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 12 TH SEPT,2018

CITIC’S Unique Advantage in PPP Business Joint participation in One Belt One Road Clients Initiative Brand Channels • 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 Products Government Belt One Road strategic initiative. and services Relations • Provide integrated solution in infrastructure construction Share resources and platforms among and industrialization sector to host countries. all business sectors Industrial Overseas resources chain • Cover various fields including infrastructure, energy and resource, eco-environment protection, new energy, Talents R&D modern agriculture, cultural education etc. Establish multi-tier CITIC PPP platforms CITIC Synergy paradigm Strategic client-oriented, provide third tier Cooperation with ministries and other cooperation with Develop overseas integrated solutions to industry leaders enterprises groups businesses jointly enhance client values and local governments Composed of 16 CITIC subsidiaries covering second tier the full life cycle of PPP projects, including PPP project consulting, planning, designing, Establish PPP Coordination based on construction and investment and financing Joint marketing consortium etc. big projects first tier Composed of core PPP members in consulting, investment and financing . Sharing channels and Coordination Coordination clients; between financial along industrial Joint research and subsidiaries chain cross-selling 2

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

Case 1: Beijing National Stadium (Bird’s Nest) OVERVIEW Beijing Municipal Government 65% CITIC Group 30% BUCG Golden State Holding Group 5% Beijing Organizing National Stadium Concession Agreement Agreement Committee for the consortium agreement Olympic Games 42% CITIC Consortium Project Company Joint Ventures Contract Beijing State-owned Assets management Co., Ltd (BSOAM) 58% Project Management Strategic Operating Construction contract Design contract Agreement Agreement Construction contractor Designer Project Management Operation Consultant Consultant

Case 2: UK Asian Business Port Project at the Royal Albert Dock OVERVIEW  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 ABP Industrial CITIC-AB Holding Co., Development （ London ） Ltd Co., Ltd 25% 75% ABP （ Longdon ） GLA Municipal Government Investment Holding Co., Ltd Land Equity ABP London Investment Co., Ltd (United Kingdom)  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.

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

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

ABOUT CITIC GROUP • 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. Listed in Fortune 500 for 10 consecutive years FINANCIAL SUMMARY (2017)  Total Asset: 6,335 billion RMB  Total Revenue: 414 billion RMB  Net Profit : 36 billion RMB

ABOUT CITIC Group: GLOBAL MARKET CITIC CITIC Construction* Resources* Developing businesses in Oil fields in Asia, Africa, Latin America Indonesia and Europe Kazakhstan CITIC Heavy CITIC Securities Industries* Over 2,000 overseas over 30% revenue institutional clients across from overseas 17 regions CITIC Dicastal* CITIC Bank A world-wide International* manufacturing system, Branches in Hong Kong, including 21 bases in China, US, Macao U.S. and Europe Singapore CITIC Metal CITIC Pacific Special Steel Investment in Peru and Brazil Selling products to over 60 countries and regions CITIC , the earliest large SOE to invest overseas, is such as North America, CITIC Telecom Europe actively developing business in 30+ countries and International* Overseas business Developing business in regions along the “B&R” . * Revenue from overseas Hong Kong, Macao, accounted for over 30% Asia Pacific

About CITIC Construction 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. 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

About CITIC Construction: Global Market 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: Alliance Fleet Supported by the financial strength and comprehensive capabilities of 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.

STRIVING T TOGETHER SHARING BE BENEFITS CREATING NEW OP OPPORTUNITIES TOGETHER! 12 12 th th SEPT, 201 SEPT, 2018