Support document of the presentation done at French Chamber of Commerce of Singapore on "Delivering deal value in East Asia"

1. Delivering deal value in East Asia
4 May 2011
Finance Committee @ FCCS
This presentation was made during an event at the French Chamber of
Commerce of Singapore and the following slides are not fully
representative of what was presented.

2. Introduction
Which geographic region do you expect Asia Pacific cross-
border acquirers to agressively target over the next 18 months?
50%
ondant 45%
40%
35%
30%
% of respo
25%
20%
15%
10%
5%
0%
Key success factors: - Business rationale
- Price
- Integration
Source: “Asia on the buy-side: the key to success” by Merger Market
1

3. Delivering deal value along the deal process
Signing Closing
Integration/merger preparation
2

4. Perform operational due diligence to assess the value post deal and
give the right price
• Identify synergies AND di-synergies Fixed assets & Total
• Assess one-off costs Property synergies
• Timing Head Office
Working
P&L capital
&
Tax y g
synergies
Overheads
IT
Marketing and
promotion
Supply
chain
Labour
COGS
Revenue
3

5. Integration process
Closing
PHASE 1 PHASE 2 PHASE 3
Day-one preparation 100-day plan
Design & project Long-term
Detailed Integration Planning
set-up implementation
4

6. Phase 1: Prepare the integration of a target in Asia
• Integration principles
• Assess gaps with target
Compete
p Collaboration
• Prioritize 3% 10%
Assertiveness
30% 30%
Compromise
• Key HR 27%
17%
Avoid Accommodate
• Train on integration program 40% 30%
10% 3%
• Prepare TSA/SLA/LTA Concerns with others
• Develop 100-day action plan
• Day one preparation
Day-one
5

7. Phase 2: Take control
Work load
Emotions
• Gain control Excitement
• Q i k i
Quick-wins Commitment
Frustration
Engagement
• 100-day
Disillusionment
• Future operating model Exploration
Low point
• Implementation project
100 Days
6

8. Phase 3: Deliver the value
Steering Committee
Programme
• Implement, track and monitor integration Integration
Office
p
plan and value capture initiatives
p Director
• Management dashboards (weekly, monthly, 1. Commercial
quarterly) 2. Operations
3. Purchasing
3 P h i
• Human capital settled 4. Property
5. Finance & IT
• Transform to new operating model
p g 6 . HR
Benefits Tracking
Programme Management
7

9. Best practices in the region
• Outings (meals, drinks & KTV)
• Family business
• Language
• Come as a service provider (low integration level)
C ea e i e ide (l i te ati le el)
Culture
C lt
• Long term incentives
• Contracts in Bahasa
• Turnover rate • Social media
• Cash HR IT • Emails
• Understand stakeholders’ • Provide shared
needs services
• Involve family
y
Maturity
• Listen
• Relation with public authority by locals
• Have local representatives to talk on your behalf
• Representations
• Accuracy of financials
8

10. Contact
Ludovic Sichere
Associate Director, Transaction Services, KPMG Singapore
+ 65 9456 4821
ludovicsichere@hotmail.com
ludovicsichere@hotmail com
lsichere@kpmg.com.sg
Group on
Operation d diligence &
O i due dili
post deal services
9