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1 Fosun International 2011 Annual Result Presentation April 2012

1 Fosun International 2011 Annual Result Presentation April 2012

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Page 1: 1 Fosun International 2011 Annual Result Presentation April 2012

1

Fosun International2011 Annual Result Presentation

April 2012

Page 2: 1 Fosun International 2011 Annual Result Presentation April 2012

This presentation and the presentation materials distributed herewith include forward-

looking statements. All statements, other than statements of historical facts, that

address activities, events or developments that Fosun International Limited (the

“Company”) expects or anticipates will or may occur in the future (including but not

limited to projections, targets, estimates and business plans) are forward-looking

statements. The Company’s actual results or developments may differ materially from

those indicated by these forward-looking statements as a result of various factors and

uncertainties, and other risks and factors beyond our control. In addition, the Company

makes the forward-looking statements referred to herein as of today and undertakes no

obligation to update these statements. The exchange rates used in this PPT are as of

2011/12/31 (USD/CNY=6.30090 EUR/CNY=8.16250 HKD/CNY=0.81070), unless

otherwise stated.

Disclaimer

2

Page 3: 1 Fosun International 2011 Annual Result Presentation April 2012

Content

Fosun Overview

Three Growth Engines

Competitive Advantages

Future Growth Drivers

2011 Financial Review

Appendix

3

Page 4: 1 Fosun International 2011 Annual Result Presentation April 2012

4

Fosun Overview

Chapter I

Page 5: 1 Fosun International 2011 Annual Result Presentation April 2012

2004 2005 2006 2007 2008 2009 2010 20110.0

10.0

20.0

30.0

40.0

50.0

1.46 2.83 3.98

19.83 19.87 24.48

29.87 31.83

9.18 9.47 13.08

27.12

18.73

36.09 41.94

35.02

Year-end NPV Year-end BV

Fosun Int’l 2011 Performance Highlights

As of 2011/12/31, the book value (BV) of Fosun Int’l grew for the 7th consecutive year to RMB 31.83 bn, representing a 7-year CAGR of 55.3%

As of 2011/12/31, the Net Portfolio Value (NPV) of Fosun Int’l reached RMB 35.02 bn, representing a 7-year CAGR of 21.1%

As of 2011/12/31, Fosun and its subsidiaries accomplished 20 initial public offerings for the group itself and various investees, with 7 completed in 2011

5

7-yr NPV CAGR =21.1%

7-yr BV CAGR =55.3%

RMB Bn

Note:1. NPV=attributable market cap of listed asset at the Group level + book value of unlisted subsidiaries & associates at the

Group level + cost of other investments at the Group level - net debt at the Group level

Page 6: 1 Fosun International 2011 Annual Result Presentation April 2012

Increase shareholder

value Discover ValueCreate

Value

Realize Value

A Business Model with Fosun Characteristics

Our vision: to become a world premium investment group with a focus on China’s growth momentum

Optimize management efficiency via appointment board members• Design strategy• Recommend key executives• Set effective remuneration package• Control risk• Make key investment decisions

Create added value by sharing resources and knowledge• HR synergies

• China’s domestic consumption market, the 3rd largest in the world, continues to grow rapidly• Importance of Chinese market to MNEs grows• More domestically focused Chinese companies are

becoming the world’s top business leaders• China is becoming one of the world’s most important

capital markets• The demand to upgrade Chinese manufacturing

capacity grows rapidly

Industrial Opportunities:

Other investments (strategic and private equity portfolio) :• Decent returns are generated by appropriate exit while capital efficiency being

increased through recycling

• To lay a solid foundation for future potential acquisition in respective industries, leveraging knowledge and experience accumulated through strategic investments

For oversea investees: help to implement their China strategy by providing networks, platforms and resources

Create added value for investees as an active shareholder

Continue to increase long-term shareholder valueLong-term investments (industrial portfolio) :• The increase of investees’ enterprise value helps to boost

shareholder value of Fosun

• Dividends from investees provide the group with additional capital for new investments

Capitalized on China growth momentum via value-oriented investments Macro Environment :

• Brand building

Investment Strategy:• Combine China momentum with global resources

• Consumption upgrade• Resource & Energy

• Sales promotion• Anti-counterfeit assistance

• Capital market access, etc

Tactic Focus:• 3-5 years: undervalued oversea enterprises with future growth mainly from China

• Financial services• Manufacturing upgrade

• Long -term: domestic players with global leader potential 6

Page 7: 1 Fosun International 2011 Annual Result Presentation April 2012

Industrial Operation

Other Investments

• Fosun Pharma

• Forte

• NISCO

• Hainan Mining

•Yuyuan

•Focus Media

•Club Med

•Folli Follie

Asset Management

• Fosun Capital

• Fosun Chuanghong

• Carlyle-Fosun

• Pramerica-Fosun China Opportunity Fund

• Star Capital

• Forte fund series & others

Insurance

• Pramerica-Fosun life insurance (planning)

• Yong’An P&C insurance

7

Our mid-term goal: to build an excellent asset management business with a strengthened industrial foundationOur long-term goal: to establish a premium investment group with insurance as a core business line

A Business Model with Fosun Characteristics

Page 8: 1 Fosun International 2011 Annual Result Presentation April 2012

8

Chapter II

Three Growth Engines

Shareholder Value Industrial

ProfitsInvestment Income

Asset Mgmt Income

Page 9: 1 Fosun International 2011 Annual Result Presentation April 2012

2004 2005 2006 2007 2008 2009 2010 20110

1,000

2,000

3,000

4,000

5,000

595 594 459

2,404

1,337

2,368 2,699

3,169

Industrial Profits7-year CAGR=27.0%

Despite of the pressure imposed by various macro control measures and economic cycles in the past 8 years, our combined profits from industrial operations delivered rapid growth as a result of the Group’s continuous efforts in asset allocation improvement and the improvement of each operating unit’s competitive strength;

Industrial profit of 2011 reached RMB 3.17 bn, representing a y-o-y increase of 18.9% and a 7-yr CAGR of 27.0%

Fosun Pharma48.1%(2)

Forte99.0%(2)

NISCO(1)

50.3%(2)Hainan Mining

60.0%(2)Inter-segment

Elimination560.4 1,617.6 204.3 661.9 124.8

2011 Industrial Profits Breakdown (RMB Mn)

9Notes : 1. Including profits attributable to the parent by Jin’An Mining, a fully owned subsidiary of NISCO;2. Attributable stakes held by Fosun Int’l as of 2011/12/31

RMB Mn

Growth engine I:Industrial profits continued to grow at a rapid pace

Page 10: 1 Fosun International 2011 Annual Result Presentation April 2012

2011 Investment Income Breakdown (RMB Mn)

Fair value of Fosun’s investment portfolio declined in 2011, as a result of the global stock market volatilityInvestment income of 2011 reached RMB 1.38 bn, representing a y-o-y decrease of 32.0% and a 7 year CAGR of 7.4%

2004 2005 2006 2007 2008 2009 2010 20110

1,000

2,000

3,000

4,000

5,000

6,000

840 325

1,245 884

290

2,510 2,033

1,383

Share of profits before tax of key associates

Profit on disposal of stocks

Fair value gain on stocks affecting P&L

Other gains relate to minority investments

451.7 1,029.4 -740.8 642.6

2004-2006

2005-2007

2006-2008

2007-2009

2008-2010

2009-2011

0

2,000

4,000

6,000

8,000

10,000

2,410 2,453 2,418

3,684

4,833

5,926

Investment income by year7-year CAGR=7.4%

RMB Mn

Investment income over rolling three –year periods

RMB Mn

10

Growth engine II:Sustainable investment income on a sizable scale

CAGR based on three-year rolling earnings since 2004=19.7%

Page 11: 1 Fosun International 2011 Annual Result Presentation April 2012

In 2011, we invested in 16 new strategic and PE investments at the group level, amounting to a total cost of RMB 5.25 bn (1)

In 2011, we helped 7 investees to be listed, increased the equity value of shareholders of Fosun by RMB 2.28 bn

11

In 2011, total investments in pre-IPO and post-IPO by subsidiaries amounted to RMB 1.32 bn

Note:1. Includes additional capital injections to existing projects

2011 strategic and PE investments at the group level

Cash inflows(million RMB)

Dividends received 515

Proceeds on disposal of listed pre-IPOs 827

Proceeds on disposal of Post-IPOs 2,569

Subtotal 3,911

Dividends received from subsidiaries in 2011 604

Total 4,515

2011 strategic and PE investments at the group level

Category New projects

Existing projects

Total Amount(million RMB)

Direct investments

Pre-IPOs 10 5 1,119

Post-IPOs 6 4 3,111

Subtotal 16 9 4,230

Indirect investments( as GP commitments ) 1,016

Total 5,246

Growth engine II (Cont):Sustainable investment income on a sizable scale

Page 12: 1 Fosun International 2011 Annual Result Presentation April 2012

As of 2011/12/31, Fosun asset management business raised a total committed capital of RMB 13.3 bn , among which RMB 2.7 bn were from Fosun Group. In 2011, the asset management business booked a net income of RMB 121 mnIn 2011, Fosun’s asset management platform invested a total of RMB 5.16 bn in 15 projectsThe Carlyle-Fosun JV became one of the first funds to receive QFLP qualification in China; Prudential Financial invested USD 500 mn in Fosun China Opportunity Fund and became Fosun’s first international LP Participating for the first time,, Fosun asset management business ranked #8 among the top 30 PE institutions in China in 2011 (1)

Fosun’s Asset Management Platform as of 31 December 2011

Fosun Asset Mgmt Platform

Star CapitalRMB 3.6 bn

Fosun CapitalRMB 1.5 bn

Fosun ChuanghongRMB 1.5 bn

Carlyle-FosunUSD 100 mn

Pramerica-Fosun China

Opportunity Fund

USD 600 mn

Forte real estate funds & others

RMB 2.2bn

12

Growth engine III:Asset mgmt business made a successful debut

Property fund RMB fund QFLP fund USD fund

Note:1. Awarded by Zero2IPO Group

Page 13: 1 Fosun International 2011 Annual Result Presentation April 2012

13

Competitive Advantages

Chapter III

Page 14: 1 Fosun International 2011 Annual Result Presentation April 2012

Fosun founders and other key senior executives have worked together for over 17 years. They jointly hold 79.46% stake in Fosun Int’l, making their interests fully aligned with that of the public shareholders.

2003: Acquired Nanjing Steel United (NSU)(3) ( IRR:26% )

2010: Invested in Club Med

2007: Acquired Hainan Mining ( IRR:60% ) 2011:Invested in Folli Follie

Founded Fosun Pharma( IRR:41% ) in 1994 and Forte ( IRR:45% ) in 1998

2002: Invested in Yuyuan ( IRR:25% ) and Jianlong group ( IRR:27% )

2004: Invested in Zhaojin Mining ( IRR:49% )

2008: invested in Focus Media ( IRR:51% )

1992: Launched Fosun with RMB 38,000

2011 : Fosun’s BV increased to a total of rmb 31.8 bn

14

Notes: 1. As of 2011/12/312. All IRRs are calculated based upon either book value as of 2011/12/31 for unlisted assets or attributable market cap as of 2011/12/31 for listed assets 3. In 2010, NSU’s steel-related assets were fully listed by asset injection to NISCO, a listed subsidiary of NSU. As of 2011/12/31, Fosun held 50.3%

attributable stake of NISCO (600282.SH)

Name Ages Position Years in FosunGUO,Guangchang 45 Chairman , Executive Director 20

LIANG,Xinjun 44 Vice Chairman , Executive Director , CEO 20WANG,Qunbing 43 Executive Director , President 19

FAN,Wei 43 Executive Director , associate Co-president 19DING,Guoqi 43 Executive Director , Senior VP , CFO 17

WU,Ping 48 Executive Director , Senior VP 17QIN,Xuetang 49 Executive Director , Senior VP 17

Advantage I: a core management team of an enduring partnership with proven track records

Under the direct leadership of Fosun’s founders and senior executives, Fosun is endeavored to build a world premium investment group (2)

Page 15: 1 Fosun International 2011 Annual Result Presentation April 2012

15

Advantage II : 20 years of accumulated resources fostered a headquarter with value creation capacity

Fosun’s headquarter is not only an investment vehicle focusing on returns, but also creates added value for investees by improving management efficiency, as well as resource sharing.

Strategic guidanceTalent mining

Fosun and our Investees

Value creation via management improvement

Industrial synergies

Channels and networks

Media resources

“One Fosun “ Platform

Bank relations

Government supports

Business networks

Investment decision makingSupports in key initiatives

Flow engineering

Fosun Investment Consulting Committee: comprised of ten overseas or domestic business leaders in industries such as insurance, retail, TMT, manufacturing, etc.

Value creation via knowledge transfer and segment synergies

External

Resources

Excellent Partners

Value creation

via sharing

of resourc

es

value creation

via developing win-win partnersh

ips

Page 16: 1 Fosun International 2011 Annual Result Presentation April 2012

Advantage III: combine China momentum with global resources, a strategy tailored to Fosun’s unique strength

Global CapacityMaximize

Investment Value

Club Med( France)Folli Follie( Greek)

Prudential Financial( US)Carlyle Group( US)

16

China Expert

Business activities covering over 28 provinces in mainland China Nearly 89,000 employments were created across major businesses

Fosun’s Strength:We are Chinese expert with profound local knowledge, resources and networks;we also have built global capacity, empowered by our international platforms and world premium partnerships

Investment Strategy:To combine China’s growth momentum with global resources

Business Model:To help foreign businesses grow in China, thereby enhancing their global performanceTo help local businesses establish a global vision and a capability of integrating global resources

Page 17: 1 Fosun International 2011 Annual Result Presentation April 2012

May 2011 Investment Time

13.4%(1) / €106m Stake 9.72% / €44m

One board seat Board Seats Tow board seats

Expanded distribution channel, developed business in corporate

gifts, helped brand promotionFosun’s value

creation

Attracted more Chinese tourists to visit global sites; explorer

new projects in China

Folli Follie

June 2010

Club Med

• In 2011, revenue increased by 3.2%; net profit increased by 7.5%

• The number of shops in China increased significantly

• Revenue in 2010 on par with 2009; in 2011 it increased by 5.2%• In 2011, net profit turned to positive from previous loss• Businesses from China increased by 40%

2010 20110

20406080

100 83.3 89.5Net profit

2009 2010 2011

-60-50-40-30-20-10

010

-53

-14

2Net profit

Case studies: Folli Follie and Club Med

( Euro Mn ) ( Euro Mn )

17

Upgrade consumption company at a fair valuationInternational market leaderEntrepreneurial mgmt team with clear China strategy

Performance

Notes:1. As of 2011/10/19

Page 18: 1 Fosun International 2011 Annual Result Presentation April 2012

18

Future Growth Drivers

Chapter IV

Page 19: 1 Fosun International 2011 Annual Result Presentation April 2012

Driver I: growing industrial operations

Fosun Pharma

• Developed underground mining projects; fully exploit small occurrences; newly-built smelters commenced operation generating more output in end product of iron ore

• Improves the technique in cobalt copper ore mining, dressing and refining to stimulate increases in profit

• Promote M&A of iron ore projects• 2012 output guidance: 3.8 million tonnes

• Accelerate acquisition activities for both overseas and domestic pharmaceutical R&D peers

• Strengthen core competitiveness in R&D, marketing and manufacturing

• Help Sinopharm with its integration process in pharmaceutical distribution

• Continue to seek opportunities in medical service area

Forte

NISCO Hainan Mining

To fortify industrial foundations and improve profitability in an environment of both challenges and opportunities, core subsidiaries will strive to grow both organically and via M&As, as they continue to optimize product mix, increase efficiency and strengthen financial position.

19

• Accelerate turnovers and the launch of new projects • Reasonable pricing and positioning• Reasonably expand quality land bank reserve in a

weak industrial cycle• Nation-wide business development • Ever-growing size of completed projects for delivery• Attributable contract sales in 2012 expected to be

930,000 sq. m.

• Strengthened core competitiveness in existing products and strive for a breakthrough in developing a series of key following-up products like steel products for specific purposes, etc.

• Promoted marketing for products with high mark-ups• Propelled technology innovation: ultra-fine grain steel,

corrosion resisting steel, water-cooled mold and super-thick steel plate blank, etc., to further establish competitive advantages in following-up products.

• Production based on sales to keep inventory low• 2012 output guidance: 7 million tonnes

Page 20: 1 Fosun International 2011 Annual Result Presentation April 2012

Driver II: more income streams emerging as investments maturing

Notes :1. As of 2011/12/312. Including post-IPO projects3. Portfolio value is calculated based on attributable market cap for listed investees and book value for unlisted investees.

20

2007 2008 2009 2010 20110

5,000

10,000

15,000

20,000

25,000

1,6903,290

4,487

8,256

12,742

Strategic and PE investments ( 2 )

(RMB Mn)

累计分红 + 退出( 3 )

15,449

245

8,813

723

5,907

1,770

11,667

3,785

16,833

7,674

The scale of investments gradually builds up. As more projects approaching a mature stage, we are entering a phase that would allow us to have access to more earning streams

pre-IPO projects that have been listed successfully achieved an average IRR of 58.8%(1)

Accumulated investment cost Year-end portfolio value(1) Accumulated dividends received and proceeds from divestments

Page 21: 1 Fosun International 2011 Annual Result Presentation April 2012

21

Driver III: Asset management, a fast-growing business

13.3 bn

>100 bn

Current

Future

• To build win-win partnerships with more quality LPs: We generally focus on large financial and corporate institutions that can provide us access to long-term capitals. For overseas LPs , we would focus on pension funds, sovereign wealth, university endowments, family office, etc. In China, we strive to develop more institutions, large companies and HNW individuals as our future LPs.

• Products in pipeline: China Momentum Fund (USD), Fosun Wealth PE series funds, Shangluwen Fund (fund for retail, travel and culture), Energy Fund, Star Capital II, Forte series funds, etc.

• Fosun will continue to invest in the funds we initiate, as GP commitments

• Asset management: a key business segment of future focus

• Help to utilize Fosun investment capacity without over-leveraging the group’s own financial position

• Help to improve returns on equity

Page 22: 1 Fosun International 2011 Annual Result Presentation April 2012

A strong insurance segment generating floats, a form of long-term quality capital

Yong’An P&C Insurance

Pramerica-Fosun Life Insurance (in a preparatory stage)

Other opportunities(eg: Reinsurance)

Driver IV: insurance, a future business segment with vast potential

Yong An Insurance: revenue in 2011 reached RMB 6,545mn, total assets amounted to RMB 10,032mn, 12.9% and 19.0% higher than that of 2010, respectively.

The establishment of Pramerica-Fosun Life Insurance as the first insurance joint venture company between the private and foreign capital has been approved by CIRC.

We continue to explore investment opportunities in other insurances businesses such as reinsurance

22

Page 23: 1 Fosun International 2011 Annual Result Presentation April 2012

23

2011 Financial Review

Chapter V

Page 24: 1 Fosun International 2011 Annual Result Presentation April 2012

2011 Financial Overview

RMB (in million) 2011 2010 Y-O-Y

Revenue 56,816.2 44,643.7 27.3%

Gross profit 10,566.3 9,366.5 12.8%

Net profit attributable to shareholders 3,403.6 4,227.1 -19.5%

EBITDA 11,460.5 12,014.5 -4.6%

2011 2010

EPS 0.53 RMB/ 0.65 HKD 0.66 RMB / 0.81 HKD

BV per share 4.96 RMB / 6.12 HKD 4.65 RMB / 5.74 HKD

Dividend per share 0.157 HKD 0.17 HKD

24

Page 25: 1 Fosun International 2011 Annual Result Presentation April 2012

Net Profit by Segment

25Notes:1. Segment results for 2010 were re-stated for comparison purpose, as asset management income being listed as a stand-alone segment2. Adjusted by management to reflect real financial strength of GPs, before any consolidation adjustments

RMB (in million) 2011 2010(1) YOY

Pharmaceuticals & Healthcare 560.3 302.5 85.2%

Property 1,619.3 1,271.8 27.3%

Steel 34.3 410.0 -91.6%

Mining 1,119.8 932.1 20.1%

Retail, Services, Finance and Other Investment 1,086.8 1,936.6 -43.9%

Asset Management(2) 121.0 6.5 1772.5%

HQ Expense -1,148.3 -571.6 100.9%

Internal Elimination and Consolidation Adjustments 10.4 -60.7 NA

Total 3,403.6 4,227.1 -19.5%

Page 26: 1 Fosun International 2011 Annual Result Presentation April 2012

Notes: 1. Before MI2. Total Debt = current & non-current interest-bearing borrowings + interest-free loans from related parties;

Total Capitalization = total equity + total debt 3. Net Debt = total debt – cash & bank balance; Net Capitalization = total equity + net debt

26

RMB (in million) 2011/12/31 2010/12/31 YOY

Cash & bank balance 16,777.8 21,335.0 -21.4%

Unused bank credit facility 40,275.7 25,464.0 58.2%

Total assets 137,537.6 118,374.8 16.2%

Net assets(1) 48,486.2 44,999.1 7.7%

Total debt/Total capitalization(2) 52.7% 49.4% Up by 3.3 % pts

Net debt/net capitalization(3) 43.5% 33.4% Up by 10.1 % pts

Mid-to-long term debt/total debt 56.2% 49.6% Up by 6.6 % pts

Balance Sheet Overview

Page 27: 1 Fosun International 2011 Annual Result Presentation April 2012

27

A debt structure being optimized constantly : mid-to-long term debt to total debt ratio has increased for the 5th consecutive year

Unused bank facilities have been on the rise each year

Improved Debt Structure

2007 2008 2009 2010 20110%

50%

100%

31.6% 38.4% 41.6% 49.8% 56.2%

Short-term debtMid-to-long term debt

2007 2008 2009 2010 20110.0

10.0

20.0

30.0

40.0

50.0

60.0

14.1 11.7 15.9 21.3 16.8

10.1 19.1 22.4

25.5 40.3 Unused bank credit facilityCash and bank balance

Billion RMB

Page 28: 1 Fosun International 2011 Annual Result Presentation April 2012

www.fosun-international.com

www.fosun-international.com28

Page 29: 1 Fosun International 2011 Annual Result Presentation April 2012

29

―Fosun Pharma―Forte―NISCO―Hainan Mining―2012 key operational targets

―NPV breakdown―China opportunities―Shareholding structure―CSR

Appendix

Chapter VI

Page 30: 1 Fosun International 2011 Annual Result Presentation April 2012

Market Cap HKD 26.07 bn

Book Value RMB 31.83 bn /HKD 39.26 bn BV per share RMB 4.96

/HKD 6.11

Net Portfolio Value RMB 35.02 bn / HKD 43.20 bn NPV per share RMB 5.45

/ HKD 6.73

Break down of NPV Bn RMB Bn HKD

Listed assets at the group level by attributable market cap as of 2011/12/31: 23.95 29.54

Including:

Industrial investments(Fosun Pharma/ NISCO) 13.23 16.32Strategic investments(Yuyuan/Focus Media/Club Med/Folli Follie) 5.60 6.90Listed Pre-IPOs (Jiashi Technology and others) 1.45 1.79Other investments in listed companies (post-IPOs) 3.67 4.53

Unlisted assets at the group level by BV as of 2011/12/31: 23.54 29.03

Including :Subsidiaries and strategic associates(Forte and others) 19.29 23.79Unlisted Pre-IPOs 2.23 2.75Other investments in unlisted companies(Yon’An insurance and others) 2.02 2.49

Net debt at the group level as of2011/12/31 ( 12.46) ( 15.37)Net Portfolio Value( 2011/12/31) 35.02 43.20

Committed LP funding 13.26 16.36

Fosun Int’l Net Portfolio Value (as of 2011/12/31)

30

Page 31: 1 Fosun International 2011 Annual Result Presentation April 2012

Market Cap HKD 29.67 bn

Book Value RMB 31.83 bn /HKD 39.26 bn BV per share RMB 4.96

/HKD 6.11

Net Portfolio Value RMB 36.81bn / HKD 45.45 bn NPV per share RMB 5.73

/ HKD 7.08

Break down of NPV Bn RMB Bn HKD

Listed assets at the group level by attributable market cap as of 2012/3/31: 26.84 33.14

Including:

Industrial investments(Fosun Pharma/ NISCO) 13.68 16.89Strategic investments(Yuyuan/Focus Media/Club Med/Folli Follie) 6.51 8.04Listed Pre-IPOs (Jiashi Technology and others) 1.57 1.94Other investments in listed companies (post-IPOs) 5.08 6.27

Unlisted assets at the group level by BV as of 2011/12/31: 23.50 29.02

Including :Subsidiaries and strategic associates(Forte and others) 19.29 23.82Unlisted Pre-IPOs 2.20 2.71Other investments in unlisted companies(Yon’An insurance and others) 2.02 2.49

Adjusted net debt at the group level ( 13.53) ( 16.70)Net Portfolio Value( 2012/3/31) 36.81 45.45

Committed LP funding 13.26 16.36

Fosun Int’l Net Portfolio Value (as of 2012/3/31)

31Note:1. Taken into consideration cash outflows because of new Post-IPO investments, proceeds received from disposal of stocks and any new IPOs, during the first three

months of 2012, all of which have been reflected in the value of listed assets as well. It doesn’t represent the actual net debt at the group level as of 2012/3/31.

Page 32: 1 Fosun International 2011 Annual Result Presentation April 2012

Yum 2011 Revenue

2011 Net Sales 2011 Net Sales 2011 Sales (units)0%

10%

20%

30%

40%

50% 44%

21%

12%

28%Prada

Capture new opportunities brought by China’s two transformations

China is becoming one of the top capital markets in the world

China’s household spending has been growing fast Growing importance of the China market for MNEs

Fastest Growing Asset Management Market

• With the growth of total wealth, AUM will grow as well. Asset management business will have a great potential.

Higher demand for China’s manufacturing capacities with promising investment future

• In the last 10 years, China’s equipment manufacturing industry saw a CAGR of 26%, with its scale topped the world now• In China’s industrial upgrade process, manufacturing will see an even higher demand, along with more demand for resources• Challenge: being free from low-cost dependence, integration and consolidation process featuring technological innovation and increasing value-adds,

higher efficiency of the whole supply chain

• Also, more and more Chinese companies focusing only on the local market are climbing up to the world’s top 10 enterprises in their respective segment.

• During 2011, China exchanges continues to lead the world IPO market in terms of capital raised ($80.6 bn), while US ranked 2nd ($35.6 bn)

• During 2011, there were 356 IPOs of China enterprises raising a total of USD61.532 billion, accounting for 41.9% in count and 52.1% in amount of all IPOs in the world

Best Investment Opportunities

32

1995 年 2000 年 2005 年 2010 年0.0

2.0

4.0

6.0

8.0

10.0

12.0

-40%-20%0%20%40%60%80%100%120%140%160%

1.5 1.1 1.6 1.9

2.9 2.6 2.6

3.2

0.3 0.6 0.9 2.1

5.0

6.8

8.8

10.4

Germany Japan ChinaUS Germany growth Japan growthChina growth US growth

Source of information: World Bank

Yum

Apple

GM

Page 33: 1 Fosun International 2011 Annual Result Presentation April 2012

Public ShareholdersFosun Holding

32.1% 19.6%

Fosun Pharma(600196.SH)

48.1%

Sinopharm(01099.HK)

Steel

NISCO(600282.SH)

50.3%

Mining

Jianlong steel26.7%

Property

Forte99.0%

Pharmaceuticals & Healthcare

Zhaojin Mining(01818.HK)8.1%(gold)

Shanghai Zendai(00755.HK)

Fosun Int’l( 00656.HK)

Insurance Asset Management

Yon’An Insurance

18.3%Carlyle-Fosun Mgmt

50.0%

Fosun Chuanghong Mgmt

100.0%

Star Capital Mgmt80.0%

Pramerica-Fosun Life Insurance( planning)

50.0%

Focus Media(FMCN.Nasdaq)

17.2%(1)

Retail, Services, Financial &

others

Yuyuan(600655.SH)

17.3%

Others

Club Med(CU.EPA)

9.7%

Folli Follie(FFGRP.AT)

13.9%

CMBC(600016.SH, 01988.HK)(3)

Hainan Mining60.0% (Fe)

Jin’An Mining 50.3%(Fe)

Huaxia Mining 18.4%(Fe)

Shanjiaowulin20.0%(coking

coal)

Shareholding structure

79.1% 20.9%

Haizimen50.0%

Notes : 1. Calculated based on the total share base as of 2012/1/13, as announced by Focus Media2. The Group and PrAMERICA-Fosun China Opportunity Fund held 10.0% and 3.9% stakes of Folli Follie

Group respectively3. The Group holds the A shares od CMBC representing 1.2% of CMBC’s total number of A shares and holds

its H shares representing 6.41% of its total number of H shares. In addition, Pramerica-Fosun China Opportunity Fund holds its H shares representing 0.7% of its total number of H shares

33

Attributable stake as of 2012/3/31, unless stated otherwise

Fosun Capital Mgmt100.0%

Pramerica-Fosun China Opportunity Fund

Mgmt100.0%

Forte Real Estate Asset Mgmt companies and

others

Page 34: 1 Fosun International 2011 Annual Result Presentation April 2012

Fosun as a Corporate Citizen

We donated to the frontline Fukushima rescue forces; we organized the Shining Star project, a large-scale branding activity, in the United States, and we sponsored cultural activities in collaboration with the Musée du Louvre in France

We supported China cultural legacy by helping protect and promote Wu Opera (a local opera) and Dongyang Woodcarving, etc; we also supported Chinese entrepreneurs by cooperating with Youth Business China and Aliloan

In November, Fosun International received the “Entrepreneurs for the World Award” at the World Entrepreneurship Forum in Singapore during the year for its business successes and social responsibilities

In December, Fosun ranked No.4 overall in “2011 China Overall Ranking of Chinese Non-state Owned Enterprise of Corporate Social Responsibility” by the popular Chinese newspaper Southern Weekly among the top 100 non-state-owned enterprises in China

In July, Fosun ranked no. 81 among Fortune's top 500 enterprises of China

Fosun –

20th Anniversary

In the past 20 years of development, Fosun has been upholding gratitude for its people and the society. In 2011, Fosun and its subsidiaries and associates provided 89,000 employment opportunities, an increase of 16,600 when compared with 2010, with total wages of over RMB 5Bn

34

Page 35: 1 Fosun International 2011 Annual Result Presentation April 2012

• Premium private healthcare

• Global strategy......

Fosun Pharma

35

Future Retail Pharmacies

(~2400 braches )(1)

Distribution(Sinopharm)

R&D and Manufacturing

Note:1. Include retail pharmacies of Fosun Pharma and Sinopharm

Fosun Pharma: to build an integrated industrial chain, encompassing major sectors of health-related industry.

Page 36: 1 Fosun International 2011 Annual Result Presentation April 2012

Fosun Pharma

Research and Development (2011): Applied for 70 patents

5 products received new drug certificate and manufacture permits

2005 2006 2007 2008 2009 2010 20110

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2,989 3,102 3,693 3,773 3,872

4,555

6,486

Revenue ( million RMB )6-year CAGR:13.8%

2005 2006 2007 2008 2009 2010 20110

50

100

150

200

250

300

350

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

87 96136 148

189272

310

R&D Expense to Pharmaceutical Industrial Revenue

36

2005 2006 2007 2008 2009 2010 20110

500

1,000

1,500

2,000

2,500

3,000

159 258

626 691

2,498(1)

864 1,166

Net Profit ( million RMB )6-year CAGR:39.4%

Note:1. Sinopharm, a key subsidiary of Fosun Pharma completed its IPO in Hong Kong stock exchange in 2009. As a result, Fosun Pharma booked a net

profit of RMB 1 , 958 mn in 2009

Million RMB

Page 37: 1 Fosun International 2011 Annual Result Presentation April 2012

2005 2006 2007 2008 2009 2010 2011 0

200 400 600 800

1,000 1,200 1,400 1,600 1,800

131 174 380

608 967

1,209 1,561

Net Profit ( million RMB )6-year CAGR: 51.1%

Network coverage (2011):― Total network coverage of

30 provinces, 46 distribution centers nationwide

Total clients (2011):― Direct clients include

72.32% of all hospitals in China

― Additional 109,354 clients, with increasing leadership gap

37

2005 2006 2007 2008 2009 2010 2011 0

20

40

60

80

100

120

19 24 38 38

53

69

102

Revenue (billion RMB )6-year CAGR : 32.0%

Sinopharm: An Undisputable Industrial Leader

Page 38: 1 Fosun International 2011 Annual Result Presentation April 2012

Forte: A Nationwide Property Developer

Region Attributable area ( 1)

(’000 sq.m.)

Shanghai 1,457Cities in Jiang Su

and Zhe Jiang provinces 2,458

Mid western cities 4,599Northern citis 2,602

Hainan 52Total 11,168

Note:1. Including reserves from collaboration projects at

areas attributable to Forte

2005 2006 2007 2008 2009 2010 20110

400

800

1,200

1,600

2,000

561 481 711

102

497

1,760 1,775

Net Profit( million RMB )

38

Datong

Changsha

Hainan

Fuyang

Project reserve as of 2011/12/31

Page 39: 1 Fosun International 2011 Annual Result Presentation April 2012

9,891 9,048

11,168

Forte

Y-o-Y Change of Attributable Contract Sales GFA in 2011: ………………… -13.27%

Y-o-Y Change of Attributable Contract Sales in 2011: ………………… -31.81%

Y-o-Y Change of Attributable Booked GFA in 2011: ………………… 3.22%

Y-o-Y Change of Attributable Booked Sales in 2011: ………………… -5.4%

Y-o-Y Change of Attributable Project Reserve: ………………… Increased by 2.12 million sq.m.

2010 2011 2010 2011 2010 2011 2010 2011 2010 2011

13,810

9,417

10,456 1,070 869 897

928

39

Attr. Contract Sales GFA ‘000 sq.m.

Attr. Contract Sales Rmb Million

Attr. Booked GFA ‘000 sq.m.

Attr. Booked Sales Rmb Million

Attr. Project Reserve

‘000 sq.m.

Forte: A Nationwide Property Developer

Page 40: 1 Fosun International 2011 Annual Result Presentation April 2012

40

2005 2006 2007 2008 2009 2010 20110.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

4.50 4.70 5.40 5.19

6.01 6.31 6.84

Outputs of steel products(1) (million tonnes)

NISCO: China’s Leading Steel Enterprise

NISCO:To become the manufacturing base for premium medium and heavy plates and special qualified bars and wire rods.

Competitive strength:

― One of China’s most efficient steel makers

― High product quality

― Technology-led development

― Investing in upstream industries

― One-stop customer service

Note:1. Our subsidiary Nanjing Steel United (NSU) completed overall listing of steel-related assets in October 2010. In the chart above, figures prior to

September (including September) 2010 are attributable historical figures from NSU. Figures after September 2010 are the attributable figures of NISCO after completion of asset restructure.

Page 41: 1 Fosun International 2011 Annual Result Presentation April 2012

41

2007 2008 2009 2010 20110.00%

1.00%

2.00%

3.00%

4.00%

5.00%R&D expenditure to

revenue

NISCO’s proven strength in improving product mix via its committed R&D initiatives: One of the first few domestic players to be able to produce 9%

Ni steel in batch size, which is used for LNG tank that requires resistance to very high pressure and extremely low temperature.

Sales volume of Pipeline steel and steel for wind-generator towers increased by 29% and 198% respectively

Steel plates for oil storage tanks and alloy pipeline steel such as T91 secured the biggest market shares in the country

NISCO: China’s Leading Steel Enterprise

RMB/tonne 2011 2010 change

ASP of steel products ………………………… 4,699 4,202 12%

Average purchasing cost of iron ore ………………………… 1,190  962   24%

Average purchasing cost of coking coal ………………………… 1,460  1,350   8%

Prices of steel products and raw materials

Page 42: 1 Fosun International 2011 Annual Result Presentation April 2012

Reserve(1):

Hainan Mining has 253 million tonnes of iron ore reserve with an average ferrous content at 46.25 %Main products:

― Lump with ~ 55% Fe content

― Fines

― Concentrated ferrous powder ......

42

2005 2006 2007 2008 2009 2010 20110.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

2.86 2.81 3.10

2.75

3.41 3.44 3.76

Total Outputs for Finished Products (million tonnes)

Note:1. Documented by Bureau of Land and Resources

Hainan Mining: The largest single-body open pit iron-rich ore mine and one of the most efficient mines in China.

Hainan Mining: A Valuable Premium Asset

Page 43: 1 Fosun International 2011 Annual Result Presentation April 2012

2011 2010 Y-o-y

Total outputs ( mn tonnes ) ……………………………… 3.76 3.44 9%

ASP ( RMB/tonne ) ……………………………… 724 664 9%

Cash cost ( RMB/tonne ) ……………………………… 127 115 10%

Average production cost (RMB/tonne ) ……………………………… 171 166 3%

Gross margin ( % ) ……………………………… 73% 71% Up 2 pts.

Sales to top 10 clients (mn tonnes) ……………………………… 3.52 3.17 11%

Sales to top 10 clients as a % of total sales ……………………………… 94% 93% Up 1 pts

Key Operational Indicators

43

Hainan Mining: Cost Advantage

Page 44: 1 Fosun International 2011 Annual Result Presentation April 2012

44

Jin’An Mining: output targetConcentrated fines/ million tonnes)

Forte: targets for pre-sales and booked GFA(’ 000 s.qm.)

NISCO: output target (steel products/million tonnes)

Hainan Mining: output target(iron ore/million tonnes)

2010 2011 2012E0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00

6.31 6.84 7.00

2010 2011 2012E0.00

0.20

0.40

0.60

0.80

1.00

1.20

0.88 1.00 0.95

44

2010 2011 2012E0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00

3.44 3.76 3.80

2012 Operational Targets

2010 2011 2012E0

200

400

600

800

1,000

1,200 1070928 928

869 8971015

Attr. Pre-sales Attr. Booked GFA