
“GREEN”- combining consumer
“GREEN”- combining consumer
wine, cosmetics, skincare,confectionary,
desire to buy product with “GREEN”
chocolate-( eg. Daobao SOD recently desire to buy product with “GREEN”
theme…example “Organic clothing
acquired by P&G for USD300M) theme…example “Organic clothing
made from bamboo”
made from bamboo”
Jan 2009 Version 2.0 by KC Yoon

18. Investment Theme 2 : Branded Niche Consumer Products + Supporting
Services in Evolving Retail Value Chain (II)
Supporting Services & Channels
Supporting Services & Channels As major retailers outsource
As major retailers outsource
support services, potentially
support services, potentially
will see growth of logistics,
will see growth of logistics,
warehousing, distribution
warehousing, distribution
services;
services;
Recent crisis will see
further “Outsourcing” of
support services to lower
cost and leverage on scale
As manufacturers search for
As manufacturers search for
retail channels will drive
retail channels will drive
growth of new channelseg.
growth of new channelseg.
Teleshopping, shopping
Teleshopping, shopping
malls ++management
malls management
services
services
Jan 2009 Version 2.0 by KC Yoon

19. Investment Theme 3 : Education Services & Healthcare (I)
Tremendous growth opportunity in China’s education sector as
Tremendous growth opportunity in China’s education sector as
Education Services
Education Services household disposal income increases..still significantly below
household disposal income increases..still significantly below
HK/Taiwan..Online Education also represents new opportunities
HK/Taiwan..Online Education also represents new opportunities
4 For Strong Profit Potential Segments
Profitable and high growth segments in K12,
Profitable and high growth segments in K12,
English Education & Adult Education (IT&
Version 2.0Education & Adult Education (IT&
English by KC Yoon
Jan 2009 Vocational Training)
Vocational Training)

20. Investment Theme 3 : Education Services & Healthcare (II)
Leverging on the Chinese
Medical Products & Healthcare
Medical Products & Healthcare Govt’s recent stimulus
Services
Services focusing on improving the
social welfare system in
education & healthcare
Medical Products & Devices
Medical Products & Devices
•China has the potential to be the largest
•China has the potential to be the largest
single country export markets for the U.S.
single country export markets for the U.S.
medical device exporters.
medical device exporters.
•Currently China is the second largest
•Currently China is the second largest
medical device market in Asia.
medical device market in Asia.
•China’s has one of the world’s fastest
•China’s has one of the world’s fastest
growing medical device markets (10-15%) Medical Services Chain & Hospitals
growing medical device markets (10-15%) Medical Services Chain & Hospitals
per year.
per year. ••As the Govt tries to reach rural China with
As the Govt tries to reach rural China with
better healthcare- opportunity to invest in
better healthcare- opportunity to invest in
medical/pharma retail chains; also in major
medical/pharma retail chains; also in major
cities specialist medical service chains
cities specialist medical service chains
-- Total healthcare spending in China is expected to grow at aaCAGR of 11% between 2007 and 2012;
-- Total healthcare spending in China is expected to grow at CAGR of 11% between 2007 and 2012;
-- Around 118 Million people are expected to be above 65 years of age in China by 2012, thereby
-- Around 118 Million people are expected to be above 65 years of age in China by 2012, thereby
increasing the prevalence of several chronic diseases;
increasing the prevalence of several chronic diseases;
-- Middle class projected to have 160 Million people by 2012, reflecting aahigher spending on
-- Middle class projected to have 160 Million people by 2012, reflecting higher spending on
healthcare and opportunities for healthcare companies;
healthcare and opportunities for healthcare companies;
Jan 2009 Version 2.0 by KC Yoon

21. Recent Transactions in the Consumer-related Sector
(from 2H 2008 onwards)
Investor
Fund Value
Company Remarks
19.99% stake in Little Sheep Hotpot Chain
Little SheepHotpot YUM $60
Deal Size
(USD M) High-
High-end Ladies fashion house withnover 280
$20
Ellassay Carlyle
retail outlets
Wowo Convenience stores RC Capita $10 Convenience Chain Store in Szechuan
fast-
2008 Top ten fast-food chain in China. Revenues
Best Roast Chicken Shenzhen NA
over RMB 680M
Venture
60 stores across Bejing, Shanghai,
Chamate Tea House $23
Oak Hangzhou,Nanjing
Acquisition of hypermarket chain
RMB40M
Jiaguang Mart Co. Carrefour
Acquisition of supermarket chain
Xi'an Aijia Commerce Co China RMB600M
Resources
Raised RMB1.38B Casual wear apparel chain with over 2000 stores
Metersbowen IPO
and overseas outlets
Well-
Well-known nation-wide hotpot chain invested by
nation-
Little Lamb Hotpot IPO Raised
3i
HKD780M
Raised HKD2.55B Leading supermart in Fujian province
IPO
Yonghui

22. Other Significant Features of China PE Transactions in 2009
SGX-listed Chinese Game Equipment
SGX-listed Chinese Game Equipment
Manufacturer saw its share price
Manufacturer saw its share price
plunge over 95% from IPO price in
plunge over 95% from IPO price in
Following the financial crisis, 20050 seeking PIPI for MBO and
Following the financial crisis, 20050 seeking PIPI for MBO and
valuations of Chinese subsequent re-listing in another
valuations of Chinese
Increasing subsequent re-listing in another
Increasing companies listed in some exchange
companies listed in some exchange
number of PIPE exchanges have fallen
number of PIPE exchanges have fallen
significantly below fair
Deals significantly below fair
Deals valuations SGX-listed Lady shoe market leader
valuations SGX-listed Lady shoe market leader
has seen valuation fall to USD20M
has seen valuation fall to USD20M
when its 2008 sales improved to over
when its 2008 sales improved to over
USD300M
USD300M
With the unfavorable
With the unfavorable
environment for IPOs,
environment for IPOs,
RTO Chinese companies seeking
RTO Chinese companies seeking Preident 7-11 to open3-7 stores in
funding or re-listing ae Preident 7-11 to open3-7 stores in
Deals funding or re-listing ae
Deals Shanghai plans for 300 stores in
increasingly using the RTO Shanghai plans for 300 stores in
increasingly using the RTO 3yrs
route0 typically into the US 3yrs
route0 typically into the US
Large foreign retailers with cash and
As some sector will fac Large foreign retailers with cash and
As some sector will fac wishing to now penetrate into the
consolidation, domestic wishing to now penetrate into the
Exits through consolidation, domestic inner city rural markets are beginning
Exits through inner city rural markets are beginning
M&A may be aaviable
M&A may be viable to buy-out provincial /city retial
Trade Sale to buy-out provincial /city retial
alternative exit oath for
Trade Sale alternative exit oath for chains ––Walmart. China Nepstar
chains Walmart. China Nepstar
investments
investments pharma, etc
pharma, etc
Jan 2009 Version 2.0 by KC Yoon

23. Conclusion
“David Rubenstein, CoFounder Carlyle Group” Oct 2008
Jan 2009 Version 2.0 by KC Yoon
PROPRIETARY & CONFIDENTIAL