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

Leaders in IPO

Communications

Financial communications in Greater China and Singapore

15 July 2014

Leonid Fink and Uhi Hui

2

We are…

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

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

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

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

Fundraising Case – Team Experience

The First Institutionalized Angel Investment Forum in China 2012

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

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

Challenges in building

profile of Russian

companies in Greater China

and Singapore

11

Deng Xiaoping

Qian Qichen

Li Peng Jiang Zhemin

Li Lanqing

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

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

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

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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

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

Asian INVESTORS

Pragmatic

Welcome Opportunities

Quick / High Return

Business Oriented

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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

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• GENERATE AWARENESS • BUILD UP VISIBILITY • CREATE UNDERSTANDING

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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

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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

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 Ensi Xu Xiaoming

Netease

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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

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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

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

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

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

Financial Daily Newspapers

Online Financial Media

Financial TV

General Media

Media Landscape – Hong Kong (cont’)

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

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Financial TV

News Agency

Financial Daily Newspapers

Business Magazine

Top 3 General Daily Newspapers Media Landscape – Singapore

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

SE Asia will be investing

in the Modern Russia!

33

Fund Raising

B2B Matching Online Interactive

Media

Crisis and Issue

Management

Speaking

Opportunities

Media Relations

Investor Roadshow

Government

Relations

Expert

Consultation

Channels to Attract Potential Investment

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