What we do A new cross-border M&A boutique between China and Europe • Adamas Investments is a financial advisory firm affiliated to Adamas Law Firm • Building on our vast network among Chinese investors (300+ contacts) and the Chinese Government (MofCom, MFA, PBoC), and leveraging our experience in China-Europe business relations (15+ years) , we devise and execute tailored and innovative solutions : • Mergers and acquisitions - buy side / sell side • Equity fund raising • Strategic advisory • Adamas Investments is a generalist boutique with the capacity to bring its expertise and know- how in any industry. We excel in sectors such as AI, healthcare, fintech, media, education and smart factory.
Who o we are e – key y people ople A diverse team with sound experience in Europe and China Floren ent Mangi gin – Managin ing partn tner er After a first experience in Merrill Lynch investing banking division in London, Florent joined the French civil service. He held various position related to European affairs and was in charge in particular of French positions regarding the Euro debt crisis, fiscal policy and financial regulation. Florent also worked for the French Treasury in China, first as financial counsellor, and later as Head of Business France Investments and counsellor for international investments. In this position, he covered more than 120 Chinese investments in France, including BYD, Wanda, Chemchina and Fosun Floren ent Mangi ngin n gradua uated ed from HEC, C, Scien ence ces s Po Paris is and nd ENA A in Franc nce. He also so has as mas aster ter degree ee in law fro rom and d a bach chelo elor degree e in phil ilosop sophy fro rom Sorbo bonne e Univ iversit ersity. Dr Nan DI – Assoc socia iate Nan started her career at Siemens China where she was in charge of identifying disruptive technologies and solutions to expand business units’ products’ portfolio/ markets. She became an associate in Next47, Siemens venture company in Shanghai. She joined then Steph Holdings, a leading VC in china focusing on semiconductors and advanced manufacturing. Nan n DI holds lds a Ph PhD D in phy hysic ics s from Ecol ole Polytec echn hniqu ique e in Paris. is. She stu tudi died ed scien ience ces s in Tongji ngji univ iversit sity in Shan anghai ai, at at Parist istec ech and d Pier erre et et Marie ie Curie ie univ ivers ersit ity in Pari ris, s, as as well l as as in MIT, Mas assa sachuse setts. s.
We belie ieve e China ina opens ens new w M& M&A A oppor portunities unities for r Europe ope China outbound M&A trend is dynamic, presenting strategic opportunities for European companies Nb of mainlan Nb inland china ina outbound tbound deals als by Mainlan inland d Ch China ina outbo tbound d dea eals s in Europ ope USD bn industr try y - 2017 17 40 35 85 Industrials 30 217 70 25 TMT 20 Financials 123 15 Consumer 10 219 Healthcare 5 94 0 Others 2013 2014 2015 2016 2017 Chinese M&A market is growing fast, with unexploited potential for European investors USD bn Strategi egic c buyer er dea eals Fina nanc ncia ial buy uyers ers deals als USD bn 500 300 Foreign 400 250 Private equity Domestic 200 VC 300 150 200 100 100 50 0 0 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Source: PwC, ThomsonReuters, ChinaVenture, Zero2IPO
nd “heart” pumping in global economy China ina is s the e 2 nd Demog ogra raphy phy Economy omy Tech market US China US China US China 19 GDP, 323 Population, 858 IT spending, trillion USD mn 12 bn USD 274 1,405 Colleges 61 PC Shipment Volume, 3 229 / 71% Graduates, Smartphone Users mn 53 8 million mn/Penetration Rate 1,300 / 93% 46 Cloud Computing Mkt Size, bn USD VC Deals, 8 10 221 / 68% Internet User thousands 5 mn/Penetration Rate 244 751 / 53% Mobile Payment Volume, bn USD 31,215 84 $ of VC Deals, # of Users rs of Top Product ducts s of China na & US bn USD 45 Retail E-commerce Volume, 31 bn bn USD 2.1 939 113 # of Unicorns, hundred 62 1.0 Time to reach ch Time to reach ch $1bn # of Intl Patent 0.5 100mn users rs: valua luati tion: n: 0.4 57 0.3 Applications, 0.2 49 thousand $38.45n $36.4bn Face cebook Sna Snapcha chat Amazo zon Wecha chat Taobao Weib ibo Rev in Rev in 2017 2017 2.3 yrs 4.5 yrs 1.2 yrs 4.5 yrs Source: 2017 data, National Bureau of Statistics of China /US, Credit Suisse, Sohu, Zero2IPO Group, NVCA, All Weather TMT, CB Insights, WIPO, Counterpoint Research, IMRB International, Zenith, Tencent, 36Kr, IDC, Company Website
Chi China na has a ferti tile le grou ound nd for or in innovati tion on, , dom omin inated ed by lo local l in investors ors VC Market t overvi view 2017 7 Top p 10 China na VC Inve vestme stment nt China na VC Inve vest stment ment Amoun unt, t, Top p 5 China na VC Indus ustries, ries, bn USD bn USD # of 2017 Average $ of 40 Deals 2017 Deals Fund Scale 31.2 +50% Internet 6.2 30 Healthcare 5.2 19.9 20.2 11 $ 23.9mn $ 9.2bn 16.0 IT 4.2 20 0 Telecom 2.3 $ 30.0mn $ 32.0bn 6.2 90 10 Finance 2.0 16 Entertainment 1.4 0 $ 7.4mn $ 1.0bn 0 2013 2014 2015 2016 2017 Auto 1.4 12 Machine… 1.1 $ 69.6mn $ 3.1bn 7 1% -13% 159% 25% 54% Retailing 1.0 13 $ 129.9mn Over $ 1.5bn Electronic 0.9 0 Invest ested Startups ps Overvi view Invest ested Startups ps Overvi view 2017 7 China na Top p 5 Unico corns ns 2017 7 US Top p 5 Unico corns rns 2017 7 Inve veste sted d Start rtups ups Region Distr tribut bution Name Sector Evaluation Name Sector Evaluation N=4822, bn USD Uber Transportation $ 67bn Ant nt Financi ncial Internet Finance $ 75bn Airbnb nb Housing $ 23.3bn Beijing DiDi Transportation $ 56bn 29% (1,393) 29% Shanghai Intelligent $11.0bn bn Spa pace ceX Rocket $ 21.5bn Mi Mi $ 46bn 43% 43% Hardware Shenzhen Palant ntir Data $ 20bn 16% 16% (785) Alibaba Cloud ud Cloud Service $ 39bn Others $4.8bn bn 11% (554) 11% WeWork Office $ 20bn Meitua uan E-commerce $ 30bn $2.5bn bn Source: Zero2IPO, 36 Kr, IT Juzi
By 20 2020 20, , China na will l occup cupy y ~17 17% % of global bal AI AI mark rket Key highlig ights ts Global bal AI market t siz ize, e, Bn USD AI has been setup as a top natio tional al strat strateg egy by Chinese • 63.3 govt with detailed workplan and aiming to achieve $1.5Tr Tr +22% 55.4 relevant market by 2030 42.7 34.8 The key drivers of the faster growth of China AI market • 28.5 are: 1. The advantageous poli licy cy environment 2. The br broad oad da data accumulation due to the large population base of China and improvement of 2016 2017 2018E 2019E 2020E infra rastr structure platf tform orms 3. Booming industrial and VC investm estment nt Chin Ch ina a AI market t siz ize, 4. Fast growth of AI talen ent quality Bn USD Chinese players have accelerated development of AI AI 11.0 • tec echnol ologi ogies es, broad accumulation of data da ta and the +45% 7.9 continuous exploration of AI app ppli lica cation tion scen enari arios os. 5.8 Further expansion of China AI market can be achieved • 4.0 2.5 with the development of AI chip industry, especially sp spec eciali alized ed AI AI chip ip such as FPGA and ASIC. Local GPU companies are also rising. 2016 2017 2018E 2019E 2020E China market 9% 11% 14% 17% 14% proportion Source: IMedia Research, Statista
China ina has s acquir quired ed ~50 50% % of global bal AI AI investmen estment t now China AI Startups Investment Market Overview Ch Chin ina a AI Startups Inves estm tmen ent t Ch Chin ina a AI Startups Inves estm tmen ent t Valu lue Break akdo dowm by va value chain ain 2.5 bn, USD 2.1 bn, USD 2017 AI Startup inves estme tment 2.0 8 50% geo distr stribu ibution tion 1.6 48% 1.5 Total=15.2bn, USD 1.5 40% 6 30% Others China AI 0.8 1.0 4 0.7 companies 20% 15% 0.4 14% $7.3bn 2 0.5 0.3 10% 0.2 0.1 0.7 7.3 0 0% 0.0 2016 2017 2015 2016 2017 48% Investment Amount % of Global Investment Basic Tech Application 2012-2017 Top p 5 VCs in Ch Chin ina AI 2012-2017 Ch Chin ina a AI Startups ps 38% inves estm tmen ent Invest estmen ment t Fundin ing g Source # of deals % of Deals % of Funding Amount US AI ZhenFund 32 companies USD $5.8bn 15% Sinovation Ventures 22 Fund CNY Sequoia Capital China 22 49% 51% Fund IDG 20 85% Banyan Capital 14 Source: CB Insight, Yiou Intelligence
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