Private Equity & Consulting Sample Pack

TABLE OF CONTENTS

Fund Raising
LP Presentations
Opportunity Sector Studies
GP Landscaping & Benchmarking
Detailed Investor Profiles

Market Studies
Company Screenings
Target Lists
Company Profiles
One-Page Profile
Detailed Profile
Row Profiles
Buyers’ Lists (Financial Buyers)
Trading and Transaction Comparables

IM and IC Papers
Financial Benchmarking
Debt Maturity Profiles/Debt Instruments Overview
 TABLE OF CONTENTS

Value Creation Planning: Expansion and Market Entry

Value Enhancement Planning: Across Portfolio Companies within a Sector
Industry Newsletters
Part A – Fund Raising Section
 INFORMATION & COMMUNICATION
TECHNOLOGY (ICT) SECTOR

Weightless Increased
Exports Investment
Transforming the delivery of public services
• High Technology Manufacturing
• Physical Devices or Components
Helping businesses internationalize
Demand for Skills Innovation • Software Components (Coding)
• Capital Intensive
Strengthening equity markets

Mobile Developing Attracting foreign investment and supporting

Connectivity Capabilities early stage and growth capital

• Implementation and Administration of IT

IT services generate significant innovation,
Cloud Cyber Security Systems
attract investment in established firms and
Computing /Privacy • Computer System Design and Related Services start-ups, and create wealth and high-skilled
• Labor Intensive employment opportunities
• Low Capital Requirements
Remote
Big Data Professional development and more efficient
Sensing
education management

Rapidly Changing Heavy Capital Opportunities for the government to improve

Technology Investments the environment for firms’ use of intellectual
• Telecommunications Services
property
• Wireless & Wired Infrastructure
Increasing Number of Computer • Highly Capital Intensive
Strengthening high-value manufacturing and
Systems Design Firms service exports
 GROWING ASIAN BANKING REVENUES
AT AN ANNUAL RATE OF 9%

Factors such as :
• Banks’ efforts toward strengthening risk management, rehabilitating
distressed assets, and recovery
• The denominator effect of robust loan growth
• Loose monetary policy and low interest rates
have contributed to the sustained improvement in the system’s reported
asset quality and were less affected during the crisis with above-industry
growth

Note: CET1 – Common Equity Tier 1; CCB – Capital Conservation Buffer; G-SIB – Globally Systemically Important Bank; SAR – Special Administrative Region
IMPROVED MACROECONOMIC CONDITIONS
HAVE FUELED HEALTHCARE DEMAND

• Largest healthcare segment in Africa

• Estimated private investment opportunity:
US$ 5–9BN

• Opportunities exist in generics manufacturing,

medical supplies manufacturing, and
commercialization of infectious diseases
innovations
• Estimated private investment opportunity:
US$ 1.6–2.9BN

• Still in the nascent stage

• Estimated private investment opportunity:
US$ 1.4–2.5BN • Health Services Provision • Health Services Provision
• Diagnostics • Risk Pooling

• Retail is the most profitable sub-sector, with • Risk Pooling • Medical Education
net margins of up to 50%
• Estimated private investment opportunity:
US$ 1.5–2.8BN

• Unavailability of skilled human capital is a

significant barrier to the growth of healthcare
sector in the region
• Capital requirement is relatively high • Health Services Provision • Diagnostics
• Estimated private investment opportunity: • Distribution and Retail • Pharmaceuticals
US$ 1.5–2.8BN • Risk Pooling • Logistics
INVESTMENT IN THE BANKING &
FINANCIAL SECTOR IN ASIA

• Asia is experiencing a steady increase in cross-border investment and

M&As
• Infrastructure finance is expected to be one of the major growth areas
in Asian wholesale banking over the next decade
• Investments worth US$ 7.6TN are expected in Asian infrastructure
from 2010 to 2020, mainly in China and India (90% of the total) and
in energy and transportation (85% of the total)
 CASE STUDY – KKR INVESTS IN
APOLLO HOSPITALS

• Founded in 1976, KKR is a private equity investment firm specializing in
acquisitions, leveraged buyouts, management buyouts, growth equity,
mature, mezzanine, distressed, and middle market investments
• It seeks to invest US$ 30–717MM in companies with enterprise
values between US$ 0.6–2.4BN
• The firm typically holds its investment for a period of 5–7 years
and exits through IPOs, secondary offerings, and sales to strategic
buyers
• Apollo Hospitals Group provides healthcare services primarily in India,
Mauritius, and Bangladesh
• The company’s healthcare facilities comprise primary, secondary, and
tertiary care facilities
• Its presence encompasses over 10,000 beds across 51 hospitals,
more than 1500 pharmacies, over 100 primary care & diagnostic
clinics, 115 telemedicine units across 9 countries, and health
insurance services

• Apollo Hospitals entered into a partnership with KKR to raise INR 550 • The group is aggressively expanding in all its segments and across the
Crores country, and is also planning to add 800 beds in its existing facilities
• The investment is in the form of a 5-year callable security • All its major hospitals have been displaying good growth in revenues
• The group is planning to add 13 more hospitals in India
• The promoters of PCR Investments, the holding company for the
Apollo Hospitals Group, will have the right to buy back these
instruments at the end of 2 years
• KKR has the option to convert this into equity and get a ~4%
stake in Apollo Hospitals after 5 years

• The funds will be used by Apollo Hospitals to partially fund its expansion worth INR 2,400 Crores to build more hospitals over the next 3 years, besides cutting
debt
• The group is planning to add 800 beds in its existing facilities; with this, the group is expected to become a 10,000-bed hospital chain by the end of March 2014
• Furthermore, in its bid to set up 36 premium birthing centers across the country under The Cradle brand, Apollo Health and Lifestyle, the Company’s
subsidiary is planning to spend around INR 400 Crores over the next 5 years
 VALUE CREATION/ENHANCEMENT
PROCESS– PORTFOLIO MANAGEMENT
DIVISION (PMD)

• Network • Research and • Advise Portfolio • Regular • Formulate and

• Refine Existing Analyze Deal Flow Companies on Performance Tune Exit Strategy
Sources • Leading Networks, Strategy Review • Create Liquidity
• Identify New Including Local and • Hands-on • Benchmark Value Event for Investors
Sources Expert Contacts Investment Creation and • Prepare Portfolio
• Pursue Proprietary • Reference Calls Management Progress Company for an
Deal Flow • Value Creation • Leverage Regional • Forecast Cashflow IPO or M&A
• Develop Marketing Analysis Networks for • Risk Management
and PR • Negotiate Terms & Technology
Conditions Import/Export

CSR Healthcare Reporting Platform

Marketing, Branding, Pricing, and Sales Consumer – Staples & Discretionary
Sales Force Effectiveness (SFE), Strategies Portfolio Review Committee Process
Financial Services
Procurement and Supply Review
Energy Knowledge Management Platform
Supply Chain Management and Demand
Industrials
Planning Portfolio Companies Community Portal
IT & Finance Planning Information Technology
Human Resource Management Materials Plug-n-Play ERP
 ASIA-PACIFIC (APAC) ICT FUND TERMS

[Asia-Pacific ICT Fund]

US$ [100–249] MM

2000

ABC Group Investment Management Limited

[xxx]% of the Fund Size

[8] years from the final closing date of the Fund, with an option to extend further for
4 years
[5] years from the final closing date of the Fund

Asia-Pacific (India, China, Singapore, Japan, Thailand, Vietnam, Korea, Australia)

[xxx]% generating a cost multiple in excess of [xxx]

[xxx]% per annum

Same rate; charged on invested capital

[15]%

[10]% per annum compounded

[xxx]%

[xx]

[xx]%

• The ICT Fund for APAC markets is a sector-specific fund focusing on private ICT investments that are commercially viable and consistent with the fund’s
mandate
• A stakeholder approach will be adopted to leverage the private sector in order to expand the R&D capabilities, and quality of ICT products and services
• The fund will target investments in sustainable private ICT companies with the aim of scaling them up and renovating existing businesses
 RMBS AND CMO ISSUANCE SCHEDULES,
AND XYZ II INVESTMENT THESIS

XYZ II is expected to continue on the path laid out by its previous fund, capitalizing on the current dislocation in the real estate market
• Real estate markets, while no longer in free fall, continue to be unstable. Most sectors of the real estate market are “bumping along the bottom”
• There remains a large supply of residential mortgage loans and real property that is financially overextended or in default. It is commonly housed on the balance
sheets of financial institutions, including global, regional, local banks, and special servicers
• The years preceding recession, 2005, 2006, and 2007, saw the height of reckless underwriting and RMBS lending; only now are these loans reaching maturity and
entering maturity default
• The owners of these properties bought at a market high and have equity that is underwater. With values drastically reduced and underwriting standards
tightened, a new loan would typically require the existing borrower to contribute fresh equity
• Owners are often unwilling or unable to recapitalize the assets, which ultimately creates an opportunity for XYZ II investors
 INVESTMENT OPPORTUNITY,
AND XYZ REAL ESTATE FUND – II STRATEGY
• Many banks and financial institutions have spent
the last 2 years writing down the real property
loans on their books and are now ready to divest
those assets and “clean” their balance sheets
• Performing properties are reaching maturity
default and banks are unwilling to re-underwrite
the assets
• Lower property values have resulted in owners
liquidating properties to mitigate losses, thereby
raising capital to forestall additional foreclosures
• Forced liquidations by motivated sellers has
created and will continue to create buying
opportunities for XYZ II
• This process creates buying opportunities
advantageous to us, consistent with our goal of
creating superior financial returns
• Refinancing gap of ~US$ 200.0BN
• Of the total US CRE debt of ~US$ 3.5TN, ~US$ 1.4TN
to mature over the next 5 years
• Relevant assets stand at ~US$ 1.2TN (valued ~US$
2.0TN at the peak of the market)
• Distressed debt selloff by smaller banks at a huge discount to
improve capital ratios
• Half of banks’ originations held by smaller banks (50%
of maturing debt held by banks)
• Employs fresh balance sheet to acquire properties
• Financial re-leveraging
• Reinvests cash flows generated by portfolio properties to acquire
new assets
• Metro focus – acquire properties in New York metro and South
Florida
• NY Tri-State region ranked as one of the top 3 real estate
investment development zones in the U.S. (PwC)*
• Strong local relationships with developers and banks in
the NY Tri-State area and Florida
• Will go after compelling investments opportunities outside
primary focus/region, E.g., XYZ Capital has made investments
in Tulsa and Memphis
U.S. RESIDENTIAL REAL ESTATE PROPERTY
SALES TRENDS
 XYZ REAL ESTATE FUND II–
CAPABILITIES AND PROPERTY
ACQUISITION MODEL

• Capital structure & capital access

• Financial modeling of properties
• Construction management systems
• Operating investment vehicles and funds
• Financial controls & risk monitoring
San Francisco and
Berkeley Asset Classes
• Brokers Insufficient Cash Flows
• Financial institutions Inadequate Revenue Liquidity
Industrial
• Personal networks Problems Negative Collateral
Retail
• Strategic investments High Operational Costs
Multifamily

• Planning, zoning, and permitting

• Restructuring

• Default characterized by insufficient cash flow to service loans arising from poorly modeled properties implies that banks are lenders not owners
• The fund will bring an operational approach to owning office assets and, in addition to growing revenue, will focus on operating buildings more efficiently,
improving the tenant experience, reducing waste, and promoting eco-friendly consumption
• The US$ 250MM fund is targeting properties that can be purchased for less than what it would cost to construct them today
• The fund will then upgrade the properties’ common areas and mechanical systems, as well as funding tenant improvements and leasing commissions
• Projects that had positive economics when conceptualized, but do not make sense in the current environment
• Portfolio properties being sold to create liquidity
XYZ REAL ESTATE INVESTMENT
PARTNERS – FUND TERMS

A limited liability company formed to make

investments in real estate and real estate-related XYZ II Capital Management LLC
opportunities

To achieve superior risk-adjusted returns in excess

US$ 400,000
of 20%

Diversified portfolio of various property types;

Investments may be structured as wholly owned 7% accrued
properties, joint ventures, equity or debt

US$ 50.0MM with a US$ 90.0MM cap 18% of profits, subject to preferred return

6 years from closing date of partnership 1.5%

3 years from the end of investment period,

excluding any extensions

Property level financing is anticipated at 30–70% of

Loan to Value (greater leverage may be employed
in select circumstances)

The principals have committed US$ 20.0MM

 XYZ REAL ESTATE FUND II –
COMPONENTS
OF VALUE ENHANCEMENT

• Acquire undervalued assets: Value defined

relative to cap rates, as measured by the
cash flow situation

• Further enhancement: Assets will lend

Restructuring of
themselves via detailed and value-oriented Financial
management Position

• Facilitate purchase of properties: Capital to

benefit from optimal timing and purchase
of properties from “motivated” sellers at a Develop and
Operate
discount to intrinsic value Operational
Properties
Excellence
Efficiently and
• Property balance sheet financial Effectively
restructuring

• Development and rehabilitation of

properties effectively and efficiently
Cost and
• Cost-conscious management Rental Income Executive
Improvement Talent
Management
• Improvement of rental income

• XYZ Capital will capture the

difference between in-place rents
and market rents
XYZ CAPITAL SAMPLE RETURN
PERFORMA (1/2)
SAMPLE REAL ESTATE RETURN
PERFORMA (2/2)
LOGISTICS SECTOR IN
INDIA – OVERVIEW
 OPPORTUNITY ANALYSIS –
INDIAN LOGISTICS SUB-SEGMENTS
 GP LANDSCAPING &
BENCHMARKING – CLOSED-END
PRIVATE REAL ESTATE FUNDS
DETAILED INVESTOR PROFILES

•
•
•

•
•
•
•
•
•

•
Part B – Initial Screening
MARKET SNAPSHOT

• In 2012, the contract drilling market generated ~US$ 55BN in

revenue, growing at a CAGR of 6% during 2000–12
• The deepwater market accounted for roughly two-thirds of
the market revenue, despite accounting for a relatively small
proportion of the number of offshore wells drilled
• As rig hiring represents ~30–50% of the costs associated
with drilling an offshore well, the market dynamics of
contract drilling are important indicators of well
construction costs
• The contract drilling market is characterized by day rates, utilization,
and fleet size
• Demand for contract drilling is influenced by capital spending
patterns of E&P companies, which, in turn, is based on producers’
expectations of future oil and natural gas prices
MARKET SIZING
VALUE CHAIN ANALYSIS
INDUSTRY OPERATING PROCESS – (1/2)

Yes
Yes (is debt past the statute of
limitation)

No
(has the collector validated the No
debt)
Yes

( is inquiry more than 2 years old)

Sources Yes
credit Yes
reports
( is bankruptcy more than 10
from three
years old)
credit
bureaus: No
Experian, (are there multiple collection
Transunion, accounts on report)
and Equifax

Credit bureaus need to investigate the (is creditor reporting balance even
dispute within 30 days and report the after selling it to collector)
findings (the process might take up to 45 Yes • Credit score monitoring
days if the information is disputed on free • Credit counseling to increase
annual subscription). If customer’s dispute consumer awareness
(has the judgment been paid for or
leads to a change in credit report, customer • Help in establishing new lines
will receive a free and updated copy of his is the judgment > 7 years)
of credit from creditors
credit report
INDUSTRY OPERATING PROCESS – (2/2)

Channel partners are used for the implementation of the scheme as they can easily access its provisions, resulting in reduced transaction
cost and time

Service Providing
Companies (Rescos) install,
own, and
operate RE systems and
provide energy services to
consumers
System integrators provide
RE systems and services to
clients, including design,
supply, integration and
installation, O&M, and other
services to clients
Finance institutions are Central and State
Integrate different financial
institutions that are involved Government Ministries and
sources to design financial
in consumer finance and Departments that directly
products/instruments and
have an established base of implement the scheme and
make them available to their
customers in rural/urban access capital subsidy from
clients at an affordable price
areas MNRE

• Net worth/turnover of the participating entity

• Technical capability for carrying out services, including site selection, feasibility study, design, value engineering, cost
optimization, scheduling, procurement, installation/commissioning, and O&M functions
• Credit rating
• Track record
• Tie-ups with equipment providers

• The use of imported complete PV systems is not permitted under the scheme. However, the use of imported components of a complete PV system is
permitted, subject to adequate disclosure and compliance to specified quality norms and standards
• MNRE channel partners can directly submit their project proposals to the MNRE for the availing of various subsidies and incentives. This enables a quicker
turnaround in the project approval process compared to submitting proposals through the State Nodal agencies
• Channel partners can access a combination of capital subsidy and a low cost interest for the end consumer, by tying up with a lending institution. These lending
institutions could then enter into an agreement for refinance interest subvention with IREDA
 INDUSTRY REVENUE MODELS

Average revenue per app-month, for developers by earnings

INDUSTRY-SPECIFIC TRENDS

• The majority of total exploration spending—more than US$ 80BN

among Western oil majors alone in 2012—is going offshore

• Shallow offshore activity declined ~5% in 2010 from 2000 (in

terms of number of wells dug), led by depleting reserves

• On a production basis alone, known deep and ultra-

deep offshore finds are expected to be producing ~15
million boe of oil and gas a day in 10 years’ time
• This would translate to twice the total U.S. oil output
in 2011

• Ultra-deep wells accounted for more than half of all the world’s new
discoveries in H1 2012
• Reserves added by an average ultra-deep exploration well make them
11.5 times more effective than an onshore rig
• Royal Dutch Shell recently announced plans to develop the world's
deepest offshore oil and gas production project—nearly 3.2 kms down
in the Gulf of Mexico
 GROWTH DRIVERS

• When the unemployment rate is high, fewer

consumers are able to purchase F&I products
• Conversely, with declining unemployment, more
consumers are likely to purchase F&I products

• Over the past decade, the number of vehicle

accidents has fallen steadily, as a result of safety
improvements on roads and in vehicles
• A decrease in vehicle accidents is expected to
result in an increase in industry margins

• The number of registered cars directly indicate the

available market and demand for individual
automotive F&I products
• With increasing trend prevailing in auto sales,
representing a potential opportunity for the industry

JUNE 12, 2013

• Per capita disposable income influences a
consumer’s choice of automobile F&I products
• Income is expected to grow at CAGR of 2.5%
over 2013–18, which would have a positive
impact on the industry
REGULATORY FRAMEWORK ANALYSIS – (1/4)

FDA MARKETING &

DRUG DISCOVERY PRE-CLINICS CLINICAL TRIALS REVIEW SCALE-UP FOLLOW-UP

One FDA Approved

MANUFACTURING
PRE-DISCOVERY

POST MARKETING
5,000–10,000 2,500 MONITORING &

Drug
COMPOUNDS RESEARCH

PHASE I PHASE II PHASE III

3–6 YEARS 6–7 YEARS 0.5–2 YEARS INDEFINITE

Files for Investigational Pre-NDA Meetings with Files New Drug

New Drug the FDA Application

The FDA may The FDA may The FDA

The FDA The FDA
convene choose communicates
Sponsor acknowledges communicates
submits advisory to send discipline course of action to
application filing review and
application committee to review letter sponsor, including
receipt within issues in 74-day
to the FDA solicit expert regarding problems application re-
14 days letter
opinion in the application submission
REGULATORY FRAMEWORK ANALYSIS – (2/4)
• The bill proposed in Ohio in March 2012, states that a man who wants to
buy must meet a sex therapist to discuss his decision
• They must undergo a cardiac stress test to determine drug’s safety
• Anyone serious about taking the drug must visit a notary public and sign a
notarized affidavit that gives the man the right to purchase the drug
• The Illinois legislation proposal requires men seeking an ED drug
prescription to watch a video about the potential side effects of the drug
• The Department of Medical Assistance does not provide reimbursement
for drugs used for treatment of erectile dysfunction for persons who have
been convicted of a sex crime
• The FDA conducts frequent post-marketing surveys to check the side
effects of the drug
• In April 2012, the FDA changed the product label of two drugs, Propecia
and Proscar, to warn against the possibility of erectile dysfunction, after it
was found that these drugs could cause erectile dysfunction symptoms
• The Obama administration proposed to enforce a federal mandate for
health insurance coverage that would apply to many Roman Catholic
hospitals, universities, and social service agencies that insure themselves
REGULATORY FRAMEWORK ANALYSIS – (3/4)

• The law prohibits causing the “introduction or delivery for introduction into interstate commerce of any food, drug, device, tobacco
product, or cosmetic that is adulterated or misbranded”
• The government filed a case against Google for advertisement of fake websites

• The Justice Department filed a case against Google for allowing Canadian pharmacies to advertise drugs for distribution in the U.S.
• Google entered into a non-prosecution agreement with the government over the use of its AdWords program by Canadian
pharmacies that helped them sell prescription drugs in the U.S. in violation of the federal law
• Google agreed to forfeit US$ 500MM, representing its revenue from the Canadian pharmacies, and to enhance its compliance
program for drug advertising

• Legislation targets frauds associated with illegal online drug providers, particularly those who sell fake medications, provide drugs without a prescription or
take money without providing anything in return
• The bill requires the FDA to establish a registry of legitimate online pharmacy websites and create a federal definition of a legal prescription
• The FDA is now teaming up with a host of internet stakeholders as part of a stepped-up effort to curb illegal online pharmacies, agency and industry officials,
providing an opportunity for new legitimate online pharmacies
REGULATORY FRAMEWORK ANALYSIS – (4/4)

• In order to fight against the sale of fake Viagra, the European

Parliamentary Committee for Health initiated a new set of
regulations for the sale of all drugs not only in shops but also on
the internet
• According to the new regulation, certain medications will require a
special seal so they can't be tampered with

• Viagra appears to dominate the counterfeit market for medicines in

Japan
• The country has worked to streamline and strengthen its regulatory
system by amending its Pharmaceutical Affairs Law, which now
includes a risk-based classification for products, revised
manufacturing controls, quality assurance standards, and increased
post-marketing surveillance
 COMPETITIVE BENCHMARKING

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xx.x

140
xx.x

120 xx.x

xx.x
100

80

60
Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13

2.5

2.0 Other Investment Holding

Companies
1.5 Traditional Investment Holding Companies Average: xx.x
Average: xx.x
1.0

0.5

0.0

AB

AD
AA

GG
DD

RR

AC

AE
BB

FF

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CC

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II
COUNTRY COMPETITIVE BENCHMARKING
COMPANY SCREENING/CONFERENCE LISTS
POTENTIAL TARGETS LIST
 COMPANY PROFILE – TESCO PLC

• Founded in 2000, Tesco engages in retailing and associated activities in the

UK, the Czech Republic, Hungary, Poland, Ireland, Slovakia, Turkey, China,
Malaysia, South Korea, Japan, and Thailand
• Tesco operates under multiple formats, including online, hypermarkets,
superstores, supermarkets, convenience stores, and department stores
• Tesco operates in two segments:
• Retail and Associated Activities: Selling food and grocery items,
non-food items, and clothes—both in stores and online
• Retail Banking and Insurance Services: Through Tesco Bank
• Headquartered in Hertfordshire, England, the company’s shares are listed
on the London Stock Exchange (ticket symbol: TSCO)

• Philip Andrew Clarke, CEO

• Laurie McIlwee, CFO
• Mike McNamara, Chief Information Officer
• – Acquired 33 convenience stores from Alfred Jones, an
operator of Spar stores through Tesco
DETAILED COMPANY PROFILE – OVERVIEW

• Founded in 1925, Caterpillar designs, manufactures, markets, and sells

machinery and engines to customers globally

• Business lines include Machines, Used Equipment, Engines,

Electronics, Technology, Turbines and OEM (Original Equipment
Manufacturer), and Financial Services
• Distributes products to customers in about 200 countries,
through a global network of almost 250 dealers
• It maintains a large global customer base, operating manufacturing,
marketing, logistics, service, R&D, and related facilities, along with more
than 500 dealer locations worldwide
• Its subsidiaries include Caterpillar Financial Services Corporation;
Caterpillar Insurance Holdings, Inc.; and Caterpillar Logistics Services,
Inc.
 KEY BRANDS

• •

Manufactures hydraulic hose Provides undercarriage products to the Equipment for rent by concrete, Lending for purchasing and
assemblies for OEMs and general excavator and bulldozer industries paving, landscaping, general, equipment, trucks, and trailers
market construction, etc.

Manufactures snow plows and Financial and insurance solutions

parallel lifts

• •

Remanufactured parts for machines

New, remanufactured and processes and engines for industrial, automotive,
Generator sets to fit a wide range of Auxiliary engines for navigational to recycled locomotives, rail cars, etc.
business needs equipment, lighting, and pumps used rail components, etc.

Major supplier of off-highway diesel Logistical solutions for planning and

and gas engines project management solutions
BUSINESS SERVICES

Manufacture, development, and product management of engines

supplied to the electric power, petroleum, and industrial sectors

Marketing, sales, and product support of tractors loaders and pipe

layers

Development, marketing, sales, and product support of small,

medium, and large excavators; wheel excavators; and trucks

Marketing, development, sales, and product support for mining

trucks, underground mining equipment, and boring equipment
Development of excavators, and marketing, sales, and product
support of machinery, engines, and components in Japan

Includes operating and finance leases, installment sale contracts,

working capital loans, and wholesale financing plans

Development, manufacture, marketing, sales, and product support

of generators used in the electric power generation industry

Development, manufacture, marketing, and product support of

specialty products, barstock components, and ground engaging tools

Development, manufacture, marketing, sales, and product support

of light construction materials

Service business division that looks after logistical services for

Caterpillar
Product management, marketing, sales, and development of power
engines supplied to the marine and petroleum industries
KEY FINANCIALS
NUMBER OF DISTRIBUTORS
NUMBER OF DISTRIBUTORS
ANNOTATED STOCK PERFORMANCE
 KEY EXECUTIVES

• Appointed Chief Executive, Global Banking and Markets, in 2011 • Joined HSBC Group as Group Finance Director-Designate in 1995
• Started as Head of Fixed Income Trading, Europe, and Head of Global • Appointed Chief Financial Officer and Executive Director – Risk and
Markets Regulation

• Appointed President and CEO of HSBC USA in 2011 • Formerly served as the Chairman of Europe, Middle East, and Global
• Formerly served as President and CEO of HSBC Bank USA, NA Businesses of HSBC
• Appointed Chief Executive of Global Banking and Markets, and HSBC
Global Asset Management in May 2006

• Appointed Chief Executive of Retail Banking and Wealth Management in

January 2013
• Joined the HSBC Group in 1989 with positions held in Hong Kong, • Joined as Chief Financial Officer of HSBC North America Holdings Inc.
Singapore, and Indonesia in 2007
• Earlier Served in General Electric as Controller of the Global Consumer
Finance unit

• Has been in the current role since 2011

• Joined HSBC in the International Division of Midland Bank in 1981
• Serves as the President and Chief Financial Officer of Oracle Corporation
• Earlier served as the Managing Director of Donaldson, Lufkin & Jenrette
SHAREHOLDER ANALYSIS
 OUTLOOK

• Caterpillar to fully acquire the outstanding

shares of Bucyrus International; synergy benefits are expected to
noticeably add to operating profit in 2013 and are expected to exceed US$ “The Company has good visibility into H1 raw
400MM annually in 2015 material costs, and if inflation continues, CAT has
• The company expects capital expenditure
several options, including mid-year price increases”
for 2011 to be about US$ 3BN—with more than half in the U.S.
“The company is more keenly focused on market
• It expects to produce about 60% more share this cycle versus prior cycles and is targeting the
excavators in China in 2011 than 2010; the company expects to increase #1 share position in China by 2015”
excavator production to about 24,000 units in China by 2013, which is
~4x increase from 2010

“We forecast CAT Engine sales growth of 11%/

8%/ 7% in 2015/ 2016/ 2017 driven by solid Oil
& Gas capex, Electric Power demand Latin America
and Asia, and inventory restocking in Industrial
engine markets”

Jefferies Jefferies

ISI Group ISI Group

Robert W Braid Robert W Braid

Credit Suisse Credit Suisse

Citi Citi

Raymond Raymond
 DETAILED COMPANY PROFILE –
OVERVIEW

• Founded in 1995 and based out of Pune, India, Suzlon Energy

manufactures wind turbines and turnkey wind power solutions
• The company manufactures generators, rotor blades, control systems,
towers, nacelle assembly, hub castings, and transformers for wind turbines
• The company offers products such as sub-megawatt, megawatt, and multi-
megawatt turbines with capacity from 600kW to 2,250 kW for onshore
and offshore applications
• It is present across 33 countries in Asia, Australia, Europe, Africa, and
North and South America, with over 24,405 MW of wind energy capacity
installed, and a workforce of over 13,000

• It also operates as the world’s fifth-largest wind turbine supplier, in

terms of cumulative installed capacity and global market share of
7.6%
• Suzlon also produces the world’s largest commercially available offshore
turbine at 6.15 MW

TULSI R. TANTI Chairman & Managing Director

Fiscal Year End 31-
Share Price 4/28/2014 INR 14.35
LTM Revenues 3,446.6 SILAS ZIMU Chief Executive Officer
LTM High/Low INR 15.6/5.7 LTM EBITDA 175.1
LTM EBIT (311.2) V. V. RAO Chief Quality Officer
Equity Value 84.2 LTM Net Income
(868.7)
LTM EV 2,562.4 (NI) AMIT AGARWAL Chief Financial Officer
LTM EV/Revenue 0.89x LTM EBITDA
(5.1%)
LTM EV/EBITDA NA Margin
GIRISH R.TANTI Non-Executive Director
LTM P/E NA LTM EBIT Margin (9.0%)
 PRODUCTS AND SERVICE OFFERINGS
• Rated power capacity of 2,100 kW
• Rotor diameters of 95 m & 97 m, and Swept
area of 7,085 m2 and 7,386 m2
• Wind Class: IIA (medium wind speed sites) &
IIIA wind sites (low wind speed sites), with
rated wind speed of 11m/s
• Hub Heights: 80, 90, and 100 m
• Generator frequency of 50 & 60 Hz
• Availability: India, China, Brazil, South Asia,
MENA, North America
• Includes two turbines: S95 and S97
• Rated power capacity of 1,250 kW
• Rotor diameter of 66 m, and Swept area of
3,421 m2
• Wind Class: IIIA wind sites, with rated wind
speed of 12 m/s and survival wind speed of
52.5 m/s
• Hub Height: 74.5 m
• Generator frequency of 50 Hz
• Availability: India
• Comes with pitch-regulated blade operation,
a three-stage gearbox with 1,390 kW rating
• Rated power capacity of 2,100 kW
• Rotor diameter of 88 m and Swept area of
6,082 m2
• Wind Class: IIA wind sites, with rated wind
speed of 14m/s and survival speed of 59.5m/s
• Hub Heights: 80 m and 100 m
• Generator frequency of 50 & 60 Hz
• Availability: 11 countries
• Comes with pitch-regulated blade operation, a
three-stage gearbox with 2,310 kW rating
• Rated power capacity of 600 kW
• Rotor diameter of 52 m, and Swept area of
2,124 m2
• Wind Class: IIA wind sites, with rated wind
speed of 13 m/s and survival wind speed of
59.5 m/s
• Hub Height: 75 m
• Generator frequency of 50 Hz
• Availability: 11 countries
• Comes with pitch-regulated blade operation, a
three-stage gearbox with 2,310 kW rating
• Rated power capacity of 1,500 kW
• Rotor diameter of 82 m and Swept area of
• Wind Class: IIIA wind sites, with rated wind
• Hub Height: 76.8 m
• Generator frequency of 50 Hz
• Availability: 11 countries
• Comes with pitch-regulated blade operation,
a three-stage gearbox with 2,310 kW rating
• Construction and management of customized
wind farms
• Assistance in identifying and acquiring land,
and obtaining clearances and permissions
• Identifying sites with high wind potential, and
micrositing (assessing wind patterns to
determine their optimal positions)
• Creating infrastructure for wind farm
• Erecting and commissioning wind turbine
• Value-added services and solutions for
operations and maintenance of turbines
MANUFACTURING FACILITIES
KEY FINANCIALS

(
ANNOTATED STOCK PERFORMANCE
 ORDER BOOK AND CORPORATE DEBT
RESTRUCTURING (CDR)

• CDR process completed in April 2013

• Payment of US$ 360MM to
• CDR completion to help the company improve its execution ability from
the FCCBs*, after Suzlon had
• FCCB extension failed FY15 onward
raised US$ 500MM in 2008
• Filed for US$ 1.8BN CDR

• The CDR package includes the following:

• 2-year moratorium on principal and term-debt interest payments
• ~3% reduction in interest rates
• 6-month moratorium on working capital interest
• Enhancement of working capital facilities by US$ 350MM
• US$ 270 MM interest during moratorium to be converted into equity over the next 2 years
• The promoters are required to bring in equity to the extent of INR 250 Crores into the company in a stipulated time frame
• INR 125 crores has already been infused
 CORPORATE TIMELINE

• Starts the operations of Suzlon • Secures its first QIP • Acquires 100% of Eolica Faisa
• Incorporates Suzlon Rotor Corporation in
Energy Australia Pty Ltd • Completes 1st and 2nd • Additional secondary share offering of
the U.S.
• Opens Representative Office in FCCB issues of US$ 37MM shares for INR 1.0BN on NSE,
• Launches an IPO for 29.3 MM shares
Beijing 300MM and US$ 200MM, India
• Crosses 50% market share in India
• Signs up MSPL's 3.75 MW Wind respectively • The North American Subsidiary,
• Announces acquisition of Hansen
Power Project • Suzlon Wind Energy Suzlon Wind Energy Corp., opens a
Transmission International NV, Belgium
• Crosses 600 MW installation mark Corp. secures a deal with 4,000 sq. ft. lab & an 8,000 sq. ft.
• Signs Framework Agreement with Edison
• Germanischer Llyod type certifies Edison Mission Group, training center
Mission Group for 157.5 MW
Suzlon’s S64-1.25 MW (65 m hub California, and Horizon • Sells Eolica Faisa to a consortium led
• Signs contract with Guohua Xilinguole
height) & S66-1.25 MW (75 m hub Wind of Houston, Texas by Banco Votorantim for US$
New Energy & Source, China, for 50 MW
height) capacity models 299.4MM

• Opens Asia’s first Rotor Blade test facility at Vadodara,

• Incorporates Suzlon Energy A/S, Denmark
Centre for Wind Gujarat
• Incorporates Suzlon Structures Pvt. Ltd and • Receives ISO/IEC
Energy Technology • Incorporates Suzlon Energy Forge Ltd to cater to foundry
Suzlon Generators Pvt Ltd to manufacture • 27001:2005 certification from
(C-WET) type test and forging of hub casts and other allied components
Tubular Towers and Wind Electric • Bureau Veritas Certification
certifies Suzlon • Signs contract with British Petroleum for 40 MW in
Generators, respectively (India) Pvt. Ltd.
Energy Ltd. S60- Maharashtra, India
• Sets up Suzlon Control System – MBU
1000 KW capacity • Signs contract with SIIF Energies do Brasil Ltd for 224.7 • Sells Suzlon Energy Tianjin Co to
operations at Daman, India
model MW China Power Tianjin New Energy
• BTM Report - 2004 ranks Suzlon Energy 6th
• Secures an order from John Deere Wind Energy, U.S., for Development Co. for US$ 59.6MM
in the top 10 manufacturers in the world
247 MW • Suzlon Brazil sets up its first Panel
• Germanischer Lloyd type certifies Suzlon
• Suzlon Energy Australia Pty Ltd signs contract with and Hub facility in Maracanau,
Energy’s S66-1.25 MW (65 m hub height)
Australia Gas & Light Company to build Australia's Brazil
capacity model
largest wind farm
 RECENT NEWS & DEVELOPMENTS

Signed contracts for 370 MW during Q4 FY 2013–14, to supply turbines for REpower Systems entered into an Engineering, Procurement, and
new wind farms in countries such as Germany, the UK, India, Belgium, and Construction contract with Mitsui & Co (Australia) Ltd. to deliver 52 wind
others in Europe turbines totaling a rated output of 106.6 MW

Announced plans to sell INR 10,000MM (or US$ 165.5MM) of noncore assets REpower Systems announces the changing of its name to Senvion SE from
in order to cut debt 2014

Announced the strategic sale of the 240 MW Big Sky Wind Farm in Illinois to Won a new 65 MW contract in Uruguay for 31 units of S95 – 2.1 MW turbines;
EverPower Wind Holdings; The Big Sky Project utilizes 114 Suzlon 2.1MW the project is developed by Rouar SA, a joint venture wind SPV supported by
S88 turbines to generate enough electricity annually for ~50,000 homes state-owned companies from Uruguay and Brazil

Senvion SE, a wholly owned subsidiary of the Suzlon Group, signed an Entered into an agreement with China’s Poly LongMa Energy (Dalian) Ltd to
agreement with a consortium of banks headed by BayernLB, Commerzbank divest its 75% stake in its China-based manufacturing subsidiary – Suzlon
Aktiengesellschaft, and Deutsche Bank AG for syndicated working capital Energy Tianjin Limited (SETL) – for US$ 28MM
facilities of EUR 850MM for 3 years

Acquired Big Sky wind park, consisting of 114 S88 turbines, from Edison Suzlon Group’s UK subsidiary, REpower UK, signed 4 new onshore turbine
Mission Energy, and in return, waived the US$ 228MM loan owed by Edison, contracts totaling 58 MW of capacity, to supply turbines for new wind farms in
due in October Aberdeenshire, Scotland; Suffolk in the South East of England

REpower Systems SE, a wholly owned subsidiary of the Suzlon Group, signed The group’s wholly owned subsidiary, AE Rotor Holding, completed a US$
contracts to deliver 103 wind turbines totaling over 266 MW capacity for 24 647MM 5-year bond issue with a 4.97% coupon, rated at Baa2 by Moody’s; the
community wind farm projects in the Schleswig-Holstein region of Germany funds raised will be used to refinance existing US$-denominated foreign
currency debt of the issuer and its subsidiary
 ROW PROFILES

• Regular public
• Preschool Speech and Language Services • Revenues –
school districts
System $100MM • It delivers
• John Swett School
• Home Activities for Children • EBITDA – 500,000
District (CA)
• Individual Therapy $20MM sessions to
• Medford School
• Group Therapy • Market Cap – K-12 students
District (OR)
• Auditory Discrimination and Processing $200MM annually
• Desoto Schools
• Vocabulary and Concept Development • Employees – 50
(FL)

• Early Instructional Games • Saint Paul Public • Revenues –

• Early Vocabulary Schools $100MM • The company
• Expressive Language • Metropolitan • EBITDA – caters
• Syntax Training School District of $20MM specifically to
• Parent/Caregiver Education Programs Lawrence • Market Cap – school
• Consultations with parent(s), daycares, schools, Township $200MM healthcare
and other agencies • Employees – 50

• Revenues –
• The company
• California Virtual $100MM
• Online Speech Therapy is only
Academies (CAVA) • EBITDA –
• Online Occupational Therapy (OT) focused on
• Washington Virtual $20MM
• Online Behavior and Mental Health Services providing
Academies • Market Cap –
• Online SPED Instruction solutions for
(WAVA) $200MM
Autism
• Employees – 50
BUYERS’ LIST (FINANCIAL BUYERS) –
(1/2)

• Specializes in recapitalizations of private companies, industry

• Niche
buy and build strategies, management buyouts, growth
manufacturing
initiatives, family succession transactions, and corporate spin- • US Up to
• Distribution
offs of lower middle market companies • Canada US$ 300MM
• Service
• Current investments: Maple Leaf Automotive that designs and
companies
manufactures replacement parts for the automotive aftermarket

• Business
• Specializes in management buyout, leveraged recapitalization,
services
growth, late venture, and acquisition transactions of lower
• Healthcare,
middle market companies • US US$ 15–35MM
Life sciences
• Current investments: Qualitor, which manufactures and supplies
• Manufactured
automotive and heavy-duty replacement parts
products

• Specializes in equity and debt investments in acquisitions,

turnaround, special situation transactions, private businesses,
lower mid-market, publicly traded companies, and middle • Retail
market growth companies US$ 50MM– • Digital media
• Globally
• Current investment: Vari-Form, which manufactures hydro- 5000MM • Marketing
formed components to OEM in the automotive industry • e-Commerce
Fluid Routing Solutions: Manufactures and markets fuel
systems and automotive hoses
BUYERS’ LIST (FINANCIAL BUYERS) –
(2/2)

• Specializes in venture capital, growth capital, mid venture, late

venture, middle market, and leveraged buyout transactions in small
• Globally
and midsized enterprises • Transportation
• Focus on Minimum of US$
• Current Investments: Ateliers des Janves, which engages in forging • Automotive
Europe and 0.7MM
and manufacturing steel components for the automotive and railway components
the U.S.
industries; Deville ASC, which manufactures automobile components
for safety products such as belts, airbags, and seats

• Specializes in management-led buyouts, divestitures, strategic

• Industrials
minority equity investments, equity private placements, consolidations
• Globally holds 14% of
and buildups, leveraged finance, and venture and growth capital
• Focus on the the total
financings
Americas, equity
• Current Investments invested by
which US$ 15–35MM
• Edscha AG, which manufactures and supplies convertible roof constitutes the group
systems and hinge systems for motor vehicle manufacturers 66% of the • Automotive
total AUM and light
• Metaldyne, which offers metal-formed components and
truck markets
assemblies for engines, transmission, and driveline applications

• Specializes in venture capital investing, development capital,

incubation, and buyouts in incubation, early, middle, and later stages • Information
• Asia Pacific
companies Technology
• Europe
• Current Investments: Asti, which offers electrical equipment for the US$ 10–25MM • Automotive
• North
automotive industry in Japan; TS TECH, which manufactures components
America
automobile seats and interior components, primarily in Japan, North • e-Commerce
America, and China
 TRADING COMPARABLES

SCHLUMBERGER
USD 81.33 USD 107,614 USD 113,784 2.61x 2.49x 2.25x 10.0x 9.2x 8.0x 17.5x 17.0x 14.2x 3.0x 2.8x 2.4x
LTD

ILALLTURTON CO USD 45.19 USD 42,072 USD 45,508 1.59x 1.53x 1.40x 8.2x 7.3x 5.9x 22.3x 14.4x 11.3x 2.7* 2.5x 2.1x

BAKER HUGHES
USD 47.43 USD 21,014 USD 24,999 1.17x 1.12x 1.03x 7.2x 6.4x 5.3x 21.0x 16.0x 11.5x 1.2x 1.2x 1.1x
INC
WEATHERFORD
USD 13.96 USD 10,717 USD 19,625 1.26x 1.22x 1.11x 7.6x 6.8x 5.6x NM 17.4x 10.9x 1.4x 1.2x 1.1x
INTL LTD

FUGRO NV-CVA EUR 45.80 USD 5,152 USD 6,920 2.40x 1.95x 1.80x 11.1x 9.3x 8.2x 13.3x 12.3x 12.4x 1.9x 2.3x 2.1x

CGG CUR 19.03 USD 4,470 USD 6,491 1.71x 1.47x 1.37x 5.4x 4.5x 4.0x 26.3x 13.7x 10.5x 1.4x 1.2x 1.1x

PETROLEUM GEO-
NOK 79.35 USD 2,933 USD 3,666 2.40x 2.20x 1.92x 4.6x 4.0x 3.4x 11.2x 9.5x 7.5x 1.5x 1.4x 1.1x
SERVICES

ION GEOPHYSICAL USD 6.15 USD 965 USD 1,032 1.90x 1.72x 1.54x 6.2x 4.3x 3.5x 17.0x 14.9x 11.0x 2.1x NA NA

Mean 1.88x 1.71x 1.55x 7.5x 6.5x 5.5x 18.4x 14.4x 11.1x 1.9x 1.8x 1.6x
Median 1.80x 1.63x 1.47x 7.4x 6.6x 5.4x 17.5x 14.7x 11.2x 1.7x 1.4x 1.2x

NATIONAL
USD 70.17 USD 29,982 USD 31,867 1.45x 1.42x 1.30x 7.7x 7.7x 6.7x 13.0x 13.1x 11.1x 1.5x 1.4x 1.2x
OTHVELL VARCO

KENNEL CORP LTD SGD 10.35 USD 14,718 USD 22,199 2 34x 2.23x 2.02x 15.1x 13.4x 12.2x 11.2x 12.4x 11.4x 2.1x 1.5x 1.4x

CAMERON
INTERNATIONAL USD 59.30 USD 14,595 USD 15,598 1.72x 1.57x 1.35x 11.2x 10.0x 7.6x 20.0x 17.0x 12.5x 2.2x 2.0x 1.7x
CORP
FMC
TECHNOLOGIES USD 53.30 USD 12,627 USD 13,909 2.10x 2.00x 1.76x 17.3x 14.3x 11.0x 29.6x 24.2x 17.7x 6.7x 5.6x 4.5x
INC
SEMBCORP MARINE
SGD 4.55 USD 7,481 USD 6,602 1.89x 1.58x 1.25x 13.2x 10.8x 8.7x 18.1x 16.4x 13.9x 3.9x 2.7x 2.4x
LTD
DRESSER-RAND
USD 60.87 USD 4,636 USD 5,646 1.11x 1.63x 1.50x 12.5x 10.7x 9.0x 22.3x 18.8x 14.8x 4.1x 3.6x 2.9x
GROUP INC
Mean 2.25x 2.05x 1.78x 13.2x 11.4x 9.3x 20.4x 18.0x 14.1x 3.3x 2.7x 2.3x
Median 2.00x 1.76x 1.58x 12.8x 10.7x 8.8x 20.5x 17.3x 13.5x 2.8x 2.4x 2.1x
 TRANSACTION COMPARABLES

Hyundai Provides civil engineering, architectural,

Hyundai industrial, and electrical engineering
3/4/2011 Engineering & 4,436.4 South Korea 7,601.5 34.9% 1.42x 22.9x 24.5x 13.0x 1.4x
Motor services
Construction
Nihon Manages residential and office buildings;
11/16/2009 Relo Holdings also operates in real estate 21.6 Japan 310.3 8.7% 0.38x 18.9x 24.7x 14.2x 2.0x
Housing
Constructs air-conditioning and
Kawasaki sanitation facilities in commercial,
3/10/2008 Kandenko 6.2 Japan 31.2 49.8% 0.06x 4.1x 5.8x 8.9x 0.7x
Setsubi Kogyo industrial, and institutional buildings
Manufactures mechancial engineering,
1/25/2006 AF AB - electrical, communications systems, and 23.7 Sweden - 12.6% 0.63x 10.8x 16.9x 19.2x 2.4x
control systems
Mean 0.62 14.2 18.0 13.8 1.6
Median 0.51 14.9 20.7 13.6 1.7

Manufactures polyurethane
Seaprodex
thermal insulation panels and
6/14/2013 Refrigeratio Taisei Oncho - Vietnam 8.5 20.0% - - - 4.1x 0.5x
accessories, and provides HVAC,
n Industry
electrical services, etc.
Offers civil, mechanical, electrical,
Murray & Coronation
mining, and process engineering;
5/9/2013 Roberts Asset - South Africa 857.0 10.4% - - - 14.5x 1.7x
and general building, construction,
Holdings Management
and infrastructure services
Mean 14.8x 1.3x
Median 14.5x 1.7x
Consolidated Mean 0.49x 11.1x 13.9x 13.4x 1.3x
Consolidated Median 0.34x 8.6x 12.2x 13.1x 1.4x
Part C – Due Diligence
 IM AND IC PAPERS –
INVESTMENT SUMMARY

▪
▪
▪
▪
▪

▪ ▪
▪
▪
IM AND IC PAPERS
FINANCIAL BENCHMARKING

Copper products

Cathode copper
Copper rods

Brass processing

Cathode copper
Copper rods & wires
Other copper products

Enameled copper wires

Copper wires
Copper rods

Copper and CCA wires

Copper anode
Refined copper rods
DEBT MATURITY PROFILES – (1/2)
DEBT MATURITY PROFILES – (2/2)
DEBT INSTRUMENTS OVERVIEW – GE

39
GECC U.S. market share
29 25 down from 5.1% in ‘07 to
26 25
24 ~2.1% at Q1’14

49 55
53

241 234 242

30 30 29

ISSUANCES ~8

MATURITIES
CALLED

2007 2008 2009 2010 2011 2012 2013 2014E

SHARE OF US$
4.6% 2.8% 1.8% 1.8% 1.6% 1.5% 1.1%
ISSUANCE

~US$ (150)BN OF NET NEGATIVE SUPPLY OVER 2010–2014

Part D – Portfolio Management/Consulting
DISTRIBUTION OF Z-MART STORES

• Z-mart’s existing locations are in a cluster of

states

• While Central India is the center of activity, the

other states are in proximity as they share
borders

• In alignment with Z-mart’s existing cluster

strategy, there are four other high-growth states
that share their borders and fit well into Z-mart’s
expanded business cluster
Z-MART’S EXISTING VS. PROPOSED
LOCATIONS

Most proposed locations are ‘similar’ to Z-mart’s existing locations in terms of store penetration, population, and store count

Size of the bubble denotes the number of key competitors’ 2 stores in the locations
IMPROVING REGIONAL DEMOGRAPHIC
AND ECONOMIC STATISTICS

▪ India’s the third-largest state

by land area (~11% of total)

▪ The fifth-largest total service

and sales workforce in India

▪ Ranks sixth in terms of

labor workforce

▪ The fourth-highest
population growth rate
(CAGR: ~2% over 2008–
12)

▪ Ranks seventh in terms of

mean monthly household
income among peninsular
states
▪ Reported a CAGR of
~5% between 2007 and
2009
 VALUE ENHANCEMENT PLANNING –
PORTFOLIO COMPANIES ACROSS THE TMT
SECTOR
US&C U.S. & Canada
CA&M Central America & Mexico
S.AM South America
EU Europe
M.E Middle East
SE.AS South East Asia
ROAS Rest of Asia
AF Africa
 M&A NEWSLETTER – (1/2)

• The Nikkei 225 Index

130 gained 3.4% over the 12
120 months ending
September 30, 2013, while
SHARE VALUE (REBASED)

110
the FTSE 100 closed
100 4.4% lower over the same
90 period

80 • Comparatively, the
NIKKEI 225 FTSE 100 NASDAQ COMPOSITE S&P 500 INDEX Nasdaq Composite Index
70
INDEX and the S&P 500 Index
60 outperformed Japan and
UK markets, gaining
50
Oct 2012 Nov 2012 Dec 2012 Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013
21.1% and 16.4%,
respectively

1,800
1,600
1,400
NUMBER OF DEALS

1,200
1109 794 711 733
1,000 823 945 739 615 578
767 888 498 538 610 656
800 738 679 665 569
705 693 668
562 492 474 585
600
445
400
755 784 678 714 702 719
628 585 574 673 622 622 641 595
200 552 420 509 426 469 454 442 468 540 517 476
408 316
0
Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3

2007 2008 2009 2010 2011 2012 2013

MERGER/ACQUISITION PRIVATE PLACEMENT

 M&A NEWSLETTER – (2/2)

• During Q3 2013, 1,251

Qtr3 M&As and private Qtr3 4.0 9.9
27% 66% 6%
placement transactions
Qtr2
27% 65% 6% were announced, Qtr2 4.4 10.0 34.5

reflecting the same deal

Qtr1
24% 68% 6% activity as in Q2 2013, Qtr1 4.2 7.6 21.4

Qtr4
when 1,251 deals were
Qtr4 5.1 13.6 41.9
22% 67% 7% announced
Qtr3
27% 65% 6% • Private placement Qtr3 3.7 7.9 52.5

Qtr2 activity increased with

28% 63% 7% Qtr2 5.0 11.6 34.8
656 transactions
Qtr1 announced during Q3
28% 64% 6% Qtr1 10.5 41.5
2013, an 8% increase
over the volume in Q2
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000
2013
TOTAL DEAL VALUE (CDN $BS)
UNDISCLOSED UNDER $50M

ANNOUNCED TARGET
DATE

NorthWest acquired a portfolio of 3 private hospitals from Rede D'Or Ltda. for
~US$ 205MM in cash; concurrent with the sale, Rede D'Or Ltda. will enter into a
fully net, 25-year leaseback for each of the three properties with an initial annual
rent of US$ 19.5MM, representing an average 9.5% initial cap rate

The Toronto-Dominion Bank acquired 50% of Aeroplan’s credit card portfolio; it

expects to acquire ~550,000 cardholder accounts, representing about US$ 3BN in
card balances and US$ 20BN in annual retail spending

Dafiti, a Rocket internet-backed fashion commerce site based in Brazil, received

funding of US$ 70MM from Ontario Teachers' Pension Plan, a Canadian
investment fund; Dafiti will use the funds to keep building its business, including
product assortment, and further strengthen customer service
 FOUNDERS & KEY MANAGEMENT
• Investment Director & Head of BD, Gaia Renewable Capital
• Director, Business Development, Copal Partners
• Hedge Fund Strategies Group, Goldman Sachs
• Harvard Business School, OPM 50
• B.Sc. Electrical Engineering, Villanova University
• Investment Banker, Merrill Lynch, UBS and Atlas Advisors
• MBA, INSEAD
• B.Sc. Finance, The Wharton School, University of Pennsylvania
• Country Head, Copal Partners, India
• Vice President, Genpact & JP Morgan
• Investment Banker, Credit Suisse & Lazard
• MBA, Darden Business School, University of Virginia
• B.A. Economics, St. Stephen’s College
• Engagement Manager, Copal Partners
• Equity Research Analyst, Standard & Poor’s, ING Barings, and
Prudential Securities
• MBA, Columbia Business School
• B.A. History, Trinity College
 ADVISORS

• Balyasny Asset Management L.P., Chief
Operating Officer
• SECOR Asset Management, Partner and
Chief Operating Officer
• Plural Investments, CFO/COO
• SAC Capital,LLC, Director of Operation
• Goldman Sachs & Co., Vice President
• B.A. Accounting, Villanova University
• M Science LLC, Chief Executive Officer
• Investment Technology Group (NYSE:
ITG), Executive Committee, Head of
Research, Sales & Trading
• RBC Capital Markets, Managing Director,
Head of Technology Trading, Market
Structure, & Sales Trading
• Previously with Lehman Brothers
• Member, Young Presidents Organization
(YPO)
• B.S., Accounting, Binghamton University -
School of Management
• Vice Chairman of ATCO Group
• Director of Honeywell Turki Arabia
Limited, Keller-Turk Co Limited,
National Air Services and Al Sagr Saudi
Insurance Co, Wi-Tribe (Bahrain), & Al
Sagr Company for Cooperative
Insurance
• Member of the Audit Committee of Al-
Zamil Industrial Investments Co

• Chairman of the UAE-based Intercat Group • Founder of DotAlign

• Board of the ‘Young Arab Leader’ organization, Dubai
• Founding member and first elected President of the
Young Entrepreneurs’ Organization in the UAE
• Chemical Engineering, University College London
• Previously CEO and Founder of DealMaven
• Director of Operations for Investment Banking at
FactSet
• Previously with Donaldson, Lufkin & Jenrette
• Bachelor’s degree from The Wharton School,
University of Pennsylvania