What we do A new cross-border M&A boutique between China and - - PowerPoint PPT Presentation

• 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.

What we do

A new cross-border M&A boutique between China and Europe

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

• le 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.

Who

• we are

e – key y people

• ple

A diverse team with sound experience in Europe and China

We belie ieve e China ina opens ens new w M& M&A A oppor portunities unities for r Europe

• pe

China outbound M&A trend is dynamic, presenting strategic opportunities for European companies

5 10 15 20 25 30 35 40 2013 2014 2015 2016 2017

Mainlan inland d Ch China ina outbo tbound d dea eals s in Europ

• pe

217 219 94 123 70 85 Nb Nb of mainlan inland china ina outbound tbound deals als by industr try y - 2017 17

Industrials TMT Financials Consumer Healthcare Others

Chinese M&A market is growing fast, with unexploited potential for European investors

100 200 300 400 500 2013 2014 2015 2016 2017

Strategi egic c buyer er dea eals Foreign Domestic

50 100 150 200 250 300 2013 2014 2015 2016 2017

Fina nanc ncia ial buy uyers ers deals als

Private equity VC

USD bn USD bn USD bn

Source: PwC, ThomsonReuters, ChinaVenture, Zero2IPO

China ina is s the e 2nd

nd “heart” pumping in global economy

19 3 8 84 113 57 12 8 5 31 62 49

GDP, trillion USD Colleges Graduates, million VC Deals, thousands $ of VC Deals, bn USD # of Unicorns, hundred # of Intl Patent Applications, thousand

US China

Economy

• my

Demog

• gra

raphy phy Tech market

323 229 / 71% 221 / 68% 1,405 1,300 / 93% 751 / 53%

Population, mn Smartphone Users mn/Penetration Rate Internet User mn/Penetration Rate

US China

858 61 46 244 45 274 53 10 31,215 939 IT spending, bn USD PC Shipment Volume, mn Cloud Computing Mkt Size, bn USD Mobile Payment Volume, bn USD Retail E-commerce Volume, bn USD

US China

2.1 0.3 0.2 1.0 0.5 0.4 Face cebook Sna Snapcha chat Amazo zon Wecha chat Taobao Weib ibo

# of Users rs of Top Product ducts s of China na & US bn

Time to reach ch 100mn users rs: Time to reach ch $1bn valua luati tion: n:

4.5 yrs 1.2 yrs 4.5 yrs 2.3 yrs $36.4bn Rev in 2017 $38.45n Rev in 2017

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

VC Market t overvi view

Chi China na has a ferti tile le grou

• und

nd for

• r in

innovati tion

• n,

, dom

• min

inated ed by lo local l in investors

• rs

6.2 5.2 4.2 2.3 2.0 1.4 1.4 1.1 1.0 0.9 Internet Healthcare IT Telecom Finance Entertainment Auto Machine… Retailing Electronic

2017 7 Top p 10 China na VC Inve vestme stment nt Indus ustries, ries, bn USD

• 13%

159% 25% 1% 54%

# of 2017 Deals Average $ of 2017 Deals Fund Scale $ 23.9mn $ 9.2bn $ 30.0mn $ 32.0bn $ 7.4mn $ 1.0bn $ 69.6mn $ 3.1bn $ 129.9mn Over $ 1.5bn

11 90 16 12 7 13

Top p 5 China na VC

Invest ested Startups ps Overvi view

29% 29% (1,393) $11.0bn bn 16% 16% (785) $4.8bn bn 11% 11% (554) $2.5bn bn 43% 43%

2017 7 Inve veste sted d Start rtups ups Region Distr tribut bution N=4822, bn USD

Beijing Shanghai Shenzhen Others

Name Sector Evaluation Ant nt Financi ncial Internet Finance $ 75bn DiDi Transportation $ 56bn Mi Mi Intelligent Hardware $ 46bn Alibaba Cloud ud Cloud Service $ 39bn Meitua uan E-commerce $ 30bn

Invest ested Startups ps Overvi view

2017 7 China na Top p 5 Unico corns ns Name Sector Evaluation Uber Transportation $ 67bn Airbnb nb Housing $ 23.3bn Spa pace ceX Rocket $ 21.5bn Palant ntir Data $ 20bn WeWork Office $ 20bn 2017 7 US Top p 5 Unico corns rns

6.2 16.0 19.9 20.2 31.2 10 20 30 40 2013 2014 2015 2016 2017

China na VC Inve vest stment ment Amoun unt, t, bn USD

+50%

Source: Zero2IPO, 36 Kr, IT Juzi

28.5 34.8 42.7 55.4 63.3 2016 2017 2018E 2019E 2020E

• AI has been setup as a top natio

tional al strat strateg egy by Chinese govt with detailed workplan and aiming to achieve $1.5Tr Tr relevant market by 2030

• The key drivers of the faster growth of China AI market

are: 1. The advantageous poli licy cy environment 2. The br broad

• ad da

data accumulation due to the large population base of China and improvement of infra rastr structure platf tform

• rms

3. Booming industrial and VC investm estment nt 4. Fast growth of AI talen ent quality

• Chinese players have accelerated development of AI

AI tec echnol

• logi
• gies

es, broad accumulation

• f

da data ta and the continuous exploration of AI app ppli lica cation tion scen enari arios

• s.
• Further expansion of China AI market can be achieved

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.

By 20 2020 20, , China na will l occup cupy y ~17 17% % of global bal AI AI mark rket

Global bal AI market t siz ize, e, Bn USD Ch Chin ina a AI market t siz ize, Bn USD

+22%

2.5 4.0 5.8 7.9 11.0 2016 2017 2018E 2019E 2020E

+45% 9% 11% 14% 14% 17% China market proportion

Key highlig ights ts

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

48% 38% 14% US AI companies $5.8bn Others China AI companies $7.3bn

2017 AI Startup inves estme tment geo distr stribu ibution tion

Total=15.2bn, USD 0.7 7.3 15% 48% 0% 10% 20% 30% 40% 50% 2 4 6 8 2016 2017 Investment Amount % of Global Investment

Ch Chin ina a AI Startups Inves estm tmen ent t Valu lue

bn, USD 0.1 0.4 1.6 0.2 0.7 1.5 0.3 0.8 2.1 0.0 0.5 1.0 1.5 2.0 2.5 2015 2016 2017 Basic Tech Application

Ch Chin ina a AI Startups Inves estm tmen ent t Break akdo dowm by va value chain ain

bn, USD 15% 85% % of Deals 51% 49% % of Funding Amount

USD Fund CNY Fund

2012-2017 Ch Chin ina a AI Startups ps Invest estmen ment t Fundin ing g Source

32 22 22 20 14 ZhenFund Sinovation Ventures Sequoia Capital China IDG Banyan Capital

2012-2017 Top p 5 VCs in Ch Chin ina AI inves estm tmen ent

# of deals

Source: CB Insight, Yiou Intelligence

Intell elligence gence

• We base our recommendations
• n detailed knowledge and in-

depth analysis of the business environment in China and Europe

• We provide simple and innovative

framework for solving complex situations and understanding the dynamics those situations produce

Vision sion

• We

help

• ur

clients craft a comprehensive value creation strategy that aligns both business and financial strategy

• We think it critical to understand

how global macro and technological trends shape business

Reli eliabili bility

• We

move fast and strive to provide the best outcome and service quality

• We have direct access to a vast

network in China and Europe among MNCs, startups, financial institutions and government

• In

uncertain and potentially adverse environment, creating value goes along with protecting your interests

Our r core e values ues

We work rked ed on their eir transa ansactions ctions

Our r offic ices es

Based in Beijing and Shanghai, we have offices in China and Europe to serve our clients

Paris office square Louvois 75003 Paris Lyons office 55, boulevard des Brotteaux 69006 Lyon Beijing office Suite 2108, Zhongyu Plaza, A6 Gongti north Road, Chaoyang District 100027 Beijing / 北京市 朝阳区工体北路甲6号 中宇大厦2108室 Shanghai office 1468 Nanjing West Road, Jing An District 200040 Shanghai /上海 市 静安区南京西路1468 号中欣大厦3301室

CONTACT

Flor

• ren

ent MANGIN NGIN

Managing Partner, Beijing +86 10 8523 6858 florent.mangin@adamas.com.cn