EQS Group is a leading global provider for Online Investor Relations and Corporate Communications Our Presence: Munich, Hamburg, Zurich, Hong Kong, Singapore and Moscow Our History: 2000 – company established in Munich, Germany 2006 – listing on Frankfurt Stock Exchange 2008 – office in Moscow opened 2012 – office in Hong Kong opened 2014 – acquisition of TodayIR – leading online IR provider in Asia, offices in Singapore, Taipei, Shenzhen 2015 – presence in London Our Expertise: Investor Relations: IR websites, IR Tools, IR Apps, Annual Reports, Audio & Video Webcasts and telephone conferences, IR Interactive Presentations, IR Social Media Monitoring Corporate Communications: Corporate Websites, E-magazines, E-Newsletters, Social Media Monitoring, Corporate Presentations News & Disclosure: Disclosure on all global Stock Exchanges, International News Dissemination, XML and XBRL-Reporting, Interactive Presentation 2 Our Clients: 8,000 companies are our clients worldwide 2,300 listed companies all over the world 7,500 companies in Europe 70 companies in Russia & CIS 400 companies in Asia: Hong Kong, China, Singapore, Taiwan, rest of Asia Europe: BMW, UBS, Siemens, Airbus, Adidas, Lufthansa Russia: Gazprom, Sberbank, VTB, Rostelecom, Metalloinvest, Uralkali Asia: Lenovo, China Telecom, AIA, ASUS, China Merchant Bank 3 I. Shanghai Stock Exchange – not possible foreign listing Number of listed companies*: 1,015 Market Cap*: $4,146 bn, 71,4% growth to Feb 2014, 5th place II. Hong Kong Stock Exchange – full access to foreign investors for overseas companies + access to investors in Mainland China Number of listed companies*: 1,766 Market Cap*: $3,383 bn, 10,8% growth to Feb 2014, 7th place BUT! Via Shanghai-HK Stock Connect - 2nd largest market by Cap. - $7,529 bn III. Singapore Stock Exchange – easy listing rules, less equity Number of listed companies*: 771 Market Cap*: $752 bn, 9,0% growth to Feb 2014, 21st place * As of 28 February 2015 (Monthly reports, World Federation of Exchanges) 4 Benefits of Listing Chinese Fund Market (HKEx +SSE) – 2nd largest market by capitalization: $7,529 bn Access to investors in Mainland China (Shanghai Stock Exchange) – their importance will continue to grow Shanghai-HK Stock Connect - launched on 17th November 2014, allows Hong Kong and international investors to buy Shanghai-listed stocks and Mainland professional investors to buy Hong Kong-listed stocks, respectively. Depth of liquidity in its primary and secondary markets Listing on the Exchange’s Main Board (not on its Growth Enterprise Market) in a form of HDRs for overseas companies 5 Listing of international companies in Hong Kong 1,752 companies listed on HKEx at the end of Dec. 2014, of which 1,548 were listed on the Exchange's Main Board In 2014, there were 122 new listings on the Exchange (including transfers from the Main Board to GEM) which raised HK$227.7 billion (an increase of 35% compared to 2013) HK – attractive for luxury goods sector and high profile companies like Coach, L’Occitane, Samsonite. E.g. in 2011, Prada raised US$ 2.14 billion by listing 20% of its share capital on the Exchange Mining and natural resources companies attracted to China’s markets: Glencore International AG – Swiss commodities giant, UC Rusal PLC, Kazakhmys PLC – Kazakhstan copper miner, Brazilian metals and mining company Vale S.A – the first company to list in the form of depositary receipts (HDRs) 6 Chinese Listings in Hong Kong: 822 Chinese Companies – 56% of the total market cap In 2014 4 out of TOP 5 companies by IPO funds raised in Hong Kong were Mainland Chinese companies Stock Code 3699 Company Name Dalian Wanda Commercial Properties Co., Ltd Country PRC Market Cap (USD mln) 3,808 Fund Raised (USD mln) 3,692 1816 CGN Power Co., Ltd PRC 4,823 3,617 2638 38 HK Electric Investments and HK Electric Investments Ltd. HK 5,800 3,093 288 WH Group Ltd PRC 8,338 2,347 1958 8 BAIC Motor Corporation Ltd PRC 2,308 1,414 7 I. Asian Markets are getting more connected: Hong Kong and Shanghai Exchanges (Shanghai-HK Stock Connect). Possible in the future similar process between SGx and HKEx Conclusion huge market opportunities II. Your have to deal with: International Institutional Investors as well as Local Retail Investors Conclusion you have to compete for investors money with local and international companies, considering best international standards III. Russian companies are not known in Asian markets Conclusion competition will be tough! 8 To be successful you have to reach out all the markets in Asia ALREADY NOW HOW? I. INVESTOR DAY – In Hong Kong, in Singapore, in China separately live or/and together with VIDEO WEBCAST II. Regular (each quarter) AUDIO WEBCASTS with your target audiences – potential investors, funds, analysts and journalists III. IR WEBSITE – very professional and complete IR Website at least in English with updated IR/financial Calendar, Analyst Coverage tools and Consensus Estimates, updated Presentations IV. NEWS & DISCLOSURE – you have to inform on a regular basis local markets about your company – who are you, what’s going on in your company, tell your equity story, why should they listen to you. + Chinese Language Requirements as media and investors in Mainland are mostly Chinese language 9 AUDIO/VIDEO WEBCAST – is the most efficient, convenient and professional way to announce company’s financial results, Investor Day transmission, important announcements. “Best Practice” approach АУДИО ВЕБКАСТ Combine your Investors Day together with Video Webcast with presentation live streaming Provide it 2 languages: in English and simplified Chinese Video/Audio recording is available online on IR Website Around 400 companies on HKEx holding Webcasts Regularly, and only around 50 on SGx Video Webcast of “ASUSTek” 4Q 2014 Investor Conference Technical infrastructure barriers 10 Audio Webcast of Sihuan Pharmaceutical Holdings Group Ltd 2014 Interim Results (2 languages) Audio Webcast of Yingde Gases Group Company Lmt 2014 Interim Results (2 languages) 11 Investor Relations Website is a must on Hong Kong Stock Exchange As well as Corporate Governance section in IR or corporate website MD&A Audit Committee Remuneration Committee Nomination Committee IR Tools like Fact Sheet, Stock Chart or Financial Calendar is a market standard Still, quality of IR Websites of Asian companies are far beyond EU Standards and worldwide Best Practice Internet and online technologies must be a great support for Russian companies – improve your IR Websites and make them your competitive advantage! 12 Taiwan: Taiwan Semiconductor, ASUS 13 Singapore: Frasers Centrepoint, Capital Land, Starhub 14 Hong Kong and China: Lenovo, Sinopec Corp., Pacific Basin, China Telecom, China Unicom, Shen Zhen Investment, China Oceanwide Holdings, China Merchants Bank 15 Pacific Basin Annual Report 2014 Today is 20th March 2015! Is your Annual report live already? 16 You have to inform on a regular basis local markets about your company: who are you, what’s going on in your company, tell your equity story, why should they listen to you That means you have to reach and cover media in Hong Kong, Singapore and Mainland China It’s not easy, as there are very tough requirements in China – VPN channels are blocked, “@gmail.com” addresses are blocked. The only possible way to reach local media - via legal news provider, like EQS Group, with special technical infrastructure. You communications must be in English, simplified Chinese and traditional Chinese as most of Chinese media publish news only in Chinese. E.G. Wind terminals in China (Chinese version of Bloomberg) publish only in Chinese. 17 There is no strict regulation about time and format of Disclosure. It goes against fair disclosure principles Upload time regulation for News: HKEx: Announcement, circulars, annual/interim reports have to be upload within 1 hour after submission SGx: Not limited, listed companies on SGx will not get any problem even if they don’t upload their announcement and report after e-submission It goes against fair disclosure principles That’s why 12 February 2015 EQS Group launched EQS COCKPIT in ASIA – it’s online platform which allows to publish news in all sources, like Stock Exchanges, Website, Terminals, Contact base of investors simultaneously with one mouth click 18 Press Release Publication On Stock Exchanges (LSE, FSE, HKEx, etc.) On financial portals and terminals – Bloomberg, Reuters, Dow Jones, VWD, Wind etc. On a leading financial and informations internet-sourses – Bloomberg, Reuters, Factiva, Yahoo Finance, Google, etc. On Company’s Website To your contacts’ data base: shareholders, investors, analysts, journalists, etc. + integration into Stock Chart on a website SIMULTANEOUSLY 19 China Overseas Land and Investment Limited Announces Property Sales Results for February 2015 中國海外發展公佈2015年2月份房地產銷售情況 20 DGAP.DE: http://www.dgap.de/dgap/News/corporate/china-overseas-land-and-investment-limited-announcesproperty-sales-results-for-february/?companyID=384893&newsID=851007 Bloomberg.com: http://www.bloomberg.com/article/2015-03-15/aqg..oCpmoRw.html FT.com: http://markets.ft.com/research/Markets/Tearsheets/Forecasts?s=688:HKG https://commerce.uk.reuters.com/purchase/showCoBrandReportDetail.do?docid=69609608&rpc=57561 Thomson Reuters: https://commerce.us.reuters.com/purchase/advancedSearch.do?dateFrom=dd/mm/yyyy&dateRange=AllDates&dateTo=dd/mm/yyyy&p roviderType=Independents&searchBy=byCompany&showProviderList=false&ric=0688.HK https://commerce.us.reuters.com/purchase/showReportDetail.do?docid=69609608 Finet.hk: http://www.finet.hk/mainsite/newscenter/TODAYIR/0/55064ab4e4b0fae78a4dafaa%E4%B8%AD%E5%9C%8B%E6%B5%B7%E5%A4%96%E7%99%BC%E5%B1%95%E5%85%AC%E4%BD%882015%E5%B9%B4 2%E6%9C%88%E4%BB%BD%E6%88%BF%E5%9C%B0%E7%94%A2%E9%8A%B7%E5%94%AE%E6%83%85%E6%B3%81.html 21 鉅亨網: http://news.cnyes.com/20150316/%E4%B8%AD%E5%9C%8B%E6%B5%B7%E5%A4%96%E7%99%BC%E5%B1%95%E5%85%AC %E4%BD%882015%E5%B9%B42%E6%9C%88%E4%BB%BD%E6%88%BF%E5%9C%B0%E7%94%A2%E9%8A%B7%E5%94 %AE%E6%83%85%E6%B3%81-112132452143610.shtml DB Power (English Version): http://www.dbpower.com.hk/en/news/news-finance-news -todayir/?uid=EQS0000000203en&page=1 DB Power (TC Version): http://www.dbpower.com.hk/ch/news/news-finance-newstodayir/?uid=EQS0000000202ch&page=1 Money DJ: http://www.moneydj.com/KMDJ/News/NewsViewer. aspx?a=36cbd968-abc0-4054-9250-9930a3d350a7&c =MB10 Investor: http://www.investor.com.tw/onlineNews/JINSNew Detail.asp?articleNo=14201503160044 22 Norilsk Nickel Presents Its Annual Strategy Update, 19 May 2014 China, ChinaCW.com.cn: http://www.chinacw.com.cn/2014/0521/165082.html Japan, RegRese.jp: http://www.regrese.jp/release/details/87/6892/ 23 CREDIT BANK OF MOSCOW Announces Sound Performance in 1Q 2013 Under the International Financial Report Sources: Afinance.cn, CNA.com.tw, Baigecn.com 24 YouTube Video: https://www.youtube.com/watch?v=f-19fYzLoJg Press Release link 26 Elena Biletskaya Deputy General Director EQS Group Russia & CIS Tel. +7 (495) 916 62 51 elena.biletskaya@eqs.com For detailed information visit our website www.eqs.com 26