Hong Kong Venture Capital Association Conference Josephine Price Managing Director CLSA Private Equi

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Hong Kong Venture Capital Association
ConferenceJosephine Price Managing
DirectorCLSA Private Equity Limited ARIA
Investment Partners I II

• September 2003

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Development Capital
Chelsea Football Club
Liverpool Football Club
From Russia with love
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CLSA Private Equity

• CLSA Private Equity
• Specialist private equity investment management
  firm focused on mid-market investing in Asia
• 9 professionals based in Hong Kong and Singapore
• Works closely with other units of CLSA to have
  unique access to Asia and its decision makers
• CLSA Private Equity is the manager of ARIA
  Investment Partners, L.P. and ARIA Investment
  Partners II, L.P., pan-Asian private equity funds

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ARIA Investment Partners I II

• Aria targets outstanding middle market companies
  to provide capital for expansion, acquisition and
  recapitalization both before and after a public
  listing
• Works actively with companies to provide
  financial and strategic guidance
• Invests in established businesses well positioned
  for growth, with strong management and
  competitive advantage
• ARIA considers all sectors particularly consumer
  products, food processing, logistics and
  distribution, service industries, healthcare and
  manufacturing
• Investors include established pension funds (US),
  insurance companies (Germany and Japan), banks
  (France and North America) and CLSA

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Value Added Approach to Investing
CLSAPEL - Partner in development of the business

• Not just another shareholder. Acts beyond being a
  pure financial investor, provides experiences and
  know-how for companys transition to the next
  level (e.g. family-run to corporate, private to
  public, domestic to international, etc)
• Minority stake means management support (and not
  management control), more collaborative approach
  within agreed business objectives.
• Wide ranging efforts tailored to the individual
  needs of the investee companies, from basic
  advices on recruitment to sophisticated system
  review.

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Facilitating growth
Strategic Advice

• Participate in formulation of business strategies
• Assists in improving operational efficiency
  identifying best financing methods, measuring and
  managing business risks, performance measurement,
  etc.

MA and National Expansion

• Strategic Screening Identify synergistic
  companies in the industry as potential targets,
  tapping on CLSAs research and contacts.
• Transaction Participate in due diligence and
  provide advice in deal structuring to capture
  maximum benefits from the deal. Can also be
  involved in negotiation.
• Post-investment monitoring Assist in putting in
  place control mechanisms on acquisition companies
  including operation parameters and financial
  control.

Networking

• Referring contacts that may lead to business
  opportunities.
• Assist in identifying potential partners to
  develop linkage outside of the country.

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Facilitating growth
Corporate Governance

• Active participation by CLSAPEL directors on the
  Boards of Directors/ Audit Committees/
  Compensation Committees
• Identify independent non-executive director with
  more relevant experience and reputation
• Not just a tick in the box approach. Put in
  place measures to help improve the companys
  corporate governance
• Advise on Dividend Policy/ ROE targets

Human Resource Management

• Assist company to build a team of professional
  managers, help in offsite team sessions
• Identify gaps in the management team and
  recommend credible candidates

Investor Relations Program

• Access to CLSA network
• Develop closer working relationship with
  brokerage houses to facilitate better research
  coverage
• To tap on contacts to listen to market feedback