HONG KONG/CHINA

Bosideng International
A warm and cosy stock
A dominant brand with household recognition
We initiate coverage on Bosideng with an Outperform, with 35% upside to our target price. Bosideng dominates China’s down jacket market with an estimated 37% market share in CY10. Its top brand is ranked the 13th most valuable consumer brand in China. We expect core revenue CAGR of 13% in FY12-14 on the back of continued penetration of down jackets in China. Additionally, Bosideng is building out a menswear business. While this makes up only 10% of revenues in FY12E, we expect it to generate organic revenue CAGR of 33% with the potential for further upside from acquisitions.

High free cash flow and dividend yield
Photo taken by the report’s lead analyst in rural China. “A Christmas to remember” – December 2010

3998 HK
Price 27 Oct 11 12-month target Upside/Downside Valuation
- PER

Outperform HK$2.07
HK$ % HK$ 2.80 35.3 2.80

Bosideng is currently sitting on HK$2.8bn net cash and we forecast a free cash flow yield of 6% in FY12, rising to 10% in FY14. With a 75% payout ratio, Bosideng should generate a dividend yield of 8% in FY12. Bosideng is looking to make acquisitions in the highly fragmented menswear market. Past acquisitions have been successful and we don’t think it is likely the company will make any acquisition that depletes more than half of the cash pile at most; thus we think the dividend is secure.

Market concerns are overdone
Six out of nine analysts covering have a Neutral or Underperform (including the two international houses). We think the market’s concerns are overdone. The first major concern is competition but we think Bosideng has a strong and differentiated brand vs. domestic challengers. Importantly, foreign competitors have much less brand power than in the sportswear sector, where foreign brands endorsed by world superstars have hammered domestic plays. Secondly, NP growth should be 4% and 2% in FY12 and FY13 as Bosideng’s tax rate normalises up to 25% but we think the market will soon re-focus on the low teens EBIT growth. Seasonality is very high with 74% of revenues historically coming in the 2H but this should gradually improve as the Men’s line gets built out. Finally, the market assumes weather can have a major impact but over the past four years, GM has only fluctuated from 45% to 50%. We project 48% for FY12.

GICS sector Consumer Durables & Apparel Market cap HK$m 30-day avg turnover US$m Market cap US$m Number shares on issue m Investment fundamentals
Year end 31 Mar

16,088 3.9 2,070 7,772

2011A 2012E 2013E 2014E

m 7,038 8,119 9,018 10,108 Revenue m 1,386 1,595 1,771 1,986 EBIT % 6.0 15.1 11.1 12.1 EBIT growth m 1,276 1,339 1,370 1,533 Reported profit m 1,290 1,339 1,370 1,533 Adjusted profit Rmb 0.16 0.17 0.18 0.20 EPS rep % 8.3 4.9 2.3 11.9 EPS rep growth Rmb 0.17 0.17 0.18 0.20 EPS adj % 9.3 3.8 2.3 11.9 EPS adj growth x 10.3 9.8 9.6 8.6 PER rep x 10.2 9.8 9.6 8.6 PER adj Rmb 0.19 0.13 0.13 0.15 Total DPS % 11.4 7.6 7.8 8.7 Total div yield % 15.8 17.1 18.1 19.2 ROA % 18.9 19.0 18.6 19.8 ROE x 7.1 6.1 5.4 4.8 EV/EBITDA % -41.5 -38.1 -39.7 -41.1 Net debt/equity x 1.9 1.8 1.7 1.7 P/BV Source: FactSet, Macquarie Research, October 2011 (all figures in Rmb unless noted)

Heading into the high season
November through February is Bosideng’s high season. Our recent channel checks have indicated strong growth YTD, suggesting the brand is set for a good year (its Shanghai flagship store reported 54% SSS growth during Golden Week vs. our assumed 15% top line growth for FY12). We think strong sales figures in 4Q can provide a near-term catalyst for the stock. Our forecasts are basically in line with consensus but could see upside if the weather does not end up unusually warm.

Jamie Zhou, CFA +86 21 2412 9033 Jake Lynch +86 21 2412 9007

Valuations attractive
We view the stock as a reasonable growth story at a very attractive valuation. We target a CY12 PER of 13x – in line with the current average multiples in the menswear sub-segment. We think the defensive nature of the business should hold up well even in a difficult economic environment next year. The Macquarie quant team consistently ranks dividend yield as a key factor for outperformance.

jamie.zhou@macquarie.com jake.lynch@macquarie.com

28 October 2011 Macquarie Capital Securities Limited

Please refer to the important disclosures and analyst certification on page 2 and the inside back cover of this document, or on our website www.macquarie.com.au/disclosures.

Macquarie Research

Bosideng International

Inside
A warm and cosy stock Valuation Bosideng: a household brand name Seeking new growth drivers in non-down Key investment risks Corporate structure and management Financials Appendices 13 15 18 20 28 3 5 7

PRC’s dominant down jacket brand
Company profile
PRC’s largest down jacket maker: Founded in 1975 in Changshu, Jiangsu Province, Bosideng International Holdings Limited is the largest down jacket maker and retailer in the PRC. The company started as OEM and launched its brands in the mid-nineties. As of March 31, 2011, Bosideng has 7,579 retail outlets selling down jackets under six core brands, including Bosideng, Snow Flying, Combo, Bengen, Shuangyu and Shangyu, targeting various consumer segments (see detailed breakdown Fig 8). According to a survey conducted by the China Industrial Information Issuing Center (CIIIC)1, Bosideng achieved a combined share of 37% in the PRC down jacket market in calendar 2010. The two key brands, Bosideng and Snow Flying, were ranked 13th and 48th among consumer brands (up from 16th and not ranked) respectively in the “2011 Most Valuable Chinese Brand List”2 with combined estimated brand value at over RMB26bn (more than double the current market cap). Expanding into non-down apparel: To counter-balance the inherently high seasonality of its core down business (Fig 30), Bosideng is developing an allseason strategy with the introduction of the Bosideng MAN smart casual line. Since 2009, the company has, through greenfield development and acquisitions, introduced RICCI ladies casual wear, D.D. Cat kids wear, VETALLO high-end men’s formal wear and the franchise ROCAWEAR hiphop clothing lines. As of March 2011, Bosideng operates – directly and through third-parties – 1,856 non-down jacket retail outlets. Idle capacity used for OEM: Bosideng generates a small portion of its revenue (11% in FY11) from external OEM sales using the idle capacity during seasonally slow Feb-June months. Manufacturing is done by the parent company, wholly owned by founder and Chairman Mr. Gao. Mr. Gao holds 67% of shares and continues to serve as Chairman and CEO. Pre-IPO private equity Headland Capital holds 3% with the remaining 30% in public float. Bosideng has been audited by KPMG since its IPO in 2007.

Fig 1

Historic share performance and forward PER bands

Share price in HK$ 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Oct-07 Apr-08 Oct-08 Apr-09 Fwd PER trough 2.9x Oct-09 Apr-10 Oct-10 Apr-11 Oct-11 5x 10x 15x Anticipation of a cold winter 20x

Source: FactSet, Macquarie Research, October 2011

China Industrial Information Issuing Centre (CIIIC) is the authoritative unit under the National Bureau of Statistics that specialises in releasing information relating to major industries. “Most Valuable Chinese Brand” list is a brand value comparison research co-organized by R&F Global Information Group and Beijing Famous Brand Evaluation Co, Ltd. First introduced in 1994, the List is the most sustained brand value ranking targeted at the consumption industries in the PRC.
2

1

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Macquarie Research

Bosideng International

A warm and cosy stock
We initiate coverage on Bosideng, the #1 down jacket maker in PRC, in our view, with an Outperform rating and HK$2.80 target price. We believe growth of the down jacket industry in China will continue to be driven by market consolidation and a low penetration rate of down jackets (estimated 15% vs. 40-70% in OECD markets). We forecast a 13% revenue CAGR for Bosideng over FY12-14, while maintaining 20% EBIT margin and 19% ROE. With an 8% dividend yield that is backed by strong FCF growth, we believe recent weakness in the share price provides an attractive entry point to investors seeking defensive consumption exposure.

Strengthening leading position with a four-pronged strategy
While the market will see slowing growth as it matures, Bosideng has four main strategies to maintain momentum with its down jackets. In top tier cities: migrating from predominantly department stores to self-owned specialty and flagship stores in order to build brand awareness and differentiation and improve inventory management. The company plans to spend approx. RMB150m per year FY12-14 on adding new stores, and revamping and consolidating existing retail outlets. In lower tier and rural areas: capturing growth opportunities with mass market brands and products sold through supermarkets and outlet stores. Internationally: boosting the brand image (aimed mostly at affluent mainland tourists) with a flagship store in London and potentially New York. E-commerce: using Taobao Mall to boost higher margin online sales (now 1.3% of revenues). On the Internet, the down-apparel market is very fragmented with no clear leader (no-name brands accounts for more than 40% of sales). We expect Bosideng’s down jacket segment to grow at low-teens revenue CAGR FY12-14 while maintaining a 35-40% market share.

Foreign brand competition? We don’t see the threat
In the sportswear spaces, we’ve recently seen the cash rich international giants compete aggressively with domestic veterans in retail expansion and marketing, thus driving sector same-store-sales and margins lower. With international superstars as brand ambassadors and narrowing price points to the locals, Nike and Adidas have hammered the local brands.

Fig 2 Maintaining leading market share (CY10)
PRC market share

Fig 3

Segment revenues breakdown
Revenue

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12E FY13E Bosideng Snow Flying Other Bosideng brands

11,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 FY09 Down Apparels FY10 FY11

13% CAGR FY12-14E

FY12E

FY13E

FY14E

OEM Management

Menswear apparels

Source: CIIIC, Macquarie Research, October 2011

Source: Company data, Macquarie Research, October 2011

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Bosideng International

However, in the down jacket market (or any outerwear for that matter), the international brands compete much more on functionality than on ‘star appeal’. The three largest global brands, The North Face, Columbia and Moncler, do not appear in the global top 100 brands compiled by Interbrand and are not well-known in China, whereas Nike is ranked 25 and Adidas 60 and both brands are instantly recognizable among the average Chinese. Also, domestic down jackets are mostly priced in the sub-RMB1,000 (US$150) range whereas the imported brands are anywhere upwards of RMB3,000. In the sportswear or quick fashion segments, foreign brands are usually positioned at a similar price range as wellestablished local brands. For these reasons, we do not see the foreign competitors as a large threat to Bosideng.

Seeking new growth drivers in Menswear and other niches
Leveraging off its experience in retail distribution, Bosideng acquired the Bosideng MEN smart casual apparel line in 2009 (similar in style to Lilang and Septwolves). The segment has thus far been a success, with operating profit nearly doubling on 48% expansion in retail outlets over FY09-11. The company plans to add another 100-200 retail outlets per year in the menswear segment for the next three years, driving 30-35% revenue CAGR on our estimates. The seasonality of earnings (>90% geared to 2H) has been a burden for the down jacket business and is a cause of earnings uncertainty for investors in Bosideng. This will not go away quickly but we expect the non-down segment’s contribution to increase from 8% in FY11 to 13% in FY14 of overall revenue while achieving similar operating margins as the down jacket segment (~20%). Management is committed to continuing the search for suitable acquisitions in the non-down apparel space, with target valuations not exceeding 10x forward earnings. We calculate that Bosideng could acquire up to three companies with net profit around RMB100m with existing cash on the balance sheet.

8% dividend yield rising, backed by strong FCF growth
Management has historically maintained a 65-80% (regular) dividend payout ratio and has indicated commitment to maintain similar levels. We assume a 75% payout ratio on NPAT going forward. Based on the current share price, that implies a 7.6% dividend yield for FY3/12 rising to 8.7% in FY14. Worth noting is that the dividend payment is backed almost entirely by FCF, which we estimate will see 29% CAGR over the next two years. The current valuation of 9.8x CY12 PER seems to attach little value to our expected 13% revenue and EBIT CAGR for the company in FY12-14. We think this is due to the low headline single-digit EPS growth over the next two years as a result of a one-off expiry of tax benefits. The current tax break is set to expire in December 2011; as a result, Bosideng will see its effective tax rate rise back up to 19% for FY12 and 25% in FY13. We expect EPS growth to return to low-teens level in FY14.

Fig 4 One-off rise in tax pauses EPS growth FY12/13
EPS, EBIT growth YoY 16% 14% 12% 10% 8% 6% 4% 2% 0% FY11 FY12E FY13E FY14E FY15E Effective tax rate EBIT growth YoY EPS growth YoY Effective tax rate 30% 28% 26% 24% 22% 20% 18% 16% 14% 12% 10%

Fig 5 75% payout backed by strong FCF growth
RMBm Dividend yield

1,600 1,400 1,200 1,000 800

14% 12% 10% 8% 6%

600 400 200 0 -200 FY10 FY11 FCF FY12E FY13E FY14E Yield 4% 2% 0% -2%

Dividend payout

Source: Company data, Macquarie Research, October 2011

Source: Company data, Macquarie Research, October 2011

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Bosideng International

Valuation
We use valuation comparables as the primary method of deriving the 12-month target price of HK$2.80. We could not identify any direct comparable of Bosideng as none of the down jacket pureplays are listed, local (e.g. Yaya, Yalu) or international (Moncler). At Bosideng’s current CY12 PER of 9.8x, the market seems to be suggesting a valuation closer to the HK/China footwear & sportswear group. We think this is inappropriate because: ⇒ Competition is fierce in the footwear and sportswear space where SSSs and margins are both declining, which is not the case for the down jacket market. ⇒ Domestic sportswear brands are losing market share to international brands whereas we expect Bosideng to maintain dominant market share in down jackets. ⇒ Bosideng pays 7.6% dividend yield, double that of footwear and sportswear companies. Our target price of HK$2.80 is based on a 13x CY12 PER, in line with the group of Hong Kong-listed Chinese domestic apparel plays. We reason that: ⇒ Bosideng exhibits similar EBIT margin profile (20% vs. 24%) and ROE (19% vs. 22%) as the domestic apparel average. ⇒ Bosideng’s non-down apparel lines are positioned to target a similar market to Trinity and Lilang, albeit that segment accounts for only 10% of overall revenue. ⇒ Although Bosideng’s normalized earnings growth is in the low-teens level vs. apparels at 20%, Bosideng’s 65% higher dividend yield should be sufficient compensation. We cross check our target price against a DCF model. The 12.3% WACC is based on 1.1 equity beta, and conservative assumptions of 7% cost of debt, 10% equity risk premium and a 2% terminal growth rate. We derived at a per-share value of HK$3.92, which is higher than our target price of HK$2.80.

Fig 6 DCF valuation
WACC Risk Free Rate Market Risk Premium Equity Beta Cost of Equity Cost of Debt (Pre-tax) Cost of Debt (After tax) Target Debt weight Target Equity weight Tax Rate WACC Terminal Growth 3.0% 10.0% 1.1 14.0% 7.0% 5.3% 20.0% 80.0% 25% 12.3% 2.0% DCF Valuation Sum of PV of FCF PV of Terminal Value (RMBm) Enterprise Value (RMBm) Less: Net Debt (FY11) Equity Value No. of Ord shares (m), fully diluted Terminal as % total 6,564 13,891 20,455 -4,411 24,865 7,772 68%

RMB/HK$ Value per share, HK$

0.82 $3.92

Source: Company data, Macquarie Research, October 2011

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Bosideng International

Fig 7

Bosideng – valuation comparables
Price Mkt Cap Rating LC US$m 2.07 2.80 2,070 OP TP LC 2.80 EBIT EV/ Div Margin P/Bk ROE EBITDA Yield FY11E FY10* FY10* CY11E FY11E** 20% 1.8 19% 5.4 7.6% PE Ratio CY11E CY12E 10.0 13.6 9.8 13.2 EPS Growth CY11E CY12E 5% 2%

Ticker Bosideng Bosideng at TP 3998 HK

Domestic apparel China Lilang Trinity Giordano Ports Design Glorius Sun Average

1234 HK 891 HK 709 HK 589 HK 393 HK

8.24 7.05 6.08 14.30 2.55

1,273 1,540 1,189 1,047 348

NR NR NR NR NR

24% 24% 16% 31% NA 24%

6.6 5.8 2.8 6.3 1.5 2.9

24% 16% 24% 31% 16% 22%

11.7 17.6 8.6 9.8 3.1 6.7

3.1% 2.6% 3.6% 4.2% 9.0% 4.8%

13.6 23.1 12.9 13.9 6.7 11.7

11.2 17.8 11.4 11.9 NA 13.2

42% 41% 31% 0% 11% 21%

21% 30% 13% 17% NA 20%

International apparel Adidas ADS GR Puma PUM GR Esprit 330 HK Inditex ITX SM Hennes & Mauritz HMB SS Nike NKE US VF Corp (North Face) VFC US Columbia COLM US Average

49.98 232.15 11.26 67.90 217.40 94.21 133.94 53.94

14,813 4,969 1,996 58,981 56,775 43,993 14,695 1,834

OP 60.00 N 204.00 OP 19.50 NR NR NR NR NR

8% 11% 2% 18% 19% 13% 13% 8% 14%

2.2 2.7 3.4 3.9 8.9 3.2 2.4 2.0 3.1

14% 16% 28% 28% 44% 18% 15% 8% 23%

1.6 7.9 3.4 11.3 12.6 11.0 10.9 8.3 10.6

1.8% 0.9% 8.3% NA NA 1.4% 2.0% 1.7% 1.7%

14.3 16.2 62.7 22.2 22.2 19.8 16.5 17.9 19.4

12.1 14.4 14.2 19.6 19.1 17.4 14.3 15.5 16.9

29% 7% -88% 12% -12% 12% 54% 32% 20%

18% 13% 342% 13% 16% 14% 16% 15% 15%

HK/China footwear & sportswear Belle 1880 HK 15.62 Yue Yuen 551 HK 22.55 Anta Sports 2020 HK 7.97 Dongxiang 3818 HK 1.53 Li Ning 2331 HK 7.72 Stella 1836 HK 17.60 Daphne 210 HK 8.30 361 Degrees 1361 HK 3.96 Xtep 1368 HK 3.08 Pou Sheng 3813 HK 1.17 Peak Sports 1968 HK 2.54 Le Saunda 738 HK 3.21 Average A-share apparel Septwolves Semir Metersbonwe Youngor Joeone Baoxiniao Lancy Shanshan Souyute Sinoer Men's Wear Average

16,951 4,784 2,558 1,110 1,049 1,799 1,749 1,054 862 647 686 264

OP OP N N UP NR NR NR NR NR NR NR

19.60 25.00 7.80 1.90 7.30

18% 7% 23% 21% 8% 10% 15% 26% 21% 6% 22% 15% 16%

5.5 1.8 4.6 2.1 4.4 2.0 3.8 2.7 3.0 0.8 2.6 0.5 1.7

21% 15% 29% 20% 37% 15% 22% 45% 26% 3% 25% 9% 22%

4.5 7.1 3.3 2.0 1.4 1.3 7.0 3.1 5.8 0.7 5.2 NA 2.3

1.2% 0.1% 4.8% 3.5% 3.0% 4.8% 1.7% 7.2% 8.3% 0.0% 5.2% 5.1% 3.7%

25.5 10.2 9.2 15.5 13.3 11.9 16.0 5.3 5.7 11.8 4.7 10.4 9.3

21.2 8.7 11.0 11.8 11.7 10.0 13.1 4.7 5.0 9.4 4.5 8.5 8.2

23% -5% 14% -69% -55% 23% 43% 19% 19% 89% 12% 22% 11%

20% 18% -16% 32% 14% 19% 22% 12% 13% 25% 6% 23% 16%

002029 CH 002563 CH 002269 CH 600177 CH 601566 CH 002154 CH 002612 CH 600884 CH 002503 CH 002485 CH

39.21 49.43 28.52 10.08 25.04 13.98 37.80 15.19 35.40 21.53

1,744 5,207 4,507 3,529 2,256 1,291 1,189 981 891 677

NR NR NR NR NR NR NR NR NR NR

NA NA 16% NA NA NA NA 7% NA NA 11%

5.8 NA 10.5 1.7 NA 5.0 NA 3.1 4.3 3.0 3.4

19% NA 24% 19% 50% 14% 57% 4% 10% 12% 24%

19.8 NA 19.0 NA NA 17.4 NA 26.0 27.4 NA 21.6

0.7% NA NA NA 1.1% NA NA NA 1.4% 2.3% 1.6%

28.6 NA 25.6 8.7 28.4 24.4 36.1 35.7 35.0 29.5 22.9

21.9 NA 19.1 6.4 21.5 17.6 24.3 24.0 22.7 21.0 16.5

37% NA 48% -3% 10% 38% 26% 47% 37% -17% 23%

31% NA 34% 34% 32% 39% 48% 49% 54% 40% 41%

*FY11A for Bosideng, **FY12E for Bosideng. Price date: October 27, 2011. Source: Bloomberg, Macquarie Research, October 2011; Bloomberg est for NR stocks

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Bosideng International

Bosideng: a household brand name
Since its establishment in 1994, the Bosideng name has quickly became synonymous with winter down jackets in the minds of many Chinese similar to the way that Kleenex has done with paper tissues in the US. As of today, the company sells down jackets under six core brands Bosideng, Snow Flying, Combo, Bengen, Shuangyu and Shangyu, targeting various consumer segments (see Fig 8). According to a survey conducted by the China Industrial Information Issuing Center (CIIIC), Bosideng achieved a combined share of 36.7% in the PRC down jacket market in calendar year 2010. The two key brands, Bosideng and Snow Flying, were ranked 13th and 48th among consumer brands (up from 16th and not ranked) respectively in the “2011 Most Valuable Chinese Brand List” with a combined estimated brand value of over RMB26bn. To put that into perspective, this is more than double the company’s current market cap of RMB13bn.

Fig 8

Bosideng's portfolio of down jacket brands
2010 market share 22.0% % of FY11 down revenue 62% Launch year Target market Retail price (FY12, RMB) 600-1,000 500-800 450-550 450-550 300-450 200-300

Brands Bosideng 波司登 Snow Flying 雪中飞

Style

Positioning Medium to high end Medium to high end Mass market Mass market Mass market Mass market

Casual and classic 1994 Both gender, age 25-55 Both gender, age 20-30 Sporty 9.5% 20% 1997 Combo 康博 2.9% 10% 2000 Both gender, focus on men Basic and casual Bengen Both gender, focus on women Youthful and trendy 冰洁 2.3% 7% 2001 Shuangyu 双羽 Outdoor 3% below benchmark return Benchmark return is determined by long term nominal GDP growth plus 12 month forward market dividend yield Macquarie – Asia/Europe Outperform – expected return >+10% Neutral – expected return from -10% to +10% Underperform – expected return +10% Neutral – expected return from -10% to +10% Underperform – expected return 5% in excess of benchmark return Neutral – return within 5% of benchmark return Underperform – return >5% below benchmark return Macquarie - USA Outperform (Buy) – return >5% in excess of Russell 3000 index return Neutral (Hold) – return within 5% of Russell 3000 index return Underperform (Sell)– return >5% below Russell 3000 index return

Volatility index definition*
This is calculated from the volatility of historical price movements. Very high–highest risk – Stock should be expected to move up or down 60–100% in a year – investors should be aware this stock is highly speculative. High – stock should be expected to move up or down at least 40–60% in a year – investors should be aware this stock could be speculative. Medium – stock should be expected to move up or down at least 30–40% in a year. Low–medium – stock should be expected to move up or down at least 25–30% in a year. Low – stock should be expected to move up or down at least 15–25% in a year. * Applicable to Australian/NZ/Canada stocks only Recommendations – 12 months Note: Quant recommendations may differ from Fundamental Analyst recommendations

Financial definitions
All "Adjusted" data items have had the following adjustments made: Added back: goodwill amortisation, provision for catastrophe reserves, IFRS derivatives & hedging, IFRS impairments & IFRS interest expense Excluded: non recurring items, asset revals, property revals, appraisal value uplift, preference dividends & minority interests EPS = adjusted net profit / efpowa* ROA = adjusted ebit / average total assets ROA Banks/Insurance = adjusted net profit /average total assets ROE = adjusted net profit / average shareholders funds Gross cashflow = adjusted net profit + depreciation *equivalent fully paid ordinary weighted average number of shares All Reported numbers for Australian/NZ listed stocks are modelled under IFRS (International Financial Reporting Standards).

Recommendation proportions – For quarter ending 30 September 2011
Outperform Neutral Underperform AU/NZ 57.35% 31.99% 10.66% Asia 65.88% 20.68% 13.45% RSA 56.94% 31.94% 11.11% USA 46.54% 50.00% 3.46% CA 74.68% 23.42% 1.90% EUR 47.85% (for US coverage by MCUSA, 11.63% of stocks covered are investment banking clients) 34.66% (for US coverage by MCUSA, 9.30% of stocks covered are investment banking clients) 17.49% (for US coverage by MCUSA, 0.47% of stocks covered are investment banking clients)

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Asia Research
Head of Equity Research
John O’Connell (Global Co – Head) David Rickards (Global Co – Head) Chris Hunt (Asia – Head) Tim Smart (Asia – Deputy Head) (612) 8232 7544 (612) 8237 1159 (852) 3922 1119 (852) 3922 3565 (9122) 6720 4084 (813) 3512 7856 (813) 3512 6050 (82 2) 3705 8644 (852) 3922 4774 (852) 3922 1479 (9122) 6720 4083 (9122) 6720 4078 (6221) 2598 8366 (813) 3512 7476 (822) 3705 8643 (65) 6601 0981 (632) 857 0899 (8862) 2734 7530 (662) 694 7728 (852) 3922 5417 (632) 857 0899 (852) 3922 3557 (852) 3922 4068 (9122) 6720 4084 (6221) 2598 8489 (813) 3512 7392 (822) 3705 8678 (632) 857 0899 (65) 6601 0840 (8862) 2734 7518 (662) 694 7993 (8621) 2412 9007 (852) 3922 4625 (852) 3922 3585 (813) 3512 7853 (813) 3512 7879 (852) 3922 5417 (8621) 2412 9082 (9122) 6720 4087 (822) 3705 8551 (822) 3705 8661 (603) 2059 8993 (662) 694 7753 (852) 3922 3567 (822) 2095 7222 (852) 3922 3566 (852) 3922 3578 (9122) 6720 4090 (603) 2059 8989 (632) 857 0899

Oil, Gas and Petrochemicals
James Hubbard (Asia) Jal Irani (India) Polina Diyachkina (Japan) Brandon Lee (Korea) Sunaina Dhanuka (Malaysia) Trevor Buchinski (Thailand) Jonathan Hsu (Hong Kong) Abhishek Singhal (India) Eunice Bu (Korea) Chinnarat Boonmahanark (Thailand) (852) 3922 1226 (9122) 6720 4080 (813) 3512 7886 (822) 3705 8669 (603) 2059 8993 (662) 694 7829 (852) 3922 4625 (9122) 6720 4086 822) 2095 7223 (662) 694 7985 (852) 3922 4731 (852) 3922 1291 (8621) 2412 9026 (9122) 6720 4092 (6221) 2598 8480 (813) 3512 7433 (603) 2059 8993 (632) 857 0899 (65) 6601 0838 (65) 6601 0839 (8862) 2734 7522 (8862) 2734 7518 (662) 694 7727 (852) 3922 3587 (8621) 2412 9035 (852) 3922 1293 (852) 3922 4741 (852) 3922 3571 (9122) 6720 4093 (852) 3922 4626 (813) 3512 7886 (662) 694 7982 (8862) 2734 7512 (852) 3922 1401 (9122) 6720 4090 (813) 3512 7877 (813) 3512 7880 (813) 3512 7854 (813) 3512 7851 (813) 3512 7868 (813) 3512 5984 (822) 3705 8641 (8862) 2734 7526 (8862) 2734 7516 (8862) 2734 7528 (813) 3512 7875 (852) 3922 1401 (6221) 2598 8486 (603) 2059 8989 (632) 857 0899 (8862) 2734 7519 (662) 694 7993

Transport & Infrastructure
Janet Lewis (Asia, Japan) Nicholas Cunningham (Japan) Sunaina Dhanuka (Malaysia) (852) 3922 5417 (813) 3512 6044 (603) 2059 8993 (852) 3922 4626 (9122) 6720 4081 (603) 2059 8989 (632) 857 0899 (4420) 3037 4271 (4420) 3037 4497 (65) 6601 0144 (8621) 2412 9035 (9122) 6720 4093 (852) 3922 4076 (852) 3922 4077 (612) 8232 3935 (852) 3922 3570 (852) 3922 3597 (9122) 6720 3455 (4420) 3037 4036 (852) 3922 4735 (852) 3922 5494 (813) 3512 7876 (813) 3512 7569 (813) 3512 7872 (813) 3512 7850 (852) 3922 3566 (9122) 6720 4093 (6121) 2598 8366 (813) 3512 7880 (822) 3705 8643 (603) 2059 8992 (603) 2059 8982 (632) 857 0899 (65) 6601 0182 (8862) 2734 7516 (662) 694 7753

Utilities & Renewables
Adam Worthington (Asia) Jeff Evans (India) Prem Jearajasingam (Malaysia) Alex Pomento (Philippines)

Automobiles/Auto Parts
Amit Mishra (India) Clive Wiggins (Japan) Dan Lucas (Japan) Michael Sohn (Korea) Ismael Pili (Asia, Hong Kong) Victor Wang (China) Mudit Painuly (India) Suresh Ganapathy (India) Nicolaos Oentung (Indonesia) Alastair Macdonald (Japan) Chan Hwang (Korea) Matthew Smith (Malaysia, Singapore) Alex Pomento (Philippines) Jemmy Huang (Taiwan) Passakorn Linmaneechote (Thailand)

Pharmaceuticals and Healthcare

Commodities
Jim Lennon Duncan Hobbs Bonnie Liu Graeme Train Rakesh Arora

Banks and Non-Bank Financials

Property
Callum Bramah (Asia) David Ng (China, Hong Kong) Jeffrey Gao (China) Unmesh Sharma (India) Felicia Barus (Indonesia) Hiroshi Okubo (Japan) Sunaina Dhanuka (Malaysia) Alex Pomento (Philippines) Tuck Yin Soong (Singapore) Elaine Cheong (Singapore) Corinne Jian (Taiwan) Brandon Chen (Taiwan) Patti Tomaitrichitr (Thailand) Andrew Dale (Asia) Graeme Train (China) Matty Zhao (Hong Kong) Pelen Ji (China, Hong Kong) Christina Lee (Hong Kong) Rakesh Arora (India) Adam Worthington (Indonesia) Polina Diyachkina (Japan) Chak Reungsinpinya (Thailand)

Data Services
Andrea Dailly (Asia) Eric Yeung

Economics
Richard Gibbs (Australia) Paul Cavey (China) Renee Chen (Hong Kong, Taiwan) Tanvee Gupta (India)

Conglomerates
Janet Lewis (Hong Kong) Alex Pomento (Philippines)

Quantitative / CPG
Gurvinder Brar (Global) Viking Kwok (Asia) Burke Lau (Asia) Patrick Hansen (Japan) Ayumu Kuroda (Japan) Simon Rigney (Japan)

Consumer and Gaming
Gary Pinge (Asia) Linda Huang (China, Hong Kong) Amit Mishra (India) Lyall Taylor (Indonesia) Toby Williams (Japan) HongSuk Na (Korea) Alex Pomento (Philippines) Somesh Agarwal (Singapore) Brandon Chen (Taiwan) Best Waiyanont (Thailand)

Resources / Metals and Mining

Strategy/Country
Peter Eadon-Clarke (Asia, Japan) Jiong Shao (China, Hong Kong) Rakesh Arora (India) Nicolaos Oentung (Indonesia) David Gibson (Japan) Chan Hwang (Korea) Kieran Calder (Malaysia) Yeonzon Yeow (Malaysia) Alex Pomento (Philippines) Conrad Werner (Singapore) Daniel Chang (Taiwan) David Gambrill (Thailand)

Technology
Jeffrey Su (Asia, Taiwan) Lisa Soh (China) Nitin Mohta (India) Damian Thong (Japan) David Gibson (Japan) George Chang (Japan) Jeff Loff (Japan) Michiko Kakiya (Japan) Yukihiro Goto (Japan) Daniel Kim (Korea) Andrew Chang (Taiwan) Daniel Chang (Taiwan) Kylie Huang (Taiwan)

Emerging Leaders
Jake Lynch (China, Asia) Jonathan Hsu (China, Hong Kong) Saiyi He (Hong Kong) Robert Burghart (Japan) Makoto Egami (Japan)

Industrials
Janet Lewis (Asia) Patrick Dai (China) Inderjeetsingh Bhatia (India) Alex Kong (Korea) Juwon Lee (Korea) Sunaina Dhanuka (Malaysia) David Gambrill (Thailand)

Find our research at
Macquarie: www.macquarie.com.au/research Thomson: www.thomson.com/financial Reuters: www.knowledge.reuters.com Bloomberg: MAC GO Factset: http://www.factset.com/home.aspx CapitalIQ www.capitaliq.com TheMarkets.com www.themarkets.com Email macresearch@macquarie.com for access

Telecoms
Nathan Ramler (Asia) Lisa Soh (China, Hong Kong) Riaz Hyder (Indonesia) Prem Jearajasingam (Malaysia, Singapore) Alex Pomento (Philippines) Joseph Quinn (Taiwan) Best Waiyanont (Thailand)

Insurance
Scott Russell (Asia, China) Chung Jun Yun (Korea)

Media and Internet
Jiong Shao (China, Hong Kong) Steve Zhang (China, Hong Kong) Nitin Mohta (India) Prem Jearajasingam (Malaysia) Alex Pomento (Philippines)

Asia Sales
Regional Heads of Sales
Robin Black (Asia) Chris Gray (ASEAN) Peter Slater (Boston) Jeffrey Shiu (China & Hong Kong) Thomas Renz (Geneva) Andrew Mouat (India) Kenneth Yap (Indonesia) JJ Kim (Korea) Jason Lee (Malaysia) Chris Gould (Malaysia) Gino C Rojas (Philippines) Eric Roles (New York) Luke Sullivan (New York) Paul Colaco (New York) Sheila Schroeder (San Francisco) (852) 3922 2074 (65) 6601 0288 (1 617) 598 2502 (852) 3922 2061 (41) 22 818 7712 (9122) 6720 4100 (6221) 515 1555 (822) 3705 8799 (603) 2059 8888 (603) 2059 8888 (632) 857 0861 (1 212) 231 2559 (1 212) 231 2507 (1 212) 231 2496 (1 415) 762 5001

Regional Heads of Sales cont’d
Miki Edelman (Taiwan) Angus Kent (Thailand) Michael Newman (Tokyo) Angus Innes (UK/Europe) Rob Fabbro (UK/Europe) Sean Alexander (Generalist) Justin Crawford (Asia) (8862) 2734 7580 (662) 694 7601 (813) 3512 7920 (44) 20 3037 4841 (44) 20 3037 4865 (852) 3922 2101 (852) 3922 2065

Sales Trading cont’d
Mike Keen (Europe) Chris Reale (New York) Marc Rosa (New York) Stanley Dunda (Indonesia) Kenneth Cheung (Malaysia) Michael Santos (Philippines) Isaac Huang (Taiwan) Dominic Shore (Thailand) (44) 20 3037 4905 (1 212) 231 2555 (1 212) 231 2555 (6221) 515 1555 (603) 2059 8888 (632) 857 0813 (8862) 2734 7582 (662) 694 7707

Regional Head of Distribution Sales Trading
Adam Zaki (Asia) Yat Quan Tan (Hong Kong) Phil Sellaroli (Japan) Grace Lee (Korea) Matthew Ryan (Singapore) (852) 3922 2002 (852) 3922 2028 (813) 3512 7837 (822) 3705 8601 (65) 6601 0288

Alternative Strategies
Convertibles - Roland Sharman Depository Receipts – Seung-Jin Lee Derivatives – Mark Holland Structured Products - Andrew Terlich (852) 3922 2095 (65) 6601 0203 (852) 3922 2081 (852) 3922 2013