TO EXPAND PPP AND INFRASTRUCTURE FINANCING IN IN ASIA IA PACIFIC - - PowerPoint PPT Presentation

UTILIZING COM OMPREHENSIVE ADVANTAGES TO EXPAND PPP AND INFRASTRUCTURE FINANCING IN IN ASIA IA PACIFIC

GUIYANG, CHINA 12TH SEPT,2018

CITIC’S Unique Advantage in PPP Business

client-oriented, provide integrated solutions to enhance client values Clients Channels Government Relations Overseas resources Talents R&D Industrial chain Brand Products and services Strategic cooperation with industry leaders and local governments Joint marketing Coordination between financial subsidiaries Coordination along industrial chain Develop overseas businesses jointly Establish PPP consortium Sharing channels and clients; Joint research and cross-selling Coordination based on big projects

Share resources and platforms among all business sectors CITIC Synergy paradigm

Cooperation with ministries and other enterprises groups

Composed of 16 CITIC subsidiaries covering the full life cycle of PPP projects, including PPP project consulting, planning, designing, construction and investment and financing etc.

Composed of core PPP members in consulting, investment and financing .

• CITIC subsidiaries in both financial and non-financial

sectors jointly announced their plan to provide investment and financing services worth 700 billion RMB for the One Belt One Road strategic initiative.

• Provide integrated solution in infrastructure construction

and industrialization sector to host countries.

• Cover various fields including infrastructure, energy and

resource, eco-environment protection, new energy, modern agriculture, cultural education etc.

Joint participation in One Belt One Road Initiative Establish multi-tier CITIC PPP platforms

2 third tier

second tier

first tier

Case 1: Beijing National Stadium (Bird’s Nest)  The main venue for the 29th Beijing Olympic Games in 2008  Regarded as the first official PPP project in China  The milestone development for CITIC Construction

 Land Area: 21 hectares  GFA: 258,000 sq.m.  Capacity: 91,000 people  Total Investment: 3.14 billion RMB  Construction Duration: 4.5 years  Regarded as the largest scale, the most complex structure, the highest technical difficulty and the most strict requirements for construction period and quality among similar stadiums in the world

Case 1: Beijing National Stadium (Bird’s Nest) OVERVIEW

Project Company Beijing Municipal Government

Concession Agreement

Operation Consultant Project Management Consultant Designer Construction contractor

Strategic Operating Agreement Project Management Agreement Design contract Construction contract

Beijing State-owned Assets management Co., Ltd (BSOAM) CITIC Consortium

Joint Ventures Contract

58% 42% Beijing Organizing Committee for the Olympic Games

consortium agreement

CITIC Group BUCG Golden State Holding Group

National Stadium Agreement

65% 30% 5%

 The largest greenfield project independently developed by a Chinese developer in the UK  Total Investment: GBP 1.7 billion Project Period: 8~10 years  Land Area: 14 hectares Total Construction Area：430,000 sq. m.

Case 2: UK Asian Business Port Project at the Royal Albert Dock OVERVIEW

 GLA municipal government ( the land owner) signed the Development Agreement with ABP London ( Urban Regeneration Project Developer), and CITIC Construction as general contractor.  Based on the GLA’s envision and target, “GLA (land) + Developer (Equity)” cooperation model to develop the project and GLA share the profit of project development. GLA Municipal Government ABP（Longdon） Investment Holding Co., Ltd ABP Industrial Development（London） Co., Ltd CITIC-AB Holding Co., Ltd ABP London Investment Co., Ltd (United Kingdom)

25% Land Equity 75% Case 2: UK Asian Business Port Project at the Royal Albert Dock OVERVIEW

CASE 3: Tianfu International Airport Ziyang Industrial New Town PPP Project  Bidder: CITIC Construction Consortium  Land Area: 35 sq.km  Total Contract Value: 49 billion RMB  Duration: 20 years  PPP Model: DBFOT  Phase I Investment: 10.3 billion RMB

 Ranked No.2 among “Top 10 PPP Project in China in 2017“  The largest PPP project in Sichuan province, China CASE 3: Tianfu International Airport Ziyang Industrial New Town PPP Project

• Founded in 1979, CITIC Group is the largest diversified transnational conglomerate in China.
• Business portfolio covering financial services, resources & energy, manufacturing. Engineering

contracting, real estate, infrastructure etc.

• Ranked 149th among the Fortune Global 500 in 2018.

ABOUT CITIC GROUP

FINANCIAL SUMMARY (2017)  Total Asset: 6,335 billion RMB  Total Revenue: 414 billion RMB  Net Profit : 36 billion RMB

Listed in Fortune 500 for 10 consecutive years

ABOUT CITIC Group: GLOBAL MARKET

CITIC, the earliest large SOE to invest overseas, is

actively developing business in 30+ countries and regions along the “B&R”. Overseas business CITIC Construction*

Developing businesses in Asia, Africa, Latin America and Europe

CITIC Resources*

Oil fields in Indonesia Kazakhstan

CITIC Metal

Investment in Peru and Brazil

CITIC Dicastal*

A world-wide manufacturing system, including 21 bases in China, U.S. and Europe

CITIC Bank International*

Branches in Hong Kong, US, Macao Singapore

CITIC Heavy Industries*

• ver 30% revenue

from overseas

CITIC Securities

Over 2,000 overseas institutional clients across 17 regions

CITIC Pacific Special Steel

Selling products to over 60 countries and regions such as North America, Europe

* Revenue from overseas accounted for over 30% CITIC Telecom International*

Developing business in Hong Kong, Macao, Asia Pacific

Ranked 56th among the ENR Top International Contractors Proven track records in delivering large-scale international projects Strong abilities in technical management, R&D, planning and design Providing comprehensive solution for large scale project from Investment, financing, D &B, O&M

• A wholly-owned subsidiary of CITIC Group，providing all-round integrated services from EPC turnkey to

maintenance & operation.

• Operation Strategy: Win over engineering contracts through investment, financing and pre-

service and boost overall business growth through the contractorship.

• The Company can help the clients to expand upstream and downstream industries to develop

complete value chains. About CITIC Construction

CITIC Construction has expanded its footprint into 10+ countries including the Chinese mainland, Hong Kong, Angola, Algeria, Venezuela, Argentina, Brazil, Belarus, Kazakhstan, Myanmar, United Kingdom etc.

About CITIC Construction: Global Market

About CITIC Construction: Alliance Fleet

Supported by the financial strength and comprehensive capabilities

• f

CITIC Group, CITIC Construction integrates the best specialized companies (“partners”) both domestically and internationally to form a benefit- sharing and risk-sharing "Alliance Fleet”. On the Alliance Fleet consisting of 40 companies, CITIC Construction plays a flagship role to lead and control the key processes and resources, while the partners are responsible for the implementation of projects by taking advantage of their respective expertise.

12 12th

th SEPT, 201

SEPT, 2018

STRIVING T TOGETHER SHARING BE BENEFITS CREATING NEW OP OPPORTUNITIES TOGETHER!